HF 1976

3rd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; appropriating money for
jobs, economic development, and human services
purposes; establishing and modifying certain programs;
providing for accounts, assessments and fees; making
changes to programs for children and families;
requiring studies and reports; amending Minnesota
Statutes 2004, sections 41A.09, subdivision 2a;
60A.14, subdivision 1; 60K.55, subdivision 2; 72A.20,
by adding a subdivision; 72B.04, subdivision 10;
82B.05, subdivisions 1, 5; 82B.09, subdivision 1;
115C.07, subdivision 3; 115C.09, subdivision 3h;
115C.13; 116C.779, subdivision 2; 116J.551,
subdivision 1; 116J.571; 116J.572; 116J.574; 116J.575,
as amended; 116J.63, subdivision 2; 116J.8731,
subdivision 5; 116J.8747, subdivision 2; 116J.994,
subdivisions 7, 9; 116L.03, subdivision 2; 116L.05, by
adding a subdivision; 116L.17, subdivision 1; 116L.20,
subdivision 2; 119B.02, by adding a subdivision;
119B.13, subdivision 1, by adding a subdivision;
120A.40; 183.41, by adding a subdivision; 183.411,
subdivisions 2a, 3; 183.42; 183.44, subdivision 1;
183.51, subdivision 2, by adding a subdivision;
183.545; 183.57; 216C.41, subdivisions 2, 5, 5a;
237.11; 237.295, subdivisions 1, 2; 239.011,
subdivision 2; 239.05, subdivision 10b, by adding a
subdivision; 239.09; 239.101, subdivision 3; 239.75,
subdivisions 1, 5; 239.761; 239.77, by adding a
subdivision; 239.79, subdivision 4; 239.791,
subdivisions 1, 7, 8, 15; 239.792; 245A.023; 245A.10,
subdivision 4; 254A.035, subdivision 2; 254A.04;
256.01, by adding subdivisions; 256.741, subdivision
4; 256B.0924, subdivision 3; 256B.093, subdivision 1;
256D.06, subdivisions 5, 7, by adding a subdivision;
256I.05, subdivision 1e; 256J.12, subdivision 1, by
adding a subdivision; 256J.37, subdivision 3a;
256J.515; 256J.751, subdivision 2; 256J.95, by adding
subdivisions; 256K.35, by adding a subdivision;
260.835; 268.19, subdivision 1; 296A.01, subdivisions
2, 7, 8, 14, 19, 20, 22, 23, 24, 25, 26, 28; 298.22,
by adding a subdivision; 326.975, subdivision 1;
345.47, subdivisions 3, 3a; 373.40, subdivisions 1, 3;
462A.05, subdivision 3a; 462A.33, subdivision 2;
517.08, subdivisions 1b, 1c; Laws 1999, chapter 224,
section 7, as amended; Laws 2003, chapter 128, article
1, section 172; proposing coding for new law in
Minnesota Statutes, chapters 45; 116L; 237; 256K;
325F; proposing coding for new law as Minnesota
Statutes, chapter 59B; repealing Minnesota Statutes
2004, sections 45.0295; 116J.573; 116J.58, subdivision
3; 116L.05, subdivision 4; 119B.074; 239.05,
subdivisions 6a, 6b; 256D.54, subdivision 3; 462C.15;
Laws 2003, First Special Session chapter 14, article
9, section 34; Minnesota Rules, parts 9500.1254;
9500.1256.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

Section 1. new text begin JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
new text end

The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another named fund, to
the agencies and for the purposes specified in this article, to
be available for the fiscal years indicated for each purpose.
The figures "2006" and "2007," where used in this article, mean
that the appropriation or appropriations listed under them are
available for the fiscal year ending June 30, 2006, or June 30,
2007, respectively. The term "first year" means the fiscal year
ending June 30, 2006, and the term "second year" means the
fiscal year ending June 30, 2007.
SUMMARY BY FUND

2006 2007 TOTAL

General $ 143,228,000 $ 137,600,000 $ 280,828,000

Workforce
Development 8,270,000 8,270,000 16,540,000

Remediation 700,000 700,000 1,400,000

Petroleum Tank
Cleanup 1,084,000 1,084,000 2,168,000

Workers'
Compensation 21,725,000 21,725,000 43,450,000

TOTAL $ 175,007,000 $ 169,379,000 $ 344,386,000

APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007

Sec. 2. EMPLOYMENT AND
ECONOMIC DEVELOPMENT

Subdivision 1.

Total
Appropriation $ 46,116,000 $ 46,115,000

Summary by Fund

General 37,596,000 37,595,000

Remediation 700,000 700,000

Workforce
Development 7,820,000 7,820,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Business and
Community Development 7,819,000 7,818,000

Summary by Fund

General 7,119,000 7,118,000

Remediation 700,000 700,000

(a)(1) $150,000 the first year and
$150,000 the second year are from the
general fund for a grant under
Minnesota Statutes, section 116J.421,
to the Rural Policy and Development
Center at Minnesota State University.
The grant shall be used for research
and policy analysis on emerging
economic and social issues in rural
Minnesota, to serve as a policy
resource center for rural Minnesota
communities, to encourage collaboration
across higher education institutions to
provide interdisciplinary team
approaches to research and
problem-solving in rural communities,
and to administer overall operations of
the center.

(2) The grant shall be provided upon
the condition that each
state-appropriated dollar be matched
with a nonstate dollar. Acceptable
matching funds are nonstate
contributions that the center has
received and have not been used to
match previous state grants. Any funds
not spent the first year are available
the second year.

(b) $100,000 the first year and
$100,000 the second year are from the
general fund for a grant to the
Metropolitan Economic Development
Association for continuing minority
business development programs in the
metropolitan area.

(c) $150,000 the first year and
$150,000 the second year are from the
general fund for a grant to
WomenVenture for women's business
development programs.

(d) $250,000 the first year and
$250,000 the second year are from the
general fund to establish a
methamphetamine laboratory cleanup
revolving loan fund pursuant to
proposed legislation. This is a
onetime appropriation. These funds are
available until spent.

(e) $18,000 in the first year and
$17,000 in the second year are for
onetime grants to the Riverbend Center
for Entrepreneurial Facilitation in
Blue Earth County. The grants must be
used to continue a program to assist in
the development of entrepreneurs and
small businesses. The grants must be
provided on the condition that each
state-appropriated dollar be matched
with a nonstate dollar. Any balance in
the first year does not cancel but is
available in the second year.

Grant recipients must report to the
commissioner by February 1 in each of
the two years after the year of receipt
of the grant. The report must detail
the number of customers served; the
number of businesses started,
stabilized, or expanded; the number of
jobs created and retained; and business
success rates. The commissioner shall
report to the legislature on the
program's assistance to entrepreneurs
and small businesses. The report shall
contain an evaluation of the results.

(f) $100,000 the first year and
$100,000 the second year are to help
small businesses access federal funds
through the federal Small Business
Innovation Research Program and the
federal Small Business Technology
Transfer Program. Department services
must include maintaining connections to
11 federal programs, assessment of
specific funding opportunities, review
of funding proposals, referral to
specific consulting services, and
conduct of training workshops
throughout the state. This
appropriation is added to the agency's
base.

(g) $50,000 the first year and $50,000
the second year are for grants to the
Minnesota Inventors Congress.

(h) $15,000 the first year is for a
onetime grant to La Creche Early
Childhood Centers, Inc. of Minneapolis.

Subd. 3.

Workforce Partnerships 7,910,000 7,910,000

Summary by Fund

General 7,035,000 7,035,000

Workforce
Development 875,000 875,000

(a) $6,785,000 the first year and
$6,785,000 the second year are from the
general fund for the Minnesota job
skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for
either year is insufficient, the
appropriation for the other year is
available. This appropriation does not
cancel.

(b) $250,000 the first year and
$250,000 the second year are from the
general fund for a grant under
Minnesota Statutes, section 116J.8747,
to Twin Cities RISE! to provide
training to hard-to-train individuals.

(c) $875,000 the first year and
$875,000 the second year are from the
workforce development fund for
opportunities industrialization center
programs.

(d) The first $1,450,000 deposited in
each year of the biennium and in each
year of subsequent bienniums into the
contingent account created under
Minnesota Statutes, section 268.196,
subdivision 3, shall be transferred
upon deposit to the workforce
development fund created under
Minnesota Statutes, section 116L.20.
Deposits in excess of the $1,450,000
shall be transferred upon deposit to
the general fund.

Subd. 4.

Workforce Services 27,110,000 27,110,000

Summary by Fund

General 20,165,000 20,165,000

Workforce
Development 6,945,000 6,945,000

(a) $4,864,000 the first year and
$4,864,000 the second year are from the
general fund and $6,920,000 the first
year and $6,920,000 the second year are
from the workforce development fund for
extended employment services for
persons with severe disabilities or
related conditions under Minnesota
Statutes, section 268A.15.

(b) $1,690,000 the first year and
$1,690,000 the second year are from the
general fund for grants under Minnesota
Statutes, section 268A.11, for the
eight centers for independent living.
Money not expended the first year is
available the second year.

(c) $150,000 the first year and
$150,000 the second year are from the
general fund and $25,000 the first year
and $25,000 the second year are from
the workforce development fund for
grants under Minnesota Statutes,
section 268A.03, to Rise, Inc. for the
Minnesota Employment Center for People
Who are Deaf or Hard-of-Hearing. Money
not expended the first year is
available the second year.

(d) $1,000,000 the first year and
$1,000,000 the second year are from the
general fund for grants for programs
that provide employment support
services to persons with mental illness
under Minnesota Statutes, sections
268A.13 and 268A.14. Up to $77,000
each year may be used for
administrative and salary expenses.

(e) $4,940,000 the first year and
$4,940,000 the second year are from the
general fund for state services for the
blind activities.

(f) On or after July 1, 2005, the
commissioner of finance shall cancel
the unencumbered balance in the
contaminated site cleanup and
development account to the unrestricted
fund balance in the general fund.

(g) On or after July 1, 2005, the
commissioner of finance shall transfer
to the general fund any amount in
excess of $10,000,000 in the Minnesota
minerals 21st century fund account in
the special revenue fund.

Subd. 5.

State-Funded
Administration 3,277,000 3,277,000

Sec. 3. COMMERCE

Subdivision 1.

Total
Appropriation 22,130,000 22,130,000

Summary by Fund

General 20,211,000 20,211,000

Petroleum
Cleanup 1,084,000 1,084,000

Workers'
Compensation 835,000 835,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Financial Examinations 5,994,000 5,994,000

Subd. 3.

Petroleum Tank Release
Cleanup Board 1,084,000 1,084,000

This appropriation is from the
petroleum tank release cleanup fund.

Subd. 4.

Administrative Services 5,483,000 5,483,000

Subd. 5.

Market Assurance 5,757,000 5,757,000

Summary by Fund

General 4,922,000 4,922,000

Workers'
Compensation 835,000 835,000

Subd. 6.

Energy and
Telecommunications 3,812,000 3,812,000

Subd. 7.

Fair Housing Education

Of the money appropriated for fair
housing education under Laws 2001,
chapter 208, section 28, the
unencumbered balance is canceled and
transferred to the general fund.

Subd. 8.

Mortgage Consumer Education

Of the unexpended balance in the
consumer education account established
under Minnesota Statutes, section
58.10, subdivision 3, $200,000 is
transferred to the general fund.

Subd. 9.

Mortgage Flipping Education Campaign

Of the money appropriated for education
regarding mortgage flipping by Laws
1999, chapter 223, article 1, section
6, subdivision 3, the unencumbered
balance is canceled and transferred to
the general fund.

Subd. 10.

Liquefied Petroleum Gas Account

The unexpended balance in the liquefied
petroleum gas account established under
Minnesota Statutes, section 239.785,
subdivision 6, is canceled and
transferred to the general fund.

Sec. 4. HOUSING FINANCE AGENCY

Subdivision 1.

Total
Appropriation 34,770,000 28,270,000

The amounts that may be spent from this
appropriation for certain programs are
specified in the following subdivisions.

This appropriation is for transfer to
the housing development fund for the
programs specified. Except as
otherwise indicated, this transfer is
part of the agency's permanent budget
base.

Subd. 2.

Challenge Program

$10,907,000 the first year and
$4,407,000 the second year are for the
economic development and housing
challenge program under Minnesota
Statutes, section 462A.33.

The base budget for the economic
development and housing challenge
program shall be $10,907,000 in fiscal
year 2008 and $10,907,000 in fiscal
year 2009.

Subd. 3.

Housing Trust Fund

$6,305,000 the first year and
$6,305,000 the second year are for the
housing trust fund to be deposited in
the housing trust fund account created
under Minnesota Statutes, section
462A.201, and used for the purposes
provided in that section.

Subd. 4.

Rental Assistance
for Mentally Ill

$1,638,000 the first year and
$1,638,000 the second year are for a
rental housing assistance program for
persons with a mental illness or
families with an adult member with a
mental illness under Minnesota
Statutes, section 462A.2097.

Subd. 5.

Family Homeless
Prevention

$3,715,000 the first year and
$3,715,000 the second year are for
family homeless prevention and
assistance programs under Minnesota
Statutes, section 462A.204. Any
balance the first year does not cancel
but is available the second year.

Subd. 6.

Home Ownership
Assistance Fund

The budget base for the home ownership
assistance fund shall be $885,000 in
fiscal year 2008 and $885,000 in fiscal
year 2009.

Subd. 7.

Affordable Rental
Investment Fund

$8,531,000 the first year and
$8,531,000 the second year are for the
affordable rental investment fund
program under Minnesota Statutes,
section 462A.21, subdivision 8b.

This appropriation is to finance the
acquisition, rehabilitation, and debt
restructuring of federally assisted
rental property and for making equity
take-out loans under Minnesota
Statutes, section 462A.05, subdivision
39. This appropriation also may be
used to finance the acquisition,
rehabilitation, and debt restructuring
of existing supportive housing
properties. For purposes of this
subdivision, "supportive housing" means
affordable rental housing with links to
services necessary for individuals,
youth, and families with children to
maintain housing stability.

The owner of the federally assisted
rental property must agree to
participate in the applicable federally
assisted housing program and to extend
any existing low-income affordability
restrictions on the housing for the
maximum term permitted. The owner must
also enter into an agreement that gives
local units of government, housing and
redevelopment authorities, and
nonprofit housing organizations the
right of first refusal if the rental
property is offered for sale. Priority
must be given among comparable
federally assisted rental properties to
properties with the longest remaining
term under an agreement for federal
rental assistance. Priority must also
be given among comparable rental
housing developments to developments
that are or will be owned by local
government units, a housing and
redevelopment authority, or a nonprofit
housing organization.

Subd. 8.

Housing Rehabilitation
and Accessibility

$2,654,000 the first year and
$2,654,000 the second year are for the
housing rehabilitation and
accessibility program under Minnesota
Statutes, section 462A.05, subdivisions
14a and 15a.

Subd. 9.

Home Ownership Education,
Counseling, and Training

$770,000 the first year and $770,000
the second year are for the home
ownership education, counseling, and
training program under Minnesota
Statutes, section 462A.209.

Subd. 10.

Capacity Building
Grants

$250,000 the first year and $250,000
the second year are for nonprofit
capacity building grants under
Minnesota Statutes, section 462A.21,
subdivision 3b.

Sec. 5. EXPLORE MINNESOTA
TOURISM 8,626,000 9,626,000

To develop maximum private sector
involvement in tourism, $4,000,000 each
year must be matched by Explore
Minnesota Tourism from nonstate
sources. Up to one-half of the total
match requirement may include in-kind
contributions. Cash match is defined
as revenue to the state or documented
case expenditures directly expended to
support Explore Minnesota tourism
programs.

In the second year, for every dollar
generated from nonstate sources in the
previous year in excess of $4,000,000,
an amount of up to $1,000,000 is
appropriated from the general fund to
Explore Minnesota tourism for marketing
purposes. This incentive is ongoing.
In order to maximize marketing grant
benefits, the director must give
priority for organizational partnership
marketing grants to organizations with
year-round sustained tourism
activities. For programs and projects
submitted, the director must give
priority to those that encompass two or
more areas or that attract nonresident
travelers to the state.

Funding for the marketing grants is
available either year of the biennium.
Unexpended grant funds from the first
year are available in the second year.

The director may use grant dollars or
the value of in-kind services to
provide the state contribution for the
partnership grant program.

Any unexpended money from the general
fund appropriations made under this
section does not cancel but must be
placed in a special marketing account
for use by Explore Minnesota tourism
for additional marketing activities.

Of this amount, $50,000 the first year
is for a onetime grant to the
Mississippi River Parkway Commission to
support the increased promotion of
tourism along the Great River Road.
This appropriation is available until
June 30, 2007.

Of this amount, $175,000 the first year
and $175,000 the second year are for
the Minnesota Film Board. The
appropriation in each year is available
only upon receipt by the board of $1 in
matching contributions of money or
in-kind from nonstate sources for every
$3 provided by this appropriation.

Sec. 6. LABOR AND INDUSTRY

Subdivision 1.

Total
Appropriation 22,594,000 22,594,000

Summary by Fund

General 2,872,000 2,872,000

Workers'
Compensation 19,272,000 19,272,000

Workforce
Development 450,000 450,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Workers' Compensation

10,346,000 10,346,000

This appropriation is from the workers'
compensation fund.

Up to $125,000 the first year and up to
$125,000 the second year are for grants
to the Vinland Center for
rehabilitation services. The grants
shall be distributed as the department
refers injured workers to the Vinland
Center to receive rehabilitation
services.

Subd. 3.

Workplace Services

6,961,000 6,961,000

Summary by Fund

General 2,872,000 2,872,000

Workers'
Compensation 3,639,000 3,639,000

Workforce
Development 450,000 450,000

$350,000 each year is from the
workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178.

$100,000 the first year and $100,000
the second year are for labor education
and advancement program grants. This
appropriation is from the workforce
development fund.

The annual license fees authorized
under Minnesota Statutes, section
326.48, and detailed in Minnesota
Rules, part 5230.0100, subpart 3, shall
increase $20 for a journeyman
high-pressure piping pipefitter
license, $20 for a high-pressure piping
contracting pipefitter, $10 for an
inactive license, and $100 for a
high-pressure pipefitting business
license.

The permit filing and inspection fees
authorized under Minnesota Statutes,
section 326.47, and detailed in
Minnesota Rules, part 5230.0100,
subpart 4, shall be increased as
follows: the filing of a permit
application shall be increased $50, the
minimum high-pressure piping inspection
fee shall be increased $50, and the
schedule of inspection fee rates shall
be increased by ten percent.

Subd. 4.

General Support

5,287,000 5,287,000

This appropriation is from the workers'
compensation fund.

Sec. 7.

BUREAU OF MEDIATION
SERVICES 1,673,000 1,673,000

Sec. 8. WORKERS' COMPENSATION
COURT OF APPEALS 1,618,000 1,618,000

This appropriation is from the workers'
compensation fund.

Sec. 9. MINNESOTA HISTORICAL
SOCIETY

Subdivision 1.

Total
Appropriation 22,753,000 22,626,000

The amounts that may be spent from this
appropriation for each program are
specified in the following
subdivisions. The Minnesota Historical
Society shall make its best possible
efforts, including the use of
volunteers, to avoid closing historic
sites or substantially limiting public
access to them. Before closing any
site, the Minnesota Historical Society
must consult with, and fully consider
proposals from, interested community
groups or individuals who are willing
to provide financial or in-kind support
for site operations.

Subd. 2.

Education and
Outreach

12,727,000 12,727,000

Of this amount, $60,000 each year is to
offset the revenue loss from not
charging fees for general tours at the
Capitol. Notwithstanding Minnesota
Statutes, section 138.668, the
Minnesota Historical Society may not
charge a fee for its general tours at
the Capitol, but may charge fees for
special programs other than general
tours.

Of this amount, $743,000 each year is
for operation of the following
historical sites: Kelley Farm, Hill
House, Lower Sioux Agency, Fort
Ridgely, Historic Forestville, the
Forest History Center, and the Comstock
House. This appropriation is added to
the society's base. This paragraph is
effective the day following final
enactment.

Of this amount, $25,000 each year is
for a grant to the Minnesota
Sesquicentennial Commission for
planning and support of its mission.
This appropriation is added to the
society's general fund base through
fiscal year 2010.

Subd. 3.

Preservation and
Access

9,772,000 9,772,000

Subd. 4.

Pass-Through
Appropriations

254,000 127,000

(a) Minnesota International Center

43,000 42,000

(b) Minnesota Air National
Guard Museum

16,000 -0-

(c) Minnesota Military Museum

67,000 -0-

(d) Farmamerica

128,000 85,000

Notwithstanding any other law, this
appropriation may be used for
operations.

(e) Balances Forward

Any unencumbered balance remaining in
this subdivision the first year does
not cancel but is available for the
second year of the biennium.

Subd. 5.

Fund Transfer

The Minnesota Historical Society may
reallocate funds appropriated in and
between subdivisions 2 and 3 for any
program purposes.

Sec. 10. BOARD OF THE ARTS

Subdivision 1.

Total
Appropriation 8,593,000 8,593,000

If the appropriation for either year is
insufficient, the appropriation for the
other year is available.

Subd. 2.

Operations and Services

404,000 404,000

Subd. 3.

Grants Programs

5,767,000 5,767,000

Subd. 4.

Regional Arts
Councils

2,422,000 2,422,000

Sec. 11. BOARD OF
ACCOUNTANCY 487,000 487,000

Effective the day following final
enactment and no later than June 30,
2006, the Board of Accountancy shall
combine its administrative functions
with those of the Board of
Architecture, Engineering, Land
Surveying, Landscape Architecture,
Geoscience, and Interior Design. Both
appointed boards would remain intact,
and both would maintain their status as
separate state agencies.

Sec. 12.

BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE, GEOSCIENCE,
AND INTERIOR DESIGN 785,000 785,000

Sec. 13.

BOARD OF BARBER
EXAMINERS 699,000 699,000

Sec. 14.

PUBLIC UTILITIES
COMMISSION 4,163,000 4,163,000

Sec. 15. BOARD OF ELECTRICITY

On or before June 30, 2006, the board
shall transfer $4,000,000 from the
special revenue fund to the general
fund.

ARTICLE 2

JOBS AND ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2004, section 41A.09,
subdivision 2a, is amended to read:

Subd. 2a.

Definitions.

For the purposes of this section,
the terms defined in this subdivision have the meanings given
them.

(a) "Ethanol" means fermentation ethyl alcohol derived from
agricultural products, including potatoes, cereal grains, cheese
whey, and sugar beets; forest products; or other renewable
resources, including residue and waste generated from the
production, processing, and marketing of agricultural products,
forest products, and other renewable resources, that:

(1) meets all of the specifications in ASTM specification
deleted text begin D4806-01 deleted text end new text begin D4806-04a new text end ; and

(2) is denatured as specified in Code of Federal
Regulations, title 27, parts 20 and 21.

(b) "Ethanol plant" means a plant at which ethanol is
produced.

(c) "Commissioner" means the commissioner of agriculture.

Sec. 2.

new text begin [45.22] LICENSE EDUCATION.
new text end

new text begin The following fees must be paid to the commissioner:
new text end

new text begin (1) initial course approval, $10 for each hour or fraction
of one hour of education course approval sought. Initial course
approval expires on the last day of the 24th month after the
course is approved;
new text end

new text begin (2) renewal of course approval, $10 per course. Renewal of
course approval expires on the last day of the 24th month after
the course is renewed;
new text end

new text begin (3) initial coordinator approval, $100. Initial
coordinator approval expires on the last day of the 24th month
after the coordinator is approved; and
new text end

new text begin (4) renewal of coordinator approval, $10. Renewal of
coordinator approval expires on the last day of the 24th month
after the coordinator is renewed.
new text end

Sec. 3.

Minnesota Statutes 2004, section 60A.14,
subdivision 1, is amended to read:

Subdivision 1.

Fees other than examination fees.

In
addition to the fees and charges provided for examinations, the
following fees must be paid to the commissioner for deposit in
the general fund:

(a) by township mutual fire insurance companies;

(1) for filing certificate of incorporation $25 and
amendments thereto, $10;

(2) for filing annual statements, $15;

(3) for each annual certificate of authority, $15;

(4) for filing bylaws $25 and amendments thereto, $10;

(b) by other domestic and foreign companies including
fraternals and reciprocal exchanges;

(1) new text begin for filing an application for an initial certification
of authority to be admitted to transact business in this state,
$1,500;
new text end

new text begin (2) new text end for filing certified copy of certificate of articles of
incorporation, $100;

deleted text begin (2) deleted text end new text begin (3) new text end for filing annual statement, $225;

deleted text begin (3) deleted text end new text begin (4) new text end for filing certified copy of amendment to
certificate or articles of incorporation, $100;

deleted text begin (4) deleted text end new text begin (5) new text end for filing bylaws, $75 or amendments thereto, $75;

deleted text begin (5) deleted text end new text begin (6) new text end for each company's certificate of authority, $575,
annually;

(c) the following general fees apply:

(1) for each certificate, including certified copy of
certificate of authority, renewal, valuation of life policies,
corporate condition or qualification, $25;

(2) for each copy of paper on file in the commissioner's
office 50 cents per page, and $2.50 for certifying the same;

(3) for license to procure insurance in unadmitted foreign
companies, $575;

(4) for valuing the policies of life insurance companies,
one cent per $1,000 of insurance so valued, provided that the
fee shall not exceed $13,000 per year for any company. The
commissioner may, in lieu of a valuation of the policies of any
foreign life insurance company admitted, or applying for
admission, to do business in this state, accept a certificate of
valuation from the company's own actuary or from the
commissioner of insurance of the state or territory in which the
company is domiciled;

(5) for receiving and filing certificates of policies by
the company's actuary, or by the commissioner of insurance of
any other state or territory, $50;

(6) for each appointment of an agent filed with the
commissioner, $10;

(7) for filing forms and rates, $75 per filing, which may
be paid on a quarterly basis in response to an invoice. Billing
and payment may be made electronically;

(8) for annual renewal of surplus lines insurer license,
$300;

(9) $250 filing fee for a large risk alternative rating
option plan that meets the $250,000 threshold requirement.

The commissioner shall adopt rules to define filings that
are subject to a fee.

Sec. 4.

Minnesota Statutes 2004, section 60K.55,
subdivision 2, is amended to read:

Subd. 2.

Licensing fees.

(a) In addition to fees
provided for examinations, each insurance producer licensed
under this chapter shall pay to the commissioner a fee of:

(1) deleted text begin $40 deleted text end new text begin $50 new text end for an initial life, accident and health,
property, or casualty license issued to an individual insurance
producer, and a fee of deleted text begin $40 deleted text end new text begin $50 new text end for each renewal;

(2) deleted text begin $75 deleted text end new text begin $50 new text end for an initial variable life and variable
annuity license issued to an individual insurance producer, and
a fee of $50 for each renewal;

(3) deleted text begin $80 deleted text end new text begin $50 new text end for an initial personal lines license issued to
an individual insurance producer, and a fee of deleted text begin $80 deleted text end new text begin $50 new text end for each
renewal;

(4) deleted text begin $80 deleted text end new text begin $50 new text end for an initial limited lines license issued to
an individual insurance producer, and a fee of deleted text begin $80 deleted text end new text begin $50 new text end for each
renewal;

(5) $200 for an initial license issued to a business
entity, and a fee of deleted text begin $150 deleted text end new text begin $200 new text end for each renewal; and

(6) $500 for an initial surplus lines license, and a fee of
$500 for each renewal.

(b) Initial licenses issued under this chapter are valid
for a period not to exceed 24 months and expire on October 31 of
the renewal year assigned by the commissioner. Each renewal
insurance producer license is valid for a period of 24 months.
Licensees who submit renewal applications postmarked or
delivered on or before October 15 of the renewal year may
continue to transact business whether or not the renewal license
has been received by November 1. Licensees who submit
applications postmarked or delivered after October 15 of the
renewal year must not transact business after the expiration
date of the license until the renewal license has been received.

(c) All fees are nonreturnable, except that an overpayment
of any fee may be refunded upon proper application.

Sec. 5.

Minnesota Statutes 2004, section 72B.04,
subdivision 10, is amended to read:

Subd. 10.

Fees.

A fee of deleted text begin $80 deleted text end new text begin $50 new text end is imposed for each
initial license or temporary permit and deleted text begin $80 deleted text end new text begin $50 new text end for each renewal
thereof or amendment thereto. A fee of $20 is imposed for the
registration of each nonlicensed adjuster who is required to
register under section 72B.06. All fees shall be transmitted to
the commissioner and shall be payable to the Department of
Commerce.

Sec. 6.

Minnesota Statutes 2004, section 82B.05,
subdivision 1, is amended to read:

Subdivision 1.

Members.

The Real Estate Appraiser
Advisory Board consists of 15 members appointed by the
commissioner of commerce. Three of the members must be public
members, four must be consumers of appraisal services, and eight
must be real estate appraisers of whom not less than two members
shall be registered real property appraisers, licensed real
property appraisers, or certified residential real property
appraisers deleted text begin and deleted text end new text begin , new text end not less than two members shall be certified
general real property appraisers new text begin , and not less than one member
shall be certified by the Appraisal Qualification Board of the
Appraisal Foundation to teach the Uniform Standards of
Professional Appraisal Practice new text end . The board is governed by
section 15.0575.

Sec. 7.

Minnesota Statutes 2004, section 82B.05,
subdivision 5, is amended to read:

Subd. 5.

Conduct of meetings.

Places of regular board
meetings must be decided by the vote of members. Written notice
must be given to each member of the time and place of each
meeting of the board at least ten days before the scheduled date
of regular board meetings. The board shall establish procedures
for emergency board meetings and other operational procedures,
subject to the approval of the commissioner.

The members of the board shall elect a chair from among the
members to preside at board meetings.

A quorum of the board is eight members.

The board shall meet new text begin once every six months, or sooner new text end as
determined by a majority vote of the members or a call of the
commissioner.

Sec. 8.

Minnesota Statutes 2004, section 82B.09,
subdivision 1, is amended to read:

Subdivision 1.

Amounts.

The following fees must be paid
to the commissioner new text begin :
new text end

new text begin (1) $150 new text end for each initial individual real estate
appraiser's license deleted text begin : $150 if the license expires more than 12
months after issuance, $100 if the license expires less than 12
months after issuance deleted text end ; and deleted text begin a fee of
deleted text end

new text begin (2) new text end $100 for each renewal.

Sec. 9.

Minnesota Statutes 2004, section 115C.07,
subdivision 3, is amended to read:

Subd. 3.

Rules.

(a) The board shall adopt rules
regarding its practices and procedures, the form and procedure
for applications for compensation from the fund, procedures for
investigation of claims and specifying the costs that are
eligible for reimbursement from the fund.

(b) The board may adopt rules requiring certification of
environmental consultants.

(c) The board may adopt other rules necessary to implement
this chapter.

new text begin (d) The board may use section 14.389 to adopt rules
specifying the competitive bidding requirements for consultant
services proposals.
new text end

new text begin (e) The board may use section 14.389 to adopt rules
specifying the written proposal and invoice requirements for
consultant services.
new text end

Sec. 10.

Minnesota Statutes 2004, section 115C.09,
subdivision 3h, is amended to read:

Subd. 3h.

Reimbursement; aboveground tanks in bulk
plants.

(a) As used in this subdivision, "bulk plant" means an
aboveground or underground tank facility with a storage capacity
of more than 1,100 gallons but less than 1,000,000 gallons that
is used to dispense petroleum into cargo tanks for
transportation and sale at another location.

(b) Notwithstanding any other provision in this chapter and
any rules adopted pursuant to this chapter, the board shall
reimburse 90 percent of an applicant's cost for bulk plant
upgrades or closures completed between June 1, 1998, and
November 1, 2003, to comply with Minnesota Rules, chapter 7151,
provided that the board determines the costs were incurred and
reasonable. The reimbursement may not exceed $10,000 per bulk
plant. new text begin The board may provide reimbursement under this paragraph
for work completed after November 1, 2003, if the work was
contracted for prior to that date and was not completed by that
date as a result of an unanticipated situation, provided that an
application for reimbursement under this paragraph, which may be
a renewal of an application previously denied, is submitted
prior to December 31, 2005.
new text end

(c) For corrective action at a bulk plant located on what
is or was railroad right-of-way, the board shall reimburse 90
percent of total reimbursable costs on the first $40,000 of
reimbursable costs and 100 percent of any remaining reimbursable
costs when the applicant can document that more than one bulk
plant was operated on the same section of right-of-way, as
determined by the commissioner of commerce.

Sec. 11.

Minnesota Statutes 2004, section 115C.13, is
amended to read:

115C.13 REPEALER.

Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04,
115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09,
115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112,
115C.113, 115C.12, and 115C.13 new text begin , new text end are repealed effective June 30,
deleted text begin 2007 deleted text end new text begin 2012 new text end .

Sec. 12.

Minnesota Statutes 2004, section 116C.779,
subdivision 2, is amended to read:

Subd. 2.

Renewable energy production incentive.

(a)
Until January 1, 2018, up to deleted text begin $6,000,000 deleted text end new text begin $10,900,000 new text end annually
must be allocated from available funds in the account to fund
renewable energy production incentives. deleted text begin $4,500,000 deleted text end new text begin $9,400,000
new text end of this annual amount is for incentives for up to deleted text begin 100 deleted text end new text begin 200
new text end megawatts of electricity generated by wind energy conversion
systems that are eligible for the incentives under section
216C.41. The balance of this amount, up to $1,500,000 annually,
may be used for production incentives for on-farm biogas
recovery facilities that are eligible for the incentive under
section 216C.41 or for production incentives for other
renewables, to be provided in the same manner as under section
216C.41. Any portion of the deleted text begin $6,000,000 deleted text end new text begin $10,900,000 new text end not expended
in any calendar year for the incentive is available for other
spending purposes under this section. This subdivision does not
create an obligation to contribute funds to the account.

(b) The Department of Commerce shall determine eligibility
of projects under section 216C.41 for the purposes of this
subdivision. At least quarterly, the Department of Commerce
shall notify the public utility of the name and address of each
eligible project owner and the amount due to each project under
section 216C.41. The public utility shall make payments within
15 working days after receipt of notification of payments due.

Sec. 13.

Minnesota Statutes 2004, section 116J.551,
subdivision 1, is amended to read:

Subdivision 1.

Grant account.

A contaminated site
cleanup and development grant account is created in the general
fund. Money in the account may be used, as appropriated by law,
to make grants as provided in section 116J.554 and to pay for
the commissioner's costs in reviewing applications and making
grants. new text begin Notwithstanding section 16A.28, money appropriated to
the account is available for four years.
new text end

Sec. 14.

Minnesota Statutes 2004, section 116J.571, is
amended to read:

116J.571 CREATION OF ACCOUNTS.

Two deleted text begin greater Minnesota deleted text end redevelopment accounts are created,
one in the general fund and one in the bond proceeds fund.
Money in the accounts may be used to make grants as provided in
section 116J.575 deleted text begin . Money in the bond proceeds fund may only be
used for eligible costs for publicly owned property. Money in
the general fund may be used deleted text end new text begin and new text end to pay for the commissioner's
costs in reviewing deleted text begin the deleted text end applications new text begin and making grants new text end .

Sec. 15.

Minnesota Statutes 2004, section 116J.572, is
amended to read:

116J.572 DEFINITIONS.

Subdivision 1.

Scope of application.

For purposes of
sections 116J.571 to 116J.575, the terms in this section have
the meanings given.

Subd. 2.

Development authority.

"Development authority"
includes a statutory or home rule charter city, county, housing
and redevelopment authority, economic development authority, or
port authority deleted text begin located outside deleted text end new text begin .
new text end

new text begin Subd. 2a. new text end

new text begin Metropolitan area. new text end

new text begin "Metropolitan area" means
new text end the seven-county metropolitan area, as defined in section
473.121, subdivision 2.

new text begin Subd. 2b. new text end

new text begin Municipality. new text end

new text begin "Municipality" means the
statutory or home rule charter city, town, or, in the case of
unorganized territory, county in which the redevelopment is
located.
new text end

Subd. 3.

deleted text begin eligible deleted text end new text begin redevelopment new text end costs or costs.

" deleted text begin Eligible deleted text end new text begin Redevelopment new text end costs" or "costs" means the costs of
land acquisition, stabilizing unstable soils new text begin when infill is
required new text end , demolition, infrastructure improvements, new text begin and new text end ponding
or other environmental infrastructure deleted text begin ; building construction,
design and engineering; deleted text end and new text begin costs necessary for new text end adaptive reuse
of buildings new text begin , including remedial activities new text end . deleted text begin Eligible costs do
not include project administration and legal fees.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Redevelopment. deleted text end

deleted text begin "Redevelopment" means recycling
obsolete, abandoned, or underutilized properties for new
industrial, commercial, or residential uses.
deleted text end

Sec. 16.

Minnesota Statutes 2004, section 116J.574, is
amended to read:

116J.574 GRANT APPLICATIONS.

Subdivision 1.

Application required.

To obtain a
new text begin redevelopment new text end grant, a development authority shall apply to the
commissioner. new text begin The governing body of the municipality must
approve the application by resolution.
new text end

Subd. 2.

Required content.

The commissioner shall
prescribe and provide the application form. The application
must include at least the following information:

(1) identification of the site;

(2) new text begin a redevelopment plan for the site;
new text end

new text begin (3) new text end a detailed deleted text begin budget deleted text end new text begin estimate new text end , deleted text begin including deleted text end new text begin along with
new text end necessary supporting evidence, of the total new text begin redevelopment new text end costs
for the site deleted text begin including the total eligible redevelopment costs deleted text end ;

deleted text begin (3) a complete deleted text end new text begin (4) an assessment of the development
potential or likely use of the site after completion of the
new text end redevelopment plan, including any specific commitments from
third parties to construct improvements on the site;

deleted text begin (4) a complete financing plan, including deleted text end new text begin (5) new text end the manner in
which the deleted text begin development authority uses innovative financial
partnerships between government, private for-profit, and
nonprofit sectors deleted text end new text begin municipality will meet the local match
requirement new text end ; and

deleted text begin (5) deleted text end new text begin (6) new text end any additional information or material deleted text begin that deleted text end the
commissioner prescribes.

Sec. 17.

Minnesota Statutes 2004, section 116J.575, as
amended by Laws 2005, chapter 20, article 1, section 33, is
amended to read:

116J.575 [GRANTS.]

Subdivision 1.

Commissioner discretion.

The commissioner
may make a grant for up to 50 percent of the eligible costs of a
project. The determination of whether to make a grant for a
site is within the discretion of the commissioner, subject to
this section and sections 116J.571 to 116J.574 and available
unencumbered money in the deleted text begin greater Minnesota deleted text end redevelopment
account. Notwithstanding section 116J.573, if the commissioner
determines that the applications for grants for projects in
greater Minnesota are less than the amount of grant funds
available, the commissioner may make grants for projects
anywhere in Minnesota. The commissioner's decisions and
application of the priorities under this section are not subject
to judicial review, except for abuse of discretion.

new text begin Subd. 1a. new text end

new text begin Priorities. new text end

new text begin (a) If applications for grants
exceed the available appropriations, grants shall be made for
sites that, in the commissioner's judgment, provide the highest
return in public benefits for the public costs incurred.
"Public benefits" include job creation, environmental benefits
to the state and region, efficient use of public transportation,
efficient use of existing infrastructure, provision of
affordable housing, multiuse development that constitutes
community rebuilding rather than single-use development, crime
reduction, blight reduction, community stabilization, and
property tax base maintenance or improvement. In making this
judgment, the commissioner shall give priority to redevelopment
projects with one or more of the following characteristics:
new text end

new text begin (1) the need for redevelopment in conjunction with
contamination remediation needs;
new text end

new text begin (2) the redevelopment project meets current tax increment
financing requirements for a redevelopment district and tax
increments will contribute to the project;
new text end

new text begin (3) the redevelopment potential within the municipality;
new text end

new text begin (4) proximity to public transit if located in the
metropolitan area; and
new text end

new text begin (5) multijurisdictional projects that take into account the
need for affordable housing, transportation, and environmental
impact.
new text end

new text begin (b) The factors in paragraph (a) are not listed in a rank
order of priority; rather, the commissioner may weigh each
factor, depending upon the facts and circumstances, as the
commissioner considers appropriate.
new text end

Subd. 2.

Application cycles.

In making grants, the
commissioner shall establish semiannual application deadlines in
which grants will be authorized from all or part of the
available money in the account.

new text begin Subd. 3. new text end

new text begin Match required. new text end

new text begin In order to qualify for a grant
under sections 116J.571 to 116J.575, the municipality must pay
for at least one-half of the redevelopment costs as a local
match from any money available to the municipality.
new text end

Sec. 18.

Minnesota Statutes 2004, section 116J.63,
subdivision 2, is amended to read:

Subd. 2.

Fees.

new text begin (a) new text end Fees for reports, publications, or
related publicity or promotional material are not subject to the
rulemaking requirements of chapter 14 and are not subject to
section 16A.1285. The fees prescribed by the commissioner must
be commensurate with the distribution objective of the
department for the material produced or with the cost of
furnishing the services. new text begin Except as described in paragraph (b),
new text end all fees for materials and services must be deposited in the
general fund.

new text begin (b) The commissioner may sell marketing materials at cost
to economic development organizations and others in quantities
that would not otherwise be available through general fund
appropriations. Funds received must be placed in a special
revolving account and are appropriated to the commissioner to
pay for the production of the materials.
new text end

Sec. 19.

Minnesota Statutes 2004, section 116J.8731,
subdivision 5, is amended to read:

Subd. 5.

Grant limits.

A Minnesota investment fund grant
may not be approved for an amount in excess of $1,000,000. This
limit covers all money paid to complete the same project,
whether paid to one or more grant recipients and whether paid in
one or more fiscal years. deleted text begin The portion deleted text end new text begin A local community or
recognized Indian tribal government may retain 20 percent, but
not more than $100,000 new text end of a Minnesota investment fund grant deleted text begin that
exceeds $100,000 must be repaid to the state deleted text end when it is repaid
to the local community or recognized Indian tribal government by
the person or entity to which it was loaned by the local
community or Indian tribal government. Money repaid to the
state must be credited to a Minnesota investment revolving loan
account in the state treasury. Funds in the account are
appropriated to the commissioner and must be used in the same
manner as are funds appropriated to the Minnesota investment
fund. Funds repaid to the state through existing Minnesota
investment fund agreements must be credited to the Minnesota
investment revolving loan account effective July 1, 2003. A
grant or loan may not be made to a person or entity for the
operation or expansion of a casino or a store which is used
solely or principally for retail sales. Persons or entities
receiving grants or loans must pay each employee total
compensation, including benefits not mandated by law, that on an
annualized basis is equal to at least 110 percent of the federal
poverty level for a family of four.

Sec. 20.

Minnesota Statutes 2004, section 116J.8747,
subdivision 2, is amended to read:

Subd. 2.

Qualified job training program.

To qualify for
grants under this section, a job training program must satisfy
the following requirements:

(1) the program must be operated by a nonprofit corporation
that qualifies under section 501(c)(3) of the Internal Revenue
Code;

(2) the program must spend at least $15,000 per graduate of
the program;

(3) the program must provide education and training in:

(i) basic skills, such as reading, writing, mathematics,
and communications;

(ii) thinking skills, such as reasoning, creative thinking,
decision making, and problem solving; and

(iii) personal qualities, such as responsibility,
self-esteem, self-management, honesty, and integrity;

(4) the program must provide income supplements, when
needed, to participants for housing, counseling, tuition, and
other basic needs;

(5) the program's education and training course must last
for new text begin an average of new text end at least six months;

(6) individuals served by the program must:

(i) be 18 years of age or older;

(ii) have federal adjusted gross income of no more than
$11,000 per year in the deleted text begin two years deleted text end new text begin calendar year new text end immediately
before entering the program;

(iii) have assets of no more than $7,000, excluding the
value of a homestead; and

(iv) not have been claimed as a dependent on the federal
tax return of another person in the previous taxable year; and

(7) the program must be certified by the commissioner of
employment and economic development as meeting the requirements
of this subdivision.

Sec. 21.

Minnesota Statutes 2004, section 116J.994,
subdivision 7, is amended to read:

Subd. 7.

Reports by recipients to grantors.

(a) A
business subsidy grantor must monitor the progress by the
recipient in achieving agreement goals.

(b) A recipient must provide information regarding goals
and results for two years after the benefit date or until the
goals are met, whichever is later. If the goals are not met,
the recipient must continue to provide information on the
subsidy until the subsidy is repaid. The information must be
filed on forms developed by the commissioner in cooperation with
representatives of local government. Copies of the completed
forms must be sent to the local government agency that provided
the subsidy or to the commissioner if the grantor is a state
agency. If the Iron Range Resources and Rehabilitation Board is
the grantor, the copies must be sent to the board. The report
must include:

(1) the type, public purpose, and amount of subsidies and
type of district, if the subsidy is tax increment financing;

(2) the hourly wage of each job created with separate bands
of wages;

(3) the sum of the hourly wages and cost of health
insurance provided by the employer with separate bands of wages;

(4) the date the job and wage goals will be reached;

(5) a statement of goals identified in the subsidy
agreement and an update on achievement of those goals;

(6) the location of the recipient prior to receiving the
business subsidy;

(7) new text begin the number of employees who ceased to be employed by
the recipient when the recipient relocated to become eligible
for the business subsidy;
new text end

new text begin (8) new text end why the recipient did not complete the project outlined
in the subsidy agreement at their previous location, if the
recipient was previously located at another site in Minnesota;

deleted text begin (8) deleted text end new text begin (9) new text end the name and address of the parent corporation of
the recipient, if any;

deleted text begin (9) deleted text end new text begin (10) new text end a list of all financial assistance by all grantors
for the project; and

deleted text begin (10) deleted text end new text begin (11) new text end other information the commissioner may request.

A report must be filed no later than March 1 of each year for
the previous year. The local agency and the Iron Range
Resources and Rehabilitation Board must forward copies of the
reports received by recipients to the commissioner by April 1.

(c) Financial assistance that is excluded from the
definition of "business subsidy" by section 116J.993,
subdivision 3, clauses (4), (5), (8), and (16), is subject to
the reporting requirements of this subdivision, except that the
report of the recipient must include instead:

(1) the type, public purpose, and amount of the financial
assistance, and type of district if the assistance is tax
increment financing;

(2) progress towards meeting goals stated in the assistance
agreement and the public purpose of the assistance;

(3) if the agreement includes job creation, the hourly wage
of each job created with separate bands of wages;

(4) if the agreement includes job creation, the sum of the
hourly wages and cost of health insurance provided by the
employer with separate bands of wages;

(5) the location of the recipient prior to receiving the
assistance; and

(6) other information the grantor requests.

(d) If the recipient does not submit its report, the local
government agency must mail the recipient a warning within one
week of the required filing date. If, after 14 days of the
postmarked date of the warning, the recipient fails to provide a
report, the recipient must pay to the grantor a penalty of $100
for each subsequent day until the report is filed. The maximum
penalty shall not exceed $1,000.

Sec. 22.

Minnesota Statutes 2004, section 116J.994,
subdivision 9, is amended to read:

Subd. 9.

Compilation and summary report.

The Department
of Employment and Economic Development must publish a
compilation and summary of the results of the reports for the
previous two calendar years by December 1 of 2004 and every
other year thereafter. The reports of the government agencies
to the department and the compilation and summary report of the
department must be made available to the public.

The commissioner must coordinate the production of reports
so that useful comparisons across time periods and across
grantors can be made. The commissioner may add other
information to the report as the commissioner deems necessary to
evaluate business subsidies. Among the information in the
summary and compilation report, the commissioner must include:

(1) total amount of subsidies awarded in each development
region of the state;

(2) distribution of business subsidy amounts by size of the
business subsidy;

(3) distribution of business subsidy amounts by time
category;

(4) distribution of subsidies by type and by public
purpose;

(5) percent of all business subsidies that reached their
goals;

(6) percent of business subsidies that did not reach their
goals by two years from the benefit date;

(7) total dollar amount of business subsidies that did not
meet their goals after two years from the benefit date;

(8) percent of subsidies that did not meet their goals and
that did not receive repayment;

(9) list of recipients that have failed to meet the terms
of a subsidy agreement in the past five years and have not
satisfied their repayment obligations;

(10) number of part-time and full-time jobs within separate
bands of wages new text begin for the entire state and for each development
region of the state new text end ; deleted text begin and
deleted text end

(11) benefits paid within separate bands of wages new text begin for the
entire state and for each development region of the state; and
new text end

new text begin (12) number of employees in the entire state and in each
development region of the state who ceased to be employed
because their employers relocated to become eligible for a
business subsidy new text end .

Sec. 23.

Minnesota Statutes 2004, section 116L.03,
subdivision 2, is amended to read:

Subd. 2.

Appointment.

The Minnesota Job Skills
Partnership Board consists of: seven members appointed by the
governor, deleted text begin the chair of the governor's Workforce Development
Council, deleted text end the commissioner of employment and economic
development, the chancellor, or the chancellor's designee, of
the Minnesota State Colleges and Universities, the president, or
the president's designee, of the University of Minnesota, and
two nonlegislator members, one appointed by the Subcommittee on
Committees of the senate Committee on Rules and Administration
and one appointed by the speaker of the house. If the
chancellor or the president of the university makes a
designation under this subdivision, the designee must have
experience in technical education. Four of the appointed
members must be members of the governor's Workforce Development
Council, of whom two must represent organized labor and two must
represent business and industry. One of the appointed members
must be a representative of a nonprofit organization that
provides workforce development or job training services.

Sec. 24.

Minnesota Statutes 2004, section 116L.05, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Use of workforce development funds. new text end

new text begin After March
1 of any fiscal year, the board may use workforce development
funds for the purposes outlined in sections 116L.04, 116L.06,
and 116L.10 to 116L.14, or to provide incumbent worker training
services under section 116L.18 if the following conditions have
been met:
new text end

new text begin (1) the board examines relevant economic indicators,
including the projected number of layoffs for the remainder of
the fiscal year and the next fiscal year, evidence of declining
and expanding industries, the number of initial applications for
and the number of exhaustions of unemployment benefits, job
vacancy data, and any additional relevant information brought to
the board's attention;
new text end

new text begin (2) the board accounts for all allocations made in section
116L.17, subdivision 2;
new text end

new text begin (3) based on the past expenditures and projected revenue,
the board estimates future funding needs for services under
section 116L.17 for the remainder of the current fiscal year and
the next fiscal year;
new text end

new text begin (4) the board determines there will be unspent funds after
meeting the needs of dislocated workers in the current fiscal
year and there will be sufficient revenue to meet the needs of
dislocated workers in the next fiscal year; and
new text end

new text begin (5) the board reports its findings in clauses (1) to (4) to
the chairs of legislative committees with jurisdiction over the
workforce development fund, to the commissioners of revenue and
finance, and to the public.
new text end

Sec. 25.

Minnesota Statutes 2004, section 116L.17,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this
section, the following terms have the meanings given them in
this subdivision.

(b) "Commissioner" means the commissioner of employment and
economic development.

(c) "Dislocated worker" means an individual who is a
resident of Minnesota at the time employment ceased or was
working in the state at the time employment ceased and:

(1) has been permanently separated or has received a notice
of permanent separation from public or private sector employment
and is eligible for or has exhausted entitlement to unemployment
benefits, and is unlikely to return to the previous industry or
occupation;

(2) has been long-term unemployed and has limited
opportunities for employment or reemployment in the same or a
similar occupation in the area in which the individual resides,
including older individuals who may have substantial barriers to
employment by reason of age;

(3) has been self-employed, including farmers and ranchers,
and is unemployed as a result of general economic conditions in
the community in which the individual resides or because of
natural disasters; or

(4) is a displaced homemaker. A "displaced homemaker" is
an individual who has spent a substantial number of years in the
home providing homemaking service and (i) has been dependent
upon the financial support of another; and now due to divorce,
separation, death, or disability of that person, must find
employment to self support; or (ii) derived the substantial
share of support from public assistance on account of dependents
in the home and no longer receives deleted text begin such support deleted text end new text begin cash assistance
under chapter 256J new text end .

To be eligible under this clause, the support must have
ceased while the worker resided in Minnesota.

(d) "Eligible organization" means a state or local
government unit, nonprofit organization, community action
agency, business organization or association, or labor
organization.

(e) "Plant closing" means the announced or actual permanent
shutdown of a single site of employment, or one or more
facilities or operating units within a single site of employment.

(f) "Substantial layoff" means a permanent reduction in the
workforce, which is not a result of a plant closing, and which
results in an employment loss at a single site of employment
during any 30-day period for at least 50 employees excluding
those employees that work less than 20 hours per week.

Sec. 26.

new text begin [116L.18] SPECIAL INCUMBENT WORKER TRAINING
GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the special
incumbent worker training grants is to expand opportunities for
businesses and workers to gain new skills that are in demand in
the Minnesota economy. The board shall establish criteria for
incumbent worker grants under this section and may encourage
creative training models, innovative partnerships, and expansion
or replication of promising practices.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this
section, the following terms have the meanings given them.
new text end

new text begin (b) "Incumbent worker" means an individual employed by a
qualifying employer.
new text end

new text begin (c) "Qualifying employer" means a for-profit business or
nonprofit organization in Minnesota with at least one full-time
paid employee. Public sector organizations are not considered
qualifying employers.
new text end

new text begin (d) "Eligible organization" has the meaning given in
section 116L.17.
new text end

new text begin Subd. 3. new text end

new text begin Amount of grants. new text end

new text begin A grant to an eligible
organization may not exceed $400,000.
new text end

new text begin Subd. 4. new text end

new text begin Matching funds. new text end

new text begin The board shall require
matching funds from qualifying employers in the form of funding,
equipment, or faculty.
new text end

new text begin Subd. 5. new text end

new text begin Use of funds. new text end

new text begin Eligible organizations shall use
funds granted under this section for direct training services to
provide a measurable increase in the job-related skills of
participating incumbent workers. Eligible organizations may
also provide basic assessment, counseling, and preemployment
training services requested by the qualifying employer. No
funds may be used for support services as described in section
116L.17, subdivision 4, clause (2).
new text end

new text begin Subd. 6. new text end

new text begin Performance outcome measures. new text end

new text begin The board and the
commissioner of employment and economic development shall
jointly develop performance outcome measures and standards for
this program. The commissioner and board shall consult with
eligible organizations in establishing standards. Measures at a
minimum must include posttraining retention, promotion, and wage
increase. The board and commissioner shall provide a report to
the legislature by March 1 of each year on the previous fiscal
year's program performance. Eligible organizations must provide
performance data in a timely manner for the completion of this
report.
new text end

Sec. 27.

Minnesota Statutes 2004, section 116L.20,
subdivision 2, is amended to read:

Subd. 2.

Disbursement of special assessment funds.

(a)
The money collected under this section shall be deposited in the
state treasury and credited to the workforce development fund to
provide for employment and training programs. The workforce
development fund is created as a special account in the state
treasury.

(b) All money in the fund not otherwise appropriated or
transferred is appropriated to the Job Skills Partnership Board
for the purposes of section 116L.17 new text begin and as provided for in
paragraph (d) new text end . The board must act as the fiscal agent for the
money and must disburse that money for the purposes of section
116L.17, not allowing the money to be used for any other
obligation of the state. All money in the workforce development
fund shall be deposited, administered, and disbursed in the same
manner and under the same conditions and requirements as are
provided by law for the other special accounts in the state
treasury, except that all interest or net income resulting from
the investment or deposit of money in the fund shall accrue to
the fund for the purposes of the fund.

(c) Reimbursement for costs related to collection of the
special assessment shall be in an amount negotiated between the
commissioner and the United States Department of Labor.

new text begin (d) If the board determines that the conditions of section
116L.05, subdivision 5, have been met, the board may use funds
for the purposes outlined in sections 116L.04, 116L.06, and
116L.10 to 116L.14, or to provide incumbent worker training
services under section 116L.18.
new text end

Sec. 28.

Minnesota Statutes 2004, section 183.41, is
amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Annual permit. new text end

new text begin The commissioner shall issue an
annual permit to a boat for the purpose of carrying passengers
for hire on the inland waters of the state provided the boat
satisfies the inspection requirements of this section. A boat
subject to inspection under this chapter shall be registered
with the Division of Boiler Inspection and shall be inspected
before a permit may be issued.
new text end

Sec. 29.

Minnesota Statutes 2004, section 183.411,
subdivision 2a, is amended to read:

Subd. 2a.

Inspection fees.

The deleted text begin commissioner may set fees
deleted text end new text begin fee new text end for inspecting traction engines, show boilers, and show
engines new text begin shall be the hourly rate new text end pursuant to section
deleted text begin 16A.1285 deleted text end new text begin 183.545, subdivision 3a new text end .

Sec. 30.

Minnesota Statutes 2004, section 183.411,
subdivision 3, is amended to read:

Subd. 3.

Licenses.

A license to operate steam farm
traction engines, portable and stationary show engines and
portable and stationary show boilers shall be issued to an
applicant who:

deleted text begin (a) deleted text end new text begin (1) new text end is 18 years of age or older;

deleted text begin (b) deleted text end new text begin (2) new text end has a licensed second class or higher class
engineer or steam traction (hobby) engineer sign the affidavit
attesting to the applicant's competence in operating said
devices;

deleted text begin (c) deleted text end new text begin (3) new text end passes a written test for competence in operating
said devices;

deleted text begin (d) deleted text end new text begin (4) new text end has at least 25 hours of actual operating
experience on said devices; and

deleted text begin (e) deleted text end new text begin (5) new text end pays the required fee.

A license shall be valid for the lifetime of the licensee.
A onetime fee deleted text begin set by the commissioner deleted text end pursuant to section
deleted text begin 16A.1285 deleted text end new text begin 183.545, subdivision 4 new text end , shall be charged for the
license.

Sec. 31.

Minnesota Statutes 2004, section 183.42, is
amended to read:

183.42 INSPECTION deleted text begin EACH YEAR deleted text end new text begin AND REGISTRATION new text end .

new text begin Subdivision 1. new text end

new text begin Inspection. new text end

Every owner, lessee, or other
person having charge of boilers deleted text begin , deleted text end new text begin or new text end pressure vessels deleted text begin , or any
boat deleted text end subject to inspection under this chapter shall cause them
to be inspected by the Division of Boiler Inspection.
Boilers deleted text begin and boats deleted text end subject to inspection under this chapter must
be inspected at least annually and pressure vessels inspected at
least every two years except as provided under section
183.45. deleted text begin A person who fails to have the inspection required by
this section shall pay to the commissioner a penalty in the
amount of the cost of inspection up to a maximum of $1,000. deleted text end new text begin The
commissioner shall assess a $250 penalty per applicable boiler
or pressure vessel for failure to have the inspection required
by this section and may seal the boiler or pressure vessel for
refusal to allow an inspection as required by this section.
new text end

new text begin Subd. 2. new text end

new text begin Registration. new text end

new text begin Every owner, lessee, or other
person having charge of boilers or pressure vessels subject to
inspection under this chapter shall register said objects with
the Division of Boiler Inspection. The registration shall be
renewed annually and is applicable to each object separately.
The fee for registration of a boiler or pressure vessel shall be
pursuant to section 183.545, subdivision 10. The Division of
Boiler Inspection may issue a billing statement for each boiler
and pressure vessel on record with the division, and may
determine a monthly schedule of billings to be followed for
owners, lessees, or other persons having charge of a boiler or
pressure vessel subject to inspection under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Certificate of registration. new text end

new text begin The Division of
Boiler Inspection shall issue a certificate of registration that
lists the boilers and pressure vessels at the location,
expiration date of the certificate of registration, last
inspection date of each boiler and pressure vessel, and maximum
allowable working pressure for each boiler and pressure vessel.
The commissioner may make an electronic certificate of
registration available to be printed by the owner, lessee, or
other person having charge of the boiler or pressure vessel.
new text end

Sec. 32.

Minnesota Statutes 2004, section 183.44,
subdivision 1, is amended to read:

Subdivision 1.

Masters deleted text begin and pilots deleted text end .

The deleted text begin Division of
Boiler Inspection deleted text end new text begin commissioner or the commissioner's designee
new text end shall examine all masters deleted text begin and pilots deleted text end of boats and vessels
carrying passengers for hire on the inland waters of the state
as to their qualifications and fitness. If found deleted text begin trustworthy
deleted text end new text begin qualified new text end and competent to perform their duties as a master deleted text begin or
pilot deleted text end new text begin of a boat carrying passengers for hire, new text end they shall be
deleted text begin given deleted text end new text begin issued new text end a deleted text begin certificate deleted text end new text begin license new text end authorizing them to act as
such on the inland waters of the state. new text begin The license shall be
renewed annually. Fees for the original issue and renewal of
the license authorized under this section shall be pursuant to
section 183.545, subdivision 2.
new text end

Sec. 33.

Minnesota Statutes 2004, section 183.51,
subdivision 2, is amended to read:

Subd. 2.

Applications.

Any person who desires an
engineer's license shall deleted text begin make deleted text end new text begin submit new text end a written application, on
blanks furnished by the deleted text begin inspector. The person shall also
successfully pass a written examination for such grade of
license applied for deleted text end new text begin commissioner or designee, at least 15 days
before the requested exam date. The application is valid for
one year from the date the commissioner or designee received the
application new text end .

Sec. 34.

Minnesota Statutes 2004, section 183.51, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Examinations. new text end

new text begin Each applicant for a license
must pass an examination approved by the commissioner. The
examinations shall be of sufficient scope to establish the
competency of the applicant to operate a boiler of the
applicable license class and grade.
new text end

Sec. 35.

Minnesota Statutes 2004, section 183.545, is
amended to read:

183.545 FEES FOR INSPECTION.

Subdivision 1.

Fee amount; vessels new text begin operated on inland
waters new text end .

The fees for the inspection of the hull, boiler,
machinery, and equipments of vessels deleted text begin are to be set by the
commissioner pursuant to section 16A.1285, for vessels of 50
tons burden or over and vessels of less than 50 tons
burden. deleted text end new text begin operated on inland waters and that carry passengers for
hire are as follows:
new text end

new text begin (1) annual operating permit and safety inspections shall be
$200; and
new text end

new text begin (2) other inspections, including dry-dock inspections, boat
stability tests, and plan reviews, are billed at the hourly rate
set in subdivision 3a.
new text end

Subd. 2.

Fee amounts; masters deleted text begin and pilots deleted text end .

The
deleted text begin commissioner shall, pursuant to section 16A.1285, set
the deleted text end new text begin license and application new text end fee for deleted text begin an examination of an
applicant for deleted text end a master's deleted text begin or pilot's deleted text end license new text begin is $50 new text end , deleted text begin for an deleted text end new text begin or
$20 if the applicant possesses a valid, unlimited, current
United States Coast Guard master's license. The new text end annual renewal
of a master's deleted text begin or a pilot's deleted text end license deleted text begin , and for an deleted text end new text begin is $20. The
new text end annual renewal if paid later than deleted text begin ten deleted text end new text begin 30 new text end days after
expiration new text begin is $35. The fee for replacement of a current, valid
license is $20 new text end .

Subd. 3.

new text begin boiler and pressure vessel new text end inspection fees.

The
fees for the annual inspection of boilers and biennial
inspection of pressure vessels are deleted text begin to be set by the commissioner
pursuant to section 16A.1285, for deleted text end new text begin as follows new text end :

deleted text begin (a) deleted text end new text begin (1) new text end boiler inaccessible for internal inspection new text begin , $55 new text end ;

deleted text begin (b) deleted text end new text begin (2) new text end boiler accessible for internal inspection new text begin , $55 new text end ;

deleted text begin (c) deleted text end new text begin (3) new text end boiler internal inspection over 2,000 square feet
heating surface new text begin shall be billed at the hourly rate set in
subdivision 3a new text end ;

deleted text begin (d) boiler internal inspection over 4,000 square feet
heating surface;
deleted text end

deleted text begin (e) boiler internal inspection over 10,000 square feet
heating surface;
deleted text end

deleted text begin (f) deleted text end new text begin (4) new text end boiler accessible for internal inspection requiring
one-half day or more of inspection time shall be billed at the
deleted text begin established shop inspection fee deleted text end new text begin hourly new text end rate new text begin set in subdivision
3a new text end ;

deleted text begin (g) deleted text end new text begin (5) new text end pressure vessel for internal inspection via
manhole new text begin , $35 new text end ; and

deleted text begin (h) deleted text end new text begin (6) new text end pressure vessel inaccessible for internal
inspection new text begin , $35 new text end .

deleted text begin An additional fee based on the scale of fees applicable to
an inspection shall be charged when it is necessary to make a
special trip for a hydrostatic test of a boiler or pressure
vessel.
deleted text end

new text begin Subd. 3a. new text end

new text begin Hourly rate. new text end

The deleted text begin commissioner shall, pursuant
to section 16A.1285, set shop inspection fees deleted text end new text begin hourly rate for an
inspection not set elsewhere in this chapter is $80 per hour new text end .
Inspection time includes all time related to the deleted text begin shop
deleted text end inspection. new text begin Travel time, billed at the hourly rate, and travel
expenses shall be billed for shop inspections, triennial audits,
boat stability tests, hydrostatic tests of a boiler or pressure
vessel, or any other inspection or consultation requiring a
special trip.
new text end

Subd. 4.

deleted text begin applicants deleted text end new text begin boiler engineer license new text end fees.

deleted text begin The
commissioner shall, pursuant to section 16A.1285, set the fee
for an examination of an applicant deleted text end For the following licenses new text begin ,
the nonrefundable license and application fee is new text end :

deleted text begin (a) deleted text end new text begin (1) new text end chief engineer's license new text begin , $50 new text end ;

deleted text begin (b) deleted text end new text begin (2) new text end first class engineer's license new text begin , $50 new text end ;

deleted text begin (c) deleted text end new text begin (3) new text end second class engineer's license new text begin , $50 new text end ;

deleted text begin (d) deleted text end new text begin (4) new text end special engineer's license new text begin , $20 new text end ; new text begin and
new text end

deleted text begin (e) deleted text end new text begin (5) new text end traction new text begin or hobby boiler new text end engineer's license deleted text begin ; and deleted text end new text begin ,
$50.
new text end

deleted text begin (f) pilot's license.
deleted text end

deleted text begin If an applicant, after an examination, is entitled to
receive a license, it shall be issued without the payment of any
additional charge. Any license so issued expires one year after
the date of its issuance. deleted text end An engineer's license may be renewed
upon application deleted text begin therefor deleted text end and deleted text begin the deleted text end payment of an annual renewal
fee deleted text begin as set by the commissioner pursuant to section 16A.1285 deleted text end new text begin of
$20 new text end . new text begin The annual renewal, if paid later than 30 days after
expiration, is $35. The fee for replacement of a current, valid
license is $20.
new text end

Subd. 6.

National board inspectors.

The fee for an
examination of an applicant for a National Board of Boiler and
Pressure Vessels Inspectors commission deleted text begin shall be set by the
commissioner pursuant to section 16A.1285 deleted text end new text begin is $100 new text end .

Subd. 7.

Nuclear endorsement.

The fee for each
examination of an applicant for a National Board of Boiler and
Pressure Vessels commissioned inspectors nuclear endorsement
deleted text begin shall be set by the commissioner pursuant to section 16A.1285 deleted text end new text begin is
$100 new text end .

Subd. 8.

Certificate of competency.

The fee for issuance
of the original state of Minnesota certificate of competency for
inspectors deleted text begin shall be set by the commissioner pursuant to section
16A.1285 deleted text end new text begin is $50 new text end . This fee is waived for inspectors who paid the
examination fee. The fee for an annual renewal of the state of
Minnesota certificate of competency deleted text begin shall be set by the
commissioner pursuant to section 16A.1285 deleted text end new text begin is $35 new text end , and is due
January 1 of each year. new text begin The fee for replacement of a current,
valid license is $35.
new text end

Subd. 9.

Deposit of fees.

Fees received under this
section deleted text begin and section 183.57 deleted text end must be deposited in the state
treasury and credited to the general fund.

new text begin Subd. 10. new text end

new text begin Boiler and pressure vessel registration
fee. new text end

new text begin The annual registration fee for boilers and pressure
vessels in use and required to be inspected per section 183.42
shall be $10 per boiler and pressure vessel.
new text end

Sec. 36.

Minnesota Statutes 2004, section 183.57, is
amended to read:

183.57 REPORT OF INSURER; EXEMPTION FROM INSPECTION.

Subdivision 1.

Report required.

Any insurance company
insuring boilers and pressure vessels in this state shall deleted text begin make a
written deleted text end new text begin file a new text end report deleted text begin thereof deleted text end showing the date of inspection,
the name of the person making the inspection, the condition of
the boiler or pressure vessel as disclosed by the inspection,
whether the deleted text begin same is deleted text end new text begin boiler was new text end operated by a properly licensed
engineer, deleted text begin and deleted text end whether a policy of insurance has been issued by
the company with reference to the boiler or pressure vessel new text begin , and
other information as directed by the chief boiler inspector new text end .
Within deleted text begin 15 deleted text end new text begin 21 new text end days after the inspection, the insurance company
shall deleted text begin mail a copy of deleted text end new text begin file new text end the report deleted text begin to deleted text end new text begin with new text end the chief boiler
inspector deleted text begin and deleted text end new text begin or designee. The insurer shall provide new text end a copy of
the report to the person, firm, or corporation owning or
operating the new text begin inspected new text end boiler or pressure vessel deleted text begin inspected deleted text end .
Such report shall be made annually for boilers and biennially
for pressure vessels.

Subd. 2.

Exemption.

Every boiler or pressure vessel as
to which any insurance company authorized to do business in this
state has issued a policy of insurance, after the inspection
thereof, is exempt from inspection new text begin by the department new text end made under
sections 183.375 to 183.62, while the same continues to be
insured new text begin and provided it continues to be inspected in accordance
with the inspection schedule set forth in sections 183.42 and
183.45, new text end and the person, firm, or corporation owning or operating
the same has an unexpired certificate of deleted text begin exemption from
inspection, issued by the chief boiler
inspector deleted text end new text begin registration new text end . deleted text begin The fee set by the commissioner
pursuant to section 16A.1285, on the first object inspected and
on each object thereafter shall apply to each exempt object. A
certificate of exemption expires one year from date of issue.
The certificate of exemption shall be posted in a conspicuous
place near the boiler or pressure vessel or in the plant office
or boiler room described therein and to which it relates. Every
insurance company shall give written notice to the chief boiler
inspector of the cancellation or expiration of every policy of
insurance issued by it with reference to policies in this state,
and the cause or reason for the cancellation or expiration.
These notices of cancellation or expiration shall show the date
of the policy and the date when the cancellation has or will
become effective.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Certificate of exemption. deleted text end

deleted text begin The Division of
Boiler Inspection may issue a billing and exemption certificate
for each boiler and pressure vessel which the division records
indicate shall be or has been inspected by an insurance company
which is providing coverage for the boilers and pressure
vessels. The division may determine the monthly schedule of the
billings to be followed for each business insured.
deleted text end

new text begin Subd. 5. new text end

new text begin Notice of insurance coverage. new text end

new text begin The insurer shall
notify the commissioner or designee in writing of its policy to
insure and inspect boilers and pressure vessels at a location
within 30 days of the effective date of insurance coverage,
including binders. The insurer must also provide a duplicate of
the notification to the insured.
new text end

new text begin Subd. 6. new text end

new text begin Notice of discontinued coverage. new text end

new text begin The insurer
shall notify the commissioner or designee in writing, within 30
days of the effective date, of the discontinuation of insurance
coverage of the boilers and pressure vessels at a location and
the cause or reason for the discontinuation. This notice shall
show the effective date when the discontinued policy takes
effect.
new text end

new text begin Subd. 7. new text end

new text begin Penalties. new text end

new text begin The commissioner shall assess upon
the insurer a $50 penalty, per applicable boiler and pressure
vessel, for failing to submit an inspection report or notify the
commissioner of insurance coverage or discontinuation of
insurance coverage as set forth in this section. The
commissioner shall assess upon the insurer a penalty of $100,
per applicable boiler and pressure vessel, for failing to
conduct the required in-service inspection within 120 days after
the inspection was due in accordance with section 183.42.
new text end

Sec. 37.

Minnesota Statutes 2004, section 216C.41,
subdivision 2, is amended to read:

Subd. 2.

Incentive payment; appropriation.

(a) Incentive
payments must be made according to this section to (1) a
qualified on-farm biogas recovery facility, (2) the owner or
operator of a qualified hydropower facility or qualified wind
energy conversion facility for electric energy generated and
sold by the facility, (3) a publicly owned hydropower facility
for electric energy that is generated by the facility and used
by the owner of the facility outside the facility, or (4) the
owner of a publicly owned dam that is in need of substantial
repair, for electric energy that is generated by a hydropower
facility at the dam and the annual incentive payments will be
used to fund the structural repairs and replacement of
structural components of the dam, or to retire debt incurred to
fund those repairs.

(b) Payment may only be made upon receipt by the
commissioner of deleted text begin finance deleted text end new text begin commerce new text end of an incentive payment
application that establishes that the applicant is eligible to
receive an incentive payment and that satisfies other
requirements the commissioner deems necessary. The application
must be in a form and submitted at a time the commissioner
establishes.

(c) There is annually appropriated from the deleted text begin general fund
deleted text end new text begin renewable development account under section 116C.779 new text end to the
commissioner of commerce sums sufficient to make the payments
required under this section, deleted text begin other than deleted text end new text begin in addition to new text end the
amounts funded by the renewable development account as specified
in subdivision 5a.

Sec. 38.

Minnesota Statutes 2004, section 216C.41,
subdivision 5, is amended to read:

Subd. 5.

Amount of payment; wind facilities limit.

(a)
An incentive payment is based on the number of kilowatt hours of
electricity generated. The amount of the payment is:

(1) for a facility described under subdivision 2, paragraph
(a), clause (4), 1.0 cent per kilowatt hour; and

(2) for all other facilities, 1.5 cents per kilowatt hour.

For electricity generated by qualified wind energy conversion
facilities, the incentive payment under this section is limited
to no more than deleted text begin 100 deleted text end new text begin 200 new text end megawatts of nameplate capacity.

(b) For wind energy conversion systems installed and
contracted for after January 1, 2002, the total size of a wind
energy conversion system under this section must be determined
according to this paragraph. Unless the systems are
interconnected with different distribution systems, the
nameplate capacity of one wind energy conversion system must be
combined with the nameplate capacity of any other wind energy
conversion system that is:

(1) located within five miles of the wind energy conversion
system;

(2) constructed within the same calendar year as the wind
energy conversion system; and

(3) under common ownership.

In the case of a dispute, the commissioner of commerce shall
determine the total size of the system, and shall draw all
reasonable inferences in favor of combining the systems.

(c) In making a determination under paragraph (b), the
commissioner of commerce may determine that two wind energy
conversion systems are under common ownership when the
underlying ownership structure contains similar persons or
entities, even if the ownership shares differ between the two
systems. Wind energy conversion systems are not under common
ownership solely because the same person or entity provided
equity financing for the systems.

Sec. 39.

Minnesota Statutes 2004, section 216C.41,
subdivision 5a, is amended to read:

Subd. 5a.

Renewable development account.

The Department
of Commerce shall authorize payment of the renewable energy
production incentive to wind energy conversion systems for deleted text begin 100
deleted text end new text begin 200 new text end megawatts of nameplate capacity deleted text begin in addition to the capacity
authorized under subdivision 5 deleted text end and to on-farm biogas recovery
facilities. Payment of the incentive shall be made from the
renewable energy development account as provided under section
116C.779, subdivision 2.

Sec. 40.

Minnesota Statutes 2004, section 237.11, is
amended to read:

237.11 INSPECTING RECORDS AND PROPERTY; REPORTS REQUIRED.

Every telephone company subject to the provisions of this
chapter, wherever organized, shall keep an office in this state,
and make such reports to the department as it shall from time to
time require. All books, records, and files, whether they
relate to competitive or noncompetitive services, and all of its
property shall be at all times subject to inspection by the
commission and the department. It shall close its accounts and
take therefrom a balance sheet on December 31 of each year, and
on or before May 1 following, such balance sheet, together with
such other information as the department shall require, verified
by an officer of the telephone company, shall be filed with the
commission and the department new text begin , except that a local exchange
carrier or a competitive local exchange carrier, as defined in
Minnesota Rules, chapter 7811, is only required to file an
annual report that includes the company's name, contact person,
annual revenue, and status of its 911 update plan new text end .

In the event that any telephone company shall fail to file
its annual report, as provided by this section, the department
is authorized to make such an examination of the books, records,
and vouchers of the company as is necessary to procure the
necessary data for the annual report and cause the same to be
prepared. The expense of procuring this data and preparing this
report shall be paid by the telephone company failing to report,
and the amount paid shall be credited by the commissioner of
finance to funds appropriated for the expense of the department.

The department is authorized to force collection of such
sum by an action at law in the name of the department.

Sec. 41.

Minnesota Statutes 2004, section 237.295,
subdivision 1, is amended to read:

Subdivision 1.

deleted text begin payment for investigation deleted text end new text begin filing fee for
new authority new text end .

deleted text begin (a) Whenever the department or commission, in a
proceeding upon its own motion, on complaint, or upon an
application to it, considers it necessary, in order to carry out
the duties imposed on it, to investigate the books, accounts,
practices, and activities of any company, parties to the
proceeding shall pay the expenses reasonably attributable to the
proceeding. The department and commission shall ascertain the
expenses, and the department shall render a bill for those
expenses to the parties, at the conclusion of the proceeding.
The department is authorized to submit billings to parties at
intervals selected by the department during the course of a
proceeding.
deleted text end

deleted text begin (b) The allocation of costs may be adjusted for cause by
the commission during the course of the proceeding, or upon the
closing of the docket and issuance of an order. In addition to
the rights granted in subdivision 3, parties to a proceeding may
object to the allocation at any time during the proceeding.
Withdrawal by a party to a proceeding does not absolve the party
from paying allocated costs as determined by the commission.
The commission may decide that a party should not pay any
allocated costs of the proceeding.
deleted text end

deleted text begin (c) The bill constitutes notice of the assessment and a
demand for payment. The amount of the bills assessed by the
department under this subdivision must be paid by the parties
into the state treasury within 30 days from the date of
assessment. The total amount, in a calendar year, for which a
telephone company may become liable, by reason of costs incurred
by the department and commission within that calendar year, may
not exceed two-fifths of one percent of the gross jurisdictional
operating revenue of the telephone company in the last preceding
calendar year. Direct charges may be assessed without regard to
this limitation until the gross jurisdictional operating revenue
of the telephone company for the preceding calendar year has
been reported for the first time. Where, under this
subdivision, costs are incurred within a calendar year that are
in excess of two-fifths of one percent of the gross
jurisdictional operating revenues, the excess costs are not
chargeable as part of the remainder under subdivision 2.
deleted text end

deleted text begin (d) Except as otherwise provided in paragraph (e), for
purposes of assessing the cost of a proceeding to a party,
"party" means any entity or group subject to the laws and rules
of this state, however organized, whether public or private,
whether domestic or foreign, whether for profit or nonprofit,
and whether natural, corporate, or political, such as a business
or commercial enterprise organized as any type or combination of
corporation, limited liability company, partnership, limited
liability partnership, proprietorship, association, cooperative,
joint venture, carrier, or utility, and any successor or
assignee of any of them; a social or charitable organization;
and any type or combination of political subdivision, which
includes the executive, judicial, or legislative branch of the
state, a local government unit, an agency of the state or a
local government unit, or a combination of any of them.
deleted text end

( deleted text begin e) For assessment and billing purposes, "party" does not
include the Department of Commerce or the Residential Utilities
Division of the Office of Attorney General; any entity or group
instituted primarily for the purpose of mutual help and not
conducted for profit; intervenors awarded compensation under
section 237.075, subdivision 10; or any individual or group or
counsel for the individual or group representing the interests
of end users or classes of end users of services provided by
telephone companies or telecommunications carriers, as
determined by the commission. deleted text end new text begin An application for a new
authority must be accompanied by a payment not to exceed $2,000
as determined by the Public Utilities Commission. This fee will
be reviewed annually and adjusted accordingly.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 42.

Minnesota Statutes 2004, section 237.295,
subdivision 2, is amended to read:

Subd. 2.

Assessment of costs.

The department and
commission shall quarterly, at least 30 days before the start of
each quarter, estimate the total of their expenditures in the
performance of their duties relating to telephone companies,
other than amounts chargeable to telephone companies under
subdivision 1, 5, or 6. The remainder must be assessed by the
department to the telephone companies operating in this state in
proportion to their respective gross jurisdictional operating
revenues during the last calendar year. The assessment must be
paid into the state treasury within 30 days after the bill has
been mailed to the telephone companies. The bill constitutes
notice of the assessment and demand of payment. The total
amount that may be assessed to the telephone companies under
this subdivision may not exceed deleted text begin one-eighth deleted text end new text begin three-eighths new text end of one
percent of the total gross jurisdictional operating revenues
during the calendar year. The assessment for the third quarter
of each fiscal year must be adjusted to compensate for the
amount by which actual expenditures by the commission and
department for the preceding fiscal year were more or less than
the estimated expenditures previously assessed. A telephone
company with gross jurisdictional operating revenues of less
than $5,000 is exempt from assessments under this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 43.

new text begin [237.491] COMBINED PER NUMBER FEE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this
subdivision apply to this section.
new text end

new text begin (b) "911 emergency and public safety communications program"
means the program governed by chapter 403.
new text end

new text begin (c) "Minnesota telephone number" means a ten-digit
telephone number being used to connect to the public switched
telephone network and starting with area code 218, 320, 507,
612, 651, 763, or 952, or any subsequent area code assigned to
this state.
new text end

new text begin (d) "Service provider" means a provider doing business in
this state who provides real time, two-way voice service with a
Minnesota telephone number.
new text end

new text begin (e) "Telecommunications access Minnesota program" means the
program governed by sections 237.50 to 237.55.
new text end

new text begin (f) "Telephone assistance program" means the program
governed by sections 237.69 to 237.711.
new text end

new text begin Subd. 2. new text end

new text begin Per number fee. new text end

new text begin (a) By January 15, 2006, the
commissioner of commerce shall report to the legislature and to
the senate Committee on Jobs, Energy, and Community Development
and the house Committee on Regulated Industries, recommendations
for the amount of and method for assessing a fee that would
apply to each service provider based upon the number of
Minnesota telephone numbers in use by current customers of the
service provider. The fee would be set at a level calculated to
generate only the amount of revenue necessary to fund:
new text end

new text begin (1) the telephone assistance program and the
telecommunications access Minnesota program at the levels
established by the commission under sections 237.52, subdivision
2, and 237.70; and
new text end

new text begin (2) the 911 emergency and public safety communications
program at the levels appropriated by law to the commissioner of
public safety and the commissioner of finance for purposes of
sections 403.11, 403.113, 403.27, 403.30, and 403.31 for each
fiscal year.
new text end

new text begin (b) The recommendations must include any changes to
Minnesota Statutes necessary to establish the procedures whereby
each service provider, to the extent allowed under federal law,
would collect and remit the fee proceeds to the commissioner of
revenue. The commissioner of revenue would allocate the fee
proceeds to the three funding areas in paragraph (a) and credit
the allocations to the appropriate accounts.
new text end

new text begin (c) The recommendations must be designed to allow the
combined per telephone number fee to be collected beginning July
1, 2006. The per access line fee used to collect revenues to
support the TAP, TAM, and 911 programs remains in effect until
the statutory changes necessary to implement the per telephone
number fee have been enacted into law.
new text end

new text begin (d) As part of the process of developing the
recommendations and preparing the report to the legislature
required under paragraph (a), the commissioner of commerce must,
at a minimum, consult regularly with the Departments of Public
Safety, Finance, and Administration, the Public Utilities
Commission, service providers, the chairs and ranking minority
members of the senate and house committees, subcommittees, and
divisions having jurisdiction over telecommunications and public
safety, and other affected parties.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 44.

Minnesota Statutes 2004, section 239.011,
subdivision 2, is amended to read:

Subd. 2.

Duties and powers.

To carry out the
responsibilities in section 239.01 and subdivision 1, the
director:

(1) shall take charge of, keep, and maintain in good order
the standard of weights and measures of the state and keep a
seal so formed as to impress, when appropriate, the letters
"MINN" and the date of sealing upon the weights and measures
that are sealed;

(2) has general supervision of the weights, measures, and
weighing and measuring devices offered for sale, sold, or in use
in the state;

(3) shall maintain traceability of the state standards to
the national standards of the National Institute of Standards
and Technology;

(4) shall enforce this chapter;

(5) shall grant variances from department rules, within the
limits set by rule, when appropriate to maintain good commercial
practices or when enforcement of the rules would cause undue
hardship;

(6) shall conduct investigations to ensure compliance with
this chapter;

(7) may delegate to division personnel the
responsibilities, duties, and powers contained in this section;

(8) shall test annually, and approve when found to be
correct, the standards of weights and measures used by the
division, by a town, statutory or home rule charter city, or
county within the state, or by a person using standards to
repair, adjust, or calibrate commercial weights and measures;

(9) shall inspect and test weights and measures kept,
offered, or exposed for sale;

(10) shall inspect and test, to ascertain if they are
correct, weights and measures commercially used to:

(i) determine the weight, measure, or count of commodities
or things sold, offered, or exposed for sale, on the basis of
weight, measure, or count; and

(ii) compute the basic charge or payment for services
rendered on the basis of weight, measure, or count;

(11) shall approve for use and mark weights and measures
that are found to be correct;

(12) shall reject, and mark as rejected, weights and
measures that are found to be incorrect and may seize them if
those weights and measures:

(i) are not corrected within the time specified by the
director;

(ii) are used or disposed of in a manner not specifically
authorized by the director; or

(iii) are found to be both incorrect and not capable of
being made correct, in which case the director shall condemn
those weights and measures;

(13) shall weigh, measure, or inspect packaged commodities
kept, offered, or exposed for sale, sold, or in the process of
delivery, to determine whether they contain the amount
represented and whether they are kept, offered, or exposed for
sale in accordance with this chapter and department rules. In
carrying out this section, the director must employ recognized
sampling procedures, such as those contained in National
Institute of Standards and Technology Handbook 133, "Checking
the Net Contents of Packaged Goods";

(14) shall prescribe the appropriate term or unit of weight
or measure to be used for a specific commodity when an existing
term or declaration of quantity does not facilitate value
comparisons by consumers, or creates an opportunity for consumer
confusion;

(15) shall allow reasonable variations from the stated
quantity of contents, including variations caused by loss or
gain of moisture during the course of good distribution practice
or by unavoidable deviations in good manufacturing practice,
only after the commodity has entered commerce within the state;

(16) shall inspect and test petroleum products in
accordance with this chapter and chapter 296A;

(17) shall distribute and post notices for used motor oil
and used motor oil filters and lead acid battery recycling in
accordance with sections 239.54, 325E.11, and 325E.115;

(18) shall collect inspection fees in accordance with
sections 239.10 and 239.101; and

(19) shall provide metrological services and support to
businesses and individuals in the United States who wish to
market products and services in the member nations of the
European Economic Community, and other nations outside of the
United States by:

(i) meeting, to the extent practicable, the measurement
quality assurance standards described in the International
Standards Organization ISO deleted text begin 9000, Guide 25 deleted text end new text begin 17025 new text end ;

(ii) maintaining, to the extent practicable, certification
of the metrology laboratory by deleted text begin a governing body appointed by the
European Economic Community deleted text end new text begin an internationally accepted
accrediting body such as the National Voluntary Laboratory
Accreditation Program (NVLAP) new text end ; and

(iii) providing calibration and consultation services to
metrology laboratories in government and private industry in the
United States.

Sec. 45.

Minnesota Statutes 2004, section 239.05, is
amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Automotive fuel. new text end

new text begin For the purpose of enforcing
the gasoline octane requirements in section 239.792, "automotive
fuel" has the meaning given it in Code of Federal Regulations,
title 16, section 306.0.
new text end

Sec. 46.

Minnesota Statutes 2004, section 239.05,
subdivision 10b, is amended to read:

Subd. 10b.

deleted text begin oxygenate deleted text end new text begin ethanol new text end blender.

" deleted text begin Oxygenate deleted text end new text begin Ethanol
new text end blender" means a person who deleted text begin has registered with the division to
blend and distribute, transport, sell, or offer deleted text end new text begin blends and
distributes, transports, sells, or offers new text end to sell gasoline
containing deleted text begin a minimum of 2.0 percent, and an average of 2.7 deleted text end new text begin ten
new text end percent deleted text begin oxygen deleted text end new text begin ethanol new text end by deleted text begin weight deleted text end new text begin volume new text end .

Sec. 47.

Minnesota Statutes 2004, section 239.09, is
amended to read:

239.09 SPECIAL POLICE POWERS.

When necessary to enforce this chapter or rules adopted
under the authority granted by section 239.06, the director is:

(1) authorized and empowered to arrest, without formal
warrant, any violator of sections 325E.11 and 325E.115 or of the
statute in relation to weights and measures;

(2) empowered to seize for use as evidence and without
formal warrant, any false weight, measure, weighing or measuring
device, package, or commodity found to be used, retained, or
offered or exposed for sale or sold in violation of law;

(3) during normal business hours, authorized to enter
commercial premises;

(4) if the premises are not open to the public, authorized
to enter commercial premises only after presenting credentials
and obtaining consent or after obtaining a search warrant;

(5) empowered to issue stop-use, hold, and removal orders
with respect to weights and measures commercially used, and
packaged commodities or bulk commodities kept, offered, or
exposed for sale, that do not comply with the weights and
measures laws; deleted text begin and
deleted text end

(6) empowered, upon reasonable suspicion of a violation of
the weights and measures laws, to stop a commercial vehicle and,
after presentation of credentials, inspect the contents of the
vehicle, require that the person in charge of the vehicle
produce documents concerning the contents, and require the
person to proceed with the vehicle to some specified place for
inspection new text begin ; and
new text end

new text begin (7) empowered, after written warning, to issue citations of
not less than $100 and not more than $500 to a person who
violates any provision of this chapter, any provision of the
rules adopted under the authority contained in this chapter, or
any provision of statutes enforced by the Division of Weights
and Measures new text end .

Sec. 48.

Minnesota Statutes 2004, section 239.101,
subdivision 3, is amended to read:

Subd. 3.

Petroleum inspection fee.

(a) An inspection fee
is imposed (1) on petroleum products when received by the first
licensed distributor, and (2) on petroleum products received and
held for sale or use by any person when the petroleum products
have not previously been received by a licensed distributor.
The petroleum inspection fee is $1 for every 1,000 gallons
received. The commissioner of revenue shall collect the fee.
The revenue from new text begin 81 cents of new text end the fee deleted text begin must first be applied to
cover the amounts appropriated. Fifteen cents of the inspection
fee must be deposited in an account in the special revenue fund
and deleted text end is appropriated to the commissioner of commerce for the cost
of deleted text begin petroleum product quality inspection expenses and for the
inspection and testing of petroleum product-measuring
equipment deleted text end new text begin operations of the Division of Weights and Measures,
petroleum supply monitoring, and the oil burner retrofit
program new text end . The remainder of the fee must be deposited in the
general fund.

(b) The commissioner of revenue shall credit a person for
inspection fees previously paid in error or for any material
exported or sold for export from the state upon filing of a
report as prescribed by the commissioner of revenue.

(c) The commissioner of revenue may collect the inspection
fee along with any taxes due under chapter 296A.

Sec. 49.

Minnesota Statutes 2004, section 239.75,
subdivision 1, is amended to read:

Subdivision 1.

Inspection to be made.

The director shall:

(1) take samples, free of charge, of petroleum products
wherever processed, blended, held, stored, imported,
transferred, offered for sale or use, or sold in Minnesota,
limiting each sample to deleted text begin :
deleted text end

deleted text begin (i) two-tenths of one deleted text end new text begin one-half new text end gallon deleted text begin , except when an
octane test is planned; or
deleted text end

deleted text begin (ii) seven-tenths of one gallon for an octane test deleted text end ;

(2) inspect and test petroleum product samples according to
the methods of ASTM or other valid test methods adopted by rule,
to determine whether the products comply with the specifications
in section 239.761;

(3) inspect petroleum product storage tanks to ensure that
the products are free from water and impurities;

(4) inspect and test samples submitted to the department by
a licensed distributor, making the test results available to the
distributor;

(5) inspect the labeling, price posting, and price
advertising of petroleum product dispensers and advertising
signs at businesses or locations where petroleum products are
sold, offered for sale or use, or dispensed into motor vehicles;

(6) maintain records of all inspections and tests according
to the records retention policies of the Department of
Administration;

(7) delegate to division personnel, at the director's
discretion, any or all of the responsibilities, duties, and
powers in sections 239.75 to 239.80;

(8) publish deleted text begin octane deleted text end test data and information to assist
persons who new text begin use, new text end produce deleted text begin and deleted text end new text begin , distribute, or new text end sell deleted text begin gasoline and
gasoline-oxygenate blends deleted text end new text begin petroleum-based heating and engine
fuels new text end ;

(9) deleted text begin register gasoline-oxygenate blenders according to the
requirements of the EPA;
deleted text end

deleted text begin (10) deleted text end audit the records of any person responsible for the
product to determine compliance with sections 239.75 to 239.792;

deleted text begin (11) deleted text end new text begin (10) new text end after consulting with the commissioner deleted text begin of the
Pollution Control Agency deleted text end , grant a temporary exemption from the
deleted text begin oxygenated gasoline deleted text end new text begin gasoline-ethanol blending new text end requirements in
section 239.791 if the supply of deleted text begin oxygenate deleted text end new text begin ethanol new text end is
insufficient to produce deleted text begin gasoline-oxygenate deleted text end new text begin gasoline-ethanol
new text end blends deleted text begin during an EPA-designated carbon monoxide control period deleted text end ;
and

deleted text begin (12) deleted text end new text begin (11) new text end adopt, as an enforcement policy for the division,
reasonable margins of uncertainty for the tests used to
determine compliance with the specifications in section 239.761,
the oxygen percentages in section 239.791, and the octane
requirements in section 239.792 and apply the margins of
uncertainty to only tests performed by the division, not by
adding the margins to uncertainties in tests performed by any
person responsible for the product.

Sec. 50.

Minnesota Statutes 2004, section 239.75,
subdivision 5, is amended to read:

Subd. 5.

Product quality, responsibility.

After a
deleted text begin gasoline product deleted text end new text begin petroleum-based engine fuel new text end is purchased,
transferred, or otherwise removed from a refinery or terminal,
the person responsible for the product shall:

(1) keep the product free from contamination with water and
impurities;

(2) not blend the product with dissimilar petroleum
products, for example, gasoline must not be blended with diesel
fuel;

(3) not blend the product with any contaminant, dye,
chemical, or additive, except:

(i) agriculturally derived, denatured ethanol that complies
with the specifications in this chapter;

(ii) an antiknock additive, or an additive designed to
replace tetra-ethyl lead, that is registered by the EPA; deleted text begin or
deleted text end

(iii) a dye to distinguish heating fuel from low sulfur
diesel fuel; new text begin or
new text end

new text begin (iv) biodiesel fuel that complies with the specifications
in this chapter; new text end deleted text begin a deleted text end nd

(4) maintain a record of the name or chemical composition
of the additive, with the product shipping manifest or bill of
lading for one year after the date of the manifest or bill.

Sec. 51.

Minnesota Statutes 2004, section 239.761, is
amended to read:

239.761 PETROLEUM PRODUCT SPECIFICATIONS.

Subdivision 1.

Applicability.

A person responsible for
the product must meet the specifications in this section. The
specifications apply to petroleum products processed, held,
stored, imported, transferred, distributed, offered for
distribution, offered for sale or use, or sold in Minnesota.

Subd. 2.

Coordination with departments of revenue and
agriculture.

The petroleum product specifications in this
section are intended to match the definitions and specifications
in sections 41A.09 and 296A.01. Petroleum products named in
this section are defined in section 296A.01.

Subd. 3.

Gasoline.

(a) Gasoline that is not blended with
ethanol must not be contaminated with water or other impurities
and must comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end .
Gasoline that is not blended with ethanol must also comply with
the volatility requirements in Code of Federal Regulations,
title 40, part 80.

(b) After gasoline is sold, transferred, or otherwise
removed from a refinery or terminal, a person responsible for
the product:

(1) may blend the gasoline with agriculturally derived
ethanol as provided in subdivision 4;

(2) shall not blend the gasoline with any oxygenate other
than denatured, agriculturally derived ethanol;

(3) shall not blend the gasoline with other petroleum
products that are not gasoline or denatured, agriculturally
derived ethanol;

(4) shall not blend the gasoline with products commonly and
commercially known as casinghead gasoline, absorption gasoline,
condensation gasoline, drip gasoline, or natural gasoline; and

(5) may blend the gasoline with a detergent additive, an
antiknock additive, or an additive designed to replace
tetra-ethyl lead, that is registered by the EPA.

Subd. 4.

Gasoline blended with ethanol.

(a) Gasoline may
be blended with up to ten percent, by volume, agriculturally
derived, denatured ethanol that complies with the requirements
of subdivision 5.

(b) A gasoline-ethanol blend must:

(1) comply with the volatility requirements in Code of
Federal Regulations, title 40, part 80;

(2) comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end , or
the gasoline base stock from which a gasoline-ethanol blend was
produced must comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end ;
and

(3) not be blended with casinghead gasoline, absorption
gasoline, condensation gasoline, drip gasoline, or natural
gasoline after the gasoline-ethanol blend has been sold,
transferred, or otherwise removed from a refinery or terminal.

Subd. 5.

Denatured ethanol.

Denatured ethanol that is to
be blended with gasoline must be agriculturally derived and must
comply with ASTM specification deleted text begin D4806-01 deleted text end new text begin D4806-04a new text end . This
includes the requirement that ethanol may be denatured only as
specified in Code of Federal Regulations, title 27, parts 20 and
21.

Subd. 6.

Gasoline blended with nonethanol oxygenate.

(a)
A person responsible for the product shall comply with the
following requirements:

(1) after July 1, 2000, gasoline containing in excess of
one-third of one percent, in total, of nonethanol oxygenates
listed in paragraph (b) must not be sold or offered for sale at
any time in this state; and

(2) after July 1, 2005, gasoline containing any of the
nonethanol oxygenates listed in paragraph (b) must not be sold
or offered for sale in this state.

(b) The oxygenates prohibited under paragraph (a) are:

(1) methyl tertiary butyl ether, as defined in section
296A.01, subdivision 34;

(2) ethyl tertiary butyl ether, as defined in section
296A.01, subdivision 18; or

(3) tertiary amyl methyl ether.

(c) Gasoline that is blended with a nonethanol oxygenate
must comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end .
Nonethanol oxygenates must not be blended into gasoline after
the gasoline has been sold, transferred, or otherwise removed
from a refinery or terminal.

Subd. 7.

Heating fuel oil.

Heating fuel oil must comply
with ASTM specification deleted text begin D396-01 deleted text end new text begin D396-02a new text end .

Subd. 8.

Diesel fuel oil.

Diesel fuel oil must comply
with ASTM specification deleted text begin D975-01a deleted text end new text begin D975-04b, except that diesel
fuel oil is not required to meet the diesel lubricity standard
until the date that the biodiesel fuel requirement in section
239.77, subdivision 2, becomes effective or December 31, 2005,
whichever comes first new text end .

Subd. 9.

Kerosene.

Kerosene must comply with ASTM
specification deleted text begin D3699-01 deleted text end new text begin D3699-03 new text end .

Subd. 10.

Aviation gasoline.

Aviation gasoline must
comply with ASTM specification deleted text begin D910-00 deleted text end new text begin D910-04 new text end .

Subd. 11.

Aviation turbine fuel, jet fuel.

Aviation
turbine fuel and jet fuel must comply with ASTM specification
deleted text begin D1655-01 deleted text end new text begin D1655-04 new text end .

Subd. 12.

Gas turbine fuel oil.

Fuel oil for use in
nonaviation gas turbine engines must comply with ASTM
specification deleted text begin D2880-00 deleted text end new text begin D2880-03 new text end .

Subd. 13.

E85.

A blend of ethanol and gasoline,
containing at least 60 percent ethanol and not more than 85
percent ethanol, produced for use as a motor fuel in alternative
fuel vehicles as defined in section 296A.01, subdivision 5, must
comply with ASTM specification D5798-99 new text begin (2004) new text end .

Subd. 14.

M85.

A blend of methanol and gasoline,
containing at least 85 percent methanol, produced for use as a
motor fuel in alternative fuel vehicles as defined in section
296A.01, subdivision 5, must comply with ASTM specification
D5797-96.

Sec. 52.

Minnesota Statutes 2004, section 239.77, is
amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Disclosure. new text end

new text begin A refinery or terminal shall
provide, at the time diesel fuel is sold or transferred from the
refinery or terminal, a bill of lading or shipping manifest to
the person who receives the fuel. For biodiesel-blended
products, the bill of lading or shipping manifest must disclose
biodiesel content, stating volume percentage, gallons of
biodiesel per gallons of petroleum diesel base-stock, or an ASTM
"Bxx" designation where "xx" denotes the volume percent
biodiesel included in the blended product. This subdivision
does not apply to sales or transfers of biodiesel blend stock
between refineries, between terminals, or between a refinery and
a terminal.
new text end

Sec. 53.

Minnesota Statutes 2004, section 239.79,
subdivision 4, is amended to read:

Subd. 4.

Sale of certain petroleum products on gross
volume basis.

A person responsible for the products listed in
this subdivision shall transfer, ship, distribute, offer for
distribution, sell, or offer to sell the products by volume.
Volumetric measurement of the product must not be temperature
compensated, or adjusted by any other factor. This subdivision
applies to gasoline, number one and number two diesel fuel oils,
number one and number two heating fuel oils, kerosene, denatured
ethanol deleted text begin that is to be blended into gasoline, and an oxygenate
that is to be blended into gasoline deleted text end new text begin , and biodiesel new text end . This
subdivision does not apply to the measurement of petroleum
products transferred, sold, or traded between refineries,
between refineries and terminals, or between terminals.

Sec. 54.

Minnesota Statutes 2004, section 239.791,
subdivision 1, is amended to read:

Subdivision 1.

Minimum ethanol content required.

(a)
Except as provided in subdivisions 10 to 14, a person
responsible for the product shall ensure that all gasoline sold
or offered for sale in Minnesota must contain at least 10.0
percent denatured ethanol by volume.

(b) For purposes of enforcing the minimum ethanol
requirement of paragraph (a), a gasoline/ethanol blend will be
construed to be in compliance if the ethanol content, exclusive
of denaturants and permitted contaminants, comprises not less
than 9.2 percent by volume and not more than 10.0 percent by
volume of the blend as determined by an appropriate United
States Environmental Protection Agency or American Society of
Testing Materials standard method of analysis of alcohol/ether
content in deleted text begin motor deleted text end new text begin engine new text end fuels.

Sec. 55.

Minnesota Statutes 2004, section 239.791,
subdivision 7, is amended to read:

Subd. 7.

deleted text begin oxygenate deleted text end new text begin ethanol new text end records; state audit.

The
director shall audit the records of registered deleted text begin oxygenate deleted text end new text begin ethanol
new text end blenders to ensure that each blender has met all requirements in
this chapter. Specific information or data relating to sales
figures or to processes or methods of production unique to the
blender or that would tend to adversely affect the competitive
position of the blender must be only for the confidential use of
the director, unless otherwise specifically authorized by the
registered blender.

Sec. 56.

Minnesota Statutes 2004, section 239.791,
subdivision 8, is amended to read:

Subd. 8.

Disclosure.

A refinery or terminal, shall
provide, at the time gasoline is sold or transferred from the
refinery or terminal, a bill of lading or shipping manifest to
the person who receives the gasoline. For oxygenated gasoline,
the bill of lading or shipping manifest must include the
identity and the volume percentage or gallons of oxygenate
included in the gasoline, and it must state: "This fuel
contains an oxygenate. Do not blend this fuel with ethanol or
with any other oxygenate." deleted text begin For nonoxygenated gasoline sold or
transferred before October 1, 1997, the bill or manifest must
state: "This fuel must not be sold at retail in a carbon
monoxide control area." deleted text end For nonoxygenated gasoline sold or
transferred after September 30, 1997, the bill or manifest must
state: "This fuel is not oxygenated. It must not be sold at
retail in Minnesota." This subdivision does not apply to sales
or transfers of gasoline between refineries, between terminals,
or between a refinery and a terminal.

Sec. 57.

Minnesota Statutes 2004, section 239.791,
subdivision 15, is amended to read:

Subd. 15.

Exemption for certain blend pumps.

new text begin (a) new text end A
person responsible for the product, who offers for sale, sells,
or dispenses nonoxygenated premium gasoline under one or more of
the exemptions in subdivisions 10 to 14, may sell, offer for
sale, or dispense oxygenated gasoline that contains less than
the minimum amount of ethanol required under subdivision 1 if
all of the following conditions are met:

(1) the blended gasoline has an octane rating of 88 or
greater;

(2) the gasoline is a blend of oxygenated gasoline meeting
the requirements of subdivision 1 with nonoxygenated premium
gasoline;

(3) the blended gasoline contains not more than ten percent
nonoxygenated premium gasoline;

(4) the blending of oxygenated gasoline with nonoxygenated
gasoline occurs within the gasoline dispenser; and

(5) the gasoline station at which the gasoline is sold,
offered for sale, or delivered is equipped to store gasoline in
not more than two storage tanks.

new text begin (b) new text end This subdivision applies only to those persons who meet
the conditions in new text begin paragraph (a), new text end clauses (1) through (5) new text begin , new text end on deleted text begin the
effective date of this act deleted text end new text begin August 1, 2004, new text end and have registered
with the director within three months of deleted text begin the effective deleted text end new text begin that new text end date
deleted text begin of this act deleted text end .

Sec. 58.

Minnesota Statutes 2004, section 239.792, is
amended to read:

239.792 deleted text begin GASOLINE OCTANE deleted text end new text begin AUTOMOTIVE FUEL RATINGS,
CERTIFICATION, AND POSTING new text end .

Subdivision 1.

deleted text begin disclosure deleted text end new text begin duties of refiners, importers,
and producers new text end .

A deleted text begin manufacturer, hauler, blender, agent, jobber,
consignment agent deleted text end new text begin refiner new text end , importer, or deleted text begin distributor who sells,
delivers, or distributes gasoline or gasoline-oxygenate blends,
shall provide, at the time of delivery, a bill of lading or
shipping manifest to the person who receives the gasoline. The
bill or manifest must state the minimum octane of the gasoline
delivered. The stated octane number must be the average of the
"motor method" octane number and the "research method" octane
number as determined by the test methods in ASTM specification
D4814-01, or by a test method adopted by department
rule deleted text end new text begin producer of automotive fuel must comply with the automotive
fuel rating, certification, and record-keeping requirements of
Code of Federal Regulations, title 16, sections 306.5 to 306.7 new text end .

Subd. 2.

deleted text begin dispenser labeling deleted text end new text begin duties of distributors new text end .

deleted text begin A
person responsible for the product shall clearly, conspicuously,
and permanently label each gasoline dispenser that is used to
sell gasoline or gasoline-oxygenate blends at retail or to
dispense gasoline or gasoline-oxygenate blends into the fuel
supply tanks of motor vehicles, with the minimum octane of the
gasoline dispensed. The label must meet the following
requirements:
deleted text end

deleted text begin (a) The octane number displayed on the label must represent
the average of the "motor method" octane number and the
"research method" octane number as determined by the test
methods in ASTM specification D4814-01, or by a test method
adopted by department rule.
deleted text end

deleted text begin (b) The label must be at least 2-1/2 inches high and three
inches wide, with a yellow background, black border, and black
figures and letters.
deleted text end

deleted text begin (c) The number representing the octane of the gasoline must
be at least one inch high.
deleted text end

deleted text begin (d) The label must include the words "minimum octane" and
the term "(R+M)/2" or "(RON+MON)/2." deleted text end new text begin A licensed distributor of
automotive fuel must comply with the certification and
record-keeping provisions of Code of Federal Regulations, title
16, sections 306.8 and 306.9.
new text end

new text begin Subd. 3. new text end

new text begin Duties of retailers. new text end

new text begin A person responsible for
the product who sells or transfers automotive fuel to a consumer
must comply with the automotive fuel rating posting and
record-keeping requirements, and the label specifications of
Code of Federal Regulations, title 16, sections 306.10 to 306.12.
new text end

new text begin Subd. 4. new text end

new text begin Duties of director. new text end

new text begin Upon request, the director
shall provide any person with a copy of Code of Federal
Regulations, title 16, part 306. Upon request, the director
shall provide any distributor, retailer, or organization of
distributors or retailers with the label specifications in Code
of Federal Regulations, title 16, section 306.12.
new text end

Sec. 59.

Minnesota Statutes 2004, section 268.19,
subdivision 1, is amended to read:

Subdivision 1.

Use of data.

(a) Except as otherwise
provided by this section, data gathered from any person pursuant
to the administration of the Minnesota Unemployment Insurance
Law are private data on individuals or nonpublic data not on
individuals as defined in section 13.02, subdivisions 9 and 12,
and may not be disclosed except pursuant to a court order or
section 13.05. A subpoena shall not be considered a court
order. These data may be disseminated to and used by the
following agencies without the consent of the subject of the
data:

(1) state and federal agencies specifically authorized
access to the data by state or federal law;

(2) any agency of any other state or any federal agency
charged with the administration of an unemployment insurance
program;

(3) any agency responsible for the maintenance of a system
of public employment offices for the purpose of assisting
individuals in obtaining employment;

(4) human rights agencies within Minnesota that have
enforcement powers;

(5) the Department of Revenue only to the extent necessary
for its duties under Minnesota laws;

(6) public and private agencies responsible for
administering publicly financed assistance programs for the
purpose of monitoring the eligibility of the program's
recipients;

(7) the Department of Labor and Industry and the Division
of Insurance Fraud Prevention in the Department of Commerce on
an interchangeable basis with the department for uses consistent
with the administration of their duties under Minnesota law;

(8) local and state welfare agencies for monitoring the
eligibility of the data subject for assistance programs, or for
any employment or training program administered by those
agencies, whether alone, in combination with another welfare
agency, or in conjunction with the department or to monitor and
evaluate the statewide Minnesota family investment program by
providing data on recipients and former recipients of food
stamps or food support, cash assistance under chapter 256, 256D,
256J, or 256K, child care assistance under chapter 119B, or
medical programs under chapter 256B, 256D, or 256L;

(9) new text begin local and state welfare agencies for the purpose of
identifying employment, wages, and other information to assist
in the collection of an overpayment debt in an assistance
program;
new text end

new text begin (10) new text end local, state, and federal law enforcement agencies for
the sole purpose of ascertaining the last known address and
employment location of a person who is the subject of a criminal
investigation;

deleted text begin (10) deleted text end new text begin (11) new text end the federal Immigration and Naturalization
Service shall have access to data on specific individuals and
specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency; and

deleted text begin (11) deleted text end new text begin (12) new text end the Department of Health solely for the purposes
of epidemiologic investigations.

(b) Data on individuals and employers that are collected,
maintained, or used by the department in an investigation
pursuant to section 268.182 are confidential as to data on
individuals and protected nonpublic data not on individuals as
defined in section 13.02, subdivisions 3 and 13, and must not be
disclosed except pursuant to statute or court order or to a
party named in a criminal proceeding, administrative or
judicial, for preparation of a defense.

(c) Data gathered by the department pursuant to the
administration of the Minnesota unemployment insurance program
must not be made the subject or the basis for any suit in any
civil proceedings, administrative or judicial, unless the action
is initiated by the department.

Sec. 60.

Minnesota Statutes 2004, section 296A.01,
subdivision 2, is amended to read:

Subd. 2.

Agricultural alcohol gasoline.

"Agricultural
alcohol gasoline" means a gasoline-ethanol blend of up to ten
percent agriculturally derived fermentation ethanol derived from
agricultural products, such as potatoes, cereal, grains, cheese
whey, sugar beets, forest products, or other renewable
resources, that:

(1) meets the specifications in ASTM specification deleted text begin D4806-01
deleted text end new text begin D4806-04a new text end ; and

(2) is denatured as specified in Code of Federal
Regulations, title 27, parts 20 and 21.

Sec. 61.

Minnesota Statutes 2004, section 296A.01,
subdivision 7, is amended to read:

Subd. 7.

Aviation gasoline.

"Aviation gasoline" means
any gasoline that is capable of use for the purpose of producing
or generating power for propelling internal combustion engine
aircraft, that meets the specifications in ASTM
specification deleted text begin D910-00 deleted text end new text begin D910-04 new text end , and that either:

(1) is invoiced and billed by a producer, manufacturer,
refiner, or blender to a distributor or dealer, by a distributor
to a dealer or consumer, or by a dealer to consumer, as
"aviation gasoline"; or

(2) whether or not invoiced and billed as provided in
clause (1), is received, sold, stored, or withdrawn from storage
by any person, to be used for the purpose of producing or
generating power for propelling internal combustion engine
aircraft.

Sec. 62.

Minnesota Statutes 2004, section 296A.01,
subdivision 8, is amended to read:

Subd. 8.

Aviation turbine fuel and jet fuel.

"Aviation
turbine fuel" and "jet fuel" mean blends of hydrocarbons derived
from crude petroleum, natural gasoline, and synthetic
hydrocarbons, intended for use in aviation turbine engines, and
that meet the specifications in ASTM specification
deleted text begin D1655-01 deleted text end new text begin D1655.04 new text end .

Sec. 63.

Minnesota Statutes 2004, section 296A.01,
subdivision 14, is amended to read:

Subd. 14.

Diesel fuel oil.

"Diesel fuel oil" means a
petroleum distillate or blend of petroleum distillate and
residual fuels, intended for use as a motor fuel in internal
combustion diesel engines, that meets the specifications in ASTM
specification deleted text begin D975-01A deleted text end new text begin D975-04b, except that diesel fuel oil is
not required to meet the diesel lubricity standard until the
date that the biodiesel fuel requirement in section 239.77,
subdivision 2, becomes effective or December 31, 2005, whichever
comes first new text end . Diesel fuel includes number 1 and number 2 fuel
oils. K-1 kerosene is not diesel fuel unless it is blended with
diesel fuel for use in motor vehicles.

Sec. 64.

Minnesota Statutes 2004, section 296A.01,
subdivision 19, is amended to read:

Subd. 19.

E85.

"E85" means a petroleum product that is a
blend of agriculturally derived denatured ethanol and gasoline
or natural gasoline that typically contains 85 percent ethanol
by volume, but at a minimum must contain 60 percent ethanol by
volume. For the purposes of this chapter, the energy content of
E85 will be considered to be 82,000 BTUs per gallon. E85
produced for use as a motor fuel in alternative fuel vehicles as
defined in subdivision 5 must comply with ASTM specification
D5798-99 new text begin (2004) new text end .

Sec. 65.

Minnesota Statutes 2004, section 296A.01,
subdivision 20, is amended to read:

Subd. 20.

Ethanol, denatured.

"Ethanol, denatured" means
ethanol that is to be blended with gasoline, has been
agriculturally derived, and complies with ASTM specification
deleted text begin D4806-01 deleted text end new text begin D4806-04a new text end . This includes the requirement that ethanol
may be denatured only as specified in Code of Federal
Regulations, title 27, parts 20 and 21.

Sec. 66.

Minnesota Statutes 2004, section 296A.01,
subdivision 22, is amended to read:

Subd. 22.

Gas turbine fuel oil.

"Gas turbine fuel oil"
means fuel that contains mixtures of hydrocarbon oils free of
inorganic acid and excessive amounts of solid or fibrous foreign
matter, intended for use in nonaviation gas turbine engines, and
that meets the specifications in ASTM specification
deleted text begin D2880-00 deleted text end new text begin D2880-03 new text end .

Sec. 67.

Minnesota Statutes 2004, section 296A.01,
subdivision 23, is amended to read:

Subd. 23.

Gasoline.

(a) "Gasoline" means:

(1) all products commonly or commercially known or sold as
gasoline regardless of their classification or uses, except
casinghead gasoline, absorption gasoline, condensation gasoline,
drip gasoline, or natural gasoline that under the requirements
of section 239.761, subdivision 3, must not be blended with
gasoline that has been sold, transferred, or otherwise removed
from a refinery or terminal; and

(2) any liquid prepared, advertised, offered for sale or
sold for use as, or commonly and commercially used as, a fuel in
spark-ignition, internal combustion engines, and that when
tested by the Weights and Measures Division meets the
specifications in ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end .

(b) Gasoline that is not blended with ethanol must not be
contaminated with water or other impurities and must comply with
both ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end and the volatility
requirements in Code of Federal Regulations, title 40, part 80.

(c) After gasoline is sold, transferred, or otherwise
removed from a refinery or terminal, a person responsible for
the product:

(1) may blend the gasoline with agriculturally derived
ethanol, as provided in subdivision 24;

(2) must not blend the gasoline with any oxygenate other
than denatured, agriculturally derived ethanol;

(3) must not blend the gasoline with other petroleum
products that are not gasoline or denatured, agriculturally
derived ethanol;

(4) must not blend the gasoline with products commonly and
commercially known as casinghead gasoline, absorption gasoline,
condensation gasoline, drip gasoline, or natural gasoline; and

(5) may blend the gasoline with a detergent additive, an
antiknock additive, or an additive designed to replace
tetra-ethyl lead, that is registered by the EPA.

Sec. 68.

Minnesota Statutes 2004, section 296A.01,
subdivision 24, is amended to read:

Subd. 24.

Gasoline blended with nonethanol oxygenate.

"Gasoline blended with nonethanol oxygenate" means gasoline
blended with ETBE, MTBE, or other alcohol or ether, except
denatured ethanol, that is approved as an oxygenate by the EPA,
and that complies with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end .
Oxygenates, other than denatured ethanol, must not be blended
into gasoline after the gasoline has been sold, transferred, or
otherwise removed from a refinery or terminal.

Sec. 69.

Minnesota Statutes 2004, section 296A.01,
subdivision 25, is amended to read:

Subd. 25.

Gasoline blended with ethanol.

"Gasoline
blended with ethanol" means gasoline blended with up to ten
percent, by volume, agriculturally derived, denatured ethanol.
The blend must comply with the volatility requirements in Code
of Federal Regulations, title 40, part 80. The blend must also
comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end , or the
gasoline base stock from which a gasoline-ethanol blend was
produced must comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end ;
and the gasoline-ethanol blend must not be blended with
casinghead gasoline, absorption gasoline, condensation gasoline,
drip gasoline, or natural gasoline after the gasoline-ethanol
blend has been sold, transferred, or otherwise removed from a
refinery or terminal. The blend need not comply with ASTM
specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end if it is subjected to a
standard distillation test. For a distillation test, a
gasoline-ethanol blend is not required to comply with the
temperature specification at the 50 percent liquid recovery
point, if the gasoline from which the gasoline-ethanol blend was
produced complies with all of the distillation specifications.

Sec. 70.

Minnesota Statutes 2004, section 296A.01,
subdivision 26, is amended to read:

Subd. 26.

Heating fuel oil.

"Heating fuel oil" means a
petroleum distillate, blend of petroleum distillates and
residuals, or petroleum residual heating fuel that meets the
specifications in ASTM specification deleted text begin D396-01 deleted text end new text begin D396-02a new text end .

Sec. 71.

Minnesota Statutes 2004, section 296A.01,
subdivision 28, is amended to read:

Subd. 28.

Kerosene.

"Kerosene" means a refined petroleum
distillate consisting of a homogeneous mixture of hydrocarbons
essentially free of water, inorganic acidic and basic compounds,
and excessive amounts of particulate contaminants and that meets
the specifications in ASTM specification deleted text begin D3699-01 deleted text end new text begin D3699-03 new text end .

Sec. 72.

Minnesota Statutes 2004, section 298.22, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Sale or privatization of functions. new text end

new text begin The
commissioner of Iron Range resources and rehabilitation may not
sell or privatize any project area or function of the agency
without prior approval by a majority vote of the board.
new text end

Sec. 73.

new text begin [325F.991] 911 EMERGENCY PHONE SERVICE
REPRESENTATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this
section, the terms defined in this subdivision have the meanings
given them.
new text end

new text begin (a) "911 emergency telecommunications system" means a
dedicated emergency telecommunications system required by
section 403.025.
new text end

new text begin (b) "Person" means an individual, corporation, firm, or
other legal entity.
new text end

new text begin (c) "Service provider" means a person doing business in
Minnesota who provides real time, two-way voice service
interconnected with the public switched telephone network using
numbers allocated for Minnesota by the North American Numbering
Plan Administration.
new text end

new text begin Subd. 2. new text end

new text begin Representations of 911 service. new text end

new text begin A person shall
not advertise, market, or otherwise represent that the person
furnishes a service capable of providing access to emergency
services by dialing 911 unless the person provides a service
that routes 911 calls through the 911 emergency
telecommunications system.
new text end

new text begin Subd. 3. new text end

new text begin Disclosure. new text end

new text begin A service provider that does not
provide 911 dialing that routes 911 calls through the 911
emergency telecommunications system must disclose that fact in
all advertisements, marketing materials, and contracts. The
disclosure must be in capital letters, in 12-point font, and on
the front page of the advertisement, marketing materials, and
contracts. The disclosure must state: "THIS SERVICE DOES NOT
ROUTE 911 CALLS THROUGH THE 911 EMERGENCY SYSTEM."
new text end

new text begin Subd. 4. new text end

new text begin Certain calls not 911 calls. new text end

new text begin For purposes of
this section, 911 calls routed to the general access number at a
public safety answering point do not qualify as being routed
through a 911 emergency telecommunications system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 74.

Minnesota Statutes 2004, section 326.975,
subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) In addition to any other
fees, each applicant for a license under sections 326.83 to
326.98 shall pay a fee to the contractor's recovery fund. The
contractor's recovery fund is created in the state treasury and
must be administered by the commissioner in the manner and
subject to all the requirements and limitations provided by
section 82.43 with the following exceptions:

(1) each licensee who renews a license shall pay in
addition to the appropriate renewal fee an additional fee which
shall be credited to the contractor's recovery fund. The amount
of the fee shall be based on the licensee's gross annual
receipts for the licensee's most recent fiscal year preceding
the renewal, on the following scale:

Fee Gross Receipts
$100 under $1,000,000
$150 $1,000,000 to $5,000,000
$200 over $5,000,000

Any person who receives a new license shall pay a fee based on
the same scale;

(2) new text begin (i) new text end the sole purpose of this fund is to compensate any
aggrieved owner or lessee of residential property located within
this state who obtains a final judgment in any court of
competent jurisdiction against a licensee licensed under section
326.84, on grounds of fraudulent, deceptive, or dishonest
practices, conversion of funds, or failure of performance
arising directly out of any transaction when the judgment debtor
was licensed and performed any of the activities enumerated
under section 326.83, subdivision 19, on the owner's residential
property or on residential property rented by the lessee, or on
new residential construction which was never occupied prior to
purchase by the owner, or which was occupied by the licensee for
less than one year prior to purchase by the owner, and which
cause of action arose on or after April 1, 1994; new text begin and
new text end

new text begin (ii) reimburse the Department of Commerce for all legal and
administrative expenses, including staffing costs, incurred in
administering the fund;
new text end

(3) nothing may obligate the fund for more than $50,000 per
claimant, nor more than $75,000 per licensee; and

(4) nothing may obligate the fund for claims based on a
cause of action that arose before the licensee paid the recovery
fund fee set in clause (1), or as provided in section 326.945,
subdivision 3.

(b) Should the commissioner pay from the contractor's
recovery fund any amount in settlement of a claim or toward
satisfaction of a judgment against a licensee, the license shall
be automatically suspended upon the effective date of an order
by the court authorizing payment from the fund. No licensee
shall be granted reinstatement until the licensee has repaid in
full, plus interest at the rate of 12 percent a year, twice the
amount paid from the fund on the licensee's account, and has
obtained a surety bond issued by an insurer authorized to
transact business in this state in the amount of at least
$40,000.

Sec. 75.

Minnesota Statutes 2004, section 345.47,
subdivision 3, is amended to read:

Subd. 3.

Securities.

Securities listed on an established
stock exchange shall be sold at the prevailing prices on the
exchange. Other securities may be sold over the counter at
prevailing prices or, deleted text begin with prior approval of the State Board of
Investment, deleted text end by another method the commissioner determines
advisable. United States government savings bonds and United
States war bonds shall be presented to the United States for
payment.

Sec. 76.

Minnesota Statutes 2004, section 345.47,
subdivision 3a, is amended to read:

Subd. 3a.

Holding period.

deleted text begin All securities presumed
abandoned under section 345.35 and delivered to the commissioner
must be held for at least three years before they are sold. A
person making a claim under this section is entitled to receive
either the securities delivered to the commissioner by the
holder, if they still remain in the hands of the commissioner,
or the proceeds received from the sale, but no person has any
claim under this section against the state, the holder, any
transfer agent, registrar, or other person acting for or on
behalf of a holder for any appreciation in the value of the
property occurring after delivery by the holder to the
commissioner. deleted text end new text begin If the property is of a type customarily sold on
a recognized market or of a type which may be sold over the
counter at prevailing prices, the commissioner may sell the
property without notice by publication or otherwise. The
commissioner may proceed with the liquidation after holding for
one year, with the exception of securities being held as the
result of an insurance company demutualization, these types of
securities may be sold upon receipt. The language provided in
this section grants to the commissioner express authority to
sell any property including, but not limited to, stocks, bonds,
notes, bills, and all other public or private securities. A
person making a claim under section 345.35 is entitled to
receive the securities delivered to the administrator by the
holder, if they still remain in the custody of the
administrator, or the net proceeds received from sale, and is
not entitled to receive any appreciation in the value of the
property occurring after sale by the commissioner. The
commissioner may liquidate all unclaimed securities currently
held in custody in accordance with the provisions of this
section.
new text end

Sec. 77.

Minnesota Statutes 2004, section 373.40,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this
section, the following terms have the meanings given.

(a) "Bonds" means an obligation as defined under section
475.51.

(b) "Capital improvement" means acquisition or betterment
of public lands, development rights in the form of conservation
easements under chapter 84C, buildings, or other improvements
within the county for the purpose of a county courthouse,
administrative building, health or social service facility,
correctional facility, jail, law enforcement center, hospital,
morgue, library, park, qualified indoor ice arena, and roads and
bridges. An improvement must have an expected useful life of
five years or more to qualify. "Capital improvement" does not
include light rail transit or any activity related to it or a
recreation or sports facility building (such as, but not limited
to, a gymnasium, ice arena, racquet sports facility, swimming
pool, exercise room or health spa), unless the building is part
of an outdoor park facility and is incidental to the primary
purpose of outdoor recreation.

(c) deleted text begin "Commissioner" means the commissioner of employment and
economic development.
deleted text end

deleted text begin (d) deleted text end "Metropolitan county" means a county located in the
seven-county metropolitan area as defined in section 473.121 or
a county with a population of 90,000 or more.

deleted text begin (e) deleted text end new text begin (d) new text end "Population" means the population established by
the most recent of the following (determined as of the date the
resolution authorizing the bonds was adopted):

(1) the federal decennial census,

(2) a special census conducted under contract by the United
States Bureau of the Census, or

(3) a population estimate made either by the Metropolitan
Council or by the state demographer under section 4A.02.

deleted text begin (f) deleted text end new text begin (e) new text end "Qualified indoor ice arena" means a facility that
meets the requirements of section 373.43.

deleted text begin (g) deleted text end new text begin (f) new text end "Tax capacity" means total taxable market value,
but does not include captured market value.

Sec. 78.

Minnesota Statutes 2004, section 373.40,
subdivision 3, is amended to read:

Subd. 3.

Capital improvement plan.

(a) A county may
adopt a capital improvement plan. The plan must cover at least
the five-year period beginning with the date of its adoption.
The plan must set forth the estimated schedule, timing, and
details of specific capital improvements by year, together with
the estimated cost, the need for the improvement, and sources of
revenues to pay for the improvement. In preparing the capital
improvement plan, the county board must consider for each
project and for the overall plan:

(1) the condition of the county's existing infrastructure,
including the projected need for repair or replacement;

(2) the likely demand for the improvement;

(3) the estimated cost of the improvement;

(4) the available public resources;

(5) the level of overlapping debt in the county;

(6) the relative benefits and costs of alternative uses of
the funds;

(7) operating costs of the proposed improvements; and

(8) alternatives for providing services more efficiently
through shared facilities with other counties or local
government units.

(b) The capital improvement plan and annual amendments to
it deleted text begin must be deleted text end new text begin are not effective until new text end approved by the county board
after public hearing. deleted text begin The county must submit the capital
improvement plan to the community development division of the
Department of Employment and Economic Development. The plan is
not effective if the commissioner disapproves the plan within 90
days after it was submitted. If the commissioner has not
disapproved the plan within 90 days after its submission, the
plan is deemed approved and effective. The commissioner shall
disapprove a capital improvement plan only if the commissioner
determines (1) that the planned improvements cannot be financed
within the limits specified in subdivision 4, or (2) the county
in preparing the plan did not consider the factors listed in
this subdivision or failed to gather the information necessary
to evaluate the plan under the factors, or (3) the proposed
improvements will result in unnecessary duplication of public
facilities provided by other units of government in the region
or there is insufficient demand for the facility. If the plan
is disapproved by the commissioner and the county board does not
withdraw the plan, the capital improvement plan must be
submitted to the voters for approval. If a majority of the
voters approve, the plan is approved and effective.
deleted text end

Sec. 79.

Minnesota Statutes 2004, section 462A.05,
subdivision 3a, is amended to read:

Subd. 3a.

Refinancing deleted text begin nonprofits deleted text end ; residential housing.

It may refinance the existing indebtedness of deleted text begin nonprofit
entities, as defined by the agency deleted text end new text begin owners of rental property new text end ,
secured by residential housing for occupancy by persons and
families of low and moderate income, if refinancing is
determined by the agency to be necessary to reduce housing costs
to an affordable level or to maintain the supply of affordable
low-income housing. The authority granted in this subdivision
is in addition to and not in limitation of the authority granted
in section 462A.05, subdivision 14.

Sec. 80.

Minnesota Statutes 2004, section 462A.33,
subdivision 2, is amended to read:

Subd. 2.

Eligible recipients.

Challenge grants or loans
may be made to a city, new text begin a federally recognized American Indian
tribe or subdivision located in Minnesota, a tribal housing
corporation, new text end a private developer, a nonprofit organization, or
the owner of the housing, including individuals. For the
purpose of this section, "city" has the meaning given it in
section 462A.03, subdivision 21. To the extent practicable,
grants and loans shall be made so that an approximately equal
number of housing units are financed in the metropolitan area
and in the nonmetropolitan area.

Sec. 81.

Minnesota Statutes 2004, section 517.08,
subdivision 1b, is amended to read:

Subd. 1b.

Term of license; fee; premarital education.

(a) The local registrar shall examine upon oath the party
applying for a license relative to the legality of the
contemplated marriage. If at the expiration of a five-day
period, on being satisfied that there is no legal impediment to
it, including the restriction contained in section 259.13, the
local registrar shall issue the license, containing the full
names of the parties before and after marriage, and county and
state of residence, with the county seal attached, and make a
record of the date of issuance. The license shall be valid for
a period of six months. In case of emergency or extraordinary
circumstances, a judge of the district court of the county in
which the application is made, may authorize the license to be
issued at any time before the expiration of the five days.
Except as provided in paragraph (b), the local registrar shall
collect from the applicant a fee of deleted text begin $85 deleted text end new text begin $75 new text end for administering
the oath, issuing, recording, and filing all papers required,
and preparing and transmitting to the state registrar of vital
statistics the reports of marriage required by this section. If
the license should not be used within the period of six months
due to illness or other extenuating circumstances, it may be
surrendered to the local registrar for cancellation, and in that
case a new license shall issue upon request of the parties of
the original license without fee. A local registrar who
knowingly issues or signs a marriage license in any manner other
than as provided in this section shall pay to the parties
aggrieved an amount not to exceed $1,000.

(b) The marriage license fee for parties who have completed
at least 12 hours of premarital education is $20. In order to
qualify for the reduced fee, the parties must submit a signed
and dated statement from the person who provided the premarital
education confirming that it was received. The premarital
education must be provided by a licensed or ordained minister or
the minister's designee, a person authorized to solemnize
marriages under section 517.18, or a person authorized to
practice marriage and family therapy under section 148B.33. The
education must include the use of a premarital inventory and the
teaching of communication and conflict management skills.

(c) The statement from the person who provided the
premarital education under paragraph (b) must be in the
following form:

"I, (name of educator), confirm that (names of both
parties) received at least 12 hours of premarital education that
included the use of a premarital inventory and the teaching of
communication and conflict management skills. I am a licensed
or ordained minister, a person authorized to solemnize marriages
under Minnesota Statutes, section 517.18, or a person licensed
to practice marriage and family therapy under Minnesota
Statutes, section 148B.33."

The names of the parties in the educator's statement must
be identical to the legal names of the parties as they appear in
the marriage license application. Notwithstanding section
138.17, the educator's statement must be retained for seven
years, after which time it may be destroyed.

(d) If section 259.13 applies to the request for a marriage
license, the local registrar shall grant the marriage license
without the requested name change. Alternatively, the local
registrar may delay the granting of the marriage license until
the party with the conviction:

(1) certifies under oath that 30 days have passed since
service of the notice for a name change upon the prosecuting
authority and, if applicable, the attorney general and no
objection has been filed under section 259.13; or

(2) provides a certified copy of the court order granting
it. The parties seeking the marriage license shall have the
right to choose to have the license granted without the name
change or to delay its granting pending further action on the
name change request.

Sec. 82.

Minnesota Statutes 2004, section 517.08,
subdivision 1c, is amended to read:

Subd. 1c.

Disposition of license fee.

(a) Of the
marriage license fee collected pursuant to subdivision 1b,
paragraph (a), $15 must be retained by the county. The local
registrar must pay deleted text begin $70 deleted text end new text begin $60 new text end to the commissioner of finance to be
deposited as follows:

(1) $50 in the general fund;

(2) $3 in the special revenue fund to be appropriated to
the commissioner of education for parenting time centers under
section 119A.37;

(3) $2 in the special revenue fund to be appropriated to
the commissioner of health for developing and implementing the
MN ENABL program under section 145.9255; new text begin and
new text end

(4) deleted text begin $10 in the special revenue fund to be appropriated to
the commissioner of employment and economic development for the
displaced homemaker program under section 116L.96; and
deleted text end

deleted text begin (5) deleted text end $5 in the special revenue fund to be appropriated to
the commissioner of human services for the Minnesota Healthy
Marriage and Responsible Fatherhood Initiative under section
256.742.

(b) Of the $20 fee under subdivision 1b, paragraph (b), $15
must be retained by the county. The local registrar must pay $5
to the commissioner of finance to be distributed as provided in
paragraph (a), clauses (2) and (3).

(c) The increase in the marriage license fee under
paragraph (a) provided for in Laws 2004, chapter 273, and
disbursement of the increase in that fee to the special fund for
the Minnesota Healthy Marriage and Responsible Fatherhood
Initiative under paragraph (a), clause deleted text begin (5) deleted text end new text begin (4) new text end , is contingent
upon the receipt of federal funding under United States Code,
title 42, section 1315, for purposes of the initiative.

Sec. 83.

Laws 1999, chapter 224, section 7, as amended by
Laws 2004, chapter 261, article 6, section 3, is amended to read:

Sec. 7 new text begin SUNSET.
new text end

Sections 2 and 4 expire on August 1, deleted text begin 2005 deleted text end new text begin 2006 new text end , and
Minnesota Statutes 1998, sections 237.63, 237.65, and 237.68,
expire on December 31, 2004.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 84.

Laws 2003, chapter 128, article 1, section 172,
is amended to read:

Sec. 172 new text begin TEMPORARY PETROFUND FEE EXEMPTION FOR MINNESOTA
COMMERCIAL AIRLINES.
new text end

(a) A commercial airline providing regularly scheduled jet
service and with its corporate headquarters in Minnesota is
exempt from the fee established in Minnesota Statutes, section
115C.08, subdivision 3, until July 1, deleted text begin 2005 deleted text end new text begin 2007 new text end , provided the
airline develops a plan approved by the commissioner of commerce
demonstrating that the savings from this exemption will go
towards minimizing job losses in Minnesota, and to support the
airline's efforts to avoid filing for federal bankruptcy
protections.

(b) A commercial airline exempted from the fee is
ineligible to receive reimbursement under Minnesota Statutes,
chapter 115C, until July 1, deleted text begin 2005 deleted text end new text begin 2007 new text end . A commercial airline
that has a release during the fee exemption period is ineligible
to receive reimbursement under Minnesota Statutes, chapter 115C,
for the costs incurred in response to that release.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 85. new text begin INCREASED JOB TRAINING AND WAGES FOR
MINORITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Initiative. new text end

new text begin The commissioner of
employment and economic development shall develop an initiative
to promote employment opportunities for minorities, including
Native Americans, with a particular focus on opportunities for
American blacks, in the state of Minnesota. At a minimum, the
initiative should significantly expand the job training
available to minorities and promote substantial increases in the
wages paid to minorities, at least to a rate well above living
wage, and within several years to equality.
new text end

new text begin Subd. 2. new text end

new text begin Interim report. new text end

new text begin The commissioner, in
consultation with the Governor's Workforce Development Council,
shall prepare an interim report detailing the parameters of the
initiative to the governor and the chair of the finance
committee in each house of the legislature that has jurisdiction
over employment. The interim report must be made within 90 days
of the effective date of this section.
new text end

new text begin Subd. 3. new text end

new text begin Final report. new text end

new text begin The commissioner, in consultation
with the Governor's Workforce Development Council, shall prepare
a final report detailing a proposed initiative by January 10,
2006.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 86. new text begin SMALL BUSINESS DEVELOPMENT STUDY.
new text end

new text begin The commissioner of employment and economic development
must investigate options for charging fees for services that
help companies seek federal Phase II Small Business Innovation
Research grants. The results and recommendations from this
study must be submitted to the chairs of the house and senate
economic development finance committees by February 1, 2006.
new text end

Sec. 87. new text begin PREVAILING WAGE ADVISORY COUNCIL.
new text end

new text begin The commissioner of labor and industry and the commissioner
of employment and economic development shall convene a
prevailing wage advisory council. The advisory council shall
consist of 12 members as follows: the presidents of the largest
statewide Minnesota business and organized labor organizations
as measured by the number of employees of its business members
and in its affiliated labor organizations in Minnesota on July
1, 2005. The governor, the majority leader of the senate, the
speaker of the house of representatives, the minority leader of
the senate, and the minority leader of the house of
representatives shall each select a business and a labor
representative. At least four of the labor representatives
shall be chosen from the affiliated membership of the Minnesota
AFL-CIO. At least two of the business representatives shall be
representatives of small employers as defined in Minnesota
Statutes, section 177.24, subdivision 1, paragraph (a), clause
(2). None of the council members shall represent attorneys,
health care providers, qualified rehabilitation consultants, or
insurance companies.
new text end

new text begin The advisory council shall study whether:
new text end

new text begin (1) the responsibility of collecting information needed to
ascertain construction prevailing wages should be transferred
from the Department of Labor and Industry to the Department of
Employment and Economic Development;
new text end

new text begin (2) the construction prevailing wage rate should be
calculated on a regional basis; and
new text end

new text begin (3) the construction prevailing wage rate should be an
average of the rate plus benefits paid to workers engaged in the
same class of labor within the area.
new text end

new text begin The advisory council shall make a recommendation on these
issues to the governor and the chairs of the committees with
jurisdiction over labor issues in the senate and house of
representatives by January 15, 2006.
new text end

Sec. 88. new text begin SESQUICENTENNIAL COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Commission; purpose. new text end

new text begin The Minnesota
Sesquicentennial Commission is established to plan for
activities relating to Minnesota's 150th anniversary of
statehood. The commission shall create a plan for capital
improvements, celebratory activities, and public engagement in
every county in the state of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The commission shall consist of 17
members who shall serve until the completion of the
sesquicentennial year of statehood, appointed as follows:
new text end

new text begin (1) nine members appointed by the governor, representing
major corporate, nonprofit, and public sectors of the state,
selected from all parts of the state;
new text end

new text begin (2) two members appointed by the speaker of the house of
representatives;
new text end

new text begin (3) two members appointed by the minority leader of the
house of representatives;
new text end

new text begin (4) two members from the majority party in the senate,
appointed by the Subcommittee on Committees; and
new text end

new text begin (5) two members from the minority party in the senate,
appointed by the Subcommittee on Committees.
new text end

new text begin Subd. 3. new text end

new text begin Compensation; operation. new text end

new text begin Members shall select a
chair from the membership of the commission. The chair shall
convene all meetings and set the agenda for the commission. The
Minnesota Historical Society shall provide office space and
staff support for the commission, and shall cooperate with the
University of Minnesota and Minnesota State Colleges and
Universities to support the programs of the commission.
Meetings shall be at the call of the chair. The commission may
appoint an advisory council to advise and assist the commission
with its duties. Members shall receive no compensation for
service on the Sesquicentennial Commission. Members appointed
by the governor may be reimbursed for expenses under Minnesota
Statutes, section 15.059, subdivision 3.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The commission shall have the following
duties:
new text end

new text begin (1) to present to the governor and legislature a plan for
capital grants to pay for capital improvements on Minnesota's
historic public and private buildings, to be known as
sesquicentennial grants;
new text end

new text begin (2) to seek funding for activities to celebrate the 150th
anniversary of statehood, and to form partnerships with private
parties to further this mission; and
new text end

new text begin (3) to present an annual report to the governor and
legislature outlining progress made towards the celebration of
the sesquicentennial.
new text end

new text begin Subd. 5. new text end

new text begin Commemorative coin. new text end

new text begin The commission may arrange
for design, production, distribution, marketing, and sale of a
commemorative coin. Proceeds from sale of the commemorative
coin are appropriated to the commission.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The commission shall continue to
operate until January 30, 2009, at which time it shall expire.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 89. new text begin INSTRUCTION TO REVISOR.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes,
section 239.05, as section 239.051, alphabetize the definitions,
and correct any cross-references to that section accordingly.
new text end

Sec. 90. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 45.0295; 116J.573;
116J.58, subdivision 3; 116L.05, subdivision 4; 239.05,
subdivisions 6a and 6b; and 462C.15, are repealed.
new text end

Sec. 91. new text begin APPLICATION.
new text end

new text begin The provisions of sections 14 to 17 do not apply to
appropriations under Laws 2005, chapter 20.
new text end

ARTICLE 3

HUMAN SERVICES APPROPRIATIONS

Section 1. new text begin HUMAN SERVICES APPROPRIATIONS.
new text end

The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or any other fund named, to
the agencies and for the purposes specified in the sections of
this article, to be available for the fiscal years indicated for
each purpose. The figures "2006" and "2007" where used in this
article, mean that the appropriation or appropriations listed
under them are available for the fiscal year ending June 30,
2006, or June 30, 2007, respectively.
SUMMARY BY FUND

BIENNIAL
2006 2007 TOTAL

General $ 411,712,000 $ 420,246,000 $ 831,958,000

Health Care
Access 249,000 249,000 498,000

Federal TANF 219,901,000 247,697,000 467,598,000

TOTAL $ 631,862,000 $ 668,192,000 $1,300,054,000

APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007

Sec. 2. COMMISSIONER OF
HUMAN SERVICES

Subdivision 1.

Total
Appropriation $ 631,862,000 $ 668,192,000

Summary by Fund

General 411,712,000 420,246,000

Health Care
Access 249,000 249,000

Federal TANF 219,901,000 247,697,000

[FOOD STAMPS EMPLOYMENT AND TRAINING
FUNDS.] Notwithstanding Minnesota
Statutes, sections 256J.626 and
256D.051, subdivisions 1a, 6b, and 6c,
federal food stamps employment and
training funds received as
reimbursement of Minnesota family
investment program consolidated fund
grant expenditures must be deposited in
the general fund. Consistent with the
receipt of these federal funds, the
commissioner may adjust the level of
working family credit expenditures
claimed as TANF maintenance of effort.

[TANF FUNDS APPROPRIATED TO OTHER
ENTITIES.] Any expenditures from the
TANF block grant shall be expended
according to the requirements and
limitations of part A of title IV of
the Social Security Act, as amended,
and any other applicable federal
requirement or limitation. Prior to
any expenditure of these funds, the
commissioner shall ensure that funds
are expended in compliance with the
requirements and limitations of federal
law and that any reporting requirements
of federal law are met. It shall be
the responsibility of any entity to
which these funds are appropriated to
implement a memorandum of understanding
with the commissioner that provides the
necessary assurance of compliance prior
to any expenditure of funds. The
commissioner shall receipt TANF funds
appropriated to other state agencies
and coordinate all related interagency
accounting transactions necessary to
implement these appropriations.
Unexpended TANF funds appropriated to
any state, local, or nonprofit entity
cancel at the end of the state fiscal
year unless appropriating or statutory
language permits otherwise.

[TANF MAINTENANCE OF EFFORT.] (a) In
order to meet the basic maintenance of
effort (MOE) requirements of the TANF
block grant specified under Code of
Federal Regulations, title 45, section
263.1, the commissioner may only report
nonfederal money expended for allowable
activities listed in the following
clauses as TANF/MOE expenditures:

(1) MFIP cash, diversionary work
program, and food assistance benefits
under Minnesota Statutes, chapter 256J;

(2) the child care assistance programs
under Minnesota Statutes, sections
119B.03 and 119B.05, and county child
care administrative costs under
Minnesota Statutes, section 119B.15;

(3) state and county MFIP
administrative costs under Minnesota
Statutes, chapters 256J and 256K;

(4) state, county, and tribal MFIP
employment services under Minnesota
Statutes, chapters 256J and 256K;

(5) expenditures made on behalf of
noncitizen MFIP recipients who qualify
for the medical assistance without
federal financial participation program
under Minnesota Statutes, section
256B.06, subdivision 4, paragraphs (d),
(e), and (j); and

(6) qualifying working family credit
expenditures under Minnesota Statutes,
section 290.0671.

(b) The commissioner shall ensure that
sufficient qualified nonfederal
expenditures are made each year to meet
the state's TANF/MOE requirements. For
the activities listed in paragraph (a),
clauses (2) to (6), the commissioner
may only report expenditures that are
excluded from the definition of
assistance under Code of Federal
Regulations, title 45, section 260.31.

(c) For fiscal years beginning with
state fiscal year 2005, the
commissioner shall ensure that the
maintenance of effort used by the
commissioner of finance for the
February and November forecasts
required under Minnesota Statutes,
section 16A.103, contains expenditures
under paragraph (a), clause (1), equal
to at least 25 percent of the total
required under Code of Federal
Regulations, title 45, section 263.1.

(d) Minnesota Statutes, section
256.011, subdivision 3, which requires
that federal grants or aids secured or
obtained under that subdivision be used
to reduce any direct appropriations
provided by law, does not apply if the
grants or aids are federal TANF funds.

(e) Notwithstanding the expiration date
provided in section 6, paragraph (a),
clauses (1) to (6), and paragraphs (b)
to (d), expire June 30, 2009.

[WORKING FAMILY CREDIT EXPENDITURES AS
TANF/MOE.] The commissioner may claim
as TANF maintenance of effort up to the
following amounts of working family
credit expenditures for the following
fiscal years:

(1) fiscal year 2006, $6,942,000; and

(2) fiscal year 2007 and thereafter,
$6,707,000.

[INCREASE WORKING FAMILY CREDIT
EXPENDITURES TO BE CLAIMED FOR
TANF/MOE.] In addition to the amounts
provided in this section, the
commissioner may count the following
amounts of working family credit
expenditure as TANF/MOE:

(1) fiscal year 2006, $67,385,000;

(2) fiscal year 2007, $69,839,000;

(3) fiscal year 2008, $12,657,000; and

(4) fiscal year 2009, $8,237,000.

[SPECIAL REVENUE FUND TRANSFER.]
Notwithstanding any law to the
contrary, excluding accounts authorized
under Minnesota Statutes, section
16A.1286, and Minnesota Statutes,
chapter 254B, the commissioner shall
transfer $1,139,000 of uncommitted
special revenue fund balances to the
general fund. The actual transfers
shall be identified within the standard
information provided to the chairs of
the legislative committees with
jurisdiction over health and human
services issues in December 2005.

Subd. 2.

Children and Economic
Assistance Grants

Summary by Fund

General 369,129,000 377,643,000

Federal TANF 219,449,000 247,245,000

The amounts that may be spent from this
appropriation for each purpose are as
follows:

(a) MFIP/DWP Grants

General 35,640,000 31,902,000

Federal TANF 104,204,000 106,020,000

(b) Support Services Grants

General 8,697,000 8,715,000

Federal TANF 102,594,000 102,632,000

(c) MFIP Child Care Assistance Grants

General 41,170,000 20,030,000

Federal TANF 11,254,000 37,196,000

[MFIP CHILD CARE; TANF APPROPRIATION.]
The federal TANF appropriation is a
onetime appropriation.

[TANF TRANSFER TO FEDERAL CHILD CARE
AND DEVELOPMENT FUND.] $17,946,000 in
fiscal year 2006, $40,388,000 in fiscal
year 2007, and $3,192,000 in fiscal
year 2008 and each fiscal year
thereafter is appropriated to the
commissioner for the purposes of
MFIP/Transition Year child care under
Minnesota Statutes, section 119B.05.
The commissioner shall authorize
transfer of sufficient TANF funds to
the federal child care and development
fund to meet this appropriation and
shall ensure that all transferred funds
are expended according to the federal
child care and development fund
regulations.

(d) Basic Sliding Fee Child Care
Assistance Grants

General 6,592,000 24,911,000

[CHILD CARE AND DEVELOPMENT FUND
UNEXPENDED BALANCE.] In addition to the
amount provided in this section, the
commissioner shall expend $16,254,000
in fiscal year 2006 and $2,085,000 in
fiscal year 2007 from the federal child
care and development fund unexpended
balance for basic sliding fee child
care under Minnesota Statutes, section
119B.03. The commissioner shall ensure
that all child care and development
funds are expended according to the
federal child care and development fund
regulations.

[BASE ADJUSTMENT FOR FREEZE MAXIMUM
RATES FOR CHILD CARE ASSISTANCE.] The
general fund base is increased by
$4,301,000 in fiscal year 2008 and
$6,641,000 in fiscal year 2009 for
basic sliding fee child care assistance.

(e) Child Care Development Grants

General 1,540,000 1,540,000

(f) Child Support Enforcement Grants

General 3,255,000 3,255,000

(g) Children's Services Grants

General 40,488,000 49,580,000

[BASE ADJUSTMENT FOR ADOPTION
ASSISTANCE GRANTS.] The general fund
base is increased by $2,153,000 in
fiscal year 2008 and $4,310,000 in
fiscal year 2009 for adoption
assistance grants.

[BASE ADJUSTMENT FOR RELATIVE CUSTODY
ASSISTANCE GRANTS.] The general fund
base is increased by $838,000 in fiscal
year 2008 and $1,689,000 in fiscal year
2009 for relative custody assistance
grants.

[ADOPTION ASSISTANCE AND RELATIVE
CUSTODY ASSISTANCE.] The commissioner
may transfer unencumbered appropriation
balances for adoption assistance and
relative custody assistance between
fiscal years and between programs.

[PRIVATIZED ADOPTION GRANTS.] Federal
reimbursement for privatized adoption
grant and foster care recruitment grant
expenditures is appropriated to the
commissioner for adoption grants and
foster care and adoption administrative
purposes.

(h) Children and Community
Services Grants

General 68,488,000 68,488,000

[DELAY PROJECTS OF REGIONAL
SIGNIFICANCE.] Notwithstanding
Minnesota Statutes, section 256M.40,
subdivision 2, the projects of the
regional significance grant program are
delayed until July 1, 2007. The
general fund base for the program shall
be $25,000,000 in fiscal year 2008 and
$25,000,000 in fiscal year 2009.

(i) General Assistance Grants

General 30,823,000 31,157,000

[GENERAL ASSISTANCE STANDARD.] The
commissioner shall set the monthly
standard of assistance for general
assistance units consisting of an adult
recipient who is childless and
unmarried or living apart from parents
or a legal guardian at $203. The
commissioner may reduce this amount
according to Laws 1997, chapter 85,
article 3, section 54.

[EMERGENCY GENERAL ASSISTANCE.] The
amount appropriated for emergency
general assistance funds is limited to
no more than $7,889,812 in fiscal year
2006 and $7,889,812 in fiscal year
2007. Funds to counties shall be
allocated by the commissioner using the
allocation method specified in
Minnesota Statutes, section 256D.06.

(j) Minnesota Supplemental Aid Grants

General 30,315,000 30,801,000

[EMERGENCY MINNESOTA SUPPLEMENTAL AID
FUNDS.] The amount appropriated for
emergency Minnesota supplemental aid
funds is limited to no more than
$1,100,000 in fiscal year 2006 and
$1,100,000 in fiscal year 2007. Funds
to counties shall be allocated by the
commissioner using the allocation
method specified in Minnesota Statutes,
section 256D.46.

(k) Group Residential Housing Grants

General 85,487,000 91,009,000

(l) Other Children and Economic
Assistance Grants

General 16,634,000 16,255,000

Federal TANF 1,397,000 1,397,000

[TRANSITIONAL HOUSING.] $3,238,000 in
fiscal year 2006 and $3,238,000 in
fiscal year 2007 are appropriated for
transitional housing under Minnesota
Statutes, section 119A.43. Of this
amount, $1,397,000 in fiscal year 2006
and $1,397,000 in fiscal year 2007 are
onetime appropriations from the federal
TANF fund. The general fund base for
transitional housing shall be
$2,988,000 each year for the fiscal
2008-2009 biennium.

Subd. 3.

Children and Economic Assistance
Management

Summary by Fund

General 42,583,000 42,603,000

Health Care Access 249,000 249,000

Federal TANF 452,000 452,000

The amounts that may be spent from the
appropriation for each purpose are as
follows:

(a) Children and Economic
Assistance Administration

General 7,838,000 7,832,000

Federal TANF 452,000 452,000

(b) Children and Economic
Assistance Operations

General 34,745,000 34,771,000

Health Care Access 249,000 249,000

[SPENDING AUTHORITY FOR FOOD STAMPS
BONUS AWARDS.] In the event that
Minnesota qualifies for the United
States Department of Agriculture Food
and Nutrition Services Food Stamp
Program performance bonus awards
beginning in federal fiscal year 2004,
the funding is appropriated to the
commissioner. The commissioner shall
retain 25 percent of the funding, with
the other 75 percent divided among the
counties according to a formula that
takes into account each county's impact
on state performance in the applicable
bonus categories.

[CHILD SUPPORT PAYMENT CENTER.]
Payments to the commissioner from other
governmental units, private
enterprises, and individuals for
services performed by the child support
payment center must be deposited in the
state systems account authorized under
Minnesota Statutes, section 256.014.
These payments are appropriated to the
commissioner for the operation of the
child support payment center or system,
according to Minnesota Statutes,
section 256.014.

[CHILD SUPPORT COST RECOVERY FEES.] The
commissioner shall transfer $34,000 of
child support cost recovery fees
collected in fiscal year 2006 and
fiscal year 2007 to the PRISM special
revenue account to offset PRISM system
costs of maintaining the fee.

[STUDY OF ECONOMIC IMPACT OF CHILD
SUPPORT GUIDELINES.] Of this amount,
$20,000 is appropriated to the
commissioner of human services in
fiscal year 2006 to pay the state's
share of the cost of study on the
economic impact of child support
guidelines in article 5, section 26.

[FINANCIAL INSTITUTION DATA MATCH AND
PAYMENT OF FEES.] The commissioner is
authorized to allocate up to $310,000
each year in fiscal year 2006 and
fiscal year 2007 from the PRISM special
revenue account to make payments to
financial institutions in exchange for
performing data matches between account
information held by financial
institutions and the public authority's
database of child support obligors as
authorized by Minnesota Statutes,
section 13B.06, subdivision 7.

Sec. 3. new text begin TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Grants. new text end

new text begin The commissioner of human
services, with the approval of the commissioner of finance, and
after notification of the chairs of the relevant senate budget
division and house finance committee, may transfer unencumbered
appropriation balances for the biennium ending June 30, 2007,
within fiscal years among the MFIP, general assistance, medical
assistance, MFIP child care assistance under Minnesota Statutes,
section 119B.05, Minnesota supplemental aid, group residential
housing programs, and the entitlement portion of the chemical
dependency consolidated treatment fund, and between fiscal years
of the biennium.
new text end

new text begin Subd. 2. new text end

new text begin Administration. new text end

new text begin Positions, salary money, and
nonsalary administrative money may be transferred within the
Departments of Human Services and Health and within the programs
operated by the Veterans Nursing Homes Board as the
commissioners and the board consider necessary, with the advance
approval of the commissioner of finance. The commissioner or
the board shall inform the chairs of the relevant house and
senate health committees quarterly about transfers made under
this provision.
new text end

new text begin Subd. 3. new text end

new text begin Prohibited transfers. new text end

new text begin Grant money shall not be
transferred to operations within the Departments of Human
Services and Health and within the programs operated by the
Veterans Nursing Homes Board without the approval of the
legislature.
new text end

Sec. 4. new text begin SPECIAL REVENUE TRANSFER FOR CERTAIN PROGRAMS.
new text end

new text begin (a) The balance of indirect cost reimbursement attributable
to federal grants transferred from the Department of Education
to the Department of Human Services and available at the close
of fiscal year 2005 shall be transferred to the general fund.
new text end

new text begin (b) The balance of the child care child support recoveries
in the special revenue account established under Minnesota
Statutes, section 119B.074, and available at the close of fiscal
year 2005 shall be transferred to the general fund.
new text end

Sec. 5. new text begin INDIRECT COSTS NOT TO FUND PROGRAMS.
new text end

new text begin The commissioners of health and human services shall not
use indirect cost allocations to pay for the operational costs
of any program for which they are responsible.
new text end

Sec. 6. new text begin SUNSET OF UNCODIFIED LANGUAGE.
new text end

new text begin All uncodified language contained in this article expires
on June 30, 2007, unless a different expiration date is explicit.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin The provisions in this article are effective July 1, 2005,
unless a different effective date is specified.
new text end

ARTICLE 4

DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT

Section 1. new text begin ADJUSTMENT.
new text end

The dollar amounts shown are added to or, if shown in
parentheses, are subtracted from the appropriations in Laws
2003, First Special Session chapter 14, as amended by Laws 2004,
chapter 272, or other law, and are appropriated from the general
fund, or any other fund named, to the Department of Human
Services for the purposes specified in this article, to be
available for the fiscal year indicated for each purpose. The
figure "2005" used in this article means that the appropriation
or appropriations listed are available for the fiscal year
ending June 30, 2005.
SUMMARY BY FUND

2005

General Fund 8,280,000

TANF (16,831,000)

TOTAL (8,551,000)

Sec. 2. COMMISSIONER OF HUMAN SERVICES

Subdivision 1.

Total
Appropriation (8,551,000)
Summary by Fund

General 8,280,000

TANF (16,831,000)

Subd. 2. Continuing Care Grants

General (6,017,000)

The amount that may be spent from this
appropriation for each purpose is as
follows:

Group Residential Housing
General 6,017,000

Subd. 3. Economic Support Grants

General 22,940,000

TANF (16,831,000)

The amount that may be spent from this
appropriation for each purpose is as
follows:

(a) Minnesota Family Investment Program
General 21,000,000

TANF (16,831,000)

(b) General Assistance 2,840,000

(c) Minnesota Supplemental Aid (900,000)

Subd. 4.

Child Care
Total Appropriation (20,677,000)

General Fund (20,677,000)

ARTICLE 5

CHILDREN AND FAMILIES

Section 1.

Minnesota Statutes 2004, section 119B.02, is
amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Annual report. new text end

new text begin The commissioner shall report
each January, using the most current data sources available to
the agency, on the monthly average cost of child care assistance
per family, the basic sliding fee waiting list, provider's
willingness to care for children from families accessing child
care assistance as documented in the child care resource and
referral program report, the child care assistance program
participation by income level as compared to income eligibility
levels, trends in families applying for MFIP due to child care
reasons, the type of care selected by child care assistance
families as compared to historical trends and to that selected
by the general public, and the percentage of child care center
and family provider rates that are equal to or less than the
child care assistance maximum rate. The commissioner must also
report on the progress toward measurement of the school
readiness of children in families receiving child care
assistance and of the length of continuous employment of parents
by child care assistance sub-programs.
new text end

Sec. 2.

Minnesota Statutes 2004, section 119B.13,
subdivision 1, is amended to read:

Subdivision 1.

Subsidy restrictions.

new text begin (a) The provider
rates determined under this section for fiscal year 2003 and
implemented July 1, 2002, are to be continued in effect through
June 30, 2007. The commissioner of human services shall modify
the rate tables for child care centers published in Department
of Human Services Bulletin No. 03-68-07 so that in counties with
regional or statewide cells, the maximum rates must be the
higher of the 100th percentile of the 2002 market rate survey
data for the county or the rate currently identified in the
bulletin. Beginning in fiscal year 2008, new text end the maximum rate paid
for child care assistance new text begin in any county or multicounty region
new text end under the child care fund deleted text begin may not exceed deleted text end new text begin shall be the lesser of
new text end the 75th percentile rate for like-care arrangements in the
county new text begin or multicounty region new text end as surveyed by the commissioner new text begin or
the previous year's rate for like-care arrangements in the
county increased by the percent change in the average quarterly
national CPI-U index for the current state fiscal year over the
average quarterly index for the previous state fiscal year.
When the commissioner determines that, using the commissioner's
established protocol, the number of providers responding to the
survey is too small to determine the 75th percentile rate for
like-care arrangements in a county or multicounty region, the
commissioner may establish the 75th percentile maximum rate
based on like-care arrangements in a county, region, or category
that the commissioner deems to be similar new text end .

new text begin (b) new text end A rate which includes a special needs rate paid under
subdivision 3 may be in excess of the maximum rate allowed under
this subdivision.

new text begin (c) new text end The department shall monitor the effect of this
paragraph on provider rates. The county shall pay the
provider's full charges for every child in care up to the
maximum established. The commissioner shall determine the
maximum rate for each type of care on an hourly, full-day, and
weekly basis, including special needs and handicapped care. deleted text begin Not
less than once every two years, the commissioner shall evaluate
market practices for payment of absences and shall establish
policies for payment of absent days that reflect current market
practice.
deleted text end

new text begin (d) new text end When the provider charge is greater than the maximum
provider rate allowed, the parent is responsible for payment of
the difference in the rates in addition to any family co-payment
fee.

new text begin (e) The commissioner of human services must report each
January on the access that families receiving child care
assistance have to child care programs by identifying the
percentage of child care center and family child care provider
rates that are equal to or less than the maximum rates paid by
the child care assistance programs. The commissioner must
report the average percentage change in surveyed rates by
provider type. The commissioner shall also report the
percentage change in the average quarterly national CPI-U index
for the four quarters up to and including the quarter in which
the most recent rate survey began over the four previous
quarters. Reporting must be based on the rate data collected in
the most recent rate survey.
new text end

Sec. 3.

Minnesota Statutes 2004, section 119B.13, is
amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Absent days. new text end

new text begin Child care providers may not be
reimbursed for more than 25 absent days per child, excluding
holidays, in a fiscal year, or for more than ten consecutive
absent days, unless the child has a documented medical condition
that causes more frequent absences. Documentation of medical
conditions must be on the forms and submitted according to the
timelines established by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 4.

Minnesota Statutes 2004, section 120A.40, is
amended to read:

120A.40 SCHOOL CALENDAR.

(a) Except for learning programs during summer, flexible
learning year programs authorized under sections 124D.12 to
124D.127, and learning year programs under section 124D.128, a
district must not commence an elementary or secondary school
year before deleted text begin September 1 deleted text end new text begin Labor Day new text end , except as provided under
paragraph (b). Days devoted to teachers' workshops may be held
before deleted text begin September 1 deleted text end new text begin Labor Day new text end . Districts that enter into
cooperative agreements are encouraged to adopt similar school
calendars.

(b) A district may begin the school year on any day before
deleted text begin September 1 deleted text end new text begin Labor Day new text end to accommodate a construction or
remodeling project of $400,000 or more affecting a district
school facility. new text begin A school district that agrees to the same
schedule with a school district in an adjoining state also may
begin the school year before Labor Day as authorized under this
paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2006.
new text end

Sec. 5.

Minnesota Statutes 2004, section 245A.023, is
amended to read:

245A.023 IN-SERVICE TRAINING.

new text begin (a) new text end For purposes of child care centers, in-service training
must be completed within the license period for which it is
required. In-service training completed by staff persons as
required must be transferable upon a staff person's change in
employment to another child care program. License holders shall
record all staff in-service training on forms prescribed by the
commissioner of human services.

new text begin (b) Notwithstanding Minnesota Rules, part 9502.0385, for
day care facilities, the license holder and each primary
caregiver must complete 12 hours of inservice safety training
each year.
new text end

new text begin (c) Notwithstanding Minnesota Rules, part 9503.0035, for
child care centers, all teachers, assistant teachers, and staff
members must complete 12 hours of inservice safety training each
year.
new text end

Sec. 6.

Minnesota Statutes 2004, section 245A.10,
subdivision 4, is amended to read:

Subd. 4.

Annual license or certification fee for programs
with licensed capacity.

(a) Child care centers and programs
with a licensed capacity shall pay an annual nonrefundable
license or certification fee based on the following schedule:

Licensed Capacity Child Care Other
Center Program
License Fee License Fee
1 to 24 persons deleted text begin $300 deleted text end new text begin $225 new text end $400
25 to 49 persons deleted text begin $450 deleted text end new text begin $340 new text end $600
50 to 74 persons deleted text begin $600 deleted text end new text begin $450 new text end $800
75 to 99 persons deleted text begin $750 deleted text end new text begin $565 new text end $1,000
100 to 124 persons deleted text begin $900 deleted text end new text begin $675 new text end $1,200
125 to 149 persons deleted text begin $1,200 deleted text end new text begin $900 new text end $1,400
150 to 174 persons deleted text begin $1,400 deleted text end new text begin $1,050 new text end $1,600
175 to 199 persons deleted text begin $1,600 deleted text end new text begin $1,200 new text end $1,800
200 to 224 persons deleted text begin $1,800 deleted text end new text begin $1,350 new text end $2,000
225 or more persons deleted text begin $2,000 deleted text end new text begin $1,500 new text end $2,500

(b) A day training and habilitation program serving persons
with developmental disabilities or related conditions shall be
assessed a license fee based on the schedule in paragraph (a)
unless the license holder serves more than 50 percent of the
same persons at two or more locations in the community. When a
day training and habilitation program serves more than 50
percent of the same persons in two or more locations in a
community, the day training and habilitation program shall pay a
license fee based on the licensed capacity of the largest
facility and the other facility or facilities shall be charged a
license fee based on a licensed capacity of a residential
program serving one to 24 persons.

Sec. 7.

Minnesota Statutes 2004, section 254A.035,
subdivision 2, is amended to read:

Subd. 2.

Membership terms, compensation, removal and
expiration.

The membership of this council shall be composed of
17 persons who are American Indians and who are appointed by the
commissioner. The commissioner shall appoint one representative
from each of the following groups: Red Lake Band of Chippewa
Indians; Fond du Lac Band, Minnesota Chippewa Tribe; Grand
Portage Band, Minnesota Chippewa Tribe; Leech Lake Band,
Minnesota Chippewa Tribe; Mille Lacs Band, Minnesota Chippewa
Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth
Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation;
Prairie Island Sioux Indian Reservation; Shakopee Mdewakanton
Sioux Indian Reservation; Upper Sioux Indian Reservation;
International Falls Northern Range; Duluth Urban Indian
Community; and two representatives from the Minneapolis Urban
Indian Community and two from the St. Paul Urban Indian
Community. The terms, compensation, and removal of American
Indian Advisory Council members shall be as provided in section
15.059. The council expires June 30, deleted text begin 2001 deleted text end new text begin 2008 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from June 30, 2001.
new text end

Sec. 8.

Minnesota Statutes 2004, section 254A.04, is
amended to read:

254A.04 CITIZENS ADVISORY COUNCIL.

There is hereby created an Alcohol and Other Drug Abuse
Advisory Council to advise the Department of Human Services
concerning the problems of alcohol and other drug dependency and
abuse, composed of ten members. Five members shall be
individuals whose interests or training are in the field of
alcohol dependency and abuse; and five members whose interests
or training are in the field of dependency and abuse of drugs
other than alcohol. The terms, compensation and removal of
members shall be as provided in section 15.059. The council
expires June 30, deleted text begin 2001 deleted text end new text begin 2008 new text end . The commissioner of human services
shall appoint members whose terms end in even-numbered years.
The commissioner of health shall appoint members whose terms end
in odd-numbered years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from June 30, 2001.
new text end

Sec. 9.

Minnesota Statutes 2004, section 256.01, is
amended by adding a subdivision to read:

new text begin Subd. 14b. new text end

new text begin American indian child welfare projects. new text end

new text begin (a)
The commissioner of human services may authorize projects to
test tribal delivery of child welfare services to American
Indian children and their parents and custodians living on the
reservation. The commissioner has authority to solicit and
determine which tribes may participate in a project. Grants may
be issued to Minnesota Indian tribes to support the projects.
The commissioner may waive existing state rules as needed to
accomplish the projects. Notwithstanding section 626.556, the
commissioner may authorize projects to use alternative methods
of investigating and assessing reports of child maltreatment,
provided that the projects comply with the provisions of section
626.556 dealing with the rights of individuals who are subjects
of reports or investigations, including notice and appeal rights
and data practices requirements. The commissioner may seek any
federal approvals necessary to carry out the projects as well as
seek and use any funds available to the commissioner, including
use of federal funds, foundation funds, existing grant funds,
and other funds. The commissioner is authorized to advance
state funds as necessary to operate the projects. Federal
reimbursement applicable to the projects is appropriated to the
commissioner for the purposes of the projects. The projects
must be required to address responsibility for safety,
permanency, and well-being of children.
new text end

new text begin (b) For the purposes of this section, "American Indian
child" means a person under 18 years of age who is a tribal
member or eligible for membership in one of the tribes chosen
for a project under this subdivision and who is residing on the
reservation of that tribe.
new text end

new text begin (c) In order to qualify for an American Indian child
welfare project, a tribe must:
new text end

new text begin (1) be one of the existing tribes with reservation land in
Minnesota;
new text end

new text begin (2) have a tribal court with jurisdiction over child
custody proceedings;
new text end

new text begin (3) have a substantial number of children for whom
determinations of maltreatment have occurred;
new text end

new text begin (4) have capacity to respond to reports of abuse and
neglect under section 626.556;
new text end

new text begin (5) provide a wide range of services to families in need of
child welfare services; and
new text end

new text begin (6) have a tribal-state title IV-E agreement in effect.
new text end

new text begin (d) Grants awarded under this section may be used for the
nonfederal costs of providing child welfare services to American
Indian children on the tribe's reservation, including costs
associated with:
new text end

new text begin (1) assessment and prevention of child abuse and neglect;
new text end

new text begin (2) family preservation;
new text end

new text begin (3) facilitative, supportive, and reunification services;
new text end

new text begin (4) out-of-home placement for children removed from the
home for child protective purposes; and
new text end

new text begin (5) other activities and services approved by the
commissioner that further the goals of providing safety,
permanency, and well-being of American Indian children.
new text end

new text begin (e) When a tribe has initiated a project and has been
approved by the commissioner to assume child welfare
responsibilities for American Indian children of that tribe
under this section, the affected county social service agency is
relieved of responsibility for responding to reports of abuse
and neglect under section 626.556 for those children during the
time within which the tribal project is in effect and funded.
The commissioner shall work with tribes and affected counties to
develop procedures for data collection, evaluation, and
clarification of ongoing role and financial responsibilities of
the county and tribe for child welfare services prior to
initiation of the project. Children who have not been
identified by the tribe as participating in the project shall
remain the responsibility of the county. Nothing in this
section shall alter responsibilities of the county for law
enforcement or court services.
new text end

new text begin (f) The commissioner shall collect information on outcomes
relating to child safety, permanency, and well-being of American
Indian children who are served in the projects. Participating
tribes must provide information to the state in a format and
completeness deemed acceptable by the state to meet state and
federal reporting requirements.
new text end

Sec. 10.

Minnesota Statutes 2004, section 256.01, is
amended by adding a subdivision to read:

new text begin Subd. 23. new text end

new text begin Annual report. new text end

new text begin Beginning July 1, 2005, the
commissioner shall prepare an annual report of the number of
eligible applicants who applied in the prior calendar year for
general assistance, under chapter 256D; MFIP, under chapter
256J; and food support, under chapter 256D, who had not lived in
Minnesota for the 12 months prior to the application month. The
report shall indicate the number of applicants by state of prior
residence or by the general category of foreign country.
new text end

Sec. 11.

Minnesota Statutes 2004, section 256.741,
subdivision 4, is amended to read:

Subd. 4.

Effect of assignment.

Assignments in this
section take effect upon a determination that the applicant is
eligible for public assistance. The amount of support assigned
under this subdivision may not exceed the total amount of public
assistance issued or the total support obligation, whichever is
less. Child care support collections made according to an
assignment under subdivision 2, paragraph (c), must be
deposited, subject to any limitations of federal law, deleted text begin by the
commissioner of human services in the child support collection
account in the special revenue fund and appropriated to the
commissioner of education for child care assistance under
section 119B.03. These collections are in addition to state and
federal funds appropriated to the child care deleted text end new text begin in the general new text end fund.

Sec. 12.

Minnesota Statutes 2004, section 256B.0924,
subdivision 3, is amended to read:

Subd. 3.

Eligibility.

Persons are eligible to receive
targeted case management services under this section if the
requirements in paragraphs (a) and (b) are met.

(a) The person must be assessed and determined by the local
county agency to:

(1) be age 18 or older;

(2) be receiving medical assistance;

(3) have significant functional limitations; and

(4) be in need of service coordination to attain or
maintain living in an integrated community setting.

(b) The person must be a vulnerable adult in need of adult
protection as defined in section 626.5572, or is an adult with
mental retardation as defined in section 252A.02, subdivision 2,
or a related condition as defined in section 252.27, subdivision
1a, and is not receiving home and community-based waiver
services new text begin , or is an adult who lacks a permanent residence and who
has been without a permanent residence for at least one year or
on at least four occasions in the last three years new text end .

Sec. 13.

Minnesota Statutes 2004, section 256B.093,
subdivision 1, is amended to read:

Subdivision 1.

State traumatic brain injury program.

The
commissioner of human services shall:

(1) maintain a statewide traumatic brain injury program;

(2) supervise and coordinate services and policies for
persons with traumatic brain injuries;

(3) contract with qualified agencies or employ staff to
provide statewide administrative case management and
consultation;

(4) maintain an advisory committee to provide
recommendations in reports to the commissioner regarding program
and service needs of persons with traumatic brain injuries;

(5) investigate the need for the development of rules or
statutes for the traumatic brain injury home and community-based
services waiver;

(6) investigate present and potential models of service
coordination which can be delivered at the local level; and

(7) the advisory committee required by clause (4) must
consist of no fewer than ten members and no more than 30
members. The commissioner shall appoint all advisory committee
members to one- or two-year terms and appoint one member as
chair. Notwithstanding section 15.059, subdivision 5, the
advisory committee does not terminate until June 30, deleted text begin 2005 deleted text end new text begin 2008 new text end .

Sec. 14.

Minnesota Statutes 2004, section 256D.06, is
amended by adding a subdivision to read:

new text begin Subd. 1d. new text end

new text begin Standard of assistance. new text end

new text begin For a general
assistance applicant who has resided in the state for less than
90 days and who lives independently in the community, the
standard of assistance shall be 60 percent of the full
standard. The full standard of assistance shall be available
beginning the first day of either the month that the 90 days'
residency is completed if the 90th day occurs on or before the
15th of the month or the following month if the 90th day occurs
on the 16th of the month or after. The 30-day residence period
in section 256D.02, subdivision 12a, shall count toward the
90-day payment standard.
new text end

Sec. 15.

Minnesota Statutes 2004, section 256D.06,
subdivision 5, is amended to read:

Subd. 5.

Eligibility; requirements.

new text begin (a) new text end Any applicant,
otherwise eligible for general assistance and possibly eligible
for maintenance benefits from any other source shall deleted text begin (a) deleted text end new text begin (1)
new text end make application for those benefits within 30 days of the
general assistance application; and deleted text begin (b) deleted text end new text begin (2) new text end execute an interim
assistance deleted text begin authorization deleted text end agreement on a form as directed by the
commissioner.

new text begin (b) new text end The commissioner shall review a denial of an
application for other maintenance benefits and may require a
recipient of general assistance to file an appeal of the denial
if appropriate. If found eligible for benefits from other
sources, and a payment received from another source relates to
the period during which general assistance was also being
received, the recipient shall be required to reimburse the
county agency for the interim assistance paid. Reimbursement
shall not exceed the amount of general assistance paid during
the time period to which the other maintenance benefits apply
and shall not exceed the state standard applicable to that time
period.

new text begin (c) new text end The commissioner deleted text begin shall adopt rules authorizing county
agencies or other client representatives to retain from the
amount recovered under an interim assistance agreement 25
percent plus actual reasonable fees, costs, and disbursements of
appeals and litigation, of providing special assistance to the
recipient in processing the recipient's claim for maintenance
benefits from another source. The deleted text end new text begin may contract with the county
agencies, qualified agencies, organizations, or persons to
provide advocacy and support services to process claims for
federal disability benefits for applicants or recipients of
services or benefits supervised by the commissioner using new text end money
retained under this section deleted text begin shall be from the state share of the
recovery. The commissioner or the county agency may contract
with qualified persons to provide the special assistance deleted text end .

new text begin (d) new text end The deleted text begin rules adopted by the deleted text end commissioner deleted text begin shall include the
deleted text end new text begin may provide new text end methods by which county agencies shall identify,
refer, and assist recipients who may be eligible for benefits
under federal programs for the disabled. deleted text begin This subdivision does
not require repayment of per diem payments made to shelters for
battered women pursuant to section 256D.05, subdivision 3.
deleted text end

new text begin (e) The total amount of interim assistance recoveries
retained under this section for advocacy, support, and claim
processing services shall not exceed 35 percent of the interim
assistance recoveries in the prior fiscal year.
new text end

Sec. 16.

Minnesota Statutes 2004, section 256D.06,
subdivision 7, is amended to read:

Subd. 7.

Ssi conversions and back claims.

(a) [SSI
CONVERSIONS.] The commissioner of human services shall contract
with agencies or organizations capable of ensuring that clients
who are presently receiving assistance under sections 256D.01 to
256D.21, and who may be eligible for benefits under the federal
Supplemental Security Income program, apply and, when eligible,
are converted to the federal income assistance program and made
eligible for health care benefits under the medical assistance
program. The commissioner shall ensure that money owing to the
state under interim assistance agreements is collected.

(b) [BACK CLAIMS FOR FEDERAL HEALTH CARE BENEFITS.] The
commissioner shall also directly or through contract implement
procedures for collecting federal Medicare and medical
assistance funds for which clients converted to SSI are
retroactively eligible.

(c) [ADDITIONAL REQUIREMENTS.] The commissioner shall
deleted text begin begin contracting deleted text end new text begin contract new text end with agencies to ensure
implementation of this section deleted text begin within 14 days after April 29,
1992 deleted text end . County contracts with providers for residential services
shall include the requirement that providers screen residents
who may be eligible for federal benefits and provide that
information to the local agency. The commissioner shall modify
the MAXIS computer system to provide information on clients who
have been on general assistance for two years or longer. The
list of clients shall be provided to local services for
screening under this section.

deleted text begin (d) [REPORT.] The commissioner shall report to the
legislature by January 15, 1993, on the implementation of this
section. The report shall contain information on the following:
deleted text end

deleted text begin (1) the number of clients converted from general assistance
to SSI, by county;
deleted text end

deleted text begin (2) information on the organizations involved;
deleted text end

deleted text begin (3) the amount of money collected through interim
assistance agreements;
deleted text end

deleted text begin (4) the amount of money collected in federal Medicare or
Medicaid funds;
deleted text end

deleted text begin (5) problems encountered in processing conversions and back
claims; and
deleted text end

deleted text begin (6) recommended changes to enhance recoveries and maximize
the receipt of federal money in the most efficient way possible.
deleted text end

Sec. 17.

Minnesota Statutes 2004, section 256I.05,
subdivision 1e, is amended to read:

Subd. 1e.

Supplementary rate for certain facilities.

Notwithstanding the provisions of subdivisions 1a and 1c,
beginning July 1, deleted text begin 2001 deleted text end new text begin 2005 new text end , a county agency shall negotiate a
supplementary rate in addition to the rate specified in
subdivision 1, deleted text begin equal to 46 percent of the amount specified in
subdivision 1a deleted text end new text begin not to exceed $700 per month new text end , including any
legislatively authorized inflationary adjustments, for a group
residential housing provider that:

(1) is located in Hennepin County and has had a group
residential housing contract with the county since June 1996;

(2) operates in three separate locations a deleted text begin 71-bed deleted text end new text begin 75-bed
new text end facility, new text begin a 50-bed facility, new text end and deleted text begin two 40-bed facilities deleted text end new text begin a 26-bed
facility new text end ; and

(3) serves a chemically dependent clientele, providing 24
hours per day supervision and limiting a resident's maximum
length of stay to 13 months out of a consecutive 24-month period.

Sec. 18.

Minnesota Statutes 2004, section 256J.12,
subdivision 1, is amended to read:

Subdivision 1.

Simple residency.

To be eligible for MFIP
new text begin or DWP new text end , an assistance unit must have established residency in
this state which means the assistance unit is present in the
state and intends to remain here. A person who lives in this
state and who entered this state with a job commitment or to
seek employment in this state, whether or not that person is
currently employed, meets the criteria in this subdivision.

Sec. 19.

Minnesota Statutes 2004, section 256J.12, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Residency requirement for dwp applicants.
new text end

new text begin Assistance to an eligible DWP family unit in which all members
have resided in this state for fewer than 90 consecutive days
shall be paid at the standard specified in section 256J.95,
subdivision 21. The 30-day residence period shall count toward
the 90-day DWP residence requirement.
new text end

Sec. 20.

Minnesota Statutes 2004, section 256J.37,
subdivision 3a, is amended to read:

Subd. 3a.

Rental subsidies; unearned income.

(a)
deleted text begin Effective July 1, 2003, deleted text end The county agency shall count deleted text begin $50 deleted text end new text begin $200
new text end of the value of public and assisted rental subsidies provided
through the Department of Housing and Urban Development (HUD) as
unearned income to the cash portion of the MFIP grant. The full
amount of the subsidy must be counted as unearned income when
the subsidy is less than deleted text begin $50 deleted text end new text begin $200 new text end . The income from this subsidy
shall be budgeted according to section 256J.34.

(b) The provisions of this subdivision shall not apply to
an MFIP assistance unit which includes a participant who is:

(1) age 60 or older;

(2) a caregiver who is suffering from an illness, injury,
or incapacity that has been certified by a qualified
professional when the illness, injury, or incapacity is expected
to continue for more than 30 days and prevents the person from
obtaining or retaining employment; or

(3) a caregiver whose presence in the home is required due
to the illness or incapacity of another member in the assistance
unit, a relative in the household, or a foster child in the
household when the illness or incapacity and the need for the
participant's presence in the home has been certified by a
qualified professional and is expected to continue for more than
30 days.

(c) The provisions of this subdivision shall not apply to
an MFIP assistance unit where the deleted text begin parental deleted text end caregiver is an SSI
recipient.

(d) Prior to implementing this provision, the commissioner
must identify the MFIP participants subject to this provision
and provide written notice to these participants at least 30
days before the first grant reduction. The notice must inform
the participant of the basis for the potential grant reduction,
the exceptions to the provision, if any, and inform the
participant of the steps necessary to claim an exception. A
person who is found not to meet one of the exceptions to the
provision must be notified and informed of the right to a fair
hearing under section 256J.40. The notice must also inform the
participant that the participant may be eligible for a rent
reduction resulting from a reduction in the MFIP grant and
encourage the participant to contact the local housing authority.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the first day
of the second month after the date of approval by the United
States Department of Agriculture.
new text end

Sec. 21.

Minnesota Statutes 2004, section 256J.515, is
amended to read:

256J.515 OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.

During the first meeting with participants, job counselors
must ensure that an overview of employment and training services
is provided that:

(1) stresses the necessity and opportunity of immediate
employment;

(2) outlines the job search resources offered;

(3) outlines education or training opportunities available;

(4) describes the range of work activities, including
activities under section 256J.49, subdivision 13, clause (18),
that are allowable under MFIP to meet the individual needs of
participants;

(5) explains the requirements to comply with an employment
plan;

(6) explains the consequences for failing to comply;

(7) explains the services that are available to support job
search and work and education; deleted text begin and
deleted text end

(8) provides referral information about shelters and
programs for victims of family violence and the time limit
exemption for family violence victims new text begin ; and
new text end

new text begin (9) explains the probationary employment periods new
employees may serve after being hired and any assistance with
job retention services that may be available new text end .

Failure to attend the overview of employment and training
services without good cause results in the imposition of a
sanction under section 256J.46.

An applicant who requests and qualifies for a family
violence waiver is exempt from attending a group overview.
Information usually presented in an overview must be covered
during the development of an employment plan under section
256J.521, subdivision 3.

Sec. 22.

Minnesota Statutes 2004, section 256J.751,
subdivision 2, is amended to read:

Subd. 2.

Quarterly comparison report.

The commissioner
shall report quarterly to all counties on each county's
performance on the following measures:

(1) percent of MFIP caseload working in paid employment;

(2) percent of MFIP caseload receiving only the food
portion of assistance;

(3) number of MFIP cases that have left assistance;

(4) federal participation requirements as specified in
Title 1 of Public Law 104-193;

(5) median placement wage rate;

(6) caseload by months of TANF assistance;

(7) percent of MFIP and diversionary work program (DWP)
cases off cash assistance or working 30 or more hours per week
at one-year, two-year, and three-year follow-up points from a
baseline quarter. This measure is called the self-support
index. Twice annually, the commissioner shall report an
expected range of performance for each county, county grouping,
and tribe on the self-support index. The expected range shall
be derived by a statistical methodology developed by the
commissioner in consultation with the counties and tribes. new text begin For
purposes of measuring the self-support index, participants under
section 256J.425, subdivisions 2 and 3, are excluded. new text end The
statistical methodology shall control differences across
counties in economic conditions and demographics of the MFIP and
DWP case load; and

(8) the MFIP work participation rate, defined as the
participation requirements specified in title 1 of Public Law
104-193 applied to all MFIP cases except child only cases and
cases exempt under section 256J.56. new text begin For purposes of measuring
the work participation rate, participants under sections
256J.425, subdivisions 2 and 3; and 256J.561, subdivision 2,
paragraph (d), clauses (2) and (3), and subdivision 3, are
excluded.
new text end

Sec. 23.

Minnesota Statutes 2004, section 256J.95, is
amended by adding a subdivision to read:

new text begin Subd. 21. new text end

new text begin Interstate payment standards. new text end

new text begin (a) Effective
July 1, 2005, the amount of assistance paid to an eligible DWP
family unit in which all members have resided in this state for
fewer than 90 consecutive days shall be calculated according to
paragraph (b).
new text end

new text begin (b) Payment must be calculated by applying DWP budgeting
policies, and the unit's net income must be deducted from the
payment standard in the state of immediate prior residence or
Minnesota, whichever is less. Payments shall be vendor paid
according to subdivision 1, paragraph (d).
new text end

new text begin (c) The lesser payment must continue until the DWP family
unit meets the 90-day residency requirement. A family unit that
has not resided in Minnesota for 90 days is not exempt from the
payment provisions solely because a child is born in Minnesota
to a member of the family unit.
new text end

new text begin (d) Any eligible noncitizen who comes directly to Minnesota
from another country, and whose United States Citizenship and
Immigration Services (USCIS) settlement destination is
Minnesota, will receive the amount calculated using DWP policy
and standards. If the USCIS settlement destination is another
state, apply the lesser of the payment standard for that size
family in the state of immediate prior residence or the
standards under DWP.
new text end

new text begin (e) The assistance unit shall be eligible for the full
amount of assistance based on DWP standards beginning either the
month during which the 90-day residency requirement is met, if
the 90th day occurs on or before the 15th of the month, or the
following month if the 90th day occurs on the 16th of the month
or after.
new text end

new text begin (f) This policy applies whether or not the family unit
received similar benefits while residing in the state of
immediate prior residence.
new text end

new text begin (g) For the purposes of this section, "state of immediate
prior residence" means the state in which the applicant declares
the applicant spent the most time in the 30 days prior to moving
to Minnesota.
new text end

new text begin (h) Applicants must provide verification of their state of
immediate prior residence, in the form of tax statements, a
driver's license, automobile registration, rent receipts, or
other forms of verification approved by the commissioner.
new text end

Sec. 24.

Minnesota Statutes 2004, section 256J.95, is
amended by adding a subdivision to read:

new text begin Subd. 22. new text end

new text begin Temporary absence from minnesota. new text end

new text begin For an
assistance unit that has met the 30-day residency requirements
in section 256J.12, subdivisions 1 to 4, the 90-day period in
subdivision 21 is not affected by a subsequent absence from
Minnesota for fewer than 30 consecutive days, provided the
family unit maintains a residence in Minnesota.
new text end

Sec. 25.

Minnesota Statutes 2004, section 256J.95, is
amended by adding a subdivision to read:

new text begin Subd. 23. new text end

new text begin Ineligible mandatory unit members. new text end

new text begin The 90-day
residency requirement in subdivision 21 does not apply if the
family unit includes an ineligible mandatory family unit member
who has resided in Minnesota for 90 consecutive days immediately
before the unit's date of application.
new text end

Sec. 26.

new text begin [256K.26] LONG-TERM HOMELESS SUPPORTIVE
SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment and purpose. new text end

new text begin The
commissioner shall establish the long-term homeless supportive
services fund to provide integrated services needed to stabilize
individuals, families, and youth living in supportive housing
developed to further the goals set forth in Laws 2003, chapter
128, article 15, section 9.
new text end

new text begin Subd. 2. new text end

new text begin Implementation. new text end

new text begin The commissioner, in
consultation with the commissioners of the Department of
Corrections and the Minnesota Housing Finance Agency, counties,
providers and funders of supportive housing and services, shall
develop application requirements and make funds available
according to this section, with the goal of providing maximum
flexibility in program design.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the
following terms have the meanings given:
new text end

new text begin (1) "long-term homelessness" means lacking a permanent
place to live continuously for one year or more or at least four
times in the past three years; and
new text end

new text begin (2) "household" means an individual, family, or
unaccompanied minor experiencing long-term homelessness.
new text end

new text begin Subd. 4. new text end

new text begin County eligibility. new text end

new text begin Counties are eligible for
funding under this section. Priority will be given to proposals
submitted on behalf of multicounty partnerships.
new text end

new text begin Subd. 5. new text end

new text begin Content of proposals. new text end

new text begin Proposals will be
evaluated on the extent to which they:
new text end

new text begin (1) include partnerships with providers of services or
other partners;
new text end

new text begin (2) develop strategies to enhance housing stability for
people experiencing long-term homelessness by integrating
services and establishing consistent services and procedures
across jurisdictions as appropriate;
new text end

new text begin (3) evidence a commitment to working with the commissioners
of human services, corrections, and the Housing Finance Agency
to identify appropriate households to be served under this
section and serve households as defined in subdivision 3. The
commissioner may also set criteria for serving people at
significant risk of experiencing long-term homelessness, with a
priority on serving families with minor children;
new text end

new text begin (4) ensure that projects make maximum use of mainstream
resources, including employment, social, and health services,
and leverage additional public and private resources in order to
serve the maximum number of households;
new text end

new text begin (5) demonstrate cost-effectiveness by identifying and
prioritizing those services most necessary for housing
stability; and
new text end

new text begin (6) evaluate and report on outcomes of the projects
according to protocols developed by the commissioner of human
services in cooperation with the commissioners of corrections
and the Housing Finance Agency. Evaluation would include
methods for determining the quality of the integrated service
approach, improvement in outcomes, cost savings, or reduction in
service disparities that may result.
new text end

new text begin Subd. 6. new text end

new text begin Outcomes. new text end

new text begin Projects will be selected to further
the following outcomes:
new text end

new text begin (1) reduce the number of Minnesota individuals and families
that experience long-term homelessness;
new text end

new text begin (2) increase the number of housing opportunities with
supportive services;
new text end

new text begin (3) develop integrated, cost-effective service models that
address the multiple barriers to obtaining housing stability
faced by people experiencing long-term homelessness, including
abuse, neglect, chemical dependency, disability, chronic health
problems, or other factors including ethnicity and race that may
result in poor outcomes or service disparities;
new text end

new text begin (4) encourage partnerships among counties, community
agencies, schools, and other providers so that the service
delivery system is seamless for people experiencing long-term
homelessness;
new text end

new text begin (5) increase employability, self-sufficiency, and other
social outcomes for individuals and families experiencing
long-term homelessness; and
new text end

new text begin (6) reduce inappropriate use of emergency health care,
shelter, chemical dependency, foster care, child protection,
corrections, and similar services used by people experiencing
long-term homelessness.
new text end

new text begin Subd. 7. new text end

new text begin Eligible services. new text end

new text begin Services eligible for
funding under this section are all services needed to maintain
households in permanent supportive housing, as determined by the
county or counties administering the project or projects.
new text end

new text begin Subd. 8. new text end

new text begin Families experiencing long-term
homelessness. new text end

new text begin The commissioner, in consultation with the
commissioners of housing finance and corrections, shall assess
whether the definition of long-term homelessness impacts the
ability of families with minor children experiencing
homelessness to obtain services necessary to support housing
stability.
new text end

Sec. 27.

Minnesota Statutes 2004, section 260.835, is
amended to read:

260.835 AMERICAN INDIAN CHILD WELFARE ADVISORY COUNCIL.

new text begin Subdivision 1. new text end

new text begin Creation. new text end

The commissioner shall appoint
an American Indian Advisory Council to help formulate policies
and procedures relating to Indian child welfare services and to
make recommendations regarding approval of grants provided under
section 260.785, subdivisions 1, 2, and 3. The council shall
consist of 17 members appointed by the commissioner and must
include representatives of each of the 11 Minnesota reservations
who are authorized by tribal resolution, one representative from
the Duluth Urban Indian Community, three representatives from
the Minneapolis Urban Indian Community, and two representatives
from the St. Paul Urban Indian Community. Representatives from
the urban Indian communities must be selected through an open
appointments process under section 15.0597. The terms,
compensation, and removal of American Indian Child Welfare
Advisory Council members shall be as provided in section 15.059.

new text begin Subd. 2. new text end

new text begin Expiration. new text end

new text begin Notwithstanding section 15.059,
subdivision 5, the American Indian Child Welfare Advisory
Council expires June 30, 2008.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from June 30, 2003.
new text end

Sec. 28. new text begin STUDY OF ECONOMIC IMPACT OF CHILD SUPPORT
GUIDELINES.
new text end

new text begin Subdivision 1. new text end

new text begin Study. new text end

new text begin The commissioner of human services
shall employ a private provider of policy studies to conduct an
economic analysis of the child support guidelines contained in
this act to evaluate:
new text end

new text begin (1) whether the guidelines fairly represent the cost of
raising children for the respective parental income levels,
excluding medical support, child care, and education costs;
new text end

new text begin (2) whether the standards for medical support and child
care costs fairly apportion those costs between the parents,
after consideration of the respective tax benefits; and
new text end

new text begin (3) whether the guidelines fairly reflect each parent's
ability to provide for basic housing needs.
new text end

new text begin The results of the study shall be completed by no later
than January 30, 2006. The private provider must have
experience in evaluating or establishing child support
guidelines, using the income shares approach, in other states.
new text end

Sec. 29. new text begin RECOMMENDATIONS ON STANDARD STATEWIDE CHILD CARE
LICENSE FEE; REPORT.
new text end

new text begin The commissioner of human services in conjunction with the
Minnesota Association of County Social Service Administrators
and the Minnesota Licensed Family Child Care Association, shall
examine the feasibility of a statewide standard for setting
license fees and background study fees for licensed family child
care providers, and shall make recommendations on the
feasibility of a statewide standard for setting license fees and
background study fees in a report to the chairs of the senate
and house of representatives committees having jurisdiction over
child care issues. The report is due January 15, 2006.
new text end

Sec. 30. new text begin REPEALER.
new text end

new text begin (a) Laws 2003, First Special Session chapter 14, article 9,
section 34, is repealed.
new text end

new text begin (b) Minnesota Statutes 2004, sections 119B.074 and 256D.54,
subdivision 3, are repealed.
new text end

new text begin (c) Minnesota Rules, parts 9500.1254 and 9500.1256, are
repealed.
new text end

ARTICLE 6

JOBS AND ECONOMIC DEVELOPMENT SUPPLEMENTAL APPROPRIATIONS

Section 1. new text begin JOBS AND ECONOMIC DEVELOPMENT SUPPLEMENTAL
APPROPRIATIONS.
new text end

The appropriations in this article are available after
House File No. 1664 is passed by the house of representatives
and are added to the appropriations in article 1.

The shown sums in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another named fund, to
the agencies and for the purposes specified in this article, to
be available for the fiscal years indicated for each purpose.
The figures "2006" and "2007," where used in this article, mean
that the appropriation or appropriations listed under them are
available for the fiscal year ending June 30, 2006, or June 30,
2007, respectively. The term "first year" means the fiscal year
ending June 30, 2006, and the term "second year" means the
fiscal year ending June 30, 2007.

Sec. 2. EMPLOYMENT AND ECONOMIC DEVELOPMENT

Subdivision 1.

Total
Appropriation $ 2,921,000 $ 2,921,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Workforce Partnerships 500,000 500,000

$500,000 the first year and $500,000
the second year are for a grant under
Minnesota Statutes, section 116J.8747,
to Twin Cities RISE! to provide
training to hard-to-train individuals.

Subd. 3.

Workforce Services 2,421,000 2,421,000

(a) $1,600,000 the first year and
$1,600,000 the second year are for
extended employment services for
persons with severe disabilities or
related conditions under Minnesota
Statutes, section 268A.15.

(b) $821,000 the first year and
$821,000 the second year are for grants
for programs that provide employment
support to persons with mental illness
under Minnesota Statutes, sections
268A.13 and 268A.14. Up to $43,000
each year may be used for
administrative and salary expenses.

Sec. 3. HOUSING FINANCE AGENCY 6,500,000

This appropriation is available in the
second year and is for the economic
development and housing challenge
program under Minnesota Statutes,
section 462A.33. This is a onetime
appropriation and is not to be added to
the department's base.

ARTICLE 7

HUMAN SERVICES SUPPLEMENTAL APPROPRIATIONS

Section 1. new text begin HUMAN SERVICES SUPPLEMENTAL APPROPRIATIONS.
new text end

The appropriations in this article are available after
House File No. 1664 is passed by the house of representatives
and are added to the appropriations in article 3.

The shown sums in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another named fund, to
the agencies and for the purposes specified in this article, to
be available for the fiscal years indicated for each purpose.
The figures "2006" and "2007," where used in this article, mean
that the appropriation or appropriations listed under them are
available for the fiscal year ending June 30, 2006, or June 30,
2007, respectively. The term "first year" means the fiscal year
ending June 30, 2006, and the term "second year" means the
fiscal year ending June 30, 2007.

Sec. 2. CHILDREN AND ECONOMIC ASSISTANCE GRANTS

Subdivision 1.

Total
Appropriation $ 1,403,000 $ 1,255,000

Subd. 2.

Child Care Assistance
Provider Reimbursement Rate Grant Program

$1,403,000 the first year and
$1,255,000 the second year are
appropriated from the general fund for
the child care assistance provider
reimbursement rate grant program under
section 3. This is a onetime
appropriation and is not to be added to
the department's base.

Sec. 3. new text begin CHILD CARE ASSISTANCE PROVIDER REIMBURSEMENT RATE
GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose and establishment. new text end

new text begin The
commissioner of human services shall establish a child care
assistance provider reimbursement rate grant program for the
purpose of allowing certain providers to be reimbursed at rates
above the 75th percentile of the market rate as established by
the most current market rate survey under Minnesota Statutes,
section 119B.13, and published by the Department of Human
Services. These providers must be reimbursed at a rate more
closely aligned with the actual cost of care in order to
maintain child care capacity in nonmetropolitan areas of
Minnesota. For purposes of this section, "nonmetropolitan"
means all Minnesota counties with the exceptions of Anoka,
Carver, Dakota, Hennepin, Olmsted, Ramsey, St. Louis, Scott,
Stearns, and Washington.
new text end

new text begin Subd. 2. new text end

new text begin Provider eligibility. new text end

new text begin (a) A nonmetropolitan
child care center providing legal child care services as defined
under Minnesota Statutes, section 245A.03, is eligible for the
grant program established under this section if the center or
facility is limited to reimbursement at or less than $160 per
week for any age category, as published by the Department of
Human Services, for services provided to families receiving
child care assistance under Minnesota Statutes, chapter 119B.
new text end

new text begin (b) A nonmetropolitan licensed family child care home
providing legal child care services as defined under Minnesota
Statutes, section 245A.03, is eligible for the grant program
established under this section if the individual is limited to
reimbursement at or less than $115 per week for any age
category, as published by the Department of Human Services, for
services provided to families receiving child care assistance
under Minnesota Statutes, chapter 119B.
new text end

new text begin Subd. 3. new text end

new text begin Application procedure. new text end

new text begin Child care providers may
apply to the commissioner of human services, or the
commissioner's designee, for the child care assistance provider
reimbursement rate grant program on the forms and according to
the timelines established by the commissioner. The
commissioner, or the commissioner's designee, has 30 calendar
days from the date of receipt of an application to notify the
applicant of the eligibility determination.
new text end

new text begin Subd. 4. new text end

new text begin Provider reimbursement rates. new text end

new text begin Notwithstanding
Minnesota Statutes, section 119B.13, subdivision 1, and Laws
2003, First Special Session chapter 14, article 9, section 34,
and to the extent funds are available, the commissioner of human
services shall reimburse child care providers who the
commissioner or the commissioner's designee has determined
eligible under subdivision 2, for care provided to families
receiving child care assistance under Minnesota Statutes,
chapter 119B, at a rate that is the lesser of (1) the rate
charged to private pay families, or (2) the 100th percentile of
the most current market rate survey. Notwithstanding any law or
rule to the contrary, providers under this section may be
reimbursed on a half-day basis. Grant program reimbursements to
providers under this section may be made retroactive to the day
following final enactment.
new text end

new text begin Subd. 5. new text end

new text begin Sunset date. new text end

new text begin The grant program under this
section sunsets on June 30, 2007.
new text end

ARTICLE 8

REGULATION OF SERVICE CONTRACTS

Section 1.

new text begin [59B.01] SCOPE AND PURPOSE.
new text end

new text begin (a) The purpose of this chapter is to create a legal
framework within which service contracts may be sold in this
state.
new text end

new text begin (b) The following are exempt from this chapter:
new text end

new text begin (1) warranties;
new text end

new text begin (2) maintenance agreements;
new text end

new text begin (3) warranties, service contracts, or maintenance
agreements offered by public utilities or their affiliates;
new text end

new text begin (4) service contracts sold or offered for sale to persons
other than consumers;
new text end

new text begin (5) service contracts on tangible property where the
tangible property for which the service contract is sold has a
purchase price of $250 or less exclusive of sales tax;
new text end

new text begin (6) motor vehicle service contracts as defined in section
65B.29, subdivision 1, paragraph (1); and
new text end

new text begin (7) motor club membership contracts that typically provide
roadside assistance services to motorists stranded for reasons
that include, but are not limited to, mechanical breakdown or
adverse road conditions.
new text end

new text begin (c) The types of agreements referred to in paragraph (b)
are not subject to chapters 60A to 79A, except as otherwise
specifically provided by law.
new text end

Sec. 2.

new text begin [59B.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For the purposes of this chapter,
the terms defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Administrator. new text end

new text begin "Administrator" means the person
who is responsible for the administration of the service
contracts or the service contracts plan or who is responsible
for any filings required by this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the
commissioner of commerce.
new text end

new text begin Subd. 4. new text end

new text begin Consumer. new text end

new text begin "Consumer" means a natural person who
buys, other than for purposes of resale, any tangible personal
property that is distributed in commerce and that is normally
used for personal, family, or household purposes and not for
business or research purposes.
new text end

new text begin Subd. 5. new text end

new text begin Maintenance agreement. new text end

new text begin "Maintenance agreement"
means a contract of limited duration that provides for scheduled
maintenance only.
new text end

new text begin Subd. 6. new text end

new text begin Person. new text end

new text begin "Person" means an individual,
partnership, corporation, incorporated or unincorporated
association, joint stock company, reciprocal, syndicate, or any
similar entity or combination of entities acting in concert.
new text end

new text begin Subd. 7. new text end

new text begin Premium. new text end

new text begin "Premium" means the consideration paid
to an insurer for a reimbursement insurance policy.
new text end

new text begin Subd. 8. new text end

new text begin Provider. new text end

new text begin "Provider" means a person who is
contractually obligated to the service contract holder under the
terms of the service contract.
new text end

new text begin Subd. 9. new text end

new text begin Provider fee. new text end

new text begin "Provider fee" means the
consideration paid for a service contract.
new text end

new text begin Subd. 10. new text end

new text begin Reimbursement insurance policy. new text end

new text begin "Reimbursement
insurance policy" means a policy of insurance issued to a
provider to either provide reimbursement to the provider under
the terms of the insured service contracts issued or sold by the
provider or, in the event of the provider's nonperformance, to
pay on behalf of the provider all covered contractual
obligations incurred by the provider under the terms of the
insured service contracts issued or sold by the provider.
new text end

new text begin Subd. 11. new text end

new text begin Service contract. new text end

new text begin "Service contract" means a
contract or agreement for a separately stated consideration for
a specific duration to perform the repair, replacement, or
maintenance of property or indemnification for repair,
replacement, or maintenance, for the operational or structural
failure due to a defect in materials, workmanship, or normal
wear and tear, with or without additional provisions for
incidental payment of indemnity under limited circumstances.
Service contracts may provide for the repair, replacement, or
maintenance of property for damage resulting from power surges
and accidental damage from handling.
new text end

new text begin Subd. 12. new text end

new text begin Service contract holder or contract
holder. new text end

new text begin "Service contract holder" or "contract holder" means a
person who is the purchaser or holder of a service contract.
new text end

new text begin Subd. 13. new text end

new text begin Warranty. new text end

new text begin "Warranty" means a warranty made
solely by the manufacturer, importer, or seller of property or
services without consideration, that is not negotiated or
separated from the sale of the product, and is incidental to the
sale of the product, that guarantees indemnity for defective
parts, mechanical or electrical breakdown, labor, or other
remedial measures, such as repair or replacement of the property
or repetition of services.
new text end

Sec. 3.

new text begin [59B.03] REQUIREMENTS FOR TRANSACTING BUSINESS.
new text end

new text begin Subdivision 1. new text end

new text begin Appointment of administrator. new text end

new text begin A provider
may, but is not required to, appoint an administrator or other
designee to be responsible for any or all of the administration
of service contracts and compliance with this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Contract copies and receipts. new text end

new text begin Service contracts
must not be issued, sold, or offered for sale in this state
unless the provider has:
new text end

new text begin (1) provided a receipt for, or other written evidence of,
the purchase of the service contract to the contract holder;
new text end

new text begin (2) provided a copy of the service contract to the service
contract holder within a reasonable period of time from the date
of purchase; and
new text end

new text begin (3) complied with this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Registration. new text end

new text begin Each provider of service
contracts sold in this state shall file a registration with the
commissioner on a form prescribed by the commissioner. Each
provider shall pay to the commissioner a fee in the amount of
$750 annually.
new text end

new text begin Subd. 4. new text end

new text begin Financial requirements. new text end

new text begin In order to ensure the
faithful performance of a provider's obligations to its contract
holders, each provider is responsible for complying with the
requirements of one of the following:
new text end

new text begin (1) insure all service contracts under a reimbursement
insurance policy issued by an insurer authorized to transact
insurance in this state, a risk retention group, as that term is
defined in United States Code, title 15, section 3901(A)(4), as
long as that risk retention group is in full compliance with the
federal Liability Risk Retention Act of 1986, United States
Code, title 15, section 3901, et al., or issued pursuant to
sections 60A.195 to 60A.209, and either:
new text end

new text begin (i) the insurer or risk retention group shall, at the time
the policy is filed with the commissioner, and continuously
thereafter, maintain surplus as to policyholders and paid-in
capital of at least $15,000,000, and annually file audited
financial statements with the commissioner; or
new text end

new text begin (ii) the commissioner may authorize an insurer or risk
retention group that has surplus as to policyholders and paid-in
capital of less than $15,000,000 but at least equal to
$10,000,000 to issue the insurance required by this section if
the insurer or risk retention group demonstrates to the
satisfaction of the commissioner that the company maintains a
ratio of direct written premiums, wherever written, to surplus
as to policyholders and paid-in capital of not greater than 3 to
1; or
new text end

new text begin (2)(i) maintain a funded reserve account for obligations
under contracts issued and outstanding in this state. The
reserves must not be less than 40 percent of gross consideration
received, less claims paid, on the sale of the service contract
for all in-force contracts. The reserve account is subject to
examination and review by the commissioner; and
new text end

new text begin (ii) place in trust with the commissioner a financial
security deposit, having a value of not less than five percent
of the gross consideration received, less claims paid, on the
sale of the service contract for all service contracts issued
and in force, but not less than $25,000, consisting of one of
the following:
new text end

new text begin (A) a surety bond issued by an authorized surety;
new text end

new text begin (B) securities of the type eligible for deposit by
authorized insurers in this state;
new text end

new text begin (C) cash;
new text end

new text begin (D) a letter of credit issued by a qualified financial
institution containing an evergreen clause which prevents the
expiration of the letter without due notice from the issuer; or
new text end

new text begin (E) another form of security prescribed by rules of the
commissioner; or
new text end

new text begin (3)(i) maintain, or its parent company maintain, a net
worth or stockholders' equity of $100,000,000; and
new text end

new text begin (ii) upon request, provide the commissioner with a copy of
the provider's or the provider's parent company's most recent
Form 10-K or Form 20-F filed with the Securities and Exchange
Commission (SEC) within the last calendar year, or if the
company does not file with the SEC, a copy of the company's
audited financial statements, which shows a net worth of the
provider or its parent company of at least $100,000,000. If the
provider's parent company's Form 10-K, Form 20-F, or audited
financial statements are filed to meet the provider's financial
stability requirement, then the parent company shall agree to
guarantee the obligations of the provider relating to service
contracts sold by the provider in this state.
new text end

new text begin Subd. 5. new text end

new text begin Right of return. new text end

new text begin Service contracts must require
the provider to permit the service contract holder to return the
service contract within 20 days of the date the service contract
was mailed to the service contract holder or within ten days of
delivery if the service contract is delivered to the service
contract holder at the time of sale or within a longer time
period permitted under the service contract. Upon return of the
service contract to the provider within the applicable time
period, if no claim has been made under the service contract
before its return to the provider, the service contract is void
and the provider shall refund to the service contract holder, or
credit the account of the service contract holder, with the full
purchase price of the service contract. The right to void the
service contract provided in this paragraph is not transferable
and applies only to the original service contract purchaser, and
only if no claim has been made before its return to the
provider. A ten percent penalty per month must be added to a
refund that is not paid or credited within 45 days after return
of the service contract to the provider.
new text end

new text begin Subd. 6. new text end

new text begin Premium taxes. new text end

new text begin (a) Provider fees collected on
service contracts are not subject to premium taxes.
new text end

new text begin (b) Premiums for reimbursement insurance policies are
subject to applicable taxes.
new text end

new text begin Subd. 7. new text end

new text begin Licensing exemption. new text end

new text begin Except for the
registration requirements in subdivision 3, providers and
related service contract sellers, administrators, and other
persons marketing, selling, or offering to sell service
contracts are exempt from any licensing requirements of this
state.
new text end

new text begin Subd. 8. new text end

new text begin Insurance exemption. new text end

new text begin The marketing, sale,
offering for sale, issuance, making, proposing to make, and
administration of service contracts by providers and related
service contract sellers, administrators, and other persons are
exempt from all other provisions of the insurance laws of this
state, except as provided in section 72A.20, subdivision 38.
new text end

Sec. 4.

new text begin [59B.04] REQUIRED DISCLOSURES; REIMBURSEMENT
INSURANCE POLICY.
new text end

new text begin Subdivision 1. new text end

new text begin Right to payment or
reimbursement. new text end

new text begin Reimbursement insurance policies insuring
service contracts issued, sold, or offered for sale in this
state shall state that the insurer that issued the reimbursement
insurance policy shall either reimburse or pay on behalf of the
provider any covered sums the provider is legally obligated to
pay or, in the event of the provider's nonperformance, shall
provide the service which the provider is legally obligated to
perform according to the provider's contractual obligations
under the service contracts issued or sold by the provider.
new text end

new text begin Subd. 2. new text end

new text begin Right to apply to company. new text end

new text begin In the event covered
service is not provided by the service contract provider within
60 days of proof of loss by the service contract holder, the
contract holder is entitled to apply directly to the
reimbursement insurance company.
new text end

Sec. 5.

new text begin [59B.05] REQUIRED DISCLOSURE; SERVICE CONTRACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Readability and general
disclosure. new text end

new text begin Service contracts marketed, sold, offered for sale,
issued, made, proposed to be made, or administered in this state
must be written, printed, or typed in clear, understandable
language that is easy to read and must disclose the requirements
set forth in this section, as applicable.
new text end

new text begin Subd. 2. new text end

new text begin Identities of parties. new text end

new text begin Service contracts must
state the name and address of the provider, and must identify
any administrator if different from the provider, the service
contract seller, and the service contract holder to the extent
that the name of the service contract holder has been furnished
by the service contract holder. The identities of the parties
are not required to be preprinted on the service contract and
may be added to the service contract at the time of sale.
new text end

new text begin Subd. 3. new text end

new text begin Total purchase price and sales terms. new text end

new text begin Service
contracts must state the total purchase price and the terms
under which the service contract is sold. The purchase price is
not required to be preprinted on the service contract and may be
negotiated at the time of sale with the service contract holder.
new text end

new text begin Subd. 4. new text end

new text begin Deductibles. new text end

new text begin Service contracts must state the
existence of any deductible amount, if applicable.
new text end

new text begin Subd. 5. new text end

new text begin Coverages, limitations, and exclusions. new text end

new text begin No
particular causes of loss or property are required to be
covered, but service contracts must specify the merchandise and
services to be provided and, with equal prominence, any
limitations, exceptions, or exclusions including, but not
limited to, any damage or breakdown not covered by the service
contract.
new text end

new text begin Subd. 6. new text end

new text begin Restrictions on transferability. new text end

new text begin Service
contracts must state any restrictions governing the
transferability of the service contract, if applicable.
new text end

new text begin Subd. 7. new text end

new text begin Cancellation terms. new text end

new text begin Service contracts must
state the terms, restrictions, or conditions governing
cancellation of the service contract prior to the termination or
expiration date of the service contract by either the provider
or the service contract holder. The provider of the service
contract shall mail a written notice to the contract holder at
the last known address of the service contract holder contained
in the records of the provider at least 15 days before
cancellation by the provider. Five days' notice is required if
the reason for cancellation is nonpayment of the provider fee, a
material misrepresentation by the service contract holder to the
provider, or a substantial breach of duties by the service
contract holder relating to the covered product or its use. The
notice must state the effective date of the cancellation and the
reason for the cancellation.
new text end

new text begin Subd. 8. new text end

new text begin Duties of contract holder. new text end

new text begin Service contracts
must set forth all of the obligations and duties of the service
contract holder, such as the duty to protect against any further
damage and any requirement to follow the owner's manual.
new text end

new text begin Subd. 9. new text end

new text begin Exclusions; consequential damages and
preexisting conditions. new text end

new text begin Service contracts may exclude coverage
for consequential damages or preexisting conditions. These
exclusions, if applicable, must be stated in the contract.
new text end

Sec. 6.

new text begin [59B.06] ADDITIONAL REQUIRED DISCLOSURE; SERVICE
CONTRACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Insurance disclosure. new text end

new text begin Service contracts
insured under a reimbursement insurance policy pursuant to
section 59B.03, subdivision 4, clause (1), must contain a
statement in substantially the following form: "Obligations of
the provider under this service contract are insured under a
service contract reimbursement insurance policy." The service
contract must also state the name and address of the insurer.
new text end

new text begin Subd. 2. new text end

new text begin Disclosure of no insurance. new text end

new text begin Service contracts
not insured under a reimbursement insurance policy pursuant to
section 59B.03, subdivision 4, clause (1), must contain a
statement in substantially the following form: "Obligations of
the provider under this service contract are backed by the full
faith and credit of the provider."
new text end

Sec. 7.

new text begin [59B.07] PROHIBITED ACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Deceptive names. new text end

new text begin A provider shall not use
in its name the words insurance, casualty, surety, mutual, or
any other words descriptive of the insurance, casualty, or
surety business; or a name deceptively similar to the name or
description of any insurance or surety corporation, or to the
name of any other provider. The word "guaranty" or similar word
may be used by a provider. This section does not apply to a
company that was using any of the prohibited language in its
name before the effective date of this chapter. However, a
company using the prohibited language in its name shall include
in its service contracts a statement in substantially the
following form: "This agreement is not an insurance contract."
new text end

new text begin Subd. 2. new text end

new text begin False or misleading statements. new text end

new text begin A provider or
its representative shall not in its service contracts,
literature, or otherwise make, permit, or cause to be made any
false or misleading statement or omit any material statement
that would be considered misleading if omitted.
new text end

new text begin Subd. 3. new text end

new text begin Required purchase. new text end

new text begin A person, such as a bank,
savings association, lending institution, manufacturer, or
seller of any product shall not require the purchase of a
service contract as a condition of a loan or a condition for the
sale of any property.
new text end

Sec. 8.

new text begin [59B.08] RECORD-KEEPING REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The provider shall keep
accurate accounts, books, and records concerning transactions
regulated under this chapter.
new text end

new text begin The provider's accounts, books, and records include the
following:
new text end

new text begin (1) copies of each type of service contracts sold;
new text end

new text begin (2) the name and address of each service contract holder to
the extent that the name and address have been furnished by the
service contract holder;
new text end

new text begin (3) a list of the locations where service contracts are
marketed, sold, or offered for sale; and
new text end

new text begin (4) written claims files which shall contain sufficient
information for the commissioner to ascertain whether a claim
has been adjusted in conformity with the terms of the service
contract, including at least the dates and description of claims
related to the service contracts.
new text end

new text begin Subd. 2. new text end

new text begin Retention. new text end

new text begin (a) Except as provided in paragraph
(b), the provider shall retain all records required to be
maintained by this section for at least three years after the
specified period of coverage has expired.
new text end

new text begin (b) A provider discontinuing business in this state shall
maintain its records until it furnishes the commissioner
satisfactory proof that it has discharged all obligations to
contract holders in this state.
new text end

new text begin Subd. 3. new text end

new text begin Medium. new text end

new text begin The records required by this chapter
may be, but are not required to be, maintained on a computer
disk or other record-keeping technology. If the records are
maintained in other than hard copy, the records must be capable
of duplication to legible hard copy at the request of the
commissioner.
new text end

Sec. 9.

new text begin [59B.09] TERMINATION OF REIMBURSEMENT INSURANCE
POLICY.
new text end

new text begin An insurer that issued a reimbursement insurance policy may
not terminate the policy unless the insurer mails or delivers
written notice of the termination to the commissioner at least
30 days before the effective date of termination. The
termination of a reimbursement insurance policy does not reduce
the issuer's responsibility for service contracts issued by
providers before the date of the termination.
new text end

Sec. 10.

new text begin [59B.10] OBLIGATION OF REIMBURSEMENT INSURANCE
POLICY INSURERS.
new text end

new text begin Insurers issuing reimbursement insurance to providers are
deemed to have received the premiums for the insurance upon the
payment of provider fees by consumers for service contracts
issued by the insured providers.
new text end

new text begin Nothing in this chapter prevents or limits the right of an
insurer which issued a reimbursement insurance policy to seek
indemnification or subrogation against a provider if the issuer
pays or is obligated to pay the service contract holder sums
that the provider was obligated to pay pursuant to the
provisions of the service contract.
new text end

Sec. 11.

new text begin [59B.11] SEVERABILITY PROVISION.
new text end

new text begin If any provision of this chapter or the application of the
provision to any person or circumstances are held invalid, the
remainder of this chapter and the application of the provision
to person or circumstances other than those as to which it is
held invalid, must not be affected.
new text end

Sec. 12.

Minnesota Statutes 2004, section 72A.20, is
amended by adding a subdivision to read:

new text begin Subd. 38. new text end

new text begin Unfair claims service; service contracts. new text end

new text begin No
person shall, in connection with a service contract regulated
under chapter 59B:
new text end

new text begin (1) attempt to settle claims on the basis of an application
or any other material document which was altered without notice
to, or knowledge or consent of, the service contract holder;
new text end

new text begin (2) make a material misrepresentation to the warranty
holder for the purpose and with the intent of effecting
settlement of the claims, loss, or damage under the contract on
less favorable terms than those provided in, and contemplated
by, the contract; or
new text end

new text begin (3) commit or perform with such frequency as to indicate a
general business practice any of the following practices:
new text end

new text begin (i) failure to properly investigate claims;
new text end

new text begin (ii) misrepresentation of pertinent facts or contract
provisions relating to coverages at issue;
new text end

new text begin (iii) failure to acknowledge and act upon communications
within a reasonable time with respect to claims;
new text end

new text begin (iv) denial of claims without conducting reasonable
investigations based upon available information;
new text end

new text begin (v) failure to affirm or deny coverage of claims upon
written request of the warranty holder within a reasonable time
after proof-of-loss statements have been completed; or
new text end

new text begin (vi) failure to timely provide a reasonable explanation to
the warranty holder of the basis in the contract in relation to
the facts or applicable law for denial of a claim or for the
offer of a compromise settlement.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 12 are effective January 1, 2006, and apply
to service contracts issued on or after that date. A provider
transacting business in this state on or before the date of the
enactment of this chapter, which submits an application for
registration as a provider under Minnesota Statutes, section
59B.03, subdivision 3, within 30 days after the commissioner
makes the application available, may continue to transact
business in this state until final agency action is taken by the
commissioner regarding the registration application and all
rights to administrative and judicial review related to that
final agency action have been exhausted or have expired.
new text end

ARTICLE 9

SUPPLEMENTAL APPROPRIATIONS

Section 1. new text begin SUPPLEMENTAL APPROPRIATIONS.
new text end

The provisions in this article are effective after H.F. No.
2427 is passed by the house of representatives and are added to
the appropriations in article 3.

Sec. 2. new text begin AMENDMENT.
new text end

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

Sec. 3.

Minnesota Statutes 2004, section 256K.35, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount equal to the proceeds
of the deed tax under section 287.21, subdivision 1, paragraph
(b), clause (3), on .000028 of the net consideration is
appropriated from the general fund to the commissioner of human
services for at risk youth out-of-wedlock pregnancy prevention
grants under this section. A minimum of 35 percent of these
grant funds must be awarded to eligible applicants located
outside of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington Counties.
new text end