as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to legislation; correcting erroneous, 1.3 ambiguous, and omitted text and obsolete references; 1.4 eliminating certain redundant, conflicting, and 1.5 superseded provisions; making miscellaneous technical 1.6 corrections to statutes and other laws; amending 1.7 Minnesota Statutes 2002, sections 3.85, subdivision 6; 1.8 4A.02; 12.37; 13.3806, subdivision 4; 13.383, by 1.9 adding a subdivision; 13.4963, subdivision 2; 13.4967, 1.10 by adding a subdivision; 13.585, subdivision 2; 1.11 13.6905, by adding a subdivision; 13.7191, subdivision 1.12 6; 13.871, subdivisions 5, 6; 14.03, subdivision 2; 1.13 14.388; 37.03, subdivision 1; 40A.121; 50.14, 1.14 subdivision 12; 60K.39, subdivision 1; 62A.27; 62Q.71; 1.15 69.021, subdivision 5; 69.041; 79.251, subdivision 1; 1.16 79A.02, subdivision 1; 85.015, subdivisions 4, 10; 1.17 85.20, subdivision 6; 103B.321, subdivision 1; 1.18 103G.245, subdivision 5; 116J.556; 144A.4605, 1.19 subdivision 4; 144E.41; 147A.01, subdivisions 18, 22; 1.20 147A.24, subdivision 2; 168.013, subdivision 1e; 1.21 168.61, subdivision 1; 211A.13; 221.021, subdivision 1.22 1; 221.0251, subdivision 1; 221.60, subdivision 1; 1.23 221.601, subdivision 1; 221.602, subdivisions 1, 2, 3; 1.24 222.63, subdivisions 1, 6; 222.86, subdivisions 1, 3; 1.25 237.075, subdivision 8; 244.13, subdivision 1; 1.26 256B.501, subdivision 11; 260B.163, subdivision 4; 1.27 260C.007, subdivision 5; 260C.175, subdivision 1; 1.28 270.67, subdivision 2; 270B.03, subdivision 6; 272.67, 1.29 subdivision 1; 273.1106; 276A.09; 290.0802, 1.30 subdivision 2; 290.9727, subdivision 3; 290.9728, 1.31 subdivision 2; 290.9729, subdivision 2; 297A.70, 1.32 subdivision 7; 299F.40, subdivision 1; 317A.443, 1.33 subdivision 2; 322B.960, subdivision 4; 325E.26, 1.34 subdivision 4; 325G.34, subdivision 4; 327C.07, 1.35 subdivision 7; 354A.31, subdivisions 6, 7; 356.46, 1.36 subdivision 1; 356.62; 365.46, subdivision 2; 379.05; 1.37 398A.04, subdivision 4; 412.021, subdivision 1; 1.38 412.091; 414.09, subdivision 3; 465.81, subdivisions 1.39 1, 2; 465.82, subdivisions 1, 2; 465.84; 469.057, 1.40 subdivisions 1, 2; 473.129, subdivision 5; 473F.13, 1.41 subdivision 1; 473H.14; 487.17; 487.24; 488A.01, 1.42 subdivision 5; 488A.03, subdivisions 11, 13; 488A.06, 1.43 subdivisions 2, 3; 488A.11; 488A.18, subdivision 6; 1.44 488A.28; 491A.01, subdivision 4; 515B.3-116; 557.09; 1.45 572A.015, subdivision 2; 572A.02, subdivision 6; 1.46 572A.03, subdivision 5; 609.33, subdivision 6; 2.1 609.5317, subdivisions 1, 3; Laws 1997, chapter 203, 2.2 article 9, section 21, as amended; repealing Minnesota 2.3 Statutes 2002, sections 2.043; 2.053; 2.063; 2.073; 2.4 2.083; 2.093; 2.103; 2.113; 2.123; 2.133; 2.143; 2.5 2.153; 2.163; 2.173; 2.183; 2.193; 2.203; 2.213; 2.6 2.223; 2.233; 2.243; 2.253; 2.263; 2.273; 2.283; 2.7 2.293; 2.303; 2.313; 2.323; 2.333; 2.343; 2.353; 2.8 2.363; 2.373; 2.383; 2.393; 2.403; 2.413; 2.423; 2.9 2.433; 2.443; 2.453; 2.463; 2.473; 2.483; 2.493; 2.10 2.503; 2.513; 2.523; 2.533; 2.543; 2.553; 2.563; 2.11 2.573; 2.583; 2.593; 2.603; 2.613; 2.623; 2.633; 2.12 2.643; 2.653; 2.663; 2.673; 2.683; 2.693; 2.703; 2.13 2.742; 2.752; 2.762; 2.772; 2.782; 2;792; 2.802; 2.14 2.812; 221.121, subdivision 6g; 221.153, subdivision 2.15 3; 356.58; 572A.015, subdivision 1; 609.668, 2.16 subdivision 7; Laws 1997, chapter 233, article 1, 2.17 section 12; Laws 2000, chapter 395, section 13, 2.18 subdivision 3; Laws 2001, chapter 195, article 2, 2.19 section 35; Laws 2002, chapter 223, section 25, 2.20 subdivision 3; Laws 2002, chapter 243, section 2; Laws 2.21 2002, chapter 374, article 8, section 2; Laws 2002, 2.22 chapter 380, article 4, section 1; Laws 2002, chapter 2.23 392, article 12, section 1; Minnesota Rules, parts 2.24 2200.0100; 2200.0200; 2200.0300; 2200.0400; 2200.0500; 2.25 2200.0600; 2200.0700; 2200.0800; 2200.0900; 2200.1000; 2.26 2200.1100; 2200.1200; 2200.1300; 2200.1400; 2200.1500; 2.27 2200.1600; 2200.1700; 2200.1800; 2200.1900; 2200.2000; 2.28 2200.2100; 2200.3100; 2200.3200; 2200.3300; 2200.3410; 2.29 2200.3500; 2200.3600; 2200.3700; 2200.3800; 2200.3900; 2.30 2200.4000; 2200.4100; 2200.4200; 2200.4300; 2200.4400; 2.31 2200.5000; 2200.5100; 2200.5200; 2200.5300; 2200.5310; 2.32 2200.5400; 2200.5500; 2200.6000; 2200.6100; 2200.6200; 2.33 2200.6300; 2200.6400; 2200.6500; 2200.6600; 2200.6700; 2.34 2200.6800; 2200.6900; 2200.7000; 2200.7100; 2200.7200; 2.35 2200.7300; 2200.7400; 2200.7500; 2200.7600; 2200.7700; 2.36 2200.7800; 2200.7900; 2200.8000; 2200.8100; 2200.8200; 2.37 2200.8300; 2200.8400; 2200.8500; 2200.9000; 2200.9100; 2.38 2200.9200; 2200.9300; 2200.9400; 2200.9500; 2200.9600; 2.39 2200.9700; 2200.9800; 2205.0100; 2205.0200; 2205.0300; 2.40 2205.0400; 2205.0500; 2205.0600; 2205.0700; 2205.0800; 2.41 2205.0900; 2205.1000; 2205.1100; 2205.1200; 2205.1300; 2.42 2205.1400; 2205.1500; 4830.6000; 4830.6100; 4830.6200; 2.43 4830.6300; 4830.6400; 6100.6000. 2.44 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.45 ARTICLE 1 2.46 GENERAL 2.47 Section 1. Minnesota Statutes 2002, section 3.85, 2.48 subdivision 6, is amended to read: 2.49 Subd. 6. [ASSISTANCE OF OTHER AGENCIES.] The commission 2.50 may request information from any state officer or agency or 2.51 public pension fund or plan as defined in section 2.52
356.615356.63, paragraph (b), including a volunteer 2.53 firefighters' relief association to which sections 69.771 to 2.54 69.776 apply, to assist it to carry out the terms of this 2.55 section. The officer, agency, or public pension fund or plan 2.56 shall promptly furnish any data requested. 2.57 Sec. 2. Minnesota Statutes 2002, section 12.37, is amended 3.1 to read: 3.2 12.37 [POLITICAL SUBDIVISION'S POWERS TO FAST PROVIDE 3.3 EMERGENCY AID.] 3.4 (a)During an emergency or disaster, each political 3.5 subdivision, notwithstanding any statutory or charter provision 3.6 to the contrary, and through its governing body acting within or 3.7 without the corporate limits of the political subdivision, may: 3.8 (1) enter into contracts and incur obligations necessary to 3.9 combat the disaster by protecting the health and safety of 3.10 persons and property and by providing emergency assistance to 3.11 the victims of the disaster; and 3.12 (2) exercise the powers vested by this subdivision in the 3.13 light of the exigencies of the disaster without compliance with 3.14 time-consuming procedures and formalities prescribed by law 3.15 pertaining to: 3.16 (i) the performance of public work; 3.17 (ii) entering into contracts; 3.18 (iii) incurring of obligations; 3.19 (iv) employment of temporary workers; 3.20 (v) rental of equipment; 3.21 (vi) purchase of supplies and materials; 3.22 (vii) limitations upon tax levies; and 3.23 (viii) the appropriation and expenditure of public funds, 3.24 for example, but not limited to, publication of ordinances and 3.25 resolutions, publication of calls for bids, provisions of civil 3.26 service laws and rules, provisions relating to low bids, and 3.27 requirements for budgets. 3.28 (b) The failure or malfunction of public infrastructure or3.29 systems critical to the delivery of municipal services due to3.30 year 2000 problems with computers and electronically controlled3.31 devices shall constitute an emergency for the purposes of this3.32 section.3.33 Sec. 3. Minnesota Statutes 2002, section 13.4963, 3.34 subdivision 2, is amended to read: 3.35 Subd. 2. [GENERALLY.] Classification and disclosure of tax 3.36 data created, collected, or maintained by the department of 4.1 revenue under chapter 115B (except taxes imposed under sections 4.2 115B.21 to 115B.24), 289A (except for taxes imposed under 4.3 sections 298.01, 298.015, and 298.24), 290, 290A, 291, 295, 4.4 297A, or 297H, and sections 295.50 to 295.59or any similar 4.5 Indian tribal tax administered by the commissioner according to 4.6 a tax agreement between the state and an Indian tribal 4.7 government are governed by chapter 270B. 4.8 Sec. 4. Minnesota Statutes 2002, section 14.388, is 4.9 amended to read: 4.10 14.388 [GOOD CAUSE EXEMPTION.] 4.11 If an agency for good cause finds that the rulemaking 4.12 provisions of this chapter are unnecessary, impracticable, or 4.13 contrary to the public interest when adopting, amending, or 4.14 repealing a rule to: 4.15 (1) address a serious and immediate threat to the public 4.16 health, safety, or welfare; 4.17 (2) comply with a court order or a requirement in federal 4.18 law in a manner that does not allow for compliance with sections 4.19 14.14 to 14.28; 4.20 (3) incorporate specific changes set forth in applicable 4.21 statutes when no interpretation of law is required; or 4.22 (4) make changes that do not alter the sense, meaning, or 4.23 effect of a rule, 4.24 the agency may adopt, amend, or repeal the rule after satisfying 4.25 the requirements of section 14.386, paragraph (a), clauses (1) 4.26 to (3)(4). The agency shall incorporate its findings and a 4.27 brief statement of its supporting reasons in its order adopting, 4.28 amending, or repealing the rule. 4.29 The office of administrative hearings shall determine 4.30 whether the agency has provided adequate justification for its 4.31 use of this section. 4.32 Rules adopted, amended, or repealed under clauses (1) and 4.33 (2) are effective for a period of two years from the date of 4.34 publication of the rule in the State Register. 4.35 Rules adopted, amended, or repealed under clause (3) or (4) 4.36 are effective upon publication in the State Register. 5.1 Sec. 5. Minnesota Statutes 2002, section 37.03, 5.2 subdivision 1, is amended to read: 5.3 Subdivision 1. [MEMBERS.] Members of the state 5.4 agricultural society must be citizens of this state. The 5.5 membership is as follows: 5.6 (a) Three delegates chosen annually by each agricultural 5.7 society or association in the state which maintains an active 5.8 existence, holds annual fairs, and is entitled to share in the 5.9 state appropriation under the provisions of section 38.02. If 5.10 one of those societies or associations fails to choose 5.11 delegates, then its president, secretary, and treasurer, by 5.12 virtue of their offices, are its delegates. If two fairs 5.13 receiving state aid are operating in one county, each delegate 5.14 from each society or association is entitled to one-half vote at 5.15 regular or special meetings of the state society. 5.16 (b) One delegate appointed by the county board of each 5.17 county in which no county or district agricultural society 5.18 exists. 5.19 (c) Individuals elected by the society as honorary members 5.20 for having performed eminent services in agriculture, 5.21 horticulture, or related arts and sciences or long and faithful 5.22 service in or benefits to the society. Honorary members must be 5.23 elected by two-thirds vote at any annual meeting. The number of 5.24 honorary members may not exceed the society's membership and 5.25 only one honorary member may be elected annually. Each honorary 5.26 member is entitled to one vote. 5.27 (d) Two elected delegates and the president may represent 5.28 each of the following societies and associations: Red River5.29 Valley Winter Shows,the Minnesota State Horticultural Society, 5.30 the State Dairyman's Association,the Minnesota Dairy Goat 5.31 Association, the Minnesota Honey Producers Association, Inc., 5.32 the Minnesota Livestock Breeders' Association, the Minnesota 5.33 Crop Improvement Association, the Minnesota Pork Producers 5.34 Association, the Minnesota Lamb and Wool Producers Association, 5.35 the Minnesota Horse Breeders' Association, the Minnesota 5.36 Veterinary Medical Association, the Minnesota Cattle Breeders'6.1 Association,the Minnesota Beef Cattle Improvement Association, 6.2 the Central Livestock Association, the Minnesota State Poultry 6.3 Association, the Farm Equipment Association, the North Central6.4 Florist Associationthe Minnesota State Florists 6.5 Association, the Minnesota Garden Flower Society,the State Fair 6.6 Exhibitors' Organization, the Minnesota Federation of County 6.7 Fairs, the StateMinnesota Forestry Association, the Minnesota 6.8 Horse Council, Minnesota Nurserymen'sNursery and Landscape 6.9 Association, Minnesota Apple Growers' Association, State Grange 6.10 of Minnesota, Minnesota Farmers' Union, American Dairy 6.11 Association of Minnesotathe Midwest, and the Minnesota Farm 6.12 Bureau Federation. 6.13 (e) The following societies and associations are entitled 6.14 to one delegate each: Central Minnesota Vegetable Growers 6.15 Association, the Minnesota Fruit and Vegetable Growers' 6.16 Association, Minnesota Shorthorn Breeders' Association, the 6.17 Minnesota Milking Shorthorn Association, Minnesota Guernsey 6.18 Breeders' Association, Minnesota Jersey Cattle Club, Minnesota 6.19 Holstein Association, Minnesota Hereford AssociationBreeders, 6.20 Minnesota Aberdeen Angus Breeders'the Minnesota Angus 6.21 Association, Minnesota Red Polled Breeders',Minnesota Ayreshire 6.22 Breeders' Association, Minnesota Brown Swiss Association, 6.23 Minnesota Poland China Breeders' Association, Minnesota Duroc 6.24 Breeders', Minnesota Chester White Association, Minnesota Turkey 6.25 Growers' Association, Minnesota Gladiolus Society, Minnesota 6.26 Hampshire Sheep Association, Minnesota Suffolk Sheep 6.27 Association, North American Dairy Sheep Association, and the 6.28 Minnesota Berkshire Association. 6.29 (f) The societies and associations listed in paragraphs (d) 6.30 and (e) must be active and statewide in their scope and 6.31 operation, hold annual meetings, and be incorporated under the 6.32 laws of the state before they are entitled to a delegate. The 6.33 societies and associations must file with the secretary of 6.34 state, on or before December 20, a report showing that the 6.35 society or association has held a regular annual meeting for 6.36 that year, a summary of its financial transactions for the 7.1 current year, and an affidavit of the president and secretary 7.2 that it has a paid-up membership of at least 25. On or before 7.3 December 31, the secretary of state shall certify to the 7.4 secretary of the state agricultural society the names of the 7.5 societies or associations that have complied with these 7.6 provisions. 7.7 (g) If a society or association ceases to exist or 7.8 otherwise fails to comply with the requirements of paragraph 7.9 (f), its membership in the state agricultural society and its 7.10 right to delegates is terminated and it may be replaced by 7.11 another society or association representing the same or similar 7.12 interests and chosen by a majority vote of the members of the 7.13 society at its next annual meeting. 7.14 (h) The members of the board of managers of the state 7.15 agricultural society are members of the society and entitled to 7.16 one vote each. 7.17 Sec. 6. Minnesota Statutes 2002, section 60K.39, 7.18 subdivision 1, is amended to read: 7.19 Subdivision 1. [ISSUANCE.] Unless denied a license under 7.20 section 62K.4160K.43, a nonresident person shall receive a 7.21 nonresident producer license if: 7.22 (1) the person is currently licensed as a resident and in 7.23 good standing in the person's home state; 7.24 (2) the person has submitted the proper request for 7.25 licensure and has paid the fees required by section 60K.55; 7.26 (3) the person has submitted or transmitted to the 7.27 commissioner the application for licensure that the person 7.28 submitted to the person's home state, or in lieu of the same, a 7.29 completed Uniform Application; and 7.30 (4) the person's home state awards nonresident producer 7.31 licenses to residents of this state on the same basis. 7.32 Sec. 7. Minnesota Statutes 2002, section 62A.27, is 7.33 amended to read: 7.34 62A.27 [COVERAGE OF ADOPTED CHILDREN.] 7.35 (a) A health plan that provides coverage to a Minnesota 7.36 resident must cover adopted children of the insured, subscriber, 8.1 participant, or enrollee on the same basis as other dependents. 8.2 Consequently, the plan shall not contain any provision 8.3 concerning preexisting condition limitations, insurability, 8.4 eligibility, or health underwriting approval concerning children 8.5 placed for adoption with the participant. 8.6 (b) The coverage required by this section is effective from 8.7 the date of placement for adoption. For purposes of this 8.8 section, placement for adoption means the assumption and 8.9 retention by a person of a legal obligation for total or partial 8.10 support of a child in anticipation of adoption of the child. 8.11 The child's placement with a person terminates upon the 8.12 termination of the legal obligation for total or partial support. 8.13 (c) For the purpose of this section, health plan includes: 8.14 (1) coverage offered by community integrated service 8.15 networks; 8.16 (2) coverage that is designed solely to provide dental or 8.17 vision care; and 8.18 (3) any plan under the federal Employee Retirement Income 8.19 Security Act of 1974 (ERISA), United States Code, title 29, 8.20 sections 1001 to 1461. 8.21 Sec. 8. Minnesota Statutes 2002, section 62Q.71, is 8.22 amended to read: 8.23 62Q.71 [NOTICE TO ENROLLEES.] 8.24 Each health plan company shall provide to enrollees a clear 8.25 and concise description of its complaint resolution procedure, 8.26 if applicable under section 62Q.68, subdivision 1, and the 8.27 procedure used for utilization review as defined under chapter 8.28 62M as part of the member handbook, subscriber contract, or 8.29 certificate of coverage. If the health plan company does not 8.30 issue a member handbook, the health plan company may provide the 8.31 description in another written document. The description must 8.32 specifically inform enrollees: 8.33 (1) how to submit a complaint to the health plan company; 8.34 (2) if the health plan includes utilization review 8.35 requirements, how to notify the utilization review organization 8.36 in a timely manner and how to obtain certification for health 9.1 care services; 9.2 (3) how to request an appeal either through the procedures 9.3 described in sections 62Q.69 and 62Q.70 or through the 9.4 procedures described in chapter 62M; 9.5 (4) of the right to file a complaint with either the 9.6 commissioner of health or commerce at any time during the 9.7 complaint and appeal process; 9.8 (5) of the toll-free telephone number of the appropriate 9.9 commissioner; 9.10 (6) of the telephone number of the office of consumer9.11 assistance, advocacy, and information;and 9.12 (7)(6) of the right to obtain an external review under 9.13 section 62Q.73 and a description of when and how that right may 9.14 be exercised. 9.15 Sec. 9. Minnesota Statutes 2002, section 69.021, 9.16 subdivision 5, is amended to read: 9.17 Subd. 5. [CALCULATION OF STATE AID.] (a) The amount of 9.18 fire state aid available for apportionment, before the addition 9.19 of the minimum fire state aid allocation amount under 9.20 subdivision 7, is equal to 107 percent of the amount of premium 9.21 taxes paid to the state upon the fire, lightning, sprinkler 9.22 leakage, and extended coverage premiums reported to the 9.23 commissioner by insurers on the Minnesota Firetown Premium 9.24 Report. This amount shall be reduced by the amount required to 9.25 pay the state auditor's costs and expenses of the audits or 9.26 exams of the firefighters relief associations. 9.27 The total amount for apportionment in respect to fire state 9.28 aid must not be less than two percent of the premiums reported 9.29 to the commissioner by insurers on the Minnesota Firetown 9.30 Premium Report after subtracting the following amounts: 9.31 (1) the amount required to pay the state auditor's costs 9.32 and expenses of the audits or exams of the firefighters relief 9.33 associations; and 9.34 (2) one percent of the premiums reported by town and 9.35 farmers' mutual insurance companies and mutual property and 9.36 casualty companies with total assets of $5,000,000 or less. 10.1 (b) The total amount for apportionment as police state aid 10.2 is equal to 104 percent of the amount of premium taxes paid to 10.3 the state on the premiums reported to the commissioner by 10.4 insurers on the Minnesota Aid to Police Premium Report, plus the10.5 payment amounts received under section 297I.05, subdivision 8,10.6 since the last aid apportionment, andreduced by the amount 10.7 required to pay the costs and expenses of the state auditor for 10.8 audits or exams of police relief associations. The total amount 10.9 for apportionment in respect to the police state aid program 10.10 must not be less than two percent of the amount of premiums 10.11 reported to the commissioner by insurers on the Minnesota Aid to 10.12 Police Premium Report after subtracting the amount required to 10.13 pay the state auditor's cost and expenses of the audits or exams 10.14 of the police relief associations. 10.15 (c) The commissioner shall calculate the percentage of 10.16 increase or decrease reflected in the apportionment over or 10.17 under the previous year's available state aid using the same 10.18 premiums as a basis for comparison. 10.19 (d) The amount for apportionment in respect to peace 10.20 officer state aid under paragraph (b) must be further reduced by 10.21 $1,779,000 in fiscal year 1999, $2,077,000 in fiscal year 2000, 10.22 and $2,404,000 in fiscal year 2001. These reductions in this 10.23 paragraph cancel to the general fund. 10.24 (e) In addition to the amount for apportionment of police 10.25 state aid under paragraph (b), each year $100,000 shall be 10.26 apportioned for police state aid. An amount sufficient to pay 10.27 this increase is annually appropriated from the general fund. 10.28 Sec. 10. Minnesota Statutes 2002, section 69.041, is 10.29 amended to read: 10.30 69.041 [SHORTFALL FROM GENERAL FUND.] 10.31 (a) If the annual funding requirements of fire or police 10.32 relief associations or consolidation accounts under sections 10.33 69.77, 69.771 to 69.775, or 353A.09, exceed all applicable 10.34 revenue sources of a given year, including the insurance premium 10.35 taxes funding the applicable fire or police state aid as set 10.36 under section 60A.15, subdivision 1, paragraph (e), clauses (1)11.1 to (3)297I.05, subdivisions 2, 3, and 4, the shortfall in the 11.2 annual funding requirements must be paid from the general fund 11.3 to the extent appropriated by the legislature. 11.4 (b) Nothing in this section may be deemed to relieve any 11.5 municipality from its obligation to a relief association or 11.6 consolidation account under law. 11.7 Sec. 11. Minnesota Statutes 2002, section 79.251, 11.8 subdivision 1, is amended to read: 11.9 Subdivision 1. [GENERAL DUTIES OF COMMISSIONER.] (a)(1) 11.10 The commissioner shall have all the usual powers and authorities 11.11 necessary for the discharge of the commissioner's duties under 11.12 this section and may contract with individuals in discharge of 11.13 those duties. The commissioner shall audit the reserves 11.14 established (a) for individual cases arising under policies and 11.15 contracts of coverage issued under subdivision 4 and (b) for the 11.16 total book of business issued under subdivision 4. If the 11.17 commissioner determines on the basis of an audit that there is 11.18 an excess surplus in the assigned risk plan, the commissioner 11.19 must notify the commissioner of finance who shall transfer 11.20 assets of the plan equal to the excess surplus to the budget 11.21 reserve account in the general fund. 11.22 (2) The commissioner shall monitor the operations of 11.23 section 79.252 and this section and shall periodically make 11.24 recommendations to the governor and legislature when 11.25 appropriate, for improvement in the operation of those sections. 11.26 (3) All insurers and self-insurance administrators issuing 11.27 policies or contracts under subdivision 4 shall pay to the 11.28 commissioner a .25 percent assessment on premiums for policies 11.29 and contracts of coverage issued under subdivision 4 for the 11.30 purpose of defraying the costs of performing the duties under 11.31 clauses (1) and (2). Proceeds of the assessment shall be 11.32 deposited in the state treasury and credited to the general fund. 11.33 (4) The assigned risk plan shall not be deemed a state 11.34 agency. 11.35 (b) As used in this subdivision, "excess surplus" means the 11.36 amount of assigned risk plan assets in excess of the amount 12.1 needed to pay all current liabilities of the plan, including, 12.2 but not limited to: 12.3 (1) administrative expenses; 12.4 (2) benefit claims; and 12.5 (3) if the assigned risk plan is dissolved under 12.6 subdivision 8, the amounts that would be due insurers who have 12.7 paid assessments to the plan. 12.8 Sec. 12. Minnesota Statutes 2002, section 79A.02, 12.9 subdivision 1, is amended to read: 12.10 Subdivision 1. [MEMBERSHIP.] For the purposes of assisting 12.11 the commissioner, there is established a workers' compensation 12.12 self-insurers' advisory committee of five members that are 12.13 employers authorized to self-insure in Minnesota. Three of the 12.14 members and three alternates shall be elected by the 12.15 self-insurers' security fund board of trustees and two members 12.16 and two alternates shall be appointed by the commissioner. 12.17 Notwithstanding section 15.059, subdivision 5a,the advisory 12.18 committee does not expire June 30, 2001. 12.19 Sec. 13. Minnesota Statutes 2002, section 103B.321, 12.20 subdivision 1, is amended to read: 12.21 Subdivision 1. [GENERAL.] The board shall: 12.22 (1) develop guidelines for the contents of comprehensive 12.23 water plans that provide for a flexible approach to meeting the 12.24 different water and related land resources needs of counties and 12.25 watersheds across the state; 12.26 (2) coordinate assistance of state agencies to counties and 12.27 other local units of government involved in preparation of 12.28 comprehensive water plans, including identification of pertinent 12.29 data and studies available from the state and federal 12.30 government; 12.31 (3) conduct an active program of information and education 12.32 concerning the requirements and purposes of sections 103B.301 to 12.33 103B.355 in conjunction with the association of Minnesota 12.34 counties; 12.35 (4) determine contested cases under section 103B.345; 12.36 (5) establish a process for review of comprehensive water 13.1 plans that assures the plans are consistent with state law; and 13.2 (6) report to the house of representatives and senate13.3 committees with jurisdiction over the environment, natural13.4 resources, and agriculture as required by section 103B.351; and13.5 (7)make grants to counties for comprehensive local water 13.6 planning, implementation of priority actions identified in 13.7 approved plans, and sealing of abandoned wells. 13.8 Sec. 14. Minnesota Statutes 2002, section 103G.245, 13.9 subdivision 5, is amended to read: 13.10 Subd. 5. [DELEGATION OF PERMIT AUTHORITY TO LOCAL UNITS OF 13.11 GOVERNMENT.] (a) The commissioner may delegate public waters 13.12 work permit authority to the appropriate county or municipality 13.13 or to watershed districts or watershed management organizations 13.14 that have elected to assert local authority over protected 13.15 waters. The public waters work permit authority must be 13.16 delegated under guidelines of the commissioner and the 13.17 delegation must be done by agreement with the involved county, 13.18 municipality, watershed district, or water management 13.19 organization and in compliance with section 103G.315. 13.20 (b) For projects affecting public waters wetlands and for 13.21 wetland areas of public waters affected by a public 13.22 transportation project as determined by the commissioner, the 13.23 commissioner may waive the requirement for a public waters work 13.24 permit if the local government unit makes a replacement, 13.25 no-loss, or exemption determination in compliance with sections 13.26 103A.201, 103B.3355, and 103G.222 to 103G.2373103G.2372, and 13.27 rules adopted pursuant to these same sections. 13.28 (c) For projects affecting both public waters and wetlands, 13.29 the local government unit may, by written agreement with the 13.30 commissioner, waive the requirement for a replacement plan, 13.31 no-loss, or exemption determination if a public waters work 13.32 permit is required and the commissioner includes the provisions 13.33 of sections 103A.201, 103B.3355, and 103G.222 to 13.34 103G.2373103G.2372, and rules adopted pursuant to these same 13.35 sections in the public waters work permit. 13.36 Sec. 15. Minnesota Statutes 2002, section 116J.556, is 14.1 amended to read: 14.2 116J.556 [LOCAL MATCH REQUIREMENT.] 14.3 (a) In order to qualify for a grant under sections 116J.551 14.4 to 116J.557, the municipality must pay for at least one-quarter 14.5 of the project costs as a local match. The municipality shall 14.6 pay an amount of the project costs equal to at least 12 percent 14.7 of the cleanup costs from the municipality's general fund, a 14.8 property tax levy for that purpose, or other unrestricted money 14.9 available to the municipality (excluding tax increments). These 14.10 unrestricted moneys may be spent for project costs, other than 14.11 cleanup costs, and qualify for the local match payment equal to 14.12 12 percent of cleanup costs. The rest of the local match may be 14.13 paid with tax increments, regional, state, or federal money 14.14 available for the redevelopment of brownfields or any other 14.15 money available to the municipality. 14.16 (b) If the development authority establishes a tax 14.17 increment financing district or hazardous substance subdistrict 14.18 on the site to pay for part of the local match requirement, the14.19 district or subdistrict is not subject to the state aid14.20 reductions under section 273.1399. In order to qualify for the14.21 exemption from the state aid reductions, the municipality must14.22 elect, by resolution, on or before the request for certification14.23 is filed that all tax increments from the district or14.24 subdistrict will be used exclusively to pay (1) for project14.25 costs for the site and (2) administrative costs for the district14.26 or subdistrict.the district or subdistrict must be decertified 14.27 when an amount of tax increments equal to no more than three 14.28 times the costs of implementing the response action plan for the 14.29 site and the administrative costs for the district or 14.30 subdistrict have been received, after deducting the amount of 14.31 the state grant. 14.32 Sec. 16. Minnesota Statutes 2002, section 144A.4605, 14.33 subdivision 4, is amended to read: 14.34 Subd. 4. [LICENSE REQUIRED.] (a) A housing with services 14.35 establishment registered under chapter 144D that is required to 14.36 obtain a home care license must obtain an assisted living home 15.1 care license according to this section or a class A or class E 15.2 license according to rule. A housing with services 15.3 establishment that obtains a class E license under this 15.4 subdivision remains subject to the payment limitations in 15.5 sections 256B.0913, subdivision 5, paragraph (h)(g), and 15.6 256B.0915, subdivision 3, paragraph (g)(i). 15.7 (b) A board and lodging establishment registered for 15.8 special services as of December 31, 1996, and also registered as 15.9 a housing with services establishment under chapter 144D, must 15.10 deliver home care services according to sections 144A.43 to 15.11 144A.47, and may apply for a waiver from requirements under 15.12 Minnesota Rules, parts 4668.0002 to 4668.0240, to operate a 15.13 licensed agency under the standards of section 157.17. Such 15.14 waivers as may be granted by the department will expire upon 15.15 promulgation of home care rules implementing section 144A.4605. 15.16 (c) An adult foster care provider licensed by the 15.17 department of human services and registered under chapter 144D 15.18 may continue to provide health-related services under its foster 15.19 care license until the promulgation of home care rules 15.20 implementing this section. 15.21 (d) An assisted living home care provider licensed under 15.22 this section must comply with the disclosure provisions of 15.23 section 325F.72 to the extent they are applicable. 15.24 Sec. 17. Minnesota Statutes 2002, section 144E.41, is 15.25 amended to read: 15.26 144E.41 [PROGRAM ELIGIBILITY; QUALIFIED AMBULANCE SERVICE 15.27 PERSONNEL.] 15.28 (a) Persons eligible to participate in the ambulance 15.29 service personnel longevity award and incentive program are 15.30 qualified ambulance service personnel. 15.31 (b) Qualified ambulance service personnel are ambulance 15.32 attendants, ambulance drivers, and ambulance service medical 15.33 directors or medical advisors who meet the following 15.34 requirements: 15.35 (1) employment of the person by or provision by the person 15.36 of service to an ambulance service that is licensed as such by 16.1 the state of Minnesota and that provides ambulance services that 16.2 are generally available to the public and are free of unfair 16.3 discriminatory practices under chapter 363; 16.4 (2) performance by the person during the 12 months ending 16.5 as of the immediately previous June 30 of all or a predominant 16.6 portion of the person's services in the state of Minnesota or on 16.7 behalf of Minnesota residents, as verified by August 1 annually 16.8 in an affidavit from the chief administrative officer of the 16.9 ambulance service; 16.10 (3) current certification of the person during the 12 16.11 months ending as of the immediately previous June 30 by the 16.12 Minnesota department of healthboard as an ambulance attendant, 16.13 ambulance driver, or ambulance service medical director or 16.14 medical advisor under section 144E.265 or 144E.28, and 16.15 supporting rules, and current active ambulance service 16.16 employment or service provision status of the person, as 16.17 verified by August 1 annually in an affidavit from the chief 16.18 administrative officer of the ambulance service; and 16.19 (4) conformance by the person with the definition of the 16.20 phrase "volunteer ambulance attendant" under section 144E.001, 16.21 subdivision 15, except that for the salary limit specified in 16.22 that provision there must be substituted, for purposes of this 16.23 section only, a limit of $3,000 for calendar year 1993, and 16.24 $3,000 multiplied by the cumulative percentage increase in the 16.25 national Consumer Price Index, all items, for urban wage earners 16.26 and clerical workers, as published by the federal Department of 16.27 Labor, Bureau of Labor Statistics, since December 31, 1993, and 16.28 for an ambulance service medical director, conformance based 16.29 solely on the person's hourly stipends or salary for service as 16.30 a medical director. 16.31 (c) The term "active ambulance service employment or 16.32 service provision status" means being in good standing with and 16.33 on the active roster of the ambulance service making the 16.34 certification. 16.35 (d) The maximum period of ambulance service employment or 16.36 service provision for which a person may receive credit towards 17.1 an award under this chapter, including prior service credit 17.2 under section 144E.45, subdivision 2, paragraph (c), is 20 years. 17.3 (e) For a person who is employed by or provides service to 17.4 more than one ambulance service concurrently during any period 17.5 during the 12-month period, credit towards an award under this 17.6 chapter is limited to one ambulance service during any period. 17.7 The creditable period is with the ambulance service for which 17.8 the person undertakes the greatest portion of employment or 17.9 service hours. 17.10 Sec. 18. Minnesota Statutes 2002, section 147A.01, 17.11 subdivision 18, is amended to read: 17.12 Subd. 18. [PHYSICIAN ASSISTANT OR REGISTERED PHYSICIAN 17.13 ASSISTANT.] "Physician assistant" or "registered physician 17.14 assistant" means a person registered pursuant to this section17.15 chapter who is qualified by academic or practical training or 17.16 both to provide patient services as specified in this chapter, 17.17 under the supervision of a supervising physician. 17.18 Sec. 19. Minnesota Statutes 2002, section 147A.01, 17.19 subdivision 22, is amended to read: 17.20 Subd. 22. [REGISTRATION.] "Registration" is the process by 17.21 which the board determines that an applicant has been found to 17.22 meet the standards and qualifications found in this 17.23 sectionchapter. 17.24 Sec. 20. Minnesota Statutes 2002, section 147A.24, 17.25 subdivision 2, is amended to read: 17.26 Subd. 2. [TYPE OF EDUCATION REQUIRED.] Approved continuing 17.27 education is approved if it is equivalent to category 1 credit 17.28 hours as defined by the American Osteopathic Association Bureau 17.29 of Professional Education, the Royal College of Physicians and 17.30 Surgeons of Canada, the American Academy of Physician 17.31 Assistants, or by organizations that have reciprocal 17.32 arrangements with the physician recognition award program of the 17.33 American Medical Association. 17.34 Sec. 21. Minnesota Statutes 2002, section 211A.13, is 17.35 amended to read: 17.36 211A.13 [PROHIBITED TRANSFERS.] 18.1 A candidate for political subdivision office must not 18.2 accept contributions from the principal campaign committee of a 18.3 candidate as defined in section 10A.01, subdivision 534. A 18.4 candidate for political subdivision office must not make 18.5 contributions to a principal campaign committee, unless the 18.6 contribution is made from the personal funds of the candidate 18.7 for political subdivision office. 18.8 Sec. 22. Minnesota Statutes 2002, section 221.021, 18.9 subdivision 1, is amended to read: 18.10 Subdivision 1. [REGISTRATION CERTIFICATE OR PERMIT 18.11 REQUIRED.] No person may operate as a motor carrier or advertise 18.12 or otherwise hold out as a motor carrier without a certificate 18.13 of registration or permit in effect. A certificate or permit 18.14 may be suspended or revoked upon conviction of violating a 18.15 provision of sections 221.011 to 221.296 or an order or rule of 18.16 the commissioner governing the operation of motor carriers, and 18.17 upon a finding by the court that the violation was willful. The 18.18 commissioner may, for good cause after a hearing, suspend or 18.19 revoke a certificate or permit for a violation of a provision of 18.20 sections 221.011 to 221.296 or an order issued or rule 18.21 adopted by the commissioner or boardunder this chapter. 18.22 Sec. 23. Minnesota Statutes 2002, section 237.075, 18.23 subdivision 8, is amended to read: 18.24 Subd. 8. [CHARITABLE CONTRIBUTION.] The commission shall 18.25 allow as operating expenses only those50 percent of the 18.26 qualified charitable contributions which the commission deems 18.27 prudent and which qualify under section 290.21, subdivision 3,18.28 clause (b) or (e). Only 50 percent of the qualified18.29 contributions shall be allowed as operating expensesfor the use 18.30 of any community chest, corporation, trust, fund, association, 18.31 foundation, or organization, and only as long as the use is 18.32 exclusively for religious, charitable, public cemetery, 18.33 scientific, literary, artistic, or educational purposes or for 18.34 the prevention of cruelty to children or animals. No part of a 18.35 charitable contribution may inure to the benefit of any private 18.36 stockholder or individual. 19.1 Sec. 24. Minnesota Statutes 2002, section 244.13, 19.2 subdivision 1, is amended to read: 19.3 Subdivision 1. [ESTABLISHMENT.] The commissioner of 19.4 corrections shall establish programs for those designated by the 19.5 commissioner to serve all or part of a sentence on intensive 19.6 community supervision or all or part of a supervised release or 19.7 parole term on intensive supervised release. The adoption and 19.8 modification of policies and procedures to implement sections 19.9 244.05, subdivision 6, and 244.12 to 244.15 are not subject to 19.10 the rulemaking procedures of chapter 14 because these policies 19.11 and procedures are excluded from the definition of a rule under 19.12 section 14.03, subdivision 3, paragraph (b), clause (2)(1). 19.13 The commissioner shall locate the programs so that at least 19.14 one-half of the money appropriated for the programs in each year 19.15 is used for programs in Community Corrections Act counties. In 19.16 awarding contracts for intensive supervision programs in 19.17 Community Corrections Act counties, the commissioner shall give 19.18 first priority to programs that utilize county employees as 19.19 intensive supervision agents and shall give second priority to 19.20 programs that utilize state employees as intensive supervision 19.21 agents. The commissioner may award contracts to other providers 19.22 in Community Corrections Act counties only if doing so will 19.23 result in a significant cost savings or a significant increase 19.24 in the quality of services provided, and only after notifying 19.25 the chairs of the committees in the senate and house of 19.26 representatives with jurisdiction over criminal justice policy. 19.27 Sec. 25. Minnesota Statutes 2002, section 260B.163, 19.28 subdivision 4, is amended to read: 19.29 Subd. 4. [APPOINTMENT OF COUNSEL.] (a) The child, parent, 19.30 guardian or custodian has the right to effective assistance of 19.31 counsel in connection with a proceeding in juvenile court. This 19.32 right does not apply to a child who is charged with a juvenile 19.33 petty offense as defined in section 260B.007, subdivision 1516, 19.34 unless the child is charged with a third or subsequent juvenile 19.35 alcohol or controlled substance offense and may be subject to 19.36 the alternative disposition described in section 260B.235, 20.1 subdivision 6. 20.2 (b) The court shall appoint counsel, or stand-by counsel if 20.3 the child waives the right to counsel, for a child who is: 20.4 (1) charged by delinquency petition with a gross 20.5 misdemeanor or felony offense; or 20.6 (2) the subject of a delinquency proceeding in which 20.7 out-of-home placement has been proposed. 20.8 (c) If they desire counsel but are unable to employ it, the 20.9 court shall appoint counsel to represent the child or the 20.10 parents or guardian in any case in which it feels that such an 20.11 appointment is appropriate, except a juvenile petty offender who 20.12 does not have the right to counsel under paragraph (a). 20.13 (d) Counsel for the child shall not also act as the child's 20.14 guardian ad litem. 20.15 Sec. 26. Minnesota Statutes 2002, section 260C.007, 20.16 subdivision 5, is amended to read: 20.17 Subd. 5. [CHILD ABUSE.] "Child abuse" means an act that 20.18 involves a minor victim and that constitutes a violation of 20.19 section 609.221, 609.222, 609.223, 609.224, 609.2242, 609.322, 20.20 609.323,609.324, 609.342, 609.343, 609.344, 609.345, 609.377, 20.21 609.378, 617.246, or an act committed in another state that 20.22 involves a minor victim and would constitute a violation of one 20.23 of these sections if committed in this state. 20.24 Sec. 27. Minnesota Statutes 2002, section 260C.175, 20.25 subdivision 1, is amended to read: 20.26 Subdivision 1. [IMMEDIATE CUSTODY.] No child may be taken 20.27 into immediate custody except: 20.28 (a) with an order issued by the court in accordance with 20.29 the provisions of section 260C.151, subdivision 56, or Laws 20.30 1997, chapter 239, article 10, section 10, paragraph (a), clause 20.31 (3), or 12, paragraph (a), clause (3), or by a warrant issued in 20.32 accordance with the provisions of section 260C.154; 20.33 (b) by a peace officer: 20.34 (1) when a child has run away from a parent, guardian, or 20.35 custodian, or when the peace officer reasonably believes the 20.36 child has run away from a parent, guardian, or custodian; or 21.1 (2) when a child is found in surroundings or conditions 21.2 which endanger the child's health or welfare or which such peace 21.3 officer reasonably believes will endanger the child's health or 21.4 welfare. If an Indian child is a resident of a reservation or 21.5 is domiciled on a reservation but temporarily located off the 21.6 reservation, the taking of the child into custody under this 21.7 clause shall be consistent with the Indian Child Welfare Act of 21.8 1978, United States Code, title 25, section 1922; 21.9 (c) by a peace officer or probation or parole officer when 21.10 it is reasonably believed that the child has violated the terms 21.11 of probation, parole, or other field supervision; or 21.12 (d) by a peace officer or probation officer under section 21.13 260C.143, subdivision 1 or 4. 21.14 Sec. 28. Minnesota Statutes 2002, section 270.67, 21.15 subdivision 2, is amended to read: 21.16 Subd. 2. [EXTENSION AGREEMENTS.] When any portion of any 21.17 tax payable to the commissioner of revenue together with 21.18 interest and penalty thereon, if any, has not been paid, the 21.19 commissioner may extend the time for payment for a further 21.20 period. When the authority of this section is invoked, the 21.21 extension shall be evidenced by written agreement signed by the 21.22 taxpayer and the commissioner, stating the amount of the tax 21.23 with penalty and interest, if any, and providing for the payment 21.24 of the amount in installments. The agreement may contain a 21.25 confession of judgment for the amount and for any unpaid portion 21.26 thereof and shall. If the agreement contains a confession of 21.27 judgment, the confession of judgment must provide that the 21.28 commissioner may forthwith enter judgment against the taxpayer 21.29 in the district court of the county of residence as shown upon 21.30 the taxpayer's tax return for the unpaid portion of the amount 21.31 specified in the extension agreement. The agreement shall 21.32 provide that it can be terminated, after notice by the 21.33 commissioner, if information provided by the taxpayer prior to 21.34 the agreement was inaccurate or incomplete, collection of the 21.35 tax covered by the agreement is in jeopardy, there is a 21.36 subsequent change in the taxpayer's financial condition, the 22.1 taxpayer has failed to make a payment due under the agreement, 22.2 or the taxpayer has failed to pay any other tax or file a tax 22.3 return coming due after the agreement. The notice must be given 22.4 at least 14 calendar days prior to termination, and shall advise 22.5 the taxpayer of the right to request a reconsideration from the 22.6 commissioner of whether termination is reasonable and 22.7 appropriate under the circumstances. A request for 22.8 reconsideration does not stay collection action beyond the 22.9 14-day notice period. If the commissioner has reason to believe 22.10 that collection of the tax covered by the agreement is in 22.11 jeopardy, the commissioner may proceed under sections 270.70, 22.12 subdivision 2, paragraph (b), and 270.274, and terminate the 22.13 agreement without regard to the 14-day period. The commissioner 22.14 may accept other collateral the commissioner considers 22.15 appropriate to secure satisfaction of the tax liability. The 22.16 principal sum specified in the agreement shall bear interest at 22.17 the rate specified in section 270.75 on all unpaid portions 22.18 thereof until the same has been fully paid or the unpaid portion 22.19 thereof has been entered as a judgment. The judgment shall bear 22.20 interest at the rate specified in section 270.75. If it appears 22.21 to the commissioner that the tax reported by the taxpayer is in 22.22 excess of the amount actually owing by the taxpayer, the 22.23 extension agreement or the judgment entered pursuant thereto 22.24 shall be corrected. If after making the extension agreement or 22.25 entering judgment with respect thereto, the commissioner 22.26 determines that the tax as reported by the taxpayer is less than 22.27 the amount actually due, the commissioner shall assess a further 22.28 tax in accordance with the provisions of law applicable to the 22.29 tax. The authority granted to the commissioner by this section 22.30 is in addition to any other authority granted to the 22.31 commissioner by law to extend the time of payment or the time 22.32 for filing a return and shall not be construed in limitation 22.33 thereof. 22.34 Sec. 29. Minnesota Statutes 2002, section 270B.03, 22.35 subdivision 6, is amended to read: 22.36 Subd. 6. [INVESTIGATIVE DATA.] For purposes of any law 23.1 administered by the department of revenue, including laws not 23.2 listed in section 270B.01, subdivision 8, investigative data 23.3 collected or created by the department of revenue in order to 23.4 prepare a case against a person, whether known or unknown, for 23.5 the commission of a crime is confidential or protected nonpublic 23.6 during an investigation. When the investigation becomes 23.7 inactive, as defined in section 13.82, subdivision 57, the data 23.8 is private or nonpublic. 23.9 Sec. 30. Minnesota Statutes 2002, section 273.1106, is 23.10 amended to read: 23.11 273.1106 [REPORT TO LEGISLATURE; LIMITED MARKET VALUE; 23.12 VALUATION EXCLUSION.] 23.13 By March 1 of each year, the commissioner of revenue shall 23.14 make a report to the legislature on the use of limited market 23.15 value under section 273.13273.11, subdivision 1a, and the 23.16 valuation exclusion under section 273.13273.11, subdivision 16. 23.17 For the limited market value provision, the report shall include 23.18 the total value excluded from taxation by type of property for 23.19 each city and town. For the valuation exclusion provision, the 23.20 report shall include the total market value excluded from 23.21 taxation for each city and town, as well as a breakdown of the 23.22 excluded improvement amounts by age and value of the property 23.23 being improved and the amount of the qualifying improvement. 23.24 The county assessors shall provide the information necessary for 23.25 the commissioner to compile the report in a manner prescribed by 23.26 the commissioner. 23.27 Sec. 31. Minnesota Statutes 2002, section 290.0802, 23.28 subdivision 2, is amended to read: 23.29 Subd. 2. [SUBTRACTION.] (a) A qualified individual is 23.30 allowed a subtraction from federal taxable income of the 23.31 individual's subtraction base amount. The excess of the 23.32 subtraction base amount over the taxable net income computed 23.33 without regard to the subtraction for the elderly or disabled 23.34 under section 290.01, subdivision 19b, clause (5)(4), may be 23.35 used to reduce the amount of a lump sum distribution subject to 23.36 tax under section 290.032. 24.1 (b)(1) The initial subtraction base amount equals 24.2 (i) $12,000 for a married taxpayer filing a joint return if 24.3 a spouse is a qualified individual, 24.4 (ii) $9,600 for a single taxpayer, and 24.5 (iii) $6,000 for a married taxpayer filing a separate 24.6 federal return. 24.7 (2) The qualified individual's initial subtraction base 24.8 amount, then, must be reduced by the sum of nontaxable 24.9 retirement and disability benefits and one-half of the amount of 24.10 adjusted gross income in excess of the following thresholds: 24.11 (i) $18,000 for a married taxpayer filing a joint return if 24.12 both spouses are qualified individuals, 24.13 (ii) $14,500 for a single taxpayer or for a married couple 24.14 filing a joint return if only one spouse is a qualified 24.15 individual, and 24.16 (iii) $9,000 for a married taxpayer filing a separate 24.17 federal return. 24.18 (3) In the case of a qualified individual who is under the 24.19 age of 65, the maximum amount of the subtraction base may not 24.20 exceed the taxpayer's disability income. 24.21 (4) The resulting amount is the subtraction base amount. 24.22 Sec. 32. Minnesota Statutes 2002, section 290.9727, 24.23 subdivision 3, is amended to read: 24.24 Subd. 3. [TAXABLE NET INCOME.] For purposes of this 24.25 section, taxable net income means the lesser of: 24.26 (1) the recognized built-in gains of the S corporation for 24.27 the taxable year, as determined under section 1374 of the 24.28 Internal Revenue Code, subject to the modifications provided in 24.29 section 290.01, subdivision 19f, that are allocable to this 24.30 state under section 290.17, 290.191, or 290.20; or 24.31 (2) the amount of the S corporation's federal taxable 24.32 income, as determined under section 1374(d)(4) of the Internal 24.33 Revenue Code, subject to the provisions of section 290.01, 24.34 subdivisions 19c to 19f, that is allocable to this state under 24.35 section 290.17, 290.191, or 290.20 , less the deduction for24.36 charitable contributions in section 290.21, subdivision 3. 25.1 Sec. 33. Minnesota Statutes 2002, section 290.9728, 25.2 subdivision 2, is amended to read: 25.3 Subd. 2. [TAXABLE INCOME.] For purposes of this section, 25.4 taxable income means the lesser of: 25.5 (1) the amount of the net capital gain of the S corporation 25.6 for the taxable year, as determined under sections 1222 and 1374 25.7 of the Internal Revenue Code, and subject to the modifications 25.8 provided in section 290.01, subdivisions 19e and 19f, in excess 25.9 of $25,000 that is allocable to this state under section 290.17, 25.10 290.191, or 290.20; or 25.11 (2) the amount of the S corporation's federal taxable 25.12 income, subject to the provisions of section 290.01, 25.13 subdivisions 19c to 19f, that is allocable to this state under 25.14 section 290.17, 290.191, or 290.20 , less the deduction for25.15 charitable contributions in section 290.21, subdivision 3. 25.16 Sec. 34. Minnesota Statutes 2002, section 290.9729, 25.17 subdivision 2, is amended to read: 25.18 Subd. 2. [TAXABLE INCOME.] For the purposes of this 25.19 section, taxable income means the lesser of: 25.20 (1) the amount of the S corporation's excess net passive 25.21 income, as determined under section 1375 of the Internal Revenue 25.22 Code, subject to the provisions of section 290.01, subdivisions 25.23 19c to 19f, that is allocable to this state under section 25.24 290.17, 290.191, or 290.20; or 25.25 (2) the amount of the S corporation's federal taxable 25.26 income, as determined under section 1374(d)(4) of the Internal 25.27 Revenue Code, subject to the provisions of section 290.01, 25.28 subdivisions 19c to 19f, that is allocable to this state under 25.29 section 290.17, 290.191, or 290.20 , less the deduction for25.30 charitable contributions in section 290.21, subdivision 3. 25.31 Sec. 35. Minnesota Statutes 2002, section 297A.70, 25.32 subdivision 7, is amended to read: 25.33 Subd. 7. [HOSPITALS AND OUTPATIENT SURGICAL CENTERS.] (a) 25.34 Sales, except for those listed in paragraph (c), to a hospital 25.35 are exempt, if the items purchased are used in providing 25.36 hospital services. For purposes of this subdivision, "hospital" 26.1 means a hospital organized and operated for charitable purposes 26.2 within the meaning of section 501(c)(3) of the Internal Revenue 26.3 Code, and licensed under chapter 144 or by any other 26.4 jurisdiction, and "hospital services" are services authorized or 26.5 required to be performed by a "hospital" under chapter 144. 26.6 (b) Sales, except for those listed in paragraph (c), to an 26.7 outpatient surgical center are exempt, if the items purchased 26.8 are used in providing outpatient surgical services. For 26.9 purposes of this subdivision, "outpatient surgical center" means 26.10 an outpatient surgical center organized and operated for 26.11 charitable purposes within the meaning of section 501(c)(3) of 26.12 the Internal Revenue Code, and licensed under chapter 144 or by 26.13 any other jurisdiction. For the purposes of this subdivision, 26.14 "outpatient surgical services" means: (1) services authorized 26.15 or required to be performed by an outpatient surgical center 26.16 under chapter 144; and (2) urgent care. For purposes of this 26.17 subdivision, "urgent care" means health services furnished to a 26.18 person whose medical condition is sufficiently acute to require 26.19 treatment unavailable through, or inappropriate to be provided 26.20 by, a clinic or physician's office, but not so acute as to 26.21 require treatment in a hospital emergency room. 26.22 (c) This exemption does not apply to the following products 26.23 and services: 26.24 (1) purchases made by a clinic, physician's office, or any 26.25 other medical facility not operating as a hospital or outpatient 26.26 surgical center, even though the clinic, office, or facility may 26.27 be owned and operated by a hospital or outpatient surgical 26.28 center; 26.29 (2) sales under section 297A.61, subdivisions 3, paragraph26.30 (d), and 16, paragraph (c)paragraphs (d) and (g), clause (2); 26.31 (3) building and construction materials used in 26.32 constructing buildings or facilities that will not be used 26.33 principally by the hospital or outpatient surgical center; 26.34 (4) building, construction, or reconstruction materials 26.35 purchased by a contractor or a subcontractor as a part of a 26.36 lump-sum contract or similar type of contract with a guaranteed 27.1 maximum price covering both labor and materials for use in the 27.2 construction, alteration, or repair of a hospital or outpatient 27.3 surgical center; or 27.4 (5) the leasing of a motor vehicle as defined in section 27.5 297B.01, subdivision 5. 27.6 (d) A limited liability company also qualifies for 27.7 exemption under this subdivision if (1) it consists of a sole 27.8 member that would qualify for the exemption, and (2) the items 27.9 purchased qualify for the exemption. 27.10 Sec. 36. Minnesota Statutes 2002, section 317A.443, 27.11 subdivision 2, is amended to read: 27.12 Subd. 2. [METHODS.] Unless otherwise provided in the 27.13 articles or bylaws, members may take action at a meeting by 27.14 voice or ballot, by unanimous action without a meeting under 27.15 section 317A.445, by written ballot under section 317A.447, or 27.16 by electronic communication under section 317A.449317A.450. 27.17 Sec. 37. Minnesota Statutes 2002, section 322B.960, 27.18 subdivision 4, is amended to read: 27.19 Subd. 4. [PENALTY.] (a) A domestic limited liability 27.20 company that has not filed a registration pursuant to the 27.21 requirements of subdivision 32, is administratively terminated. 27.22 The secretary of state shall issue a certificate of 27.23 administrative termination which must be filed in the office of 27.24 the secretary of state. The secretary of state must also make 27.25 available in an electronic format the names of the terminated 27.26 limited liability companies. 27.27 (b) A non-Minnesota limited liability company that has not 27.28 filed a registration pursuant to the requirements of subdivision 27.29 32, shall have its authority to do business in Minnesota 27.30 revoked. The secretary of state must issue a certificate of 27.31 revocation which must be filed in the office of the secretary of 27.32 state. The secretary of state must also make available in an 27.33 electronic format the names of the revoked non-Minnesota limited 27.34 liability companies. 27.35 Sec. 38. Minnesota Statutes 2002, section 325E.26, 27.36 subdivision 4, is amended to read: 28.1 Subd. 4. [COMMERCIAL TELEPHONE SOLICITATION.] "Commercial 28.2 telephone solicitation" means any unsolicited call to a 28.3 residential subscriber when the person initiating the call has 28.4 not had a prior business or personal relationship with the 28.5 subscriber, and when the purpose of the call is to solicit the 28.6 purchase or the consideration of purchase of goods or services 28.7 by the subscriber. Commercial telephone solicitation does not 28.8 include calls initiated by organizations listed in Minnesota 28.9 Statutes 2000, section 290.21, subdivision 3, clauses (a) to (e). 28.10 Sec. 39. Minnesota Statutes 2002, section 354A.31, 28.11 subdivision 6, is amended to read: 28.12 Subd. 6. [REDUCED RETIREMENT ANNUITY.] This subdivision 28.13 applies only to a person who first became a coordinated member 28.14 or a member of a pension fund listed in section 356.30, 28.15 subdivision 3, before July 1, 1989, and whose annuity is higher 28.16 when calculated using the retirement annuity formula percentage 28.17 in subdivision 4, paragraph (b)(c), or subdivision 4a, 28.18 paragraph (c), in conjunction with this subdivision than when 28.19 calculated under subdivision 4, paragraph (c)(d), or 28.20 subdivision 4a, paragraph (d), in conjunction with subdivision 7. 28.21 (a) Upon retirement at an age before normal retirement age 28.22 with three years of service credit or prior to age 62 with at 28.23 least 30 years of service credit, a coordinated member shall be 28.24 entitled to a retirement annuity in an amount equal to the 28.25 normal retirement annuity calculated using the retirement 28.26 annuity formula percentage in subdivision 4, paragraph (b)(c), 28.27 or subdivision 4a, paragraph (c), reduced by one-quarter of one 28.28 percent for each month that the coordinated member is under 28.29 normal retirement age if the coordinated member has less than 30 28.30 years of service credit or is under the age of 62 if the 28.31 coordinated member has at least 30 years of service credit. 28.32 (b) Any coordinated member whose attained age plus credited 28.33 allowable service totals 90 years is entitled, upon application, 28.34 to a retirement annuity in an amount equal to the normal 28.35 retirement annuity calculated using the retirement annuity 28.36 formula percentage in subdivision 4, paragraph (b)(c), or 29.1 subdivision 4a, paragraph (c), without any reduction by reason 29.2 of early retirement. 29.3 Sec. 40. Minnesota Statutes 2002, section 354A.31, 29.4 subdivision 7, is amended to read: 29.5 Subd. 7. [ACTUARIAL REDUCTION FOR EARLY RETIREMENT.] This 29.6 subdivision applies to a person who has become at least 55 years 29.7 old and first becomes a coordinated member after June 30, 1989, 29.8 and to any other coordinated member who has become at least 55 29.9 years old and whose annuity is higher when calculated using the 29.10 retirement annuity formula percentage in subdivision 4, 29.11 paragraph (c)(d), and subdivision 4a, paragraph (d), in 29.12 conjunction with this subdivision than when calculated under 29.13 subdivision 4, paragraph (b)(c), or subdivision 4a, paragraph 29.14 (c), in conjunction with subdivision 6. A coordinated member 29.15 who retires before the full benefit age shall be paid the 29.16 retirement annuity calculated using the retirement annuity 29.17 formula percentage in subdivision 4, paragraph (c)(d), or 29.18 subdivision 4a, paragraph (d), reduced so that the reduced 29.19 annuity is the actuarial equivalent of the annuity that would be 29.20 payable to the member if the member deferred receipt of the 29.21 annuity and the annuity amount were augmented at an annual rate 29.22 of three percent compounded annually from the day the annuity 29.23 begins to accrue until the normal retirement age. 29.24 Sec. 41. Minnesota Statutes 2002, section 356.46, 29.25 subdivision 1, is amended to read: 29.26 Subdivision 1. [DEFINITIONS.] As used in this section, 29.27 each of the following terms shall have the meaning given. 29.28 (a) "Annuity form" means the payment procedure and duration 29.29 of a retirement annuity or disability benefit available to a 29.30 member of a public pension fund, based on the period over which 29.31 a retirement annuity or disability benefit is payable, 29.32 determined by the number of persons to whom the retirement 29.33 annuity or disability benefit is payable, and the amount of the 29.34 retirement annuity or disability benefit which is payable to 29.35 each person. 29.36 (b) "Joint and survivor optional annuity" means an optional 30.1 annuity form which provides a retirement annuity or disability 30.2 benefit to a retired member and the spouse of the member on a 30.3 joint basis during the lifetime of the retired member and all or 30.4 a portion of the original retirement annuity or disability 30.5 benefit amount to the surviving spouse in the event of the death 30.6 of the retired member. 30.7 (c) "Optional annuity form" means an annuity form which is 30.8 elected by a member and is not provided automatically as the 30.9 standard annuity form of the public pension plan. 30.10 (d) "Public pension plan" means a public pension plan as 30.11 defined under section 356.615356.63, paragraph (b). 30.12 (e) "Retirement annuity" means a series of monthly payments 30.13 to which a former or retired member of a public pension fund is 30.14 entitled due to attaining a specified age and acquiring credit 30.15 for a specified period of service, which includes a retirement 30.16 annuity, retirement allowance, or service pension. 30.17 (f) "Disability benefit" means a series of monthly payments 30.18 to which a former or disabled member of a public pension fund is 30.19 entitled due to a physical or mental inability to engage in 30.20 specified employment. 30.21 Sec. 42. Minnesota Statutes 2002, section 356.62, is 30.22 amended to read: 30.23 356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 30.24 (a) For purposes of any public pension plan, as defined in 30.25 section 356.615356.63, paragraph (b), each employer shall pick 30.26 up the employee contributions required pursuant to law or the 30.27 pension plan for all salary payable after December 31, 1982. If 30.28 the United States Treasury department rules that under section 30.29 414(h) of the Internal Revenue Code of 1986, as amended through 30.30 December 31, 1992, that these picked up contributions are not 30.31 includable in the employee's adjusted gross income until they 30.32 are distributed or made available, then these picked up 30.33 contributions must be treated as employer contributions in 30.34 determining tax treatment under the Internal Revenue Code of 30.35 1986, as amended through December 31, 1992, and the employer 30.36 shall discontinue withholding federal income taxes on the amount 31.1 of these contributions. The employer shall pay these picked up 31.2 contributions from the same source of funds as is used to pay 31.3 the salary of the employee. The employer shall pick up these 31.4 employee contributions by a reduction in the cash salary of the 31.5 employee. 31.6 (b) Employee contributions that are picked up must be 31.7 treated for all purposes of the public pension plan in the same 31.8 manner and to the same extent as employee contributions that 31.9 were made prior to the date on which the employee contributions 31.10 pick up began. The amount of the employee contributions that 31.11 are picked up must be included in the salary upon which 31.12 retirement coverage is credited and retirement and survivor's 31.13 benefits are determined. For purposes of this section, 31.14 "employee" means any person covered by a public pension plan. 31.15 For purposes of this section, "employee contributions" include 31.16 any sums deducted from the employee's salary or wages or 31.17 otherwise paid in lieu thereof, regardless of whether they are 31.18 denominated contributions by the public pension plan. 31.19 (c) For any calendar year in which withholding has been 31.20 reduced under this section, the employing unit shall supply each 31.21 employee and the commissioner of revenue with an information 31.22 return indicating the amount of the employer's picked-up 31.23 contributions for the calendar year that were not subject to 31.24 withholding. This return must be provided to the employee not 31.25 later than January 31 of the succeeding calendar year. The 31.26 commissioner of revenue shall prescribe the form of the return 31.27 and the provisions of section 289A.12 must apply to the extent 31.28 not inconsistent with the provisions of this section. 31.29 Sec. 43. Minnesota Statutes 2002, section 469.057, 31.30 subdivision 2, is amended to read: 31.31 Subd. 2. [SEAPORT CONTROL LIMITED.] Neither the department 31.32 of public service nor a successor agency, if any, has no31.33 jurisdiction over a seaway port authority for the following 31.34 matters to the extent they are connected with handling 31.35 interstate commerce: 31.36 (1) charges for stevedoring of vessels; 32.1 (2) receiving and delivering cargo for vessels; 32.2 (3) car and truck unloading and loading cargo for vessels; 32.3 (4) watching cargo for vessels; 32.4 (5) charges to vessels for use of facilities; 32.5 (6) charges against railroad, trucking companies or 32.6 shippers for use of facilities; and 32.7 (7) delivery and warehouse charges for cargo to and from 32.8 and in warehouses on seaway port authority property. 32.9 Sec. 44. Laws 1997, chapter 203, article 9, section 21, as 32.10 amended by Laws 1998, chapter 407, article 6, section 111, Laws 32.11 2000, chapter 488, article 10, section 28, and Laws 2001 First 32.12 Special Session chapter 9, article 10, section 62, is amended to 32.13 read: 32.14 Sec. 21. [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 32.15 (a) Effective on the date specified, the following persons 32.16 will be ineligible for general assistance and general assistance 32.17 medical care under Minnesota Statutes, chapter 256D, group 32.18 residential housing under Minnesota Statutes, chapter 256I, and 32.19 MFIP assistance under Minnesota Statutes, chapter 256J, funded 32.20 with state money: 32.21 (1) Beginning July 1, 2002, persons who are terminated from 32.22 or denied Supplemental Security Income due to the 1996 changes 32.23 in the federal law making persons whose alcohol or drug 32.24 addiction is a material factor contributing to the person's 32.25 disability ineligible for Supplemental Security Income, and are 32.26 eligible for general assistance under Minnesota Statutes, 32.27 section 256D.05, subdivision 1, paragraph (a), clause (15), 32.28 general assistance medical care under Minnesota Statutes, 32.29 chapter 256D, or group residential housing under Minnesota 32.30 Statutes, chapter 256I; 32.31 (2) Beginning July 1, 20022003, legal noncitizens who are 32.32 ineligible for Supplemental Security Income due to the 1996 32.33 changes in federal law making certain noncitizens ineligible for 32.34 these programs due to their noncitizen status; and 32.35 (3) Beginning July 1, 2003, legal noncitizens who are 32.36 eligible for MFIP assistance, either the cash assistance portion 33.1 or the food assistance portion, funded entirely with state money. 33.2 (b) State money that remains unspent due to changes in 33.3 federal law enacted after May 12, 1997, that reduce state 33.4 spending for legal noncitizens or for persons whose alcohol or 33.5 drug addiction is a material factor contributing to the person's 33.6 disability, or enacted after February 1, 1998, that reduce state 33.7 spending for food benefits for legal noncitizens shall not 33.8 cancel and shall be deposited in the TANF reserve account. 33.9 [EFFECTIVE DATE.] This section is effective retroactive to 33.10 July 1, 2001. 33.11 Sec. 45. [REPEALERS; OBSOLETE OR REDUNDANT LANGUAGE; 33.12 TECHNICAL CONFLICTS.] 33.13 Subdivision 1. [OBSOLETE DISTRICTS.] Minnesota Statutes 33.14 2002, sections 2.043; 2.053; 2.063; 2.073; 2.083; 2.093; 2.103; 33.15 2.113; 2.123; 2.133; 2.143; 2.153; 2.163; 2.173; 2.183; 2.193; 33.16 2.203; 2.213; 2.223; 2.233; 2.243; 2.253; 2.263; 2.273; 2.283; 33.17 2.293; 2.303; 2.313; 2.323; 2.333; 2.343; 2.353; 2.363; 2.373; 33.18 2.383; 2.393; 2.403; 2.413; 2.423; 2.433; 2.443; 2.453; 2.463; 33.19 2.473; 2.483; 2.493; 2.503; 2.513; 2.523; 2.533; 2.543; 2.553; 33.20 2.563; 2.573; 2.583; 2.593; 2.603; 2.613; 2.623; 2.633; 2.643; 33.21 2.653; 2.663; 2.673; 2.683; 2.693; 2.703; 2.742; 2.752; 2.762; 33.22 2.772; 2.782; 2;792; 2.802; and 2.812, are repealed. 33.23 Subd. 2. [OBSOLETE ARMORED CARRIER PROVISIONS.] Minnesota 33.24 Statutes 2002, sections 221.121, subdivision 6g, and 221.153, 33.25 subdivision 3, are repealed. 33.26 Subd. 3. [REDUNDANT SECTION.] Minnesota Statutes 2002, 33.27 section 356.58, is repealed. 33.28 Subd. 4. [OBSOLETE REPORT.] Minnesota Statutes 2002, 33.29 section 609.668, subdivision 7, is repealed. 33.30 Subd. 5. [CONFLICT; FIRE AND POLICE INSURANCE LANGUAGE.] 33.31 Laws 1997, chapter 233, article 1, section 12, is repealed. 33.32 Subd. 6. [CONFLICT; REGISTRATION FORM; DOMESTIC LIMITED 33.33 LIABILITY COMPANY.] Laws 2000, chapter 395, section 13, 33.34 subdivision 3, is repealed effective January 1, 2001. 33.35 Subd. 7. [CONFLICT; AGRICULTURAL LIENS.] Laws 2001, 33.36 chapter 195, article 2, section 35, is repealed. 34.1 Subd. 8. [REDUNDANT SOCIAL SECURITY DEFINITION.] Laws 34.2 2002, chapter 243, section 2, is repealed. 34.3 Subd. 9. [CONFLICT; WORKERS' COMPENSATION INSURANCE 34.4 LANGUAGE.] Laws 2002, chapter 374, article 8, section 2, is 34.5 repealed. 34.6 Subd. 10. [CONFLICT; REDEVELOPMENT PROJECTS 34.7 LANGUAGE.] Laws 2002, chapter 380, article 4, section 1, is 34.8 repealed. 34.9 Subd. 11. [CONFLICT; STATE RETIREMENT SYSTEMS 34.10 LANGUAGE.] Laws 2002, chapter 392, article 12, section 1, is 34.11 repealed. 34.12 Subd. 12. [OBSOLETE BOARD OF BOXING RULES.] Minnesota 34.13 Rules, parts 2200.0100; 2200.0200; 2200.0300; 2200.0400; 34.14 2200.0500; 2200.0600; 2200.0700; 2200.0800; 2200.0900; 34.15 2200.1000; 2200.1100; 2200.1200; 2200.1300; 2200.1400; 34.16 2200.1500; 2200.1600; 2200.1700; 2200.1800; 2200.1900; 34.17 2200.2000; 2200.2100; 2200.3100; 2200.3200; 2200.3300; 34.18 2200.3410; 2200.3500; 2200.3600; 2200.3700; 2200.3800; 34.19 2200.3900; 2200.4000; 2200.4100; 2200.4200; 2200.4300; 34.20 2200.4400; 2200.5000; 2200.5100; 2200.5200; 2200.5300; 34.21 2200.5310; 2200.5400; 2200.5500; 2200.6000; 2200.6100; 34.22 2200.6200; 2200.6300; 2200.6400; 2200.6500; 2200.6600; 34.23 2200.6700; 2200.6800; 2200.6900; 2200.7000; 2200.7100; 34.24 2200.7200; 2200.7300; 2200.7400; 2200.7500; 2200.7600; 34.25 2200.7700; 2200.7800; 2200.7900; 2200.8000; 2200.8100; 34.26 2200.8200; 2200.8300; 2200.8400; 2200.8500; 2200.9000; 34.27 2200.9100; 2200.9200; 2200.9300; 2200.9400; 2200.9500; 34.28 2200.9600; 2200.9700; 2200.9800; 2205.0100; 2205.0200; 34.29 2205.0300; 2205.0400; 2205.0500; 2205.0600; 2205.0700; 34.30 2205.0800; 2205.0900; 2205.1000; 2205.1100; 2205.1200; 34.31 2205.1300; 2205.1400; and 2205.1500, are repealed. 34.32 Subd. 13. [OBSOLETE HIGHER EDUCATION RULES.] Minnesota 34.33 Rules, parts 4830.6000; 4830.6100; 4830.6200; 4830.6300; and 34.34 4830.6400, are repealed. 34.35 Subd. 14. [REVISOR INSTRUCTION; OBSOLETE DNR FORMS.] 34.36 Minnesota Rules, part 6100.6000, is repealed. The revisor of 35.1 statutes shall delete references to part 6100.6000 found in 35.2 Minnesota Rules. 35.3 ARTICLE 2 35.4 OBSOLETE LANDLORD-TENANT TERMINOLOGY 35.5 Section 1. Minnesota Statutes 2002, section 13.585, 35.6 subdivision 2, is amended to read: 35.7 Subd. 2. [CONFIDENTIAL DATA.] The following data on 35.8 individuals maintained by the housing agency are classified as 35.9 confidential data, pursuant to section 13.02, subdivision 3: 35.10 correspondence between the agency and the agency's attorney 35.11 containing data collected as part of an active investigation 35.12 undertaken for the purpose of the commencement or defense of 35.13 potential or actual litigation, including but not limited to: 35.14 referrals to the office of the inspector general or other 35.15 prosecuting agencies for possible prosecution for fraud; 35.16 initiation of lease terminations and unlawful detainereviction 35.17 actions; admission denial hearings concerning prospective 35.18 tenants; commencement of actions against independent contractors 35.19 of the agency; and tenant grievance hearings. 35.20 Sec. 2. Minnesota Statutes 2002, section 256B.501, 35.21 subdivision 11, is amended to read: 35.22 Subd. 11. [INVESTMENT PER BED LIMITS, INTEREST EXPENSE 35.23 LIMITATIONS, AND ARM'S-LENGTH LEASES.] (a) The provisions of 35.24 Minnesota Rules, part 9553.0075, except as modified under this 35.25 subdivision, shall apply to newly constructed or established 35.26 facilities that are certified for medical assistance on or after 35.27 May 1, 1990. 35.28 (b) For purposes of establishing payment rates under this 35.29 subdivision and Minnesota Rules, parts 9553.0010 to 9553.0080, 35.30 the term "newly constructed or newly established" means a 35.31 facility (1) for which a need determination has been approved by 35.32 the commissioner under sections 252.28 and 252.291; (2) whose 35.33 program is newly licensed under Minnesota Rules, parts 9525.0215 35.34 to 9525.0355, and certified under Code of Federal Regulations, 35.35 title 42, section 442.400, et seq.; and (3) that is part of a 35.36 proposal that meets the requirements of section 252.291, 36.1 subdivision 2, paragraph (2). The term does not include a 36.2 facility for which a need determination was granted solely for 36.3 other reasons such as the relocation of a facility; a change in 36.4 the facility's name, program, number of beds, type of beds, or 36.5 ownership; or the sale of a facility, unless the relocation of a 36.6 facility to one or more service sites is the result of a closure 36.7 of a facility under section 252.292, in which case clause (3) 36.8 shall not apply. The term does include a facility that converts 36.9 more than 50 percent of its licensed beds from class A to class 36.10 B residential or class B institutional to serve persons 36.11 discharged from state regional treatment centers on or after May 36.12 1, 1990, in which case clause (3) does not apply. 36.13 (c) Newly constructed or newly established facilities that 36.14 are certified for medical assistance on or after May 1, 1990, 36.15 shall be allowed the capital asset investment per bed limits as 36.16 provided in clauses (1) to (4). 36.17 (1) The 1990 calendar year investment per bed limit for a 36.18 facility's land must not exceed $5,700 per bed for newly 36.19 constructed or newly established facilities in Hennepin, Ramsey, 36.20 Anoka, Washington, Dakota, Scott, Carver, Chisago, Isanti, 36.21 Wright, Benton, Sherburne, Stearns, St. Louis, Clay, and Olmsted 36.22 counties, and must not exceed $3,000 per bed for newly 36.23 constructed or newly established facilities in other counties. 36.24 (2) The 1990 calendar year investment per bed limit for a 36.25 facility's depreciable capital assets must not exceed $44,800 36.26 for class B residential beds, and $45,200 for class B 36.27 institutional beds. 36.28 (3) The investment per bed limit in clause (2) must not be 36.29 used in determining the three-year average percentage increase 36.30 adjustment in Minnesota Rules, part 9553.0060, subpart 1, item 36.31 C, subitem (4), for facilities that were newly constructed or 36.32 newly established before May 1, 1990. 36.33 (4) The investment per bed limits in clause (2) and 36.34 Minnesota Rules, part 9553.0060, subpart 1, item C, subitem (2) 36.35 shall be adjusted annually beginning January 1, 1991, and each 36.36 January 1 following, as provided in Minnesota Rules, part 37.1 9553.0060, subpart 1, item C, subitem (2), except that the index 37.2 utilized will be the Bureau of the Census: Composite 37.3 fixed-weighted price index as published in the Survey of Current 37.4 Business. 37.5 (d) A newly constructed or newly established facility's 37.6 interest expense limitation as provided for in Minnesota Rules, 37.7 part 9553.0060, subpart 3, item F, on capital debt for capital 37.8 assets acquired during the interim or settle-up period, shall be 37.9 increased by 2.5 percentage points for each full .25 percentage 37.10 points that the facility's interest rate on its mortgage is 37.11 below the maximum interest rate as established in Minnesota 37.12 Rules, part 9553.0060, subpart 2, item A, subitem (2). For all 37.13 following rate periods, the interest expense limitation on 37.14 capital debt in Minnesota Rules, part 9553.0060, subpart 3, item 37.15 F, shall apply to the facility's capital assets acquired, 37.16 leased, or constructed after the interim or settle-up period. 37.17 If a newly constructed or newly established facility is acquired 37.18 by the state, the limitations of this paragraph and Minnesota 37.19 Rules, part 9553.0060, subpart 3, item F, shall not apply. 37.20 (e) If a newly constructed or newly established facility is 37.21 leased with an arm's-length lease as provided for in Minnesota 37.22 Rules, part 9553.0060, subpart 7, the lease agreement shall be 37.23 subject to the following conditions: 37.24 (1) the term of the lease, including option periods, must 37.25 not be less than 20 years; 37.26 (2) the maximum interest rate used in determining the 37.27 present value of the lease must not exceed the lesser of the 37.28 interest rate limitation in Minnesota Rules, part 9553.0060, 37.29 subpart 2, item A, subitem (2), or 16 percent; and 37.30 (3) the residual value used in determining the net present 37.31 value of the lease must be established using the provisions of 37.32 Minnesota Rules, part 9553.0060. 37.33 (f) All leases of the physical plant of an intermediate 37.34 care facility for the mentally retarded shall contain a clause 37.35 that requires the owner to give the commissioner notice of any 37.36 requests or orders to vacate the premises 90 days before such 38.1 vacation of the premises is to take place. In the case of 38.2 unlawful detainereviction actions, the owner shall notify the 38.3 commissioner within three days of notice of an unlawful detainer38.4 eviction action being served upon the tenant. The only 38.5 exception to this notice requirement is in the case of 38.6 emergencies where immediate vacation of the premises is 38.7 necessary to assure the safety and welfare of the residents. In 38.8 such an emergency situation, the owner shall give the 38.9 commissioner notice of the request to vacate at the time the 38.10 owner of the property is aware that the vacating of the premises 38.11 is necessary. This section applies to all leases entered into 38.12 after May 1, 1990. Rentals set in leases entered into after 38.13 that date that do not contain this clause are not allowable 38.14 costs for purposes of medical assistance reimbursement. 38.15 (g) A newly constructed or newly established facility's 38.16 preopening costs are subject to the provisions of Minnesota 38.17 Rules, part 9553.0035, subpart 12, and must be limited to only 38.18 those costs incurred during one of the following periods, 38.19 whichever is shorter: 38.20 (1) between the date the commissioner approves the 38.21 facility's need determination and 30 days before the date the 38.22 facility is certified for medical assistance; or 38.23 (2) the 12-month period immediately preceding the 30 days 38.24 before the date the facility is certified for medical assistance. 38.25 (h) The development of any newly constructed or newly 38.26 established facility as defined in this subdivision and 38.27 projected to be operational after July 1, 1991, by the 38.28 commissioner of human services shall be delayed until July 1, 38.29 1993, except for those facilities authorized by the commissioner 38.30 as a result of a closure of a facility according to section 38.31 252.292 prior to January 1, 1991, or those facilities developed 38.32 as a result of a receivership of a facility according to section 38.33 245A.12. This paragraph does not apply to state-operated 38.34 community facilities authorized in section 252.50. 38.35 Sec. 3. Minnesota Statutes 2002, section 325G.34, 38.36 subdivision 4, is amended to read: 39.1 Subd. 4. [LIMITS ON CONSUMER ACTIONS.] Violation of 39.2 section 325G.31 is not a defense to a claim arising from a 39.3 consumer's breach of a consumer contract or to an action for 39.4 unlawful detainereviction. A consumer may recover actual 39.5 damages caused by a violation of section 325G.31 only if the 39.6 violation caused the consumer to be substantially confused about 39.7 the rights, obligations or remedies of the contract. 39.8 Sec. 4. Minnesota Statutes 2002, section 327C.07, 39.9 subdivision 7, is amended to read: 39.10 Subd. 7. [REPOSSESSING FINANCE PARTIES.] Any holder of a 39.11 security interest who repossesses a manufactured home located in 39.12 a park has the same rights as a resident to sell the home 39.13 through an in park sale if: 39.14 (a) as soon as the secured party either accepts voluntary 39.15 repossession or takes any action pursuant to sections 327.61 to 39.16 327.67, the secured party notifies the park owner that the home 39.17 has been or is being repossessed; 39.18 (b) at the time the park owner receives the notice, the 39.19 park owner has not already recovered possession of the lot 39.20 through an unlawful detainereviction proceeding; 39.21 (c) the secured party pays any past due lot rent not to 39.22 exceed three months rent; 39.23 (d) the secured party makes monthly lot rent payments until 39.24 a buyer of the repossessed home has been approved by the park 39.25 owner as a resident. A secured party's liability for past due 39.26 rent under this subdivision does not include late fees or other 39.27 charges; and 39.28 (e) the secured party complies with all park rules relating 39.29 to lot and home maintenance. 39.30 A secured party who is offering a home for in park sale 39.31 under this subdivision is subject to eviction on the same 39.32 grounds as a resident. 39.33 Sec. 5. Minnesota Statutes 2002, section 487.17, is 39.34 amended to read: 39.35 487.17 [ FORCIBLE ENTRY AND UNLAWFUL DETAINEREVICTION.] 39.36 Whether or not title to real estate is involved, the county 40.1 court has jurisdiction of actions of forcible entry and unlawful40.2 detainereviction or actions for unlawful removal or exclusion 40.3 pursuant to section 504B.375, involving land located wholly or 40.4 partly within the county court district and of actions seeking 40.5 relief for code violations pursuant to sections 504B.185 and 40.6 504B.381 to 504B.471 involving premises located wholly or partly 40.7 within the county court district. 40.8 Sec. 6. Minnesota Statutes 2002, section 487.24, is 40.9 amended to read: 40.10 487.24 [ FORCIBLE ENTRY AND UNLAWFUL DETAINEREVICTION 40.11 ACTIONS.] 40.12 Subdivision 1. [RETURN DAYS.] Return days for forcible40.13 entry and unlawful detainereviction actions may be fixed by 40.14 rule promulgated by the court. 40.15 Subd. 2. [PROCEDURE; FORMS.] Sections 504B.281 to 504B.371 40.16 apply to the county court. The forms therein prescribed, with 40.17 appropriate modifications, may be used. 40.18 Subd. 3. [DEFAULT JUDGMENTS.] Whenever a duly verified 40.19 complaint in an action of forcible entry or unlawful detainer40.20 eviction shows one of the causes of action set forth in section 40.21 504B.285, and on the return day of the summons the defendant 40.22 does not appear, the judge of the county court, upon proof of 40.23 the due service of the summons, may find the defendant in 40.24 default and file an order for judgment accordingly. 40.25 Sec. 7. Minnesota Statutes 2002, section 488A.01, 40.26 subdivision 5, is amended to read: 40.27 Subd. 5. [ FORCIBLE ENTRY AND UNLAWFUL DETAINEREVICTION OR 40.28 UNLAWFUL REMOVAL OR EXCLUSION.] Whether or not the title to real 40.29 estate is involved, the court has jurisdiction of actions 40.30 of forcible entry and unlawful detainereviction or actions for 40.31 unlawful removal or exclusion pursuant to section 504B.375, 40.32 involving land located wholly or in part within Hennepin county 40.33 and, notwithstanding any provision of subdivision 7 to the 40.34 contrary, of actions seeking relief for code violations pursuant 40.35 to sections 504B.185 and 504B.381 to 504B.471 involving premises 40.36 located wholly or partly within Hennepin county. 41.1 Sec. 8. Minnesota Statutes 2002, section 488A.03, 41.2 subdivision 11, is amended to read: 41.3 Subd. 11. [FEES PAYABLE TO ADMINISTRATOR.] (a) The civil 41.4 fees payable to the administrator for services are the same in 41.5 amount as the fees then payable to the district court of 41.6 Hennepin county for like services. Library and filing fees are 41.7 not required of the defendant in an unlawful detainereviction 41.8 action. The fees payable to the administrator for all other 41.9 services of the administrator or the court shall be fixed by 41.10 rules promulgated by a majority of the judges. 41.11 (b) Fees are payable to the administrator in advance. 41.12 (c) Judgments will be entered only upon written application. 41.13 (d) The following fees shall be taxed for all charges filed 41.14 in court where applicable: (a) The state of Minnesota and any 41.15 governmental subdivision within the jurisdictional area of any 41.16 district court herein established may present cases for hearing 41.17 before said district court; (b) In the event the court takes 41.18 jurisdiction of a prosecution for the violation of a statute or 41.19 ordinance by the state or a governmental subdivision other than 41.20 a city or town in Hennepin county, all fines, penalties, and 41.21 forfeitures collected shall be paid over to the treasurer of the 41.22 governmental subdivision which submitted charges for prosecution 41.23 under ordinance violation and to the county treasurer in all 41.24 other charges except where a different disposition is provided 41.25 by law, in which case, payment shall be made to the public 41.26 official entitled thereto. The following fees shall be taxed to 41.27 the county or to the state or governmental subdivision which 41.28 would be entitled to payment of the fines, forfeiture or 41.29 penalties in any case, and shall be paid to the court 41.30 administrator for disposing of the matter: 41.31 (1) For each charge where the defendant is brought into 41.32 court and pleads guilty and is sentenced, or the matter is 41.33 otherwise disposed of without trial .......... $5. 41.34 (2) In arraignments where the defendant waives a 41.35 preliminary examination .......... $10. 41.36 (3) For all other charges where the defendant stands trial 42.1 or has a preliminary examination by the court .......... $15. 42.2 (e) This paragraph applies to the distribution of fines 42.3 paid by defendants without a court appearance in response to a 42.4 citation. On or before the tenth day after the last day of the 42.5 month in which the money was collected, the county treasurer 42.6 shall pay 80 percent of the fines to the treasurer of the 42.7 municipality or subdivision within the county where the 42.8 violation was committed. The remainder of the fines shall be 42.9 credited to the general revenue fund of the county. 42.10 Sec. 9. Minnesota Statutes 2002, section 488A.03, 42.11 subdivision 13, is amended to read: 42.12 Subd. 13. [DESTRUCTION OF RECORDS.] (a) Upon order of all 42.13 the judges the court administrator may destroy or dispose of all 42.14 of the following types of files and records of the court which 42.15 are more than ten years old: 42.16 (1) garnishment files, uncontested, 42.17 (2) motion calendars, special term, 42.18 (3) unlawful detainer calendars, special term, 42.19 (4) garnishment calendars, special term, 42.20 (5) general term calendars, 42.21 (6) court reporters note books, 42.22 (7) receipt books for prisoners, 42.23 (8) old receipt books for probation department, 42.24 (9) criminal and ordinance violations files, 42.25 (10) cash books, 42.26 (11) depositions, 42.27 (12) traffic tags. 42.28 (b) Upon order of all the judges and upon ten days' written 42.29 notice to the president of the Hennepin county historical 42.30 society, the court administrator may destroy or dispose of all 42.31 files of civil or garnishment actions and actions of forcible 42.32 entry or, unlawful detainer, or eviction which were commenced 42.33 more than 20 years prior to the judges' order and in which no 42.34 proceedings have occurred within ten years prior to the judges' 42.35 order. 42.36 Sec. 10. Minnesota Statutes 2002, section 488A.06, 43.1 subdivision 2, is amended to read: 43.2 Subd. 2. [SERVICE OF PAPERS.] No bailiff shall serve or 43.3 receive for service any summons or other paper in any forcible43.4 entry, unlawful detainereviction or civil action until the 43.5 complaint has been filed with the court administrator. The 43.6 bailiff to whom a summons or other paper is delivered for 43.7 service shall make a prompt return to the court administrator 43.8 showing whether or not it has been served and if not served the 43.9 reason therefor. 43.10 Sec. 11. Minnesota Statutes 2002, section 488A.06, 43.11 subdivision 3, is amended to read: 43.12 Subd. 3. [FEES AND MILEAGE.] The fees and mileage of 43.13 bailiffs in civil actions and actions of forcible entry and43.14 unlawful detainereviction are the same as those payable to the 43.15 sheriff of Hennepin county for like services for district court 43.16 actions. The fees and mileage for all other services of 43.17 bailiffs shall be fixed by rules promulgated by a majority of 43.18 the judges. The fee provided for by chapter 349 of the Laws of 43.19 1953 is not payable. No fees or mileage are payable by the 43.20 state, county or city to bailiffs for their services, except 43.21 that the county may pay bailiffs for automobile mileage within 43.22 the limits provided by law when the bailiffs furnish automobiles 43.23 for use in the performance of their duties. Bailiffs shall make 43.24 returns showing their fees and mileage after performing such 43.25 services. The amount of the bailiffs' fees and mileage is 43.26 payable to the sheriff in advance. 43.27 Sec. 12. Minnesota Statutes 2002, section 488A.11, is 43.28 amended to read: 43.29 488A.11 [ FORCIBLE ENTRY AND UNLAWFUL DETAINEREVICTION 43.30 ACTIONS.] 43.31 Subdivision 1. [RETURN DAYS.] Return days for forcible43.32 entry and unlawful detainereviction actions may be fixed by 43.33 rule promulgated by a majority of the judges. 43.34 Subd. 2. [PROCEDURE; FORMS.] Sections 504B.281 to 504B.371 43.35 apply to the court. The forms therein prescribed, with 43.36 appropriate modifications, may be used. 44.1 Subd. 3. [DEFAULT JUDGMENTS.] Whenever a duly verified 44.2 complaint in an action of forcible entry or unlawful detainer44.3 eviction shows one of the causes of action set forth in section 44.4 504B.285 and on the return day of the summons the defendant does 44.5 not appear, the judge, upon proof of the due service of the 44.6 summons, shall enter an order adjudging the defendant to be in 44.7 default, and thereafter the court administrator shall enter 44.8 judgment for the plaintiff without the introduction of evidence. 44.9 Sec. 13. Minnesota Statutes 2002, section 488A.18, 44.10 subdivision 6, is amended to read: 44.11 Subd. 6. [ FORCIBLE ENTRY AND UNLAWFUL DETAINEREVICTION OR 44.12 UNLAWFUL REMOVAL OR EXCLUSION.] Whether or not the title to real 44.13 estate is involved, the court has jurisdiction of actions 44.14 of forcible entry and unlawful detainereviction or actions for 44.15 unlawful removal or exclusion pursuant to section 504B.375, 44.16 involving land located wholly or in part within Ramsey county 44.17 and, notwithstanding any provision of subdivision 8 to the 44.18 contrary, of actions seeking relief for code violations pursuant 44.19 to sections 504B.185 and 504B.381 to 504B.471 involving premises 44.20 located wholly or partly within Ramsey county. 44.21 Sec. 14. Minnesota Statutes 2002, section 488A.28, is 44.22 amended to read: 44.23 488A.28 [ FORCIBLE ENTRY AND UNLAWFUL DETAINEREVICTION 44.24 ACTIONS.] 44.25 Subdivision 1. [PROCEDURE.] The general laws applicable to 44.26 forcible entry and unlawful detainereviction actions shall 44.27 apply to this court, and the forms as prescribed in the general 44.28 laws may be used with such appropriate modifications as may be 44.29 necessary for this court. 44.30 Subd. 2. [RETURN DAYS.] Return days for forcible entry and44.31 unlawful detainereviction actions may be fixed by rules 44.32 promulgated by a majority of the judges. 44.33 Subd. 3. [DEFAULT JUDGMENTS.] Whenever a duly verified 44.34 complaint in a forcible entry and unlawful detaineran eviction 44.35 action shows one of the causes of action as set forth by general 44.36 statute, and on the return day of the summons the defendant does 45.1 not appear, the judge, upon proof of the due service of the 45.2 summons, shall enter an order adjudging the defendant to be in 45.3 default, and thereafter the administrator shall enter judgment 45.4 for the plaintiff without the introduction of evidence. 45.5 Subd. 4. [TRIALS.] Forcible entry and unlawful45.6 detainerEviction actions, which are contested, shall be given 45.7 precedence over all other civil matters in trial settings. 45.8 Sec. 15. Minnesota Statutes 2002, section 491A.01, 45.9 subdivision 4, is amended to read: 45.10 Subd. 4. [JURISDICTION; EXCLUSIONS.] The conciliation 45.11 court does not have jurisdiction over the following actions: 45.12 (1) involving title to real estate, including actions to 45.13 determine boundary lines; 45.14 (2) involving claims of defamation by libel or slander; 45.15 (3) for specific performance, except to the extent 45.16 authorized in subdivision 5; 45.17 (4) brought or defended on behalf of a class; 45.18 (5) requesting or involving prejudgment remedies; 45.19 (6) involving injunctive relief, except to the extent 45.20 authorized in subdivision 5; 45.21 (7) pursuant to chapters 256, 257, 259, 260, 518, 518A, 45.22 518B, and 518C, except for actions involving debts owed to state 45.23 agencies or political subdivisions that arise under those 45.24 chapters; 45.25 (8) pursuant to chapters 524 and 525; 45.26 (9) where jurisdiction is vested exclusively in another 45.27 court or division of district court; 45.28 (10) for unlawful detainereviction; and 45.29 (11) involving medical malpractice. 45.30 Sec. 16. Minnesota Statutes 2002, section 515B.3-116, is 45.31 amended to read: 45.32 515B.3-116 [LIEN FOR ASSESSMENTS.] 45.33 (a) The association has a lien on a unit for any assessment 45.34 levied against that unit from the time the assessment becomes 45.35 due. If an assessment is payable in installments, the full 45.36 amount of the assessment is a lien from the time the first 46.1 installment thereof becomes due. Unless the declaration 46.2 otherwise provides, fees, charges, late charges, fines and 46.3 interest charges pursuant to section 515B.3-102(a)(10), (11) and 46.4 (12) are liens, and are enforceable as assessments, under this 46.5 section. 46.6 (b) A lien under this section is prior to all other liens 46.7 and encumbrances on a unit except (i) liens and encumbrances 46.8 recorded before the declaration and, in a cooperative, liens and 46.9 encumbrances which the association creates, assumes, or takes 46.10 subject to, (ii) any first mortgage encumbering the fee simple 46.11 interest in the unit, or, in a cooperative, any first security 46.12 interest encumbering only the unit owner's interest in the unit, 46.13 and (iii) liens for real estate taxes and other governmental 46.14 assessments or charges against the unit. If a first mortgage on 46.15 a unit is foreclosed, the first mortgage was recorded after June 46.16 1, 1994, and no owner redeems during the owner's period of 46.17 redemption provided by chapter 580, 581, or 582, the holder of 46.18 the sheriff's certificate of sale from the foreclosure of the 46.19 first mortgage shall take title to the unit subject to a lien in 46.20 favor of the association for unpaid assessments for common 46.21 expenses levied pursuant to section 515B.3-115(a), (e)(1) to 46.22 (3), (f), and (i) which became due, without acceleration, during 46.23 the six months immediately preceding the first day following the 46.24 end of the owner's period of redemption. If a first security 46.25 interest encumbering a unit owner's interest in a cooperative 46.26 unit which is personal property is foreclosed, the secured party 46.27 or the purchaser at the sale shall take title to the unit 46.28 subject to unpaid assessments for common expenses levied 46.29 pursuant to section 515B.3-115(a), (e)(1) to (3), (f), and (i) 46.30 which became due, without acceleration, during the six months 46.31 immediately preceding the first day following either the 46.32 disposition date pursuant to section 336.9-610 or the date on 46.33 which the obligation of the unit owner is discharged pursuant to 46.34 section 336.9-622. This subsection shall not affect the 46.35 priority of mechanics' liens. 46.36 (c) Recording of the declaration constitutes record notice 47.1 and perfection of any lien under this section, and no further 47.2 recordation of any notice of or claim for the lien is required. 47.3 (d) Proceedings to enforce an assessment lien shall be 47.4 instituted within three years after the last installment of the 47.5 assessment becomes payable, or shall be barred. 47.6 (e) The unit owner of a unit at the time an assessment is 47.7 due shall be personally liable to the association for payment of 47.8 the assessment levied against the unit. If there are multiple 47.9 owners of the unit, they shall be jointly and severally liable. 47.10 (f) This section does not prohibit actions to recover sums 47.11 for which subsection (a) creates a lien nor prohibit an 47.12 association from taking a deed in lieu of foreclosure. The 47.13 commencement of an action to recover the sums is not an election 47.14 of remedies if it is dismissed before commencement of 47.15 foreclosure of the lien provided for by this section. 47.16 (g) The association shall furnish to a unit owner or the 47.17 owner's authorized agent upon written request of the unit owner 47.18 or the authorized agent a statement setting forth the amount of 47.19 unpaid assessments currently levied against the owner's unit. 47.20 If the unit owner's interest is real estate, the statement shall 47.21 be in recordable form. The statement shall be furnished within 47.22 ten business days after receipt of the request and is binding on 47.23 the association and every unit owner. 47.24 (h) The association's lien may be foreclosed as provided in 47.25 this subsection. 47.26 (1) In a condominium or planned community, the 47.27 association's lien may be foreclosed in a like manner as a 47.28 mortgage containing a power of sale pursuant to chapter 580, or 47.29 by action pursuant to chapter 581. The association shall have a 47.30 power of sale to foreclose the lien pursuant to chapter 580. 47.31 (2) In a cooperative whose unit owners' interests are real 47.32 estate, the association's lien shall be foreclosed in a like 47.33 manner as a mortgage on real estate as provided in paragraph (1). 47.34 (3) In a cooperative whose unit owners' interests in the 47.35 units are personal property, the association's lien shall be 47.36 foreclosed in a like manner as a security interest under article 48.1 9 of chapter 336. In any disposition pursuant to section 48.2 336.9-610 or retention pursuant to sections 336.9-620 to 48.3 336.9-622, the rights of the parties shall be the same as those 48.4 provided by law, except (i) notice of sale, disposition, or 48.5 retention shall be served on the unit owner 90 days prior to 48.6 sale, disposition, or retention, (ii) the association shall be 48.7 entitled to its reasonable costs and attorney fees not exceeding 48.8 the amount provided by section 582.01, subdivision 1a, (iii) the 48.9 amount of the association's lien shall be deemed to be adequate 48.10 consideration for the unit subject to disposition or retention, 48.11 notwithstanding the value of the unit, and (iv) the notice of 48.12 sale, disposition, or retention shall contain the following 48.13 statement in capital letters with the name of the association or 48.14 secured party filled in: 48.15 "THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of 48.16 association or secured party) HAS BEGUN PROCEEDINGS UNDER 48.17 MINNESOTA STATUTES, CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST 48.18 IN YOUR UNIT FOR THE REASON SPECIFIED IN THIS NOTICE. YOUR 48.19 INTEREST IN YOUR UNIT WILL TERMINATE 90 DAYS AFTER SERVICE OF 48.20 THIS NOTICE ON YOU UNLESS BEFORE THEN: 48.21 (a) THE PERSON AUTHORIZED BY (fill in the name of 48.22 association or secured party) AND DESCRIBED IN THIS NOTICE TO 48.23 RECEIVE PAYMENTS RECEIVES FROM YOU: 48.24 (1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS 48.25 (2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS 48.26 (3) $500 TO APPLY TO ATTORNEYS FEES ACTUALLY EXPENDED OR 48.27 INCURRED; PLUS 48.28 (4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO 48.29 (fill in name of association or secured party) AFTER THE DATE OF 48.30 THIS NOTICE; OR 48.31 (b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 48.32 FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR 48.33 CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR 48.34 SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 48.35 GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES. 48.36 IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS 49.1 WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP 49.2 RIGHTS IN YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU 49.3 WILL LOSE ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL 49.4 LOSE YOUR RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR 49.5 RIGHT TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND 49.6 YOU WILL BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS 49.7 NOTICE, CONTACT AN ATTORNEY IMMEDIATELY." 49.8 (4) In any foreclosure pursuant to chapter 580, 581, or 49.9 582, the rights of the parties shall be the same as those 49.10 provided by law, except (i) the period of redemption for unit 49.11 owners shall be six months from the date of sale or a lesser 49.12 period authorized by law, (ii) in a foreclosure by advertisement 49.13 under chapter 580, the foreclosing party shall be entitled to 49.14 costs and disbursements of foreclosure and attorneys fees 49.15 authorized by the declaration or bylaws, notwithstanding the 49.16 provisions of section 582.01, subdivisions 1 and 1a, (iii) in a 49.17 foreclosure by action under chapter 581, the foreclosing party 49.18 shall be entitled to costs and disbursements of foreclosure and 49.19 attorneys fees as the court shall determine, and (iv) the amount 49.20 of the association's lien shall be deemed to be adequate 49.21 consideration for the unit subject to foreclosure, 49.22 notwithstanding the value of the unit. 49.23 (i) If a holder of a sheriff's certificate of sale, prior 49.24 to the expiration of the period of redemption, pays any past due 49.25 or current assessments, or any other charges lienable as 49.26 assessments, with respect to the unit described in the sheriff's 49.27 certificate, then the amount paid shall be a part of the sum 49.28 required to be paid to redeem under section 582.03. 49.29 (j) In a cooperative, following foreclosure, the 49.30 association may bring an action for unlawful detainereviction 49.31 against the unit owner and any persons in possession of the 49.32 unit, and in that case section 504B.291 shall not apply. 49.33 (k) An association may assign its lien rights in the same 49.34 manner as any other secured party. 49.35 Sec. 17. Minnesota Statutes 2002, section 557.09, is 49.36 amended to read: 50.1 557.09 [ FORCIBLE ENTRYEVICTION; TREBLE DAMAGES.] 50.2 In case of forcible entry and detentioneviction, if a 50.3 person, claiming in good faith, under color of title, to be 50.4 rightfully in possession, so put out or kept out, shall recover 50.5 damages therefor, judgment may be entered in that person's favor 50.6 for three times the amount at which the actual damages are 50.7 assessed. 50.8 Sec. 18. Minnesota Statutes 2002, section 609.33, 50.9 subdivision 6, is amended to read: 50.10 Subd. 6. [PRETRIAL RELEASE.] When a person is charged 50.11 under this section with owning or leasing a disorderly house, 50.12 the court may require as a condition of pretrial release that 50.13 the defendant bring an unlawful detainereviction action against 50.14 a lessee who has violated the covenant not to allow drugs 50.15 established by section 504B.171. 50.16 Sec. 19. Minnesota Statutes 2002, section 609.5317, 50.17 subdivision 1, is amended to read: 50.18 Subdivision 1. [RENTAL PROPERTY.] (a) When contraband or a 50.19 controlled substance manufactured, distributed, or acquired in 50.20 violation of chapter 152 is seized on residential rental 50.21 property incident to a lawful search or arrest, the county 50.22 attorney shall give the notice required by this subdivision to 50.23 (1) the landlord of the property or the fee owner identified in 50.24 the records of the county assessor, and (2) the agent authorized 50.25 by the owner to accept service pursuant to section 504B.181. 50.26 The notice is not required during an ongoing investigation. The 50.27 notice shall state what has been seized and specify the 50.28 applicable duties and penalties under this subdivision. The 50.29 notice shall state that the landlord who chooses to assign the 50.30 right to bring an unlawful detainereviction action retains all 50.31 rights and duties, including removal of a tenant's personal 50.32 property following issuance of the writ of restitution and 50.33 delivery of the writ to the sheriff for execution. The notice 50.34 shall also state that the landlord may contact the county 50.35 attorney if threatened by the tenant. Notice shall be sent by 50.36 certified letter, return receipt requested, within 30 days of 51.1 the seizure. If receipt is not returned, notice shall be given 51.2 in the manner provided by law for service of summons in a civil 51.3 action. 51.4 (b) Within 15 days after notice of the first occurrence, 51.5 the landlord shall bring, or assign to the county attorney of 51.6 the county in which the real property is located, the right to 51.7 bring an unlawful detainereviction action against the tenant. 51.8 The assignment must be in writing on a form prepared by the 51.9 county attorney. Should the landlord choose to assign the right 51.10 to bring an unlawful detainereviction action, the assignment 51.11 shall be limited to those rights and duties up to and including 51.12 delivery of the writ of restitution to the sheriff for execution. 51.13 (c) Upon notice of a second occurrence on any residential 51.14 rental property owned by the same landlord in the same county 51.15 and involving the same tenant, and within one year after notice 51.16 of the first occurrence, the property is subject to forfeiture 51.17 under sections 609.531, 609.5311, 609.5313, and 609.5315, unless 51.18 an unlawful detainereviction action has been commenced as 51.19 provided in paragraph (b) or the right to bring an unlawful51.20 detainereviction action was assigned to the county attorney as 51.21 provided in paragraph (b). If the right has been assigned and 51.22 not previously exercised, or if the county attorney requests an 51.23 assignment and the landlord makes an assignment, the county 51.24 attorney may bring an unlawful detainereviction action rather 51.25 than an action for forfeiture. 51.26 Sec. 20. Minnesota Statutes 2002, section 609.5317, 51.27 subdivision 3, is amended to read: 51.28 Subd. 3. [DEFENSES.] It is a defense against a proceeding 51.29 under subdivision 1, paragraph (b), that the tenant had no 51.30 knowledge or reason to know of the presence of the contraband or 51.31 controlled substance or could not prevent its being brought onto 51.32 the property. 51.33 It is a defense against a proceeding under subdivision 1, 51.34 paragraph (c), that the landlord made every reasonable attempt 51.35 to evict a tenant or to assign the county attorney the right to 51.36 bring an unlawful detainereviction action against the tenant, 52.1 or that the landlord did not receive notice of the seizure. 52.2 ARTICLE 3 52.3 DATA PRACTICES 52.4 Section 1. Minnesota Statutes 2002, section 13.3806, 52.5 subdivision 4, is amended to read: 52.6 Subd. 4. [VITAL STATISTICS.] (a) [PARENTS' SOCIAL 52.7 SECURITY NUMBER; BIRTH RECORD.] Parents' social security numbers 52.8 provided for a child's birth record are classified under section 52.9 144.215, subdivision 4. 52.10 (b) [FOUNDLING REGISTRATION.] The report of the finding of 52.11 an infant of unknown parentage is classified under section 52.12 144.216, subdivision 2. 52.13 (c) [NEW RECORD OF BIRTH.] In circumstances in which a new 52.14 record of birth may be issued under section 144.218, the 52.15 original record of birth is classified as provided in that 52.16 section. 52.17 (d) [VITAL RECORDS.] Physical access to vital records is 52.18 governed by section 144.225, subdivision 1. 52.19 (e) [BIRTH RECORD OF CHILD OF UNMARRIED PARENTS.] Access 52.20 to the birth record of a child whose parents were not married to 52.21 each other when the child was conceived or born is governed by 52.22 sections 144.225, subdivisions 2 and 4, and 257.73. 52.23 (f) [HEALTH DATA FOR BIRTH REGISTRATION.] Health data 52.24 collected for birth registration or fetal death reporting are 52.25 classified under section 144.225, subdivision 2a. 52.26 (g) [BIRTH RECORD; SHARING.] Sharing of birth record data 52.27 and data prepared under section 257.75, is governed by section 52.28 144.225, subdivision 2b. 52.29 (h) [GROUP PURCHASER IDENTITY FOR BIRTH REGISTRATION.] 52.30 Classification of and access to the identity of a group 52.31 purchaser collected in association with birth registration is 52.32 governed by section 144.225, subdivision 6. 52.33 Sec. 2. Minnesota Statutes 2002, section 13.383, is 52.34 amended by adding a subdivision to read: 52.35 Subd. 11a. [ALCOHOL AND DRUG COUNSELOR LICENSING; 52.36 SHARING.] Sharing of data collected for licensing of alcohol and 53.1 drug counselors is governed by section 148C.099, subdivision 2. 53.2 Sec. 3. Minnesota Statutes 2002, section 13.4967, is 53.3 amended by adding a subdivision to read: 53.4 Subd. 2a. [ASSIGNMENT OF REFUND.] Data regarding 53.5 assignment of individual income tax refunds is classified by 53.6 section 290.0679, subdivision 9. 53.7 Sec. 4. Minnesota Statutes 2002, section 13.6905, is 53.8 amended by adding a subdivision to read: 53.9 Subd. 20a. [CRIME PREVENTION AND PRIVACY COMPACT.] Data 53.10 sharing under the National Crime Prevention and Privacy Compact 53.11 is governed by section 299C.58. 53.12 Sec. 5. Minnesota Statutes 2002, section 13.7191, 53.13 subdivision 6, is amended to read: 53.14 Subd. 6. [INSURANCE PRODUCERS.] (a) [LICENSING; 53.15 TERMINATION.] Access to data on insurance producer terminations 53.16 held by the commissioner of commerce is governed by section 53.17 60K.51. 53.18 (b) [DATA SHARING.] Sharing of licensing and investigative 53.19 data on insurance producers is governed by section 60K.52. 53.20 Sec. 6. Minnesota Statutes 2002, section 13.871, 53.21 subdivision 5, is amended to read: 53.22 Subd. 5. [CRIME VICTIMS.] (a) [CRIME VICTIM NOTICE OF 53.23 RELEASE.] Data on crime victims who request notice of an 53.24 offender's release are classified under section 611A.06. 53.25 (b) [SEX OFFENDER HIV TESTS.] Results of HIV tests of sex 53.26 offenders under section 611A.19, subdivision 2, are classified 53.27 under that section. 53.28 (c) [BATTERED WOMEN.] Data on battered women maintained by 53.29 grantees for emergency shelter and support services for battered 53.30 women are governed by section 611A.32, subdivision 5. 53.31 (d) [VICTIMS OF DOMESTIC ABUSE.] Data on battered women 53.32 and victims of domestic abuse maintained by grantees and 53.33 recipients of per diem payments for emergency shelter for 53.34 battered women and support services for battered women and 53.35 victims of domestic abuse are governed by sections 611A.32, 53.36 subdivision 5, and 611A.371, subdivision 3. 54.1 (e) [PERSONAL HISTORY; INTERNAL AUDITING.] Certain 54.2 personal history and internal auditing data is classified by 54.3 section 611A.46. 54.4 (f) [CRIME VICTIM CLAIMS FOR REPARATIONS.] Claims and 54.5 supporting documents filed by crime victims seeking reparations 54.6 are classified under section 611A.57, subdivision 6. 54.7 (f)(g) [CRIME VICTIM OVERSIGHT ACT.] Data maintained by 54.8 the commissioner of public safety under the Crime Victim 54.9 Oversight Act are classified under section 611A.74, subdivision 54.10 2. 54.11 Sec. 7. Minnesota Statutes 2002, section 13.871, 54.12 subdivision 6, is amended to read: 54.13 Subd. 6. [TRAINING; INVESTIGATION; APPREHENSION; REPORTS.] 54.14 (a) [REPORTS OF GUNSHOT WOUNDS.] Disclosure of the name of a 54.15 person making a report under section 626.52, subdivision 2, is 54.16 governed by section 626.53. 54.17 (b) [CHILD ABUSE REPORT RECORDS.] Data contained in child 54.18 abuse report records are classified under section 626.556. 54.19 (c) [INTERSTATE DATA EXCHANGE.] Disclosure of child abuse 54.20 reports to agencies of another state is classified under section 54.21 626.556, subdivision 10g. 54.22 (d) [RELEASE TO FAMILY COURT SERVICES.] Release of child 54.23 abuse data to a court services agency is authorized under 54.24 section 626.556, subdivision 10h. 54.25 (e) [RELEASE OF DATA TO MANDATED REPORTERS.] Release of 54.26 child abuse data to mandated reporters who have an ongoing 54.27 responsibility for the health, education, or welfare of a child 54.28 affected by the data is authorized under section 626.556, 54.29 subdivision 10j. 54.30 (f) [RELEASE OF CHILD ABUSE INVESTIGATIVE RECORDS TO OTHER 54.31 COUNTIES.] Release of child abuse investigative records to local 54.32 welfare agencies is authorized under section 626.556, 54.33 subdivision 10k. 54.34 (g) [CLASSIFYING AND SHARING RECORDS AND REPORTS OF CHILD 54.35 ABUSE.] The classification of child abuse data and the sharing 54.36 of records and reports of child abuse by and between local 55.1 welfare agencies and law enforcement agencies are governed under 55.2 section 626.556, subdivision 11. 55.3 (h) [DISCLOSURE OF INFORMATION NOT REQUIRED IN CERTAIN 55.4 CASES.] Disclosure of certain data obtained from interviewing a 55.5 minor is governed by section 626.556, subdivision 11a. 55.6 (i) [DATA RECEIVED FROM LAW ENFORCEMENT.] Classifying 55.7 child abuse data received by certain agencies from law 55.8 enforcement agencies is governed under section 626.556, 55.9 subdivision 11b. 55.10 (j) [DISCLOSURE IN CHILD FATALITY CASES.] Disclosure of 55.11 information relating to a child fatality is governed under 55.12 section 626.556, subdivision 11d. 55.13 (k) [REPORTS OF ALCOHOL ABUSE.] Data on persons making 55.14 reports under section 626.5563 are classified under section 55.15 626.5563, subdivision 5. 55.16 (l) [VULNERABLE ADULT REPORT RECORDS.] Data contained in 55.17 vulnerable adult report records are classified under section 55.18 626.557, subdivision 12b. 55.19 (m) [ADULT PROTECTION TEAM INFORMATION SHARING.] Sharing 55.20 of local welfare agency vulnerable adult data with a protection 55.21 team is governed by section 626.5571, subdivision 3. 55.22 (n) [CHILD PROTECTION TEAM.] Data acquired by a case 55.23 consultation committee or subcommittee of a child protection 55.24 team are classified by section 626.558, subdivision 3. 55.25 (o) [CHILD MALTREATMENT REPORTS PEER REVIEW PANEL.] 55.26 Sharing data of cases reviewed by the panel is governed under 55.27 section 626.5593, subdivision 2. 55.28 (p) [PEACE OFFICER DISCIPLINE PROCEDURES.] Access by an 55.29 officer under investigation to the investigating agency's 55.30 investigative report on the officer is governed by section 55.31 626.89, subdivision 6. 55.32 (q) [RACIAL PROFILING STUDY DATA.] Racial profiling study 55.33 data is governed by section 626.951. 55.34 ARTICLE 4 55.35 INTERSTATE COMMERCE COMMISSION 55.36 Section 1. Minnesota Statutes 2002, section 50.14, 56.1 subdivision 12, is amended to read: 56.2 Subd. 12. Class eleven shall be the bonds of any 56.3 corporation which at the time of such investment is incorporated 56.4 under the laws of the United States or any state thereof, or the 56.5 District of Columbia, and authorized to engage, and engaging, in 56.6 the business of furnishing telephone service in the United 56.7 States, provided that such corporation is subject to regulation 56.8 by the Interstate Commerce Commission ora public utility 56.9 commission or othersimilar federal or state regulatory body 56.10 duly established by the laws of the United States or the states 56.11 or state in which such corporation operates, subject to the 56.12 following conditions: 56.13 (a) Such corporation shall have been in existence for a 56.14 period of not less than eight fiscal years and at no time within 56.15 such period of eight fiscal years next preceding the date of 56.16 such investment shall said corporation have failed to pay 56.17 promptly and regularly the matured principal and interest of all 56.18 its indebtedness direct, assumed or guaranteed, but the period 56.19 of life of the corporation, together with the period of life of 56.20 any predecessor corporation or corporations from which a 56.21 substantial portion of its property was acquired by 56.22 consolidation, merger, purchase or as a successor corporation, 56.23 shall be considered together in determining the required period; 56.24 and such corporation shall file with the commissioner of 56.25 commerce or make public in each year a statement and a report 56.26 giving the income account covering the previous fiscal year and 56.27 the balance sheet showing in reasonable detail the assets and 56.28 liabilities at the end of such fiscal year. 56.29 (b) The book value of the outstanding capital stock of such 56.30 corporation shall at the time of such investment be equal to at 56.31 least two-thirds of its total funded debt. 56.32 (c) For a period of five fiscal years next preceding the 56.33 date of such investment the net earnings of such corporation 56.34 shall have been each year not less than twice the annual 56.35 interest charges on its total funded debt applicable to that 56.36 period, and for such period, the gross operating revenues of any 57.1 such corporation shall have averaged per year not less than 57.2 $5,000,000. 57.3 (d) In determining the qualifications of any bond under 57.4 this subdivision where a corporation shall have acquired its 57.5 property or any substantial portion thereof within five years 57.6 immediately preceding the date of such investment by 57.7 consolidation, merger, purchase or as a successor corporation, 57.8 the gross operating revenues, net earnings and interest charges 57.9 of the predecessor or constituent corporations shall be 57.10 consolidated and adjusted so as to ascertain whether the 57.11 requirements of paragraph (c) have been complied with. 57.12 (e) The gross operating revenues and expenses of a 57.13 corporation for the purpose of this subdivision shall be 57.14 respectively the total amount earned from the operation of, and 57.15 the total expense of maintaining and operating, all property 57.16 owned and operated or leased and operated by such corporation, 57.17 as determined by the system of accounts prescribed by the 57.18 Interstate Commerce Commission or thepublic utility commission 57.19 or othersimilar federal or state regulatory body having 57.20 jurisdiction in the matter. 57.21 (f) The net earnings of a corporation for the purpose of 57.22 this subdivision shall be the balance obtained by deducting from 57.23 its gross operating revenues its operating and maintenance 57.24 expenses, taxes, other than federal and state income taxes, 57.25 rentals, depreciation and provision, for renewals and 57.26 retirements of the physical assets of the corporation, and by 57.27 adding to said balance its income from securities and 57.28 miscellaneous sources, but not, however, to exceed 15 percent of 57.29 said balance. The term "funded debt" shall be construed to mean 57.30 all interest-bearing debt excepting therefrom unsecured 57.31 obligations maturing within one year of date of issue. 57.32 (g) Such bonds must be a part of an original issue or of a 57.33 subsequent series of bonds of the aggregate amount of not less 57.34 than $5,000,000, both the original issue and the subsequent 57.35 series being protected by the same mortgage provisions, and must 57.36 be secured by a first or refunding mortgage, and the aggregate 58.1 principal amount of bonds secured by such first or refunding 58.2 mortgage plus the principal amount of all the underlying 58.3 outstanding bonds shall not exceed 60 percent of the value of 58.4 the property, real and personal, owned absolutely as shown by 58.5 the books of the corporation and subject to the lien of such 58.6 mortgage, provided that if a refunding mortgage, it must provide 58.7 for the retirement of all bonds secured by prior liens on the 58.8 property. Not more than 33-1/3 percent of the property 58.9 constituting the specific security for such bonds may consist of 58.10 stock or unsecured obligations of affiliated or other telephone 58.11 companies, or both. No such savings banks shall loan upon or 58.12 invest in bonds of such telephone companies in an amount 58.13 exceeding in the aggregate ten percent of its deposits and 58.14 surplus, nor exceeding five percent thereof in the bonds of any 58.15 one telephone company. 58.16 Sec. 2. Minnesota Statutes 2002, section 85.015, 58.17 subdivision 4, is amended to read: 58.18 Subd. 4. [DOUGLAS TRAIL, OLMSTED, WABASHA, AND GOODHUE 58.19 COUNTIES.] (a) The trail shall originate at Rochester in Olmsted 58.20 county and shall follow the route of the Chicago Great Western 58.21 Railroad to Pine Island in Goodhue county and there terminate. 58.22 (b) Additional trails may be established that extend the 58.23 Douglas trail system to include Pine Island, Mazeppa in Wabasha 58.24 county to Zumbrota, Bellechester, Goodhue, and Red Wing in 58.25 Goodhue county. In addition to the criteria in section 86A.05, 58.26 subdivision 4, these trails must utilize abandoned railroad 58.27 rights-of-way where possible. 58.28 (c) The trail shall be developed primarily for riding and 58.29 hiking. 58.30 (d) Under no circumstances shall the commissioner acquire 58.31 any of the right-of-way of the Chicago Great Western Railroad 58.32 until the abandonment of the line of railway described in this 58.33 subdivision has been approved by the Surface Transportation 58.34 Board or the former Interstate Commerce Commission. 58.35 Sec. 3. Minnesota Statutes 2002, section 85.015, 58.36 subdivision 10, is amended to read: 59.1 Subd. 10. [LUCE LINE TRAIL.] (a) The trail shall originate 59.2 at Gleason Lake in Plymouth Village, Hennepin county, and shall 59.3 follow the route of the Chicago Northwestern Railroad. 59.4 (b) The trail shall be developed for multiuse wherever 59.5 feasible. The department shall cooperate in maintaining its 59.6 integrity for modes of use consistent with local ordinances. 59.7 (c) In establishing, developing, maintaining, and operating 59.8 the trail, the commissioner shall cooperate with local units of 59.9 government and private individuals and groups. Before acquiring 59.10 any parcel of land for the trail, the commissioner of natural 59.11 resources shall develop a management program for the parcel and 59.12 conduct a public hearing on the proposed management program in 59.13 the vicinity of the parcel to be acquired. The management 59.14 program of the commissioner shall include but not be limited to 59.15 the following: (a) fencing of portions of the trail where 59.16 necessary to protect adjoining landowners; and (b) the 59.17 maintenance of the trail in a litter free condition to the 59.18 extent practicable. 59.19 (d) The commissioner shall not acquire any of the 59.20 right-of-way of the Chicago Northwestern Railway Company until 59.21 the abandonment of the line described in this subdivision has 59.22 been approved by the Surface Transportation Board or the former 59.23 Interstate Commerce Commission. Compensation, in addition to 59.24 the value of the land, shall include improvements made by the 59.25 railroad, including but not limited to, bridges, trestles, 59.26 public road crossings, or any portion thereof, it being the 59.27 desire of the railroad that such improvements be included in the 59.28 conveyance. The fair market value of the land and improvements 59.29 shall be recommended by two independent appraisers mutually 59.30 agreed upon by the parties. The fair market value thus 59.31 recommended shall be reviewed by a review appraiser agreed to by 59.32 the parties, and the fair market value thus determined, and 59.33 supported by appraisals, may be the purchase price. The 59.34 commissioner may exchange lands with landowners abutting the 59.35 right-of-way described in this section to eliminate diagonally 59.36 shaped separate fields. 60.1 Sec. 4. Minnesota Statutes 2002, section 85.20, 60.2 subdivision 6, is amended to read: 60.3 Subd. 6. [LITTERING; PENALTY.] (a) No person shall drain, 60.4 throw, or deposit upon the lands and waters within a state park 60.5 any substance, including cigarette filters, that would mar the 60.6 appearance, create a stench, destroy the cleanliness or safety 60.7 of the land, or would be likely to injure any animal, vehicle, 60.8 or person traveling upon those lands and waters. The operator 60.9 of a vehicle or watercraft, except a school bus or a vehicle 60.10 transporting passengers for hire and regulated by a successor 60.11 agency of the former Interstate Commerce Commission, shall not 60.12 permit articles to be thrown or discarded from the vehicle upon 60.13 any lands or waters within a state park. 60.14 (b) Violation of this subdivision is a misdemeanor. Any 60.15 person sentenced under this subdivision shall in lieu of the 60.16 sentence imposed be permitted, under terms established by the 60.17 court, to work under the direction of the department of natural 60.18 resources at clearing rubbish, trash, and debris from any state 60.19 park. The court may for any violation of this subdivision order 60.20 the offender to perform such work under terms established by the 60.21 court with the option of a jail sentence being imposed. 60.22 (c) In lieu of enforcement under paragraph (b), this 60.23 subdivision may be enforced by imposition of a civil penalty and 60.24 an action for damages for littering under section 115A.99. 60.25 Sec. 5. Minnesota Statutes 2002, section 168.013, 60.26 subdivision 1e, is amended to read: 60.27 Subd. 1e. [TRUCK; TRACTOR; COMBINATION; EXCEPTIONS.] (a) 60.28 On trucks and tractors except those in this chapter defined as 60.29 farm trucks, on truck-tractor and semitrailer combinations 60.30 except those defined as farm combinations, and on commercial 60.31 zone vehicles, the tax based on total gross weight shall be 60.32 graduated according to the Minnesota base rate schedule 60.33 prescribed in this subdivision, but in no event less than $120. 60.34 Minnesota Base Rate Schedule 60.35 Scheduled taxes include five percent 60.36 surtax provided for in subdivision 14 61.1 TOTAL GROSS WEIGHT 61.2 IN POUNDS TAX 61.3 A 0 - 1,500 $ 15 61.4 B 1,501 - 3,000 20 61.5 C 3,001 - 4,500 25 61.6 D 4,501 - 6,000 35 61.7 E 6,001 - 9,000 45 61.8 F 9,001 - 12,000 70 61.9 G 12,001 - 15,000 105 61.10 H 15,001 - 18,000 145 61.11 I 18,001 - 21,000 190 61.12 J 21,001 - 26,000 270 61.13 K 26,001 - 33,000 360 61.14 L 33,001 - 39,000 475 61.15 M 39,001 - 45,000 595 61.16 N 45,001 - 51,000 715 61.17 O 51,001 - 57,000 865 61.18 P 57,001 - 63,000 1015 61.19 Q 63,001 - 69,000 1185 61.20 R 69,001 - 73,280 1325 61.21 S 73,281 - 78,000 1595 61.22 T 78,001 - 81,000 1760 61.23 (b) For purposes of the Minnesota base rate schedule, for 61.24 vehicles with six or more axles in the "S" and "T" categories, 61.25 the base rates are $1,520 and $1,620 respectively. 61.26 (c) For each vehicle with a gross weight in excess of 61.27 81,000 pounds an additional tax of $50 is imposed for each ton 61.28 or fraction thereof in excess of 81,000 pounds, subject to 61.29 subdivision 12. 61.30 (d) Truck-tractors except those herein defined as farm and 61.31 commercial zone vehicles shall be taxed in accord with the 61.32 foregoing gross weight tax schedule on the basis of the combined 61.33 gross weight of the truck-tractor and any semitrailer or 61.34 semitrailers which the applicant proposes to combine with the 61.35 truck-tractor. 61.36 (e) Commercial zone trucks include only trucks, 62.1 truck-tractors, and semitrailer combinations which are: 62.2 (1) used by an authorized local cartage carrier operating 62.3 under a permit issued under section 221.296 and whose gross 62.4 transportation revenue consists of at least 60 percent obtained 62.5 solely from local cartage carriage, and are operated solely 62.6 within an area composed of two contiguous cities of the first 62.7 class and municipalities contiguous thereto as defined by 62.8 section 221.011, subdivision 17; or 62.9 (2) operated by an interstate carrier registered under 62.10 section 221.60, or by an authorized local cartage carrier or 62.11 other carrier receiving operating authority under chapter 221, 62.12 and operated solely within a zone exempt from regulation by the62.13 interstate commerce commissionpursuant to United States Code, 62.14 title 49, section 10526(b)13506. 62.15 (f) The license plates issued for commercial zone vehicles 62.16 shall be plainly marked. A person operating a commercial zone 62.17 vehicle outside the zone or area in which its operation is 62.18 authorized is guilty of a misdemeanor and, in addition to the 62.19 penalty therefor, shall have the registration of the vehicle as 62.20 a commercial zone vehicle revoked by the registrar and shall be 62.21 required to reregister the vehicle at 100 percent of the full 62.22 annual tax prescribed in the Minnesota base rate schedule, and 62.23 no part of this tax shall be refunded during the balance of the 62.24 registration year. 62.25 (g) On commercial zone trucks the tax shall be based on the 62.26 total gross weight of the vehicle and during each of the first 62.27 eight years of vehicle life shall be 75 percent of the Minnesota 62.28 base rate schedule. During the ninth and succeeding years of 62.29 vehicle life the tax shall be 50 percent of the Minnesota base 62.30 rate schedule. 62.31 (h) On trucks, truck-tractors and semitrailer combinations, 62.32 except those defined as farm trucks and farm combinations, and 62.33 except for those commercial zone vehicles specifically provided 62.34 for in this subdivision, the tax for each of the first eight 62.35 years of vehicle life shall be 100 percent of the tax imposed in 62.36 the Minnesota base rate schedule, and during the ninth and 63.1 succeeding years of vehicle life, the tax shall be 75 percent of 63.2 the Minnesota base rate prescribed by this subdivision. 63.3 (i) For the purpose of registration, trailers coupled with 63.4 a truck-tractor, semitrailer combination are semitrailers. 63.5 Sec. 6. Minnesota Statutes 2002, section 168.61, 63.6 subdivision 1, is amended to read: 63.7 Subdivision 1. [DEFINITION.] The term "intercity bus" as 63.8 used in sections 168.61 to 168.65 means a motor bus as defined 63.9 in section 168.011, subdivision 9, which is owned or operated by 63.10 either a resident or nonresident of Minnesota in interstate 63.11 commerce under authority of the former Interstate Commerce 63.12 Commission, or a successor agency, or in combined interstate and 63.13 intrastate commerce under authority of the former Interstate 63.14 Commerce Commission, or a successor agency, and the department 63.15 of transportation of Minnesota, as a result of which operation 63.16 such bus operates both within and without the territorial limits 63.17 of the state of Minnesota. 63.18 Sec. 7. Minnesota Statutes 2002, section 221.0251, 63.19 subdivision 1, is amended to read: 63.20 Subdivision 1. [REGISTRATION STATEMENT.] (a) A person who 63.21 wishes to operate as a motor carrier of property shall file a 63.22 complete and accurate registration statement with the 63.23 commissioner. 63.24 (b) A registration statement must be on a form provided by 63.25 the commissioner and include: 63.26 (1) the registrant's name, including an assumed or 63.27 fictitious name used by the registrant in doing business; 63.28 (2) the registrant's mailing address and business telephone 63.29 number; 63.30 (3) the registrant's federal Employer Identification Number 63.31 and Minnesota Business Identification Number and the 63.32 identification numbers, if any, assigned to the registrant by 63.33 the United States Department of Transportation, the former 63.34 Interstate Commerce Commission, or the Environmental Protection 63.35 Agency; 63.36 (4) the name, title, and telephone number of the individual 64.1 who is principally responsible for the operation of the 64.2 registrant's transportation business; 64.3 (5) the principal location from which the registrant 64.4 conducts its transportation business and where the records 64.5 required by this chapter will be kept; 64.6 (6) if different from clause (5), the location in Minnesota 64.7 where the records required by this chapter will be available for 64.8 inspection and copying by the commissioner; 64.9 (7) whether the registrant transports hazardous materials 64.10 or hazardous waste; 64.11 (8) whether the registrant's business is a corporation, 64.12 partnership, limited liability partnership, limited liability 64.13 company, or sole proprietorship; and 64.14 (9) if the registrant is a foreign corporation authorized 64.15 to transact business in Minnesota, the state of incorporation 64.16 and the name and address of its registered agent. 64.17 Sec. 8. Minnesota Statutes 2002, section 221.60, 64.18 subdivision 1, is amended to read: 64.19 Subdivision 1. [PROCEDURE.] A motor carrier may transport 64.20 persons or property for hire in interstate commerce in Minnesota 64.21 only if it first: 64.22 (1) complies with section 221.141; 64.23 (2) either registers with the commissioner the Interstate64.24 Commerce Commissionfederal operating authority that it intends 64.25 to exercise, or registers and describes the transportation it 64.26 performs under an exemption contained in the Interstate Commerce64.27 Act,United States Code, title 49; and 64.28 (3) purchases an interstate identification stamp or an 64.29 interstate registration trip permit for each vehicle to be used 64.30 in interstate transportation in Minnesota. 64.31 Sec. 9. Minnesota Statutes 2002, section 221.601, 64.32 subdivision 1, is amended to read: 64.33 Subdivision 1. [AUTHORITY.] The commissioner may enter 64.34 into agreements with representatives of other states to allow 64.35 the cooperative registration of motor carriers transporting 64.36 property or passengers for hire in interstate commerce. The 65.1 agreement may authorize representatives of other states to issue 65.2 interstate registration stamps and trip permits; accept the 65.3 filing of insurance certificates, insurance cancellation 65.4 notices, and orders of the former Interstate Commerce Commission 65.5 ordersor a successor agency; issue suspension and reinstatement 65.6 orders or notices; and collect and disburse fees prescribed by 65.7 this chapter. The agreement may allow the exchange of 65.8 information for audit, reporting, and enforcement purposes, and 65.9 the collection and disbursement of fees provided under this 65.10 chapter and the laws of other states that participate in the 65.11 agreement. The agreement and all amendments must be in 65.12 writing. The agreement may provide for the gradual adoption of 65.13 a base state registration system. It may provide that a motor 65.14 carrier based in another state participating in the agreement, 65.15 that has filed evidence of financial responsibility in that 65.16 state that meets the requirements of this chapter and of the 65.17 agreement, need not file evidence of financial responsibility 65.18 with the commissioner for its interstate operations in this 65.19 state. 65.20 Sec. 10. Minnesota Statutes 2002, section 221.602, 65.21 subdivision 1, is amended to read: 65.22 Subdivision 1. [PROCEDURE; NONEXEMPT CARRIER.] A motor 65.23 carrier subject to the jurisdiction of the Interstate Commerce65.24 CommissionU.S. Department of Transportation or Surface 65.25 Transportation Board under United States Code, title 49, chapter 65.26 105135, subchapter III, with its principal place of business 65.27 in Minnesota or that designates Minnesota as its base state, may 65.28 transport persons or property for hire in Minnesota only if it 65.29 first complies with the insurance and registration regulations 65.30 adopted by the Interstate Commerce Commission or a successor 65.31 agency under United States Code, title 49, section 14504 or 65.32 former section 11506. The registration fee is $5; however, a 65.33 lesser fee may be collected pursuant to a reciprocal agreement 65.34 authorized by section 221.65. A motor carrier shall pay a 65.35 service charge of 45 cents for each registration receipt issued 65.36 in addition to the fee required by this subdivision. 66.1 Sec. 11. Minnesota Statutes 2002, section 221.602, 66.2 subdivision 2, is amended to read: 66.3 Subd. 2. [PROCEDURE; EXEMPT CARRIER.] (a) A motor carrier 66.4 that is exempt from thefederal jurisdiction of the Interstate66.5 Commerce Commissionunder the Interstate Commerce Act,United 66.6 States Code, title 49, may transport persons or property for 66.7 hire in interstate commerce in Minnesota only if it first: 66.8 (1) complies with section 221.141; 66.9 (2) registers and describes the transportation it performs 66.10 under an exemption contained in the Interstate Commerce Act,66.11 United States Code, title 49; and 66.12 (3) pays the fee required in subdivision 1. 66.13 (b) A motor carrier that complies with subdivision 1 is not 66.14 also required to comply with this subdivision. 66.15 Sec. 12. Minnesota Statutes 2002, section 221.602, 66.16 subdivision 3, is amended to read: 66.17 Subd. 3. [REGISTRATION PERIOD.] The registration period is 66.18 that provided by the Interstate Commerce Commissionin 66.19 rulesregulations adopted under United States Code, title 49, 66.20 section 14504 or former section 11506. 66.21 Sec. 13. Minnesota Statutes 2002, section 222.63, 66.22 subdivision 1, is amended to read: 66.23 Subdivision 1. [DEFINITIONS.] The terms defined in section 66.24 222.48 have the same meanings when used in this section. Other 66.25 terms used in this section have the following meanings: 66.26 (a) "Abandoned," when used with reference to a rail line or 66.27 right-of-way, means a line or right-of-way with respect to which 66.28 the interstate commerce commissionSurface Transportation Board 66.29 or other responsible federal regulatory agency has permitted 66.30 discontinuance of rail service; 66.31 (b) "Right-of-way" means any real property, including any 66.32 interest in the real property that is or has been owned by a 66.33 railroad company as the site, or is adjacent to the site, of an 66.34 existing or former rail line; 66.35 (c) "State rail bank" means abandoned rail lines and 66.36 right-of-way acquired by the commissioner of transportation 67.1 pursuant to this section. 67.2 Sec. 14. Minnesota Statutes 2002, section 222.63, 67.3 subdivision 6, is amended to read: 67.4 Subd. 6. [INTERVENTION IN ABANDONMENT PROCEEDING.] The 67.5 commissioner may intervene in a proceeding of the interstate67.6 commerce commissionSurface Transportation Board on the issue of 67.7 suitability for a public use of a rail line proposed to be 67.8 abandoned if the commissioner finds that the right-of-way of the 67.9 line would be eligible for inclusion in the state rail bank. To 67.10 the extent practicable before intervening as provided in this 67.11 section the commissioner shall hold at least one public meeting 67.12 in the area in which the line is located to solicit opinions of 67.13 interested persons concerning the commissioner's proposed action. 67.14 Sec. 15. Minnesota Statutes 2002, section 222.86, 67.15 subdivision 1, is amended to read: 67.16 Subdivision 1. [NOTICE OF EXEMPT TRANSACTION.] An 67.17 acquiring carrier shall submit written notification to the 67.18 attorney general and the commissioner of transportation of their67.19 its intent to initiate an exempt transaction under Code of 67.20 Federal Regulations, title 49, sectionpart 1150, at least 14 67.21 days before filing a notice of exemption with the Interstate67.22 Commerce CommissionSurface Transportation Board. 67.23 Sec. 16. Minnesota Statutes 2002, section 222.86, 67.24 subdivision 3, is amended to read: 67.25 Subd. 3. [APPLICABILITY TO REQUIREMENTS OF LAW.] Acquiring 67.26 and divesting carriers shall attend conferences with the 67.27 attorney general or the commissioner of transportation prior to 67.28 filing a notice of exemption with the Interstate Commerce67.29 CommissionSurface Transportation Board. The divesting and 67.30 acquiring carriers shall respond to questions and requests for 67.31 information related to the issue of whether the proposed 67.32 transaction is consistent with the requirements of 67.33 the Interstate Commerce ActSurface Transportation Board, other 67.34 applicable federal law, and state law. Copies of the sale 67.35 contract, market and feasibility studies, and full financial 67.36 information as to the acquiring carrier must be provided at 68.1 those conferences. 68.2 All information, submitted by the acquiring and divesting 68.3 carriers as confidential, shall remain nonpublic data and 68.4 private data on individuals in accordance with chapter 13 and 68.5 shall not be divulged to any outside parties, except to the 68.6 Interstate Commerce CommissionSurface Transportation Board as a 68.7 part of a filing in relation to the proposed transaction. The 68.8 attorney general and the commissioner of transportation shall 68.9 take the necessary steps to assure confidentiality. 68.10 Sec. 17. Minnesota Statutes 2002, section 299F.40, 68.11 subdivision 1, is amended to read: 68.12 Subdivision 1. [PUBLIC POLICY.] It is the intent of the 68.13 Minnesota legislature to protect the public welfare and promote 68.14 safety in the filling and use of pressure vessels containing 68.15 liquefied petroleum or industrial gases through implementing 68.16 boththe regulations of the Interstate Commerce Commission 68.17 regulationsor successor agency, within the state of Minnesota, 68.18 the rules of the Minnesota state fire marshal, and the national 68.19 standards of safety on the filling of these containers. It is 68.20 deemed necessary to insure that containers properly constructed 68.21 and tested be used and that only liquefied petroleum or 68.22 industrial gases of suitable and safe vapor pressure be placed 68.23 in these containers. To attain this end the filling or 68.24 refilling of liquefied petroleum and industrial gas containers 68.25 by other than the owner or authorized person must be controlled 68.26 and specific authority to prevent violation and encourage 68.27 enforcement be established. 68.28 Sec. 18. Minnesota Statutes 2002, section 398A.04, 68.29 subdivision 4, is amended to read: 68.30 Subd. 4. [EMINENT DOMAIN.] The authority shall have all 68.31 powers granted to a political subdivision in chapter 117 for the 68.32 acquisition of property for a public purpose, except that it 68.33 shall have no power of eminent domain with respect to property 68.34 owned by another authority or political subdivision of Minnesota 68.35 or any other state, or with respect to property owned or used by 68.36 a railroad corporation unless the Interstate Commerce Commission 69.1 or a successor agency, if any, or another authority with power 69.2 to make the finding, has found that the public convenience and 69.3 necessity permit discontinuance of rail service on the 69.4 property. All property taken for the exercise of the powers 69.5 granted herein is declared to be taken for a public governmental 69.6 purpose and as a matter of public necessity. 69.7 Sec. 19. Minnesota Statutes 2002, section 469.057, 69.8 subdivision 1, is amended to read: 69.9 Subdivision 1. [REGULATION.] Unless otherwise provided by 69.10 law, all laws now or hereafter vesting jurisdiction or control 69.11 in the department of public service or a successor agency of the 69.12 state of Minnesota, in the Interstate Commerce Commission or a 69.13 successor agency, if any, or Department of Defense of the United 69.14 States, or in similar regulatory bodies shall apply to any 69.15 transportation, terminal, or other facility owned, operated, 69.16 leased, or controlled by the port authority with the same force 69.17 and effect as if the transportation, terminal, or other facility 69.18 were owned, operated, leased, or controlled by a private 69.19 corporation. 69.20 ARTICLE 5 69.21 OBSOLETE MUNICIPAL BOARD REFERENCES 69.22 AND RELATED CHAPTER 414 PROVISIONS 69.23 Section 1. Minnesota Statutes 2002, section 4A.02, is 69.24 amended to read: 69.25 4A.02 [STATE DEMOGRAPHER.] 69.26 (a) The director shall appoint a state demographer. The 69.27 demographer must be professionally competent in demography and 69.28 must possess demonstrated ability based upon past performance. 69.29 (b) The demographer shall: 69.30 (1) continuously gather and develop demographic data 69.31 relevant to the state; 69.32 (2) design and test methods of research and data 69.33 collection; 69.34 (3) periodically prepare population projections for the 69.35 state and designated regions and periodically prepare 69.36 projections for each county or other political subdivision of 70.1 the state as necessary to carry out the purposes of this 70.2 section; 70.3 (4) review, comment on, and prepare analysis of population 70.4 estimates and projections made by state agencies, political 70.5 subdivisions, other states, federal agencies, or nongovernmental 70.6 persons, institutions, or commissions; 70.7 (5) serve as the state liaison with the United States 70.8 Bureau of the Census, coordinate state and federal demographic 70.9 activities to the fullest extent possible, and aid the 70.10 legislature in preparing a census data plan and form for each 70.11 decennial census; 70.12 (6) compile an annual study of population estimates on the 70.13 basis of county, regional, or other political or geographical 70.14 subdivisions as necessary to carry out the purposes of this 70.15 section and section 4A.03; 70.16 (7) by January 1 of each year, issue a report to the 70.17 legislature containing an analysis of the demographic 70.18 implications of the annual population study and population 70.19 projections; 70.20 (8) prepare maps for all counties in the state, all 70.21 municipalities with a population of 10,000 or more, and other 70.22 municipalities as needed for census purposes, according to scale 70.23 and detail recommended by the United States Bureau of the 70.24 Census, with the maps of cities showing precinct boundaries; 70.25 (9) prepare an estimate of population and of the number of 70.26 households for each governmental subdivision for which the 70.27 metropolitan council does not prepare an annual estimate, and 70.28 convey the estimates to the governing body of each political 70.29 subdivision by May 1 of each year; 70.30 (10) direct, under section 414.01, subdivision 14, and 70.31 certify population and household estimates of annexed or 70.32 detached areas of municipalities or towns after being notified 70.33 of the order or letter of approval by the Minnesota municipal70.34 boarddirector; and 70.35 (11) prepare, for any purpose for which a population 70.36 estimate is required by law or needed to implement a law, a 71.1 population estimate of a municipality or town whose population 71.2 is affected by action under section 379.02 or 414.01, 71.3 subdivision 14. 71.4 (c) A governing body may challenge an estimate made under 71.5 paragraph (b) by filing their specific objections in writing 71.6 with the state demographer by June 10. If the challenge does 71.7 not result in an acceptable estimate by June 24, the governing 71.8 body may have a special census conducted by the United States 71.9 Bureau of the Census. The political subdivision must notify the 71.10 state demographer by July 1 of its intent to have the special 71.11 census conducted. The political subdivision must bear all costs 71.12 of the special census. Results of the special census must be 71.13 received by the state demographer by the next April 15 to be 71.14 used in that year's May 1 estimate to the political subdivision 71.15 under paragraph (b). 71.16 Sec. 2. Minnesota Statutes 2002, section 14.03, 71.17 subdivision 2, is amended to read: 71.18 Subd. 2. [CONTESTED CASE PROCEDURES.] The contested case 71.19 procedures of the Administrative Procedure Act provided in 71.20 sections 14.57 to 14.69 do not apply to (a) the Minnesota71.21 municipal boardproceedings under chapter 414, except as 71.22 specified in that chapter, (b) the commissioner of corrections, 71.23 (c) the unemployment insurance benefits program and the social 71.24 security disability determination program in the department of 71.25 economic security, (d) the commissioner of mediation services, 71.26 (e) the workers' compensation division in the department of 71.27 labor and industry, (f) the workers' compensation court of 71.28 appeals, or (g) the board of pardons. 71.29 Sec. 3. Minnesota Statutes 2002, section 40A.121, is 71.30 amended to read: 71.31 40A.121 [ANNEXATION PROCEEDINGS.] 71.32 Subdivision 1. [ANNEXATION PROHIBITED.] Land within an 71.33 agricultural preserve that is within a township may not be 71.34 annexed to a municipality under chapter 414, unless the 71.35 Minnesota municipal boarddirector of the office of strategic 71.36 and long-range planning finds that either: 72.1 (1) the owner or the county has initiated termination of 72.2 the zone under section 40A.11; 72.3 (2) because of size, tax base, population or other relevant 72.4 factors, the township would not be able to provide normal 72.5 governmental functions and services; or 72.6 (3) the zone would be completely surrounded by lands within 72.7 a municipality. 72.8 Subd. 2. [EXCEPTION.] This section does not apply to 72.9 annexation agreements approved by the Minnesota municipal board72.10 under chapter 414 prior to creation of the zone. 72.11 Sec. 4. Minnesota Statutes 2002, section 272.67, 72.12 subdivision 1, is amended to read: 72.13 Subdivision 1. Any city however organized, except in those 72.14 counties situated in a metropolitan area as defined in Minnesota 72.15 Statutes 1961, Section 473.02, Subdivision 5, which contain 72.16 cities of the first class, may by ordinance adopted in the 72.17 manner provided in this section divide its area into an urban 72.18 service district and a rural service district, constituting 72.19 separate taxing districts for the purpose of all municipal 72.20 property taxes except those levied for the payment of bonds and 72.21 judgments and interest thereon. In proceedings for annexation, 72.22 incorporation, or consolidation being conducted pursuant to 72.23 chapter 414, the Minnesota municipal boarddirector of the 72.24 office of strategic and long-range planning may by orderdivide 72.25 a municipality into an urban service district and a rural 72.26 service district, such districts to be designated by the board72.27 in accordance with the criteria set out in subdivision 2. 72.28 Thereafter, said urban service district and rural service 72.29 district may be changed in the same manner that an ordinance or 72.30 amendment is changed in accordance with this section. 72.31 Sec. 5. Minnesota Statutes 2002, section 276A.09, is 72.32 amended to read: 72.33 276A.09 [CHANGE IN STATUS OF MUNICIPALITY.] 72.34 If a municipality is dissolved, is consolidated with all or 72.35 part of another municipality, annexes territory, has a portion 72.36 of its territory detached from it, or is newly incorporated, the 73.1 secretary of state shall immediately certify that fact to the 73.2 commissioner of revenue. The secretary of state shall also 73.3 certify to the commissioner of revenue the current population of 73.4 the new, enlarged, or successor municipality, if determined by 73.5 the Minnesota municipal boarddirector of the office of 73.6 strategic and long-range planning incident to consolidation, 73.7 annexation, or incorporation proceedings. The population so 73.8 certified shall govern for purposes of sections 276A.01 to 73.9 276A.09 until the state demographer files the first population 73.10 estimate as of a later date with the commissioner of revenue. 73.11 If an annexation of unincorporated land occurs without 73.12 proceedings before the Minnesota municipal boarddirector of the 73.13 office of strategic and long-range planning, the population of 73.14 the annexing municipality as previously determined shall 73.15 continue to govern for purposes of sections 276A.01 to 276A.09 73.16 until the state demographer files the first population estimate 73.17 as of a later date with the commissioner of revenue. 73.18 Sec. 6. Minnesota Statutes 2002, section 365.46, 73.19 subdivision 2, is amended to read: 73.20 Subd. 2. [COPIES.] The county auditor shall also send a 73.21 copy of the notice of the dissolution to: (1) the state 73.22 demographer, (2) the land management information center, (3) the 73.23 Minnesota municipal boarddirector of the office of strategic 73.24 and long-range planning, and (4) the commissioner of 73.25 transportation. 73.26 Sec. 7. Minnesota Statutes 2002, section 379.05, is 73.27 amended to read: 73.28 379.05 [AUDITOR TO ABSTRACT REPORT FOR AGENCIES, ENTER TOWN 73.29 RECORD.] 73.30 Each county auditor shall within 30 days after any such 73.31 town is organized transmit by mail to the commissioner of 73.32 revenue, the secretary of state, the state demographer, the land 73.33 management information center, the Minnesota municipal board73.34 director of the office of strategic and long-range planning, and 73.35 the commissioner of transportation an abstract of such report, 73.36 giving the name and boundaries of such town and record in a book 74.1 kept for that purpose a full description of each such town. 74.2 Sec. 8. Minnesota Statutes 2002, section 412.021, 74.3 subdivision 1, is amended to read: 74.4 Subdivision 1. [ELECTION.] Upon the filing of the 74.5 certificate with the secretary of state, if the vote is in favor 74.6 of incorporation, the judges of election appointed by the 74.7 Minnesota municipal boarddirector of the office of strategic 74.8 and long-range planning or the county board as the case may be, 74.9 shall fix a day at least 15 and not more than 30 days thereafter 74.10 and a place for the holding of an election for officers. The 74.11 judges shall also fix the time, not less than three hours, 74.12 during which the polls shall remain open at the election and 74.13 shall post a notice setting forth the time and place of such 74.14 election in three public places in the city for at least ten 74.15 days preceding the election. 74.16 Sec. 9. Minnesota Statutes 2002, section 412.091, is 74.17 amended to read: 74.18 412.091 [DISSOLUTION.] 74.19 Whenever a number of voters equal to one-third of those 74.20 voting at the last preceding city election petition the 74.21 municipal boarddirector of the office of strategic and 74.22 long-range planning therefor, a special election shall be called 74.23 to vote upon the question of dissolving the city. Before the 74.24 election, the executive director of the boarddirector shall 74.25 designate a time and place for a hearing before the boardin 74.26 accordance with section 414.09. After the hearing the boardthe 74.27 director shall issue itsan order which shall include a date for 74.28 the election, a determination of what town or towns the 74.29 territory of the city shall belong to if the voters favor 74.30 dissolution, and other necessary provisions. The ballots used 74.31 at such election shall bear the printed words, "For Dissolution" 74.32 and "Against Dissolution," with a square before each phrase in 74.33 which the voter may express a preference by a cross. If a 74.34 majority of those voting on the question favor dissolution, the 74.35 clerk shall file a certificate of the result with the municipal74.36 boarddirector, the secretary of state and the county auditor of 75.1 the county in which the city is situated. Six months after the 75.2 date of such election, the city shall cease to exist. Within 75.3 such six months, the council shall audit all claims against the 75.4 city, settle with the treasurer, and other city officers, and 75.5 apply the assets of the city to the payment of its debts. If 75.6 any debts remain unpaid, other than bonds, the city clerk shall 75.7 file a schedule of such debts with the county treasurer and the 75.8 council shall levy a tax sufficient for their payment, the 75.9 proceeds of which, when collected, shall be paid by the county 75.10 treasurer to the creditors in proportion to their several claims 75.11 until all are discharged. The principal and interest on 75.12 outstanding bonds shall be paid when due by the county treasurer 75.13 from a tax annually spread by the county auditor against 75.14 property formerly included within the city until the bonds are 75.15 fully paid. All city property and all rights of the city shall, 75.16 upon dissolution, inure in the town or towns designated by the75.17 boardas the legal successor to the city. If the city territory 75.18 goes to more than one town, surplus cash assets and unsold city 75.19 property shall be distributed as provided by the boardorder for 75.20 the election. 75.21 Sec. 10. Minnesota Statutes 2002, section 414.09, 75.22 subdivision 3, is amended to read: 75.23 Subd. 3. [ELECTIONS OF MUNICIPAL OFFICERS.] (a) An order 75.24 approving an incorporation or consolidation pursuant to this 75.25 chapter, or an order requiring an election under section 75.26 414.031, subdivision 4a, shall set a date for thisan election 75.27 of new municipal officers not less than 45 days nor more than 60 75.28 days after the issuance of such order. 75.29 (b) The director shall appoint an acting clerk for election 75.30 purposes, at least three election judges who shall be residents 75.31 of the new municipality, and shall designate polling places 75.32 within the new municipality. 75.33 (c) The acting clerk shall prepare the official election 75.34 ballot. 75.35 (d) Affidavits of candidacy may be filed byAny person 75.36 eligible to hold municipal office may file an affidavit of 76.1 candidacy not more than four weeks nor less than two weeks 76.2 before the date designated in the order for the election. 76.3 (e) The election shall be conducted in conformity with the 76.4 charter and the laws for conducting municipal elections insofar 76.5 as applicable. 76.6 (f) Any person eligible to vote at a township or municipal 76.7 election within the area of the new municipality, is eligible to 76.8 vote at such election. 76.9 (g) Any excess in the expense of conducting the election 76.10 over receipts from filing fees shall be a charge against the new 76.11 municipality; any excess of receipts shall be deposited in the 76.12 treasury of the new municipality. 76.13 Sec. 11. Minnesota Statutes 2002, section 473.129, 76.14 subdivision 5, is amended to read: 76.15 Subd. 5. [LOCAL GOVERNMENTAL PARTICIPATION.] The 76.16 metropolitan council may (1) participate as a party in any 76.17 proceedings originating before the Minnesota municipal board76.18 under chapter 414, if the proceedings involve the change in a 76.19 boundary of a governmental unit in the metropolitan area, and (2) 76.20 conduct studies of the feasibility of annexing, enlarging, or 76.21 consolidating units in the metropolitan area. 76.22 Sec. 12. Minnesota Statutes 2002, section 473F.13, 76.23 subdivision 1, is amended to read: 76.24 Subdivision 1. [CERTIFICATION OF CHANGE IN STATUS.] If a 76.25 municipality is dissolved, is consolidated with all or part of 76.26 another municipality, annexes territory, has a portion of its 76.27 territory detached from it, or is newly incorporated, the 76.28 secretary of state shall immediately certify that fact to the 76.29 commissioner of revenue. The secretary of state shall also 76.30 certify to the commissioner of revenue the current population of 76.31 the new, enlarged, or successor municipality, if determined by 76.32 the Minnesota municipal boarddirector of the office of 76.33 strategic and long-range planning incident to consolidation, 76.34 annexation, or incorporation proceedings. The population so 76.35 certified shall govern for purposes of sections 473F.01 to 76.36 473F.13 until the metropolitan council files its first 77.1 population estimate as of a later date with the commissioner of 77.2 revenue. If an annexation of unincorporated land occurs without 77.3 proceedings before the Minnesota municipal boarddirector, the 77.4 population of the annexing municipality as previously determined 77.5 shall continue to govern for purposes of sections 473F.01 to 77.6 473F.13 until the metropolitan council files its first 77.7 population estimate as of a later date with the commissioner of 77.8 revenue. 77.9 Sec. 13. Minnesota Statutes 2002, section 473H.14, is 77.10 amended to read: 77.11 473H.14 [ANNEXATION PROCEEDINGS.] 77.12 Agricultural preserve land within a township shall not be 77.13 annexed to a municipality pursuant to chapter 414, without a 77.14 specific finding by the Minnesota municipal boarddirector of 77.15 the office of strategic and long-range planning that either (a) 77.16 the expiration period as provided for in section 473H.08 has 77.17 begun; (b) the township due to size, tax base, population or 77.18 other relevant factors would not be able to provide normal 77.19 governmental functions and services; or (c) the agricultural 77.20 preserve would be completely surrounded by lands within a 77.21 municipality. 77.22 This section shall not apply to annexation agreements 77.23 approved by the Minnesota municipal boardunder proceedings 77.24 authorized by chapter 414 prior to creation of the preserve. 77.25 Sec. 14. Minnesota Statutes 2002, section 572A.015, 77.26 subdivision 2, is amended to read: 77.27 Subd. 2. [MEDIATION.] Within ten days of receiving a 77.28 request for mediation that the director of the office of 77.29 strategic and long-range planning has required under section 77.30 414.12, subdivision 1, the bureau shall provide written notice 77.31 of the request for mediation to the parties and provide a list 77.32 of neutrals experienced in land use planning and local 77.33 government issues obtained from the supreme court, Minnesota77.34 municipal board,bureau of mediation services, Minnesota state 77.35 bar association, Hennepin county bar association, office of 77.36 dispute resolution, and others. Within 30 days thereafter, the 78.1 affected parties, as defined in section 414.10, subdivision 1,78.2 shall select a mediator from the list of neutrals or someone 78.3 else acceptable to the parties and submit to mediation for a 78.4 period of 30 days facilitated by the bureau. If the dispute 78.5 remains unresolved after the close of the 30-day mediation 78.6 period, the bureau shall prepare a report of its recommendations 78.7 and transmit the report within 30 days to the parties. Within 78.8 60 days after the date of issuance of the mediator's report, the 78.9 dispute shall be submitted to binding arbitration as provided in 78.10 this chapter. The mediator's report submitted to the parties is 78.11 informational only and is not admissible in arbitration. 78.12 Sec. 15. Minnesota Statutes 2002, section 572A.02, 78.13 subdivision 6, is amended to read: 78.14 Subd. 6. [DECISION.] The arbitrators, after a hearing on 78.15 the matter, shall make a decision regarding the dispute within 78.16 60 days and transmit an order to the parties and the office of 78.17 strategic and long-range planning or the municipal board. 78.18 Unless appealed by an aggrieved party within 30 days of receipt 78.19 of the arbitration panel's order by the municipal boardoffice, 78.20 the municipal boardoffice shall execute an order in accordance 78.21 with the arbitration panel's order and shall cause copies of the 78.22 same to be mailed to all parties entitled to mailed notice, the 78.23 secretary of state, the department of revenue, the state 78.24 demographer, individual property owners if initiated in that 78.25 manner, the affected county auditor, and any other party of 78.26 record. The affected county auditor shall record the order 78.27 against the affected property. 78.28 Sec. 16. Minnesota Statutes 2002, section 572A.03, 78.29 subdivision 5, is amended to read: 78.30 Subd. 5. [ORDERLY ANNEXATIONS WITHIN A DESIGNATED AREA.] 78.31 For orderly annexations within a designated area under section 78.32 414.0325, which require a hearing, the arbitration panel may 78.33 order the annexation: (1) if it finds that the subject area is 78.34 now or is about to become urban or suburban in character and 78.35 that the annexing municipality is capable of providing the 78.36 services required by the area within a reasonable time; (2) if 79.1 it finds that the existing township form of government is not 79.2 adequate to protect the public health, safety, and welfare; or 79.3 (3) if it finds that annexation would be in the best interests 79.4 of the subject area. The boardpanel may deny the annexation if 79.5 it conflicts with any provision of the joint agreement. The 79.6 boardpanel may alter the boundaries of the proposed annexation 79.7 by increasing or decreasing the area so as to include that 79.8 property within the designated area which is in need of 79.9 municipal services or will be in need of municipal services. 79.10 If the annexation is denied, no proceeding for the 79.11 annexation of substantially the same area may be initiated 79.12 within two years from the date of the board's order unless the 79.13 new proceeding is initiated by a majority of the area's property 79.14 owners and the petition is supported by affected parties to the 79.15 resolution. In all cases, the arbitration panel shall set forth 79.16 the factors which are the basis for the decision. 79.17 Sec. 17. [REPEALER.] 79.18 Minnesota Statutes 2002, section 572A.015, subdivision 1, 79.19 and Laws 2002, chapter 223, section 25, subdivision 3, are 79.20 repealed. 79.21 ARTICLE 6 79.22 OBSOLETE REFERENCES TO THE BOARD OF 79.23 GOVERNMENT INNOVATION AND COOPERATION 79.24 Section 1. Minnesota Statutes 2002, section 465.81, 79.25 subdivision 1, is amended to read: 79.26 Subdivision 1. [SCOPE.] Sections 465.81 to 465.87465.86 79.27 establish procedures to be used by counties, cities, or towns 79.28 that adopt by resolution an agreement providing a plan to 79.29 provide combined services during an initial cooperation period 79.30 that may not exceed two years and then: 79.31 (1) to merge into a single unit of government over the 79.32 succeeding two-year period; or 79.33 (2) to agree to apportion the entire area of at least one 79.34 local government unit between or among two or more local 79.35 government units contiguous to the unit to be apportioned, 79.36 resulting in the elimination of at least one local government 80.1 unit over the succeeding two years. 80.2 Sec. 2. Minnesota Statutes 2002, section 465.81, 80.3 subdivision 2, is amended to read: 80.4 Subd. 2. [DEFINITIONS.] As used in sections 465.81 to 80.5 465.87465.86, the words defined in this subdivision have the 80.6 meanings given them in this subdivision. 80.7 "Board" means the board of government innovation and80.8 cooperation.80.9 "City" means home rule charter or statutory cities. 80.10 "Governing body" means, in the case of a county, the county 80.11 board; in the case of a city, the city council; and, in the case 80.12 of a town, the town board. 80.13 "Local government unit" or "unit" includes counties, 80.14 cities, and towns. 80.15 Sec. 3. Minnesota Statutes 2002, section 465.82, 80.16 subdivision 1, is amended to read: 80.17 Subdivision 1. [ADOPTION AND STATE AGENCY REVIEW.] Each 80.18 governing body that proposes to take part in a combination under 80.19 sections 465.81 to 465.87465.86 must by resolution adopt a plan 80.20 for cooperation and combination. The plan must address each 80.21 item in this section. The plan must be specific for any item 80.22 that will occur within three years and may be general or set 80.23 forth alternative proposals for an item that will occur more 80.24 than three years in the future. The plan must be submitted to80.25 the board of government innovation and cooperation for review80.26 and comment.For a metropolitan area local government unit, the 80.27 plan must alsobe submitted to the metropolitan council for 80.28 review and comment. The council may point out any resources or 80.29 technical assistance it may be able to provide a governing body 80.30 submitting a plan under this subdivision. Significant 80.31 modifications and specific resolutions of items must be 80.32 submitted to the board andcouncil, if appropriate, for review 80.33 and comment. In the official newspaper of each local government 80.34 unit proposing to take part in the combination, the governing 80.35 body shall publish at least a summary of the adopted plans, each 80.36 significant modification and resolution of items, and, if 81.1 appropriate, the results of each board andcouncil review and 81.2 comment. If a territory of a unit is to be apportioned between 81.3 or among two or more units contiguous to the unit that is to be 81.4 apportioned, the plan must specify the area that will become a 81.5 part of each remaining unit. 81.6 Sec. 4. Minnesota Statutes 2002, section 465.82, 81.7 subdivision 2, is amended to read: 81.8 Subd. 2. [CONTENTS OF PLAN.] The plan must state: 81.9 (1) the specific cooperative activities the units will 81.10 engage in during the first two years of the venture; 81.11 (2) the steps to be taken to effect the merger of the 81.12 governmental units, with completion no later than four years 81.13 after the process begins; 81.14 (3) the steps by which a single governing body will be 81.15 created or, when the entire territory of a unit will be 81.16 apportioned between or among two or more units contiguous to the 81.17 unit that is to be apportioned, the steps to be taken by the 81.18 governing bodies of the remaining units to provide for 81.19 representation of the residents of the apportioned unit; 81.20 (4) changes in services provided, facilities used, and 81.21 administrative operations and staffing required to effect the 81.22 preliminary cooperative activities and the final merger, and a 81.23 two-, five-, and ten-year projection of expenditures for each 81.24 unit if it combined and if it remained separate; 81.25 (5) treatment of employees of the merging governmental 81.26 units, specifically including provisions for reassigning 81.27 employees, dealing with exclusive representatives, and providing 81.28 financial incentives to encourage early retirements; 81.29 (6) financial arrangements for the merger, specifically 81.30 including responsibility for debt service on outstanding 81.31 obligations of the merging units; 81.32 (7) one- and two-year impact analyses, prepared by the 81.33 granting state agency at the request of the local government 81.34 unit, of major state aid revenues received for each unit if it 81.35 combined and if it remained separate, including an impact 81.36 analysis, prepared by the department of revenue, of any property 82.1 tax revenue implications associated with tax increment financing 82.2 districts and fiscal disparities under chapter 276A or 473F 82.3 resulting from the merger; 82.4 (8) procedures for a referendum to be held before the 82.5 proposed combination to approve combining the local government 82.6 units, specifically stating whether a majority of those voting 82.7 in each district proposed for combination or a majority of those 82.8 voting on the question in the entire area proposed for 82.9 combination is needed to pass the referendum; and 82.10 (9) a time schedule for implementation. 82.11 Notwithstanding clause (3) or any other law to the 82.12 contrary, all current members of the governing bodies of the 82.13 local government units that propose to combine under sections 82.14 465.81 to 465.88465.86 may serve on the initial governing body 82.15 of the combined unit until a gradual reduction in membership is 82.16 achieved by foregoing election of new members when terms expire 82.17 until the number permitted by other law is reached. 82.18 Sec. 5. Minnesota Statutes 2002, section 465.84, is 82.19 amended to read: 82.20 465.84 [REFERENDUM.] 82.21 During the first or second year of cooperation, and after82.22 approval of the plan by the board under section 465.83,a 82.23 referendum on the question of combination must be conducted. 82.24 The referendum must be on a date called by the governing bodies 82.25 of the units that propose to combine. The referendum must be 82.26 conducted according to the Minnesota Election Law, as defined in 82.27 section 200.01. If the referendum fails, the same question or a 82.28 modified question may be submitted the following year. If the 82.29 referendum fails again, the same question may not be submitted. 82.30 Referendums shall be conducted on the same date in all local 82.31 government units.