Minnesota Legislature
HF 2486
2nd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Current Version - 2nd Engrossment
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 economic development, housing, and certain agencies of 1.4 state government; establishing and modifying programs; 1.5 transferring certain duties and funds; establishing an 1.6 account; consolidating housing programs; regulating 1.7 activities and practices; modifying fees; making 1.8 conforming changes; requiring reports; revising 1.9 certain provisions involving state regulation of 1.10 private health coverage; transferring certain 1.11 regulatory control; establishing requirements for 1.12 managed care plans; codifying reorganization order No. 1.13 181; transferring the remaining duties of the 1.14 commissioner of public service to the commissioner of 1.15 commerce; instructing the revisor to change certain 1.16 terms; modifying provisions of the Minnesota 1.17 Electrical Act; providing for power limited technician 1.18 licensing; amending Minnesota Statutes 2000, sections 1.19 3C.12, subdivision 2; 13.679; 15.01; 15.06, 1.20 subdivision 1; 15A.0815, subdivision 2; 16B.32, 1.21 subdivision 2; 16B.335, subdivision 4; 16B.56, 1.22 subdivision 1; 16B.76, subdivision 1; 17.86, 1.23 subdivision 3; 18.024, subdivision 1; 43A.08, 1.24 subdivision 1a; 45.012; 62A.021, subdivision 1; 1.25 62A.041, subdivisions 1, 2; 62A.042; 62A.043, 1.26 subdivision 1; 62A.105; 62A.14; 62A.149, subdivision 1.27 1; 62A.15, subdivision 1; 62A.152, subdivision 1; 1.28 62A.153; 62A.20; 62A.21; 62A.615; 62A.616; 62A.65, 1.29 subdivision 5; 62D.02, subdivisions 3, 8; 62D.12, 1.30 subdivisions 1, 1a; 62D.15, subdivision 1; 62D.24; 1.31 62E.05, subdivision 2; 62E.11, subdivision 13; 62E.14, 1.32 subdivision 6; 62E.16; 62J.041, subdivision 4; 1.33 62J.701; 62J.74, subdivisions 1, 2; 62J.75; 62L.02, 1.34 subdivision 8; 62L.05, subdivision 12; 62L.08, 1.35 subdivisions 10, 11; 62L.09, subdivision 3; 62L.10, 1.36 subdivision 4; 62L.11, subdivision 2; 62L.12, 1.37 subdivision 2; 62M.11; 62M.16; 62N.02, subdivision 4; 1.38 62N.26; 62Q.01, subdivision 2; 62Q.03, subdivision 5a; 1.39 62Q.07; 62Q.106; 62Q.22, subdivisions 2, 6, 7; 62Q.32; 1.40 62Q.33, subdivision 2; 62Q.49, subdivision 2; 62Q.51, 1.41 subdivision 3; 62Q.525, subdivision 3; 62Q.68, 1.42 subdivision 1; 62Q.69, subdivisions 2, 3; 62Q.71; 1.43 62Q.72; 62Q.73, subdivisions 3, 4, 5, 6; 62R.04, 1.44 subdivision 5; 62R.06, subdivision 1; 62T.01, 1.45 subdivision 4; 103F.325, subdivisions 2, 3; 115A.15, 1.46 subdivision 5; 116J.8731, subdivision 1; 116L.03, 2.1 subdivisions 2, 3, 5; 116O.06, subdivision 2; 123B.65, 2.2 subdivisions 1, 3, 5; 138.664, by adding a 2.3 subdivision; 161.45, subdivision 1; 168.61, 2.4 subdivision 1; 169.073; 174.03, subdivision 7; 181.30; 2.5 184.29; 184.30, subdivision 1; 184.38, subdivisions 6, 2.6 8, 9, 10, 11, 17, 18, 20; 184.41; 216A.01; 216A.035; 2.7 216A.036; 216A.05, subdivision 1; 216A.07, subdivision 2.8 1; 216A.08; 216A.085, subdivision 3; 216B.02, 2.9 subdivisions 1, 7, 8; 216B.16, subdivisions 1, 2, 6b, 2.10 15; 216B.162, subdivisions 7, 11; 216B.1675, 2.11 subdivision 9; 216B.241, subdivisions 1a, 1b, 2b; 2.12 216C.01, subdivisions 1, 2, 3; 216C.051, subdivision 2.13 6; 216C.06, by adding a subdivision; 216C.37, 2.14 subdivision 1; 216C.40, subdivision 4; 216C.41; 2.15 237.02; 237.075, subdivisions 2, 9; 237.082; 237.21; 2.16 237.30; 237.462, subdivision 6; 237.51, subdivisions 2.17 1, 5, 5a; 237.52, subdivisions 2, 4, 5; 237.54, 2.18 subdivision 2; 237.55; 237.59, subdivision 2; 237.768; 2.19 239.01; 239.10; 256B.692, subdivisions 2, 7; 257.34, 2.20 subdivision 1; 268.022, subdivisions 1, 2; 325E.11; 2.21 325E.115, subdivision 2; 326.01, subdivisions 5, 6g, 2.22 by adding subdivisions; 326.241, subdivision 1; 2.23 326.242, subdivisions 1, 2, 3, 5, 6, 6a, 6b, 6c, 7, 8, 2.24 10, 12, by adding a subdivision; 326.2421, 2.25 subdivisions 2, 9; 326.243; 326.244, subdivisions 1a, 2.26 2, 5, 6; 462A.01; 462A.03, subdivisions 1, 6, 10, by 2.27 adding a subdivision; 462A.04, subdivision 6; 462A.05, 2.28 subdivisions 14, 14a, 16, 22, 26; 462A.06, 2.29 subdivisions 1, 4; 462A.07, subdivisions 10, 12; 2.30 462A.073, subdivision 1; 462A.15; 462A.17, subdivision 2.31 3; 462A.20, subdivision 3; 462A.201, subdivisions 2, 2.32 6; 462A.204, subdivision 3; 462A.205, subdivisions 4, 2.33 4a; 462A.209; 462A.2091, subdivision 3; 462A.2093, 2.34 subdivision 1; 462A.2097; 462A.21, subdivisions 5, 10, 2.35 by adding subdivisions; 462A.222, subdivision 1a; 2.36 462A.24; 462A.33, subdivisions 1, 2, 3, 5, by adding a 2.37 subdivision; 484.50; Laws 1993, chapter 301, section 2.38 1, subdivision 4, as amended; Laws 1995, chapter 248, 2.39 article 12, section 2, as amended; article 13, section 2.40 2, subdivision 2, as amended; Laws 2000, chapter 488, 2.41 article 8, section 2, subdivision 6; proposing coding 2.42 for new law in Minnesota Statutes, chapters 116L; 2.43 122A; 462A; proposing coding for new law as Minnesota 2.44 Statutes, chapter 62U; repealing Minnesota Statutes 2.45 2000, sections 62A.049; 62A.21, subdivision 3; 62C.14, 2.46 subdivisions 5, 5a, 5b, 14; 62C.142; 62D.09, 2.47 subdivision 3; 62D.101; 62D.105; 62D.12, subdivision 2.48 19; 62D.123, subdivisions 2, 3, 4; 62D.124; 62Q.095, 2.49 subdivisions 1, 2, 3, 4, 6; 62Q.45; 138A.01; 138A.02; 2.50 138A.03; 138A.04; 138A.05; 138A.06; 184.22, 2.51 subdivisions 2, 3, 4, 5; 184.37, subdivision 2; 2.52 216A.06; 237.69, subdivision 3; 268.96; 268.975; 2.53 268.976; 268.9771; 268.978; 268.9781; 268.9782; 2.54 268.9783; 268.979; 268.98; 326.01, subdivision 6d; 2.55 326.2421, subdivisions 3, 4, 6, 8; 462A.201, 2.56 subdivision 4; 462A.207; 462A.209, subdivision 4; 2.57 462A.21, subdivision 17; 462A.221, subdivision 4; 2.58 462A.30, subdivision 2; 462A.33, subdivisions 4, 6, 7; 2.59 Minnesota Rules, parts 3800.3500, subpart 12; 2.60 4685.0801, subpart 7; 4685.1010; 4685.1300; 4685.1900; 2.61 4685.2000; 4685.2200, subpart 3; 4685.1105; 4685.1110; 2.62 4685.1115; 4685.1120; 4685.1125; 4685.1130. 2.63 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.64 ARTICLE 1 2.65 APPROPRIATIONS 2.66 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 3.1 The sums shown in the columns marked "APPROPRIATIONS" are 3.2 appropriated from the general fund, or another named fund, to 3.3 the agencies and for the purposes specified in this act, to be 3.4 available for the fiscal years indicated for each purpose. The 3.5 figures "2002" and "2003," where used in this act, mean that the 3.6 appropriation or appropriations listed under them are available 3.7 for the year ending June 30, 2002, or June 30, 2003, 3.8 respectively. The term "first year" means the fiscal year 3.9 ending June 30, 2002, and "second year" means the fiscal year 3.10 ending June 30, 2003. 3.11 SUMMARY BY FUND 3.12 2001 2002 2003 TOTAL 3.13 General $1,538,000 $187,082,502 $187,801,000 $376,421,502 3.14 Assigned Risk 3.15 Plan 73,000,000 -0- -0- 73,000,000 3.16 Petroleum Tank 3.17 Cleanup 1,055,000 1,065,000 2,120,000 3.18 Environmental Fund 700,000 700,000 1,400,000 3.19 TANF Block Grant 15,050,000 14,450,000 29,500,000 3.20 Workers' 3.21 Compensation 22,993,000 23,309,000 46,302,000 3.22 Special Revenue 3.23 Fund 14,267,000 15,482,000 29,749,000 3.24 TOTAL $74,538,000 $241,147,502 $242,807,000 $558,492,502 3.25 APPROPRIATIONS 3.26 Available for the Year 3.27 Ending June 30 3.28 2002 2003 3.29 Sec. 2. TRADE AND ECONOMIC DEVELOPMENT 3.30 Subdivision 1. Total 3.31 Appropriation 41,237,502 41,809,000 3.32 Summary by Fund 3.33 General 28,762,502 28,227,000 3.34 TANF Block Grant 1,600,000 1,000,000 3.35 Environmental Fund 700,000 700,000 3.36 Special 3.37 Revenue Fund 10,175,000 11,882,000 3.38 The amounts that may be spent from this 3.39 appropriation for each program are 3.40 specified in the following subdivisions. 3.41 Subd. 2. Business and Community 3.42 Development 12,497,502 11,513,000 4.1 Summary by Fund 4.2 General 11,797,502 10,813,000 4.3 Environmental Fund 700,000 700,000 4.4 (a) $4,017,000 the first year and 4.5 $4,017,000 the second year are for 4.6 Minnesota investment fund grants. Of 4.7 this amount, $150,000 the first year is 4.8 for a one-time grant to the city of 4.9 Ironton to be applied to planning for 4.10 the Cuyuna Range Technology Center, 4.11 which is available until June 30, 2003. 4.12 (b) $150,000 the first year and 4.13 $150,000 the second year are for 4.14 one-time grants to the rural policy and 4.15 development center at Minnesota State 4.16 University, Mankato. The grant shall 4.17 be used for research and policy 4.18 analysis on emerging economic and 4.19 social issues in rural Minnesota, to 4.20 serve as a policy resource center for 4.21 rural Minnesota communities, to 4.22 encourage collaboration across higher 4.23 education institutions to provide 4.24 interdisciplinary team approaches to 4.25 research and problem solving in rural 4.26 communities, and to administer overall 4.27 operations of the center. 4.28 The grant shall be provided upon the 4.29 condition that each state-appropriated 4.30 dollar be matched with a 4.31 non-state-appropriated dollar. 4.32 Acceptable matching funds are 4.33 non-state-appropriated contributions 4.34 that the center has received after July 4.35 1, 2000, and have not been used to 4.36 match previous state grants. 4.37 (c) $155,000 the first year and 4.38 $155,000 the second year are for 4.39 one-time grants to the metropolitan 4.40 economic development association. 4.41 (d) $220,000 the first year and 4.42 $220,000 the second year are for 4.43 one-time grants to nonprofit 4.44 organizations to provide technical 4.45 assistance to individuals to support 4.46 the start-up and growth of 4.47 self-employment and microenterprise 4.48 businesses. Eligible businesses are 4.49 microenterprises employing fewer than 4.50 five people plus the owner and 4.51 requiring under $35,000 or no capital 4.52 to start or expand the business. 4.53 Nonprofit organizations must apply for 4.54 grants under this subdivision following 4.55 procedures established by the 4.56 commissioner. To be eligible for a 4.57 grant, an organization must demonstrate 4.58 to the commissioner that it has the 4.59 appropriate expertise. The 4.60 commissioner shall give preference for 4.61 grants to organizations that target 4.62 nontraditional entrepreneurs such as 5.1 women, members of a minority, 5.2 low-income individuals, or persons 5.3 seeking work who are currently on or 5.4 recently removed from welfare 5.5 assistance or who have recently been 5.6 laid off from their previous employment. 5.7 An application must include: 5.8 (1) the local need for microenterprise 5.9 support; 5.10 (2) proposed criteria for business 5.11 eligibility; 5.12 (3) a proposal for identifying and 5.13 serving eligible businesses; 5.14 (4) a description of technical 5.15 assistance to be provided to eligible 5.16 businesses; 5.17 (5) a proposal to coordinate technical 5.18 assistance with financial assistance; 5.19 (6) demonstration of an ability to 5.20 collaborate with other agencies 5.21 including educational and financial 5.22 institutions; and 5.23 (7) project goals identifying the 5.24 number of eligible businesses to be 5.25 assisted with the state funds awarded 5.26 under the grant. 5.27 Grant recipients must report to the 5.28 commissioner by February 1 in each of 5.29 the two years after the year of receipt 5.30 of the grant. The report must detail 5.31 the number of customers served; the 5.32 number of businesses started, 5.33 stabilized, or expanded; the number of 5.34 jobs created and retained; and business 5.35 success rates. The commissioner shall 5.36 report to the legislature on the 5.37 microenterprise entrepreneurial 5.38 assistance. The report shall contain 5.39 an evaluation of the results. 5.40 (e) $35,000 the first year is for a 5.41 one-time grant for a pilot project 5.42 incubated by Blue Earth county named 5.43 the Rural Advanced Business 5.44 Facilitation Program. The grant shall 5.45 be provided on the condition that the 5.46 funds be matched on a one-to-one basis 5.47 from nonstate sources. 5.48 (f) $500,000 the first year is for a 5.49 one-time grant to the city of St. Paul 5.50 for the planning, predesign, and design 5.51 of the new Roy Wilkins auditorium and 5.52 exhibit hall. No further state 5.53 appropriation is authorized or given 5.54 special preference by this language. 5.55 (g) $150,000 the first year is for a 5.56 one-time grant to West Newton township 5.57 in Nicollet county to write down 5.58 individual assessments in St. George 5.59 for wastewater treatment improvements. 6.1 (h) $75,000 the first year is for a 6.2 one-time grant to Minnesota rural 6.3 partners. This grant must be used only 6.4 for the Minnesota rural summit and 6.5 shall be provided on the condition that 6.6 funds be matched on a one-to-one basis 6.7 from nongovernmental sources. 6.8 (i) $262,502 the first year is for 6.9 transfer to the commissioner of public 6.10 safety for one-time grants to local 6.11 units of government for the applicant's 6.12 share of federal disaster assistance 6.13 funds under Minnesota Statutes, section 6.14 12.221, and other nonreimbursed costs. 6.15 The commissioner must award grants 6.16 based on the amount of the local share 6.17 in the signed grant agreement. Grants 6.18 are limited to areas that sustained 6.19 damage from the tornado that struck 6.20 Yellow Medicine and Chippewa counties 6.21 on July 25, 2000. 6.22 (j) $50,000 in the first year and 6.23 $50,000 in the second year are 6.24 appropriated for one-time grants to the 6.25 Albert Lea Port Authority to remodel a 6.26 building in the Northaire Industrial 6.27 Park. 6.28 (k) Notwithstanding the provisions of 6.29 Minnesota Statutes, section 116J.565, 6.30 subdivision 1, paragraph (a), clauses 6.31 (1) through (5), priority for a 6.32 redevelopment grant under section 6.33 116J.564 may be given to the 33-acre 6.34 Trillium site that is part of the Trout 6.35 Brook greenway corridor in St. Paul. 6.36 (l) Notwithstanding the limit in 6.37 Minnesota Statutes, section 116J.8731, 6.38 subdivision 5, a grant of up to 6.39 $1,000,000 may be made to a political 6.40 subdivision that is chosen as a site 6.41 for a soybean oilseed processing 6.42 facility constructed by a 6.43 Minnesota-based cooperative. The grant 6.44 may be used for site preparation, 6.45 predevelopment, and other 6.46 infrastructure improvements, including 6.47 public and private utility improvements 6.48 that are necessary for development of 6.49 the oilseed processing facility. The 6.50 grant may be made any time until June 6.51 30, 2003. 6.52 Subd. 3. Minnesota Trade Office 6.53 2,447,000 2,576,000 6.54 Subd. 4. Workforce Development 11,625,000 12,882,000 6.55 Summary by Fund 6.56 Special Revenue 10,025,000 11,882,000 6.57 TANF Block Grant 1,600,000 1,000,000 6.58 (a) $8,500,000 the first year and 6.59 $8,500,000 the second year are from the 6.60 workforce development fund for the job 7.1 skills partnership program. 7.2 (b) $400,000 the first year and 7.3 $400,000 the second year are for 7.4 one-time grants to Lifetrack Resources 7.5 for its immigrant/refugee collaborative 7.6 programs, including those related to 7.7 job-seeking skills and workplace 7.8 orientation, intensive job development, 7.9 functional work English, and on-site 7.10 job coaching. Of this amount, $150,000 7.11 each year is from the workforce 7.12 development fund and $250,000 each year 7.13 is from the state's federal TANF block 7.14 grant under Title I of Public Law 7.15 Number 104-193 to the commissioner of 7.16 human services, to be transferred to 7.17 the commissioner of trade and economic 7.18 development. 7.19 (c) $300,000 the first year and 7.20 $300,000 the second year are from the 7.21 workforce development fund for one-time 7.22 grants to Twin Cities Rise. Twin 7.23 Cities Rise must report to the 7.24 commissioner by February 1 of each 7.25 year. The report must detail the 7.26 number of participants served, the cost 7.27 per participant, the number of 7.28 participants placed, and the number of 7.29 participants who otherwise successfully 7.30 completed the program. 7.31 (d) $600,000 the first year is for the 7.32 job skills partnership board to operate 7.33 the pilot program provided by article 7.34 2, section 30. This is a one-time 7.35 appropriation and is from the state's 7.36 federal TANF block grant under Title I 7.37 of Public Law Number 104-193 to the 7.38 commissioner of human services, to be 7.39 transferred to the commissioner of 7.40 trade and economic development. This 7.41 appropriation is available until June 7.42 30, 2003. 7.43 (e) $1,075,000 the first year and 7.44 $2,932,000 the second year are for 7.45 transfer to the higher education 7.46 services office for the loan repayment 7.47 program provided in article 2, section 7.48 7. Of this amount, up to $75,000 each 7.49 year may be spent on administration. 7.50 The legislature intends that the 7.51 appropriation for this program shall be 7.52 $4,646,000 in fiscal year 2004, 7.53 $2,789,000 in fiscal year 2005, and 7.54 zero dollars each year thereafter, 7.55 subject to the same $75,000 7.56 administrative cost limitation. All 7.57 appropriations for this program are 7.58 from the workforce development fund, 7.59 and any funds that are unused at the 7.60 conclusion of the program are returned 7.61 to the workforce development fund. 7.62 Subd. 5. Office of Tourism 7.63 9,475,000 9,521,000 7.64 To develop maximum private sector 8.1 involvement in tourism, $3,500,000 the 8.2 first year and $3,500,000 the second 8.3 year of the amounts appropriated for 8.4 marketing activities are contingent on 8.5 receipt of an equal contribution from 8.6 nonstate sources that have been 8.7 certified by the commissioner. Up to 8.8 one-half of the match may be given in 8.9 in-kind contributions. 8.10 In order to maximize marketing grant 8.11 benefits, the commissioner must give 8.12 priority for joint venture marketing 8.13 grants to organizations with year-round 8.14 sustained tourism activities. For 8.15 programs and projects submitted, the 8.16 commissioner must give priority to 8.17 those that encompass two or more areas 8.18 or that attract nonresident travelers 8.19 to the state. 8.20 If an appropriation for either year for 8.21 grants is not sufficient, the 8.22 appropriation for the other year is 8.23 available for it. 8.24 The commissioner may use grant dollars 8.25 or the value of in-kind services to 8.26 provide the state contribution for the 8.27 partnership program. 8.28 Any unexpended money from general fund 8.29 appropriations made under this 8.30 subdivision does not cancel but must be 8.31 placed in a special advertising account 8.32 for use by the office of tourism to 8.33 purchase additional media. 8.34 Of this amount, $55,000 the first year 8.35 is for a one-time grant to the 8.36 Mississippi River parkway commission to 8.37 support the increased promotion of 8.38 tourism along the Great River Road. 8.39 Of this amount, $50,000 the first year 8.40 is for one-time grants to local units 8.41 of government, and state or local 8.42 nonprofit entities to plan and promote 8.43 the 2004 Grand Excursion. A local 8.44 nonstate dollar-for-dollar match is 8.45 required. 8.46 Of this amount, $329,000 each year is 8.47 for the Minnesota film board. This 8.48 appropriation is available only upon 8.49 receipt by the board of $1 in matching 8.50 contributions of money or in-kind from 8.51 nonstate sources for every $3 provided 8.52 by this appropriation. No 8.53 appropriation is made for the film 8.54 production jobs fund established in 8.55 Laws 1999, chapter 223, article 1, 8.56 section 2, subdivision 4. 8.57 Of this amount, $61,000 the first year 8.58 is for a one-time grant to Koochiching 8.59 county for concept development and a 8.60 marketing feasibility study related to 8.61 the construction of a North American 8.62 bear center called the Big Bear Country 8.63 Education Center. 9.1 Subd. 6. Information and Analysis 9.2 1,613,000 1,632,000 9.3 Subd. 7. Administrative Support 3,580,000 3,685,000 9.4 Summary by Fund 9.5 General 3,430,000 3,685,000 9.6 Special Revenue Fund 150,000 -0- 9.7 $150,000 the first year is for the 9.8 transition team under article 2, 9.9 section 28. This is a one-time 9.10 appropriation from the workforce 9.11 development fund and is not added to 9.12 the agency's budget base. 9.13 Sec. 3. MINNESOTA TECHNOLOGY, INC. 6,105,000 6,105,000 9.14 On or before July 10, 2001, the 9.15 commissioner of finance shall transfer 9.16 $2,000,000 from the Minnesota 9.17 technology account created in Minnesota 9.18 Statutes, section 116O.12, to the 9.19 general fund. 9.20 Notwithstanding the provisions of 9.21 Minnesota Statutes, section 116O.12, 9.22 the legislature does not approve the 9.23 industry cluster initiative proposed by 9.24 Minnesota Technology, Inc., in the 9.25 governor's 2002-2003 biennial budget. 9.26 Sec. 4. ECONOMIC SECURITY 9.27 Subdivision 1. Total 9.28 Appropriation 38,874,000 38,349,000 9.29 Summary by Fund 9.30 General 34,569,000 34,544,000 9.31 TANF Block Grant 1,000,000 1,000,000 9.32 Special 9.33 Revenue Fund 3,305,000 2,805,000 9.34 Subd. 2. Workforce Services 11,214,000 10,608,000 9.35 Summary by Fund 9.36 General 8,739,000 8,633,000 9.37 TANF Block Grant 250,000 250,000 9.38 Special Revenue 2,225,000 1,725,000 9.39 (a) $750,000 the first year and 9.40 $750,000 the second year are from the 9.41 workforce development fund for one-time 9.42 grants for projects to provide services 9.43 to displaced homemakers. "Displaced 9.44 homemaker" means an individual who was 9.45 a full-time homemaker for a substantial 9.46 number of years, derived the 9.47 substantial share of support from a 9.48 spouse, and no longer receives that 9.49 support due to separation or divorce 9.50 from, or the death or permanent 10.1 disability of, the spouse, or derived 10.2 the substantial share of support from 10.3 public assistance based on the presence 10.4 of dependents in the home and no longer 10.5 receives such support. 10.6 Grants from this appropriation shall be 10.7 based on a competitive grant process. 10.8 Eligible grant recipients include local 10.9 workforce boards and nonprofit job 10.10 training providers, including but not 10.11 limited to current providers of 10.12 services under the existing displaced 10.13 homemaker program. Administrative 10.14 money from the state dislocated worker 10.15 program may be spent to administer this 10.16 program. The commissioner of economic 10.17 security shall report to the 10.18 legislature by February 15, 2003, on 10.19 the outcome of grants under this 10.20 paragraph. 10.21 (b) $111,000 the first year is for 10.22 youth violence prevention programs to 10.23 match the federal juvenile 10.24 accountability incentive block grant. 10.25 This is a one-time appropriation and is 10.26 not added to the agency's budget base. 10.27 (c) No appropriation is made for the 10.28 youth curfew and truancy prevention 10.29 program established in Laws 1999, 10.30 chapter 216, article 1, section 20. 10.31 (d) $500,000 the first year is from the 10.32 workforce development fund for a 10.33 one-time grant to workforce service 10.34 area #6, to be used for employment and 10.35 training services targeted to 10.36 individuals who were affected by the 10.37 tornado that struck Yellow Medicine and 10.38 Chippewa counties on July 25, 2000, or 10.39 were affected by plant closings in the 10.40 same area. 10.41 (e) No appropriation is made for asset 10.42 preservation and facility repair. 10.43 (f) $1,225,000 the first year and 10.44 $1,225,000 the second year are for the 10.45 opportunities industrialization center 10.46 programs. Of this amount, $200,000 10.47 each year is a one-time appropriation 10.48 from the workforce development fund and 10.49 $250,000 each year is a one-time 10.50 appropriation from the state's federal 10.51 TANF block grant under Title I of 10.52 Public Law Number 104-193 to the 10.53 commissioner of human services, to be 10.54 transferred to the commissioner of 10.55 economic security. 10.56 Subd. 3. Rehabilitation Services 22,770,000 22,777,000 10.57 Summary by Fund 10.58 General 20,940,000 20,947,000 10.59 TANF 750,000 750,000 10.60 Special 11.1 Revenue Fund 1,080,000 1,080,000 11.2 $10,724,000 in the first year and 11.3 $10,724,000 in the second year are for 11.4 extended employment services for 11.5 persons with severe disabilities or 11.6 related conditions under Minnesota 11.7 Statutes, section 268A.15, subdivision 11.8 3. Of this amount, $1,080,000 the 11.9 first year and $1,080,000 the second 11.10 year are one-time appropriations from 11.11 the workforce development fund. The 11.12 extended employment services program's 11.13 funding for fiscal year 2004 and fiscal 11.14 year 2005 shall be from the general 11.15 fund. 11.16 $750,000 the first year and $750,000 11.17 the second year are from the state's 11.18 TANF block grant under Title I of 11.19 Public Law Number 104-193 to the 11.20 commissioner of human services, to be 11.21 transferred to the commissioner of 11.22 economic security for extended 11.23 employment services for the 11.24 continuation of efforts to provide 11.25 extended employment training through 11.26 the welfare-to-work extended employment 11.27 partnership program to welfare 11.28 recipients with severe impairments to 11.29 employment as provided for under 11.30 Minnesota Statutes, section 268A.15. 11.31 Of this appropriation, up to two 11.32 percent may be used for administrative 11.33 costs. This is a one-time 11.34 appropriation and is not added to the 11.35 agency's budget base. 11.36 $50,000 the first year and $50,000 the 11.37 second year are for grants to fund the 11.38 eight centers for independent living. 11.39 The appropriation shall be distributed 11.40 in accordance with the state 11.41 independent living plan formula for 11.42 distribution of new independent living 11.43 funding. This appropriation shall be 11.44 added to the agency's base level 11.45 funding for the 2004-2005 biennium. 11.46 Subd. 4. State Services for the Blind 11.47 4,890,000 4,964,000 11.48 Sec. 5. HOUSING FINANCE AGENCY 65,132,000 64,532,000 11.49 Summary by Fund 11.50 General 52,682,000 52,082,000 11.51 TANF 12,450,000 12,450,000 11.52 Subdivision 1. Total Appropriation 11.53 The amounts that may be spent from this 11.54 appropriation for certain programs are 11.55 specified in the following subdivisions. 11.56 This appropriation is for transfer to 11.57 the housing development fund for the 11.58 programs specified. Except as 11.59 otherwise indicated, this transfer is 12.1 part of the agency's permanent budget 12.2 base. 12.3 Subd. 2. Challenge Program 12.4 $12,004,000 the first year and 12.5 $12,004,000 the second year are for the 12.6 economic development and housing 12.7 challenge program under Minnesota 12.8 Statutes, section 462A.33. Until 12.9 January 1, 2002, the agency may 12.10 administer the appropriations under 12.11 this subdivision in the same manner as 12.12 appropriations for Minnesota Statutes, 12.13 section 462A.21, subdivision 8b, 15, 12.14 21, or 24. In funding proposals with 12.15 money appropriated under this 12.16 subdivision, the agency shall give 12.17 priority to no more than three 12.18 proposals for pilot projects 12.19 encouraging homeowners to make 12.20 improvements to the exteriors of 12.21 deteriorating properties or assisting 12.22 homeowners with interior lead hazard 12.23 reduction in targeted neighborhoods. 12.24 Eligible proposals must meet the 12.25 following criteria: 12.26 (1) the funds will be used to discount 12.27 the interest rate on the community 12.28 fix-up fund program for home 12.29 improvement loans provided through the 12.30 agency; 12.31 (2) matching funds are provided from 12.32 either a local unit of government or a 12.33 private philanthropic, religious, or 12.34 charitable organization; and 12.35 (3) the discounted interest rate loans 12.36 will be targeted to households based on 12.37 need, as determined by the community. 12.38 Communities receiving funds under a 12.39 proposal for this purpose shall report 12.40 to the agency on the outcomes of the 12.41 pilot project, including the number of 12.42 households served, the cost per 12.43 household, the changes in property 12.44 values, if any, in the targeted 12.45 neighborhood, and improvements, if any, 12.46 made in the targeted neighborhoods 12.47 without government subsidy during the 12.48 same time period as the pilot project. 12.49 Subd. 3. Rental Assistance for Mentally Ill 12.50 $1,700,000 the first year and 12.51 $1,700,000 the second year are for a 12.52 rental housing assistance program for 12.53 persons with a mental illness or 12.54 families with an adult member with a 12.55 mental illness under Minnesota 12.56 Statutes, section 462A.2097. 12.57 Subd. 4. Family Homeless Prevention 12.58 $3,750,000 the first year and 12.59 $3,750,000 the second year are for the 12.60 family homeless prevention and 12.61 assistance program under Minnesota 13.1 Statutes, section 462A.204, and are 13.2 available until June 30, 2003. Of this 13.3 amount, $250,000 the first year and 13.4 $250,000 the second year are one-time 13.5 appropriations from the state's federal 13.6 TANF block grant under Title I of 13.7 Public Law Number 104-193 to the 13.8 commissioner of human services, to 13.9 reimburse the housing development fund 13.10 for assistance under this program for 13.11 families receiving TANF assistance 13.12 under the MFIP program. The 13.13 commissioner of human services shall 13.14 make monthly reimbursements to the 13.15 housing development fund. The 13.16 commissioner of human services shall 13.17 not make any reimbursement which the 13.18 commissioner determines would be 13.19 subject to a penalty under Code of 13.20 Federal Regulations, section 262.1. If 13.21 the appropriation in either year is 13.22 insufficient, the appropriation for the 13.23 other year is available. It is the 13.24 intention of the legislature that the 13.25 general fund base funding to this 13.26 program be $6,500,000 for the 2004-2005 13.27 biennium. 13.28 Subd. 5. Home Ownership Education, 13.29 Counseling, and Training 13.30 $1,058,000 the first year and 13.31 $1,058,000 the second year are for the 13.32 home ownership education, counseling, 13.33 and training program under Minnesota 13.34 Statutes, section 462A.209. 13.35 Of this amount, $200,000 the first year 13.36 and $200,000 the second year are from 13.37 the state's federal TANF block grant 13.38 under Title I of Public Law Number 13.39 104-103 to the commissioner of human 13.40 services, to reimburse the housing 13.41 development fund for full-cycle home 13.42 ownership services funded under this 13.43 program for non-English-speaking 13.44 persons, recent immigrants, and 13.45 historically underserved populations. 13.46 Subd. 6. Housing Trust Fund 13.47 $4,623,000 the first year and 13.48 $4,623,000 the second year are for the 13.49 housing trust fund to be deposited in 13.50 the housing trust fund account created 13.51 under Minnesota Statutes, section 13.52 462A.201, and used for the purposes 13.53 provided in that section. Until 13.54 January 1, 2002, the agency may 13.55 administer the appropriations under 13.56 this subdivision in the same manner as 13.57 appropriations for Minnesota Statutes 13.58 2000, sections 462A.201, 462A.205, and 13.59 462A.21, subdivision 8b. Among 13.60 comparable rehabilitation proposals, 13.61 the agency may give a priority for 13.62 projects that include lead hazard 13.63 reduction. 13.64 The agency shall strongly consider 13.65 funding proposals by community agencies 14.1 in partnership with local governments 14.2 or the federal government to assist in 14.3 the development, construction, 14.4 acquisition, or rehabilitation of 14.5 supportive and permanent housing 14.6 located on property owned by the United 14.7 States Department of Veterans Affairs 14.8 which will serve veterans and single 14.9 adults who are homeless or at risk of 14.10 becoming homeless and which will 14.11 provide or coordinate health and social 14.12 services needed by the residents. 14.13 Subd. 7. Affordable Rental Investment Fund 14.14 $22,000,000 the first year and 14.15 $22,000,000 the second year are for the 14.16 affordable rental investment fund 14.17 program under Minnesota Statutes, 14.18 section 462A.21, subdivision 8b. Of 14.19 this amount, $12,000,000 in each year 14.20 is a one-time appropriation and is not 14.21 added to the agency's base budget. 14.22 (a) Of this amount, $10,000,000 the 14.23 first year and $10,000,000 the second 14.24 year are to finance the acquisition, 14.25 rehabilitation, and debt restructuring 14.26 of federally assisted rental property 14.27 and for making equity take-out loans 14.28 under Minnesota Statutes, section 14.29 462A.05, subdivision 39. The owner of 14.30 the federally assisted rental property 14.31 must agree to participate in the 14.32 applicable federally assisted housing 14.33 program and to extend any existing 14.34 low-income affordability restrictions 14.35 on the housing for the maximum term 14.36 permitted. The owner must also enter 14.37 into an agreement that gives local 14.38 units of government, housing and 14.39 redevelopment authorities, and 14.40 nonprofit housing organizations the 14.41 right of first refusal if the rental 14.42 property is offered for sale. Priority 14.43 must be given among comparable 14.44 properties to properties with the 14.45 longest remaining term under an 14.46 agreement for federal rental 14.47 assistance. Priority must also be 14.48 given among comparable rental housing 14.49 developments to developments that are 14.50 or will be owned by local government 14.51 units, a housing and redevelopment 14.52 authority, or a nonprofit housing 14.53 organization. 14.54 (b) Of this appropriation, $12,000,000 14.55 the first year and $12,000,000 the 14.56 second year are to be used by the 14.57 agency to finance permanent and 14.58 supportive rental housing units and 14.59 necessary operating cost subsidies 14.60 related to the units financed and to 14.61 provide rental assistance. The 14.62 appropriation under this paragraph must 14.63 be used to finance units or provide 14.64 assistance for families whose household 14.65 income, at the time of initial 14.66 occupancy, does not exceed 30 percent 14.67 of the HUD established median income 15.1 for the metropolitan area, as defined 15.2 in Minnesota Statutes, section 473.121, 15.3 subdivision 2. The median family 15.4 income may be adjusted for families of 15.5 five or more persons. The owner of 15.6 units financed with the appropriation 15.7 under this paragraph must agree to 15.8 maintain affordability of the units 15.9 financed under this paragraph for a 15.10 30-year period. 15.11 Housing units financed in the 15.12 metropolitan area with the 15.13 appropriation under this paragraph must 15.14 be located near public transit that 15.15 provides regular service and access to 15.16 jobs, schools, and other services that 15.17 support self-sufficiency. 15.18 Housing units financed outside the 15.19 metropolitan area with the 15.20 appropriation under this paragraph must 15.21 be located near jobs, schools, and 15.22 other services that support 15.23 self-sufficiency. 15.24 The commissioner shall utilize 15.25 strategies to: (1) promote occupancy 15.26 of the units financed by the 15.27 appropriation under this paragraph by 15.28 households most in need of subsidized 15.29 housing and (2) encourage households to 15.30 move into homeownership or unsubsidized 15.31 housing as the household achieves 15.32 economic self-sufficiency. 15.33 The appropriation under this paragraph 15.34 shall be jointly administered by the 15.35 commissioners of the Minnesota housing 15.36 finance agency and the department of 15.37 human services and the director of the 15.38 strategic and long-range planning 15.39 office. 15.40 [WORKING FAMILY CREDIT.] (a) On a 15.41 regular basis, the commissioner of 15.42 revenue, with the assistance of the 15.43 commissioner of human services, shall 15.44 calculate the value of the refundable 15.45 portion of the Minnesota working family 15.46 credits provided under Minnesota 15.47 Statutes, section 290.0671, that 15.48 qualifies for federal reimbursement 15.49 from the temporary assistance to needy 15.50 families block grant. The commissioner 15.51 of revenue shall provide the 15.52 commissioner of human services with 15.53 such expenditure records and 15.54 information as are necessary to support 15.55 draw down of federal funds. 15.56 (b) Federal TANF funds, as specified in 15.57 this paragraph, are appropriated to the 15.58 commissioner of housing finance based 15.59 on calculations under paragraph (a) of 15.60 working family tax credit expenditures 15.61 that qualify for reimbursement from the 15.62 TANF block grant for income tax refunds 15.63 payable in federal fiscal years 15.64 beginning October 1, 2001. The draw 15.65 down of federal TANF funds shall be 16.1 made on a regular basis based on 16.2 calculations of credit expenditures by 16.3 the commissioner of revenue. 16.4 $12,000,000 in fiscal year 2002 and 16.5 $12,000,000 in fiscal year 2003 are 16.6 appropriated to the commissioner of the 16.7 housing finance agency. These funds 16.8 shall be transferred to the 16.9 commissioner of revenue to deposit into 16.10 the general fund. These funds shall 16.11 not become part of the 2004-05 base 16.12 budget. 16.13 Subd. 8. Urban Indian Housing Program 16.14 $187,000 the first year and $187,000 16.15 the second year are for the urban 16.16 Indian housing program under Minnesota 16.17 Statutes, section 462A.07, subdivision 16.18 15. 16.19 Subd. 9. Tribal Indian Housing Program 16.20 $1,683,000 the first year and 16.21 $1,683,000 the second year are for the 16.22 tribal Indian housing program under 16.23 Minnesota Statutes, section 462A.07, 16.24 subdivision 14. 16.25 Subd. 10. Capacity Building Grants 16.26 $340,000 the first year and $340,000 16.27 the second year are for nonprofit 16.28 capacity building grants under 16.29 Minnesota Statutes, section 462A.21, 16.30 subdivision 3b. 16.31 Subd. 11. Housing Rehabilitation 16.32 and Accessibility 16.33 $4,287,000 the first year and 16.34 $4,287,000 the second year are for the 16.35 housing rehabilitation and 16.36 accessibility program under Minnesota 16.37 Statutes, section 462A.05, subdivisions 16.38 14a and 15a. 16.39 Subd. 12. Home Ownership 16.40 Assistance Fund 16.41 $900,000 the first year and $900,000 16.42 the second year are for the home 16.43 ownership assistance fund under 16.44 Minnesota Statutes, section 462A.21, 16.45 subdivision 8. 16.46 Subd. 13. Manufactured Home 16.47 Park Redevelopment 16.48 $500,000 is for the manufactured home 16.49 park redevelopment program created by 16.50 Minnesota Statutes, section 462A.2035, 16.51 and is available until June 30, 2003. 16.52 This is a one-time appropriation and is 16.53 not added to the agency's budget base. 16.54 Subd. 14. Rental Housing 16.55 Pilot Program 16.56 $100,000 is for a rental housing pilot 17.1 program to encourage landlords to rent 17.2 to high-risk tenants with poor rental 17.3 histories in the counties of Benton, 17.4 Dakota, Hennepin, Olmsted, Ramsey, St. 17.5 Louis, Sherburne, and Stearns. This is 17.6 a one-time appropriation available 17.7 until June 30, 2003, and is not added 17.8 to the agency's budget base. 17.9 The program shall allow local agencies 17.10 to provide payment bonds to landlords 17.11 to reimburse a portion of losses 17.12 sustained by landlords willing to 17.13 accept high-risk tenants. In selecting 17.14 recipients for funding under this 17.15 section, priority must be given to 17.16 proposals that include accountability 17.17 provisions for participating landlords 17.18 and training and certification 17.19 requirements for participating tenants. 17.20 Local government units, nonprofit 17.21 agencies, or partnerships between local 17.22 government units and nonprofit agencies 17.23 are eligible for funding under this 17.24 subdivision. Local government units 17.25 must provide matching funds, which may 17.26 include administrative costs, payment 17.27 bond funding, or property tax credits. 17.28 The housing finance agency shall 17.29 consult with the following in selecting 17.30 recipients for funding under this 17.31 subdivision: organizations who 17.32 advocate for tenants and provide tenant 17.33 training, nonprofit and for-profit 17.34 housing providers, supportive housing 17.35 service providers, and tenant screening 17.36 organizations. 17.37 The housing finance agency must report 17.38 to the legislature by January 1, 2003, 17.39 on the effectiveness of the pilot 17.40 program in this subdivision in securing 17.41 rental housing for individuals with 17.42 poor rental histories. The report must 17.43 also address the feasibility of and 17.44 need for expanding the program 17.45 statewide and recommend best practices. 17.46 Subd. 15. Cancellations 17.47 The unobligated and unencumbered 17.48 balance appropriated to the affordable 17.49 rental investment fund account and the 17.50 community rehabilitation fund account 17.51 under Laws 1997, Second Special Session 17.52 chapter 2, section 4, is transferred on 17.53 July 1, 2001, to the disaster relief 17.54 contingency fund under Minnesota 17.55 Statutes, section 462A.21, subdivision 17.56 29. 17.57 The unobligated and unencumbered 17.58 balance appropriated to the affordable 17.59 rental investment fund account and the 17.60 community rehabilitation fund account 17.61 under Laws 1998, chapter 383, section 17.62 2, is transferred on July 1, 2001, to 17.63 the disaster relief contingency fund 17.64 under Minnesota Statutes, section 18.1 462A.21, subdivision 29. 18.2 $420,000 of the unobligated and 18.3 unencumbered balance in the local 18.4 government unit housing account under 18.5 Minnesota Statutes, section 462A.202, 18.6 is transferred to the housing trust 18.7 fund under Minnesota Statutes, section 18.8 462A.201, for loans and grants to 18.9 assist in the development, 18.10 construction, acquisition, or 18.11 rehabilitation of supportive and 18.12 permanent housing to serve veterans and 18.13 single adults who are homeless or at 18.14 risk of becoming homeless. The loans 18.15 or grants must be used for at least two 18.16 housing projects that: 18.17 (1) are located on property owned by 18.18 the United States Department of 18.19 Veterans Affairs or other property that 18.20 could be obtained at no cost; 18.21 (2) provide or coordinate health and 18.22 social services needed by the 18.23 residents; and 18.24 (3) are a collaborative partnership 18.25 between community agencies and local 18.26 units of government or the federal 18.27 government. 18.28 Of the amount transferred under this 18.29 subdivision, $50,000 is for a grant to 18.30 the city of Granite Falls for grants to 18.31 citizens whose homes were destroyed by 18.32 the Granite Falls tornado. Grants 18.33 shall be used to allow citizens who can 18.34 no longer build on existing lots 18.35 because of a lack of city services to 18.36 purchase new lots, up to $10,000 per 18.37 family. 18.38 Sec. 6. COMMERCE 18.39 Subdivision 1. Total 18.40 Appropriation 27,404,000 28,499,000 18.41 Summary by Fund 18.42 General 25,757,000 26,834,000 18.43 Petroleum Cleanup 1,055,000 1,065,000 18.44 Workers' 18.45 Compensation 592,000 600,000 18.46 The amounts that may be spent from this 18.47 appropriation for each program are 18.48 specified in the following subdivisions. 18.49 Subd. 2. Financial Examinations 18.50 6,432,000 6,659,000 18.51 Subd. 3. Petroleum Tank Release 18.52 Cleanup Board 18.53 1,055,000 1,065,000 18.54 This appropriation is from the 19.1 petroleum tank release cleanup fund. 19.2 Subd. 4. Administrative Services 19.3 5,793,000 5,883,000 19.4 Subd. 5. Enforcement 19.5 and Compliance 6,123,000 6,805,000 19.6 Summary by Fund 19.7 General 5,531,000 6,205,000 19.8 Workers' Compensation 592,000 600,000 19.9 Of this amount, $138,000 the first year 19.10 and $161,000 the second year of the 19.11 general fund appropriation are for the 19.12 cost of implementing HF1311, if 19.13 enacted. This appropriation is 19.14 available only if HF1311 is enacted. 19.15 Of this amount, $21,000 the first year 19.16 and $5,000 the second year are for the 19.17 costs of implementing HF1955, if 19.18 enacted. This appropriation is 19.19 available only if HF1955 is enacted. 19.20 Subd. 6. Energy 19.21 3,773,000 3,811,000 19.22 Subd. 7. Telecommunication 19.23 976,000 987,000 19.24 Subd. 8. Weights and Measurement 19.25 3,252,000 3,289,000 19.26 Of this amount, $5,000 the first year 19.27 and $5,000 the second year are for the 19.28 cost of implementing HF1007, if 19.29 enacted. This appropriation is 19.30 available only if HF1007 is enacted. 19.31 Sec. 7. BOARD OF ACCOUNTANCY FEE 674,000 702,000 19.32 Sec. 8. BOARD OF ARCHITECTURE, 19.33 ENGINEERING, LAND SURVEYING, 19.34 LANDSCAPE ARCHITECTURE, AND 19.35 INTERIOR DESIGN 935,000 948,000 19.36 Sec. 9. BOARD OF BARBER 19.37 EXAMINERS 152,000 157,000 19.38 Sec. 10. LABOR AND INDUSTRY 19.39 Subdivision 1. Total 19.40 Appropriation 25,154,000 25,481,000 19.41 Summary by Fund 19.42 General 3,525,000 3,575,000 19.43 Workers' 19.44 Compensation 20,842,000 21,111,000 19.45 Special 19.46 Revenue Fund 787,000 795,000 20.1 The amounts that may be spent from this 20.2 appropriation for each program are 20.3 specified in the following subdivisions. 20.4 Subd. 2. Workers' Compensation 20.5 10,797,000 10,944,000 20.6 This appropriation is from the workers' 20.7 compensation fund. 20.8 $125,000 the first year and $125,000 20.9 the second year are for grants to the 20.10 Vinland Center for rehabilitation 20.11 service. 20.12 Subd. 3. Workplace Services 7,394,000 7,492,000 20.13 Summary by Fund 20.14 General 2,464,000 2,496,000 20.15 Workers' 20.16 Compensation 4,143,000 4,201,000 20.17 Special 20.18 Revenue Fund 787,000 795,000 20.19 $204,000 the first year and $204,000 20.20 the second year are for labor education 20.21 and advancement program grants. This 20.22 appropriation is from the workforce 20.23 development fund. 20.24 Subd. 4. General Support 6,963,000 7,045,000 20.25 Summary by Fund 20.26 General 1,061,000 1,079,000 20.27 Workers' 20.28 Compensation 5,902,000 5,966,000 20.29 Sec. 11. BUREAU OF MEDIATION SERVICES 20.30 Subdivision 1. Total 20.31 Appropriation 2,236,000 2,260,000 20.32 The amounts that may be spent from this 20.33 appropriation for each program are 20.34 specified in the following subdivisions. 20.35 Subd. 2. Mediation Services 1,934,000 1,958,000 20.36 Subd. 3. Labor Management 20.37 Cooperation Grants 302,000 302,000 20.38 $302,000 each year is for grants to 20.39 area labor-management committees. Any 20.40 unencumbered balance remaining at the 20.41 end of the first year does not cancel 20.42 but is available for the second year. 20.43 Sec. 12. WORKERS' COMPENSATION 20.44 COURT OF APPEALS 1,559,000 1,598,000 20.45 This appropriation is from the workers' 20.46 compensation fund. 20.47 Sec. 13. PUBLIC UTILITIES 20.48 COMMISSION 3,948,000 4,069,000 21.1 Sec. 14. MINNESOTA HISTORICAL 21.2 SOCIETY 21.3 Subdivision 1. Total 21.4 Appropriation 26,199,000 26,729,000 21.5 The amounts that may be spent from this 21.6 appropriation for each program are 21.7 specified in the following subdivisions. 21.8 Subd. 2. Education and 21.9 Outreach 14,480,000 14,807,000 21.10 Subd. 3. Preservation and Access 11,323,000 11,574,000 21.11 Subd. 4. Fiscal Agent 396,000 348,000 21.12 (a) Sibley House Association 21.13 88,000 88,000 21.14 This appropriation is available for 21.15 operation and maintenance of the Sibley 21.16 House and related buildings on the Old 21.17 Mendota state historic site operated by 21.18 the Sibley House Association. 21.19 (b) Minnesota International Center 21.20 50,000 50,000 21.21 (c) Minnesota Air National 21.22 Guard Museum 21.23 19,000 -0- 21.24 (d) Institute for Learning and 21.25 Teaching - Project 120 21.26 110,000 110,000 21.27 (e) Minnesota Military Museum 21.28 29,000 -0- 21.29 (f) Farmamerica 21.30 100,000 100,000 21.31 Notwithstanding any other law, this 21.32 appropriation may be used for 21.33 operations. 21.34 (g) Balances Forward 21.35 Any unencumbered balance remaining in 21.36 this subdivision the first year does 21.37 not cancel but is available for the 21.38 second year of the biennium. 21.39 Sec. 15. COUNCIL ON BLACK 21.40 MINNESOTANS 339,000 346,000 21.41 Of this amount, $3,000 the first year 21.42 and $3,000 the second year are for the 21.43 cost of implementing HF387/SF142, if 21.44 enacted. This appropriation is 21.45 available only if HF387/SF142 is 21.46 enacted. 22.1 Sec. 16. COUNCIL ON 22.2 CHICANO-LATINO AFFAIRS 330,000 337,000 22.3 Sec. 17. COUNCIL ON 22.4 ASIAN-PACIFIC MINNESOTANS 293,000 301,000 22.5 Sec. 18. INDIAN AFFAIRS 22.6 COUNCIL 576,000 585,000 22.7 Sec. 19. [FEDERAL FUND APPROVAL.] 22.8 Requests to spend federal grants and aids as shown in the 22.9 biennial budget document and its supplements for the departments 22.10 of trade and economic development, economic security, commerce, 22.11 and labor and industry; the Minnesota housing finance agency; 22.12 and Minnesota Technology, Inc., for which further review was 22.13 requested under Minnesota Statutes, section 3.3005, subdivision 22.14 2a, in January or February 2001, are approved and the amounts 22.15 shown in the budget documents are appropriated for the purpose 22.16 indicated in the request. 22.17 ARTICLE 2 22.18 POLICY PROVISIONS 22.19 Section 1. Minnesota Statutes 2000, section 15.01, is 22.20 amended to read: 22.21 15.01 [DEPARTMENTS OF THE STATE.] 22.22 The following agencies are designated as the departments of 22.23 the state government: the department of administration; the 22.24 department of agriculture; the department of commerce; the 22.25 department of corrections; the department of children, families, 22.26 and learning;the department of economic security; the22.27department of trade and economic developmentdepartment of jobs, 22.28 economic development, and trade; the department of finance; the 22.29 department of health; the department of human rights; the 22.30 department of labor and industry; the department of military 22.31 affairs; the department of natural resources; the department of 22.32 employee relations; the department of public safety; the 22.33 department of public service; the department of human services; 22.34 the department of revenue; the department of transportation; the 22.35 department of veterans affairs; and their successor departments. 22.36 [EFFECTIVE DATE.] This section is effective July 1, 2002. 22.37 Sec. 2. Minnesota Statutes 2000, section 116J.8731, 23.1 subdivision 1, is amended to read: 23.2 Subdivision 1. [PURPOSE.] The Minnesota investment fund is 23.3 created to provide financial assistance, through partnership 23.4 with communities, for the creation of new employment or to 23.5 maintain existing employment, and for business start-up, 23.6 expansions, and retention. It shall accomplish these goals by 23.7 the following means: 23.8 (1) creation or retention of permanent private-sector jobs 23.9 in order to create above-average economic growth consistent with 23.10 environmental protection, which includes investments in 23.11 technology and equipment that increase productivity and provide 23.12 for a higher wage; 23.13 (2) stimulation or leverage of private investment to ensure 23.14 economic renewal and competitiveness; 23.15 (3) increasing the local tax base, based on demonstrated 23.16 measurable outcomes, to guarantee a diversified industry mix; 23.17 (4) improvement of employment and economic opportunity for 23.18 citizens in the region to create a reasonable standard of 23.19 living, consistent with federal and state guidelines on low- to 23.20 moderate-income persons; and 23.21 (5) stimulation of productivity growth through improved 23.22 manufacturing or new technologies, including cold weather 23.23 testing. 23.24 Sec. 3. Minnesota Statutes 2000, section 116L.03, 23.25 subdivision 2, is amended to read: 23.26 Subd. 2. [APPOINTMENT.] The Minnesota job skills 23.27 partnership board consists of: nine members appointed by the 23.28 governor, the commissioner of trade and economic development, 23.29 the commissioner of economic security, and the chancellor, or 23.30 the chancellor's designee, of the Minnesota state colleges and 23.31 universities. If the chancellor makes a designation under this 23.32 subdivision, the designee must have experience in technical 23.33 education. Two of the appointed members must be representatives 23.34 from organized labor, and one of the appointed members must have 23.35 expertise in and be a representative of a technology industry. 23.36 Sec. 4. Minnesota Statutes 2000, section 116L.03, 24.1 subdivision 3, is amended to read: 24.2 Subd. 3. [QUALIFICATIONS.] Members must have expertise in, 24.3 and be representative of the following fields of education,job24.4skills training,labor, business, and government. 24.5 Sec. 5. Minnesota Statutes 2000, section 116L.03, 24.6 subdivision 5, is amended to read: 24.7 Subd. 5. [TERMS.] The terms of appointed members shall be 24.8 for four years except for the initial appointments. The initial 24.9 appointments of the governor shall have the following terms: 24.10 two members each for one, two, three, and four years. No member 24.11 shall serve more than two terms, and no person shall be 24.12 appointed after December 31, 2001, for any term that would cause 24.13 that person to serve a total of more than eight years on the 24.14 board. Compensation for board members is as provided in section 24.15 15.0575, subdivision 3. 24.16 Sec. 6. [116L.17] [STATE DISLOCATED WORKER PROGRAM.] 24.17 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 24.18 section, the following terms have the meanings given them in 24.19 this subdivision. 24.20 (b) "Dislocated worker" means an individual who is a 24.21 resident of Minnesota at the time employment ceased or was 24.22 working in the state at the time employment ceased and: 24.23 (1) has been terminated or has received a notice of 24.24 termination from public or private sector employment, is 24.25 eligible for or has exhausted entitlement to unemployment 24.26 benefits, and is unlikely to return to the previous industry or 24.27 occupation; 24.28 (2) has been terminated or has received a notice of 24.29 termination of employment as a result of any plant closing or 24.30 any substantial layoff at a plant, facility, or enterprise; 24.31 (3) has been long-term unemployed and has limited 24.32 opportunities for employment or reemployment in the same or a 24.33 similar occupation in the area in which the individual resides, 24.34 including older individuals who may have substantial barriers to 24.35 employment by reason of age; 24.36 (4) has been self-employed, including farmers and ranchers, 25.1 and is unemployed as a result of general economic conditions in 25.2 the community in which the individual resides or because of 25.3 natural disasters, subject to rules to be adopted by the 25.4 commissioner; 25.5 (5) has been self-employed as a farmer or rancher and, even 25.6 though that employment has not ceased, has experienced a 25.7 significant reduction in income due to inadequate crop or 25.8 livestock prices, crop failures, or significant loss in crop 25.9 yields due to pests, disease, adverse weather, or other natural 25.10 phenomenon. This clause expires July 31, 2003; or 25.11 (6) was a full-time homemaker for a substantial number of 25.12 years and derived the substantial share of support from: 25.13 (i) a spouse and no longer receives such support due to the 25.14 death of, divorce from, permanent disability of, or permanent 25.15 separation from the spouse; or 25.16 (ii) public assistance on account of dependents in the home 25.17 and no longer receives such support. 25.18 To be eligible under this clause, the support must have 25.19 ceased while the worker resided in Minnesota. 25.20 (c) "Eligible organization" means a local government unit, 25.21 nonprofit organization, community action agency, business 25.22 organization or association, or labor organization. 25.23 (d) "Plant closing" means the announced or actual permanent 25.24 shutdown of a single site of employment, or one or more 25.25 facilities or operating units within a single site of employment. 25.26 (e) "Substantial layoff" means a permanent reduction in the 25.27 workforce, which is not a result of a plant closing, and which 25.28 results in an employment loss at a single site of employment 25.29 during any 30-day period for at least 50 employees excluding 25.30 those employees that work less than 20 hours per week. 25.31 Subd. 2. [GRANTS.] The board shall make grants to 25.32 workforce service areas or other eligible organizations to 25.33 provide services to dislocated workers. The board shall 25.34 allocate funds available for the purposes of this section in its 25.35 discretion to respond to large layoffs and to provide services 25.36 to individual dislocated workers or small groups. 26.1 Subd. 3. [ALLOCATION OF FUNDS.] The board, in consultation 26.2 with local workforce councils, shall develop a method of 26.3 distributing funds to provide services for dislocated workers 26.4 who are dislocated as a result of small or individual layoffs. 26.5 The board shall make an initial determination regarding 26.6 allocations under this subdivision by June 15, 2001, and in 26.7 subsequent years shall make a determination by April 15. This 26.8 subdivision is effective June 1, 2001. 26.9 Subd. 4. [USE OF FUNDS.] Funds granted by the board under 26.10 this section may be used for any combination of the following, 26.11 except as otherwise provided in this section: 26.12 (1) employment transition services such as developing 26.13 readjustment plans for individuals; outreach and intake; early 26.14 readjustment; job or career counseling; testing; orientation; 26.15 assessment of skills and aptitudes; provision of occupational 26.16 and labor market information; job placement assistance; job 26.17 search; job development; prelayoff assistance; relocation 26.18 assistance; and programs provided in cooperation with employers 26.19 or labor organizations to provide early intervention in the 26.20 event of plant closings or substantial layoffs; 26.21 (2) services that will allow the participant to become 26.22 reemployed by retraining for a new occupation or industry, 26.23 enhancing current skills, or relocating to employ existing 26.24 skills, including classroom training; occupational skill 26.25 training; on-the-job training; out-of-area job search; 26.26 relocation; basic and remedial education; literacy and English 26.27 for training non-English speakers; entrepreneurial training; and 26.28 other appropriate training activities directly related to 26.29 appropriate employment opportunities in the local labor market; 26.30 and 26.31 (3) support services, including family care assistance, 26.32 including child care; commuting assistance; housing and rental 26.33 assistance; counseling assistance, including personal and 26.34 financial; health care; emergency health assistance; emergency 26.35 financial assistance; work-related tools and clothing; and other 26.36 appropriate support services that enable a person to participate 27.1 in an employment and training program. 27.2 Subd. 5. [COST LIMITATIONS.] Funds allocated to a grantee 27.3 are subject to the following cost limitations: 27.4 (1) no more than 10 percent may be allocated for 27.5 administration; 27.6 (2) at least 50 percent must be allocated for training 27.7 assistance as provided in subdivision 4, clause (2); and 27.8 (3) no more than 15 percent may be allocated for support 27.9 services as provided in subdivision 4, clause (3). 27.10 A waiver of the training assistance minimum in clause (2) 27.11 may be sought, but no waiver shall allow less than 30 percent of 27.12 the grant to be spent on training assistance. A waiver of the 27.13 support services maximum in clause (3) may be sought, but no 27.14 waiver shall allow more than 20 percent of the grant to be spent 27.15 on support services. 27.16 Subd. 6. [PERFORMANCE STANDARDS.] (a) The board, in 27.17 consultation with representatives of local workforce councils 27.18 and local elected officials, shall establish performance 27.19 standards for the programs and activities administered or funded 27.20 under this section. The board may use, when appropriate, 27.21 existing federal performance standards or, if the commissioner 27.22 determines that federal standards are inadequate or not 27.23 suitable, may formulate new performance standards to ensure that 27.24 the programs and activities of the dislocated worker program are 27.25 effectively administered. 27.26 (b) The board shall, at a minimum, establish performance 27.27 standards that appropriately gauge the program's effectiveness 27.28 at placing dislocated workers in employment, replacing lost 27.29 income resulting from dislocation, early intervention with 27.30 workers shortly after dislocation, and retraining of workers 27.31 from one industry or occupation to another. 27.32 Subd. 7. [REPORTS.] (a) Grantees receiving funds under 27.33 this section shall report to the board information on program 27.34 participants, activities funded, and utilization of funds in a 27.35 form and manner prescribed by the board. 27.36 (b) The board shall report quarterly to the workforce 28.1 development council information on grants awarded, activities 28.2 funded, and plant closings and substantial layoffs. Specific 28.3 information to be reported shall be by agreement between the 28.4 board and the workforce development council. 28.5 Subd. 8. [ADMINISTRATIVE COSTS.] No more than five percent 28.6 of the funds appropriated to the board for the purposes of this 28.7 section may be spent by the board for its administrative costs. 28.8 Sec. 7. [122A.655] [RECRUITMENT OF EXCELLENT TEACHERS IN 28.9 SCIENCE, MATH, INDUSTRIAL TECHNOLOGY, AND SPECIAL EDUCATION AND 28.10 IN RURAL AREAS; LOAN REPAYMENT PROGRAM.] 28.11 Subdivision 1. [PROGRAM ESTABLISHED; ACCOUNT CREATED.] A 28.12 loan repayment program is established to assist Minnesota public 28.13 schools in recruiting and retaining excellent teachers in the 28.14 fields of science, math, industrial technology, and special 28.15 education, and in rural areas. A loan repayment program account 28.16 is created in the state treasury. The account consists of money 28.17 appropriated by the legislature for loan repayments. All money 28.18 in this account is annually appropriated to the higher education 28.19 services office and must be used to repay loans of qualified 28.20 licensed teachers who teach in high-need curricular and 28.21 geographic areas under subdivision 2. 28.22 Subd. 2. [ELIGIBILITY; APPLICATION.] (a) To participate in 28.23 this program, a person must: 28.24 (1) have graduated from an approved teacher preparation 28.25 institution within 12 months of submitting an application to the 28.26 higher education services office to participate in this program; 28.27 and 28.28 (2) have a 3.0 grade point average or higher and be 28.29 licensed to teach in the field of math, science, industrial 28.30 technology, or special education. 28.31 (b) A person who has a 3.0 grade point average also may 28.32 participate in this program if the person is a teacher: 28.33 (1) who is licensed to teach science, math, industrial 28.34 technology, or special education and is employed to teach for 28.35 the first time in a Minnesota school district or is placed on 28.36 unrequested leave of absence under section 122A.40, subdivision 29.1 10 or 11, or is terminated because a position is discontinued or 29.2 a lack of pupils under section 122A.41, subdivision 14, or whose 29.3 contract as a probationary teacher is not renewed under section 29.4 122A.40 or 122A.41, and is employed by another school district 29.5 to teach science, math, industrial technology, or special 29.6 education; or 29.7 (2) with continuing contract or tenure rights who received 29.8 certification to teach in the field of science, math, industrial 29.9 technology, or special education within 12 months of submitting 29.10 an application to the higher education services office to 29.11 participate in this program. 29.12 (c) A person who meets the criteria in paragraph (a) or (b) 29.13 and is employed as a teacher in a public school located in 29.14 Minnesota outside the metropolitan area, as defined in section 29.15 473.121, subdivision 2, is eligible to receive an additional 29.16 loan repayment amount of up to $2,000 per year under subdivision 29.17 3. 29.18 (d) To be eligible to participate in this program, a person 29.19 must submit an application to the higher education services 29.20 office in the form and manner the higher education services 29.21 office prescribes. The person must be employed as a teacher for 29.22 at least three consecutive school years in a Minnesota public 29.23 school. 29.24 (e) The higher education services office shall ensure that 29.25 applicants are qualified for this program, notify eligible 29.26 people about the program, develop and disseminate application 29.27 materials, and carry out other activities needed to implement 29.28 this section. 29.29 Subd. 3. [LOAN REPAYMENT.] (a) For fiscal year 2002 and 29.30 fiscal year 2003, the higher education services office may 29.31 select teacher applicants to participate in this program. 29.32 Program participants are responsible for securing their own 29.33 education loans. For each year that a participant is employed 29.34 and teaching in a school district according to subdivision 2, up 29.35 to a total of three years, the higher education services office 29.36 shall pay the following loan repayment amounts for the costs a 30.1 participant incurred for a post-secondary education leading to a 30.2 license to teach or for certification to teach in the field of 30.3 science, math, industrial technology, or special education: 30.4 (1) at the end of the first successfully completed school 30.5 year, if the teacher meets the criteria of subdivision 2, 30.6 paragraph (a) or (b), up to $1,000, and if the teacher meets the 30.7 criteria of subdivision 2, paragraphs (a) or (b) and (c), up to 30.8 $3,000; 30.9 (2) at the end of the second successfully completed school 30.10 year, if the teacher meets the criteria of subdivision 2, 30.11 paragraph (a) or (b), up to $3,000, and if the teacher meets the 30.12 criteria of subdivision 2, paragraphs (a) or (b) and (c), up to 30.13 $5,000; and 30.14 (3) at the end of the third successfully completed school 30.15 year, if the teacher meets the criteria of subdivision 2, 30.16 paragraph (a) or (b), up to $5,000, and if the teacher meets the 30.17 criteria of subdivision 2, paragraphs (a) or (b) and (c), up to 30.18 $7,000. 30.19 The higher education services office shall prorate the loan 30.20 repayment amounts of eligible teachers under this section who 30.21 work less than full-time in the field of science, math, 30.22 industrial technology, or special education. 30.23 (b) The higher education services office shall make 30.24 payments according to paragraph (a). The annual and total 30.25 payment amounts must not exceed the amount of the participant's 30.26 loan. 30.27 Subd. 4. [RULES.] The higher education services office 30.28 shall adopt rules to administer this loan repayment program 30.29 consistent with its authority under section 136A.01, subdivision 30.30 2, clause (8). For purposes of this section, the higher 30.31 education services office is exempt from all rulemaking 30.32 requirements under chapter 14, except section 14.386. 30.33 Subd. 5. [SUNSET.] This section expires on June 30, 2005. 30.34 Sec. 8. Minnesota Statutes 2000, section 138.664, is 30.35 amended by adding a subdivision to read: 30.36 Subd. 50a. Little Elk Heritage Preserve, Morrison county. 31.1 Sec. 9. Minnesota Statutes 2000, section 184.29, is 31.2 amended to read: 31.3 184.29 [FEES.] 31.4 Before a license is granted to an applicant, the applicant 31.5 shall pay the following fee: 31.6 (a) An employment agent shall pay an annual license fee of 31.7 $250 for each license. 31.8 (b)A search firm exempt under section 184.22, subdivision31.92, shall pay an annual registration fee of $250, accompanying31.10the annual statement to the commissioner.31.11(c)An applicant for a counselor's license shall pay a 31.12 license fee of $20 and a renewal fee of $10. 31.13(d)(c) An applicant for an employment agency manager's 31.14 license shall pay a license fee of $20 and a renewal fee of $10. 31.15 [EFFECTIVE DATE.] This section is effective July 1, 2003. 31.16 Sec. 10. Minnesota Statutes 2000, section 184.30, 31.17 subdivision 1, is amended to read: 31.18 Subdivision 1. Every application for an employment 31.19 agency's license, and every annual report required to be filed 31.20 under section 184.22, subdivision 2, must be accompanied by a 31.21 surety bond approved by the department in the amount of $10,000 31.22 for each location; except, that for a search firm, the bond is31.23required only for the first five years of registration. For a31.24search firm that was previously licensed as an employment31.25agency, the bond is required only until the firm has met the31.26bond requirement as an agency or as a search firm for a total of31.27at least five years. The bond must be filed in the office of 31.28 the secretary of state and conditioned that the employment 31.29 agency and each member, shareholder, director, or officer of a 31.30 firm, partnership, corporation, or association operating as an 31.31 employment agency will comply with the provisions of sections 31.32 184.21 to 184.40 and any contract made by the employment agent 31.33 in the conduct of the business. A person damaged by a breach of 31.34 any condition of the bond may bring an action on the bond, and 31.35 successive actions may be maintained on it. 31.36 [EFFECTIVE DATE.] This section is effective July 1, 2003. 32.1 Sec. 11. Minnesota Statutes 2000, section 184.38, 32.2 subdivision 6, is amended to read: 32.3 Subd. 6. (a) No employment agentor search firmshall send 32.4 out any applicant for employment without having obtained a job 32.5 order, and if no employment of the kind applied for existed at 32.6 the place to which the applicant was directed, the employment 32.7 agentor search firmshall refund to the applicant, within 48 32.8 hours of demand, any sums paid by the applicant for 32.9 transportation in going to and returning from the place. 32.10 (b) Nothing in this chapter shall be construed to prevent 32.11 an employment agentor search firmfrom directing an applicant 32.12 to an employer where the employer has previously requested 32.13 interviews with applicants of certain types and qualifications, 32.14 even though no actual vacancy existed in the employer's 32.15 organization at the time the applicant was so directed; nor 32.16 shall it prevent the employment agentor search firmfrom 32.17 attempting to sell the services of an applicant to the employer 32.18 even though no order has been placed with the employment agent 32.19or search firm; provided, that prior to scheduling an interview 32.20 with an employer, when no opening currently exists with that 32.21 employer, the applicant is clearly informed that no opening 32.22 exists at that time. 32.23 [EFFECTIVE DATE.] This section is effective July 1, 2003. 32.24 Sec. 12. Minnesota Statutes 2000, section 184.38, 32.25 subdivision 8, is amended to read: 32.26 Subd. 8. No employment agentor search firmshall 32.27 knowingly cause to be printed or published a false or fraudulent 32.28 notice or advertisement for help or for obtaining work or 32.29 employment. For purposes of this subdivision the phrase "false 32.30 or fraudulent notice or advertisement" shall include the 32.31 following: 32.32 (a) The advertisement of any job for which there is no bona 32.33 fide oral or written job order and completed job order form in 32.34 existence at the time the advertisement is placed; 32.35 (b) The inclusion in any advertisement of any information 32.36 concerning the identity, availability, features, or requirements 33.1 of any advertised job when such information is not substantiated 33.2 by, and included in, the supporting job order form; 33.3 (c) The advertisement of any job opening of the type 33.4 described in subdivision 6, clause (b); 33.5 (d) The advertisement of any job without the inclusion in 33.6 the advertisement of the "job order number" required in 33.7 subdivision 18; 33.8 (e) If an applicant appears at any agencyor search firmin 33.9 response to the advertisement of a particular job, the failure 33.10 to attempt placement of the applicant in the advertised job; 33.11 provided however, that the agencyor search firmmay refuse to 33.12 attempt such placement if the reason(s) for the refusal are 33.13 clearly and truthfully disclosed to the applicant either orally 33.14 or in writing. 33.15 [EFFECTIVE DATE.] This section is effective July 1, 2003. 33.16 Sec. 13. Minnesota Statutes 2000, section 184.38, 33.17 subdivision 9, is amended to read: 33.18 Subd. 9. No employment agentor search firmshall place or 33.19 assist in placing any person in unlawful employment. 33.20 [EFFECTIVE DATE.] This section is effective July 1, 2003. 33.21 Sec. 14. Minnesota Statutes 2000, section 184.38, 33.22 subdivision 10, is amended to read: 33.23 Subd. 10. No employment agentor search firmshall fail to 33.24 state in any advertisement, proposal, or contract for 33.25 employment, that there is a strike or lockout at the place of 33.26 proposed employment, if the agentor firmhas knowledge that 33.27 such condition exists. 33.28 [EFFECTIVE DATE.] This section is effective July 1, 2003. 33.29 Sec. 15. Minnesota Statutes 2000, section 184.38, 33.30 subdivision 11, is amended to read: 33.31 Subd. 11. No employment agency or its employee may split, 33.32 divide, or share, directly or indirectly, any fee, charge, or 33.33 compensation received from any employer or applicant with any 33.34 employer, or person in any way connected with the employer's 33.35 business.No search firm or its employee may split, divide, or33.36share, directly or indirectly, any fee, charge, or compensation34.1received from any employer with any person connected in any way34.2with the employer's business.A violation of this subdivision 34.3 shall be punished by a fine of not less than $100, and not more 34.4 than $3,000, or on failure to pay the fine by imprisonment for a 34.5 period not to exceed one year, or both, at the discretion of the 34.6 court. 34.7 [EFFECTIVE DATE.] This section is effective July 1, 2003. 34.8 Sec. 16. Minnesota Statutes 2000, section 184.38, 34.9 subdivision 17, is amended to read: 34.10 Subd. 17. Except for applicant information given in the 34.11 course of normal agencyor firmoperations, no employment agent 34.12or search firmshall voluntarily sell, give, or otherwise 34.13 transfer any files, records, or other information relating to 34.14 its employment agencyor search firmapplicants and employers to 34.15 any person other than a licensed employment agentor registered34.16search firmor a person who agrees to obtain an employment 34.17 agency licenseor register as a search firm. Every employment 34.18 agentor search firmwho ceases to engage in the business of or 34.19 act as an employment agentor search firmshall notify the 34.20 department of such fact within 30 days thereof, and shall advise 34.21 the department as to the disposition of all files and other 34.22 records relating to its employment agencyor search firm34.23 business. 34.24 [EFFECTIVE DATE.] This section is effective July 1, 2003. 34.25 Sec. 17. Minnesota Statutes 2000, section 184.38, 34.26 subdivision 18, is amended to read: 34.27 Subd. 18. Every job order communicated to an agencyor34.28search firmshall be recorded by the agencyor search firmon a 34.29 job order form which form shall contain specific information as 34.30 prescribed by the department. A job order form shall be filled 34.31 out for each job order prior to any attempt to advertise the job 34.32 opening or to place persons in said job. Such forms shall each 34.33 be assigned a separate number and shall be maintained by the 34.34 agencyor search firmfor a period of one year. 34.35 [EFFECTIVE DATE.] This section is effective July 1, 2003. 34.36 Sec. 18. Minnesota Statutes 2000, section 184.38, 35.1 subdivision 20, is amended to read: 35.2 Subd. 20. No employment agentor search firmshall 35.3 knowingly misrepresent to any employer the educational 35.4 background, skills, or qualifications of any job candidate; or 35.5 knowingly misrepresent to a job candidate the responsibilities, 35.6 salary, or other features of any position of employment. 35.7 [EFFECTIVE DATE.] This section is effective July 1, 2003. 35.8 Sec. 19. Minnesota Statutes 2000, section 184.41, is 35.9 amended to read: 35.10 184.41 [VIOLATIONS.] 35.11 Any person who engages in the business of or acts as an 35.12 employment agent or counselor without first procuring a license 35.13 as required by section 184.22, and any employment agent, 35.14 manager, or counselor who violates the provisions of this 35.15 chapter, and any exempt firm which violates any of the35.16applicable provisions of this chapter,is guilty of a 35.17 misdemeanor. 35.18 In addition to the penalties for commission of a 35.19 misdemeanor, the department may bring an action for an 35.20 injunction against any person who engages in the business of or 35.21 acts as an employment agent or counselor without first procuring 35.22 the license required under section 184.22,or who engages in the35.23business of or acts as a search firm without first filing the35.24registration required under section 184.22, subdivision 3,and 35.25 against any employment agent, manager, or counselor, or search35.26firmwho violates the applicable provisions of this chapter. If 35.27 an agency, manager, or counselor, or search firmis found guilty 35.28 of a misdemeanor in any action relevant to the operation of an 35.29 agency,or search firmthe department may suspend or revoke the 35.30 licenseor registrationof the agency, manager, or counselor, or35.31search firm. 35.32 [EFFECTIVE DATE.] This section is effective July 1, 2003. 35.33 Sec. 20. Minnesota Statutes 2000, section 216C.06, is 35.34 amended by adding a subdivision to read: 35.35 Subd. 14. [ANAEROBIC DIGESTER SYSTEM.] "Anaerobic digester 35.36 system" means a system of components that processes animal waste 36.1 based on the absence of oxygen and produces gas used to generate 36.2 electricity. 36.3 Sec. 21. Minnesota Statutes 2000, section 216C.41, is 36.4 amended to read: 36.5 216C.41 [RENEWABLE ENERGY PRODUCTION INCENTIVE.] 36.6 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 36.7 subdivision apply to this section. 36.8 (b) "Qualified hydroelectric facility" means a 36.9 hydroelectric generating facility in this state that: 36.10 (1) is located at the site of a dam, if the dam was in 36.11 existence as of March 31, 1994; and 36.12 (2) begins generating electricity after July 1, 1994, or 36.13 generates electricity after substantial refurbishing of a 36.14 facility that begins after July 1, 2001. 36.15 (c) "Qualified wind energy conversion facility" means a 36.16 wind energy conversion system that: 36.17 (1) produces two megawatts or less of electricity as 36.18 measured by nameplate rating and begins generating electricity 36.19 after June 30, 1997, and before July 1, 1999; 36.20 (2) begins generating electricity after June 30, 1999, 36.21 produces two megawatts or less of electricity as measured by 36.22 nameplate rating, and is: 36.23 (i) located within one county and owned by a natural person 36.24 who owns the land where the facility is sited; 36.25 (ii) owned by a Minnesota small business as defined in 36.26 section 645.445; 36.27 (iii) owned by a nonprofit organization; or 36.28 (iv) owned by a tribal council if the facility is located 36.29 within the boundaries of the reservation; or 36.30 (3) begins generating electricity after June 30, 1999, 36.31 produces seven megawatts or less of electricity as measured by 36.32 nameplate rating, and: 36.33 (i) is owned by a cooperative organized under chapter 308A; 36.34 and 36.35 (ii) all shares and membership in the cooperative are held 36.36 by natural persons or estates, at least 51 percent of whom 37.1 reside in a county or contiguous to a county where the wind 37.2 energy production facilities of the cooperative are located. 37.3 (d) "Qualified on-farm biogas recovery facility" means an 37.4 anaerobic digester system that: 37.5 (1) is located at the site of an agricultural operation; 37.6 (2) is owned by a natural person who owns or rents the land 37.7 where the facility is located; and 37.8 (3) begins generating electricity after July 1, 2001. 37.9 Subd. 2. [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 37.10 paymentsshallmust be made according to this section to (1) a 37.11 qualified on-farm biogas recovery facility, (2) the owner or 37.12 operator of a qualified hydropower facility or qualified wind 37.13 energy conversion facility for electric energy generated and 37.14 sold by the facilityor, for, (3) a publicly owned hydropower 37.15 facility,for electric energy that is generated by the facility 37.16 and used by the owner of the facility outside the facility, or 37.17 (4) the owner of a publicly owned dam that is in need of 37.18 substantial repair, for electric energy that is generated by a 37.19 hydropower facility at the dam and the annual incentive payments 37.20 will be used to fund the structural repairs and replacement of 37.21 structural components of the dam, or to retire debt incurred to 37.22 fund those repairs. 37.23 (b) Payment may only be made upon receipt by the 37.24 commissioner of finance of an incentive payment application that 37.25 establishes that the applicant is eligible to receive an 37.26 incentive payment and that satisfies other requirements the 37.27 commissioner deems necessary. The applicationshallmust be in 37.28 a form and submitted at a time the commissioner establishes. 37.29 (c) There is annually appropriated from the general fund 37.30 sums sufficient to make the payments required under this section. 37.31 Subd. 3. [ELIGIBILITY WINDOW.] Payments may be made under 37.32 this section only for electricity generated: 37.33 (1) from a qualified hydroelectric facility that is 37.34 operational and generating electricity before December 31, 37.3520012005;or37.36 (2) from a qualified wind energy conversion facility that 38.1 is operational and generating electricity before January 1, 38.2 2005; or 38.3 (3) from a qualified on-farm biogas recovery facility from 38.4 July 1, 2001, through December 31, 2015. 38.5 Subd. 4. [PAYMENT PERIOD.] (a) A facility may receive 38.6 payments under this section for a ten-year period. No payment 38.7 under this section may be made for electricity generated: 38.8 (1) by a qualified hydroelectric facility after December 38.9 31,20102015;or38.10 (2) by a qualified wind energy conversion facility after 38.11 December 31, 2015; or 38.12 (3) by a qualified on-farm biogas recovery facility after 38.13 December 31, 2015. 38.14 (b) The payment period begins and runs consecutively from 38.15 the first year in which electricity generated from the facility 38.16 is eligible for incentive payment or after substantial repairs 38.17 to the hydropower facility dam funded by the incentive payments 38.18 are initiated. 38.19 Subd. 5. [AMOUNT OF PAYMENT.] An incentive payment is 38.20 based on the number of kilowatt hours of electricity generated. 38.21 The amount of the payment is: 38.22 (1) for a facility described under subdivision 2, paragraph 38.23 (a), clause (4), 1.0 cents per kilowatt hour; and 38.24 (2) for all other facilities, 1.5 cents per kilowatt hour. 38.25 For electricity generated by qualified wind energy 38.26 conversion facilities, the incentive payment under this section 38.27 is limited to no more than 100 megawatts of nameplate capacity. 38.28 During any period in which qualifying claims for incentive 38.29 payments exceed 100 megawatts of nameplate capacity, the 38.30 payments must be made to producers in the order in which the 38.31 production capacity was brought into production. 38.32 Sec. 22. Minnesota Statutes 2000, section 268.022, 38.33 subdivision 1, is amended to read: 38.34 Subdivision 1. [DETERMINATION AND COLLECTION OF SPECIAL 38.35 ASSESSMENT.] (a) In addition to all other taxes, assessments, 38.36 and payment obligations under chapter 268, each employer, except 39.1 an employer making payments in lieu of taxes is liable for a 39.2 special assessment levied at the rate ofone-tenth of one39.3percent per year until June 30, 2000, andseven-hundredths of 39.4 one percent per yearon and after July 1, 2000until December 39.5 31, 2001, and five-hundredths of one percent per year on and 39.6 after January 1, 2002, on all taxable wages, as defined in 39.7 section 268.04, subdivision 25b. The assessment shall become 39.8 due and be paid by each employer to the department on the same 39.9 schedule and in the same manner as other taxes. 39.10 (b) The special assessment levied under this section shall 39.11 not affect the computation of any other taxes, assessments, or 39.12 payment obligations due under this chapter. 39.13 Sec. 23. Minnesota Statutes 2000, section 268.022, 39.14 subdivision 2, is amended to read: 39.15 Subd. 2. [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 39.16 The money collected under this section shall be deposited in the 39.17 state treasury and credited to the workforce development fund to 39.18 provide for employment and training programs. The workforce 39.19 development fund is created as a special account in the state 39.20 treasury. 39.21 (b)All money in the fund not otherwise appropriated or39.22transferred is appropriated to the commissioner who must act as39.23the fiscal agent for the money and must disburse that money for39.24the purposes of this section, not allowing the money to be used39.25for any other obligation of the state.Beginning in fiscal year 39.26 2002, $12,000,000 each fiscal year is appropriated from the 39.27 workforce development fund to the job skills partnership board 39.28 for the purposes of section 116L.17. All money in the workforce 39.29 development fund shall be deposited, administered, and disbursed 39.30 in the same manner and under the same conditions and 39.31 requirements as are provided by law for the other special 39.32 accounts in the state treasury, except that all interest or net 39.33 income resulting from the investment or deposit of money in the 39.34 fund shall accrue to the fund for the purposes of the fund. 39.35 (c)No more than five percent of the funds collected in39.36each fiscal year may be used by the department of economic40.1security for its administrative costs.40.2(d)Reimbursement for costs related to collection of the 40.3 special assessment shall be in an amount negotiated between the 40.4 commissioner and the United States Department of Labor. 40.5(e) The funds appropriated to the commissioner, less40.6amounts under paragraphs (c) and (d) shall be allocated as40.7follows:40.8(1) 40 percent to be allocated annually to substate40.9grantees for provision of expeditious response activities under40.10section 268.9771 and worker adjustment services under section40.11268.9781; and40.12(2) 60 percent to be allocated to activities and programs40.13authorized under sections 268.975 to 268.98.40.14(f) Any funds not allocated, obligated, or expended in a40.15fiscal year shall be available for allocation, obligation, and40.16expenditure in the following fiscal year.40.17 Sec. 24. Laws 1993, chapter 301, section 1, subdivision 4, 40.18 as amended by Laws 1999, chapter 47, section 1, is amended to 40.19 read: 40.20 Subd. 4. [WAIVER.] (a) Upon receipt of the committee 40.21 report required by subdivision 3, each entity head shall submit 40.22 the list of recommended waivers to the commissioner of employee 40.23 relations. The commissioner shall then grant the waivers 40.24 requested by each entity, effective for the requesting entity, 40.25 for a period ending June 30, 1997, except the waivers granted 40.26 for the Minnesota housing finance agency shall extend to June 40.27 30,20012003, subject to the restrictions in paragraph (b) and 40.28 to revision in accordance with subdivision 5. The commissioner 40.29 shall waive a rule by granting a variance under Minnesota 40.30 Statutes, section 14.05, subdivision 4. 40.31 (b) The commissioner may not grant a waiver if it would 40.32 result in the layoff of classified employees or unclassified 40.33 employees covered by a collective bargaining agreement except as 40.34 provided in a plan negotiated under Minnesota Statutes, chapter 40.35 179A, that provides options to layoff for employees who would be 40.36 affected. If a proposed waiver would violate the terms of a 41.1 collective bargaining agreement reached under Minnesota 41.2 Statutes, chapter 179A, the waiver may not be granted without 41.3 the consent of the exclusive representative that is a party to 41.4 the agreement. 41.5 [EFFECTIVE DATE.] This section is effective July 1, 2001. 41.6 Sec. 25. Laws 1995, chapter 248, article 12, section 2, as 41.7 amended by Laws 1999, chapter 47, section 2, is amended to read: 41.8 Sec. 2. [TERMINATION.] 41.9 Section 1 and the civil service pilot project in the 41.10 housing finance agency as authorized by Laws 1993, chapter 301, 41.11 terminate June 30,20012003, or at any earlier time by a method 41.12 agreed upon by the commissioners of employee relations and 41.13 housing finance and the affected exclusive bargaining 41.14 representative of state employees. 41.15 [EFFECTIVE DATE.] This section is effective July 1, 2001. 41.16 Sec. 26. Laws 1995, chapter 248, article 13, section 2, 41.17 subdivision 2, as amended by Laws 1997, chapter 97, section 13, 41.18 is amended to read: 41.19 Subd. 2. [PILOT PROJECT.] During the biennium ending June 41.20 30,20012005, the governor shall designate an executive agency 41.21 that will conduct a pilot civil service project. The pilot 41.22 program must adhere to the policies expressed in subdivision 1 41.23 and in Minnesota Statutes, section 43A.01. For the purposes of 41.24 conducting the pilot project, the commissioner of the designated 41.25 agency is exempt from the provisions that relate to employment 41.26 in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 41.27 3900, and administrative procedures and policies of the 41.28 department of employee relations. If a proposed exemption from 41.29 the provisions that relate to employment in Minnesota Statutes, 41.30 chapter 43A, Minnesota Rules, chapter 3900, and administrative 41.31 procedures and policies of the department of employee relations 41.32 would violate the terms of a collective bargaining agreement 41.33 effective under Minnesota Statutes, chapter 179A, the exemption 41.34 is not effective without the consent of the exclusive 41.35 representative that is a party to the agreement. Upon request 41.36 of the commissioner carrying out the pilot project, the 42.1 commissioner of employee relations shall provide technical 42.2 assistance in support of the pilot project. This section does 42.3 not exempt an agency from compliance with Minnesota Statutes, 42.4 sections 43A.19 and 43A.191, or from rules adopted to implement 42.5 those sections. 42.6 [EFFECTIVE DATE.] This section is effective July 1, 2001. 42.7 Sec. 27. [NEW AGENCY.] 42.8 (a) Responsibility for administration of those Workforce 42.9 Investment Act (United States Code, title 29), title I and title 42.10 III programs administered by the department of trade and 42.11 economic development is transferred to the new agency, the 42.12 department of jobs, economic development, and trade. 42.13 (b) Responsibility for administration of those Workforce 42.14 Investment Act (United States Code, title 29), title I and title 42.15 III programs administered by the department of economic security 42.16 is transferred to the new agency, the department of jobs, 42.17 economic development, and trade. 42.18 (c) Responsibility for administration of the apprenticeship 42.19 program in the department of labor and industry is transferred 42.20 to the new agency, the department of jobs, economic development, 42.21 and trade. 42.22 (d) Responsibility for administration of the job skills 42.23 partnership program in the department of trade and economic 42.24 development is transferred to the new agency, the department of 42.25 jobs, economic development, and trade. 42.26 (e) The head of the new agency, the department of jobs, 42.27 economic development, and trade, is a commissioner for the 42.28 purposes of Minnesota Statutes, section 15.06. 42.29 [EFFECTIVE DATE.] This section is effective July 1, 2002. 42.30 Sec. 28. [TRANSITION TEAM.] 42.31 (a) The governor shall appoint the head of a workforce 42.32 transition team. The head of the transition team shall 42.33 recommend to the governor and the legislature the transfer to 42.34 the appropriate state agency of the responsibility for 42.35 administration of those programs of the department of trade and 42.36 economic development and the department of economic security not 43.1 specified in this act. The head of the transition team may 43.2 recommend, where appropriate, the transfer of a program, 43.3 including those programs under the Workforce Investment Act 43.4 (United States Code, title 29), title I and title III, to local 43.5 workforce boards. The legislature shall review the allocation 43.6 of resources to state programs and the local workforce councils. 43.7 (b) The head of the workforce transition team shall report 43.8 to the legislature no later than December 15, 2001, on 43.9 recommendations under paragraph (a). The report submitted by 43.10 the transition team shall exclude any reference to mandatory 43.11 career tracking for individuals, and shall recommend such 43.12 changes in state law or policy as are necessary or desirable in 43.13 order to eliminate career tracking by agencies of state 43.14 government, political subdivisions of the state, or local 43.15 workforce councils. 43.16 (c) The head of the workforce transition team shall consult 43.17 with all appropriate state authorized councils, including, but 43.18 not limited to, the state rehabilitation advisory council, the 43.19 statewide independent living council, the rehabilitation 43.20 advisory council for the blind, and the governor's council on 43.21 developmental disabilities, prior to making recommendations to 43.22 the legislature on the appropriate transfer of responsibilities 43.23 for administration of those programs for which the councils are 43.24 authorized. 43.25 (d) The head of the workforce transition team shall consult 43.26 with the SAFE coordinating council, prior to making any 43.27 recommendation to the legislature, on the appropriate state 43.28 agency in which to house the juvenile justice program, the 43.29 Minnesota city grants program, and the youth intervention 43.30 program in the department of economic security. 43.31 (e) The head of the workforce transition team shall consult 43.32 and meet with the representatives of the collective bargaining 43.33 units for state employees affected by the transfers of 43.34 responsibilities under this act, including the representatives 43.35 of the two affected AFL-CIO affiliates and the representative of 43.36 another affected major statewide labor organization. 44.1 (f) The head of the workforce transition team shall consult 44.2 with the commissioners of economic security, trade and economic 44.3 development, and labor and industry, and the cochairs of the 44.4 legislative task force on workforce development prior to making 44.5 any recommendation to the legislature under paragraph (a). 44.6 (g) The head of the workforce transition team shall consult 44.7 with local workforce councils and local elected officials. 44.8 (h) The head of the workforce transition team shall consult 44.9 with at least one consumer who receives services through the 44.10 Minnesota Family Investment Program, or an advocate for such 44.11 consumers. 44.12 (i) The head of the workforce transition team shall consult 44.13 with nonprofit job training providers. 44.14 (j) In determining the placement in state government of 44.15 state services for the blind, the head of the transition team 44.16 shall consult with representatives from each of the following 44.17 groups: 44.18 (1) the rehabilitation council for the blind; 44.19 (2) the national federation of the blind; 44.20 (3) the American council of the blind; and 44.21 (4) the united blind of Minnesota. 44.22 (k) The commissioners of trade and economic development, 44.23 economic security, and labor and industry, must cooperate with 44.24 and provide staff support to the workforce transition team. The 44.25 support includes, but is not limited to, professional, 44.26 technical, and clerical staff necessary to fully assess the 44.27 programs under paragraph (a). 44.28 (l) The transition team shall propose revisions to the 44.29 state unified plan submitted to the United States Department of 44.30 Labor under the Workforce Investment Act of 1998 to remove all 44.31 references to Goals 2000, federally mandated school-to-work 44.32 programs, and linkages between K-12 education and workforce 44.33 development, and to reflect consideration of the concerns of the 44.34 parties with whom the transition team is required by law to 44.35 consult. Career tracking of individuals, or contractual 44.36 agreements to undertake the same, are not authorized. The 45.1 proposed plan revisions shall be submitted to the legislature by 45.2 December 15, 2001. 45.3 (m) The transition team shall determine where to house the 45.4 unemployment insurance program, taking into consideration the 45.5 possibilities of transferring the program to the department of 45.6 labor and industry or the new agency, the department of jobs, 45.7 economic development, and trade. 45.8 (n) The transition team shall, as part of its consideration 45.9 of the unemployment insurance program, study the feasibility of 45.10 transferring all or part of the responsibility for collecting 45.11 unemployment insurance taxes and other assessments collected 45.12 with those taxes to the department of revenue. 45.13 (o) The transition team's report to the legislature shall 45.14 include consideration of whether the Minnesota career 45.15 information system operated by the department of children, 45.16 families, and learning and the ISEEK system operated by the 45.17 Minnesota state colleges and universities are duplicative, and 45.18 if so, the potential for a consolidated system. The report 45.19 shall also recommend where such a consolidated system, if 45.20 appropriate, should be housed. 45.21 (p) The head of the workforce transition team shall develop 45.22 recommendations for statutory and administrative changes 45.23 necessary to strengthen the oversight and management 45.24 responsibilities of local workforce councils and local elected 45.25 officials to ensure the efficient operation of the workforce 45.26 center system and to ensure better coordination of service 45.27 delivery at the community level. 45.28 (q) Notwithstanding any law to the contrary, the head of 45.29 the workforce transition team shall have access to private or 45.30 nonpublic data necessary to carry out the objective of paragraph 45.31 (a). 45.32 (r) The head of the workforce transition team shall be in 45.33 the unclassified service of the state and may hire employees in 45.34 the unclassified service. 45.35 (s) This section shall expire June 30, 2002. 45.36 [EFFECTIVE DATE.] This section is effective July 1, 2001. 46.1 Sec. 29. [CAREER TRACKING.] 46.2 As used in this section, "career tracking" is defined as 46.3 identifying individuals for the selective presentation of 46.4 specific course offerings or training programs to students or 46.5 prospective trainees, based upon a government entity's or a 46.6 workforce council's preference for an industry, a company, or a 46.7 skill set. Career tracking is prohibited. 46.8 Sec. 30. [TRANSFER.] 46.9 The responsibility for administration of the energy 46.10 assistance, reach out for warmth, and weatherization programs in 46.11 the department of economic security is transferred to the 46.12 department of commerce. 46.13 [EFFECTIVE DATE.] This section is effective July 1, 2002. 46.14 Sec. 31. [ACCOUNT ESTABLISHED.] 46.15 The contingency account is created in the special revenue 46.16 fund. The contingency account in the special revenue fund 46.17 expires on June 30, 2003, and any remaining balance is canceled 46.18 and transferred to the general fund. 46.19 [EFFECTIVE DATE.] This section is effective the day 46.20 following final enactment. 46.21 Sec. 32. [TRANSFER.] 46.22 $1,538,000 is transferred in fiscal year 2001 from the 46.23 general fund to the contingency account in the special revenue 46.24 fund. 46.25 [EFFECTIVE DATE.] This section is effective the day 46.26 following final enactment. 46.27 Sec. 33. [MINNESOTA WORKERS' COMPENSATION ASSIGNED RISK 46.28 PLAN SURPLUS TRANSFER.] 46.29 On or before June 30, 2001, the commissioner of finance 46.30 must transfer $73,000,000 of the assets of the assigned risk 46.31 plan to the contingency account in the special revenue fund. 46.32 [EFFECTIVE DATE.] This section is effective the day 46.33 following final enactment. 46.34 Sec. 34. [TRAINING FOR LOW-INCOME WORKERS.] 46.35 The job skills partnership board shall operate a pilot 46.36 project to fund creative job training programs for low-income 47.1 individuals. Funds shall be used for grants for projects that 47.2 will serve individuals who are training-ready, have incomes 47.3 below 200 percent of the federal poverty line, and have 47.4 dependent children, but are not eligible for training services 47.5 under the Minnesota Family Investment Program. Training funded 47.6 with grants provided under this section should be flexible and 47.7 responsive in order to maximize the ability of funded programs 47.8 to adapt to changes in economic and business conditions. 47.9 Eligible recipients of grants include: 47.10 (1) local workforce boards, nonprofit job training 47.11 providers, and educational institutions; and 47.12 (2) partnerships of two or more eligible recipients under 47.13 clause (1), or partnerships of one or more eligible recipients 47.14 and the Council on Black Minnesotans, the Chicano-Latino Affairs 47.15 Council, the Council on Asian-Pacific Minnesotans, the Indian 47.16 Affairs Council, the Minneapolis Community Development Agency, 47.17 or the St. Paul port authority. 47.18 The job skills partnership board shall report to the 47.19 legislature on the performance and progress of the pilot project 47.20 on or before September 1, 2003. 47.21 Sec. 35. [WORKFORCE ENHANCEMENT FEE.] 47.22 Subdivision 1. [FEE.] Notwithstanding Minnesota Statutes, 47.23 section 268.022, effective January 1, 2002, the special 47.24 assessment under that section on taxable wages as defined in 47.25 Minnesota Statutes, section 268.035, subdivision 24, is 47.26 suspended until December 31, 2005. Effective January 1, 2002, 47.27 there shall be assessed, in addition to unemployment taxes due 47.28 under Minnesota Statutes, section 268.051, a workforce 47.29 enhancement fee of .07 percent on taxable wages. This fee shall 47.30 be due and be paid on the same schedule and in the same manner 47.31 as unemployment taxes under Minnesota Statutes, section 47.32 268.051. Any amount past due under this section shall be 47.33 subject to the same interest and collection provisions as 47.34 unemployment taxes. This fee shall expire on December 31, 2005. 47.35 Subd. 2. [USE OF FUNDS COLLECTED.] An amount equal to .05 47.36 percent on taxable wages shall be deposited in the workforce 48.1 development fund provided for under Minnesota Statutes, section 48.2 268.022, subdivision 2. An amount equal to .02 percent on 48.3 taxable wages, less reimbursement for collection costs of the 48.4 total amount of the fee, shall be deposited in the unemployment 48.5 insurance technology initiative account provided for in section 48.6 32. 48.7 Sec. 36. [UNEMPLOYMENT INSURANCE TECHNOLOGY INITIATIVE.] 48.8 Subdivision 1. [PURPOSE; SET-ASIDE.] The unemployment 48.9 insurance technology initiative involves a set-aside of a 48.10 portion of the money that would otherwise go into the 48.11 unemployment insurance trust fund. This money will be used on 48.12 technology to substantially enhance unemployment insurance 48.13 services to both applicants for benefits and employers. 48.14 Subd. 2. [TAX REDUCTION.] Notwithstanding Minnesota 48.15 Statutes, section 268.051, subdivision 2, paragraph (b), 48.16 effective January 1, 2002, the base unemployment tax on all 48.17 taxable wages shall be reduced by .02 percent. This subdivision 48.18 expires December 31, 2005. 48.19 Subd. 3. [ACCOUNT.] (a) Effective January 1, 2002, the 48.20 unemployment insurance technology initiative account is created 48.21 as a special account in the special revenue fund in the state 48.22 treasury. This account lapses on December 31, 2007, and any 48.23 money remaining in the account on that date shall be paid into 48.24 the unemployment insurance program trust fund. This account 48.25 consists of all money collected by the workforce enhancement fee 48.26 provided by section 31 and all interest earned on any money in 48.27 this account, less reimbursement of collection costs under 48.28 paragraph (e). 48.29 (b) Money in the unemployment insurance technology 48.30 initiative account is appropriated to the commissioner of 48.31 economic security and shall be allocated and expended by the 48.32 commissioner only for technology initiatives to enhance 48.33 unemployment insurance services for both applicants for benefits 48.34 and employers. 48.35 (c) Any funds not allocated, obligated, or expended in a 48.36 fiscal year shall be available for allocation, obligation, and 49.1 expenditure in the following fiscal year. 49.2 (d) If the total amount in the account exceeds $30,000,000 49.3 on June 30 of any year, the excess shall be paid into the 49.4 unemployment insurance program trust fund. 49.5 (e) Because the administrative cost of collection of the 49.6 workforce enhancement fee is borne by federal money made 49.7 available only to administer the unemployment insurance program, 49.8 the commissioner shall negotiate with the United States 49.9 Department of Labor the amount of any reimbursement for costs 49.10 related to the collection of the fee. Because the reimbursement 49.11 is subsequently made available by the United States Department 49.12 of Labor to the commissioner for administration of the 49.13 unemployment insurance program, the commissioner shall expend 49.14 the reimbursement on personnel costs of operating the 49.15 unemployment insurance program's technology services. 49.16 Sec. 37. [SUNSET.] 49.17 Section 35 expires on December 31, 2005. Section 36 49.18 expires on December 31, 2007. 49.19 Sec. 38. [IMPORTANCE.] 49.20 The Little Elk Heritage Preserve, a 92.25 acre 49.21 archaeological park and nature preserve on the Mississippi river 49.22 near Little Falls, contains a unique cluster of cultural and 49.23 natural resources that together document diverse human 49.24 activities and connections to natural environments in central 49.25 Minnesota over thousands of years. The resources at Little Elk 49.26 Heritage Preserve include archaeological remains identified with 49.27 ancient native America, the colonial fur trade, early Dakota and 49.28 Ojibwe life, Black and women's history, Mississippi valley 49.29 exploration, a mission farm and school, United States Indian 49.30 treaties, territorial period homesteading and townsite 49.31 development, the conflict of 1862, hunting, gathering, 49.32 portaging, quarrying, logging, farming, dam building, grist 49.33 milling, saw milling, and wood products manufacturing. Ongoing 49.34 research programs explore and interpret these important 49.35 resources. 49.36 Sec. 39. [HISTORIC SITE DEFINITION; LITTLE ELK HERITAGE 50.1 PRESERVE.] 50.2 The state register of historic places listing for the 50.3 Little Elk Heritage Preserve includes those portions of the 50.4 preserve that contain significant archaeological or historic 50.5 resources. 50.6 Sec. 40. [TRANSFER TO COUNTY HISTORICAL SOCIETY.] 50.7 Notwithstanding Minnesota Statutes 2000, chapter 134 and 50.8 section 138.053, the city of Anoka may transfer before January 50.9 1, 2002, the balance in the city of Anoka library fund to the 50.10 Anoka county historical society for the society's use for any 50.11 Anoka county historical society purpose. 50.12 Sec. 41. [BOARD OF ACCOUNTANCY FEE.] 50.13 The legislature approves the board of accountancy's 50.14 proposed fee increase included in the governor's 2002-2003 50.15 biennial budget. 50.16 Sec. 42. [ELECTRONIC REPORTING; FORMAT.] 50.17 In developing electronic reporting systems developed by the 50.18 department of labor and industry for use in the administration 50.19 of the workers' compensation system, the department must consult 50.20 with the International Association of Industrial Accident Boards 50.21 and Commissions so that the department's format of data elements 50.22 and their definitions conform as closely as possible to the data 50.23 dictionary used by the IAIABC. 50.24 Sec. 43. [REPEALER.] 50.25 (a) Minnesota Statutes 2000, sections 268.96; 268.975; 50.26 268.976; 268.9771; 268.978; 268.9781; 268.9782; 268.9783; 50.27 268.979; and 268.98, are repealed. 50.28 (b) Minnesota Statutes 2000, sections 184.22, subdivisions 50.29 2, 3, 4, and 5; and 184.37, subdivision 2, are repealed. 50.30 (c) Minnesota Statutes 2000, sections 138A.01; 138A.02; 50.31 138A.03; 138A.04; 138A.05; and 138A.06, are repealed. 50.32 [EFFECTIVE DATE.] Paragraph (b) of this section is 50.33 effective July 1, 2003. 50.34 Sec. 44. [EFFECTIVE DATE.] 50.35 Laws 2000, chapter 492, article 1, section 60, is effective 50.36 for grants and loans for which application is made after July 1, 51.1 2000. 51.2 [EFFECTIVE DATE.] This section is effective the day 51.3 following final enactment. 51.4 ARTICLE 3 51.5 HOUSING PROGRAM AND TECHNICAL CHANGES 51.6 Section 1. Minnesota Statutes 2000, section 462A.01, is 51.7 amended to read: 51.8 462A.01 [CITATION.] 51.9 Sections 462A.01 to462A.24462A.33 shall be known as and 51.10 may be cited as the "Minnesota Housing Finance Agency Law of 51.11 1971." 51.12 Sec. 2. Minnesota Statutes 2000, section 462A.03, 51.13 subdivision 1, is amended to read: 51.14 Subdivision 1. [APPLICATION.] For the purpose ofsections51.15462A.01 to 462A.24this chapter, the terms defined in this 51.16 section have the meanings ascribed to them. 51.17 Sec. 3. Minnesota Statutes 2000, section 462A.03, 51.18 subdivision 6, is amended to read: 51.19 Subd. 6. [AGENCY.] "Agency" means the Minnesota housing 51.20 finance agency created bysections 462A.01 to 462A.24this 51.21 chapter. 51.22 Sec. 4. Minnesota Statutes 2000, section 462A.03, 51.23 subdivision 10, is amended to read: 51.24 Subd. 10. [PERSONS AND FAMILIES OF LOW AND MODERATE 51.25 INCOME.] "Persons and families of low and moderate income" means 51.26 persons and families, irrespective of race, creed, national 51.27 origin, sex, or status with respect to guardianship or 51.28 conservatorship, determined by the agency to require such 51.29 assistance as is made available bysections 462A.01 to 462A.2451.30 this chapter on account of personal or family income not 51.31 sufficient to afford adequate housing. In making such 51.32 determination the agency shall take into account the following: 51.33 (a) The amount of the total income of such persons and families 51.34 available for housing needs, (b) the size of the family, (c) the 51.35 cost and condition of housing facilities available, (d) the 51.36 eligibility of such persons and families to compete successfully 52.1 in the normal housing market and to pay the amounts at which 52.2 private enterprise is providing sanitary, decent and safe 52.3 housing. In the case of federally subsidized mortgages with 52.4 respect to which income limits have been established by any 52.5 agency of the federal government having jurisdiction thereover 52.6 for the purpose of defining eligibility of low and moderate 52.7 income families, the limits so established shall govern under 52.8 theprovisionprovisions ofsections 462A.01 to 462A.24this 52.9 chapter. In all other cases income limits for the purpose of 52.10 defining low or moderate income persons shall be established by 52.11 the agency by rules. 52.12 Sec. 5. Minnesota Statutes 2000, section 462A.03, is 52.13 amended by adding a subdivision to read: 52.14 Subd. 23. [METROPOLITAN AREA.] "Metropolitan area" has the 52.15 meaning given in section 473.121, subdivision 2. 52.16 Sec. 6. Minnesota Statutes 2000, section 462A.04, 52.17 subdivision 6, is amended to read: 52.18 Subd. 6. [MANAGEMENT, CONTROL.] The management and control 52.19 of the agency shall be vested solely in the members in 52.20 accordance with the provisions ofsections 462A.01 to 462A.2452.21 this chapter. 52.22 Sec. 7. Minnesota Statutes 2000, section 462A.05, 52.23 subdivision 14, is amended to read: 52.24 Subd. 14. [REHABILITATION LOANS.] It may agree to 52.25 purchase, make, or otherwise participate in the making, and may 52.26 enter into commitments for the purchase, making, or 52.27 participation in the making, of eligible loans for 52.28 rehabilitation to persons and families of low and moderate 52.29 income, and to owners of existing residential housing for 52.30 occupancy by such persons and families, for the rehabilitation 52.31 of existing residential housing owned by them. The loans may be 52.32 insured or uninsured and may be made with security, or may be 52.33 unsecured, as the agency deems advisable. The loans may be in 52.34 addition to or in combination with long-term eligible mortgage 52.35 loans under subdivision 3. They may be made in amounts 52.36 sufficient to refinance existing indebtedness secured by the 53.1 property, if refinancing is determined by the agency to be 53.2 necessary to permit the owner to meet the owner's housing cost 53.3 without expending an unreasonable portion of the owner's income 53.4 thereon. No loan for rehabilitation shall be made unless the 53.5 agency determines that the loan will be used primarily to make 53.6 the housing more desirable to live in, to increase the market 53.7 value of the housing, for compliance with state, county or 53.8 municipal building, housing maintenance, fire, health or similar 53.9 codes and standards applicable to housing, or to accomplish 53.10 energy conservation related improvements. In unincorporated 53.11 areas and municipalities not having codes and standards, the 53.12 agency may, solely for the purpose of administering the 53.13 provisions of this chapter, establish codes and standards. 53.14 Except for accessibility improvements under this subdivision and 53.15 subdivisions 14a and 24, clause (1), no secured loan for 53.16 rehabilitation of any property shall be made in an amount which, 53.17 with all other existing indebtedness secured by the property, 53.18 would exceed 110 percent of its market value, as determined by 53.19 the agency. No loan under this subdivision shall be denied 53.20 solely because the loan will not be used for placing the 53.21 residential housing in full compliance with all state, county, 53.22 or municipal building, housing maintenance, fire, health, or 53.23 similar codes and standards applicable to housing. 53.24 Rehabilitation loans shall be made only when the agency 53.25 determines that financing is not otherwise available, in whole 53.26 or in part, from private lenders upon equivalent terms and 53.27 conditions. Accessibility rehabilitation loans authorized under 53.28 this subdivision may be made to eligible persons and families 53.29 without limitations relating to the maximum incomes of the 53.30 borrowers if: 53.31 (1) the borrower or a member of the borrower's family 53.32 requires a level of care provided in a hospital, skilled nursing 53.33 facility, or intermediate care facility for persons with mental 53.34 retardation or related conditions; 53.35 (2) home care is appropriate; and 53.36 (3) the improvement will enable the borrower or a member of 54.1 the borrower's family to reside in the housing. 54.2 The agency may waive any requirement that the housing units in a 54.3 residential housing development be rented to persons of low and 54.4 moderate income if the development consists of four or less 54.5 dwelling units, one of which is occupied by the owner. 54.6 Sec. 8. Minnesota Statutes 2000, section 462A.05, 54.7 subdivision 14a, is amended to read: 54.8 Subd. 14a. [REHABILITATION LOANS; EXISTING OWNER OCCUPIED 54.9 RESIDENTIAL HOUSING.] It may make loans to persons and families 54.10 of low and moderate income to rehabilitate or to assist in 54.11 rehabilitating existing residential housing owned and occupied 54.12 by those persons or families. No loan shall be made unless the 54.13 agency determines that the loan will be used primarily for 54.14 rehabilitation work necessary for health or safety, essential 54.15 accessibility improvements, or to improve the energy efficiency 54.16 of the dwelling. No loan for rehabilitation of owner occupied 54.17 residential housing shall be denied solely because the loan will 54.18 not be used for placing the residential housing in full 54.19 compliance with all state, county or municipal building, housing 54.20 maintenance, fire, health or similar codes and standards 54.21 applicable to housing. The amount of any loan shall not exceed 54.22 the lesser of (a) a maximum loan amount determined under rules 54.23 adopted by the agency not to exceed $20,000, or (b) the actual 54.24 cost of the work performed, or (c) that portion of the cost of 54.25 rehabilitation which the agency determines cannot otherwise be 54.26 paid by the person or family without the expenditure of an 54.27 unreasonable portion of the income of the person or family. 54.28 Loans made in whole or in part with federal funds may exceed the 54.29 maximum loan amount to the extent necessary to comply with 54.30 federal lead abatement requirements prescribed by the funding 54.31 source. In making loans, the agency shall determine the 54.32 circumstances under which and the terms and conditions under 54.33 which all or any portion of the loan will be repaid and shall 54.34 determine the appropriate security for the repayment of the 54.35 loan. Loans pursuant to this subdivision may be made with or 54.36 without interest or periodic payments.Loans made without55.1interest or periodic payments need not be repaid by the borrower55.2if the property for which the loan is made has not been sold,55.3transferred, or otherwise conveyed nor has it ceased to be the55.4principal place of residence of the borrower, within ten years55.5after the date of the loan.55.6 Sec. 9. Minnesota Statutes 2000, section 462A.05, 55.7 subdivision 16, is amended to read: 55.8 Subd. 16. [PAYMENTS FOR STRUCTURAL DEFECTS.] (a) It may 55.9 make payments or expenditures from the housing development fund 55.10 to persons of low or moderate income, who are recipients of an 55.11 eligible loan as defined in section 462A.03, subdivision 11, or 55.12 who have purchased residential housing from a recipient of such 55.13 eligible loan, and who are owners and occupants of residential 55.14 housing constructed or rehabilitated undersections 462A.01 to55.15462A.24this chapter, when, in the agency's determination, such 55.16 residential housing contains defects or omissions which affect 55.17 the structural soundness, or the use and the livability of such 55.18 housing, including but not limited to defects or omissions in 55.19 materials, hardware, fixtures, design, workmanship and 55.20 landscaping of whatever kind and nature incorporated in said 55.21 housing and which are covered by an agency approved warranty, 55.22 for the purposes of (i) correcting such defects, or (ii) paying 55.23 the claims of the owner arising from such defects, provided, 55.24 that this authority shall exist only if the owner has requested 55.25 assistance from the agency not later than four years after the 55.26 issuance of the eligible loan, or where such residential housing 55.27 was rehabilitated undersections 462A.01 to 462A.24this chapter 55.28 only if the owner has requested assistance from the agency not 55.29 later than two years after the issuance of the eligible loan. 55.30 (b) If such owner elects to receive payments or 55.31 expenditures pursuant to this section, the agency is subrogated 55.32 to the right of such owner to recover damages against any party 55.33 or persons reasonably calculated to be responsible for such 55.34 damages. 55.35 (c) The agency may require from the seller of such 55.36 residential housing, or the contractor responsible for the 56.1 construction or rehabilitation of such housing, an agreement to 56.2 reimburse the agency for any payments and expenditures made 56.3 pursuant to this subdivision with respect to such residential 56.4 housing. 56.5 Sec. 10. Minnesota Statutes 2000, section 462A.05, 56.6 subdivision 22, is amended to read: 56.7 Subd. 22. [LOANS TO FINANCIAL INSTITUTIONS.] It may make 56.8 or participate in the making and enter into commitments for the 56.9 making of loans to any banking institution, savings association, 56.10 or other lender approved by the members, organized under the 56.11 laws of this or any other state or of the United States having 56.12 an office in this state, notwithstanding the provisions of 56.13 section 462A.03, subdivision 13, if it first determines that the 56.14 proceeds of such loans will be utilized for the purpose of 56.15 making loans to or for the benefit of eligible persons and 56.16 families as provided and in accordance withsections 462A.01 to56.17462A.24this chapter. Loans pursuant to this subdivision shall 56.18 be secured, repaid and bear interest at the rate as determined 56.19 by the members. 56.20 Sec. 11. Minnesota Statutes 2000, section 462A.05, 56.21 subdivision 26, is amended to read: 56.22 Subd. 26. [FORMATION OF NONPROFIT CORPORATIONS.] It may, 56.23 when the agency determines it is necessary or desirable to carry 56.24 out its purposes and to exercise any or all of the powers 56.25 conferred upon itunder sections 462A.01 to 462A.24by this 56.26 chapter, and subject to the provisions of subdivision 27, form 56.27 or consent to the formation of one or more corporations under 56.28 the Minnesota Nonprofit Corporation Act, as amended, or under 56.29 other laws of this state. The agency may be a member of the 56.30 corporations, and the members and employees of the agency from 56.31 time to time may be members of the board of directors or 56.32 officers of the corporations. The agency may enter into 56.33 agreements with them providing for the agency to approve various 56.34 aspects of their operations. The agency may capitalize the 56.35 corporations and may acquire all or a part of the corporations' 56.36 share or member certificates. The agency may require that it 57.1 approve aspects of the operation of the corporations including 57.2 the corporations' articles of incorporation or bylaws, 57.3 directors, projects and expenditures, and the sale or conveyance 57.4 of projects, and the issuance of obligations. The agency may 57.5 agree to and may take title to property of the corporations upon 57.6 their dissolution. 57.7 Sec. 12. Minnesota Statutes 2000, section 462A.06, 57.8 subdivision 1, is amended to read: 57.9 Subdivision 1. [LISTED HERE.] For the purpose of 57.10 exercising the specific powers granted in section 462A.05 and 57.11 effectuating the other purposes ofsections 462A.01 to 462A.2457.12 this chapter, the agency shall have the general powers granted 57.13 in this section. 57.14 Sec. 13. Minnesota Statutes 2000, section 462A.06, 57.15 subdivision 4, is amended to read: 57.16 Subd. 4. [RULES.] It may make, and from time to time, 57.17 amend and repeal rules not inconsistent with the provisions of 57.18sections 462A.01 to 462A.24this chapter. 57.19 Sec. 14. Minnesota Statutes 2000, section 462A.07, 57.20 subdivision 10, is amended to read: 57.21 Subd. 10. [HUMAN RIGHTS.] It may establish and enforce 57.22 such rules as may be necessary to insure compliance with chapter 57.23 363, and to insure that occupancy of housing assisted under 57.24sections 462A.01 to 462A.24this chapter shall be open to all 57.25 persons, and that contractors and subcontractors engaged in the 57.26 construction of such housing shall provide an equal opportunity 57.27 for employment to all persons, without discrimination as to 57.28 race, color, creed, religion, national origin, sex, marital 57.29 status, age, and status with regard to public assistance or 57.30 disability. 57.31 Sec. 15. Minnesota Statutes 2000, section 462A.07, 57.32 subdivision 12, is amended to read: 57.33 Subd. 12. [USE OF OTHER AGENCIES.] It may delegate, use or 57.34 employ any federal, state, regional or local public or private 57.35 agency or organization, including organizations of physically 57.36 handicapped persons, upon terms it deems necessary or desirable, 58.1 to assist in the exercise of any of the powers grantedin58.2sections 462A.01 to 462A.24by this chapter and to carry out the 58.3 objectives ofsections 462A.01 to 462A.24this chapter and may 58.4 pay for the services from the housing development fund. 58.5 Sec. 16. Minnesota Statutes 2000, section 462A.073, 58.6 subdivision 1, is amended to read: 58.7 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 58.8 section, the following terms have the meanings given them. 58.9 (b) "Existing housing" means single-family housing that (i) 58.10 has been previously occupied prior to the first day of the 58.11 origination period; or (ii) has been available for occupancy for 58.12 at least 12 months but has not been previously occupied. 58.13 (c)"Metropolitan area" means the metropolitan area as58.14defined in section 473.121, subdivision 2.58.15(d)"New housing" means single-family housing that has not 58.16 been previously occupied. 58.17(e)(d) "Origination period" means the period that loans 58.18 financed with the proceeds of qualified mortgage revenue bonds 58.19 are available for the purchase of single-family housing. The 58.20 origination period begins when financing actually becomes 58.21 available to the borrowers for loans. 58.22(f)(e) "Redevelopment area" means a compact and contiguous 58.23 area within which the city finds by resolution that 70 percent 58.24 of the parcels are occupied by buildings, streets, utilities, or 58.25 other improvements and more than 25 percent of the buildings, 58.26 not including outbuildings, are structurally substandard to a 58.27 degree requiring substantial renovation or clearance. 58.28(g)(f) "Single-family housing" means dwelling units 58.29 eligible to be financed from the proceeds of qualified mortgage 58.30 revenue bonds under federal law. 58.31(h)(g) "Structurally substandard" means containing defects 58.32 in structural elements or a combination of deficiencies in 58.33 essential utilities and facilities, light, ventilation, fire 58.34 protection including adequate egress, layout and condition of 58.35 interior partitions, or similar factors, which defects or 58.36 deficiencies are of sufficient total significance to justify 59.1 substantial renovation or clearance. 59.2 Sec. 17. Minnesota Statutes 2000, section 462A.15, is 59.3 amended to read: 59.4 462A.15 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 59.5 The state pledges and agrees with the holders of any notes 59.6 or bonds issued undersections 462A.01 to 462A.24this chapter, 59.7 that the state will not limit or alter the rights vested in the 59.8 agency to fulfill the terms of any agreements made with the 59.9 holders thereof, or in any way impair the rights and remedies of 59.10 the holders until the notes or bonds, together with the interest 59.11 thereon, with interest on any unpaid installments of interest, 59.12 and all costs and expenses in connection with any action or 59.13 proceeding by or on behalf of such holders, are fully met and 59.14 discharged. The agency is authorized to include this pledge and 59.15 agreement of the state in any agreement with the holders of such 59.16 notes or bonds. 59.17 Sec. 18. Minnesota Statutes 2000, section 462A.17, 59.18 subdivision 3, is amended to read: 59.19 Subd. 3. [RAMSEY COUNTY VENUE; NOTICE OF PRINCIPAL DUE.] 59.20 The venue of any action or proceedings brought by the trustees 59.21 undersections 462A.01 to 462A.24this chapter, shall be in 59.22 Ramsey county. Before declaring the principal of notes or bonds 59.23 due and payable, the trustee shall first give 30 days' notice in 59.24 writing to the governor, to the agency and to the state 59.25 treasurer. 59.26 Sec. 19. Minnesota Statutes 2000, section 462A.20, 59.27 subdivision 3, is amended to read: 59.28 Subd. 3. [SEPARATE ACCOUNTS; TRANSFERS; LIMITS.] Whenever 59.29 any money is appropriated by the state to the agency solely for 59.30 a specified purpose or purposes, the agency shall establish a 59.31 separate bookkeeping account or accounts in the housing 59.32 development fund to record the receipt and disbursement of such 59.33 money and of the income, gain, and loss from the investment and 59.34 reinvestment thereof. Earnings from investment of any amounts 59.35 appropriated by the state to the agency for a specified purpose 59.36 or purposes may be aggregated. The costs and expenses necessary 60.1 and incidental to the development and operation of all programs 60.2 funded by state appropriations may be paid from the aggregated 60.3 earnings from investments prior to periodic distributions of 60.4 earnings to separate accounts to be used for the same purpose as 60.5 the respective original appropriation. The agency may transfer 60.6 unencumbered balances from one appropriated account to another, 60.7 provided that no money appropriated for the purpose of agency 60.8 loan programs may be transferred to an account to be used for 60.9 making grants, except that money appropriated for the purpose of 60.10 section 462A.05, subdivision 14a, may be transferred for the 60.11 purpose of section 462A.05, subdivision 15a. 60.12 Sec. 20. [462A.2035] [MANUFACTURED HOME PARK REDEVELOPMENT 60.13 PROGRAM.] 60.14 Subdivision 1. [ESTABLISHMENT.] The agency shall establish 60.15 a manufactured home park redevelopment program for the purpose 60.16 of making manufactured home park redevelopment grants or loans 60.17 to cities, counties, or community action programs. Cities, 60.18 counties, and community action programs may use grants and loans 60.19 under this program to: 60.20 (1) assist with the purchase of existing manufactured homes 60.21 in manufactured home parks with preference given to older 60.22 manufactured homes and buy-out assistance not to exceed $3,000 60.23 per home; 60.24 (2) provide down payment assistance to prospective 60.25 homeowners who have qualified through a bank or financial 60.26 institution for a major part of a loan for the purchase of new 60.27 manufactured homes, with preference given to replacing existing 60.28 homes in manufactured home parks and maximum down payment 60.29 assistance not to exceed $10,000 per home; and 60.30 (3) make improvements in manufactured home parks as 60.31 requested by the grant recipient. 60.32 Subd. 2. [ELIGIBILITY REQUIREMENTS.] Households assisted 60.33 under this section must have an annual household income at or 60.34 below 80 percent of the area median household income. Cities, 60.35 counties, or community action programs receiving funds under the 60.36 program must give preference to households at or below 50 61.1 percent of the area median household income. Participation in 61.2 the program is voluntary and no park resident shall be required 61.3 to participate. 61.4 Sec. 21. Minnesota Statutes 2000, section 462A.204, 61.5 subdivision 3, is amended to read: 61.6 Subd. 3. [SET ASIDE.] At least one grant must be awarded 61.7 in an area located outside of the metropolitan areaas defined61.8in section 473.121, subdivision 2. A county, a group of 61.9 contiguous counties jointly acting together, or a 61.10 community-based nonprofit organization with a sponsoring 61.11 resolution from each of the county boards of the counties 61.12 located within its operating jurisdiction may apply for and 61.13 receive grants for areas located outside the metropolitan area. 61.14 Sec. 22. Minnesota Statutes 2000, section 462A.205, 61.15 subdivision 4, is amended to read: 61.16 Subd. 4. [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 61.17 subdivision applies to both the voucher option and the 61.18 project-based voucher option. 61.19 (b) Within the limits of available appropriations, eligible 61.20 families may receive monthly rent assistance for a 60-month 61.21 period starting with the month the family first receives rent 61.22 assistance under this section. The amount of the family's 61.23 portion of the rental payment is equal to at least 30 percent of 61.24 gross income. 61.25 (c) The rent assistance must be paid by the local housing 61.26 organization to the property owner. 61.27 (d) Subject to the limitations in paragraph (e), the amount 61.28 of rent assistance is the difference between the rent and the 61.29 family's portion of the rental payment. 61.30 (e) In no case: 61.31 (1) may the amount of monthly rent assistance be more than 61.32 $250 for housing located within the metropolitan area, as61.33defined in section 473.121, subdivision 2,or more than $200 for 61.34 housing located outside of the metropolitan area; 61.35 (2) may the owner receive more rent for assisted units than 61.36 for comparable unassisted units; nor 62.1 (3) may the amount of monthly rent assistance be more than 62.2 the difference between the family's portion of the rental 62.3 payment and the fair market rent for the unit as determined by 62.4 the Department of Housing and Urban Development. 62.5 Sec. 23. Minnesota Statutes 2000, section 462A.205, 62.6 subdivision 4a, is amended to read: 62.7 Subd. 4a. [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 62.8 the monthly rent assistance authorized under subdivision 4, rent 62.9 assistance may include up to $200 for a security deposit for 62.10 housing located outside the metropolitan area, as defined in62.11section 473.121, subdivision 2,and up to $250 for a security 62.12 deposit for housing located within the metropolitan area. 62.13 Sec. 24. Minnesota Statutes 2000, section 462A.2091, 62.14 subdivision 3, is amended to read: 62.15 Subd. 3. [ELIGIBLE PROPERTY.] Contracts for deed eligible 62.16 for refinancing with guarantee fund assistance must be for the 62.17 purchase of an owner-occupied single-family or duplex 62.18 structure. In a city of the first class in the metropolitan 62.19 area,as defined in section 473.121, subdivision 2,eligible 62.20 properties must be located in an area in which at least one 62.21 census tract meets at least three of the following four criteria: 62.22 (1) at least 70 percent of the housing structures were 62.23 built before 1960; 62.24 (2) at least 60 percent of the single-family housing is 62.25 owner-occupied; 62.26 (3) the median market value of the area's owner-occupied 62.27 housing, as recorded in the most recent federal decennial 62.28 census, is not more than 100 percent of the purchase price limit 62.29 for existing homes eligible for purchase in the area under the 62.30 agency's home mortgage loan program; and 62.31 (4) between 1980 and 1990, the rate of owner occupancy of 62.32 residential properties in the area declined by at least five 62.33 percent, or at least 80 percent of the residential properties in 62.34 the area are rental properties. 62.35 The area must include eight blocks in any direction from 62.36 the census tract. Priority must be given for property located 63.1 in an area that meets all four criteria. 63.2 Sec. 25. Minnesota Statutes 2000, section 462A.2093, 63.3 subdivision 1, is amended to read: 63.4 Subdivision 1. [DEFINITIONS.] For purposes of this 63.5 section, the following terms have the meanings given them in 63.6 this subdivision. 63.7 (a) "Municipality" means a town or a statutory or home rule 63.8 city. 63.9 (b) "Nonmetropolitan" means the area of the state outside 63.10 of the metropolitan areadefined in section 473.121, subdivision63.112. 63.12 (c) "Inclusionary housing development" means a new 63.13 construction development including owner-occupied or rental 63.14 housing, or a combination of both, with a variety of prices and 63.15 designs which serve families with a range of incomes and housing 63.16 needs. 63.17 Sec. 26. Minnesota Statutes 2000, section 462A.2097, is 63.18 amended to read: 63.19 462A.2097 [RENTAL HOUSING.] 63.20 The agency may establish a tenant-based or project-based 63.21 rental housing assistance program for persons of low income or 63.22 for persons with a mental illness or families that include an 63.23 adult family member with a mental illness. Rental assistance 63.24 may be in the form of direct rental subsidies for housing for 63.25 persons or families with incomes, at the time of initial 63.26 occupancy, of up to 50 percent of the area median income as 63.27 determined by the United States Department of Housing and Urban 63.28 Development, adjusted for families of five or more. Housing for 63.29 the mentally ill must be operated in coordination with social 63.30 service providers who provide services requested by tenants. 63.31 Direct rental subsidies must be administered by the agency for 63.32 the benefit of eligible tenants. Financial assistance provided 63.33 under this section must be in the form of vendor payments 63.34 whenever possible. 63.35 Sec. 27. Minnesota Statutes 2000, section 462A.21, 63.36 subdivision 5, is amended to read: 64.1 Subd. 5. [OTHER AGENCY PURPOSES.] It may expend moneys in 64.2 the fund, not otherwise appropriated, for such other agency 64.3 purposes as previously enumerated insections 462A.01 to 462A.2464.4 this chapter as the agency in its discretion shall determine and 64.5 provide. 64.6 Sec. 28. Minnesota Statutes 2000, section 462A.21, 64.7 subdivision 10, is amended to read: 64.8 Subd. 10. [CERTAIN APPROPRIATIONS AVAILABLE UNTIL 64.9 EXPENDED.] Notwithstanding the repeal of section 462A.26 and the 64.10 provisions of section 16A.28 or any other law relating to lapse 64.11 of an appropriation, the appropriations made to the agency by 64.12 the legislature in 1976 and subsequent years are available until 64.13 fully expended, and the allocations provided in the 64.14 appropriations remain in effect. Earnings from investments of 64.15 any of the amounts appropriated to the agency are appropriated 64.16 to the agency to be used for the same purposes as the respective 64.17 original appropriations, after payment of the costs and expenses 64.18 necessary and incidental to the development and operation of the 64.19 programs authorized under this chapter. 64.20 Sec. 29. Minnesota Statutes 2000, section 462A.21, is 64.21 amended by adding a subdivision to read: 64.22 Subd. 28. [FAMILY STABILIZATION DEMONSTRATION 64.23 PROJECT.] The agency may spend money for the purposes of section 64.24 462A.205 and may pay costs and expenses necessary and incidental 64.25 to the development and operation of the project. 64.26 Sec. 30. Minnesota Statutes 2000, section 462A.21, is 64.27 amended by adding a subdivision to read: 64.28 Subd. 29. [DISASTER RELIEF CONTINGENCY FUND.] It may 64.29 establish a disaster relief contingency fund to provide loans or 64.30 grants, on terms and conditions it deems advisable, to assist 64.31 with the rehabilitation or replacement of housing damaged as a 64.32 result of a natural disaster in areas of the state designated 64.33 under presidential declarations of a major disaster. It may 64.34 transfer to the disaster relief contingency fund any repayments 64.35 of grants or loans made from appropriations specifically for 64.36 assistance after natural disasters in areas of the state 65.1 designated under a presidential declaration of a major disaster. 65.2 Sec. 31. Minnesota Statutes 2000, section 462A.21, is 65.3 amended by adding a subdivision to read: 65.4 Subd. 30. [MANUFACTURED HOME PARK REDEVELOPMENT.] The 65.5 agency may spend money for the purposes of section 462A.2035 and 65.6 may pay costs and expenses necessary and incidental to the 65.7 development and operation of the program. 65.8 Sec. 32. Minnesota Statutes 2000, section 462A.222, 65.9 subdivision 1a, is amended to read: 65.10 Subd. 1a. [DETERMINATION OF REGIONAL CREDIT POOLS.] The 65.11 agency shall divide the annual per capita amount used in 65.12 determining the state ceiling for low-income housing tax credits 65.13 provided under section 42 of the Internal Revenue Code of 1986, 65.14 as amended, into a metropolitan pool and a greater Minnesota 65.15 pool. The metropolitan pool shall serve the metropolitan area 65.16as defined in section 473.121, subdivision 2. The greater 65.17 Minnesota pool shall serve the remaining counties of the state. 65.18 The percentage of the annual per capita amount allotted to each 65.19 pool must be determined as follows: 65.20 (a) The percentage set-aside for projects involving a 65.21 qualified nonprofit organization as provided in section 42 of 65.22 the Internal Revenue Code of 1986, as amended, must be deducted 65.23 from the annual per capita amount used in determining the state 65.24 ceiling. 65.25 (b) Of the remaining amount, the metropolitan pool must be 65.26 allotted a percentage equal to the metropolitan counties' 65.27 percentage of the total number of state recipients of the 65.28 Minnesota family investment program, general assistance, 65.29 Minnesota supplemental aid, and supplemental security income in 65.30 the state, as reported annually by the department of human 65.31 services. The greater Minnesota pool must be allotted the 65.32 amount remaining after the metropolitan pool's percentage has 65.33 been allotted. 65.34 The set-aside for qualified nonprofit organizations must be 65.35 divided between the two regional pools in the same percentage as 65.36 determined for the credit amounts above. 66.1 Sec. 33. Minnesota Statutes 2000, section 462A.24, is 66.2 amended to read: 66.3 462A.24 [CONSTRUCTION.] 66.4Sections 462A.01 to 462A.24 areThis chapter is necessary 66.5 for the welfare of the state of Minnesota and its inhabitants; 66.6 therefore, it shall be liberally construed to effect its purpose. 66.7 Sec. 34. Minnesota Statutes 2000, section 462A.33, 66.8 subdivision 2, is amended to read: 66.9 Subd. 2. [ELIGIBLE RECIPIENTS.] Challenge grants or loans 66.10 may be made to a city, a private developer, a nonprofit 66.11 organization, or the owner of the housing, including 66.12 individuals. For the purpose of this section, "city" has the 66.13 meaning given it in section 462A.03, subdivision 21. Preference 66.14 shall be given to challenge grants or loans for home ownership. 66.15 To the extent practicable, grants and loans shall be made so 66.16 that an approximately equal number of housing units are financed 66.17 in the metropolitan area, as defined in section 473.121,66.18subdivision 2,and in the nonmetropolitan area. 66.19 Sec. 35. Laws 2000, chapter 488, article 8, section 2, 66.20 subdivision 6, is amended to read: 66.21 Subd. 6. Economic Support Grants 66.22 30,509,000 25,368,000 66.23 The amounts that may be spent from this 66.24 appropriation for each purpose are as 66.25 follows: 66.26 [ASSISTANCE TO FAMILIES GRANTS TANF 66.27 FORECAST ADJUSTMENT.] The federal 66.28 Temporary Assistance to Needy Families 66.29 (TANF) block grant fund appropriated to 66.30 the commissioner of human services in 66.31 Laws 1999, chapter 245, article 1, 66.32 section 2, subdivision 10, for MFIP 66.33 cash grants are reduced by $37,513,000 66.34 in fiscal year 2000 and $30,217,000 in 66.35 fiscal year 2001. 66.36 [FEDERAL TANF FUNDS.] (1) In addition 66.37 to the Federal Temporary Assistance for 66.38 Needy Families (TANF) block grant funds 66.39 appropriated to the commissioner of 66.40 human services in Laws 1999, chapter 66.41 245, article 1, section 2, subdivision 66.42 10, federal TANF funds are appropriated 66.43 to the commissioner in amounts up to 66.44 $20,000,000 in fiscal year 2000 and 66.45 $80,440,000 in fiscal year 2001. In 66.46 addition to these funds, the 66.47 commissioner may draw or transfer any 67.1 other appropriations of federal TANF 67.2 funds or transfers of federal TANF 67.3 funds that are enacted into state law. 67.4 (2) Of the amounts in clause (1), 67.5 $19,680,000 in fiscal year 2001 is for 67.6 the local intervention grants program 67.7 under Minnesota Statutes, section 67.8 256J.625 and related grant programs and 67.9 shall be expended as follows: 67.10 (a) $500,000 in fiscal year 2001 is for 67.11 a grant to the Southeast Asian MFIP 67.12 services collaborative to replicate in 67.13 a second location an existing model of 67.14 an intensive intervention transitional 67.15 employment training project which 67.16 serves TANF-eligible recipients and 67.17 which moves refugee and immigrant 67.18 welfare recipients unto unsubsidized 67.19 employment and leads to economic 67.20 self-sufficiency. This is a one-time 67.21 appropriation. 67.22 (b) $500,000 in fiscal year 2001 is for 67.23 nontraditional career assistance and 67.24 training programs under Minnesota 67.25 Statutes, section 256K.30, subdivision 67.26 4. This is a one-time appropriation. 67.27 (c) $18,680,000 is for local 67.28 intervention grants for 67.29 self-sufficiency program under 67.30 Minnesota Statutes, section 256J.625. 67.31 For fiscal years 2002 and 2003 the 67.32 commissioner of finance shall ensure 67.33 that the base level funding for the 67.34 local intervention grants program is 67.35 $27,180,000 each year. 67.36 (3) Of the amounts in clause (2), 67.37 paragraph (c) for local intervention 67.38 grants, $7,000,000 in fiscal year 2001 67.39 shall be transferred to the 67.40 commissioner of health for distribution 67.41 to county boards according to the 67.42 formula in Minnesota Statutes, section 67.43 256J.625, subdivision 3, to be used by 67.44 county public health boards to serve 67.45 families with incomes at or below 200 67.46 percent of the federal poverty 67.47 guidelines, in the manner specified by 67.48 Minnesota Statutes, section 145A.16, 67.49 subdivision 3, clauses (2) through 67.50 (6). Training, evaluation and 67.51 technical assistance shall be provided 67.52 in accordance with Minnesota Statutes, 67.53 section 145A.16, subdivisions 5 to 7. 67.54 For fiscal years 2002 and 2003 the 67.55 commissioner of finance shall ensure 67.56 that the base level funding for this 67.57 activity is $7,000,000 each year. 67.58 (4) Of the amounts in clause (1), 67.59 $250,000 in fiscal year 2001 is 67.60 appropriated to the commissioner to 67.61 contract with the board of trustees of 67.62 the Minnesota state colleges and 67.63 universities to provide tuition waivers 67.64 to employees of health care and human 67.65 services providers located in the state 68.1 that are members of qualifying 68.2 consortia operating under Minnesota 68.3 Statutes, sections 116L.10 to 116L.15. 68.4 (5) Of the amounts in clause (1), 68.5 $320,000 in fiscal year 2001 is for 68.6 training job counselors about the MFIP 68.7 program. For fiscal years 2002 and 68.8 2003 the commissioner of finance shall 68.9 ensure that the base level funding for 68.10 employment services includes $320,000 68.11 each year for this activity. The 68.12 appropriations in this clause shall not 68.13 become part of the base for the 68.14 2004-2005 biennium. 68.15 (6) Of the amounts in clause (1), 68.16 $1,000,000 in fiscal year 2001 is for 68.17 out-of-wedlock pregnancy prevention 68.18 funds to serve children in 68.19 TANF-eligible families under Minnesota 68.20 Statutes, section 256K.35. For fiscal 68.21 years 2002 and 2003 the commissioner of 68.22 finance shall ensure that the base 68.23 level funding for this program is 68.24 $1,000,000 each year. The 68.25 appropriations in this clause shall not 68.26 become part of the base for the 68.27 2004-2005 biennium. 68.28 (7) Of the amounts in clause (1), 68.29 $1,000,000 in fiscal year 2001 is to 68.30 provide services to TANF-eligible 68.31 families who are participating in the 68.32 supportive housing and managed care 68.33 pilot project under Minnesota Statutes, 68.34 section 256K.25. For fiscal years 2002 68.35 and 2003 the commissioner of finance 68.36 shall ensure that the base level 68.37 funding for this project is $1,000,000 68.38 each year. The appropriations in this 68.39 clause shall not become part of the 68.40 base for this project for the 2004-2005 68.41 biennium. 68.42 [TANF TRANSFER TO SOCIAL SERVICES.] 68.43 $7,500,000 is transferred from the 68.44 state's federal TANF block grant to the 68.45 state's federal Title XX block grant in 68.46 fiscal year 2001 and in fiscal year 68.47 2002, for purposes of increasing 68.48 services for families with children 68.49 whose incomes are at or below 200 68.50 percent of the federal poverty 68.51 guidelines. Notwithstanding section 6, 68.52 this paragraph expires June 30, 2002. 68.53 [TANF MOE.] (a) In order to meet the 68.54 basic maintenance of effort (MOE) 68.55 requirements of the TANF block grant 68.56 specified under United States Code, 68.57 title 42, section 609(a)(7), the 68.58 commissioner may only report nonfederal 68.59 money expended for allowable activities 68.60 listed in the following clauses as TANF 68.61 MOE expenditures: 68.62 (1) MFIP cash and food assistance 68.63 benefits under Minnesota Statutes, 68.64 chapter 256J; 69.1 (2) the child care assistance programs 69.2 under Minnesota Statutes, sections 69.3 119B.03 and 119B.05, and county child 69.4 care administrative costs under 69.5 Minnesota Statutes, section 119B.15; 69.6 (3) state and county MFIP 69.7 administrative costs under Minnesota 69.8 Statutes, chapters 256J and 256K; 69.9 (4) state, county, and tribal MFIP 69.10 employment services under Minnesota 69.11 Statutes, chapters 256J and 256K; and 69.12 (5) expenditures made on behalf of 69.13 noncitizen MFIP recipients who qualify 69.14 for the medical assistance without 69.15 federal financial participation program 69.16 under Minnesota Statutes, section 69.17 256B.06, subdivision 4, paragraphs (d), 69.18 (e), and (j). 69.19 (b) The commissioner shall ensure that 69.20 sufficient qualified nonfederal 69.21 expenditures are made each year to meet 69.22 the state's TANF MOE requirements. For 69.23 the activities listed in paragraph (a), 69.24 clauses (2) to (6), the commissioner 69.25 may only report expenditures that are 69.26 excluded from the definition of 69.27 assistance under Code of Federal 69.28 Regulations, title 45, section 260.31. 69.29 If nonfederal expenditures for the 69.30 programs and purposes listed in 69.31 paragraph (a) are insufficient to meet 69.32 the state's TANF MOE requirements, the 69.33 commissioner shall recommend additional 69.34 allowable sources of nonfederal 69.35 expenditures to the legislature, if the 69.36 legislature is or will be in session to 69.37 take action to specify additional 69.38 sources of nonfederal expenditures for 69.39 TANF MOE before a federal penalty is 69.40 imposed. The commissioner shall 69.41 otherwise provide notice to the 69.42 legislative commission on planning and 69.43 fiscal policy under paragraph (d). 69.44 (c) If the commissioner uses authority 69.45 granted under Laws 1999, chapter 245, 69.46 article 1, section 10, or similar 69.47 authority granted by a subsequent 69.48 legislature, to meet the state's TANF 69.49 MOE requirements in a reporting period, 69.50 the commissioner shall inform the 69.51 chairs of the appropriate legislative 69.52 committees about all transfers made 69.53 under that authority for this purpose. 69.54 (d) If the commissioner determines that 69.55 nonfederal expenditures for the 69.56 programs under Minnesota Statutes, 69.57 section 256J.025, are insufficient to 69.58 meet TANF MOE expenditure requirements, 69.59 and if the legislature is not or will 69.60 not be in session to take timely action 69.61 to avoid a federal penalty, the 69.62 commissioner may report nonfederal 69.63 expenditures from other allowable 69.64 sources as TANF MOE expenditures after 69.65 the requirements of this paragraph are 70.1 met. 70.2 The commissioner may report nonfederal 70.3 expenditures in addition to those 70.4 specified under paragraph (a) as 70.5 nonfederal TANF MOE expenditures, but 70.6 only ten days after the commissioner of 70.7 finance has first submitted the 70.8 commissioner's recommendations for 70.9 additional allowable sources of 70.10 nonfederal TANF MOE expenditures to the 70.11 members of the legislative commission 70.12 on planning and fiscal policy for their 70.13 review. 70.14 (e) The commissioner of finance shall 70.15 not incorporate any changes in federal 70.16 TANF expenditures or nonfederal 70.17 expenditures for TANF MOE that may 70.18 result from reporting additional 70.19 allowable sources of nonfederal TANF 70.20 MOE expenditures under the interim 70.21 procedures in paragraph (d) into the 70.22 February or November forecasts required 70.23 under Minnesota Statutes, section 70.24 16A.103, unless the commissioner of 70.25 finance has approved the additional 70.26 sources of expenditures under paragraph 70.27 (d). 70.28 (f) The provisions of paragraphs (a) to 70.29 (e) supersede any contrary provisions 70.30 in Laws 1999, chapter 245, article 1, 70.31 section 2, subdivision 10. 70.32 (g) The provisions of Minnesota 70.33 Statutes, section 256.011, subdivision 70.34 3, which require that federal grants or 70.35 aids secured or obtained under that 70.36 subdivision be used to reduce any 70.37 direct appropriations provided by law 70.38 do not apply if the grants or aids are 70.39 federal TANF funds. 70.40 (h) Notwithstanding section 6 of this 70.41 article, paragraphs (a) to (g) expire 70.42 June 30, 2003. 70.43 (i) Paragraphs (a) to (h) are effective 70.44 the day following final enactment. 70.45 (a) Assistance to Families Grants 70.46 9,628,000 (2,305,000) 70.47 (b) Work Grants 70.48 -0- (250,000) 70.49 (c) AFDC and Other Assistance 70.50 20,000,000 30,734,000 70.51 [TRANSFERS TO MINNESOTA HOUSING FINANCE 70.52 AGENCY.] (a) By June 30, 2001, the 70.53 commissioner shall transfer $50,000,000 70.54 of the general funds appropriated under 70.55 this paragraph to the Minnesota housing 70.56 finance agency for transfer to the 70.57 housing development fund. The program 70.58 funded by this transfer shall be known 71.1 as the "Bruce F. Vento Year 2000 71.2 Affordable Housing Program." Up to 71.3 $15,000,000 may be transferred in 71.4 fiscal year 2000. 71.5 (b) Of the funds transferred in 71.6 paragraph (a), $5,000,000 in fiscal 71.7 year 2001 and $15,000,000 in fiscal 71.8 year 2002 is for a loan to Habitat for 71.9 Humanity of Minnesota, Inc. The loan 71.10 shall be an interest-free deferred 71.11 loan. The loan shall become due and 71.12 payable in the event and to the extent 71.13 that Habitat for Humanity of Minnesota, 71.14 Inc. does not invest repayments and 71.15 prepayment of mortgage loans financed 71.16 with this appropriation in new 71.17 mortgages for additional homebuyers 71.18 through Habitat for Humanity of 71.19 Minnesota, Inc. To the extent 71.20 practicable, funding must be allocated 71.21 to Habitat for Humanity chapters on the 71.22 basis of the number of MFIP households 71.23 residing within a chapter's service 71.24 area compared to the statewide total of 71.25 MFIP households and on the basis of a 71.26 chapter's capacity. 71.27 (c) Of the funds transferred in 71.28 paragraph (a), $15,000,000 in fiscal 71.29 year 2001 and $15,000,000 in fiscal 71.30 year 2002 is for the affordable rental 71.31 investment fund program under Minnesota 71.32 Statutes, section 462A.21, subdivision 71.33 8b. To the extent practicable, the 71.34 number of units financed with the 71.35 appropriation under this paragraph 71.36 within a city, county, or region shall 71.37 reflect the number of MFIP households 71.38 residing within the city, county, or 71.39 region compared to the statewide total 71.40 of MFIP households. This appropriation 71.41 must be used to finance rental housing 71.42 units that serve families: 71.43 (1) receiving MFIP benefits under 71.44 Minnesota Statutes, section 256J.01, or 71.45 its successor program; and 71.46 (2) who have lost eligibility for MFIP 71.47due to increased income from employment71.48or due to the collection of child or71.49spousal support under part D of title71.50IV of the Social Security Actfor 71.51 reasons other than disqualification 71.52 from MFIP due to fraud. 71.53 Units produced with this appropriation 71.54 must remain affordable for a 30-year 71.55 period. 71.56 In order to coordinate the availability 71.57 of housing developed with the 71.58 appropriation under this paragraph with 71.59 MFIP families in need of affordable 71.60 housing, the commissioner of the 71.61 Minnesota housing finance agency, with 71.62 the assistance of the commissioner of 71.63 human services, shall establish 71.64 cooperative relationships with county 71.65 agencies as defined in Minnesota 72.1 Statutes, section 256J.08, local 72.2 employment and training service 72.3 providers as defined in Minnesota 72.4 Statutes, section 256J.49, local social 72.5 service agencies, or other 72.6 organizations that provide assistance 72.7 to MFIP households. 72.8 The commissioner of the Minnesota 72.9 housing finance agency shall develop 72.10 strategies to promote occupancy of the 72.11 units financed by the appropriation 72.12 under this paragraph by households most 72.13 in need of subsidized housing. The 72.14 strategies shall include provisions 72.15 that encourage households to move into 72.16 homeownership or unsubsidized housing 72.17 as the household secures stable 72.18 employment and achieves 72.19 self-sufficiency. The commissioner of 72.20 the Minnesota housing finance agency 72.21 shall consult with interested parties 72.22 in developing these strategies. 72.23 (d) The commissioner of the Minnesota 72.24 housing finance agency and the 72.25 commissioner of human services shall 72.26 jointly prepare and submit a report to 72.27 the governor and the legislature on the 72.28 results of the funding provided under 72.29 this section. The report shall include: 72.30 (1) information on the number of units 72.31 produced; 72.32 (2) the household size and income of 72.33 the occupants of the units at initial 72.34 occupancy; and 72.35 (3) to the extent the information is 72.36 available, measures related to the 72.37 occupants' attachment to the workforce 72.38 and public assistance usage, and number 72.39 of occupant moves. 72.40 The report must be submitted annually 72.41 beginning January 15, 2003. 72.42 (e) Section 6, sunset of uncodified 72.43 language, does not apply to paragraphs 72.44 (a) to (d). Paragraphs (a) to (d) are 72.45 effective the day following final 72.46 enactment. 72.47 [WORKING FAMILY CREDIT.] (a) On a 72.48 regular basis, the commissioner of 72.49 revenue, with the assistance of the 72.50 commissioner of human services, shall 72.51 calculate the value of the refundable 72.52 portion of the Minnesota working family 72.53 credits provided under Minnesota 72.54 Statutes, section 290.0671, that 72.55 qualifies for federal reimbursement 72.56 from the temporary assistance to needy 72.57 families block grant. The commissioner 72.58 of revenue shall provide the 72.59 commissioner of human services with 72.60 such expenditure records and 72.61 information as are necessary to support 72.62 draws of federal funds. The 72.63 commissioner of human services shall 73.1 reimburse the commissioner of revenue 73.2 for the costs of providing the 73.3 information required by this paragraph. 73.4 (b) Federal TANF funds, as specified in 73.5 this paragraph, are appropriated to the 73.6 commissioner of human services based on 73.7 calculations under paragraph (a) of 73.8 working family tax credit expenditures 73.9 that qualify for reimbursement from the 73.10 TANF block grant for income tax refunds 73.11 payable in federal fiscal years 73.12 beginning October 1, 1999. The draws 73.13 of federal TANF funds shall be made on 73.14 a regular basis based on calculations 73.15 of credit expenditures by the 73.16 commissioner of revenue. Up to the 73.17 following amounts of federal TANF draws 73.18 are appropriated to the commissioner of 73.19 human services to deposit into the 73.20 general fund: in fiscal year 2000, 73.21 $30,957,000; and in fiscal year 2001, 73.22 $33,895,000. 73.23 (d) General Assistance 73.24 557,000 (3,134,000) 73.25 (e) Minnesota Supplemental Aid 73.26 324,000 323,000 73.27 Sec. 36. [MANUFACTURED HOME PARK REDEVELOPMENT REPORT.] 73.28 The housing finance agency shall report to the legislature 73.29 by February 1, 2003, on the effectiveness of the program created 73.30 by Minnesota Statutes, section 462A.2035. 73.31 Sec. 37. [REPEALER.] 73.32 Minnesota Statutes 2000, sections 462A.221, subdivision 4; 73.33 and 462A.30, subdivision 2, are repealed. 73.34 ARTICLE 4 73.35 HOUSING PROGRAM CONSOLIDATION 73.36 Section 1. Minnesota Statutes 2000, section 462A.201, 73.37 subdivision 2, is amended to read: 73.38 Subd. 2. [LOW-INCOME HOUSING.] (a) The agency may, in73.39consultation with the advisory committee,use money from the 73.40 housing trust fund account to provide loans or grants for: 73.41 (1) projects for the development, construction, 73.42 acquisition, preservation, and rehabilitation of low-income 73.43 rental and limited equity cooperative housing units, including 73.44 temporary and transitional housing, and homes for ownership; 73.45 (2) the costs of operating rental housing, as determined by 73.46 the agency, that are unique to the operation of low-income 74.1 rental housing or supportive housing; and 74.2 (3) rental assistance, either project-based or tenant-based. 74.3 For purposes of this section, "transitional housing"means74.4housing that is provided for a limited duration not exceeding 2474.5months, except that up to one-third of the residents may live in74.6the housing for up to 36 monthshas the meaning given by the 74.7 United States Department of Housing and Urban Development. 74.8 Loans or grants for residential housing for migrant farmworkers 74.9 may be made under this section.No more than 20 percent of74.10available funds may be used for home ownership projects.74.11 (b)A rental or limited equity cooperative permanent74.12housing project must meet one of the following income tests:74.13(1) at least 75 percent of the rental and cooperative units74.14must be rented to or cooperatively owned by persons and families74.15whose income does not exceed 30 percent of the median family74.16income for the metropolitan area as defined in section 473.121,74.17subdivision 2; or74.18(2) allThe housing trust fund account must be used for the 74.19 benefit of persons and families whose income, at the time of 74.20 initial occupancy, does not exceed 60 percent of median income 74.21 as determined by the United States Department of Housing and 74.22 Urban Development for the metropolitan area. At least 75 74.23 percent of theunits funded byfunds in the housing trust fund 74.24 account must be used for the benefit of persons and families 74.25 whose income, at the time of initial occupancy, does not exceed 74.26 30 percent of the median family income for the metropolitan area 74.27 as defined in section 473.121, subdivision 2. For purposes of 74.28 this section, a household with a housing assistance voucher 74.29 under section 8 of the United States Housing Act of 1937, as 74.30 amended, is deemed to meet the income requirements of this 74.31 section. 74.32 The median family income may be adjusted for families of 74.33 five or more. 74.34 (c)Homes for ownership must be owned or purchased by74.35persons and families whose income does not exceed 50 percent of74.36the metropolitan area median income, adjusted for family size.75.1(d)Rental assistance under this section must be provided 75.2 by governmental units which administer housing assistance 75.3 supplements or for-profit or by nonprofit organizations 75.4 experienced in housing management. Rental assistance shall be 75.5 limited to households whose income at the time of initial 75.6 receipt of rental assistance does not exceed 60 percent of 75.7 median income, as determined by the United States Department of 75.8 Housing and Urban Development for the metropolitan area. 75.9 Priority among comparable applications for tenant-based rental 75.10 assistance will be given to proposals that will serve households 75.11 whose income at the time of initial application for rental 75.12 assistance does not exceed 30 percent of median income, as 75.13 determined by the United States Department of Housing and Urban 75.14 Development for the metropolitan area. Rental assistance must 75.15 be terminated when it is determined that 30 percent of a 75.16 household's monthly income for four consecutive months equals or 75.17 exceeds the market rent for the unit in which the household 75.18 resides plus utilities for which the tenant is responsible. 75.19 Rental assistance may only be used for rental housing units that 75.20 meet the housing maintenance code of the local unit of 75.21 government in which the unit is located, if such a code has been 75.22 adopted, or the housing quality standards adopted by the United 75.23 States Department of Housing and Urban Development, if no local 75.24 housing maintenance code has been adopted. 75.25 (d) In making the loans or grants, the agency shall 75.26 determine the terms and conditions of repayment and the 75.27 appropriate security, if any, should repayment be required. To 75.28 promote the geographic distribution of grants and loans, the 75.29 agency may designate a portion of the grant or loan awards to be 75.30 set aside for projects located in specified congressional 75.31 districts or other geographical regions specified by the 75.32 agency. The agency may adopt rules for awarding grants and 75.33 loans under this subdivision. 75.34 Sec. 2. Minnesota Statutes 2000, section 462A.201, 75.35 subdivision 6, is amended to read: 75.36 Subd. 6. [REPORT.] The agency shall submit a biennial 76.1 report to the legislature and the governorannuallyon the use 76.2 of the housing trust fund account including the number of loans 76.3 and grants made, the number and types of residential units 76.4 assisted through the account, the number of households for whom 76.5 rental assistance payments were provided, and the number of 76.6 residential units assisted through the account that were rented 76.7 to or cooperatively owned by persons or families at or below 30 76.8 percent of the median family income of the metropolitan area at 76.9 the time of initial occupancy. 76.10 Sec. 3. Minnesota Statutes 2000, section 462A.209, is 76.11 amended to read: 76.12 462A.209 [HOME OWNERSHIPASSISTANCEEDUCATION, COUNSELING, 76.13 AND TRAINING PROGRAM.] 76.14 Subdivision 1. [FULL CYCLE HOME OWNERSHIP SERVICES.] 76.15 Thefull cycle home ownership serviceshomeownership education, 76.16 counseling, and training program shall be used tofundprovide 76.17 funding to community-based nonprofit organizations and political 76.18 subdivisionsproviding, building capacity to provide, or76.19supporting full cycle lending forto assist them in building the 76.20 capacity to provide and providing full cycle home ownership 76.21 services to low and moderate income home buyers and homeowners, 76.22 including seniors. The purpose of the program is to encourage 76.23 private investment in affordable housing and collaboration of 76.24 nonprofit organizations and political subdivisions with each 76.25 other and private lenders in providing full cyclelending76.26 homeownership services. 76.27 Subd. 2. [DEFINITION.] "Full cycle home ownership 76.28 services" means supporting eligible home buyers andownershome 76.29 owners through all phases of purchasing and keeping a home, by 76.30 providing prepurchase home buyer education,; prepurchase 76.31 counseling and credit repair,; prepurchase and postpurchase 76.32 property inspection and technical and financial assistance to 76.33 buyers in rehabilitating the home,; postpurchase counseling, 76.34 including home equity conversion loan counseling, mortgage 76.35 default counseling, postpurchase assistance with home 76.36 maintenance, entry cost assistance,; foreclosure prevention and 77.1 assistance; and access to flexible loan products. 77.2 Subd. 3. [ELIGIBILITY.] The agency shall establish 77.3 eligibility criteria for nonprofit organizations and political 77.4 subdivisions to receive funding under this section. The 77.5 eligibility criteria must require the nonprofit organization or 77.6 political subdivision to provide, to build capacity to provide, 77.7 or support full cycle home ownership services for eligible home 77.8 buyers. The agency may fund a nonprofit organization or 77.9 political subdivision that will provide full cycle home 77.10 ownership services by coordinating with one or more other 77.11 organizations that will provide specific components of full 77.12 cycle home ownership services. The agency may make exceptions 77.13 to providing all components of full cycle lending if justified 77.14 by the application. If there are more applicants requesting 77.15 funding than there are funds available, the agency shall award 77.16 the funds on a competitive basis and also assure an equitable 77.17 geographic distribution of the available funds. The eligibility 77.18 criteria must require the nonprofit organization or political 77.19 subdivision to have a demonstrated involvement in the local 77.20 community and to target the housing affordability needs of the 77.21 local community or to have demonstrated experience with 77.22 counseling older persons on housing, or both. The eligibility 77.23 criteria may include a requirement for specific training 77.24 provided by designated state or national entities. The agency 77.25 may also include an eligibility criteria that requires counselor 77.26 certification or organizational accreditation by specified 77.27 organizations which provide certification or accreditation 77.28 services. Partnerships and collaboration with innovative, grass 77.29 roots, or community-based initiatives shall be encouraged. The 77.30 agency shall give priority to nonprofit organizations and 77.31 political subdivisions thatprovide matching fundshave funding 77.32 from other sources for full cycle homeownership services. 77.33 Applicants for funds under section 462A.057 may also apply funds 77.34 under this program. 77.35 Subd. 4. [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 77.36 The agency may establish an entry cost home ownership 78.1 opportunity program, on terms and conditions it deems advisable, 78.2 to assist individuals with downpayment and closing costs to 78.3 finance the purchase of a home. 78.4 Subd. 5. [SELECTION CRITERIA.] The agency shall take the 78.5 following criteria into consideration when determining whether 78.6 to award funds to an eligible organization: 78.7 (1) the extent to which there is an equitable geographic 78.8 distribution of funds among program applicants; 78.9 (2) the prior experience and documented familiarity of the 78.10 organization, as may be applicable, in establishing, 78.11 administering, and maintaining some or all of the components of 78.12 full cycle homeownership services; 78.13 (3) the reasonableness of the proposed budget in meeting 78.14 the program objectives, a demonstrated ability to leverage 78.15 program money with other sources of funding, and the extent of 78.16 the leveraging of other sources of funding; 78.17 (4) the extent to which efforts are targeted towards 78.18 households with incomes that do not exceed 80 percent of the 78.19 state or area median income or underserved segments of the local 78.20 population; and 78.21 (5) the extent to which program funding does not duplicate 78.22 other efforts currently available in the local area and will 78.23 enable, expand, or enhance existing activities. 78.24 Subd. 6. [DESIGNATED AREAS.] A program administrator must 78.25 designate specific areas, communities, or neighborhoods within 78.26 which the program is proposed to be operated for the purpose of 78.27 focusing resources. 78.28 Subd. 7. [ASSISTANCE TO PREVENT MORTGAGE FORECLOSURES.] (a) 78.29 Program assistance and counseling to prevent mortgage 78.30 foreclosures or cancellations of contract for deeds includes 78.31 general information, screening, assessment, referral services, 78.32 case management, advocacy, and financial assistance to borrowers 78.33 who are delinquent on mortgage or contract for deed payments. 78.34 (b) Not more than one-half of funds awarded for foreclosure 78.35 prevention and assistance activities may be used for mortgage or 78.36 financial counseling services. 79.1 (c) Financial assistance consists of payments for 79.2 delinquent mortgage or contract for deed payments, future 79.3 mortgage or contract for deed payments for a period of up to six 79.4 months, property taxes, assessments, utilities, insurance, home 79.5 improvement repairs, future rent payments for a period of up to 79.6 six months, and relocation costs if necessary, or other costs 79.7 necessary to prevent foreclosure. 79.8 (d) An individual or family may receive a maximum of $5,500 79.9 of financial assistance to prevent a mortgage foreclosure or the 79.10 cancellation of a contract for deed. 79.11 (e) The agency may require the recipient of financial 79.12 assistance to enter into an agreement with the agency for 79.13 repayment. The repayment agreement for mortgages or contract 79.14 for deed buyers must provide that in the event the property is 79.15 sold, transferred, or otherwise conveyed, or ceases to be the 79.16 recipient's principal place of residence, the recipient shall 79.17 repay all or a portion of the financial assistance. The agency 79.18 may take into consideration financial hardship in determining 79.19 repayment requirements. The repayment agreement may be secured 79.20 by a lien on the property for the benefit of the agency. 79.21 Subd. 8. [REPORT.] By January 10 of every year, each 79.22 nonprofit organization that delivers services under this section 79.23 must submit a report to the agency that summarizes the number of 79.24 people served and the sources and amounts of nonstate money used 79.25 to fund the services. The agency shall annually submit a report 79.26 to the legislature by February 15. 79.27 Sec. 4. Minnesota Statutes 2000, section 462A.21, is 79.28 amended by adding a subdivision to read: 79.29 Subd. 27. [ECONOMIC DEVELOPMENT AND HOUSING CHALLENGE 79.30 PROGRAM.] The agency may spend money for the purposes of section 79.31 462A.33 and may pay the costs and expenses necessary and 79.32 incidental to the development and operation of the program. 79.33 Sec. 5. Minnesota Statutes 2000, section 462A.33, 79.34 subdivision 1, is amended to read: 79.35 Subdivision 1. [CREATED.] The economic development and 79.36 housing challenge program is created to be administered by the 80.1 agency. 80.2 (a) The program shall provide grants or loans for the 80.3 purpose of construction, acquisition, rehabilitation, demolition 80.4 or removal of existing structures, construction financing, 80.5 permanent financing, interest rate reduction, refinancing, and 80.6 gap financing of housing to support economic development and 80.7 redevelopment activities or job creation or job preservation 80.8 within a community or region by meeting locally identified 80.9 housing needs. 80.10 Gap financing is either: 80.11 (i) the difference between the costs of the property, 80.12 including acquisition, demolition, rehabilitation, and 80.13 construction, and the market value of the property upon sale; or 80.14 (ii) the difference between the cost of the property and 80.15 the amount the targeted household can afford for housing, based 80.16 on industry standards and practices. 80.17 (b) Preference for grants and loans shall be given to 80.18 comparable proposals that include regulatory changes or waivers 80.19 that result in identifiable cost avoidance or cost reductions, 80.20 such as increased density, flexibility in site development 80.21 standards, or zoning code requirements. Preference must also be 80.22 given among comparable proposals to proposals for projects that 80.23 are accessible to transportation systems, jobs, schools, and 80.24 other services. 80.25 (c) If a grant or loan is used for demolition or removal of 80.26 existing structures, the cleared land must be used for the 80.27 construction of housing to be owned or rented by persons who 80.28 meet the income limits of this section or for other 80.29 housing-related purposes that primarily benefit the persons 80.30 residing in the adjacent housing. In making selections for 80.31 grants or loans for projects that demolish affordable housing 80.32 units, the agency must review the potential displacement of 80.33 residents and consider the extent to which displacement of 80.34 residents is minimized. 80.35 Sec. 6. Minnesota Statutes 2000, section 462A.33, 80.36 subdivision 2, is amended to read: 81.1 Subd. 2. [ELIGIBLE RECIPIENTS.] Challenge grants or loans 81.2 may be made to a city, a private developer, a nonprofit 81.3 organization, or the owner of the housing, including 81.4 individuals. For the purpose of this section, "city" has the 81.5 meaning given it in section 462A.03, subdivision 21.Preference81.6shall be given to challenge grants or loans for home ownership.81.7 To the extent practicable, grants and loans shall be made so 81.8 that an approximately equal number of housing units are financed 81.9 in the metropolitan area, as defined in section 473.121, 81.10 subdivision 2, and in the nonmetropolitan area. 81.11 Sec. 7. Minnesota Statutes 2000, section 462A.33, 81.12 subdivision 3, is amended to read: 81.13 Subd. 3. [CONTRIBUTION REQUIREMENT; REGULATORY81.14FLEXIBILITY.] Fifty percent of the funds appropriated for this 81.15 section must be used for challenge grants or loans which meet 81.16 the requirements of this subdivision. These challenge grants or 81.17 loans must be used for economically viable homeownership or 81.18 rental housing proposals that: 81.19 (1) include a financial or in-kind contribution from an 81.20 area employer and either a unit of local government or a private 81.21 philanthropic, religious, or charitable organization; and 81.22 (2) address the housing needs of the local work force. 81.23 For the purpose of this subdivision, an employer 81.24 contribution may consist partially or wholly of the premium paid 81.25 for federal housing tax credits.Preference for grants and81.26loans shall be given to comparable proposals that include81.27regulatory changes that result in identifiable cost avoidance or81.28cost reductions, such as increased density, flexibility in site81.29development standards, or zoning code requirements.81.30 Preference for grants and loans shall also be given to 81.31 comparable proposals that include a financial or in-kind 81.32 contribution from a unit of local government, an area employer, 81.33 and a private philanthropic, religious, or charitable 81.34 organization. 81.35 Sec. 8. Minnesota Statutes 2000, section 462A.33, 81.36 subdivision 5, is amended to read: 82.1 Subd. 5. [INCOME LIMITS.] Households served through 82.2 challenge grants or loans must not have incomes at the time of 82.3 initial occupancy that exceed, for homeownership projects,115 82.4 percent of the greater of state or area median income as 82.5 determined by the United States Department of Housing and Urban 82.6 Development,and for rental housing projects, 115 percent of the82.7greater of state or area median income as determined by the82.8United States Department of Housing and Urban Developmentexcept 82.9 that the housing developed or rehabilitated with challenge fund 82.10 grants or loans must be affordable to the local work force. 82.11 Preference among comparable proposals shall be given to 82.12 those that provide housing opportunities for an expanded range 82.13 of household incomes within a community or that provide housing 82.14 opportunities for a wide range of incomes within the development. 82.15 Sec. 9. Minnesota Statutes 2000, section 462A.33, is 82.16 amended by adding a subdivision to read: 82.17 Subd. 8. [LIMITATION ON RETURN.] The limitations on return 82.18 of eligible mortgagors contained in section 462A.03, subdivision 82.19 13, do not apply to loans or grants for rental housing if the 82.20 loans or grants made by the agency, from all sources, are less 82.21 than 50 percent of the total costs, as determined by the agency. 82.22 Sec. 10. [REPEALER.] 82.23 Minnesota Statutes 2000, sections 462A.201, subdivision 4; 82.24 462A.207; 462A.209, subdivision 4; 462A.21, subdivision 17; and 82.25 462A.33, subdivisions 4, 6, and 7, are repealed. 82.26 ARTICLE 5 82.27 CONSISTENT REGULATION OF MANAGED CARE PLANS 82.28 Section 1. [62U.01] [DEFINITIONS.] 82.29 Subdivision 1. [APPLICABILITY.] For purposes of this 82.30 chapter, the terms defined in this section have the meaning 82.31 given. 82.32 Subd. 2. [COMMISSIONER.] "Commissioner" means the 82.33 commissioner of commerce. 82.34 Subd. 3. [COPAYMENT.] "Copayment" means an amount an 82.35 enrollee must pay to receive a specific service that is not 82.36 fully prepaid. Copayment includes coinsurance. 83.1 Subd. 4. [DEDUCTIBLE.] "Deductible" means the amount an 83.2 enrollee is responsible to pay out-of-pocket before the managed 83.3 care organization begins to pay the costs associated with 83.4 treatment. 83.5 Subd. 5. [ENROLLEE.] "Enrollee" means a natural person 83.6 covered by a health plan and includes an insured, policyholder, 83.7 subscriber, contract holder, member, certificate holder, or any 83.8 other natural person covered by a health plan, whether as a 83.9 spouse, dependent, former dependent, or otherwise. 83.10 Subd. 6. [EVIDENCE OF COVERAGE.] "Evidence of coverage" 83.11 means a statement issued to an enrollee by the health plan 83.12 company or by the group policyholder or group contract holder 83.13 that sets out the coverage and other rights to which the 83.14 enrollee is entitled under the health benefit plan. 83.15 Subd. 7. [FACILITY.] "Facility" means an institution 83.16 providing health care services or a health care setting, 83.17 including but not limited to a hospital or other licensed 83.18 inpatient center; an ambulatory surgical or treatment center; a 83.19 skilled nursing center; a residential treatment center; a 83.20 diagnostic, laboratory, or imaging center; or a rehabilitation 83.21 or other therapeutic health setting. 83.22 Subd. 8. [HEALTH PLAN.] "Health plan" means a policy, 83.23 contract, certificate, or agreement offered or issued by a 83.24 health plan company to provide, deliver, arrange for, pay for, 83.25 or reimburse any of the costs of health care services. Health 83.26 plan includes a policy or certificate of accident and sickness 83.27 insurance as defined in section 62A.01 offered by an insurance 83.28 company licensed under chapter 60A; a subscriber contract or 83.29 certificate offered by a nonprofit health service plan 83.30 corporation operating under chapter 62C; a health maintenance 83.31 contract or certificate offered by a health maintenance 83.32 organization operating under chapter 62D; health coverage 83.33 offered by a joint self-insurance employee health plan operating 83.34 under chapter 62H; or a health benefit certificate offered by a 83.35 fraternal benefit society operating under chapter 64B. Health 83.36 plan means individual and group coverage, unless otherwise 84.1 specified. Health plan does not include coverage that is: 84.2 (1) limited to disability or income protection coverage; 84.3 (2) automobile medical payment coverage; 84.4 (3) supplemental to liability insurance; 84.5 (4) designed solely to provide payments on a per diem, 84.6 fixed indemnity, or non-expense-incurred basis; 84.7 (5) credit accident and health insurance as defined in 84.8 section 62B.02; 84.9 (6) designed solely to provide dental or vision care; 84.10 (7) blanket accident and sickness insurance as defined in 84.11 section 62A.11; 84.12 (8) accident-only coverage; 84.13 (9) a long-term care policy as defined in section 62A.46 or 84.14 long-term care insurance as defined in 62S.01; 84.15 (10) issued as a supplement to Medicare, as defined in 84.16 sections 62A.31 to 62A.44, or policies, contracts, or 84.17 certificates that supplement Medicare issued by health 84.18 maintenance organizations or those policies, contracts, or 84.19 certificates governed by section 1833 or 1876 of the federal 84.20 Social Security Act, United States Code, title 42, sections 84.21 1395l and 1395mm, as amended; 84.22 (11) workers' compensation insurance; or 84.23 (12) issued solely as a companion to a health maintenance 84.24 contract as described in section 62D.12, subdivision 1a, so long 84.25 as the health maintenance contract meets the definition of a 84.26 health plan. 84.27 Subd. 9. [HEALTH PLAN COMPANY.] "Health plan company" 84.28 means an entity subject to the insurance laws and regulations of 84.29 this state, or subject to the jurisdiction of the commissioner, 84.30 that contracts or offers to contract to provide, deliver, 84.31 arrange for, pay for, or reimburse any of the costs of health 84.32 care services, including an insurance company licensed under 84.33 chapter 60A; a nonprofit health service plan corporation 84.34 operating under chapter 62C; a health maintenance organization 84.35 operating under chapter 62D; a joint self-insurance employee 84.36 health plan that is subject to chapter 62H; a community 85.1 integrated service network as defined in section 62N.02, 85.2 subdivision 4a; a fraternal benefit society operating under 85.3 chapter 64B; or any other entity providing a plan of health 85.4 insurance, health benefits, or health services. "Health plan 85.5 company" does not include an employer with respect to a 85.6 self-insured employee health benefit plan organized and offered 85.7 by the employer to its employees under the Federal Employee 85.8 Retirement Income Security Act of 1974, and this chapter does 85.9 not apply to those plans. 85.10 Subd. 10. [HEALTH CARE PROFESSIONAL.] "Health care 85.11 professional" means a physician or other health care 85.12 practitioner licensed, accredited, or certified to perform 85.13 specified health care services consistent with state law. 85.14 Subd. 11. [HEALTH CARE PROVIDER OR PROVIDER.] "Health care 85.15 provider" or "provider" means a health care professional or 85.16 facility. 85.17 Subd. 12. [HEALTH CARE SERVICES.] "Health care services" 85.18 means services for the diagnosis, prevention, treatment, cure, 85.19 or relief of a health condition, illness, injury, or disease. 85.20 Subd. 13. [INDIVIDUAL COVERAGE, INDIVIDUAL HEALTH PLAN, OR 85.21 INDIVIDUAL MANAGED CARE PLAN.] "Individual coverage," 85.22 "individual health plan," or "individual managed care plan" 85.23 means coverage, a health plan, or a managed care plan, as 85.24 appropriate, issued to and covering an individual. The 85.25 individual coverage, health plan, or managed care plan, as 85.26 appropriate, may also cover dependents of the individual. 85.27 Subd. 14. [MANAGED CARE PLAN.] (a) "Managed care plan" 85.28 means a health plan that either requires an enrollee to use or 85.29 creates incentives, including financial incentives, for an 85.30 enrollee to use health care providers managed, owned, or 85.31 employed by or under contract with the health plan company and 85.32 that results in an enrollee being subject to at least one of the 85.33 following: 85.34 (1) use of prescriptions included in a drug formulary, 85.35 unless a higher copayment is applied; 85.36 (2) use of a provider to coordinate some or all health care 86.1 services; 86.2 (3) having the enrollee's health care subject to 86.3 utilization review, as defined in section 62M.02, subdivision 86.4 20; and 86.5 (4) other managed care techniques designed to use health 86.6 care protocols to control costs or access to health care 86.7 services. 86.8 (b) A health plan is not a managed care plan if the 86.9 financial incentive to use certain health care providers is 86.10 solely the difference in the obligation of the enrollee to pay 86.11 for the balance of charges after the health plan company has 86.12 paid its usual and customary charges. 86.13 Subd. 15. [PARTICIPATING PROVIDER.] "Participating 86.14 provider" means a provider that, under an express contract with 86.15 a health plan company or with its contractor or subcontractor, 86.16 has agreed to provide health care services to enrollees with an 86.17 expectation of receiving payment, other than copayments or 86.18 deductibles, directly or indirectly from the health plan company. 86.19 Subd. 16. [PERSON.] "Person" means an individual, a 86.20 corporation, a partnership, an association, a joint venture, a 86.21 joint stock company, a trust, an unincorporated organization, 86.22 any similar entity, or a combination of the foregoing. 86.23 Sec. 2. [62U.02] [APPLICABILITY AND SCOPE.] 86.24 (a) This chapter applies to all health plan companies 86.25 offering, selling, issuing, or renewing a managed care plan in 86.26 this state or to cover a resident of this state, except that 86.27 this chapter does not apply to health plan companies whose 86.28 annual Minnesota private health premium revenues are less than 86.29 five percent of the total annual Minnesota private health 86.30 premium revenues, as measured by the assessment base of the 86.31 Minnesota comprehensive health association. For purposes of 86.32 this percentage calculation, a health plan company's premiums 86.33 include the Minnesota private health premium revenues of its 86.34 affiliates. 86.35 (b) Notwithstanding paragraph (a), sections 62U.01 to 86.36 62U.16 apply to all health maintenance organizations. 87.1 (c) Notwithstanding paragraph (a), sections 62U.13, 62U.14, 87.2 and 62U.15 apply to managed care plans offered in connection 87.3 with medical assistance under chapter 256B, general assistance 87.4 medical care under chapter 256D, or the MinnesotaCare program 87.5 under chapter 256L. 87.6 (d) When this chapter states that a health plan company or 87.7 a managed care plan must comply with a referenced statute or 87.8 rule that by its terms applies only to a specific type of health 87.9 plan company or health plan, the requirement of this chapter is 87.10 that all health plan companies or managed care plans referenced 87.11 in the requirement of this chapter must comply with the 87.12 referenced statute or rule. 87.13 (e) This chapter applies to health plan companies only with 87.14 respect to their managed care plans, except as otherwise 87.15 expressly provided. 87.16 (f) This chapter does not apply to providers, or to a 87.17 health plan company's relationship with providers, not located 87.18 within this state or within a county adjacent to this state. 87.19 Sec. 3. [62U.03] [APPROVAL OF MANAGED CARE PLANS.] 87.20 (a) No person shall offer, issue, sell, or renew a managed 87.21 care plan in this state or to cover a resident of this state, 87.22 without first obtaining approval to do so from the commissioner 87.23 under this section. Existing managed care plans are deemed 87.24 approved if the health plan company has previously demonstrated 87.25 to either the commissioner of health or the commissioner of 87.26 commerce that the managed care plan complies with this chapter. 87.27 (b) A health plan company may apply to the commissioner 87.28 under this section for approval of a managed care plan. 87.29 (c) The commissioner shall approve an application from a 87.30 health plan company made under this section if the commissioner 87.31 determines, based upon the application and any other information 87.32 available to the commissioner, that the applicant intends to and 87.33 has the capacity to fully comply with this chapter and with all 87.34 other laws of this state that apply to the health plan company 87.35 in connection with the managed care plan. 87.36 (d) The commissioner shall approve, disapprove, or approve 88.1 conditional upon proposed modification, an application no later 88.2 than 60 days after receipt by the commissioner of a completed 88.3 application, including all supporting materials required by law 88.4 or requested by the commissioner. 88.5 Sec. 4. [62U.04] [APPLICATION FORM AND REQUIREMENTS; OTHER 88.6 LAW.] 88.7 (a) The commissioner may prescribe an application form for 88.8 approval of a managed care plan and may specify the items 88.9 required to be submitted in connection with the application 88.10 consistent with the provisions of this chapter. 88.11 (b) The required submissions must include materials 88.12 sufficient to permit the commissioner to determine that the 88.13 proposed managed care plan fully complies with this chapter. 88.14 (c) This section does not limit requirements provided 88.15 elsewhere in law that apply in connection with approval of a 88.16 managed care plan. 88.17 Sec. 5. [62U.05] [COVERED HEALTH CARE SERVICES.] 88.18 Subdivision 1. [REQUIRED COVERAGE.] (a) A group managed 88.19 care plan must cover at least the health care services included 88.20 in the definition of comprehensive health maintenance services 88.21 under section 62D.02, subdivision 7, and Minnesota Rules, part 88.22 4685.0700, subparts 1 and 2. 88.23 (b) An individual managed care plan must comply with the 88.24 benefit requirements that apply to an insurance company licensed 88.25 under chapter 60A and need not comply with additional or 88.26 different benefit requirements that apply to companies licensed 88.27 under chapter 62C, 62D, or 62N. 88.28 (c) A managed care plan must not use a definition of 88.29 "medically necessary," "medical necessity," or similar term that 88.30 is more restrictive than the definition of "medically necessary 88.31 care" provided in Minnesota Rules, part 4685.0100, subpart 9b. 88.32 Subd. 2. [EXCEPTIONS.] (a) Exclusions of and limitations 88.33 on the services required under subdivision 1 are permitted 88.34 subject to prior written approval by the commissioner based on 88.35 the standards in paragraphs (b) to (d). 88.36 (b) Exclusions and limitations based on services being 89.1 experimental, investigative, or unproven must not be more 89.2 restrictive than provided in Minnesota Rules, part 4685.0700, 89.3 subpart 4, item F. 89.4 (c) Exclusions and limitations based on use of a drug 89.5 formulary must not be more restrictive than provided in 89.6 Minnesota Rules, part 4685.0700, subpart 3, item A. 89.7 (d) Exclusions and limitations must not be unjust, unfair, 89.8 or inequitable, as provided in section 62A.02, subdivision 3, or 89.9 have the effect of substantially eliminating or restricting 89.10 services otherwise covered in the plan. 89.11 (e) Exclusions of and limitations on the services required 89.12 under subdivision 1 are permitted at least to the extent 89.13 described in Minnesota Rules, part 4685.0700, subparts 3 and 4. 89.14 Variations on those exclusions and limitations may be requested 89.15 under paragraph (a). 89.16 Subd. 3. [OTHER STATE LAW.] (a) A managed care plan must 89.17 cover all health care services, in addition to those required 89.18 under subdivision 1, that are required under other state law. 89.19 (b) A managed care plan must comply with sections 62D.102 89.20 and 62D.103. 89.21 (c) A managed care plan need not comply with this section 89.22 to the extent permitted under chapter 62L with respect to 89.23 managed care plans offered to small employers in compliance with 89.24 section 62L.05 or 62L.055. 89.25 Sec. 6. [62U.06] [DISPUTE RESOLUTION AND UTILIZATION 89.26 REVIEW.] 89.27 (a) A health plan company must, with respect to its managed 89.28 care plans, comply with chapter 62M, sections 62Q.68 to 62Q.73, 89.29 and all other related applicable state laws. 89.30 (b) A health plan company must not deny or limit coverage 89.31 of a service that an enrollee has already received solely on the 89.32 basis of the lack of prior authorization or second opinion, to 89.33 the extent that the service would otherwise have been covered 89.34 under the enrollee's health plan by the health plan company had 89.35 prior authorization or a second opinion been obtained. 89.36 Sec. 7. [62U.07] [EVIDENCE OF COVERAGE.] 90.1 A health plan company shall, in connection with a managed 90.2 care plan, comply with section 62D.07. 90.3 Sec. 8. [62U.08] [INFORMATION TO ENROLLEES.] 90.4 A health plan company shall, in connection with a managed 90.5 care plan, comply with section 62D.09, subdivisions 1, 2, and 4 90.6 to 8. 90.7 Sec. 9. [62U.09] [ENROLLEES HELD HARMLESS.] 90.8 A health plan company shall, in connection with a managed 90.9 care plan, comply with section 62D.12, subdivision 5. 90.10 Sec. 10. [62U.10] [ENFORCEMENT.] 90.11 The commissioner shall enforce this chapter under sections 90.12 60A.031; 60A.052; 62D.14, subdivisions 3, 4a, and 5; and 62D.15 90.13 to 62D.17. Administrative penalties for violations of this 90.14 chapter are as provided in section 62D.17. 90.15 Sec. 11. [62U.11] [DELEGATION OF RESPONSIBILITY AND 90.16 SHARING OF RISKS.] 90.17 Subdivision 1. [APPROVAL OF DELEGATION AGREEMENT.] (a) 90.18 Before delegating any of its obligations or responsibilities 90.19 under a managed care plan or under this chapter to another 90.20 entity, a health plan company shall file with the commissioner a 90.21 copy of the form of the delegation agreement for written 90.22 approval. 90.23 (b) The delegation agreement must: 90.24 (1) provide for regular monitoring of the delegatee's 90.25 performance by the health plan company; 90.26 (2) permit periodic and other audits of the delegatee by 90.27 the commissioner with respect to this chapter; and 90.28 (3) provide that the delegated functions must be carried 90.29 out in a manner consistent with state law. 90.30 (c) The health plan company retains ultimate responsibility 90.31 for performance of the delegated functions, and the delegatee is 90.32 not subject to the enforcement authority of the commissioner. 90.33 Subd. 2. [PROVIDER AGREEMENTS.] (a) An agreement between a 90.34 health plan company and a provider in which the provider agrees 90.35 to undertake specified responsibilities under this chapter, in 90.36 connection with a managed care plan, is subject to subdivision 1. 91.1 (b) A health plan company, in connection with a managed 91.2 care plan, may enter into an agreement under subdivision 1 with 91.3 a provider, which agreement structures payments to the provider 91.4 based on the efficient provision of services or as incentives to 91.5 provide quality care. 91.6 (c) Assumption of risk by a provider under this section is 91.7 not insurance for purposes of section 60A.02, subdivision 3. 91.8 Sec. 12. [62U.12] [SUBROGATION AND COORDINATION OF 91.9 BENEFITS.] 91.10 (a) A managed care plan may contain subrogation provisions 91.11 as permitted and limited under sections 62A.095 and 62A.096 and 91.12 Minnesota Rules, part 4685.0900. 91.13 (b) A health plan company, in connection with a group 91.14 managed care plan, must comply with Minnesota Rules, chapter 91.15 2742, relating to coordination of benefits. The health plan 91.16 company must not refuse to provide covered health services on 91.17 the basis that it has the right to coordinate benefits. The 91.18 services must be provided prior to coordination. 91.19 Sec. 13. [62U.13] [QUALITY ASSESSMENT AND PERFORMANCE 91.20 IMPROVEMENT.] 91.21 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 91.22 section, the terms defined in this subdivision have the meanings 91.23 given. 91.24 (b) "Outcome or outcome of care" means the end result of 91.25 health care or a change in patient health status. Examples of 91.26 outcomes of care include a hospital admission or readmission, an 91.27 advanced stage of a disease, recovery, alleviation of symptoms, 91.28 or death. 91.29 (c) "Performance improvement" means the effort to improve 91.30 the timeliness, processes, and outcomes related to the provision 91.31 of care within the health plan company. 91.32 (d) "Quality assessment" means the measurement and 91.33 evaluation of the quality and outcomes of care provided to 91.34 individuals, groups, or populations. 91.35 Subd. 2. [HEALTH PLAN COMPANY REQUIREMENTS.] A health plan 91.36 company that provides managed care plans shall develop and 92.1 maintain a quality assessment and performance improvement 92.2 program, which includes the infrastructure and disclosure 92.3 systems and activities necessary to measure and improve the 92.4 quality of health care services provided to covered persons 92.5 under the managed care plan. A health plan company shall, in 92.6 connection with its managed care plans: 92.7 (1) establish a program designed to assess the quality of 92.8 health care provided to covered persons and capable of 92.9 identifying opportunities to improve care. The program must 92.10 include systematic collection, analysis, and reporting of 92.11 relevant data. The program may use appropriate sampling 92.12 techniques. The program must be structured to identify 92.13 practices that result in improved outcomes, identify problematic 92.14 utilization patterns, identify those providers that may be 92.15 responsible for either exemplary or problematic patterns, and 92.16 foster an environment of continuous quality improvement; 92.17 (2) file a written description of the quality assessment 92.18 and performance improvement program with the commissioner, which 92.19 must include a signed certification by a corporate officer of 92.20 the health plan company that the filing meets the requirements 92.21 of this section; 92.22 (3) communicate findings from its quality assessment and 92.23 performance improvement program activities at least annually to 92.24 applicable regulatory agencies, providers, purchasers, and 92.25 consumers, as provided in subdivision 5; 92.26 (4) on a continuing basis, use findings from its quality 92.27 assessment and performance improvement program activities to 92.28 work with participating providers and other staff to improve the 92.29 health care delivered to covered persons; 92.30 (5) report to the appropriate licensing authority any 92.31 persistent pattern of problematic care provided by a provider 92.32 consistent with sections 147.111, 147.121, 148.263, 148.264, and 92.33 other similar laws applicable to credentialed providers; 92.34 (6) design, measure, assess, and improve the processes and 92.35 outcomes of care as identified in the health plan company's 92.36 quality assessment and performance improvement program that is 93.1 filed with the commissioner, meets all requirements of 93.2 subdivision 3, and is otherwise consistent with this section; 93.3 (7) ensure that participating providers have the 93.4 opportunity to participate in developing, implementing, and 93.5 evaluating the quality assessment and performance improvement 93.6 program; and 93.7 (8) include information from covered persons in the 93.8 development of the quality assessment and performance 93.9 improvement program, which may include, at the option of the 93.10 health plan company, any available satisfaction survey results 93.11 and other general comments. 93.12 Subd. 3. [QUALITY ASSESSMENT AND PERFORMANCE IMPROVEMENT 93.13 PROGRAM REQUIREMENTS.] (a) A quality assessment and performance 93.14 improvement program required under subdivision 2 must include a 93.15 written statement, including a description of data collection 93.16 activities, information systems, and performance improvement 93.17 activities, and an annual effectiveness review of the quality 93.18 assessment and performance improvement program. 93.19 (b) A quality assessment and performance improvement 93.20 program required under subdivision 2 must include a written plan 93.21 that describes how the health plan company intends to: 93.22 (1) analyze both processes and outcomes of care, to discern 93.23 the causes of variation; 93.24 (2) identify topics to be reviewed by the quality 93.25 assessment and performance improvement program each year. In 93.26 determining topics for review, the health plan company shall 93.27 consider problems; potential problems; areas with potential for 93.28 improvements in care; practices and diagnoses that affect a 93.29 substantial number of the plan's covered persons or that could 93.30 place covered persons at serious risk; and illnesses associated 93.31 with increased mortality and morbidity. This clause must not be 93.32 construed to require a health carrier to review every disease, 93.33 illness, and condition that may affect an enrollee of a managed 93.34 care plan offered by the health plan company; 93.35 (3) use a range of appropriate methods to analyze quality, 93.36 including: 94.1 (i) collection and analysis of information on 94.2 overutilization and underutilization of services; 94.3 (ii) evaluation of courses of treatment and outcomes of 94.4 health care, using nationally recognized measures of 94.5 effectiveness of care, use of services, and access to care; 94.6 (iii) collection and analysis of information specific to a 94.7 covered person or provider, gathered from multiple sources 94.8 including but not limited to utilization management, claims 94.9 processing, and documentation of satisfaction surveys; and 94.10 (iv) ongoing evaluation of enrollee complaints received by 94.11 a health plan company that are related to quality of and access 94.12 to care. The data on complaints related to quality of and 94.13 access to care must be evaluated by the health plan company at 94.14 least quarterly; 94.15 (4) compare program findings with past performance, as 94.16 appropriate, and with internal goals and external standards, 94.17 when available, such as those standards developed by recognized 94.18 state and national accreditation organizations; 94.19 (5) establish and implement policies and procedures for 94.20 provider selection, credentialing, and recredentialing that, at 94.21 a minimum, are consistent with accepted community standards; 94.22 (6) in response to complaints or sentinel events, evaluate 94.23 the performance of participating providers and conduct peer 94.24 review activities, such as: 94.25 (i) identifying practices that do not, at a minimum, meet 94.26 accepted community standards; and 94.27 (ii) taking action, if appropriate, to ensure that 94.28 participating providers meet accepted community standards; 94.29 (7) distribute information and educate providers regarding 94.30 accepted standards, treatment protocols, and practice 94.31 guidelines; 94.32 (8) support and promote population-based health quality 94.33 assessment and improvement through communication with public 94.34 health agencies and participation in regional or statewide 94.35 health quality assessment and improvement activities, including 94.36 the communication and participation required under section 95.1 62Q.075; and 95.2 (9) identify, document, and implement performance 95.3 improvement strategies related to program findings, including: 95.4 (i) measurable objectives for each action, including the 95.5 degree of expected change in persons or situations; 95.6 (ii) time frames for performance improvement activities; 95.7 (iii) persons responsible for implementation of performance 95.8 improvement strategies; and 95.9 (iv) a schedule to monitor the effectiveness of the 95.10 performance improvement strategies. 95.11 Subd. 4. [AUDITS.] The commissioner shall conduct routine 95.12 audits of quality assessment and performance improvement 95.13 programs to ensure compliance with this section. If an 95.14 independent organization has conducted an audit of the quality 95.15 assessment and performance improvement program of the health 95.16 plan company: 95.17 (1) the commissioner may accept the independent audit and 95.18 require no further audit if the results of the independent audit 95.19 show that the quality assessment and performance improvement 95.20 program of the health plan company meets the requirements of 95.21 this section; 95.22 (2) the commissioner may accept the independent audit and 95.23 limit further auditing if the results of the independent audit 95.24 show that the quality assessment and performance improvement 95.25 program of the health plan company partially meets the 95.26 requirements of this section. Auditing by the commissioner must 95.27 be limited to program areas where fulfillment of the 95.28 requirements of this section has not been demonstrated; 95.29 (3) the health plan company must demonstrate to the 95.30 commissioner that the independent organization that conducted 95.31 the audit is qualified and that the results of the audit 95.32 demonstrate that the quality assessment and performance 95.33 improvement program of the health plan company partially or 95.34 fully meets the requirements of this section; and 95.35 (4) if the commissioner has partially or fully accepted an 95.36 independent audit of the quality assessment and performance 96.1 improvement program of the health plan company, the commissioner 96.2 may use the finding of a deficiency with regard to statutes or 96.3 rules by an independent audit as the basis for a targeted audit 96.4 or enforcement action. 96.5 Subd. 5. [REPORTING AND DISCLOSURE.] (a) A health plan 96.6 company shall document and communicate information about its 96.7 quality assessment and performance improvement program according 96.8 to this subdivision. The health plan company shall: 96.9 (1) include a summary of its quality assessment and 96.10 performance improvement program in marketing materials; 96.11 (2) include a description of its quality assessment and 96.12 performance improvement program and a statement of patient 96.13 rights and responsibilities with respect to the program in the 96.14 certificate of coverage or handbook provided to newly enrolled 96.15 enrollees; 96.16 (3) make available annually to providers and enrollees 96.17 findings from its quality assessment and performance improvement 96.18 program and information about its progress in meeting internal 96.19 goals and external standards, when available. The reports shall 96.20 include a description of the methods used to assess each 96.21 specific area and an explanation of how any assumptions affect 96.22 the findings; and 96.23 (4) submit annually to the commissioner a comprehensive 96.24 summary of the activities required by subdivision 3 and the 96.25 findings described in clause (3). 96.26 (b) By July 1 of each year, a health plan company shall 96.27 file a report with the commissioner of health, without a filing 96.28 fee. The commissioner of health may specify the audit 96.29 procedures, format, and content of the report including 96.30 identification of the specific measures related to the outcomes 96.31 of care, effectiveness of care, use of services, access to care, 96.32 and patient satisfaction to be included. To determine the 96.33 specific measures to be reported, the commissioner of health 96.34 shall consider: 96.35 (1) current public health goals established under section 96.36 62J.212; and 97.1 (2) measures established by recognized state or national 97.2 health data reporting organizations and accreditation 97.3 organizations. 97.4 Sec. 14. [62U.14] [NETWORK ADEQUACY.] 97.5 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 97.6 section, the terms defined in this subdivision have the meanings 97.7 given. 97.8 (b) "General hospital" has the meaning given in Minnesota 97.9 Rules, part 4640.0100, subpart 4. 97.10 (c) "Service area" means the geographic locations, 97.11 identified according to recognized political subdivisions such 97.12 as cities, counties, and townships, in which the health plan 97.13 company is approved by the commissioner to market its managed 97.14 care product. 97.15 (d) "Specialized hospital" has the meaning given in 97.16 Minnesota Rules, part 4640.0100, subpart 10. 97.17 Subd. 2. [NETWORK ADEQUACY STANDARDS.] (a) A health plan 97.18 company providing a managed care plan shall maintain a network 97.19 that is sufficient in numbers and types of providers to ensure 97.20 that all services to enrollees in the managed care plan's 97.21 service area will be accessible without unreasonable delay. At 97.22 a minimum, the health plan company must meet the network 97.23 adequacy standards in paragraphs (b) to (v). 97.24 (b) The health plan company must have available, either 97.25 directly or through arrangements, appropriate and sufficient 97.26 personnel, physical resources, and equipment to meet the 97.27 projected needs of its enrollees for covered health care 97.28 services. The health plan company, in coordination with 97.29 participating providers, shall develop and implement written 97.30 standards or guidelines that assess the capacity of each 97.31 provider network to provide timely access to health care 97.32 services according to the following: the health plan company, 97.33 either directly or through its provider contracts, shall arrange 97.34 for covered health care services, including referrals to 97.35 participating and nonparticipating providers, to be accessible 97.36 to enrollees on a timely basis in accordance with medically 98.1 appropriate guidelines consistent with accepted standards of 98.2 practice. 98.3 (c) Covered persons must have access to emergency services 98.4 24 hours per day, seven days per week. 98.5 (d) Primary care and specialty physician services must be 98.6 available and accessible within the managed care plan's service 98.7 area. The health plan company shall fulfill this requirement 98.8 through written standards for: 98.9 (1) regularly scheduled appointments during normal business 98.10 hours; 98.11 (2) after hours clinics; 98.12 (3) use of a 24-hour answering service with standards for 98.13 maximum allowable call-back times based upon what is medically 98.14 appropriate to each situation; and 98.15 (4) referrals to urgent care centers, where available, and 98.16 to hospital emergency care. 98.17 (e) The health plan company shall provide or contract with 98.18 a sufficient number of primary care physicians to meet the 98.19 projected needs of its enrollees for primary care physician 98.20 services. 98.21 (f) The health plan company shall ensure that there are a 98.22 sufficient number of primary care physicians with hospital 98.23 admitting privileges at one or more participating general 98.24 hospitals within the managed care plan's service area to ensure 98.25 that necessary hospital admissions are made on a timely basis 98.26 consistent with accepted standards of practice. 98.27 (g) The health plan company shall provide directly, 98.28 contract for, or otherwise arrange for, specialty physician 98.29 services that are covered benefits and to which enrollees have 98.30 access in the managed care plan's service area. 98.31 (h) Specialty physician services to which enrollees do not 98.32 have continued access, for example, referrals for consultation 98.33 or second opinions, shall be provided by the health plan company 98.34 through contracts or other arrangements with specialty 98.35 physicians. 98.36 (i) The health plan company shall ensure that there are a 99.1 sufficient number of specialty physicians with hospital 99.2 admitting privileges to ensure that necessary hospital 99.3 admissions are made on a timely basis consistent with accepted 99.4 standards of practice. 99.5 (j) Services of one or more general hospitals licensed 99.6 under sections 144.50 to 144.58 must be provided through 99.7 contracts between the health plan company and hospitals. The 99.8 services must be available and accessible, on a timely basis 99.9 consistent with accepted standards of practice, 24 hours per 99.10 day, seven days per week, within the managed care plan's service 99.11 area. Services of specialized hospitals licensed under sections 99.12 144.50 to 144.58, including chemical dependency and mental 99.13 health services, must be provided through contracts between the 99.14 health plan company or its contracted providers and hospitals, 99.15 either within or outside the managed care plan's service area. 99.16 The services must be available during normal business hours 99.17 consistent with accepted standards of practice. 99.18 (k) The health plan company shall contract with or employ 99.19 sufficient numbers of providers of ancillary services to meet 99.20 the projected needs of its enrollees. The services must be 99.21 available during normal daytime business hours consistent with 99.22 accepted standards of practice. 99.23 (l) The health plan company shall contract with or employ 99.24 sufficient numbers of qualified providers of outpatient mental 99.25 health and chemical dependency services to meet the projected 99.26 needs of its enrollees consistent with accepted standards of 99.27 practice and meeting the following requirements: 99.28 (1) services for enrollees with alcohol and other chemical 99.29 dependency problems must be provided by outpatient treatment 99.30 programs licensed by the commissioner of human services under 99.31 Minnesota Rules, parts 9530.5000 to 9530.6400, or by hospitals 99.32 licensed under Minnesota Rules, chapter 4640; 99.33 (2) outpatient chemical dependency treatment programs 99.34 serving adolescents must meet all of the requirements of the 99.35 commissioner of human services contained in Minnesota Rules, 99.36 part 9530.6400; 100.1 (3) outpatient mental health services must be provided by 100.2 licensed psychiatrists, psychologists, social workers, marriage 100.3 and family therapists, or psychiatric nurses, as appropriate in 100.4 each case, and by mental health centers or mental health clinics 100.5 licensed by the commissioner of human services under Minnesota 100.6 Rules, chapter 9520; and 100.7 (4) the health plan company, either directly or through its 100.8 contracted mental health or chemical dependency provider, shall 100.9 have services available that are culturally specific or 100.10 appropriate to a specific age, gender, or sexual preference. 100.11 If any of the services in items (1) to (4) cannot be 100.12 provided by licensed providers and programs, the health plan 100.13 company shall file a request for an exception to the 100.14 requirements of items (1) to (4). A request for an exception is 100.15 considered a filing under Minnesota Rules, part 4685.3300. The 100.16 health plan company shall submit specific data in support of its 100.17 request. 100.18 (m) The health plan company shall provide directly, 100.19 contract for, or otherwise arrange for residential treatment 100.20 programs licensed by the commissioner of human services under 100.21 Minnesota Rules, parts 9530.4100 to 9530.4450, to provide 100.22 services to enrollees with alcohol and other chemical dependency 100.23 problems. 100.24 (n) In any case where the health plan company has an 100.25 insufficient number or type of participating providers to 100.26 provide a covered benefit, the health plan company shall ensure 100.27 that the enrollee obtains the covered benefit at no greater cost 100.28 to the enrollee than if the benefit were obtained from a 100.29 participating provider or shall make other arrangements 100.30 acceptable to the commissioner. 100.31 (o) If a specific managed care plan provider refuses to 100.32 continue to provide care to a specific managed care plan 100.33 enrollee, the health plan company shall furnish the enrollee 100.34 with the name, address, and telephone number of other 100.35 participating providers in the same area of medical specialty. 100.36 Examples of reasons for refusal to continue to provide care to 101.1 an enrollee are: unpaid bills incurred by that individual 101.2 before enrollment in the managed care plan; unpaid copayments or 101.3 coinsurance incurred by the enrollee after enrollment in the 101.4 managed care plan; an enrollee who is uncooperative or abusive 101.5 toward the provider; and the inability of the enrollee and the 101.6 provider to agree on a course of treatment. 101.7 (p) The health plan company is responsible for implementing 101.8 a system that, to the greatest possible extent, ensures that 101.9 referrals, either by the health plan company or by a 101.10 participating provider, are made to participating providers. An 101.11 enrollee cannot be held liable if the managed care plan 101.12 provider, in error, gives a referral to a nonparticipating 101.13 provider. This issue may be addressed in contracts between the 101.14 health plan company and its providers. 101.15 (q) Referral procedures must be described in an enrollee's 101.16 evidence of coverage and must be available to an enrollee upon 101.17 request for information regarding referral procedures. 101.18 Information regarding referral procedures must clearly describe 101.19 at least the following: 101.20 (1) under what circumstances and for what services a 101.21 referral is necessary; 101.22 (2) how to request a referral; 101.23 (3) how to request a standing referral; and 101.24 (4) how to appeal a referral determination. 101.25 (r) In plans in which referrals to specialty providers and 101.26 ancillary services are required, the health plan company shall 101.27 inform its primary care and other authorized providers of the 101.28 providers' responsibility to provide written referrals and any 101.29 specific procedures that must be followed in providing referrals. 101.30 (s) This paragraph applies to a health plan company that 101.31 arranges for the services of assigned or selected primary care 101.32 providers to provide initial and basic care to enrollees. An 101.33 enrollee who is dissatisfied with the assigned or selected 101.34 primary care provider must be allowed to change primary care 101.35 providers according to the health plan company's procedures and 101.36 policies. If requested by an enrollee or if determined to be 102.1 necessary because of a pattern of inappropriate utilization of 102.2 services, an enrollee's health care may be supervised and 102.3 coordinated by the primary care provider. 102.4 (t) Within the managed care plan's service area, the 102.5 maximum travel distance or time must be the lesser of 30 miles 102.6 or 30 minutes to the nearest provider of each of the following 102.7 services: primary care services, mental health services, and 102.8 general hospital services. The health plan company shall 102.9 designate which method is used. 102.10 (u) Within a managed care plan's service area, the maximum 102.11 travel distance or time must be the lesser of 60 miles or 60 102.12 minutes to the nearest provider of specialty physician services, 102.13 ancillary services, specialized hospital services, and all other 102.14 health services not listed in paragraph (t). The health carrier 102.15 shall designate which method is used. 102.16 (v) The commissioner shall grant an exception to a 102.17 requirement in paragraph (t) or (u) if the health plan company 102.18 can demonstrate with specific data that the requirement of 102.19 paragraph (t) or (u) is not feasible in a particular service 102.20 area or part of a service area. The health plan company shall 102.21 submit specific data in support of its request. Paragraphs (t) 102.22 and (u) do not apply if an enrollee is referred to a referral 102.23 center for health care services. Paragraph (t) does not apply 102.24 if an enrollee has chosen a managed care plan with full 102.25 knowledge that the managed care plan has no participating 102.26 providers within 30 miles or 30 minutes of the enrollee's place 102.27 of residence. 102.28 Subd. 3. [ACCESS PLAN; PRIOR APPROVAL.] Beginning January 102.29 1, 2002, a health plan company shall file for prior approval 102.30 with the commissioner an access plan meeting the requirements of 102.31 this section for each of the managed care plans that the health 102.32 plan company offers in the state. The health plan company shall 102.33 make the access plans available on its business premises and 102.34 shall provide them to any interested party upon request. The 102.35 health plan company shall prepare and file an access plan prior 102.36 to offering a new managed care plan and shall update and file 103.1 changes for an existing access plan whenever it makes any 103.2 material change to an existing managed care plan. The access 103.3 plan must describe or contain at least the following: 103.4 (1) the health plan company's network that is available to 103.5 enrollees under the managed care plan, including a description 103.6 of the available care systems, if applicable; 103.7 (2) the health plan company's procedures for making 103.8 referrals, including standing referrals under section 62Q.58 103.9 within and outside its network; 103.10 (3) the health plan company's process for monitoring and 103.11 ensuring on an ongoing basis the sufficiency of the network to 103.12 meet the health care needs of populations that enroll in the 103.13 managed care plan; 103.14 (4) the health plan company's system for ensuring file 103.15 coordination and continuity of care for enrollees referred to 103.16 specialty physicians; 103.17 (5) the health plan company's process for enabling 103.18 enrollees to change primary care professionals; and 103.19 (6) the health plan company's proposed plan for providing 103.20 continuity of care in the event of contract termination as 103.21 required under section 62Q.56. 103.22 Subd. 4. [ENROLLEES NOT IN SERVICE AREAS.] (a) An eligible 103.23 person must not be denied continued enrollment in a managed care 103.24 plan solely on the basis that the eligible person lives or works 103.25 outside of the designated service area. For purposes of this 103.26 section, "continued enrollment" includes, but is not limited to, 103.27 enrollment in continuation or conversion coverage. 103.28 (b) A health plan company may decline to enroll an eligible 103.29 person in a managed care plan solely on the basis that the 103.30 eligible person lives outside of the designated service area. 103.31 If a health plan company chooses to permit enrollment of such a 103.32 person, the health plan company shall first provide the 103.33 prospective enrollee with a written notice of the consequences 103.34 of this special enrollment. 103.35 (c) To the extent that this subdivision conflicts with 103.36 section 62D.12, subdivision 2, this subdivision governs. 104.1 Sec. 15. [62U.15] [PROVIDER CONTRACTS.] 104.2 (a) A health plan company shall, in connection with a 104.3 managed care plan, comply with section 62D.123. 104.4 (b) An agreement to provide health care services between a 104.5 provider and a health plan company must require the provider to 104.6 cooperate with and participate in the health plan company's 104.7 quality assessment and performance improvement program, dispute 104.8 resolution procedure, and utilization review program. 104.9 (c) An agreement to provide health care services between a 104.10 provider and a health plan company must require that if the 104.11 provider terminates the agreement, without cause, the provider 104.12 shall give the health plan company 120 days' advance notice of 104.13 termination. 104.14 (d) The rights and responsibilities under a contract 104.15 between a health plan company and a participating provider must 104.16 not be assigned or delegated by the provider without the prior 104.17 written consent of the health plan company and the contract must 104.18 so provide. 104.19 (e) A health plan company is responsible for ensuring that 104.20 a participating provider furnishes covered benefits to all 104.21 enrollees without regard to the enrollee's enrollment in the 104.22 plan as a private purchaser of the plan or as a participant in 104.23 publicly financed programs of health care services. This 104.24 paragraph does not apply to circumstances when the provider 104.25 should not render services due to limitations arising from lack 104.26 of training, experience, or skill or from licensing restrictions. 104.27 (f) A health plan company shall not penalize a provider 104.28 because the provider, in good faith, reports to state or federal 104.29 authorities any act or practice by the health plan company that 104.30 jeopardizes patient health or welfare. 104.31 (g) A health plan company shall establish a mechanism by 104.32 which the participating providers may determine in a timely 104.33 manner whether or not a person is covered by the health plan 104.34 company. 104.35 (h) A health plan company shall establish procedures for 104.36 resolution of administrative, payment, or other disputes between 105.1 providers and the health plan company. 105.2 (i) A contract between a health plan company and a provider 105.3 must not contain definitions or other provisions that conflict 105.4 with the definitions or provisions contained in the managed care 105.5 plan or this section. 105.6 Sec. 16. [62U.16] [UNIFORM ENROLLEE COST-SHARING.] 105.7 Subdivision 1. [COPAYMENTS.] Copayments in managed care 105.8 plans must not be unfair, unjust, or inequitable, as provided in 105.9 section 62A.02. No managed care plan may provide for copayments 105.10 in excess of 50 percent, except for noncovered benefits. 105.11 Noncovered benefits include covered services that the enrollee 105.12 elects without prior approval to receive out-of-network or from 105.13 a broader network and nonformulary prescription drugs. 105.14 Copayments may be expressed as percentages or flat fees as 105.15 provided in Minnesota Rules, part 4685.0801. The 25 percent 105.16 copayment limitation of Minnesota Rules, part 4685.0700, subpart 105.17 3, item A, subitem (3), unit (b); and part 4685.0801, subparts 1 105.18 and 2, do not apply to a managed care plan that complies with 105.19 this subdivision. 105.20 Subd. 2. [DEDUCTIBLES.] (a) Deductibles included in 105.21 managed care plans must not exceed: 105.22 (1) for group health plans, $5,000 per individual per year 105.23 and $10,000 per family per year; or 105.24 (2) for individual health plans, $10,000 per person per 105.25 year and $20,000 per family per year. 105.26 (b) Covered charges must count toward the deductible for 105.27 individual health plans whether incurred from participating or 105.28 nonparticipating providers. 105.29 Subd. 3. [ANNUAL OUT-OF-POCKET MAXIMUMS.] A managed care 105.30 plan must provide for an out-of-pocket maximum on enrollee 105.31 cost-sharing not to exceed $8,000 per person per year on group 105.32 health plans and $15,000 per person per year on individual 105.33 health plans. Covered charges must count toward the 105.34 out-of-pocket maximum whether incurred from participating or 105.35 nonparticipating providers. 105.36 Subd. 4. [LIFETIME MAXIMUM BENEFITS.] A managed care plan 106.1 must not provide for a lifetime maximum benefit limit less than 106.2 the amount required under section 62E.12 for coverage issued by 106.3 the Minnesota comprehensive health association. If a managed 106.4 care plan includes a lifetime maximum benefit limit, the 106.5 benefits that were provided to the enrollee when the managed 106.6 care plan did not have a lifetime maximum benefit limit may not 106.7 be counted toward that limit. 106.8 Subd. 5. [EXCEPTIONS.] (a) Subdivisions 1 and 2 do not 106.9 apply to the extent that another law requires lower enrollee 106.10 cost-sharing for specific services than that specified in 106.11 subdivisions 1 and 2 or to preventive services as defined in 106.12 Minnesota Rules, part 4685.0801, subpart 8. 106.13 (b) This section does not apply to the two small employer 106.14 plans described in section 62L.05 or to plans described in 106.15 section 62L.055. 106.16 Sec. 17. [REPEALER.] 106.17 (a) Minnesota Statutes 2000, sections 62D.09, subdivision 106.18 3; and 62D.12, subdivision 19, are repealed. 106.19 (b) Minnesota Rules, parts 4685.0801, subpart 7; 4685.1010; 106.20 4685.1300; 4685.1900; 4685.2000; and 4685.2200, subpart 3, are 106.21 repealed. 106.22 (c) Minnesota Statutes, sections 62D.123, subdivisions 2, 106.23 3, and 4; and 62D.124, are repealed effective January 1, 2004. 106.24 (d) Minnesota Rules, parts 4685.1105; 4685.1110; 4685.1115; 106.25 4685.1120; 4685.1125; and 4685.1130, are repealed effective 106.26 January 1, 2004. 106.27 Sec. 18. [EFFECTIVE DATE.] 106.28 Sections 1 to 12, 16, and 17 are effective January 1, 2003, 106.29 and apply to managed care plans issued or renewed on or after 106.30 that date. Sections 13 to 15 are effective January 1, 2004, and 106.31 apply to managed care plans issued or renewed on or after that 106.32 date. 106.33 ARTICLE 6 106.34 RELATED AND CONFORMING CHANGES IN MANAGED CARE REGULATION 106.35 Section 1. Minnesota Statutes 2000, section 62A.021, 106.36 subdivision 1, is amended to read: 107.1 Subdivision 1. [LOSS RATIO STANDARDS.] (a) Notwithstanding 107.2 section 62A.02, subdivision 3, relating to loss ratios, health 107.3 care policies or certificates shall not be delivered or issued 107.4 for delivery to an individual or to a small employer as defined 107.5 in section 62L.02, unless the policies or certificates can be 107.6 expected, as estimated for the entire period for which rates are 107.7 computed to provide coverage, to return to Minnesota 107.8 policyholders and certificate holders in the form of aggregate 107.9 benefits not including anticipated refunds or credits, provided 107.10 under the policies or certificates, (1) at least 75 percent of 107.11 the aggregate amount of premiums earned in the case of policies 107.12 issued in the small employer market, as defined in section 107.13 62L.02, subdivision 27, calculated on an aggregate basis; and 107.14 (2) at least 65 percent of the aggregate amount of premiums 107.15 earned in the case of each policy form or certificate form 107.16 issued in the individual market; calculated on the basis of 107.17 incurred claims experience or incurred health care expenses 107.18 where coverage is provided by a health maintenance organization 107.19 on a service rather than reimbursement basis and earned premiums 107.20 for the period and according to accepted actuarial principles 107.21 and practices. Assessments by the reinsurance association 107.22 created in chapter 62L and all types of taxes, surcharges, or 107.23 assessments created by Laws 1992, chapter 549, or created on or 107.24 after April 23, 1992, are included in the calculation of 107.25 incurred claims experience or incurred health care expenses. 107.26 The applicable percentage for policies and certificates issued 107.27 in the small employer market, as defined in section 62L.02, 107.28 increases by one percentage point on July 1 of each year, 107.29 beginning on July 1, 1994, until an 82 percent loss ratio is 107.30 reached on July 1, 2000. The applicable percentage for policy 107.31 forms and certificate forms issued in the individual market 107.32 increases by one percentage point on July 1 of each year, 107.33 beginning on July 1, 1994, until a 72 percent loss ratio is 107.34 reached on July 1, 2000. A health carrier that enters a market 107.35 after July 1, 1993, does not start at the beginning of the 107.36 phase-in schedule and must instead comply with the loss ratio 108.1 requirements applicable to other health carriers in that market 108.2 for each time period. Premiums earned and claims incurred in 108.3 markets other than the small employer and individual markets are 108.4 not relevant for purposes of this section. 108.5 (b) All filings of rates and rating schedules shall 108.6 demonstrate that actual expected claims in relation to premiums 108.7 comply with the requirements of this section when combined with 108.8 actual experience to date. Filings of rate revisions shall also 108.9 demonstrate that the anticipated loss ratio over the entire 108.10 future period for which the revised rates are computed to 108.11 provide coverage can be expected to meet the appropriate loss 108.12 ratio standards, and aggregate loss ratio from inception of the 108.13 policy form or certificate form shall equal or exceed the 108.14 appropriate loss ratio standards. 108.15 (c) A health carrier that issues health care policies and 108.16 certificates to individuals or to small employers, as defined in 108.17 section 62L.02, in this state shall file annually its rates, 108.18 rating schedule, and supporting documentation including ratios 108.19 of incurred losses to earned premiums by policy form or 108.20 certificate form duration for approval by the commissioner 108.21 according to the filing requirements and procedures prescribed 108.22 by the commissioner. The supporting documentation shall also 108.23 demonstrate in accordance with actuarial standards of practice 108.24 using reasonable assumptions that the appropriate loss ratio 108.25 standards can be expected to be met over the entire period for 108.26 which rates are computed. The demonstration shall exclude 108.27 active life reserves. If the data submitted does not confirm 108.28 that the health carrier has satisfied the loss ratio 108.29 requirements of this section, the commissioner shall notify the 108.30 health carrier in writing of the deficiency. The health carrier 108.31 shall have 30 days from the date of the commissioner's notice to 108.32 file amended rates that comply with this section. If the health 108.33 carrier fails to file amended rates within the prescribed time, 108.34 the commissioner shall order that the health carrier's filed 108.35 rates for the nonconforming policy form or certificate form be 108.36 reduced to an amount that would have resulted in a loss ratio 109.1 that complied with this section had it been in effect for the 109.2 reporting period of the supplement. The health carrier's 109.3 failure to file amended rates within the specified time or the 109.4 issuance of the commissioner's order amending the rates does not 109.5 preclude the health carrier from filing an amendment of its 109.6 rates at a later time. The commissioner shall annually make the 109.7 submitted data available to the public at a cost not to exceed 109.8 the cost of copying. The data must be compiled in a form useful 109.9 for consumers who wish to compare premium charges and loss 109.10 ratios. 109.11 (d) Each sale of a policy or certificate that does not 109.12 comply with the loss ratio requirements of this section is an 109.13 unfair or deceptive act or practice in the business of insurance 109.14 and is subject to the penalties in sections 72A.17 to 72A.32. 109.15 (e)(1) For purposes of this section, health care policies 109.16 issued as a result of solicitations of individuals through the 109.17 mail or mass media advertising, including both print and 109.18 broadcast advertising, shall be treated as individual policies. 109.19 (2) For purposes of this section, (i) "health care policy" 109.20 or "health care certificate" is a health plan as defined in 109.21 section 62A.011; and (ii) "health carrier" has the meaning given 109.22 in section 62A.011 and includes all health carriers delivering 109.23 or issuing for delivery health care policies or certificates in 109.24 this state or offering these policies or certificates to 109.25 residents of this state. 109.26 (f) The loss ratio phase-in as described in paragraph (a) 109.27 does not apply to individual policies and small employer 109.28 policies issued by a health plan company that is assessed less 109.29 than three percent of the total annual amount assessed by the 109.30 Minnesota comprehensive health association. These policies must 109.31 meet a 68 percent loss ratio for individual policies, a 71 109.32 percent loss ratio for small employer policies with fewer than 109.33 ten employees, and a 75 percent loss ratio for all other small 109.34 employer policies. 109.35 (g) Thecommissionerscommissioner of commerceand health109.36 shalleachannually issue a public report listing, by health 110.1 plan company, the actual loss ratios experienced in the 110.2 individual and small employer markets in this stateby the110.3health plan companies that the commissioners respectively110.4regulate. The commissioners shall coordinate release of these110.5reports so as to release them as a joint report or as separate110.6reports issued the same day. The reportor reportsshall be 110.7 released no later than June 1 for loss ratios experienced for 110.8 the preceding calendar year. Health plan companies shall 110.9 provide to thecommissionerscommissioner any information 110.10 requested by thecommissionerscommissioner for purposes of this 110.11 paragraph. 110.12 Sec. 2. Minnesota Statutes 2000, section 62A.105, is 110.13 amended to read: 110.14 62A.105 [COVERAGES; TRANSFERS TO SUBSTANTIALLY SIMILAR 110.15 PRODUCTS.] 110.16 Subdivision 1. [SCOPE.] No individual policy of accident 110.17 and sickness regulated under this chapter orsubscriber contract110.18regulated under chapter 62Cindividual health plan shall be 110.19 issued, renewed, or continued to provide coverage to a Minnesota 110.20 resident unless it satisfies the requirements of subdivision 2. 110.21 Subd. 2. [REQUIREMENT.] If an issuer of policies or plans 110.22 referred to in subdivision 1 ceases to offer a particular policy 110.23 orsubscriber contractplan to the general public or otherwise 110.24 stops adding new insureds to the group of covered persons, the 110.25 issuer shall allow any covered person to transfer to another 110.26 substantially similar policy orcontractplan currently being 110.27 sold by the issuer. The issuer shall permit the transfer 110.28 without any preexisting condition limitation, waiting period, or 110.29 other restriction of any type other than those which applied to 110.30 the insured under the prior policy orcontractplan. This 110.31 section does not apply to persons who were covered under an 110.32 individual policy orcontractplan prior to July 1, 1994. 110.33 Sec. 3. Minnesota Statutes 2000, section 62A.615, is 110.34 amended to read: 110.35 62A.615 [PREEXISTING CONDITIONS DISCLOSED AT TIME OF 110.36 APPLICATION.] 111.1 Noinsurerhealth plan company may cancel or rescind a 111.2health insurancepolicy of accident and sickness insurance or a 111.3 health plan for a preexisting condition of which the application 111.4 or other information provided by the insured reasonably gave the 111.5insurerhealth plan company notice. Noinsurerhealth plan 111.6 company may restrict coverage for a preexisting condition of 111.7 which the application or other information provided by the 111.8 insured reasonably gave theinsurerhealth plan company notice 111.9 unless the coverage is restricted at the time the policy or plan 111.10 is issued and the restriction is disclosed in writing to the 111.11 insured at the time the policy or plan is issued. 111.12 Sec. 4. Minnesota Statutes 2000, section 62D.02, 111.13 subdivision 3, is amended to read: 111.14 Subd. 3. [COMMISSIONER OF HEALTH ORCOMMISSIONER.] 111.15"Commissioner of health" or"Commissioner" means the state 111.16 commissioner ofhealthcommerce or a designee. 111.17 Sec. 5. Minnesota Statutes 2000, section 62D.02, 111.18 subdivision 8, is amended to read: 111.19 Subd. 8. [HEALTH MAINTENANCE CONTRACT.] "Health 111.20 maintenance contract" means any contract whereby a health 111.21 maintenance organization agrees to provide comprehensive health 111.22 maintenance services to enrollees, provided that the contract 111.23 may contain reasonable enrollee copayment provisions. An 111.24 individual or group health maintenance contract may contain the 111.25 copayment and deductible provisions specified in this 111.26 subdivision. Copayment and deductible provisions in group 111.27 contracts shall not discriminate on the basis of age, sex, race, 111.28 length of enrollment in the plan, or economic status; and during 111.29 every open enrollment period in which all offered health benefit 111.30 plans, including those subject to the jurisdiction of the 111.31commissioners of commerce or healthcommissioner, fully 111.32 participate without any underwriting restrictions, copayment and 111.33 deductible provisions shall not discriminate on the basis of 111.34 preexisting health status.In no event shall the sum of the111.35annual copayments and deductible exceed the maximum111.36out-of-pocket expenses allowable for a number three qualified112.1plan under section 62E.06, nor shall that sum exceed $5,000 per112.2family. The annual deductible must not exceed $1,000 per112.3person. The annual deductible must not apply to preventive112.4health services as described in Minnesota Rules, part 4685.0801,112.5subpart 8.Where sections 62D.01 to 62D.30 permit a health 112.6 maintenance organization to contain reasonable copayment 112.7 provisions for preexisting health status, these provisions may 112.8 vary with respect to length of enrollment in the plan. Any 112.9 contract may provide for health care services in addition to 112.10 those set forth in subdivision 7. 112.11 Sec. 6. Minnesota Statutes 2000, section 62D.12, 112.12 subdivision 1, is amended to read: 112.13 Subdivision 1. [FALSE REPRESENTATIONS.] No health 112.14 maintenance organization or representative thereof may cause or 112.15 knowingly permit the use of advertising or solicitation which is 112.16 untrue or misleading, or any form of evidence of coverage which 112.17 is deceptive. Each health maintenance organization shall be 112.18 subject to sections 72A.17 to 72A.32, relating to the regulation 112.19 of trade practices, except(a)to the extent that the nature of 112.20 a health maintenance organization renders such sections clearly 112.21 inappropriateand (b) that enforcement shall be by the112.22commissioner of health and not by the commissioner of commerce. 112.23 Every health maintenance organization shall be subject to 112.24 sections 8.31 and 325F.69. 112.25 Sec. 7. Minnesota Statutes 2000, section 62D.15, 112.26 subdivision 1, is amended to read: 112.27 Subdivision 1. [GROUNDS FOR SUSPENSION OR REVOCATION.] The 112.28 commissionerof healthmay suspend or revoke any certificate of 112.29 authority issued to a health maintenance organization under 112.30 sections 62D.01 to 62D.30 if the commissioner finds that: 112.31(a)(1) the health maintenance organization is operating 112.32 significantly in contravention of its basic organizational 112.33 document, its health maintenance contract, or in a manner 112.34 contrary to that described in and reasonably inferred from any 112.35 other information submitted under section 62D.03, unless 112.36 amendments to such submissions have been filed with and approved 113.1 by the commissionerof health; 113.2(b)(2) the health maintenance organization issues 113.3 evidences of coverage which do not comply with the requirements 113.4 of section 62D.07; 113.5(c)(3) the health maintenance organization is unable to 113.6 fulfill its obligations to furnish comprehensive health 113.7 maintenance services as required under its health maintenance 113.8 contract; 113.9(d)(4) the health maintenance organization is no longer 113.10 financially responsible and may reasonably be expected to be 113.11 unable to meet its obligations to enrollees or prospective 113.12 enrollees; 113.13(e)(5) the health maintenance organization has failed to 113.14 implement a mechanism affording the enrollees an opportunity to 113.15 participate in matters of policy and operation under section 113.16 62D.06; 113.17(f)(6) the health maintenance organization has failed to 113.18 implement the complaint system required by section 62D.11 in a 113.19 manner designed to reasonably resolve valid complaints; 113.20(g)(7) the health maintenance organization, or any person 113.21 acting with its sanction, has advertised or merchandised its 113.22 services in an untrue, misrepresentative, misleading, deceptive, 113.23 or unfair manner; 113.24(h)(8) the continued operation of the health maintenance 113.25 organization would be hazardous to its enrollees;or113.26(i)(9) the health maintenance organization has otherwise 113.27 failed to substantially comply with sections 62D.01 to 62D.30 or 113.28 with any other statute or administrative rule applicable to 113.29 health maintenance organizations, or has submitted false 113.30 information in any report required hereunder; 113.31 (10) any situation described in section 60A.052, 113.32 subdivision 1, exists; 113.33 (11) the provider network in the managed care service area 113.34 is inadequate in terms of the number, location, and field of 113.35 specialty of its providers; or 113.36 (12) the health services provided or arranged are 114.1 substantially inappropriate, untimely, or otherwise inconsistent 114.2 with current professional knowledge and accepted standards of 114.3 practice. 114.4 Sec. 8. Minnesota Statutes 2000, section 62D.24, is 114.5 amended to read: 114.6 62D.24 [STATECOMMISSIONER OFHEALTH'SCOMMERCE'S AUTHORITY 114.7 TO CONTRACT.] 114.8 The commissioner ofhealthcommerce, in carrying out the 114.9 obligations under sections 62D.01 to 62D.30, may contract with 114.10 the commissioner ofcommercehealth or other qualified persons 114.11 to make recommendations concerning the determinations required 114.12 to be made. Such recommendations may be accepted in full or in 114.13 part by the commissioner ofhealthcommerce. 114.14 Sec. 9. Minnesota Statutes 2000, section 62E.05, 114.15 subdivision 2, is amended to read: 114.16 Subd. 2. [ANNUAL REPORT.] (a) All health plan companies, 114.17 as defined in section 62Q.01, shall annually report to the 114.18 commissionerresponsible for their regulation. The following 114.19 information shall be reported to theappropriatecommissioner on 114.20 February 1 of each year: 114.21 (1) the number of individuals and groups who received 114.22 coverage in the prior year through the qualified plans; and 114.23 (2) the number of individuals and groups who received 114.24 coverage in the prior year through each of the unqualified plans 114.25 sold by the company. 114.26 (b) The state of Minnesota or any of its departments, 114.27 agencies, programs, instrumentalities, or political 114.28 subdivisions, shall report in writing to the association and to 114.29 the commissioner of commerce no later than September 15 of each 114.30 year regarding the number of persons and the amount of premiums, 114.31 deductibles, copayments, or coinsurance that it paid for on 114.32 behalf of enrollees in the comprehensive health association. 114.33 This report must contain only summary information and must not 114.34 include any individually identifiable data. The report must 114.35 cover the 12-month period ending the preceding June 30. 114.36 Sec. 10. Minnesota Statutes 2000, section 62E.11, 115.1 subdivision 13, is amended to read: 115.2 Subd. 13. [STATE FUNDING; EFFECT ON PREMIUM RATES OF 115.3 MEMBERS.] In approving the premium rates as required in sections 115.4 62A.65, subdivision 3; and 62L.08, subdivision 8, the 115.5commissioners of health andcommissioner of commerce shall 115.6 ensure that any appropriation to reduce the annual assessment 115.7 made on the contributing members to cover the costs of the 115.8 Minnesota comprehensive health insurance plan as required under 115.9 this section is reflected in the premium rates charged by each 115.10 contributing member. 115.11 Sec. 11. Minnesota Statutes 2000, section 62E.14, 115.12 subdivision 6, is amended to read: 115.13 Subd. 6. [TERMINATION OF INDIVIDUAL POLICY OR CONTRACT.] A 115.14 Minnesota resident who holds an individual health maintenance 115.15 contract, individual nonprofit health service corporation 115.16 contract, or an individual insurance policy previously approved 115.17 by thecommissioners of health orcommissioner of commerce, may 115.18 enroll in the comprehensive health insurance plan with a waiver 115.19 of the preexisting condition as described in subdivision 3, 115.20 without interruption in coverage, provided (1) no replacement 115.21 coverage that meets the requirements of section 62D.121 was 115.22 offered by the contributing member, and (2) the policy or 115.23 contract has been terminated for reasons other than (a) 115.24 nonpayment of premium; (b) failure to make copayments required 115.25 by the health care plan; (c) moving out of the area served; or 115.26 (d) a materially false statement or misrepresentation by the 115.27 enrollee in the application for membership; and, provided 115.28 further, that the option to enroll in the plan is exercised 115.29 within 30 days of termination of the existing policy or contract. 115.30 Coverage allowed under this section is effective when the 115.31 contract or policy is terminated and the enrollee has completed 115.32 the proper application and paid the required premium or fee. 115.33 Expenses incurred from the preexisting conditions of 115.34 individuals enrolled in the state plan under this subdivision 115.35 must be paid by the contributing member canceling coverage as 115.36 set forth in section 62E.11, subdivision 10. 116.1 The application must include evidence of termination of the 116.2 existing policy or certificate as required in subdivision 1. 116.3 Sec. 12. Minnesota Statutes 2000, section 62J.041, 116.4 subdivision 4, is amended to read: 116.5 Subd. 4. [MONITORING OF RESERVES.] (a) Thecommissioners116.6of health andcommissioner of commerce shall monitor health plan 116.7 company reserves and net worth as established under chapters 116.8 60A, 62C, 62D, 62H, and 64B, with respect to the health plan116.9companies that each commissioner respectively regulatesto 116.10 assess the degree to which savings resulting from the 116.11 establishment of cost containment goals are passed on to 116.12 consumers in the form of lower premium rates. 116.13 (b) Health plan companies shall fully reflect in the 116.14 premium rates the savings generated by the cost containment 116.15 goals. No premium rate, currently reviewed by thedepartments116.16of health orcommissioner of commerce, may be approved for those 116.17 health plan companies unless the health plan company establishes 116.18 to the satisfaction of the commissioner of commerceor the116.19commissioner of health, as appropriate,that the proposed new 116.20 rate would comply with this paragraph. 116.21 (c) Health plan companies, except those licensed under 116.22 chapter 60A to sell accident and sickness insurance under 116.23 chapter 62A, shall annually before the end of the fourth fiscal 116.24 quarter provide to the commissioner ofhealth orcommerce, as116.25applicable,a projection of the level of reserves the company 116.26 expects to attain during each quarter of the following fiscal 116.27 year. These health plan companies shall submit with required 116.28 quarterly financial statements a calculation of the actual 116.29 reserve level attained by the company at the end of each quarter 116.30 including identification of the sources of any significant 116.31 changes in the reserve level and an updated projection of the 116.32 level of reserves the health plan company expects to attain by 116.33 the end of the fiscal year. In cases where the health plan 116.34 company has been given a certificate to operate a new health 116.35 maintenance organization under chapter 62D, or been licensed as 116.36 a community integrated service network under chapter 62N, or 117.1 formed an affiliation with one of these organizations, the 117.2 health plan company shall also submit with its quarterly 117.3 financial statement, total enrollment at the beginning and end 117.4 of the quarter and enrollment changes within each service area 117.5 of the new organization. The reserve calculations shall be 117.6 maintained by thecommissionerscommissioner of commerce as 117.7 trade secret information, except to the extent that such 117.8 information is also required to be filed by another provision of 117.9 state law and is not treated as trade secret information under 117.10 such other provisions. 117.11 (d) Health plan companies in paragraph (c) whose reserves 117.12 are less than the required minimum or more than the required 117.13 maximum at the end of the fiscal year shall submit a plan of 117.14 corrective action to the commissioner ofhealth orcommerce 117.15 under subdivision 7. 117.16 (e) The commissioner of commerce, in consultation with the117.17commissioner of health,shall report to the legislature no later 117.18 than January 15, 1995, as to whether the concept of a reserve 117.19 corridor or other mechanism for purposes of monitoring reserves 117.20 is adaptable for use with indemnity health insurers that do 117.21 business in multiple states and that must comply with their 117.22 domiciliary state's reserves requirements. 117.23 Sec. 13. Minnesota Statutes 2000, section 62J.701, is 117.24 amended to read: 117.25 62J.701 [GOVERNMENTAL PROGRAMS.] 117.26 Beginning January 1, 1999, the provisions in paragraphs (a) 117.27 to (d) apply. 117.28 (a) For purposes of sections 62J.695 to 62J.80, the 117.29 requirements and other provisions that apply to health plan 117.30 companies also apply to governmental programs. 117.31 (b) For purposes of this section, "governmental programs" 117.32 means the medical assistance program, the MinnesotaCare program, 117.33 the general assistance medical care program, the state employee 117.34 group insurance program, the public employees insurance program 117.35 under section 43A.316, and coverage provided by political 117.36 subdivisions under section 471.617. 118.1 (c) Notwithstanding paragraph (a), section 62J.72 does not 118.2 apply to the fee-for-service programs under medical assistance, 118.3 MinnesotaCare, and general assistance medical care. 118.4 (d) If a state commissioner or local unit of government 118.5 contracts with a health plan company or a third-party 118.6 administrator, the contract may assign any obligations under 118.7 paragraph (a) to the health plan company or third-party 118.8 administrator. Nothing in this paragraph shall be construed to 118.9 remove or diminish any enforcement responsibilities of the 118.10commissioners of health orcommissioner of commerce provided in 118.11 sections 62J.695 to 62J.80. 118.12 Sec. 14. Minnesota Statutes 2000, section 62J.74, 118.13 subdivision 1, is amended to read: 118.14 Subdivision 1. [AUTHORITY.] Thecommissionerscommissioner 118.15 ofhealth andcommerce shalleachperiodically review contracts 118.16 and arrangements among health care providing entities and health 118.17 plan companiesthey regulateto determine compliance with 118.18 sections 62J.70 to 62J.73. Any person may submit a contract or 118.19 arrangement to therelevantcommissioner for review if the 118.20 person believes sections 62J.70 to 62J.73 have been violated. 118.21 Any provision of a contract or arrangement found by therelevant118.22 commissioner to violate this section is null and void, and the 118.23relevantcommissioner may assess civil penalties against the 118.24 health plan company in an amount not to exceed $2,500 for each 118.25 day the contract or arrangement is in effect, and may use the 118.26 enforcement procedures otherwise available to the commissioner. 118.27 All due process rights afforded under chapter 14 apply to this 118.28 section. 118.29 Sec. 15. Minnesota Statutes 2000, section 62J.74, 118.30 subdivision 2, is amended to read: 118.31 Subd. 2. [ASSISTANCE TO LICENSING BOARDS.] A 118.32 health-related licensing board as defined under section 214.01, 118.33 subdivision 2, shall submit a contract or arrangement to the 118.34relevantcommissioner of commerce for review if the board 118.35 believes sections 62J.70 to 62J.73 have been violated. If the 118.36 commissioner determines that any provision of a contract or 119.1 arrangement violates those sections, the board may take 119.2 disciplinary action against any person who is licensed or 119.3 regulated by the board who entered into the contract arrangement. 119.4 Sec. 16. Minnesota Statutes 2000, section 62J.75, is 119.5 amended to read: 119.6 62J.75 [CONSUMER ADVISORY BOARD.] 119.7 (a) The consumer advisory board consists of 18 members 119.8 appointed in accordance with paragraph (b). All members must be 119.9 public, consumer members who: 119.10 (1) do not have and never had a material interest in either 119.11 the provision of health care services or in an activity directly 119.12 related to the provision of health care services, such as health 119.13 insurance sales or health plan administration; 119.14 (2) are not registered lobbyists; and 119.15 (3) are not currently responsible for or directly involved 119.16 in the purchasing of health insurance for a business or 119.17 organization. 119.18 (b) The governor, the speaker of the house of 119.19 representatives, and the subcommittee on committees of the 119.20 committee on rules and administration of the senate shall each 119.21 appoint six members. Members may be compensated in accordance 119.22 with section 15.059, subdivision 3, except that members shall 119.23 not receive per diem compensation or reimbursements for child 119.24 care expenses. 119.25 (c) The board shall advise thecommissioners of health and119.26 commissioner of commerce on the following: 119.27 (1) the needs of health care consumers and how to better 119.28 serve and educate the consumers on health care concerns and 119.29 recommend solutions to identified problems; and 119.30 (2) consumer protection issues in the self-insured market, 119.31 including, but not limited to, public education needs. 119.32 The board also may make recommendations to the legislature 119.33 on these issues. 119.34 (d) The board and this section expire June 30, 2001. 119.35 Sec. 17. Minnesota Statutes 2000, section 62L.02, 119.36 subdivision 8, is amended to read: 120.1 Subd. 8. [COMMISSIONER.] "Commissioner" means the 120.2 commissioner of commercefor health carriers subject to the120.3jurisdiction of the department of commerce or the commissioner120.4of health for health carriers subject to the jurisdiction of the120.5department of health,or therelevantcommissioner's designated 120.6 representative.For purposes of sections 62L.13 to 62L.22,120.7"commissioner" means the commissioner of commerce or that120.8commissioner's designated representative.120.9 Sec. 18. Minnesota Statutes 2000, section 62L.05, 120.10 subdivision 12, is amended to read: 120.11 Subd. 12. [DEMONSTRATION PROJECTS.] Nothing in this 120.12 chapter prohibits a health maintenance organization from 120.13 offering a demonstration project authorized under section 62D.30. 120.14 The commissionerof healthmay approve a demonstration project 120.15 which offers benefits that do not meet the requirements of a 120.16 small employer plan if the commissioner finds that the 120.17 requirements of section 62D.30 are otherwise met. 120.18 Sec. 19. Minnesota Statutes 2000, section 62L.08, 120.19 subdivision 10, is amended to read: 120.20 Subd. 10. [RATING REPORT.] Beginning January 1, 1995, and 120.21 annually thereafter, thecommissionerscommissioner ofhealth120.22andcommerce shall provide ajointreport to the legislature on 120.23 the effect of the rating restrictions required by this section 120.24 and the appropriateness of proceeding with additional rate 120.25 reform. Each report must include an analysis of the 120.26 availability of health care coverage due to the rating reform, 120.27 the equitable and appropriate distribution of risk and 120.28 associated costs, the effect on the self-insurance market, and 120.29 any resulting or anticipated change in health plan design and 120.30 market share and availability of health carriers. 120.31 Sec. 20. Minnesota Statutes 2000, section 62L.08, 120.32 subdivision 11, is amended to read: 120.33 Subd. 11. [LOSS RATIO STANDARDS.] Notwithstanding section 120.34 62A.02, subdivision 3, relating to loss ratios, each policy or 120.35 contract form used with respect to a health benefit plan 120.36 offered, or issued in the small employer market, is subject, 121.1 beginning July 1, 1993, to section 62A.021.The commissioner of121.2health has, with respect to carriers under that commissioner's121.3jurisdiction, all of the powers of the commissioner of commerce121.4under that section.121.5 Sec. 21. Minnesota Statutes 2000, section 62L.09, 121.6 subdivision 3, is amended to read: 121.7 Subd. 3. [REENTRY PROHIBITION.] (a) Except as otherwise 121.8 provided in paragraph (b), a health carrier that ceases to do 121.9 business in the small employer market after July 1, 1993, is 121.10 prohibited from writing new business in the small employer 121.11 market in this state for a period of five years from the date of 121.12 notice to the commissioner. This subdivision applies to any 121.13 health maintenance organization that ceases to do business in 121.14 the small employer market in one service area with respect to 121.15 that service area only. Nothing in this subdivision prohibits 121.16 an affiliated health maintenance organization from continuing to 121.17 do business in the small employer market in that same service 121.18 area. 121.19 (b) The commissioner of commerceor the commissioner of121.20healthmay permit a health carrier that ceases to do business in 121.21 the small employer market in this state after July 1, 1993, to 121.22 begin writing new business in the small employer market if: 121.23 (1) since the carrier ceased doing business in the small 121.24 employer market, legislative action has occurred that has 121.25 significantly changed the effect on the carrier of its decision 121.26 to cease doing business in the small employer market; and 121.27 (2) the commissioner deems it appropriate. 121.28 Sec. 22. Minnesota Statutes 2000, section 62L.10, 121.29 subdivision 4, is amended to read: 121.30 Subd. 4. [REVIEW OF PREMIUM RATES.] The commissioner shall 121.31 regulate premium rates charged or proposed to be charged by all 121.32 health carriers in the small employer market under section 121.33 62A.02.The commissioner of health has, with respect to121.34carriers under that commissioner's jurisdiction, all of the121.35powers of the commissioner of commerce under that section.121.36 Sec. 23. Minnesota Statutes 2000, section 62L.11, 122.1 subdivision 2, is amended to read: 122.2 Subd. 2. [ENFORCEMENT POWERS.] Thecommissioners122.3 commissioner ofhealth andcommerceeachhas for purposes of 122.4 this chapter all ofeachthe commissioner'srespectivepowers 122.5 under other chapters that are applicable totheir respectivethe 122.6 commissioner's duties under this chapter. 122.7 Sec. 24. Minnesota Statutes 2000, section 62M.11, is 122.8 amended to read: 122.9 62M.11 [COMPLAINTS TO COMMERCEOR HEALTH.] 122.10 Notwithstanding the provisions of sections 62M.01 to 122.11 62M.16, an enrollee may file a complaint regarding a 122.12 determination not to certify directly to the commissioner 122.13responsible for regulating the utilization review122.14organizationof commerce. 122.15 Sec. 25. Minnesota Statutes 2000, section 62M.16, is 122.16 amended to read: 122.17 62M.16 [RULEMAKING.] 122.18 If it is determined that rules are reasonable and necessary 122.19 to accomplish the purpose of sections 62M.01 to 62M.16, the 122.20 rules must be adoptedthrough a joint rulemaking processbyboth122.21 thedepartmentcommissioner of commerceand the department of122.22health. 122.23 Sec. 26. Minnesota Statutes 2000, section 62N.02, 122.24 subdivision 4, is amended to read: 122.25 Subd. 4. [COMMISSIONER.] "Commissioner" means the 122.26 commissioner ofhealthcommerce or the commissioner's designated 122.27 representative. 122.28 Sec. 27. Minnesota Statutes 2000, section 62N.26, is 122.29 amended to read: 122.30 62N.26 [SHARED SERVICES COOPERATIVE.] 122.31 The commissioner ofhealthcommerce shall establish, or 122.32 assist in establishing, a shared services cooperative organized 122.33 under chapter 308A to make available administrative and legal 122.34 services, technical assistance, provider contracting and billing 122.35 services, and other services to those community integrated 122.36 service networks that choose to participate in the cooperative. 123.1 The commissioner shall provide, to the extent funds are 123.2 appropriated, start-up loans sufficient to maintain the shared 123.3 services cooperative until its operations can be maintained by 123.4 fees and contributions. The cooperative must not be staffed, 123.5 administered, or supervised by the commissioner ofhealth123.6 commerce. The cooperative shall make use of existing resources 123.7 that are already available in the community, to the extent 123.8 possible. 123.9 Sec. 28. Minnesota Statutes 2000, section 62Q.01, 123.10 subdivision 2, is amended to read: 123.11 Subd. 2. [COMMISSIONER.] "Commissioner" means the 123.12 commissioner ofhealth for purposes of regulating health123.13maintenance organizations, and community integrated service123.14networks, or the commissioner ofcommercefor purposes of123.15regulating all other health plan companies. For all other123.16purposes, "commissioner" means the commissioner of health. 123.17 Sec. 29. Minnesota Statutes 2000, section 62Q.03, 123.18 subdivision 5a, is amended to read: 123.19 Subd. 5a. [PUBLIC PROGRAMS.] (a) A separate risk 123.20 adjustment system must be developed for state-run public 123.21 programs, including medical assistance, general assistance 123.22 medical care, and MinnesotaCare. The system must be developed 123.23 in accordance with the general risk adjustment methodologies 123.24 described in this section, must include factors in addition to 123.25 age and sex adjustment, and may include additional demographic 123.26 factors, different targeted conditions, and/or different payment 123.27 amounts for conditions. The risk adjustment system for public 123.28 programs must attempt to reflect the special needs related to 123.29 poverty, cultural, or language barriers and other needs of the 123.30 public program population. 123.31 (b) The commissioners of health and human services shall 123.32 jointly convene a public programs risk adjustment work group 123.33 responsible for advising the commissioners in the design of the 123.34 public programs risk adjustment system. The public programs 123.35 risk adjustment work group is governed by section 15.059 for 123.36 purposes of membership terms, expiration, and removal of 124.1 members. The work group shall meet at the discretion of the 124.2 commissioners of health and human services. The commissioner of 124.3 health shall work with the risk adjustment association to ensure 124.4 coordination between the risk adjustment systems for the public 124.5 and private sectors. The commissioner of human services shall 124.6 seek any needed federal approvals necessary for the inclusion of 124.7 the medical assistance program in the public programs risk 124.8 adjustment system. 124.9 (c) The public programs risk adjustment work group must be 124.10 representative of the persons served by publicly paid health 124.11 programs and providers and health plans that meet their needs. 124.12 To the greatest extent possible, the appointing authorities 124.13 shall attempt to select representatives that have historically 124.14 served a significant number of persons in publicly paid health 124.15 programs or the uninsured. Membership of the work group shall 124.16 be as follows: 124.17 (1) one provider member appointed by the Minnesota Medical 124.18 Association; 124.19 (2) two provider members appointed by the Minnesota 124.20 Hospital Association, at least one of whom must represent a 124.21 major disproportionate share hospital; 124.22 (3) five members appointed by the Minnesota Council of 124.23 HMOs, one of whom must represent an HMO with fewer than 50,000 124.24 enrollees located outside the metropolitan area and one of whom 124.25 must represent an HMO with at least 50 percent of total 124.26 membership enrolled through a public program; 124.27 (4) two representatives of counties appointed by the 124.28 Association of Minnesota Counties; 124.29 (5) three representatives of organizations representing the 124.30 interests of families, children, childless adults, and elderly 124.31 persons served by the various publicly paid health programs 124.32 appointed by the governor; 124.33 (6) two representatives of persons with mental health, 124.34 developmental or physical disabilities, chemical dependency, or 124.35 chronic illness appointed by the governor; and 124.36 (7) three public members appointed by the governor, at 125.1 least one of whom must represent a community health board. The 125.2 risk adjustment association may appoint a representative, if a 125.3 representative is not otherwise appointed by an appointing 125.4 authority. 125.5 (d) The commissioners of health and human services, with 125.6 the advice of the public programs risk adjustment work group, 125.7 shall develop a work plan and time frame and shall coordinate 125.8 their efforts with the private sector risk adjustment 125.9 association's activities and other state initiatives related to 125.10 public program managed care reimbursement. 125.11 (e) Before including risk adjustment in a contract for the 125.12 prepaid medical assistance program, the prepaid general 125.13 assistance medical care program, or the MinnesotaCare program, 125.14 the commissioner of human services shall provide to the 125.15 contractor an analysis of the expected impact on the contractor 125.16 of the implementation of risk adjustment. This analysis may be 125.17 limited by the available data and resources, as determined by 125.18 the commissioner of human services, and shall not be binding on 125.19 future contract periods. This paragraph shall not apply if the 125.20 contractor has not supplied information to the commissioner of 125.21 human services related to the risk adjustment analysis. 125.22 (f) The commissioner of human services shall report to the 125.23 public program risk adjustment work group on the methodology the 125.24 department will use for risk adjustment prior to implementation 125.25 of the risk adjustment payment methodology. Upon completion of 125.26 the report to the work group, the commissioner of human services 125.27 shall phase in risk adjustment according to the following 125.28 schedule: 125.29 (1) for the first contract year, no more than ten percent 125.30 of reimbursements shall be risk adjusted; and 125.31 (2) for the second contract year, no more than 30 percent 125.32 of reimbursements shall be risk adjusted. 125.33 Sec. 30. Minnesota Statutes 2000, section 62Q.07, is 125.34 amended to read: 125.35 62Q.07 [ACTION PLANS.] 125.36 Subdivision 1. [ACTION PLANS REQUIRED.] (a) To increase 126.1 public awareness and accountability of health plan companies, 126.2 all health plan companies that issue or renew ahealth plan, as126.3defined in section 62Q.01managed care plan, as defined in 126.4 section 62U.01, must annually file with theapplicable126.5 commissioner an action plan that satisfies the requirements of 126.6 this section beginning July 1, 1994, as a condition of doing 126.7 business in Minnesota.For purposes of this subdivision,126.8"health plan" includes the coverages described in section126.962A.011, subdivision 3, clause (10).Each health plan company 126.10 must also file its action plan with the information 126.11 clearinghouse. Action plans are required solely to provide 126.12 information to consumers, purchasers, and the larger community 126.13 as a first step toward greater accountability of health plan 126.14 companies. The sole function of the commissioner in relation to 126.15 the action plans is to ensure that each health plan company 126.16 files a complete action plan, that the action plan is truthful 126.17 and not misleading, and that the action plan is reviewed by 126.18 appropriate community agencies. 126.19 (b) Ifathe commissionerresponsible for regulating a126.20health plan company required to file an action plan under this126.21sectionhas reason to believe an action plan is false or 126.22 misleading, the commissioner may conduct an investigation to 126.23 determine whether the action plan is truthful and not 126.24 misleading, and may require the health plan company to submit 126.25 any information that the commissioner reasonably deems necessary 126.26 to complete the investigation. If the commissioner determines 126.27 that an action plan is false or misleading, the commissioner may 126.28 require the health plan company to file an amended plan or may 126.29 take any action authorized under chapter 72A. 126.30 Subd. 2. [CONTENTS OF ACTION PLANS.](a) An action plan126.31must include a detailed description of all of the health plan126.32company's methods and procedures, standards, qualifications,126.33criteria, and credentialing requirements for designating the126.34providers who are eligible to participate in the health plan126.35company's provider network, including any limitations on the126.36numbers of providers to be included in the network. This127.1description must be updated by the health plan company and filed127.2with the applicable agency on a quarterly basis.127.3(b) An action plan must include the number of full-time127.4equivalent physicians, by specialty, nonphysician providers, and127.5allied health providers used to provide services. The action127.6plan must also describe how the health plan company intends to127.7encourage the use of nonphysician providers, midlevel127.8practitioners, and allied health professionals, through at least127.9consumer education, physician education, and referral and127.10advisement systems. The annual action plan must also include127.11data that is broken down by type of provider, reflecting actual127.12utilization of midlevel practitioners and allied professionals127.13by enrollees of the health plan company during the previous127.14year. Until July 1, 1995, a health plan company may use127.15estimates if actual data is not available. For purposes of this127.16paragraph, "provider" has the meaning given in section 62J.03,127.17subdivision 8.127.18(c) An action plan must include a description of the health127.19plan company's policy on determining the number and the type of127.20providers that are necessary to deliver cost-effective health127.21care to its enrollees. The action plan must also include the127.22health plan company's strategy, including provider recruitment127.23and retention activities, for ensuring that sufficient providers127.24are available to its enrollees.127.25(d) An action plan must include a description of actions127.26taken or planned by the health plan company to ensure that127.27information from report cards, outcome studies, and complaints127.28is used internally to improve quality of the services provided127.29by the health plan company.127.30(e)An action plan must include a detailed description of 127.31 the health plan company's policies and procedures for enrolling 127.32 and serving high risk and special needs populations. This 127.33 description must also include the barriers that are present for 127.34 the high risk and special needs population and how the health 127.35 plan company is addressing these barriers in order to provide 127.36 greater access to these populations. "High risk and special 128.1 needs populations" includes, but is not limited to, recipients 128.2 of medical assistance, general assistance medical care, and 128.3 MinnesotaCare; persons with chronic conditions or disabilities; 128.4 individuals within certain racial, cultural, and ethnic 128.5 communities; individuals and families with low income; 128.6 adolescents; the elderly; individuals with limited or no English 128.7 language proficiency; persons with high-cost preexisting 128.8 conditions; homeless persons; chemically dependent persons; 128.9 persons with serious and persistent mental illness; children 128.10 with severe emotional disturbance; and persons who are at high 128.11 risk of requiring treatment. For purposes of this paragraph, 128.12 "provider" has the meaning given in section 62J.03, subdivision 128.13 8. 128.14(f) An action plan must include a general description of128.15any action the health plan company has taken and those it128.16intends to take to offer health coverage options to rural128.17communities and other communities not currently served by the128.18health plan company.128.19(g) A health plan company other than a large managed care128.20plan company may satisfy any of the requirements of the action128.21plan in paragraphs (a) to (f) by stating that it has no128.22policies, procedures, practices, or requirements, either written128.23or unwritten, or formal or informal, and has undertaken no128.24activities or plans on the issues required to be addressed in128.25the action plan, provided that the statement is truthful and not128.26misleading. For purposes of this paragraph, "large managed care128.27plan company" means a health maintenance organization or other128.28health plan company that employs or contracts with health care128.29providers, that has more than 50,000 enrollees in this state.128.30If a health plan company employs or contracts with providers for128.31some of its health plans and does not do so for other health128.32plans that it offers, the health plan company is a large managed128.33care plan company if it has more than 50,000 enrollees in this128.34state in health plans for which it does employ or contract with128.35providers.128.36 Sec. 31. Minnesota Statutes 2000, section 62Q.106, is 129.1 amended to read: 129.2 62Q.106 [DISPUTE RESOLUTION BY COMMISSIONER.] 129.3 A complainant may at any time submit a complaint to the 129.4appropriatecommissioner to investigate. After investigating a 129.5 complaint, or reviewing a company's decision, theappropriate129.6 commissioner may order a remedy as authorized under chapter 45, 129.7 60A, or 62D. 129.8 Sec. 32. Minnesota Statutes 2000, section 62Q.22, 129.9 subdivision 2, is amended to read: 129.10 Subd. 2. [REGISTRATION.] A community health clinic that 129.11 offers a prepaid option under this section must register on an 129.12 annual basis with the commissionerof health. 129.13 Sec. 33. Minnesota Statutes 2000, section 62Q.22, 129.14 subdivision 6, is amended to read: 129.15 Subd. 6. [INFORMATION TO BE PROVIDED.] (a) A community 129.16 health clinic must provide an individual or family who purchases 129.17 a prepaid option a clear and concise written statement that 129.18 includes the following information: 129.19 (1) the health care services that the prepaid option 129.20 covers; 129.21 (2) any exclusions or limitations on the health care 129.22 services offered, including any preexisting condition 129.23 limitations, cost-sharing arrangements, or prior authorization 129.24 requirements; 129.25 (3) where the health care services may be obtained; 129.26 (4) a description of the clinic's method for resolving 129.27 patient complaints, including a description of how a patient can 129.28 file a complaint with thedepartment of healthcommissioner of 129.29 commerce; and 129.30 (5) a description of the conditions under which the prepaid 129.31 option may be canceled or terminated. 129.32 (b) The commissioner ofhealthcommerce must approve a copy 129.33 of the written statement before the community health clinic may 129.34 offer the prepaid option described in this section. 129.35 Sec. 34. Minnesota Statutes 2000, section 62Q.22, 129.36 subdivision 7, is amended to read: 130.1 Subd. 7. [COMPLAINT PROCESS.] (a) A community health 130.2 clinic that offers a prepaid option under this section must 130.3 establish a complaint resolution process. As an alternative to 130.4 establishing its own process, a community health clinic may use 130.5 the complaint process of another organization. 130.6 (b) A community health clinic must make reasonable efforts 130.7 to resolve complaints and to inform complainants in writing of 130.8 the clinic's decision within 60 days of receiving the complaint. 130.9 (c) A community health clinic that offers a prepaid option 130.10 under this section must report all complaints that are not 130.11 resolved within 60 days to the commissionerof health. 130.12 Sec. 35. Minnesota Statutes 2000, section 62Q.32, is 130.13 amended to read: 130.14 62Q.32 [LOCAL OMBUDSPERSON.] 130.15 County board or community health service agencies may 130.16 establish an office of ombudsperson to provide a system of 130.17 consumer advocacy for persons receiving health care services 130.18 through a health plan company. The ombudsperson's functions may 130.19 include, but are not limited to:130.20(a), mediation or advocacy on behalf of a person accessing 130.21 the complaint and appeal procedures to ensure that necessary 130.22 medical services are provided by the health plan company; and130.23(b) investigation of the quality of services provided to a130.24person and determine the extent to which quality assurance130.25mechanisms are needed or any other system change may be needed.130.26The commissioner of health shall make recommendations for130.27funding these functions including the amount of funding needed130.28and a plan for distribution. The commissioner shall submit130.29these recommendations to the legislative commission on health130.30care access by January 15, 1996. 130.31 Sec. 36. Minnesota Statutes 2000, section 62Q.33, 130.32 subdivision 2, is amended to read: 130.33 Subd. 2. [REPORT ON SYSTEM DEVELOPMENT.] The commissioner 130.34 of health, in consultation with the state community health 130.35 services advisory committee and the commissioner of human 130.36 services, and representatives of local health departments, 131.1 county government, a municipal government acting as a local 131.2 board of health, area Indian health services, health care 131.3 providers, and citizens concerned about public health, shall 131.4 coordinate the process for defining implementation and financing 131.5 responsibilities of the local government core public health 131.6 functions. The commissioner of health shall submit 131.7 recommendations and an initial and final report on local 131.8 government core public health functions according to the 131.9 timeline established in subdivision 5. 131.10 Sec. 37. Minnesota Statutes 2000, section 62Q.49, 131.11 subdivision 2, is amended to read: 131.12 Subd. 2. [DISCLOSURE REQUIRED.] (a) All health plans 131.13 included in subdivision 1 must clearly specify how the cost of 131.14 health care used to calculate any copayments, coinsurance, or 131.15 lifetime benefits will be affected by the arrangements described 131.16 in subdivision 1. 131.17 (b) Any summary or other marketing material used in 131.18 connection with marketing of a health plan that is subject to 131.19 this section must prominently disclose and clearly explain the 131.20 provisions required under paragraph (a), if the summary or other 131.21 marketing material refers to copayments, coinsurance, or maximum 131.22 lifetime benefits. 131.23 (c) A health plan that is subject to paragraph (a) must not 131.24 be used in this state if the commissioner of commerceor health,131.25as appropriate,has determined that it does not comply with this 131.26 section. 131.27 Sec. 38. Minnesota Statutes 2000, section 62Q.51, 131.28 subdivision 3, is amended to read: 131.29 Subd. 3. [RATE APPROVAL.] The premium rates and cost 131.30 sharing requirements for each option must be submitted to the 131.31 commissionerof health or the commissionerof commerce as 131.32 required by law. A health plan that includes lower enrollee 131.33 cost sharing for services provided by network providers than for 131.34 services provided by out-of-network providers, or lower enrollee 131.35 cost sharing for services provided with prior authorization or 131.36 second opinion than for services provided without prior 132.1 authorization or second opinion, qualifies as a point-of-service 132.2 option. 132.3 Sec. 39. Minnesota Statutes 2000, section 62Q.525, 132.4 subdivision 3, is amended to read: 132.5 Subd. 3. [REQUIRED COVERAGE.] (a) Every type of coverage 132.6 included in subdivision 1 that provides coverage for drugs may 132.7 not exclude coverage of a drug for the treatment of cancer on 132.8 the ground that the drug has not been approved by the federal 132.9 Food and Drug Administration for the treatment of cancer if the 132.10 drug is recognized for treatment of cancer in one of the 132.11 standard reference compendia or in one article in the medical 132.12 literature, as defined in subdivision 2. 132.13 (b) Coverage of a drug required by this subdivision 132.14 includes coverage of medically necessary services directly 132.15 related to and required for appropriate administration of the 132.16 drug. 132.17 (c) Coverage required by this subdivision does not include 132.18 coverage of a drug not listed on the formulary of the coverage 132.19 included in subdivision 1. 132.20 (d) Coverage of a drug required under this subdivision must 132.21 not be subject to any copayment, coinsurance, deductible, or 132.22 other enrollee cost-sharing greater than the coverage included 132.23 in subdivision 1 applies to other drugs. 132.24 (e) The commissioner of commerceor health, as appropriate,132.25 may direct a person that issues coverage included in subdivision 132.26 1 to make payments required by this section. 132.27 Sec. 40. Minnesota Statutes 2000, section 62Q.68, 132.28 subdivision 1, is amended to read: 132.29 Subdivision 1. [APPLICATION.] For purposes of sections 132.30 62Q.68 to 62Q.72, the terms defined in this section have the 132.31 meanings given them. For purposes of sections 62Q.69 and 132.32 62Q.70, the term "health plan company" does not, except with 132.33 respect to managed care plans, as defined in section 62U.01, 132.34 include an insurance company licensed under chapter 60A to 132.35 offer, sell, or issue a policy of accident and sickness 132.36 insurance as defined in section 62A.01 or a nonprofit health 133.1 service plan corporation regulated under chapter 62C that only 133.2 provides dental coverage or vision coverage. 133.3 Sec. 41. Minnesota Statutes 2000, section 62Q.69, 133.4 subdivision 2, is amended to read: 133.5 Subd. 2. [PROCEDURES FOR FILING A COMPLAINT.] (a) A 133.6 complainant may submit a complaint to a health plan company 133.7 either by telephone or in writing. If a complaint is submitted 133.8 orally and the resolution of the complaint, as determined by the 133.9 complainant, is partially or wholly adverse to the complainant, 133.10 or the oral complaint is not resolved to the satisfaction of the 133.11 complainant, by the health plan company within ten days of 133.12 receiving the complaint, the health plan company must inform the 133.13 complainant that the complaint may be submitted in writing. The 133.14 health plan company must also offer to provide the complainant 133.15 with any assistance needed to submit a written complaint, 133.16 including an offer to complete the complaint form for a 133.17 complaint that was previously submitted orally and promptly mail 133.18 the completed form to the complainant for the complainant's 133.19 signature. At the complainant's request, the health plan 133.20 company must provide the assistance requested by the 133.21 complainant. The complaint form must include the following 133.22 information: 133.23 (1) the telephone number of the office of health care 133.24 consumer assistance, advocacy, and information, and the health 133.25 plan company member services or other departments or persons 133.26 equipped to advise complainants on complaint resolution; 133.27 (2) the address to which the form must be sent; 133.28 (3) a description of the health plan company's internal 133.29 complaint procedure and the applicable time limits; and 133.30 (4) the toll-free telephone number ofeitherthe 133.31 commissioner ofhealth orcommerce and notification that the 133.32 complainant has the right to submit the complaint at any time to 133.33 theappropriatecommissioner for investigation. 133.34 (b) Upon receipt of a written complaint, the health plan 133.35 company must notify the complainant within ten business days 133.36 that the complaint was received, unless the complaint is 134.1 resolved to the satisfaction of the complainant within the ten 134.2 business days. 134.3 (c) Each health plan company must provide, in the member 134.4 handbook, subscriber contract, or certification of coverage, a 134.5 clear and concise description of how to submit a complaint and a 134.6 statement that, upon request, assistance in submitting a written 134.7 complaint is available from the health plan company. 134.8 Sec. 42. Minnesota Statutes 2000, section 62Q.69, 134.9 subdivision 3, is amended to read: 134.10 Subd. 3. [NOTIFICATION OF COMPLAINT DECISIONS.] (a) The 134.11 health plan company must notify the complainant in writing of 134.12 its decision and the reasons for it as soon as practical but in 134.13 no case later than 30 days after receipt of a written complaint. 134.14 If the health plan company cannot make a decision within 30 days 134.15 due to circumstances outside the control of the health plan 134.16 company, the health plan company may take up to 14 additional 134.17 days to notify the complainant of its decision. If the health 134.18 plan company takes any additional days beyond the initial 30-day 134.19 period to make its decision, it must inform the complainant, in 134.20 advance, of the extension and the reasons for the extension. 134.21 (b) If the decision is partially or wholly adverse to the 134.22 complainant, the notification must inform the complainant of the 134.23 right to appeal the decision to the health plan company's 134.24 internal appeal process described in section 62Q.70 and the 134.25 procedure for initiating an appeal. 134.26 (c) The notification must also inform the complainant of 134.27 the right to submit the complaint at any time toeitherthe 134.28 commissioner ofhealth orcommerce for investigation and the 134.29 toll-free telephone number of theappropriatecommissioner. 134.30 Sec. 43. Minnesota Statutes 2000, section 62Q.71, is 134.31 amended to read: 134.32 62Q.71 [NOTICE TO ENROLLEES.] 134.33 Each health plan company shall provide to enrollees a clear 134.34 and concise description of its complaint resolution procedure, 134.35 if applicable under section 62Q.68, subdivision 1, and the 134.36 procedure used for utilization review as defined under chapter 135.1 62M as part of the member handbook, subscriber contract, or 135.2 certificate of coverage. If the health plan company does not 135.3 issue a member handbook, the health plan company may provide the 135.4 description in another written document. The description must 135.5 specifically inform enrollees: 135.6 (1) how to submit a complaint to the health plan company; 135.7 (2) if the health plan includes utilization review 135.8 requirements, how to notify the utilization review organization 135.9 in a timely manner and how to obtain certification for health 135.10 care services; 135.11 (3) how to request an appeal either through the procedures 135.12 described in sections 62Q.69 and 62Q.70 or through the 135.13 procedures described in chapter 62M; 135.14 (4) of the right to file a complaint witheitherthe 135.15 commissioner ofhealth orcommerce at any time during the 135.16 complaint and appeal process; 135.17 (5) of the toll-free telephone number of theappropriate135.18 commissioner; and 135.19 (6)of the telephone number of the office of consumer135.20assistance, advocacy, and information; and135.21(7)of the right to obtain an external review under section 135.22 62Q.73 and a description of when and how that right may be 135.23 exercised. 135.24 Sec. 44. Minnesota Statutes 2000, section 62Q.72, is 135.25 amended to read: 135.26 62Q.72 [RECORDKEEPING; REPORTING.] 135.27 Subdivision 1. [RECORDKEEPING.] Each health plan company 135.28 shall maintain records of all enrollee complaints and their 135.29 resolutions. These records shall be retained for five years and 135.30 shall be made available to theappropriatecommissioner upon 135.31 request. An insurance company licensed under chapter 60A may 135.32 instead comply with section 72A.20, subdivision 30, except with 135.33 respect to managed care plans, as defined in section 62U.01. 135.34 Subd. 2. [REPORTING.] Each health plan company shall 135.35 submit to theappropriatecommissioner, as part of the company's 135.36 annual filing, data on the number and type of complaints that 136.1 are not resolved within 30 days, or, except with respect to 136.2 managed care plans, as defined in section 62U.01, 30 business 136.3 days as provided under section 72A.201, subdivision 4, clause 136.4 (3), for insurance companies licensed under chapter 60A. The 136.5 commissioner shall also make this information available to the 136.6 public upon request. 136.7 Sec. 45. Minnesota Statutes 2000, section 62Q.73, 136.8 subdivision 3, is amended to read: 136.9 Subd. 3. [RIGHT TO EXTERNAL REVIEW.] (a) Any enrollee or 136.10 anyone acting on behalf of an enrollee who has received an 136.11 adverse determination may submit a written request for an 136.12 external review of the adverse determination, if applicable 136.13 under section 62Q.68, subdivision 1, or 62M.06, to the 136.14commissioner of health if the request involves a health plan136.15company regulated by that commissioner or to thecommissioner of 136.16 commerceif the request involves a health plan company regulated136.17by that commissioner. The written request must be accompanied 136.18 by a filing fee of $25. The fee may be waived by the 136.19 commissioner ofhealth orcommerce in cases of financial 136.20 hardship. 136.21 (b) Nothing in this section requires the commissioner of 136.22health orcommerce to independently investigate an adverse 136.23 determination referred for independent external review. 136.24 (c) If an enrollee requests an external review, the health 136.25 plan company must participate in the external review. The cost 136.26 of the external review in excess of the filing fee described in 136.27 paragraph (a) shall be borne by the health plan company. 136.28 Sec. 46. Minnesota Statutes 2000, section 62Q.73, 136.29 subdivision 4, is amended to read: 136.30 Subd. 4. [CONTRACT.] Pursuant to a request for proposal, 136.31 the commissioner of administration, in consultation with 136.32 thecommissioners of health andcommissioner of commerce, shall 136.33 contract with an organization or business entity to provide 136.34 independent external reviews of all adverse determinations 136.35 submitted for external review. The contract shall ensure that 136.36 the fees for services rendered in connection with the reviews be 137.1 reasonable. 137.2 Sec. 47. Minnesota Statutes 2000, section 62Q.73, 137.3 subdivision 5, is amended to read: 137.4 Subd. 5. [CRITERIA.] (a) The request for proposal must 137.5 require that the entity demonstrate: 137.6 (1) no conflicts of interest in that it is not owned, a 137.7 subsidiary of, or affiliated with a health plan company or 137.8 utilization review organization; 137.9 (2) an expertise in dispute resolution; 137.10 (3) an expertise in health-related law; 137.11 (4) an ability to conduct reviews using a variety of 137.12 alternative dispute resolution procedures depending upon the 137.13 nature of the dispute; 137.14 (5) an ability to provide data to thecommissioners of137.15health andcommissioner of commerce on reviews conducted; and 137.16 (6) an ability to ensure confidentiality of medical records 137.17 and other enrollee information. 137.18 (b) The commissioner of administration shall take into 137.19 consideration, in awarding the contract according to subdivision 137.20 4, any national accreditation standards that pertain to an 137.21 external review entity. 137.22 Sec. 48. Minnesota Statutes 2000, section 62Q.73, 137.23 subdivision 6, is amended to read: 137.24 Subd. 6. [PROCESS.] (a) Upon receiving a request for an 137.25 external review, the external review entity must provide 137.26 immediate notice of the review to the enrollee and to the health 137.27 plan company. Within ten business days of receiving notice of 137.28 the review, the health plan company and the enrollee must 137.29 provide the external review entity with any information that 137.30 they wish to be considered. Each party shall be provided an 137.31 opportunity to present its version of the facts and arguments. 137.32 An enrollee may be assisted or represented by a person of the 137.33 enrollee's choice. 137.34 (b) As part of the external review process, any aspect of 137.35 an external review involving a medical determination must be 137.36 performed by a health care professional with expertise in the 138.1 medical issue being reviewed. 138.2 (c) An external review shall be made as soon as practical 138.3 but in no case later than 40 days after receiving the request 138.4 for an external review and must promptly send written notice of 138.5 the decision and the reasons for it to the enrollee, the health 138.6 plan company, and the commissionerwho is responsible for138.7regulating the health plan company. 138.8 Sec. 49. Minnesota Statutes 2000, section 62R.04, 138.9 subdivision 5, is amended to read: 138.10 Subd. 5. [COMMISSIONER.] Unless otherwise specified, 138.11 "commissioner" means the commissionerof health for a health138.12care network cooperative licensed under chapter 62D or 62N and138.13the commissionerof commercefor a health care network138.14cooperative licensed under chapter 62C. 138.15 Sec. 50. Minnesota Statutes 2000, section 62R.06, 138.16 subdivision 1, is amended to read: 138.17 Subdivision 1. [PROVIDER CONTRACTS.] A health provider 138.18 cooperative and its licensed members may execute marketing and 138.19 service contracts requiring the provider members to provide some 138.20 or all of their health care services through the provider 138.21 cooperative to the enrollees, members, subscribers, or insureds, 138.22 of a health care network cooperative, community integrated 138.23 service network, nonprofit health service plan, health 138.24 maintenance organization, accident and health insurance company, 138.25 or any other purchaser, including the state of Minnesota and its 138.26 agencies, instruments, or units of local government. Each 138.27 purchasing entity is authorized to execute contracts for the 138.28 purchase of health care services from a health provider 138.29 cooperative in accordance with this section. A contract between 138.30 a provider cooperative and a purchaser may provide for payment 138.31 by the purchaser to the health provider cooperative on a 138.32 capitated or similar risk-sharing basis, by fee-for-service 138.33 arrangements, or by other financial arrangements authorized 138.34 under state law. Each contract between a provider cooperative 138.35 and a purchaser shall be filed by the provider network 138.36 cooperative with the commissioner ofhealthcommerce and is 139.1 subject to the provisions of section 62D.19. 139.2 Sec. 51. Minnesota Statutes 2000, section 62T.01, 139.3 subdivision 4, is amended to read: 139.4 Subd. 4. [COMMISSIONER.] "Commissioner" means the 139.5 commissioner ofhealthcommerce. 139.6 Sec. 52. Minnesota Statutes 2000, section 256B.692, 139.7 subdivision 2, is amended to read: 139.8 Subd. 2. [DUTIES OF THE COMMISSIONER OFHEALTHCOMMERCE.] 139.9 (a) Notwithstanding chapters 62D and 62N, a county that elects 139.10 to purchase medical assistance and general assistance medical 139.11 care in return for a fixed sum without regard to the frequency 139.12 or extent of services furnished to any particular enrollee is 139.13 not required to obtain a certificate of authority under chapter 139.14 62D or 62N. The county board of commissioners is the governing 139.15 body of a county-based purchasing program. In a multicounty 139.16 arrangement, the governing body is a joint powers board 139.17 established under section 471.59. 139.18 (b) A county that elects to purchase medical assistance and 139.19 general assistance medical care services under this section must 139.20 satisfy the commissioner ofhealthcommerce that the 139.21 requirements for assurance of consumer protection, provider 139.22 protection, and fiscal solvency of chapter 62D, applicable to 139.23 health maintenance organizations, or chapter 62N, applicable to 139.24 community integrated service networks, will be met. 139.25 (c) A county must also assure the commissioner ofhealth139.26 commerce that the requirements of sections 62J.041; 62J.48; 139.27 62J.71 to 62J.73; 62M.01 to 62M.16; all applicable provisions of 139.28 chapter 62Q, including sections 62Q.07; 62Q.075; 62Q.1055; 139.29 62Q.106; 62Q.12; 62Q.135; 62Q.14; 62Q.145; 62Q.19; 62Q.23, 139.30 paragraph (c); 62Q.43; 62Q.47; 62Q.50; 62Q.52 to 62Q.56; 62Q.58; 139.31 62Q.64; 62Q.68 to 62Q.72; and 72A.201 will be met. 139.32 (d) All enforcement and rulemaking powers available under 139.33 chapters 62D, 62J, 62M, 62N, and 62Q are hereby granted to the 139.34 commissioner ofhealthcommerce with respect to counties that 139.35 purchase medical assistance and general assistance medical care 139.36 services under this section. 140.1 (e) The commissioner, in consultation with county 140.2 government, shall develop administrative and financial reporting 140.3 requirements for county-based purchasing programs relating to 140.4 sections 62D.041, 62D.042, 62D.045, 62D.08, 62N.28, 62N.29, and 140.5 62N.31, and other sections as necessary, that are specific to 140.6 county administrative, accounting, and reporting systems and 140.7 consistent with other statutory requirements of counties. 140.8 Sec. 53. Minnesota Statutes 2000, section 256B.692, 140.9 subdivision 7, is amended to read: 140.10 Subd. 7. [DISPUTE RESOLUTION.] In the event the 140.11 commissioner rejects a proposal under subdivision 6, the county 140.12 board may request the recommendation of a three-person mediation 140.13 panel. The commissioner shall resolve all disputes after taking 140.14 into account the recommendations of the mediation panel. The 140.15 panel shall be composed of one designee of the president of the 140.16 association of Minnesota counties, one designee of the 140.17 commissioner of human services, and one designee of the 140.18 commissioner ofhealthcommerce. 140.19 Sec. 54. [TRANSFER OF REGULATORY AUTHORITY; CERTAIN 140.20 HEALTH-RELATED ORGANIZATIONS.] 140.21 (a) Regulatory authority for health maintenance 140.22 organizations operating under Minnesota Statutes, chapter 62D; 140.23 community integrated service networks, as defined in Minnesota 140.24 Statutes, section 62N.02, subdivision 4a; health care 140.25 cooperatives operating under Minnesota Statutes, chapter 62R; 140.26 and health care purchasing alliances and accountable provider 140.27 networks operating under Minnesota Statutes, chapter 62T; is 140.28 transferred from the commissioner of health to the commissioner 140.29 of commerce, effective January 1, 2002. 140.30 (b) Minnesota Statutes, section 15.039, applies to the 140.31 transfer provided in paragraph (a). 140.32 Sec. 55. [REVISOR INSTRUCTION.] 140.33 (a) The revisor of statutes shall change the term 140.34 "commissioner of health" and similar references to "commissioner 140.35 of commerce" and change the term "department of health" and 140.36 similar references to "department of commerce" in Minnesota 141.1 Statutes, chapters 62D, but not section 62D.02, subdivision 12; 141.2 62E; and 62N. 141.3 (b) The revisor of statutes shall recode Minnesota 141.4 Statutes, section 62Q.095, subdivision 5, as a new subdivision 141.5 of Minnesota Statutes, section 62Q.10. 141.6 Sec. 56. [STUDY AND REPORT.] 141.7 The commissioner of health shall study and report to the 141.8 legislature, no later than January 1, 2004, on premium cost, 141.9 subscriber liability, and health outcomes under different types 141.10 of health plan regulation by the state. The commissioner shall 141.11 use data available to the commissioner under Minnesota Statutes, 141.12 section 62J.38, and otherwise. The reports must be submitted to 141.13 the legislature in compliance with Minnesota Statutes, section 141.14 3.195. 141.15 Sec. 57. [REPEALER.] 141.16 Minnesota Statutes 2000, sections 62Q.095, subdivisions 1, 141.17 2, 3, 4, and 6; and 62Q.45, are repealed. 141.18 Sec. 58. [EFFECTIVE DATE.] 141.19 Sections 1 to 57 are effective January 1, 2002. Amendments 141.20 involving transfer of regulatory authority to the commissioner 141.21 of commerce are effective on that date. Amendments affecting 141.22 coverage are effective that date and apply to coverage issued or 141.23 renewed on or after that date. 141.24 ARTICLE 7 141.25 MINIMUM BENEFITS CONFORMITY 141.26 Section 1. Minnesota Statutes 2000, section 62A.041, 141.27 subdivision 1, is amended to read: 141.28 Subdivision 1. [DISCRIMINATION PROHIBITED AGAINST 141.29 UNMARRIED WOMEN.] Each group policy of accident and health 141.30 insurance and each group healthmaintenance contractplan shall 141.31 provide the same coverage for maternity benefits to unmarried 141.32 women and minor female dependents that it provides to married 141.33 women including the wives of employees choosing dependent family 141.34 coverage. If an unmarried insured or an unmarried enrollee is a 141.35 parent of a dependent child, each group policy and each group 141.36contracthealth plan shall provide the same coverage for that 142.1 child as that provided for the child of a married employee 142.2 choosing dependent family coverage if the insured or the 142.3 enrollee elects dependent family coverage. 142.4 Each individual policy of accident and health insurance and 142.5 each individual healthmaintenance contractplan shall provide 142.6 the same coverage for maternity benefits to unmarried women and 142.7 minor female dependents as that provided for married women. If 142.8 an unmarried insured or an unmarried enrollee is a parent of a 142.9 dependent child, each individual policy and each individual 142.10contracthealth plan shall also provide the same coverage for 142.11 that child as that provided for the child of a married insured 142.12 or a married enrollee choosing dependent family coverage if the 142.13 insured or the enrollee elects dependent family coverage. 142.14 Sec. 2. Minnesota Statutes 2000, section 62A.041, 142.15 subdivision 2, is amended to read: 142.16 Subd. 2. [LIMITATION ON COVERAGE PROHIBITED.] Each group 142.17 policy of accident and health insurance, except for policies 142.18 which only provide coverage for specified diseases, or each 142.19 groupsubscriber contract of accident and health insurance or142.20health maintenance contract, issued or renewed after August 1,142.211987,health plan shall include maternity benefits in the same 142.22 manner as any other illness covered under the policy orcontract142.23 health plan. 142.24 Sec. 3. Minnesota Statutes 2000, section 62A.042, is 142.25 amended to read: 142.26 62A.042 [FAMILY COVERAGE; COVERAGE OF NEWBORN INFANTS AND 142.27 CLEFT LIP AND CLEFT PALATE.] 142.28 Subdivision 1. [INDIVIDUAL FAMILY POLICIES.] (a) No policy 142.29 of individual accident and sickness insurance which provides for 142.30 insurance for more than one person under section 62A.03, 142.31 subdivision 1, clause (3), and no individual healthmaintenance142.32contractplan which provides for coverage for more than one 142.33 personunder chapter 62D, shall be renewed to insure or cover 142.34 any person in this state or be delivered or issued for delivery 142.35 to any person in this state unless the policy orcontracthealth 142.36 plan includes as insured or covered members of the family any 143.1 newborn infants immediately from the moment of birth and 143.2 thereafter whichinsurance or contractpolicy or health plan 143.3 shall provide coverage for illness, injury, congenital 143.4 malformation, or premature birth. For purposes of this 143.5 paragraph, "newborn infants" includes grandchildren who are 143.6 financially dependent upon a covered grandparent and who reside 143.7 with that covered grandparent continuously from birth. No 143.8 policy orcontracthealth plan covered by this section may 143.9 require notification to a health carrier as a condition for this 143.10 dependent coverage. However, if the policy orcontracthealth 143.11 plan mandates an additional premium for each dependent, the 143.12 health carrier shall be entitled to all premiums that would have 143.13 been collected had the health carrier been aware of the 143.14 additional dependent. The health carrier may withhold payment 143.15 of any health benefits for the new dependent until it has been 143.16 compensated with the applicable premium which would have been 143.17 owed if the health carrier had been informed of the additional 143.18 dependent immediately. 143.19 (b) The coverage under paragraph (a) includes benefits for 143.20 inpatient or outpatient expenses arising from medical and dental 143.21 treatment up to age 18, including orthodontic and oral surgery 143.22 treatment, involved in the management of birth defects known as 143.23 cleft lip and cleft palate. If orthodontic services are 143.24 eligible for coverage under a dental insurance plan and another 143.25 policy orcontracthealth plan, the dental plan shall be primary 143.26 and the other policy orcontracthealth plan shall be secondary 143.27 in regard to the coverage required under paragraph (a). Payment 143.28 for dental or orthodontic treatment not related to the 143.29 management of the congenital condition of cleft lip and cleft 143.30 palate shall not be covered under this provision. 143.31 Subd. 2. [GROUP POLICIES.] (a) No group accident and 143.32 sickness insurance policy and no group healthmaintenance143.33contractplan whichprovideprovides for coverage of family 143.34 members or other dependents of an employee or other member of 143.35 the covered group shall be renewed to cover members of a group 143.36 located in this state or delivered or issued for delivery to any 144.1 person in this state unless the policy orcontracthealth plan 144.2 includes as insured or covered family members or dependents any 144.3 newborn infants immediately from the moment of birth and 144.4 thereafter whichinsurance or contractpolicy or health plan 144.5 shall provide coverage for illness, injury, congenital 144.6 malformation, or premature birth. For purposes of this 144.7 paragraph, "newborn infants" includes grandchildren who are 144.8 financially dependent upon a covered grandparent and who reside 144.9 with that covered grandparent continuously from birth. No 144.10 policy orcontracthealth plan covered by this section may 144.11 require notification to a health carrier as a condition for this 144.12 dependent coverage. However, if the policy orcontracthealth 144.13 plan mandates an additional premium for each dependent, the 144.14 health carrier shall be entitled to all premiums that would have 144.15 been collected had the health carrier been aware of the 144.16 additional dependent. The health carrier may reduce the health 144.17 benefits owed to the insured, certificate holder, member, or 144.18 subscriber by the amount of past due premiums applicable to the 144.19 additional dependent. 144.20 (b) The coverage under paragraph (a) includes benefits for 144.21 inpatient or outpatient expenses arising from medical and dental 144.22 treatment up to age 18, including orthodontic and oral surgery 144.23 treatment, involved in the management of birth defects known as 144.24 cleft lip and cleft palate. If orthodontic services are 144.25 eligible for coverage under a dental insurance plan and another 144.26 policy orcontracthealth plan, the dental plan shall be primary 144.27 and the other policy orcontracthealth plan shall be secondary 144.28 in regard to the coverage required under paragraph (a). Payment 144.29 for dental or orthodontic treatment not related to the 144.30 management of the congenital condition of cleft lip and cleft 144.31 palate shall not be covered under this provision. 144.32 Sec. 4. Minnesota Statutes 2000, section 62A.043, 144.33 subdivision 1, is amended to read: 144.34 Subdivision 1. The provisions of this sectionshallapply 144.35 to all individual or group policies orsubscriber contracts144.36 health plans providing payment for care in this state, which145.1policies or contracts are issued or renewed after August 1, 1976145.2by an accident and health insurance company regulated under this145.3chapter, or a nonprofit health service plan corporation145.4regulated under chapter 62C. 145.5 Sec. 5. Minnesota Statutes 2000, section 62A.14, is 145.6 amended to read: 145.7 62A.14 [HANDICAPPED CHILDREN.] 145.8 Subdivision 1. [INDIVIDUAL FAMILY POLICIES.] An individual 145.9 hospital or medical expense insurance policy delivered or issued 145.10 for delivery in this state more than 120 days after May 16, 145.11 1969, or an individualhealth maintenance contracthealth plan 145.12 delivered or issued for delivery in this state after August 1, 145.13 1984, which provides that coverage of a dependent child shall 145.14 terminate upon attainment of the limiting age for dependent 145.15 children specified in the policy orcontracthealth plan shall 145.16 also provide in substance that attainment of such limiting age 145.17 shall not operate to terminate the coverage of such child while 145.18 the child is and continues to be both (a) incapable of 145.19 self-sustaining employment by reason of mental retardation, 145.20 mental illness or disorder, or physical handicap and (b) chiefly 145.21 dependent upon the policyholder for support and maintenance, 145.22 provided proof of such incapacity and dependency is furnished to 145.23 theinsurer orhealthmaintenance organizationcarrier by the 145.24 policyholder or enrollee within 31 days of the child's 145.25 attainment of the limiting age and subsequently as may be 145.26 required by theinsurer or organizationhealth carrier but not 145.27 more frequently than annually after the two-year period 145.28 following the child's attainment of the limiting age. 145.29 Subd. 2. [GROUP POLICIES.] A group hospital or medical 145.30 expense insurance policy delivered or issued for delivery in 145.31 this state more than 120 days after May 16, 1969, or a group 145.32 healthmaintenance contractplan delivered or issued for 145.33 delivery in this state after August 1, 1984, which provides that 145.34 coverage of a dependent child of an employee or other member of 145.35 the covered group shall terminate upon attainment of the 145.36 limiting age for dependent children specified in the policy 146.1 orcontracthealth plan shall also provide in substance that 146.2 attainment of such limiting age shall not operate to terminate 146.3 the coverage of such child while the child is and continues to 146.4 be both (a) incapable of self-sustaining employment by reason of 146.5 mental retardation, mental illness or disorder, or physical 146.6 handicap and (b) chiefly dependent upon the employee or member 146.7 for support and maintenance, provided proof of such incapacity 146.8 and dependency is furnished to theinsurer or organization146.9 health carrier by the employee or member within 31 days of the 146.10 child's attainment of the limiting age and subsequently as may 146.11 be required by theinsurer or organizationhealth carrier but 146.12 not more frequently than annually after the two-year period 146.13 following the child's attainment of the limiting age. 146.14 Sec. 6. Minnesota Statutes 2000, section 62A.149, 146.15 subdivision 1, is amended to read: 146.16 Subdivision 1. With the exception of managed care plans as 146.17 defined in section 62U.01, the provisions of this section apply 146.18 to all group policies of accident and health insurance and group 146.19 subscriber contracts offered by nonprofit health service plan 146.20 corporations regulated under chapter 62C, and to a plan or 146.21 policy that is individually underwritten or provided for a 146.22 specific individual and family members as a nongroup policy 146.23 unless the individual elects in writing to refuse benefits under 146.24 this subdivision in exchange for an appropriate reduction in 146.25 premiums or subscriber charges under the policy or plan, when 146.26 the policies or subscriber contracts are issued or delivered in 146.27 Minnesota or provide benefits to Minnesota residents enrolled 146.28 thereunder. 146.29 This section does not apply to policies designed primarily 146.30 to provide coverage payable on a per diem, fixed indemnity or 146.31 nonexpense incurred basis or policies that provide accident only 146.32 coverage. 146.33 Every insurance policy or subscriber contract included 146.34 within the provisions of this subdivision, upon issuance or 146.35 renewal, shall provide for payment of benefits for the treatment 146.36 of alcoholism, chemical dependency or drug addiction to any 147.1 Minnesota resident entitled to coverage thereunder on the same 147.2 basis as coverage for other benefits when treatment is rendered 147.3 in 147.4 (1) a licensed hospital, 147.5 (2) a residential treatment program as licensed by the 147.6 state of Minnesota pursuant to diagnosis or recommendation by a 147.7 doctor of medicine, 147.8 (3) a nonresidential treatment program approved or licensed 147.9 by the state of Minnesota. 147.10 Sec. 7. Minnesota Statutes 2000, section 62A.15, 147.11 subdivision 1, is amended to read: 147.12 Subdivision 1. [APPLICABILITY.] The provisions of this 147.13 section apply to all group policies orsubscriber contracts147.14 individual or group health plans providing payment for care in 147.15 this state, which are issued by accident and health insurance147.16companies regulated under this chapter and nonprofit health147.17service plan corporations regulated under chapter 62C. 147.18 Sec. 8. Minnesota Statutes 2000, section 62A.152, 147.19 subdivision 1, is amended to read: 147.20 Subdivision 1. [SCOPE.] With the exception of managed care 147.21 plans as defined in section 62U.01, the provisions of this 147.22 section apply (a) to all group policies or subscriber contracts 147.23 which provide benefits for at least 100 certificate holders who 147.24 are residents of this state or groups of which more than 90 147.25 percent are residents of this state and are issued, delivered, 147.26 or renewed by accident and health insurance companies regulated 147.27 under this chapter, or by nonprofit health service plan 147.28 corporations regulated under chapter 62C and (b), unless waived 147.29 by the commissioner to the extent applicable to holders who are 147.30 both nonresidents and employed outside this state, to all group 147.31 policies or subscriber contracts which are issued, delivered, or 147.32 renewed within this state by accident and health insurance 147.33 companies regulated under this chapter, or by nonprofit health 147.34 service plan corporations regulated under chapter 62C. 147.35 Sec. 9. Minnesota Statutes 2000, section 62A.153, is 147.36 amended to read: 148.1 62A.153 [OUTPATIENT MEDICAL AND SURGICAL SERVICES.] 148.2 No policy or plan of health, medical, hospitalization, or 148.3 accident and sickness insurance regulated under this chapter, or 148.4subscriber contract provided by a nonprofit health service plan148.5corporation regulated under chapter 62Chealth plan that 148.6 provides coverage for services in a hospital shall be issued, 148.7 renewed, continued, delivered, issued for delivery or executed 148.8 in this state, or approved for issuance or renewal in this state 148.9by the commissioner of commerceunless the policy, plan, or 148.10contracthealth plan specifically provides coverage for a health 148.11 care treatment or surgery on an outpatient basis at a facility 148.12 equipped to perform these services, whether or not the facility 148.13 is part of a hospital. Coverage shall be on the same basis as 148.14 coverage provided for the same health care treatment or service 148.15 in a hospital. 148.16 Sec. 10. Minnesota Statutes 2000, section 62A.20, is 148.17 amended to read: 148.18 62A.20 [CONTINUATION COVERAGE OF CURRENT SPOUSE AND 148.19 CHILDREN.] 148.20 Subdivision 1. [REQUIREMENT.] Every policy of accident and 148.21 health insurance providing coverage of hospital or medical 148.22 expense on either an expense-incurred basis or other than an 148.23 expense-incurred basis, or health plan, which in addition to 148.24 covering the insured also provides coverage to the spouse and 148.25 dependent children of the insured shall contain: 148.26 (1) a provision which permits the spouse and dependent 148.27 children to elect to continue coverage when the insured becomes 148.28 enrolled for benefits under Title XVIII of the Social Security 148.29 Act (Medicare); and 148.30 (2) a provision which permits the dependent children to 148.31 continue coverage when they cease to be dependent children under 148.32 the generally applicable requirement of the plan. 148.33 Subd. 2. [CONTINUATION PRIVILEGE.] The coverage described 148.34 in subdivision 1 may be continued until the earlier of the 148.35 following dates: 148.36 (1) the date coverage would otherwise terminate under the 149.1 policy or health plan; 149.2 (2) 36 months after continuation by the spouse or dependent 149.3 was elected; or 149.4 (3) the spouse or dependent children become covered under 149.5 another group health plan. 149.6 If coverage is provided under a group policy or group 149.7 health plan, any required premium contributions for the coverage 149.8 shall be paid by the insured on a monthly basis to the group 149.9 policyholder for remittance to theinsurerhealth carrier. In 149.10 no event shall the amount of premium charged exceed 102 percent 149.11 of the cost to the plan for such period of coverage for other 149.12 similarly situated spouse and dependent children to whom 149.13 subdivision 1 is not applicable, without regard to whether such 149.14 cost is paid by the employer or employee. 149.15 Sec. 11. Minnesota Statutes 2000, section 62A.21, is 149.16 amended to read: 149.17 62A.21 [CONTINUATION AND CONVERSION PRIVILEGES FOR INSURED 149.18 FORMER SPOUSES AND CHILDREN.] 149.19 Subdivision 1. No policy of accident and health insurance 149.20 providing coverage of hospital or medical expense on either an 149.21 expense incurred basis or other than an expense incurred basis, 149.22 or health plan, which in addition to covering the insured also 149.23 provides coverage to the spouse of the insured, shall contain a 149.24 provision for termination of coverage for a spouse covered under 149.25 the policy or health plan solely as a result of a break in the 149.26 marital relationship. 149.27 Subd. 2a. [CONTINUATION PRIVILEGE.] Every policy or health 149.28 plan described in subdivision 1 shall contain a provision which 149.29 permits continuation of coverage under the policy or health plan 149.30 for the insured's former spouse and dependent children upon 149.31 entry of a valid decree of dissolution of marriage. The 149.32 coverage shall be continued until the earlier of the following 149.33 dates: 149.34 (a) the date the insured's former spouse becomes covered 149.35 under any other group health plan; or 149.36 (b) the date coverage would otherwise terminate under the 150.1 policy or health plan. 150.2 If the coverage is provided under a group policy or group 150.3 health plan, any required premium contributions for the coverage 150.4 shall be paid by the insured on a monthly basis to the group 150.5 policyholder for remittance to theinsurerhealth carrier. The 150.6 policy or health plan must require the group policyholder to, 150.7 upon request, provide the insured with written verification from 150.8 theinsurerhealth carrier of the cost of this coverage promptly 150.9 at the time of eligibility for this coverage and at any time 150.10 during the continuation period. In no event shall the amount of 150.11 premium charged exceed 102 percent of the cost to the plan for 150.12 such period of coverage for other similarly situated spouses and 150.13 dependent children with respect to whom the marital relationship 150.14 has not dissolved, without regard to whether such cost is paid 150.15 by the employer or employee. 150.16 Subd. 2b. [CONVERSION PRIVILEGE.] Every policy or health 150.17 plan described in subdivision 1 shall contain a provision 150.18 allowing a former spouse and dependent children of an insured, 150.19 without providing evidence of insurability, to obtain from 150.20 theinsurerhealth carrier at the expiration of any continuation 150.21 of coverage required under subdivision 2a or sections 62A.146 150.22 and 62A.20, conversion coverage providing at least the minimum 150.23 benefits of a qualified plan as prescribed by section 62E.06 and 150.24 the option of a number three qualified plan, a number two 150.25 qualified plan, a number one qualified plan as provided by 150.26 section 62E.06, subdivisions 1 to 3, provided application is 150.27 made to theinsurerhealth carrier within 30 days following 150.28 notice of the expiration of the continued coverage and upon 150.29 payment of the appropriate premium. The individual policy or 150.30 individual health plan shall be renewable at the option of the 150.31 covered person as long as the covered person is not covered 150.32 under another qualified plan as defined in section 62E.02, 150.33 subdivision 4. Any revisions in the table of rate for the 150.34 individual policy or individual health plan shall apply to the 150.35 covered person's original age at entry and shall apply equally 150.36 to all similar policies or health plans issued by the 151.1insurerhealth carrier. 151.2 A policy or health plan providing reduced benefits at a 151.3 reduced premium rate may be accepted by the covered person in 151.4 lieu of the optional coverage otherwise required by this 151.5 subdivision. 151.6Subd. 3. Subdivision 1 applies to every policy of accident151.7and health insurance which is delivered, issued for delivery,151.8renewed or amended on or after July 19, 1977.151.9Subdivisions 2a and 2b apply to every policy of accident151.10and health insurance which is delivered, issued for delivery,151.11renewed, or amended on or after August 1, 1981.151.12 Sec. 12. Minnesota Statutes 2000, section 62A.616, is 151.13 amended to read: 151.14 62A.616 [COVERAGE FOR NURSING HOME CARE FOR TERMINALLY ILL 151.15 AND OTHER SERVICES.] 151.16An insurerA health carrier may offer a health plan that 151.17 covers nursing home care for the terminally ill, personal care 151.18 attendants, and hospice care. For the purposes of this section, 151.19 "terminally ill" means a diagnosis certified by a physician that 151.20 a person has less than six months to live. 151.21 Sec. 13. Minnesota Statutes 2000, section 62A.65, 151.22 subdivision 5, is amended to read: 151.23 Subd. 5. [PORTABILITY AND CONVERSION OF COVERAGE.] (a) No 151.24 individual health plan may be offered, sold, issued, or with 151.25 respect to children age 18 or under renewed, to a Minnesota 151.26 resident that contains a preexisting condition limitation, 151.27 preexisting condition exclusion, or exclusionary rider, unless 151.28 the limitation or exclusion is permitted under this subdivision 151.29 and under chapter 62L, provided that, except for children age 18 151.30 or under, underwriting restrictions may be retained on 151.31 individual contracts that are issued without evidence of 151.32 insurability as a replacement for prior individual coverage that 151.33 was sold before May 17, 1993. The individual may be subjected 151.34 to an 18-month preexisting condition limitation, unless the 151.35 individual has maintained continuous coverage as defined in 151.36 section 62L.02. The individual must not be subjected to an 152.1 exclusionary rider. An individual who has maintained continuous 152.2 coverage may be subjected to a one-time preexisting condition 152.3 limitation of up to 12 months, with credit for time covered 152.4 under qualifying coverage as defined in section 62L.02, at the 152.5 time that the individual first is covered under an individual 152.6 health plan by any health carrier. Credit must be given for all 152.7 qualifying coverage with respect to all preexisting conditions, 152.8 regardless of whether the conditions were preexisting with 152.9 respect to any previous qualifying coverage. The individual 152.10 must not be subjected to an exclusionary rider. Thereafter, the 152.11 individual must not be subject to any preexisting condition 152.12 limitation, preexisting condition exclusion, or exclusionary 152.13 rider under an individual health plan by any health carrier, 152.14 except an unexpired portion of a limitation under prior 152.15 coverage, so long as the individual maintains continuous 152.16 coverage as defined in section 62L.02. 152.17 (b) A health carrier must offer an individual health plan 152.18 to any individual previously covered under a group health plan 152.19 issued by that health carrier, regardless of the size of the 152.20 group, so long as the individual maintained continuous coverage 152.21 as defined in section 62L.02. If the individual has available 152.22 any continuation coverage provided under sections 62A.146; 152.23 62A.148; 62A.17, subdivisions 1 and 2; 62A.20; or 62A.21;152.2462C.142; 62D.101; or 62D.105, or continuation coverage provided 152.25 under federal law, the health carrier need not offer coverage 152.26 under this paragraph until the individual has exhausted the 152.27 continuation coverage. The offer must not be subject to 152.28 underwriting, except as permitted under this paragraph. A 152.29 health plan issued under this paragraph must be a qualified plan 152.30 as defined in section 62E.02 and must not contain any 152.31 preexisting condition limitation, preexisting condition 152.32 exclusion, or exclusionary rider, except for any unexpired 152.33 limitation or exclusion under the previous coverage. The 152.34 individual health plan must cover pregnancy on the same basis as 152.35 any other covered illness under the individual health plan. The 152.36 initial premium rate for the individual health plan must comply 153.1 with subdivision 3. The premium rate upon renewal must comply 153.2 with subdivision 2. In no event shall the premium rate exceed 153.3 90 percent of the premium charged for comparable individual 153.4 coverage by the Minnesota comprehensive health association, and 153.5 the premium rate must be less than that amount if necessary to 153.6 otherwise comply with this section. An individual health plan 153.7 offered under this paragraph to a person satisfies the health 153.8 carrier's obligation to offer conversion coverage under section 153.9 62E.16, with respect to that person. Coverage issued under this 153.10 paragraph must provide that it cannot be canceled or nonrenewed 153.11 as a result of the health carrier's subsequent decision to leave 153.12 the individual, small employer, or other group market. Section 153.13 72A.20, subdivision 28, applies to this paragraph. 153.14 Sec. 14. Minnesota Statutes 2000, section 62D.12, 153.15 subdivision 1a, is amended to read: 153.16 Subd. 1a. [SWING-OUT PRODUCTS.] Notwithstanding 153.17 subdivision 1, nothing in sections62A.049,62A.60,and 72A.201, 153.18 subdivision 4a, applies to a commercial health policy issued 153.19 under this chapter as a companion to a health maintenance 153.20 contract. 153.21 Sec. 15. Minnesota Statutes 2000, section 62E.16, is 153.22 amended to read: 153.23 62E.16 [POLICY CONVERSION RIGHTS.] 153.24 Every program of self-insurance, policy of group accident 153.25 and health insurance or contract of coverage by a health 153.26 maintenance organization written or renewed in this state, shall 153.27 include, in addition to the provisions required by section 153.28 62A.17, the right to convert to an individual coverage qualified 153.29 plan without the addition of underwriting restrictions after the 153.30 individual insured has exhausted any continuation coverage 153.31 provided under section 62A.146; 62A.148; 62A.17, subdivisions 1 153.32 and 2; 62A.20; or 62A.21; 62C.142; 62D.101; or 62D.105, or 153.33 continuation coverage provided under federal law, if any 153.34 continuation coverage is available to the individual, and then 153.35 leaves the group regardless of the reason for leaving the group 153.36 or if an employer member of a group ceases to remit payment so 154.1 as to terminate coverage for its employees, or upon cancellation 154.2 or termination of the coverage for the group except where 154.3 uninterrupted and continuous group coverage is otherwise 154.4 provided to the group. If the health maintenance organization 154.5 has canceled coverage for the group because of a loss of 154.6 providers in a service area, the health maintenance organization 154.7 shall arrange for other health maintenance or indemnity 154.8 conversion options that shall be offered to enrollees without 154.9 the addition of underwriting restrictions. The required 154.10 conversion contract must treat pregnancy the same as any other 154.11 covered illness under the conversion contract. The person may 154.12 exercise this right to conversion within 30 days of exhausting 154.13 any continuation coverage provided under section 62A.146; 154.14 62A.148; 62A.17, subdivisions 1 and 2; 62A.20; or 62A.21, or 154.15 continuation coverage provided under federal law, and then 154.16 leaving the group or within 30 days following receipt of due 154.17 notice of cancellation or termination of coverage of the group 154.18 or of the employer member of the group and upon payment of 154.19 premiums from the date of termination or cancellation. Due 154.20 notice of cancellation or termination of coverage for a group or 154.21 of the employer member of the group shall be provided to each 154.22 employee having coverage in the group by the insurer, 154.23 self-insurer or health maintenance organization canceling or 154.24 terminating the coverage except where reasonable evidence 154.25 indicates that uninterrupted and continuous group coverage is 154.26 otherwise provided to the group. Every employer having a policy 154.27 of group accident and health insurance, group subscriber or 154.28 contract of coverage by a health maintenance organization shall, 154.29 upon request, provide the insurer or health maintenance 154.30 organization a list of the names and addresses of covered 154.31 employees. Plans of health coverage shall also include a 154.32 provision which, upon the death of the individual in whose name 154.33 the contract was issued, permits every other individual then 154.34 covered under the contract to elect, within the period specified 154.35 in the contract, to continue coverage under the same or a 154.36 different contract without the addition of underwriting 155.1 restrictions until the individual would have ceased to have been 155.2 entitled to coverage had the individual in whose name the 155.3 contract was issued lived. An individual conversion contract 155.4 issued by a health maintenance organization shall not be deemed 155.5 to be an individual enrollment contract for the purposes of 155.6 section 62D.10. An individual health plan offered under section 155.7 62A.65, subdivision 5, paragraph (b), to a person satisfies the 155.8 health carrier's obligation to offer conversion coverage under 155.9 this section with respect to that person. 155.10 Sec. 16. Minnesota Statutes 2000, section 62L.12, 155.11 subdivision 2, is amended to read: 155.12 Subd. 2. [EXCEPTIONS.] (a) A health carrier may sell, 155.13 issue, or renew individual conversion policies to eligible 155.14 employees otherwise eligible for conversion coverage under 155.15 section 62D.104 as a result of leaving a health maintenance 155.16 organization's service area. 155.17 (b) A health carrier may sell, issue, or renew individual 155.18 conversion policies to eligible employees otherwise eligible for 155.19 conversion coverage as a result of the expiration of any 155.20 continuation of group coverage required under sections 62A.146, 155.21 62A.17, and 62A.21, 62C.142, 62D.101, and 62D.105. 155.22 (c) A health carrier may sell, issue, or renew conversion 155.23 policies under section 62E.16 to eligible employees. 155.24 (d) A health carrier may sell, issue, or renew individual 155.25 continuation policies to eligible employees as required. 155.26 (e) A health carrier may sell, issue, or renew individual 155.27 health plans if the coverage is appropriate due to an unexpired 155.28 preexisting condition limitation or exclusion applicable to the 155.29 person under the employer's group health plan or due to the 155.30 person's need for health care services not covered under the 155.31 employer's group health plan. 155.32 (f) A health carrier may sell, issue, or renew an 155.33 individual health plan, if the individual has elected to buy the 155.34 individual health plan not as part of a general plan to 155.35 substitute individual health plans for a group health plan nor 155.36 as a result of any violation of subdivision 3 or 4. 156.1 (g) Nothing in this subdivision relieves a health carrier 156.2 of any obligation to provide continuation or conversion coverage 156.3 otherwise required under federal or state law. 156.4 (h) Nothing in this chapter restricts the offer, sale, 156.5 issuance, or renewal of coverage issued as a supplement to 156.6 Medicare under sections 62A.31 to 62A.44, or policies or 156.7 contracts that supplement Medicare issued by health maintenance 156.8 organizations, or those contracts governed by section 1833 or 156.9 1876 of the federal Social Security Act, United States Code, 156.10 title 42, section 1395 et seq., as amended. 156.11 (i) Nothing in this chapter restricts the offer, sale, 156.12 issuance, or renewal of individual health plans necessary to 156.13 comply with a court order. 156.14 Sec. 17. Minnesota Statutes 2000, section 257.34, 156.15 subdivision 1, is amended to read: 156.16 Subdivision 1. [ACKNOWLEDGMENT BY PARENTS.] The mother and 156.17 father of a child born to a mother who was not married to the 156.18 child's father when the child was conceived nor when the child 156.19 was born may, in a writing signed by both of them before a 156.20 notary public, declare and acknowledge under oath that they are 156.21 the biological parents of the child. The declaration may 156.22 provide that any such child born to the mother at any time 156.23 before or up to ten months after the date of execution of the 156.24 declaration is the biological child of the signatories. 156.25 Execution of the declaration shall: 156.26 (a) have the same consequences as an acknowledgment by the 156.27 signatories of parentage of the child for the purposes of 156.28sectionssection 62A.041and 62C.14, subdivision 5a; 156.29 (b) be conclusive evidence that the signatories are parents 156.30 of the child for the purposes of sections 176.111, 197.75, and 156.31 197.752; 156.32 (c) create a presumption that the signatory is the 156.33 biological father of the child for the purposes of sections 156.34 257.51 to 257.74; 156.35 (d) when timely filed with the department of health as 156.36 provided in section 259.52, qualify as an affidavit stating the 157.1 intention of the signatories to retain parental rights as 157.2 provided in section 259.52 if it contains the information 157.3 required by section 259.52 or rules promulgated thereunder; 157.4 (e) have the same consequences as a writing declaring 157.5 paternity of the child for the purposes of section 524.2-109; 157.6 and 157.7 (f) be conclusive evidence that the signatories are parents 157.8 of the child for the purposes of chapter 573. 157.9 Sec. 18. [REPEALER.] 157.10 Minnesota Statutes 2000, sections 62A.049; 62A.21, 157.11 subdivision 3; 62C.14, subdivisions 5, 5a, 5b, and 14; 62C.142; 157.12 62D.101; and 62D.105, are repealed. 157.13 Sec. 19. [EFFECTIVE DATE.] 157.14 Sections 1 to 18 are effective January 1, 2002, and apply 157.15 to coverage issued on or after that date. 157.16 ARTICLE 8 157.17 PUBLIC SERVICE CONSOLIDATION 157.18 Section 1. [CONSOLIDATION OF STATE REGULATION OF 157.19 COMMERCE.] 157.20 In order to make state government more efficient and 157.21 effective and to accomplish more efficient and effective 157.22 regulation of commerce in Minnesota, all of the powers, rights, 157.23 responsibilities, and duties that remain in the department of 157.24 public service after reorganization order No. 181 are 157.25 transferred to the department of commerce under Minnesota 157.26 Statutes, section 15.039. This transfer is governed in all 157.27 respects by Minnesota Statutes, section 15.039. The department 157.28 of public service is abolished. 157.29 Sec. 2. Minnesota Statutes 2000, section 3C.12, 157.30 subdivision 2, is amended to read: 157.31 Subd. 2. [FREE DISTRIBUTION.] The revisor shall distribute 157.32 without charge copies of each edition of Minnesota Statutes, 157.33 supplements to Minnesota Statutes, and Laws of Minnesota to the 157.34 persons or bodies listed in this subdivision. Before 157.35 distributing the copies, the revisor shall inform these persons 157.36 or bodies of the cost of the publication and the availability of 158.1 statutes and session laws on the Internet, and shall ask whether 158.2 their work requires the full number of copies authorized by this 158.3 subdivision. Unless a smaller number is needed, the revisor 158.4 shall distribute: 158.5 (a) 30 copies to the supreme court; 158.6 (b) 30 copies to the court of appeals; 158.7 (c) one copy to each judge of a district court; 158.8 (d) one copy to the court administrator of each district 158.9 court for use in each courtroom of the district court; 158.10 (e) one copy to each judge, district attorney, clerk of 158.11 court of the United States, and deputy clerk of each division of 158.12 the United States district court in Minnesota; 158.13 (f) 100 copies to the office of the attorney general; 158.14 (g) ten copies each to the governor's office, the 158.15 departments of agriculture,commerce,corrections, children, 158.16 families, and learning, finance, health, transportation, labor 158.17 and industry, economic security, natural resources, public 158.18 safety,public service,human services, revenue, and the 158.19 pollution control agency; 158.20 (h) two copies each to the lieutenant governor and the 158.21 state treasurer; 158.22 (i) 20 copies each to thedepartmentdepartments of 158.23 administration and commerce, state auditor, and legislative 158.24 auditor; 158.25 (j) one copy each to other state departments, agencies, 158.26 boards, and commissions not specifically named in this 158.27 subdivision; 158.28 (k) one copy to each member of the legislature; 158.29 (l) 150 copies for the use of the senate and 200 copies for 158.30 the use of the house of representatives; 158.31 (m) 50 copies to the revisor of statutes from which the 158.32 revisor shall send the appropriate number to the Library of 158.33 Congress for copyright and depository purposes; 158.34 (n) four copies to the secretary of the senate; 158.35 (o) four copies to the chief clerk of the house of 158.36 representatives; 159.1 (p) 100 copies to the state law library; 159.2 (q) 100 copies to the law school of the University of 159.3 Minnesota; 159.4 (r) five copies each to the Minnesota historical society 159.5 and the secretary of state; 159.6 (s) one copy each to the public library of the largest 159.7 municipality of each county if the library is not otherwise 159.8 eligible to receive a free copy under this section or section 159.9 15.18; and 159.10 (t) one copy to each county library maintained pursuant to 159.11 chapter 134, except in counties containing cities of the first 159.12 class. If a county has not established a county library 159.13 pursuant to chapter 134, the copy shall be provided to any 159.14 public library in the county. 159.15 Sec. 3. Minnesota Statutes 2000, section 13.679, is 159.16 amended to read: 159.17 13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 159.18 Subdivision 1. [TENANT.] Data collected by thedepartment159.19of public servicecommissioner of commerce that reveals the 159.20 identity of a tenant who makes a complaint regarding energy 159.21 efficiency standards for rental housing are private data on 159.22 individuals. 159.23 Subd. 2. [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 159.24 CUSTOMER.] (a) The following are private data on individuals: 159.25 data collected by thedepartment of public servicecommissioner 159.26 of commerce or the public utilities commission, including the 159.27 names or any other data that would reveal the identity of either 159.28 an employee or customer of a telephone company or public utility 159.29 who files a complaint or provides information regarding a 159.30 violation or suspected violation by the telephone company or 159.31 public utility of any federal or state law or rule; except this 159.32 data may be released as needed to law enforcement authorities. 159.33 (b) The following are private data on individuals: data 159.34 collected by the commission or thedepartment of public service159.35 commissioner of commerce on individual public utility or 159.36 telephone company customers or prospective customers, including 160.1 copies of tax forms, needed to administer federal or state 160.2 programs that provide relief from telephone company bills, 160.3 public utility bills, or cold weather disconnection. The 160.4 determination of eligibility of the customers or prospective 160.5 customers may be released to public utilities or telephone 160.6 companies to administer the programs. 160.7 Sec. 4. Minnesota Statutes 2000, section 15.01, is amended 160.8 to read: 160.9 15.01 [DEPARTMENTS OF THE STATE.] 160.10 The following agencies are designated as the departments of 160.11 the state government: the department of administration; the 160.12 department of agriculture; the department of commerce; the 160.13 department of corrections; the department of children, families, 160.14 and learning; the department of economic security; the 160.15 department of trade and economic development; the department of 160.16 finance; the department of health; the department of human 160.17 rights; the department of labor and industry; the department of 160.18 military affairs; the department of natural resources; the 160.19 department of employee relations; the department of public 160.20 safety;the department of public service;the department of 160.21 human services; the department of revenue; the department of 160.22 transportation; the department of veterans affairs; and their 160.23 successor departments. 160.24 Sec. 5. Minnesota Statutes 2000, section 15.06, 160.25 subdivision 1, is amended to read: 160.26 Subdivision 1. [APPLICABILITY.] This section applies to 160.27 the following departments or agencies: the departments of 160.28 administration, agriculture, commerce, corrections, economic 160.29 security, children, families, and learning, employee relations, 160.30 trade and economic development, finance, health, human rights, 160.31 labor and industry, natural resources, public safety,public160.32service,human services, revenue, transportation, and veterans 160.33 affairs; the housing finance and pollution control agencies; the 160.34 office of commissioner of iron range resources and 160.35 rehabilitation; the bureau of mediation services; and their 160.36 successor departments and agencies. The heads of the foregoing 161.1 departments or agencies are "commissioners." 161.2 Sec. 6. Minnesota Statutes 2000, section 15A.0815, 161.3 subdivision 2, is amended to read: 161.4 Subd. 2. [GROUP I SALARY LIMITS.] The salaries for 161.5 positions in this subdivision may not exceed 95 percent of the 161.6 salary of the governor: 161.7 Commissioner of administration; 161.8 Commissioner of agriculture; 161.9 Commissioner of children, families, and learning; 161.10 Commissioner of commerce; 161.11 Commissioner of corrections; 161.12 Commissioner of economic security; 161.13 Commissioner of employee relations; 161.14 Commissioner of finance; 161.15 Commissioner of health; 161.16 Executive director, higher education services office; 161.17 Commissioner, housing finance agency; 161.18 Commissioner of human rights; 161.19 Commissioner of human services; 161.20 Executive director, state board of investment; 161.21 Commissioner of labor and industry; 161.22 Commissioner of natural resources; 161.23 Director of office of strategic and long-range planning; 161.24 Commissioner, pollution control agency; 161.25 Commissioner of public safety; 161.26Commissioner, department of public service;161.27 Commissioner of revenue; 161.28 Commissioner of trade and economic development; 161.29 Commissioner of transportation; and 161.30 Commissioner of veterans affairs. 161.31 Sec. 7. Minnesota Statutes 2000, section 16B.32, 161.32 subdivision 2, is amended to read: 161.33 Subd. 2. [ENERGY CONSERVATION GOALS; EFFICIENCY PROGRAM.] 161.34 (a) The commissioner of administration in consultation with 161.35 thedepartment of public servicecommissioner of commerce, in 161.36 cooperation with one or more public utilities or comprehensive 162.1 energy services providers, may conduct a shared-savings program 162.2 involving energy conservation expenditures on state-owned 162.3 buildings. The public utility or energy services provider shall 162.4 contract with appropriate state agencies to implement energy 162.5 efficiency improvements in the selected buildings. A contract 162.6 must require the public utility or energy services provider to 162.7 include all energy efficiency improvements in selected buildings 162.8 that are calculated to achieve a cost payback within ten years. 162.9 The contract must require that the public utility or energy 162.10 services provider be repaid solely from energy cost savings and 162.11 only to the extent of energy cost savings. Repayments must be 162.12 interest-free. The goal of the program in this paragraph is to 162.13 demonstrate that through effective energy conservation the total 162.14 energy consumption per square foot of state-owned and wholly 162.15 state-leased buildings could be reduced by at least 25 percent 162.16 from consumption in the base year of 1990. All agencies 162.17 participating in the program must report to the commissioner of 162.18 administration their monthly energy usage, building schedules, 162.19 inventory of energy-consuming equipment, and other information 162.20 as needed by the commissioner to manage and evaluate the program. 162.21 (b) The commissioner may exclude from the program of 162.22 paragraph (a) a building in which energy conservation measures 162.23 are carried out. "Energy conservation measures" means measures 162.24 that are applied to a state building that improve energy 162.25 efficiency and have a simple return of investment in ten years 162.26 or within the remaining period of a lease, whichever time is 162.27 shorter, and involves energy conservation, conservation 162.28 facilities, renewable energy sources, improvements in operations 162.29 and maintenance efficiencies, or retrofit activities. 162.30 (c) This subdivision expires January 1, 2001. 162.31 Sec. 8. Minnesota Statutes 2000, section 16B.335, 162.32 subdivision 4, is amended to read: 162.33 Subd. 4. [ENERGY CONSERVATION.] A recipient to whom a 162.34 direct appropriation is made for a capital improvement project 162.35 shall ensure that the project complies with the applicable 162.36 energy conservation standards contained in law, including 163.1 sections 216C.19 to 216C.20, and rules adopted thereunder. The 163.2 recipient mayuse the energy planning and intervention and163.3energy technologies units of the department of public service to163.4 obtain information and technical assistance from the state 163.5 energy office in the department of commerce on energy 163.6 conservation and alternative energy development relating to the 163.7 planning and construction of the capital improvement project. 163.8 Sec. 9. Minnesota Statutes 2000, section 16B.56, 163.9 subdivision 1, is amended to read: 163.10 Subdivision 1. [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 163.11 [ESTABLISHMENT.] To conserve energy and alleviate traffic 163.12 congestion around state offices, the commissioner shall, in 163.13 cooperation withthe commissioner of public service,the 163.14 commissioner of transportation, the state energy office in the 163.15 department of commerce, and interested nonprofit agencies, 163.16 establish and operate an employee transportation program using 163.17 commuter vans with a capacity of not less than seven nor more 163.18 than 16 passengers. Commuter vans may be used by state 163.19 employees and others to travel between their homes and their 163.20 work locations. However, only state employee drivers may use 163.21 the van for personal purposes after working hours, not including 163.22 partisan political activity. The commissioner shall acquire or 163.23 lease commuter vans, or otherwise contract for the provision of 163.24 commuter vans, and shall make the vans available for the use of 163.25 state employees and others in accordance with standards and 163.26 procedures adopted by the commissioner. The commissioner shall 163.27 promote the maximum participation of state employees and others 163.28 in the use of the vans. 163.29 (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 163.30 standards and procedures under this section without regard to 163.31 chapter 14. The commissioner shall provide for the recovery by 163.32 the state of vehicle acquisition, lease, operation, and 163.33 insurance costs through efficient and convenient assignment of 163.34 vans, and for the billing of costs and collection of fees. A 163.35 state employee using a van for personal use shall pay, pursuant 163.36 to the standards and procedures adopted by the commissioner, for 164.1 operating and routine maintenance costs incurred as a result of 164.2 the personal use. Fees collected under this subdivision shall 164.3 be deposited in the accounts from which the costs of operating, 164.4 maintaining, and leasing or amortization for the specific 164.5 vehicle are paid. 164.6 Sec. 10. Minnesota Statutes 2000, section 16B.76, 164.7 subdivision 1, is amended to read: 164.8 Subdivision 1. [MEMBERSHIP.] (a) The construction codes 164.9 advisory council consists of the following members: 164.10 (1) the commissioner of administration or the 164.11 commissioner's designee representing the department's building 164.12 codes and standards division; 164.13 (2) the commissioner of health or the commissioner's 164.14 designee representing an environmental health section of the 164.15 department; 164.16 (3) the commissioner of public safety or the commissioner's 164.17 designee representing the department's state fire marshal 164.18 division; 164.19 (4) the commissioner ofpublic servicecommerce or the 164.20 commissioner's designee representing the department'senergy164.21regulation and resource management divisionstate energy office; 164.22 and 164.23 (5) one member representing each of the following 164.24 occupations or entities, appointed by the commissioner of 164.25 administration: 164.26 (i) a certified building official; 164.27 (ii) a fire service representative; 164.28 (iii) a licensed architect; 164.29 (iv) a licensed engineer; 164.30 (v) a building owners and managers representative; 164.31 (vi) a licensed residential building contractor; 164.32 (vii) a commercial building contractor; 164.33 (viii) a heating and ventilation contractor; 164.34 (ix) a plumbing contractor; 164.35 (x) a representative of a construction and building trades 164.36 union; and 165.1 (xi) a local unit of government representative. 165.2 (b) For members who are not state officials or employees, 165.3 terms, compensation, removal, and the filling of vacancies are 165.4 governed by section 15.059. The council shall select one of its 165.5 members to serve as chair. 165.6 (c) The council expires June 30, 2001. 165.7 Sec. 11. Minnesota Statutes 2000, section 17.86, 165.8 subdivision 3, is amended to read: 165.9 Subd. 3. [INFORMATION.] The University of Minnesota 165.10 extension service, in cooperation with the commissioners of 165.11 agriculture, children, families, and learning, natural 165.12 resources, andpublic servicecommerce, shall serve as the 165.13 principal agency for publishing and circulating information 165.14 derived from research under subdivision 2 among the various 165.15 municipalities and individual property owners in the state. 165.16 Where practical, the extension service and the state energy 165.17 office in the department ofpublic servicecommerce shall secure 165.18 the advice and assistance of various energy utilities interested 165.19 and concerned with conservation. The commissioner of 165.20 agriculture shall establish an information source for requests 165.21 for nursery stock, to match needs of municipalities with stocks 165.22 of trees available for planting from private and governmental 165.23 sources. 165.24 Sec. 12. Minnesota Statutes 2000, section 18.024, 165.25 subdivision 1, is amended to read: 165.26 Subdivision 1. [WOOD UTILIZATION.] The departments of 165.27 agriculture and natural resources, after consultation with the 165.28 Minnesota shade tree advisory committee and thecommissioner of165.29public servicestate energy office in the department of 165.30 commerce, shall investigate, evaluate, and make recommendations 165.31 to the legislature concerning the potential uses of wood from 165.32 community trees removed due to disease or other disorders. 165.33 These recommendations shall include maximum resource recovery 165.34 through recycling, use as an alternative energy source, or use 165.35 in construction or the manufacture of new products. Wood 165.36 utilization or disposal systems as defined in section 18.023 166.1 must be included to ensure maximum utilization of diseased shade 166.2 trees with designs and procedures to ensure public safety and to 166.3 assure compliance with approved disease control programs. 166.4 Sec. 13. Minnesota Statutes 2000, section 43A.08, 166.5 subdivision 1a, is amended to read: 166.6 Subd. 1a. [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 166.7 authorities for the following agencies may designate additional 166.8 unclassified positions according to this subdivision: the 166.9 departments of administration; agriculture; commerce; 166.10 corrections; economic security; children, families, and 166.11 learning; employee relations; trade and economic development; 166.12 finance; health; human rights; labor and industry; natural 166.13 resources; public safety;public service;human services; 166.14 revenue; transportation; and veterans affairs; the housing 166.15 finance and pollution control agencies; the state lottery; the 166.16 state board of investment; the office of administrative 166.17 hearings; the office of environmental assistance; the offices of 166.18 the attorney general, secretary of state, state auditor, and 166.19 state treasurer; the Minnesota state colleges and universities; 166.20 the higher education services office; the Perpich center for 166.21 arts education; and the Minnesota zoological board. 166.22 A position designated by an appointing authority according 166.23 to this subdivision must meet the following standards and 166.24 criteria: 166.25 (1) the designation of the position would not be contrary 166.26 to other law relating specifically to that agency; 166.27 (2) the person occupying the position would report directly 166.28 to the agency head or deputy agency head and would be designated 166.29 as part of the agency head's management team; 166.30 (3) the duties of the position would involve significant 166.31 discretion and substantial involvement in the development, 166.32 interpretation, and implementation of agency policy; 166.33 (4) the duties of the position would not require primarily 166.34 personnel, accounting, or other technical expertise where 166.35 continuity in the position would be important; 166.36 (5) there would be a need for the person occupying the 167.1 position to be accountable to, loyal to, and compatible with, 167.2 the governor and the agency head, the employing statutory board 167.3 or commission, or the employing constitutional officer; 167.4 (6) the position would be at the level of division or 167.5 bureau director or assistant to the agency head; and 167.6 (7) the commissioner has approved the designation as being 167.7 consistent with the standards and criteria in this subdivision. 167.8 Sec. 14. Minnesota Statutes 2000, section 45.012, is 167.9 amended to read: 167.10 45.012 [COMMISSIONER.] 167.11 (a) The department of commerce is under the supervision and 167.12 control of the commissioner of commerce. The commissioner is 167.13 appointed by the governor in the manner provided by section 167.14 15.06. 167.15 (b) Data that is received by the commissioner or the 167.16 commissioner's designee by virtue of membership or participation 167.17 in an association, group, or organization that is not otherwise 167.18 subject to chapter 13 is confidential or protected nonpublic 167.19 data but may be shared with the department employees as the 167.20 commissioner considers appropriate. The commissioner may 167.21 release the data to any person, agency, or the public if the 167.22 commissioner determines that the access will aid the law 167.23 enforcement process, promote public health or safety, or dispel 167.24 widespread rumor or unrest. 167.25 (c) It is part of the department's mission that within the 167.26 department's resources the commissioner shall endeavor to: 167.27 (1) prevent the waste or unnecessary spending of public 167.28 money; 167.29 (2) use innovative fiscal and human resource practices to 167.30 manage the state's resources and operate the department as 167.31 efficiently as possible; 167.32 (3) coordinate the department's activities wherever 167.33 appropriate with the activities of other governmental agencies; 167.34 (4) use technology where appropriate to increase agency 167.35 productivity, improve customer service, increase public access 167.36 to information about government, and increase public 168.1 participation in the business of government; 168.2 (5) utilize constructive and cooperative labor-management 168.3 practices to the extent otherwise required by chapters 43A and 168.4 179A; 168.5 (6) report to the legislature on the performance of agency 168.6 operations and the accomplishment of agency goals in the 168.7 agency's biennial budget according to section 16A.10, 168.8 subdivision 1; and 168.9 (7) recommend to the legislature appropriate changes in law 168.10 necessary to carry out the mission and improve the performance 168.11 of the department. 168.12 (d) The commissioner also has all the powers and 168.13 responsibilities and shall perform all the duties previously 168.14 assigned to the commissioner of public service and the 168.15 department of public service under chapters 216, 216A, 216B, 168.16 216C, 237, 238, 239, and other statutes prior to the date of 168.17 final enactment of this act, except in the case where those 168.18 powers, responsibilities, or duties have been specifically 168.19 otherwise assigned by law. 168.20 Sec. 15. Minnesota Statutes 2000, section 103F.325, 168.21 subdivision 2, is amended to read: 168.22 Subd. 2. [REVIEW AND HEARING.] (a) The commissioner shall 168.23 make the proposed management plan available to affected local 168.24 governmental bodies, shoreland owners, conservation and outdoor 168.25 recreation groups, the commissioner of trade and economic 168.26 development, the commissioner ofpublic servicecommerce, the 168.27 governor, and the general public. The commissioners of trade 168.28 and economic developmentand of public service, the state energy 168.29 office in the department of commerce, and the governor shall 168.30 review the proposed management plan in accordance with the 168.31 criteria in section 86A.09, subdivision 3, and submit any 168.32 written comments to the commissioner within 60 days after 168.33 receipt of the proposed management plan. 168.34 (b) By 60 days after making the information available, the 168.35 commissioner shall conduct a public hearing on the proposed 168.36 management plan in the county seat of each county that contains 169.1 a portion of the designated system area, in the manner provided 169.2 in chapter 14. 169.3 Sec. 16. Minnesota Statutes 2000, section 103F.325, 169.4 subdivision 3, is amended to read: 169.5 Subd. 3. [POST HEARING REVIEW.] Upon receipt of the 169.6 administrative law judge's report, the commissioner shall 169.7 immediately forward the proposed management plan and the 169.8 administrative law judge's report to the commissioners of trade 169.9 and economic development and ofpublic servicecommerce for 169.10 review under section 86A.09, subdivision 3, except that the 169.11 review by the commissioners must be completed or be deemed 169.12 completed within 30 days after receiving the administrative law 169.13 judge's report, and the review by the governor must be completed 169.14 or be deemed completed within 15 days after receipt. 169.15 Sec. 17. Minnesota Statutes 2000, section 115A.15, 169.16 subdivision 5, is amended to read: 169.17 Subd. 5. [REPORTS.] (a) By January 1 of each odd-numbered 169.18 year, the commissioner of administration shall submit a report 169.19 to the governor and to the environment and natural resources 169.20 committees of the senate and house of representatives, the 169.21 finance division of the senate committee on environment and 169.22 natural resources, and the house of representatives committee on 169.23 environment and natural resources finance summarizing past 169.24 activities and proposed goals of the program for the following 169.25 biennium. The report shall include at least: 169.26 (1) a summary list of product and commodity purchases that 169.27 contain recycled materials; 169.28 (2) the results of any performance tests conducted on 169.29 recycled products and agencies' experience with recycled 169.30 products used; 169.31 (3) a list of all organizations participating in and using 169.32 the cooperative purchasing program; and 169.33 (4) a list of products and commodities purchased for their 169.34 recyclability and of recycled products reviewed for purchase. 169.35 (b) By July 1 of each even-numbered year, the director of 169.36 the office of environmental assistance and the commissioner of 170.1public servicecommerce through the state energy office shall 170.2 submit recommendations to the commissioner regarding the 170.3 operation of the program. 170.4 Sec. 18. Minnesota Statutes 2000, section 116O.06, 170.5 subdivision 2, is amended to read: 170.6 Subd. 2. [EQUITY INVESTMENTS.] The corporation may acquire 170.7 an interest in a product or a private business entity, except 170.8 that the corporation may not acquire an interest in a business 170.9 entity engaged in a trade or industry whose profits are directly 170.10 regulated by the commissioner of commerce or thedepartment of170.11public servicepublic utilities commission. The corporation may 170.12 enter into joint venture agreements with other private 170.13 corporations to promote economic development and job creation. 170.14 Sec. 19. Minnesota Statutes 2000, section 123B.65, 170.15 subdivision 1, is amended to read: 170.16 Subdivision 1. [DEFINITIONS.] The definitions in this 170.17 subdivision apply to this section. 170.18 (a) "Energy conservation measure" means a training program 170.19 or facility alteration designed to reduce energy consumption or 170.20 operating costs and includes: 170.21 (1) insulation of the building structure and systems within 170.22 the building; 170.23 (2) storm windows and doors, caulking or weatherstripping, 170.24 multiglazed windows and doors, heat absorbing or heat reflective 170.25 glazed and coated window and door systems, additional glazing, 170.26 reductions in glass area, and other window and door system 170.27 modifications that reduce energy consumption; 170.28 (3) automatic energy control systems; 170.29 (4) heating, ventilating, or air conditioning system 170.30 modifications or replacements; 170.31 (5) replacement or modifications of lighting fixtures to 170.32 increase the energy efficiency of the lighting system without 170.33 increasing the overall illumination of a facility, unless such 170.34 increase in illumination is necessary to conform to the 170.35 applicable state or local building code for the lighting system 170.36 after the proposed modifications are made; 171.1 (6) energy recovery systems; 171.2 (7) cogeneration systems that produce steam or forms of 171.3 energy such as heat, as well as electricity, for use primarily 171.4 within a building or complex of buildings; 171.5 (8) energy conservation measures that provide long-term 171.6 operating cost reductions. 171.7 (b) "Guaranteed energy savings contract" means a contract 171.8 for the evaluation and recommendations of energy conservation 171.9 measures, and for one or more energy conservation measures. The 171.10 contract must provide that all payments, except obligations on 171.11 termination of the contract before its expiration, are to be 171.12 made over time, but not to exceed 15 years from the date of 171.13 final installation, and the savings are guaranteed to the extent 171.14 necessary to make payments for the systems. 171.15 (c) "Qualified provider" means a person or business 171.16 experienced in the design, implementation, and installation of 171.17 energy conservation measures. A qualified provider to whom the 171.18 contract is awarded shall give a sufficient bond to the school 171.19 district for its faithful performance. 171.20 (d) "Commissioner" means the commissioner ofpublic service171.21 commerce through the state energy office. 171.22 Sec. 20. Minnesota Statutes 2000, section 123B.65, 171.23 subdivision 3, is amended to read: 171.24 Subd. 3. [EVALUATION BY COMMISSIONER.] Upon request of the 171.25 board, the commissionerof public serviceshall review the 171.26 report required in subdivision 2 and provide an evaluation to 171.27 the board on the proposed contract within 15 working days of 171.28 receiving the report. In evaluating the proposed contract, the 171.29 commissioner shall determine whether the detailed calculations 171.30 of the costs and of the energy and operating savings are 171.31 accurate and reasonable. The commissioner may request 171.32 additional information about a proposed contract as the 171.33 commissioner deems necessary. If the commissioner requests 171.34 additional information, the commissioner shall not be required 171.35 to submit an evaluation to the board within fewer than ten 171.36 working days of receiving the requested information. 172.1 Sec. 21. Minnesota Statutes 2000, section 123B.65, 172.2 subdivision 5, is amended to read: 172.3 Subd. 5. [PAYMENT OF REVIEW EXPENSES.] The commissionerof172.4public servicemay charge a district requesting services under 172.5 subdivisions 3 and 4 actual costs incurred by the department 172.6 ofpublic servicecommerce while conducting the review, or 172.7 one-half percent of the total identified project cost, whichever 172.8 is less. Before conducting the review, the commissioner shall 172.9 notify a district requesting review services that expenses will 172.10 be charged to the district. The commissioner shall bill the 172.11 district upon completion of the contract review. Money 172.12 collected by the commissioner under this subdivision must be 172.13 deposited in the general fund. A district may include the cost 172.14 of a review by the commissioner under subdivision 3 in a 172.15 contract made pursuant to this section. 172.16 Sec. 22. Minnesota Statutes 2000, section 161.45, 172.17 subdivision 1, is amended to read: 172.18 Subdivision 1. [RULES.] Electric transmission, telephone 172.19 or telegraph lines, pole lines, community antenna television 172.20 lines, railways, ditches, sewers, water, heat or gas mains, gas 172.21 and other pipe lines, flumes, or other structures which, under 172.22 the laws of this state or the ordinance of any city, may be 172.23 constructed, placed, or maintained across or along any trunk 172.24 highway, or the roadway thereof, by any person, persons, 172.25 corporation, or any subdivision of the state, may be so 172.26 maintained or hereafter constructed only in accordance with such 172.27 rules as may be prescribed by the commissioner who shall have 172.28 power to prescribe and enforce reasonable rules with reference 172.29 to the placing and maintaining along, across, or in any such 172.30 trunk highway of any of the utilities hereinbefore set forth. 172.31 Nothing herein shall restrict the actions of public authorities 172.32 in extraordinary emergencies nor restrict the power and 172.33 authority of thedepartment of public servicecommissioner of 172.34 commerce as provided for in other provisions of law. Provided, 172.35 however, that in the event any local subdivision of government 172.36 has enacted ordinances relating to the method of installation or 173.1 requiring underground installation of such community antenna 173.2 television lines, the permit granted by the commissioner of 173.3 transportation shall require compliance with such local 173.4 ordinance. 173.5 Sec. 23. Minnesota Statutes 2000, section 168.61, 173.6 subdivision 1, is amended to read: 173.7 Subdivision 1. [DEFINITION.] The term "intercity bus" as 173.8 used in sections 168.61 to 168.65 means a motor bus as defined 173.9 in section 168.011, subdivision 9, which is owned or operated by 173.10 either a resident or nonresident of Minnesota in interstate 173.11 commerce under authority of the Interstate Commerce Commission 173.12 or in combined interstate and intrastate commerce under 173.13 authority of the Interstate Commerce Commission and the 173.14 department ofpublic servicetransportation of Minnesota, as a 173.15 result of which operation such bus operates both within and 173.16 without the territorial limits of the state of Minnesota. 173.17 Sec. 24. Minnesota Statutes 2000, section 169.073, is 173.18 amended to read: 173.19 169.073 [PROHIBITED LIGHT OR SIGNAL.] 173.20 (a) No person or corporation shall place, maintain or 173.21 display any red light or red sign, signal, or lighting device or 173.22 maintain it in view of any highway or any line of railroad on or 173.23 over which trains are operated in such a way as to interfere 173.24 with the effectiveness or efficiency of any highway 173.25 traffic-control device or signals or devices used in the 173.26 operation of a railroad. Upon written notice from the 173.27 commissioner of transportation, a person or corporation 173.28 maintaining or owning or displaying a prohibited light shall 173.29 promptly remove it, or change the color of it to some other 173.30 color than red. Where a prohibited light or sign interferes 173.31 with the effectiveness or efficiency of the signals or devices 173.32 used in the operation of a railroad, the department ofpublic173.33servicetransportation may cause the removal of it and the 173.34 department may issue notices and orders for its removal. The 173.35 department shall proceed as provided in sections 216.13, 216.14, 173.36 216.15, 216.16, and 216.17, with a right of appeal to the 174.1 aggrieved party in accordance with chapter 14. 174.2 (b) No person or corporation shall maintain or display any 174.3 light after written notice from the commissioner of 174.4 transportation or the department of public service that the 174.5 light constitutes a traffic hazard and that it has ordered the 174.6 removal thereof. 174.7 Sec. 25. Minnesota Statutes 2000, section 174.03, 174.8 subdivision 7, is amended to read: 174.9 Subd. 7. [ENERGY CONSERVATION.] The commissioner, in 174.10 cooperation with the commissioner ofpublic servicecommerce 174.11 through the state energy office, shall evaluate all modes of 174.12 transportation in terms of their levels of energy consumption. 174.13 The commissioner ofpublic servicecommerce shall provide the 174.14 commissioner with projections of the future availability of 174.15 energy resources for transportation. The commissioner shall use 174.16 the results of this evaluation and the projections to evaluate 174.17 alternative programs and facilities to be included in the 174.18 statewide plan and to otherwise promote the more efficient use 174.19 of energy resources for transportation purposes. 174.20 Sec. 26. Minnesota Statutes 2000, section 181.30, is 174.21 amended to read: 174.22 181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 174.23 Any officer of any railroad company in the state violating 174.24 any of the provisions of section 181.29 shall be guilty of a 174.25 misdemeanor; and, upon conviction, punished by a fine of not 174.26 less than $100, and not more than $700, for each offense, or by 174.27 imprisonment in the county jail not more than 60 days, or both 174.28 fine and imprisonment, at the discretion of the court. It shall 174.29 be the duty of the state department ofpublic174.30servicetransportation, upon complaint properly filed with it 174.31 alleging a violation of section 181.29, to make a full 174.32 investigation in relation thereto, and for such purpose it shall 174.33 have the power to administer oaths, interrogate witnesses, take 174.34 testimony and require the production of books and papers, and if 174.35 such report shall show a violation of the provisions of section 174.36 181.29, the department ofpublic servicetransportation shall, 175.1 through the attorney general, begin the prosecution of all 175.2 parties against whom evidence of such violation is found; but 175.3 section 181.29 shall not be construed to prevent any other 175.4 person from beginning prosecution for the violation of the 175.5 provisions thereof. 175.6 Sec. 27. Minnesota Statutes 2000, section 216A.01, is 175.7 amended to read: 175.8 216A.01 [ESTABLISHMENT OFDEPARTMENT AND COMMISSION; POWERS 175.9 AND DUTIES.] 175.10There are hereby created and established the department of175.11public service, and the public utilities commission.The 175.12 department ofpublic servicecommerce shall have and possess all 175.13 of the rights and powers and perform all of the duties vested in 175.14 it by this chapter. The public utilities commission shall have 175.15 and possess all of the rights and powers and perform all of the 175.16 duties vested in it by this chapter, and those formerly vested 175.17 by law in the railroad and warehouse commission. 175.18 Sec. 28. Minnesota Statutes 2000, section 216A.035, is 175.19 amended to read: 175.20 216A.035 [CONFLICT OF INTEREST.] 175.21 (a) No person, while a member of the public utilities 175.22 commission, while acting as executive secretary of the 175.23 commission, or while employed in a professional capacity by the 175.24 commission, shall receive any income, other than dividends or 175.25 other earnings from a mutual fund or trust if these earnings do 175.26 not constitute a significant portion of the person's income, 175.27 directly or indirectly from any public utility or other 175.28 organization subject to regulation by the commission. 175.29 (b) No person is eligible to be appointed as a member of 175.30 the commission if the person has been employed with an entity, 175.31 or an affiliated company of an entity, that is subject to rate 175.32 regulation by the commission within one year from the date when 175.33 the person's term on the commission will begin. 175.34 (c) No person who is an employee of thepublic service175.35 department of commerce shall participate in any manner in any 175.36 decision or action of the commission where that person has a 176.1 direct or indirect financial interest. Each commissioner or 176.2 employee of thepublic servicedepartment who is in the general 176.3 professional, supervisory, or technical units established in 176.4 section 179A.10 or who is a professional, supervisory, or 176.5 technical employee defined as confidential in section 179A.03, 176.6 subdivision 4, or who is a management classification employee 176.7 and whose duties are related to publicutilities or176.8transportationutility, telephone company, or telecommunications 176.9 company regulation shall report to the campaign finance and 176.10 public disclosure board annually before April 15 any interest in 176.11 an industry or business regulated by the commission. Each 176.12 commissioner shall file a statement of economic interest as 176.13 required by section 10A.09 with the campaign finance and public 176.14 disclosure board and the public utilities commission before 176.15 taking office. The statement of economic interest must state 176.16 any interest that the commissioner has in an industry or 176.17 business regulated by the commission. 176.18 (d) A professional employee of the commission or department 176.19 must immediately disclose to the commission or to the 176.20 commissioner of the department, respectively, any communication, 176.21 direct or indirect, with a person who is a party to a pending 176.22 proceeding before the commission regarding future benefits, 176.23 compensation, or employment to be received from that person. 176.24 Sec. 29. Minnesota Statutes 2000, section 216A.036, is 176.25 amended to read: 176.26 216A.036 [EMPLOYMENT RESTRICTIONS.] 176.27 (a) A person who serves as (1) a commissioner of the public 176.28 utilities commission, (2) commissioner ofthe department of176.29public servicecommerce, or (3) deputy commissioner ofthe176.30departmentcommerce, shall not, while employed with or within 176.31 one year after leaving the commission, or department, accept 176.32 employment with, receive compensation directly or indirectly 176.33 from, or enter into a contractual relationship with an entity, 176.34 or an affiliated company of an entity, that is subject to rate 176.35 regulation by the commission. 176.36 (b) An entity or an affiliated company of an entity that is 177.1 subject to rate regulation by the commission, or a person acting 177.2 on behalf of the entity, shall not negotiate or offer to employ 177.3 or compensate a commissioner of the public utilities commission, 177.4 the commissioner ofpublic servicecommerce, or the deputy 177.5 commissioner of commerce, while the person is so employed or 177.6 within one year after the person leaves that employment. 177.7 (c) For the purposes of this section, "affiliated company" 177.8 means a company that controls, is controlled by, or is under 177.9 common control with an entity subject to rate regulation by the 177.10 commission. 177.11 (d) A person who violates this section is subject to a 177.12 civil penalty not to exceed $10,000 for each violation. The 177.13 attorney general may bring an action in district court to 177.14 collect the penalties provided in this section. 177.15 Sec. 30. Minnesota Statutes 2000, section 216A.05, 177.16 subdivision 1, is amended to read: 177.17 Subdivision 1. [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 177.18 The functions of the commission shall be legislative and 177.19 quasi-judicial in nature. It may make such investigations and 177.20 determinations, hold such hearings, prescribe such rules and 177.21 issue such orders with respect to the control and conduct of the 177.22 businesses coming within its jurisdiction as the legislature 177.23 itself might make but only as it shall from time to time 177.24 authorize. It may adjudicate all proceedings brought before it 177.25 in which the violation of any law or rule administered by the 177.26 department of commerce is alleged. 177.27 Sec. 31. Minnesota Statutes 2000, section 216A.07, 177.28 subdivision 1, is amended to read: 177.29 Subdivision 1. [ADMINISTRATIVECOMMISSIONER DUTIES.] The 177.30 commissionershall be the executive and administrative head of177.31the public service department and shall have and possessof 177.32 commerce has all the rights and powers and shall perform all the 177.33 dutiesrelating to the administrative function of the department177.34asset forth in this chapter. The commissioner may: 177.35 (1) prepare all forms or blanks for the purpose of 177.36 obtaining information which the commissioner may deem necessary 178.1 or useful in the proper exercise of the authority and duties of 178.2 the commissioner in connection with regulated businesses; 178.3 (2) prescribe the time and manner within which forms or 178.4 blanks shall be filed with the department; 178.5 (3) inspect at all reasonable times, and copy the books, 178.6 records, memoranda and correspondence or other documents and 178.7 records of any person relating to any regulated business; and 178.8 (4) cause the deposition to be taken of any person 178.9 concerning the business and affairs of any business regulated by 178.10 the department. Information sought through said deposition 178.11 shall be for a lawfully authorized purpose and shall be relevant 178.12 and material to the investigation or hearing before the 178.13 commission. Information obtained from said deposition shall be 178.14 used by the department only for a lawfully authorized purpose 178.15 and pursuant to powers and responsibilities conferred upon the 178.16 department. Said deposition is to be taken in the manner 178.17 prescribed by law for taking depositions in civil actions in the 178.18 district court. 178.19 Sec. 32. Minnesota Statutes 2000, section 216A.08, is 178.20 amended to read: 178.21 216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 178.22 DEPARTMENT.] 178.23 All valid rules, orders, and directives heretofore 178.24 enforced, issued, or promulgated by the public service 178.25 department under authority of chapter 216, 216A, 216B, 216C, 178.26 218, 219, 221,or222, 237, 238, or 239 shall remain and 178.27 continue in force and effect until repealed, modified, or 178.28 superseded by duly authorized rules, orders, or directives of 178.29 the public utilities commissionor, the commissioner of 178.30 transportation, or the commissioner of commerce. 178.31 Sec. 33. Minnesota Statutes 2000, section 216A.085, 178.32 subdivision 3, is amended to read: 178.33 Subd. 3. [STAFFING.] The intervention office shall be 178.34 under the control and supervision of the commissioner ofthe178.35department of public servicecommerce. The commissioner may 178.36 hire staff or contract for outside services as needed to carry 179.1 out the purposes of this section. The attorney general shall 179.2 act as counsel in all intervention proceedings. 179.3 Sec. 34. Minnesota Statutes 2000, section 216B.02, 179.4 subdivision 1, is amended to read: 179.5 Subdivision 1. [SCOPE.] For the purposes ofLaws 1974,179.6chapter 429this chapter the terms defined in this section have 179.7 the meanings given them. 179.8 Sec. 35. Minnesota Statutes 2000, section 216B.02, 179.9 subdivision 7, is amended to read: 179.10 Subd. 7. [COMMISSION.] "Commission" means the public 179.11 utilities commissionof the department of public service. 179.12 Sec. 36. Minnesota Statutes 2000, section 216B.02, 179.13 subdivision 8, is amended to read: 179.14 Subd. 8. [DEPARTMENT.] "Department" means the department 179.15 ofpublic servicecommerce of the state of Minnesota. 179.16 Sec. 37. Minnesota Statutes 2000, section 216B.16, 179.17 subdivision 1, is amended to read: 179.18 Subdivision 1. [NOTICE.] Unless the commission otherwise 179.19 orders, no public utility shall change a rate which has been 179.20 duly established under this chapter, except upon 60 days' notice 179.21 to the commission. The notice shall include statements of 179.22 facts, expert opinions, substantiating documents, and exhibits, 179.23 supporting the change requested, and state the change proposed 179.24 to be made in the rates then in force and the time when the 179.25 modified rates will go into effect. If the filing utility does 179.26 not have an approved conservation improvement plan on file with 179.27 the departmentof public service, it shall also include in its 179.28 notice an energy conservation plan pursuant to section 179.29 216B.241. The filing utility shall give written notice, as 179.30 approved by the commission, of the proposed change to the 179.31 governing body of each municipality and county in the area 179.32 affected. All proposed changes shall be shown by filing new 179.33 schedules or shall be plainly indicated upon schedules on file 179.34 and in force at the time. 179.35 Sec. 38. Minnesota Statutes 2000, section 216B.16, 179.36 subdivision 2, is amended to read: 180.1 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 180.2 DETERMINATION DEFINED.] (a) Whenever there is filed with the 180.3 commission a schedule modifying or resulting in a change in any 180.4 rates then in force as provided in subdivision 1, the commission 180.5 may suspend the operation of the schedule by filing with the 180.6 schedule of rates and delivering to the affected utility a 180.7 statement in writing of its reasons for the suspension at any 180.8 time before the rates become effective. The suspension shall 180.9 not be for a longer period than ten months beyond the initial 180.10 filing date except as provided in this subdivision or 180.11 subdivision 1a. 180.12 (b) During the suspension the commission shall determine 180.13 whether all questions of the reasonableness of the rates 180.14 requested raised by persons deemed interested or by the 180.15administrative division of thedepartmentof public servicecan 180.16 be resolved to the satisfaction of the commission. If the 180.17 commission finds that all significant issues raised have not 180.18 been resolved to its satisfaction, or upon petition by ten 180.19 percent of the affected customers or 250 affected customers, 180.20 whichever is less, it shall refer the matter to the office of 180.21 administrative hearings with instructions for a public hearing 180.22 as a contested case pursuant to chapter 14, except as otherwise 180.23 provided in this section. 180.24 (c) The commission may order that the issues presented by 180.25 the proposed rate changes be bifurcated into two separate 180.26 hearings as follows: (1) determination of the utility's revenue 180.27 requirements and (2) determination of the rate design. Upon 180.28 issuance of both administrative law judge reports, the issues 180.29 shall again be joined for consideration and final determination 180.30 by the commission. 180.31 (d) All prehearing discovery activities of state agency 180.32 intervenors shall be consolidated and conducted by the 180.33 department ofpublic servicecommerce. 180.34 (e) If the commission does not make a final determination 180.35 concerning a schedule of rates within ten months after the 180.36 initial filing date, the schedule shall be deemed to have been 181.1 approved by the commission; except if: 181.2 (1) an extension of the procedural schedule has been 181.3 granted under subdivision 1a, in which case the schedule of 181.4 rates is deemed to have been approved by the commission on the 181.5 last day of the extended period of suspension; or 181.6 (2) a settlement has been submitted to and rejected by the 181.7 commission and the commission does not make a final 181.8 determination concerning the schedule of rates, the schedule of 181.9 rates is deemed to have been approved 60 days after the initial 181.10 or, if applicable, the extended period of suspension. 181.11 (f) If the commission finds that it has insufficient time 181.12 during the suspension period to make a final determination of a 181.13 case involving changes in general rates because of the need to 181.14 make a final determination of another previously filed case 181.15 involving changes in general rates under this section or section 181.16 237.075, the commission may extend the suspension period to the 181.17 extent necessary to allow itself 20 working days to make the 181.18 final determination after it has made a final determination in 181.19 the previously filed case. An extension of the suspension 181.20 period under this paragraph does not alter the setting of 181.21 interim rates under subdivision 3. 181.22 (g) For the purposes of this section, "final determination" 181.23 means the initial decision of the commission and not any order 181.24 which may be entered by the commission in response to a petition 181.25 for rehearing or other further relief. The commission may 181.26 further suspend rates until it determines all those petitions. 181.27 Sec. 39. Minnesota Statutes 2000, section 216B.16, 181.28 subdivision 6b, is amended to read: 181.29 Subd. 6b. [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 181.30 otherwise provided in this subdivision, all investments and 181.31 expenses of a public utility as defined in section 216B.241, 181.32 subdivision 1, paragraph (e), incurred in connection with energy 181.33 conservation improvements shall be recognized and included by 181.34 the commission in the determination of just and reasonable rates 181.35 as if the investments and expenses were directly made or 181.36 incurred by the utility in furnishing utility service. 182.1 (b) After December 31, 1999, investments and expenses for 182.2 energy conservation improvements shall not be included by the 182.3 commission in the determination of just and reasonable electric 182.4 and gas rates for retail electric and gas service provided to 182.5 large electric customer facilities that have been exempted by 182.6 the commissioner of the departmentof public servicepursuant to 182.7 section 216B.241, subdivision 1a, paragraph (b). However, no 182.8 public utility shall be prevented from recovering its investment 182.9 in energy conservation improvements from all customers that were 182.10 made on or before December 31, 1999, in compliance with the 182.11 requirements of section 216B.241. 182.12 (c) The commission may permit a public utility to file rate 182.13 schedules providing for annual recovery of the costs of energy 182.14 conservation improvements. These rate schedules may be 182.15 applicable to less than all the customers in a class of retail 182.16 customers if necessary to reflect the differing minimum spending 182.17 requirements of section 216B.241, subdivision 1a. After 182.18 December 31, 1999, the commission shall allow a public utility, 182.19 without requiring a general rate filing under this section, to 182.20 reduce the electric and gas rates applicable to large electric 182.21 customer facilities that have been exempted by the commissioner 182.22 of the departmentof public servicepursuant to section 182.23 216B.241, subdivision 1a, paragraph (b), by an amount that 182.24 reflects the elimination of energy conservation improvement 182.25 investments or expenditures for those facilities required on or 182.26 before December 31, 1999. In the event that the commission has 182.27 set electric or gas rates based on the use of an accounting 182.28 methodology that results in the cost of conservation 182.29 improvements being recovered from utility customers over a 182.30 period of years, the rate reduction may occur in a series of 182.31 steps to coincide with the recovery of balances due to the 182.32 utility for conservation improvements made by the utility on or 182.33 before December 31, 1999. 182.34 Sec. 40. Minnesota Statutes 2000, section 216B.16, 182.35 subdivision 15, is amended to read: 182.36 Subd. 15. [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 183.1 commission may consider ability to pay as a factor in setting 183.2 utility rates and may establish programs for low-income 183.3 residential ratepayers in order to ensure affordable, reliable, 183.4 and continuous service to low-income utility customers. The 183.5 commission shall order a pilot program for at least one 183.6 utility. In ordering pilot programs, the commission shall 183.7 consider the following: 183.8 (1) the potential for low-income programs to provide 183.9 savings to the utility for all collection costs including but 183.10 not limited to: costs of disconnecting and reconnecting 183.11 residential ratepayers' service, all activities related to the 183.12 utilities' attempt to collect past due bills, utility working 183.13 capital costs, and any other administrative costs related to 183.14 inability to pay programs and initiatives; 183.15 (2) the potential for leveraging federal low-income energy 183.16 dollars to the state; and 183.17 (3) the impact of energy costs as a percentage of the total 183.18 income of a low-income residential customer. 183.19 (b) In determining the structure of the pilot utility 183.20 program, the commission shall: 183.21 (1) consult with advocates for and representatives of 183.22 low-income utility customers, administrators of energy 183.23 assistance and conservation programs, and utility 183.24 representatives; 183.25 (2) coordinate eligibility for the program with the state 183.26 and federal energy assistance program and low-income residential 183.27 energy programs, including weatherization programs; and 183.28 (3) evaluate comprehensive low-income programs offered by 183.29 utilities in other states. 183.30 (c) The commission shall implement at least one pilot 183.31 project by January 1, 1995, and shall allow a utility required 183.32 to implement a pilot project to recover the net costs of the 183.33 project in the utility's rates. 183.34(d) The commission, in conjunction with the commissioner of183.35the department of public service and the commissioner of183.36economic security, shall review low-income rate programs and184.1shall report to the legislature by January 1, 1998. The report184.2must include:184.3(1) the increase in federal energy assistance money184.4leveraged by the state as a result of this program;184.5(2) the effect of the program on low-income customer's184.6ability to pay energy costs;184.7(3) the effect of the program on utility customer bad debt184.8and arrearages;184.9(4) the effect of the program on the costs and numbers of184.10utility disconnections and reconnections and other costs184.11incurred by the utility in association with inability to pay184.12programs;184.13(5) the ability of the utility to recover the costs of the184.14low-income program without a general rate change;184.15(6) how other ratepayers have been affected by this184.16program;184.17(7) recommendations for continuing, eliminating, or184.18expanding the low-income pilot program; and184.19(8) how general revenue funds may be utilized in184.20conjunction with low-income programs.184.21 Sec. 41. Minnesota Statutes 2000, section 216B.162, 184.22 subdivision 7, is amended to read: 184.23 Subd. 7. [COMMISSION DETERMINATION.] (a) Except as 184.24 provided under subdivision 6, competitive rates offered by 184.25 electric utilities under this section must be filed with the 184.26 commission and must be approved, modified, or rejected by the 184.27 commission within 90 days. The utility's filing must include 184.28 statements of fact demonstrating that the proposed rates meet 184.29 the standards of this subdivision. The filing must be served on 184.30 the departmentof public serviceand the office of the attorney 184.31 general at the same time as it is served on the commission. 184.32 (b) In reviewing a specific rate proposal, the commission 184.33 shall determine: 184.34 (1) that the rate meets the terms and conditions in 184.35 subdivision 4, unless the commission determines that waiver of 184.36 one or more terms and conditions would be in the public 185.1 interest; 185.2 (2) that the consumer can obtain its energy requirements 185.3 from an energy supplier not rate-regulated by the commission 185.4 under section 216B.16; 185.5 (3) that the customer is not likely to take service from 185.6 the electric utility seeking to offer the competitive rate if 185.7 the customer was charged the electric utility's standard 185.8 tariffed rate; and 185.9 (4) that after consideration of environmental and 185.10 socioeconomic impacts it is in the best interest of all other 185.11 customers to offer the competitive rate to the customer subject 185.12 to effective competition. 185.13 (c) If the commission approves the competitive rate, it 185.14 becomes effective as agreed to by the electric utility and the 185.15 customer. If the competitive rate is modified by the 185.16 commission, the commission shall issue an order modifying the 185.17 competitive rate subject to the approval of the electric utility 185.18 and the customer. Each party has ten days in which to reject 185.19 the proposed modification. If no party rejects the proposed 185.20 modification, the commissioner's order becomes final. If either 185.21 party rejects the commission's proposed modification, the 185.22 electric utility, on its behalf or on the behalf of the 185.23 customer, may submit to the commission a modified version of the 185.24 commission's proposal. The commission shall accept or reject 185.25 the modified version within 30 days. If the commission rejects 185.26 the competitive rate, it shall issue an order indicating the 185.27 reasons for the rejection. 185.28 Sec. 42. Minnesota Statutes 2000, section 216B.162, 185.29 subdivision 11, is amended to read: 185.30 Subd. 11. [COMMISSION DETERMINATION.] (a) Proposals for 185.31 discretionary rate reductions offered by utilities must be filed 185.32 with the commission, with copies of the filing served upon the 185.33 departmentof public serviceand the office of attorney general 185.34 at the same time it is served upon the commission. The 185.35 commission shall review the proposals according to procedures 185.36 developed under section 216B.05, subdivision 2a. The commission 186.1 shall not approve discretionary rate reductions offered by 186.2 public utilities that do not have an accepted resource plan on 186.3 file with the commission. The commission shall not approve 186.4 discretionary rate reductions unless the utility has made the 186.5 customer aware of all cost-effective opportunities for energy 186.6 efficiency improvements offered by the utility. 186.7 (b) Public utilities that provide service under 186.8 discretionary rate reductions shall not, through increased 186.9 revenue requirements or through prospective rate design changes, 186.10 recover any revenues foregone due to the discretionary rate 186.11 reductions, nor shall the commission grant such recovery. 186.12 Sec. 43. Minnesota Statutes 2000, section 216B.1675, 186.13 subdivision 9, is amended to read: 186.14 Subd. 9. [COMMISSION FINDINGS.] The commission shall issue 186.15 findings concerning the appropriateness of the proposed plan. 186.16 The commission may approve, reject, or modify the plan in a 186.17 manner which meets the requirements of this section. An 186.18 approved or modified plan becomes effective unless the plan is 186.19 withdrawn by the utility within 30 days of a final appealable 186.20 order. If the utility withdraws an approved or modified plan, 186.21 all of the administrative costs related to the plan that are 186.22 charged by the commission or the departmentof public serviceto 186.23 the utility may not be recovered from ratepayers in current or 186.24 subsequent rates. A utility that withdraws an approved or 186.25 modified plan may not file another plan under this section for a 186.26 period of one year following the withdrawal of the plan. 186.27 Sec. 44. Minnesota Statutes 2000, section 216B.241, 186.28 subdivision 1a, is amended to read: 186.29 Subd. 1a. [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 186.30 PUBLIC UTILITY.] (a) For purposes of this subdivision and 186.31 subdivision 2, "public utility" has the meaning given it in 186.32 section 216B.02, subdivision 4. Each public utility shall spend 186.33 and invest for energy conservation improvements under this 186.34 subdivision and subdivision 2 the following amounts: 186.35 (1) for a utility that furnishes gas service, 0.5 percent 186.36 of its gross operating revenues from service provided in the 187.1 state; 187.2 (2) for a utility that furnishes electric service, 1.5 187.3 percent of its gross operating revenues from service provided in 187.4 the state; and 187.5 (3) for a utility that furnishes electric service and that 187.6 operates a nuclear-powered electric generating plant within the 187.7 state, two percent of its gross operating revenues from service 187.8 provided in the state. 187.9 For purposes of this paragraph (a), "gross operating 187.10 revenues" do not include revenues from large electric customer 187.11 facilities exempted by the commissioner of the departmentof187.12public servicepursuant to paragraph (b). 187.13 (b) The owner of a large electric customer facility may 187.14 petition the commissioner of the departmentof public serviceto 187.15 exempt both electric and gas utilities serving the large energy 187.16 customer facility from the investment and expenditure 187.17 requirements of paragraph (a) with respect to retail revenues 187.18 attributable to the facility. At a minimum, the petition must 187.19 be supported by evidence relating to competitive or economic 187.20 pressures on the customer and a showing by the customer of 187.21 reasonable efforts to identify, evaluate, and implement 187.22 cost-effective conservation improvements at the facility. If a 187.23 petition is filed on or before October 1 of any year, the order 187.24 of the commissioner to exempt revenues attributable to the 187.25 facility can be effective no earlier than January 1 of the 187.26 following year. The commissioner shall not grant an exemption 187.27 if the commissioner determines that granting the exemption is 187.28 contrary to the public interest. The commissioner may, after 187.29 investigation, rescind any exemption granted under this 187.30 paragraph upon a determination that cost-effective energy 187.31 conservation improvements are available at the large electric 187.32 customer facility. For the purposes of this paragraph, 187.33 "cost-effective" means that the projected total cost of the 187.34 energy conservation improvement at the large electric customer 187.35 facility is less than the projected present value of the energy 187.36 and demand savings resulting from the energy conservation 188.1 improvement. For the purposes of investigations by the 188.2 commissioner under this paragraph, the owner of any large 188.3 electric customer facility shall, upon request, provide the 188.4 commissioner with updated information comparable to that 188.5 originally supplied in or with the owner's original petition 188.6 under this paragraph. 188.7 (c) The commissioner may require investments or spending 188.8 greater than the amounts required under this subdivision for a 188.9 public utility whose most recent advance forecast required under 188.10 section 216B.2422 or 216C.17 projects a peak demand deficit of 188.11 100 megawatts or greater within five years under mid-range 188.12 forecast assumptions. 188.13 (d) A public utility or owner of a large electric customer 188.14 facility may appeal a decision of the commissioner under 188.15 paragraph (b) or (c) to the commission under subdivision 2. In 188.16 reviewing a decision of the commissioner under paragraph (b) or 188.17 (c), the commission shall rescind the decision if it finds that 188.18 the required investments or spending will: 188.19 (1) not result in cost-effective energy conservation 188.20 improvements; or 188.21 (2) otherwise not be in the public interest. 188.22 (e) Each utility shall determine what portion of the amount 188.23 it sets aside for conservation improvement will be used for 188.24 conservation improvements under subdivision 2 and what portion 188.25 it will contribute to the energy and conservation account 188.26 established in subdivision 2a. A public utility may propose to 188.27 the commissioner to designate that all or a portion of funds 188.28 contributed to the account established in subdivision 2a be used 188.29 for research and development projects. Contributions must be 188.30 remitted to the commissionerof public serviceby February 1 of 188.31 each year. Nothing in this subdivision prohibits a public 188.32 utility from spending or investing for energy conservation 188.33 improvement more than required in this subdivision. 188.34 Sec. 45. Minnesota Statutes 2000, section 216B.241, 188.35 subdivision 1b, is amended to read: 188.36 Subd. 1b. [CONSERVATION IMPROVEMENT BY COOPERATIVE 189.1 ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 189.2 (1) a cooperative electric association that generates and 189.3 transmits electricity to associations that provide electricity 189.4 at retail including a cooperative electric association not 189.5 located in this state that serves associations or others in the 189.6 state; 189.7 (2) a municipality that provides electric service to retail 189.8 customers; and 189.9 (3) a municipality with gross operating revenues in excess 189.10 of $5,000,000 from sales of natural gas to retail customers. 189.11 (b) Each cooperative electric association and municipality 189.12 subject to this subdivision shall spend and invest for energy 189.13 conservation improvements under this subdivision the following 189.14 amounts: 189.15 (1) for a municipality, 0.5 percent of its gross operating 189.16 revenues from the sale of gas and one percent of its gross 189.17 operating revenues from the sale of electricity not purchased 189.18 from a public utility governed by subdivision 1a or a 189.19 cooperative electric association governed by this subdivision, 189.20 excluding gross operating revenues from electric and gas service 189.21 provided in the state to large electric customer facilities; and 189.22 (2) for a cooperative electric association, 1.5 percent of 189.23 its gross operating revenues from service provided in the state, 189.24 excluding gross operating revenues from service provided in the 189.25 state to large electric customer facilities indirectly through a 189.26 distribution cooperative electric association. 189.27 (c) Each municipality and cooperative association subject 189.28 to this subdivision shall identify and implement energy 189.29 conservation improvement spending and investments that are 189.30 appropriate for the municipality or association, except that a 189.31 municipality or association may not spend or invest for energy 189.32 conservation improvements that directly benefit a large electric 189.33 customer facility. Each municipality and cooperative electric 189.34 association subject to this subdivision may spend and invest 189.35 annually up to 15 percent of the total amount required to be 189.36 spent and invested on energy conservation improvements under 190.1 this subdivision on research and development projects that meet 190.2 the definition of energy conservation improvement in subdivision 190.3 1 and that are funded directly by the municipality or 190.4 cooperative electric association. Load management may be used 190.5 to meet the requirements of this subdivision if it reduces the 190.6 demand for or increases the efficiency of electric services. A 190.7 generation and transmission cooperative electric association may 190.8 include as spending and investment required under this 190.9 subdivision conservation improvement spending and investment by 190.10 cooperative electric associations that provide electric service 190.11 at retail to consumers and that are served by the generation and 190.12 transmission association. 190.13 (d) By February 1 of each year, each municipality or 190.14 cooperative shall report to the commissioner its energy 190.15 conservation improvement spending and investments with a brief 190.16 analysis of effectiveness in reducing consumption of electricity 190.17 or gas. The commissioner shall review each report and make 190.18 recommendations, where appropriate, to the municipality or 190.19 association to increase the effectiveness of conservation 190.20 improvement activities. The commissioner shall also review each 190.21 report for whether a portion of the money spent on residential 190.22 conservation improvement programs is devoted to programs that 190.23 directly address the needs of renters and low-income persons 190.24 unless an insufficient number of appropriate programs are 190.25 available. For the purposes of this subdivision and subdivision 190.26 2, "low-income" means an income of less than 185 percent of the 190.27 federal poverty level. 190.28 (e) As part of its spending for conservation improvement, a 190.29 municipality or association may contribute to the energy and 190.30 conservation account. A municipality or association may propose 190.31 to the commissioner to designate that all or a portion of funds 190.32 contributed to the account be used for research and development 190.33 projects. Any amount contributed must be remitted to the 190.34 commissionerof public serviceby February 1 of each year. 190.35 Sec. 46. Minnesota Statutes 2000, section 216B.241, 190.36 subdivision 2b, is amended to read: 191.1 Subd. 2b. [RECOVERY OF EXPENSES.] The commission shall 191.2 allow a utility to recover expenses resulting from a 191.3 conservation improvement program required by the department and 191.4 contributions to the energy and conservation account, unless the 191.5 recovery would be inconsistent with a financial incentive 191.6 proposal approved by the commission. In addition, a utility may 191.7 file annually, or the public utilities commission may require 191.8 the utility to file, and the commission may approve, rate 191.9 schedules containing provisions for the automatic adjustment of 191.10 charges for utility service in direct relation to changes in the 191.11 expenses of the utility for real and personal property taxes, 191.12 fees, and permits, the amounts of which the utility cannot 191.13 control. A public utility is eligible to file for adjustment 191.14 for real and personal property taxes, fees, and permits under 191.15 this subdivision only if, in the year previous to the year in 191.16 which it files for adjustment, it has spent or invested at least 191.17 1.75 percent of its gross revenues from provision of electric 191.18 service, excluding gross operating revenues from electric 191.19 service provided in the state to large electric customer 191.20 facilities for which the commissionerof public servicehas 191.21 issued an exemption under subdivision 1a, paragraph (b), and 0.6 191.22 percent of its gross revenues from provision of gas service, 191.23 excluding gross operating revenues from gas services provided in 191.24 the state to large electric customer facilities for which the 191.25 commissionerof public servicehas issued an exemption under 191.26 subdivision 1a, paragraph (b), for that year for energy 191.27 conservation improvements under this section. 191.28 Sec. 47. Minnesota Statutes 2000, section 216C.01, 191.29 subdivision 1, is amended to read: 191.30 Subdivision 1. [APPLICABILITY.] The definitions in this 191.31 section apply tosections 216C.02, 216C.05, 216C.07 to 216C.19,191.32216C.20 to 216C.35, and 216C.373 to 216C.381this chapter. 191.33 Sec. 48. Minnesota Statutes 2000, section 216C.01, 191.34 subdivision 2, is amended to read: 191.35 Subd. 2. [COMMISSIONER.] "Commissioner" means the 191.36 commissioner ofthe department of public servicecommerce. 192.1 Sec. 49. Minnesota Statutes 2000, section 216C.01, 192.2 subdivision 3, is amended to read: 192.3 Subd. 3. [DEPARTMENT.] "Department" means the department 192.4 ofpublic servicecommerce. 192.5 Sec. 50. Minnesota Statutes 2000, section 216C.051, 192.6 subdivision 6, is amended to read: 192.7 Subd. 6. [ASSESSMENT; APPROPRIATION.] On request by the 192.8 cochairs of the legislative task force and after approval of the 192.9 legislative coordinating commission, the commissioner ofthe192.10department of public servicecommerce shall assess from electric 192.11 utilities, in addition to assessments made under section 192.12 216B.62, the amount requested for the operation of the task 192.13 force not to exceed $700,000. This authority to assess 192.14 continues until the commissioner has assessed a total of 192.15 $700,000. The amount assessed under this section is 192.16 appropriated to the director of the legislative coordinating 192.17 commission for those purposes, and is available until expended. 192.18 Sec. 51. Minnesota Statutes 2000, section 216C.37, 192.19 subdivision 1, is amended to read: 192.20 Subdivision 1. [DEFINITIONS.] In this section: 192.21 (a) "Commissioner" means the commissioner ofpublic service192.22 commerce. 192.23 (b) "Energy conservation investments" means all capital 192.24 expenditures that are associated with conservation measures 192.25 identified in an energy project study, and that have a ten-year 192.26 or less payback period. 192.27 (c) "Municipality" means any county, statutory or home rule 192.28 charter city, town, school district, or any combination of those 192.29 units operating under an agreement to jointly undertake projects 192.30 authorized in this section. 192.31 (d) "Energy project study" means a study of one or more 192.32 energy-related capital improvement projects analyzed in 192.33 sufficient detail to support a financing application. At a 192.34 minimum, it must include one year of energy consumption and cost 192.35 data, a description of existing conditions, a description of 192.36 proposed conditions, a detailed description of the costs of the 193.1 project, and calculations sufficient to document the proposed 193.2 energy savings. 193.3 Sec. 52. Minnesota Statutes 2000, section 216C.40, 193.4 subdivision 4, is amended to read: 193.5 Subd. 4. [CONDITION PRECEDENT.] The duties of the 193.6 department under this section are conditional on the 193.7 commissionerof public servicefinding that there will be at 193.8 least one public utility that will be subject to the assessment 193.9 created by Laws 1993, chapter 254, section 7. 193.10 Sec. 53. Minnesota Statutes 2000, section 237.02, is 193.11 amended to read: 193.12 237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 193.13 DEFINITIONS.] 193.14 The department ofpublic servicecommerce and the public 193.15 utilities commission, now existing under the laws of this state,193.16 are hereby vested with the same jurisdiction and supervisory 193.17 power over telephone and telecommunications companies doing 193.18 business in this state asit now hasthe commission's 193.19 predecessor, the railroad and warehouse commission, had over 193.20 railroad and express companies. The definitions set forth 193.21 insectionsections 216A.02shall applyand 216B.02 also apply 193.22 to this chapter. 193.23 Sec. 54. Minnesota Statutes 2000, section 237.075, 193.24 subdivision 2, is amended to read: 193.25 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 193.26 DETERMINATION DEFINED.] (a) Whenever there is filed with the 193.27 commission as provided in subdivision 1 a schedule modifying or 193.28 resulting in a change in any rate then in force, the commission 193.29 may suspend the operation of the schedule by filing with the 193.30 schedule of rates and delivering to the affected telephone 193.31 company a statement in writing of its reasons for the suspension 193.32 at any time before the rates become effective. The suspension 193.33 shall not be for a longer period than ten months beyond the 193.34 initial filing date except as provided in paragraph (b). During 193.35 the suspension the commission shall determine whether all 193.36 questions of the reasonableness of the rates requested raised by 194.1 persons deemed interested or by theadministrative division of194.2thedepartmentof public servicecan be resolved to the 194.3 satisfaction of the commission. If the commission finds that 194.4 all significant issues raised have not been resolved to its 194.5 satisfaction, or upon petition by ten percent of the affected 194.6 customers or 250 affected customers, whichever is less, it shall 194.7 refer the matter to the office of administrative hearings with 194.8 instructions for a public hearing as a contested case pursuant 194.9 to chapter 14, except as otherwise provided in this section. 194.10 The commission may order that the issues presented by the 194.11 proposed rate changes be bifurcated into two separate hearings 194.12 as follows: (1) determination of the telephone company's 194.13 revenue requirements and (2) determination of the rate design. 194.14 Upon issuance of both administrative law judge reports, the 194.15 issues shall again be joined for consideration and final 194.16 determination by the commission. All prehearing discovery 194.17 activities of state agency intervenors shall be consolidated and 194.18 conducted by the department ofpublic servicecommerce. If the 194.19 commission does not make a final determination concerning a 194.20 schedule of rates within ten months after the initial filing 194.21 date, the schedule shall be deemed to have been approved by the 194.22 commission; except if a settlement has been submitted to and 194.23 rejected by the commission, the schedule is deemed to have been 194.24 approved 12 months after the initial filing. 194.25 (b) If the commission finds that it has insufficient time 194.26 during the suspension period to make a final determination of a 194.27 case involving changes in general rates because of the need to 194.28 make final determinations of other previously filed cases 194.29 involving changes in general rates under this section or section 194.30 216B.16, the commission may extend the suspension period to the 194.31 extent necessary to allow itself 20 working days to make the 194.32 final determination after it has made final determinations in 194.33 the previously filed cases. An extension of the suspension 194.34 period under this paragraph does not alter the setting of 194.35 interim rates under subdivision 3. 194.36 (c) For the purposes of this section, "final determination" 195.1 means the initial decision of the commission and not any order 195.2 which may be entered by the commission in response to a petition 195.3 for rehearing or other further relief. The commission may 195.4 further suspend rates until it determines all those petitions. 195.5 Sec. 55. Minnesota Statutes 2000, section 237.075, 195.6 subdivision 9, is amended to read: 195.7 Subd. 9. [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 195.8 INDEPENDENT.] For the purposes of this section, "telephone 195.9 company" shall not include a cooperative telephone association 195.10 organized under the provisions of chapter 308A, an independent 195.11 telephone company, or a municipal, unless the cooperative 195.12 telephone association, independent telephone company, or 195.13 municipal makes the election provided in this subdivision. 195.14 A cooperative telephone association may elect to become 195.15 subject to rate regulation by the commission pursuant to this 195.16 section. The election shall be (a) approved by the board of 195.17 directors of the association in accordance with the procedures 195.18 for amending the articles of incorporation contained in section 195.19 308A.135, excluding the filing requirements; or (b) approved by 195.20 a majority of members or stockholders voting by mail ballot 195.21 initiated by petition of no fewer than five percent of the 195.22 members or stockholders of the association. The ballot to be 195.23 used for the election shall be approved by the board of 195.24 directors and the departmentof public service. The department 195.25 shall mail the ballots to the association's members who shall 195.26 return the ballots to the department. The department will keep 195.27 the ballots sealed until a date agreed upon by the department 195.28 and the board of directors. On this date, representatives of 195.29 the department and the association shall count the ballots. If 195.30 a majority of the association's members who vote elect to become 195.31 subject to rate regulation by the commission, the election shall 195.32 be effective 30 days after the date the ballots are counted. 195.33 For purposes of this section, the term "member or stockholder" 195.34 shall mean either the member or stockholder of record or the 195.35 spouse of the member or stockholder unless the association has 195.36 been notified otherwise in writing. 196.1 A municipal may elect to become subject to rate regulation 196.2 by the commission pursuant to this section. The election shall 196.3 be (a) approved by resolution of the governing body of the 196.4 municipality; or (b) approved by a majority of the customers of 196.5 the municipal voting by mail ballot initiated by petition of no 196.6 fewer than 20 percent of the customers of the municipal. The 196.7 ballot to be used for the election shall be approved by the 196.8 governing body of the municipality and the departmentof public196.9service. The department shall mail the ballots to the 196.10 municipal's customers who shall return the ballots to the 196.11 department. The department will keep the ballots sealed until a 196.12 date agreed upon by the department and the governing body of the 196.13 municipality. On this date, representatives of the department 196.14 and the municipal shall count the ballots. If a majority of the 196.15 customers of the municipal who vote elect to become subject to 196.16 rate regulation by the commission, the election shall be 196.17 effective 30 days after the date the ballots are counted. For 196.18 purposes of this section, the term "customer" shall mean either 196.19 the person in whose name the telephone service is registered or 196.20 the spouse of the person unless the municipal utility has been 196.21 notified otherwise in writing. 196.22 An independent telephone company may elect to become 196.23 subject to rate regulation by the commission pursuant to this 196.24 section. The election shall be (a) approved by the board of 196.25 directors of the company in accordance with the procedures for 196.26 amending the articles of incorporation contained in sections 196.27 302A.133 to 302A.139, excluding the filing requirements; or (b) 196.28 approved by a majority of subscribers voting by mail ballot 196.29 initiated by petition of no fewer than five percent of the 196.30 subscribers of the company. The ballot to be used for the 196.31 election shall be approved by the board of directors and the 196.32 departmentof public service. The department shall mail the 196.33 ballots to the company's subscribers who shall return the 196.34 ballots to the department. The department will keep the ballots 196.35 sealed until a date agreed upon by the department and the board 196.36 of directors. On this date, representatives of the department 197.1 and the company shall count the ballots. If a majority of the 197.2 company's subscribers who vote elect to become subject to rate 197.3 regulation by the commission, the election shall be effective 30 197.4 days after the date the ballots are counted. For purposes of 197.5 this section the term "subscriber" shall mean either the person 197.6 in whose name the telephone service is registered or the spouse 197.7 of the person unless the independent telephone company has been 197.8 notified otherwise in writing. 197.9 Sec. 56. Minnesota Statutes 2000, section 237.082, is 197.10 amended to read: 197.11 237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 197.12 SPEED AND SERVICE.] 197.13 When setting rates, adopting rules, or issuing orders 197.14 related to telecommunication matters that affect deployment of 197.15 the infrastructure, the commission may apply the goals of: 197.16 (1) achieving economically efficient investment in: 197.17 (i) higher speed telecommunication services; and 197.18 (ii) greater capacity for voice, video, and data 197.19 transmission; and 197.20 (2) just and reasonable rates. 197.21 The departmentof public servicemay apply the same goals 197.22 in its regulation of and recommendations regarding 197.23 telecommunication services. 197.24 Sec. 57. Minnesota Statutes 2000, section 237.21, is 197.25 amended to read: 197.26 237.21 [VALUATION OF TELEPHONE PROPERTY.] 197.27 In determining the value of any telephone property for rate 197.28 making purposes, no valuation shall be allowed upon the value of 197.29 any franchise granted by the state or any municipality where no 197.30 payment was or is being made to the state or municipality on 197.31 account thereof. The requirement as to reasonableness of rates 197.32 shall apply to each exchange unit as well as to telephone plants 197.33 as a whole. Provided, that in the case of a company operating a 197.34 telephone system consisting of more than one exchange in the 197.35 state, reasonableness of rates, as measured by earnings, shall 197.36 be determined by a reasonable return from the total operations 198.1 of the system within the state rather than by the return from 198.2 individual exchanges or services. No telephone rates or charges 198.3 shall be allowed or approved by the commission under any 198.4 circumstances, which are inadequate and which are intended to or 198.5 naturally tend to destroy competition or produce a monopoly in 198.6 telephone service in the locality affected. 198.7Laws 1953, chapter 25, shall have no effect on proceedings198.8pending before the courts or the department of public service at198.9the time of its enactment.198.10 Sec. 58. Minnesota Statutes 2000, section 237.30, is 198.11 amended to read: 198.12 237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 198.13 The sum of $25,000 is hereby appropriated out of any moneys 198.14 in the state treasury not otherwise appropriated, to establish 198.15 and provide a revolving fund to be known as the Minnesota 198.16 Telephone Investigation Fund for the use of the department of 198.17public servicecommerce and of the attorney general in 198.18 investigations, valuations, and revaluations under section 198.19 237.295. All sums paid by the telephone companies to reimburse 198.20 the departmentof public servicefor its expenses pursuant to 198.21 section 237.295 shall be credited to the revolving fund and 198.22 shall be deposited in a separate bank account and not commingled 198.23 with any other state funds or moneys, but any balance in excess 198.24 of $25,000 in the revolving fund at the end of each fiscal year 198.25 shall be paid into the state treasury and credited to the 198.26 general fund. The sum of $25,000 herein appropriated and all 198.27 subsequent credits to said revolving fund shall be paid upon the 198.28 warrant of the commissioner of finance upon application of the 198.29 department or of the attorney general to an aggregate amount of 198.30 not more than one-half of such sums to each of them, which 198.31 proportion shall be constantly maintained in all credits and 198.32 withdrawals from the revolving fund. 198.33 Sec. 59. Minnesota Statutes 2000, section 237.462, 198.34 subdivision 6, is amended to read: 198.35 Subd. 6. [EXPEDITED PROCEEDING.] (a) The commission may 198.36 order an expedited proceeding under section 237.61 and this 199.1 subdivision, in lieu of a contested case under chapter 14, to 199.2 develop an evidentiary record in any proceeding that involves 199.3 contested issues of material fact either upon request of a party 199.4 or upon the commission's own motion if the complaint alleges a 199.5 violation described in subdivision 1, clauses (1) to (4). The 199.6 commission may order an expedited proceeding under this 199.7 subdivision if the commission finds an expedited proceeding is 199.8 in the public interest, regardless of whether all parties agree 199.9 to the expedited proceeding. In determining whether to grant an 199.10 expedited proceeding, the commission may consider any evidence 199.11 of impairment of the provision of telecommunications service to 199.12 subscribers in the state or impairment of the provision of any 199.13 service or network element subject to the jurisdiction of the 199.14 commission. 199.15 (b) Any request for an expedited proceeding under this 199.16 subdivision must be noted in the title of the first filing by a 199.17 party. The filing shall also state the specific circumstances 199.18 that the party believes warrant an expedited proceeding under 199.19 this subdivision. 199.20 (c) A complaint requesting an expedited proceeding, unless 199.21 filed by the departmentof public serviceor the attorney 199.22 general, must set forth the actions and the dates of the actions 199.23 taken by the party filing the complaint to attempt to resolve 199.24 the alleged violations with the party against whom the complaint 199.25 is filed, including any requests that the party against whom the 199.26 complaint is filed correct the conduct giving rise to the 199.27 violations alleged in the complaint. If no such actions were 199.28 taken by the complainant, the complaint shall set forth the 199.29 reasons why no such actions were taken. The commission may 199.30 order an expedited proceeding even if the filing complaint fails 199.31 to meet this requirement if the commission determines that it 199.32 would be in the public interest to go forward with the expedited 199.33 proceeding without information in the complaint on attempts to 199.34 resolve the dispute. 199.35 (d) The complaining party shall serve the complaint along 199.36 with any written discovery requests by hand delivery and 200.1 facsimile on the party against whom the complaint is filed, the 200.2 departmentof public service, and the office of the attorney 200.3 general on the same day the complaint is filed with the 200.4 commission. 200.5 (e) The party responding to a complaint that includes a 200.6 request for an expedited proceeding under this subdivision shall 200.7 file an answer within 15 days after receiving the complaint. 200.8 The responding party shall state in the answer the party's 200.9 position on the request for an expedited proceeding. The 200.10 responding party shall serve with the answer any objections to 200.11 any written discovery requests as well as any written discovery 200.12 requests the responding party wishes to serve on the complaining 200.13 party. Except for stating any objections, the responding party 200.14 is not required to answer any written discovery requests under 200.15 this subdivision until a time established at a prehearing 200.16 conference. The responding party shall serve a copy of the 200.17 answer and any discovery requests and objections on the 200.18 complaining party, the departmentof public service, and office 200.19 of the attorney general by hand delivery and facsimile on the 200.20 same day as the answer is filed with the commission. 200.21 (f) Within 15 days of receiving the answer to a complaint 200.22 in a proceeding in which a party has requested an expedited 200.23 hearing, the commission shall determine whether the filing 200.24 warrants an expedited proceeding. If the commission decides to 200.25 grant a request by a party or if the commission orders an 200.26 expedited proceeding on its own motion, the commission shall 200.27 conduct within seven days of the decision a prehearing 200.28 conference to schedule the evidentiary hearing. During the 200.29 prehearing conference, the commission shall establish a 200.30 discovery schedule that requires all discovery to be completed 200.31 no later than three days before the start of the hearing. An 200.32 evidentiary hearing under this subdivision must commence no 200.33 later than 45 days after the commission's decision to order an 200.34 expedited proceeding. A quorum of the commission shall preside 200.35 at any evidentiary hearing under this subdivision unless all the 200.36 parties to the proceeding agree otherwise. 201.1 (g) All pleadings submitted under this subdivision must be 201.2 verified and all oral statements of fact made in a hearing or 201.3 deposition under this subdivision must be made under oath or 201.4 affirmation. 201.5 (h) The commission shall issue a written decision and final 201.6 order on the complaint within 15 days after the close of the 201.7 evidentiary hearing under this subdivision. On the day of 201.8 issuance, the commission shall notify the parties by facsimile 201.9 that a final order has been issued and shall provide each party 201.10 with a copy of the final order. 201.11 (i) The commission may extend any time periods under this 201.12 subdivision if all parties to the proceeding agree to the 201.13 extension or if the commission finds the extension is necessary 201.14 to ensure a just resolution of the complaint. 201.15 (j) Except as otherwise provided in this subdivision, an 201.16 expedited proceeding under this subdivision shall be governed by 201.17 the following procedural rules: 201.18 (1) the parties shall have the discovery rights provided in 201.19 Minnesota Rules, parts 1400.6700 to 1400.7000; 201.20 (2) the parties shall have the right to cross-examine 201.21 witnesses as provided in section 14.60, subdivision 3; 201.22 (3) the admissibility of evidence and development of record 201.23 for decision shall be governed by section 14.60 and Minnesota 201.24 Rules, part 1400.7300; and 201.25 (4) the commission may apply other procedures or standards 201.26 included in the rules of the office of administrative hearings, 201.27 as necessary to ensure the fair and expeditious resolution of 201.28 disputes under this section. 201.29 Sec. 60. Minnesota Statutes 2000, section 237.51, 201.30 subdivision 1, is amended to read: 201.31 Subdivision 1. [CREATION.] Thedepartment of public201.32servicecommissioner of commerce shall administer through 201.33 interagency agreement with thedepartmentcommissioner of human 201.34 services a program to distribute communication devices to 201.35 eligible communication-impaired persons and contract with a 201.36 local consumer group that serves communication-impaired persons 202.1 to create and maintain a telecommunication relay service. For 202.2 purposes of sections 237.51 to 237.56, the department ofpublic202.3servicecommerce and any organization with which it contracts 202.4 pursuant to this section or section 237.54, subdivision 2, are 202.5 not telephone companies or telecommunications carriers as 202.6 defined in section 237.01. 202.7 Sec. 61. Minnesota Statutes 2000, section 237.51, 202.8 subdivision 5, is amended to read: 202.9 Subd. 5. [DEPARTMENT OF PUBLIC SERVICECOMMISSIONER OF 202.10 COMMERCE DUTIES.] In addition to any duties specified elsewhere 202.11 in sections 237.51 to 237.56, thedepartment of public service202.12 commissioner of commerce shall: 202.13 (1) prepare the reports required by section 237.55; 202.14 (2) administer the fund created in section 237.52; and 202.15 (3) adopt rules under chapter 14 to implement the 202.16 provisions of sections 237.50 to 237.56. 202.17 Sec. 62. Minnesota Statutes 2000, section 237.51, 202.18 subdivision 5a, is amended to read: 202.19 Subd. 5a. [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 202.20 addition to any duties specified elsewhere in sections 237.51 to 202.21 237.56, thedepartmentcommissioner of human services shall: 202.22 (1) define economic hardship, special needs, and household 202.23 criteria so as to determine the priority of eligible applicants 202.24 for initial distribution of devices and to determine 202.25 circumstances necessitating provision of more than one 202.26 communication device per household; 202.27 (2) establish a method to verify eligibility requirements; 202.28 (3) establish specifications for communication devices to 202.29 be purchased under section 237.53, subdivision 3; and 202.30 (4) inform the public and specifically the community of 202.31 communication-impaired persons of the program. 202.32 (b) Thedepartmentcommissioner may establish an advisory 202.33 board to advise the department in carrying out the duties 202.34 specified in this section and to advise thedepartment of public202.35servicecommissioner of commerce in carrying outitsduties 202.36 under section 237.54. If so established, the advisory board 203.1 must include, at a minimum, the following communication-impaired 203.2 persons: 203.3 (1) at least one member who is deaf; 203.4 (2) at least one member who is speech impaired; 203.5 (3) at least one member who is mobility impaired; and 203.6 (4) at least one member who is hard-of-hearing. 203.7 The membership terms, compensation, and removal of members 203.8 and the filling of membership vacancies are governed by section 203.9 15.059. Advisory board meetings shall be held at the discretion 203.10 of the commissioner. 203.11 Sec. 63. Minnesota Statutes 2000, section 237.52, 203.12 subdivision 2, is amended to read: 203.13 Subd. 2. [ASSESSMENT.] Thedepartment of public203.14servicecommissioner of commerce shall annually recommend to the 203.15 commission an adequate and appropriate surcharge and budget to 203.16 implement sections 237.50 to 237.56. The public utilities 203.17 commission shall review the budget for reasonableness and may 203.18 modify the budget to the extent it is unreasonable. The 203.19 commission shall annually determine the funding mechanism to be 203.20 used within 60 days of receipt of the recommendation of the 203.21 department and shall order the imposition of surcharges 203.22 effective on the earliest practicable date. The commission 203.23 shall establish a monthly charge no greater than 20 cents for 203.24 each customer access line, including trunk equivalents as 203.25 designated by the commission pursuant to section 403.11, 203.26 subdivision 1. 203.27 Sec. 64. Minnesota Statutes 2000, section 237.52, 203.28 subdivision 4, is amended to read: 203.29 Subd. 4. [APPROPRIATION.] Money in the fund is 203.30 appropriated to thedepartment of public servicecommissioner of 203.31 commerce to implement sections 237.51 to 237.56. 203.32 Sec. 65. Minnesota Statutes 2000, section 237.52, 203.33 subdivision 5, is amended to read: 203.34 Subd. 5. [EXPENDITURES.] Money in the fund may only be 203.35 used for: 203.36 (1) expenses of the department ofpublic servicecommerce, 204.1 including personnel cost, public relations, advisory board 204.2 members' expenses, preparation of reports, and other reasonable 204.3 expenses not to exceed ten percent of total program 204.4 expenditures; 204.5 (2) reimbursing the commissioner of human services for 204.6 purchases made or services provided pursuant to section 237.53; 204.7 (3) reimbursing telephone companies for purchases made or 204.8 services provided under section 237.53, subdivision 5; and 204.9 (4) contracting for establishment and operation of the 204.10 telecommunication relay service required by section 237.54. 204.11 All costs directly associated with the establishment of the 204.12 program, the purchase and distribution of communication devices, 204.13 and the establishment and operation of the telecommunication 204.14 relay service are either reimbursable or directly payable from 204.15 the fund after authorization by thedepartment of public service204.16 commissioner of commerce. Thedepartment of public204.17servicecommissioner of commerce shall contract with the message 204.18 relay service operator to indemnify the local exchange carriers 204.19 of the relay service for any fines imposed by the Federal 204.20 Communications Commission related to the failure of the relay 204.21 service to comply with federal service standards. 204.22 Notwithstanding section 16A.41, thedepartment of public service204.23 commissioner may advance money to the contractor of the 204.24 telecommunication relay service if the contractor establishes to 204.25 thedepartment'scommissioner's satisfaction that the advance 204.26 payment is necessary for the operation of the service. The 204.27 advance payment may be used only for working capital reserve for 204.28 the operation of the service. The advance payment must be 204.29 offset or repaid by the end of the contract fiscal year together 204.30 with interest accrued from the date of payment. 204.31 Sec. 66. Minnesota Statutes 2000, section 237.54, 204.32 subdivision 2, is amended to read: 204.33 Subd. 2. [OPERATION.] Thedepartment of public204.34servicecommissioner of commerce shall contract with a local 204.35 consumer organization that serves communication-impaired persons 204.36 for operation and maintenance of the telecommunication relay 205.1 system. Thedepartmentcommissioner may contract with other 205.2 than a local consumer organization if no local consumer 205.3 organization is available to enter into or perform a reasonable 205.4 contract or the only available consumer organization fails to 205.5 comply with terms of a contract. The operator of the system 205.6 shall keep all messages confidential, shall train personnel in 205.7 the unique needs of communication-impaired people, and shall 205.8 inform communication-impaired persons and the public of the 205.9 availability and use of the system. The operator shall not 205.10 relay a message unless it originates or terminates through a 205.11 communication device for the deaf or a Brailling device for use 205.12 with a telephone. 205.13 Sec. 67. Minnesota Statutes 2000, section 237.55, is 205.14 amended to read: 205.15 237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 205.16 Thedepartment of public servicecommissioner of commerce 205.17 must prepare a report for presentation to the commission by 205.18 January 31 of each year. Each report must review the 205.19 accessibility of the telephone system to communication-impaired 205.20 persons, review the ability of non-communication-impaired 205.21 persons to communicate with communication-impaired persons via 205.22 the telephone system, describe services provided, account for 205.23 money received and disbursed annually for each aspect of the 205.24 program to date, and include predicted future operation. 205.25 Sec. 68. Minnesota Statutes 2000, section 237.59, 205.26 subdivision 2, is amended to read: 205.27 Subd. 2. [PETITION.] (a) A telephone company, or the 205.28 commission on its own motion, may petition to have a service of 205.29 that telephone company classified as subject to effective 205.30 competition or emerging competition. The petition must be 205.31 served on the commission, the departmentof public service, the 205.32 office of the attorney general, and any other person designated 205.33 by the commission. The petition must contain at least: 205.34 (1) a list of the known alternative providers of the 205.35 service available to the company's customers; and 205.36 (2) a description of affiliate relationships with any other 206.1 provider of the service in the company's market. 206.2 (b) At the time the company first offers a service, it 206.3 shall also file a petition with the commission for a 206.4 determination as to how the service should be classified. In 206.5 the event that no interested party or the commission objects to 206.6 the company's proposed classification within 20 days of the 206.7 filing of the petition, the company's proposed classification of 206.8 the service is deemed approved. If an objection is filed, the 206.9 commission shall determine the appropriate classification after 206.10 a hearing conducted pursuant to section 237.61. In either 206.11 event, the company may offer the new service to its customers 206.12 ten days after the company files the price list and incremental 206.13 cost study as provided in section 237.60, subdivision 2, 206.14 paragraph (f). 206.15 (c) A new service may be classified as subject to effective 206.16 competition or emerging competition pursuant to the criteria set 206.17 forth in subdivision 5. A new service must be regulated under 206.18 the emerging competition provisions if it is not integrally 206.19 related to the provision of adequate local service or access to 206.20 the telephone network or to the privacy, health, or safety of 206.21 the company's customers, whether or not it meets the criteria 206.22 set forth in subdivision 5. 206.23 Sec. 69. Minnesota Statutes 2000, section 237.768, is 206.24 amended to read: 206.25 237.768 [PERIODIC FINANCIAL REPORT.] 206.26 In addition to the reports required under section 237.766, 206.27 an alternative regulation plan may require a telephone company 206.28 to file with the department an annual report of financial 206.29 matters for the previous calendar year on or before May 1 of 206.30 each year on report forms furnished by the departmentof public206.31servicein the same manner as is required of other telephone 206.32 companies on August 1, 1995. In addition, any company subject 206.33 to a plan shall file with the commission and department a copy 206.34 of any filings it has made to the Federal Communications 206.35 Commission regarding the provisions of video programming 206.36 provided through a video dial tone facility in Minnesota. An 207.1 alternative regulation plan may require a telephone company to 207.2 maintain its accounts in accordance with the system of accounts 207.3 prescribed for the company by the commission under section 207.4 237.10. 207.5 Sec. 70. Minnesota Statutes 2000, section 239.01, is 207.6 amended to read: 207.7 239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 207.8 The weights and measures division, referred to in this 207.9 chapter as the division, is created under the jurisdiction of 207.10 the department ofpublic servicecommerce. The division has 207.11 supervision and control over all weights, weighing devices, and 207.12 measures in the state. 207.13 Sec. 71. Minnesota Statutes 2000, section 239.10, is 207.14 amended to read: 207.15 239.10 [ANNUAL INSPECTION.] 207.16 Subdivision 1. [LIGHT CAPACITY SCALES; RETAIL 207.17 ESTABLISHMENTS.] The director shall inspect light capacity 207.18 scales in retail establishments such as grocery stores, other 207.19 retail food establishments, or hardware stores, not more often 207.20 than 36 months except when the owner requests an inspection, 207.21 when the scale is inspected as part of an investigation, or when 207.22 the scale has been repaired. 207.23 Subd. 2. [PACKAGED FOOD COMMODITIES.] The director shall 207.24 inspect packaged food commodities in grocery stores and other 207.25 retail food establishments not more often than 36 months except 207.26 when the owner requests an inspection or when packages are 207.27 inspected as part of an investigation. 207.28 Subd. 3. [OTHER WEIGHTS AND MEASURES.] The director shall 207.29 inspect all weights and measures, except those specified in 207.30 subdivisions 1 and 2, annually, or as often as deemed possible 207.31 within budget and staff limitations. 207.32 Sec. 72. Minnesota Statutes 2000, section 325E.11, is 207.33 amended to read: 207.34 325E.11 [COLLECTION FACILITIES; NOTICE.] 207.35 (a) Any person selling at retail or offering motor oil or 207.36 motor oil filters for retail sale in this state shall: 208.1 (1) post a notice indicating the nearest location where 208.2 used motor oil and used motor oil filters may be returned at no 208.3 cost for recycling or reuse, post a toll-free telephone number 208.4 that may be called by the public to determine a convenient 208.5 location, or post a listing of locations where used motor oil 208.6 and used motor oil filters may be returned at no cost for 208.7 recycling or reuse; or 208.8 (2) if the person is subject to section 325E.112, 208.9 subdivision 1, paragraph (b), post a notice informing customers 208.10 purchasing motor oil or motor oil filters of the location of the 208.11 used motor oil and used motor oil filter collection site 208.12 established by the retailer in accordance with section 325E.112, 208.13 subdivision 1, paragraph (b), where used motor oil and used 208.14 motor oil filters may be returned at no cost. 208.15 (b) A notice under paragraph (a) shall be posted on or 208.16 adjacent to the motor oil and motor oil filter displays, be at 208.17 least 8-1/2 inches by 11 inches in size, contain the universal 208.18 recycling symbol with the following language: 208.19 (1) "It is illegal to put used oil and used motor oil 208.20 filters in the garbage."; 208.21 (2) "Recycle your used oil and used motor oil filters."; 208.22 and 208.23 (3)(i) "There is a free collection site here for your used 208.24 oil and used motor oil filters."; 208.25 (ii) "There is a free collection site for used oil and used 208.26 motor oil filters located at (name of business and street 208.27 address)."; 208.28 (iii) "For the location of a free collection site for used 208.29 oil and used motor oil filters call (toll-free phone number)."; 208.30 or 208.31 (iv) "Here is a list of free collection sites for used oil 208.32 and used motor oil filters." 208.33 (c) The division of weights and measuresunderin the 208.34 department ofpublic servicecommerce shall enforce compliance 208.35 with this section as provided in section 239.54. The pollution 208.36 control agency shall enforce compliance with this section under 209.1 sections 115.071 and 116.072 in coordination with the division 209.2 of weights and measures. 209.3 Sec. 73. Minnesota Statutes 2000, section 325E.115, 209.4 subdivision 2, is amended to read: 209.5 Subd. 2. [COMPLIANCE; MANAGEMENT.] The division of weights 209.6 and measuresunderin the department ofpublic servicecommerce 209.7 shall enforce compliance of subdivision 1 as provided in section 209.8 239.54. The commissioner of the pollution control agency shall 209.9 inform persons governed by subdivision 1 of requirements for 209.10 managing lead acid batteries. 209.11 Sec. 74. Minnesota Statutes 2000, section 326.243, is 209.12 amended to read: 209.13 326.243 [SAFETY STANDARDS.] 209.14 All electrical wiring, apparatus and equipment for electric 209.15 light, heat and power, alarm and communication systems shall 209.16 comply with the rules of the department ofpublic service, the209.17commissioner ofcommerce,or the department of labor and 209.18 industry, as applicable, and be installed in conformity with 209.19 accepted standards of construction for safety to life and 209.20 property. For the purposes of this chapter, the rules and 209.21 safety standards stated at the time the work is done in the then 209.22 most recently published edition of the National Electrical Code 209.23 as adopted by the National Fire Protection Association, Inc. and 209.24 approved by the American National Standards Institute, and the 209.25 National Electrical Safety Code as published by the Institute of 209.26 Electrical and Electronics Engineers, Inc. and approved by the 209.27 American National Standards Institute, shall be prima facie 209.28 evidence of accepted standards of construction for safety to 209.29 life and property; provided further, that in the event a 209.30 Minnesota Building Code is formulated pursuant to section 209.31 16B.61, containing approved methods of electrical construction 209.32 for safety to life and property, compliance with said methods of 209.33 electrical construction of said Minnesota Building Code shall 209.34 also constitute compliance with this section, and provided 209.35 further, that nothing herein contained shall prohibit any 209.36 political subdivision from making and enforcing more stringent 210.1 requirements than set forth herein and such requirements shall 210.2 be complied with by all licensed electricians working within the 210.3 jurisdiction of such political subdivisions. 210.4 Sec. 75. Minnesota Statutes 2000, section 484.50, is 210.5 amended to read: 210.6 484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 210.7 A party wishing to have an appeal from an order of the 210.8department of public servicepublic utilities commission, an 210.9 election contest, a lien foreclosure, or a civil cause or 210.10 proceeding of a kind commenced or appealed by a party in the 210.11 court, tried in the city of Virginia shall, in the summons, 210.12 notice of appeal in a matter, or other jurisdictional instrument 210.13 issued, in addition to the usual provisions, print, stamp, or 210.14 write thereon the words, "to be tried at the city of Virginia," 210.15 and a party wishing a matter commenced or appealed by a party in 210.16 the court tried at the city of Hibbing shall, in the summons, 210.17 notice of appeal in a matter, or other jurisdictional instrument 210.18 issued, in addition to the usual provisions, print, stamp, or 210.19 write thereon the words, "to be tried at the city of Hibbing," 210.20 and in a case where a summons, notice of appeal in a matter, or 210.21 other jurisdictional instrument contains a specification, the 210.22 case shall be tried at the city of Virginia, or the city of 210.23 Hibbing, as the case may be, unless the defendant shall have the 210.24 place of trial fixed in the manner specified in this section. 210.25 If the place of trial designated is not the proper place of 210.26 trial, as specified in sections 484.44 to 484.52, the cause 210.27 shall nevertheless be tried in a place, unless the defendant, in 210.28 an answer in addition to the other allegations of defense, shall 210.29 plead the location of the defendant's residence, and demand that 210.30 the action be tried at the place of holding the court nearest 210.31 the defendant's residence, as provided in this section; and in a 210.32 case where the answer of the defendant pleads the place of 210.33 residence and makes a demand of place of trial, the plaintiff, 210.34 in reply, may admit or deny the allegations of residence, and if 210.35 the allegations of residence are not expressly denied, the case 210.36 shall be tried at the place demanded by the defendant, and if 211.1 the allegations of residence are denied, the place of trial 211.2 shall be determined by the court on motion. 211.3 If there are several defendants, residing at different 211.4 places in a county, the trial shall be at the place in which the 211.5 majority of the defendants unite in demanding, or if the numbers 211.6 are equal, at the place nearest the residence of the majority of 211.7 the defendants. 211.8 The venue of an action may be changed from one of these 211.9 places to another, by order of the court, in the following cases: 211.10 (1) Upon written consent of the parties; 211.11 (2) When it appears, on motion, that a party has been made 211.12 a defendant for the purpose of preventing a change of venue as 211.13 provided in this section; 211.14 (3) When an impartial trial cannot be held in the place 211.15 where the action is pending; or 211.16 (4) When the convenience of witnesses and the ends of 211.17 justice would be promoted by the change. 211.18 Application for a change under clause (2), (3), or (4), 211.19 shall be made by motion which shall be returnable and heard at 211.20 the place of commencement of the action. 211.21 Sec. 76. [REPEALER.] 211.22 Minnesota Statutes 2000, sections 216A.06; and 237.69, 211.23 subdivision 3, are repealed. 211.24 Sec. 77. [INSTRUCTION TO REVISOR.] 211.25 The revisor of statutes shall change the words "public 211.26 service" to the word "commerce" in the following sections of 211.27 Minnesota Statutes: 13.68; 13.681; 17A.04, subdivisions 6, 7, 211.28 and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 211.29 subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 211.30 216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 211.31 subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 211.32 7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 211.33 308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 211.34 469.164, subdivision 2. 211.35 Sec. 78. [EFFECTIVE DATE.] 211.36 This article is effective July 1, 2001. 212.1 ARTICLE 9 212.2 ELECTRICAL ACT AMENDMENTS 212.3 Section 1. Minnesota Statutes 2000, section 326.01, 212.4 subdivision 5, is amended to read: 212.5 Subd. 5. [ELECTRICAL CONTRACTOR.] The term "electrical212.6 contractor" means a person, partnership, or corporation 212.7 operating a business that undertakes or offers to undertake to 212.8 plan for, lay out, or install or to make additions, alterations, 212.9 or repairs in the installation of electrical wiring, apparatus, 212.10 or equipment for light, heat, power, and other purposes with or 212.11 without compensation who is licensed as such by the board of 212.12 electricity.An electricalA contractor's license does not of 212.13 itself qualify its holder to perform or supervise the electrical 212.14 work authorized by holding any class of electrician's or other 212.15 personal electrical license. 212.16 Sec. 2. Minnesota Statutes 2000, section 326.01, 212.17 subdivision 6g, is amended to read: 212.18 Subd. 6g. [PERSONAL SUPERVISION.] The term "personal 212.19 supervision" means that a person licensedelectricianto perform 212.20 electrical work oversees and directs the electrical work 212.21 performed by an unlicensed person such that: 212.22 (1) the licensedelectricianperson actually reviews the 212.23 electrical work performed by the unlicensed person; 212.24 (2) the licensedelectricianperson is immediately 212.25 available to the unlicensed person at all times for assistance 212.26 and direction; and 212.27 (3) the licensedelectricianperson is able to and does 212.28 determine that all electrical work performed by the unlicensed 212.29 person is performed in compliance with section 326.243. 212.30 The licensedelectricianperson is responsible for the 212.31 compliance with section 326.243 of all electrical work performed 212.32 by the unlicensed person. 212.33 Sec. 3. Minnesota Statutes 2000, section 326.01, is 212.34 amended by adding a subdivision to read: 212.35 Subd. 6i. [DEMARCATION.] "Demarcation" means listed 212.36 equipment as identified in Minnesota Rules, part 3800.3619, such 213.1 as a transformer, uninterruptable power supply (UPS), battery, 213.2 control panel, or other device that isolates technology circuits 213.3 or systems from nontechnology circuits or systems, including 213.4 plug or cord and plug connection. 213.5 Sec. 4. Minnesota Statutes 2000, section 326.01, is 213.6 amended by adding a subdivision to read: 213.7 Subd. 6j. [RESIDENTIAL DWELLING.] A "residential dwelling" 213.8 is an individual dwelling of a one-family, two-family, or 213.9 multifamily dwelling as defined in the National Electrical Code 213.10 pursuant to section 326.243, including its garage or accessory 213.11 building. 213.12 Sec. 5. Minnesota Statutes 2000, section 326.01, is 213.13 amended by adding a subdivision to read: 213.14 Subd. 6k. [POWER LIMITED TECHNICIAN.] The term "power 213.15 limited technician" means a person having the necessary 213.16 qualifications, training, experience, and technical knowledge to 213.17 install, alter, repair, plan, lay out, and supervise the 213.18 installing, altering, and repairing of electrical wiring, 213.19 apparatus, and equipment for technology circuits or systems who 213.20 is licensed as such by the board of electricity. 213.21 Sec. 6. Minnesota Statutes 2000, section 326.01, is 213.22 amended by adding a subdivision to read: 213.23 Subd. 6l. [TECHNOLOGY CIRCUITS OR SYSTEMS.] "Technology 213.24 circuits or systems" means class 2 or class 3 circuits or 213.25 systems for, but not limited to, remote-control, signaling, 213.26 control, alarm, and audio signal, including associated 213.27 components as covered by National Electrical Code articles 640, 213.28 645, 725, 760, 770, and 780 and which are isolated from circuits 213.29 or systems other than class 2 or class 3 by a demarcation; 213.30 antenna and communication circuits or systems as covered by 213.31 chapter 8 of the National Electrical Code; and circuitry and 213.32 equipment for outdoor landscape lighting systems that are 213.33 supplied by the secondary circuit of an isolating power supply 213.34 operating at 30 volts or less as covered by National Electrical 213.35 Code article 411. The planning, laying out, installing, 213.36 altering, and repairing of technology circuits or systems must 214.1 be performed in accordance with the applicable requirements of 214.2 the National Electrical Code pursuant to section 326.243. 214.3 Sec. 7. Minnesota Statutes 2000, section 326.241, 214.4 subdivision 1, is amended to read: 214.5 Subdivision 1. [COMPOSITION.] The board of electricity 214.6 shall consist of 11 members, residents of the state, appointed 214.7 by the governor of whomat leasttwo shall be representatives of 214.8 the electrical suppliers in the rural areas of the state, two 214.9 shall be master electricians, who shall be contractors, two 214.10 journeyman electricians, one registered consulting electrical 214.11 engineer, twolicensed alarm and communicationpower limited 214.12 technicians, who shall be technology system 214.13 contractors primarily engaged in the business of installing 214.14alarm and communicationtechnology circuits or systems, and two 214.15 public members as defined by section 214.02. Membership terms, 214.16 compensation of members, removal of members, the filling of 214.17 membership vacancies, and fiscal year and reporting requirements 214.18 shall be as provided in sections 214.07 to 214.09. The 214.19 provision of staff, administrative services and office space; 214.20 the review and processing of complaints; the setting of board 214.21 fees; and other provisions relating to board operations shall be 214.22 as provided in chapter 214. 214.23 Sec. 8. Minnesota Statutes 2000, section 326.242, 214.24 subdivision 1, is amended to read: 214.25 Subdivision 1. [MASTER ELECTRICIAN.] Except as otherwise 214.26 provided by law, no person shall install, alter, repair, plan, 214.27 lay out, or supervise the installing, altering, or repairing of 214.28 electrical wiring, apparatus, or equipment for light, heat, 214.29 power, or other purposes unless the person is: (a) licensed by 214.30 the board as a master electrician and (b)(i) the electrical work 214.31 is for a licensedelectricalcontractor and the person is an 214.32 employee, partner, or officer of, or is the licensedelectrical214.33 contractor, or (ii) the electrical work is performed for the 214.34 person's employer on electric wiring, apparatus, equipment, or 214.35 facilities owned or leased by the employer which is located 214.36 within the limits of property which is owned or leased and 215.1 operated and maintained by the employer. 215.2 (1) An applicant for a Class A master electrician's license 215.3 shall (a) be a graduate of a four-year electrical course in an 215.4 accredited college or university; or (b) shall have had at least 215.5 one year's experience, acceptable to the board, as a licensed 215.6 journeyman; or (c) shall have had at least five years' 215.7 experience, acceptable to the board, in planning for, laying 215.8 out, supervising and installing wiring, apparatus, or equipment 215.9 for electrical light, heat and power. 215.10 (2) As of August 1, 1985, no new Class B master 215.11 electrician's licenses shall be issued. An individual who has a 215.12 Class B master electrician's license as of August 1, 1985 may 215.13 retain the license and exercise the privileges it grants, which 215.14 include electrical work limited to single phase systems, not 215.15 over 200 amperes in capacity, on farmsteads or single-family 215.16 dwellings located in towns or municipalities with fewer than 215.17 2,500 inhabitants. 215.18 Sec. 9. Minnesota Statutes 2000, section 326.242, 215.19 subdivision 2, is amended to read: 215.20 Subd. 2. [JOURNEYMAN ELECTRICIAN.] (a) Except as otherwise 215.21 provided by law, no person shall install, alter, repair, or 215.22 supervise the installing, altering, or repairing of electrical 215.23 wiring, apparatus, or equipment for light, heat, power, or other 215.24 purposes unless: 215.25 (1) the person is licensed by the board as a journeyman 215.26 electrician; and 215.27 (2) the electrical work is: 215.28 (i) foran electricala contractor and the person is an 215.29 employee, partner, or officer of the licensedelectrical215.30 contractor; or 215.31 (ii) performed under the supervision of a master 215.32 electrician also employed by the person's employer on electrical 215.33 wiring, apparatus, equipment, or facilities owned or leased by 215.34 the employer that is located within the limits of property owned 215.35 or leased, operated, and maintained by the employer. 215.36 (b) An applicant for a Class A journeyman electrician's 216.1 license shall have had at least four years of experience, 216.2 acceptable to the board, in wiring for, installing, and 216.3 repairing electrical wiring, apparatus, or equipment, provided 216.4 however, that the board may by rule provide for the allowance of 216.5 one year of experience credit for successful completion of a 216.6 two-year post high school electrical course approved by the 216.7 board. 216.8 (c) As of August 1, 1985, no new Class B journeyman 216.9 electrician's licenses shall be issued. An individual who holds 216.10 a Class B journeyman electrician's license as of August 1, 1985 216.11 may retain the license and exercise the privileges it grants, 216.12 which include electrical work limited to single phase systems, 216.13 not over 200 amperes in capacity, on farmsteads or on 216.14 single-family dwellings located in towns or municipalities with 216.15 fewer than 2,500 inhabitants. 216.16 Sec. 10. Minnesota Statutes 2000, section 326.242, 216.17 subdivision 3, is amended to read: 216.18 Subd. 3. [CLASS A INSTALLER.] Notwithstanding the 216.19 provisions of subdivisions 1, 2, and 6, any person holding a 216.20 class A installer license may lay out and install and supervise 216.21 the laying out and installing of electrical wiring, apparatus, 216.22 or equipment for major electrical home appliances on the load 216.23 side of the main service on farmsteads and in any town or 216.24 municipality with fewer than 1,500 inhabitants, which is not 216.25 contiguous to a city of the first class and does not contain an 216.26 established business ofan electricala contractor. 216.27 Sec. 11. Minnesota Statutes 2000, section 326.242, is 216.28 amended by adding a subdivision to read: 216.29 Subd. 3d. [POWER LIMITED TECHNICIAN.] (a) Except as 216.30 otherwise provided by law, no person shall install, alter, 216.31 repair, plan, lay out, or supervise the installing, altering, or 216.32 repairing of electrical wiring, apparatus, or equipment for 216.33 technology circuits or systems unless: 216.34 (l) the person is licensed by the board as a power limited 216.35 technician; and 216.36 (2) the electrical work is: 217.1 (i) for a licensed contractor and the person is an 217.2 employee, partner, or officer of, or is the licensed contractor; 217.3 or 217.4 (ii) performed under the supervision of a master 217.5 electrician or power limited technician also employed by the 217.6 person's employer on technology circuits, systems, apparatus, 217.7 equipment, or facilities owned or leased by the employer that is 217.8 located within the limits of property owned or leased, operated, 217.9 and maintained by the employer. 217.10 (b) An applicant for a power limited technician's license 217.11 shall (i) be a graduate of a four-year electrical course in an 217.12 accredited college or university; or (ii) have had at least 18 217.13 months experience, acceptable to the board, in planning for, 217.14 laying out, supervising and installing wiring, apparatus, or 217.15 equipment for power limited systems, provided however, that the 217.16 board may by rule provide for the allowance of up to six months 217.17 (1,000 hours) of experience credit for successful completion of 217.18 a two-year post high school electrical course or other technical 217.19 training approved by the board. 217.20 (c) The board may initially set experience requirements 217.21 without rulemaking, but must adopt rules before July 1, 2002. 217.22 (d) Licensees must attain eight hours of continuing 217.23 education acceptable to the board every renewal period. 217.24 (e) A person who has achieved a minimal score of 70 percent 217.25 on an alarm and communication examination administered by the 217.26 board before December 31, 2001, may obtain a power limited 217.27 technician license without further examination by submitting an 217.28 application and a license fee of $30. 217.29 (f) A company holding an alarm and communication license as 217.30 of July 1, 2001, may designate one person who may obtain a power 217.31 limited technician license without passing an examination 217.32 administered by the board by submitting an application and 217.33 license fee of $30. 217.34 Sec. 12. Minnesota Statutes 2000, section 326.242, 217.35 subdivision 5, is amended to read: 217.36 Subd. 5. [UNLICENSED PERSONS.] (a) An unlicensed person 218.1 shall not perform electrical work unless the work is performed 218.2 under the personal supervision ofan electriciana person 218.3 actually licensed to perform such work and the licensed 218.4 electrician and unlicensedpersonpersons are employed by the 218.5 same employer. Licensedelectricianspersons shall not permit 218.6 unlicensed persons to perform electrical work except under the 218.7 personal supervision ofan electriciana person actually 218.8 licensed to perform such work. Unlicensed persons shall not 218.9 supervise the performance of electrical work or make assignments 218.10 of electrical work to unlicensed persons.Licensed electricians218.11 Except for technology circuit or system work, licensed persons 218.12 shall supervise no more than two unlicensed persons. For 218.13 technology circuit or system work, licensed persons shall 218.14 supervise no more than five unlicensed persons. 218.15 (b) Notwithstanding any other provision of this section, no 218.16 person other than a master electrician or power limited 218.17 technician shall plan or lay out electrical wiring, apparatus, 218.18 or equipment for light, heat, power, or other purposes, except 218.19 circuits or systems exempted from personal licensing by section 218.20 326.242, subdivision 12, paragraph (b). 218.21 (c)ElectricalContractors employing unlicensed persons 218.22 performing electrical work shall maintain records establishing 218.23 compliance with this subdivision, which shall designate all 218.24 unlicensed persons performing electrical work and shall permit 218.25 the board to examine and copy all such records as provided for 218.26 in section 326.244, subdivision 6. 218.27 Sec. 13. Minnesota Statutes 2000, section 326.242, 218.28 subdivision 6, is amended to read: 218.29 Subd. 6. [ELECTRICALCONTRACTOR'S LICENSE REQUIRED.] 218.30 Except as otherwise provided by law, no person other than an 218.31 employee, partner, or officer of a licensedelectrical218.32 contractor, as defined by section 326.01, subdivision 5, shall 218.33 undertake or offer to undertake to plan for, lay out, supervise 218.34 or install or to make additions, alterations, or repairs in the 218.35 installation of electrical wiring, apparatus, and equipment for 218.36 light, heat, power, and other purposes with or without 219.1 compensation unless the person obtainsan electricala 219.2 contractor's license.An electricalA contractor's license does 219.3 not of itself qualify its holder to perform or supervise the 219.4 electrical work authorized by holding any class ofelectrician's219.5 personal electrical license. 219.6 Sec. 14. Minnesota Statutes 2000, section 326.242, 219.7 subdivision 6a, is amended to read: 219.8 Subd. 6a. [BOND REQUIRED.] Eachelectricalcontractor 219.9 shall give and maintain bond to the state in the penal sum of 219.10 $5,000 conditioned upon the faithful and lawful performance of 219.11 all work entered upon by the contractor within the state of 219.12 Minnesota and such bond shall be for the benefit of persons 219.13 injured or suffering financial loss by reason of failure of such 219.14 performance. The bond shall be filed with the board and shall 219.15 be in lieu of all other license bonds to any political 219.16 subdivision. Such bond shall be written by a corporate surety 219.17 licensed to do business in the state of Minnesota. 219.18 Sec. 15. Minnesota Statutes 2000, section 326.242, 219.19 subdivision 6b, is amended to read: 219.20 Subd. 6b. [INSURANCE REQUIRED.] Eachelectricalcontractor 219.21 shall have and maintain in effect general liability insurance, 219.22 which includes premises and operations insurance and products 219.23 and completed operations insurance, with limits of at least 219.24 $100,000 per occurrence, $300,000 aggregate limit for bodily 219.25 injury, and property damage insurance with limits of at least 219.26 $25,000 or a policy with a single limit for bodily injury and 219.27 property damage of $300,000 per occurrence and $300,000 219.28 aggregate limits. Such insurance shall be written by an insurer 219.29 licensed to do business in the state of Minnesota and each 219.30electricalcontractor shall maintain on file with the board a 219.31 certificate evidencing such insurance which provides that such 219.32 insurance shall not be canceled without the insurer first giving 219.33 15 days written notice to the board of such cancellation. 219.34 Sec. 16. Minnesota Statutes 2000, section 326.242, 219.35 subdivision 6c, is amended to read: 219.36 Subd. 6c. [EMPLOYMENT OF MASTER ELECTRICIAN OR POWER 220.1 LIMITED TECHNICIAN.] (a) Noelectricalcontractor shall engage 220.2 in business of electrical contracting unless theelectrical220.3 contractor employs a licensed Class A master or Class B master 220.4 electrician, or power limited technician, who shall be 220.5 responsible for the performance of all electrical work in 220.6 accordance with the requirements of sections 326.241 to 326.248 220.7 or any rule or order adopted or issued under these sections. 220.8 The classes of work for which the licensedelectricalcontractor 220.9 is authorized shall be limited to those for which such Class A 220.10 master electrician, or Class B master electrician, or power 220.11 limited technician employed by theelectricalcontractor is 220.12 licensed. 220.13 (b) Whenan electricala contractor's license is held by an 220.14 individual, partnership, limited liability company, or 220.15 corporation and the individual, one of the partners, one of the 220.16 members, or an officer of the corporation, respectively, is not 220.17 the responsible master electrician or power limited technician 220.18 of record, all requests for inspection shall be signed by the 220.19 responsible master electrician or power limited technician of 220.20 record. The designated responsible master electrician or power 220.21 limited technician of record shall be employed by the 220.22 individual, partnership, limited liability company, or 220.23 corporation which is applying foran electricala contractor's 220.24 license and shall not be employed in any capacity as a licensed 220.25 electrician or licensed technician by any otherelectrical220.26 contractor or employer designated in subdivision 12. 220.27 (c) All applications forelectricalcontractor's licenses 220.28 and all renewals shall include a verified statement that the 220.29 applicant or licensee has complied with this subdivision. 220.30 Sec. 17. Minnesota Statutes 2000, section 326.242, 220.31 subdivision 7, is amended to read: 220.32 Subd. 7. [EXAMINATION.] In addition to the requirements 220.33 imposed herein and except as herein otherwise provided, as a 220.34 precondition to issuance ofan electrician'sa personal license, 220.35 each applicant must pass a written or oral examination given by 220.36 the board to insure the competence of each applicant for 221.1 license. An oral examination shall be administered only to an 221.2 applicant who furnishes a written statement from a certified 221.3 teacher or other professional, trained in the area of reading 221.4 disabilities stating that the applicant has a specific reading 221.5 disability which would prevent the applicant from performing 221.6 satisfactorily on a written test. The oral examination shall be 221.7 structured so that an applicant who passes the examination will 221.8 not impair the applicant's own safety or that of others while 221.9 acting asan electriciana licensed person. No person failing 221.10 an examination may retake it for six months thereafter, but 221.11 within such six months the person may take an examination for a 221.12 lesser grade of license. Any licensee failing to renew a 221.13 license for two years or more after its expiration shall be 221.14 required to retake the examination before being issued a new 221.15 license. 221.16An applicant for journeyman's or special electrician's221.17license who shall furnish evidence satisfactory to the board of221.18having the requisite experience, upon written application,221.19payment of the examination fee and fulfillment of all other221.20requirements stated herein, may work as a journeyman or special221.21electrician until the examination next following and the221.22announcement of the results of such latter examination by the221.23board.221.24 An applicant for a personal license shall submit to the 221.25 board an application and examination fee at the time of 221.26 application. Upon approval of the application, the board shall 221.27 schedule the applicant for the next available examination, which 221.28 shall be held within 60 days. The applicant shall be allowed 221.29 one opportunity to reschedule an examination without being 221.30 required to submit another application and examination fee. 221.31 Additionally, an applicant who fails an examination, or whose 221.32 application has been disapproved, must submit another 221.33 application and examination fee. 221.34 Sec. 18. Minnesota Statutes 2000, section 326.242, 221.35 subdivision 8, is amended to read: 221.36 Subd. 8. [LICENSE AND RENEWAL FEES.] All licenses issued 222.1 hereunder shall expire in a manner as provided by the board. 222.2 Fees, as set by the board, shall be payable for examination, 222.3 issuance and renewal of the following: 222.4 (1) For examination: 222.5 Class A Master. 222.6 Class B Master. 222.7 Class A Journeyman, Class B Journeyman, Installer, Alarm 222.8 and Communications Contractor, Power Limited Technician, or 222.9 Special Electrician. 222.10 (2) For issuance of original license and renewal: 222.11 Class A Master. 222.12 Class B Master. 222.13 Power Limited Technician. 222.14 Class A Journeyman, Class B Journeyman, Installer, or 222.15 Special Electrician. 222.16 Electrical contractor. 222.17 Alarm and Communication System Contractor. 222.18 Technology Systems Contractor. 222.19 Sec. 19. Minnesota Statutes 2000, section 326.242, 222.20 subdivision 10, is amended to read: 222.21 Subd. 10. [CONTINUATION OF BUSINESS BY ESTATES.] Upon the 222.22 death of a master who isan electricala contractor the board 222.23 may permit the decedent's representative to carry on the 222.24 business of the decedent for a period not in excess of six 222.25 months, for the purpose of completing work under contract or 222.26 otherwise to comply with sections 326.241 to 326.248. The 222.27 representative shall give such bond as the board may require 222.28 conditioned upon the faithful and lawful performance of such 222.29 work and such bond shall be for the benefit of persons injured 222.30 or suffering financial loss by reason of failure of such 222.31 performance. Such bond shall be written by a corporate surety 222.32 licensed to do business in the state of Minnesota. Such 222.33 representative shall also comply with all public liability and 222.34 property damage insurance requirements imposed by this chapter 222.35 upon a licensedelectricalcontractor. 222.36 Sec. 20. Minnesota Statutes 2000, section 326.242, 223.1 subdivision 12, is amended to read: 223.2 Subd. 12. [EXEMPTIONS FROM LICENSING.] (a) A maintenance 223.3 electrician who is supervised by the responsible master 223.4 electrician foran electricala contractor who has contracted 223.5 with the maintenance electrician's employer to provide services 223.6 for whichan electricala contractor's license is required or by 223.7 a master electrician or an electrical engineer registered with 223.8 the board and who is an employee of an employer and is engaged 223.9 in the maintenance, and repair of electrical equipment, 223.10 apparatus, and facilities owned or leased by the employer, and 223.11 performed within the limits of property which is owned or leased 223.12 and operated and maintained by said employer, shall not be 223.13 required to hold or obtain a license under sections 326.241 to 223.14 326.248; or 223.15 (b) Employees of a licensedalarm and communication223.16 electrical or technology systems contractor or other employer 223.17 where provided with supervision by a master electrician in 223.18 accordance with subdivision 1, or power limited technician in 223.19 accordance with subdivision 3d, paragraph (a), clause (1), are 223.20 not required to hold a license under sections 326.241 to 326.248 223.21while performing work authorized to be conducted by an alarm and223.22communication contractorfor the planning, laying out, 223.23 installing, altering, and repairing of technology circuits or 223.24 systems except planning, laying out, or installing: 223.25 (i) class 2 or class 3 remote control circuits that control 223.26 circuits or systems other than class 2 or class 3 for the 223.27 purpose of environmental control, temperature control, 223.28 refrigeration, and process control, except circuits that 223.29 interconnect these systems with systems exempted by this 223.30 paragraph; 223.31 (ii) class 2 or class 3 circuits in electrical cabinets, 223.32 enclosures, or devices containing physically unprotected 223.33 circuits other than class 2 or class 3; or 223.34 (iii) technology circuits and systems in hazardous 223.35 classified locations as covered by chapter 5 of the National 223.36 Electrical Code; or 224.1 (c) Companies and their employees that plan, lay out, 224.2 install, alter, or repair class 2 and class 3 remote control 224.3 wiring associated with plug or cord and plug connected 224.4 appliances or systems other than security or fire alarm systems 224.5 installed in a residential dwelling are not required to hold a 224.6 license under sections 326.241 to 326.248; or 224.7(c)(d) Employees of any electric, communications, or 224.8 railway utility, cable communications company as defined in 224.9 section 238.02, or a telephone company as defined under section 224.10 237.01 or its employees, or of any independent contractor 224.11 performing work on behalf of any such utility, cable 224.12 communications company, or telephone company, shall not be 224.13 required to hold a license under sections 326.241 to 326.248: 224.14 1. While performing work on installations, materials, or 224.15 equipment which are owned or leased, and operated and maintained 224.16 by such utility, cable communications company, or telephone 224.17 company in the exercise of its utility, antenna, or telephone 224.18 function, and which 224.19 (i) are used exclusively for the generation, 224.20 transformation, distribution, transmission, or metering of 224.21 electric current, or the operation of railway signals, or the 224.22 transmission of intelligence and do not have as a principal 224.23 function the consumption or use of electric current or provided 224.24 service by or for the benefit of any person other than such 224.25 utility, cable communications, or telephone company, and 224.26 (ii) are generally accessible only to employees of such 224.27 utility, cable communications, or telephone company or persons 224.28 acting under its control or direction, and 224.29 (iii) are not on the load side of themeterservice point 224.30 or point of entrance; or 224.31 2. While performing work on installations, materials, or 224.32 equipment which are a part of the street lighting operations of 224.33 such utility; or 224.34 3. While installing or performing work on outdoor area 224.35 lights which are directly connected to a utility's distribution 224.36 system and located upon the utility's distribution poles, and 225.1 which are generally accessible only to employees of such utility 225.2 or persons acting under its control or direction; or 225.3 (d) An owner shall not be required to hold or obtain a 225.4 license under sections 326.241 to 326.248. 225.5 Sec. 21. Minnesota Statutes 2000, section 326.2421, 225.6 subdivision 2, is amended to read: 225.7 Subd. 2. [EXEMPTION.]Except as provided in subdivision 3,225.8 No person or company exempt under subdivision 1 or licensed 225.9 pursuant tosubdivision 3section 326.242, subdivisions 4 or 6, 225.10 may be required to obtain any authorization, permit, franchise, 225.11 or license from, or pay any fee, franchise tax, or other 225.12 assessment to, any agency, department, board, or political 225.13 subdivision of the state as a condition for performing any work 225.14 described herein.The requirements of this section shall not225.15apply to telephone companies as defined under section 237.01 nor225.16to their employees, that are only engaged in the laying out,225.17installation, and repair of telephone systems.225.18 Sec. 22. Minnesota Statutes 2000, section 326.2421, 225.19 subdivision 9, is amended to read: 225.20 Subd. 9. [LIMITATION.] Nothing in this section prohibits a 225.21 unit of local government from charging a franchise fee to the 225.22 operator of a cable communicationssystemcompany as defined in 225.23 section 238.02. 225.24 Sec. 23. Minnesota Statutes 2000, section 326.243, is 225.25 amended to read: 225.26 326.243 [SAFETY STANDARDS.] 225.27 All electrical wiring, apparatus and equipment for electric 225.28 light, heat and power,alarm and communicationtechnology 225.29 circuits or systems shall comply with the rules of the 225.30 department of public service, the commissioner of commerce, or 225.31 the department of labor and industry, as applicable, and be 225.32 installed in conformity with accepted standards of construction 225.33 for safety to life and property. For the purposes of this 225.34 chapter, the rules and safety standards stated at the time the 225.35 work is done in the then most recently published edition of the 225.36 National Electrical Code as adopted by the National Fire 226.1 Protection Association, Inc. and approved by the American 226.2 National Standards Institute, and the National Electrical Safety 226.3 Code as published by the Institute of Electrical and Electronics 226.4 Engineers, Inc. and approved by the American National Standards 226.5 Institute, shall be prima facie evidence of accepted standards 226.6 of construction for safety to life and property; provided 226.7 further, that in the event a Minnesota Building Code is 226.8 formulated pursuant to section 16B.61, containing approved 226.9 methods of electrical construction for safety to life and 226.10 property, compliance with said methods of electrical 226.11 construction of said Minnesota Building Code shall also 226.12 constitute compliance with this section, and provided further, 226.13 that nothing herein contained shall prohibit any political 226.14 subdivision from making and enforcing more stringent 226.15 requirements than set forth herein and such requirements shall 226.16 be complied with by all licensed electricians working within the 226.17 jurisdiction of such political subdivisions. 226.18 Sec. 24. Minnesota Statutes 2000, section 326.244, 226.19 subdivision 1a, is amended to read: 226.20 Subd. 1a. [ALARM AND COMMUNICATIONTECHNOLOGY SYSTEMS.] (a) 226.21 The installation offire alarm systems as defined in article 760226.22of the National Electrical Code,the following technology 226.23 circuits or systems except minor work performed by a contractor, 226.24 must be inspected as provided in this section for compliance 226.25 with the applicable provisions ofarticles 725, 760, 770, 800,226.26810, and 820 of the most recent edition ofthe National 226.27 Electrical Code and the applicable provisions of the National 226.28 Electrical Safety Code, as those codes were approved by the 226.29 American National Standards Institute: 226.30 (i) remote control circuits controlling class 2 or class 3 226.31 remote control circuits that control circuits or systems other 226.32 than class 2 or class 3 for the purpose of environmental 226.33 control, temperature control, refrigeration, and process 226.34 control, except circuits that interconnect these systems 226.35 exempted by section 326.242, subdivision 12, paragraph (b), 226.36 other than fire alarm; class 2 or class 3 circuits in electrical 227.1 cabinets, enclosures, or devices containing physically 227.2 unprotected circuits other than class 2 or class 3; or 227.3 technology circuits and systems in hazardous classified 227.4 locations as covered by chapter 5 of the National Electrical 227.5 Code; 227.6 (ii) fire alarm systems as defined in article 760 of the 227.7 National Electrical Code; 227.8 (iii) critical health and medical facilities, including, 227.9 but not limited to, anesthesia and resuscitative alarm and 227.10 alerting systems, medical monitoring, and nurse call systems; 227.11 (iv) process control systems used for automated production 227.12 or process functions in manufacturing plants; and 227.13 (v) physical security systems within detention facilities. 227.14 (c) For the purposes of this subdivision "minor work" means 227.15 the adjustment or repair and replacement of worn or defective 227.16 parts ofan alarm or communicationa technology circuit or 227.17 system. Minor work may be inspected under this section at the 227.18 request of the owner of the property or the person doing the 227.19 work. 227.20 (d) Notwithstanding this subdivision, if an electrical 227.21 inspectorin the course of doing another inspection in a227.22buildingobserves thatan alarm and communicationa contractor, 227.23 employer, or owner has not complied with accepted standards when 227.24 the work was performed, as provided in the most recent editions 227.25 of the National Electrical Code and the National Electrical 227.26 Safety Code as approved by the American National Standards 227.27 Institute, the inspector may order the contractor, employer, or 227.28 owner who has performed the work to file a request for 227.29 electrical inspection, pay an inspection fee, and make any 227.30 necessary repairs to comply with applicable standards and 227.31 require that the work be inspected. 227.32 Sec. 25. Minnesota Statutes 2000, section 326.244, 227.33 subdivision 2, is amended to read: 227.34 Subd. 2. [PROCEDURE.] (a) At or before commencement of any 227.35 installation required to be inspected by the board, the 227.36electricalcontractor, installer, special electrician, or owner 228.1 making the installation shall submit to the board a request for 228.2 inspection, in a form prescribed by the board, together with the 228.3 fees required for the installation. 228.4 (b) The fees required are a handling fee and an inspection 228.5 fee. The handling fee shall be set by the board in an amount 228.6 sufficient to pay the cost of printing and handling the form 228.7 requesting an inspection. The inspection fee shall be set by 228.8 the board in an amount sufficient to pay the actual costs of the 228.9 inspection and the board's costs in administering the 228.10 inspection. All fees shall be set pursuant to the procedure of 228.11 sections 14.001 to 14.69. 228.12 (c) If the inspector finds that the installation is not in 228.13 compliance with accepted standards of construction for safety to 228.14 life and property as required by section 326.243, the inspector 228.15 shall by written order condemn the installation or noncomplying 228.16 portion thereof, or order service to the installation 228.17 disconnected, and shall send a copy of the order to the board. 228.18 If the installation or the noncomplying part will seriously and 228.19 proximately endanger human life and property, the order of the 228.20 inspector, when approved by the inspector's superior, shall 228.21 require immediate condemnation or disconnection. In all other 228.22 cases, the order of the inspector shall permit a reasonable 228.23 opportunity for the installation to be brought into compliance 228.24 with accepted standards of construction for safety to life and 228.25 property prior to the effective time established for 228.26 condemnation or disconnection. 228.27 (d) Copies of each condemnation or disconnection order 228.28 shall be served personally or by mail upon the property owner, 228.29 and theelectricalcontractor, installer, or special electrician 228.30 making the installation, and other persons as the board by rule 228.31 may direct. An aggrieved party may appeal any condemnation or 228.32 disconnection order by filing with the board a notice of appeal 228.33 within ten days after (1) service upon the aggrieved party of 228.34 the condemnation or disconnection order, if this service is 228.35 required, or (2) filing of the order with the board, whichever 228.36 is later. The appeal shall proceed and the order of the 229.1 inspector shall have the effect the order, by its terms, and the 229.2 rules of the board provides. The board shall adopt rules 229.3 providing procedures for the conduct of appeals, including 229.4 provisions for the stay of enforcement of the order of the 229.5 inspector pending such appeal when justified by the 229.6 circumstances. 229.7 Sec. 26. Minnesota Statutes 2000, section 326.244, 229.8 subdivision 5, is amended to read: 229.9 Subd. 5. [EXEMPTIONS FROM INSPECTIONS.] Installations, 229.10 materials, or equipment shall not be subject to inspection under 229.11 sections 326.241 to 326.248: 229.12 (1) when owned or leased, operated and maintained by any 229.13 employer whose maintenance electricians are exempt from 229.14 licensing under sections 326.241 to 326.248, while performing 229.15 electrical maintenance work only as defined by board rule; 229.16 (2) when owned or leased, and operated and maintained by 229.17 any electric, communications or railway utility or telephone 229.18 company in the exercise of its utility or telephone function; 229.19 and 229.20 (i) are used exclusively for the generations, 229.21 transformation, distribution, transmission, or metering of 229.22 electric current, or the operation of railway signals, or the 229.23 transmission of intelligence, and do not have as a principal 229.24 function the consumption or use of electric current by or for 229.25 the benefit of any person other than such utility or telephone 229.26 company; and 229.27 (ii) are generally accessible only to employees of such 229.28 utility or telephone company or persons acting under its control 229.29 or direction; and 229.30 (iii) are not on the load side of themeterservice point 229.31 or point of entrance; 229.32 (3) when used in the street lighting operations of an 229.33 electric utility; 229.34 (4) when used as outdoor area lights which are owned and 229.35 operated by an electric utility and which are connected directly 229.36 to its distribution system and located upon the utility's 230.1 distribution poles, and which are generally accessible only to 230.2 employees of such utility or persons acting under its control or 230.3 direction; 230.4 (5)when the installation, material, and equipment are230.5alarm or communication systems laid out, installed, or230.6maintained within residential units not larger than a duplex;230.7(6)when the installation, material, and equipment are in 230.8 facilities subject to the jurisdiction of the federal Mine 230.9 Safety and Health Act; or 230.10(7)(6) when the installation, material, and equipment is 230.11 part of an elevator installation for which the elevator 230.12 contractor, licensed under section 326.242, is required to 230.13 obtain a permit from the authority having jurisdiction as 230.14 provided by section 16B.747, and the inspection has been or will 230.15 be performed by an elevator inspector certified by the 230.16 department of administration and licensed by the board of 230.17 electricity. This exemption shall apply only to installations, 230.18 material, and equipment permitted or required to be connected on 230.19 the load side of the disconnecting means required for elevator 230.20 equipment under National Electric Code Article 620, and elevator 230.21 communications and alarm systems within the machine room, car, 230.22 hoistway, or elevator lobby. 230.23 Sec. 27. Minnesota Statutes 2000, section 326.244, 230.24 subdivision 6, is amended to read: 230.25 Subd. 6. [SITE INSPECTIONS.] The board may, without 230.26 advance notice, inspect any site at which electrical work is 230.27 being performed or has been performed or where records 230.28 concerning the performance of electrical work are kept for 230.29 purposes of ensuring compliance with sections 326.241 to 326.248 230.30 or any rule or order adopted or issued under these sections. 230.31 With respect to electrical work performed at or records kept in 230.32 an occupied private dwelling, all inspections permitted by this 230.33 subdivision shall occur during normal business hours and shall 230.34 be preceded by advance notice, which need not be in writing. 230.35 The board shall have the authority to examine and copy all 230.36 records concerning the performance of electrical work and to 231.1 question in private all persons employed byan electricala 231.2 contractor or on the site. No person shall retaliate in any 231.3 manner against any employee or person who is questioned by, 231.4 cooperates with, or provides information to the board, its 231.5 complaint committee, or the attorney general. 231.6 Sec. 28. [TERMS FOR POWER LIMITED CONTRACTORS AND POWER 231.7 LIMITED TECHNICIANS.] 231.8 The term of one of the power limited contractors appointed 231.9 under Minnesota Statutes, section 326.241, subdivision 1, shall 231.10 expire after two years. That person's successor shall be 231.11 appointed for a four-year term. 231.12 Sec. 29. [INSTRUCTION TO REVISOR.] 231.13 The revisor shall delete the term "alarm and communication," 231.14 "alarm and communication system contractor," or "alarm and 231.15 communication contractor" from Minnesota Statutes, sections 231.16 299M.03, 326.242, 326.243, and 326.244 and the citation to 231.17 section 326.2421 from Minnesota Statutes, section 299M.03. 231.18 Sec. 30. [REPEALER.] 231.19 (a) Minnesota Statutes, section 326.01, subdivision 6d; 231.20 326.2421, subdivisions 3, 4, 6, and 8, are repealed. 231.21 (b) Minnesota Rules, part 3800.3500, subpart 12, is 231.22 repealed.