4th Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 03/06/2003 | |
1st Engrossment | Posted on 03/24/2003 | |
2nd Engrossment | Posted on 04/22/2003 | |
3rd Engrossment | Posted on 04/28/2003 | |
4th Engrossment | Posted on 05/01/2003 |
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 economic development, housing, and certain agencies of 1.4 state government; modifying programs; regulating 1.5 activities and practices; modifying penalty 1.6 provisions; changing terms; authorizing a registration 1.7 fee; modifying displaced homemaker provisions; 1.8 increasing the petroleum inspection fee; requiring 1.9 uniform mandatory penalties against license holders 1.10 and a licensee's employees for sales to minors; 1.11 providing for mitigating circumstances in assessing 1.12 penalties; modifying motor vehicle installment sales 1.13 provisions; amending Minnesota Statutes 2002, sections 1.14 13.462, subdivision 2; 16B.35, subdivision 1; 17.101, 1.15 subdivision 1; 41A.036, subdivision 2; 43A.24, 1.16 subdivision 2; 43A.27, subdivision 2; 47.59, 1.17 subdivision 4a; 60A.14, subdivision 1; 79.56, 1.18 subdivisions 1, 3; 115C.02, subdivision 14; 115C.08, 1.19 subdivision 4; 115C.09, subdivision 3, by adding 1.20 subdivisions; 115C.11, subdivision 1; 115C.13; 1.21 116.073, subdivisions 1, 2; 116.46, by adding 1.22 subdivisions; 116.49, by adding subdivisions; 116.50; 1.23 116J.011; 116J.411, by adding a subdivision; 116J.415, 1.24 subdivisions 1, 2, 4, 5, 7, 11; 116J.553, subdivision 1.25 2; 116J.554, subdivision 2; 116J.64, subdivision 2; 1.26 116J.8731, subdivisions 1, 4, 5, 7; 116J.8764, by 1.27 adding a subdivision; 116J.955, subdivision 2; 1.28 116J.966, subdivision 1; 116J.994, subdivision 4; 1.29 116J.995; 116L.02; 116L.04, subdivisions 1, 1a; 1.30 116L.12, subdivision 4; 116L.17, subdivisions 2, 3, 8, 1.31 by adding a subdivision; 116M.14, subdivision 4; 1.32 116O.03, subdivision 2; 116O.091, subdivision 7; 1.33 116O.12; 154.18; 168.66, subdivision 14; 168.71, 1.34 subdivision 2; 168.75; 175.16, subdivision 1; 177.26, 1.35 subdivisions 1, 2; 178.01; 178.03, subdivisions 1, 2; 1.36 181.9435, subdivision 1; 181.9436; 216A.03, 1.37 subdivision 1; 216C.41, subdivision 1; 239.10, 1.38 subdivision 3; 239.101, subdivision 3; 248.10; 1.39 268A.02, by adding a subdivision; 326.105; 354D.02, 1.40 subdivision 2; 461.12, subdivision 2; 461.19; 624.20, 1.41 subdivision 1; proposing coding for new law in 1.42 Minnesota Statutes, chapters 60A; 115C; 178; repealing 1.43 Minnesota Statutes 2002, sections 13.598, subdivision 1.44 2; 116J.411, subdivision 3; 116J.415, subdivisions 6, 1.45 9, 10; 116J.693; 116J.9665; 116L.03, subdivision 7; 1.46 138.91; 155A.03, subdivisions 14, 15; 155A.07, 2.1 subdivision 9; 177.26, subdivision 3; 178.11; 2.2 Minnesota Rules, part 2100.9300, subpart 1. 2.3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.4 ARTICLE 1 2.5 APPROPRIATIONS 2.6 ECONOMIC DEVELOPMENT 2.7 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 2.8 The sums shown in the columns marked "APPROPRIATIONS" are 2.9 appropriated from the general fund, or another named fund, to 2.10 the agencies and for the purposes specified in this act, to be 2.11 available for the fiscal years indicated for each purpose. The 2.12 figures "2004" and "2005," where used in this act, mean that the 2.13 appropriation or appropriations listed under them are available 2.14 for the year ending June 30, 2004, or June 30, 2005, 2.15 respectively. The term "first year" means the fiscal year 2.16 ending June 30, 2004, and the term "second year" means the 2.17 fiscal year ending June 30, 2005. 2.18 SUMMARY BY FUND 2.19 2004 2005 TOTAL 2.20 General $ 165,223,000 $ 158,178,000 $ 323,401,000 2.21 Petroleum Tank 2.22 Cleanup 1,834,000 1,084,000 2,918,000 2.23 Environmental 2.24 Fund 700,000 700,000 1,400,000 2.25 Workers' 2.26 Compensation 21,905,000 21,600,000 43,505,000 2.27 Workforce Development 2.28 Fund 7,720,000 7,720,000 15,440,000 2.29 TANF Block Grant 1,250,000 1,250,000 2,500,000 2.30 TOTAL $ 198,632,000 $ 190,532,000 $ 389,164,000 2.31 APPROPRIATIONS 2.32 Available for the Year 2.33 Ending June 30 2.34 2004 2005 2.35 Sec. 2. TRADE AND ECONOMIC 2.36 DEVELOPMENT 2.37 Subdivision 1. Total 2.38 Appropriation $ 69,448,000 $ 64,673,000 2.39 Summary by Fund 2.40 General 60,278,000 56,253,000 2.41 Petroleum Tank 3.1 Cleanup 750,000 -0- 3.2 Environmental Fund 700,000 700,000 3.3 Workforce Development 3.4 Fund 7,720,000 7,720,000 3.5 The amounts that may be spent from this 3.6 appropriation for each program are 3.7 specified in the following subdivisions. 3.8 Subd. 2. Business and Community 3.9 Development 13,114,000 8,734,000 3.10 Summary by Fund 3.11 General 11,664,000 8,034,000 3.12 Petroleum Tank 3.13 Cleanup 750,000 -0- 3.14 Environmental Fund 700,000 700,000 3.15 $2,203,000 the first year and 3.16 $2,203,000 the second year are for 3.17 Minnesota investment fund grants. 3.18 $150,000 the first year and $150,000 3.19 the second year are for grants to the 3.20 rural policy and development center at 3.21 Minnesota State University, Mankato. 3.22 The grant shall be used for research 3.23 and policy analysis on emerging 3.24 economic and social issues in rural 3.25 Minnesota, to serve as a policy 3.26 resource center for rural Minnesota 3.27 communities, to encourage collaboration 3.28 across higher education institutions to 3.29 provide interdisciplinary team 3.30 approaches to research and problem 3.31 solving in rural communities, and to 3.32 administer overall operations of the 3.33 center. 3.34 The grant shall be provided upon the 3.35 condition that each state-appropriated 3.36 dollar be matched with a 3.37 nonstate-appropriated dollar. 3.38 Acceptable matching funds are 3.39 nonstate-appropriated contributions 3.40 that the center has received and have 3.41 not been used to match previous state 3.42 grants. The funds not spent the first 3.43 year are available the second. 3.44 $1,000,000 the first year and 3.45 $1,000,000 the second year are onetime 3.46 appropriations to encourage and 3.47 facilitate a joint partnership with the 3.48 University of Minnesota and the Mayo 3.49 Foundation for research in 3.50 biotechnology and medical genomics. 3.51 This appropriation must be matched 3.52 dollar for dollar by nonstate funds. 3.53 Funds shall be made available on a 3.54 reimbursement basis after certification 3.55 to the commissioner of finance of the 3.56 nonstate match. 3.57 In the first year, the appropriation 3.58 funds operating costs of the 4.1 collaboration, including salaries, but 4.2 does not include capital expenditures. 4.3 The University of Minnesota and the 4.4 Mayo Foundation shall submit a business 4.5 plan to the governor, the chair of the 4.6 house jobs and economic development 4.7 committee, and the chair of the senate 4.8 jobs, housing, and community 4.9 development committee no later than 4.10 October 1, 2003. The plan should 4.11 identify specific disciplines for 4.12 development and collaboration, data 4.13 access and confidentiality policies; 4.14 timelines, and include a discussion of 4.15 the expected economic benefits of the 4.16 partnership to the state of Minnesota. 4.17 After adoption of the business plan by 4.18 the governing bodies of the University 4.19 of Minnesota and the Mayo Foundation, 4.20 the appropriation in the second year 4.21 shall be made available on a 4.22 reimbursement basis to begin 4.23 implementation of the business plan. A 4.24 preliminary report on the budgeted 4.25 expenditure of these funds should be 4.26 submitted no later than October 1, 4.27 2004. A final report on the 4.28 expenditure of these funds should be 4.29 submitted no later than July 31, 2005. 4.30 $2,000,000 the first year is to the 4.31 Minnesota investment fund to make 4.32 grants to local units of government for 4.33 locally administered grants or loan 4.34 programs, including buyouts, for 4.35 businesses directly and adversely 4.36 affected by flooding in the area 4.37 included in DR-1419. Criteria and 4.38 requirements must be locally 4.39 established with the approval of the 4.40 commissioner. For the purposes of this 4.41 appropriation, Minnesota Statutes, 4.42 sections 116J.8731, subdivisions 3, 4, 4.43 5, and 7; 116J.993; 116J.994; and 4.44 116J.995, are waived. Businesses that 4.45 receive grants or loans from this 4.46 appropriation must set goals for jobs 4.47 retained and wages paid within the area 4.48 included in DR-1419. 4.49 This is a onetime appropriation and is 4.50 available until expended. 4.51 Notwithstanding Minnesota Statutes, 4.52 section 115C.08, subdivision 4, 4.53 $750,000 the first year is for grants 4.54 to local units of government in the 4.55 area included in DR-1419 to safely 4.56 rehabilitate buildings if a portion of 4.57 the rehabilitation costs is 4.58 attributable to petroleum contamination 4.59 or to buy out property substantially 4.60 damaged by a petroleum tank release. 4.61 This appropriation is not subject to 4.62 the limitations of Minnesota Statutes, 4.63 section 115C.09, subdivision 3i. 4.64 This is a onetime appropriation from 4.65 the petroleum tank release cleanup fund 4.66 and is available until expended. 5.1 $1,125,000 the first year to the public 5.2 facilities authority for grants to 5.3 local units of government to assist 5.4 with the cost of rehabilitation and 5.5 replacement of publicly owned 5.6 infrastructure, including storm sewers, 5.7 wastewater and municipal utility 5.8 service, drinking water systems, and 5.9 other infrastructure damaged by 5.10 flooding in the area included in 5.11 DR-1419. This is a onetime 5.12 appropriation and is available until 5.13 expended. 5.14 $500,000 the first year is for a grant 5.15 to the city of Roseau for engineering 5.16 and design plans to relocate the flood 5.17 damaged city hall, auditorium, library, 5.18 museum, and police department out of 5.19 the Roseau river floodway as a result 5.20 of flooding as declared in DR-1419. 5.21 This is a onetime appropriation and is 5.22 available until expended. 5.23 Subd. 3. Minnesota Trade 5.24 Office 2,187,000 2,187,000 5.25 Subd. 4. Workforce Development 7,435,000 7,435,000 5.26 $7,435,000 the first year and 5.27 $7,435,000 the second year are for the 5.28 job skills partnership and pathways 5.29 programs. If the appropriation for 5.30 either year is insufficient, the 5.31 appropriation for the other year is 5.32 available. This appropriation does not 5.33 cancel. 5.34 Subd. 5. Office of Tourism 8,391,000 8,384,000 5.35 To develop maximum private sector 5.36 involvement in tourism, $3,500,000 the 5.37 first year and $3,500,000 the second 5.38 year of the amounts appropriated for 5.39 marketing activities are contingent on 5.40 receipt of an equal contribution from 5.41 nonstate sources that have been 5.42 certified by the commissioner. Up to 5.43 one-half of the match may be given in 5.44 in-kind contributions. 5.45 In order to maximize marketing grant 5.46 benefits, the commissioner must give 5.47 priority for joint venture marketing 5.48 grants to organizations with year-round 5.49 sustained tourism activities. For 5.50 programs and projects submitted, the 5.51 commissioner must give priority to 5.52 those that encompass two or more areas 5.53 or that attract nonresident travelers 5.54 to the state. 5.55 If an appropriation for either year for 5.56 grants is not sufficient, the 5.57 appropriation for the other year is 5.58 available for it. 5.59 The commissioner may use grant dollars 5.60 or the value of in-kind services to 5.61 provide the state contribution for the 5.62 partnership program. 6.1 Any unexpended money from general fund 6.2 appropriations made under this 6.3 subdivision does not cancel but must be 6.4 placed in a special advertising account 6.5 for use by the office of tourism to 6.6 purchase additional media. 6.7 Of this amount, $50,000 the first year 6.8 is for a onetime grant to the 6.9 Mississippi River parkway commission to 6.10 support the increased promotion of 6.11 tourism along the Great River Road. 6.12 This appropriation is available until 6.13 June 30, 2005. 6.14 Subd. 6. Administration 4,992,000 4,604,000 6.15 Subd. 7. Workforce Services 7,123,000 7,123,000 6.16 Summary by Fund 6.17 General 6,348,000 6,348,000 6.18 Workforce Development 6.19 Fund 775,000 775,000 6.20 $1,257,000 the first year and 6.21 $1,257,000 the second year are for the 6.22 youth intervention programs under 6.23 Minnesota Statutes, section 268.30. 6.24 The base funding in the fiscal year 6.25 2006-2007 biennium is $1,446,000 each 6.26 year. 6.27 Subd. 8. Rehabilitation Services 21,758,000 21,758,000 6.28 Summary by Fund 6.29 General 14,813,000 14,813,000 6.30 Workforce Development 6.31 Fund 6,945,000 6,945,000 6.32 $1,325,000 the first year and 6.33 $1,325,000 the second year are for 6.34 grants to fund the eight centers for 6.35 independent living. The base funding 6.36 in the fiscal year 2006-2007 biennium 6.37 is $1,690,000 each year. 6.38 Subd. 9. State Services for 6.39 the Blind 4,448,000 4,448,000 6.40 The base funding restored by this 6.41 subdivision is intended to be used to 6.42 provide services to blind persons, and 6.43 that restored funding should not be 6.44 used to increase administrative 6.45 expenditures. 6.46 Sec. 3. MINNESOTA TECHNOLOGY, INC. 2,000,000 -0- 6.47 $2,000,000 the first year is for 6.48 transfer from the general fund to the 6.49 Minnesota Technology, Inc. fund. This 6.50 is a onetime appropriation and no base 6.51 funding is provided for any future year. 6.52 Sec. 4. HOUSING FINANCE AGENCY 6.53 Subdivision 1. Total 7.1 Appropriation 35,360,000 34,860,000 7.2 Summary by Fund 7.3 General 34,735,000 34,235,000 7.4 TANF Block Grant 625,000 625,000 7.5 This appropriation is for transfer to 7.6 the housing development fund. Except 7.7 as otherwise indicated, this transfer 7.8 is part of the agency's permanent 7.9 budget base. 7.10 Subd. 2. Roseau Flood Assistance 7.11 $500,000 the first year is for a 7.12 onetime grant for the city of Roseau to 7.13 buy out flood damaged residential 7.14 properties as provided below. The 7.15 agency is authorized to provide 7.16 assistance for the city of Roseau to 7.17 acquire properties within the area 7.18 included in DR-1419 that meet the 7.19 following criteria: 7.20 (1) the owner agrees to voluntarily 7.21 sell the property; 7.22 (2) the property to be acquired was the 7.23 principal residence of the owner prior 7.24 to the flooding described in DR-1419; 7.25 and 7.26 (3) the cost of restoring the property 7.27 to its predamage condition would equal 7.28 or exceed 50 percent of the market 7.29 value of the structure before the 7.30 damage occurred, or the property has 7.31 been declared uninhabitable by a state 7.32 or local official in accordance with 7.33 current codes or ordinances. 7.34 Property owners may receive assistance 7.35 from the city in amounts up to the 7.36 preflood fair market value of their 7.37 property. The city must reduce the 7.38 assistance provided to a property owner 7.39 by any duplication of benefits from 7.40 other sources. If the property owner 7.41 is selling the structure which served 7.42 as the principal residence but not the 7.43 real property on which the structure is 7.44 located, the assistance must be reduced 7.45 by the preflood fair market value of 7.46 the real property. If the city sells 7.47 the real property it has acquired with 7.48 the assistance provided under this 7.49 subdivision, it will repay to the 7.50 agency any funds obtained from the sale 7.51 of the real property. 7.52 Subd. 3. Affordable Rental Investment 7.53 Fund 7.54 $9,273,000 the first year and 7.55 $9,273,000 the second year are for the 7.56 affordable rental investment fund 7.57 program under Minnesota Statutes, 7.58 section 462A.21, subdivision 8b. These 7.59 amounts are to finance the acquisition, 8.1 rehabilitation, and debt restructuring 8.2 of federally assisted rental property 8.3 and for making equity take-out loans 8.4 under Minnesota Statutes, section 8.5 462A.05, subdivision 39. The owner of 8.6 the federally assisted rental property 8.7 must agree to participate in the 8.8 applicable federally assisted housing 8.9 program and to extend any existing 8.10 low-income affordability restrictions 8.11 on the housing for the maximum term 8.12 permitted. The owner must also enter 8.13 into an agreement that gives local 8.14 units of government, housing and 8.15 redevelopment authorities, and 8.16 nonprofit housing organizations the 8.17 right of first refusal if the rental 8.18 property is offered for sale. Priority 8.19 must be given among comparable 8.20 properties to properties with the 8.21 longest remaining term under an 8.22 agreement for federal rental 8.23 assistance. Priority must also be 8.24 given among comparable rental housing 8.25 developments to developments that are 8.26 or will be owned by local government 8.27 units, a housing and redevelopment 8.28 authority, or a nonprofit housing 8.29 organization. 8.30 Subd. 4. Family Homeless Prevention 8.31 Summary by Fund 8.32 General 3,065,000 3,065,000 8.33 TANF Block Grant 625,000 625,000 8.34 $3,065,000 the first year and 8.35 $3,065,000 the second year are for 8.36 family homeless prevention and 8.37 assistance programs under Minnesota 8.38 Statutes, section 462A.204. Any 8.39 balance in the first year does not 8.40 cancel but is available in the second 8.41 year. The general fund base funding to 8.42 this program for the 2006-2007 biennium 8.43 is $3,565,000 each year. 8.44 $1,250,000 of the TANF block grant 8.45 appropriation to the pathways program 8.46 in Laws 1999, chapter 223, article 1, 8.47 section 2, subdivision 2, is canceled. 8.48 Of the amount canceled, $625,000 the 8.49 first year and $625,000 the second year 8.50 are appropriated to the family homeless 8.51 prevention and assistance programs 8.52 under Minnesota Statutes, section 8.53 462A.204. Any balance in the first 8.54 year does not cancel but is available 8.55 in the second year. This is a onetime 8.56 appropriation. 8.57 Sec. 5. COMMERCE 8.58 Subdivision 1. Total 8.59 Appropriation 26,088,000 25,761,000 8.60 Summary by Fund 8.61 General 24,169,000 23,842,000 9.1 Petroleum 9.2 Cleanup 1,084,000 1,084,000 9.3 Workers' 9.4 Compensation 835,000 835,000 9.5 The amounts that may be spent from this 9.6 appropriation for each program are 9.7 specified in the following subdivisions. 9.8 Subd. 2. Financial 9.9 Examinations 5,997,000 5,994,000 9.10 Subd. 3. Petroleum Tank Release 9.11 Cleanup Board 1,084,000 1,084,000 9.12 This appropriation is from the 9.13 petroleum tank release cleanup fund. 9.14 Subd. 4. Administrative Services 5,518,000 5,518,000 9.15 Subd. 5. Market Assurance 6,442,000 6,117,000 9.16 Summary by Fund 9.17 General 5,607,000 5,282,000 9.18 Workers' Compensation 835,000 835,000 9.19 Subd. 6. Energy and 9.20 Telecommunications 3,941,000 3,941,000 9.21 Subd. 7. Weights and 9.22 Measurement 3,106,000 3,107,000 9.23 Sec. 6. BOARD OF ACCOUNTANCY 577,000 577,000 9.24 Sec. 7. BOARD OF ARCHITECTURE, 9.25 ENGINEERING, LAND SURVEYING, 9.26 LANDSCAPE ARCHITECTURE, 9.27 GEOSCIENCE, AND INTERIOR 9.28 DESIGN 881,000 881,000 9.29 Sec. 8. BOARD OF BARBER 9.30 EXAMINERS 172,000 172,000 9.31 Sec. 9. LABOR AND INDUSTRY 9.32 Subdivision 1. Total 9.33 Appropriation 22,357,000 21,986,000 9.34 Summary by Fund 9.35 General 2,905,000 2,839,000 9.36 Workers' 9.37 Compensation 19,452,000 19,147,000 9.38 The amounts that may be spent from this 9.39 appropriation for each program are 9.40 specified in the following subdivisions. 9.41 Subd. 2. Workers' 9.42 Compensation 10,221,000 10,221,000 9.43 This appropriation is from the workers' 9.44 compensation fund. 9.45 Subd. 3. Workplace Services 6,544,000 6,478,000 9.46 $345,000 the first year and $345,000 10.1 the second year is for boiler 10.2 inspections under Minnesota Statutes, 10.3 section 183.38, subdivision 1. This is 10.4 a onetime appropriation and is not 10.5 added to the department's base. 10.6 Summary by Fund 10.7 General 2,905,000 2,839,000 10.8 Workers' 10.9 Compensation 3,639,000 3,639,000 10.10 Subd. 4. General Support 5,592,000 5,287,000 10.11 This appropriation is from the workers' 10.12 compensation fund. 10.13 Sec. 10. BUREAU OF MEDIATION 10.14 SERVICES 1,673,000 1,673,000 10.15 Sec. 11. WORKERS' COMPENSATION 10.16 COURT OF APPEALS 1,618,000 1,618,000 10.17 This appropriation is from the workers' 10.18 compensation fund. 10.19 Sec. 12. PUBLIC UTILITIES 10.20 COMMISSION 4,163,000 4,163,000 10.21 Sec. 13. MINNESOTA HISTORICAL 10.22 SOCIETY 10.23 Subdivision 1. Total 10.24 Appropriation 21,957,000 21,830,000 10.25 The amounts that may be spent from this 10.26 appropriation for each program are 10.27 specified in the following subdivisions. 10.28 Budget reductions must first be made by 10.29 reducing administrative expenses. 10.30 Reductions in services may be 10.31 considered only after available 10.32 administrative savings have been 10.33 realized. 10.34 The historical society may not close or 10.35 effectively eliminate public access to 10.36 any historic site in order to reduce 10.37 its budget. The society may act to 10.38 eliminate access to a site only if the 10.39 reason for doing so is a public safety 10.40 or other emergency unrelated to the 10.41 reductions in its budget that are 10.42 called for in this or other legislative 10.43 acts. 10.44 Subd. 2. Education and 10.45 Outreach 12,124,000 12,124,000 10.46 Subd. 3. Preservation and 10.47 Access 9,579,000 9,579,000 10.48 Subd. 4. Fiscal Agent 254,000 127,000 10.49 (a) Minnesota International Center 10.50 43,000 42,000 10.51 (b) Minnesota Air National 11.1 Guard Museum 11.2 16,000 -0- 11.3 (c) Minnesota Military Museum 11.4 67,000 -0- 11.5 (d) Farmamerica 11.6 128,000 85,000 11.7 Notwithstanding any other law, this 11.8 appropriation may be used for 11.9 operations. 11.10 (e) Balances Forward 11.11 Any unencumbered balance remaining in 11.12 this subdivision the first year does 11.13 not cancel but is available for the 11.14 second year of the biennium. 11.15 Subd. 5. Fund Transfer 11.16 The society may reallocate funds 11.17 appropriated in and between 11.18 subdivisions 2 and 3 for any program 11.19 purposes. 11.20 Sec. 14. COUNCIL ON BLACK 11.21 MINNESOTANS 282,000 282,000 11.22 Sec. 15. COUNCIL ON 11.23 CHICANO-LATINO AFFAIRS 275,000 275,000 11.24 Sec. 16. COUNCIL ON 11.25 ASIAN-PACIFIC MINNESOTANS 243,000 243,000 11.26 Sec. 17. INDIAN AFFAIRS 11.27 COUNCIL 482,000 482,000 11.28 Sec. 18. BOARD OF THE 11.29 ARTS 11.30 Subdivision 1. Total 11.31 Appropriation 8,593,000 8,593,000 11.32 Subd. 2. Operations and Services 404,000 404,000 11.33 Subd. 3. Grants Programs 5,767,000 5,767,000 11.34 Subd. 4. Regional Arts 11.35 Councils 2,422,000 2,422,000 11.36 Sec. 19. DEPARTMENT OF EDUCATION 11.37 Subdivision 1. Total Appropriation 2,463,000 2,463,000 11.38 Summary by Fund 11.39 General 1,838,000 1,838,000 11.40 TANF Block Grant 625,000 625,000 11.41 Subd. 2. Emergency Services 350,000 350,000 11.42 Any balance in the first year does not 11.43 cancel but is available in the second 11.44 year. 12.1 Subd. 3. Transitional Housing 2,113,000 2,113,000 12.2 Summary by Fund 12.3 General 1,488,000 1,488,000 12.4 TANF Block Grant 625,000 625,000 12.5 $1,488,000 the first year and 12.6 $1,488,000 the second year are for 12.7 transitional housing programs according 12.8 to Minnesota Statutes, section 12.9 119A.43. Any balance in the first year 12.10 does not cancel but is available in the 12.11 second year. The general fund base 12.12 funding to this program for the 12.13 2006-2007 biennium is $1,988,000 each 12.14 year. 12.15 $450,000 of the TANF block grant 12.16 appropriation to the pathways program 12.17 in Laws 1999, chapter 223, article 1, 12.18 section 2, subdivision 2, is canceled. 12.19 This $450,000 is appropriated to the 12.20 transitional housing programs according 12.21 to Minnesota Statutes, section 12.22 119A.43. Any balance in the first year 12.23 does not cancel but is available in the 12.24 second year. This is a onetime 12.25 appropriation. 12.26 $800,000 of the TANF block grant 12.27 appropriation to the health care and 12.28 human services worker training and 12.29 retention program in Laws 2001, First 12.30 Special Session chapter 4, article 1, 12.31 section 2, subdivision 4, is canceled. 12.32 Of the amount canceled, $175,000 the 12.33 first year and $625,000 the second year 12.34 are appropriated to the transitional 12.35 housing programs according to Minnesota 12.36 Statutes, section 119A.43. Any balance 12.37 in the first year does not cancel but 12.38 is available in the second year. This 12.39 is a onetime appropriation. 12.40 Sec. 20. [CANCELLATIONS AND TRANSFERS.] 12.41 (a) The unexpended balance as of July 1, 2003, from all 12.42 appropriations to the capital access program established under 12.43 Minnesota Statutes, section 116J.8761, is canceled to the 12.44 general fund. 12.45 (b) The unexpended balance as of July 1, 2003, in the 12.46 nongame wildlife tourism program in the department of trade and 12.47 economic development is canceled to the general fund. 12.48 (c) Of the unexpended balance as of July 1, 2003, in the 12.49 Indian business loan program account established under Minnesota 12.50 Statutes, section 116J.64, subdivision 6, $800,000 is 12.51 transferred to the general fund. Notwithstanding the provisions 12.52 of that subdivision, during fiscal years 2004 and 2005, any tax 13.1 revenue that would otherwise be deposited in the Indian business 13.2 loan program account shall be deposited in the general fund. On 13.3 July 10, 2005, the commissioner of finance shall transfer 13.4 $500,000 from the general fund to the Indian business loan 13.5 program account. 13.6 (d) Of the money appropriated for fair housing education 13.7 under Laws 2001, chapter 208, section 28, $800,000 is canceled 13.8 and transferred to the general fund. 13.9 (e) Of the unexpended balance in the consumer education 13.10 account established under Minnesota Statutes, section 58.10, 13.11 subdivision 3, $90,000 is transferred to the general fund. 13.12 (f) Of the money appropriated for education regarding 13.13 mortgage flipping by Laws 1999, chapter 223, article 1, section 13.14 6, subdivision 3, $15,000 is canceled and transferred to the 13.15 general fund. 13.16 (g) Of the appropriation made to the department of trade 13.17 and economic development in Laws 1997, chapter 200, article 1, 13.18 section 2, subdivision 2, $361,000 is canceled to the general 13.19 fund. 13.20 (h) Of the appropriation made to the public facilities 13.21 authority in Laws 2000, chapter 492, article 1, section 22, 13.22 subdivision 3, $700,000 is canceled to the general fund. 13.23 (i) After July 1, 2003, but before September 30, 2003, the 13.24 commissioner of finance shall transfer $800,000 of the 13.25 unexpended balance in the tourism loan account established under 13.26 Minnesota Statutes, section 116J.617, subdivision 5, to the 13.27 general fund. 13.28 (j) Minnesota Statutes, section 116J.617, is repealed. Any 13.29 repayments of principal and any interest earned on money 13.30 previously in the tourism loan account shall be deposited in the 13.31 general fund. 13.32 (k) On or before June 30 of each fiscal year of the 13.33 2004-2005 biennium, the commissioner of finance shall transfer 13.34 $1,000,000 from the workforce development fund to the general 13.35 fund. 13.36 (l) After 1, 2003, but before September 30, 2003, the 14.1 commissioner of finance shall transfer $2,500,000 of the 14.2 unexpended balance in the contractor's recovery fund established 14.3 under Minnesota Statutes, section 326.975, subdivision 1, to the 14.4 general fund. 14.5 (m) Of the unexpended balance in the liquefied petroleum 14.6 gas account established under Minnesota Statutes, section 14.7 239.785, $500,000 is transferred to the general fund. 14.8 ARTICLE 2 14.9 DEPARTMENT OF COMMERCE 14.10 POLICY PROVISIONS 14.11 Section 1. [60A.035] [GOVERNMENT CONTROLLED OR OWNED 14.12 COMPANY PROHIBITED FROM TRANSACTING BUSINESS.] 14.13 (a) No insurance company the voting control or ownership of 14.14 which is held in whole or substantial part by any government or 14.15 governmental agency or entity having a tax exemption under 14.16 section 501(c)(27)(B) or 115 of the Internal Revenue Code of 14.17 1986 or which is operated for or by any such government or 14.18 agency or entity having a tax exemption under section 14.19 501(c)(27)(B) or 115 of the Internal Revenue Code of 1986 is 14.20 authorized to transact insurance in this state. Membership in a 14.21 mutual company, subscribership in a reciprocal insurer, 14.22 ownership of stock of an insurer by the alien property custodian 14.23 or similar official of the United States, or supervision of an 14.24 insurer by public insurance supervisory authority is not 14.25 considered to be an ownership, control, or operation of the 14.26 insurer for the purposes of this section. 14.27 (b) This section does not apply to an insurance company if 14.28 its sole insurance business in this state is providing workers' 14.29 compensation insurance and associated employers' liability 14.30 coverage to an employer principally located in the insurer's 14.31 state of domicile whose employee may receive benefits under 14.32 section 176.041, subdivision 4, provided the operations of the 14.33 employer are for fewer than 30 consecutive days in this state 14.34 and provided the employer has no other significant contacts with 14.35 this state. 14.36 (c) This section does not apply to a fund established under 15.1 section 16B.85, subdivision 2. 15.2 Sec. 2. Minnesota Statutes 2002, section 60A.14, 15.3 subdivision 1, is amended to read: 15.4 Subdivision 1. [FEES OTHER THAN EXAMINATION FEES.] In 15.5 addition to the fees and charges provided for examinations, the 15.6 following fees must be paid to the commissioner for deposit in 15.7 the general fund: 15.8 (a) by township mutual fire insurance companies; 15.9 (1) for filing certificate of incorporation $25 and 15.10 amendments thereto, $10; 15.11 (2) for filing annual statements, $15; 15.12 (3) for each annual certificate of authority, $15; 15.13 (4) for filing bylaws $25 and amendments thereto, $10; 15.14 (b) by other domestic and foreign companies including 15.15 fraternals and reciprocal exchanges; 15.16 (1) for filing certified copy of certificate of articles of 15.17 incorporation, $100; 15.18 (2) for filing annual statement, $225; 15.19 (3) for filing certified copy of amendment to certificate 15.20 or articles of incorporation, $100; 15.21 (4) for filing bylaws, $75 or amendments thereto, $75; 15.22 (5) for each company's certificate of authority, $575, 15.23 annually; 15.24 (c) the following general fees apply: 15.25 (1) for each certificate, including certified copy of 15.26 certificate of authority, renewal, valuation of life policies, 15.27 corporate condition or qualification, $25; 15.28 (2) for each copy of paper on file in the commissioner's 15.29 office 50 cents per page, and $2.50 for certifying the same; 15.30 (3) for license to procure insurance in unadmitted foreign 15.31 companies, $575; 15.32 (4) for valuing the policies of life insurance companies, 15.33 one cent per $1,000 of insurance so valued, provided that the 15.34 fee shall not exceed $13,000 per year for any company. The 15.35 commissioner may, in lieu of a valuation of the policies of any 15.36 foreign life insurance company admitted, or applying for 16.1 admission, to do business in this state, accept a certificate of 16.2 valuation from the company's own actuary or from the 16.3 commissioner of insurance of the state or territory in which the 16.4 company is domiciled; 16.5 (5) for receiving and filing certificates of policies by 16.6 the company's actuary, or by the commissioner of insurance of 16.7 any other state or territory, $50; 16.8 (6) for each appointment of an agent filed with the 16.9 commissioner, $10; 16.10 (7) for filing forms and rates,$75$110 per filing, which 16.11 may be paid on a quarterly basis in response to an invoice. 16.12 Billing and payment may be made electronically; 16.13 (8) for annual renewal of surplus lines insurer license, 16.14 $300;16.15(9) $250 filing fee for a large risk alternative rating16.16option plan that meets the $250,000 threshold requirement. 16.17 The commissioner shall adopt rules to define filings that 16.18 are subject to a fee. 16.19 Sec. 3. Minnesota Statutes 2002, section 79.56, 16.20 subdivision 1, is amended to read: 16.21 Subdivision 1. [PREFILING OF RATES.] (a) Each insurer 16.22 shall file with the commissioner a complete copy of its rates 16.23 and rating plan, and all changes and amendments thereto, and 16.24 such supporting data and information that the commissioner may 16.25 by rule require, at least 60 days prior to its effective date. 16.26 The commissioner shall advise an insurer within 30 days of the 16.27 filing if its submission is not accompanied with such supporting 16.28 data and information that the commissioner by rule may require. 16.29 The commissioner may extend the filing review period and 16.30 effective date for an additional 30 days if an insurer, after 16.31 having been advised of what supporting data and information is 16.32 necessary to complete its filing, does not provide such 16.33 information within 15 days of having been so notified. If any 16.34 rate or rating plan filing or amendment thereto is not 16.35 disapproved by the commissioner within the filing review period, 16.36 the insurer may implement it. For the period August 1, 1995, to 17.1 December 31, 1995, the filing shall be made at least 90 days 17.2 prior to the effective date and the department shall advise an 17.3 insurer within 60 days of such filing if the filing is 17.4 insufficient under this section. 17.5 (b) A rating plan or rates are not subject to the 17.6 requirements of paragraph (a), where the insurer files a 17.7 certification verifying that it will use the rating plan or 17.8 rates only to write a specific employer that generates $250,000 17.9 in annual written workers' compensation premiums before the 17.10 application of any large deductible rating plan. The $250,000 17.11 threshold includes premiums generated in any state. The 17.12 designation and certification shall be submitted in 17.13 substantially the following form: 17.14 Name and address of insurer:................................. 17.15 Name and address of insured employer:........................ 17.16 Effective date of filing:.................................... 17.17 I certify that the employer named above generates $250,000 or 17.18 more in annual written workers' compensation premiums before the 17.19 application of any large deductible rating plan. This 17.20 certification authorizes the use of this rate or rating plan 17.21 only for the named employer. 17.22 Name of responsible officer:................................. 17.23 Title:....................................................... 17.24 Signature:................................................... 17.25 Sec. 4. Minnesota Statutes 2002, section 79.56, 17.26 subdivision 3, is amended to read: 17.27 Subd. 3. [PENALTIES.](a)Any insurer using a rate or a 17.28 rating plan which has not been filed under subdivision 1 shall 17.29 be subject to a fine of up to $100 for each day the failure to 17.30 file continues. The commissioner may, after a hearing on the 17.31 record, find that the failure is willful. A willful failure to 17.32 meet filing requirements shall be punishable by a fine of up to 17.33 $500 for each day during which a willful failure continues. 17.34 These penalties shall be in addition to any other penalties 17.35 provided by law. 17.36(b) Notwithstanding this subdivision, an employer that18.1generates $250,000 in annual written workers' compensation18.2premium under the rates and rating plan of an insurer before the18.3application of any large deductible rating plans, may be written18.4by that insurer using rates or rating plans that are not subject18.5to disapproval but which have been filed. For the purposes of18.6this paragraph, written workers' compensation premiums generated18.7from states other than Minnesota are included in calculating the18.8$250,000 threshold for large risk alternative rating option18.9plans.18.10 Sec. 5. Minnesota Statutes 2002, section 216C.41, 18.11 subdivision 1, is amended to read: 18.12 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 18.13 subdivision apply to this section. 18.14 (b) "Qualified hydroelectric facility" means a 18.15 hydroelectric generating facility in this state that: 18.16 (1) is located at the site of a dam, if the dam was in 18.17 existence as of March 31, 1994; and 18.18 (2) begins generating electricity after July 1, 1994, or 18.19 generates electricity after substantial refurbishing of a 18.20 facility that begins after July 1, 2001. 18.21 (c) "Qualified wind energy conversion facility" means a 18.22 wind energy conversion system that: 18.23 (1) produces two megawatts or less of electricity as 18.24 measured by nameplate rating and begins generating electricity 18.25 after December 31, 1996, and before July 1, 1999; 18.26 (2) begins generating electricity after June 30, 1999, 18.27 produces two megawatts or less of electricity as measured by 18.28 nameplate rating, and is: 18.29 (i) located within one county and owned bya natural person18.30whoan entity that is not prohibited from owning agricultural 18.31 land under section 500.24 that owns the land where the facility 18.32 is sited; 18.33 (ii) owned by a Minnesota small business as defined in 18.34 section 645.445; 18.35 (iii) owned by a nonprofit organization; or 18.36 (iv) owned by a tribal council if the facility is located 19.1 within the boundaries of the reservation; or 19.2 (3) begins generating electricity after June 30, 1999, 19.3 produces seven megawatts or less of electricity as measured by 19.4 nameplate rating, and: 19.5 (i) is owned by a cooperative organized under chapter 308A; 19.6 and 19.7 (ii) all shares and membership in the cooperative are held 19.8 by natural persons or estates, at least 51 percent of whom 19.9 reside in a county or contiguous to a county where the wind 19.10 energy production facilities of the cooperative are located. 19.11 (d) "Qualified on-farm biogas recovery facility" means an 19.12 anaerobic digester system that: 19.13 (1) is located at the site of an agricultural operation; 19.14 (2) is owned by a natural person who owns or rents the land 19.15 where the facility is located; and 19.16 (3) begins generating electricity after July 1, 2001. 19.17 (e) "Anaerobic digester system" means a system of 19.18 components that processes animal waste based on the absence of 19.19 oxygen and produces gas used to generate electricity. 19.20 Sec. 6. Minnesota Statutes 2002, section 239.10, 19.21 subdivision 3, is amended to read: 19.22 Subd. 3. [OTHER WEIGHTS AND MEASURES.] The director shall 19.23 inspect all weights and measures, except those specified in 19.24 subdivisions 1 and 2, annually, or as often as deemed possible 19.25 within budget and staff limitations, except that the director 19.26 shall not inspect liquid petroleum gas measuring equipment and 19.27 shall not charge a fee related to any such inspections. 19.28 Sec. 7. Minnesota Statutes 2002, section 239.101, 19.29 subdivision 3, is amended to read: 19.30 Subd. 3. [PETROLEUM INSPECTION FEE.] (a) An inspection fee 19.31 is imposed (1) on petroleum products when received by the first 19.32 licensed distributor, and (2) on petroleum products received and 19.33 held for sale or use by any person when the petroleum products 19.34 have not previously been received by a licensed distributor. 19.35 The petroleum inspection fee is85 cents$1 for every 1,000 19.36 gallons received. The commissioner of revenue shall collect the 20.1 fee. The revenue from the fee must first be applied to cover 20.2 the amountsappropriated for petroleum product quality20.3inspection expenses, for the inspection and testing of petroleum20.4product measuring equipment, and for petroleum supply monitoring20.5under chapternecessary to enforce the appropriate provisions of 20.6 chapters 216C, 239, 325D, and 325E. These functions shall be 20.7 performed by departmental staff. 20.8 (b) The commissioner of revenue shall credit a person for 20.9 inspection fees previously paid in error or for any material 20.10 exported or sold for export from the state upon filing of a 20.11 report as prescribed by the commissioner of revenue. 20.12 (c) The commissioner of revenue may collect the inspection 20.13 fee along with any taxes due under chapter 296A. 20.14 Sec. 8. Minnesota Statutes 2002, section 354D.02, 20.15 subdivision 2, is amended to read: 20.16 Subd. 2. [ELIGIBILITY.] Eligible employees are: 20.17 (1) any supervisory or professional employee of the state 20.18 arts board; or 20.19(2) any supervisory or professional employee of the20.20Minnesota humanities commission; or20.21(3)(2) any employee of the Minnesota historical society. 20.22 Sec. 9. [SUSPENSION OF MORTGAGE CREDIT CERTIFICATE AID.] 20.23 Notwithstanding Minnesota Statutes, section 462C.15, during 20.24 the fiscal years 2004 and 2005, no applications or reports shall 20.25 be made pursuant to subdivision 1 of that section, no aid shall 20.26 be provided pursuant to subdivision 3 of that section, and no 20.27 money is appropriated pursuant to subdivision 4 of that section. 20.28 Sec. 10. [AMBULANCE SERVICE LIABILITY INSURANCE STUDY.] 20.29 The commissioner of commerce shall study the availability 20.30 and cost to ambulance services of vehicle and malpractice 20.31 insurance and the factors influencing cost increases. The 20.32 commissioner shall report the results of this study and 20.33 recommendations on means to ensure continued availability of 20.34 affordable insurance to the legislature by January 10, 2004. 20.35 Sec. 11. [UNCLAIMED PROPERTY.] 20.36 The department shall, after July 1, 2003, and before June 21.1 30, 2005, sell the unclaimed property identified by the 21.2 legislative auditor in Finding 1 of its management letter dated 21.3 March 20, 2003. To the degree this property has not been held 21.4 for the three-year period required by law prior to sale, that 21.5 three-year requirement is waived as to this property, and the 21.6 department shall sell the property. 21.7 Sec. 12. [REPEALER.] 21.8 Minnesota Statutes 2002, section 138.91, is repealed. 21.9 ARTICLE 3 21.10 DEPARTMENT OF LABOR AND INDUSTRY 21.11 POLICY PROVISIONS 21.12 Section 1. Minnesota Statutes 2002, section 175.16, 21.13 subdivision 1, is amended to read: 21.14 Subdivision 1. [ESTABLISHED.] The department of labor and 21.15 industry shall consist of the following divisions: division of 21.16 workers' compensation, division of boiler inspection, division 21.17 of occupational safety and health, division of statistics, 21.18 division of steamfitting standards,division of voluntary21.19apprenticeship,division of labor standards and apprenticeship, 21.20 and such other divisions as the commissioner of the department 21.21 of labor and industry may deem necessary and establish. Each 21.22 division of the department and persons in charge thereof shall 21.23 be subject to the supervision of the commissioner of the 21.24 department of labor and industry and, in addition to such duties 21.25 as are or may be imposed on them by statute, shall perform such 21.26 other duties as may be assigned to them bysaidthe commissioner. 21.27 Notwithstanding any other law to the contrary, the commissioner 21.28 is the administrator and supervisor of all of the department's 21.29 dispute resolution functions and personnel and may delegate 21.30 authority to compensation judges and others to make 21.31 determinations under sections 176.106, 176.238, and 176.239 and 21.32 to approve settlement of claims under section 176.521. 21.33 Sec. 2. Minnesota Statutes 2002, section 177.26, 21.34 subdivision 1, is amended to read: 21.35 Subdivision 1. [CREATION.] The division of labor standards 21.36 and apprenticeship in the department of labor and industry is 22.1 supervised and controlled by the commissioner of labor and 22.2 industry. 22.3 Sec. 3. Minnesota Statutes 2002, section 177.26, 22.4 subdivision 2, is amended to read: 22.5 Subd. 2. [POWERS AND DUTIES.]The powers, duties, and22.6functions given to the department's division of women and22.7children by this chapter, and other applicable laws relating to22.8wages, hours, and working conditions, are transferred to the22.9division of labor standards.The division of labor standards 22.10 and apprenticeship shall administersections 177.21 to 177.3522.11and chapterchapters 177, 178, 181, 181A, and 184.The division22.12shall perform duties under sections 181.9435 and 181.9436.22.13 Sec. 4. Minnesota Statutes 2002, section 178.01, is 22.14 amended to read: 22.15 178.01 [PURPOSES.] 22.16 The purposes of this chapter are: to open to young people 22.17 regardless of race, sex, creed, color or national origin, the 22.18 opportunity to obtain training that will equip them for 22.19 profitable employment and citizenship; to establish as a means 22.20 to this end, a program of voluntary apprenticeship under 22.21 approved apprentice agreements providing facilities for their 22.22 training and guidance in the arts, skills, and crafts of 22.23 industry and trade, with concurrent, supplementary instruction 22.24 in related subjects; to promote employment opportunities under 22.25 conditions providing adequate training and reasonable earnings; 22.26 to relate the supply of skilled workers to employment demands; 22.27 to establish standards for apprentice training; to establish an 22.28 apprenticeship advisory council and apprenticeship committees to 22.29 assist in effectuating the purposes of this chapter; to provide 22.30 for a division ofvoluntarylabor standards and apprenticeship 22.31 within the department of labor and industry; to provide for 22.32 reports to the legislature regarding the status of apprentice 22.33 training in the state; to establish a procedure for the 22.34 determination of apprentice agreement controversies; and to 22.35 accomplish related ends. 22.36 Sec. 5. Minnesota Statutes 2002, section 178.03, 23.1 subdivision 1, is amended to read: 23.2 Subdivision 1. [ESTABLISHMENT OF DIVISION.] There is 23.3herebyestablished a division ofvoluntarylabor standards and 23.4 apprenticeship in the department of labor and industry. This 23.5 division shall be administered by a director, and be under the 23.6 supervision of the commissioner of labor and industry, 23.7 hereinafter referred to as the commissioner. 23.8 Sec. 6. Minnesota Statutes 2002, section 178.03, 23.9 subdivision 2, is amended to read: 23.10 Subd. 2. [DIRECTOR OFVOLUNTARYLABOR STANDARDS AND 23.11 APPRENTICESHIP.] The commissioner shall appoint a director of 23.12 the division ofvoluntarylabor standards and apprenticeship, 23.13 hereinafter referred to as the director, and may appoint and 23.14 employ such clerical, technical, and professional help as is 23.15 necessary to accomplish the purposes of this chapter. The 23.16 director and division staff shall be appointed and shall serve 23.17 in the classified service pursuant to civil service law and 23.18 rules. 23.19 Sec. 7. [178.12] [REGISTRATION FEE.] 23.20 The apprenticeship registration account is established in 23.21 the special revenue fund of the state treasury. An annual 23.22 registration fee will be charged to each sponsor for each 23.23 apprentice registered in the program. The fee is established at 23.24 $50 per apprentice. Subsequent adjustments to this fee will be 23.25 made pursuant to Minnesota Statutes, sections 16A.1283 and 23.26 16A.1285, subdivision 2. The fees collected and any interest 23.27 earned are appropriated to the commissioner for purposes of this 23.28 chapter. 23.29 Sec. 8. Minnesota Statutes 2002, section 181.9435, 23.30 subdivision 1, is amended to read: 23.31 Subdivision 1. [INVESTIGATION.] The division of labor 23.32 standards and apprenticeship shall receive complaints of 23.33 employees against employers relating to sections 181.940 to 23.34 181.9436 and investigate informally whether an employer may be 23.35 in violation of sections 181.940 to 181.9436. The division 23.36 shall attempt to resolve employee complaints by informing 24.1 employees and employers of the provisions of the law and 24.2 directing employers to comply with the law. 24.3 Sec. 9. Minnesota Statutes 2002, section 181.9436, is 24.4 amended to read: 24.5 181.9436 [POSTING OF LAW.] 24.6 The division of labor standards and apprenticeship shall 24.7 develop, with the assistance of interested business and 24.8 community organizations, an educational poster stating 24.9 employees' rights under sections 181.940 to 181.9436. The 24.10 department shall make the poster available, upon request, to 24.11 employers for posting on the employer's premises. 24.12 Sec. 10. [BOILER INSPECTION AND LICENSE FEE SURCHARGE.] 24.13 The commissioner of labor and industry shall impose a 24.14 surcharge of $5 on each of the fees authorized under Minnesota 24.15 Statutes, section 183.545, subdivisions 2, 3, and 4, for the 24.16 period starting July 1, 2003, and ending June 30, 2005. 24.17 Sec. 11. [REPEALER.] 24.18 Minnesota Statutes 2002, sections 177.26, subdivision 3; 24.19 and 178.11, are repealed. 24.20 Sec. 12. [EFFECTIVE DATE.] 24.21 Section 10 is effective July 1, 2003. 24.22 ARTICLE 4 24.23 DEPARTMENT OF ECONOMIC SECURITY 24.24 POLICY PROVISIONS 24.25 Section 1. Minnesota Statutes 2002, section 248.10, is 24.26 amended to read: 24.27 248.10 [REHABILITATION COUNCIL FOR THE BLIND.] 24.28 (a) The commissioner shall establish a rehabilitation 24.29 council for the blind consistent with the federal Rehabilitation 24.30 Act of 1973, Public Law Number 93-112, as amended. Council 24.31 members shall be compensated as provided in section 15.059, 24.32 subdivision 3. The council shall advise the commissioner about 24.33 programs of the division of state services for the blind. 24.34 (b) Notwithstanding section 13D.01, the rehabilitation 24.35 council for the blind may conduct a meeting of its members by 24.36 telephone or other electronic means so long as the following 25.1 conditions are met: 25.2 (1) all members of the council participating in the 25.3 meeting, wherever their physical location, can hear one another 25.4 and can hear all discussion and testimony; 25.5 (2) members of the public present at the regular meeting 25.6 location of the council can hear all discussion and testimony 25.7 and all votes of members of the council; 25.8 (3) at least one member of the council is physically 25.9 present at the regular meeting location; and 25.10 (4) all votes are conducted by roll call, so each member's 25.11 vote on each issue can be identified and recorded. 25.12 (c) Each member of the council participating in a meeting 25.13 by telephone or other electronic means is considered present at 25.14 the meeting for purposes of determining a quorum and 25.15 participating in all proceedings. 25.16 (d) If telephone or another electronic means is used to 25.17 conduct a meeting, the council to the extent practical, shall 25.18 allow a person to monitor the meeting electronically from a 25.19 remote location. The council may require the person making such 25.20 a connection to pay for documented marginal costs that the 25.21 council incurs as a result of the additional connection. 25.22 (e) If telephone or another electronic means is used to 25.23 conduct a regular, special, or emergency meeting, the council 25.24 shall provide notice of the regular meeting location, of the 25.25 fact that some members may participate by electronic means, and 25.26 of the provisions of paragraph (d). The timing and method of 25.27 providing notice is governed by section 13D.04. 25.28 Sec. 2. Minnesota Statutes 2002, section 268A.02, is 25.29 amended by adding a subdivision to read: 25.30 Subd. 3. [MEETINGS.] (a) Notwithstanding section 13D.01, 25.31 the state rehabilitation council and state independent living 25.32 council may conduct meetings of their members by telephone or 25.33 other electronic means as long as the following conditions are 25.34 met: 25.35 (1) all members of the council participating in the 25.36 meeting, wherever their physical location, can hear one another 26.1 and can hear all discussion and testimony; 26.2 (2) members of the public present at the regular meeting 26.3 location of the council can hear all discussion and testimony 26.4 and all votes of members of the council; 26.5 (3) at least one member of the council is physically 26.6 present at the regular meeting location; and 26.7 (4) all votes are conducted by roll call, so each member's 26.8 vote on each issue can be identified and recorded. 26.9 (b) Each member of the council participating in a meeting 26.10 by telephone or other electronic means is considered present at 26.11 the meeting for purposes of determining a quorum and 26.12 participating in all proceedings. 26.13 (c) If telephone or another electronic means is used to 26.14 conduct a meeting, the council to the extent practical, shall 26.15 allow a person to monitor the meeting electronically from a 26.16 remote location. The council may require the person making such 26.17 a connection to pay for documented marginal costs that the 26.18 council incurs as a result of the additional connection. 26.19 (d) If telephone or another electronic means is used to 26.20 conduct a regular, special, or emergency meeting, the council 26.21 shall provide notice of the regular meeting location, of the 26.22 fact that some members may participate by electronic means, and 26.23 of the provisions of paragraph (c). The timing and method of 26.24 providing notice is governed by section 13D.04. 26.25 Sec. 3. [PLAN TO REDUCE NUMBER OF WORKFORCE SERVICE 26.26 AREAS.] 26.27 The governor's workforce development council shall, in 26.28 consultation with representatives of the local workforce 26.29 councils and local elected officials, study the current 26.30 configuration of workforce service areas in Minnesota and 26.31 whether the efficiency or quality of service delivery could be 26.32 improved by changing the boundaries of workforce service areas 26.33 or reducing the number of areas. The council shall report to 26.34 the legislature by January 1, 2004. 26.35 ARTICLE 5 26.36 PETROFUND 27.1 Section 1. Minnesota Statutes 2002, section 115C.02, 27.2 subdivision 14, is amended to read: 27.3 Subd. 14. [TANK.] "Tank" means any one or a combination of 27.4 containers, vessels, and enclosures, including structures and 27.5 appurtenances connected to them, that is, or has been, used to 27.6 containor, dispense, store, or transport petroleum. 27.7 "Tank" does not include: 27.8(1) a mobile storage tank used to transport petroleum from27.9one location to another, except a mobile storage tank with a27.10capacity of 500 gallons or less used only to transport home27.11heating fuel on private property; or27.12(2)pipeline facilities, including gathering lines, 27.13 regulated under the Natural Gas Pipeline Safety Act of 1968, 27.14 United States Code, title 49, chapter 24, or the Hazardous 27.15 Liquid Pipeline Safety Act of 1979, United States Code, title 27.16 49, chapter 29. 27.17 Sec. 2. Minnesota Statutes 2002, section 115C.08, 27.18 subdivision 4, is amended to read: 27.19 Subd. 4. [EXPENDITURES.] (a) Money in the fund may only be 27.20 spent: 27.21 (1) to administer the petroleum tank release cleanup 27.22 program established in this chapter; 27.23 (2) for agency administrative costs under sections 116.46 27.24 to 116.50, sections 115C.03 to 115C.06, and costs of corrective 27.25 action taken by the agency under section 115C.03, including 27.26 investigations; 27.27 (3) for costs of recovering expenses of corrective actions 27.28 under section 115C.04; 27.29 (4) for training, certification, and rulemaking under 27.30 sections 116.46 to 116.50; 27.31 (5) for agency administrative costs of enforcing rules 27.32 governing the construction, installation, operation, and closure 27.33 of aboveground and underground petroleum storage tanks; 27.34 (6) for reimbursement of the environmental response, 27.35 compensation, and compliance account under subdivision 5 and 27.36 section 115B.26, subdivision 4; 28.1 (7) for administrative and staff costs as set by the board 28.2 to administer the petroleum tank release program established in 28.3 this chapter; 28.4 (8) for corrective action performance audits under section 28.5 115C.093; and 28.6 (9) for contamination cleanup grants, as provided in 28.7 paragraph (c); and 28.8 (10) to assess and remove abandoned underground storage 28.9 tanks under section 115C.094 and, if a release is discovered, to 28.10 pay for the specific consultant and contractor services costs 28.11 necessary to complete the tank removal project, including, but 28.12 not limited to, excavation soil sampling, groundwater sampling, 28.13 soil disposal, and completion of an excavation report. 28.14 (b) Except as provided in paragraph (c), money in the fund 28.15 is appropriated to the board to make reimbursements or payments 28.16 under this section. 28.17 (c) $6,200,000 is annually appropriated from the fund to 28.18 the commissioner of trade and economic development for 28.19 contamination cleanup grants under section 116J.554. Of this 28.20 amount, the commissioner may spend up to $120,000 annually for 28.21 administration of the contamination cleanup grant program. The 28.22 appropriation does not cancel and is available until expended. 28.23 The appropriation shall not be withdrawn from the fund nor the 28.24 fund balance reduced until the funds are requested by the 28.25 commissioner of trade and economic development. The 28.26 commissioner shall schedule requests for withdrawals from the 28.27 fund to minimize the necessity to impose the fee authorized by 28.28 subdivision 2. Unless otherwise provided, the appropriation in 28.29 this paragraph may be used for: 28.30 (1) project costs at a qualifying site if a portion of the 28.31 cleanup costs are attributable to petroleum contamination; and 28.32 (2) the costs of performing contamination investigation if 28.33 there is a reasonable basis to suspect the contamination is 28.34 attributable to petroleum. 28.35 Sec. 3. Minnesota Statutes 2002, section 115C.09, 28.36 subdivision 3, is amended to read: 29.1 Subd. 3. [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) 29.2 The board shall reimburse an eligible applicant from the fund 29.3 for 90 percent of the total reimbursable costs incurred at the 29.4 site, except that the board may reimburse an eligible applicant 29.5 from the fund for greater than 90 percent of the total 29.6 reimbursable costs, if the applicant previously qualified for a 29.7 higher reimbursement rate. For costs associated with a release 29.8 from a tank in transport, the board may reimburse 90 percent of 29.9 costs over $10,000, with the maximum reimbursement not to exceed 29.10 $100,000. 29.11 Not more than $1,000,000 may be reimbursed for costs 29.12 associated with a single release, regardless of the number of 29.13 persons eligible for reimbursement, and not more than $2,000,000 29.14 may be reimbursed for costs associated with a single tank 29.15 facility. 29.16 (b) A reimbursement may not be made from the fund under 29.17 this chapter until the board has determined that the costs for 29.18 which reimbursement is requested were actually incurred and were 29.19 reasonable. 29.20 (c) When an applicant has obtained responsible competitive 29.21 bids or proposals according to rules promulgated under this 29.22 chapter prior to June 1, 1995, the eligible costs for the tasks, 29.23 procedures, services, materials, equipment, and tests of the low 29.24 bid or proposal are presumed to be reasonable by the board, 29.25 unless the costs of the low bid or proposal are substantially in 29.26 excess of the average costs charged for similar tasks, 29.27 procedures, services, materials, equipment, and tests in the 29.28 same geographical area during the same time period. 29.29 (d) When an applicant has obtained a minimum of two 29.30 responsible competitive bids or proposals on forms prescribed by 29.31 the board and where the rules promulgated under this chapter 29.32 after June 1, 1995, designate maximum costs for specific tasks, 29.33 procedures, services, materials, equipment and tests, the 29.34 eligible costs of the low bid or proposal are deemed reasonable 29.35 if the costs are at or below the maximums set forth in the rules. 29.36 (e) Costs incurred for change orders executed as prescribed 30.1 in rules promulgated under this chapter after June 1, 1995, are 30.2 presumed reasonable if the costs are at or below the maximums 30.3 set forth in the rules, unless the costs in the change order are 30.4 above those in the original bid or proposal or are 30.5 unsubstantiated and inconsistent with the process and standards 30.6 required by the rules. 30.7 (f) A reimbursement may not be made from the fund in 30.8 response to either an initial or supplemental application for 30.9 costs incurred after June 4, 1987, that are payable under an 30.10 applicable insurance policy, except that if the board finds that 30.11 the applicant has made reasonable efforts to collect from an 30.12 insurer and failed, the board shall reimburse the applicant. 30.13 (g) If the board reimburses an applicant for costs for 30.14 which the applicant has insurance coverage, the board is 30.15 subrogated to the rights of the applicant with respect to that 30.16 insurance coverage, to the extent of the reimbursement by the 30.17 board. The board may request the attorney general to bring an 30.18 action in district court against the insurer to enforce the 30.19 board's subrogation rights. Acceptance by an applicant of 30.20 reimbursement constitutes an assignment by the applicant to the 30.21 board of any rights of the applicant with respect to any 30.22 insurance coverage applicable to the costs that are reimbursed. 30.23 Notwithstanding this paragraph, the board may instead request a 30.24 return of the reimbursement under subdivision 5 and may employ 30.25 against the applicant the remedies provided in that subdivision, 30.26 except where the board has knowingly provided reimbursement 30.27 because the applicant was denied coverage by the insurer. 30.28 (h) Money in the fund is appropriated to the board to make 30.29 reimbursements under this chapter. A reimbursement to a state 30.30 agency must be credited to the appropriation account or accounts 30.31 from which the reimbursed costs were paid. 30.32 (i) The board may reduce the amount of reimbursement to be 30.33 made under this chapter if it finds that the applicant has not 30.34 complied with a provision of this chapter, a rule or order 30.35 issued under this chapter, or one or more of the following 30.36 requirements: 31.1 (1) the agency was given notice of the release as required 31.2 by section 115.061; 31.3 (2) the applicant, to the extent possible, fully cooperated 31.4 with the agency in responding to the release; 31.5 (3) the state rules applicable after December 22, 1993, to 31.6 operating an underground storage tank and appurtenances without 31.7 leak detection; 31.8 (4) the state rules applicable after December 22, 1998, to 31.9 operating an underground storage tank and appurtenances without 31.10 corrosion protection or spill and overfill protection; and 31.11 (5) the state rule applicable after November 1, 1998, to 31.12 operating an aboveground tank without a dike or other structure 31.13 that would contain a spill at the aboveground tank site. 31.14 (j) The reimbursement may be reduced as much as 100 percent 31.15 for failure by the applicant to comply with the requirements in 31.16 paragraph (i), clauses (1) to (5). In determining the amount of 31.17 the reimbursement reduction, the board shall consider: 31.18 (1) the reasonable determination by the agency that the 31.19 noncompliance poses a threat to the environment; 31.20 (2) whether the noncompliance was negligent, knowing, or 31.21 willful; 31.22 (3) the deterrent effect of the award reduction on other 31.23 tank owners and operators; 31.24 (4) the amount of reimbursement reduction recommended by 31.25 the commissioner; and 31.26 (5) the documentation of noncompliance provided by the 31.27 commissioner. 31.28 (k) An applicant mayassign the right to receive31.29reimbursement torequest that the board issue a multiparty check 31.30 that includes each lender who advanced funds to pay the costs of 31.31 the corrective action or to each contractor or consultant who 31.32 provided corrective action services.An assignmentThis request 31.33 must be made by filing with the board a document, in a form 31.34 prescribed by the board, indicating the identity of the 31.35 applicant, the identity of theassigneelender, contractor, or 31.36 consultant, the dollar amountof the assignment, and the 32.1 location of the corrective action.An assignment signed by the32.2applicant is valid unless terminated by filing a termination32.3with the board, in a form prescribed by the board, which must32.4include the written concurrence of the assignee. The board32.5shall maintain an index of assignments filed under this32.6paragraph. The board shall pay the reimbursement to the32.7applicant and to one or more assignees by a multiparty32.8check.The applicant must submit a request for the issuance of 32.9 a multiparty check for each application submitted to the board. 32.10 Payment under this paragraph does not constitute the assignment 32.11 of the applicant's right to reimbursement to the consultant, 32.12 contractor, or lender. The board has no liability to an 32.13 applicant for a paymentunder an assignment meetingissued as a 32.14 multiparty check that meets the requirements of this paragraph. 32.15 (l) Notwithstanding other law to the contrary in this 32.16 section, the board shall reimburse a state agency from the fund 32.17 for 100 percent of its total reimbursable costs at a site. 32.18 Sec. 4. Minnesota Statutes 2002, section 115C.09, is 32.19 amended by adding a subdivision to read: 32.20 Subd. 3i. [REIMBURSEMENT; NATURAL DISASTER AREA.] (a) As 32.21 used in this subdivision, "natural disaster area" means a 32.22 geographical area that has been declared a disaster by the 32.23 governor and President of the United States. 32.24 (b) Notwithstanding subdivision 3, paragraph (a), and 32.25 Minnesota Rules, chapter 2890, with the exception of Minnesota 32.26 Rules, parts 2890.0010 to 2890.0065, and 2890.0090 to 2890.0130, 32.27 the board may reimburse: 32.28 (1) up to 50 percent of an applicant' pre-natural-disaster 32.29 estimated building market value as recorded by the county 32.30 assessor; or 32.31 (2) if the applicant conveys title of the real estate to 32.32 local or state government, up to 50 percent of the 32.33 pre-natural-disaster estimated total market value, not to exceed 32.34 one acre, as recorded by the county assessor. 32.35 (c) Paragraph (b) applies only if the applicant documents 32.36 that: 33.1 (1) the natural disaster area has been declared eligible 33.2 for state or federal emergency aid; 33.3 (2) the building is declared uninhabitable by the 33.4 commissioner because of damage caused by the release of 33.5 petroleum from a petroleum storage tank; and 33.6 (3) the applicant has submitted a claim under any 33.7 applicable insurance policies and has been denied benefits under 33.8 those policies. 33.9 (d) In determining the percentage for reimbursement, the 33.10 board shall consider the applicant's eligibility to receive 33.11 other state or federal financial assistance and determine a 33.12 lesser reimbursement rate to the extent that the applicant is 33.13 eligible to receive financial assistance that exceeds 50 percent 33.14 of the applicant's pre-natural-disaster estimated building 33.15 market value or total market value. 33.16 Sec. 5. [115C.094] [ABANDONED UNDERGROUND STORAGE TANKS.] 33.17 (a) As used in this section, an abandoned underground 33.18 petroleum storage tank means an underground petroleum storage 33.19 tank that was: 33.20 (1) taken out of service prior to December 22, 1988; or 33.21 (2) taken out of service on or after December 22, 1988, if 33.22 the current property owner did not know of the existence of the 33.23 underground petroleum storage tank and cannot reasonably be 33.24 expected to have known of the tank's existence. 33.25 (b) The board may contract for: 33.26 (1) a statewide assessment in order to determine the 33.27 quantity, location, cost, and feasibility of removing abandoned 33.28 underground petroleum storage tanks; 33.29 (2) the removal of an abandoned underground petroleum 33.30 storage tank; and 33.31 (3) the removal and disposal of petroleum-contaminated soil 33.32 if the removal is required by the commissioner at the time of 33.33 tank removal. 33.34 (c) Before the board may contract for removal of an 33.35 abandoned petroleum storage tank, the tank owner must provide 33.36 the board with written access to the property and release the 34.1 board from any potential liability for the work performed. 34.2 (d) Money in the fund is appropriated to the board for the 34.3 purposes of this section. 34.4 Sec. 6. Minnesota Statutes 2002, section 115C.11, 34.5 subdivision 1, is amended to read: 34.6 Subdivision 1. [REGISTRATION.] (a) All consultants and 34.7 contractors who perform corrective action services must register 34.8 with the board. In order to register, consultants must meet and 34.9 demonstrate compliance with the following criteria: 34.10 (1) provide a signed statement to the board verifying 34.11 agreement to abide by this chapter and the rules adopted under 34.12 it and to include a signed statement with each claim that all 34.13 costs claimed by the consultant are a true and accurate account 34.14 of services performed; 34.15 (2) provide a signed statement that the consultant shall 34.16 make available for inspection any records requested by the board 34.17 for field or financial audits under the scope of this chapter; 34.18 (3) certify knowledge of the requirements of this chapter 34.19 and the rules adopted under it; 34.20 (4) obtain and maintain professional liability coverage, 34.21 including pollution impairment liability; and 34.22 (5) agree to submit to the board a certificate or 34.23 certificates verifying the existence of the required insurance 34.24 coverage. 34.25 (b) The board must maintain a list of all registered 34.26 consultants and a list of all registered contractors. 34.27 (c) All corrective action services must be performed by 34.28 registered consultants and contractors. 34.29 (d) Reimbursement for corrective action services performed 34.30 by an unregistered consultant or contractor is subject to 34.31 reduction under section 115C.09, subdivision 3, paragraph (i). 34.32 (e) Corrective action services performed by a consultant or 34.33 contractor prior to being removed from the registration list may 34.34 be reimbursed without reduction by the board. 34.35 (f) If the information in an application for registration 34.36 becomes inaccurate or incomplete in any material respect, the 35.1 registered consultant or contractor must promptly file a 35.2 corrected application with the board. 35.3 (g) Registration is effective 30 days after a complete 35.4 application is received by the board. The board may reimburse 35.5 without reduction the cost of work performed by an unregistered 35.6 contractor if the contractor performed the work within 60 days 35.7 of the effective date of registration. 35.8 (h) Registration for consultants under this section remains 35.9 in force until the expiration date of the professional liability 35.10 coverage, including pollution impairment liability, required 35.11 under paragraph (a), clause (4), or until voluntarily terminated 35.12 by the registrant, or until suspended or revoked by the 35.13 commissioner of commerce. Registration for contractors under 35.14 this section expires each year on the anniversary of the 35.15 effective date of the contractor's most recent registration and 35.16 must be renewed on or before expiration. Prior to its annual 35.17 expiration, a registration remains in force until voluntarily 35.18 terminated by the registrant, or until suspended or revoked by 35.19 the commissioner of commerce. All registrants must comply with 35.20 registration criteria under this section. 35.21 (i) The board may deny a consultant or contractor 35.22 registration or request for renewal under this section if the 35.23 consultant or contractor: 35.24 (1) does not intend to or is not in good faith carrying on 35.25 the business of an environmental consultant or contractor; 35.26 (2) has filed an application for registration that is 35.27 incomplete in any material respect or contains any statement 35.28 which, in light of the circumstances under which it is made, 35.29 contains any misrepresentation, or is false, misleading, or 35.30 fraudulent; 35.31 (3) has engaged in any fraudulent, coercive, deceptive, or 35.32 dishonest act or practice whether or not such act or practice 35.33 involves the business of environmental consulting or 35.34 contracting; 35.35 (4) has forged another's name to any document whether or 35.36 not the document relates to a document approved by the board; 36.1 (5) has plead guilty, with or without explicitly admitting 36.2 guilt; plead nolo contendere; or been convicted of a felony, 36.3 gross misdemeanor, or misdemeanor involving moral turpitude, 36.4 including, but not limited to, assault, harassment, or similar 36.5 conduct; 36.6 (6) has been subject to disciplinary action in another 36.7 state or jurisdiction; or 36.8 (7) has not paid subcontractors hired by the consultant or 36.9 contractor after they have been paid in full by the applicant. 36.10 Sec. 7. Minnesota Statutes 2002, section 115C.13, is 36.11 amended to read: 36.12 115C.13 [REPEALER.] 36.13 Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 36.14 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 36.15 115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112, 36.16 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 36.1720052007. 36.18 Sec. 8. [STATE TANK REMOVAL; INVENTORY AND REIMBURSEMENT.] 36.19 The petroleum tank release compensation board shall 36.20 inventory the sites for which a state agency has incurred 36.21 reimbursable costs under Minnesota Statutes 2002, section 36.22 115C.09, subdivision 1, from 1990 to the present. To the extent 36.23 these costs were not reimbursed or expended from the petroleum 36.24 tank fund or state general obligation bond funds, the board 36.25 shall reimburse the agency for 100 percent of its total 36.26 reimbursable costs, by transferring funds from the petroleum 36.27 tank fund to the general fund or other state fund from which the 36.28 agency expended funds for this purpose. 36.29 ARTICLE 6 36.30 DEPARTMENT OF TRADE AND ECONOMIC 36.31 DEVELOPMENT POLICY PROVISIONS 36.32 Section 1. Minnesota Statutes 2002, section 17.101, 36.33 subdivision 1, is amended to read: 36.34 Subdivision 1. [DEPARTMENTAL DUTIES.] For the purposes of 36.35 expanding, improving, and developing production and marketing of 36.36 products of Minnesota agriculture, the commissioner shall 37.1 encourage and promote the production and marketing of these 37.2 products by means of: 37.3 (a) advertising Minnesota agricultural products; 37.4 (b) assisting state agricultural commodity organizations; 37.5 (c) developing methods to increase processing and marketing 37.6 of agricultural commodities including commodities not being 37.7 produced in Minnesota on a commercial scale, but which may have 37.8 economic potential in national and international markets; 37.9 (d) investigating and identifying new marketing technology 37.10 and methods to enhance the competitive position of Minnesota 37.11 agricultural products; 37.12 (e) evaluating livestock marketing opportunities; 37.13 (f) assessing and developing national and international 37.14 markets for Minnesota agricultural products; 37.15 (g) studying the conversion of raw agricultural products to 37.16 manufactured products including ethanol; 37.17 (h) hosting the visits of foreign trade teams to Minnesota 37.18 and defraying the teams' expenses; 37.19 (i) assisting Minnesota agricultural businesses desiring to 37.20 sell their products; 37.21 (j) conducting research to eliminate or reduce specific 37.22 production or technological barriers to market development and 37.23 trade; and 37.24 (k) other activities the commissioner deems appropriate to 37.25 promote Minnesota agricultural products, provided that the 37.26 activities do not duplicate programs or services provided by the 37.27 Minnesota trade divisionor the Minnesota world trade center. 37.28 Sec. 2. Minnesota Statutes 2002, section 41A.036, 37.29 subdivision 2, is amended to read: 37.30 Subd. 2. [SMALL BUSINESS DEVELOPMENT LOANS; PREFERENCES.] 37.31 The following eligible small businesses have preference among 37.32 all business applicants for small business development loans: 37.33 (1) businesses located in rural areas of the state that are 37.34 experiencing the most severe unemployment rates in the state; 37.35 (2) businesses that are likely to expand and provide 37.36 additional permanent employment in rural areas of the state, or 38.1 enhance the quality of existing jobs in those areas; 38.2 (3) businesses located in border communities that 38.3 experience a competitive disadvantage due to location; 38.4 (4) businesses that have been unable to obtain traditional 38.5 financial assistance due to a disadvantageous location, minority 38.6 ownership, or other factors rather than due to the business 38.7 having been considered a poor financial risk; 38.8 (5) businesses that utilize state resources and reduce 38.9 state dependence on outside resources, and that produce products 38.10 or services consistent with the long-term social and economic 38.11 needs of the state; and 38.12 (6) businesses located in designated enterprise zones, as 38.13 described in section 469.168. 38.14 Sec. 3. Minnesota Statutes 2002, section 115C.08, 38.15 subdivision 4, is amended to read: 38.16 Subd. 4. [EXPENDITURES.] (a) Money in the fund may only be 38.17 spent: 38.18 (1) to administer the petroleum tank release cleanup 38.19 program established in this chapter; 38.20 (2) for agency administrative costs under sections 116.46 38.21 to 116.50, sections 115C.03 to 115C.06, and costs of corrective 38.22 action taken by the agency under section 115C.03, including 38.23 investigations; 38.24 (3) for costs of recovering expenses of corrective actions 38.25 under section 115C.04; 38.26 (4) for training, certification, and rulemaking under 38.27 sections 116.46 to 116.50; 38.28 (5) for agency administrative costs of enforcing rules 38.29 governing the construction, installation, operation, and closure 38.30 of aboveground and underground petroleum storage tanks; 38.31 (6) for reimbursement of the environmental response, 38.32 compensation, and compliance account under subdivision 5 and 38.33 section 115B.26, subdivision 4; 38.34 (7) for administrative and staff costs as set by the board 38.35 to administer the petroleum tank release program established in 38.36 this chapter; 39.1 (8) for corrective action performance audits under section 39.2 115C.093; and 39.3 (9) for contamination cleanup grants, as provided in 39.4 paragraph (c). 39.5 (b) Except as provided in paragraph (c), money in the fund 39.6 is appropriated to the board to make reimbursements or payments 39.7 under this section. 39.8 (c) $6,200,000 is annually appropriated from the fund to 39.9 the commissioner of trade and economic development for 39.10 contamination cleanup grants under section 116J.554. Of this 39.11 amount, the commissioner may spend up to$120,000$180,000 39.12 annually for administration of the contamination cleanup grant 39.13 program. The appropriation does not cancel and is available 39.14 until expended. The appropriation shall not be withdrawn from 39.15 the fund nor the fund balance reduced until the funds are 39.16 requested by the commissioner of trade and economic 39.17 development. The commissioner shall schedule requests for 39.18 withdrawals from the fund to minimize the necessity to impose 39.19 the fee authorized by subdivision 2. Unless otherwise provided, 39.20 the appropriation in this paragraph may be used for: 39.21 (1) project costs at a qualifying site if a portion of the 39.22 cleanup costs are attributable to petroleum contamination; and 39.23 (2) the costs of performing contamination investigation if 39.24 there is a reasonable basis to suspect the contamination is 39.25 attributable to petroleum. 39.26 [EFFECTIVE DATE.] This section is effective June 30, 2003. 39.27 Sec. 4. Minnesota Statutes 2002, section 116J.011, is 39.28 amended to read: 39.29 116J.011 [MISSION.] 39.30 The mission of the department of trade and economic 39.31 development is to employ all of the available state government 39.32 resources to facilitate an economic environment that produces 39.33 net new job growth in excess of the national average, to improve 39.34 the quality of existing jobs, and to increase nonresident and 39.35 resident tourism revenues. It is part of the department's 39.36 mission that within the department's resources the commissioner 40.1 shall endeavor to: 40.2 (1) prevent the waste or unnecessary spending of public 40.3 money; 40.4 (2) use innovative fiscal and human resource practices to 40.5 manage the state's resources and operate the department as 40.6 efficiently as possible; 40.7 (3) coordinate the department's activities wherever 40.8 appropriate with the activities of other governmental agencies; 40.9 (4) use technology where appropriate to increase agency 40.10 productivity, improve customer service, increase public access 40.11 to information about government, and increase public 40.12 participation in the business of government; 40.13 (5) utilize constructive and cooperative labor-management 40.14 practices to the extent otherwise required by chapters 43A and 40.15 179A; 40.16 (6) report to the legislature on the performance of agency 40.17 operations and the accomplishment of agency goals in the 40.18 agency's biennial budget according to section 16A.10, 40.19 subdivision 1; and 40.20 (7) recommend to the legislature appropriate changes in law 40.21 necessary to carry out the mission and improve the performance 40.22 of the department. 40.23 Sec. 5. Minnesota Statutes 2002, section 116J.411, is 40.24 amended by adding a subdivision to read: 40.25 Subd. 2a. [JOB ENHANCEMENT.] "Job enhancement" means an 40.26 increase in wages; and 40.27 (1) an increase in the responsibility or skill level of job 40.28 duties; or 40.29 (2) the provision of additional training or education for 40.30 employees in existing jobs. 40.31 Sec. 6. Minnesota Statutes 2002, section 116J.415, 40.32 subdivision 1, is amended to read: 40.33 Subdivision 1. [ORGANIZATION.] The commissioner shall make 40.34 challenge grants to regional organizations, for the purpose of 40.35 providing financial assistance to encourage private investment, 40.36 to provide jobs or job enhancement for low-income persons, and 41.1 to promote economic development in the rural areas of the state. 41.2 Sec. 7. Minnesota Statutes 2002, section 116J.415, 41.3 subdivision 2, is amended to read: 41.4 Subd. 2. [FUNDING REGIONS.] The commissioner shall divide 41.5 the state outside of the metropolitan area as defined in section 41.6 473.121, subdivision 2, into six regions. A region's boundaries 41.7 must be coterminous with the boundaries of one or more of the 41.8 development regions established under section 462.385. The 41.9 commissioner shalldesignate up to $1,000,000 for each region,41.10to be awarded over a period of three yearsallocate all funds 41.11 remaining in each regional subaccount of the rural 41.12 rehabilitation account, as established under section 166J.955, 41.13 to each respective regional organization. The money designated 41.14 to each region must be used forrevolving loansassistance 41.15 authorized in this section. 41.16 Sec. 8. Minnesota Statutes 2002, section 116J.415, 41.17 subdivision 4, is amended to read: 41.18 Subd. 4. [REVOLVINGLOANFUND.] A regional organization 41.19 shall establish a commissioner certified revolvingloanfundto41.20provide loans to new and expanding businesses in rural Minnesota41.21 to promote economic development in rural Minnesota.Eligible41.22business enterprises include technologically innovative41.23industries, value-added manufacturing, agriprocessing,41.24information industries, and agricultural marketing. Loan41.25applications given preliminary approval by the organization must41.26be forwarded to the commissioner for final approval. The amount41.27of state money allocated for each loan is appropriated from the41.28rural rehabilitation account established in section 116J.955 to41.29the organization's regional revolving loan fund when the41.30commissioner gives final approval for each loan. The amount of41.31money appropriated from the rural rehabilitation account may not41.32exceed 50 percent for each loan. The amount of nonpublic money41.33must equal at least 50 percent for each loan.Funds may be used 41.34 to provide loans, loan guarantees, interest buy-downs, and other 41.35 forms of participation with private sources of financing, 41.36 provided that the financial assistance must be for a principal 42.1 amount that does not exceed one-half of the cost of the project 42.2 for which financing is sought. 42.3 Sec. 9. Minnesota Statutes 2002, section 116J.415, 42.4 subdivision 5, is amended to read: 42.5 Subd. 5. [LOANASSISTANCE CRITERIA.]The following42.6criteria apply to loans made underProjects supported through 42.7 the challenge grant program must be used principally to benefit 42.8 low-income persons by: 42.9(1) loans must be made to businesses that are not likely to42.10undertake a project for which loans are sought without42.11assistance from the challenge grant program;42.12(2) a loan must be used for a project designed principally42.13to benefit low-income persons through the creation of job or42.14business opportunities for them;42.15(3) the minimum loan is $5,000 and the maximum is $200,000;42.16(4) a loan may not exceed 50 percent of the total cost of42.17an individual project;42.18(5) a loan may not be used for a retail development42.19project; and42.20(6) a business applying for a loan, except a42.21microenterprise loan under subdivision 6, must be sponsored by a42.22resolution of the governing body of the local governmental unit42.23within whose jurisdiction the project is located.42.24 (1) creating new jobs or retaining existing jobs; 42.25 (2) increasing the local tax base; 42.26 (3) demonstrating that investment of public dollars induces 42.27 private funds; 42.28 (4) providing higher wage levels to the community or adding 42.29 value to current workforce skills; 42.30 (5) retaining existing business; or 42.31 (6) attracting out-of-state business. 42.32 Sec. 10. Minnesota Statutes 2002, section 116J.415, 42.33 subdivision 7, is amended to read: 42.34 Subd. 7. [REVOLVING FUND ADMINISTRATION.](a) The42.35commissioner shall establish a minimum interest rate for loans42.36to ensure that necessary management costs are covered.43.1(b) LoanRepayment amountsequal to one-half of the43.2principal and interest must be deposited in the rural43.3rehabilitation revolving fund for challenge grants to the region43.4from which the money was originally designated. The remaining43.5amount of the loan repayment maymust be deposited in the 43.6 regional revolvingloanfund for further distribution by the 43.7 regional organization, consistent with the loan criteria 43.8 specified in subdivisions 4 and 5. 43.9(c) The first $1,000,000 of revolving loans for each region43.10must be matched by nonstate sources. The matching requirement43.11does not apply to loans made under paragraph (b).43.12(d) Administrative expenses of each organization may be43.13paid out of the interest earned on loans and on interest earned43.14on money invested by the state board of investment under section43.15116J.413, subdivision 2.43.16 Sec. 11. Minnesota Statutes 2002, section 116J.415, 43.17 subdivision 11, is amended to read: 43.18 Subd. 11. [REPORTING REQUIREMENTS.] An organization that 43.19 receives a challenge grant shall: 43.20 (1) submit an annual report to the commissioner byFebruary43.2115 of eachAugust 30 for the preceding fiscal year that includes 43.22a description of projects supported by the challenge grant43.23program,an account of loans made, written off, and fully paid 43.24 during the calendar year, the source and amount of money 43.25 collected and distributed by thechallenge grant program43.26 regional revolving fund, and theprogram's assets and43.27liabilities, and an explanation of administrative43.28expensesfunds' cash balance and loans receivable; and 43.29 (2) provide for an independent annual audit to be performed 43.30 in accordance with generally accepted accounting practices and 43.31 auditing standards and submit a copy of each annual audit report 43.32 to the commissioner. 43.33 Sec. 12. Minnesota Statutes 2002, section 116J.553, 43.34 subdivision 2, is amended to read: 43.35 Subd. 2. [REQUIRED CONTENT.] (a) The commissioner shall 43.36 prescribe and provide the application form. The application 44.1 must include at least the following information: 44.2 (1) identification of the site; 44.3 (2) an approved response action plan for the site, 44.4 including the results of engineering and other tests showing the 44.5 nature and extent of the release or threatened release of 44.6 contaminants at the site; 44.7 (3) a detailed estimate, along with necessary supporting 44.8 evidence, of the total cleanup costs for the site; 44.9 (4) an appraisal of the current market value of the 44.10 property, separately taking into account the effect of the 44.11 contaminants on the market value, prepared by a qualified 44.12 independent appraiser licensed under chapter 82B using accepted 44.13 appraisal methodology or, the estimated market value of the 44.14 property for the latest year shown on the most recent valuation 44.15 notice used under section 273.121; 44.16 (5) an assessment of the development potential or likely 44.17 use of the site after completion of the response action plan, 44.18 including any specific commitments from third parties to 44.19 construct improvements on the site; 44.20 (6) the manner in which the municipality will meet the 44.21 local match requirement; and 44.22 (7) any additional information or material that the 44.23 commissioner prescribes. 44.24 (b) A response action plan is not required as a condition 44.25 to receive a grant under section 116J.554, subdivision 1, 44.26 paragraph (c). 44.27 Sec. 13. Minnesota Statutes 2002, section 116J.554, 44.28 subdivision 2, is amended to read: 44.29 Subd. 2. [QUALIFYING SITES.] A site qualifies for a grant 44.30 under this section, if the following criteria are met: 44.31 (1) the site is not scheduled for funding during the 44.32 current or next fiscal year under the Comprehensive 44.33 Environmental Response, Compensation, and Liability Act, United 44.34 States Code, title 42, section 9601, et seq. or under the 44.35 Environmental Response, and Liability Act under sections 115B.01 44.36 to 115B.24; 45.1 (2) the appraised value of the site after adjusting for the 45.2 effect on the value of the presence or possible presence of 45.3 contaminants using accepted appraisal methodology, or the 45.4 current market value of the site as issued under section 45.5 273.121, separately taking into account the effect of the 45.6 contaminants on the market value, (i) is less than 75 percent of 45.7 the estimated project costs for the site or (ii) is less than or 45.8 equal to the estimated cleanup costs for the site and the 45.9 cleanup costs equal or exceed $3 per square foot for the site; 45.10 and 45.11 (3) if the proposed cleanup is completed, it is expected 45.12 that the site will be improved with buildings or other 45.13 improvements and these improvements will provide a substantial 45.14 increase in the property tax base within a reasonable period of 45.15 time or the site will be used for an important publicly owned or 45.16 tax-exempt facility. 45.17 Sec. 14. Minnesota Statutes 2002, section 116J.8731, 45.18 subdivision 1, is amended to read: 45.19 Subdivision 1. [PURPOSE.] The Minnesota investment fund is 45.20 created to provide financial assistance, through partnership 45.21 with communities, for the creation of new employment or to 45.22 maintain existing employment, and for business start-up, 45.23 expansions, and retention. It shall accomplish these goals by 45.24 the following means: 45.25 (1) creation or retention of permanent private-sector jobs 45.26 in order to create above-average economic growth consistent with 45.27 environmental protection, which includes investments in 45.28 technology and equipment that increase productivity and provide 45.29 for a higher wage; 45.30 (2) stimulation or leverage of private investment to ensure 45.31 economic renewal and competitiveness; 45.32 (3) increasing the local tax base, based on demonstrated 45.33 measurable outcomes, to guarantee a diversified industry mix; 45.34 (4) improving the quality of existing jobs, based on 45.35 increases in wages or improvements in the job duties, training, 45.36 or education associated with those jobs; 46.1 (5) improvement of employment and economic opportunity for 46.2 citizens in the region to create a reasonable standard of 46.3 living, consistent with federal and state guidelines on low- to 46.4 moderate-income persons; and 46.5(5)(6) stimulation of productivity growth through improved 46.6 manufacturing or new technologies, including cold weather 46.7 testing. 46.8 Sec. 15. Minnesota Statutes 2002, section 116J.8731, 46.9 subdivision 4, is amended to read: 46.10 Subd. 4. [ELIGIBLE PROJECTS.] Assistance must be evaluated 46.11 on the existence of the following conditions: 46.12 (1) creation of new jobsor, retention of existing jobs, or 46.13 improvements in the quality of existing jobs as measured by the 46.14 wages, skills, or education associated with those jobs; 46.15 (2) increase in the tax base; 46.16 (3) the project can demonstrate that investment of public 46.17 dollars induces private funds; 46.18 (4) the project can demonstrate an excessive public 46.19 infrastructure or improvement cost beyond the means of the 46.20 affected community and private participants in the project; 46.21 (5) the project provides higher wage levels to the 46.22 community or will add value to current workforce skills; 46.23 (6) whether assistance is necessary to retain existing 46.24 business; and 46.25 (7) whether assistance is necessary to attract out-of-state 46.26 business. 46.27 A grant or loan cannot be made based solely on a finding 46.28 that the conditions in clause (6) or (7) exist. A finding must 46.29 be made that a condition in clause (1), (2), (3), (4), or (5) 46.30 also exists. 46.31 Applications recommended for funding shall be submitted to 46.32 the commissioner. 46.33 Sec. 16. Minnesota Statutes 2002, section 116J.8731, 46.34 subdivision 5, is amended to read: 46.35 Subd. 5. [GRANT LIMITS.] A Minnesota investment fund grant 46.36 may not be approved for an amount in excess of 47.1$500,000$1,000,000. This limit covers all money paid to 47.2 complete the same project, whether paid to one or more grant 47.3 recipients and whether paid in one or more fiscal years. The 47.4 portion of a Minnesota investment fund grant that exceeds 47.5 $100,000 must be repaid to the state when it is repaid to the 47.6 local community or recognized Indian tribal government by the 47.7 person or entity to which it was loaned by the local community 47.8 or Indian tribal government. Money repaid to the state must be 47.9 credited to the general fund. A grant or loan may not be made 47.10 to a person or entity for the operation or expansion of a casino 47.11 or a store which is used solely or principally for retail 47.12 sales. Persons or entities receiving grants or loans must pay 47.13 each employee total compensation, including benefits not 47.14 mandated by law, that on an annualized basis is equal to at 47.15 least 110 percent of the federal poverty level for a family of 47.16 four. 47.17 Sec. 17. Minnesota Statutes 2002, section 116J.8731, 47.18 subdivision 7, is amended to read: 47.19 Subd. 7. [CONTRACTUAL OBLIGATION.] A business receiving 47.20 Minnesota investment fund grants must demonstrate why the grant 47.21 is necessary for a project and enter into an agreement with the 47.22 local grantor. The agreement, among other things, must obligate 47.23 the recipient to pay the minimum compensation set by this 47.24 section and meet job creation or job enhancement goals. A 47.25 recipient that breaches the agreement must repay the grant 47.26 directly to the commissioner. Repayments under this subdivision 47.27 must be deposited in the general fund. If the commissioner 47.28 determines, during the repayment period of a Minnesota 47.29 investment fund loan, that the project for which the loan was 47.30 made is in imminent danger of ceasing operations due to 47.31 financial difficulties, the commissioner may elect to delay loan 47.32 payments due on the loan for a period of no more than two 47.33 years. In making a determination about whether a recipient 47.34 qualifies for possible delay in payments, the commissioner must 47.35 consider all available information regarding the health of the 47.36 affected business and the industry in which it operates, the 48.1 potential for displacement of workers in the event that 48.2 operations cease, and the likelihood that a delay of payments 48.3 will provide the business with a reasonable ability to improve 48.4 its financial condition. 48.5 Sec. 18. Minnesota Statutes 2002, section 116J.8764, is 48.6 amended by adding a subdivision to read: 48.7 Subd. 2a. [ENROLLMENT OF LOANS WITHOUT COMMISSIONER'S FULL 48.8 PREMIUM PAYMENT.] The commissioner may continue to accept loans 48.9 for enrollment into the program even if the amount of funds 48.10 contained in the account is zero or an amount less than the full 48.11 amount that is required to be transferred under section 48.12 116J.8765, subdivision 2, paragraph (a), (b), or (c). 48.13 Sec. 19. Minnesota Statutes 2002, section 116J.955, 48.14 subdivision 2, is amended to read: 48.15 Subd. 2. [EXPENDITURE OF ACCOUNT.] The commissioner may 48.16 use the rural rehabilitation account for the purposes that are 48.17 allowed under the Minnesota rural rehabilitation corporation's 48.18 charter and agreementwith, as may be amended or modified by, 48.19 the United States Secretary of Agriculture as provided in Public 48.20 Law Number 499, 81st Congress, enacted May 3, 1950 and as 48.21 allowed under Laws 1987, chapter 386, article 1. Not more than 48.22 three percent of the combined book value of the Minnesota rural 48.23 rehabilitationcorporation's assetsaccount and the regional 48.24 revolving funds may be used for administrative purposes in a 48.25 year without approval of the United States Secretary of 48.26 Agriculture. Any funds used for administrative purposes may 48.27 only be drawn from money remaining in the Minnesota rural 48.28 rehabilitation account. 48.29 Sec. 20. Minnesota Statutes 2002, section 116J.966, 48.30 subdivision 1, is amended to read: 48.31 Subdivision 1. [GENERALLY.] (a) The commissioner shall 48.32 promote, develop, and facilitate trade and foreign investment in 48.33 Minnesota. In furtherance of these goals, and in addition to 48.34 the powers granted by section 116J.035, the commissioner may: 48.35 (1) locate, develop, and promote international markets for 48.36 Minnesota products and services; 49.1 (2) arrange and lead trade missions to countries with 49.2 promising international markets for Minnesota goods, technology, 49.3 services, and agricultural products; 49.4 (3) promote Minnesota products and services at domestic and 49.5 international trade shows; 49.6 (4) organize, promote, and present domestic and 49.7 international trade shows featuring Minnesota products and 49.8 services; 49.9 (5) host trade delegations and assist foreign traders in 49.10 contacting appropriate Minnesota businesses and investments; 49.11 (6) develop contacts with Minnesota businesses and gather 49.12 and provide information to assist them in locating and 49.13 communicating with international trading or joint venture 49.14 counterparts; 49.15 (7) provide information, education, and counseling services 49.16 to Minnesota businesses regarding the economic, commercial, 49.17 legal, and cultural contexts of international trade; 49.18 (8) provide Minnesota businesses with international trade 49.19 leads and information about the availability and sources of 49.20 services relating to international trade, such as export 49.21 financing, licensing, freight forwarding, international 49.22 advertising, translation, and custom brokering; 49.23 (9) locate, attract, and promote foreign direct investment 49.24 and business development in Minnesota to enhance employment 49.25 opportunities in Minnesota; 49.26 (10) provide foreign businesses and investors desiring to 49.27 locate facilities in Minnesota information regarding sources of 49.28 governmental, legal, real estate, financial, and business 49.29 services; 49.30 (11) enter into contracts or other agreements with private 49.31 persons and public entities, including agreements to establish 49.32 and maintain offices and other types of representation in 49.33 foreign countries, to carry out the purposes of promoting 49.34 international trade and attracting investment from foreign 49.35 countries to Minnesota and to carry out this section, without 49.36 regard to section 16C.06; and 50.1 (12) market trade-related materials to businesses and 50.2 organizations, and the proceeds of which must be placed in a 50.3 special revolving account and are appropriated to the 50.4 commissioner to prepare and distribute trade-related materials. 50.5 (b) The commissioner may expend money to carry out this 50.6 section. Promotional expenses include, but are not limited to, 50.7 expenses for the food, lodging, and travel of consultants and 50.8 speakers, and publications and other forms of advertising. 50.9 (c) The programs and activities of the commissioner of 50.10 trade and economic development and the Minnesota trade division 50.11 may not duplicate programs and activities of the commissioner of 50.12 agricultureor the Minnesota world trade center. 50.13(c)(d) The commissioner shall notify the chairs of the 50.14 senate finance and house appropriations committees of each 50.15 agreement under this subdivision to establish and maintain an 50.16 office or other type of representation in a foreign country. 50.17 Sec. 21. Minnesota Statutes 2002, section 116J.994, 50.18 subdivision 4, is amended to read: 50.19 Subd. 4. [WAGE AND JOB GOALS.] The subsidy agreement, in 50.20 addition to any other goals, must include: (1) goals for the 50.21 number of jobs created, which may include separate goals for the 50.22 number of part-time or full-time jobs, or, in cases where job 50.23 loss is specific and demonstrable, goals for the number of jobs 50.24 retained;and(2) wage goals fortheany jobs created or 50.25 retained; and (3) wage goals for any jobs to be enhanced through 50.26 increased wages. After a public hearing, if the creation or 50.27 retention of jobs is determined not to be a goal, the wage and 50.28 job goals may be set at zero. 50.29 In addition to other specific goal time frames, the wage 50.30 and job goals must contain specific goals to be attained within 50.31 two years of the benefit date. 50.32 Sec. 22. Minnesota Statutes 2002, section 116J.995, is 50.33 amended to read: 50.34 116J.995 [ECONOMIC GRANTS.] 50.35 An appropriation rider in an appropriation to the 50.36 department of trade and economic development that specifies that 51.1 the appropriation be granted to a particular business or class 51.2 of businesses must contain a statement of the expected benefits 51.3 associated with the grant. At a minimum, the statement must 51.4 include goals for the number of jobs created or enhanced, wages 51.5 paid, and the tax revenue increases due to the grant. The wage 51.6 and job goals must contain specific goals to be attained within 51.7 two years of the benefit date. The statement must specify the 51.8 recipient's obligation if the recipient does not attain the 51.9 goals. At a minimum, the statement must require a recipient 51.10 failing to meet the job and wage goals to pay back the 51.11 assistance plus interest to the department of trade and economic 51.12 development provided that repayment may be prorated to reflect 51.13 partial fulfillment of goals. The interest rate must be set at 51.14 no less than the implicit price deflator as defined under 51.15 section 116J.994, subdivision 6. The legislature, after a 51.16 public hearing, may extend for up to one year the period for 51.17 meeting the goals provided in the statement. 51.18 Sec. 23. Minnesota Statutes 2002, section 116L.02, is 51.19 amended to read: 51.20 116L.02 [JOB SKILLS PARTNERSHIP PROGRAM.] 51.21 (a) The Minnesota job skills partnership program is created 51.22 to act as a catalyst to bring together employers with specific 51.23 training needs with educational or other nonprofit institutions 51.24 which can design programs to fill those needs. The partnership 51.25 shall work closely with employers to prepare, train and place 51.26 prospective or incumbent workers in identifiable positions as 51.27 well as assisting educational or other nonprofit institutions in 51.28 developing training programs that coincide with current and 51.29 future employer requirements. The partnership shall provide 51.30 grants to educational or other nonprofit institutions for the 51.31 purpose of training workers. A participating business must 51.32 match the grant-in-aid made by the Minnesota job skills 51.33 partnership. The match may be in the form of funding, 51.34 equipment, or faculty. 51.35 (b) The partnership program shall administer the health 51.36 care and human services worker training and retention program 52.1 under sections 116L.10 to 116L.15. 52.2 (c) The partnership program is authorized to use funds to 52.3 pay for training for individuals who have incomes at or below 52.4 200 percent of the federal poverty line. The board may grant 52.5 funds to eligible recipients to pay for board-certified training. 52.6 Eligible recipients of grants may include public, private, or 52.7 nonprofit entities that provide employment services to 52.8 low-income individuals. 52.9 Sec. 24. Minnesota Statutes 2002, section 116L.04, 52.10 subdivision 1, is amended to read: 52.11 Subdivision 1. [PARTNERSHIP PROGRAM.] (a) The partnership 52.12 program may provide grants-in-aid to educational or other 52.13 nonprofit educational institutions using the following 52.14 guidelines: 52.15 (1) the educational or other nonprofit educational 52.16 institution is a provider of training within the state in either 52.17 the public or private sector; 52.18 (2) the program involves skills training that is an area of 52.19 employment need; and 52.20 (3) preference will be given to educational or other 52.21 nonprofit training institutions which serve economically 52.22 disadvantaged people, minorities, or those who are victims of 52.23 economic dislocation and to businesses located in rural areas. 52.24 (b) A single grant to any one institution shall not exceed 52.25 $400,000. Up to 25 percent of a grant may be used for 52.26 preemployment training. 52.27 Sec. 25. Minnesota Statutes 2002, section 116L.04, 52.28 subdivision 1a, is amended to read: 52.29 Subd. 1a. [PATHWAYS PROGRAM.] The pathways program may 52.30 provide grants-in-aid for developing programs which assist in 52.31 the transition of persons from welfare to work and assist 52.32 individuals at or below 200 percent of the federal poverty 52.33 guidelines. The program is to be operated by the board. The 52.34 board shall consult and coordinate with program administrators 52.35 at the department of economic security to design and provide 52.36 services for temporary assistance for needy families recipients. 53.1 Pathways grants-in-aid may be awarded to educational or 53.2 other nonprofit training institutions for education and training 53.3 programs and services supporting education and training programs 53.4 that serve eligible recipients. 53.5 Preference shall be given to projects that: 53.6 (1) provide employment with benefits paid to employees; 53.7 (2) provide employment where there are defined career paths 53.8 for trainees; 53.9 (3) pilot the development of an educational pathway that 53.10 can be used on a continuing basis for transitioning persons from 53.11 welfare to work; and 53.12 (4) demonstrate the active participation of department of 53.13 economic security workforce centers, Minnesota state college and 53.14 university institutions and other educational institutions, and 53.15 local welfare agencies. 53.16 Pathways projects must demonstrate the active involvement 53.17 and financial commitment of private business. Pathways projects 53.18 must be matched with cash or in-kind contributions on at least a 53.19 one-to-one ratio by participating private business. 53.20 A single grant to any one institution shall not exceed 53.21 $400,000. 53.22The board shall annually, by March 31, report to the53.23commissioners of economic security and trade and economic53.24development on pathways programs, including the number of53.25recipients participating in the program, the number of53.26participants placed in employment, the salary and benefits they53.27receive, and the state program costs per participant.53.28 Sec. 26. Minnesota Statutes 2002, section 116L.12, 53.29 subdivision 4, is amended to read: 53.30 Subd. 4. [GRANTS.] Within the limits of available 53.31 appropriations, the board shall make grants not to exceed 53.32 $400,000 each to qualifying consortia to operate local, 53.33 regional, or statewide training and retention programs. Grants 53.34 may be made from TANF funds, general fund appropriations, and 53.35 any other funding sources available to the board, provided the 53.36 requirements of those funding sources are satisfied. Up to 25 54.1 percent of a grant may be used for preemployment training. 54.2 Grant awards must establish specific, measurable outcomes and 54.3 timelines for achieving those outcomes. 54.4 Sec. 27. Minnesota Statutes 2002, section 116L.17, 54.5 subdivision 2, is amended to read: 54.6 Subd. 2. [GRANTS.] The board shall make grants to 54.7 workforce service areas or other eligible organizations to 54.8 provide services to dislocated workers. The board shall 54.9 allocate funds available for the purposes of this section in its 54.10 discretion to respond to large layoffs. The board shall 54.11 regularly allocate funds to provide services to individual 54.12 dislocated workers or small groups. The allocation for this 54.13 purpose must be no less than 35 percent and no more than 50 54.14 percent of theprojectedactual collections, interest and other 54.15 earnings of the workforce development fund during the period for 54.16 which the allocation is made, less any collection costs paid out 54.17 of the fund and any amounts appropriated by the legislature from 54.18 the workforce development fund for programs other than the state 54.19 dislocated worker program. The board shall consider the need 54.20 for services to individual workers and workers in small layoffs 54.21 in comparison to those in large layoffs relative to the needs in 54.22 previous years when making this allocation. The board may, in 54.23 its discretion, allocate funds carried forward from previous 54.24 years under subdivision 9 for large, small, or individual 54.25 layoffs. 54.26 Sec. 28. Minnesota Statutes 2002, section 116L.17, 54.27 subdivision 3, is amended to read: 54.28 Subd. 3. [ALLOCATION OF FUNDS.] The board, in consultation 54.29 with local workforce councils and local elected officials, shall 54.30 develop a method of distributing funds to provide services for 54.31 dislocated workers who are dislocated as a result of small or 54.32 individual layoffs. The board shall consider current requests 54.33 for services and the likelihood of future layoffs when making 54.34 this allocation. The board shall consider factors for 54.35 determining the allocation amounts that include, but are not 54.36 limited to, the previous year's obligations and projected 55.1 layoffs. After the first quarter of the program year, the board 55.2 shall evaluate the obligations by workforce service areas for 55.3 the purpose of reallocating funds to workforce service areas 55.4 with increased demand for services. Periodically throughout the 55.5 program year, the board shall consider making additional 55.6 allocations to the workforce service areas with a demonstrated 55.7 need for increased funding. The board shall make an initial 55.8 determination regarding allocations under this subdivision by 55.9 July 15, 2001, and in subsequent years shall make a 55.10 determination byAprilJune 15. 55.11 Sec. 29. Minnesota Statutes 2002, section 116L.17, 55.12 subdivision 8, is amended to read: 55.13 Subd. 8. [ADMINISTRATIVE COSTS.] No more thanthreefive 55.14 percent of the funds appropriated to the board for the purposes 55.15 of this section may be spent by the board for its administrative 55.16 costs. 55.17 Sec. 30. Minnesota Statutes 2002, section 116L.17, is 55.18 amended by adding a subdivision to read: 55.19 Subd. 9. [RAPID RESPONSE ACTIVITIES.] The commissioner 55.20 shall be responsible for implementing the following rapid 55.21 response activities: 55.22 (1) establishing on-site contact with employer and employee 55.23 representatives within a short period of time after becoming 55.24 aware of a current or projected plant closing or substantial 55.25 layoff in order to: 55.26 (i) provide information on and facilitate access to 55.27 available public programs and services; and 55.28 (ii) provide emergency assistance adapted to the particular 55.29 closure or layoff; 55.30 (2) promoting the formation of a employee-management 55.31 committee by providing: 55.32 (i) immediate assistance in the establishment of the 55.33 employee-management committee; 55.34 (ii) technical advice and information on sources of 55.35 assistance and liaison with other public and private services 55.36 and programs; and 56.1 (iii) assistance in the selection of worker representatives 56.2 in the event no union is present; 56.3 (3) collecting and disseminating information related to 56.4 economic dislocation, including potential closings or layoffs, 56.5 and all available resources with the state for dislocated 56.6 workers; 56.7 (4) providing or obtaining appropriate financial and 56.8 technical advice and liaison with economic development agencies 56.9 and other organizations to assist in efforts to avert 56.10 dislocation; 56.11 (5) disseminating information throughout the state on the 56.12 availability of services and activities carried out by the 56.13 dislocated worker unit; and 56.14 (6) assisting the local community in developing its own 56.15 coordinated response to a plant closing or substantial layoff 56.16 and access to state economic development assistance. 56.17 Sec. 31. Minnesota Statutes 2002, section 116M.14, 56.18 subdivision 4, is amended to read: 56.19 Subd. 4. [LOW-INCOME AREA.] "Low-income area" means 56.20 Minneapolis, St. Paul, and those cities in the metropolitan area 56.21 as defined in section 473.121, subdivision 2, that have an 56.22 average income that is below6080 percent of the median income 56.23 for a four-person family as of the latest report by the United 56.24 States Census Bureau. 56.25 Sec. 32. [NAFTA AND FTAA REVIEW AND REPORT.] 56.26 The commissioner of trade and economic development shall 56.27 analyze and report to the legislature on the negative and 56.28 positive impacts of the North American Free Trade Agreement 56.29 (NAFTA) and its pending expansion to 34 more countries in South 56.30 and Central America under the pending Free Trade Areas of the 56.31 Americas (FTAA). The analysis shall include but not be limited 56.32 to: 56.33 (1) the number of manufacturing jobs in Minnesota lost or 56.34 gained to foreign competition and the sectors expected to 56.35 experience job losses; 56.36 (2) the restrictions on public subsidies for economic 57.1 development, job creation and job training including tax free 57.2 zones, enterprise zones, tourism promotion, bio-research 57.3 promotion; 57.4 (3) the treatment of foreign investors as compared to 57.5 domestic investors; 57.6 (4) subsidies for housing; and 57.7 (5) other trade agreement rules that potentially conflict 57.8 with state or local law-making authority and opportunities to 57.9 promote economic development in Minnesota. 57.10 The commissioner shall report preliminary findings to the 57.11 chairs of the house jobs and economic development and commerce 57.12 committees and the senate jobs and economic development and 57.13 commerce committees by July 15, 2003. The commissioner shall 57.14 make a final report by January 1, 2004, in order to allow the 57.15 Minnesota legislature and governor the option to join with other 57.16 states who are expressing their concerns about potential loss or 57.17 gains of state and local governing authority to the United 57.18 States Trade Representative, who is currently engaged in private 57.19 negotiations in which the state and the governor have no 57.20 representative to protect state and local sovereignty. 57.21 Sec. 33. [REPEALER.] 57.22 Minnesota Statutes 2002, sections 13.598, subdivision 2; 57.23 116J.411, subdivision 3; 116J.415, subdivisions 6, 9, and 10; 57.24 116J.693; 116J.9665; and 116L.03, subdivision 7, are repealed. 57.25 ARTICLE 7 57.26 VAPOR RECOVERY 57.27 Section 1. Minnesota Statutes 2002, section 115C.09, is 57.28 amended by adding a subdivision to read: 57.29 Subd. 3j. [RETAIL LOCATIONS AND TRANSPORT VEHICLES.] (a) 57.30 As used in this subdivision, "retail location" means a facility 57.31 located in the metropolitan area as defined in section 473.121, 57.32 subdivision 2, where gasoline is offered for sale to the general 57.33 public for use in automobiles and trucks. "Transport vehicle" 57.34 means a liquid fuel cargo tank used to deliver gasoline into 57.35 underground storage tanks during 2002 at a retail location. 57.36 (b) Notwithstanding any other provision in this chapter, 58.1 and any rules adopted under this chapter, the board shall 58.2 reimburse 90 percent of an applicant's cost for retrofits of 58.3 retail locations and transport vehicles completed between 58.4 January 1, 2001, and January 1, 2006, to comply with section 58.5 116.49, subdivisions 3 and 4, provided that the board determines 58.6 the costs were incurred and reasonable. The reimbursement may 58.7 not exceed $3,000 per retail location and $3,000 per transport 58.8 vehicle. 58.9 Sec. 2. Minnesota Statutes 2002, section 116.073, 58.10 subdivision 1, is amended to read: 58.11 Subdivision 1. [AUTHORITY TO ISSUE.] (a) Pollution control 58.12 agency staff designated by the commissioner and department of 58.13 natural resources conservation officers may issue citations to a 58.14 person who: 58.15 (1) disposes of solid waste as defined in section 116.06, 58.16 subdivision 22, at a location not authorized by law for the 58.17 disposal of solid waste without permission of the owner of the 58.18 property; 58.19 (2) fails to report or recover discharges as required under 58.20 section 115.061;or58.21 (3) fails to take discharge preventive or preparedness 58.22 measures required under chapter 115E; or 58.23 (4) fails to install or use vapor recovery equipment during 58.24 the transfer of gasoline from a transport delivery vehicle to an 58.25 underground storage tank as required in section 116.49, 58.26 subdivisions 3 and 4. 58.27 (b) In addition, pollution control agency staff designated 58.28 by the commissioner may issue citations to owners and operators 58.29 of facilities dispensing petroleum products who violate sections 58.30 116.46 to 116.50 and Minnesota Rules, chapters 7150 and 7151 and 58.31 parts 7001.4200 to 7001.4300. A citation issued under this 58.32 subdivision must include a requirement that the person cited 58.33 remove and properly dispose of or otherwise manage the waste or 58.34 discharged oil or hazardous substance, reimburse any government 58.35 agency that has disposed of the waste or discharged oil or 58.36 hazardous substance and contaminated debris for the reasonable 59.1 costs of disposal, or correct any storage tank violations. 59.2 (c) Until June 1, 2004, citations for violation of sections 59.3 115E.045 and 116.46 to 116.50 and Minnesota Rules, chapters 7150 59.4 and 7151, may be issued only after the owners and operators have 59.5 had a 90-day period to correct violations stated in writing by 59.6 pollution control agency staff, unless there is a discharge 59.7 associated with the violation or the violation is of Minnesota 59.8 Rules, part 7151.6400, subpart 1, item B, or 7151.6500. 59.9 Sec. 3. Minnesota Statutes 2002, section 116.073, 59.10 subdivision 2, is amended to read: 59.11 Subd. 2. [PENALTY AMOUNT.] The citation must impose the 59.12 following penalty amounts: 59.13 (1) $100 per major appliance, as defined in section 59.14 115A.03, subdivision 17a, up to a maximum of $2,000; 59.15 (2) $25 per waste tire, as defined in section 115A.90, 59.16 subdivision 11, up to a maximum of $2,000; 59.17 (3) $25 per lead acid battery governed by section 115A.915, 59.18 up to a maximum of $2,000; 59.19 (4) $1 per pound of other solid waste or $20 per cubic foot 59.20 up to a maximum of $2,000; 59.21 (5) up to $200 for any amount of waste that escapes from a 59.22 vehicle used for the transportation of solid waste if, after 59.23 receiving actual notice that waste has escaped the vehicle, the 59.24 person or company transporting the waste fails to immediately 59.25 collect the waste; 59.26 (6) $50 per violation of rules adopted under section 59.27 116.49, relating to underground storage tank system design, 59.28 construction, installation, and notification requirements, up to 59.29 a maximum of $2,000; 59.30 (7) $250 per violation of rules adopted under section 59.31 116.49, relating to upgrading of existing underground storage 59.32 tank systems, up to a maximum of $2,000; 59.33 (8) $100 per violation of rules adopted under section 59.34 116.49, relating to underground storage tank system general 59.35 operating requirements, up to a maximum of $2,000; 59.36 (9) $250 per violation of rules adopted under section 60.1 116.49, relating to underground storage tank system release 60.2 detection requirements, up to a maximum of $2,000; 60.3 (10) $50 per violation of rules adopted under section 60.4 116.49, relating to out-of-service underground storage tank 60.5 systems and closure, up to a maximum of $2,000; 60.6 (11) $50 per violation of sections 116.48 to 116.491 60.7 relating to underground storage tank system notification, 60.8 monitoring, environmental protection, and tank installers 60.9 training and certification requirements, up to a maximum of 60.10 $2,000; 60.11 (12) $25 per gallon of oil or hazardous substance 60.12 discharged which is not reported or recovered under section 60.13 115.061, up to a maximum of $2,000; 60.14 (13) $1 per gallon of oil or hazardous substance being 60.15 stored, transported, or otherwise handled without the prevention 60.16 or preparedness measures required under chapter 115E, up to a 60.17 maximum of $2,000;and60.18 (14) $250 per violation of Minnesota Rules, parts 7001.4200 60.19 to 7001.4300 or chapter 7151, related to aboveground storage 60.20 tank systems, up to a maximum of $2,000; and 60.21 (15) $250 per delivery made in violation of section 116.49, 60.22 subdivision 3 or 4, levied against: 60.23 (i) the retail location if vapor recovery equipment is not 60.24 installed or maintained properly; 60.25 (ii) the carrier if the transport delivery vehicle is not 60.26 equipped with vapor recovery equipment; or 60.27 (iii) the driver for failure to use supplied vapor recovery 60.28 equipment. 60.29 Sec. 4. Minnesota Statutes 2002, section 116.46, is 60.30 amended by adding a subdivision to read: 60.31 Subd. 7a. [RETAIL LOCATION.] "Retail location" means a 60.32 facility located in the metropolitan area as defined in section 60.33 473.121, subdivision 2, where gasoline is offered for sale to 60.34 the general public for use in automobiles and trucks. 60.35 Sec. 5. Minnesota Statutes 2002, section 116.46, is 60.36 amended by adding a subdivision to read: 61.1 Subd. 7b. [TRANSPORT DELIVERY VEHICLE.] "Transport 61.2 delivery vehicle" means a liquid fuel cargo tank used to deliver 61.3 gasoline into underground storage tanks. 61.4 Sec. 6. Minnesota Statutes 2002, section 116.46, is 61.5 amended by adding a subdivision to read: 61.6 Subd. 9. [VAPOR RECOVERY SYSTEM.] "Vapor recovery system" 61.7 means a system which transfers vapors from underground storage 61.8 tanks during the filling operation to the storage compartment of 61.9 the transport vehicle delivering gasoline. 61.10 Sec. 7. Minnesota Statutes 2002, section 116.49, is 61.11 amended by adding a subdivision to read: 61.12 Subd. 3. [VAPOR RECOVERY SYSTEM.] Every underground 61.13 gasoline storage tank at a retail location must be fitted with 61.14 vapor recovery equipment by January 1, 2006. The equipment must 61.15 be certified by the manufacturer as capable of collecting 95 61.16 percent of hydrocarbons emitted during gasoline transfers from a 61.17 transport delivery vehicle to an underground storage tank. 61.18 Product delivery and vapor recovery access points must be on the 61.19 same side of the transport vehicle when the transport vehicle is 61.20 positioned for delivery into the underground tank. After 61.21 January 1, 2006, no gasoline may be delivered to a retail 61.22 location that is not equipped with a vapor recovery system. 61.23 Sec. 8. Minnesota Statutes 2002, section 116.49, is 61.24 amended by adding a subdivision to read: 61.25 Subd. 4. [VAPOR RECOVERY ON TRANSPORTS.] All transport 61.26 delivery vehicles that deliver gasoline into underground storage 61.27 tanks in the metropolitan area as defined in section 473.121, 61.28 subdivision 2, must be fitted with vapor recovery equipment. 61.29 The equipment must recover and manage 95 percent of hydrocarbons 61.30 emitted during the transfer of gasoline from the underground 61.31 storage tank and the transport delivery vehicle by January 1, 61.32 2006. After January 1, 2006, no gasoline may be delivered to a 61.33 retail location by a transport vehicle that is not fitted with 61.34 vapor recovery equipment. 61.35 Sec. 9. Minnesota Statutes 2002, section 116.50, is 61.36 amended to read: 62.1 116.50 [PREEMPTION.] 62.2 Sections 116.46 to 116.49 preempt conflicting local and 62.3 municipal rules or ordinances requiring notification or 62.4 establishing environmental protection requirements for 62.5 underground storage tanks. A state agency or local unit of 62.6 government may not adopt rules or ordinances establishing or 62.7 requiring vapor recovery for underground storage tanks. 62.8 ARTICLE 8 62.9 MOTOR VEHICLE INSTALLMENT SALES 62.10 Section 1. Minnesota Statutes 2002, section 47.59, 62.11 subdivision 4a, is amended to read: 62.12 Subd. 4a. [FINANCE CHARGE FOR MOTOR VEHICLE RETAIL 62.13 INSTALLMENT SALES.] A retail installment contract evidencing the 62.14 retail installment sale of a motor vehicle as defined in section 62.15 168.66 is subject to the finance charge limitations in 62.16 paragraphs (a) and (b). 62.17 (a) The finance charge authorized by this subdivision in a 62.18 retail installment sale may not exceed the following annual 62.19 percentage rates applied to the principal balance determined in 62.20 the same manner as in section 168.71, subdivision 2, clause (5): 62.21 (1) Class 1. A motor vehicle designated by the 62.22 manufacturer by a year model of the same or not more than one 62.23 year before the year in which the sale is made, 18 percent per 62.24 year. 62.25 (2) Class 2. A motor vehicle designated by the 62.26 manufacturer by a year model of two to three years before the 62.27 year in which the sale is made, 19.75 percent per year. 62.28 (3) Class 3. Any motor vehicle not in Class 1 or Class 2, 62.29 23.25 percent per year. 62.30 (b) A sale of a manufactured home made after July 31, 1983, 62.31 is governed by this subdivision for purposes of determining the 62.32 lawful finance charge rate, except that the maximum finance 62.33 charge for a Class 1 manufactured home may not exceed 14.5 62.34 percent per year. A retail installment sale of a manufactured 62.35 home that imposes a finance charge that is greater than the rate 62.36 permitted by this subdivision is lawful and enforceable in 63.1 accordance with its terms until the indebtedness is fully 63.2 satisfied if the rate was lawful when the sale was made. 63.3 Sec. 2. Minnesota Statutes 2002, section 168.66, 63.4 subdivision 14, is amended to read: 63.5 Subd. 14. [CASH SALE PRICE.] "Cash sale price" means the 63.6 price at which the seller would in good faith sell to the buyer, 63.7 and the buyer would in good faith buy from the seller, the motor 63.8 vehicle which is the subject matter of the retail installment 63.9 contract, if such sale were a sale for cash, instead of a retail 63.10 installment sale. The cash sale price may include any taxes, 63.11 charges for delivery, servicing, repairing or improving the 63.12 motor vehicle, including accessories and their installation, and 63.13 any other charges agreed upon between the parties. The cash 63.14 price may not include a documentary fee or document 63.15 administration fee in excess of$25$50 for services actually 63.16 rendered to, for, or on behalf of, the retail buyer in 63.17 preparing, handling, and processing documents relating to the 63.18 motor vehicle and the closing of the retail sale. 63.19 Sec. 3. Minnesota Statutes 2002, section 168.71, 63.20 subdivision 2, is amended to read: 63.21 Subd. 2. [CONTENTS.] The retail installment contract shall 63.22 contain the following items: 63.23 (1) the cash sale price of the motor vehicle which is the 63.24 subject matter of the retail installment contract; 63.25 (2) the total amount of the retail buyer's down payment, 63.26 whether made in money or goods, or partly in money or partly in 63.27 goods; 63.28 (3) the difference between clauses (1) and (2); 63.29 (4) thechargeamount, if any, included in the transaction 63.30 but not included in clause (1) to pay the balance of an existing 63.31 purchase money motor vehicle lien which exceeds the value of the 63.32 trade-in amount,orto discharge an interest in an existing 63.33 motor vehicle lease, for any insuranceand other benefits not63.34included in clause (1), specifying the types of coverageand, 63.35 taxes, fees, and charges that actually are or will be paid to 63.36 public officials or government agencies, including those for 64.1 perfecting, releasing, or satisfying a security interestif such64.2taxes, fees, or charges are not included in clause (1), and any 64.3 other amount to be financed that is related to the transaction; 64.4 (5) principal balance, which is the sum of clauses (3) and 64.5 (4); 64.6 (6) the amount of the finance charge; 64.7 (7) the total of payments payable by the retail buyer to 64.8 the retail seller and the number of installment payments 64.9 required and the amount of each installment expressed in dollars 64.10 or percentages, and date of each payment necessary finally to 64.11 pay the total of payments which is the sum of clauses (5) and 64.12 (6). 64.13 Provided, however, that said clauses (1) to (7) inclusive need 64.14 not be stated in the terms, sequence, or order set forth above. 64.15 Provided further, that clauses (6) and (7) may be disclosed on 64.16 the assumption that all scheduled payments under the contract 64.17 will be made when due. 64.18 In lieu of the above clauses, the retail seller may give the 64.19 retail buyer disclosures which satisfy the requirements of the 64.20 Federal Truth-In-Lending Act in effect as of the time of the 64.21 contract, notwithstanding whether or not that act applies to the 64.22 transaction. 64.23 Sec. 4. Minnesota Statutes 2002, section 168.75, is 64.24 amended to read: 64.25 168.75 [VEHICLE SALES FINANCE COMPANY VIOLATIONS; 64.26 REMEDIES.] 64.27(a)Subdivision 1. [CRIMINAL VIOLATIONS.] Any person 64.28 engaged in the business of a sales finance company in this state 64.29 without a license therefor as provided in sections 168.66 to 64.30 168.77 shall be guilty of a gross misdemeanor and punished by a 64.31 fine not exceeding $3,000, or by imprisonment for a period not 64.32 to exceed one year, or by both such fine and imprisonment in the 64.33 discretion of the court. 64.34(b) In case of an intentional failure to comply with any64.35provision of sections 168.66 to 168.77, the buyer shall have a64.36right to recover from the person committing such violation, to65.1set off or counterclaim in any action by such person to enforce65.2such contract an amount as liquidated damages, the whole of the65.3contract due and payable, plus reasonable attorneys' fees.65.4(c) In case of a failure to comply with any provision of65.5sections 168.66 to 168.77, other than an intentional failure,65.6the buyer shall have a right to recover from the person65.7committing such violation, to set off or counterclaim in any65.8action by such person to enforce such contract an amount as65.9liquidated damages equal to three times the amount of any time65.10price differential charged in excess of the amount authorized by65.11sections 168.66 to 168.77 or $50, whichever is greater, plus65.12reasonable attorneys' fees.65.13 Subd. 2. [EXCESS CHARGES; RETAIL BUYER'S REMEDIES.] A 65.14 retail buyer is not obligated to pay a charge in excess of the 65.15 amounts allowed by sections 168.66 to 168.77 and has a right to 65.16 a refund of any excess charge paid. If a retail seller or 65.17 assignee refuses to make a refund or reduce the retail buyer's 65.18 obligation by the amount of the excess charge within 30 days of 65.19 the retail buyer's written demand, the retail buyer shall also 65.20 have the right to recover a penalty in an amount determined by 65.21 the court but not less than $100 nor more than $1,000 together 65.22 with reasonable attorney fees as determined by the court. 65.23 Subd. 3. [DISCLOSURE VIOLATIONS; RETAIL BUYER'S REMEDIES.] 65.24 (a) If a retail seller or assignee fails to comply with any 65.25 provision of sections 168.66 to 168.77 other than a section 65.26 establishing maximum charges, the retail buyer has a right to 65.27 recover any actual damages sustained as a result of the 65.28 violation and, in an action other than a class action, a penalty 65.29 in an amount determined by the court but not less than $100 nor 65.30 more than $1,000 together with reasonable attorney fees as 65.31 determined by the court. 65.32 (b) In the case of a class action brought pursuant to this 65.33 paragraph, each retail buyer who is a member of the class has a 65.34 right to recover any actual damages sustained as a result of the 65.35 failure to comply. The court may also award each class member a 65.36 penalty, except that as to each member of the class the $100 66.1 minimum penalty does not apply and the total penalty award in 66.2 any class action or series of class actions arising out of the 66.3 same failure to comply must not be more than the lesser of 66.4 $500,000 or one percent of the net worth of the person 66.5 committing the violation. In determining whether to award a 66.6 penalty, and the amount of the penalty, the court shall 66.7 consider, among other relevant factors, the amount of any actual 66.8 damages awarded, the frequency and persistence of the failure to 66.9 comply, the resources of the person committing the violation, 66.10 the number of persons adversely affected, and the extent to 66.11 which the conduct was intentional. 66.12 Subd. 4. [COMPLIANCE WITH FEDERAL LAW.] Notwithstanding 66.13 the provisions of subdivision 3, a retail buyer has no right of 66.14 recovery if the retail seller complied with the provisions of 66.15 the federal Truth-In-Lending Act, United States Code, title 15, 66.16 section 1601, et seq., in effect as of the time of the 66.17 contract. A retail buyer also has no right to recover a penalty 66.18 under subdivision 3 if the failure to comply would also violate 66.19 the federal Truth-In-Lending Act in effect as of the time of the 66.20 contract and the Truth-In-Lending Act would not impose an award 66.21 of statutory damages for such violation. 66.22 Subd. 5. [CORRECTION OF ERRORS.] A retail seller or 66.23 assignee may not be held liable for a penalty under subdivision 66.24 2 or 3 if within 45 days after discovering an error, and before 66.25 either the institution of an action by the retail buyer or 66.26 receipt of written notice of the error from the retail buyer, 66.27 the retail seller or assignee provides written notice of the 66.28 error to the retail buyer and corrects the error. If the error 66.29 consists of an excess charge, correction may be made by 66.30 adjustment or refund. If the violation consists of an improper 66.31 disclosure or improper retail installment contract, providing 66.32 the retail buyer a corrected copy of the writing is sufficient 66.33 notification and correction. 66.34 Subd. 6. [UNINTENTIONAL VIOLATIONS; BONA FIDE ERRORS.] A 66.35 retail seller or assignee may not be held liable in an action 66.36 brought under this section if the retail seller or assignee 67.1 shows by a preponderance of evidence that the violation was not 67.2 intentional and resulted from a bona fide error notwithstanding 67.3 the maintenance of procedures reasonably adopted to avoid the 67.4 error. 67.5 Subd. 7. [MULTIPLE OBLIGORS.] When there are multiple 67.6 obligors under a retail installment contract, there must be no 67.7 more than one recovery under this section. 67.8 Subd. 8. [LIABILITY OF ASSIGNEES.] Unless the assignee is 67.9 the person committing the violation of sections 168.66 to 67.10 168.77, an action for a violation of sections 168.66 to 168.77 67.11 which may be brought against a retail seller may be maintained 67.12 against an assignee of the retail seller only if the violation 67.13 for which the action is brought is apparent on the face of the 67.14 retail installment contract, except where the assignment is 67.15 involuntary. 67.16 Subd. 9. [RECOVERY FOR MULTIPLE VIOLATIONS.] Multiple 67.17 violations in connection with a single retail installment 67.18 contract entitle the retail buyer to a single penalty under this 67.19 section. A retail seller or assignee may not be held liable for 67.20 a penalty under subdivision 2 or 3 if the failure to comply also 67.21 violates the federal Truth-In-Lending Act and the retail buyer 67.22 has recovered statutory damages under that act. 67.23 Subd. 10. [OFFSET FROM AMOUNT OWED TO CREDITOR OR 67.24 ASSIGNEE; RIGHTS OF DEFAULTING RETAIL BUYER.] A violation of 67.25 sections 168.66 to 168.77 does not impair rights on a debt. A 67.26 retail buyer may not offset any amount for which a retail seller 67.27 or assignee is potentially liable to the person against any 67.28 amount owed by the person under a retail installment contract, 67.29 unless the amount of the retail seller or assignee's liability 67.30 under this section has been determined by a final judgment of a 67.31 court of competent jurisdiction in an action of which the person 67.32 was a party. 67.33 Subd. 11. [LIMITATION OF ACTIONS.] Any action under this 67.34 section may be brought within one year from the date of the 67.35 occurrence of the violation. This subdivision does not bar a 67.36 retail buyer from asserting a violation of sections 168.66 to 68.1 168.77 in an action to collect the debt which was brought more 68.2 than one year from the date of the occurrence of the violation 68.3 as a matter of defense by recoupment or setoff in the action. 68.4 Subd. 12. [ATTORNEY FEES; RETAIL SELLER AND ASSIGNEE 68.5 REMEDIES.] The court may award attorney fees and costs to the 68.6 retail seller or assignee if the party complaining of a 68.7 violation of sections 168.66 to 168.77 has brought an action 68.8 knowing it to be groundless. 68.9 Sec. 5. [EFFECTIVE DATE.] 68.10 Sections 1 to 3 are effective the day following final 68.11 enactment. Section 4 is effective the day following final 68.12 enactment and applies to all actions commenced on or after that 68.13 date. 68.14 ARTICLE 9 68.15 MISCELLANEOUS 68.16 Section 1. Minnesota Statutes 2002, section 13.462, 68.17 subdivision 2, is amended to read: 68.18 Subd. 2. [PUBLIC DATA.] The names and addresses of 68.19 applicants for and recipients of benefits, aid, or assistance 68.20 through programs administered by any political subdivision, 68.21 state agency, or statewide system that are intended to assist 68.22 with the purchaseof, rehabilitation, or other purposes related 68.23 to housing or other real property are classified as public data 68.24 on individuals. If an applicant or recipient is a corporation, 68.25 the names and addresses of the officers of the corporation are 68.26 public data on individuals. If an applicant or recipient is a 68.27 partnership, the names and addresses of the partners are public 68.28 data on individuals. The amount or value of benefits, aid, or 68.29 assistance received is public data. 68.30 Sec. 2. Minnesota Statutes 2002, section 16B.35, 68.31 subdivision 1, is amended to read: 68.32 Subdivision 1. [PERCENT OF APPROPRIATIONS FOR ART.] An 68.33 appropriation for the construction or alteration of any state 68.34 building may contain an amount not to exceed the lesser of 68.35 $100,000 or one percent of the total appropriation for the 68.36 building for the acquisition of works of art, excluding 69.1 landscaping, which may be an integral part of the building or 69.2 its grounds, attached to the building or grounds or capable of 69.3 being displayed in other state buildings. Money used for this 69.4 purpose is available only for the acquisition of works of art to 69.5 be exhibited in areas of a building or its grounds accessible, 69.6 on a regular basis, to members of the public. No more than ten 69.7 percent of the total amount available each fiscal year under 69.8 this subdivision may be used for administrative expenses, either 69.9 by the commissioner of administration or by any other entity to 69.10 whom the commissioner delegates administrative authority. For 69.11 the purposes of this section "state building" means a building 69.12 the construction or alteration of which is paid for wholly or in 69.13 part by the state. 69.14 Sec. 3. Minnesota Statutes 2002, section 43A.24, 69.15 subdivision 2, is amended to read: 69.16 Subd. 2. [OTHER ELIGIBLE PERSONS.] The following persons 69.17 are eligible for state paid life insurance and hospital, 69.18 medical, and dental benefits as determined in applicable 69.19 collective bargaining agreements or by the commissioner or by 69.20 plans pursuant to section 43A.18, subdivision 6, or by the board 69.21 of regents for employees of the University of Minnesota not 69.22 covered by collective bargaining agreements. Coverages made 69.23 available, including optional coverages, are as contained in the 69.24 plan established pursuant to section 43A.18, subdivision 2: 69.25 (a) a member of the state legislature, provided that 69.26 changes in benefits resulting in increased costs to the state 69.27 shall not be effective until expiration of the term of the 69.28 members of the existing house of representatives. An eligible 69.29 member of the state legislature may decline to be enrolled for 69.30 state paid coverages by filing a written waiver with the 69.31 commissioner. The waiver shall not prohibit the member from 69.32 enrolling the member or dependents for optional coverages, 69.33 without cost to the state, as provided for in section 43A.26. A 69.34 member of the state legislature who returns from a leave of 69.35 absence to a position previously occupied in the civil service 69.36 shall be eligible to receive the life insurance and hospital, 70.1 medical, and dental benefits to which the position is entitled; 70.2 (b) an employee of the legislature or an employee of a 70.3 permanent study or interim committee or commission or a state 70.4 employee on leave of absence to work for the legislature, during 70.5 a regular or special legislative session, as determined by the 70.6 legislative coordinating commission; 70.7 (c) a judge of the appellate courts or an officer or 70.8 employee of these courts; a judge of the district court, a judge 70.9 of county court, or a judge of county municipal court; a 70.10 district court referee, judicial officer, court reporter, or law 70.11 clerk; a district administrator; an employee of the office of 70.12 the district administrator that is not in the second or fourth 70.13 judicial district; a court administrator or employee of the 70.14 court administrator in a judicial district under section 70.15 480.181, subdivision 1, paragraph (b), and a guardian ad litem 70.16 program employee; 70.17 (d) a salaried employee of the public employees retirement 70.18 association; 70.19 (e) a full-time military or civilian officer or employee in 70.20 the unclassified service of the department of military affairs 70.21 whose salary is paid from state funds; 70.22 (f) a salaried employee of the Minnesota historical 70.23 society, whether paid from state funds or otherwise, who is not 70.24 a member of the governing board; 70.25 (g) an employee of the regents of the University of 70.26 Minnesota; 70.27 (h) notwithstanding section 43A.27, subdivision 3, an 70.28 employee of the state of Minnesota or the regents of the 70.29 University of Minnesota who is at least 60 and not yet 65 years 70.30 of age on July 1, 1982, who is otherwise eligible for employee 70.31 and dependent insurance and benefits pursuant to section 43A.18 70.32 or other law, who has at least 20 years of service and retires, 70.33 earlier than required, within 60 days of March 23, 1982; or an 70.34 employee who is at least 60 and not yet 65 years of age on July 70.35 1, 1982, who has at least 20 years of state service and retires, 70.36 earlier than required, from employment at Rochester state 71.1 hospital after July 1, 1981; or an employee who is at least 55 71.2 and not yet 65 years of age on July 1, 1982, and is covered by 71.3 the Minnesota state retirement system correctional employee 71.4 retirement plan or the state patrol retirement fund, who has at 71.5 least 20 years of state service and retires, earlier than 71.6 required, within 60 days of March 23, 1982. For purposes of 71.7 this clause, a person retires when the person terminates active 71.8 employment in state or University of Minnesota service and 71.9 applies for a retirement annuity. Eligibility shall cease when 71.10 the retired employee attains the age of 65, or when the employee 71.11 chooses not to receive the annuity that the employee has applied 71.12 for. The retired employee shall be eligible for coverages to 71.13 which the employee was entitled at the time of retirement, 71.14 subject to any changes in coverage through collective bargaining 71.15 or plans established pursuant to section 43A.18, for employees 71.16 in positions equivalent to that from which retired, provided 71.17 that the retired employee shall not be eligible for state-paid 71.18 life insurance. Coverages shall be coordinated with relevant 71.19 health insurance benefits provided through the federally 71.20 sponsored Medicare program; 71.21 (i) an employee of an agency of the state of Minnesota 71.22 identified through the process provided in this paragraph who is 71.23 eligible to retire prior to age 65. The commissioner and the 71.24 exclusive representative of state employees shall enter into 71.25 agreements under section 179A.22 to identify employees whose 71.26 positions are in programs that are being permanently eliminated 71.27 or reduced due to federal or state policies or practices. 71.28 Failure to reach agreement identifying these employees is not 71.29 subject to impasse procedures provided in chapter 179A. The 71.30 commissioner must prepare a plan identifying eligible employees 71.31 not covered by a collective bargaining agreement in accordance 71.32 with the process outlined in section 43A.18, subdivisions 2 and 71.33 3. For purposes of this paragraph, a person retires when the 71.34 person terminates active employment in state service and applies 71.35 for a retirement annuity. Eligibility ends as provided in the 71.36 agreement or plan, but must cease at the end of the month in 72.1 which the retired employee chooses not to receive an annuity, or 72.2 the employee is eligible for employer-paid health insurance from 72.3 a new employer. The retired employees shall be eligible for 72.4 coverages to which they were entitled at the time of retirement, 72.5 subject to any changes in coverage through collective bargaining 72.6 or plans established under section 43A.18 for employees in 72.7 positions equivalent to that from which they retired, provided 72.8 that the retired employees shall not be eligible for state-paid 72.9 life insurance; 72.10 (j) employees of the state board of public defense, with 72.11 eligibility determined by the state board of public defense in 72.12 consultation with the commissioner of employee relations;and72.13 (k) employees of the health data institute under section 72.14 62J.451, subdivision 12, as paid for by the health data 72.15 institute; 72.16 (l) employees of supporting organizations of Minnesota 72.17 Technology, Inc., established after July 1, 2003, under section 72.18 116O.05, subdivision 4, as paid for by the supporting 72.19 organization; and 72.20 (m) employees of Minnesota Project Innovation, as paid for 72.21 by Minnesota Project Innovation. 72.22 Sec. 4. Minnesota Statutes 2002, section 43A.27, 72.23 subdivision 2, is amended to read: 72.24 Subd. 2. [ELECTIVE ELIGIBILITY.] The following persons, if 72.25 not otherwise covered by section 43A.24, may elect coverage for 72.26 themselves or their dependents at their own expense: 72.27 (a) a state employee, including persons on layoff from a 72.28 civil service position as provided in collective bargaining 72.29 agreements or a plan established pursuant to section 43A.18; 72.30 (b) an employee of the board of regents of the University 72.31 of Minnesota, including persons on layoff, as provided in 72.32 collective bargaining agreements or by the board of regents; 72.33 (c) an officer or employee of the state agricultural 72.34 society, state horticultural society, Sibley house association, 72.35Minnesota humanities commission,Minnesota area industry labor 72.36 management councils, Minnesota international center, Minnesota 73.1 academy of science, science museum of Minnesota, Minnesota 73.2 safety council, state office of disabled American veterans, 73.3 state office of the American Legion and its auxiliary, state 73.4 office of veterans of foreign wars and its auxiliary, or state 73.5 office of the Military Order of the Purple Heart; 73.6 (d) a civilian employee of the adjutant general who is paid 73.7 from federal funds and who is not eligible for benefits from any 73.8 federal civilian employee group life insurance or health 73.9 benefits program; and 73.10 (e) an officer or employee of the state capitol credit 73.11 union or the highway credit union. 73.12 Sec. 5. Minnesota Statutes 2002, section 116J.64, 73.13 subdivision 2, is amended to read: 73.14 Subd. 2. "Indian" means a personof one-quarter or more73.15Indian blood andwho is an enrolled member of a federally 73.16 recognized Minnesota based band or tribe. 73.17 Sec. 6. Minnesota Statutes 2002, section 116O.03, 73.18 subdivision 2, is amended to read: 73.19 Subd. 2. [BOARD OF DIRECTORS.] The corporation is governed 73.20 by a board of15directors. The selection, membership terms, 73.21 compensation, removal, and filling of vacancies ofpublic73.22 members of the board are as provided insection 15.0575the 73.23 corporation's bylaws.Membership of the board consists of the73.24following:73.25(1) a person from the private sector, appointed by the73.26governor, who shall act as chair and serve as chief science73.27advisor to the governor and the legislature;73.28(2) the dean of the institute of technology of the73.29University of Minnesota;73.30(3) the dean of the graduate school of the University of73.31Minnesota;73.32(4) the commissioner of the department of trade and73.33economic development;73.34(5) the commissioner of administration;73.35(6) six members appointed by the governor, at least one of73.36whom must be a person from a public post-secondary system other74.1than the University of Minnesota; and74.2(7) one member who is not a member of the legislature74.3appointed by each of the following: the speaker of the house of74.4representatives, the house of representatives minority leader,74.5the senate majority leader, and the senate minority leader.74.6At least 50 percent of the members described in clauses (6)74.7and (7) must live outside the metropolitan area as defined in74.8section 473.121, subdivision 2, and must have experience in74.9manufacturing, the technology industry, or research and74.10development.74.11 Sec. 7. Minnesota Statutes 2002, section 116O.091, 74.12 subdivision 7, is amended to read: 74.13 Subd. 7. [ADVISORY COMMITTEES.] An advisory committee is 74.14 created to assist in selecting vendors and evaluating the 74.15 corporation's project outreach activities. The advisory 74.16 committee shall include the president of the University of 74.17 Minnesota or the president's designee, the commissioner of trade 74.18 and economic development or the commissioner's designee, the 74.19 chair of the Minnesota Technology, Inc., board of directors or 74.20 the chair's designee, a member of the state senate appointed by 74.21 the subcommittee on committees of the senate rules and 74.22 administration committee, a member of the house of 74.23 representatives appointed by the speaker, and at least five 74.24 users of project outreach services appointed by the named 74.25 members. The advisory committee expires June 30, 2004. 74.26 Sec. 8. Minnesota Statutes 2002, section 116O.12, is 74.27 amended to read: 74.28 116O.12 [MINNESOTA TECHNOLOGY ACCOUNT.] 74.29(a)The Minnesota technology account is in the special 74.30 revenue fund. Money in the account not needed for the immediate 74.31 purposes of the corporation may be invested by the state board 74.32 of investment in any way authorized by section 11A.24. Money in 74.33 the account is appropriated to the corporation to be used as 74.34 provided in this chapter. 74.35(b) The account consists of:74.36(1) money appropriated and transferred from other state75.1funds;75.2(2) fees and charges collected by the corporation;75.3(3) income from investments and purchases;75.4(4) revenue from loans, rentals, royalties, dividends, and75.5other proceeds collected in connection with lawful corporate75.6purposes;75.7(5) gifts, donations, and bequests made to the corporation;75.8and75.9(6) other income credited to the account by law.75.10 Sec. 9. Minnesota Statutes 2002, section 154.18, is 75.11 amended to read: 75.12 154.18 [FEES.] 75.13 (a) The fees collected, as required in this chapter, 75.14 chapter 214, and the rules of the board, shall be paid in 75.15 advance to the executive secretary of the board. The executive 75.16 secretary shall deposit the fees in the state treasury, to be 75.17 disbursed by the executive secretary on the order of the chair 75.18 in payment of expenses lawfully incurred by the board. 75.19 (b) The board shall charge the following fees: 75.20 (1) examination and certificate, registered barber, $65; 75.21 (2) examination and certificate, apprentice, $60; 75.22 (3) examination, instructor, $160; 75.23 (4) certificate, instructor, $45; 75.24 (5) temporary teacher or apprentice permit, $50; 75.25 (6) renewal of license, registered barber, $50; 75.26 (7) renewal of license, apprentice, $45; 75.27 (8) renewal of license, instructor, $60; 75.28 (9) renewal of temporary teacher permit, $35; 75.29 (10) student permit, $25; 75.30 (11) initial shop registration, $60; 75.31 (12) initial school registration, $1,010; 75.32 (13) renewal shop registration, $60; 75.33 (14) renewal school registration, $260; 75.34 (15) restoration of registered barber license, $75; 75.35 (16) restoration of apprentice license, $70; 75.36 (17) restoration of shop registration, $85; 76.1 (18) change of ownership or location, $35; 76.2 (19) duplicate license, $20; and 76.3 (20) home study course, $75. 76.4 Sec. 10. Minnesota Statutes 2002, section 216A.03, 76.5 subdivision 1, is amended to read: 76.6 Subdivision 1. [MEMBERS.] The public utilities commission 76.7 shall consist of five members. The terms of members shall be 76.8 six years and until their successors have been appointed and 76.9 qualified. Each commissioner shall be appointed by the governor 76.10 by and with the advice and consent of the senate. Not more than 76.11 three commissioners shall belong to the same political party. 76.12 At leastone commissionertwo commissioners musthave beenbe 76.13 domiciled at the time of appointment outside the seven-county 76.14 metropolitan area. Of these two commissioners, at least one 76.15 must be domiciled outside a city of the first or second class, 76.16 as defined in section 410.01, at the time of initial 76.17 appointment. If the membership of the commission afterJuly 31,76.181986August 1, 2003, does not consist of at leastone membertwo 76.19 members domiciled at the time of appointment outside the 76.20 seven-county metropolitan area, the membership shall conform to 76.21 this requirement following normal attrition of the present 76.22 commissioners. The governor when selecting commissioners shall 76.23 give consideration to persons learned in the law or persons who 76.24 have engaged in the profession of engineering, public 76.25 accounting, property and utility valuation, finance, physical or 76.26 natural sciences, production agriculture, or natural resources 76.27 as well as being representative of the general public. 76.28 For purposes of this subdivision, "seven-county 76.29 metropolitan area" means Anoka, Carver, Dakota, Hennepin, 76.30 Ramsey, Scott, and Washington counties. 76.31 Sec. 11. Minnesota Statutes 2002, section 326.105, is 76.32 amended to read: 76.33 326.105 [FEES.] 76.34 The fee for licensure or renewal of licensure as an 76.35 architect, professional engineer, land surveyor, landscape 76.36 architect, or geoscience professional is$120$132 per biennium. 77.1 The fee for certification as a certified interior designer or 77.2 for renewal of the certificate is$120$132 per biennium. The 77.3 fee for an architect applying for original certification as a 77.4 certified interior designer is $50 per biennium. The initial 77.5 license or certification fee for all professions is$120$132. 77.6 The renewal fee shall be paid biennially on or before June 30 of 77.7 each even-numbered year. The renewal fee, when paid by mail, is 77.8 not timely paid unless it is postmarked on or before June 30 of 77.9 each even-numbered year. The application fee is $25 for 77.10 in-training applicants and $75 for professional license 77.11 applicants. 77.12 The fee for monitoring licensing examinations for 77.13 applicants is $25, payable by the applicant. 77.14 Sec. 12. Minnesota Statutes 2002, section 461.12, 77.15 subdivision 2, is amended to read: 77.16 Subd. 2. [ADMINISTRATIVE PENALTIES; LICENSEES.] (a) If a 77.17 licensee or employee of a licensee sells tobacco to a person 77.18 under the age of 18 years, or violates any other provision of 77.19 this chapter, the licensee shall be charged an administrative 77.20 penalty of$75up to $500. An administrative penalty of$200up 77.21 to a maximum of $1,000 must be imposed for a second violation at 77.22 the same location within 24 months after the initial violation. 77.23 An administrative penalty of up to a maximum of $5,000 may be 77.24 imposed for a third violation at the same location within 24 77.25 months after the initial violation. For athirdsubsequent 77.26 violation at the same location within 24 months after the 77.27 initial violation, both of the following may be imposed: 77.28 (1) an administrative penalty of$250 must be imposed,77.29andup to $5,000; and 77.30 (2) the licensee's authority to sell tobacco at that 77.31 locationmustmay be suspended fornot less thanup to a maximum 77.32 of seven days. 77.33 (b) The licensing authority may suspend or revoke a tobacco 77.34 license if the licensee fails to act on any of the following: 77.35 (1) imposition of disciplinary sanctions of an employee 77.36 with multiple noncompliant sales to a minor; 78.1 (2) failure to effectively train or retrain any employee on 78.2 applicable laws and how to prevent sales of tobacco to minors; 78.3 or 78.4 (3) failure to adopt and enforce a written employee policy 78.5 to prevent the sale of tobacco to minors. 78.6 (c) No suspension or penalty may take effect until the 78.7 licensee has received notice, served personally or by mail, of 78.8 the alleged violation and an opportunity for a hearing before a 78.9 person authorized by the licensing authority to conduct the 78.10 hearing. 78.11 (d) In determining the amount of a penalty and the length 78.12 of a license suspension, the local licensing authority shall 78.13 take into consideration as mitigating circumstances evidence 78.14 provided by a licensee of a licensee's adoption and enforcement 78.15 of a written employee policy to prevent the sale of tobacco to 78.16 minors, a licensee's training program to instruct employees on 78.17 applicable laws and how to prevent sales of tobacco to minors, a 78.18 licensee's adoption and imposition of disciplinary sanctions for 78.19 employee noncompliance with the licensee's policies, a 78.20 licensee's policy of conducting voluntary internal compliance 78.21 checks to test compliance with section 609.685, and whether a 78.22 licensee or a licensee's employee verified the age of the 78.23 customer during the transaction in question and reasonably 78.24 relied on the age verification to complete the sale. A decision 78.25 that a violation has occurred must be in writing and must 78.26 include a summary of the mitigating circumstances considered by 78.27 the local licensing authority in assessing a penalty or a 78.28 license suspension. 78.29 Sec. 13. Minnesota Statutes 2002, section 461.19, is 78.30 amended to read: 78.31 461.19 [EFFECT ON LOCAL ORDINANCE; NOTICE.] 78.32 Sections 461.12 to 461.18 do not preempt a local ordinance 78.33 that provides for more restrictive regulation of tobacco sales, 78.34 except that on and after the effective date of this act, a 78.35 licensing authority shall not assess or impose a penalty on a 78.36 licensee or an employee of a licensee that is greater than the 79.1 administrative penalties set forth in section 461.12, 79.2 subdivisions 2 and 3. A governing body shall give notice of its 79.3 intention to consider adoption or substantial amendment of any 79.4 local ordinance required under section 461.12 or permitted under 79.5 this section. The governing body shall take reasonable steps to 79.6 send notice by mail at least 30 days prior to the meeting to the 79.7 last known address of each licensee or person required to hold a 79.8 license under section 461.12. The notice shall state the time, 79.9 place, and date of the meeting and the subject matter of the 79.10 proposed ordinance. 79.11 Sec. 14. Minnesota Statutes 2002, section 624.20, 79.12 subdivision 1, is amended to read: 79.13 Subdivision 1. (a) As used in sections 624.20 to 624.25, 79.14 the term "fireworks" means any substance or combination of 79.15 substances or article prepared for the purpose of producing a 79.16 visible or an audible effect by combustion, explosion, 79.17 deflagration, or detonation, and includes blank cartridges, toy 79.18 cannons, and toy canes in which explosives are used, the type of 79.19 balloons which require fire underneath to propel them, 79.20 firecrackers, torpedoes, skyrockets, Roman candles, daygo bombs, 79.21 sparklers other than those specified in paragraph (c), or other 79.22 fireworks of like construction, and any fireworks containing any 79.23 explosive or inflammable compound, or any tablets or other 79.24 device containing any explosive substance and commonly used as 79.25 fireworks. 79.26 (b) The term "fireworks" shall not include toy pistols, toy 79.27 guns, in which paper caps containing 25/100 grains or less of 79.28 explosive compound are used and toy pistol caps which contain 79.29 less than 20/100 grains of explosive mixture. 79.30 (c) The term also does not include wire or wood sparklers 79.31 of not more than 100 grams of mixture per item, other sparkling 79.32 items which are nonexplosive and nonaerial and contain 75 grams 79.33 or less of chemical mixture per tube or a total of 200 grams or 79.34 less for multiple tubes, snakes and glow worms, smoke devices, 79.35 or trick noisemakers which include paper streamers, party 79.36 poppers, string poppers, snappers, and drop pops, each 80.1 consisting of not more than twenty-five hundredths grains of 80.2 explosive mixture. The use of items listed in this paragraph is 80.3 not permitted on public property. This paragraph does not 80.4 authorize the purchase of items listed in it by persons younger 80.5 than 18 years of age. The age of a purchaser of items listed in 80.6 this paragraph must be verified by photographic identification. 80.7 (d) A local unit of government may impose an annual license 80.8 fee for the retail sale of items authorized under paragraph 80.9 (c). The annual license fee of each retail seller that is in 80.10 the business of selling only the items authorized under 80.11 paragraph (c) may not exceed $350, and the annual license of 80.12 each other retail seller may not exceed $100. A local unit of 80.13 government may not: 80.14 (1) impose any fee or charge, other than the fee authorized 80.15 by this paragraph, on the retail sale of items authorized under 80.16 paragraph (c); 80.17 (2) prohibit or restrict the display of items for retail 80.18 sale authorized under paragraph (c); or 80.19 (3) impose on a retail seller any financial guarantee 80.20 requirements, including bonding or insurance provisions, 80.21 containing restrictions or conditions not imposed on the same 80.22 basis on all other business licensees. 80.23 [EFFECTIVE DATE.] This section is effective the day 80.24 following final enactment. 80.25 Sec. 15. [UTILITY REGULATORY REVIEW; RURAL CONCERNS.] 80.26 (a) The chair of the public utilities commission and the 80.27 commissioner of commerce shall jointly review the organizational 80.28 structure and regulatory procedures by which energy and 80.29 telecommunications service providers are regulated by the state. 80.30 By January 15, 2004, the chair and the commissioner shall issue 80.31 a report on that review to the chairs of the house and senate 80.32 committees with jurisdiction over utility regulation, and shall 80.33 include recommendations for executive and legislative action to 80.34 ensure the state has the most representative, cost-effective, 80.35 and efficient utility regulatory system possible. 80.36 (b) A primary focus of this review must be to consider and 81.1 make recommendations for actions that could be taken to ensure 81.2 the utility regulatory structure and process takes into account 81.3 the issues and concerns of rural and center city service 81.4 providers, residents, and businesses. Items for consideration 81.5 must include: 81.6 (1) requiring the commission to hold hearings in rural 81.7 Minnesota, both on a regular basis and when an issue of special 81.8 concern to rural Minnesota is before the commission; and 81.9 (2) the establishment of a screening process for applicants 81.10 for the public utilities commission to demonstrate their 81.11 understanding and experience with regard to rural and center 81.12 city utility service issues. 81.13 Sec. 16. [TRANSFER OF RESPONSIBILITIES FOR INDIAN BUSINESS 81.14 LOAN PROGRAM.] 81.15 The responsibilities of the Indian Affairs Council in 81.16 administering the Indian Business Loan program under Minnesota 81.17 Statutes, section 116J.64, are transferred to the department of 81.18 trade and economic development, which may enter into an 81.19 agreement with the governing body of a federally recognized 81.20 Indian tribe in Minnesota to administer the program or a portion 81.21 of the program. 81.22 Sec. 17. [SEASONAL AGRICULTURAL OPERATIONS; MANUFACTURED 81.23 HOME PARK EXCLUSIONS.] 81.24 Notwithstanding Minnesota Statutes, section 327.14, 81.25 subdivision 3, and section 327.23, subdivision 2, the term 81.26 "manufactured home park" shall not be construed to include up to 81.27 four manufactured homes maintained by an individual or a company 81.28 on premises associated with a seasonal agricultural operation 81.29 and used exclusively to house labor or other personnel occupied 81.30 in such operation if: 81.31 (1) these manufactured homes are equipped with indoor 81.32 plumbing facilities and meet the standards established in 81.33 Minnesota Rules, parts 4630.0600, subpart 1, 4630.0700, 81.34 4630.1200, 4630.3500, and 4715.0310; 81.35 (2) these manufactured homes provide at least 80 square 81.36 feet of indoor living space per inhabitant of each home; 82.1 (3) these manufactured homes are installed in compliance 82.2 with the state building code under Minnesota Rules, chapter 82.3 1350; 82.4 (4) these manufactured homes are in compliance with 82.5 Minnesota Statutes, section 326.243; 82.6 (5) the individual or company maintaining these 82.7 manufactured homes, with the assistance and approval of the city 82.8 or town where the homes are located, develops a plan to be 82.9 posted in conspicuous locations near the homes for the 82.10 sheltering, or the safe evacuation to a safe place of shelter, 82.11 of the residents of the homes in time of severe weather 82.12 conditions, such as tornadoes, high winds, and floods; and 82.13 (6) the individual or company maintains the homes in a 82.14 clean, orderly, and sanitary condition. 82.15 [EFFECTIVE DATE.] This section is effective the day 82.16 following final enactment and expires two years after the 82.17 effective date. 82.18 Sec. 18. [REPEALER.] 82.19 (a) Minnesota Statutes, section 155A.03, subdivisions 14 82.20 and 15; and 155A.07, subdivision 9, are repealed. 82.21 (b) Minnesota Rules, part 2100.9300, subpart 1, is repealed. 82.22 Sec. 19. [EFFECTIVE DATE.] 82.23 (a) Sections 12 and 13 are effective the day following 82.24 final enactment and apply to administrative penalties imposed on 82.25 or after that date. 82.26 (b) Sections 9, 15, and 18 are effective July 1, 2003. 82.27 (c) Section 10 is effective June 30, 2004.