Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                             CHAPTER 2-H.F.No. 273 
                  An act relating to legislation; correcting erroneous, 
                  ambiguous, and omitted text and obsolete references; 
                  eliminating certain redundant, conflicting, and 
                  superseded provisions; making miscellaneous technical 
                  corrections to statutes and other laws; amending 
                  Minnesota Statutes 2002, sections 3.85, subdivision 6; 
                  4A.02; 12.37; 13.3806, subdivision 4; 13.383, by 
                  adding a subdivision; 13.4963, subdivision 2; 13.4967, 
                  by adding a subdivision; 13.585, subdivision 2; 
                  13.6905, by adding a subdivision; 13.7191, subdivision 
                  6; 13.871, subdivisions 5, 6; 14.03, subdivision 2; 
                  14.388; 37.03, subdivision 1; 40A.121; 50.14, 
                  subdivision 12; 60K.39, subdivision 1; 62A.27; 62Q.71; 
                  69.021, subdivision 5; 69.041; 79.251, subdivision 1; 
                  79A.02, subdivision 1; 85.015, subdivisions 4, 10; 
                  85.20, subdivision 6; 103B.321, subdivision 1; 
                  103G.245, subdivision 5; 116J.556; 144A.4605, 
                  subdivision 4; 144E.41; 147A.01, subdivisions 18, 22; 
                  147A.24, subdivision 2; 168.013, subdivision 1e; 
                  168.61, subdivision 1; 211A.13; 221.021, subdivision 
                  1; 221.0251, subdivision 1; 221.60, subdivision 1; 
                  221.601, subdivision 1; 221.602, subdivisions 1, 2, 3; 
                  222.63, subdivisions 1, 6; 222.86, subdivisions 1, 3; 
                  237.075, subdivision 8; 244.13, subdivision 1; 
                  256B.501, subdivision 11; 260B.163, subdivision 4; 
                  260C.007, subdivision 5; 260C.175, subdivision 1; 
                  270.67, subdivision 2; 270B.03, subdivision 6; 272.67, 
                  subdivision 1; 273.1106; 276A.09; 290.0802, 
                  subdivision 2; 290.9727, subdivision 3; 290.9728, 
                  subdivision 2; 290.9729, subdivision 2; 297A.70, 
                  subdivision 7; 299F.40, subdivision 1; 317A.443, 
                  subdivision 2; 322B.960, subdivision 4; 325E.26, 
                  subdivision 4; 325G.34, subdivision 4; 327C.07, 
                  subdivision 7; 354A.31, subdivisions 6, 7; 356.46, 
                  subdivision 1; 356.62; 365.46, subdivision 2; 379.05; 
                  398A.04, subdivision 4; 412.021, subdivision 1; 
                  412.091; 414.09, subdivision 3; 465.81, subdivisions 
                  1, 2; 465.82, subdivisions 1, 2; 465.84; 469.057, 
                  subdivisions 1, 2; 473.129, subdivision 5; 473F.13, 
                  subdivision 1; 473H.14; 487.17; 487.24; 488A.01, 
                  subdivision 5; 488A.03, subdivisions 11, 13; 488A.06, 
                  subdivisions 2, 3; 488A.11; 488A.18, subdivision 6; 
                  488A.28; 491A.01, subdivision 4; 515B.3-116; 557.09; 
                  572A.015, subdivision 2; 572A.02, subdivision 6; 
                  572A.03, subdivision 5; 609.33, subdivision 6; 
                  609.5317, subdivisions 1, 3; Laws 1997, chapter 203, 
                  article 9, section 21, as amended; repealing Minnesota 
                  Statutes 2002, sections 2.043; 2.053; 2.063; 2.073; 
                  2.083; 2.093; 2.103; 2.113; 2.123; 2.133; 2.143; 
                  2.153; 2.163; 2.173; 2.183; 2.193; 2.203; 2.213; 
                  2.223; 2.233; 2.243; 2.253; 2.263; 2.273; 2.283; 
                  2.293; 2.303; 2.313; 2.323; 2.333; 2.343; 2.353; 
                  2.363; 2.373; 2.383; 2.393; 2.403; 2.413; 2.423; 
                  2.433; 2.443; 2.453; 2.463; 2.473; 2.483; 2.493; 
                  2.503; 2.513; 2.523; 2.533; 2.543; 2.553; 2.563; 
                  2.573; 2.583; 2.593; 2.603; 2.613; 2.623; 2.633; 
                  2.643; 2.653; 2.663; 2.673; 2.683; 2.693; 2.703; 
                  2.742; 2.752; 2.762; 2.772; 2.782; 2;792; 2.802; 
                  2.812; 221.121, subdivision 6g; 221.153, subdivision 
                  3; 356.58; 572A.015, subdivision 1; 609.668, 
                  subdivision 7; Laws 1997, chapter 233, article 1, 
                  section 12; Laws 2000, chapter 395, section 13, 
                  subdivision 3; Laws 2001, chapter 195, article 2, 
                  section 35; Laws 2002, chapter 223, section 25, 
                  subdivision 3; Laws 2002, chapter 243, section 2; Laws 
                  2002, chapter 374, article 8, section 2; Laws 2002, 
                  chapter 380, article 4, section 1; Laws 2002, chapter 
                  392, article 12, section 1; Minnesota Rules, parts 
                  2200.0100; 2200.0200; 2200.0300; 2200.0400; 2200.0500; 
                  2200.0600; 2200.0700; 2200.0800; 2200.0900; 2200.1000; 
                  2200.1100; 2200.1200; 2200.1300; 2200.1400; 2200.1500; 
                  2200.1600; 2200.1700; 2200.1800; 2200.1900; 2200.2000; 
                  2200.2100; 2200.3100; 2200.3200; 2200.3300; 2200.3410; 
                  2200.3500; 2200.3600; 2200.3700; 2200.3800; 2200.3900; 
                  2200.4000; 2200.4100; 2200.4200; 2200.4300; 2200.4400; 
                  2200.5000; 2200.5100; 2200.5200; 2200.5300; 2200.5310; 
                  2200.5400; 2200.5500; 2200.6000; 2200.6100; 2200.6200; 
                  2200.6300; 2200.6400; 2200.6500; 2200.6600; 2200.6700; 
                  2200.6800; 2200.6900; 2200.7000; 2200.7100; 2200.7200; 
                  2200.7300; 2200.7400; 2200.7500; 2200.7600; 2200.7700; 
                  2200.7800; 2200.7900; 2200.8000; 2200.8100; 2200.8200; 
                  2200.8300; 2200.8400; 2200.8500; 2200.9000; 2200.9100; 
                  2200.9200; 2200.9300; 2200.9400; 2200.9500; 2200.9600; 
                  2200.9700; 2200.9800; 2205.0100; 2205.0200; 2205.0300; 
                  2205.0400; 2205.0500; 2205.0600; 2205.0700; 2205.0800; 
                  2205.0900; 2205.1000; 2205.1100; 2205.1200; 2205.1300; 
                  2205.1400; 2205.1500; 4830.6000; 4830.6100; 4830.6200; 
                  4830.6300; 4830.6400; 6100.6000. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1
                                    GENERAL
           Section 1.  Minnesota Statutes 2002, section 3.85, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ASSISTANCE OF OTHER AGENCIES.] The commission 
        may request information from any state officer or agency or 
        public pension fund or plan as defined in section 
        356.615 356.63, paragraph (b), including a volunteer 
        firefighters' relief association to which sections 69.771 to 
        69.776 apply, to assist it to carry out the terms of this 
        section.  The officer, agency, or public pension fund or plan 
        shall promptly furnish any data requested. 
           Sec. 2.  Minnesota Statutes 2002, section 12.37, is amended 
        to read: 
           12.37 [POLITICAL SUBDIVISION'S POWERS TO FAST PROVIDE 
        EMERGENCY AID.] 
           (a) During an emergency or disaster, each political 
        subdivision, notwithstanding any statutory or charter provision 
        to the contrary, and through its governing body acting within or 
        without the corporate limits of the political subdivision, may: 
           (1) enter into contracts and incur obligations necessary to 
        combat the disaster by protecting the health and safety of 
        persons and property and by providing emergency assistance to 
        the victims of the disaster; and 
           (2) exercise the powers vested by this subdivision in the 
        light of the exigencies of the disaster without compliance with 
        time-consuming procedures and formalities prescribed by law 
        pertaining to: 
           (i) the performance of public work; 
           (ii) entering into contracts; 
           (iii) incurring of obligations; 
           (iv) employment of temporary workers; 
           (v) rental of equipment; 
           (vi) purchase of supplies and materials; 
           (vii) limitations upon tax levies; and 
           (viii) the appropriation and expenditure of public funds, 
        for example, but not limited to, publication of ordinances and 
        resolutions, publication of calls for bids, provisions of civil 
        service laws and rules, provisions relating to low bids, and 
        requirements for budgets.  
           (b) The failure or malfunction of public infrastructure or 
        systems critical to the delivery of municipal services due to 
        year 2000 problems with computers and electronically controlled 
        devices shall constitute an emergency for the purposes of this 
        section. 
           Sec. 3.  Minnesota Statutes 2002, section 13.4963, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GENERALLY.] Classification and disclosure of tax 
        data created, collected, or maintained by the department of 
        revenue under chapter 115B (except taxes imposed under sections 
        115B.21 to 115B.24), 289A (except for taxes imposed under 
        sections 298.01, 298.015, and 298.24), 290, 290A, 291, 295, 
        297A, or 297H, and sections 295.50 to 295.59 or any similar 
        Indian tribal tax administered by the commissioner according to 
        a tax agreement between the state and an Indian tribal 
        government are governed by chapter 270B. 
           Sec. 4.  Minnesota Statutes 2002, section 14.388, is 
        amended to read: 
           14.388 [GOOD CAUSE EXEMPTION.] 
           If an agency for good cause finds that the rulemaking 
        provisions of this chapter are unnecessary, impracticable, or 
        contrary to the public interest when adopting, amending, or 
        repealing a rule to: 
           (1) address a serious and immediate threat to the public 
        health, safety, or welfare; 
           (2) comply with a court order or a requirement in federal 
        law in a manner that does not allow for compliance with sections 
        14.14 to 14.28; 
           (3) incorporate specific changes set forth in applicable 
        statutes when no interpretation of law is required; or 
           (4) make changes that do not alter the sense, meaning, or 
        effect of a rule, 
        the agency may adopt, amend, or repeal the rule after satisfying 
        the requirements of section 14.386, paragraph (a), clauses (1) 
        to (3) (4).  The agency shall incorporate its findings and a 
        brief statement of its supporting reasons in its order adopting, 
        amending, or repealing the rule. 
           The office of administrative hearings shall determine 
        whether the agency has provided adequate justification for its 
        use of this section. 
           Rules adopted, amended, or repealed under clauses (1) and 
        (2) are effective for a period of two years from the date of 
        publication of the rule in the State Register. 
           Rules adopted, amended, or repealed under clause (3) or (4) 
        are effective upon publication in the State Register. 
           Sec. 5.  Minnesota Statutes 2002, section 37.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERS.] Members of the state 
        agricultural society must be citizens of this state.  The 
        membership is as follows: 
           (a) Three delegates chosen annually by each agricultural 
        society or association in the state which maintains an active 
        existence, holds annual fairs, and is entitled to share in the 
        state appropriation under the provisions of section 38.02.  If 
        one of those societies or associations fails to choose 
        delegates, then its president, secretary, and treasurer, by 
        virtue of their offices, are its delegates.  If two fairs 
        receiving state aid are operating in one county, each delegate 
        from each society or association is entitled to one-half vote at 
        regular or special meetings of the state society.  
           (b) One delegate appointed by the county board of each 
        county in which no county or district agricultural society 
        exists.  
           (c) Individuals elected by the society as honorary members 
        for having performed eminent services in agriculture, 
        horticulture, or related arts and sciences or long and faithful 
        service in or benefits to the society.  Honorary members must be 
        elected by two-thirds vote at any annual meeting.  The number of 
        honorary members may not exceed the society's membership and 
        only one honorary member may be elected annually.  Each honorary 
        member is entitled to one vote. 
           (d) Two elected delegates and the president may represent 
        each of the following societies and associations:  Red River 
        Valley Winter Shows, the Minnesota State Horticultural Society, 
        the State Dairyman's Association, the Minnesota Dairy Goat 
        Association, the Minnesota Honey Producers Association, Inc., 
        the Minnesota Livestock Breeders' Association, the Minnesota 
        Crop Improvement Association, the Minnesota Pork Producers 
        Association, the Minnesota Lamb and Wool Producers Association, 
        the Minnesota Horse Breeders' Association, the Minnesota 
        Veterinary Medical Association, the Minnesota Cattle Breeders' 
        Association, the Minnesota Beef Cattle Improvement Association, 
        the Central Livestock Association, the Minnesota State Poultry 
        Association, the Farm Equipment Association, the North Central 
        Florist Association the Minnesota State Florists 
        Association, the Minnesota Garden Flower Society, the State Fair 
        Exhibitors' Organization, the Minnesota Federation of County 
        Fairs, the State Minnesota Forestry Association, the Minnesota 
        Horse Council, Minnesota Nurserymen's Nursery and Landscape 
        Association, Minnesota Apple Growers' Association, State Grange 
        of Minnesota, Minnesota Farmers' Union, American Dairy 
        Association of Minnesota the Midwest, and the Minnesota Farm 
        Bureau Federation.  
           (e) The following societies and associations are entitled 
        to one delegate each:  Central Minnesota Vegetable Growers 
        Association, the Minnesota Fruit and Vegetable Growers' 
        Association, Minnesota Shorthorn Breeders' Association, the 
        Minnesota Milking Shorthorn Association, Minnesota Guernsey 
        Breeders' Association, Minnesota Jersey Cattle Club, Minnesota 
        Holstein Association, Minnesota Hereford Association Breeders, 
        Minnesota Aberdeen Angus Breeders' the Minnesota Angus 
        Association, Minnesota Red Polled Breeders', Minnesota Ayreshire 
        Breeders' Association, Minnesota Brown Swiss Association, 
        Minnesota Poland China Breeders' Association, Minnesota Duroc 
        Breeders', Minnesota Chester White Association, Minnesota Turkey 
        Growers' Association, Minnesota Gladiolus Society, Minnesota 
        Hampshire Sheep Association, Minnesota Suffolk Sheep 
        Association, North American Dairy Sheep Association, and the 
        Minnesota Berkshire Association. 
           (f) The societies and associations listed in paragraphs (d) 
        and (e) must be active and statewide in their scope and 
        operation, hold annual meetings, and be incorporated under the 
        laws of the state before they are entitled to a delegate.  The 
        societies and associations must file with the secretary of 
        state, on or before December 20, a report showing that the 
        society or association has held a regular annual meeting for 
        that year, a summary of its financial transactions for the 
        current year, and an affidavit of the president and secretary 
        that it has a paid-up membership of at least 25.  On or before 
        December 31, the secretary of state shall certify to the 
        secretary of the state agricultural society the names of the 
        societies or associations that have complied with these 
        provisions.  
           (g) If a society or association ceases to exist or 
        otherwise fails to comply with the requirements of paragraph 
        (f), its membership in the state agricultural society and its 
        right to delegates is terminated and it may be replaced by 
        another society or association representing the same or similar 
        interests and chosen by a majority vote of the members of the 
        society at its next annual meeting. 
           (h) The members of the board of managers of the state 
        agricultural society are members of the society and entitled to 
        one vote each. 
           Sec. 6.  Minnesota Statutes 2002, section 60K.39, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ISSUANCE.] Unless denied a license under 
        section 62K.41 60K.43, a nonresident person shall receive a 
        nonresident producer license if: 
           (1) the person is currently licensed as a resident and in 
        good standing in the person's home state; 
           (2) the person has submitted the proper request for 
        licensure and has paid the fees required by section 60K.55; 
           (3) the person has submitted or transmitted to the 
        commissioner the application for licensure that the person 
        submitted to the person's home state, or in lieu of the same, a 
        completed Uniform Application; and 
           (4) the person's home state awards nonresident producer 
        licenses to residents of this state on the same basis. 
           Sec. 7.  Minnesota Statutes 2002, section 62A.27, is 
        amended to read: 
           62A.27 [COVERAGE OF ADOPTED CHILDREN.] 
           (a) A health plan that provides coverage to a Minnesota 
        resident must cover adopted children of the insured, subscriber, 
        participant, or enrollee on the same basis as other dependents.  
        Consequently, the plan shall not contain any provision 
        concerning preexisting condition limitations, insurability, 
        eligibility, or health underwriting approval concerning children 
        placed for adoption with the participant.  
           (b) The coverage required by this section is effective from 
        the date of placement for adoption.  For purposes of this 
        section, placement for adoption means the assumption and 
        retention by a person of a legal obligation for total or partial 
        support of a child in anticipation of adoption of the child.  
        The child's placement with a person terminates upon the 
        termination of the legal obligation for total or partial support.
           (c) For the purpose of this section, health plan includes: 
           (1) coverage offered by community integrated service 
        networks; 
           (2) coverage that is designed solely to provide dental or 
        vision care; and 
           (3) any plan under the federal Employee Retirement Income 
        Security Act of 1974 (ERISA), United States Code, title 29, 
        sections 1001 to 1461. 
           Sec. 8.  Minnesota Statutes 2002, section 62Q.71, is 
        amended to read: 
           62Q.71 [NOTICE TO ENROLLEES.] 
           Each health plan company shall provide to enrollees a clear 
        and concise description of its complaint resolution procedure, 
        if applicable under section 62Q.68, subdivision 1, and the 
        procedure used for utilization review as defined under chapter 
        62M as part of the member handbook, subscriber contract, or 
        certificate of coverage.  If the health plan company does not 
        issue a member handbook, the health plan company may provide the 
        description in another written document.  The description must 
        specifically inform enrollees:  
           (1) how to submit a complaint to the health plan company; 
           (2) if the health plan includes utilization review 
        requirements, how to notify the utilization review organization 
        in a timely manner and how to obtain certification for health 
        care services; 
           (3) how to request an appeal either through the procedures 
        described in sections 62Q.69 and 62Q.70 or through the 
        procedures described in chapter 62M; 
           (4) of the right to file a complaint with either the 
        commissioner of health or commerce at any time during the 
        complaint and appeal process; 
           (5) of the toll-free telephone number of the appropriate 
        commissioner; 
           (6) of the telephone number of the office of consumer 
        assistance, advocacy, and information; and 
           (7) (6) of the right to obtain an external review under 
        section 62Q.73 and a description of when and how that right may 
        be exercised. 
           Sec. 9.  Minnesota Statutes 2002, section 69.021, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CALCULATION OF STATE AID.] (a) The amount of 
        fire state aid available for apportionment, before the addition 
        of the minimum fire state aid allocation amount under 
        subdivision 7, is equal to 107 percent of the amount of premium 
        taxes paid to the state upon the fire, lightning, sprinkler 
        leakage, and extended coverage premiums reported to the 
        commissioner by insurers on the Minnesota Firetown Premium 
        Report.  This amount shall be reduced by the amount required to 
        pay the state auditor's costs and expenses of the audits or 
        exams of the firefighters relief associations. 
           The total amount for apportionment in respect to fire state 
        aid must not be less than two percent of the premiums reported 
        to the commissioner by insurers on the Minnesota Firetown 
        Premium Report after subtracting the following amounts: 
           (1) the amount required to pay the state auditor's costs 
        and expenses of the audits or exams of the firefighters relief 
        associations; and 
           (2) one percent of the premiums reported by town and 
        farmers' mutual insurance companies and mutual property and 
        casualty companies with total assets of $5,000,000 or less.  
           (b) The total amount for apportionment as police state aid 
        is equal to 104 percent of the amount of premium taxes paid to 
        the state on the premiums reported to the commissioner by 
        insurers on the Minnesota Aid to Police Premium Report, plus the 
        payment amounts received under section 297I.05, subdivision 8, 
        since the last aid apportionment, and reduced by the amount 
        required to pay the costs and expenses of the state auditor for 
        audits or exams of police relief associations.  The total amount 
        for apportionment in respect to the police state aid program 
        must not be less than two percent of the amount of premiums 
        reported to the commissioner by insurers on the Minnesota Aid to 
        Police Premium Report after subtracting the amount required to 
        pay the state auditor's cost and expenses of the audits or exams 
        of the police relief associations.  
           (c) The commissioner shall calculate the percentage of 
        increase or decrease reflected in the apportionment over or 
        under the previous year's available state aid using the same 
        premiums as a basis for comparison. 
           (d) The amount for apportionment in respect to peace 
        officer state aid under paragraph (b) must be further reduced by 
        $1,779,000 in fiscal year 1999, $2,077,000 in fiscal year 2000, 
        and $2,404,000 in fiscal year 2001.  These reductions in this 
        paragraph cancel to the general fund. 
           (e) In addition to the amount for apportionment of police 
        state aid under paragraph (b), each year $100,000 shall be 
        apportioned for police state aid.  An amount sufficient to pay 
        this increase is annually appropriated from the general fund. 
           Sec. 10.  Minnesota Statutes 2002, section 69.041, is 
        amended to read: 
           69.041 [SHORTFALL FROM GENERAL FUND.] 
           (a) If the annual funding requirements of fire or police 
        relief associations or consolidation accounts under sections 
        69.77, 69.771 to 69.775, or 353A.09, exceed all applicable 
        revenue sources of a given year, including the insurance premium 
        taxes funding the applicable fire or police state aid as set 
        under section 60A.15, subdivision 1, paragraph (e), clauses (1) 
        to (3) 297I.05, subdivisions 2, 3, and 4, the shortfall in the 
        annual funding requirements must be paid from the general fund 
        to the extent appropriated by the legislature. 
           (b) Nothing in this section may be deemed to relieve any 
        municipality from its obligation to a relief association or 
        consolidation account under law. 
           Sec. 11.  Minnesota Statutes 2002, section 79.251, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL DUTIES OF COMMISSIONER.] (a)(1) 
        The commissioner shall have all the usual powers and authorities 
        necessary for the discharge of the commissioner's duties under 
        this section and may contract with individuals in discharge of 
        those duties.  The commissioner shall audit the reserves 
        established (a) for individual cases arising under policies and 
        contracts of coverage issued under subdivision 4 and (b) for the 
        total book of business issued under subdivision 4.  If the 
        commissioner determines on the basis of an audit that there is 
        an excess surplus in the assigned risk plan, the commissioner 
        must notify the commissioner of finance who shall transfer 
        assets of the plan equal to the excess surplus to the budget 
        reserve account in the general fund. 
           (2) The commissioner shall monitor the operations of 
        section 79.252 and this section and shall periodically make 
        recommendations to the governor and legislature when 
        appropriate, for improvement in the operation of those sections. 
           (3) All insurers and self-insurance administrators issuing 
        policies or contracts under subdivision 4 shall pay to the 
        commissioner a .25 percent assessment on premiums for policies 
        and contracts of coverage issued under subdivision 4 for the 
        purpose of defraying the costs of performing the duties under 
        clauses (1) and (2).  Proceeds of the assessment shall be 
        deposited in the state treasury and credited to the general fund.
           (4) The assigned risk plan shall not be deemed a state 
        agency.  
           (b) As used in this subdivision, "excess surplus" means the 
        amount of assigned risk plan assets in excess of the amount 
        needed to pay all current liabilities of the plan, including, 
        but not limited to: 
           (1) administrative expenses; 
           (2) benefit claims; and 
           (3) if the assigned risk plan is dissolved under 
        subdivision 8, the amounts that would be due insurers who have 
        paid assessments to the plan. 
           Sec. 12.  Minnesota Statutes 2002, section 79A.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] For the purposes of assisting 
        the commissioner, there is established a workers' compensation 
        self-insurers' advisory committee of five members that are 
        employers authorized to self-insure in Minnesota.  Three of the 
        members and three alternates shall be elected by the 
        self-insurers' security fund board of trustees and two members 
        and two alternates shall be appointed by the commissioner.  
        Notwithstanding section 15.059, subdivision 5a, the advisory 
        committee does not expire June 30, 2001. 
           Sec. 13.  Minnesota Statutes 2002, section 103B.321, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] The board shall:  
           (1) develop guidelines for the contents of comprehensive 
        water plans that provide for a flexible approach to meeting the 
        different water and related land resources needs of counties and 
        watersheds across the state; 
           (2) coordinate assistance of state agencies to counties and 
        other local units of government involved in preparation of 
        comprehensive water plans, including identification of pertinent 
        data and studies available from the state and federal 
        government; 
           (3) conduct an active program of information and education 
        concerning the requirements and purposes of sections 103B.301 to 
        103B.355 in conjunction with the association of Minnesota 
        counties; 
           (4) determine contested cases under section 103B.345; 
           (5) establish a process for review of comprehensive water 
        plans that assures the plans are consistent with state law; and 
           (6) report to the house of representatives and senate 
        committees with jurisdiction over the environment, natural 
        resources, and agriculture as required by section 103B.351; and 
           (7) make grants to counties for comprehensive local water 
        planning, implementation of priority actions identified in 
        approved plans, and sealing of abandoned wells. 
           Sec. 14.  Minnesota Statutes 2002, section 103G.245, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DELEGATION OF PERMIT AUTHORITY TO LOCAL UNITS OF 
        GOVERNMENT.] (a) The commissioner may delegate public waters 
        work permit authority to the appropriate county or municipality 
        or to watershed districts or watershed management organizations 
        that have elected to assert local authority over protected 
        waters.  The public waters work permit authority must be 
        delegated under guidelines of the commissioner and the 
        delegation must be done by agreement with the involved county, 
        municipality, watershed district, or water management 
        organization and in compliance with section 103G.315. 
           (b) For projects affecting public waters wetlands and for 
        wetland areas of public waters affected by a public 
        transportation project as determined by the commissioner, the 
        commissioner may waive the requirement for a public waters work 
        permit if the local government unit makes a replacement, 
        no-loss, or exemption determination in compliance with sections 
        103A.201, 103B.3355, and 103G.222 to 103G.2373 103G.2372, and 
        rules adopted pursuant to these same sections. 
           (c) For projects affecting both public waters and wetlands, 
        the local government unit may, by written agreement with the 
        commissioner, waive the requirement for a replacement plan, 
        no-loss, or exemption determination if a public waters work 
        permit is required and the commissioner includes the provisions 
        of sections 103A.201, 103B.3355, and 103G.222 to 
        103G.2373 103G.2372, and rules adopted pursuant to these same 
        sections in the public waters work permit. 
           Sec. 15.  Minnesota Statutes 2002, section 116J.556, is 
        amended to read: 
           116J.556 [LOCAL MATCH REQUIREMENT.] 
           (a) In order to qualify for a grant under sections 116J.551 
        to 116J.557, the municipality must pay for at least one-quarter 
        of the project costs as a local match.  The municipality shall 
        pay an amount of the project costs equal to at least 12 percent 
        of the cleanup costs from the municipality's general fund, a 
        property tax levy for that purpose, or other unrestricted money 
        available to the municipality (excluding tax increments).  These 
        unrestricted moneys may be spent for project costs, other than 
        cleanup costs, and qualify for the local match payment equal to 
        12 percent of cleanup costs.  The rest of the local match may be 
        paid with tax increments, regional, state, or federal money 
        available for the redevelopment of brownfields or any other 
        money available to the municipality. 
           (b) If the development authority establishes a tax 
        increment financing district or hazardous substance subdistrict 
        on the site to pay for part of the local match requirement, the 
        district or subdistrict is not subject to the state aid 
        reductions under section 273.1399.  In order to qualify for the 
        exemption from the state aid reductions, the municipality must 
        elect, by resolution, on or before the request for certification 
        is filed that all tax increments from the district or 
        subdistrict will be used exclusively to pay (1) for project 
        costs for the site and (2) administrative costs for the district 
        or subdistrict. the district or subdistrict must be decertified 
        when an amount of tax increments equal to no more than three 
        times the costs of implementing the response action plan for the 
        site and the administrative costs for the district or 
        subdistrict have been received, after deducting the amount of 
        the state grant. 
           Sec. 16.  Minnesota Statutes 2002, section 144A.4605, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LICENSE REQUIRED.] (a) A housing with services 
        establishment registered under chapter 144D that is required to 
        obtain a home care license must obtain an assisted living home 
        care license according to this section or a class A or class E 
        license according to rule.  A housing with services 
        establishment that obtains a class E license under this 
        subdivision remains subject to the payment limitations in 
        sections 256B.0913, subdivision 5, paragraph (h) (g), and 
        256B.0915, subdivision 3, paragraph (g) (i). 
           (b) A board and lodging establishment registered for 
        special services as of December 31, 1996, and also registered as 
        a housing with services establishment under chapter 144D, must 
        deliver home care services according to sections 144A.43 to 
        144A.47, and may apply for a waiver from requirements under 
        Minnesota Rules, parts 4668.0002 to 4668.0240, to operate a 
        licensed agency under the standards of section 157.17.  Such 
        waivers as may be granted by the department will expire upon 
        promulgation of home care rules implementing section 144A.4605. 
           (c) An adult foster care provider licensed by the 
        department of human services and registered under chapter 144D 
        may continue to provide health-related services under its foster 
        care license until the promulgation of home care rules 
        implementing this section. 
           (d) An assisted living home care provider licensed under 
        this section must comply with the disclosure provisions of 
        section 325F.72 to the extent they are applicable. 
           Sec. 17.  Minnesota Statutes 2002, section 144E.41, is 
        amended to read: 
           144E.41 [PROGRAM ELIGIBILITY; QUALIFIED AMBULANCE SERVICE 
        PERSONNEL.] 
           (a) Persons eligible to participate in the ambulance 
        service personnel longevity award and incentive program are 
        qualified ambulance service personnel. 
           (b) Qualified ambulance service personnel are ambulance 
        attendants, ambulance drivers, and ambulance service medical 
        directors or medical advisors who meet the following 
        requirements: 
           (1) employment of the person by or provision by the person 
        of service to an ambulance service that is licensed as such by 
        the state of Minnesota and that provides ambulance services that 
        are generally available to the public and are free of unfair 
        discriminatory practices under chapter 363; 
           (2) performance by the person during the 12 months ending 
        as of the immediately previous June 30 of all or a predominant 
        portion of the person's services in the state of Minnesota or on 
        behalf of Minnesota residents, as verified by August 1 annually 
        in an affidavit from the chief administrative officer of the 
        ambulance service; 
           (3) current certification of the person during the 12 
        months ending as of the immediately previous June 30 by the 
        Minnesota department of health board as an ambulance attendant, 
        ambulance driver, or ambulance service medical director or 
        medical advisor under section 144E.265 or 144E.28, and 
        supporting rules, and current active ambulance service 
        employment or service provision status of the person, as 
        verified by August 1 annually in an affidavit from the chief 
        administrative officer of the ambulance service; and 
           (4) conformance by the person with the definition of the 
        phrase "volunteer ambulance attendant" under section 144E.001, 
        subdivision 15, except that for the salary limit specified in 
        that provision there must be substituted, for purposes of this 
        section only, a limit of $3,000 for calendar year 1993, and 
        $3,000 multiplied by the cumulative percentage increase in the 
        national Consumer Price Index, all items, for urban wage earners 
        and clerical workers, as published by the federal Department of 
        Labor, Bureau of Labor Statistics, since December 31, 1993, and 
        for an ambulance service medical director, conformance based 
        solely on the person's hourly stipends or salary for service as 
        a medical director.  
           (c) The term "active ambulance service employment or 
        service provision status" means being in good standing with and 
        on the active roster of the ambulance service making the 
        certification. 
           (d) The maximum period of ambulance service employment or 
        service provision for which a person may receive credit towards 
        an award under this chapter, including prior service credit 
        under section 144E.45, subdivision 2, paragraph (c), is 20 years.
           (e) For a person who is employed by or provides service to 
        more than one ambulance service concurrently during any period 
        during the 12-month period, credit towards an award under this 
        chapter is limited to one ambulance service during any period.  
        The creditable period is with the ambulance service for which 
        the person undertakes the greatest portion of employment or 
        service hours. 
           Sec. 18.  Minnesota Statutes 2002, section 147A.01, 
        subdivision 18, is amended to read: 
           Subd. 18.  [PHYSICIAN ASSISTANT OR REGISTERED PHYSICIAN 
        ASSISTANT.] "Physician assistant" or "registered physician 
        assistant" means a person registered pursuant to this section 
        chapter who is qualified by academic or practical training or 
        both to provide patient services as specified in this chapter, 
        under the supervision of a supervising physician. 
           Sec. 19.  Minnesota Statutes 2002, section 147A.01, 
        subdivision 22, is amended to read: 
           Subd. 22.  [REGISTRATION.] "Registration" is the process by 
        which the board determines that an applicant has been found to 
        meet the standards and qualifications found in this 
        section chapter. 
           Sec. 20.  Minnesota Statutes 2002, section 147A.24, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TYPE OF EDUCATION REQUIRED.] Approved continuing 
        education is approved if it is equivalent to category 1 credit 
        hours as defined by the American Osteopathic Association Bureau 
        of Professional Education, the Royal College of Physicians and 
        Surgeons of Canada, the American Academy of Physician 
        Assistants, or by organizations that have reciprocal 
        arrangements with the physician recognition award program of the 
        American Medical Association. 
           Sec. 21.  Minnesota Statutes 2002, section 211A.13, is 
        amended to read: 
           211A.13 [PROHIBITED TRANSFERS.] 
           A candidate for political subdivision office must not 
        accept contributions from the principal campaign committee of a 
        candidate as defined in section 10A.01, subdivision 5 34.  A 
        candidate for political subdivision office must not make 
        contributions to a principal campaign committee, unless the 
        contribution is made from the personal funds of the candidate 
        for political subdivision office. 
           Sec. 22.  Minnesota Statutes 2002, section 221.021, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REGISTRATION CERTIFICATE OR PERMIT 
        REQUIRED.] No person may operate as a motor carrier or advertise 
        or otherwise hold out as a motor carrier without a certificate 
        of registration or permit in effect.  A certificate or permit 
        may be suspended or revoked upon conviction of violating a 
        provision of sections 221.011 to 221.296 or an order or rule of 
        the commissioner governing the operation of motor carriers, and 
        upon a finding by the court that the violation was willful.  The 
        commissioner may, for good cause after a hearing, suspend or 
        revoke a certificate or permit for a violation of a provision of 
        sections 221.011 to 221.296 or an order issued or rule 
        adopted by the commissioner or board under this chapter. 
           Sec. 23.  Minnesota Statutes 2002, section 237.075, 
        subdivision 8, is amended to read: 
           Subd. 8.  [CHARITABLE CONTRIBUTION.] The commission shall 
        allow as operating expenses only those 50 percent of the 
        qualified charitable contributions which the commission deems 
        prudent and which qualify under section 290.21, subdivision 3, 
        clause (b) or (e).  Only 50 percent of the qualified 
        contributions shall be allowed as operating expenses for the use 
        of any community chest, corporation, trust, fund, association, 
        foundation, or organization, and only as long as the use is 
        exclusively for religious, charitable, public cemetery, 
        scientific, literary, artistic, or educational purposes or for 
        the prevention of cruelty to children or animals.  No part of a 
        charitable contribution may inure to the benefit of any private 
        stockholder or individual. 
           Sec. 24.  Minnesota Statutes 2002, section 244.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
        corrections shall establish programs for those designated by the 
        commissioner to serve all or part of a sentence on intensive 
        community supervision or all or part of a supervised release or 
        parole term on intensive supervised release.  The adoption and 
        modification of policies and procedures to implement sections 
        244.05, subdivision 6, and 244.12 to 244.15 are not subject to 
        the rulemaking procedures of chapter 14 because these policies 
        and procedures are excluded from the definition of a rule under 
        section 14.03, subdivision 3, paragraph (b), clause (2) (1).  
        The commissioner shall locate the programs so that at least 
        one-half of the money appropriated for the programs in each year 
        is used for programs in Community Corrections Act counties.  In 
        awarding contracts for intensive supervision programs in 
        Community Corrections Act counties, the commissioner shall give 
        first priority to programs that utilize county employees as 
        intensive supervision agents and shall give second priority to 
        programs that utilize state employees as intensive supervision 
        agents.  The commissioner may award contracts to other providers 
        in Community Corrections Act counties only if doing so will 
        result in a significant cost savings or a significant increase 
        in the quality of services provided, and only after notifying 
        the chairs of the committees in the senate and house of 
        representatives with jurisdiction over criminal justice policy. 
           Sec. 25.  Minnesota Statutes 2002, section 260B.163, 
        subdivision 4, is amended to read: 
           Subd. 4.  [APPOINTMENT OF COUNSEL.] (a) The child, parent, 
        guardian or custodian has the right to effective assistance of 
        counsel in connection with a proceeding in juvenile court.  This 
        right does not apply to a child who is charged with a juvenile 
        petty offense as defined in section 260B.007, subdivision 15 16, 
        unless the child is charged with a third or subsequent juvenile 
        alcohol or controlled substance offense and may be subject to 
        the alternative disposition described in section 260B.235, 
        subdivision 6.  
           (b) The court shall appoint counsel, or stand-by counsel if 
        the child waives the right to counsel, for a child who is: 
           (1) charged by delinquency petition with a gross 
        misdemeanor or felony offense; or 
           (2) the subject of a delinquency proceeding in which 
        out-of-home placement has been proposed. 
           (c) If they desire counsel but are unable to employ it, the 
        court shall appoint counsel to represent the child or the 
        parents or guardian in any case in which it feels that such an 
        appointment is appropriate, except a juvenile petty offender who 
        does not have the right to counsel under paragraph (a).  
           (d) Counsel for the child shall not also act as the child's 
        guardian ad litem. 
           Sec. 26.  Minnesota Statutes 2002, section 260C.007, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CHILD ABUSE.] "Child abuse" means an act that 
        involves a minor victim and that constitutes a violation of 
        section 609.221, 609.222, 609.223, 609.224, 609.2242, 609.322, 
        609.323, 609.324, 609.342, 609.343, 609.344, 609.345, 609.377, 
        609.378, 617.246, or an act committed in another state that 
        involves a minor victim and would constitute a violation of one 
        of these sections if committed in this state. 
           Sec. 27.  Minnesota Statutes 2002, section 260C.175, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [IMMEDIATE CUSTODY.] No child may be taken 
        into immediate custody except: 
           (a) with an order issued by the court in accordance with 
        the provisions of section 260C.151, subdivision 5 6, or Laws 
        1997, chapter 239, article 10, section 10, paragraph (a), clause 
        (3), or 12, paragraph (a), clause (3), or by a warrant issued in 
        accordance with the provisions of section 260C.154; 
           (b) by a peace officer: 
           (1) when a child has run away from a parent, guardian, or 
        custodian, or when the peace officer reasonably believes the 
        child has run away from a parent, guardian, or custodian; or 
           (2) when a child is found in surroundings or conditions 
        which endanger the child's health or welfare or which such peace 
        officer reasonably believes will endanger the child's health or 
        welfare.  If an Indian child is a resident of a reservation or 
        is domiciled on a reservation but temporarily located off the 
        reservation, the taking of the child into custody under this 
        clause shall be consistent with the Indian Child Welfare Act of 
        1978, United States Code, title 25, section 1922; 
           (c) by a peace officer or probation or parole officer when 
        it is reasonably believed that the child has violated the terms 
        of probation, parole, or other field supervision; or 
           (d) by a peace officer or probation officer under section 
        260C.143, subdivision 1 or 4. 
           Sec. 28.  Minnesota Statutes 2002, section 270.67, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXTENSION AGREEMENTS.] When any portion of any 
        tax payable to the commissioner of revenue together with 
        interest and penalty thereon, if any, has not been paid, the 
        commissioner may extend the time for payment for a further 
        period.  When the authority of this section is invoked, the 
        extension shall be evidenced by written agreement signed by the 
        taxpayer and the commissioner, stating the amount of the tax 
        with penalty and interest, if any, and providing for the payment 
        of the amount in installments.  The agreement may contain a 
        confession of judgment for the amount and for any unpaid portion 
        thereof and shall.  If the agreement contains a confession of 
        judgment, the confession of judgment must provide that the 
        commissioner may forthwith enter judgment against the taxpayer 
        in the district court of the county of residence as shown upon 
        the taxpayer's tax return for the unpaid portion of the amount 
        specified in the extension agreement.  The agreement shall 
        provide that it can be terminated, after notice by the 
        commissioner, if information provided by the taxpayer prior to 
        the agreement was inaccurate or incomplete, collection of the 
        tax covered by the agreement is in jeopardy, there is a 
        subsequent change in the taxpayer's financial condition, the 
        taxpayer has failed to make a payment due under the agreement, 
        or the taxpayer has failed to pay any other tax or file a tax 
        return coming due after the agreement.  The notice must be given 
        at least 14 calendar days prior to termination, and shall advise 
        the taxpayer of the right to request a reconsideration from the 
        commissioner of whether termination is reasonable and 
        appropriate under the circumstances.  A request for 
        reconsideration does not stay collection action beyond the 
        14-day notice period.  If the commissioner has reason to believe 
        that collection of the tax covered by the agreement is in 
        jeopardy, the commissioner may proceed under sections 270.70, 
        subdivision 2, paragraph (b), and 270.274, and terminate the 
        agreement without regard to the 14-day period.  The commissioner 
        may accept other collateral the commissioner considers 
        appropriate to secure satisfaction of the tax liability.  The 
        principal sum specified in the agreement shall bear interest at 
        the rate specified in section 270.75 on all unpaid portions 
        thereof until the same has been fully paid or the unpaid portion 
        thereof has been entered as a judgment.  The judgment shall bear 
        interest at the rate specified in section 270.75.  If it appears 
        to the commissioner that the tax reported by the taxpayer is in 
        excess of the amount actually owing by the taxpayer, the 
        extension agreement or the judgment entered pursuant thereto 
        shall be corrected.  If after making the extension agreement or 
        entering judgment with respect thereto, the commissioner 
        determines that the tax as reported by the taxpayer is less than 
        the amount actually due, the commissioner shall assess a further 
        tax in accordance with the provisions of law applicable to the 
        tax.  The authority granted to the commissioner by this section 
        is in addition to any other authority granted to the 
        commissioner by law to extend the time of payment or the time 
        for filing a return and shall not be construed in limitation 
        thereof. 
           Sec. 29.  Minnesota Statutes 2002, section 270B.03, 
        subdivision 6, is amended to read: 
           Subd. 6.  [INVESTIGATIVE DATA.] For purposes of any law 
        administered by the department of revenue, including laws not 
        listed in section 270B.01, subdivision 8, investigative data 
        collected or created by the department of revenue in order to 
        prepare a case against a person, whether known or unknown, for 
        the commission of a crime is confidential or protected nonpublic 
        during an investigation.  When the investigation becomes 
        inactive, as defined in section 13.82, subdivision 5 7, the data 
        is private or nonpublic. 
           Sec. 30.  Minnesota Statutes 2002, section 273.1106, is 
        amended to read: 
           273.1106 [REPORT TO LEGISLATURE; LIMITED MARKET VALUE; 
        VALUATION EXCLUSION.] 
           By March 1 of each year, the commissioner of revenue shall 
        make a report to the legislature on the use of limited market 
        value under section 273.13 273.11, subdivision 1a, and the 
        valuation exclusion under section 273.13 273.11, subdivision 16. 
        For the limited market value provision, the report shall include 
        the total value excluded from taxation by type of property for 
        each city and town.  For the valuation exclusion provision, the 
        report shall include the total market value excluded from 
        taxation for each city and town, as well as a breakdown of the 
        excluded improvement amounts by age and value of the property 
        being improved and the amount of the qualifying improvement.  
        The county assessors shall provide the information necessary for 
        the commissioner to compile the report in a manner prescribed by 
        the commissioner. 
           Sec. 31.  Minnesota Statutes 2002, section 290.0802, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SUBTRACTION.] (a) A qualified individual is 
        allowed a subtraction from federal taxable income of the 
        individual's subtraction base amount.  The excess of the 
        subtraction base amount over the taxable net income computed 
        without regard to the subtraction for the elderly or disabled 
        under section 290.01, subdivision 19b, clause (5) (4), may be 
        used to reduce the amount of a lump sum distribution subject to 
        tax under section 290.032. 
           (b)(1) The initial subtraction base amount equals 
           (i) $12,000 for a married taxpayer filing a joint return if 
        a spouse is a qualified individual, 
           (ii) $9,600 for a single taxpayer, and 
           (iii) $6,000 for a married taxpayer filing a separate 
        federal return. 
           (2) The qualified individual's initial subtraction base 
        amount, then, must be reduced by the sum of nontaxable 
        retirement and disability benefits and one-half of the amount of 
        adjusted gross income in excess of the following thresholds: 
           (i) $18,000 for a married taxpayer filing a joint return if 
        both spouses are qualified individuals, 
           (ii) $14,500 for a single taxpayer or for a married couple 
        filing a joint return if only one spouse is a qualified 
        individual, and 
           (iii) $9,000 for a married taxpayer filing a separate 
        federal return. 
           (3) In the case of a qualified individual who is under the 
        age of 65, the maximum amount of the subtraction base may not 
        exceed the taxpayer's disability income. 
           (4) The resulting amount is the subtraction base amount. 
           Sec. 32.  Minnesota Statutes 2002, section 290.9727, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TAXABLE NET INCOME.] For purposes of this 
        section, taxable net income means the lesser of:  
           (1) the recognized built-in gains of the S corporation for 
        the taxable year, as determined under section 1374 of the 
        Internal Revenue Code, subject to the modifications provided in 
        section 290.01, subdivision 19f, that are allocable to this 
        state under section 290.17, 290.191, or 290.20; or 
           (2) the amount of the S corporation's federal taxable 
        income, as determined under section 1374(d)(4) of the Internal 
        Revenue Code, subject to the provisions of section 290.01, 
        subdivisions 19c to 19f, that is allocable to this state under 
        section 290.17, 290.191, or 290.20, less the deduction for 
        charitable contributions in section 290.21, subdivision 3. 
           Sec. 33.  Minnesota Statutes 2002, section 290.9728, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TAXABLE INCOME.] For purposes of this section, 
        taxable income means the lesser of:  
           (1) the amount of the net capital gain of the S corporation 
        for the taxable year, as determined under sections 1222 and 1374 
        of the Internal Revenue Code, and subject to the modifications 
        provided in section 290.01, subdivisions 19e and 19f, in excess 
        of $25,000 that is allocable to this state under section 290.17, 
        290.191, or 290.20; or 
           (2) the amount of the S corporation's federal taxable 
        income, subject to the provisions of section 290.01, 
        subdivisions 19c to 19f, that is allocable to this state under 
        section 290.17, 290.191, or 290.20, less the deduction for 
        charitable contributions in section 290.21, subdivision 3. 
           Sec. 34.  Minnesota Statutes 2002, section 290.9729, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TAXABLE INCOME.] For the purposes of this 
        section, taxable income means the lesser of:  
           (1) the amount of the S corporation's excess net passive 
        income, as determined under section 1375 of the Internal Revenue 
        Code, subject to the provisions of section 290.01, subdivisions 
        19c to 19f, that is allocable to this state under section 
        290.17, 290.191, or 290.20; or 
           (2) the amount of the S corporation's federal taxable 
        income, as determined under section 1374(d)(4) of the Internal 
        Revenue Code, subject to the provisions of section 290.01, 
        subdivisions 19c to 19f, that is allocable to this state under 
        section 290.17, 290.191, or 290.20, less the deduction for 
        charitable contributions in section 290.21, subdivision 3. 
           Sec. 35.  Minnesota Statutes 2002, section 297A.70, 
        subdivision 7, is amended to read: 
           Subd. 7.  [HOSPITALS AND OUTPATIENT SURGICAL CENTERS.] (a) 
        Sales, except for those listed in paragraph (c), to a hospital 
        are exempt, if the items purchased are used in providing 
        hospital services.  For purposes of this subdivision, "hospital" 
        means a hospital organized and operated for charitable purposes 
        within the meaning of section 501(c)(3) of the Internal Revenue 
        Code, and licensed under chapter 144 or by any other 
        jurisdiction, and "hospital services" are services authorized or 
        required to be performed by a "hospital" under chapter 144. 
           (b) Sales, except for those listed in paragraph (c), to an 
        outpatient surgical center are exempt, if the items purchased 
        are used in providing outpatient surgical services.  For 
        purposes of this subdivision, "outpatient surgical center" means 
        an outpatient surgical center organized and operated for 
        charitable purposes within the meaning of section 501(c)(3) of 
        the Internal Revenue Code, and licensed under chapter 144 or by 
        any other jurisdiction.  For the purposes of this subdivision, 
        "outpatient surgical services" means:  (1) services authorized 
        or required to be performed by an outpatient surgical center 
        under chapter 144; and (2) urgent care.  For purposes of this 
        subdivision, "urgent care" means health services furnished to a 
        person whose medical condition is sufficiently acute to require 
        treatment unavailable through, or inappropriate to be provided 
        by, a clinic or physician's office, but not so acute as to 
        require treatment in a hospital emergency room.  
           (c) This exemption does not apply to the following products 
        and services: 
           (1) purchases made by a clinic, physician's office, or any 
        other medical facility not operating as a hospital or outpatient 
        surgical center, even though the clinic, office, or facility may 
        be owned and operated by a hospital or outpatient surgical 
        center; 
           (2) sales under section 297A.61, subdivisions 3, paragraph 
        (d), and 16, paragraph (c) paragraphs (d) and (g), clause (2); 
           (3) building and construction materials used in 
        constructing buildings or facilities that will not be used 
        principally by the hospital or outpatient surgical center; 
           (4) building, construction, or reconstruction materials 
        purchased by a contractor or a subcontractor as a part of a 
        lump-sum contract or similar type of contract with a guaranteed 
        maximum price covering both labor and materials for use in the 
        construction, alteration, or repair of a hospital or outpatient 
        surgical center; or 
           (5) the leasing of a motor vehicle as defined in section 
        297B.01, subdivision 5. 
           (d) A limited liability company also qualifies for 
        exemption under this subdivision if (1) it consists of a sole 
        member that would qualify for the exemption, and (2) the items 
        purchased qualify for the exemption. 
           Sec. 36.  Minnesota Statutes 2002, section 317A.443, 
        subdivision 2, is amended to read: 
           Subd. 2.  [METHODS.] Unless otherwise provided in the 
        articles or bylaws, members may take action at a meeting by 
        voice or ballot, by unanimous action without a meeting under 
        section 317A.445, by written ballot under section 317A.447, or 
        by electronic communication under section 317A.449 317A.450. 
           Sec. 37.  Minnesota Statutes 2002, section 322B.960, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PENALTY.] (a) A domestic limited liability 
        company that has not filed a registration pursuant to the 
        requirements of subdivision 3 2, is administratively terminated. 
        The secretary of state shall issue a certificate of 
        administrative termination which must be filed in the office of 
        the secretary of state.  The secretary of state must also make 
        available in an electronic format the names of the terminated 
        limited liability companies. 
           (b) A non-Minnesota limited liability company that has not 
        filed a registration pursuant to the requirements of subdivision 
        3 2, shall have its authority to do business in Minnesota 
        revoked. The secretary of state must issue a certificate of 
        revocation which must be filed in the office of the secretary of 
        state.  The secretary of state must also make available in an 
        electronic format the names of the revoked non-Minnesota limited 
        liability companies. 
           Sec. 38.  Minnesota Statutes 2002, section 325E.26, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COMMERCIAL TELEPHONE SOLICITATION.] "Commercial 
        telephone solicitation" means any unsolicited call to a 
        residential subscriber when the person initiating the call has 
        not had a prior business or personal relationship with the 
        subscriber, and when the purpose of the call is to solicit the 
        purchase or the consideration of purchase of goods or services 
        by the subscriber.  Commercial telephone solicitation does not 
        include calls initiated by organizations listed in Minnesota 
        Statutes 2000, section 290.21, subdivision 3, clauses (a) to (e).
           Sec. 39.  Minnesota Statutes 2002, section 354A.31, 
        subdivision 6, is amended to read: 
           Subd. 6.  [REDUCED RETIREMENT ANNUITY.] This subdivision 
        applies only to a person who first became a coordinated member 
        or a member of a pension fund listed in section 356.30, 
        subdivision 3, before July 1, 1989, and whose annuity is higher 
        when calculated using the retirement annuity formula percentage 
        in subdivision 4, paragraph (b) (c), or subdivision 4a, 
        paragraph (c), in conjunction with this subdivision than when 
        calculated under subdivision 4, paragraph (c) (d), or 
        subdivision 4a, paragraph (d), in conjunction with subdivision 7.
           (a) Upon retirement at an age before normal retirement age 
        with three years of service credit or prior to age 62 with at 
        least 30 years of service credit, a coordinated member shall be 
        entitled to a retirement annuity in an amount equal to the 
        normal retirement annuity calculated using the retirement 
        annuity formula percentage in subdivision 4, paragraph (b) (c), 
        or subdivision 4a, paragraph (c), reduced by one-quarter of one 
        percent for each month that the coordinated member is under 
        normal retirement age if the coordinated member has less than 30 
        years of service credit or is under the age of 62 if the 
        coordinated member has at least 30 years of service credit.  
           (b) Any coordinated member whose attained age plus credited 
        allowable service totals 90 years is entitled, upon application, 
        to a retirement annuity in an amount equal to the normal 
        retirement annuity calculated using the retirement annuity 
        formula percentage in subdivision 4, paragraph (b) (c), or 
        subdivision 4a, paragraph (c), without any reduction by reason 
        of early retirement. 
           Sec. 40.  Minnesota Statutes 2002, section 354A.31, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ACTUARIAL REDUCTION FOR EARLY RETIREMENT.] This 
        subdivision applies to a person who has become at least 55 years 
        old and first becomes a coordinated member after June 30, 1989, 
        and to any other coordinated member who has become at least 55 
        years old and whose annuity is higher when calculated using the 
        retirement annuity formula percentage in subdivision 4, 
        paragraph (c) (d), and subdivision 4a, paragraph (d), in 
        conjunction with this subdivision than when calculated under 
        subdivision 4, paragraph (b) (c), or subdivision 4a, paragraph 
        (c), in conjunction with subdivision 6.  A coordinated member 
        who retires before the full benefit age shall be paid the 
        retirement annuity calculated using the retirement annuity 
        formula percentage in subdivision 4, paragraph (c) (d), or 
        subdivision 4a, paragraph (d), reduced so that the reduced 
        annuity is the actuarial equivalent of the annuity that would be 
        payable to the member if the member deferred receipt of the 
        annuity and the annuity amount were augmented at an annual rate 
        of three percent compounded annually from the day the annuity 
        begins to accrue until the normal retirement age. 
           Sec. 41.  Minnesota Statutes 2002, section 356.46, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] As used in this section, 
        each of the following terms shall have the meaning given. 
           (a) "Annuity form" means the payment procedure and duration 
        of a retirement annuity or disability benefit available to a 
        member of a public pension fund, based on the period over which 
        a retirement annuity or disability benefit is payable, 
        determined by the number of persons to whom the retirement 
        annuity or disability benefit is payable, and the amount of the 
        retirement annuity or disability benefit which is payable to 
        each person. 
           (b) "Joint and survivor optional annuity" means an optional 
        annuity form which provides a retirement annuity or disability 
        benefit to a retired member and the spouse of the member on a 
        joint basis during the lifetime of the retired member and all or 
        a portion of the original retirement annuity or disability 
        benefit amount to the surviving spouse in the event of the death 
        of the retired member. 
           (c) "Optional annuity form" means an annuity form which is 
        elected by a member and is not provided automatically as the 
        standard annuity form of the public pension plan. 
           (d) "Public pension plan" means a public pension plan as 
        defined under section 356.615 356.63, paragraph (b). 
           (e) "Retirement annuity" means a series of monthly payments 
        to which a former or retired member of a public pension fund is 
        entitled due to attaining a specified age and acquiring credit 
        for a specified period of service, which includes a retirement 
        annuity, retirement allowance, or service pension.  
           (f) "Disability benefit" means a series of monthly payments 
        to which a former or disabled member of a public pension fund is 
        entitled due to a physical or mental inability to engage in 
        specified employment. 
           Sec. 42.  Minnesota Statutes 2002, section 356.62, is 
        amended to read: 
           356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 
           (a) For purposes of any public pension plan, as defined in 
        section 356.615 356.63, paragraph (b), each employer shall pick 
        up the employee contributions required pursuant to law or the 
        pension plan for all salary payable after December 31, 1982.  If 
        the United States Treasury department rules that under section 
        414(h) of the Internal Revenue Code of 1986, as amended through 
        December 31, 1992, that these picked up contributions are not 
        includable in the employee's adjusted gross income until they 
        are distributed or made available, then these picked up 
        contributions must be treated as employer contributions in 
        determining tax treatment under the Internal Revenue Code of 
        1986, as amended through December 31, 1992, and the employer 
        shall discontinue withholding federal income taxes on the amount 
        of these contributions.  The employer shall pay these picked up 
        contributions from the same source of funds as is used to pay 
        the salary of the employee.  The employer shall pick up these 
        employee contributions by a reduction in the cash salary of the 
        employee. 
           (b) Employee contributions that are picked up must be 
        treated for all purposes of the public pension plan in the same 
        manner and to the same extent as employee contributions that 
        were made prior to the date on which the employee contributions 
        pick up began.  The amount of the employee contributions that 
        are picked up must be included in the salary upon which 
        retirement coverage is credited and retirement and survivor's 
        benefits are determined.  For purposes of this section, 
        "employee" means any person covered by a public pension plan.  
        For purposes of this section, "employee contributions" include 
        any sums deducted from the employee's salary or wages or 
        otherwise paid in lieu thereof, regardless of whether they are 
        denominated contributions by the public pension plan. 
           (c) For any calendar year in which withholding has been 
        reduced under this section, the employing unit shall supply each 
        employee and the commissioner of revenue with an information 
        return indicating the amount of the employer's picked-up 
        contributions for the calendar year that were not subject to 
        withholding.  This return must be provided to the employee not 
        later than January 31 of the succeeding calendar year.  The 
        commissioner of revenue shall prescribe the form of the return 
        and the provisions of section 289A.12 must apply to the extent 
        not inconsistent with the provisions of this section. 
           Sec. 43.  Minnesota Statutes 2002, section 469.057, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SEAPORT CONTROL LIMITED.] Neither the department 
        of public service nor a successor agency, if any, has no 
        jurisdiction over a seaway port authority for the following 
        matters to the extent they are connected with handling 
        interstate commerce: 
           (1) charges for stevedoring of vessels; 
           (2) receiving and delivering cargo for vessels; 
           (3) car and truck unloading and loading cargo for vessels; 
           (4) watching cargo for vessels; 
           (5) charges to vessels for use of facilities; 
           (6) charges against railroad, trucking companies or 
        shippers for use of facilities; and 
           (7) delivery and warehouse charges for cargo to and from 
        and in warehouses on seaway port authority property. 
           Sec. 44.  Laws 1997, chapter 203, article 9, section 21, as 
        amended by Laws 1998, chapter 407, article 6, section 111, Laws 
        2000, chapter 488, article 10, section 28, and Laws 2001 First 
        Special Session chapter 9, article 10, section 62, is amended to 
        read: 
           Sec. 21.  [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 
           (a) Effective on the date specified, the following persons 
        will be ineligible for general assistance and general assistance 
        medical care under Minnesota Statutes, chapter 256D, group 
        residential housing under Minnesota Statutes, chapter 256I, and 
        MFIP assistance under Minnesota Statutes, chapter 256J, funded 
        with state money: 
           (1) Beginning July 1, 2002, persons who are terminated from 
        or denied Supplemental Security Income due to the 1996 changes 
        in the federal law making persons whose alcohol or drug 
        addiction is a material factor contributing to the person's 
        disability ineligible for Supplemental Security Income, and are 
        eligible for general assistance under Minnesota Statutes, 
        section 256D.05, subdivision 1, paragraph (a), clause (15), 
        general assistance medical care under Minnesota Statutes, 
        chapter 256D, or group residential housing under Minnesota 
        Statutes, chapter 256I; 
           (2) Beginning July 1, 2002 2003, legal noncitizens who are 
        ineligible for Supplemental Security Income due to the 1996 
        changes in federal law making certain noncitizens ineligible for 
        these programs due to their noncitizen status; and 
           (3) Beginning July 1, 2003, legal noncitizens who are 
        eligible for MFIP assistance, either the cash assistance portion 
        or the food assistance portion, funded entirely with state money.
           (b) State money that remains unspent due to changes in 
        federal law enacted after May 12, 1997, that reduce state 
        spending for legal noncitizens or for persons whose alcohol or 
        drug addiction is a material factor contributing to the person's 
        disability, or enacted after February 1, 1998, that reduce state 
        spending for food benefits for legal noncitizens shall not 
        cancel and shall be deposited in the TANF reserve account. 
           [EFFECTIVE DATE.] This section is effective retroactive to 
        July 1, 2001. 
           Sec. 45.  [REPEALERS; OBSOLETE OR REDUNDANT LANGUAGE; 
        TECHNICAL CONFLICTS.] 
           Subdivision 1.  [OBSOLETE DISTRICTS.] Minnesota Statutes 
        2002, sections 2.043; 2.053; 2.063; 2.073; 2.083; 2.093; 2.103; 
        2.113; 2.123; 2.133; 2.143; 2.153; 2.163; 2.173; 2.183; 2.193; 
        2.203; 2.213; 2.223; 2.233; 2.243; 2.253; 2.263; 2.273; 2.283; 
        2.293; 2.303; 2.313; 2.323; 2.333; 2.343; 2.353; 2.363; 2.373; 
        2.383; 2.393; 2.403; 2.413; 2.423; 2.433; 2.443; 2.453; 2.463; 
        2.473; 2.483; 2.493; 2.503; 2.513; 2.523; 2.533; 2.543; 2.553; 
        2.563; 2.573; 2.583; 2.593; 2.603; 2.613; 2.623; 2.633; 2.643; 
        2.653; 2.663; 2.673; 2.683; 2.693; 2.703; 2.742; 2.752; 2.762; 
        2.772; 2.782; 2.792; 2.802; and 2.812, are repealed. 
           Subd. 2.  [OBSOLETE ARMORED CARRIER PROVISIONS.] Minnesota 
        Statutes 2002, sections 221.121, subdivision 6g, and 221.153, 
        subdivision 3, are repealed. 
           Subd. 3.  [REDUNDANT SECTION.] Minnesota Statutes 2002, 
        section 356.58, is repealed. 
           Subd. 4.  [OBSOLETE REPORT.] Minnesota Statutes 2002, 
        section 609.668, subdivision 7, is repealed. 
           Subd. 5.  [CONFLICT; FIRE AND POLICE INSURANCE LANGUAGE.] 
        Laws 1997, chapter 233, article 1, section 12, is repealed. 
           Subd. 6.  [CONFLICT; REGISTRATION FORM; DOMESTIC LIMITED 
        LIABILITY COMPANY.] Laws 2000, chapter 395, section 13, 
        subdivision 3, is repealed effective January 1, 2001. 
           Subd. 7.  [CONFLICT; AGRICULTURAL LIENS.] Laws 2001, 
        chapter 195, article 2, section 35, is repealed. 
           Subd. 8.  [REDUNDANT SOCIAL SECURITY DEFINITION.] Laws 
        2002, chapter 243, section 2, is repealed. 
           Subd. 9.  [CONFLICT; WORKERS' COMPENSATION INSURANCE 
        LANGUAGE.] Laws 2002, chapter 374, article 8, section 2, is 
        repealed. 
           Subd. 10.  [CONFLICT; REDEVELOPMENT PROJECTS 
        LANGUAGE.] Laws 2002, chapter 380, article 4, section 1, is 
        repealed. 
           Subd. 11.  [CONFLICT; STATE RETIREMENT SYSTEMS 
        LANGUAGE.] Laws 2002, chapter 392, article 12, section 1, is 
        repealed. 
           Subd. 12.  [OBSOLETE BOARD OF BOXING RULES.] Minnesota 
        Rules, parts 2200.0100; 2200.0200; 2200.0300; 2200.0400; 
        2200.0500; 2200.0600; 2200.0700; 2200.0800; 2200.0900; 
        2200.1000; 2200.1100; 2200.1200; 2200.1300; 2200.1400; 
        2200.1500; 2200.1600; 2200.1700; 2200.1800; 2200.1900; 
        2200.2000; 2200.2100; 2200.3100; 2200.3200; 2200.3300; 
        2200.3410; 2200.3500; 2200.3600; 2200.3700; 2200.3800; 
        2200.3900; 2200.4000; 2200.4100; 2200.4200; 2200.4300; 
        2200.4400; 2200.5000; 2200.5100; 2200.5200; 2200.5300; 
        2200.5310; 2200.5400; 2200.5500; 2200.6000; 2200.6100; 
        2200.6200; 2200.6300; 2200.6400; 2200.6500; 2200.6600; 
        2200.6700; 2200.6800; 2200.6900; 2200.7000; 2200.7100; 
        2200.7200; 2200.7300; 2200.7400; 2200.7500; 2200.7600; 
        2200.7700; 2200.7800; 2200.7900; 2200.8000; 2200.8100; 
        2200.8200; 2200.8300; 2200.8400; 2200.8500; 2200.9000; 
        2200.9100; 2200.9200; 2200.9300; 2200.9400; 2200.9500; 
        2200.9600; 2200.9700; 2200.9800; 2205.0100; 2205.0200; 
        2205.0300; 2205.0400; 2205.0500; 2205.0600; 2205.0700; 
        2205.0800; 2205.0900; 2205.1000; 2205.1100; 2205.1200; 
        2205.1300; 2205.1400; and 2205.1500, are repealed. 
           Subd. 13.  [OBSOLETE HIGHER EDUCATION RULES.] Minnesota 
        Rules, parts 4830.6000; 4830.6100; 4830.6200; 4830.6300; and 
        4830.6400, are repealed. 
           Subd. 14.  [REVISOR INSTRUCTION; OBSOLETE DNR FORMS.] 
        Minnesota Rules, part 6100.6000, is repealed.  The revisor of 
        statutes shall delete references to part 6100.6000 found in 
        Minnesota Rules. 

                                   ARTICLE 2
                      OBSOLETE LANDLORD-TENANT TERMINOLOGY
           Section 1.  Minnesota Statutes 2002, section 13.585, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONFIDENTIAL DATA.] The following data on 
        individuals maintained by the housing agency are classified as 
        confidential data, pursuant to section 13.02, subdivision 3:  
        correspondence between the agency and the agency's attorney 
        containing data collected as part of an active investigation 
        undertaken for the purpose of the commencement or defense of 
        potential or actual litigation, including but not limited to:  
        referrals to the office of the inspector general or other 
        prosecuting agencies for possible prosecution for fraud; 
        initiation of lease terminations and unlawful detainer eviction 
        actions; admission denial hearings concerning prospective 
        tenants; commencement of actions against independent contractors 
        of the agency; and tenant grievance hearings.  
           Sec. 2.  Minnesota Statutes 2002, section 256B.501, 
        subdivision 11, is amended to read: 
           Subd. 11.  [INVESTMENT PER BED LIMITS, INTEREST EXPENSE 
        LIMITATIONS, AND ARM'S-LENGTH LEASES.] (a) The provisions of 
        Minnesota Rules, part 9553.0075, except as modified under this 
        subdivision, shall apply to newly constructed or established 
        facilities that are certified for medical assistance on or after 
        May 1, 1990.  
           (b) For purposes of establishing payment rates under this 
        subdivision and Minnesota Rules, parts 9553.0010 to 9553.0080, 
        the term "newly constructed or newly established" means a 
        facility (1) for which a need determination has been approved by 
        the commissioner under sections 252.28 and 252.291; (2) whose 
        program is newly licensed under Minnesota Rules, parts 9525.0215 
        to 9525.0355, and certified under Code of Federal Regulations, 
        title 42, section 442.400, et seq.; and (3) that is part of a 
        proposal that meets the requirements of section 252.291, 
        subdivision 2, paragraph (2).  The term does not include a 
        facility for which a need determination was granted solely for 
        other reasons such as the relocation of a facility; a change in 
        the facility's name, program, number of beds, type of beds, or 
        ownership; or the sale of a facility, unless the relocation of a 
        facility to one or more service sites is the result of a closure 
        of a facility under section 252.292, in which case clause (3) 
        shall not apply.  The term does include a facility that converts 
        more than 50 percent of its licensed beds from class A to class 
        B residential or class B institutional to serve persons 
        discharged from state regional treatment centers on or after May 
        1, 1990, in which case clause (3) does not apply.  
           (c) Newly constructed or newly established facilities that 
        are certified for medical assistance on or after May 1, 1990, 
        shall be allowed the capital asset investment per bed limits as 
        provided in clauses (1) to (4).  
           (1) The 1990 calendar year investment per bed limit for a 
        facility's land must not exceed $5,700 per bed for newly 
        constructed or newly established facilities in Hennepin, Ramsey, 
        Anoka, Washington, Dakota, Scott, Carver, Chisago, Isanti, 
        Wright, Benton, Sherburne, Stearns, St. Louis, Clay, and Olmsted 
        counties, and must not exceed $3,000 per bed for newly 
        constructed or newly established facilities in other counties.  
           (2) The 1990 calendar year investment per bed limit for a 
        facility's depreciable capital assets must not exceed $44,800 
        for class B residential beds, and $45,200 for class B 
        institutional beds.  
           (3) The investment per bed limit in clause (2) must not be 
        used in determining the three-year average percentage increase 
        adjustment in Minnesota Rules, part 9553.0060, subpart 1, item 
        C, subitem (4), for facilities that were newly constructed or 
        newly established before May 1, 1990.  
           (4) The investment per bed limits in clause (2) and 
        Minnesota Rules, part 9553.0060, subpart 1, item C, subitem (2) 
        shall be adjusted annually beginning January 1, 1991, and each 
        January 1 following, as provided in Minnesota Rules, part 
        9553.0060, subpart 1, item C, subitem (2), except that the index 
        utilized will be the Bureau of the Census:  Composite 
        fixed-weighted price index as published in the Survey of Current 
        Business.  
           (d) A newly constructed or newly established facility's 
        interest expense limitation as provided for in Minnesota Rules, 
        part 9553.0060, subpart 3, item F, on capital debt for capital 
        assets acquired during the interim or settle-up period, shall be 
        increased by 2.5 percentage points for each full .25 percentage 
        points that the facility's interest rate on its mortgage is 
        below the maximum interest rate as established in Minnesota 
        Rules, part 9553.0060, subpart 2, item A, subitem (2).  For all 
        following rate periods, the interest expense limitation on 
        capital debt in Minnesota Rules, part 9553.0060, subpart 3, item 
        F, shall apply to the facility's capital assets acquired, 
        leased, or constructed after the interim or settle-up period.  
        If a newly constructed or newly established facility is acquired 
        by the state, the limitations of this paragraph and Minnesota 
        Rules, part 9553.0060, subpart 3, item F, shall not apply.  
           (e) If a newly constructed or newly established facility is 
        leased with an arm's-length lease as provided for in Minnesota 
        Rules, part 9553.0060, subpart 7, the lease agreement shall be 
        subject to the following conditions:  
           (1) the term of the lease, including option periods, must 
        not be less than 20 years; 
           (2) the maximum interest rate used in determining the 
        present value of the lease must not exceed the lesser of the 
        interest rate limitation in Minnesota Rules, part 9553.0060, 
        subpart 2, item A, subitem (2), or 16 percent; and 
           (3) the residual value used in determining the net present 
        value of the lease must be established using the provisions of 
        Minnesota Rules, part 9553.0060.  
           (f) All leases of the physical plant of an intermediate 
        care facility for the mentally retarded shall contain a clause 
        that requires the owner to give the commissioner notice of any 
        requests or orders to vacate the premises 90 days before such 
        vacation of the premises is to take place.  In the case of 
        unlawful detainer eviction actions, the owner shall notify the 
        commissioner within three days of notice of an unlawful detainer 
        eviction action being served upon the tenant.  The only 
        exception to this notice requirement is in the case of 
        emergencies where immediate vacation of the premises is 
        necessary to assure the safety and welfare of the residents.  In 
        such an emergency situation, the owner shall give the 
        commissioner notice of the request to vacate at the time the 
        owner of the property is aware that the vacating of the premises 
        is necessary.  This section applies to all leases entered into 
        after May 1, 1990.  Rentals set in leases entered into after 
        that date that do not contain this clause are not allowable 
        costs for purposes of medical assistance reimbursement.  
           (g) A newly constructed or newly established facility's 
        preopening costs are subject to the provisions of Minnesota 
        Rules, part 9553.0035, subpart 12, and must be limited to only 
        those costs incurred during one of the following periods, 
        whichever is shorter:  
           (1) between the date the commissioner approves the 
        facility's need determination and 30 days before the date the 
        facility is certified for medical assistance; or 
           (2) the 12-month period immediately preceding the 30 days 
        before the date the facility is certified for medical assistance.
           (h) The development of any newly constructed or newly 
        established facility as defined in this subdivision and 
        projected to be operational after July 1, 1991, by the 
        commissioner of human services shall be delayed until July 1, 
        1993, except for those facilities authorized by the commissioner 
        as a result of a closure of a facility according to section 
        252.292 prior to January 1, 1991, or those facilities developed 
        as a result of a receivership of a facility according to section 
        245A.12.  This paragraph does not apply to state-operated 
        community facilities authorized in section 252.50. 
           Sec. 3.  Minnesota Statutes 2002, section 325G.34, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LIMITS ON CONSUMER ACTIONS.] Violation of 
        section 325G.31 is not a defense to a claim arising from a 
        consumer's breach of a consumer contract or to an action for 
        unlawful detainer eviction.  A consumer may recover actual 
        damages caused by a violation of section 325G.31 only if the 
        violation caused the consumer to be substantially confused about 
        the rights, obligations or remedies of the contract.  
           Sec. 4.  Minnesota Statutes 2002, section 327C.07, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REPOSSESSING FINANCE PARTIES.] Any holder of a 
        security interest who repossesses a manufactured home located in 
        a park has the same rights as a resident to sell the home 
        through an in park sale if:  
           (a) as soon as the secured party either accepts voluntary 
        repossession or takes any action pursuant to sections 327.61 to 
        327.67, the secured party notifies the park owner that the home 
        has been or is being repossessed; 
           (b) at the time the park owner receives the notice, the 
        park owner has not already recovered possession of the lot 
        through an unlawful detainer eviction proceeding; 
           (c) the secured party pays any past due lot rent not to 
        exceed three months rent; 
           (d) the secured party makes monthly lot rent payments until 
        a buyer of the repossessed home has been approved by the park 
        owner as a resident.  A secured party's liability for past due 
        rent under this subdivision does not include late fees or other 
        charges; and 
           (e) the secured party complies with all park rules relating 
        to lot and home maintenance.  
           A secured party who is offering a home for in park sale 
        under this subdivision is subject to eviction on the same 
        grounds as a resident.  
           Sec. 5.  Minnesota Statutes 2002, section 487.17, is 
        amended to read: 
           487.17 [FORCIBLE ENTRY AND UNLAWFUL DETAINER EVICTION.] 
           Whether or not title to real estate is involved, the county 
        court has jurisdiction of actions of forcible entry and unlawful 
        detainer eviction or actions for unlawful removal or exclusion 
        pursuant to section 504B.375, involving land located wholly or 
        partly within the county court district and of actions seeking 
        relief for code violations pursuant to sections 504B.185 and 
        504B.381 to 504B.471 involving premises located wholly or partly 
        within the county court district. 
           Sec. 6.  Minnesota Statutes 2002, section 487.24, is 
        amended to read: 
           487.24 [FORCIBLE ENTRY AND UNLAWFUL DETAINER EVICTION 
        ACTIONS.] 
           Subdivision 1.  [RETURN DAYS.] Return days for forcible 
        entry and unlawful detainer eviction actions may be fixed by 
        rule promulgated by the court. 
           Subd. 2.  [PROCEDURE; FORMS.] Sections 504B.281 to 504B.371 
        apply to the county court.  The forms therein prescribed, with 
        appropriate modifications, may be used. 
           Subd. 3.  [DEFAULT JUDGMENTS.] Whenever a duly verified 
        complaint in an action of forcible entry or unlawful detainer 
        eviction shows one of the causes of action set forth in section 
        504B.285, and on the return day of the summons the defendant 
        does not appear, the judge of the county court, upon proof of 
        the due service of the summons, may find the defendant in 
        default and file an order for judgment accordingly. 
           Sec. 7.  Minnesota Statutes 2002, section 488A.01, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FORCIBLE ENTRY AND UNLAWFUL DETAINER EVICTION OR 
        UNLAWFUL REMOVAL OR EXCLUSION.] Whether or not the title to real 
        estate is involved, the court has jurisdiction of actions 
        of forcible entry and unlawful detainer eviction or actions for 
        unlawful removal or exclusion pursuant to section 504B.375, 
        involving land located wholly or in part within Hennepin county 
        and, notwithstanding any provision of subdivision 7 to the 
        contrary, of actions seeking relief for code violations pursuant 
        to sections 504B.185 and 504B.381 to 504B.471 involving premises 
        located wholly or partly within Hennepin county. 
           Sec. 8.  Minnesota Statutes 2002, section 488A.03, 
        subdivision 11, is amended to read: 
           Subd. 11.  [FEES PAYABLE TO ADMINISTRATOR.] (a) The civil 
        fees payable to the administrator for services are the same in 
        amount as the fees then payable to the district court of 
        Hennepin county for like services.  Library and filing fees are 
        not required of the defendant in an unlawful detainer eviction 
        action.  The fees payable to the administrator for all other 
        services of the administrator or the court shall be fixed by 
        rules promulgated by a majority of the judges. 
           (b) Fees are payable to the administrator in advance.  
           (c) Judgments will be entered only upon written application.
           (d) The following fees shall be taxed for all charges filed 
        in court where applicable:  (a) The state of Minnesota and any 
        governmental subdivision within the jurisdictional area of any 
        district court herein established may present cases for hearing 
        before said district court; (b) In the event the court takes 
        jurisdiction of a prosecution for the violation of a statute or 
        ordinance by the state or a governmental subdivision other than 
        a city or town in Hennepin county, all fines, penalties, and 
        forfeitures collected shall be paid over to the treasurer of the 
        governmental subdivision which submitted charges for prosecution 
        under ordinance violation and to the county treasurer in all 
        other charges except where a different disposition is provided 
        by law, in which case, payment shall be made to the public 
        official entitled thereto.  The following fees shall be taxed to 
        the county or to the state or governmental subdivision which 
        would be entitled to payment of the fines, forfeiture or 
        penalties in any case, and shall be paid to the court 
        administrator for disposing of the matter: 
           (1) For each charge where the defendant is brought into 
        court and pleads guilty and is sentenced, or the matter is 
        otherwise disposed of without trial .......... $5. 
           (2) In arraignments where the defendant waives a 
        preliminary examination .......... $10. 
           (3) For all other charges where the defendant stands trial 
        or has a preliminary examination by the court .......... $15. 
           (e) This paragraph applies to the distribution of fines 
        paid by defendants without a court appearance in response to a 
        citation.  On or before the tenth day after the last day of the 
        month in which the money was collected, the county treasurer 
        shall pay 80 percent of the fines to the treasurer of the 
        municipality or subdivision within the county where the 
        violation was committed.  The remainder of the fines shall be 
        credited to the general revenue fund of the county.  
           Sec. 9.  Minnesota Statutes 2002, section 488A.03, 
        subdivision 13, is amended to read: 
           Subd. 13.  [DESTRUCTION OF RECORDS.] (a) Upon order of all 
        the judges the court administrator may destroy or dispose of all 
        of the following types of files and records of the court which 
        are more than ten years old: 
           (1) garnishment files, uncontested, 
           (2) motion calendars, special term, 
           (3) unlawful detainer calendars, special term, 
           (4) garnishment calendars, special term, 
           (5) general term calendars, 
           (6) court reporters note books, 
           (7) receipt books for prisoners, 
           (8) old receipt books for probation department, 
           (9) criminal and ordinance violations files, 
           (10) cash books, 
           (11) depositions, 
           (12) traffic tags. 
           (b) Upon order of all the judges and upon ten days' written 
        notice to the president of the Hennepin county historical 
        society, the court administrator may destroy or dispose of all 
        files of civil or garnishment actions and actions of forcible 
        entry or, unlawful detainer, or eviction which were commenced 
        more than 20 years prior to the judges' order and in which no 
        proceedings have occurred within ten years prior to the judges' 
        order. 
           Sec. 10.  Minnesota Statutes 2002, section 488A.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SERVICE OF PAPERS.] No bailiff shall serve or 
        receive for service any summons or other paper in any forcible 
        entry, unlawful detainer eviction or civil action until the 
        complaint has been filed with the court administrator.  The 
        bailiff to whom a summons or other paper is delivered for 
        service shall make a prompt return to the court administrator 
        showing whether or not it has been served and if not served the 
        reason therefor. 
           Sec. 11.  Minnesota Statutes 2002, section 488A.06, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FEES AND MILEAGE.] The fees and mileage of 
        bailiffs in civil actions and actions of forcible entry and 
        unlawful detainer eviction are the same as those payable to the 
        sheriff of Hennepin county for like services for district court 
        actions.  The fees and mileage for all other services of 
        bailiffs shall be fixed by rules promulgated by a majority of 
        the judges.  The fee provided for by chapter 349 of the Laws of 
        1953 is not payable.  No fees or mileage are payable by the 
        state, county or city to bailiffs for their services, except 
        that the county may pay bailiffs for automobile mileage within 
        the limits provided by law when the bailiffs furnish automobiles 
        for use in the performance of their duties.  Bailiffs shall make 
        returns showing their fees and mileage after performing such 
        services.  The amount of the bailiffs' fees and mileage is 
        payable to the sheriff in advance.  
           Sec. 12.  Minnesota Statutes 2002, section 488A.11, is 
        amended to read: 
           488A.11 [FORCIBLE ENTRY AND UNLAWFUL DETAINER EVICTION 
        ACTIONS.] 
           Subdivision 1.  [RETURN DAYS.] Return days for forcible 
        entry and unlawful detainer eviction actions may be fixed by 
        rule promulgated by a majority of the judges.  
           Subd. 2.  [PROCEDURE; FORMS.] Sections 504B.281 to 504B.371 
        apply to the court.  The forms therein prescribed, with 
        appropriate modifications, may be used. 
           Subd. 3.  [DEFAULT JUDGMENTS.] Whenever a duly verified 
        complaint in an action of forcible entry or unlawful detainer 
        eviction shows one of the causes of action set forth in section 
        504B.285 and on the return day of the summons the defendant does 
        not appear, the judge, upon proof of the due service of the 
        summons, shall enter an order adjudging the defendant to be in 
        default, and thereafter the court administrator shall enter 
        judgment for the plaintiff without the introduction of evidence. 
           Sec. 13.  Minnesota Statutes 2002, section 488A.18, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FORCIBLE ENTRY AND UNLAWFUL DETAINER EVICTION OR 
        UNLAWFUL REMOVAL OR EXCLUSION.] Whether or not the title to real 
        estate is involved, the court has jurisdiction of actions 
        of forcible entry and unlawful detainer eviction or actions for 
        unlawful removal or exclusion pursuant to section 504B.375, 
        involving land located wholly or in part within Ramsey county 
        and, notwithstanding any provision of subdivision 8 to the 
        contrary, of actions seeking relief for code violations pursuant 
        to sections 504B.185 and 504B.381 to 504B.471 involving premises 
        located wholly or partly within Ramsey county. 
           Sec. 14.  Minnesota Statutes 2002, section 488A.28, is 
        amended to read: 
           488A.28 [FORCIBLE ENTRY AND UNLAWFUL DETAINER EVICTION 
        ACTIONS.] 
           Subdivision 1.  [PROCEDURE.] The general laws applicable to 
        forcible entry and unlawful detainer eviction actions shall 
        apply to this court, and the forms as prescribed in the general 
        laws may be used with such appropriate modifications as may be 
        necessary for this court.  
           Subd. 2.  [RETURN DAYS.] Return days for forcible entry and 
        unlawful detainer eviction actions may be fixed by rules 
        promulgated by a majority of the judges.  
           Subd. 3.  [DEFAULT JUDGMENTS.] Whenever a duly verified 
        complaint in a forcible entry and unlawful detainer an eviction 
        action shows one of the causes of action as set forth by general 
        statute, and on the return day of the summons the defendant does 
        not appear, the judge, upon proof of the due service of the 
        summons, shall enter an order adjudging the defendant to be in 
        default, and thereafter the administrator shall enter judgment 
        for the plaintiff without the introduction of evidence.  
           Subd. 4.  [TRIALS.] Forcible entry and unlawful 
        detainer Eviction actions, which are contested, shall be given 
        precedence over all other civil matters in trial settings.  
           Sec. 15.  Minnesota Statutes 2002, section 491A.01, 
        subdivision 4, is amended to read: 
           Subd. 4.  [JURISDICTION; EXCLUSIONS.] The conciliation 
        court does not have jurisdiction over the following actions: 
           (1) involving title to real estate, including actions to 
        determine boundary lines; 
           (2) involving claims of defamation by libel or slander; 
           (3) for specific performance, except to the extent 
        authorized in subdivision 5; 
           (4) brought or defended on behalf of a class; 
           (5) requesting or involving prejudgment remedies; 
           (6) involving injunctive relief, except to the extent 
        authorized in subdivision 5; 
           (7) pursuant to chapters 256, 257, 259, 260, 518, 518A, 
        518B, and 518C, except for actions involving debts owed to state 
        agencies or political subdivisions that arise under those 
        chapters; 
           (8) pursuant to chapters 524 and 525; 
           (9) where jurisdiction is vested exclusively in another 
        court or division of district court; 
           (10) for unlawful detainer eviction; and 
           (11) involving medical malpractice. 
           Sec. 16.  Minnesota Statutes 2002, section 515B.3-116, is 
        amended to read: 
           515B.3-116 [LIEN FOR ASSESSMENTS.] 
           (a) The association has a lien on a unit for any assessment 
        levied against that unit from the time the assessment becomes 
        due.  If an assessment is payable in installments, the full 
        amount of the assessment is a lien from the time the first 
        installment thereof becomes due.  Unless the declaration 
        otherwise provides, fees, charges, late charges, fines and 
        interest charges pursuant to section 515B.3-102(a)(10), (11) and 
        (12) are liens, and are enforceable as assessments, under this 
        section.  
           (b) A lien under this section is prior to all other liens 
        and encumbrances on a unit except (i) liens and encumbrances 
        recorded before the declaration and, in a cooperative, liens and 
        encumbrances which the association creates, assumes, or takes 
        subject to, (ii) any first mortgage encumbering the fee simple 
        interest in the unit, or, in a cooperative, any first security 
        interest encumbering only the unit owner's interest in the unit, 
        and (iii) liens for real estate taxes and other governmental 
        assessments or charges against the unit.  If a first mortgage on 
        a unit is foreclosed, the first mortgage was recorded after June 
        1, 1994, and no owner redeems during the owner's period of 
        redemption provided by chapter 580, 581, or 582, the holder of 
        the sheriff's certificate of sale from the foreclosure of the 
        first mortgage shall take title to the unit subject to a lien in 
        favor of the association for unpaid assessments for common 
        expenses levied pursuant to section 515B.3-115(a), (e)(1) to 
        (3), (f), and (i) which became due, without acceleration, during 
        the six months immediately preceding the first day following the 
        end of the owner's period of redemption.  If a first security 
        interest encumbering a unit owner's interest in a cooperative 
        unit which is personal property is foreclosed, the secured party 
        or the purchaser at the sale shall take title to the unit 
        subject to unpaid assessments for common expenses levied 
        pursuant to section 515B.3-115(a), (e)(1) to (3), (f), and (i) 
        which became due, without acceleration, during the six months 
        immediately preceding the first day following either the 
        disposition date pursuant to section 336.9-610 or the date on 
        which the obligation of the unit owner is discharged pursuant to 
        section 336.9-622.  This subsection shall not affect the 
        priority of mechanics' liens. 
           (c) Recording of the declaration constitutes record notice 
        and perfection of any lien under this section, and no further 
        recordation of any notice of or claim for the lien is required. 
           (d) Proceedings to enforce an assessment lien shall be 
        instituted within three years after the last installment of the 
        assessment becomes payable, or shall be barred. 
           (e) The unit owner of a unit at the time an assessment is 
        due shall be personally liable to the association for payment of 
        the assessment levied against the unit.  If there are multiple 
        owners of the unit, they shall be jointly and severally liable. 
           (f) This section does not prohibit actions to recover sums 
        for which subsection (a) creates a lien nor prohibit an 
        association from taking a deed in lieu of foreclosure.  The 
        commencement of an action to recover the sums is not an election 
        of remedies if it is dismissed before commencement of 
        foreclosure of the lien provided for by this section.  
           (g) The association shall furnish to a unit owner or the 
        owner's authorized agent upon written request of the unit owner 
        or the authorized agent a statement setting forth the amount of 
        unpaid assessments currently levied against the owner's unit.  
        If the unit owner's interest is real estate, the statement shall 
        be in recordable form.  The statement shall be furnished within 
        ten business days after receipt of the request and is binding on 
        the association and every unit owner. 
           (h) The association's lien may be foreclosed as provided in 
        this subsection. 
           (1) In a condominium or planned community, the 
        association's lien may be foreclosed in a like manner as a 
        mortgage containing a power of sale pursuant to chapter 580, or 
        by action pursuant to chapter 581.  The association shall have a 
        power of sale to foreclose the lien pursuant to chapter 580.  
           (2) In a cooperative whose unit owners' interests are real 
        estate, the association's lien shall be foreclosed in a like 
        manner as a mortgage on real estate as provided in paragraph (1).
           (3) In a cooperative whose unit owners' interests in the 
        units are personal property, the association's lien shall be 
        foreclosed in a like manner as a security interest under article 
        9 of chapter 336.  In any disposition pursuant to section 
        336.9-610 or retention pursuant to sections 336.9-620 to 
        336.9-622, the rights of the parties shall be the same as those 
        provided by law, except (i) notice of sale, disposition, or 
        retention shall be served on the unit owner 90 days prior to 
        sale, disposition, or retention, (ii) the association shall be 
        entitled to its reasonable costs and attorney fees not exceeding 
        the amount provided by section 582.01, subdivision 1a, (iii) the 
        amount of the association's lien shall be deemed to be adequate 
        consideration for the unit subject to disposition or retention, 
        notwithstanding the value of the unit, and (iv) the notice of 
        sale, disposition, or retention shall contain the following 
        statement in capital letters with the name of the association or 
        secured party filled in: 
           "THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of 
        association or secured party) HAS BEGUN PROCEEDINGS UNDER 
        MINNESOTA STATUTES, CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST 
        IN YOUR UNIT FOR THE REASON SPECIFIED IN THIS NOTICE.  YOUR 
        INTEREST IN YOUR UNIT WILL TERMINATE 90 DAYS AFTER SERVICE OF 
        THIS NOTICE ON YOU UNLESS BEFORE THEN: 
           (a) THE PERSON AUTHORIZED BY (fill in the name of 
        association or secured party) AND DESCRIBED IN THIS NOTICE TO 
        RECEIVE PAYMENTS RECEIVES FROM YOU: 
           (1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS 
           (2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS 
           (3) $500 TO APPLY TO ATTORNEYS FEES ACTUALLY EXPENDED OR 
        INCURRED; PLUS 
           (4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO 
        (fill in name of association or secured party) AFTER THE DATE OF 
        THIS NOTICE; OR 
           (b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 
        FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR 
        CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR 
        SETTLEMENT.  YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 
        GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES. 
           IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS 
        WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP 
        RIGHTS IN YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU 
        WILL LOSE ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL 
        LOSE YOUR RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR 
        RIGHT TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND 
        YOU WILL BE EVICTED.  IF YOU HAVE ANY QUESTIONS ABOUT THIS 
        NOTICE, CONTACT AN ATTORNEY IMMEDIATELY." 
           (4) In any foreclosure pursuant to chapter 580, 581, or 
        582, the rights of the parties shall be the same as those 
        provided by law, except (i) the period of redemption for unit 
        owners shall be six months from the date of sale or a lesser 
        period authorized by law, (ii) in a foreclosure by advertisement 
        under chapter 580, the foreclosing party shall be entitled to 
        costs and disbursements of foreclosure and attorneys fees 
        authorized by the declaration or bylaws, notwithstanding the 
        provisions of section 582.01, subdivisions 1 and 1a, (iii) in a 
        foreclosure by action under chapter 581, the foreclosing party 
        shall be entitled to costs and disbursements of foreclosure and 
        attorneys fees as the court shall determine, and (iv) the amount 
        of the association's lien shall be deemed to be adequate 
        consideration for the unit subject to foreclosure, 
        notwithstanding the value of the unit. 
           (i) If a holder of a sheriff's certificate of sale, prior 
        to the expiration of the period of redemption, pays any past due 
        or current assessments, or any other charges lienable as 
        assessments, with respect to the unit described in the sheriff's 
        certificate, then the amount paid shall be a part of the sum 
        required to be paid to redeem under section 582.03. 
           (j) In a cooperative, following foreclosure, the 
        association may bring an action for unlawful detainer eviction 
        against the unit owner and any persons in possession of the 
        unit, and in that case section 504B.291 shall not apply. 
           (k) An association may assign its lien rights in the same 
        manner as any other secured party. 
           Sec. 17.  Minnesota Statutes 2002, section 557.09, is 
        amended to read: 
           557.09 [FORCIBLE ENTRY EVICTION; TREBLE DAMAGES.] 
           In case of forcible entry and detention eviction, if a 
        person, claiming in good faith, under color of title, to be 
        rightfully in possession, so put out or kept out, shall recover 
        damages therefor, judgment may be entered in that person's favor 
        for three times the amount at which the actual damages are 
        assessed. 
           Sec. 18.  Minnesota Statutes 2002, section 609.33, 
        subdivision 6, is amended to read: 
           Subd. 6.  [PRETRIAL RELEASE.] When a person is charged 
        under this section with owning or leasing a disorderly house, 
        the court may require as a condition of pretrial release that 
        the defendant bring an unlawful detainer eviction action against 
        a lessee who has violated the covenant not to allow drugs 
        established by section 504B.171. 
           Sec. 19.  Minnesota Statutes 2002, section 609.5317, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RENTAL PROPERTY.] (a) When contraband or a 
        controlled substance manufactured, distributed, or acquired in 
        violation of chapter 152 is seized on residential rental 
        property incident to a lawful search or arrest, the county 
        attorney shall give the notice required by this subdivision to 
        (1) the landlord of the property or the fee owner identified in 
        the records of the county assessor, and (2) the agent authorized 
        by the owner to accept service pursuant to section 504B.181.  
        The notice is not required during an ongoing investigation.  The 
        notice shall state what has been seized and specify the 
        applicable duties and penalties under this subdivision.  The 
        notice shall state that the landlord who chooses to assign the 
        right to bring an unlawful detainer eviction action retains all 
        rights and duties, including removal of a tenant's personal 
        property following issuance of the writ of restitution and 
        delivery of the writ to the sheriff for execution.  The notice 
        shall also state that the landlord may contact the county 
        attorney if threatened by the tenant.  Notice shall be sent by 
        certified letter, return receipt requested, within 30 days of 
        the seizure.  If receipt is not returned, notice shall be given 
        in the manner provided by law for service of summons in a civil 
        action. 
           (b) Within 15 days after notice of the first occurrence, 
        the landlord shall bring, or assign to the county attorney of 
        the county in which the real property is located, the right to 
        bring an unlawful detainer eviction action against the tenant.  
        The assignment must be in writing on a form prepared by the 
        county attorney.  Should the landlord choose to assign the right 
        to bring an unlawful detainer eviction action, the assignment 
        shall be limited to those rights and duties up to and including 
        delivery of the writ of restitution to the sheriff for execution.
           (c) Upon notice of a second occurrence on any residential 
        rental property owned by the same landlord in the same county 
        and involving the same tenant, and within one year after notice 
        of the first occurrence, the property is subject to forfeiture 
        under sections 609.531, 609.5311, 609.5313, and 609.5315, unless 
        an unlawful detainer eviction action has been commenced as 
        provided in paragraph (b) or the right to bring an unlawful 
        detainer eviction action was assigned to the county attorney as 
        provided in paragraph (b).  If the right has been assigned and 
        not previously exercised, or if the county attorney requests an 
        assignment and the landlord makes an assignment, the county 
        attorney may bring an unlawful detainer eviction action rather 
        than an action for forfeiture. 
           Sec. 20.  Minnesota Statutes 2002, section 609.5317, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DEFENSES.] It is a defense against a proceeding 
        under subdivision 1, paragraph (b), that the tenant had no 
        knowledge or reason to know of the presence of the contraband or 
        controlled substance or could not prevent its being brought onto 
        the property. 
           It is a defense against a proceeding under subdivision 1, 
        paragraph (c), that the landlord made every reasonable attempt 
        to evict a tenant or to assign the county attorney the right to 
        bring an unlawful detainer eviction action against the tenant, 
        or that the landlord did not receive notice of the seizure. 

                                   ARTICLE 3 
                                 DATA PRACTICES 
           Section 1.  Minnesota Statutes 2002, section 13.3806, 
        subdivision 4, is amended to read: 
           Subd. 4.  [VITAL STATISTICS.] (a)  [PARENTS' SOCIAL 
        SECURITY NUMBER; BIRTH RECORD.] Parents' social security numbers 
        provided for a child's birth record are classified under section 
        144.215, subdivision 4. 
           (b)  [FOUNDLING REGISTRATION.] The report of the finding of 
        an infant of unknown parentage is classified under section 
        144.216, subdivision 2. 
           (c)  [NEW RECORD OF BIRTH.] In circumstances in which a new 
        record of birth may be issued under section 144.218, the 
        original record of birth is classified as provided in that 
        section. 
           (d)  [VITAL RECORDS.] Physical access to vital records is 
        governed by section 144.225, subdivision 1.  
           (e)  [BIRTH RECORD OF CHILD OF UNMARRIED PARENTS.] Access 
        to the birth record of a child whose parents were not married to 
        each other when the child was conceived or born is governed by 
        sections 144.225, subdivisions 2 and 4, and 257.73. 
           (f)  [HEALTH DATA FOR BIRTH REGISTRATION.] Health data 
        collected for birth registration or fetal death reporting are 
        classified under section 144.225, subdivision 2a.  
           (g)  [BIRTH RECORD; SHARING.] Sharing of birth record data 
        and data prepared under section 257.75, is governed by section 
        144.225, subdivision 2b. 
           (h)  [GROUP PURCHASER IDENTITY FOR BIRTH REGISTRATION.] 
        Classification of and access to the identity of a group 
        purchaser collected in association with birth registration is 
        governed by section 144.225, subdivision 6.  
           Sec. 2.  Minnesota Statutes 2002, section 13.383, is 
        amended by adding a subdivision to read: 
           Subd. 11a.  [ALCOHOL AND DRUG COUNSELOR LICENSING; 
        SHARING.] Sharing of data collected for licensing of alcohol and 
        drug counselors is governed by section 148C.099, subdivision 2. 
           Sec. 3.  Minnesota Statutes 2002, section 13.4967, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [ASSIGNMENT OF REFUND.] Data regarding 
        assignment of individual income tax refunds is classified by 
        section 290.0679, subdivision 9. 
           Sec. 4.  Minnesota Statutes 2002, section 13.6905, is 
        amended by adding a subdivision to read: 
           Subd. 20a.  [CRIME PREVENTION AND PRIVACY COMPACT.] Data 
        sharing under the National Crime Prevention and Privacy Compact 
        is governed by section 299C.58. 
           Sec. 5.  Minnesota Statutes 2002, section 13.7191, 
        subdivision 6, is amended to read: 
           Subd. 6.  [INSURANCE PRODUCERS.] (a)  [LICENSING; 
        TERMINATION.] Access to data on insurance producer terminations 
        held by the commissioner of commerce is governed by section 
        60K.51. 
           (b)  [DATA SHARING.] Sharing of licensing and investigative 
        data on insurance producers is governed by section 60K.52. 
           Sec. 6.  Minnesota Statutes 2002, section 13.871, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CRIME VICTIMS.] (a)  [CRIME VICTIM NOTICE OF 
        RELEASE.] Data on crime victims who request notice of an 
        offender's release are classified under section 611A.06.  
           (b)  [SEX OFFENDER HIV TESTS.] Results of HIV tests of sex 
        offenders under section 611A.19, subdivision 2, are classified 
        under that section.  
           (c)  [BATTERED WOMEN.] Data on battered women maintained by 
        grantees for emergency shelter and support services for battered 
        women are governed by section 611A.32, subdivision 5.  
           (d)  [VICTIMS OF DOMESTIC ABUSE.] Data on battered women 
        and victims of domestic abuse maintained by grantees and 
        recipients of per diem payments for emergency shelter for 
        battered women and support services for battered women and 
        victims of domestic abuse are governed by sections 611A.32, 
        subdivision 5, and 611A.371, subdivision 3. 
           (e)  [PERSONAL HISTORY; INTERNAL AUDITING.] Certain 
        personal history and internal auditing data is classified by 
        section 611A.46. 
           (f)  [CRIME VICTIM CLAIMS FOR REPARATIONS.] Claims and 
        supporting documents filed by crime victims seeking reparations 
        are classified under section 611A.57, subdivision 6.  
           (f) (g)  [CRIME VICTIM OVERSIGHT ACT.] Data maintained by 
        the commissioner of public safety under the Crime Victim 
        Oversight Act are classified under section 611A.74, subdivision 
        2.  
           Sec. 7.  Minnesota Statutes 2002, section 13.871, 
        subdivision 6, is amended to read: 
           Subd. 6.  [TRAINING; INVESTIGATION; APPREHENSION; REPORTS.] 
        (a)  [REPORTS OF GUNSHOT WOUNDS.] Disclosure of the name of a 
        person making a report under section 626.52, subdivision 2, is 
        governed by section 626.53.  
           (b)  [CHILD ABUSE REPORT RECORDS.] Data contained in child 
        abuse report records are classified under section 626.556. 
           (c)  [INTERSTATE DATA EXCHANGE.] Disclosure of child abuse 
        reports to agencies of another state is classified under section 
        626.556, subdivision 10g. 
           (d)  [RELEASE TO FAMILY COURT SERVICES.] Release of child 
        abuse data to a court services agency is authorized under 
        section 626.556, subdivision 10h. 
           (e)  [RELEASE OF DATA TO MANDATED REPORTERS.] Release of 
        child abuse data to mandated reporters who have an ongoing 
        responsibility for the health, education, or welfare of a child 
        affected by the data is authorized under section 626.556, 
        subdivision 10j. 
           (f)  [RELEASE OF CHILD ABUSE INVESTIGATIVE RECORDS TO OTHER 
        COUNTIES.] Release of child abuse investigative records to local 
        welfare agencies is authorized under section 626.556, 
        subdivision 10k. 
           (g)  [CLASSIFYING AND SHARING RECORDS AND REPORTS OF CHILD 
        ABUSE.] The classification of child abuse data and the sharing 
        of records and reports of child abuse by and between local 
        welfare agencies and law enforcement agencies are governed under 
        section 626.556, subdivision 11. 
           (h)  [DISCLOSURE OF INFORMATION NOT REQUIRED IN CERTAIN 
        CASES.] Disclosure of certain data obtained from interviewing a 
        minor is governed by section 626.556, subdivision 11a. 
           (i)  [DATA RECEIVED FROM LAW ENFORCEMENT.] Classifying 
        child abuse data received by certain agencies from law 
        enforcement agencies is governed under section 626.556, 
        subdivision 11b. 
           (j)  [DISCLOSURE IN CHILD FATALITY CASES.] Disclosure of 
        information relating to a child fatality is governed under 
        section 626.556, subdivision 11d.  
           (k)  [REPORTS OF ALCOHOL ABUSE.] Data on persons making 
        reports under section 626.5563 are classified under section 
        626.5563, subdivision 5.  
           (l)  [VULNERABLE ADULT REPORT RECORDS.] Data contained in 
        vulnerable adult report records are classified under section 
        626.557, subdivision 12b.  
           (m)  [ADULT PROTECTION TEAM INFORMATION SHARING.] Sharing 
        of local welfare agency vulnerable adult data with a protection 
        team is governed by section 626.5571, subdivision 3. 
           (n)  [CHILD PROTECTION TEAM.] Data acquired by a case 
        consultation committee or subcommittee of a child protection 
        team are classified by section 626.558, subdivision 3.  
           (o)  [CHILD MALTREATMENT REPORTS PEER REVIEW PANEL.] 
        Sharing data of cases reviewed by the panel is governed under 
        section 626.5593, subdivision 2. 
           (p)  [PEACE OFFICER DISCIPLINE PROCEDURES.] Access by an 
        officer under investigation to the investigating agency's 
        investigative report on the officer is governed by section 
        626.89, subdivision 6.  
           (q)  [RACIAL PROFILING STUDY DATA.] Racial profiling study 
        data is governed by section 626.951. 

                                   ARTICLE 4
                         INTERSTATE COMMERCE COMMISSION
           Section 1.  Minnesota Statutes 2002, section 50.14, 
        subdivision 12, is amended to read: 
           Subd. 12.  Class eleven shall be the bonds of any 
        corporation which at the time of such investment is incorporated 
        under the laws of the United States or any state thereof, or the 
        District of Columbia, and authorized to engage, and engaging, in 
        the business of furnishing telephone service in the United 
        States, provided that such corporation is subject to regulation 
        by the Interstate Commerce Commission or a public utility 
        commission or other similar federal or state regulatory body 
        duly established by the laws of the United States or the states 
        or state in which such corporation operates, subject to the 
        following conditions: 
           (a) Such corporation shall have been in existence for a 
        period of not less than eight fiscal years and at no time within 
        such period of eight fiscal years next preceding the date of 
        such investment shall said corporation have failed to pay 
        promptly and regularly the matured principal and interest of all 
        its indebtedness direct, assumed or guaranteed, but the period 
        of life of the corporation, together with the period of life of 
        any predecessor corporation or corporations from which a 
        substantial portion of its property was acquired by 
        consolidation, merger, purchase or as a successor corporation, 
        shall be considered together in determining the required period; 
        and such corporation shall file with the commissioner of 
        commerce or make public in each year a statement and a report 
        giving the income account covering the previous fiscal year and 
        the balance sheet showing in reasonable detail the assets and 
        liabilities at the end of such fiscal year. 
           (b) The book value of the outstanding capital stock of such 
        corporation shall at the time of such investment be equal to at 
        least two-thirds of its total funded debt. 
           (c) For a period of five fiscal years next preceding the 
        date of such investment the net earnings of such corporation 
        shall have been each year not less than twice the annual 
        interest charges on its total funded debt applicable to that 
        period, and for such period, the gross operating revenues of any 
        such corporation shall have averaged per year not less than 
        $5,000,000. 
           (d) In determining the qualifications of any bond under 
        this subdivision where a corporation shall have acquired its 
        property or any substantial portion thereof within five years 
        immediately preceding the date of such investment by 
        consolidation, merger, purchase or as a successor corporation, 
        the gross operating revenues, net earnings and interest charges 
        of the predecessor or constituent corporations shall be 
        consolidated and adjusted so as to ascertain whether the 
        requirements of paragraph (c) have been complied with. 
           (e) The gross operating revenues and expenses of a 
        corporation for the purpose of this subdivision shall be 
        respectively the total amount earned from the operation of, and 
        the total expense of maintaining and operating, all property 
        owned and operated or leased and operated by such corporation, 
        as determined by the system of accounts prescribed by the 
        Interstate Commerce Commission or the public utility commission 
        or other similar federal or state regulatory body having 
        jurisdiction in the matter. 
           (f) The net earnings of a corporation for the purpose of 
        this subdivision shall be the balance obtained by deducting from 
        its gross operating revenues its operating and maintenance 
        expenses, taxes, other than federal and state income taxes, 
        rentals, depreciation and provision, for renewals and 
        retirements of the physical assets of the corporation, and by 
        adding to said balance its income from securities and 
        miscellaneous sources, but not, however, to exceed 15 percent of 
        said balance.  The term "funded debt" shall be construed to mean 
        all interest-bearing debt excepting therefrom unsecured 
        obligations maturing within one year of date of issue. 
           (g) Such bonds must be a part of an original issue or of a 
        subsequent series of bonds of the aggregate amount of not less 
        than $5,000,000, both the original issue and the subsequent 
        series being protected by the same mortgage provisions, and must 
        be secured by a first or refunding mortgage, and the aggregate 
        principal amount of bonds secured by such first or refunding 
        mortgage plus the principal amount of all the underlying 
        outstanding bonds shall not exceed 60 percent of the value of 
        the property, real and personal, owned absolutely as shown by 
        the books of the corporation and subject to the lien of such 
        mortgage, provided that if a refunding mortgage, it must provide 
        for the retirement of all bonds secured by prior liens on the 
        property.  Not more than 33-1/3 percent of the property 
        constituting the specific security for such bonds may consist of 
        stock or unsecured obligations of affiliated or other telephone 
        companies, or both.  No such savings banks shall loan upon or 
        invest in bonds of such telephone companies in an amount 
        exceeding in the aggregate ten percent of its deposits and 
        surplus, nor exceeding five percent thereof in the bonds of any 
        one telephone company. 
           Sec. 2.  Minnesota Statutes 2002, section 85.015, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DOUGLAS TRAIL, OLMSTED, WABASHA, AND GOODHUE 
        COUNTIES.] (a) The trail shall originate at Rochester in Olmsted 
        county and shall follow the route of the Chicago Great Western 
        Railroad to Pine Island in Goodhue county and there terminate.  
           (b) Additional trails may be established that extend the 
        Douglas trail system to include Pine Island, Mazeppa in Wabasha 
        county to Zumbrota, Bellechester, Goodhue, and Red Wing in 
        Goodhue county.  In addition to the criteria in section 86A.05, 
        subdivision 4, these trails must utilize abandoned railroad 
        rights-of-way where possible.  
           (c) The trail shall be developed primarily for riding and 
        hiking.  
           (d) Under no circumstances shall the commissioner acquire 
        any of the right-of-way of the Chicago Great Western Railroad 
        until the abandonment of the line of railway described in this 
        subdivision has been approved by the Surface Transportation 
        Board or the former Interstate Commerce Commission. 
           Sec. 3.  Minnesota Statutes 2002, section 85.015, 
        subdivision 10, is amended to read: 
           Subd. 10.  [LUCE LINE TRAIL.] (a) The trail shall originate 
        at Gleason Lake in Plymouth Village, Hennepin county, and shall 
        follow the route of the Chicago Northwestern Railroad. 
           (b) The trail shall be developed for multiuse wherever 
        feasible.  The department shall cooperate in maintaining its 
        integrity for modes of use consistent with local ordinances.  
           (c) In establishing, developing, maintaining, and operating 
        the trail, the commissioner shall cooperate with local units of 
        government and private individuals and groups.  Before acquiring 
        any parcel of land for the trail, the commissioner of natural 
        resources shall develop a management program for the parcel and 
        conduct a public hearing on the proposed management program in 
        the vicinity of the parcel to be acquired.  The management 
        program of the commissioner shall include but not be limited to 
        the following:  (a) fencing of portions of the trail where 
        necessary to protect adjoining landowners; and (b) the 
        maintenance of the trail in a litter free condition to the 
        extent practicable.  
           (d) The commissioner shall not acquire any of the 
        right-of-way of the Chicago Northwestern Railway Company until 
        the abandonment of the line described in this subdivision has 
        been approved by the Surface Transportation Board or the former 
        Interstate Commerce Commission.  Compensation, in addition to 
        the value of the land, shall include improvements made by the 
        railroad, including but not limited to, bridges, trestles, 
        public road crossings, or any portion thereof, it being the 
        desire of the railroad that such improvements be included in the 
        conveyance.  The fair market value of the land and improvements 
        shall be recommended by two independent appraisers mutually 
        agreed upon by the parties.  The fair market value thus 
        recommended shall be reviewed by a review appraiser agreed to by 
        the parties, and the fair market value thus determined, and 
        supported by appraisals, may be the purchase price.  The 
        commissioner may exchange lands with landowners abutting the 
        right-of-way described in this section to eliminate diagonally 
        shaped separate fields. 
           Sec. 4.  Minnesota Statutes 2002, section 85.20, 
        subdivision 6, is amended to read: 
           Subd. 6.  [LITTERING; PENALTY.] (a) No person shall drain, 
        throw, or deposit upon the lands and waters within a state park 
        any substance, including cigarette filters, that would mar the 
        appearance, create a stench, destroy the cleanliness or safety 
        of the land, or would be likely to injure any animal, vehicle, 
        or person traveling upon those lands and waters.  The operator 
        of a vehicle or watercraft, except a school bus or a vehicle 
        transporting passengers for hire and regulated by a successor 
        agency of the former Interstate Commerce Commission, shall not 
        permit articles to be thrown or discarded from the vehicle upon 
        any lands or waters within a state park.  
           (b) Violation of this subdivision is a misdemeanor.  Any 
        person sentenced under this subdivision shall in lieu of the 
        sentence imposed be permitted, under terms established by the 
        court, to work under the direction of the department of natural 
        resources at clearing rubbish, trash, and debris from any state 
        park.  The court may for any violation of this subdivision order 
        the offender to perform such work under terms established by the 
        court with the option of a jail sentence being imposed.  
           (c) In lieu of enforcement under paragraph (b), this 
        subdivision may be enforced by imposition of a civil penalty and 
        an action for damages for littering under section 115A.99. 
           Sec. 5.  Minnesota Statutes 2002, section 168.013, 
        subdivision 1e, is amended to read: 
           Subd. 1e.  [TRUCK; TRACTOR; COMBINATION; EXCEPTIONS.] (a) 
        On trucks and tractors except those in this chapter defined as 
        farm trucks, on truck-tractor and semitrailer combinations 
        except those defined as farm combinations, and on commercial 
        zone vehicles, the tax based on total gross weight shall be 
        graduated according to the Minnesota base rate schedule 
        prescribed in this subdivision, but in no event less than $120. 
                      Minnesota Base Rate Schedule 
                  Scheduled taxes include five percent
                  surtax provided for in subdivision 14
                  TOTAL GROSS WEIGHT
                      IN POUNDS                    TAX
                  A       0 -  1,500             $  15
                  B   1,501 -  3,000                20
                  C   3,001 -  4,500                25
                  D   4,501 -  6,000                35
                  E   6,001 -  9,000                45
                  F   9,001 - 12,000                70
                  G  12,001 - 15,000               105
                  H  15,001 - 18,000               145
                  I  18,001 - 21,000               190
                  J  21,001 - 26,000               270
                  K  26,001 - 33,000               360
                  L  33,001 - 39,000               475
                  M  39,001 - 45,000               595
                  N  45,001 - 51,000               715
                  O  51,001 - 57,000               865
                  P  57,001 - 63,000              1015
                  Q  63,001 - 69,000              1185
                  R  69,001 - 73,280              1325
                  S  73,281 - 78,000              1595
                  T  78,001 - 81,000              1760
           (b) For purposes of the Minnesota base rate schedule, for 
        vehicles with six or more axles in the "S" and "T" categories, 
        the base rates are $1,520 and $1,620 respectively. 
           (c) For each vehicle with a gross weight in excess of 
        81,000 pounds an additional tax of $50 is imposed for each ton 
        or fraction thereof in excess of 81,000 pounds, subject to 
        subdivision 12. 
           (d) Truck-tractors except those herein defined as farm and 
        commercial zone vehicles shall be taxed in accord with the 
        foregoing gross weight tax schedule on the basis of the combined 
        gross weight of the truck-tractor and any semitrailer or 
        semitrailers which the applicant proposes to combine with the 
        truck-tractor.  
           (e) Commercial zone trucks include only trucks, 
        truck-tractors, and semitrailer combinations which are: 
           (1) used by an authorized local cartage carrier operating 
        under a permit issued under section 221.296 and whose gross 
        transportation revenue consists of at least 60 percent obtained 
        solely from local cartage carriage, and are operated solely 
        within an area composed of two contiguous cities of the first 
        class and municipalities contiguous thereto as defined by 
        section 221.011, subdivision 17; or 
           (2) operated by an interstate carrier registered under 
        section 221.60, or by an authorized local cartage carrier or 
        other carrier receiving operating authority under chapter 221, 
        and operated solely within a zone exempt from regulation by the 
        interstate commerce commission pursuant to United States Code, 
        title 49, section 10526(b) 13506. 
           (f) The license plates issued for commercial zone vehicles 
        shall be plainly marked.  A person operating a commercial zone 
        vehicle outside the zone or area in which its operation is 
        authorized is guilty of a misdemeanor and, in addition to the 
        penalty therefor, shall have the registration of the vehicle as 
        a commercial zone vehicle revoked by the registrar and shall be 
        required to reregister the vehicle at 100 percent of the full 
        annual tax prescribed in the Minnesota base rate schedule, and 
        no part of this tax shall be refunded during the balance of the 
        registration year. 
           (g) On commercial zone trucks the tax shall be based on the 
        total gross weight of the vehicle and during each of the first 
        eight years of vehicle life shall be 75 percent of the Minnesota 
        base rate schedule.  During the ninth and succeeding years of 
        vehicle life the tax shall be 50 percent of the Minnesota base 
        rate schedule. 
           (h) On trucks, truck-tractors and semitrailer combinations, 
        except those defined as farm trucks and farm combinations, and 
        except for those commercial zone vehicles specifically provided 
        for in this subdivision, the tax for each of the first eight 
        years of vehicle life shall be 100 percent of the tax imposed in 
        the Minnesota base rate schedule, and during the ninth and 
        succeeding years of vehicle life, the tax shall be 75 percent of 
        the Minnesota base rate prescribed by this subdivision. 
           (i) For the purpose of registration, trailers coupled with 
        a truck-tractor, semitrailer combination are semitrailers. 
           Sec. 6.  Minnesota Statutes 2002, section 168.61, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITION.] The term "intercity bus" as 
        used in sections 168.61 to 168.65 means a motor bus as defined 
        in section 168.011, subdivision 9, which is owned or operated by 
        either a resident or nonresident of Minnesota in interstate 
        commerce under authority of the former Interstate Commerce 
        Commission, or a successor agency, or in combined interstate and 
        intrastate commerce under authority of the former Interstate 
        Commerce Commission, or a successor agency, and the department 
        of transportation of Minnesota, as a result of which operation 
        such bus operates both within and without the territorial limits 
        of the state of Minnesota. 
           Sec. 7.  Minnesota Statutes 2002, section 221.0251, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REGISTRATION STATEMENT.] (a) A person who 
        wishes to operate as a motor carrier of property shall file a 
        complete and accurate registration statement with the 
        commissioner.  
           (b) A registration statement must be on a form provided by 
        the commissioner and include: 
           (1) the registrant's name, including an assumed or 
        fictitious name used by the registrant in doing business; 
           (2) the registrant's mailing address and business telephone 
        number; 
           (3) the registrant's federal Employer Identification Number 
        and Minnesota Business Identification Number and the 
        identification numbers, if any, assigned to the registrant by 
        the United States Department of Transportation, the former 
        Interstate Commerce Commission, or the Environmental Protection 
        Agency; 
           (4) the name, title, and telephone number of the individual 
        who is principally responsible for the operation of the 
        registrant's transportation business; 
           (5) the principal location from which the registrant 
        conducts its transportation business and where the records 
        required by this chapter will be kept; 
           (6) if different from clause (5), the location in Minnesota 
        where the records required by this chapter will be available for 
        inspection and copying by the commissioner; 
           (7) whether the registrant transports hazardous materials 
        or hazardous waste; 
           (8) whether the registrant's business is a corporation, 
        partnership, limited liability partnership, limited liability 
        company, or sole proprietorship; and 
           (9) if the registrant is a foreign corporation authorized 
        to transact business in Minnesota, the state of incorporation 
        and the name and address of its registered agent. 
           Sec. 8.  Minnesota Statutes 2002, section 221.60, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROCEDURE.] A motor carrier may transport 
        persons or property for hire in interstate commerce in Minnesota 
        only if it first: 
           (1) complies with section 221.141; 
           (2) either registers with the commissioner the Interstate 
        Commerce Commission federal operating authority that it intends 
        to exercise, or registers and describes the transportation it 
        performs under an exemption contained in the Interstate Commerce 
        Act, United States Code, title 49; and 
           (3) purchases an interstate identification stamp or an 
        interstate registration trip permit for each vehicle to be used 
        in interstate transportation in Minnesota. 
           Sec. 9.  Minnesota Statutes 2002, section 221.601, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY.] The commissioner may enter 
        into agreements with representatives of other states to allow 
        the cooperative registration of motor carriers transporting 
        property or passengers for hire in interstate commerce.  The 
        agreement may authorize representatives of other states to issue 
        interstate registration stamps and trip permits; accept the 
        filing of insurance certificates, insurance cancellation 
        notices, and orders of the former Interstate Commerce Commission 
        orders or a successor agency; issue suspension and reinstatement 
        orders or notices; and collect and disburse fees prescribed by 
        this chapter.  The agreement may allow the exchange of 
        information for audit, reporting, and enforcement purposes, and 
        the collection and disbursement of fees provided under this 
        chapter and the laws of other states that participate in the 
        agreement.  The agreement and all amendments must be in 
        writing.  The agreement may provide for the gradual adoption of 
        a base state registration system.  It may provide that a motor 
        carrier based in another state participating in the agreement, 
        that has filed evidence of financial responsibility in that 
        state that meets the requirements of this chapter and of the 
        agreement, need not file evidence of financial responsibility 
        with the commissioner for its interstate operations in this 
        state. 
           Sec. 10.  Minnesota Statutes 2002, section 221.602, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROCEDURE; NONEXEMPT CARRIER.] A motor 
        carrier subject to the jurisdiction of the Interstate Commerce 
        Commission U.S. Department of Transportation or Surface 
        Transportation Board under United States Code, title 49, chapter 
        105 135, subchapter II I, with its principal place of business 
        in Minnesota or that designates Minnesota as its base state, may 
        transport persons or property for hire in Minnesota only if it 
        first complies with the insurance and registration regulations 
        adopted by the Interstate Commerce Commission or a successor 
        agency under United States Code, title 49, section 14504 or 
        former section 11506.  The registration fee is $5; however, a 
        lesser fee may be collected pursuant to a reciprocal agreement 
        authorized by section 221.65.  A motor carrier shall pay a 
        service charge of 45 cents for each registration receipt issued 
        in addition to the fee required by this subdivision. 
           Sec. 11.  Minnesota Statutes 2002, section 221.602, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROCEDURE; EXEMPT CARRIER.] (a) A motor carrier 
        that is exempt from the federal jurisdiction of the Interstate 
        Commerce Commission under the Interstate Commerce Act, United 
        States Code, title 49, may transport persons or property for 
        hire in interstate commerce in Minnesota only if it first:  
           (1) complies with section 221.141; 
           (2) registers and describes the transportation it performs 
        under an exemption contained in the Interstate Commerce Act, 
        United States Code, title 49; and 
           (3) pays the fee required in subdivision 1.  
           (b) A motor carrier that complies with subdivision 1 is not 
        also required to comply with this subdivision. 
           Sec. 12.  Minnesota Statutes 2002, section 221.602, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REGISTRATION PERIOD.] The registration period is 
        that provided by the Interstate Commerce Commission in 
        rules regulations adopted under United States Code, title 49, 
        section 14504 or former section 11506. 
           Sec. 13.  Minnesota Statutes 2002, section 222.63, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] The terms defined in section 
        222.48 have the same meanings when used in this section.  Other 
        terms used in this section have the following meanings:  
           (a) "Abandoned," when used with reference to a rail line or 
        right-of-way, means a line or right-of-way with respect to which 
        the interstate commerce commission Surface Transportation Board 
        or other responsible federal regulatory agency has permitted 
        discontinuance of rail service; 
           (b) "Right-of-way" means any real property, including any 
        interest in the real property that is or has been owned by a 
        railroad company as the site, or is adjacent to the site, of an 
        existing or former rail line; 
           (c) "State rail bank" means abandoned rail lines and 
        right-of-way acquired by the commissioner of transportation 
        pursuant to this section. 
           Sec. 14.  Minnesota Statutes 2002, section 222.63, 
        subdivision 6, is amended to read: 
           Subd. 6.  [INTERVENTION IN ABANDONMENT PROCEEDING.] The 
        commissioner may intervene in a proceeding of the interstate 
        commerce commission Surface Transportation Board on the issue of 
        suitability for a public use of a rail line proposed to be 
        abandoned if the commissioner finds that the right-of-way of the 
        line would be eligible for inclusion in the state rail bank.  To 
        the extent practicable before intervening as provided in this 
        section the commissioner shall hold at least one public meeting 
        in the area in which the line is located to solicit opinions of 
        interested persons concerning the commissioner's proposed action.
           Sec. 15.  Minnesota Statutes 2002, section 222.86, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [NOTICE OF EXEMPT TRANSACTION.] An 
        acquiring carrier shall submit written notification to the 
        attorney general and the commissioner of transportation of their 
        its intent to initiate an exempt transaction under Code of 
        Federal Regulations, title 49, section part 1150, at least 14 
        days before filing a notice of exemption with the Interstate 
        Commerce Commission Surface Transportation Board. 
           Sec. 16.  Minnesota Statutes 2002, section 222.86, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICABILITY TO REQUIREMENTS OF LAW.] Acquiring 
        and divesting carriers shall attend conferences with the 
        attorney general or the commissioner of transportation prior to 
        filing a notice of exemption with the Interstate Commerce 
        Commission Surface Transportation Board.  The divesting and 
        acquiring carriers shall respond to questions and requests for 
        information related to the issue of whether the proposed 
        transaction is consistent with the requirements of 
        the Interstate Commerce Act Surface Transportation Board, other 
        applicable federal law, and state law.  Copies of the sale 
        contract, market and feasibility studies, and full financial 
        information as to the acquiring carrier must be provided at 
        those conferences. 
           All information, submitted by the acquiring and divesting 
        carriers as confidential, shall remain nonpublic data and 
        private data on individuals in accordance with chapter 13 and 
        shall not be divulged to any outside parties, except to the 
        Interstate Commerce Commission Surface Transportation Board as a 
        part of a filing in relation to the proposed transaction.  The 
        attorney general and the commissioner of transportation shall 
        take the necessary steps to assure confidentiality. 
           Sec. 17.  Minnesota Statutes 2002, section 299F.40, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PUBLIC POLICY.] It is the intent of the 
        Minnesota legislature to protect the public welfare and promote 
        safety in the filling and use of pressure vessels containing 
        liquefied petroleum or industrial gases through implementing 
        both the regulations of the Interstate Commerce Commission 
        regulations or successor agency, within the state of Minnesota, 
        the rules of the Minnesota state fire marshal, and the national 
        standards of safety on the filling of these containers.  It is 
        deemed necessary to insure that containers properly constructed 
        and tested be used and that only liquefied petroleum or 
        industrial gases of suitable and safe vapor pressure be placed 
        in these containers.  To attain this end the filling or 
        refilling of liquefied petroleum and industrial gas containers 
        by other than the owner or authorized person must be controlled 
        and specific authority to prevent violation and encourage 
        enforcement be established. 
           Sec. 18.  Minnesota Statutes 2002, section 398A.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EMINENT DOMAIN.] The authority shall have all 
        powers granted to a political subdivision in chapter 117 for the 
        acquisition of property for a public purpose, except that it 
        shall have no power of eminent domain with respect to property 
        owned by another authority or political subdivision of Minnesota 
        or any other state, or with respect to property owned or used by 
        a railroad corporation unless the Interstate Commerce Commission 
        or a successor agency, if any, or another authority with power 
        to make the finding, has found that the public convenience and 
        necessity permit discontinuance of rail service on the 
        property.  All property taken for the exercise of the powers 
        granted herein is declared to be taken for a public governmental 
        purpose and as a matter of public necessity. 
           Sec. 19.  Minnesota Statutes 2002, section 469.057, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REGULATION.] Unless otherwise provided by 
        law, all laws now or hereafter vesting jurisdiction or control 
        in the department of public service or a successor agency of the 
        state of Minnesota, in the Interstate Commerce Commission or a 
        successor agency, if any, or Department of Defense of the United 
        States, or in similar regulatory bodies shall apply to any 
        transportation, terminal, or other facility owned, operated, 
        leased, or controlled by the port authority with the same force 
        and effect as if the transportation, terminal, or other facility 
        were owned, operated, leased, or controlled by a private 
        corporation. 

                                   ARTICLE 5 
                      OBSOLETE MUNICIPAL BOARD REFERENCES 
                       AND RELATED CHAPTER 414 PROVISIONS 
           Section 1.  Minnesota Statutes 2002, section 4A.02, is 
        amended to read: 
           4A.02 [STATE DEMOGRAPHER.] 
           (a) The director shall appoint a state demographer.  The 
        demographer must be professionally competent in demography and 
        must possess demonstrated ability based upon past performance.  
           (b) The demographer shall: 
           (1) continuously gather and develop demographic data 
        relevant to the state; 
           (2) design and test methods of research and data 
        collection; 
           (3) periodically prepare population projections for the 
        state and designated regions and periodically prepare 
        projections for each county or other political subdivision of 
        the state as necessary to carry out the purposes of this 
        section; 
           (4) review, comment on, and prepare analysis of population 
        estimates and projections made by state agencies, political 
        subdivisions, other states, federal agencies, or nongovernmental 
        persons, institutions, or commissions; 
           (5) serve as the state liaison with the United States 
        Bureau of the Census, coordinate state and federal demographic 
        activities to the fullest extent possible, and aid the 
        legislature in preparing a census data plan and form for each 
        decennial census; 
           (6) compile an annual study of population estimates on the 
        basis of county, regional, or other political or geographical 
        subdivisions as necessary to carry out the purposes of this 
        section and section 4A.03; 
           (7) by January 1 of each year, issue a report to the 
        legislature containing an analysis of the demographic 
        implications of the annual population study and population 
        projections; 
           (8) prepare maps for all counties in the state, all 
        municipalities with a population of 10,000 or more, and other 
        municipalities as needed for census purposes, according to scale 
        and detail recommended by the United States Bureau of the 
        Census, with the maps of cities showing precinct boundaries; 
           (9) prepare an estimate of population and of the number of 
        households for each governmental subdivision for which the 
        metropolitan council does not prepare an annual estimate, and 
        convey the estimates to the governing body of each political 
        subdivision by May 1 of each year; 
           (10) direct, under section 414.01, subdivision 14, and 
        certify population and household estimates of annexed or 
        detached areas of municipalities or towns after being notified 
        of the order or letter of approval by the Minnesota municipal 
        board director; and 
           (11) prepare, for any purpose for which a population 
        estimate is required by law or needed to implement a law, a 
        population estimate of a municipality or town whose population 
        is affected by action under section 379.02 or 414.01, 
        subdivision 14. 
           (c) A governing body may challenge an estimate made under 
        paragraph (b) by filing their specific objections in writing 
        with the state demographer by June 10.  If the challenge does 
        not result in an acceptable estimate by June 24, the governing 
        body may have a special census conducted by the United States 
        Bureau of the Census.  The political subdivision must notify the 
        state demographer by July 1 of its intent to have the special 
        census conducted.  The political subdivision must bear all costs 
        of the special census.  Results of the special census must be 
        received by the state demographer by the next April 15 to be 
        used in that year's May 1 estimate to the political subdivision 
        under paragraph (b). 
           Sec. 2.  Minnesota Statutes 2002, section 14.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTESTED CASE PROCEDURES.] The contested case 
        procedures of the Administrative Procedure Act provided in 
        sections 14.57 to 14.69 do not apply to (a) the Minnesota 
        municipal board proceedings under chapter 414, except as 
        specified in that chapter, (b) the commissioner of corrections, 
        (c) the unemployment insurance benefits program and the social 
        security disability determination program in the department of 
        economic security, (d) the commissioner of mediation services, 
        (e) the workers' compensation division in the department of 
        labor and industry, (f) the workers' compensation court of 
        appeals, or (g) the board of pardons.  
           Sec. 3.  Minnesota Statutes 2002, section 40A.121, is 
        amended to read: 
           40A.121 [ANNEXATION PROCEEDINGS.] 
           Subdivision 1.  [ANNEXATION PROHIBITED.] Land within an 
        agricultural preserve that is within a township may not be 
        annexed to a municipality under chapter 414, unless the 
        Minnesota municipal board director of the office of strategic 
        and long-range planning finds that either: 
           (1) the owner or the county has initiated termination of 
        the zone under section 40A.11; 
           (2) because of size, tax base, population or other relevant 
        factors, the township would not be able to provide normal 
        governmental functions and services; or 
           (3) the zone would be completely surrounded by lands within 
        a municipality. 
           Subd. 2.  [EXCEPTION.] This section does not apply to 
        annexation agreements approved by the Minnesota municipal board 
        under chapter 414 prior to creation of the zone. 
           Sec. 4.  Minnesota Statutes 2002, section 272.67, 
        subdivision 1, is amended to read: 
           Subdivision 1.  Any city however organized, except in those 
        counties situated in a metropolitan area as defined in Minnesota 
        Statutes 1961, Section 473.02, Subdivision 5, which contain 
        cities of the first class, may by ordinance adopted in the 
        manner provided in this section divide its area into an urban 
        service district and a rural service district, constituting 
        separate taxing districts for the purpose of all municipal 
        property taxes except those levied for the payment of bonds and 
        judgments and interest thereon.  In proceedings for annexation, 
        incorporation, or consolidation being conducted pursuant to 
        chapter 414, the Minnesota municipal board director of the 
        office of strategic and long-range planning may by order divide 
        a municipality into an urban service district and a rural 
        service district, such districts to be designated by the board 
        in accordance with the criteria set out in subdivision 2.  
        Thereafter, said urban service district and rural service 
        district may be changed in the same manner that an ordinance or 
        amendment is changed in accordance with this section.  
           Sec. 5.  Minnesota Statutes 2002, section 276A.09, is 
        amended to read: 
           276A.09 [CHANGE IN STATUS OF MUNICIPALITY.] 
           If a municipality is dissolved, is consolidated with all or 
        part of another municipality, annexes territory, has a portion 
        of its territory detached from it, or is newly incorporated, the 
        secretary of state shall immediately certify that fact to the 
        commissioner of revenue.  The secretary of state shall also 
        certify to the commissioner of revenue the current population of 
        the new, enlarged, or successor municipality, if determined by 
        the Minnesota municipal board director of the office of 
        strategic and long-range planning incident to consolidation, 
        annexation, or incorporation proceedings.  The population so 
        certified shall govern for purposes of sections 276A.01 to 
        276A.09 until the state demographer files the first population 
        estimate as of a later date with the commissioner of revenue.  
        If an annexation of unincorporated land occurs without 
        proceedings before the Minnesota municipal board director of the 
        office of strategic and long-range planning, the population of 
        the annexing municipality as previously determined shall 
        continue to govern for purposes of sections 276A.01 to 276A.09 
        until the state demographer files the first population estimate 
        as of a later date with the commissioner of revenue. 
           Sec. 6.  Minnesota Statutes 2002, section 365.46, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COPIES.] The county auditor shall also send a 
        copy of the notice of the dissolution to:  (1) the state 
        demographer, (2) the land management information center, (3) the 
        Minnesota municipal board director of the office of strategic 
        and long-range planning, and (4) the commissioner of 
        transportation. 
           Sec. 7.  Minnesota Statutes 2002, section 379.05, is 
        amended to read: 
           379.05 [AUDITOR TO ABSTRACT REPORT FOR AGENCIES, ENTER TOWN 
        RECORD.] 
           Each county auditor shall within 30 days after any such 
        town is organized transmit by mail to the commissioner of 
        revenue, the secretary of state, the state demographer, the land 
        management information center, the Minnesota municipal board 
        director of the office of strategic and long-range planning, and 
        the commissioner of transportation an abstract of such report, 
        giving the name and boundaries of such town and record in a book 
        kept for that purpose a full description of each such town. 
           Sec. 8.  Minnesota Statutes 2002, section 412.021, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELECTION.] Upon the filing of the 
        certificate with the secretary of state, if the vote is in favor 
        of incorporation, the judges of election appointed by the 
        Minnesota municipal board director of the office of strategic 
        and long-range planning or the county board as the case may be, 
        shall fix a day at least 15 and not more than 30 days thereafter 
        and a place for the holding of an election for officers.  The 
        judges shall also fix the time, not less than three hours, 
        during which the polls shall remain open at the election and 
        shall post a notice setting forth the time and place of such 
        election in three public places in the city for at least ten 
        days preceding the election. 
           Sec. 9.  Minnesota Statutes 2002, section 412.091, is 
        amended to read: 
           412.091 [DISSOLUTION.] 
           Whenever a number of voters equal to one-third of those 
        voting at the last preceding city election petition the 
        municipal board director of the office of strategic and 
        long-range planning therefor, a special election shall be called 
        to vote upon the question of dissolving the city.  Before the 
        election, the executive director of the board director shall 
        designate a time and place for a hearing before the board in 
        accordance with section 414.09.  After the hearing the board the 
        director shall issue its an order which shall include a date for 
        the election, a determination of what town or towns the 
        territory of the city shall belong to if the voters favor 
        dissolution, and other necessary provisions.  The ballots used 
        at such election shall bear the printed words, "For Dissolution" 
        and "Against Dissolution," with a square before each phrase in 
        which the voter may express a preference by a cross.  If a 
        majority of those voting on the question favor dissolution, the 
        clerk shall file a certificate of the result with the municipal 
        board director, the secretary of state and the county auditor of 
        the county in which the city is situated.  Six months after the 
        date of such election, the city shall cease to exist.  Within 
        such six months, the council shall audit all claims against the 
        city, settle with the treasurer, and other city officers, and 
        apply the assets of the city to the payment of its debts.  If 
        any debts remain unpaid, other than bonds, the city clerk shall 
        file a schedule of such debts with the county treasurer and the 
        council shall levy a tax sufficient for their payment, the 
        proceeds of which, when collected, shall be paid by the county 
        treasurer to the creditors in proportion to their several claims 
        until all are discharged.  The principal and interest on 
        outstanding bonds shall be paid when due by the county treasurer 
        from a tax annually spread by the county auditor against 
        property formerly included within the city until the bonds are 
        fully paid.  All city property and all rights of the city shall, 
        upon dissolution, inure in the town or towns designated by the 
        board as the legal successor to the city.  If the city territory 
        goes to more than one town, surplus cash assets and unsold city 
        property shall be distributed as provided by the board order for 
        the election.  
           Sec. 10.  Minnesota Statutes 2002, section 414.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELECTIONS OF MUNICIPAL OFFICERS.] (a) An order 
        approving an incorporation or consolidation pursuant to this 
        chapter, or an order requiring an election under section 
        414.031, subdivision 4a, shall set a date for this an election 
        of new municipal officers not less than 45 days nor more than 60 
        days after the issuance of such order.  
           (b) The director shall appoint an acting clerk for election 
        purposes, at least three election judges who shall be residents 
        of the new municipality, and shall designate polling places 
        within the new municipality. 
           (c) The acting clerk shall prepare the official election 
        ballot. 
           (d) Affidavits of candidacy may be filed by Any person 
        eligible to hold municipal office may file an affidavit of 
        candidacy not more than four weeks nor less than two weeks 
        before the date designated in the order for the election.  
           (e) The election shall be conducted in conformity with the 
        charter and the laws for conducting municipal elections insofar 
        as applicable. 
           (f) Any person eligible to vote at a township or municipal 
        election within the area of the new municipality, is eligible to 
        vote at such election. 
           (g) Any excess in the expense of conducting the election 
        over receipts from filing fees shall be a charge against the new 
        municipality; any excess of receipts shall be deposited in the 
        treasury of the new municipality. 
           Sec. 11.  Minnesota Statutes 2002, section 473.129, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LOCAL GOVERNMENTAL PARTICIPATION.] The 
        metropolitan council may (1) participate as a party in any 
        proceedings originating before the Minnesota municipal board 
        under chapter 414, if the proceedings involve the change in a 
        boundary of a governmental unit in the metropolitan area, and (2)
        conduct studies of the feasibility of annexing, enlarging, or 
        consolidating units in the metropolitan area. 
           Sec. 12.  Minnesota Statutes 2002, section 473F.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CERTIFICATION OF CHANGE IN STATUS.] If a 
        municipality is dissolved, is consolidated with all or part of 
        another municipality, annexes territory, has a portion of its 
        territory detached from it, or is newly incorporated, the 
        secretary of state shall immediately certify that fact to the 
        commissioner of revenue.  The secretary of state shall also 
        certify to the commissioner of revenue the current population of 
        the new, enlarged, or successor municipality, if determined by 
        the Minnesota municipal board director of the office of 
        strategic and long-range planning incident to consolidation, 
        annexation, or incorporation proceedings.  The population so 
        certified shall govern for purposes of sections 473F.01 to 
        473F.13 until the metropolitan council files its first 
        population estimate as of a later date with the commissioner of 
        revenue.  If an annexation of unincorporated land occurs without 
        proceedings before the Minnesota municipal board director, the 
        population of the annexing municipality as previously determined 
        shall continue to govern for purposes of sections 473F.01 to 
        473F.13 until the metropolitan council files its first 
        population estimate as of a later date with the commissioner of 
        revenue. 
           Sec. 13.  Minnesota Statutes 2002, section 473H.14, is 
        amended to read: 
           473H.14 [ANNEXATION PROCEEDINGS.] 
           Agricultural preserve land within a township shall not be 
        annexed to a municipality pursuant to chapter 414, without a 
        specific finding by the Minnesota municipal board director of 
        the office of strategic and long-range planning that either (a) 
        the expiration period as provided for in section 473H.08 has 
        begun; (b) the township due to size, tax base, population or 
        other relevant factors would not be able to provide normal 
        governmental functions and services; or (c) the agricultural 
        preserve would be completely surrounded by lands within a 
        municipality. 
           This section shall not apply to annexation agreements 
        approved by the Minnesota municipal board under proceedings 
        authorized by chapter 414 prior to creation of the preserve. 
           Sec. 14.  Minnesota Statutes 2002, section 572A.015, 
        subdivision 2, is amended to read:  
           Subd. 2.  [MEDIATION.] Within ten days of receiving a 
        request for mediation that the director of the office of 
        strategic and long-range planning has required under section 
        414.12, subdivision 1, the bureau shall provide written notice 
        of the request for mediation to the parties and provide a list 
        of neutrals experienced in land use planning and local 
        government issues obtained from the supreme court, Minnesota 
        municipal board, bureau of mediation services, Minnesota state 
        bar association, Hennepin county bar association, office of 
        dispute resolution, and others.  Within 30 days thereafter, the 
        affected parties, as defined in section 414.10, subdivision 1, 
        shall select a mediator from the list of neutrals or someone 
        else acceptable to the parties and submit to mediation for a 
        period of 30 days facilitated by the bureau.  If the dispute 
        remains unresolved after the close of the 30-day mediation 
        period, the bureau shall prepare a report of its recommendations 
        and transmit the report within 30 days to the parties.  Within 
        60 days after the date of issuance of the mediator's report, the 
        dispute shall be submitted to binding arbitration as provided in 
        this chapter.  The mediator's report submitted to the parties is 
        informational only and is not admissible in arbitration. 
           Sec. 15.  Minnesota Statutes 2002, section 572A.02, 
        subdivision 6, is amended to read: 
           Subd. 6.  [DECISION.] The arbitrators, after a hearing on 
        the matter, shall make a decision regarding the dispute within 
        60 days and transmit an order to the parties and the office of 
        strategic and long-range planning or the municipal board.  
        Unless appealed by an aggrieved party within 30 days of receipt 
        of the arbitration panel's order by the municipal board office, 
        the municipal board office shall execute an order in accordance 
        with the arbitration panel's order and shall cause copies of the 
        same to be mailed to all parties entitled to mailed notice, the 
        secretary of state, the department of revenue, the state 
        demographer, individual property owners if initiated in that 
        manner, the affected county auditor, and any other party of 
        record.  The affected county auditor shall record the order 
        against the affected property. 
           Sec. 16.  Minnesota Statutes 2002, section 572A.03, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ORDERLY ANNEXATIONS WITHIN A DESIGNATED AREA.] 
        For orderly annexations within a designated area under section 
        414.0325, which require a hearing, the arbitration panel may 
        order the annexation:  (1) if it finds that the subject area is 
        now or is about to become urban or suburban in character and 
        that the annexing municipality is capable of providing the 
        services required by the area within a reasonable time; (2) if 
        it finds that the existing township form of government is not 
        adequate to protect the public health, safety, and welfare; or 
        (3) if it finds that annexation would be in the best interests 
        of the subject area.  The board panel may deny the annexation if 
        it conflicts with any provision of the joint agreement.  The 
        board panel may alter the boundaries of the proposed annexation 
        by increasing or decreasing the area so as to include that 
        property within the designated area which is in need of 
        municipal services or will be in need of municipal services. 
           If the annexation is denied, no proceeding for the 
        annexation of substantially the same area may be initiated 
        within two years from the date of the board's order unless the 
        new proceeding is initiated by a majority of the area's property 
        owners and the petition is supported by affected parties to the 
        resolution.  In all cases, the arbitration panel shall set forth 
        the factors which are the basis for the decision. 
           Sec. 17.  [REPEALER.] 
           Minnesota Statutes 2002, section 572A.015, subdivision 1, 
        and Laws 2002, chapter 223, section 25, subdivision 3, are 
        repealed. 

                                   ARTICLE 6 
                      OBSOLETE REFERENCES TO THE BOARD OF 
                     GOVERNMENT INNOVATION AND COOPERATION 
           Section 1.  Minnesota Statutes 2002, section 465.81, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE.] Sections 465.81 to 465.87 465.86 
        establish procedures to be used by counties, cities, or towns 
        that adopt by resolution an agreement providing a plan to 
        provide combined services during an initial cooperation period 
        that may not exceed two years and then: 
           (1) to merge into a single unit of government over the 
        succeeding two-year period; or 
           (2) to agree to apportion the entire area of at least one 
        local government unit between or among two or more local 
        government units contiguous to the unit to be apportioned, 
        resulting in the elimination of at least one local government 
        unit over the succeeding two years.  
           Sec. 2.  Minnesota Statutes 2002, section 465.81, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] As used in sections 465.81 to 
        465.87 465.86, the words defined in this subdivision have the 
        meanings given them in this subdivision. 
           "Board" means the board of government innovation and 
        cooperation. 
           "City" means home rule charter or statutory cities. 
           "Governing body" means, in the case of a county, the county 
        board; in the case of a city, the city council; and, in the case 
        of a town, the town board. 
           "Local government unit" or "unit" includes counties, 
        cities, and towns. 
           Sec. 3.  Minnesota Statutes 2002, section 465.82, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ADOPTION AND STATE AGENCY REVIEW.] Each 
        governing body that proposes to take part in a combination under 
        sections 465.81 to 465.87 465.86 must by resolution adopt a plan 
        for cooperation and combination.  The plan must address each 
        item in this section.  The plan must be specific for any item 
        that will occur within three years and may be general or set 
        forth alternative proposals for an item that will occur more 
        than three years in the future.  The plan must be submitted to 
        the board of government innovation and cooperation for review 
        and comment.  For a metropolitan area local government unit, the 
        plan must also be submitted to the metropolitan council for 
        review and comment.  The council may point out any resources or 
        technical assistance it may be able to provide a governing body 
        submitting a plan under this subdivision.  Significant 
        modifications and specific resolutions of items must be 
        submitted to the board and council, if appropriate, for review 
        and comment.  In the official newspaper of each local government 
        unit proposing to take part in the combination, the governing 
        body shall publish at least a summary of the adopted plans, each 
        significant modification and resolution of items, and, if 
        appropriate, the results of each board and council review and 
        comment.  If a territory of a unit is to be apportioned between 
        or among two or more units contiguous to the unit that is to be 
        apportioned, the plan must specify the area that will become a 
        part of each remaining unit. 
           Sec. 4.  Minnesota Statutes 2002, section 465.82, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTENTS OF PLAN.] The plan must state:  
           (1) the specific cooperative activities the units will 
        engage in during the first two years of the venture; 
           (2) the steps to be taken to effect the merger of the 
        governmental units, with completion no later than four years 
        after the process begins; 
           (3) the steps by which a single governing body will be 
        created or, when the entire territory of a unit will be 
        apportioned between or among two or more units contiguous to the 
        unit that is to be apportioned, the steps to be taken by the 
        governing bodies of the remaining units to provide for 
        representation of the residents of the apportioned unit; 
           (4) changes in services provided, facilities used, and 
        administrative operations and staffing required to effect the 
        preliminary cooperative activities and the final merger, and a 
        two-, five-, and ten-year projection of expenditures for each 
        unit if it combined and if it remained separate; 
           (5) treatment of employees of the merging governmental 
        units, specifically including provisions for reassigning 
        employees, dealing with exclusive representatives, and providing 
        financial incentives to encourage early retirements; 
           (6) financial arrangements for the merger, specifically 
        including responsibility for debt service on outstanding 
        obligations of the merging units; 
           (7) one- and two-year impact analyses, prepared by the 
        granting state agency at the request of the local government 
        unit, of major state aid revenues received for each unit if it 
        combined and if it remained separate, including an impact 
        analysis, prepared by the department of revenue, of any property 
        tax revenue implications associated with tax increment financing 
        districts and fiscal disparities under chapter 276A or 473F 
        resulting from the merger; 
           (8) procedures for a referendum to be held before the 
        proposed combination to approve combining the local government 
        units, specifically stating whether a majority of those voting 
        in each district proposed for combination or a majority of those 
        voting on the question in the entire area proposed for 
        combination is needed to pass the referendum; and 
           (9) a time schedule for implementation. 
           Notwithstanding clause (3) or any other law to the 
        contrary, all current members of the governing bodies of the 
        local government units that propose to combine under sections 
        465.81 to 465.88 465.86 may serve on the initial governing body 
        of the combined unit until a gradual reduction in membership is 
        achieved by foregoing election of new members when terms expire 
        until the number permitted by other law is reached. 
           Sec. 5.  Minnesota Statutes 2002, section 465.84, is 
        amended to read: 
           465.84 [REFERENDUM.] 
           During the first or second year of cooperation, and after 
        approval of the plan by the board under section 465.83, a 
        referendum on the question of combination must be conducted.  
        The referendum must be on a date called by the governing bodies 
        of the units that propose to combine.  The referendum must be 
        conducted according to the Minnesota Election Law, as defined in 
        section 200.01.  If the referendum fails, the same question or a 
        modified question may be submitted the following year.  If the 
        referendum fails again, the same question may not be submitted.  
        Referendums shall be conducted on the same date in all local 
        government units. 
           Presented to the governor March 17, 2003 
           Signed by the governor March 19, 2003, 4:05 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes