Minnesota Legislature
HF 748
2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
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; amending Minnesota Statutes 2002, sections 1.13 13.462, subdivision 2; 16B.35, subdivision 1; 17.101, 1.14 subdivision 1; 41A.036, subdivision 2; 43A.24, 1.15 subdivision 2; 60A.14, subdivision 1; 79.56, 1.16 subdivisions 1, 3; 115C.02, subdivision 14; 115C.08, 1.17 subdivision 4; 115C.09, subdivision 3, by adding 1.18 subdivisions; 115C.11, subdivision 1; 115C.13; 1.19 116.073, subdivisions 1, 2; 116.46, by adding 1.20 subdivisions; 116.49, by adding subdivisions; 116.50; 1.21 116J.011; 116J.411, by adding a subdivision; 116J.415, 1.22 subdivisions 1, 2, 4, 5, 7, 11; 116J.553, subdivision 1.23 2; 116J.554, subdivision 2; 116J.8731, subdivisions 1, 1.24 4, 5, 7; 116J.8764, by adding a subdivision; 116J.955, 1.25 subdivision 2; 116J.966, subdivision 1; 116J.994, 1.26 subdivision 4; 116J.995; 116L.02; 116L.04, 1.27 subdivisions 1, 1a; 116L.12, subdivision 4; 116L.17, 1.28 subdivisions 2, 3, 8, by adding a subdivision; 1.29 116M.14, subdivision 4; 116O.03, subdivision 2; 1.30 116O.091, subdivision 7; 116O.12; 154.18; 175.16, 1.31 subdivision 1; 177.26, subdivisions 1, 2; 178.01; 1.32 178.03, subdivisions 1, 2; 181.9435, subdivision 1; 1.33 181.9436; 216A.03, subdivision 1; 239.10, subdivision 1.34 3; 239.101, subdivision 3; 248.10; 268.022, 1.35 subdivision 1; 268A.02, by adding a subdivision; 1.36 326.105; 354D.02, subdivision 2; 461.12, subdivision 1.37 2; 461.19; 624.20, subdivision 1; proposing coding for 1.38 new law in Minnesota Statutes, chapters 60A; 115C; 1.39 178; repealing Minnesota Statutes 2002, sections 1.40 13.598, subdivision 2; 116J.411, subdivision 3; 1.41 116J.415, subdivisions 6, 9, 10; 116J.693; 116J.9665; 1.42 116L.03, subdivision 7; 138.91; 155A.03, subdivisions 1.43 14, 15; 155A.07, subdivision 9; 177.26, subdivision 3; 1.44 178.11; Minnesota Rules, part 2100.9300, subpart 1. 1.45 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.1 ARTICLE 1 2.2 APPROPRIATIONS 2.3 ECONOMIC DEVELOPMENT 2.4 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 2.5 The sums shown in the columns marked "APPROPRIATIONS" are 2.6 appropriated from the general fund, or another named fund, to 2.7 the agencies and for the purposes specified in this act, to be 2.8 available for the fiscal years indicated for each purpose. The 2.9 figures "2004" and "2005," where used in this act, mean that the 2.10 appropriation or appropriations listed under them are available 2.11 for the year ending June 30, 2004, or June 30, 2005, 2.12 respectively. The term "first year" means the fiscal year 2.13 ending June 30, 2004, and the term "second year" means the 2.14 fiscal year ending June 30, 2005. 2.15 SUMMARY BY FUND 2.16 2004 2005 TOTAL 2.17 General $ 164,598,000 $ 157,178,000 $ 321,776,000 2.18 Petroleum Tank 2.19 Cleanup 1,834,000 1,084,000 2,918,000 2.20 Environmental 2.21 Fund 700,000 700,000 1,400,000 2.22 Workers' 2.23 Compensation 21,905,000 21,600,000 43,505,000 2.24 Workforce Development 2.25 Fund 7,720,000 7,720,000 15,440,000 2.26 TANF Block Grant 1,250,000 1,250,000 2,500,000 2.27 TOTAL $ 198,007,000 $ 189,532,000 $ 387,539,000 2.28 APPROPRIATIONS 2.29 Available for the Year 2.30 Ending June 30 2.31 2004 2005 2.32 Sec. 2. TRADE AND ECONOMIC 2.33 DEVELOPMENT 2.34 Subdivision 1. Total 2.35 Appropriation $ 68,823,000 $ 63,673,000 2.36 Summary by Fund 2.37 General 59,653,000 55,253,000 2.38 Petroleum Tank 2.39 Cleanup 750,000 -0- 2.40 Environmental Fund 700,000 700,000 2.41 Workforce Development 3.1 Fund 7,720,000 7,720,000 3.2 The amounts that may be spent from this 3.3 appropriation for each program are 3.4 specified in the following subdivisions. 3.5 Subd. 2. Business and Community 3.6 Development 12,489,000 7,734,000 3.7 Summary by Fund 3.8 General 11,039,000 7,034,000 3.9 Petroleum Tank 3.10 Cleanup 750,000 -0- 3.11 Environmental Fund 700,000 700,000 3.12 $2,203,000 the first year and 3.13 $2,203,000 the second year are for 3.14 Minnesota investment fund grants. 3.15 $150,000 the first year and $150,000 3.16 the second year are for grants to the 3.17 rural policy and development center at 3.18 Minnesota State University, Mankato. 3.19 The grant shall be used for research 3.20 and policy analysis on emerging 3.21 economic and social issues in rural 3.22 Minnesota, to serve as a policy 3.23 resource center for rural Minnesota 3.24 communities, to encourage collaboration 3.25 across higher education institutions to 3.26 provide interdisciplinary team 3.27 approaches to research and problem 3.28 solving in rural communities, and to 3.29 administer overall operations of the 3.30 center. 3.31 The grant shall be provided upon the 3.32 condition that each state-appropriated 3.33 dollar be matched with a 3.34 nonstate-appropriated dollar. 3.35 Acceptable matching funds are 3.36 nonstate-appropriated contributions 3.37 that the center has received and have 3.38 not been used to match previous state 3.39 grants. The funds not spent the first 3.40 year are available the second. 3.41 $2,375,000 the first year is to the 3.42 Minnesota investment fund to make 3.43 grants to local units of government for 3.44 locally administered grants or loan 3.45 programs, including buyouts, for 3.46 businesses directly and adversely 3.47 affected by flooding in the area 3.48 included in DR-1419. Criteria and 3.49 requirements must be locally 3.50 established with the approval of the 3.51 commissioner. For the purposes of this 3.52 appropriation, Minnesota Statutes, 3.53 sections 116J.8731, subdivisions 3, 4, 3.54 5, and 7; 116J.993; 116J.994; and 3.55 116J.995, are waived. Businesses that 3.56 receive grants or loans from this 3.57 appropriation must set goals for jobs 3.58 retained and wages paid within the area 3.59 included in DR-1419. 3.60 This is a onetime appropriation and is 4.1 available until expended. 4.2 Notwithstanding Minnesota Statutes, 4.3 section 115C.08, subdivision 4, 4.4 $750,000 the first year is for grants 4.5 to local units of government in the 4.6 area included in DR-1419 to safely 4.7 rehabilitate buildings if a portion of 4.8 the rehabilitation costs is 4.9 attributable to petroleum contamination 4.10 or to buy out property substantially 4.11 damaged by a petroleum tank release. 4.12 This appropriation is not subject to 4.13 the limitations of Minnesota Statutes, 4.14 section 115C.09, subdivision 3i. 4.15 This is a onetime appropriation from 4.16 the petroleum tank release cleanup fund 4.17 and is available until expended. 4.18 $1,125,000 the first year to the public 4.19 facilities authority for grants to 4.20 local units of government to assist 4.21 with the cost of rehabilitation and 4.22 replacement of publicly owned 4.23 infrastructure, including storm sewers, 4.24 wastewater and municipal utility 4.25 service, drinking water systems, and 4.26 other infrastructure damaged by 4.27 flooding in the area included in 4.28 DR-1419. This is a onetime 4.29 appropriation and is available until 4.30 expended. 4.31 $500,000 the first year is for a grant 4.32 to the city of Roseau for engineering 4.33 and design plans to relocate the flood 4.34 damaged city hall, auditorium, library, 4.35 museum, and police department out of 4.36 the Roseau river floodway as a result 4.37 of flooding as declared in DR-1419. 4.38 This is a onetime appropriation and is 4.39 available until expended. 4.40 Subd. 3. Minnesota Trade 4.41 Office 2,187,000 2,187,000 4.42 Subd. 4. Workforce Development 7,435,000 7,435,000 4.43 $7,435,000 the first year and 4.44 $7,435,000 the second year are for the 4.45 job skills partnership and pathways 4.46 programs. If the appropriation for 4.47 either year is insufficient, the 4.48 appropriation for the other year is 4.49 available. This appropriation does not 4.50 cancel. 4.51 Subd. 5. Office of Tourism 8,391,000 8,384,000 4.52 To develop maximum private sector 4.53 involvement in tourism, $3,500,000 the 4.54 first year and $3,500,000 the second 4.55 year of the amounts appropriated for 4.56 marketing activities are contingent on 4.57 receipt of an equal contribution from 4.58 nonstate sources that have been 4.59 certified by the commissioner. Up to 4.60 one-half of the match may be given in 4.61 in-kind contributions. 5.1 In order to maximize marketing grant 5.2 benefits, the commissioner must give 5.3 priority for joint venture marketing 5.4 grants to organizations with year-round 5.5 sustained tourism activities. For 5.6 programs and projects submitted, the 5.7 commissioner must give priority to 5.8 those that encompass two or more areas 5.9 or that attract nonresident travelers 5.10 to the state. 5.11 If an appropriation for either year for 5.12 grants is not sufficient, the 5.13 appropriation for the other year is 5.14 available for it. 5.15 The commissioner may use grant dollars 5.16 or the value of in-kind services to 5.17 provide the state contribution for the 5.18 partnership program. 5.19 Any unexpended money from general fund 5.20 appropriations made under this 5.21 subdivision does not cancel but must be 5.22 placed in a special advertising account 5.23 for use by the office of tourism to 5.24 purchase additional media. 5.25 Of this amount, $50,000 the first year 5.26 is for a onetime grant to the 5.27 Mississippi River parkway commission to 5.28 support the increased promotion of 5.29 tourism along the Great River Road. 5.30 This appropriation is available until 5.31 June 30, 2005. 5.32 Subd. 6. Administration 4,992,000 4,604,000 5.33 Subd. 7. Workforce Services 7,123,000 7,123,000 5.34 Summary by Fund 5.35 General 6,348,000 6,348,000 5.36 Workforce Development 5.37 Fund 775,000 775,000 5.38 $1,257,000 the first year and 5.39 $1,257,000 the second year are for the 5.40 youth intervention programs under 5.41 Minnesota Statutes, section 268.30. 5.42 The base funding in the fiscal year 5.43 2006-2007 biennium is $1,446,000 each 5.44 year. 5.45 Subd. 8. Rehabilitation Services 21,758,000 21,758,000 5.46 Summary by Fund 5.47 General 14,813,000 14,813,000 5.48 Workforce Development 5.49 Fund 6,945,000 6,945,000 5.50 $1,325,000 the first year and 5.51 $1,325,000 the second year are for 5.52 grants to fund the eight centers for 5.53 independent living. The base funding 5.54 in the fiscal year 2006-2007 biennium 5.55 is $1,690,000 each year. 6.1 Subd. 9. State Services for 6.2 the Blind 4,448,000 4,448,000 6.3 Sec. 3. MINNESOTA TECHNOLOGY, INC. 2,000,000 -0- 6.4 $2,000,000 the first year is for 6.5 transfer from the general fund to the 6.6 Minnesota Technology, Inc. fund. This 6.7 is a onetime appropriation and no base 6.8 funding is provided for any future year. 6.9 Sec. 4. HOUSING FINANCE AGENCY 6.10 Subdivision 1. Total 6.11 Appropriation 35,360,000 34,860,000 6.12 Summary by Fund 6.13 General 34,735,000 34,235,000 6.14 TANF Block Grant 625,000 625,000 6.15 This appropriation is for transfer to 6.16 the housing development fund. Except 6.17 as otherwise indicated, this transfer 6.18 is part of the agency's permanent 6.19 budget base. 6.20 Subd. 2. Roseau Flood Assistance 6.21 $500,000 the first year is for a 6.22 onetime grant for the city of Roseau to 6.23 buy out flood damaged residential 6.24 properties as provided below. The 6.25 agency is authorized to provide 6.26 assistance for the city of Roseau to 6.27 acquire properties within the area 6.28 included in DR-1419 that meet the 6.29 following criteria: 6.30 (1) the owner agrees to voluntarily 6.31 sell the property; 6.32 (2) the property to be acquired was the 6.33 principal residence of the owner prior 6.34 to the flooding described in DR-1419; 6.35 and 6.36 (3) the cost of restoring the property 6.37 to its predamage condition would equal 6.38 or exceed 50 percent of the market 6.39 value of the structure before the 6.40 damage occurred, or the property has 6.41 been declared uninhabitable by a state 6.42 or local official in accordance with 6.43 current codes or ordinances. 6.44 Property owners may receive assistance 6.45 from the city in amounts up to the 6.46 preflood fair market value of their 6.47 property. The city must reduce the 6.48 assistance provided to a property owner 6.49 by any duplication of benefits from 6.50 other sources. If the property owner 6.51 is selling the structure which served 6.52 as the principal residence but not the 6.53 real property on which the structure is 6.54 located, the assistance must be reduced 6.55 by the preflood fair market value of 6.56 the real property. If the city sells 6.57 the real property it has acquired with 7.1 the assistance provided under this 7.2 subdivision, it will repay to the 7.3 agency any funds obtained from the sale 7.4 of the real property. 7.5 Subd. 3. Affordable Rental Investment 7.6 Fund 7.7 $9,273,000 the first year and 7.8 $9,273,000 the second year are for the 7.9 affordable rental investment fund 7.10 program under Minnesota Statutes, 7.11 section 462A.21, subdivision 8b. These 7.12 amounts are to finance the acquisition, 7.13 rehabilitation, and debt restructuring 7.14 of federally assisted rental property 7.15 and for making equity take-out loans 7.16 under Minnesota Statutes, section 7.17 462A.05, subdivision 39. The owner of 7.18 the federally assisted rental property 7.19 must agree to participate in the 7.20 applicable federally assisted housing 7.21 program and to extend any existing 7.22 low-income affordability restrictions 7.23 on the housing for the maximum term 7.24 permitted. The owner must also enter 7.25 into an agreement that gives local 7.26 units of government, housing and 7.27 redevelopment authorities, and 7.28 nonprofit housing organizations the 7.29 right of first refusal if the rental 7.30 property is offered for sale. Priority 7.31 must be given among comparable 7.32 properties to properties with the 7.33 longest remaining term under an 7.34 agreement for federal rental 7.35 assistance. Priority must also be 7.36 given among comparable rental housing 7.37 developments to developments that are 7.38 or will be owned by local government 7.39 units, a housing and redevelopment 7.40 authority, or a nonprofit housing 7.41 organization. 7.42 Subd. 4. Family Homeless Prevention 7.43 Summary by Fund 7.44 General 3,065,000 3,065,000 7.45 TANF Block Grant 625,000 625,000 7.46 $3,065,000 the first year and 7.47 $3,065,000 the second year are for 7.48 family homeless prevention and 7.49 assistance programs under Minnesota 7.50 Statutes, section 462A.204. Any 7.51 balance in the first year does not 7.52 cancel but is available in the second 7.53 year. The general fund base funding to 7.54 this program for the 2006-2007 biennium 7.55 is $3,565,000 each year. 7.56 $1,250,000 of the TANF block grant 7.57 appropriation to the pathways program 7.58 in Laws 1999, chapter 223, article 1, 7.59 section 2, subdivision 2, is canceled. 7.60 Of the amount canceled, $625,000 the 7.61 first year and $625,000 the second year 7.62 are appropriated to the family homeless 7.63 prevention and assistance programs 8.1 under Minnesota Statutes, section 8.2 462A.204. Any balance in the first 8.3 year does not cancel but is available 8.4 in the second year. This is a onetime 8.5 appropriation. 8.6 Sec. 5. COMMERCE 8.7 Subdivision 1. Total 8.8 Appropriation 26,088,000 25,761,000 8.9 Summary by Fund 8.10 General 24,169,000 23,842,000 8.11 Petroleum 8.12 Cleanup 1,084,000 1,084,000 8.13 Workers' 8.14 Compensation 835,000 835,000 8.15 The amounts that may be spent from this 8.16 appropriation for each program are 8.17 specified in the following subdivisions. 8.18 Subd. 2. Financial 8.19 Examinations 5,997,000 5,994,000 8.20 Subd. 3. Petroleum Tank Release 8.21 Cleanup Board 1,084,000 1,084,000 8.22 This appropriation is from the 8.23 petroleum tank release cleanup fund. 8.24 Subd. 4. Administrative Services 5,518,000 5,518,000 8.25 Subd. 5. Market Assurance 6,442,000 6,117,000 8.26 Summary by Fund 8.27 General 5,607,000 5,282,000 8.28 Workers' Compensation 835,000 835,000 8.29 Subd. 6. Energy and 8.30 Telecommunications 3,941,000 3,941,000 8.31 Subd. 7. Weights and 8.32 Measurement 3,106,000 3,107,000 8.33 Sec. 6. BOARD OF ACCOUNTANCY 577,000 577,000 8.34 Sec. 7. BOARD OF ARCHITECTURE, 8.35 ENGINEERING, LAND SURVEYING, 8.36 LANDSCAPE ARCHITECTURE, 8.37 GEOSCIENCE, AND INTERIOR 8.38 DESIGN 881,000 881,000 8.39 Sec. 8. BOARD OF BARBER 8.40 EXAMINERS 172,000 172,000 8.41 Sec. 9. LABOR AND INDUSTRY 8.42 Subdivision 1. Total 8.43 Appropriation 22,357,000 21,986,000 8.44 Summary by Fund 8.45 General 2,905,000 2,839,000 8.46 Workers' 9.1 Compensation 19,452,000 19,147,000 9.2 The amounts that may be spent from this 9.3 appropriation for each program are 9.4 specified in the following subdivisions. 9.5 Subd. 2. Workers' 9.6 Compensation 10,221,000 10,221,000 9.7 This appropriation is from the workers' 9.8 compensation fund. 9.9 Subd. 3. Workplace Services 6,544,000 6,478,000 9.10 $345,000 the first year and $345,000 9.11 the second year is for boiler 9.12 inspections under Minnesota Statutes, 9.13 section 183.38, subdivision 1. This is 9.14 a onetime appropriation and is not 9.15 added to the department's base. 9.16 Summary by Fund 9.17 General 2,905,000 2,839,000 9.18 Workers' 9.19 Compensation 3,639,000 3,639,000 9.20 Subd. 4. General Support 5,592,000 5,287,000 9.21 This appropriation is from the workers' 9.22 compensation fund. 9.23 Sec. 10. BUREAU OF MEDIATION 9.24 SERVICES 1,673,000 1,673,000 9.25 Sec. 11. WORKERS' COMPENSATION 9.26 COURT OF APPEALS 1,618,000 1,618,000 9.27 This appropriation is from the workers' 9.28 compensation fund. 9.29 Sec. 12. PUBLIC UTILITIES 9.30 COMMISSION 4,163,000 4,163,000 9.31 Sec. 13. MINNESOTA HISTORICAL 9.32 SOCIETY 9.33 Subdivision 1. Total 9.34 Appropriation 21,957,000 21,830,000 9.35 The amounts that may be spent from this 9.36 appropriation for each program are 9.37 specified in the following subdivisions. 9.38 Budget reductions must first be made by 9.39 reducing administrative expenses. 9.40 Reductions in services may be 9.41 considered only after available 9.42 administrative savings have been 9.43 realized. 9.44 Before closing any historic site, the 9.45 society must consult with, and must 9.46 fully consider proposals from, 9.47 interested community groups or 9.48 individuals who are willing to provide 9.49 financial or in-kind support in order 9.50 to continue operation of the site. 9.51 Subd. 2. Education and 10.1 Outreach 12,124,000 12,124,000 10.2 Subd. 3. Preservation and 10.3 Access 9,579,000 9,579,000 10.4 Subd. 4. Fiscal Agent 254,000 127,000 10.5 (a) Minnesota International Center 10.6 43,000 42,000 10.7 (b) Minnesota Air National 10.8 Guard Museum 10.9 16,000 -0- 10.10 (c) Minnesota Military Museum 10.11 67,000 -0- 10.12 (d) Farmamerica 10.13 128,000 85,000 10.14 Notwithstanding any other law, this 10.15 appropriation may be used for 10.16 operations. 10.17 (e) Balances Forward 10.18 Any unencumbered balance remaining in 10.19 this subdivision the first year does 10.20 not cancel but is available for the 10.21 second year of the biennium. 10.22 Subd. 5. Fund Transfer 10.23 The society may reallocate funds 10.24 appropriated in and between 10.25 subdivisions 2 and 3 for any program 10.26 purposes. 10.27 Sec. 14. COUNCIL ON BLACK 10.28 MINNESOTANS 282,000 282,000 10.29 Sec. 15. COUNCIL ON 10.30 CHICANO-LATINO AFFAIRS 275,000 275,000 10.31 Sec. 16. COUNCIL ON 10.32 ASIAN-PACIFIC MINNESOTANS 243,000 243,000 10.33 Sec. 17. INDIAN AFFAIRS 10.34 COUNCIL 482,000 482,000 10.35 Sec. 18. BOARD OF THE 10.36 ARTS 10.37 Subdivision 1. Total 10.38 Appropriation 8,593,000 8,593,000 10.39 Subd. 2. Operations and Services 404,000 404,000 10.40 Subd. 3. Grants Programs 5,767,000 5,767,000 10.41 Subd. 4. Regional Arts 10.42 Councils 2,422,000 2,422,000 10.43 Sec. 19. DEPARTMENT OF EDUCATION 10.44 Subdivision 1. Total Appropriation 2,463,000 2,463,000 11.1 Summary by Fund 11.2 General 1,838,000 1,838,000 11.3 TANF Block Grant 625,000 625,000 11.4 Subd. 2. Emergency Services 350,000 350,000 11.5 Any balance in the first year does not 11.6 cancel but is available in the second 11.7 year. 11.8 Subd. 3. Transitional Housing 2,113,000 2,113,000 11.9 Summary by Fund 11.10 General 1,488,000 1,488,000 11.11 TANF Block Grant 625,000 625,000 11.12 $1,488,000 the first year and 11.13 $1,488,000 the second year are for 11.14 transitional housing programs according 11.15 to Minnesota Statutes, section 11.16 119A.43. Any balance in the first year 11.17 does not cancel but is available in the 11.18 second year. The general fund base 11.19 funding to this program for the 11.20 2006-2007 biennium is $1,988,000 each 11.21 year. 11.22 $450,000 of the TANF block grant 11.23 appropriation to the pathways program 11.24 in Laws 1999, chapter 223, article 1, 11.25 section 2, subdivision 2, is canceled. 11.26 This $450,000 is appropriated to the 11.27 transitional housing programs according 11.28 to Minnesota Statutes, section 11.29 119A.43. Any balance in the first year 11.30 does not cancel but is available in the 11.31 second year. This is a onetime 11.32 appropriation. 11.33 $800,000 of the TANF block grant 11.34 appropriation to the health care and 11.35 human services worker training and 11.36 retention program in Laws 2001, First 11.37 Special Session chapter 4, article 1, 11.38 section 2, subdivision 4, is canceled. 11.39 Of the amount canceled, $175,000 the 11.40 first year and $625,000 the second year 11.41 are appropriated to the transitional 11.42 housing programs according to Minnesota 11.43 Statutes, section 119A.43. Any balance 11.44 in the first year does not cancel but 11.45 is available in the second year. This 11.46 is a onetime appropriation. 11.47 Sec. 20. [CANCELLATIONS AND TRANSFERS.] 11.48 (a) The unexpended balance as of July 1, 2003, from all 11.49 appropriations to the capital access program established under 11.50 Minnesota Statutes, section 116J.8761, is canceled to the 11.51 general fund. 11.52 (b) The unexpended balance as of July 1, 2003, in the 11.53 nongame wildlife tourism program in the department of trade and 12.1 economic development is canceled to the general fund. 12.2 (c) Of the unexpended balance as of July 1, 2003, in the 12.3 Indian business loan program account established under Minnesota 12.4 Statutes, section 116J.64, subdivision 6, $800,000 is 12.5 transferred to the general fund. Notwithstanding the provisions 12.6 of that subdivision, during fiscal years 2004 and 2005, any tax 12.7 revenue that would otherwise be deposited in the Indian business 12.8 loan program account shall be deposited in the general fund. On 12.9 July 10, 2005, the commissioner of finance shall transfer 12.10 $500,000 from the general fund to the Indian business loan 12.11 program account. 12.12 (d) Of the money appropriated for fair housing education 12.13 under Laws 2001, chapter 208, section 28, $800,000 is canceled 12.14 and transferred to the general fund. 12.15 (e) Of the unexpended balance in the consumer education 12.16 account established under Minnesota Statutes, section 58.10, 12.17 subdivision 3, $90,000 is transferred to the general fund. 12.18 (f) Of the money appropriated for education regarding 12.19 mortgage flipping by Laws 1999, chapter 223, article 1, section 12.20 6, subdivision 3, $15,000 is canceled and transferred to the 12.21 general fund. 12.22 (g) Of the appropriation made to the department of trade 12.23 and economic development in Laws 1997, chapter 200, article 1, 12.24 section 2, subdivision 2, $361,000 is canceled to the general 12.25 fund. 12.26 (h) Of the appropriation made to the public facilities 12.27 authority in Laws 2000, chapter 492, article 1, section 22, 12.28 subdivision 3, $700,000 is canceled to the general fund. 12.29 (i) After July 1, 2003, but before September 30, 2003, the 12.30 commissioner of finance shall transfer $800,000 of the 12.31 unexpended balance in the tourism loan account established under 12.32 Minnesota Statutes, section 116J.617, subdivision 5, to the 12.33 general fund. 12.34 (j) Minnesota Statutes, section 116J.617, is repealed. Any 12.35 repayments of principal and any interest earned on money 12.36 previously in the tourism loan account shall be deposited in the 13.1 general fund. 13.2 (k) On or before June 30 of each fiscal year of the 13.3 2004-2005 biennium, the commissioner of finance shall transfer 13.4 $1,000,000 from the workforce development fund to the general 13.5 fund. 13.6 (l) After 1, 2003, but before September 30, 2003, the 13.7 commissioner of finance shall transfer $2,500,000 of the 13.8 unexpended balance in the contractor's recovery fund established 13.9 under Minnesota Statutes, section 326.975, subdivision 1, to the 13.10 general fund. 13.11 (m) Of the unexpended balance in the liquefied petroleum 13.12 gas account established under Minnesota Statutes, section 13.13 239.785, $500,000 is transferred to the general fund. 13.14 ARTICLE 2 13.15 DEPARTMENT OF COMMERCE 13.16 POLICY PROVISIONS 13.17 Section 1. [60A.035] [GOVERNMENT CONTROLLED OR OWNED 13.18 COMPANY PROHIBITED FROM TRANSACTING BUSINESS.] 13.19 (a) No insurance company the voting control or ownership of 13.20 which is held in whole or substantial part by any government or 13.21 governmental agency or entity having a tax exemption under 13.22 section 501(c)(27)(B) or 115 of the Internal Revenue Code of 13.23 1986 or which is operated for or by any such government or 13.24 agency or entity having a tax exemption under section 13.25 501(c)(27)(B) or 115 of the Internal Revenue Code of 1986 is 13.26 authorized to transact insurance in this state. Membership in a 13.27 mutual company, subscribership in a reciprocal insurer, 13.28 ownership of stock of an insurer by the alien property custodian 13.29 or similar official of the United States, or supervision of an 13.30 insurer by public insurance supervisory authority is not 13.31 considered to be an ownership, control, or operation of the 13.32 insurer for the purposes of this section. 13.33 (b) This section does not apply to an insurance company if 13.34 its sole insurance business in this state is providing workers' 13.35 compensation insurance and associated employers' liability 13.36 coverage to an employer principally located in the insurer's 14.1 state of domicile whose employee may receive benefits under 14.2 section 176.041, subdivision 4, provided the operations of the 14.3 employer are for fewer than 30 consecutive days in this state 14.4 and provided the employer has no other significant contacts with 14.5 this state. 14.6 (c) This section does not apply to a fund established under 14.7 section 16B.85, subdivision 2. 14.8 Sec. 2. Minnesota Statutes 2002, section 60A.14, 14.9 subdivision 1, is amended to read: 14.10 Subdivision 1. [FEES OTHER THAN EXAMINATION FEES.] In 14.11 addition to the fees and charges provided for examinations, the 14.12 following fees must be paid to the commissioner for deposit in 14.13 the general fund: 14.14 (a) by township mutual fire insurance companies; 14.15 (1) for filing certificate of incorporation $25 and 14.16 amendments thereto, $10; 14.17 (2) for filing annual statements, $15; 14.18 (3) for each annual certificate of authority, $15; 14.19 (4) for filing bylaws $25 and amendments thereto, $10; 14.20 (b) by other domestic and foreign companies including 14.21 fraternals and reciprocal exchanges; 14.22 (1) for filing certified copy of certificate of articles of 14.23 incorporation, $100; 14.24 (2) for filing annual statement, $225; 14.25 (3) for filing certified copy of amendment to certificate 14.26 or articles of incorporation, $100; 14.27 (4) for filing bylaws, $75 or amendments thereto, $75; 14.28 (5) for each company's certificate of authority, $575, 14.29 annually; 14.30 (c) the following general fees apply: 14.31 (1) for each certificate, including certified copy of 14.32 certificate of authority, renewal, valuation of life policies, 14.33 corporate condition or qualification, $25; 14.34 (2) for each copy of paper on file in the commissioner's 14.35 office 50 cents per page, and $2.50 for certifying the same; 14.36 (3) for license to procure insurance in unadmitted foreign 15.1 companies, $575; 15.2 (4) for valuing the policies of life insurance companies, 15.3 one cent per $1,000 of insurance so valued, provided that the 15.4 fee shall not exceed $13,000 per year for any company. The 15.5 commissioner may, in lieu of a valuation of the policies of any 15.6 foreign life insurance company admitted, or applying for 15.7 admission, to do business in this state, accept a certificate of 15.8 valuation from the company's own actuary or from the 15.9 commissioner of insurance of the state or territory in which the 15.10 company is domiciled; 15.11 (5) for receiving and filing certificates of policies by 15.12 the company's actuary, or by the commissioner of insurance of 15.13 any other state or territory, $50; 15.14 (6) for each appointment of an agent filed with the 15.15 commissioner, $10; 15.16 (7) for filing forms and rates,$75$110 per filing, which 15.17 may be paid on a quarterly basis in response to an invoice. 15.18 Billing and payment may be made electronically; 15.19 (8) for annual renewal of surplus lines insurer license, 15.20 $300;15.21(9) $250 filing fee for a large risk alternative rating15.22option plan that meets the $250,000 threshold requirement. 15.23 The commissioner shall adopt rules to define filings that 15.24 are subject to a fee. 15.25 Sec. 3. Minnesota Statutes 2002, section 79.56, 15.26 subdivision 1, is amended to read: 15.27 Subdivision 1. [PREFILING OF RATES.] (a) Each insurer 15.28 shall file with the commissioner a complete copy of its rates 15.29 and rating plan, and all changes and amendments thereto, and 15.30 such supporting data and information that the commissioner may 15.31 by rule require, at least 60 days prior to its effective date. 15.32 The commissioner shall advise an insurer within 30 days of the 15.33 filing if its submission is not accompanied with such supporting 15.34 data and information that the commissioner by rule may require. 15.35 The commissioner may extend the filing review period and 15.36 effective date for an additional 30 days if an insurer, after 16.1 having been advised of what supporting data and information is 16.2 necessary to complete its filing, does not provide such 16.3 information within 15 days of having been so notified. If any 16.4 rate or rating plan filing or amendment thereto is not 16.5 disapproved by the commissioner within the filing review period, 16.6 the insurer may implement it. For the period August 1, 1995, to 16.7 December 31, 1995, the filing shall be made at least 90 days 16.8 prior to the effective date and the department shall advise an 16.9 insurer within 60 days of such filing if the filing is 16.10 insufficient under this section. 16.11 (b) A rating plan or rates are not subject to the 16.12 requirements of paragraph (a), where the insurer files a 16.13 certification verifying that it will use the rating plan or 16.14 rates only to write a specific employer that generates $250,000 16.15 in annual written workers' compensation premiums before the 16.16 application of any large deductible rating plan. The $250,000 16.17 threshold includes premiums generated in any state. The 16.18 designation and certification shall be submitted in 16.19 substantially the following form: 16.20 Name and address of insurer:................................. 16.21 Name and address of insured employer:........................ 16.22 Effective date of filing:.................................... 16.23 I certify that the employer named above generates $250,000 or 16.24 more in annual written workers' compensation premiums before the 16.25 application of any large deductible rating plan. This 16.26 certification authorizes the use of this rate or rating plan 16.27 only for the named employer. 16.28 Name of responsible officer:................................. 16.29 Title:....................................................... 16.30 Signature:................................................... 16.31 Sec. 4. Minnesota Statutes 2002, section 79.56, 16.32 subdivision 3, is amended to read: 16.33 Subd. 3. [PENALTIES.](a)Any insurer using a rate or a 16.34 rating plan which has not been filed under subdivision 1 shall 16.35 be subject to a fine of up to $100 for each day the failure to 16.36 file continues. The commissioner may, after a hearing on the 17.1 record, find that the failure is willful. A willful failure to 17.2 meet filing requirements shall be punishable by a fine of up to 17.3 $500 for each day during which a willful failure continues. 17.4 These penalties shall be in addition to any other penalties 17.5 provided by law. 17.6(b) Notwithstanding this subdivision, an employer that17.7generates $250,000 in annual written workers' compensation17.8premium under the rates and rating plan of an insurer before the17.9application of any large deductible rating plans, may be written17.10by that insurer using rates or rating plans that are not subject17.11to disapproval but which have been filed. For the purposes of17.12this paragraph, written workers' compensation premiums generated17.13from states other than Minnesota are included in calculating the17.14$250,000 threshold for large risk alternative rating option17.15plans.17.16 Sec. 5. Minnesota Statutes 2002, section 239.10, 17.17 subdivision 3, is amended to read: 17.18 Subd. 3. [OTHER WEIGHTS AND MEASURES.] The director shall 17.19 inspect all weights and measures, except those specified in 17.20 subdivisions 1 and 2, annually, or as often as deemed possible 17.21 within budget and staff limitations, except that the director 17.22 shall not inspect liquid petroleum gas measuring equipment and 17.23 shall not charge a fee related to any such inspections. 17.24 Sec. 6. Minnesota Statutes 2002, section 239.101, 17.25 subdivision 3, is amended to read: 17.26 Subd. 3. [PETROLEUM INSPECTION FEE.] (a) An inspection fee 17.27 is imposed (1) on petroleum products when received by the first 17.28 licensed distributor, and (2) on petroleum products received and 17.29 held for sale or use by any person when the petroleum products 17.30 have not previously been received by a licensed distributor. 17.31 The petroleum inspection fee is85 cents$1 for every 1,000 17.32 gallons received. The commissioner of revenue shall collect the 17.33 fee. The revenue from the fee must first be applied to cover 17.34 the amountsappropriated for petroleum product quality17.35inspection expenses, for the inspection and testing of petroleum17.36product measuring equipment, and for petroleum supply monitoring18.1under chapternecessary to enforce the appropriate provisions of 18.2 chapters 216C, 239, 325D, and 325E. These functions shall be 18.3 performed by departmental staff. 18.4 (b) The commissioner of revenue shall credit a person for 18.5 inspection fees previously paid in error or for any material 18.6 exported or sold for export from the state upon filing of a 18.7 report as prescribed by the commissioner of revenue. 18.8 (c) The commissioner of revenue may collect the inspection 18.9 fee along with any taxes due under chapter 296A. 18.10 Sec. 7. Minnesota Statutes 2002, section 354D.02, 18.11 subdivision 2, is amended to read: 18.12 Subd. 2. [ELIGIBILITY.] Eligible employees are: 18.13 (1) any supervisory or professional employee of the state 18.14 arts board; or 18.15(2) any supervisory or professional employee of the18.16Minnesota humanities commission; or18.17(3)(2) any employee of the Minnesota historical society. 18.18 Sec. 8. [SUSPENSION OF MORTGAGE CREDIT CERTIFICATE AID.] 18.19 Notwithstanding Minnesota Statutes, section 462C.15, during 18.20 the fiscal years 2004 and 2005, no applications or reports shall 18.21 be made pursuant to subdivision 1 of that section, no aid shall 18.22 be provided pursuant to subdivision 3 of that section, and no 18.23 money is appropriated pursuant to subdivision 4 of that section. 18.24 Sec. 9. [AMBULANCE SERVICE LIABILITY INSURANCE STUDY.] 18.25 The commissioner of commerce shall study the availability 18.26 and cost to ambulance services of vehicle and malpractice 18.27 insurance and the factors influencing cost increases. The 18.28 commissioner shall report the results of this study and 18.29 recommendations on means to ensure continued availability of 18.30 affordable insurance to the legislature by January 10, 2004. 18.31 Sec. 10. [UNCLAIMED PROPERTY.] 18.32 The department shall, after July 1, 2003, and before June 18.33 30, 2005, sell the unclaimed property identified by the 18.34 legislative auditor in Finding 1 of its management letter dated 18.35 March 20, 2003. To the degree this property has not been held 18.36 for the three-year period required by law prior to sale, that 19.1 three-year requirement is waived as to this property, and the 19.2 department shall sell the property. 19.3 Sec. 11. [GATS REVIEW AND REPORT.] 19.4 The commissioner of commerce shall analyze and report to 19.5 the legislature on the negative and positive impacts of the new 19.6 round of talks under the World Trade Organization called the 19.7 General Agreement on Trade and Services (GATS), especially those 19.8 rules that would interfere with small businesses regulation, 19.9 regulation of financial institutions and insurance, licensing of 19.10 professional trades, and report back to the chairs of commerce 19.11 and jobs and economic development by January 1, 2004. 19.12 Sec. 12. [REPEALER.] 19.13 Minnesota Statutes 2002, section 138.91, is repealed. 19.14 ARTICLE 3 19.15 DEPARTMENT OF LABOR AND INDUSTRY 19.16 POLICY PROVISIONS 19.17 Section 1. Minnesota Statutes 2002, section 175.16, 19.18 subdivision 1, is amended to read: 19.19 Subdivision 1. [ESTABLISHED.] The department of labor and 19.20 industry shall consist of the following divisions: division of 19.21 workers' compensation, division of boiler inspection, division 19.22 of occupational safety and health, division of statistics, 19.23 division of steamfitting standards,division of voluntary19.24apprenticeship,division of labor standards and apprenticeship, 19.25 and such other divisions as the commissioner of the department 19.26 of labor and industry may deem necessary and establish. Each 19.27 division of the department and persons in charge thereof shall 19.28 be subject to the supervision of the commissioner of the 19.29 department of labor and industry and, in addition to such duties 19.30 as are or may be imposed on them by statute, shall perform such 19.31 other duties as may be assigned to them bysaidthe commissioner. 19.32 Notwithstanding any other law to the contrary, the commissioner 19.33 is the administrator and supervisor of all of the department's 19.34 dispute resolution functions and personnel and may delegate 19.35 authority to compensation judges and others to make 19.36 determinations under sections 176.106, 176.238, and 176.239 and 20.1 to approve settlement of claims under section 176.521. 20.2 Sec. 2. Minnesota Statutes 2002, section 177.26, 20.3 subdivision 1, is amended to read: 20.4 Subdivision 1. [CREATION.] The division of labor standards 20.5 and apprenticeship in the department of labor and industry is 20.6 supervised and controlled by the commissioner of labor and 20.7 industry. 20.8 Sec. 3. Minnesota Statutes 2002, section 177.26, 20.9 subdivision 2, is amended to read: 20.10 Subd. 2. [POWERS AND DUTIES.]The powers, duties, and20.11functions given to the department's division of women and20.12children by this chapter, and other applicable laws relating to20.13wages, hours, and working conditions, are transferred to the20.14division of labor standards.The division of labor standards 20.15 and apprenticeship shall administersections 177.21 to 177.3520.16and chapterchapters 177, 178, 181, 181A, and 184.The division20.17shall perform duties under sections 181.9435 and 181.9436.20.18 Sec. 4. Minnesota Statutes 2002, section 178.01, is 20.19 amended to read: 20.20 178.01 [PURPOSES.] 20.21 The purposes of this chapter are: to open to young people 20.22 regardless of race, sex, creed, color or national origin, the 20.23 opportunity to obtain training that will equip them for 20.24 profitable employment and citizenship; to establish as a means 20.25 to this end, a program of voluntary apprenticeship under 20.26 approved apprentice agreements providing facilities for their 20.27 training and guidance in the arts, skills, and crafts of 20.28 industry and trade, with concurrent, supplementary instruction 20.29 in related subjects; to promote employment opportunities under 20.30 conditions providing adequate training and reasonable earnings; 20.31 to relate the supply of skilled workers to employment demands; 20.32 to establish standards for apprentice training; to establish an 20.33 apprenticeship advisory council and apprenticeship committees to 20.34 assist in effectuating the purposes of this chapter; to provide 20.35 for a division ofvoluntarylabor standards and apprenticeship 20.36 within the department of labor and industry; to provide for 21.1 reports to the legislature regarding the status of apprentice 21.2 training in the state; to establish a procedure for the 21.3 determination of apprentice agreement controversies; and to 21.4 accomplish related ends. 21.5 Sec. 5. Minnesota Statutes 2002, section 178.03, 21.6 subdivision 1, is amended to read: 21.7 Subdivision 1. [ESTABLISHMENT OF DIVISION.] There is 21.8herebyestablished a division ofvoluntarylabor standards and 21.9 apprenticeship in the department of labor and industry. This 21.10 division shall be administered by a director, and be under the 21.11 supervision of the commissioner of labor and industry, 21.12 hereinafter referred to as the commissioner. 21.13 Sec. 6. Minnesota Statutes 2002, section 178.03, 21.14 subdivision 2, is amended to read: 21.15 Subd. 2. [DIRECTOR OFVOLUNTARYLABOR STANDARDS AND 21.16 APPRENTICESHIP.] The commissioner shall appoint a director of 21.17 the division ofvoluntarylabor standards and apprenticeship, 21.18 hereinafter referred to as the director, and may appoint and 21.19 employ such clerical, technical, and professional help as is 21.20 necessary to accomplish the purposes of this chapter. The 21.21 director and division staff shall be appointed and shall serve 21.22 in the classified service pursuant to civil service law and 21.23 rules. 21.24 Sec. 7. [178.12] [REGISTRATION FEE.] 21.25 The apprenticeship registration account is established in 21.26 the special revenue fund of the state treasury. An annual 21.27 registration fee will be charged to each sponsor for each 21.28 apprentice registered in the program. The fee is established at 21.29 $50 per apprentice. Subsequent adjustments to this fee will be 21.30 made pursuant to Minnesota Statutes, sections 16A.1283 and 21.31 16A.1285, subdivision 2. The fees collected and any interest 21.32 earned are appropriated to the commissioner for purposes of this 21.33 chapter. 21.34 Sec. 8. Minnesota Statutes 2002, section 181.9435, 21.35 subdivision 1, is amended to read: 21.36 Subdivision 1. [INVESTIGATION.] The division of labor 22.1 standards and apprenticeship shall receive complaints of 22.2 employees against employers relating to sections 181.940 to 22.3 181.9436 and investigate informally whether an employer may be 22.4 in violation of sections 181.940 to 181.9436. The division 22.5 shall attempt to resolve employee complaints by informing 22.6 employees and employers of the provisions of the law and 22.7 directing employers to comply with the law. 22.8 Sec. 9. Minnesota Statutes 2002, section 181.9436, is 22.9 amended to read: 22.10 181.9436 [POSTING OF LAW.] 22.11 The division of labor standards and apprenticeship shall 22.12 develop, with the assistance of interested business and 22.13 community organizations, an educational poster stating 22.14 employees' rights under sections 181.940 to 181.9436. The 22.15 department shall make the poster available, upon request, to 22.16 employers for posting on the employer's premises. 22.17 Sec. 10. [BOILER INSPECTION AND LICENSE FEE SURCHARGE.] 22.18 The commissioner of labor and industry shall impose a 22.19 surcharge of $5 on each of the fees authorized under Minnesota 22.20 Statutes, section 183.545, subdivisions 2, 3, and 4, for the 22.21 period starting July 1, 2003, and ending June 30, 2005. 22.22 Sec. 11. [REPEALER.] 22.23 Minnesota Statutes 2002, sections 177.26, subdivision 3; 22.24 and 178.11, are repealed. 22.25 Sec. 12. [EFFECTIVE DATE.] 22.26 Section 10 is effective July 1, 2003. 22.27 ARTICLE 4 22.28 DEPARTMENT OF ECONOMIC SECURITY 22.29 POLICY PROVISIONS 22.30 Section 1. Minnesota Statutes 2002, section 248.10, is 22.31 amended to read: 22.32 248.10 [REHABILITATION COUNCIL FOR THE BLIND.] 22.33 (a) The commissioner shall establish a rehabilitation 22.34 council for the blind consistent with the federal Rehabilitation 22.35 Act of 1973, Public Law Number 93-112, as amended. Council 22.36 members shall be compensated as provided in section 15.059, 23.1 subdivision 3. The council shall advise the commissioner about 23.2 programs of the division of state services for the blind. 23.3 (b) Notwithstanding section 13D.01, the rehabilitation 23.4 council for the blind may conduct a meeting of its members by 23.5 telephone or other electronic means so long as the following 23.6 conditions are met: 23.7 (1) all members of the council participating in the 23.8 meeting, wherever their physical location, can hear one another 23.9 and can hear all discussion and testimony; 23.10 (2) members of the public present at the regular meeting 23.11 location of the council can hear all discussion and testimony 23.12 and all votes of members of the council; 23.13 (3) at least one member of the council is physically 23.14 present at the regular meeting location; and 23.15 (4) all votes are conducted by roll call, so each member's 23.16 vote on each issue can be identified and recorded. 23.17 (c) Each member of the council participating in a meeting 23.18 by telephone or other electronic means is considered present at 23.19 the meeting for purposes of determining a quorum and 23.20 participating in all proceedings. 23.21 (d) If telephone or another electronic means is used to 23.22 conduct a meeting, the council to the extent practical, shall 23.23 allow a person to monitor the meeting electronically from a 23.24 remote location. The council may require the person making such 23.25 a connection to pay for documented marginal costs that the 23.26 council incurs as a result of the additional connection. 23.27 (e) If telephone or another electronic means is used to 23.28 conduct a regular, special, or emergency meeting, the council 23.29 shall provide notice of the regular meeting location, of the 23.30 fact that some members may participate by electronic means, and 23.31 of the provisions of paragraph (d). The timing and method of 23.32 providing notice is governed by section 13D.04. 23.33 Sec. 2. Minnesota Statutes 2002, section 268.022, 23.34 subdivision 1, is amended to read: 23.35 Subdivision 1. [DETERMINATION AND COLLECTION OF SPECIAL 23.36 ASSESSMENT.] (a) In addition to all other taxes, assessments, 24.1 and payment obligations under chapter 268, each employer, except 24.2 an employer making payments in lieu of taxes is liable for a 24.3 special assessment leviedat the rate of one-tenth of one24.4percent per year until June 30, 2000, and seven-hundredths of24.5one percent per year on and after July 1, 2000,on all taxable 24.6 wages, as defined in section 268.035, subdivision 24. The 24.7 assessment shall become due and be paid by each employer to the 24.8 department on the same schedule and in the same manner as other 24.9 taxes. The assessment shall be at the rate specified in 24.10 paragraph (b). 24.11 (b) On or before October 1 of each year, the commissioner 24.12 shall determine the special assessment rate for the following 24.13 calendar year, which shall be either 5/100 of one percent, 7/100 24.14 of one percent, or one-tenth of one percent of taxable wages. 24.15 In determining the rate, the commissioner shall consider the 24.16 balance in the workforce development fund, available state and 24.17 local unemployment statistics, and any appropriate information 24.18 regarding the state's overall economic outlook. 24.19 The special assessment levied under this section shall not 24.20 affect the computation of any other taxes, assessments, or 24.21 payment obligations due under this chapter. 24.22 Sec. 3. Minnesota Statutes 2002, section 268A.02, is 24.23 amended by adding a subdivision to read: 24.24 Subd. 3. [MEETINGS.] (a) Notwithstanding section 13D.01, 24.25 the state rehabilitation council and state independent living 24.26 council may conduct meetings of their members by telephone or 24.27 other electronic means as long as the following conditions are 24.28 met: 24.29 (1) all members of the council participating in the 24.30 meeting, wherever their physical location, can hear one another 24.31 and can hear all discussion and testimony; 24.32 (2) members of the public present at the regular meeting 24.33 location of the council can hear all discussion and testimony 24.34 and all votes of members of the council; 24.35 (3) at least one member of the council is physically 24.36 present at the regular meeting location; and 25.1 (4) all votes are conducted by roll call, so each member's 25.2 vote on each issue can be identified and recorded. 25.3 (b) Each member of the council participating in a meeting 25.4 by telephone or other electronic means is considered present at 25.5 the meeting for purposes of determining a quorum and 25.6 participating in all proceedings. 25.7 (c) If telephone or another electronic means is used to 25.8 conduct a meeting, the council to the extent practical, shall 25.9 allow a person to monitor the meeting electronically from a 25.10 remote location. The council may require the person making such 25.11 a connection to pay for documented marginal costs that the 25.12 council incurs as a result of the additional connection. 25.13 (d) If telephone or another electronic means is used to 25.14 conduct a regular, special, or emergency meeting, the council 25.15 shall provide notice of the regular meeting location, of the 25.16 fact that some members may participate by electronic means, and 25.17 of the provisions of paragraph (c). The timing and method of 25.18 providing notice is governed by section 13D.04. 25.19 Sec. 4. [PLAN TO REDUCE NUMBER OF WORKFORCE SERVICE 25.20 AREAS.] 25.21 The governor's workforce development council shall, in 25.22 consultation with representatives of the local workforce 25.23 councils and local elected officials, study the current 25.24 configuration of workforce service areas in Minnesota and 25.25 whether the efficiency or quality of service delivery could be 25.26 improved by changing the boundaries of workforce service areas 25.27 or reducing the number of areas. The council shall report to 25.28 the legislature by January 1, 2004. 25.29 ARTICLE 5 25.30 PETROFUND 25.31 Section 1. Minnesota Statutes 2002, section 115C.02, 25.32 subdivision 14, is amended to read: 25.33 Subd. 14. [TANK.] "Tank" means any one or a combination of 25.34 containers, vessels, and enclosures, including structures and 25.35 appurtenances connected to them, that is, or has been, used to 25.36 containor, dispense, store, or transport petroleum. 26.1 "Tank" does not include: 26.2(1) a mobile storage tank used to transport petroleum from26.3one location to another, except a mobile storage tank with a26.4capacity of 500 gallons or less used only to transport home26.5heating fuel on private property; or26.6(2)pipeline facilities, including gathering lines, 26.7 regulated under the Natural Gas Pipeline Safety Act of 1968, 26.8 United States Code, title 49, chapter 24, or the Hazardous 26.9 Liquid Pipeline Safety Act of 1979, United States Code, title 26.10 49, chapter 29. 26.11 Sec. 2. Minnesota Statutes 2002, section 115C.08, 26.12 subdivision 4, is amended to read: 26.13 Subd. 4. [EXPENDITURES.] (a) Money in the fund may only be 26.14 spent: 26.15 (1) to administer the petroleum tank release cleanup 26.16 program established in this chapter; 26.17 (2) for agency administrative costs under sections 116.46 26.18 to 116.50, sections 115C.03 to 115C.06, and costs of corrective 26.19 action taken by the agency under section 115C.03, including 26.20 investigations; 26.21 (3) for costs of recovering expenses of corrective actions 26.22 under section 115C.04; 26.23 (4) for training, certification, and rulemaking under 26.24 sections 116.46 to 116.50; 26.25 (5) for agency administrative costs of enforcing rules 26.26 governing the construction, installation, operation, and closure 26.27 of aboveground and underground petroleum storage tanks; 26.28 (6) for reimbursement of the environmental response, 26.29 compensation, and compliance account under subdivision 5 and 26.30 section 115B.26, subdivision 4; 26.31 (7) for administrative and staff costs as set by the board 26.32 to administer the petroleum tank release program established in 26.33 this chapter; 26.34 (8) for corrective action performance audits under section 26.35 115C.093; and 26.36 (9) for contamination cleanup grants, as provided in 27.1 paragraph (c); and 27.2 (10) to assess and remove abandoned underground storage 27.3 tanks under section 115C.094 and, if a release is discovered, to 27.4 pay for the specific consultant and contractor services costs 27.5 necessary to complete the tank removal project, including, but 27.6 not limited to, excavation soil sampling, groundwater sampling, 27.7 soil disposal, and completion of an excavation report. 27.8 (b) Except as provided in paragraph (c), money in the fund 27.9 is appropriated to the board to make reimbursements or payments 27.10 under this section. 27.11 (c) $6,200,000 is annually appropriated from the fund to 27.12 the commissioner of trade and economic development for 27.13 contamination cleanup grants under section 116J.554. Of this 27.14 amount, the commissioner may spend up to $120,000 annually for 27.15 administration of the contamination cleanup grant program. The 27.16 appropriation does not cancel and is available until expended. 27.17 The appropriation shall not be withdrawn from the fund nor the 27.18 fund balance reduced until the funds are requested by the 27.19 commissioner of trade and economic development. The 27.20 commissioner shall schedule requests for withdrawals from the 27.21 fund to minimize the necessity to impose the fee authorized by 27.22 subdivision 2. Unless otherwise provided, the appropriation in 27.23 this paragraph may be used for: 27.24 (1) project costs at a qualifying site if a portion of the 27.25 cleanup costs are attributable to petroleum contamination; and 27.26 (2) the costs of performing contamination investigation if 27.27 there is a reasonable basis to suspect the contamination is 27.28 attributable to petroleum. 27.29 Sec. 3. Minnesota Statutes 2002, section 115C.09, 27.30 subdivision 3, is amended to read: 27.31 Subd. 3. [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) 27.32 The board shall reimburse an eligible applicant from the fund 27.33 for 90 percent of the total reimbursable costs incurred at the 27.34 site, except that the board may reimburse an eligible applicant 27.35 from the fund for greater than 90 percent of the total 27.36 reimbursable costs, if the applicant previously qualified for a 28.1 higher reimbursement rate. For costs associated with a release 28.2 from a tank in transport, the board may reimburse 90 percent of 28.3 costs over $10,000, with the maximum reimbursement not to exceed 28.4 $100,000. 28.5 Not more than $1,000,000 may be reimbursed for costs 28.6 associated with a single release, regardless of the number of 28.7 persons eligible for reimbursement, and not more than $2,000,000 28.8 may be reimbursed for costs associated with a single tank 28.9 facility. 28.10 (b) A reimbursement may not be made from the fund under 28.11 this chapter until the board has determined that the costs for 28.12 which reimbursement is requested were actually incurred and were 28.13 reasonable. 28.14 (c) When an applicant has obtained responsible competitive 28.15 bids or proposals according to rules promulgated under this 28.16 chapter prior to June 1, 1995, the eligible costs for the tasks, 28.17 procedures, services, materials, equipment, and tests of the low 28.18 bid or proposal are presumed to be reasonable by the board, 28.19 unless the costs of the low bid or proposal are substantially in 28.20 excess of the average costs charged for similar tasks, 28.21 procedures, services, materials, equipment, and tests in the 28.22 same geographical area during the same time period. 28.23 (d) When an applicant has obtained a minimum of two 28.24 responsible competitive bids or proposals on forms prescribed by 28.25 the board and where the rules promulgated under this chapter 28.26 after June 1, 1995, designate maximum costs for specific tasks, 28.27 procedures, services, materials, equipment and tests, the 28.28 eligible costs of the low bid or proposal are deemed reasonable 28.29 if the costs are at or below the maximums set forth in the rules. 28.30 (e) Costs incurred for change orders executed as prescribed 28.31 in rules promulgated under this chapter after June 1, 1995, are 28.32 presumed reasonable if the costs are at or below the maximums 28.33 set forth in the rules, unless the costs in the change order are 28.34 above those in the original bid or proposal or are 28.35 unsubstantiated and inconsistent with the process and standards 28.36 required by the rules. 29.1 (f) A reimbursement may not be made from the fund in 29.2 response to either an initial or supplemental application for 29.3 costs incurred after June 4, 1987, that are payable under an 29.4 applicable insurance policy, except that if the board finds that 29.5 the applicant has made reasonable efforts to collect from an 29.6 insurer and failed, the board shall reimburse the applicant. 29.7 (g) If the board reimburses an applicant for costs for 29.8 which the applicant has insurance coverage, the board is 29.9 subrogated to the rights of the applicant with respect to that 29.10 insurance coverage, to the extent of the reimbursement by the 29.11 board. The board may request the attorney general to bring an 29.12 action in district court against the insurer to enforce the 29.13 board's subrogation rights. Acceptance by an applicant of 29.14 reimbursement constitutes an assignment by the applicant to the 29.15 board of any rights of the applicant with respect to any 29.16 insurance coverage applicable to the costs that are reimbursed. 29.17 Notwithstanding this paragraph, the board may instead request a 29.18 return of the reimbursement under subdivision 5 and may employ 29.19 against the applicant the remedies provided in that subdivision, 29.20 except where the board has knowingly provided reimbursement 29.21 because the applicant was denied coverage by the insurer. 29.22 (h) Money in the fund is appropriated to the board to make 29.23 reimbursements under this chapter. A reimbursement to a state 29.24 agency must be credited to the appropriation account or accounts 29.25 from which the reimbursed costs were paid. 29.26 (i) The board may reduce the amount of reimbursement to be 29.27 made under this chapter if it finds that the applicant has not 29.28 complied with a provision of this chapter, a rule or order 29.29 issued under this chapter, or one or more of the following 29.30 requirements: 29.31 (1) the agency was given notice of the release as required 29.32 by section 115.061; 29.33 (2) the applicant, to the extent possible, fully cooperated 29.34 with the agency in responding to the release; 29.35 (3) the state rules applicable after December 22, 1993, to 29.36 operating an underground storage tank and appurtenances without 30.1 leak detection; 30.2 (4) the state rules applicable after December 22, 1998, to 30.3 operating an underground storage tank and appurtenances without 30.4 corrosion protection or spill and overfill protection; and 30.5 (5) the state rule applicable after November 1, 1998, to 30.6 operating an aboveground tank without a dike or other structure 30.7 that would contain a spill at the aboveground tank site. 30.8 (j) The reimbursement may be reduced as much as 100 percent 30.9 for failure by the applicant to comply with the requirements in 30.10 paragraph (i), clauses (1) to (5). In determining the amount of 30.11 the reimbursement reduction, the board shall consider: 30.12 (1) the reasonable determination by the agency that the 30.13 noncompliance poses a threat to the environment; 30.14 (2) whether the noncompliance was negligent, knowing, or 30.15 willful; 30.16 (3) the deterrent effect of the award reduction on other 30.17 tank owners and operators; 30.18 (4) the amount of reimbursement reduction recommended by 30.19 the commissioner; and 30.20 (5) the documentation of noncompliance provided by the 30.21 commissioner. 30.22 (k) An applicant mayassign the right to receive30.23reimbursement torequest that the board issue a multiparty check 30.24 that includes each lender who advanced funds to pay the costs of 30.25 the corrective action or to each contractor or consultant who 30.26 provided corrective action services.An assignmentThis request 30.27 must be made by filing with the board a document, in a form 30.28 prescribed by the board, indicating the identity of the 30.29 applicant, the identity of theassigneelender, contractor, or 30.30 consultant, the dollar amountof the assignment, and the 30.31 location of the corrective action.An assignment signed by the30.32applicant is valid unless terminated by filing a termination30.33with the board, in a form prescribed by the board, which must30.34include the written concurrence of the assignee. The board30.35shall maintain an index of assignments filed under this30.36paragraph. The board shall pay the reimbursement to the31.1applicant and to one or more assignees by a multiparty31.2check.The applicant must submit a request for the issuance of 31.3 a multiparty check for each application submitted to the board. 31.4 Payment under this paragraph does not constitute the assignment 31.5 of the applicant's right to reimbursement to the consultant, 31.6 contractor, or lender. The board has no liability to an 31.7 applicant for a paymentunder an assignment meetingissued as a 31.8 multiparty check that meets the requirements of this paragraph. 31.9 Sec. 4. Minnesota Statutes 2002, section 115C.09, is 31.10 amended by adding a subdivision to read: 31.11 Subd. 3i. [REIMBURSEMENT; NATURAL DISASTER AREA.] (a) As 31.12 used in this subdivision, "natural disaster area" means a 31.13 geographical area that has been declared a disaster by the 31.14 governor and President of the United States. 31.15 (b) Notwithstanding subdivision 3, paragraph (a), and 31.16 Minnesota Rules, chapter 2890, with the exception of Minnesota 31.17 Rules, parts 2890.0010 to 2890.0065, and 2890.0090 to 2890.0130, 31.18 the board may reimburse: 31.19 (1) up to 50 percent of an applicant' pre-natural-disaster 31.20 estimated building market value as recorded by the county 31.21 assessor; or 31.22 (2) if the applicant conveys title of the real estate to 31.23 local or state government, up to 50 percent of the 31.24 pre-natural-disaster estimated total market value, not to exceed 31.25 one acre, as recorded by the county assessor. 31.26 (c) Paragraph (b) applies only if the applicant documents 31.27 that: 31.28 (1) the natural disaster area has been declared eligible 31.29 for state or federal emergency aid; 31.30 (2) the building is declared uninhabitable by the 31.31 commissioner because of damage caused by the release of 31.32 petroleum from a petroleum storage tank; and 31.33 (3) the applicant has submitted a claim under any 31.34 applicable insurance policies and has been denied benefits under 31.35 those policies. 31.36 (d) In determining the percentage for reimbursement, the 32.1 board shall consider the applicant's eligibility to receive 32.2 other state or federal financial assistance and determine a 32.3 lesser reimbursement rate to the extent that the applicant is 32.4 eligible to receive financial assistance that exceeds 50 percent 32.5 of the applicant's pre-natural-disaster estimated building 32.6 market value or total market value. 32.7 Sec. 5. [115C.094] [ABANDONED UNDERGROUND STORAGE TANKS.] 32.8 (a) As used in this section, an abandoned underground 32.9 petroleum storage tank means an underground petroleum storage 32.10 tank that was: 32.11 (1) taken out of service prior to December 22, 1988; or 32.12 (2) taken out of service on or after December 22, 1988, if 32.13 the current property owner did not know of the existence of the 32.14 underground petroleum storage tank and cannot reasonably be 32.15 expected to have known of the tank's existence. 32.16 (b) The board may contract for: 32.17 (1) a statewide assessment in order to determine the 32.18 quantity, location, cost, and feasibility of removing abandoned 32.19 underground petroleum storage tanks; 32.20 (2) the removal of an abandoned underground petroleum 32.21 storage tank; and 32.22 (3) the removal and disposal of petroleum-contaminated soil 32.23 if the removal is required by the commissioner at the time of 32.24 tank removal. 32.25 (c) Before the board may contract for removal of an 32.26 abandoned petroleum storage tank, the tank owner must provide 32.27 the board with written access to the property and release the 32.28 board from any potential liability for the work performed. 32.29 (d) Money in the fund is appropriated to the board for the 32.30 purposes of this section. 32.31 Sec. 6. Minnesota Statutes 2002, section 115C.11, 32.32 subdivision 1, is amended to read: 32.33 Subdivision 1. [REGISTRATION.] (a) All consultants and 32.34 contractors who perform corrective action services must register 32.35 with the board. In order to register, consultants must meet and 32.36 demonstrate compliance with the following criteria: 33.1 (1) provide a signed statement to the board verifying 33.2 agreement to abide by this chapter and the rules adopted under 33.3 it and to include a signed statement with each claim that all 33.4 costs claimed by the consultant are a true and accurate account 33.5 of services performed; 33.6 (2) provide a signed statement that the consultant shall 33.7 make available for inspection any records requested by the board 33.8 for field or financial audits under the scope of this chapter; 33.9 (3) certify knowledge of the requirements of this chapter 33.10 and the rules adopted under it; 33.11 (4) obtain and maintain professional liability coverage, 33.12 including pollution impairment liability; and 33.13 (5) agree to submit to the board a certificate or 33.14 certificates verifying the existence of the required insurance 33.15 coverage. 33.16 (b) The board must maintain a list of all registered 33.17 consultants and a list of all registered contractors. 33.18 (c) All corrective action services must be performed by 33.19 registered consultants and contractors. 33.20 (d) Reimbursement for corrective action services performed 33.21 by an unregistered consultant or contractor is subject to 33.22 reduction under section 115C.09, subdivision 3, paragraph (i). 33.23 (e) Corrective action services performed by a consultant or 33.24 contractor prior to being removed from the registration list may 33.25 be reimbursed without reduction by the board. 33.26 (f) If the information in an application for registration 33.27 becomes inaccurate or incomplete in any material respect, the 33.28 registered consultant or contractor must promptly file a 33.29 corrected application with the board. 33.30 (g) Registration is effective 30 days after a complete 33.31 application is received by the board. The board may reimburse 33.32 without reduction the cost of work performed by an unregistered 33.33 contractor if the contractor performed the work within 60 days 33.34 of the effective date of registration. 33.35 (h) Registration for consultants under this section remains 33.36 in force until the expiration date of the professional liability 34.1 coverage, including pollution impairment liability, required 34.2 under paragraph (a), clause (4), or until voluntarily terminated 34.3 by the registrant, or until suspended or revoked by the 34.4 commissioner of commerce. Registration for contractors under 34.5 this section expires each year on the anniversary of the 34.6 effective date of the contractor's most recent registration and 34.7 must be renewed on or before expiration. Prior to its annual 34.8 expiration, a registration remains in force until voluntarily 34.9 terminated by the registrant, or until suspended or revoked by 34.10 the commissioner of commerce. All registrants must comply with 34.11 registration criteria under this section. 34.12 (i) The board may deny a consultant or contractor 34.13 registration or request for renewal under this section if the 34.14 consultant or contractor: 34.15 (1) does not intend to or is not in good faith carrying on 34.16 the business of an environmental consultant or contractor; 34.17 (2) has filed an application for registration that is 34.18 incomplete in any material respect or contains any statement 34.19 which, in light of the circumstances under which it is made, 34.20 contains any misrepresentation, or is false, misleading, or 34.21 fraudulent; 34.22 (3) has engaged in any fraudulent, coercive, deceptive, or 34.23 dishonest act or practice whether or not such act or practice 34.24 involves the business of environmental consulting or 34.25 contracting; 34.26 (4) has forged another's name to any document whether or 34.27 not the document relates to a document approved by the board; 34.28 (5) has plead guilty, with or without explicitly admitting 34.29 guilt; plead nolo contendere; or been convicted of a felony, 34.30 gross misdemeanor, or misdemeanor involving moral turpitude, 34.31 including, but not limited to, assault, harassment, or similar 34.32 conduct; 34.33 (6) has been subject to disciplinary action in another 34.34 state or jurisdiction; or 34.35 (7) has not paid subcontractors hired by the consultant or 34.36 contractor after they have been paid in full by the applicant. 35.1 Sec. 7. Minnesota Statutes 2002, section 115C.13, is 35.2 amended to read: 35.3 115C.13 [REPEALER.] 35.4 Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 35.5 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 35.6 115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112, 35.7 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 35.820052007. 35.9 ARTICLE 6 35.10 DEPARTMENT OF TRADE AND ECONOMIC 35.11 DEVELOPMENT POLICY PROVISIONS 35.12 Section 1. Minnesota Statutes 2002, section 17.101, 35.13 subdivision 1, is amended to read: 35.14 Subdivision 1. [DEPARTMENTAL DUTIES.] For the purposes of 35.15 expanding, improving, and developing production and marketing of 35.16 products of Minnesota agriculture, the commissioner shall 35.17 encourage and promote the production and marketing of these 35.18 products by means of: 35.19 (a) advertising Minnesota agricultural products; 35.20 (b) assisting state agricultural commodity organizations; 35.21 (c) developing methods to increase processing and marketing 35.22 of agricultural commodities including commodities not being 35.23 produced in Minnesota on a commercial scale, but which may have 35.24 economic potential in national and international markets; 35.25 (d) investigating and identifying new marketing technology 35.26 and methods to enhance the competitive position of Minnesota 35.27 agricultural products; 35.28 (e) evaluating livestock marketing opportunities; 35.29 (f) assessing and developing national and international 35.30 markets for Minnesota agricultural products; 35.31 (g) studying the conversion of raw agricultural products to 35.32 manufactured products including ethanol; 35.33 (h) hosting the visits of foreign trade teams to Minnesota 35.34 and defraying the teams' expenses; 35.35 (i) assisting Minnesota agricultural businesses desiring to 35.36 sell their products; 36.1 (j) conducting research to eliminate or reduce specific 36.2 production or technological barriers to market development and 36.3 trade; and 36.4 (k) other activities the commissioner deems appropriate to 36.5 promote Minnesota agricultural products, provided that the 36.6 activities do not duplicate programs or services provided by the 36.7 Minnesota trade divisionor the Minnesota world trade center. 36.8 Sec. 2. Minnesota Statutes 2002, section 41A.036, 36.9 subdivision 2, is amended to read: 36.10 Subd. 2. [SMALL BUSINESS DEVELOPMENT LOANS; PREFERENCES.] 36.11 The following eligible small businesses have preference among 36.12 all business applicants for small business development loans: 36.13 (1) businesses located in rural areas of the state that are 36.14 experiencing the most severe unemployment rates in the state; 36.15 (2) businesses that are likely to expand and provide 36.16 additional permanent employment in rural areas of the state, or 36.17 enhance the quality of existing jobs in those areas; 36.18 (3) businesses located in border communities that 36.19 experience a competitive disadvantage due to location; 36.20 (4) businesses that have been unable to obtain traditional 36.21 financial assistance due to a disadvantageous location, minority 36.22 ownership, or other factors rather than due to the business 36.23 having been considered a poor financial risk; 36.24 (5) businesses that utilize state resources and reduce 36.25 state dependence on outside resources, and that produce products 36.26 or services consistent with the long-term social and economic 36.27 needs of the state; and 36.28 (6) businesses located in designated enterprise zones, as 36.29 described in section 469.168. 36.30 Sec. 3. Minnesota Statutes 2002, section 115C.08, 36.31 subdivision 4, is amended to read: 36.32 Subd. 4. [EXPENDITURES.] (a) Money in the fund may only be 36.33 spent: 36.34 (1) to administer the petroleum tank release cleanup 36.35 program established in this chapter; 36.36 (2) for agency administrative costs under sections 116.46 37.1 to 116.50, sections 115C.03 to 115C.06, and costs of corrective 37.2 action taken by the agency under section 115C.03, including 37.3 investigations; 37.4 (3) for costs of recovering expenses of corrective actions 37.5 under section 115C.04; 37.6 (4) for training, certification, and rulemaking under 37.7 sections 116.46 to 116.50; 37.8 (5) for agency administrative costs of enforcing rules 37.9 governing the construction, installation, operation, and closure 37.10 of aboveground and underground petroleum storage tanks; 37.11 (6) for reimbursement of the environmental response, 37.12 compensation, and compliance account under subdivision 5 and 37.13 section 115B.26, subdivision 4; 37.14 (7) for administrative and staff costs as set by the board 37.15 to administer the petroleum tank release program established in 37.16 this chapter; 37.17 (8) for corrective action performance audits under section 37.18 115C.093; and 37.19 (9) for contamination cleanup grants, as provided in 37.20 paragraph (c). 37.21 (b) Except as provided in paragraph (c), money in the fund 37.22 is appropriated to the board to make reimbursements or payments 37.23 under this section. 37.24 (c) $6,200,000 is annually appropriated from the fund to 37.25 the commissioner of trade and economic development for 37.26 contamination cleanup grants under section 116J.554. Of this 37.27 amount, the commissioner may spend up to$120,000$180,000 37.28 annually for administration of the contamination cleanup grant 37.29 program. The appropriation does not cancel and is available 37.30 until expended. The appropriation shall not be withdrawn from 37.31 the fund nor the fund balance reduced until the funds are 37.32 requested by the commissioner of trade and economic 37.33 development. The commissioner shall schedule requests for 37.34 withdrawals from the fund to minimize the necessity to impose 37.35 the fee authorized by subdivision 2. Unless otherwise provided, 37.36 the appropriation in this paragraph may be used for: 38.1 (1) project costs at a qualifying site if a portion of the 38.2 cleanup costs are attributable to petroleum contamination; and 38.3 (2) the costs of performing contamination investigation if 38.4 there is a reasonable basis to suspect the contamination is 38.5 attributable to petroleum. 38.6 [EFFECTIVE DATE.] This section is effective June 30, 2003. 38.7 Sec. 4. Minnesota Statutes 2002, section 116J.011, is 38.8 amended to read: 38.9 116J.011 [MISSION.] 38.10 The mission of the department of trade and economic 38.11 development is to employ all of the available state government 38.12 resources to facilitate an economic environment that produces 38.13 net new job growth in excess of the national average, to improve 38.14 the quality of existing jobs, and to increase nonresident and 38.15 resident tourism revenues. It is part of the department's 38.16 mission that within the department's resources the commissioner 38.17 shall endeavor to: 38.18 (1) prevent the waste or unnecessary spending of public 38.19 money; 38.20 (2) use innovative fiscal and human resource practices to 38.21 manage the state's resources and operate the department as 38.22 efficiently as possible; 38.23 (3) coordinate the department's activities wherever 38.24 appropriate with the activities of other governmental agencies; 38.25 (4) use technology where appropriate to increase agency 38.26 productivity, improve customer service, increase public access 38.27 to information about government, and increase public 38.28 participation in the business of government; 38.29 (5) utilize constructive and cooperative labor-management 38.30 practices to the extent otherwise required by chapters 43A and 38.31 179A; 38.32 (6) report to the legislature on the performance of agency 38.33 operations and the accomplishment of agency goals in the 38.34 agency's biennial budget according to section 16A.10, 38.35 subdivision 1; and 38.36 (7) recommend to the legislature appropriate changes in law 39.1 necessary to carry out the mission and improve the performance 39.2 of the department. 39.3 Sec. 5. Minnesota Statutes 2002, section 116J.411, is 39.4 amended by adding a subdivision to read: 39.5 Subd. 2a. [JOB ENHANCEMENT.] "Job enhancement" means an 39.6 increase in wages; and 39.7 (1) an increase in the responsibility or skill level of job 39.8 duties; or 39.9 (2) the provision of additional training or education for 39.10 employees in existing jobs. 39.11 Sec. 6. Minnesota Statutes 2002, section 116J.415, 39.12 subdivision 1, is amended to read: 39.13 Subdivision 1. [ORGANIZATION.] The commissioner shall make 39.14 challenge grants to regional organizations, for the purpose of 39.15 providing financial assistance to encourage private investment, 39.16 to provide jobs or job enhancement for low-income persons, and 39.17 to promote economic development in the rural areas of the state. 39.18 Sec. 7. Minnesota Statutes 2002, section 116J.415, 39.19 subdivision 2, is amended to read: 39.20 Subd. 2. [FUNDING REGIONS.] The commissioner shall divide 39.21 the state outside of the metropolitan area as defined in section 39.22 473.121, subdivision 2, into six regions. A region's boundaries 39.23 must be coterminous with the boundaries of one or more of the 39.24 development regions established under section 462.385. The 39.25 commissioner shalldesignate up to $1,000,000 for each region,39.26to be awarded over a period of three yearsallocate all funds 39.27 remaining in each regional subaccount of the rural 39.28 rehabilitation account, as established under section 166J.955, 39.29 to each respective regional organization. The money designated 39.30 to each region must be used forrevolving loansassistance 39.31 authorized in this section. 39.32 Sec. 8. Minnesota Statutes 2002, section 116J.415, 39.33 subdivision 4, is amended to read: 39.34 Subd. 4. [REVOLVINGLOANFUND.] A regional organization 39.35 shall establish a commissioner certified revolvingloanfundto39.36provide loans to new and expanding businesses in rural Minnesota40.1 to promote economic development in rural Minnesota.Eligible40.2business enterprises include technologically innovative40.3industries, value-added manufacturing, agriprocessing,40.4information industries, and agricultural marketing. Loan40.5applications given preliminary approval by the organization must40.6be forwarded to the commissioner for final approval. The amount40.7of state money allocated for each loan is appropriated from the40.8rural rehabilitation account established in section 116J.955 to40.9the organization's regional revolving loan fund when the40.10commissioner gives final approval for each loan. The amount of40.11money appropriated from the rural rehabilitation account may not40.12exceed 50 percent for each loan. The amount of nonpublic money40.13must equal at least 50 percent for each loan.Funds may be used 40.14 to provide loans, loan guarantees, interest buy-downs, and other 40.15 forms of participation with private sources of financing, 40.16 provided that the financial assistance must be for a principal 40.17 amount that does not exceed one-half of the cost of the project 40.18 for which financing is sought. 40.19 Sec. 9. Minnesota Statutes 2002, section 116J.415, 40.20 subdivision 5, is amended to read: 40.21 Subd. 5. [LOANASSISTANCE CRITERIA.]The following40.22criteria apply to loans made underProjects supported through 40.23 the challenge grant program must be used principally to benefit 40.24 low-income persons by: 40.25(1) loans must be made to businesses that are not likely to40.26undertake a project for which loans are sought without40.27assistance from the challenge grant program;40.28(2) a loan must be used for a project designed principally40.29to benefit low-income persons through the creation of job or40.30business opportunities for them;40.31(3) the minimum loan is $5,000 and the maximum is $200,000;40.32(4) a loan may not exceed 50 percent of the total cost of40.33an individual project;40.34(5) a loan may not be used for a retail development40.35project; and40.36(6) a business applying for a loan, except a41.1microenterprise loan under subdivision 6, must be sponsored by a41.2resolution of the governing body of the local governmental unit41.3within whose jurisdiction the project is located.41.4 (1) creating new jobs or retaining existing jobs; 41.5 (2) increasing the local tax base; 41.6 (3) demonstrating that investment of public dollars induces 41.7 private funds; 41.8 (4) providing higher wage levels to the community or adding 41.9 value to current workforce skills; 41.10 (5) retaining existing business; or 41.11 (6) attracting out-of-state business. 41.12 Sec. 10. Minnesota Statutes 2002, section 116J.415, 41.13 subdivision 7, is amended to read: 41.14 Subd. 7. [REVOLVING FUND ADMINISTRATION.](a) The41.15commissioner shall establish a minimum interest rate for loans41.16to ensure that necessary management costs are covered.41.17(b) LoanRepayment amountsequal to one-half of the41.18principal and interest must be deposited in the rural41.19rehabilitation revolving fund for challenge grants to the region41.20from which the money was originally designated. The remaining41.21amount of the loan repayment maymust be deposited in the 41.22 regional revolvingloanfund for further distribution by the 41.23 regional organization, consistent with the loan criteria 41.24 specified in subdivisions 4 and 5. 41.25(c) The first $1,000,000 of revolving loans for each region41.26must be matched by nonstate sources. The matching requirement41.27does not apply to loans made under paragraph (b).41.28(d) Administrative expenses of each organization may be41.29paid out of the interest earned on loans and on interest earned41.30on money invested by the state board of investment under section41.31116J.413, subdivision 2.41.32 Sec. 11. Minnesota Statutes 2002, section 116J.415, 41.33 subdivision 11, is amended to read: 41.34 Subd. 11. [REPORTING REQUIREMENTS.] An organization that 41.35 receives a challenge grant shall: 41.36 (1) submit an annual report to the commissioner byFebruary42.115 of eachAugust 30 for the preceding fiscal year that includes 42.2a description of projects supported by the challenge grant42.3program,an account of loans made, written off, and fully paid 42.4 during the calendar year, the source and amount of money 42.5 collected and distributed by thechallenge grant program42.6 regional revolving fund, and theprogram's assets and42.7liabilities, and an explanation of administrative42.8expensesfunds' cash balance and loans receivable; and 42.9 (2) provide for an independent annual audit to be performed 42.10 in accordance with generally accepted accounting practices and 42.11 auditing standards and submit a copy of each annual audit report 42.12 to the commissioner. 42.13 Sec. 12. Minnesota Statutes 2002, section 116J.553, 42.14 subdivision 2, is amended to read: 42.15 Subd. 2. [REQUIRED CONTENT.] (a) The commissioner shall 42.16 prescribe and provide the application form. The application 42.17 must include at least the following information: 42.18 (1) identification of the site; 42.19 (2) an approved response action plan for the site, 42.20 including the results of engineering and other tests showing the 42.21 nature and extent of the release or threatened release of 42.22 contaminants at the site; 42.23 (3) a detailed estimate, along with necessary supporting 42.24 evidence, of the total cleanup costs for the site; 42.25 (4) an appraisal of the current market value of the 42.26 property, separately taking into account the effect of the 42.27 contaminants on the market value, prepared by a qualified 42.28 independent appraiser licensed under chapter 82B using accepted 42.29 appraisal methodology or, the estimated market value of the 42.30 property for the latest year shown on the most recent valuation 42.31 notice used under section 273.121; 42.32 (5) an assessment of the development potential or likely 42.33 use of the site after completion of the response action plan, 42.34 including any specific commitments from third parties to 42.35 construct improvements on the site; 42.36 (6) the manner in which the municipality will meet the 43.1 local match requirement; and 43.2 (7) any additional information or material that the 43.3 commissioner prescribes. 43.4 (b) A response action plan is not required as a condition 43.5 to receive a grant under section 116J.554, subdivision 1, 43.6 paragraph (c). 43.7 Sec. 13. Minnesota Statutes 2002, section 116J.554, 43.8 subdivision 2, is amended to read: 43.9 Subd. 2. [QUALIFYING SITES.] A site qualifies for a grant 43.10 under this section, if the following criteria are met: 43.11 (1) the site is not scheduled for funding during the 43.12 current or next fiscal year under the Comprehensive 43.13 Environmental Response, Compensation, and Liability Act, United 43.14 States Code, title 42, section 9601, et seq. or under the 43.15 Environmental Response, and Liability Act under sections 115B.01 43.16 to 115B.24; 43.17 (2) the appraised value of the site after adjusting for the 43.18 effect on the value of the presence or possible presence of 43.19 contaminants using accepted appraisal methodology, or the 43.20 current market value of the site as issued under section 43.21 273.121, separately taking into account the effect of the 43.22 contaminants on the market value, (i) is less than 75 percent of 43.23 the estimated project costs for the site or (ii) is less than or 43.24 equal to the estimated cleanup costs for the site and the 43.25 cleanup costs equal or exceed $3 per square foot for the site; 43.26 and 43.27 (3) if the proposed cleanup is completed, it is expected 43.28 that the site will be improved with buildings or other 43.29 improvements and these improvements will provide a substantial 43.30 increase in the property tax base within a reasonable period of 43.31 time or the site will be used for an important publicly owned or 43.32 tax-exempt facility. 43.33 Sec. 14. Minnesota Statutes 2002, section 116J.8731, 43.34 subdivision 1, is amended to read: 43.35 Subdivision 1. [PURPOSE.] The Minnesota investment fund is 43.36 created to provide financial assistance, through partnership 44.1 with communities, for the creation of new employment or to 44.2 maintain existing employment, and for business start-up, 44.3 expansions, and retention. It shall accomplish these goals by 44.4 the following means: 44.5 (1) creation or retention of permanent private-sector jobs 44.6 in order to create above-average economic growth consistent with 44.7 environmental protection, which includes investments in 44.8 technology and equipment that increase productivity and provide 44.9 for a higher wage; 44.10 (2) stimulation or leverage of private investment to ensure 44.11 economic renewal and competitiveness; 44.12 (3) increasing the local tax base, based on demonstrated 44.13 measurable outcomes, to guarantee a diversified industry mix; 44.14 (4) improving the quality of existing jobs, based on 44.15 increases in wages or improvements in the job duties, training, 44.16 or education associated with those jobs; 44.17 (5) improvement of employment and economic opportunity for 44.18 citizens in the region to create a reasonable standard of 44.19 living, consistent with federal and state guidelines on low- to 44.20 moderate-income persons; and 44.21(5)(6) stimulation of productivity growth through improved 44.22 manufacturing or new technologies, including cold weather 44.23 testing. 44.24 Sec. 15. Minnesota Statutes 2002, section 116J.8731, 44.25 subdivision 4, is amended to read: 44.26 Subd. 4. [ELIGIBLE PROJECTS.] Assistance must be evaluated 44.27 on the existence of the following conditions: 44.28 (1) creation of new jobsor, retention of existing jobs, or 44.29 improvements in the quality of existing jobs as measured by the 44.30 wages, skills, or education associated with those jobs; 44.31 (2) increase in the tax base; 44.32 (3) the project can demonstrate that investment of public 44.33 dollars induces private funds; 44.34 (4) the project can demonstrate an excessive public 44.35 infrastructure or improvement cost beyond the means of the 44.36 affected community and private participants in the project; 45.1 (5) the project provides higher wage levels to the 45.2 community or will add value to current workforce skills; 45.3 (6) whether assistance is necessary to retain existing 45.4 business; and 45.5 (7) whether assistance is necessary to attract out-of-state 45.6 business. 45.7 A grant or loan cannot be made based solely on a finding 45.8 that the conditions in clause (6) or (7) exist. A finding must 45.9 be made that a condition in clause (1), (2), (3), (4), or (5) 45.10 also exists. 45.11 Applications recommended for funding shall be submitted to 45.12 the commissioner. 45.13 Sec. 16. Minnesota Statutes 2002, section 116J.8731, 45.14 subdivision 5, is amended to read: 45.15 Subd. 5. [GRANT LIMITS.] A Minnesota investment fund grant 45.16 may not be approved for an amount in excess of 45.17$500,000$1,000,000. This limit covers all money paid to 45.18 complete the same project, whether paid to one or more grant 45.19 recipients and whether paid in one or more fiscal years. The 45.20 portion of a Minnesota investment fund grant that exceeds 45.21 $100,000 must be repaid to the state when it is repaid to the 45.22 local community or recognized Indian tribal government by the 45.23 person or entity to which it was loaned by the local community 45.24 or Indian tribal government. Money repaid to the state must be 45.25 credited to the general fund. A grant or loan may not be made 45.26 to a person or entity for the operation or expansion of a casino 45.27 or a store which is used solely or principally for retail 45.28 sales. Persons or entities receiving grants or loans must pay 45.29 each employee total compensation, including benefits not 45.30 mandated by law, that on an annualized basis is equal to at 45.31 least 110 percent of the federal poverty level for a family of 45.32 four. 45.33 Sec. 17. Minnesota Statutes 2002, section 116J.8731, 45.34 subdivision 7, is amended to read: 45.35 Subd. 7. [CONTRACTUAL OBLIGATION.] A business receiving 45.36 Minnesota investment fund grants must demonstrate why the grant 46.1 is necessary for a project and enter into an agreement with the 46.2 local grantor. The agreement, among other things, must obligate 46.3 the recipient to pay the minimum compensation set by this 46.4 section and meet job creation or job enhancement goals. A 46.5 recipient that breaches the agreement must repay the grant 46.6 directly to the commissioner. Repayments under this subdivision 46.7 must be deposited in the general fund. If the commissioner 46.8 determines, during the repayment period of a Minnesota 46.9 investment fund loan, that the project for which the loan was 46.10 made is in imminent danger of ceasing operations due to 46.11 financial difficulties, the commissioner may elect to delay loan 46.12 payments due on the loan for a period of no more than two 46.13 years. In making a determination about whether a recipient 46.14 qualifies for possible delay in payments, the commissioner must 46.15 consider all available information regarding the health of the 46.16 affected business and the industry in which it operates, the 46.17 potential for displacement of workers in the event that 46.18 operations cease, and the likelihood that a delay of payments 46.19 will provide the business with a reasonable ability to improve 46.20 its financial condition. 46.21 Sec. 18. Minnesota Statutes 2002, section 116J.8764, is 46.22 amended by adding a subdivision to read: 46.23 Subd. 2a. [ENROLLMENT OF LOANS WITHOUT COMMISSIONER'S FULL 46.24 PREMIUM PAYMENT.] The commissioner may continue to accept loans 46.25 for enrollment into the program even if the amount of funds 46.26 contained in the account is zero or an amount less than the full 46.27 amount that is required to be transferred under section 46.28 116J.8765, subdivision 2, paragraph (a), (b), or (c). 46.29 Sec. 19. Minnesota Statutes 2002, section 116J.955, 46.30 subdivision 2, is amended to read: 46.31 Subd. 2. [EXPENDITURE OF ACCOUNT.] The commissioner may 46.32 use the rural rehabilitation account for the purposes that are 46.33 allowed under the Minnesota rural rehabilitation corporation's 46.34 charter and agreementwith, as may be amended or modified by, 46.35 the United States Secretary of Agriculture as provided in Public 46.36 Law Number 499, 81st Congress, enacted May 3, 1950 and as 47.1 allowed under Laws 1987, chapter 386, article 1. Not more than 47.2 three percent of the combined book value of the Minnesota rural 47.3 rehabilitationcorporation's assetsaccount and the regional 47.4 revolving funds may be used for administrative purposes in a 47.5 year without approval of the United States Secretary of 47.6 Agriculture. Any funds used for administrative purposes may 47.7 only be drawn from money remaining in the Minnesota rural 47.8 rehabilitation account. 47.9 Sec. 20. Minnesota Statutes 2002, section 116J.966, 47.10 subdivision 1, is amended to read: 47.11 Subdivision 1. [GENERALLY.] (a) The commissioner shall 47.12 promote, develop, and facilitate trade and foreign investment in 47.13 Minnesota. In furtherance of these goals, and in addition to 47.14 the powers granted by section 116J.035, the commissioner may: 47.15 (1) locate, develop, and promote international markets for 47.16 Minnesota products and services; 47.17 (2) arrange and lead trade missions to countries with 47.18 promising international markets for Minnesota goods, technology, 47.19 services, and agricultural products; 47.20 (3) promote Minnesota products and services at domestic and 47.21 international trade shows; 47.22 (4) organize, promote, and present domestic and 47.23 international trade shows featuring Minnesota products and 47.24 services; 47.25 (5) host trade delegations and assist foreign traders in 47.26 contacting appropriate Minnesota businesses and investments; 47.27 (6) develop contacts with Minnesota businesses and gather 47.28 and provide information to assist them in locating and 47.29 communicating with international trading or joint venture 47.30 counterparts; 47.31 (7) provide information, education, and counseling services 47.32 to Minnesota businesses regarding the economic, commercial, 47.33 legal, and cultural contexts of international trade; 47.34 (8) provide Minnesota businesses with international trade 47.35 leads and information about the availability and sources of 47.36 services relating to international trade, such as export 48.1 financing, licensing, freight forwarding, international 48.2 advertising, translation, and custom brokering; 48.3 (9) locate, attract, and promote foreign direct investment 48.4 and business development in Minnesota to enhance employment 48.5 opportunities in Minnesota; 48.6 (10) provide foreign businesses and investors desiring to 48.7 locate facilities in Minnesota information regarding sources of 48.8 governmental, legal, real estate, financial, and business 48.9 services; 48.10 (11) enter into contracts or other agreements with private 48.11 persons and public entities, including agreements to establish 48.12 and maintain offices and other types of representation in 48.13 foreign countries, to carry out the purposes of promoting 48.14 international trade and attracting investment from foreign 48.15 countries to Minnesota and to carry out this section, without 48.16 regard to section 16C.06; and 48.17 (12) market trade-related materials to businesses and 48.18 organizations, and the proceeds of which must be placed in a 48.19 special revolving account and are appropriated to the 48.20 commissioner to prepare and distribute trade-related materials. 48.21 (b) The commissioner may expend money to carry out this 48.22 section. Promotional expenses include, but are not limited to, 48.23 expenses for the food, lodging, and travel of consultants and 48.24 speakers, and publications and other forms of advertising. 48.25 (c) The programs and activities of the commissioner of 48.26 trade and economic development and the Minnesota trade division 48.27 may not duplicate programs and activities of the commissioner of 48.28 agricultureor the Minnesota world trade center. 48.29(c)(d) The commissioner shall notify the chairs of the 48.30 senate finance and house appropriations committees of each 48.31 agreement under this subdivision to establish and maintain an 48.32 office or other type of representation in a foreign country. 48.33 Sec. 21. Minnesota Statutes 2002, section 116J.994, 48.34 subdivision 4, is amended to read: 48.35 Subd. 4. [WAGE AND JOB GOALS.] The subsidy agreement, in 48.36 addition to any other goals, must include: (1) goals for the 49.1 number of jobs created, which may include separate goals for the 49.2 number of part-time or full-time jobs, or, in cases where job 49.3 loss is specific and demonstrable, goals for the number of jobs 49.4 retained;and(2) wage goals fortheany jobs created or 49.5 retained; and (3) wage goals for any jobs to be enhanced through 49.6 increased wages. After a public hearing, if the creation or 49.7 retention of jobs is determined not to be a goal, the wage and 49.8 job goals may be set at zero. 49.9 In addition to other specific goal time frames, the wage 49.10 and job goals must contain specific goals to be attained within 49.11 two years of the benefit date. 49.12 Sec. 22. Minnesota Statutes 2002, section 116J.995, is 49.13 amended to read: 49.14 116J.995 [ECONOMIC GRANTS.] 49.15 An appropriation rider in an appropriation to the 49.16 department of trade and economic development that specifies that 49.17 the appropriation be granted to a particular business or class 49.18 of businesses must contain a statement of the expected benefits 49.19 associated with the grant. At a minimum, the statement must 49.20 include goals for the number of jobs created or enhanced, wages 49.21 paid, and the tax revenue increases due to the grant. The wage 49.22 and job goals must contain specific goals to be attained within 49.23 two years of the benefit date. The statement must specify the 49.24 recipient's obligation if the recipient does not attain the 49.25 goals. At a minimum, the statement must require a recipient 49.26 failing to meet the job and wage goals to pay back the 49.27 assistance plus interest to the department of trade and economic 49.28 development provided that repayment may be prorated to reflect 49.29 partial fulfillment of goals. The interest rate must be set at 49.30 no less than the implicit price deflator as defined under 49.31 section 116J.994, subdivision 6. The legislature, after a 49.32 public hearing, may extend for up to one year the period for 49.33 meeting the goals provided in the statement. 49.34 Sec. 23. Minnesota Statutes 2002, section 116L.02, is 49.35 amended to read: 49.36 116L.02 [JOB SKILLS PARTNERSHIP PROGRAM.] 50.1 (a) The Minnesota job skills partnership program is created 50.2 to act as a catalyst to bring together employers with specific 50.3 training needs with educational or other nonprofit institutions 50.4 which can design programs to fill those needs. The partnership 50.5 shall work closely with employers to prepare, train and place 50.6 prospective or incumbent workers in identifiable positions as 50.7 well as assisting educational or other nonprofit institutions in 50.8 developing training programs that coincide with current and 50.9 future employer requirements. The partnership shall provide 50.10 grants to educational or other nonprofit institutions for the 50.11 purpose of training workers. A participating business must 50.12 match the grant-in-aid made by the Minnesota job skills 50.13 partnership. The match may be in the form of funding, 50.14 equipment, or faculty. 50.15 (b) The partnership program shall administer the health 50.16 care and human services worker training and retention program 50.17 under sections 116L.10 to 116L.15. 50.18 (c) The partnership program is authorized to use funds to 50.19 pay for training for individuals who have incomes at or below 50.20 200 percent of the federal poverty line. The board may grant 50.21 funds to eligible recipients to pay for board-certified training. 50.22 Eligible recipients of grants may include public, private, or 50.23 nonprofit entities that provide employment services to 50.24 low-income individuals. 50.25 Sec. 24. Minnesota Statutes 2002, section 116L.04, 50.26 subdivision 1, is amended to read: 50.27 Subdivision 1. [PARTNERSHIP PROGRAM.] (a) The partnership 50.28 program may provide grants-in-aid to educational or other 50.29 nonprofit educational institutions using the following 50.30 guidelines: 50.31 (1) the educational or other nonprofit educational 50.32 institution is a provider of training within the state in either 50.33 the public or private sector; 50.34 (2) the program involves skills training that is an area of 50.35 employment need; and 50.36 (3) preference will be given to educational or other 51.1 nonprofit training institutions which serve economically 51.2 disadvantaged people, minorities, or those who are victims of 51.3 economic dislocation and to businesses located in rural areas. 51.4 (b) A single grant to any one institution shall not exceed 51.5 $400,000. Up to 25 percent of a grant may be used for 51.6 preemployment training. 51.7 Sec. 25. Minnesota Statutes 2002, section 116L.04, 51.8 subdivision 1a, is amended to read: 51.9 Subd. 1a. [PATHWAYS PROGRAM.] The pathways program may 51.10 provide grants-in-aid for developing programs which assist in 51.11 the transition of persons from welfare to work and assist 51.12 individuals at or below 200 percent of the federal poverty 51.13 guidelines. The program is to be operated by the board. The 51.14 board shall consult and coordinate with program administrators 51.15 at the department of economic security to design and provide 51.16 services for temporary assistance for needy families recipients. 51.17 Pathways grants-in-aid may be awarded to educational or 51.18 other nonprofit training institutions for education and training 51.19 programs and services supporting education and training programs 51.20 that serve eligible recipients. 51.21 Preference shall be given to projects that: 51.22 (1) provide employment with benefits paid to employees; 51.23 (2) provide employment where there are defined career paths 51.24 for trainees; 51.25 (3) pilot the development of an educational pathway that 51.26 can be used on a continuing basis for transitioning persons from 51.27 welfare to work; and 51.28 (4) demonstrate the active participation of department of 51.29 economic security workforce centers, Minnesota state college and 51.30 university institutions and other educational institutions, and 51.31 local welfare agencies. 51.32 Pathways projects must demonstrate the active involvement 51.33 and financial commitment of private business. Pathways projects 51.34 must be matched with cash or in-kind contributions on at least a 51.35 one-to-one ratio by participating private business. 51.36 A single grant to any one institution shall not exceed 52.1 $400,000. 52.2The board shall annually, by March 31, report to the52.3commissioners of economic security and trade and economic52.4development on pathways programs, including the number of52.5recipients participating in the program, the number of52.6participants placed in employment, the salary and benefits they52.7receive, and the state program costs per participant.52.8 Sec. 26. Minnesota Statutes 2002, section 116L.12, 52.9 subdivision 4, is amended to read: 52.10 Subd. 4. [GRANTS.] Within the limits of available 52.11 appropriations, the board shall make grants not to exceed 52.12 $400,000 each to qualifying consortia to operate local, 52.13 regional, or statewide training and retention programs. Grants 52.14 may be made from TANF funds, general fund appropriations, and 52.15 any other funding sources available to the board, provided the 52.16 requirements of those funding sources are satisfied. Up to 25 52.17 percent of a grant may be used for preemployment training. 52.18 Grant awards must establish specific, measurable outcomes and 52.19 timelines for achieving those outcomes. 52.20 Sec. 27. Minnesota Statutes 2002, section 116L.17, 52.21 subdivision 2, is amended to read: 52.22 Subd. 2. [GRANTS.] The board shall make grants to 52.23 workforce service areas or other eligible organizations to 52.24 provide services to dislocated workers. The board shall 52.25 allocate funds available for the purposes of this section in its 52.26 discretion to respond to large layoffs. The board shall 52.27 regularly allocate funds to provide services to individual 52.28 dislocated workers or small groups. The allocation for this 52.29 purpose must be no less than 35 percent and no more than 50 52.30 percent of theprojectedactual collections, interest and other 52.31 earnings of the workforce development fund during the period for 52.32 which the allocation is made, less any collection costs paid out 52.33 of the fund and any amounts appropriated by the legislature from 52.34 the workforce development fund for programs other than the state 52.35 dislocated worker program. The board shall consider the need 52.36 for services to individual workers and workers in small layoffs 53.1 in comparison to those in large layoffs relative to the needs in 53.2 previous years when making this allocation. The board may, in 53.3 its discretion, allocate funds carried forward from previous 53.4 years under subdivision 9 for large, small, or individual 53.5 layoffs. 53.6 Sec. 28. Minnesota Statutes 2002, section 116L.17, 53.7 subdivision 3, is amended to read: 53.8 Subd. 3. [ALLOCATION OF FUNDS.] The board, in consultation 53.9 with local workforce councils and local elected officials, shall 53.10 develop a method of distributing funds to provide services for 53.11 dislocated workers who are dislocated as a result of small or 53.12 individual layoffs. The board shall consider current requests 53.13 for services and the likelihood of future layoffs when making 53.14 this allocation. The board shall consider factors for 53.15 determining the allocation amounts that include, but are not 53.16 limited to, the previous year's obligations and projected 53.17 layoffs. After the first quarter of the program year, the board 53.18 shall evaluate the obligations by workforce service areas for 53.19 the purpose of reallocating funds to workforce service areas 53.20 with increased demand for services. Periodically throughout the 53.21 program year, the board shall consider making additional 53.22 allocations to the workforce service areas with a demonstrated 53.23 need for increased funding. The board shall make an initial 53.24 determination regarding allocations under this subdivision by 53.25 July 15, 2001, and in subsequent years shall make a 53.26 determination byAprilJune 15. 53.27 Sec. 29. Minnesota Statutes 2002, section 116L.17, 53.28 subdivision 8, is amended to read: 53.29 Subd. 8. [ADMINISTRATIVE COSTS.] No more thanthreefive 53.30 percent of the funds appropriated to the board for the purposes 53.31 of this section may be spent by the board for its administrative 53.32 costs. 53.33 Sec. 30. Minnesota Statutes 2002, section 116L.17, is 53.34 amended by adding a subdivision to read: 53.35 Subd. 9. [RAPID RESPONSE ACTIVITIES.] The commissioner 53.36 shall be responsible for implementing the following rapid 54.1 response activities: 54.2 (1) establishing on-site contact with employer and employee 54.3 representatives within a short period of time after becoming 54.4 aware of a current or projected plant closing or substantial 54.5 layoff in order to: 54.6 (i) provide information on and facilitate access to 54.7 available public programs and services; and 54.8 (ii) provide emergency assistance adapted to the particular 54.9 closure or layoff; 54.10 (2) promoting the formation of a employee-management 54.11 committee by providing: 54.12 (i) immediate assistance in the establishment of the 54.13 employee-management committee; 54.14 (ii) technical advice and information on sources of 54.15 assistance and liaison with other public and private services 54.16 and programs; and 54.17 (iii) assistance in the selection of worker representatives 54.18 in the event no union is present; 54.19 (3) collecting and disseminating information related to 54.20 economic dislocation, including potential closings or layoffs, 54.21 and all available resources with the state for dislocated 54.22 workers; 54.23 (4) providing or obtaining appropriate financial and 54.24 technical advice and liaison with economic development agencies 54.25 and other organizations to assist in efforts to avert 54.26 dislocation; 54.27 (5) disseminating information throughout the state on the 54.28 availability of services and activities carried out by the 54.29 dislocated worker unit; and 54.30 (6) assisting the local community in developing its own 54.31 coordinated response to a plant closing or substantial layoff 54.32 and access to state economic development assistance. 54.33 Sec. 31. Minnesota Statutes 2002, section 116M.14, 54.34 subdivision 4, is amended to read: 54.35 Subd. 4. [LOW-INCOME AREA.] "Low-income area" means 54.36 Minneapolis, St. Paul, and those cities in the metropolitan area 55.1 as defined in section 473.121, subdivision 2, that have an 55.2 average income that is below6080 percent of the median income 55.3 for a four-person family as of the latest report by the United 55.4 States Census Bureau. 55.5 Sec. 32. [NAFTA AND FTAA REVIEW AND REPORT.] 55.6 The commissioner of trade and economic development shall 55.7 analyze and report to the legislature on the negative and 55.8 positive impacts of the North American Free Trade Agreement 55.9 (NAFTA) and its pending expansion to 34 more countries in South 55.10 and Central America under the pending Free Trade Areas of the 55.11 Americas (FTAA). The analysis shall include but not be limited 55.12 to: 55.13 (1) the number of manufacturing jobs in Minnesota lost or 55.14 gained to foreign competition and the sectors expected to 55.15 experience job losses; 55.16 (2) the restrictions on public subsidies for economic 55.17 development, job creation and job training including tax free 55.18 zones, enterprise zones, tourism promotion, bio-research 55.19 promotion; 55.20 (3) the treatment of foreign investors as compared to 55.21 domestic investors; 55.22 (4) subsidies for housing; and 55.23 (5) other trade agreement rules that potentially conflict 55.24 with state or local law-making authority and opportunities to 55.25 promote economic development in Minnesota. 55.26 The commissioner shall report preliminary findings to the 55.27 chairs of the house jobs and economic development and commerce 55.28 committees and the senate jobs and economic development and 55.29 commerce committees by July 15, 2003. The commissioner shall 55.30 make a final report by January 1, 2004, in order to allow the 55.31 Minnesota legislature and governor the option to join with other 55.32 states who are expressing their concerns about potential loss or 55.33 gains of state and local governing authority to the United 55.34 States Trade Representative, who is currently engaged in private 55.35 negotiations in which the state and the governor have no 55.36 representative to protect state and local sovereignty. 56.1 Sec. 33. [REPEALER.] 56.2 Minnesota Statutes 2002, sections 13.598, subdivision 2; 56.3 116J.411, subdivision 3; 116J.415, subdivisions 6, 9, and 10; 56.4 116J.693; 116J.9665; and 116L.03, subdivision 7, are repealed. 56.5 ARTICLE 7 56.6 VAPOR RECOVERY 56.7 Section 1. Minnesota Statutes 2002, section 115C.09, is 56.8 amended by adding a subdivision to read: 56.9 Subd. 3j. [RETAIL LOCATIONS AND TRANSPORT VEHICLES.] (a) 56.10 As used in this subdivision, "retail location" means a facility 56.11 located in the metropolitan area as defined in section 473.121, 56.12 subdivision 2, where gasoline is offered for sale to the general 56.13 public for use in automobiles and trucks. "Transport vehicle" 56.14 means a liquid fuel cargo tank used to deliver gasoline into 56.15 underground storage tanks during 2002 at a retail location. 56.16 (b) Notwithstanding any other provision in this chapter, 56.17 and any rules adopted under this chapter, the board shall 56.18 reimburse 90 percent of an applicant's cost for retrofits of 56.19 retail locations and transport vehicles completed between 56.20 January 1, 2001, and January 1, 2006, to comply with section 56.21 116.49, subdivisions 3 and 4, provided that the board determines 56.22 the costs were incurred and reasonable. The reimbursement may 56.23 not exceed $3,000 per retail location and $3,000 per transport 56.24 vehicle. 56.25 Sec. 2. Minnesota Statutes 2002, section 116.073, 56.26 subdivision 1, is amended to read: 56.27 Subdivision 1. [AUTHORITY TO ISSUE.] (a) Pollution control 56.28 agency staff designated by the commissioner and department of 56.29 natural resources conservation officers may issue citations to a 56.30 person who: 56.31 (1) disposes of solid waste as defined in section 116.06, 56.32 subdivision 22, at a location not authorized by law for the 56.33 disposal of solid waste without permission of the owner of the 56.34 property; 56.35 (2) fails to report or recover discharges as required under 56.36 section 115.061;or57.1 (3) fails to take discharge preventive or preparedness 57.2 measures required under chapter 115E; or 57.3 (4) fails to install or use vapor recovery equipment during 57.4 the transfer of gasoline from a transport delivery vehicle to an 57.5 underground storage tank as required in section 116.49, 57.6 subdivisions 3 and 4. 57.7 (b) In addition, pollution control agency staff designated 57.8 by the commissioner may issue citations to owners and operators 57.9 of facilities dispensing petroleum products who violate sections 57.10 116.46 to 116.50 and Minnesota Rules, chapters 7150 and 7151 and 57.11 parts 7001.4200 to 7001.4300. A citation issued under this 57.12 subdivision must include a requirement that the person cited 57.13 remove and properly dispose of or otherwise manage the waste or 57.14 discharged oil or hazardous substance, reimburse any government 57.15 agency that has disposed of the waste or discharged oil or 57.16 hazardous substance and contaminated debris for the reasonable 57.17 costs of disposal, or correct any storage tank violations. 57.18 (c) Until June 1, 2004, citations for violation of sections 57.19 115E.045 and 116.46 to 116.50 and Minnesota Rules, chapters 7150 57.20 and 7151, may be issued only after the owners and operators have 57.21 had a 90-day period to correct violations stated in writing by 57.22 pollution control agency staff, unless there is a discharge 57.23 associated with the violation or the violation is of Minnesota 57.24 Rules, part 7151.6400, subpart 1, item B, or 7151.6500. 57.25 Sec. 3. Minnesota Statutes 2002, section 116.073, 57.26 subdivision 2, is amended to read: 57.27 Subd. 2. [PENALTY AMOUNT.] The citation must impose the 57.28 following penalty amounts: 57.29 (1) $100 per major appliance, as defined in section 57.30 115A.03, subdivision 17a, up to a maximum of $2,000; 57.31 (2) $25 per waste tire, as defined in section 115A.90, 57.32 subdivision 11, up to a maximum of $2,000; 57.33 (3) $25 per lead acid battery governed by section 115A.915, 57.34 up to a maximum of $2,000; 57.35 (4) $1 per pound of other solid waste or $20 per cubic foot 57.36 up to a maximum of $2,000; 58.1 (5) up to $200 for any amount of waste that escapes from a 58.2 vehicle used for the transportation of solid waste if, after 58.3 receiving actual notice that waste has escaped the vehicle, the 58.4 person or company transporting the waste fails to immediately 58.5 collect the waste; 58.6 (6) $50 per violation of rules adopted under section 58.7 116.49, relating to underground storage tank system design, 58.8 construction, installation, and notification requirements, up to 58.9 a maximum of $2,000; 58.10 (7) $250 per violation of rules adopted under section 58.11 116.49, relating to upgrading of existing underground storage 58.12 tank systems, up to a maximum of $2,000; 58.13 (8) $100 per violation of rules adopted under section 58.14 116.49, relating to underground storage tank system general 58.15 operating requirements, up to a maximum of $2,000; 58.16 (9) $250 per violation of rules adopted under section 58.17 116.49, relating to underground storage tank system release 58.18 detection requirements, up to a maximum of $2,000; 58.19 (10) $50 per violation of rules adopted under section 58.20 116.49, relating to out-of-service underground storage tank 58.21 systems and closure, up to a maximum of $2,000; 58.22 (11) $50 per violation of sections 116.48 to 116.491 58.23 relating to underground storage tank system notification, 58.24 monitoring, environmental protection, and tank installers 58.25 training and certification requirements, up to a maximum of 58.26 $2,000; 58.27 (12) $25 per gallon of oil or hazardous substance 58.28 discharged which is not reported or recovered under section 58.29 115.061, up to a maximum of $2,000; 58.30 (13) $1 per gallon of oil or hazardous substance being 58.31 stored, transported, or otherwise handled without the prevention 58.32 or preparedness measures required under chapter 115E, up to a 58.33 maximum of $2,000;and58.34 (14) $250 per violation of Minnesota Rules, parts 7001.4200 58.35 to 7001.4300 or chapter 7151, related to aboveground storage 58.36 tank systems, up to a maximum of $2,000; and 59.1 (15) $250 per delivery made in violation of section 116.49, 59.2 subdivision 3 or 4, levied against: 59.3 (i) the retail location if vapor recovery equipment is not 59.4 installed or maintained properly; 59.5 (ii) the carrier if the transport delivery vehicle is not 59.6 equipped with vapor recovery equipment; or 59.7 (iii) the driver for failure to use supplied vapor recovery 59.8 equipment. 59.9 Sec. 4. Minnesota Statutes 2002, section 116.46, is 59.10 amended by adding a subdivision to read: 59.11 Subd. 7a. [RETAIL LOCATION.] "Retail location" means a 59.12 facility located in the metropolitan area as defined in section 59.13 473.121, subdivision 2, where gasoline is offered for sale to 59.14 the general public for use in automobiles and trucks. 59.15 Sec. 5. Minnesota Statutes 2002, section 116.46, is 59.16 amended by adding a subdivision to read: 59.17 Subd. 7b. [TRANSPORT DELIVERY VEHICLE.] "Transport 59.18 delivery vehicle" means a liquid fuel cargo tank used to deliver 59.19 gasoline into underground storage tanks. 59.20 Sec. 6. Minnesota Statutes 2002, section 116.46, is 59.21 amended by adding a subdivision to read: 59.22 Subd. 9. [VAPOR RECOVERY SYSTEM.] "Vapor recovery system" 59.23 means a system which transfers vapors from underground storage 59.24 tanks during the filling operation to the storage compartment of 59.25 the transport vehicle delivering gasoline. 59.26 Sec. 7. Minnesota Statutes 2002, section 116.49, is 59.27 amended by adding a subdivision to read: 59.28 Subd. 3. [VAPOR RECOVERY SYSTEM.] Every underground 59.29 gasoline storage tank at a retail location must be fitted with 59.30 vapor recovery equipment by January 1, 2006. The equipment must 59.31 be certified by the manufacturer as capable of collecting 95 59.32 percent of hydrocarbons emitted during gasoline transfers from a 59.33 transport delivery vehicle to an underground storage tank. 59.34 Product delivery and vapor recovery access points must be on the 59.35 same side of the transport vehicle when the transport vehicle is 59.36 positioned for delivery into the underground tank. After 60.1 January 1, 2006, no gasoline may be delivered to a retail 60.2 location that is not equipped with a vapor recovery system. 60.3 Sec. 8. Minnesota Statutes 2002, section 116.49, is 60.4 amended by adding a subdivision to read: 60.5 Subd. 4. [VAPOR RECOVERY ON TRANSPORTS.] All transport 60.6 delivery vehicles that deliver gasoline into underground storage 60.7 tanks in the metropolitan area as defined in section 473.121, 60.8 subdivision 2, must be fitted with vapor recovery equipment. 60.9 The equipment must recover and manage 95 percent of hydrocarbons 60.10 emitted during the transfer of gasoline from the underground 60.11 storage tank and the transport delivery vehicle by January 1, 60.12 2006. After January 1, 2006, no gasoline may be delivered to a 60.13 retail location by a transport vehicle that is not fitted with 60.14 vapor recovery equipment. 60.15 Sec. 9. Minnesota Statutes 2002, section 116.50, is 60.16 amended to read: 60.17 116.50 [PREEMPTION.] 60.18 Sections 116.46 to 116.49 preempt conflicting local and 60.19 municipal rules or ordinances requiring notification or 60.20 establishing environmental protection requirements for 60.21 underground storage tanks. A state agency or local unit of 60.22 government may not adopt rules or ordinances establishing or 60.23 requiring vapor recovery for underground storage tanks. 60.24 ARTICLE 8 60.25 MISCELLANEOUS 60.26 Section 1. Minnesota Statutes 2002, section 13.462, 60.27 subdivision 2, is amended to read: 60.28 Subd. 2. [PUBLIC DATA.] The names and addresses of 60.29 applicants for and recipients of benefits, aid, or assistance 60.30 through programs administered by any political subdivision, 60.31 state agency, or statewide system that are intended to assist 60.32 with the purchaseof, rehabilitation, or other purposes related 60.33 to housing or other real property are classified as public data 60.34 on individuals. If an applicant or recipient is a corporation, 60.35 the names and addresses of the officers of the corporation are 60.36 public data on individuals. If an applicant or recipient is a 61.1 partnership, the names and addresses of the partners are public 61.2 data on individuals. The amount or value of benefits, aid, or 61.3 assistance received is public data. 61.4 Sec. 2. Minnesota Statutes 2002, section 16B.35, 61.5 subdivision 1, is amended to read: 61.6 Subdivision 1. [PERCENT OF APPROPRIATIONS FOR ART.] An 61.7 appropriation for the construction or alteration of any state 61.8 building may contain an amount not to exceed the lesser of 61.9 $100,000 or one percent of the total appropriation for the 61.10 building for the acquisition of works of art, excluding 61.11 landscaping, which may be an integral part of the building or 61.12 its grounds, attached to the building or grounds or capable of 61.13 being displayed in other state buildings. Money used for this 61.14 purpose is available only for the acquisition of works of art to 61.15 be exhibited in areas of a building or its grounds accessible, 61.16 on a regular basis, to members of the public. No more than ten 61.17 percent of the total amount available each fiscal year under 61.18 this subdivision may be used for administrative expenses, either 61.19 by the commissioner of administration or by any other entity to 61.20 whom the commissioner delegates administrative authority. For 61.21 the purposes of this section "state building" means a building 61.22 the construction or alteration of which is paid for wholly or in 61.23 part by the state. 61.24 Sec. 3. Minnesota Statutes 2002, section 43A.24, 61.25 subdivision 2, is amended to read: 61.26 Subd. 2. [OTHER ELIGIBLE PERSONS.] The following persons 61.27 are eligible for state paid life insurance and hospital, 61.28 medical, and dental benefits as determined in applicable 61.29 collective bargaining agreements or by the commissioner or by 61.30 plans pursuant to section 43A.18, subdivision 6, or by the board 61.31 of regents for employees of the University of Minnesota not 61.32 covered by collective bargaining agreements. Coverages made 61.33 available, including optional coverages, are as contained in the 61.34 plan established pursuant to section 43A.18, subdivision 2: 61.35 (a) a member of the state legislature, provided that 61.36 changes in benefits resulting in increased costs to the state 62.1 shall not be effective until expiration of the term of the 62.2 members of the existing house of representatives. An eligible 62.3 member of the state legislature may decline to be enrolled for 62.4 state paid coverages by filing a written waiver with the 62.5 commissioner. The waiver shall not prohibit the member from 62.6 enrolling the member or dependents for optional coverages, 62.7 without cost to the state, as provided for in section 43A.26. A 62.8 member of the state legislature who returns from a leave of 62.9 absence to a position previously occupied in the civil service 62.10 shall be eligible to receive the life insurance and hospital, 62.11 medical, and dental benefits to which the position is entitled; 62.12 (b) an employee of the legislature or an employee of a 62.13 permanent study or interim committee or commission or a state 62.14 employee on leave of absence to work for the legislature, during 62.15 a regular or special legislative session, as determined by the 62.16 legislative coordinating commission; 62.17 (c) a judge of the appellate courts or an officer or 62.18 employee of these courts; a judge of the district court, a judge 62.19 of county court, or a judge of county municipal court; a 62.20 district court referee, judicial officer, court reporter, or law 62.21 clerk; a district administrator; an employee of the office of 62.22 the district administrator that is not in the second or fourth 62.23 judicial district; a court administrator or employee of the 62.24 court administrator in a judicial district under section 62.25 480.181, subdivision 1, paragraph (b), and a guardian ad litem 62.26 program employee; 62.27 (d) a salaried employee of the public employees retirement 62.28 association; 62.29 (e) a full-time military or civilian officer or employee in 62.30 the unclassified service of the department of military affairs 62.31 whose salary is paid from state funds; 62.32 (f) a salaried employee of the Minnesota historical 62.33 society, whether paid from state funds or otherwise, who is not 62.34 a member of the governing board; 62.35 (g) an employee of the regents of the University of 62.36 Minnesota; 63.1 (h) notwithstanding section 43A.27, subdivision 3, an 63.2 employee of the state of Minnesota or the regents of the 63.3 University of Minnesota who is at least 60 and not yet 65 years 63.4 of age on July 1, 1982, who is otherwise eligible for employee 63.5 and dependent insurance and benefits pursuant to section 43A.18 63.6 or other law, who has at least 20 years of service and retires, 63.7 earlier than required, within 60 days of March 23, 1982; or an 63.8 employee who is at least 60 and not yet 65 years of age on July 63.9 1, 1982, who has at least 20 years of state service and retires, 63.10 earlier than required, from employment at Rochester state 63.11 hospital after July 1, 1981; or an employee who is at least 55 63.12 and not yet 65 years of age on July 1, 1982, and is covered by 63.13 the Minnesota state retirement system correctional employee 63.14 retirement plan or the state patrol retirement fund, who has at 63.15 least 20 years of state service and retires, earlier than 63.16 required, within 60 days of March 23, 1982. For purposes of 63.17 this clause, a person retires when the person terminates active 63.18 employment in state or University of Minnesota service and 63.19 applies for a retirement annuity. Eligibility shall cease when 63.20 the retired employee attains the age of 65, or when the employee 63.21 chooses not to receive the annuity that the employee has applied 63.22 for. The retired employee shall be eligible for coverages to 63.23 which the employee was entitled at the time of retirement, 63.24 subject to any changes in coverage through collective bargaining 63.25 or plans established pursuant to section 43A.18, for employees 63.26 in positions equivalent to that from which retired, provided 63.27 that the retired employee shall not be eligible for state-paid 63.28 life insurance. Coverages shall be coordinated with relevant 63.29 health insurance benefits provided through the federally 63.30 sponsored Medicare program; 63.31 (i) an employee of an agency of the state of Minnesota 63.32 identified through the process provided in this paragraph who is 63.33 eligible to retire prior to age 65. The commissioner and the 63.34 exclusive representative of state employees shall enter into 63.35 agreements under section 179A.22 to identify employees whose 63.36 positions are in programs that are being permanently eliminated 64.1 or reduced due to federal or state policies or practices. 64.2 Failure to reach agreement identifying these employees is not 64.3 subject to impasse procedures provided in chapter 179A. The 64.4 commissioner must prepare a plan identifying eligible employees 64.5 not covered by a collective bargaining agreement in accordance 64.6 with the process outlined in section 43A.18, subdivisions 2 and 64.7 3. For purposes of this paragraph, a person retires when the 64.8 person terminates active employment in state service and applies 64.9 for a retirement annuity. Eligibility ends as provided in the 64.10 agreement or plan, but must cease at the end of the month in 64.11 which the retired employee chooses not to receive an annuity, or 64.12 the employee is eligible for employer-paid health insurance from 64.13 a new employer. The retired employees shall be eligible for 64.14 coverages to which they were entitled at the time of retirement, 64.15 subject to any changes in coverage through collective bargaining 64.16 or plans established under section 43A.18 for employees in 64.17 positions equivalent to that from which they retired, provided 64.18 that the retired employees shall not be eligible for state-paid 64.19 life insurance; 64.20 (j) employees of the state board of public defense, with 64.21 eligibility determined by the state board of public defense in 64.22 consultation with the commissioner of employee relations;and64.23 (k) employees of the health data institute under section 64.24 62J.451, subdivision 12, as paid for by the health data 64.25 institute; 64.26 (l) employees of supporting organizations of Minnesota 64.27 Technology, Inc., established after July 1, 2003, under section 64.28 116O.05, subdivision 4, as paid for by the supporting 64.29 organization; and 64.30 (m) employees of Minnesota Project Innovation, as paid for 64.31 by Minnesota Project Innovation. 64.32 Sec. 4. Minnesota Statutes 2002, section 116O.03, 64.33 subdivision 2, is amended to read: 64.34 Subd. 2. [BOARD OF DIRECTORS.] The corporation is governed 64.35 by a board of15directors. The selection, membership terms, 64.36 compensation, removal, and filling of vacancies ofpublic65.1 members of the board are as provided insection 15.0575the 65.2 corporation's bylaws.Membership of the board consists of the65.3following:65.4(1) a person from the private sector, appointed by the65.5governor, who shall act as chair and serve as chief science65.6advisor to the governor and the legislature;65.7(2) the dean of the institute of technology of the65.8University of Minnesota;65.9(3) the dean of the graduate school of the University of65.10Minnesota;65.11(4) the commissioner of the department of trade and65.12economic development;65.13(5) the commissioner of administration;65.14(6) six members appointed by the governor, at least one of65.15whom must be a person from a public post-secondary system other65.16than the University of Minnesota; and65.17(7) one member who is not a member of the legislature65.18appointed by each of the following: the speaker of the house of65.19representatives, the house of representatives minority leader,65.20the senate majority leader, and the senate minority leader.65.21At least 50 percent of the members described in clauses (6)65.22and (7) must live outside the metropolitan area as defined in65.23section 473.121, subdivision 2, and must have experience in65.24manufacturing, the technology industry, or research and65.25development.65.26 Sec. 5. Minnesota Statutes 2002, section 116O.091, 65.27 subdivision 7, is amended to read: 65.28 Subd. 7. [ADVISORY COMMITTEES.] An advisory committee is 65.29 created to assist in selecting vendors and evaluating the 65.30 corporation's project outreach activities. The advisory 65.31 committee shall include the president of the University of 65.32 Minnesota or the president's designee, the commissioner of trade 65.33 and economic development or the commissioner's designee, the 65.34 chair of the Minnesota Technology, Inc., board of directors or 65.35 the chair's designee, a member of the state senate appointed by 65.36 the subcommittee on committees of the senate rules and 66.1 administration committee, a member of the house of 66.2 representatives appointed by the speaker, and at least five 66.3 users of project outreach services appointed by the named 66.4 members. The advisory committee expires June 30, 2004. 66.5 Sec. 6. Minnesota Statutes 2002, section 116O.12, is 66.6 amended to read: 66.7 116O.12 [MINNESOTA TECHNOLOGY ACCOUNT.] 66.8(a)The Minnesota technology account is in the special 66.9 revenue fund. Money in the account not needed for the immediate 66.10 purposes of the corporation may be invested by the state board 66.11 of investment in any way authorized by section 11A.24. Money in 66.12 the account is appropriated to the corporation to be used as 66.13 provided in this chapter. 66.14(b) The account consists of:66.15(1) money appropriated and transferred from other state66.16funds;66.17(2) fees and charges collected by the corporation;66.18(3) income from investments and purchases;66.19(4) revenue from loans, rentals, royalties, dividends, and66.20other proceeds collected in connection with lawful corporate66.21purposes;66.22(5) gifts, donations, and bequests made to the corporation;66.23and66.24(6) other income credited to the account by law.66.25 Sec. 7. Minnesota Statutes 2002, section 154.18, is 66.26 amended to read: 66.27 154.18 [FEES.] 66.28 (a) The fees collected, as required in this chapter, 66.29 chapter 214, and the rules of the board, shall be paid in 66.30 advance to the executive secretary of the board. The executive 66.31 secretary shall deposit the fees in the state treasury, to be 66.32 disbursed by the executive secretary on the order of the chair 66.33 in payment of expenses lawfully incurred by the board. 66.34 (b) The board shall charge the following fees: 66.35 (1) examination and certificate, registered barber, $65; 66.36 (2) examination and certificate, apprentice, $60; 67.1 (3) examination, instructor, $160; 67.2 (4) certificate, instructor, $45; 67.3 (5) temporary teacher or apprentice permit, $50; 67.4 (6) renewal of license, registered barber, $50; 67.5 (7) renewal of license, apprentice, $45; 67.6 (8) renewal of license, instructor, $60; 67.7 (9) renewal of temporary teacher permit, $35; 67.8 (10) student permit, $25; 67.9 (11) initial shop registration, $60; 67.10 (12) initial school registration, $1,010; 67.11 (13) renewal shop registration, $60; 67.12 (14) renewal school registration, $260; 67.13 (15) restoration of registered barber license, $75; 67.14 (16) restoration of apprentice license, $70; 67.15 (17) restoration of shop registration, $85; 67.16 (18) change of ownership or location, $35; 67.17 (19) duplicate license, $20; and 67.18 (20) home study course, $75. 67.19 Sec. 8. Minnesota Statutes 2002, section 216A.03, 67.20 subdivision 1, is amended to read: 67.21 Subdivision 1. [MEMBERS.] The public utilities commission 67.22 shall consist of five members. The terms of members shall be 67.23 six years and until their successors have been appointed and 67.24 qualified. Each commissioner shall be appointed by the governor 67.25 by and with the advice and consent of the senate. Not more than 67.26 three commissioners shall belong to the same political party. 67.27 At leastone commissionertwo commissioners musthave beenbe 67.28 domiciled at the time of appointment outside the seven-county 67.29 metropolitan area. Of these two commissioners, at least one 67.30 must be domiciled outside a city of the first or second class, 67.31 as defined in section 410.01, at the time of initial 67.32 appointment. If the membership of the commission afterJuly 31,67.331986August 1, 2003, does not consist of at leastone membertwo 67.34 members domiciled at the time of appointment outside the 67.35 seven-county metropolitan area, the membership shall conform to 67.36 this requirement following normal attrition of the present 68.1 commissioners. The governor when selecting commissioners shall 68.2 give consideration to persons learned in the law or persons who 68.3 have engaged in the profession of engineering, public 68.4 accounting, property and utility valuation, finance, physical or 68.5 natural sciences, production agriculture, or natural resources 68.6 as well as being representative of the general public. 68.7 For purposes of this subdivision, "seven-county 68.8 metropolitan area" means Anoka, Carver, Dakota, Hennepin, 68.9 Ramsey, Scott, and Washington counties. 68.10 Sec. 9. Minnesota Statutes 2002, section 326.105, is 68.11 amended to read: 68.12 326.105 [FEES.] 68.13 The fee for licensure or renewal of licensure as an 68.14 architect, professional engineer, land surveyor, landscape 68.15 architect, or geoscience professional is$120$132 per biennium. 68.16 The fee for certification as a certified interior designer or 68.17 for renewal of the certificate is$120$132 per biennium. The 68.18 fee for an architect applying for original certification as a 68.19 certified interior designer is $50 per biennium. The initial 68.20 license or certification fee for all professions is$120$132. 68.21 The renewal fee shall be paid biennially on or before June 30 of 68.22 each even-numbered year. The renewal fee, when paid by mail, is 68.23 not timely paid unless it is postmarked on or before June 30 of 68.24 each even-numbered year. The application fee is $25 for 68.25 in-training applicants and $75 for professional license 68.26 applicants. 68.27 The fee for monitoring licensing examinations for 68.28 applicants is $25, payable by the applicant. 68.29 Sec. 10. Minnesota Statutes 2002, section 461.12, 68.30 subdivision 2, is amended to read: 68.31 Subd. 2. [ADMINISTRATIVE PENALTIES; LICENSEES.] (a) If a 68.32 licensee or employee of a licensee sells tobacco to a person 68.33 under the age of 18 years, or violates any other provision of 68.34 this chapter, the licensee shall be charged an administrative 68.35 penalty of$75up to $500. An administrative penalty of$200up 68.36 to a maximum of $1,000 must be imposed for a second violation at 69.1 the same location within 24 months after the initial violation. 69.2 An administrative penalty of up to a maximum of $5,000 may be 69.3 imposed for a third violation at the same location within 24 69.4 months after the initial violation. For athirdsubsequent 69.5 violation at the same location within 24 months after the 69.6 initial violation, both of the following may be imposed: 69.7 (1) an administrative penalty of$250 must be imposed,69.8andup to $5,000; and 69.9 (2) the licensee's authority to sell tobacco at that 69.10 locationmustmay be suspended fornot less thanup to a maximum 69.11 of seven days. 69.12 (b) The licensing authority may suspend or revoke a tobacco 69.13 license if the licensee fails to act on any of the following: 69.14 (1) imposition of disciplinary sanctions of an employee 69.15 with multiple noncompliant sales to a minor; 69.16 (2) failure to effectively train or retrain any employee on 69.17 applicable laws and how to prevent sales of tobacco to minors; 69.18 or 69.19 (3) failure to adopt and enforce a written employee policy 69.20 to prevent the sale of tobacco to minors. 69.21 (c) No suspension or penalty may take effect until the 69.22 licensee has received notice, served personally or by mail, of 69.23 the alleged violation and an opportunity for a hearing before a 69.24 person authorized by the licensing authority to conduct the 69.25 hearing. 69.26 (d) In determining the amount of a penalty and the length 69.27 of a license suspension, the local licensing authority shall 69.28 take into consideration as mitigating circumstances evidence 69.29 provided by a licensee of a licensee's adoption and enforcement 69.30 of a written employee policy to prevent the sale of tobacco to 69.31 minors, a licensee's training program to instruct employees on 69.32 applicable laws and how to prevent sales of tobacco to minors, a 69.33 licensee's adoption and imposition of disciplinary sanctions for 69.34 employee noncompliance with the licensee's policies, a 69.35 licensee's policy of conducting voluntary internal compliance 69.36 checks to test compliance with section 609.685, and whether a 70.1 licensee or a licensee's employee verified the age of the 70.2 customer during the transaction in question and reasonably 70.3 relied on the age verification to complete the sale. A decision 70.4 that a violation has occurred must be in writing and must 70.5 include a summary of the mitigating circumstances considered by 70.6 the local licensing authority in assessing a penalty or a 70.7 license suspension. 70.8 Sec. 11. Minnesota Statutes 2002, section 461.19, is 70.9 amended to read: 70.10 461.19 [EFFECT ON LOCAL ORDINANCE; NOTICE.] 70.11 Sections 461.12 to 461.18 do not preempt a local ordinance 70.12 that provides for more restrictive regulation of tobacco sales, 70.13 except that on and after the effective date of this act, a 70.14 licensing authority shall not assess or impose a penalty on a 70.15 licensee or an employee of a licensee that is greater than the 70.16 administrative penalties set forth in section 461.12, 70.17 subdivisions 2 and 3. A governing body shall give notice of its 70.18 intention to consider adoption or substantial amendment of any 70.19 local ordinance required under section 461.12 or permitted under 70.20 this section. The governing body shall take reasonable steps to 70.21 send notice by mail at least 30 days prior to the meeting to the 70.22 last known address of each licensee or person required to hold a 70.23 license under section 461.12. The notice shall state the time, 70.24 place, and date of the meeting and the subject matter of the 70.25 proposed ordinance. 70.26 Sec. 12. Minnesota Statutes 2002, section 624.20, 70.27 subdivision 1, is amended to read: 70.28 Subdivision 1. (a) As used in sections 624.20 to 624.25, 70.29 the term "fireworks" means any substance or combination of 70.30 substances or article prepared for the purpose of producing a 70.31 visible or an audible effect by combustion, explosion, 70.32 deflagration, or detonation, and includes blank cartridges, toy 70.33 cannons, and toy canes in which explosives are used, the type of 70.34 balloons which require fire underneath to propel them, 70.35 firecrackers, torpedoes, skyrockets, Roman candles, daygo bombs, 70.36 sparklers other than those specified in paragraph (c), or other 71.1 fireworks of like construction, and any fireworks containing any 71.2 explosive or inflammable compound, or any tablets or other 71.3 device containing any explosive substance and commonly used as 71.4 fireworks. 71.5 (b) The term "fireworks" shall not include toy pistols, toy 71.6 guns, in which paper caps containing 25/100 grains or less of 71.7 explosive compound are used and toy pistol caps which contain 71.8 less than 20/100 grains of explosive mixture. 71.9 (c) The term also does not include wire or wood sparklers 71.10 of not more than 100 grams of mixture per item, other sparkling 71.11 items which are nonexplosive and nonaerial and contain 75 grams 71.12 or less of chemical mixture per tube or a total of 200 grams or 71.13 less for multiple tubes, snakes and glow worms, smoke devices, 71.14 or trick noisemakers which include paper streamers, party 71.15 poppers, string poppers, snappers, and drop pops, each 71.16 consisting of not more than twenty-five hundredths grains of 71.17 explosive mixture. The use of items listed in this paragraph is 71.18 not permitted on public property. This paragraph does not 71.19 authorize the purchase of items listed in it by persons younger 71.20 than 18 years of age. The age of a purchaser of items listed in 71.21 this paragraph must be verified by photographic identification. 71.22 (d) A local unit of government may impose an annual license 71.23 fee for the retail sale of items authorized under paragraph 71.24 (c). The annual license fee of each retail seller that is in 71.25 the business of selling only the items authorized under 71.26 paragraph (c) may not exceed $350, and the annual license of 71.27 each other retail seller may not exceed $100. A local unit of 71.28 government may not: 71.29 (1) impose any fee or charge, other than the fee authorized 71.30 by this paragraph, on the retail sale of items authorized under 71.31 paragraph (c); 71.32 (2) prohibit or restrict the display of items for retail 71.33 sale authorized under paragraph (c); or 71.34 (3) impose on a retail seller any financial guarantee 71.35 requirements, including bonding or insurance provisions, 71.36 containing restrictions or conditions not imposed on the same 72.1 basis on all other business licensees. 72.2 [EFFECTIVE DATE.] This section is effective the day 72.3 following final enactment. 72.4 Sec. 13. [UTILITY REGULATORY REVIEW; RURAL CONCERNS.] 72.5 (a) The chair of the public utilities commission and the 72.6 commissioner of commerce shall jointly review the organizational 72.7 structure and regulatory procedures by which energy and 72.8 telecommunications service providers are regulated by the state. 72.9 By January 15, 2004, the chair and the commissioner shall issue 72.10 a report on that review to the chairs of the house and senate 72.11 committees with jurisdiction over utility regulation, and shall 72.12 include recommendations for executive and legislative action to 72.13 ensure the state has the most representative, cost-effective, 72.14 and efficient utility regulatory system possible. 72.15 (b) A primary focus of this review must be to consider and 72.16 make recommendations for actions that could be taken to ensure 72.17 the utility regulatory structure and process takes into account 72.18 the issues and concerns of rural and center city service 72.19 providers, residents, and businesses. Items for consideration 72.20 must include: 72.21 (1) requiring the commission to hold hearings in rural 72.22 Minnesota, both on a regular basis and when an issue of special 72.23 concern to rural Minnesota is before the commission; and 72.24 (2) the establishment of a screening process for applicants 72.25 for the public utilities commission to demonstrate their 72.26 understanding and experience with regard to rural and center 72.27 city utility service issues. 72.28 Sec. 14. [REPEALER.] 72.29 (a) Minnesota Statutes, section 155A.03, subdivisions 14 72.30 and 15; and 155A.07, subdivision 9, are repealed. 72.31 (b) Minnesota Rules, part 2100.9300, subpart 1, is repealed. 72.32 Sec. 15. [EFFECTIVE DATE.] 72.33 (a) Sections 10 and 11 are effective the day following 72.34 final enactment and apply to administrative penalties imposed on 72.35 or after that date. 72.36 (b) Sections 7, 13, and 14 are effective July 1, 2003. 73.1 (c) Section 8 is effective June 30, 2004.