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2002 Minnesota Session Laws

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                            CHAPTER 379-H.F.No. 3163 
                  An act relating to legislation; correcting erroneous, 
                  ambiguous, and omitted text and obsolete references; 
                  eliminating certain redundant, conflicting, and 
                  superseded provisions; reenacting certain legislation; 
                  making miscellaneous technical corrections to statutes 
                  and other laws; amending Minnesota Statutes 2000, 
                  sections 13.04, subdivision 2; 13.461, subdivision 7; 
                  13.4963, subdivision 2; 13.4967, subdivision 3; 
                  13.741, subdivision 1; 13.7411, subdivision 5; 13D.05, 
                  subdivision 2; 15A.086; 16D.11, subdivision 6; 17A.04, 
                  subdivision 1; 31.51, subdivision 3; 32.073; 41A.09, 
                  subdivision 8; 41B.045, subdivision 2; 41B.046, 
                  subdivision 5; 41B.047, subdivision 4; 48.24, 
                  subdivision 5; 115A.06, subdivision 5a; 115A.59; 
                  115A.9157, subdivision 6; 115B.20, subdivisions 1, 2, 
                  5; 115B.25, subdivision 2; 115B.26; 115B.28, as 
                  amended; 115B.29, subdivision 1; 115B.30, subdivision 
                  3; 115B.31, subdivisions 1, 2, 4; 115B.32; 115B.33; 
                  115B.34; 115B.35, subdivisions 2, 3, 4, 8, 9; 115B.36; 
                  115B.37; 115C.08, subdivisions 4, 5; 116J.615; 
                  116J.616; 119A.11, subdivision 3; 119A.20, subdivision 
                  1; 119A.37, subdivision 3; 119A.46, subdivision 6; 
                  122A.20, subdivision 1; 123B.61; 123B.62; 126C.10, 
                  subdivision 26; 144E.43, subdivision 1; 148.71, 
                  subdivision 3; 219.98; 221.185, subdivision 5a; 
                  222.631, subdivision 1; 260B.171, subdivision 5; 
                  270.708, subdivision 1; 270B.15; 297B.035, subdivision 
                  3; 297I.05, subdivision 12; 297I.30, subdivisions 1, 
                  5; 299F.11, subdivision 2; 349.163, subdivision 6; 
                  349A.10, subdivision 5; 352D.02, subdivision 1; 
                  383C.19; 401.05, subdivision 3; 437.08; 437.09; 
                  437.10; 458D.02, subdivisions 2, 3; 458D.23; 469.110, 
                  subdivision 2; 469.116, subdivision 7; 469.118, 
                  subdivisions 1, 2, 4; 469.119, subdivision 1; 469.122; 
                  469.154, subdivision 5; 471.415, subdivision 2; 
                  501B.61, as amended; 514.94; 524.2-301; 524.2-604; 
                  524.2-609; 583.24, subdivision 4; 609.26, subdivision 
                  5; 609.341, subdivision 17; Minnesota Statutes 2001 
                  Supplement, sections 16A.151, by adding subdivisions; 
                  17B.15, subdivision 1; 60K.31, subdivision 1; 60K.32; 
                  60K.34, subdivision 1; 60K.39, subdivisions 5, 6; 
                  60K.48; 60K.51, subdivision 6; 60K.52, subdivision 1; 
                  61B.23, subdivision 15; 119A.22; 125A.09, subdivision 
                  3; 126C.10, subdivision 4; 136G.03, subdivision 20; 
                  144.057, subdivision 4; 169.073; 214.01, subdivision 
                  3; 216B.098, subdivision 2; 216B.2424, subdivision 5; 
                  216B.2425, subdivision 3; 268.052, subdivision 1; 
                  270.07, subdivision 3a; 275.28, subdivision 1; 275.70, 
                  subdivision 5; 290A.03, subdivision 13; 297A.668, 
                  subdivision 3; 336.9-334; 356.62; 376.08, subdivision 
                  2; 501B.60, subdivision 3; 514.661, subdivision 5; 
                  626.556, subdivision 11; Laws 1995, chapter 220, 
                  sections 141, 142, as amended; Laws 1997, chapter 202, 
                  article 2, section 61, as amended; Laws 2000, chapter 
                  399, article 1, section 139; Laws 2001, chapter 171, 
                  section 12; proposing coding for new law in Minnesota 
                  Statutes, chapter 89A; repealing Minnesota Statutes 
                  2000, sections 89A.01; 89A.02; 89A.03; 89A.04; 89A.05; 
                  89A.06; 89A.07; 89A.08; 89A.09; 89A.10; 89A.11; 
                  115B.27; 115B.35, subdivisions 1, 5, 6; 116.19; 
                  221.0315; 437.11; 462A.072; 557.11; Minnesota Statutes 
                  2001 Supplement, sections 16A.1286, subdivisions 4, 5; 
                  Laws 1997, chapter 85, article 4, section 28; Laws 
                  1999, chapter 159, section 79; Laws 1999, chapter 231, 
                  section 180; Laws 2001, chapter 161, section 4; Laws 
                  2001, chapter 162, section 4; Laws 2001, First Special 
                  Session chapter 2, section 103; Laws 2001, First 
                  Special Session chapter 8, article 7, section 1; 
                  Minnesota Rules, parts 5300.0360; 7021.0001, subparts 
                  2, 4; 7190.0002; 7190.0003; 7190.0004; 7190.0008, 
                  subparts 1, 2; 7190.0015, subparts 1, 2; 7190.0100, 
                  subpart 2; 7190.1000, subpart 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                                    GENERAL 
           Section 1.  Minnesota Statutes 2000, section 13.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INFORMATION REQUIRED TO BE GIVEN INDIVIDUAL.] An 
        individual asked to supply private or confidential data 
        concerning the individual shall be informed of:  (a) the purpose 
        and intended use of the requested data within the collecting 
        state agency, political subdivision, or statewide system; (b) 
        whether the individual may refuse or is legally required to 
        supply the requested data; (c) any known consequence arising 
        from supplying or refusing to supply private or confidential 
        data; and (d) the identity of other persons or entities 
        authorized by state or federal law to receive the data.  This 
        requirement shall not apply when an individual is asked to 
        supply investigative data, pursuant to section 13.82, 
        subdivision 5 7, to a law enforcement officer. 
           Sec. 2.  Minnesota Statutes 2000, section 13.461, 
        subdivision 7, is amended to read: 
           Subd. 7.  [APPLICATION PROCEDURES.] Tribal licensing agency 
        access to criminal history data is governed by section 245A.04, 
        subdivision 3, paragraph (h) (u). 
           Sec. 3.  Minnesota Statutes 2000, 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, or 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 2000, section 13.4967, 
        subdivision 3, is amended to read: 
           Subd. 3.  [GROSS EARNINGS TAXES HOSPITAL AND HEALTH CARE 
        PROVIDER TAX.] Certain patient data provided to the department 
        of revenue under chapter 295 sections 295.50 to 295.59 are 
        classified under section 295.57, subdivision 2. 
           Sec. 5.  Minnesota Statutes 2000, section 13D.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [WHEN MEETING MUST BE CLOSED.] (a) Any portion of 
        a meeting must be closed if expressly required by other law or 
        if the following types of data are discussed: 
           (1) data that would identify alleged victims or reporters 
        of criminal sexual conduct, domestic abuse, or maltreatment of 
        minors or vulnerable adults; 
           (2) active investigative data as defined in section 13.82, 
        subdivision 5 7, or internal affairs data relating to 
        allegations of law enforcement personnel misconduct collected or 
        created by a state agency, statewide system, or political 
        subdivision; or 
           (3) educational data, health data, medical data, welfare 
        data, or mental health data that are not public data under 
        section 13.32, 13.3805, subdivision 1, 13.384, or 13.46, 
        subdivision 2 or 7.  
           (b) A public body shall close one or more meetings for 
        preliminary consideration of allegations or charges against an 
        individual subject to its authority.  If the members conclude 
        that discipline of any nature may be warranted as a result of 
        those specific charges or allegations, further meetings or 
        hearings relating to those specific charges or allegations held 
        after that conclusion is reached must be open.  A meeting must 
        also be open at the request of the individual who is the subject 
        of the meeting. 
           Sec. 6.  Minnesota Statutes 2000, section 15A.086, is 
        amended to read: 
           15A.086 [LIMITS ON BONUS PAYMENTS.] 
           Notwithstanding any law to the contrary, an employee of the 
        state lottery or of a public corporation or nonprofit 
        corporation created by law may not receive bonus payments in any 
        year that exceed ten percent of the employee's base salary for 
        that year.  For purposes of this section, bonus payments include 
        any combination of merit pay, achievement awards, or any other 
        cash payments in addition to base salary, other than severance 
        pay or overtime or holiday pay.  Groups covered by this section 
        include, but are not limited to, the Workers' Compensation 
        Reinsurance Association, the Minnesota Insurance Guaranty 
        Association, the Fair plan, the Joint Underwriters Association, 
        the Minnesota Joint Underwriters Association, the Life and 
        Health Guaranty Association, the Minnesota Comprehensive Health 
        Association, the Minnesota State High School League, Minnesota 
        Technology, Inc., Agricultural Utilization Research Institute, 
        Minnesota Project Outreach Corporation, State Fund Mutual 
        Insurance Company, and the State Agricultural Society.  This 
        section does not give any entity authority to grant a bonus not 
        otherwise authorized by law. 
           Sec. 7.  Minnesota Statutes 2001 Supplement, section 
        16A.151, is amended by adding a subdivision to read: 
           Subd. 4.  [SUPERSEDE.] This section supersedes section 
        8.31, subdivision 2c.  
           Sec. 8.  Minnesota Statutes 2001 Supplement, section 
        16A.151, is amended by adding a subdivision to read: 
           Subd. 5.  [EXPIRATION.] This section expires June 30, 2004. 
           Sec. 9.  Minnesota Statutes 2000, section 16D.11, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CHARGE TO REFERRING AGENCY.] If collection costs 
        are canceled under subdivision 3, an amount equal to the penalty 
        costs is retained by the commissioner from the debt collected, 
        and is accounted for and subject to the same provisions of this 
        chapter as if the penalty costs had been collected from the 
        debtor. 
           Sec. 10.  Minnesota Statutes 2000, section 17A.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSING PROVISIONS.] Licenses shall be 
        issued to livestock market agencies and public stockyards 
        annually and shall expire on December 31 each year, renewable 
        annually thereafter.  A separate license must be obtained for 
        each separate geographical location even though operated under 
        the same management or same person, partnership, firm, 
        corporation, or livestock market.  The license issued to a 
        livestock market agency and public stockyard shall be 
        conspicuously posted at the licensee's place of business.  
        Licenses shall be required for livestock dealers and their 
        agents for the period beginning July 1 each year and ending June 
        30.  The license issued to a livestock dealer or the agent of a 
        livestock dealer shall be carried by the person so licensed.  
        The livestock dealer shall be responsible for the acts of the 
        dealer's agents.  Licensed livestock market agencies, public 
        stockyards, and livestock dealers shall be responsible for the 
        faithful performance of duty of the public livestock weighers at 
        their places of business.  The license issued to a livestock 
        market agency, public stockyard or livestock dealer or agent of 
        a livestock dealer is not transferable.  The operation of 
        livestock market agencies, livestock dealers, agents and packers 
        at a public stockyard are exempt from sections 17A.01 
        to 17A.091, 17A.09 and 17A.12 to 17A.17. 
           Sec. 11.  Minnesota Statutes 2001 Supplement, section 
        17B.15, subdivision 1, is amended to read: 
           Subdivision 1.  [ADMINISTRATION; APPROPRIATION.] The fees 
        for inspection and weighing shall be fixed by the commissioner 
        and be a lien upon the grain.  The commissioner shall set fees 
        for all inspection and weighing in an amount adequate to pay the 
        expenses of carrying out and enforcing the purposes of sections 
        17B.01 to 17B.22, including the portion of general support costs 
        and statewide indirect costs of the agency attributable to that 
        function, with a reserve sufficient for up to six months.  The 
        commissioner shall review the fee schedule twice each year.  Fee 
        adjustments are not subject to chapter 14.  Payment shall be 
        required for services rendered.  
           All fees collected and all fines and penalties for 
        violation of any provision of this chapter shall be deposited in 
        the grain inspection and weighing account, which is created in 
        the agricultural fund for carrying out the purpose of sections 
        17B.01 to 17B.23 17B.22.  The money in the account, including 
        interest earned on the account, is annually appropriated to the 
        commissioner of agriculture to administer the provisions of 
        sections 17B.01 to 17B.23 17B.22.  When money from any other 
        account is used to administer sections 17B.01 to 17B.23 17B.22, 
        the commissioner shall notify the chairs of the agriculture, 
        environment and natural resources finance, and ways and means 
        committees of the house of representatives; the agriculture and 
        rural development and finance committees of the senate; and the 
        finance division of the environment and natural resources 
        committee of the senate. 
           Sec. 12.  Minnesota Statutes 2000, section 31.51, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RETAIL MEAT MARKET; WHOLESALE MEAT PROCESSING 
        ESTABLISHMENT.] "Retail meat market" or "wholesale meat 
        processing establishment" means an establishment with or without 
        slaughtering facilities, where animal carcasses or edible 
        products derived therefrom are cured, salted, processed, 
        packaged, or otherwise prepared for sale as food intended for 
        human consumption; provided, however, that retail meat market or 
        wholesale meat processing establishment does not include:  (1) a 
        purveyor of meals, or (2) a frozen food processing plant 
        licensed under section 31.185 and in which no slaughtering 
        operations are conducted. 
           Sec. 13.  Minnesota Statutes 2000, section 32.073, is 
        amended to read: 
           32.073 [LICENSES; EXAMINATIONS, QUALIFICATIONS.] 
           A grading and testing license shall be issued by the 
        commissioner to a person making application therefor, after the 
        commissioner has determined that the applicant is competent and 
        qualified to grade and test milk and cream, and that the 
        applicant understands and is familiar with the provisions of 
        sections 32.01 to 32.532 32.486.  Any conviction for violating 
        sections 32.01 to 32.532 32.486 or the standards, grades, and 
        rules adopted by the commissioner shall be taken into 
        consideration in determining whether or not the applicant is 
        competent and qualified. 
           Sec. 14.  Minnesota Statutes 2000, section 41A.09, 
        subdivision 8, is amended to read: 
           Subd. 8.  [PROMOTIONAL AND EDUCATIONAL MATERIALS; 
        DESCRIPTION OF MULTIPLE SOURCES OF ETHANOL REQUIRED.] 
        Promotional or educational efforts related to ethanol that are 
        financed wholly or partially with state funds and that promote 
        or identify a particular crop or commodity used to produce 
        ethanol must also include a description of the other potential 
        sources of ethanol listed in subdivision 2 2a. 
           Sec. 15.  Minnesota Statutes 2000, section 41B.045, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LOAN PARTICIPATION.] The authority may 
        participate in a livestock expansion loan with an eligible 
        lender to a livestock farmer who meets the requirements of 
        section 41B.03, subdivision 1, clauses (1) and (2), and who are 
        actively engaged in a livestock operation.  A prospective 
        borrower must have a total net worth, including assets and 
        liabilities of the borrower's spouse and dependents, of less 
        than $400,000 in 1999 and an amount in subsequent years which is 
        adjusted for inflation by multiplying $400,000 by the cumulative 
        inflation rate as determined by the United States All-Items 
        Consumer Price Index. 
           Participation is limited to 45 percent of the principal 
        amount of the loan or $250,000, whichever is less.  The interest 
        rates and repayment terms of the authority's participation 
        interest may be different from the interest rates and repayment 
        terms of the lender's retained portion of the loan.  Loans under 
        this program must not be included in the lifetime limitation 
        calculated under section 41B.03, subdivision 1. 
           Sec. 16.  Minnesota Statutes 2000, section 41B.046, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LOANS.] (a) The authority may participate in a 
        stock loan with an eligible lender to a farmer who is eligible 
        under subdivision 4.  Participation is limited to 45 percent of 
        the principal amount of the loan or $24,000, whichever is less.  
        The interest rates and repayment terms of the authority's 
        participation interest may differ from the interest rates and 
        repayment terms of the lender's retained portion of the loan, 
        but the authority's interest rate must not exceed 50 percent of 
        the lender's interest rate. 
           (b) No more than 95 percent of the purchase price of the 
        stock may be financed under this program. 
           (c) Loans under this program must not be included in the 
        lifetime limitation calculated under section 41B.03, subdivision 
        1. 
           (d) Security for stock loans must be the stock purchased, a 
        personal note executed by the borrower, and whatever other 
        security is required by the eligible lender or the authority. 
           (e) (d) The authority may impose a reasonable nonrefundable 
        application fee for each application for a stock loan.  The 
        authority may review the fee annually and make adjustments as 
        necessary.  The application fee is initially $50.  Application 
        fees received by the authority must be deposited in the 
        value-added agricultural product revolving fund. 
           (f) (e) Stock loans under this program will be made using 
        money in the value-added agricultural product revolving fund 
        established under subdivision 3. 
           (g) (f) The authority may not grant stock loans in a 
        cumulative amount exceeding $2,000,000 for the financing of 
        stock purchases in any one cooperative. 
           Sec. 17.  Minnesota Statutes 2000, section 41B.047, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LOANS.] (a) The authority may participate in a 
        disaster recovery loan with an eligible lender to a farmer who 
        is eligible under subdivision 3.  Participation is limited to 45 
        percent of the principal amount of the loan or $50,000, 
        whichever is less.  The interest rates and repayment terms of 
        the authority's participation interest may differ from the 
        interest rates and repayment terms of the lender's retained 
        portion of the loan, but the authority's interest rate must not 
        exceed four percent. 
           (b) Standards for loan amortization shall be set by the 
        rural finance authority not to exceed ten years. 
           (c) Loans under this program must not be included in the 
        lifetime limitation calculated under section 41B.03, subdivision 
        1. 
           (d) Security for the disaster recovery loans must be a 
        personal note executed by the borrower and whatever other 
        security is required by the eligible lender or the authority. 
           (e) (d) The authority may impose a reasonable nonrefundable 
        application fee for a disaster recovery loan.  The authority may 
        review the fee annually and make adjustments as necessary.  The 
        application fee is initially $50.  Application fees received by 
        the authority must be deposited in the disaster recovery 
        revolving fund. 
           (f) (e) Disaster recovery loans under this program will be 
        made using money in the disaster recovery revolving fund 
        established under subdivision 2. 
           Sec. 18.  Minnesota Statutes 2000, section 48.24, 
        subdivision 5, is amended to read: 
           Subd. 5.  Loans or obligations shall not be subject under 
        this section to any limitation based upon such capital and 
        surplus to the extent that they are secured or covered by 
        guarantees, or by commitments or agreements to take over or to 
        purchase the same, made by: 
           (1) the commissioner of agriculture on the purchase of 
        agricultural land; 
           (2) any Federal Reserve bank; 
           (3) the United States or any department, bureau, board, 
        commission, or establishment of the United States, including any 
        corporation wholly owned directly or indirectly by the United 
        States; 
           (4) the Minnesota energy trade and economic development 
        authority department; 
           (5) the Minnesota export finance authority; or 
           (6) a municipality or political subdivision within 
        Minnesota to the extent that the guarantee or collateral is a 
        valid and enforceable general obligation of that political body. 
           Sec. 19.  Minnesota Statutes 2001 Supplement, section 
        60K.31, subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE.] For purposes of sections 
        60K.31 60K.30 to 60K.57 60K.56, the terms in subdivisions 2 to 
        18 have the meanings given them.  The definitions in section 
        60A.02 are applicable to terms not defined in this section, 
        unless the language or context clearly indicates that a 
        different meaning is intended. 
           Sec. 20.  Minnesota Statutes 2001 Supplement, section 
        60K.32, is amended to read: 
           60K.32 [LICENSE REQUIRED.] 
           A person shall not sell, solicit, or negotiate insurance in 
        this state for any class or classes of insurance unless the 
        person is licensed for that line of authority under sections 
        60K.31 60K.30 to 60K.57 60K.56.  The license itself does not 
        create any authority, actual, apparent, or inherent, in the 
        holder to represent or commit an insurance carrier. 
           Sec. 21.  Minnesota Statutes 2001 Supplement, section 
        60K.34, subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSE NOT REQUIRED.] Nothing in sections 
        60K.31 60K.30 to 60K.57 60K.56 requires an insurer to obtain an 
        insurance producer license.  In this section, the term "insurer" 
        does not include an insurer's officers, directors, employees, 
        subsidiaries, or affiliates. 
           Sec. 22.  Minnesota Statutes 2001 Supplement, section 
        60K.39, subdivision 5, is amended to read: 
           Subd. 5.  [SURPLUS LINES PRODUCERS.] (a) Notwithstanding 
        any other provision of sections 60K.31 60K.30 to 60K.57 60K.56, 
        a person licensed as a surplus lines producer in the person's 
        home state shall receive a nonresident surplus lines producer 
        license under subdivision 1.  Except as to subdivision 1, 
        nothing in this section otherwise amends or supersedes any 
        provision of sections 60A.195 to 60A.209. 
           (b) No surplus lines agent or broker licensed under 
        sections 60A.195 to 60A.209 may do business in this state unless 
        the agent or broker has complied with the requirements set forth 
        in section 60A.198, subdivision 3, paragraphs (b) to (d). 
           Sec. 23.  Minnesota Statutes 2001 Supplement, section 
        60K.39, subdivision 6, is amended to read: 
           Subd. 6.  [LIMITED LINES PRODUCER.] Notwithstanding any 
        other provision of sections 60K.31 60K.30 to 60K.57 60K.56, a 
        person licensed as a limited line credit insurance or other type 
        of limited lines producer in the person's home state shall 
        receive a nonresident limited lines producer license, under 
        subdivision 1, granting the same scope of authority as granted 
        under the license issued by the producer's home state.  For the 
        purposes of this subdivision, limited line insurance is any 
        authority granted by the home state that restricts the authority 
        of the license to less than the total authority prescribed in 
        the associated major lines pursuant to section 60K.38, 
        subdivision 1, clauses (1) to (6). 
           Sec. 24.  Minnesota Statutes 2001 Supplement, section 
        60K.48, is amended to read: 
           60K.48 [COMMISSIONS.] 
           Subdivision 1.  [PAYMENT PROHIBITED.] An insurance company 
        or insurance producer shall not pay a commission, service fee, 
        brokerage, or other valuable consideration to a person for 
        selling, soliciting, or negotiating insurance in this state if 
        that person is required to be licensed under sections 
        60K.31 60K.30 to 60K.57 60K.56 and is not so licensed.  
           Subd. 2.  [ACCEPTANCE PROHIBITED.] A person shall not 
        accept a commission, service fee, brokerage, or other valuable 
        consideration for selling, soliciting, or negotiating insurance 
        in this state if that person is required to be licensed under 
        sections 60K.31 60K.30 to 60K.57 60K.56 and is not so licensed. 
           Subd. 3.  [EXCEPTIONS.] (a) Renewal or other deferred 
        commissions may be paid to a person for selling, soliciting, or 
        negotiating insurance in this state if the person was required 
        to be licensed under sections 60K.31 60K.30 to 60K.57 60K.56 at 
        the time of the sale, solicitation, or negotiation and was so 
        licensed at that time. 
           (b) An insurer or insurance producer may pay or assign 
        commissions, service fees, brokerages, or other valuable 
        consideration to an insurance agency or to persons who do not 
        sell, solicit, or negotiate insurance in this state, unless the 
        payment would constitute an illegal rebate or otherwise violate 
        section 72A.20, subdivision 10.  A duly licensed producer may 
        pay commissions or assign or direct that commissions be paid to 
        a partnership of which the producer is a member, employee, or 
        agent, or to a corporation of which the agent is an officer, 
        employee, or agent. 
           Sec. 25.  Minnesota Statutes 2001 Supplement, section 
        60K.51, subdivision 6, is amended to read: 
           Subd. 6.  [CLASSIFICATION OF INVESTIGATIVE DATA.] Any 
        documents, materials, or other information in the control or 
        possession of the department of commerce that is furnished by an 
        insurer, producer, or an employee or agent of an insurer or 
        producer acting on behalf of the insurer or producer, or 
        obtained by the commissioner in an investigation pursuant to 
        this section is classified as confidential data pursuant to 
        section 13.41, subdivision 4, or private data pursuant to 
        section 13.41, subdivision 2. 
           Sec. 26.  Minnesota Statutes 2001 Supplement, section 
        60K.52, subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER'S AUTHORITY.] In order to 
        assist in the performance of the commissioner's duties under 
        sections 60K.31 60K.30 to 60K.57 60K.56, the commissioner: 
           (1) may share licensing data or any active or inactive 
        investigative data with other state, federal, and international 
        regulatory agencies, with the National Association of Insurance 
        Commissioners, its affiliates or subsidiaries, and with state, 
        federal, and international law enforcement authorities if the 
        recipient agrees to maintain the data in a manner consistent 
        with its data classification; 
           (2) may receive documents, materials, or information, 
        including otherwise confidential and privileged documents, 
        materials, or information, from the National Association of 
        Insurance Commissioners, its affiliates or subsidiaries, and 
        from regulatory and law enforcement officials of other foreign 
        or domestic jurisdictions, and shall maintain as confidential or 
        privileged any document, material, or information received with 
        notice or the understanding that it is confidential or 
        privileged under the laws of the jurisdiction that is the source 
        of the document, material, or information; and 
           (3) may enter into agreements governing sharing and use of 
        information consistent with this subdivision. 
           No waiver of any applicable privilege or claim of 
        confidentiality in the documents, materials, or information 
        occurs as a result of disclosure to the commissioner under this 
        section or as a result of sharing as authorized in this 
        subdivision. 
           Nothing in sections 60K.31 60K.30 to 60K.57 60K.56 
        prohibits the commissioner from releasing information concerning 
        final, adjudicated actions, including for-cause terminations, to 
        a database or other clearinghouse service maintained by the 
        National Association of Insurance Commissioners, its affiliates, 
        or subsidiaries of the National Association of Insurance 
        Commissioners. 
           Sec. 27.  Minnesota Statutes 2001 Supplement, section 
        61B.23, subdivision 15, is amended to read: 
           Subd. 15.  [VENUE; APPEAL BOND.] Except as otherwise 
        provided in section 61B.24, subdivision 10, or 61B.26, paragraph 
        (c), venue in a suit against the association arising under 
        sections 62B.18 to 62B.32 61B.18 to 61B.32 shall be in Ramsey 
        county.  The association shall not be required to give an appeal 
        bond in an appeal that relates to a cause of action arising 
        under sections 61B.18 to 61B.32. 
           Sec. 28.  [89A.11] [REPEALER.] 
           Sections 89A.01; 89A.02; 89A.03; 89A.04; 89A.05; 89A.06; 
        89A.07; 89A.08; 89A.09; 89A.10; and 89A.11, are repealed June 
        30, 2007. 
           Sec. 29.  Minnesota Statutes 2000, section 115A.06, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [ACQUISITION OF EASEMENTS.] If the office 
        determines that any activity deemed necessary to accomplish its 
        purposes under subdivision 5 constitutes a substantial 
        interference with the possession, enjoyment, or value of the 
        property where the activity will take place, the office may 
        acquire a temporary easement interest in the property that 
        permits the office to carry out the activity and other 
        activities incidental to the accomplishment of the same 
        purposes.  The office may acquire temporary easement interests 
        under this subdivision by purchase, gift, or condemnation.  The 
        right of the office to acquire a temporary easement is subject 
        to the same requirements and may be exercised with the same 
        authority as provided for acquisition of property interests by 
        the commissioner of administration under Minnesota Statutes 
        1994, section 115A.06, subdivision 4. 
           Sec. 30.  Minnesota Statutes 2000, section 115A.59, is 
        amended to read: 
           115A.59 [BOND AUTHORIZATION AND APPROPRIATION OF PROCEEDS.] 
           The commissioner of finance is authorized, upon request of 
        the director, to sell state bonds in the amount of up to 
        $8,800,000 for the purpose of the waste processing facility 
        capital assistance program under section 115A.54, and in the 
        amount of up to $6,200,000 for the purpose of acquiring real 
        property and interests in real property for hazardous waste 
        facility sites and buffer areas as authorized by section 
        115A.06, subdivision 4.  The bonds shall be sold in the manner 
        and upon the conditions prescribed in sections 16A.631 to 
        16A.675, and in the Minnesota Constitution, article XI, sections 
        4 to 7.  The amount of bonds issued pursuant to this 
        authorization shall not exceed at any time the amount needed to 
        produce a balance in the waste management account equal to the 
        aggregate amount of the loans and grants then approved and not 
        previously disbursed, plus the amount of the loans and grants to 
        be approved in the current and the following fiscal year, as 
        estimated by the director. 
           Sec. 31.  Minnesota Statutes 2000, section 115A.9157, 
        subdivision 6, is amended to read: 
           Subd. 6.  [LIST OF PARTICIPANTS.] A manufacturer or its 
        representative organization shall inform the legislative 
        commission on waste management committees listed in subdivision 
        5 when they begin participating in the projects and programs and 
        immediately if they withdraw participation.  The list of 
        participants shall be available to retailers, distributors, 
        governmental agencies, and other interested persons who provide 
        a self-addressed stamped envelope to the commission. 
           Sec. 32.  Minnesota Statutes 2000, section 115B.20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] (a) The environmental 
        response, compensation, and compliance account is in the 
        environmental fund in the state treasury and may be spent only 
        for the purposes provided in subdivision 2.  
           (b) The commissioner of finance shall administer a response 
        account for the agency and the commissioner of agriculture to 
        take removal, response, and other actions authorized under 
        subdivision 2, clauses (1) to (4) and (10) to (12) (9) to (11).  
        The commissioner of finance shall transfer money from the 
        response account to the agency and the commissioner of 
        agriculture to take actions required under subdivision 2, 
        clauses (1) to (4) and (10) to (12) (9) to (11).  
           (c) The commissioner of finance shall administer the 
        account in a manner that allows the commissioner of agriculture 
        and the agency to utilize the money in the account to implement 
        their removal and remedial action duties as effectively as 
        possible. 
           (d) Amounts appropriated to the commissioner of finance 
        under this subdivision shall not be included in the department 
        of finance budget but shall be included in the pollution control 
        agency and department of agriculture budgets. 
           (e) All money recovered by the state under section 115B.04 
        or any other law for injury to, destruction of, or loss of 
        natural resources resulting from the release of a hazardous 
        substance, or a pollutant or contaminant, must be credited to 
        the environmental response, compensation, and compliance account 
        in the environmental fund and is appropriated to the 
        commissioner of natural resources for purposes of subdivision 2, 
        clause (5), consistent with any applicable term of judgments, 
        consent decrees, consent orders, or other administrative actions 
        requiring payments to the state for such purposes.  Before 
        making an expenditure of money appropriated under this 
        paragraph, the commissioner of natural resources shall provide 
        written notice of the proposed expenditure to the chairs of the 
        senate committee on finance, the house of representatives 
        committee on ways and means, the finance division of the senate 
        committee on environment and natural resources, and the house of 
        representatives committee on environment and natural resources 
        finance. 
           Sec. 33.  Minnesota Statutes 2000, section 115B.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PURPOSES FOR WHICH MONEY MAY BE SPENT.] Subject 
        to appropriation by the legislature the money in the account may 
        be spent for any of the following purposes:  
           (1) preparation by the agency and the commissioner of 
        agriculture for taking removal or remedial action under section 
        115B.17, or under chapter 18D, including investigation, 
        monitoring and testing activities, enforcement and compliance 
        efforts relating to the release of hazardous substances, 
        pollutants or contaminants under section 115B.17 or 115B.18, or 
        chapter 18D; 
           (2) removal and remedial actions taken or authorized by the 
        agency or the commissioner of the pollution control agency under 
        section 115B.17, or taken or authorized by the commissioner of 
        agriculture under chapter 18D including related enforcement and 
        compliance efforts under section 115B.17 or 115B.18, or chapter 
        18D, and payment of the state share of the cost of remedial 
        action which may be carried out under a cooperative agreement 
        with the federal government pursuant to the federal Superfund 
        Act, under United States Code, title 42, section 9604(c)(3) for 
        actions related to facilities other than commercial hazardous 
        waste facilities located under the siting authority of chapter 
        115A; 
           (3) reimbursement to any private person for expenditures 
        made before July 1, 1983, to provide alternative water supplies 
        deemed necessary by the agency or the commissioner of 
        agriculture and the department of health to protect the public 
        health from contamination resulting from the release of a 
        hazardous substance; 
           (4) removal and remedial actions taken or authorized by the 
        agency or the commissioner of agriculture or the pollution 
        control agency under section 115B.17, or chapter 18D, including 
        related enforcement and compliance efforts under section 115B.17 
        or 115B.18, or chapter 18D, and payment of the state share of 
        the cost of remedial action which may be carried out under a 
        cooperative agreement with the federal government pursuant to 
        the federal Superfund Act, under United States Code, title 42, 
        section 9604(c)(3) for actions related to commercial hazardous 
        waste facilities located under the siting authority of chapter 
        115A; 
           (5) planning and implementation by the commissioner of 
        natural resources of the rehabilitation, restoration, or 
        acquisition of natural resources to remedy injuries or losses to 
        natural resources resulting from the release of a hazardous 
        substance; 
           (6) inspection, monitoring, and compliance efforts by the 
        agency, or by political subdivisions with agency approval, of 
        commercial hazardous waste facilities located under the siting 
        authority of chapter 115A; 
           (7) grants by the agency or the office of environmental 
        assistance to demonstrate alternatives to land disposal of 
        hazardous waste including reduction, separation, pretreatment, 
        processing and resource recovery, for education of persons 
        involved in regulating and handling hazardous waste; 
           (8) intervention and environmental mediation by the 
        legislative commission on waste management under chapter 115A; 
           (9) grants by the agency to study the extent of 
        contamination and feasibility of cleanup of hazardous substances 
        and pollutants or contaminants in major waterways of the state; 
           (10) (9) acquisition of a property interest under section 
        115B.17, subdivision 15; 
           (11) (10) reimbursement, in an amount to be determined by 
        the agency in each case, to a political subdivision that is not 
        a responsible person under section 115B.03, for reasonable and 
        necessary expenditures resulting from an emergency caused by a 
        release or threatened release of a hazardous substance, 
        pollutant, or contaminant; and 
           (12) (11) reimbursement to a political subdivision for 
        expenditures in excess of the liability limit under section 
        115B.04, subdivision 4. 
           Sec. 34.  Minnesota Statutes 2000, section 115B.20, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RECOMMENDATION.] The legislative commission on 
        waste management and the commissioner of agriculture shall make 
        recommendations to the standing legislative committees on 
        finance and appropriations regarding appropriations from the 
        account. 
           Sec. 35.  Minnesota Statutes 2000, section 116J.615, is 
        amended to read: 
           116J.615 [OFFICE OF TOURISM.] 
           Subdivision 1.  [DUTIES OF DIRECTOR DEPUTY COMMISSIONER.] 
        The director deputy commissioner of the office of tourism shall: 
           (1) publish, disseminate, and distribute informational and 
        promotional literature; 
           (2) promote and encourage the expansion and development of 
        international tourism marketing; 
           (3) advertise and disseminate information about travel 
        opportunities in the state of Minnesota; 
           (4) aid various local communities to improve their tourism 
        marketing programs; 
           (5) coordinate and implement a comprehensive state tourism 
        marketing program that takes into consideration all public and 
        private businesses and attractions; 
           (6) conduct market research and analysis to improve 
        marketing techniques in the area of tourism; 
           (7) investigate and study conditions affecting Minnesota's 
        tourism industry, collect and disseminate information, and 
        engage in technical studies, scientific investigations, and 
        statistical research and educational activities necessary or 
        useful for the proper execution of the powers and duties of the 
        director deputy commissioner in promoting and developing 
        Minnesota's tourism industry, both within and outside the state; 
           (8) apply for, accept, receive, and expend any funds for 
        the promotion of tourism in Minnesota.  All money received by 
        the director deputy commissioner under this subdivision shall be 
        deposited in the state treasury and is appropriated to 
        the director deputy commissioner for the purposes for which the 
        money has been received.  The director deputy commissioner may 
        enter into interagency agreements and may agree to share net 
        revenues with the contributing agencies.  The money does not 
        cancel and is available until expended; and 
           (9) plan and conduct information and publicity programs to 
        attract tourists, visitors, and other interested persons from 
        outside the state to this state; encourage and coordinate 
        efforts of other public and private organizations or groups of 
        citizens to publicize facilities and attractions in this state; 
        and work with representatives of the hospitality and tourism 
        industry to carry out its programs. 
           Sec. 36.  Minnesota Statutes 2000, section 116J.616, is 
        amended to read: 
           116J.616 [SPECIFIC AGREEMENTS PROHIBITED.] 
           The commissioner or director deputy commissioner of the 
        office of tourism may not enter into an agreement which would 
        obligate the state to pay any part of a debt incurred by a 
        public or private facility, organization, or attraction. 
           Sec. 37.  Minnesota Statutes 2000, section 119A.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ADVISORY COUNCIL.] "Advisory council" means the 
        advisory council established under section 119A.13 119A.35. 
           Sec. 38.  Minnesota Statutes 2000, section 119A.20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
        119A.20 to 119A.23 119A.22, the following terms have the 
        meanings given.  
           Sec. 39.  Minnesota Statutes 2001 Supplement, section 
        119A.22, is amended to read: 
           119A.22 [DUTIES OF COMMISSIONER.] 
           The commissioner shall:  
           (1) review applications and award grants to programs 
        pursuant to section 119A.21; 
           (2) design a uniform method of collecting data to be used 
        to monitor and assure compliance of the programs funded under 
        section 119A.21; 
           (3) provide technical assistance to applicants in the 
        development of grant requests and to grantees in meeting the 
        data collection requirements established by the commissioner; 
        and 
           (4) adopt, under chapter 14, all rules necessary to 
        implement the provisions of sections 119A.20 to 119A.23 119A.22. 
           Sec. 40.  Minnesota Statutes 2000, section 119A.37, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FUNDING.] The commissioner may award grants to 
        create or maintain parenting time centers. 
           In awarding grants to maintain a parenting time center, the 
        commissioner may award a grant to a center that can demonstrate 
        a 35 25 percent local match, provided the center is diligently 
        exploring and pursuing all available funding options in an 
        effort to become self-sustaining, and those efforts are reported 
        to the commissioner. 
           In awarding grants to create a parenting time center, the 
        commissioner shall give priority to: 
           (1) areas of the state where no other parenting time center 
        or similar facility exists; 
           (2) applicants who demonstrate that private funding for the 
        center is available and will continue; and 
           (3) facilities that are adapted for use to care for 
        children, such as day care centers, religious institutions, 
        community centers, schools, technical colleges, parenting 
        resource centers, and child care referral services.  
           In awarding grants to create or maintain a parenting time 
        center, the commissioner shall require the proposed center to 
        meet standards developed by the commissioner to ensure the 
        safety of the custodial parent and children. 
           Sec. 41.  Minnesota Statutes 2000, section 119A.46, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ON-THE-JOB TRAINING COMPONENT.] (a) Programs 
        established under this section must provide on-the-job training 
        for swab team workers.  Training methods must follow procedures 
        established under section 144.9506.  
           (b) Swab team workers must receive monetary compensation 
        equal to the prevailing wage as defined in section 177.42, 
        subdivision 6, for comparable jobs in the licensed contractor's 
        principal business. 
           Sec. 42.  Minnesota Statutes 2000, section 122A.20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GROUNDS FOR REVOCATION, SUSPENSION, OR 
        DENIAL.] (a) The board of teaching or the commissioner, with the 
        advice from an advisory task force of supervisory personnel 
        established under section 15.014 board of school administrators, 
        whichever has jurisdiction over a teacher's licensure, may, on 
        the written complaint of the school board employing a teacher, a 
        teacher organization, or any other interested person, refuse to 
        issue, refuse to renew, suspend, or revoke a teacher's license 
        to teach for any of the following causes: 
           (1) Immoral character or conduct; 
           (2) Failure, without justifiable cause, to teach for the 
        term of the teacher's contract; 
           (3) Gross inefficiency or willful neglect of duty; or 
           (4) Failure to meet licensure requirements; or 
           (5) Fraud or misrepresentation in obtaining a license. 
           The written complaint must specify the nature and character 
        of the charges.  
           (b) The board of teaching or the commissioner of children, 
        families, and learning board of school administrators whichever 
        has jurisdiction over a teacher's licensure, shall refuse to 
        issue, refuse to renew, or automatically revoke a teacher's 
        license to teach without the right to a hearing upon receiving a 
        certified copy of a conviction showing that the teacher has been 
        convicted of child abuse, as defined in section 609.185, or 
        sexual abuse under section 609.342, 609.343, 609.344, 609.345, 
        609.3451, subdivision 3, or 617.23, subdivision 3, or under a 
        similar law of another state or the United States.  The board 
        shall send notice of this licensing action to the district in 
        which the teacher is currently employed. 
           (c) A person whose license to teach has been revoked, not 
        issued, or not renewed under paragraph (b), may petition the 
        board to reconsider the licensing action if the person's 
        conviction for child abuse or sexual abuse is reversed by a 
        final decision of the court of appeals or the supreme court or 
        if the person has received a pardon for the offense.  The 
        petitioner shall attach a certified copy of the appellate 
        court's final decision or the pardon to the petition.  Upon 
        receiving the petition and its attachment, the board shall 
        schedule and hold a disciplinary hearing on the matter under 
        section 214.10, subdivision 2, unless the petitioner waives the 
        right to a hearing.  If the board finds that, notwithstanding 
        the reversal of the petitioner's criminal conviction or the 
        issuance of a pardon, the petitioner is disqualified from 
        teaching under paragraph (a), clause (1), the board shall affirm 
        its previous licensing action.  If the board finds that the 
        petitioner is not disqualified from teaching under paragraph 
        (a), clause (1), it shall reverse its previous licensing action. 
           (d) For purposes of this subdivision, the board of teaching 
        is delegated the authority to suspend or revoke coaching 
        licenses. 
           Sec. 43.  Minnesota Statutes 2000, section 123B.61, is 
        amended to read: 
           123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 
           The board of a district may issue general obligation 
        certificates of indebtedness or capital notes subject to the 
        district debt limits to:  (a) purchase vehicles, computers, 
        telephone systems, cable equipment, photocopy and office 
        equipment, technological equipment for instruction, and other 
        capital equipment having an expected useful life at least as 
        long as the terms of the certificates or notes; (b) purchase 
        computer hardware and software, without regard to its expected 
        useful life, whether bundled with machinery or equipment or 
        unbundled, together with application development services and 
        training related to the use of the computer; and (c) prepay 
        special assessments.  The certificates or notes must be payable 
        in not more than five years and must be issued on the terms and 
        in the manner determined by the board, except that certificates 
        or notes issued to prepay special assessments must be payable in 
        not more than 20 years.  The certificates or notes may be issued 
        by resolution and without the requirement for an election.  The 
        certificates or notes are general obligation bonds for purposes 
        of section 126C.55.  A tax levy must be made for the payment of 
        the principal and interest on the certificates or notes, in 
        accordance with section 475.61, as in the case of bonds.  The 
        sum of the tax levies under this section and section 123B.62 for 
        each year must not exceed the lesser of the amount of the 
        district's total operating capital revenue or the sum of the 
        district's levy in the general and community service funds 
        excluding the adjustments under this section for the year 
        preceding the year the initial debt service levies are 
        certified.  The district's general education fund levy for each 
        year must be reduced by the sum of (1) the amount of the tax 
        levies for debt service certified for each year for payment of 
        the principal and interest on the certificates or notes issued 
        under this section as required by section 475.61, (2) the amount 
        of the tax levies for debt service certified for each year for 
        payment of the principal and interest on bonds issued under 
        section 123B.62, and (2) (3) any excess amount in the debt 
        redemption fund used to retire bonds, certificates, or notes 
        issued under this section or section 123B.62 after April 1, 
        1997, other than amounts used to pay capitalized interest.  If 
        the district's general fund levy is less than the amount of the 
        reduction, the balance shall be deducted first from the 
        district's community service fund levy, and next from the 
        district's general fund or community service fund levies for the 
        following year.  A district using an excess amount in the debt 
        redemption fund to retire the certificates or notes shall report 
        the amount used for this purpose to the commissioner by July 15 
        of the following fiscal year.  A district having an outstanding 
        capital loan under section 126C.69 or an outstanding debt 
        service loan under section 126C.68 must not use an excess amount 
        in the debt redemption fund to retire the certificates or notes. 
           Sec. 44.  Minnesota Statutes 2000, section 123B.62, is 
        amended to read: 
           123B.62 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
           (a) In addition to other bonding authority, with approval 
        of the commissioner, a district may issue general obligation 
        bonds for certain capital projects under this section.  The 
        bonds must be used only to make capital improvements including: 
           (1) under section 126C.10, subdivision 14, total operating 
        capital revenue uses specified in clauses (4), (6), (7), (8), 
        (9), and (10); 
           (2) the cost of energy modifications; 
           (3) improving handicap accessibility to school buildings; 
        and 
           (4) bringing school buildings into compliance with life and 
        safety codes and fire codes.  
           (b) Before a district issues bonds under this subdivision, 
        it must publish notice of the intended projects, the amount of 
        the bond issue, and the total amount of district indebtedness.  
           (c) A bond issue tentatively authorized by the board under 
        this subdivision becomes finally authorized unless a petition 
        signed by more than 15 percent of the registered voters of the 
        district is filed with the school board within 30 days of the 
        board's adoption of a resolution stating the board's intention 
        to issue bonds.  The percentage is to be determined with 
        reference to the number of registered voters in the district on 
        the last day before the petition is filed with the board.  The 
        petition must call for a referendum on the question of whether 
        to issue the bonds for the projects under this section.  The 
        approval of 50 percent plus one of those voting on the question 
        is required to pass a referendum authorized by this section. 
           (d) The bonds must be paid off within ten years of 
        issuance.  The bonds must be issued in compliance with chapter 
        475, except as otherwise provided in this section.  A tax levy 
        must be made for the payment of principal and interest on the 
        bonds in accordance with section 475.61.  The sum of the tax 
        levies under this section and section 123B.61 for each year must 
        not exceed the amount of the district's total operating capital 
        revenue for the year the initial debt service levies are 
        certified limit specified in section 123B.61.  The district's 
        general education levy for each year must be reduced by the sum 
        of (1) the amount of the tax levies for debt service certified 
        for each year for payment of the principal and interest on the 
        bonds, and (2) any excess amount in the debt redemption fund 
        used to retire bonds issued after April 1, 1997, other than 
        amounts used to pay capitalized interest as provided in section 
        123B.61.  A district using an excess amount in the debt 
        redemption fund to retire the bonds shall report the amount used 
        for this purpose to the commissioner by July 15 of the following 
        fiscal year.  A district having an outstanding capital loan 
        under section 126C.69 or an outstanding debt service loan under 
        section 126C.68 must not use an excess amount in the debt 
        redemption fund to retire the bonds. 
           (e) Notwithstanding paragraph (d), bonds issued by a 
        district within the first five years following voter approval of 
        a combination according to section 123A.37, subdivision 2, must 
        be paid off within 20 years of issuance.  All the other 
        provisions and limitation of paragraph (d) apply. 
           Sec. 45.  Minnesota Statutes 2001 Supplement, section 
        125A.09, subdivision 3, is amended to read: 
           Subd. 3.  [INITIAL ACTION; PARENT CONSENT.] (a) The 
        district must not proceed with the initial formal assessment 
        evaluation of a child, the initial placement of a child in a 
        special education program, or the initial provision of special 
        education services for a child without the prior written consent 
        of the child's parent or guardian.  The refusal of a parent or 
        guardian to consent to an initial evaluation or reevaluation may 
        be overridden by the decision in a hearing held pursuant to 
        subdivision 6 at the district's initiative. 
           (b) A parent, after consulting with health care, education, 
        or other professional providers, may agree or disagree to 
        provide the parent's child with sympathomimetic medications 
        unless section 144.344 applies. 
           Sec. 46.  Minnesota Statutes 2001 Supplement, section 
        126C.10, subdivision 4, is amended to read: 
           Subd. 4.  [BASIC SKILLS REVENUE.] (a) For fiscal year 2002, 
        a school district's basic skills revenue equals the sum of: 
           (1) compensatory revenue under subdivision 3; plus 
           (2) limited English proficiency revenue according to 
        section 124D.65, subdivision 5; plus 
           (3) $190 times the limited English proficiency pupil units 
        according to section 126C.05, subdivision 17; plus 
           (4) $22.50 times the number of adjusted marginal cost pupil 
        units in kindergarten to grade 8. 
           (b) For fiscal year 2003 and later, a school district's 
        basic skills revenue equals the sum of: 
           (1) compensatory revenue under subdivision 3; plus 
           (2) limited English proficiency revenue under section 
        124D.65, subdivision 5; plus 
           (3) $190 times the limited English proficiency pupil units 
        under section 126C.05, subdivision 17. 
           Sec. 47.  Minnesota Statutes 2000, section 126C.10, 
        subdivision 26, is amended to read: 
           Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
        equals the greater of zero or the difference between the 
        district's adjusted general revenue and the value of the school 
        district at or immediately above the regional 90th 95th 
        percentile of adjusted general revenue per adjusted marginal 
        cost pupil unit. 
           [EFFECTIVE DATE.] This section is effective for revenue for 
        fiscal year 2002. 
           Sec. 48.  Minnesota Statutes 2001 Supplement, section 
        136G.03, subdivision 20, is amended to read: 
           Subd. 20.  [MAXIMUM ACCOUNT BALANCE LIMIT.] "Maximum 
        account balance limit" means the amount established by the 
        office under section 136.2441 136G.09, subdivision 8, paragraph 
        (d). 
           Sec. 49.  Minnesota Statutes 2001 Supplement, section 
        144.057, subdivision 4, is amended to read: 
           Subd. 4.  [RESPONSIBILITIES OF FACILITIES AND AGENCIES.] 
        Facilities and agencies described in subdivision 1 shall be 
        responsible for cooperating with the departments in implementing 
        the provisions of this section.  The responsibilities imposed on 
        applicants and licensees under chapter 245A shall apply to these 
        facilities and supplemental nursing services agencies.  The 
        provision of section 245A.04, subdivision 3, paragraph (e) (n), 
        shall apply to applicants, licensees, registrants, or an 
        individual's refusal to cooperate with the completion of the 
        background studies.  Supplemental nursing services agencies 
        subject to the registration requirements in section 144A.71 must 
        maintain records verifying compliance with the background study 
        requirements under this section. 
           Sec. 50.  Minnesota Statutes 2000, section 144E.43, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AWARD PAYMENTS.] (a) The emergency medical 
        services regulatory board or the board's designee under section 
        144E.40, subdivision 2, shall pay ambulance service personnel 
        longevity awards to qualified ambulance service personnel 
        determined to be entitled to an award under section 144E.46 by 
        the board based on the submissions by the various ambulance 
        services. Amounts necessary to pay the ambulance service 
        personnel longevity award are appropriated from the ambulance 
        service personnel longevity award and incentive trust account to 
        the board.  
           (b) If the state of Minnesota is unable to meet its 
        financial obligations as they become due, the commissioner of 
        health board shall undertake all necessary steps to discontinue 
        paying ambulance service personnel longevity awards until the 
        state of Minnesota is again able to meet its financial 
        obligations as they become due. 
           Sec. 51.  Minnesota Statutes 2000, section 148.71, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FOREIGN-TRAINED PHYSICAL THERAPISTS; TEMPORARY 
        PERMITS.] (a) The board of medical practice physical therapy may 
        issue a temporary permit to a foreign-trained physical therapist 
        who: 
           (1) is enrolled in a supervised physical therapy 
        traineeship that meets the requirements under paragraph (b); 
           (2) has completed a physical therapy education program 
        equivalent to that under section 148.705 and Minnesota Rules, 
        part 5601.0800, subpart 2; 
           (3) has achieved a score of at least 550 on the test of 
        English as a foreign language or a score of at least 85 on the 
        Minnesota battery test; and 
           (4) has paid a nonrefundable fee set by the board. 
           A foreign-trained physical therapist must have the 
        temporary permit before beginning a traineeship. 
           (b) A supervised physical therapy traineeship must: 
           (1) be at least six months; 
           (2) be at a board-approved facility; 
           (3) provide a broad base of clinical experience to the 
        foreign-trained physical therapist including a variety of 
        physical agents, therapeutic exercises, evaluation procedures, 
        and patient diagnoses; 
           (4) be supervised by a physical therapist who has at least 
        three years of clinical experience and is licensed under 
        subdivision 1; and 
           (5) be approved by the board before the foreign-trained 
        physical therapist begins the traineeship. 
           (c) A temporary permit is effective on the first day of a 
        traineeship and expires 90 days after the next examination for 
        licensing given by the board following successful completion of 
        the traineeship or on the date on which the board, after 
        examination of the applicant, grants or denies the applicant a 
        license to practice, whichever occurs first. 
           (d) A foreign-trained physical therapist must successfully 
        complete a traineeship to be licensed as a physical therapist 
        under subdivision 1.  The traineeship may be waived for a 
        foreign-trained physical therapist who is licensed or otherwise 
        registered in good standing in another state and has 
        successfully practiced physical therapy in that state under the 
        supervision of a licensed or registered physical therapist for 
        at least six months at a facility that meets the requirements 
        under paragraph (b), clauses (2) and (3). 
           (e) A temporary permit will not be issued to a 
        foreign-trained applicant who has been issued a temporary permit 
        for longer than six months in any other state. 
           Sec. 52.  Minnesota Statutes 2001 Supplement, section 
        169.073, is amended to read: 
           169.073 [PROHIBITED LIGHT OR SIGNAL.] 
           (a) No person or corporation shall place, maintain or 
        display any red light or red sign, signal, or lighting device or 
        maintain it in view of any highway or any line of railroad on or 
        over which trains are operated in such a way as to interfere 
        with the effectiveness or efficiency of any highway 
        traffic-control device or signals or devices used in the 
        operation of a railroad.  Upon written notice from the 
        commissioner of transportation, a person or corporation 
        maintaining or owning or displaying a prohibited light shall 
        promptly remove it, or change the color of it to some other 
        color than red.  Where a prohibited light or sign interferes 
        with the effectiveness or efficiency of the signals or devices 
        used in the operation of a railroad, the department of 
        transportation may cause the removal of it and the department 
        may issue notices and orders for its removal.  The department 
        shall proceed as provided in sections 216.13, 216.14, 216.15, 
        216.16, and 216.17, with a right of appeal to the aggrieved 
        party in accordance with chapter 14. 
           (b) No person or corporation shall maintain or display any 
        light after written notice from the commissioner of 
        transportation or the department of public service that the 
        light constitutes a traffic hazard and that it the commissioner 
        has ordered the removal thereof. 
           Sec. 53.  Minnesota Statutes 2001 Supplement, section 
        214.01, subdivision 3, is amended to read: 
           Subd. 3.  [NON-HEALTH-RELATED LICENSING BOARD.] 
        "Non-health-related licensing board" means the board of teaching 
        established pursuant to section 122A.07, the board of barber 
        examiners established pursuant to section 154.22, the board of 
        assessors established pursuant to section 270.41, the board of 
        architecture, engineering, land surveying, landscape 
        architecture, geoscience, and interior design established 
        pursuant to section 326.04, the board of electricity established 
        pursuant to section 326.241, the private detective and 
        protective agent licensing board established pursuant to section 
        326.33, the board of accountancy established pursuant to section 
        326A.02, the board of boxing established pursuant to section 
        341.01, and the peace officer standards and training board 
        established pursuant to section 626.841. 
           Sec. 54.  Minnesota Statutes 2001 Supplement, section 
        216B.098, subdivision 2, is amended to read: 
           Subd. 2.  [BUDGET BILLING PLANS.] A utility shall offer a 
        customer a budget billing plan for payment of charges for 
        service, including adequate notice to customers prior to 
        changing budget payment amounts.  Municipal utilities having 
        3,000 or fewer customers are exempt from this requirement.  
        Municipal utilities having more than 3,000 customers shall 
        implement this requirement within two years of the effective 
        date of this chapter before July 1, 2003. 
           Sec. 55.  Minnesota Statutes 2001 Supplement, section 
        216B.2424, subdivision 5, is amended to read: 
           Subd. 5.  [MANDATE.] (a) A public utility, as defined in 
        section 216B.02, subdivision 4, that operates a nuclear-powered 
        electric generating plant within this state must construct and 
        operate, purchase, or contract to construct and operate (1) by 
        December 31, 1998, 50 megawatts of electric energy installed 
        capacity generated by farm-grown closed-loop biomass scheduled 
        to be operational by December 31, 2001; and (2) by December 31, 
        1998, an additional 75 megawatts of installed capacity so 
        generated scheduled to be operational by December 31, 2002.  
           (b) Of the 125 megawatts of biomass electricity installed 
        capacity required under this subdivision, no more than 50 
        megawatts of this capacity may be provided by a facility that 
        uses poultry litter as its primary fuel source and any such 
        facility:  
           (1) need not use biomass that complies with the definition 
        in subdivision 1; 
           (2) must enter into a contract with the public utility for 
        such capacity, that has an average purchase price per megawatt 
        hour over the life of the contract that is equal to or less than 
        the average purchase price per megawatt hour over the life of 
        the contract in contracts approved by the public utilities 
        commission before April 1, 2000, to satisfy the mandate of this 
        section, and file that contract with the public utilities 
        commission prior to September 1, 2000; and 
           (3) must schedule such capacity must be scheduled to be 
        operational by December 31, 2002.  
           (c) Of the total 125 megawatts of biomass electric energy 
        installed capacity required under this section, no more than 75 
        megawatts may be provided by a single project.  
           (d) Of the 75 megawatts of biomass electric energy 
        installed capacity required under paragraph (a), clause (2), no 
        more than 25 megawatts of this capacity may be provided by a St. 
        Paul district heating and cooling system cogeneration facility 
        utilizing waste wood as a primary fuel source.  The St. Paul 
        district heating and cooling system cogeneration facility need 
        not use biomass that complies with the definition in subdivision 
        1.  
           (e) The public utility must accept and consider on an equal 
        basis with other biomass proposals: 
           (1) a proposal to satisfy the requirements of this section 
        that includes a project that exceeds the megawatt capacity 
        requirements of either paragraph (a), clause (1) or (2), and 
        that proposes to sell the excess capacity to the public utility 
        or to other purchasers; and 
           (2) a proposal for a new facility to satisfy more than ten 
        but not more than 20 megawatts of the electrical generation 
        requirements by a small business-sponsored independent power 
        producer facility to be located within the northern quarter of 
        the state, which means the area located north of Constitutional 
        Route No. 8 as described in section 161.114, subdivision 2, and 
        that utilizes biomass residue wood, sawdust, bark, chipped wood, 
        or brush to generate electricity.  A facility described in this 
        clause is not required to utilize biomass complying with the 
        definition in subdivision 1, but must have the capacity required 
        by this clause operational by December 31, 2002. 
           (f) If a public utility files a contract with the 
        commission for electric energy installed capacity that uses 
        poultry litter as its primary fuel source, the commission must 
        do a preliminary review of the contract to determine if it meets 
        the purchase price criteria provided in paragraph (b), clause 
        (2), of this subdivision.  The commission shall perform its 
        review and advise the parties of its determination within 30 
        days of filing of such a contract by a public utility.  A public 
        utility may submit by September 1, 2000, a revised contract to 
        address the commission's preliminary determination.  
           (g) The commission shall finally approve, modify, or 
        disapprove no later than July 1, 2001, all contracts submitted 
        by a public utility as of September 1, 2000, to meet the mandate 
        set forth in this subdivision.  
           (h) If a public utility subject to this section exercises 
        an option to increase the generating capacity of a project in a 
        contract approved by the commission prior to April 25, 2000, to 
        satisfy the mandate in this subdivision, the public utility must 
        notify the commission by September 1, 2000, that it has 
        exercised the option and include in the notice the amount of 
        additional megawatts to be generated under the option 
        exercised.  Any review by the commission of the project after 
        exercise of such an option shall be based on the same criteria 
        used to review the existing contract. 
           (i) A facility specified in this subdivision qualifies for 
        exemption from property taxation under section 272.02, 
        subdivision 43. 
           Sec. 56.  Minnesota Statutes 2001 Supplement, section 
        216B.2425, subdivision 3, is amended to read: 
           Subd. 3.  [COMMISSION APPROVAL.] By June 1 of each 
        even-numbered year, the commission shall adopt a state 
        transmission project list and shall certify, certify as 
        modified, or deny certification of the projects proposed under 
        subdivision 2.  The commission may only certify a project that 
        is a high-voltage transmission line as defined in section 
        216B.2421, subdivision 2, that the commission finds is: 
           (1) necessary to maintain or enhance the reliability of 
        electric service to Minnesota consumers; 
           (2) needed, applying the criteria in section 216B.241 
        216B.243, subdivision 3; and 
           (3) in the public interest, taking into account electric 
        energy system needs and economic, environmental, and social 
        interests affected by the project. 
           Sec. 57.  Minnesota Statutes 2000, section 219.98, is 
        amended to read: 
           219.98 [FEES FOR APPLYING FOR ORDER.] 
           A person other than the state, a state agency, or a 
        political subdivision, who applies for an order of the 
        commissioner of transportation relating to clearances under 
        section 219.47, permitting the abandonment or removal of track 
        under section 219.741, or permitting abandonment of a station or 
        discontinuance or reduction of agency service under section 
        219.85, shall pay, at the time the application is filed, into 
        the state treasury a fee of $100.  A person other than the 
        state, a state agency, or a political subdivision, applying for 
        an order of the commissioner under any other provision of this 
        chapter shall pay, at the time the application is filed, into 
        the state treasury a fee of $50. 
           Sec. 58.  Minnesota Statutes 2000, section 221.185, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [REINSTATEMENT AFTER CANCELLATION.] A motor 
        carrier whose permit or certificate is canceled for failure to 
        comply with sections 221.141 and 221.296 relating to bonds and 
        insurance may ask the board commissioner to review the 
        cancellation.  Upon review, the board commissioner shall rescind 
        the cancellation if:  (1) the motor carrier presents evidence 
        showing that before the effective date of the notice of 
        cancellation issued under subdivision 5, the motor carrier had 
        obtained and paid for the insurance required by sections 221.141 
        and 221.296, and the rules of the commissioner, and (2) the 
        commissioner informs the board is satisfied that the motor 
        carrier has complied with the requirements of sections 221.141 
        and 221.296 and the rules of the commissioner. 
           Sec. 59.  Minnesota Statutes 2000, section 222.631, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TERMS.] For purposes of sections 
        222.631 to 222.633 and 222.632, the following terms have the 
        meanings given them. 
           Sec. 60.  Minnesota Statutes 2000, section 260B.171, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PEACE OFFICER RECORDS OF CHILDREN.] (a) Except 
        for records relating to an offense where proceedings are public 
        under section 260B.163, subdivision 1, peace officers' records 
        of children who are or may be delinquent or who may be engaged 
        in criminal acts shall be kept separate from records of persons 
        18 years of age or older and are private data but shall be 
        disseminated:  (1) by order of the juvenile court, (2) as 
        required by section 121A.28, (3) as authorized under section 
        13.82, subdivision 2, (4) to the child or the child's parent or 
        guardian unless disclosure of a record would interfere with an 
        ongoing investigation, (5) to the Minnesota crime victims 
        reparations board as required by section 611A.56, subdivision 2, 
        clause (f), for the purpose of processing claims for crime 
        victims reparations, or (6) as otherwise provided in this 
        subdivision.  Except as provided in paragraph (c), no 
        photographs of a child taken into custody may be taken without 
        the consent of the juvenile court unless the child is alleged to 
        have violated section 169A.20.  Peace officers' records 
        containing data about children who are victims of crimes or 
        witnesses to crimes must be administered consistent with section 
        13.82, subdivisions 2, 3, 4 6, and 10 17.  Any person violating 
        any of the provisions of this subdivision shall be guilty of a 
        misdemeanor. 
           In the case of computerized records maintained about 
        juveniles by peace officers, the requirement of this subdivision 
        that records about juveniles must be kept separate from adult 
        records does not mean that a law enforcement agency must keep 
        its records concerning juveniles on a separate computer system.  
        Law enforcement agencies may keep juvenile records on the same 
        computer as adult records and may use a common index to access 
        both juvenile and adult records so long as the agency has in 
        place procedures that keep juvenile records in a separate place 
        in computer storage and that comply with the special data 
        retention and other requirements associated with protecting data 
        on juveniles. 
           (b) Nothing in this subdivision prohibits the exchange of 
        information by law enforcement agencies if the exchanged 
        information is pertinent and necessary for law enforcement 
        purposes. 
           (c) A photograph may be taken of a child taken into custody 
        pursuant to section 260B.175, subdivision 1, clause (b), 
        provided that the photograph must be destroyed when the child 
        reaches the age of 19 years.  The commissioner of corrections 
        may photograph juveniles whose legal custody is transferred to 
        the commissioner.  Photographs of juveniles authorized by this 
        paragraph may be used only for institution management purposes, 
        case supervision by parole agents, and to assist law enforcement 
        agencies to apprehend juvenile offenders.  The commissioner 
        shall maintain photographs of juveniles in the same manner as 
        juvenile court records and names under this section. 
           (d) Traffic investigation reports are open to inspection by 
        a person who has sustained physical harm or economic loss as a 
        result of the traffic accident.  Identifying information on 
        juveniles who are parties to traffic accidents may be disclosed 
        as authorized under section 13.82, subdivision 4, and accident 
        reports required under section 169.09 may be released under 
        section 169.09, subdivision 13, unless the information would 
        identify a juvenile who was taken into custody or who is 
        suspected of committing an offense that would be a crime if 
        committed by an adult, or would associate a juvenile with the 
        offense, and the offense is not an adult court traffic offense 
        under section 260B.225. 
           (e) A law enforcement agency shall notify the principal or 
        chief administrative officer of a juvenile's school of an 
        incident occurring within the agency's jurisdiction if: 
           (1) the agency has probable cause to believe that the 
        juvenile has committed an offense that would be a crime if 
        committed as an adult, that the victim of the offense is a 
        student or staff member of the school, and that notice to the 
        school is reasonably necessary for the protection of the victim; 
        or 
           (2) the agency has probable cause to believe that the 
        juvenile has committed an offense described in subdivision 3, 
        paragraph (a), clauses (1) to (3), that would be a crime if 
        committed by an adult, regardless of whether the victim is a 
        student or staff member of the school. 
           A law enforcement agency is not required to notify the 
        school under this paragraph if the agency determines that notice 
        would jeopardize an ongoing investigation.  Notwithstanding 
        section 138.17, data from a notice received from a law 
        enforcement agency under this paragraph must be destroyed when 
        the juvenile graduates from the school or at the end of the 
        academic year when the juvenile reaches age 23, whichever date 
        is earlier.  For purposes of this paragraph, "school" means a 
        public or private elementary, middle, or secondary school. 
           (f) In any county in which the county attorney operates or 
        authorizes the operation of a juvenile prepetition or pretrial 
        diversion program, a law enforcement agency or county attorney's 
        office may provide the juvenile diversion program with data 
        concerning a juvenile who is a participant in or is being 
        considered for participation in the program. 
           (g) Upon request of a local social services agency, peace 
        officer records of children who are or may be delinquent or who 
        may be engaged in criminal acts may be disseminated to the 
        agency to promote the best interests of the subject of the data. 
           (h) Upon written request, the prosecuting authority shall 
        release investigative data collected by a law enforcement agency 
        to the victim of a criminal act or alleged criminal act or to 
        the victim's legal representative, except as otherwise provided 
        by this paragraph.  Data shall not be released if: 
           (1) the release to the individual subject of the data would 
        be prohibited under section 13.821; or 
           (2) the prosecuting authority reasonably believes: 
           (i) that the release of that data will interfere with the 
        investigation; or 
           (ii) that the request is prompted by a desire on the part 
        of the requester to engage in unlawful activities. 
           Sec. 61.  Minnesota Statutes 2001 Supplement, section 
        268.052, subdivision 1, is amended to read: 
           Subdivision 1.  [PAYMENTS.] In lieu of taxes payable on a 
        quarterly basis, the state of Minnesota or its political 
        subdivisions shall pay into the fund the amount of unemployment 
        benefits charged to its reimbursable account under section 
        268.047.  Payments in the amount of unemployment benefits 
        charged to the reimbursable account during a calendar quarter 
        shall be made on or before the last day of the month following 
        the month that the notice of unemployment benefits paid is sent 
        pursuant to section 268.047, subdivision 6 5.  Past due payments 
        in lieu of taxes shall be subject to the same interest charges 
        and collection procedures that apply to past due taxes. 
           Sec. 62.  Minnesota Statutes 2001 Supplement, section 
        270.07, subdivision 3a, is amended to read: 
           Subd. 3a.  [APPROPRIATION.] An amount sufficient for the 
        reissuance of rebate warrants authorized under this section 
        subdivision 3, paragraph (f), is appropriated to the 
        commissioner from the general fund. 
           Sec. 63.  Minnesota Statutes 2000, section 270.708, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COLLECTION OF LIABILITY.] Any money 
        realized by proceedings under this chapter, whether by seizure, 
        by surrender under section 270.70 (except pursuant to 
        subdivision 9 thereof), by sale of seized property, by sale of 
        property redeemed by the state of Minnesota (if the interest of 
        the state of Minnesota in the property was a lien arising under 
        the provisions of section 270.69), or by agreement, arrangement, 
        or any other means shall be applied as follows: 
           (a) First, against the expenses of the proceedings; then 
           (b) If the property seized and sold is subject to a tax 
        administered by the commissioner of revenue which has not been 
        paid, the amount remaining after applying clause (a) shall next 
        be applied against the tax liability (and, if the tax was not 
        previously assessed, it shall then be assessed); and 
           (c) The amount, if any, remaining after applying clauses 
        (a) and (b) shall be applied against the tax liability in 
        respect of which the levy was made or the sale was conducted. 
           Sec. 64.  Minnesota Statutes 2000, section 270B.15, is 
        amended to read: 
           270B.15 [DISCLOSURE TO LEGISLATIVE AUDITOR.] 
           Returns and return information must be disclosed to the 
        legislative auditor to the extent necessary for the legislative 
        auditor to carry out sections 3.97 to 3.98 3.979. 
           Sec. 65.  Minnesota Statutes 2001 Supplement, section 
        275.28, subdivision 1, is amended to read: 
           Subdivision 1.  [AUDITOR TO MAKE.] The county auditor shall 
        make out the tax lists according to the prescribed form, and to 
        correspond with the assessment districts.  The rate percent 
        necessary to raise the required amount of the various taxes 
        shall be calculated on the net tax capacity of property as 
        determined by the state board of equalization, but, in 
        calculating such rates, no rate shall be used resulting in a 
        fraction other than a decimal fraction, or less than a gross 
        local tax rate of .01 percent or a net local tax rate of .01 
        percent; and, in extending any tax, whenever it amounts to the 
        fractional part of a cent, it shall be made one cent.  The tax 
        lists shall also be made out to correspond with the assessment 
        books in reference to ownership and description of property, 
        with columns for the valuation and for the various items of tax 
        included in the total amount of all taxes set down opposite each 
        description.  The auditor shall enter both the state tax 
        determined under sections 275.02 and 275.025, and the local 
        taxes tax determined under sections section 275.08 and 
        275.083, on the tax lists.  The total ad valorem property tax 
        for each description of property before credits is the sum of 
        the amounts of the various local taxes that apply to the parcel 
        plus the amount of any applicable state tax.  Opposite each 
        description which has been sold for taxes, and which is subject 
        to redemption, but not redeemed, shall be placed the words "sold 
        for taxes."  The amount of all special taxes shall be entered in 
        the proper columns, but the general taxes may be shown by 
        entering the rate percent of each tax at the head of the proper 
        columns, without extending the same, in which case a schedule of 
        the rates percent of such taxes shall be made on the first page 
        of each tax list.  If the auditor fails to enter on any such 
        list before its delivery to the treasurer any tax levied, the 
        tax may be subsequently entered.  The tax lists shall be deemed 
        completed, and all taxes extended thereon, as of January 1 
        annually. 
           Sec. 66.  Minnesota Statutes 2001 Supplement, section 
        275.70, subdivision 5, is amended to read: 
           Subd. 5.  [SPECIAL LEVIES.] "Special levies" means those 
        portions of ad valorem taxes levied by a local governmental unit 
        for the following purposes or in the following manner: 
           (1) to pay the costs of the principal and interest on 
        bonded indebtedness or to reimburse for the amount of liquor 
        store revenues used to pay the principal and interest due on 
        municipal liquor store bonds in the year preceding the year for 
        which the levy limit is calculated; 
           (2) to pay the costs of principal and interest on 
        certificates of indebtedness issued for any corporate purpose 
        except for the following: 
           (i) tax anticipation or aid anticipation certificates of 
        indebtedness; 
           (ii) certificates of indebtedness issued under sections 
        298.28 and 298.282; 
           (iii) certificates of indebtedness used to fund current 
        expenses or to pay the costs of extraordinary expenditures that 
        result from a public emergency; or 
           (iv) certificates of indebtedness used to fund an 
        insufficiency in tax receipts or an insufficiency in other 
        revenue sources; 
           (3) to provide for the bonded indebtedness portion of 
        payments made to another political subdivision of the state of 
        Minnesota; 
           (4) to fund payments made to the Minnesota state armory 
        building commission under section 193.145, subdivision 2, to 
        retire the principal and interest on armory construction bonds; 
           (5) property taxes approved by voters which are levied 
        against the referendum market value as provided under section 
        275.61; 
           (6) to fund matching requirements needed to qualify for 
        federal or state grants or programs to the extent that either 
        (i) the matching requirement exceeds the matching requirement in 
        calendar year 2001, or (ii) it is a new matching requirement 
        that didn't exist prior to 2002; 
           (7) to pay the expenses reasonably and necessarily incurred 
        in preparing for or repairing the effects of natural disaster 
        including the occurrence or threat of widespread or severe 
        damage, injury, or loss of life or property resulting from 
        natural causes, in accordance with standards formulated by the 
        emergency services division of the state department of public 
        safety, as allowed by the commissioner of revenue under section 
        275.74, paragraph (b) subdivision 2; 
           (8) pay amounts required to correct an error in the levy 
        certified to the county auditor by a city or county in a levy 
        year, but only to the extent that when added to the preceding 
        year's levy it is not in excess of an applicable statutory, 
        special law or charter limitation, or the limitation imposed on 
        the governmental subdivision by sections 275.70 to 275.74 in the 
        preceding levy year; 
           (9) to pay an abatement under section 469.1815; 
           (10) to pay any costs attributable to increases in the 
        employer contribution rates under chapter 353 that are effective 
        after June 30, 2001; 
           (11) to pay the operating or maintenance costs of a county 
        jail as authorized in section 641.01 or 641.262, or of a 
        correctional facility as defined in section 241.021, subdivision 
        1, paragraph (5), to the extent that the county can demonstrate 
        to the commissioner of revenue that the amount has been included 
        in the county budget as a direct result of a rule, minimum 
        requirement, minimum standard, or directive of the department of 
        corrections, or to pay the operating or maintenance costs of a 
        regional jail as authorized in section 641.262.  For purposes of 
        this clause, a district court order is not a rule, minimum 
        requirement, minimum standard, or directive of the department of 
        corrections.  If the county utilizes this special levy, any 
        amount levied by the county in the previous levy year for the 
        purposes specified under this clause and included in the 
        county's previous year's levy limitation computed under section 
        275.71, shall be deducted from the levy limit base under section 
        275.71, subdivision 2, when determining the county's current 
        year levy limitation.  The county shall provide the necessary 
        information to the commissioner of revenue for making this 
        determination; 
           (12) to pay for operation of a lake improvement district, 
        as authorized under section 103B.555.  If the county utilizes 
        this special levy, any amount levied by the county in the 
        previous levy year for the purposes specified under this clause 
        and included in the county's previous year's levy limitation 
        computed under section 275.71 shall be deducted from the levy 
        limit base under section 275.71, subdivision 2, when determining 
        the county's current year levy limitation.  The county shall 
        provide the necessary information to the commissioner of revenue 
        for making this determination; 
           (13) to repay a state or federal loan used to fund the 
        direct or indirect required spending by the local government due 
        to a state or federal transportation project or other state or 
        federal capital project.  This authority may only be used if the 
        project is not a local government initiative; 
           (14) for counties only, to pay the costs reasonably 
        expected to be incurred in 2002 related to the redistricting of 
        election districts and establishment of election precincts under 
        sections 204B.135 and 204B.14, the notice required by section 
        204B.14, subdivision 4, and the reassignment of voters in the 
        statewide registration system, not to exceed $1 per capita, 
        provided that the county shall distribute a portion of the 
        amount levied under this clause equal to 25 cents times the 
        population of the city to all cities in the county with a 
        population of 30,000 or more; and 
           (15) to pay for court administration costs as required 
        under section 273.1398, subdivision 4b; however, for taxes 
        levied to pay for these costs in the year in which the court 
        financing is transferred to the state, the amount under this 
        section is limited to one-third of the aid reduction under 
        section 273.1398, subdivision 4a. 
           Sec. 67.  Minnesota Statutes 2001 Supplement, section 
        290A.03, subdivision 13, is amended to read: 
           Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
        payable" means the property tax exclusive of special 
        assessments, penalties, and interest payable on a claimant's 
        homestead after deductions made under sections 273.135, 273.1382 
        273.1384, 273.1391, 273.42, subdivision 2, and any other state 
        paid property tax credits in any calendar year, and after any 
        refund claimed and allowable under section 290A.04, subdivision 
        2h, that is first payable in the year that the property tax is 
        payable.  In the case of a claimant who makes ground lease 
        payments, "property taxes payable" includes the amount of the 
        payments directly attributable to the property taxes assessed 
        against the parcel on which the house is located.  No 
        apportionment or reduction of the "property taxes payable" shall 
        be required for the use of a portion of the claimant's homestead 
        for a business purpose if the claimant does not deduct any 
        business depreciation expenses for the use of a portion of the 
        homestead in the determination of federal adjusted gross 
        income.  For homesteads which are manufactured homes as defined 
        in section 273.125, subdivision 8, and for homesteads which are 
        park trailers taxed as manufactured homes under section 168.012, 
        subdivision 9, "property taxes payable" shall also include 19 
        percent of the gross rent paid in the preceding year for the 
        site on which the homestead is located.  When a homestead is 
        owned by two or more persons as joint tenants or tenants in 
        common, such tenants shall determine between them which tenant 
        may claim the property taxes payable on the homestead.  If they 
        are unable to agree, the matter shall be referred to the 
        commissioner of revenue whose decision shall be final.  Property 
        taxes are considered payable in the year prescribed by law for 
        payment of the taxes. 
           In the case of a claim relating to "property taxes 
        payable," the claimant must have owned and occupied the 
        homestead on January 2 of the year in which the tax is payable 
        and (i) the property must have been classified as homestead 
        property pursuant to section 273.124, on or before December 15 
        of the assessment year to which the "property taxes payable" 
        relate; or (ii) the claimant must provide documentation from the 
        local assessor that application for homestead classification has 
        been made on or before December 15 of the year in which the 
        "property taxes payable" were payable and that the assessor has 
        approved the application. 
           Sec. 68.  Minnesota Statutes 2001 Supplement, section 
        297A.668, subdivision 3, is amended to read: 
           Subd. 3.  [DEFINITION OF TERMS.] For purposes of this 
        section, the terms "receive" and "receipt" mean taking 
        possession of tangible personal property, making first use of 
        services, or taking possession of or making first use of digital 
        goods, whichever occurs first.  The terms receive and receipt do 
        not include possession by a carrier for hire on behalf of the 
        purchaser. 
           Sec. 69.  Minnesota Statutes 2000, section 297B.035, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SALE IN VIOLATION OF LICENSING REQUIREMENT.] 
        Motor vehicles sold by a new motor vehicle dealer in 
        contravention of section 168.27, subdivision 10, paragraph (a), 
        clause (1)(ii), shall not be considered to have been acquired or 
        purchased for resale in the ordinary or regular course of 
        business for the purposes of this chapter, and the dealer shall 
        be required to pay the excise tax due on the purchase of those 
        vehicles.  The sale by a lessor of a new motor vehicle under 
        lease within 120 days of the commencement of the lease is deemed 
        a sale in contravention of section 168.27, subdivision 10, 
        paragraph (a), clause (1)(ii), unless the lessor holds a valid 
        contract or franchise with the manufacturer or distributor of 
        the vehicle.  Notwithstanding section 297B.11, the rights of a 
        dealer to appeal any amounts owed by the dealer under this 
        subdivision are governed exclusively by the hearing procedure 
        under section 168.27, subdivision 13. 
           Sec. 70.  Minnesota Statutes 2000, section 297I.05, 
        subdivision 12, is amended to read: 
           Subd. 12.  [OTHER ENTITIES.] (a) A tax is imposed equal to 
        two percent of: 
           (1) gross premiums less return premiums written for risks 
        resident or located in Minnesota by a risk retention group; 
           (2) gross premiums less return premiums received by an 
        attorney in fact acting in accordance with chapter 71A; 
           (3) gross premiums less return premiums received pursuant 
        to assigned risk policies and contracts of coverage under 
        chapter 79; 
           (4) the direct funded premium received by the reinsurance 
        association under section 79.34 from self-insurers approved 
        under section 176.181 and political subdivisions that 
        self-insure; 
           (5) gross premiums less return premiums received by a 
        nonprofit health service plan corporation authorized under 
        chapter 62C; and 
           (6) gross premiums less return premiums paid to an insurer 
        other than a licensed insurance company or a surplus lines 
        licensee for coverage of risks resident or located in Minnesota 
        by a purchasing group or any members of the purchasing group to 
        a broker or agent for the purchasing group. 
           (b) A tax is imposed on the state fund mutual insurance 
        company established under chapter 176A.  The tax must be 
        computed in the same manner as mutual insurance companies under 
        subdivisions 1, 3, and 4. 
           (c) A tax is imposed on a joint self-insurance plan 
        operating under chapter 60F.  The rate of tax is equal to two 
        percent of the total amount of claims paid during the fund year, 
        with no deduction for claims wholly or partially reimbursed 
        through stop-loss insurance. 
           (d) (c) A tax is imposed on a joint self-insurance plan 
        operating under chapter 62H.  The rate of tax is equal to two 
        percent of the total amount of claims paid during the fund's 
        fiscal year, with no deduction for claims wholly or partially 
        reimbursed through stop-loss insurance. 
           (e) (d) A tax is imposed equal to the tax imposed under 
        section 297I.05, subdivision 5, on the gross premiums less 
        return premiums on all coverages received by an accountable 
        provider network or agents of an accountable provider network in 
        Minnesota, in cash or otherwise, during the year. 
           Sec. 71.  Minnesota Statutes 2000, section 297I.30, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL RULE.] On or before March 1, every 
        insurer subject to taxation under section 297I.05, subdivisions 
        1 to 6, and 12, paragraphs (a), clauses (1) to (5), and (b), and 
        (e), shall file an annual return for the preceding calendar year 
        setting forth such information as the commissioner may 
        reasonably require on forms prescribed by the commissioner. 
           Sec. 72.  Minnesota Statutes 2000, section 297I.30, 
        subdivision 5, is amended to read: 
           Subd. 5.  [JOINT SELF-INSURANCE PLANS.] On or before 60 
        days following the conclusion of their fiscal year, a plan 
        subject to tax under section 297I.05, subdivision 12, paragraph 
        (c) (b) or (d) (c), shall file a return with the commissioner 
        for the preceding fiscal year setting forth any information the 
        commissioner reasonably requires on forms prescribed by the 
        commissioner. 
           Sec. 73.  Minnesota Statutes 2000, section 299F.11, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AUCTION FOR SALVAGE MATERIAL.] In all cases 
        where the order of the court has not been complied with and the 
        state fire marshal is authorized to proceed with the demolition 
        of any building or structure, the state fire marshal shall sell 
        and dispose of the salvage materials therefrom at public auction 
        upon three days' posted notice and all expenses incurred by the 
        state fire marshal shall be paid out of the moneys received from 
        the auction of salvage material, and any deficit remaining 
        unpaid thereafter may be paid out of the funds created by and 
        provided for in section 299F.21.  Should any surplus remain of 
        the amount received for salvage material, after deducting the 
        expenses incurred by the state fire marshal, this surplus shall 
        be paid to the treasurer of the county where the property was 
        situated to be distributed by the treasurer as provided by law. 
           Sec. 74.  Minnesota Statutes 2001 Supplement, section 
        336.9-334, is amended to read: 
           336.9-334 [PRIORITY OF SECURITY INTERESTS IN FIXTURES AND 
        CROPS.] 
           (a)  [SECURITY INTEREST IN FIXTURES UNDER THIS ARTICLE.] A 
        security interest under this article may be created in goods 
        that are fixtures or may continue in goods that become 
        fixtures.  A security interest does not exist under this article 
        in ordinary building materials incorporated into an improvement 
        on land. 
           (b)  [SECURITY INTEREST IN FIXTURES UNDER REAL PROPERTY 
        LAW.] This article does not prevent creation of an encumbrance 
        upon fixtures under real property law. 
           (c)  [GENERAL RULE:  SUBORDINATION OF SECURITY INTEREST IN 
        FIXTURES.] In cases not governed by subsections (d) through (h), 
        a security interest in fixtures is subordinate to a conflicting 
        interest of an encumbrancer or owner of the related real 
        property other than the debtor. 
           (d)  [FIXTURES PURCHASE-MONEY PRIORITY.] Except as 
        otherwise provided in subsection (h), a perfected security 
        interest in fixtures has priority over a conflicting interest of 
        an encumbrancer or owner of the real property if the debtor has 
        an interest of record in or is in possession of the real 
        property and: 
           (1) the security interest is a purchase-money security 
        interest; 
           (2) the interest of the encumbrancer or owner arises before 
        the goods become fixtures; and 
           (3) the security interest is perfected by a fixture filing 
        before the goods become fixtures or within 20 days thereafter. 
           (e)  [PRIORITY OF SECURITY INTEREST IN FIXTURES OVER 
        INTERESTS IN REAL PROPERTY.] A perfected security interest in 
        fixtures has priority over a conflicting interest of an 
        encumbrancer or owner of the real property if: 
           (1) the debtor has an interest of record in the real 
        property or is in possession of the real property and the 
        security interest: 
           (A) is perfected by a fixture filing before the interest of 
        the encumbrancer or owner is of record; and 
           (B) has priority over any conflicting interest of a 
        predecessor in title of the encumbrancer or owner; 
           (2) before the goods become fixtures, the security interest 
        is perfected by any method permitted by this article and the 
        fixtures are readily removable: 
           (A) factory or office machines; 
           (B) equipment that is not primarily used or leased for use 
        in the operation of the real property; or 
           (C) replacements of domestic appliances that are consumer 
        goods; 
           (3) the conflicting interest is a lien on the real property 
        obtained by legal or equitable proceedings after the security 
        interest was perfected by any method permitted by this article; 
        or 
           (4) the security interest is: 
           (A) created in a manufactured home in a manufactured home 
        transaction; and 
           (B) perfected pursuant to a statute described in section 
        336.9-311(a)(2). 
           (f)  [PRIORITY BASED ON CONSENT, DISCLAIMER, OR RIGHT TO 
        REMOVE.] A security interest in fixtures, whether or not 
        perfected, has priority over a conflicting interest of an 
        encumbrancer or owner of the real property if: 
           (1) the encumbrancer or owner has, in an authenticated 
        record, consented to the security interest or disclaimed an 
        interest in the goods as fixtures; or 
           (2) the debtor has a right to remove the goods as against 
        the encumbrancer or owner. 
           (g)  [CONTINUATION OF PARAGRAPH (F)(2) PRIORITY.] The 
        priority of the security interest under paragraph (f)(2) 
        continues for a reasonable time if the debtor's right to remove 
        the goods as against the encumbrancer or owner terminates. 
           (h)  [PRIORITY OF CONSTRUCTION MORTGAGE.] A mortgage is a 
        construction mortgage to the extent that it secures an 
        obligation incurred for the construction of an improvement on 
        land, including the acquisition cost of the land, if a recorded 
        record of the mortgage so indicates.  Except as otherwise 
        provided in subsections (e) and (f), a security interest in 
        fixtures is subordinate to a construction mortgage if a record 
        of the mortgage is recorded before the goods become fixtures and 
        the goods become fixtures before the completion of the 
        construction.  A mortgage has this priority to the same extent 
        as a construction mortgage to the extent that it is given to 
        refinance a construction mortgage. 
           (i)  [PRIORITY OF SECURITY INTEREST IN CROPS.] A perfected 
        security interest in crops growing on real property has priority 
        over a conflicting interest of an encumbrancer or owner of the 
        real property except a perfected landlord's lien if the debtor 
        has an interest of record in or is in possession of the real 
        property. 
           (j)  [SUBSECTION (I) PREVAILS.] Subsection (i) prevails 
        over any inconsistent provisions of the following statutes: 
           (1) section 557.12; and 
           (2) section 559.2091. 
           Sec. 75.  Minnesota Statutes 2000, section 349.163, 
        subdivision 6, is amended to read: 
           Subd. 6.  [SAMPLES OF GAMBLING EQUIPMENT.] The board shall 
        require each licensed manufacturer to submit to the board one or 
        more samples of each item of gambling equipment the manufacturer 
        manufactures for use or resale in this state.  The board shall 
        inspect and test all the equipment it deems necessary to 
        determine the equipment's compliance with law and board rules.  
        Samples required under this subdivision must be approved by the 
        board before the equipment being sampled is shipped into or sold 
        for use or resale in this state.  The board may request the 
        assistance of the commissioner of public safety and the director 
        of the state lottery board in performing the tests. 
           Sec. 76.  Minnesota Statutes 2000, section 349A.10, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DEPOSIT OF NET PROCEEDS.] Within 30 days after 
        the end of each month, the director shall deposit in the state 
        treasury the net proceeds of the lottery, which is the balance 
        in the lottery fund after transfers to the lottery prize fund 
        and credits to the lottery operations account.  Of the net 
        proceeds, 40 percent must be credited to the Minnesota 
        environment and natural resources trust fund, and during any 
        period in which bonds are issued and outstanding under section 
        16A.67, the remainder must be credited to the special revenue 
        fund created in section 16A.67, subdivision 3, provided that if 
        bonds are not issued and outstanding under section 16A.67, such 
        remainder must be credited to the general fund.  Money credited 
        to the special revenue fund must be transferred to the debt 
        service fund established in section 16A.67, subdivision 4, at 
        the times and in the amounts determined by the commissioner of 
        finance to be necessary to provide for the payment and security 
        of bonds issued pursuant to section 16A.67.  On or before the 
        tenth day of each month, any money in the special revenue fund 
        not required to be transferred to the debt service fund must be 
        transferred to the general fund. 
           Sec. 77.  Minnesota Statutes 2000, section 352D.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COVERAGE.] (a) Employees enumerated in 
        paragraph (c), clauses (2), (3), (4), and (6) to (14), if they 
        are in the unclassified service of the state or metropolitan 
        council and are eligible for coverage under the general state 
        employees retirement plan under chapter 352, are participants in 
        the unclassified plan under this chapter unless the employee 
        gives notice to the executive director of the Minnesota state 
        retirement system within one year following the commencement of 
        employment in the unclassified service that the employee desires 
        coverage under the general state employees retirement plan.  For 
        the purposes of this chapter, an employee who does not file 
        notice with the executive director is deemed to have exercised 
        the option to participate in the unclassified plan. 
           (b) Persons referenced in paragraph (c), clauses (1) and 
        (5), are participants in the unclassified program under this 
        chapter unless the person is eligible to elect different 
        coverage under section 3A.07 or 352C.011 and, after July 1, 
        1998, elects retirement coverage by the applicable alternative 
        retirement plan.  Persons referenced in paragraph (c), clause 
        (15), are participants in the unclassified program under this 
        chapter for judicial employment in excess of the service credit 
        limit in section 490.121, subdivision 22. 
           (c) Enumerated employees and referenced persons are: 
           (1) the governor, the lieutenant governor, the secretary of 
        state, the state auditor, the state treasurer, and the attorney 
        general; 
           (2) an employee in the office of the governor, lieutenant 
        governor, secretary of state, state auditor, state treasurer, 
        attorney general; 
           (3) an employee of the state board of investment; 
           (4) the head of a department, division, or agency created 
        by statute in the unclassified service, an acting department 
        head subsequently appointed to the position, or an employee 
        enumerated in section 15A.0815 or 15A.083, subdivision 4; 
           (5) a member of the legislature; 
           (6) a full-time unclassified employee of the legislature or 
        a commission or agency of the legislature who is appointed 
        without a limit on the duration of the employment or a temporary 
        legislative employee having shares in the supplemental 
        retirement fund as a result of former employment covered by this 
        chapter, whether or not eligible for coverage under the 
        Minnesota state retirement system; 
           (7) a person who is employed in a position established 
        under section 43A.08, subdivision 1, clause (3), or in a 
        position authorized under a statute creating or establishing a 
        department or agency of the state, which is at the deputy or 
        assistant head of department or agency or director level; 
           (8) the regional administrator, or executive director of 
        the metropolitan council, general counsel, division directors, 
        operations managers, and other positions as designated by the 
        council, all of which may not exceed 27 positions at the council 
        and the chair; 
           (9) the executive director, associate executive director, 
        and not to exceed nine positions of the higher education 
        services office in the unclassified service, as designated by 
        the higher education services office before January 1, 1992, or 
        subsequently redesignated with the approval of the board of 
        directors of the Minnesota state retirement system, unless the 
        person has elected coverage by the individual retirement account 
        plan under chapter 354B; 
           (10) the clerk of the appellate courts appointed under 
        article VI, section 2, of the Constitution of the state of 
        Minnesota; 
           (11) the chief executive officers of correctional 
        facilities operated by the department of corrections and of 
        hospitals and nursing homes operated by the department of human 
        services; 
           (12) an employee whose principal employment is at the state 
        ceremonial house; 
           (13) an employee of the Minnesota educational computing 
        corporation; 
           (14) an employee of the state lottery board who is covered 
        by the managerial plan established under section 43A.18, 
        subdivision 3; and 
           (15) a judge who has exceeded the service credit limit in 
        section 490.121, subdivision 22. 
           Sec. 78.  Minnesota Statutes 2001 Supplement, section 
        356.62, is amended to read: 
           356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 
           For purposes of any public pension plan, as defined in 
        section 365.615 356.615, 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 pursuant to 
        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 shall be treated as employer contributions in 
        determining tax treatment pursuant to 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. 
           Employee contributions that are picked up shall 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 shall 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. 
           For any calendar year in which withholding has been reduced 
        pursuant to 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 shall 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 shall apply to the extent 
        not inconsistent with the provisions of this section. 
           Sec. 79.  Minnesota Statutes 2001 Supplement, section 
        376.08, subdivision 2, is amended to read: 
           Subd. 2.  [HOSPITAL REMODELING OR ADDITIONS; FINANCING.] A 
        county hospital may by majority vote of its board of 
        commissioners, or if the hospital has been leased to another 
        entity under section 376.06, subdivision 1, or 447.47, by 
        majority vote of the board of directors of that entity, enter 
        into projects for the construction of an addition or remodeling 
        to its presently existing facility or the acquisition of 
        equipment as described in this subdivision without complying 
        with the dollar limitation of subdivision 1 or the election 
        requirements of section 376.03.  This subdivision applies to 
        projects in which the funds for the project are derived from 
        dedicated, restricted, or other designated accounts, from the 
        hospital's depreciation fund, or from the issuance of bonds 
        authorized under other law.  An addition to a current hospital 
        under this subdivision may include construction of buildings 
        physically separate from the present hospital building, as well 
        as additions to the present building, if the new buildings are 
        constructed on the hospital's existing premises. 
           This subdivision does not affect the ability of the 
        hospital board to approve funds for improvements or remodeling 
        of a hospital facility under other law. 
           Sec. 80.  Minnesota Statutes 2000, section 383C.19, is 
        amended to read: 
           383C.19 [EMERGENCY JOBS PROGRAM.] 
           St. Louis county may establish an emergency employment 
        program to meet the needs of its unemployed residents.  The 
        county board of commissioners shall establish rules governing 
        the operation of the employment program.  Rules shall include 
        but not be limited to number of hours worked, wages, benefits, 
        and methods and terms of payment.  Limits imposed by civil 
        service rules shall not apply to an emergency jobs program 
        established under the authority of this section.  Service in a 
        St. Louis county emergency jobs program shall not constitute 
        employment under chapter 268 but shall come within the exclusion 
        established in section 268.04 268.035, subdivision 12 20, clause 
        (10)(d), and St. Louis county shall not be liable for 
        contributions to the unemployment insurance program trust fund 
        for participants of an emergency jobs program. 
           Sec. 81.  Minnesota Statutes 2000, section 401.05, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LEASING.] (a) A county or joint powers board of 
        a group of counties which acquires or constructs and equips or 
        improves facilities under this chapter may, with the approval of 
        the board of county commissioners of each county, enter into a 
        lease agreement with a city situated within any of the counties, 
        or a county housing and redevelopment authority established 
        under chapter 469 or any special law.  Under the lease 
        agreement, the city or county housing and redevelopment 
        authority shall: 
           (1) construct or acquire and equip or improve a facility in 
        accordance with plans prepared by or at the request of a county 
        or joint powers board of the group of counties and approved by 
        the commissioner of corrections; and 
           (2) finance the facility by the issuance of revenue bonds. 
           (b) The county or joint powers board of a group of counties 
        may lease the facility site, improvements, and equipment for a 
        term upon rental sufficient to produce revenue for the prompt 
        payment of the revenue bonds and all interest accruing on them.  
        Upon completion of payment, the lessee shall acquire title.  The 
        real and personal property acquired for the facility constitutes 
        a project and the lease agreement constitutes a revenue 
        agreement as provided in sections 469.152 to 469.165.  All 
        proceedings by the city or county housing and redevelopment 
        authority and the county or joint powers board shall be as 
        provided in sections 469.152 to 469.165, with the following 
        adjustments: 
           (1) no tax may be imposed upon the property; 
           (2) the approval of the project by the commissioner of 
        trade and economic development is not required; 
           (3) the department of corrections shall be furnished and 
        shall record information concerning each project as it may 
        prescribe, in lieu of reports required on other projects to the 
        commissioner of trade and economic development or the energy and 
        economic development authority; 
           (4) the rentals required to be paid under the lease 
        agreement shall not exceed in any year one-tenth of one percent 
        of the market value of property within the county or group of 
        counties as last equalized before the execution of the lease 
        agreement; 
           (5) the county or group of counties shall provide for 
        payment of all rentals due during the term of the lease 
        agreement in the manner required in subdivision 4; 
           (6) no mortgage on the facilities shall be granted for the 
        security of the bonds, but compliance with clause (5) may be 
        enforced as a nondiscretionary duty of the county or group of 
        counties; and 
           (7) the county or the joint powers board of the group of 
        counties may sublease any part of the facilities for purposes 
        consistent with their maintenance and operation. 
           Sec. 82.  Minnesota Statutes 2000, section 437.08, is 
        amended to read: 
           437.08 [LICENSES OR PERMITS VOID.] 
           Any license, permit, or other grant of authority issued or 
        made in violation of the provisions of sections 437.07 to 437.11 
        437.10 shall be absolutely null and void. 
           Sec. 83.  Minnesota Statutes 2000, section 437.09, is 
        amended to read: 
           437.09 [SHOWS PROHIBITED WITHOUT LICENSE.] 
           No person, firm, copartnership, corporation, or association 
        of any nature or kind shall operate or attempt to operate or 
        carry on any itinerant carnival, street show, street fair, 
        sideshow, circus, or any similar enterprise within one mile of 
        the corporate limits of any city of the fourth class in this 
        state without license or permit so to do lawfully granted under 
        the restrictions provided in sections 437.07 to 437.11 437.10.  
           Any person violating any of the provisions of this section 
        shall be guilty of a misdemeanor; and any such enterprise 
        operated without license or permit as herein prescribed is 
        hereby declared to be a public nuisance. 
           Sec. 84.  Minnesota Statutes 2000, section 437.10, is 
        amended to read: 
           437.10 [DEFINITION.] 
           An itinerant carnival, street show, street fair, sideshow, 
        circus, or other similar enterprise, within the meaning of 
        sections 437.07 to 437.11 437.10, is any itinerant carnival, 
        street show, street fair, sideshow, circus, or other similar 
        enterprise, which is held, operated, or carried on in the open 
        or indoors or upon or within any public or private ground, at 
        which there congregates and assembles, with or without the 
        payment of an admission fee, a promiscuous gathering of people 
        as spectators or otherwise. 
           Sec. 85.  Minnesota Statutes 2000, section 458D.02, 
        subdivision 2, is amended to read: 
           Subd. 2.  [WESTERN LAKE SUPERIOR SANITARY DISTRICT.] 
        "Western Lake Superior Sanitary District" and "district" mean 
        the area over which the sanitary sewer board has jurisdiction 
        which shall include the area now comprised of the city of 
        Cloquet, the cities of Carlton, Scanlon, Thomson and Wrenshall, 
        and the townships of Knife Falls, Silver Brook, Thomson, and 
        Twin Lakes in the county of Carlton; the city of Duluth, the 
        city of Proctor, and the townships of Canosia, Duluth, Grand 
        Lake, Herman, Lakewood, Midway, Rice Lake and Solway in the 
        county of St. Louis; other territory included in the district 
        pursuant to section 458D.22; and any waters of the state 
        adjacent thereto. 
           Sec. 86.  Minnesota Statutes 2000, section 458D.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SANITARY SEWER BOARD.] "Sanitary sewer board" or 
        "board" means the sanitary sewer board established for the 
        Western Lake Superior Sanitary District as provided in section 
        458D.03. 
           Sec. 87.  Minnesota Statutes 2000, section 458D.23, is 
        amended to read: 
           458D.23 [PROPERTY EXEMPT FROM TAXATION.] 
           Any properties, real or personal, owned, leased, 
        controlled, used, or occupied by the sanitary sewer board for 
        any purpose under sections 458D.01 to 458D.24 are declared to be 
        acquired, owned, leased, controlled, used and occupied for 
        public, governmental, and municipal purposes, and shall be 
        exempt from taxation by the state or any political subdivision 
        of the state, except to the extent that the property is subject 
        to the sales and use tax under chapter 297A, provided that such 
        properties shall be subject to special assessments levied by a 
        political subdivision for a local improvement in amounts 
        proportionate to and not exceeding the special benefit received 
        by the properties from such improvement.  No possible use of any 
        such properties in any manner different from their use as part 
        of a disposal system at the time shall be considered in 
        determining the special benefit received by such properties.  
        All such assessments shall be subject to final approval by the 
        board, whose determination of the benefits shall be conclusive 
        upon the political subdivision levying the assessment.  All 
        bonds, certificates of indebtedness or other obligations of the 
        board, and the interest thereon, shall be exempt from taxation 
        by the state or any political subdivision of the state. 
           Sec. 88.  Minnesota Statutes 2000, section 469.110, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AUTHORITY DEPARTMENT.] "Authority Department" 
        means the energy and department of trade and economic 
        development authority. 
           Sec. 89.  Minnesota Statutes 2000, section 469.116, 
        subdivision 7, is amended to read: 
           Subd. 7.  [INVESTMENT IN BONDS.] Subject to the approval of 
        the state agency, the bonds of a local agency may be declared 
        securities in which all public officers and bodies of the state 
        and of its municipal subdivisions, all insurance companies and 
        associations, all savings banks and savings institutions, 
        including savings associations, executors, administrators, 
        guardians, trustees, and all other fiduciaries in the state may 
        properly and legally invest the funds within their control.  
        Each mortgage or issue of bonds shall relate only to a single 
        specified project, and those bonds shall be secured by a 
        mortgage upon all the real property of which the projects 
        consist and shall be first lien bonds, secured by a mortgage not 
        exceeding 80 percent of the estimated cost prior to the 
        completion of the project, or 80 percent of the appraised value 
        or actual cost, but in no event in excess of 80 percent of the 
        actual cost, after that completion, as certified by the 
        authority department. 
           Sec. 90.  Minnesota Statutes 2000, section 469.118, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONDITIONS FOR MAKING.] When it has been 
        determined by the authority department upon application of a 
        local agency that the establishment of a particular 
        redevelopment project in a redevelopment area has accomplished 
        or will accomplish the public purposes of sections 469.109 to 
        469.123, the authority department may contract to loan the local 
        agency an amount not in excess of 20 percent of the cost or 
        estimated cost of the redevelopment project, subject to the 
        following conditions: 
           (a) In the case of a redevelopment project to be 
        established, 
           (1) the authority department shall have first determined 
        that the local agency holds funds in an amount equal to, or 
        property of a value equal to not less than, ten percent of the 
        estimated cost of establishing the redevelopment project, which 
        funds or property are available for and shall be applied to the 
        establishment of the project.  If a public facility within the 
        redevelopment area has been or may be constructed and will 
        benefit a redevelopment project, the imputed value of the 
        benefit of the facility to the redevelopment project may be 
        determined and the estimated cost thereof credited to the local 
        agency for the purpose of satisfying the requirements of this 
        subparagraph.  For purposes of this section, a public facility 
        includes utility installations, street improvements, public 
        buildings, parks, playgrounds, schools, recreational buildings, 
        and parking facilities; 
           (2) the authority department shall have also determined 
        that the local agency has obtained from other sources, by gift, 
        grant, or loan from private or other state or federal sources, a 
        firm commitment for all other funds, over and above the loan of 
        the state agency, and such funds or property as the 
        redevelopment agency may hold, necessary for payment of all the 
        estimated cost of establishing the redevelopment project, and 
        that the sum of all these funds, together with the machinery and 
        equipment to be provided by the owner or operator of the 
        redevelopment project is adequate to ensure completion and 
        operation of the plant, enterprise, or facility. 
           (b) In the case of a redevelopment project established 
        without initial state or local agency participation, 
           (1) the state agency shall have first determined that the 
        local or area redevelopment agency has expended funds in an 
        amount equal to, or has applied property of a value equal to, 
        not less than ten percent of the cost of establishing the 
        redevelopment project.  If a public facility within the 
        redevelopment area has been or may be constructed and will 
        benefit a redevelopment project, the imputed value of the 
        benefit of the facility to the redevelopment project may be 
        determined and the estimated cost thereof credited to the local 
        agency for the purpose of satisfying the requirements of this 
        subparagraph; 
           (2) the authority department shall have also determined 
        that the local agency has obtained from other public or private 
        sources other funds necessary for payment of all the cost of 
        establishing the redevelopment project, and that the local 
        agency participation and these funds, together with the 
        machinery and equipment provided by the owner or operator of the 
        redevelopment project has been adequate to ensure completion and 
        operation of the plant, enterprise, or facility.  The proceeds 
        of any loan made by the authority department to a local agency 
        pursuant to this paragraph shall be used only for the 
        establishment of additional redevelopment projects in 
        furtherance of the public purposes of sections 469.109 to 
        469.123. 
           Sec. 91.  Minnesota Statutes 2000, section 469.118, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TERMS.] Any such loan of the authority 
        department shall be for the period of time and shall bear 
        interest at the rate determined by the authority department.  It 
        may be secured by a mortgage on the redevelopment project for 
        which the loan was made.  The mortgage may be second and 
        subordinate only to the mortgage securing the first lien 
        obligation, if any, issued to secure the commitment of funds 
        from a private or public source and used in the financing of the 
        redevelopment project. 
           Sec. 92.  Minnesota Statutes 2000, section 469.118, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DEPOSIT OF PAYMENTS.] All payments of interest 
        on the loans and repayments of principal shall be deposited by 
        the authority department in the Minnesota account and shall be 
        available to be applied and reapplied to carry out the purposes 
        of sections 469.109 to 469.123. 
           Sec. 93.  Minnesota Statutes 2000, section 469.119, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION CONTENTS.] Prior to the 
        loaning of any funds for a redevelopment project in a 
        redevelopment area the local agency shall receive from the 
        applicant and, in the case of authority department 
        participation, shall forward to the state agency a loan 
        application.  The application shall be in the form adopted by 
        the local agency, and shall contain among other things the 
        following information: 
           (1) a general description of the redevelopment project and 
        of the industrial, recreational, commercial, or manufacturing 
        enterprise for which the project has been or is to be 
        established; 
           (2) a legal description of all real estate necessary for 
        the project; 
           (3) plans and other documents as may be required to show 
        the type, structure, and general character of the redevelopment 
        project; 
           (4) a general description of the type, classes, and number 
        of employees employed or to be employed in the operation of the 
        redevelopment project; and 
           (5) cost or estimates of cost of establishing the 
        redevelopment project. 
           Sec. 94.  Minnesota Statutes 2000, section 469.122, is 
        amended to read: 
           469.122 [LIMITATION OF POWERS.] 
           The state pledges to the United States or any agency 
        thereof that if any federal agency shall construct, loan, or 
        contribute any funds for the construction, extension, 
        improvement, or enlargement of any redevelopment project, or any 
        portion thereof, the state will not alter or limit the rights 
        and powers of the authority department or the local agency in 
        any manner inconsistent with the performance of any agreements 
        between the authority department or the local agency and any 
        such federal agency.  The authority department and the local 
        agency shall continue to have all powers herein granted, so long 
        as the same shall be necessary or desirable for the carrying out 
        of the purposes of these sections. 
           Sec. 95.  Minnesota Statutes 2000, section 469.154, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INFORMATION TO ENERGY TRADE AND ECONOMIC 
        DEVELOPMENT AUTHORITY DEPARTMENT.] Each municipality and 
        redevelopment agency upon entering into a revenue agreement, 
        except one pertaining to a project referred to in section 
        469.153, subdivision 2, paragraph (g) or (j), shall furnish 
        the energy trade and economic development authority department 
        on forms the authority department prescribes the following 
        information concerning the project:  The name of the contracting 
        party, the nature of the enterprise, the location, approximate 
        number of employees, the general terms and nature of the revenue 
        agreement, the amount of bonds or notes issued, and other 
        information the energy trade and economic development 
        authority department deems advisable.  The energy trade and 
        economic development authority department shall keep a record of 
        the information which shall be available to the public at times 
        the authority department prescribes. 
           Sec. 96.  Minnesota Statutes 2000, section 471.415, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AFFIDAVIT FILED BEFORE WARRANT ISSUES.] A 
        duplicate for a lost or destroyed order or warrant shall not 
        issue until there shall have been filed with the proper officer 
        an affidavit of the owner thereof setting forth the ownership of 
        the order or warrant, the description thereof, and the manner of 
        its loss or destruction, and until there shall have been 
        executed and filed with the same officer an indemnifying bond, 
        with sureties to be approved by such officer, in a sum equal to 
        the amount of such order or warrant, conditioned that the 
        parties thereto shall pay all damages which the county, city, 
        town, or school district may sustain if compelled to pay such 
        loss lost or destroyed order or warrant.  The governing body of 
        any county, city, town, or school district may in its discretion 
        dispense with the requirement of an indemnifying bond. 
           Sec. 97.  Minnesota Statutes 2001 Supplement, section 
        501B.60, subdivision 3, is amended to read: 
           Subd. 3.  [STANDARDS FOR EXERCISE.] In exercising a power 
        to adjust under section 501B.70 501B.705 or a discretionary 
        power of administration regarding a matter within the scope of 
        sections 501B.59 to 501B.76, a fiduciary shall administer the 
        trust or estate impartially, based on what is fair and 
        reasonable to all of the beneficiaries, except to the extent 
        that the terms of the trust or the will clearly manifest an 
        intention that the fiduciary shall or may favor one or more of 
        the beneficiaries.  A determination in accordance with sections 
        501B.59 to 501B.76 is presumed to be fair and reasonable to all 
        of the beneficiaries. 
           Sec. 98.  Minnesota Statutes 2000, section 501B.61, as 
        amended by Laws 2001, chapter 15, section 4, is amended to read: 
           501B.61 [INCOME; PRINCIPAL; CHARGES.] 
           Subdivision 1.  [INCOME DEFINED.] "Income" means the return 
        in money or property derived from the use of principal, 
        including return received as: 
           (1) rent of real or personal property, including sums 
        received for cancellation or renewal of a lease; 
           (2) interest on money lent, including sums received as 
        consideration for the privilege of prepayment of principal, 
        except as provided in section 501B.65 on bond premium and bond 
        discount; 
           (3) income earned during administration of a decedent's 
        estate as provided in section 501B.63; 
           (4) corporate distributions as provided in section 501B.64; 
           (5) accrued increment on bonds or other obligations issued 
        at discount as provided in section 501B.65; 
           (6) receipts from business and farming operations as 
        provided in section 501B.66 501B.665; 
           (7) receipts from disposition of natural resources as 
        provided in sections 501B.67 and 501B.68; and 
           (8) receipts from other principal subject to depletion as 
        provided in section 501B.69; and 
           (9) receipts from disposition of underproductive property 
        as provided in section 501B.70. 
           Subd. 2.  [PRINCIPAL DEFINED.] "Principal" means the 
        property set aside by the owner or the person legally empowered 
        so that it is held in trust eventually to be delivered to a 
        remainderperson while the return or use of the principal is in 
        the meantime taken or received by or held for accumulation for 
        an income beneficiary.  Principal includes: 
           (1) consideration received by the trustee on the sale or 
        other transfer of principal, on repayment of a loan, or as a 
        refund, replacement, or change in the form of principal; 
           (2) proceeds of property taken on eminent domain 
        proceedings; 
           (3) proceeds of insurance on property forming part of the 
        principal, except proceeds of insurance on a separate interest 
        of an income beneficiary; 
           (4) stock dividends, receipts on liquidation of a 
        corporation, and other corporate distributions as provided in 
        section 501B.64; 
           (5) receipts from the disposition of corporate securities 
        as provided in section 501B.65; 
           (6) royalties and other receipts from disposition of 
        natural resources as provided in sections 501B.67 and 501B.68; 
           (7) receipts from other principal subject to depletion as 
        provided in section 501B.69; 
           (8) profit resulting from a change in the form of 
        principal, except as provided in section 501B.70 on 
        underproductive property; 
           (9) receipts from disposition of underproductive property 
        as provided in section 501B.70; 
           (10) allowances for depreciation established under sections 
        501B.66 501B.665 and 501B.71, subdivision 1, clause (2); and 
           (11) (10) gain or loss, including the purchase premium, if 
        any, from the grant of an option to buy or sell property of the 
        trust, whether or not the trust owns the property when the 
        option is granted. 
           Subd. 3.  [CHARGES.] After determining income and principal 
        in accordance with the terms of the trust instrument or of 
        sections 501B.59 to 501B.76, the trustee shall charge to income 
        or principal expenses and other charges as provided in section 
        501B.71. 
           Sec. 99.  Minnesota Statutes 2001 Supplement, section 
        514.661, subdivision 5, is amended to read: 
           Subd. 5.  [PRIORITY.] (a) A perfected lien has priority 
        over all other liens and security interests in crops produced by 
        the debtor during the calendar year in which the mediation 
        occurs except for a perfected landlord's lien under section 
        514.960.  
           (b) An unperfected lien has the priority of an unperfected 
        security interest under sections 336.9-317 and 336.9-322. 
           Sec. 100.  Minnesota Statutes 2000, section 514.94, is 
        amended to read: 
           514.94 [RIGHTS OF DETAINER, LIEN AND SALE OF ANIMALS.] 
           Nothing in sections 514.92 to 514.94 this section or 
        section 514.93 shall in any way alter or revoke a veterinarian's 
        rights of detainer, lien and sale of animals under sections 
        514.18 to 514.22. 
           Sec. 101.  Minnesota Statutes 2000, section 524.2-301, is 
        amended to read: 
           524.2-301 [ENTITLEMENT OF SPOUSE; PREMARITAL WILL.] 
           (a) A testator's surviving spouse, who married the testator 
        after the testator's will was executed, is entitled to receive, 
        as an intestate share, no less than the value of the share of 
        the estate the surviving spouse would have received if the 
        testator had died intestate as to that portion of the testator's 
        estate, if any, that neither is devised to a child of the 
        testator who was born before the testator married the surviving 
        spouse and who is not a child of the surviving spouse nor is 
        devised to a descendant of such a child or passes under section 
        524.2-603 524.2-6031 or 524.2-604 to such a child or to a 
        descendant of such a child, unless: 
           (1) it appears from the will or other evidence that the 
        will was made in contemplation of the testator's marriage to the 
        surviving spouse; 
           (2) the will expresses the intention that it is to be 
        effective notwithstanding any subsequent marriage; or 
           (3) the testator provided for the spouse by transfer 
        outside the will and the intent that the transfer be in lieu of 
        a testamentary provision is shown by the testator's statements 
        or is reasonably inferred from the amount of the transfer or 
        other evidence. 
           (b) In satisfying the share provided by this section, 
        devises made by the will to the testator's surviving spouse, if 
        any, are applied first, and other devises, other than a devise 
        to a child of the testator who was born before the testator 
        married the surviving spouse and who is not a child of the 
        surviving spouse or a devise or substitute gift under section 
        524.2-603 524.2-6031 or 524.2-604 to a descendant of such a 
        child, abate as provided in section 524.3-902. 
           Sec. 102.  Minnesota Statutes 2000, section 524.2-604, is 
        amended to read: 
           524.2-604 [FAILURE OF TESTAMENTARY PROVISION.] 
           (a) Except as provided in section 524.2-603 524.2-6031, a 
        devise, other than a residuary devise, that fails for any reason 
        becomes a part of the residue. 
           (b) Except as provided in section 524.2-603 524.2-6031, if 
        the residue is devised to two or more persons, the share of a 
        residuary devisee that fails for any reason passes to the other 
        residuary devisee, or to other residuary devisees in proportion 
        to the interest of each in the remaining part of the residue. 
           Sec. 103.  Minnesota Statutes 2000, section 524.2-609, is 
        amended to read: 
           524.2-609 [ADEMPTION BY SATISFACTION.] 
           (a) Property a testator, while living, gave to a person is 
        treated as a satisfaction of a devise in whole or in part, only 
        if (i) the will provides for deduction of the gift, (ii) the 
        testator declared in a contemporaneous writing that the gift is 
        in satisfaction of the devise or that its value is to be 
        deducted from the value of the devise, or (iii) the devisee 
        acknowledged in writing that the gift is in satisfaction of the 
        devise or that its value is to be deducted from the value of the 
        devise. 
           (b) For purposes of partial satisfaction, property given 
        during lifetime is valued as of the time the devisee came into 
        possession or enjoyment of the property or at the testator's 
        death, whichever occurs first. 
           (c) If the devisee fails to survive the testator, the gift 
        is treated as a full or partial satisfaction of the devise, as 
        appropriate, in applying sections 524.2-603 524.2-6031 and 
        524.2-604, unless the testator's contemporaneous writing 
        provides otherwise. 
           Sec. 104.  Minnesota Statutes 2000, section 583.24, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DEBTS.] The Farmer-Lender Mediation Act does not 
        apply to a debt: 
           (1) for which a proof of claim form has been filed in 
        bankruptcy by a creditor or that was listed as a scheduled debt, 
        of a debtor who has filed a petition in bankruptcy after July 1, 
        1987, under United States Code, title 11, chapter 7, 11, 12, or 
        13; 
           (2) if the debt was in default when the creditor received a 
        mediation proceeding notice under the Farmer-Lender Mediation 
        Act and the creditor filed a claim form, the debt was mediated 
        during the mediation period under section 583.26, subdivision 8, 
        and (i) the mediation was unresolved; or (ii) a mediation 
        agreement with respect to that debt was signed; 
           (3) for which the creditor has served a mediation notice, 
        the debtor has failed to make a timely request for mediation, 
        and within 60 days after the debtor failed to make a timely 
        request the creditor began a proceeding to enforce the debt 
        against the agricultural property of the debtor; 
           (4) for which a creditor has received a mediation 
        proceeding notice and the creditor and debtor have restructured 
        the debt and have signed a separate mediation agreement with 
        respect to that debt; or 
           (5) for which there is a lien for rental value of farm 
        machinery under section 514.661 or a lien for rental value 
        relating to a contract for deed subject to the Farmer-Lender 
        Mediation Act under section 559.2091. 
           Sec. 105.  Minnesota Statutes 2000, section 609.26, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DISMISSAL OF CHARGE.] A felony charge brought 
        under this section shall be dismissed if:  
           (a) the person voluntarily returns the child within 48 
        hours after taking, detaining, or failing to return the child in 
        violation of this section; or 
           (b)(1) the person taking the action and the child have not 
        left the state of Minnesota; and (2) within a period of seven 
        days after taking the action, (i) a motion or proceeding under 
        chapter 518, 518A, 518B, or 518C, or 518D is commenced by the 
        person taking the action, or (ii) the attorney representing the 
        person taking the action has consented to service of process by 
        the party whose rights are being deprived, for any motion or 
        action pursuant to chapter 518, 518A, 518B, or 518C.  
           Clause (a) does not apply if the person returns the child 
        as a result of being located by law enforcement authorities. 
           This subdivision does not prohibit the filing of felony 
        charges or an offense report before the expiration of the 48 
        hours. 
           Sec. 106.  Minnesota Statutes 2000, section 609.341, 
        subdivision 17, is amended to read: 
           Subd. 17.  "Psychotherapist" means a person who is or 
        purports to be a physician, psychologist, nurse, chemical 
        dependency counselor, social worker, marriage and family 
        counselor therapist, or other mental health service provider; or 
        any other person, whether or not licensed by the state, who 
        performs or purports to perform psychotherapy. 
           Sec. 107.  Minnesota Statutes 2001 Supplement, section 
        626.556, subdivision 11, is amended to read: 
           Subd. 11.  [RECORDS.] (a) Except as provided in paragraph 
        (b) or (d) and subdivisions 10b, 10d, 10g, and 11b, all records 
        concerning individuals maintained by a local welfare agency or 
        agency responsible for assessing or investigating the report 
        under this section, including any written reports filed under 
        subdivision 7, shall be private data on individuals, except 
        insofar as copies of reports are required by subdivision 7 to be 
        sent to the local police department or the county sheriff.  All 
        records concerning determinations of maltreatment by a facility 
        are nonpublic data as maintained by the department of children, 
        families, and learning, except insofar as copies of reports are 
        required by subdivision 7 to be sent to the local police 
        department or the county sheriff.  Reports maintained by any 
        police department or the county sheriff shall be private data on 
        individuals except the reports shall be made available to the 
        investigating, petitioning, or prosecuting authority, including 
        county medical examiners or county coroners.  Section 13.82, 
        subdivisions 7, 8, and 9, and 14, apply to law enforcement data 
        other than the reports.  The local social services agency or 
        agency responsible for assessing or investigating the report 
        shall make available to the investigating, petitioning, or 
        prosecuting authority, including county medical examiners or 
        county coroners or their professional delegates, any records 
        which contain information relating to a specific incident of 
        neglect or abuse which is under investigation, petition, or 
        prosecution and information relating to any prior incidents of 
        neglect or abuse involving any of the same persons.  The records 
        shall be collected and maintained in accordance with the 
        provisions of chapter 13.  In conducting investigations and 
        assessments pursuant to this section, the notice required by 
        section 13.04, subdivision 2, need not be provided to a minor 
        under the age of ten who is the alleged victim of abuse or 
        neglect.  An individual subject of a record shall have access to 
        the record in accordance with those sections, except that the 
        name of the reporter shall be confidential while the report is 
        under assessment or investigation except as otherwise permitted 
        by this subdivision.  Any person conducting an investigation or 
        assessment under this section who intentionally discloses the 
        identity of a reporter prior to the completion of the 
        investigation or assessment is guilty of a misdemeanor.  After 
        the assessment or investigation is completed, the name of the 
        reporter shall be confidential.  The subject of the report may 
        compel disclosure of the name of the reporter only with the 
        consent of the reporter or upon a written finding by the court 
        that the report was false and that there is evidence that the 
        report was made in bad faith.  This subdivision does not alter 
        disclosure responsibilities or obligations under the rules of 
        criminal procedure. 
           (b) Upon request of the legislative auditor, data on 
        individuals maintained under this section must be released to 
        the legislative auditor in order for the auditor to fulfill the 
        auditor's duties under section 3.971.  The auditor shall 
        maintain the data in accordance with chapter 13.  
           (c) The commissioner of children, families, and learning 
        must be provided with all requested data that are relevant to a 
        report of maltreatment and are in possession of a school 
        facility as defined in subdivision 2, paragraph (f), when the 
        data is requested pursuant to an assessment or investigation of 
        a maltreatment report of a student in a school.  If the 
        commissioner of children, families, and learning makes a 
        determination of maltreatment involving an individual performing 
        work within a school facility who is licensed by a board or 
        other agency, the commissioner shall provide necessary and 
        relevant information to the licensing entity to enable the 
        entity to fulfill its statutory duties.  Notwithstanding section 
        13.03, subdivision 4, data received by a licensing entity under 
        this paragraph are governed by section 13.41 or other applicable 
        law governing data of the receiving entity, except that this 
        section applies to the classification of and access to data on 
        the reporter of the maltreatment. 
           (d) The investigating agency shall exchange not public data 
        with the child maltreatment review panel under section 256.022 
        if the data are pertinent and necessary for a review requested 
        under section 256.022.  Upon completion of the review, the not 
        public data received by the review panel must be returned to the 
        investigating agency. 
           Sec. 108.  Laws 1995, chapter 220, section 141, is amended 
        to read: 
           Sec. 141.  [REPEALER.] 
           (a) Minnesota Statutes 1994, sections 97B.301, subdivision 
        5; 115B.26, subdivision 1; 239.791, subdivisions 4, 5, 6, and 9; 
        325E.0951, subdivision 5; and Laws 1993, chapter 172, section 
        10, are repealed. 
           (b) Sections 78 to 87 are repealed. 
           (c) Minnesota Statutes 1994, sections 28A.08, subdivision 
        2; and 446A.071, subdivision 7, are repealed. 
           (d) (c) Minnesota Statutes 1994, sections 41A.09, 
        subdivisions 2, 3, and 5; 97A.531, subdivisions 2, 3, 4, 5, and 
        6; and 296.02, subdivision 7, are repealed. 
           Sec. 109.  Laws 1995, chapter 220, section 142, as amended 
        by Laws 1995, chapter 263, section 12, Laws 1996, chapter 351, 
        section 1, Laws 1999, chapter 231, section 191, and Laws 2001, 
        First Special Session chapter 2, section 151, is amended to read:
           Sec. 142.  [EFFECTIVE DATES.] 
           Sections 2, 5, 7, 20, 42, 44 to 49, 56, 57, 101, 102, 117, 
        and 141, paragraph (d), are effective the day following final 
        enactment. 
           Sections 114, 115, 118, and 121 are effective January 1, 
        1996. 
           Sections 120, subdivisions 2, 3, 4, and 5, and 141, 
        paragraph (c), are effective July 1, 1996. 
           Section 141, paragraph (b), is effective June 30, 2007. 
           Sections 58 and 66 are effective retroactively to August 1, 
        1991.  
           Section 119 is effective September 1, 1996. 
           Section 120, subdivision 1, is effective July 1, 1999. 
           Sec. 110.  Laws 1997, chapter 202, article 2, section 61, 
        as amended by Laws 1999, chapter 250, article 1, section 106, 
        and Laws 2001, First Special Session chapter 10, article 2, 
        section 85, is amended to read: 
           Sec. 61.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
           Appointing authorities in state government may allow each 
        employee to take an unpaid leave of absence for up to 160 hours 
        during the period ending June 30, 2003, and up to 160 hours 
        during the period ending June 30, 2005.  Each appointing 
        authority approving such a leave shall allow the employee to 
        continue accruing vacation and sick leave, be eligible for paid 
        holidays and insurance benefits, accrue seniority, and accrue 
        service credit in state retirement plans permitting service 
        credits for authorized leaves of absence as if the employee had 
        actually been employed during the time of the leave.  If the 
        leave of absence is for one full pay period or longer, any 
        holiday pay shall be included in the first payroll warrant after 
        return from the leave of absence.  The appointing authority 
        shall attempt to grant requests for unpaid leaves of absence 
        consistent with the need to continue efficient operation of the 
        agency.  However, each appointing authority shall retain 
        discretion to grant or refuse to grant requests for leaves of 
        absence and to schedule and cancel leaves, subject to applicable 
        provisions of collective bargaining agreements and compensation 
        plans. 
           Sec. 111.  Laws 2000, chapter 399, article 1, section 139, 
        is amended to read: 
           Sec. 139.  [SATELLITE OFFICES; RULEMAKING.] 
           The secretary of state shall adopt rules governing the 
        establishment and operation of satellite offices under Minnesota 
        Statutes, sections 336.9-527 to 336.9-530, by July 1, 2000.  The 
        rules are exempt from the rulemaking provisions of Minnesota 
        Statutes, chapter 14, but must be adopted under Minnesota 
        Statutes, section 14.386.  Notwithstanding Minnesota Statutes, 
        section 14.386, paragraph (b), the rules remain in effect until 
        July 1, 2003. 
           The secretary of state may also adopt expedited rules 
        governing the establishment and operation of the central filing 
        system under Minnesota Statutes, sections 336.9-501 to 336.9-530 
        336.9-531 and 336.9-701 to 336.9-709, pursuant to section 14.389.
           The authority to adopt rules under this section expires on 
        July 1, 2003.  The expiration of this authority does not affect 
        the validity of the rules adopted under it. 
           This section is effective the day following final enactment.
           Sec. 112.  Laws 2001, chapter 171, section 12, is amended 
        to read: 
           Sec. 12.  [TRANSFER OF ENFORCEMENT AUTHORITY.] 
           (a) The terms used in this section have the meanings given 
        in Minnesota Statutes, section 149A.02. 
           (b) Except as otherwise provided in statute, enforcement 
        authority for Minnesota Statutes, sections 149A.70, 149A.71, 
        149A.72, 149A.73, 149A.74, 149A.745, 149A.75, and 149A.97, may 
        be exercised for provisions related to insurance policies 
        purchased by a preneed consumer to arrange for funeral goods, 
        funeral services, burial site goods, or burial services, 
        enforcement authority may be exercised by the commissioner of 
        commerce. 
           (c) The commissioner of health retains enforcement 
        authority for provisions of Minnesota Statutes, chapter 149A, 
        related to funeral providers that are required to be licensed, 
        registered, or issued a permit under that chapter. 
           Sec. 113.  [REENACTMENT.] 
           2001 First Special Session Senate File No. 4, as passed by 
        the senate and the house of representatives on Friday, June 29, 
        2001, and subsequently published as Laws 2001, First Special 
        Session chapter 9, is reenacted.  Its provisions are effective 
        on the dates originally provided in the bill. 
           Sec. 114.  [REPEALER.] 
           (a) Minnesota Statutes 2001 Supplement, section 16A.1286, 
        subdivisions 4 and 5, are repealed. 
           (b) Minnesota Statutes 2000, section 116.19, is repealed. 
           (c) Minnesota Statutes 2000, section 221.0315, is repealed. 
           (d) Minnesota Statutes 2000, section 437.11, is repealed. 
           (e) Minnesota Statutes 2000, section 462A.072, is repealed. 
           (f) Minnesota Statutes 2000, section 557.11, is repealed. 
           (g) Laws 1997, chapter 85, article 4, section 28, is 
        repealed. 
           (h) Laws 1999, chapter 159, section 79, is repealed. 
           (i) Laws 1999, chapter 231, section 180, is repealed. 
           (j) Laws 2001, chapter 161, section 4, is repealed. 
           (k) Laws 2001, chapter 162, section 4, is repealed. 
           (l) Laws 2001, First Special Session chapter 2, section 
        103, is repealed. 
           (m) Laws 2001, First Special Session chapter 8, article 7, 
        section 1, is repealed. 
           (n) Minnesota Rules, part 5300.0360, is repealed. 

                                   ARTICLE 2
                             CONFORMING AMENDMENTS 
                 HARMFUL SUBSTANCE COMPENSATION BOARD TRANSFER
           Section 1.  Minnesota Statutes 2000, section 13.741, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [HARMFUL SUBSTANCE COMPENSATION BOARD 
        DATA.] The following data on individuals filing claims for 
        compensation with the harmful substance compensation board 
        pollution control agency for injury from harmful substances are 
        classified as confidential while the claim is being investigated 
        and private after a decision is made by the board agency about 
        the claim:  the name, address, and all other information that 
        may identify an individual filing a claim; all medical data 
        provided to the board agency by the claimant or providers of 
        health care to the claimant, including reports of physical 
        examinations, mental health treatment, hospital care, physical 
        therapy, laboratory testing, X-ray studies, and prescriptions; 
        and all financial data provided to the board agency by the 
        claimant or the claimant's employer, insurance carrier, or other 
        provider of benefits, including state or federal tax forms, W-2 
        forms, salary records, records of insurance payments, 
        unemployment or disability benefits.  
           Sec. 2.  Minnesota Statutes 2000, section 13.7411, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ENVIRONMENTAL RESPONSE AND LIABILITY.] (a) 
        [RESPONSIBLE PERSONS.] Certain data obtained by the pollution 
        control agency from a person who may be responsible for a 
        release are classified in section 115B.17, subdivision 5.  
           (b) [HAZARDOUS WASTE GENERATORS.] Data exchanged between 
        the pollution control agency and the department of revenue under 
        sections 115B.24 and 116.075, subdivision 2, are classified 
        under section 115B.24, subdivision 5.  
           (c) [HARMFUL SUBSTANCE COMPENSATION BOARD.] Access to data 
        collected and maintained by the in connection with harmful 
        substance compensation board reimbursement is governed by 
        sections 115B.28, subdivision 2; and 115B.35, subdivision 2. 
           (d) [DRYCLEANERS ENVIRONMENTAL ACCOUNT.] Disclosure of data 
        collected under section 115B.49, subdivision 4, is governed by 
        chapter 270B. 
           Sec. 3.  Minnesota Statutes 2000, section 115B.25, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BOARD AGENCY.] "Board Agency" means 
        the harmful substance compensation board established in section 
        115B.27 pollution control agency. 
           Sec. 4.  Minnesota Statutes 2000, section 115B.26, is 
        amended to read: 
           115B.26 [HARMFUL SUBSTANCE COMPENSATION ENVIRONMENTAL 
        RESPONSE, COMPENSATION, AND COMPLIANCE ACCOUNT.] 
           Subd. 2.  [APPROPRIATION.] The amount necessary to pay 
        claims of compensation granted by the agency under sections 
        115B.25 to 115B.37 is appropriated to the agency from the 
        account. 
           Subd. 3.  [PAYMENT OF CLAIMS WHEN ACCOUNT INSUFFICIENT.] If 
        the amount of the claims granted exceeds the amount in the 
        account, the board agency shall request a transfer from the 
        general contingent account to the harmful substance compensation 
        environmental response, compensation, and compliance account as 
        provided in section 3.30.  If no transfer is approved, the board 
        agency shall pay the claims which have been granted in the order 
        granted only to the extent of the money remaining in the 
        account.  The board agency shall pay the remaining claims which 
        have been granted after additional money is credited to the 
        account. 
           Subd. 4.  [ACCOUNT TRANSFER REQUEST.] At the end of each 
        fiscal year, the board agency shall submit a request to the 
        petroleum tank release compensation board for transfer to the 
        harmful substance compensation account from the petroleum tank 
        release cleanup fund under section 115C.08, subdivision 5, of an 
        amount equal to the compensation granted by the board agency for 
        claims related to petroleum releases plus administrative costs 
        related to determination of those claims. 
           Sec. 5.  Minnesota Statutes 2000, section 115B.28, as 
        amended by Laws 1999, chapter 227, section 22, is amended to 
        read: 
           115B.28 [POWERS AND DUTIES OF THE BOARD AGENCY.] 
           Subdivision 1.  [DUTIES.] In addition to performing duties 
        specified in sections 115B.25 to 115B.37 or in other law, and 
        subject to the limitations on disclosure contained in section 
        115B.35, the board agency shall: 
           (1) adopt rules as soon as practicable after all members 
        are appointed, including rules governing practice and procedure 
        before the board agency, the form and procedure for applications 
        for compensation, and procedures for claims investigations; 
           (2) publicize the availability of compensation and 
        application procedures on a statewide basis with special 
        emphasis on geographical areas surrounding sites identified by 
        the pollution control agency as having releases from a facility 
        where a harmful substance was placed or came to be located prior 
        to July 1, 1983; 
           (3) collect, analyze, and make available to the public, in 
        consultation with the department of health, the pollution 
        control agency, the University of Minnesota medical and public 
        health schools, and the medical community, data regarding 
        injuries relating to exposure to harmful substances; and 
           (4) prepare and transmit by December 31 of each year to the 
        governor and the legislature an annual report to include (a) a 
        summary of board agency activity under clause (3); (b) data 
        determined by the board agency from actual cases, including but 
        not limited to number of cases, actual compensation received by 
        each claimant, types of cases, and types of injuries 
        compensated, as they relate to types of harmful substances as 
        well as length of exposure, but excluding identification of the 
        claimants; (c) all administrative costs associated with the 
        business of the board agency; and (d) board agency 
        recommendations for legislative changes, further study, or any 
        other recommendation aimed at improving the system of 
        compensation. 
           Subd. 2.  [POWERS.] In addition to exercising any powers 
        specified in sections 115B.25 to 115B.37 or in other law, 
        the board agency may: 
           (1) in reviewing a claim, consider any information relevant 
        to the claim, in accordance with the evidentiary standards 
        contained in section 115B.35; 
           (2) contract for consultant or other services necessary to 
        carry out the board's agency's duties under sections 115B.25 to 
        115B.37; 
           (3) grant reasonable partial compensation on an emergency 
        basis pending the final decision on a claim if the claim is one 
        with respect to which an award will probably be made and undue 
        hardship will result to the claimant if immediate payment is not 
        made; 
           (4) limit access to information collected and maintained by 
        the board agency and take any other action necessary to protect 
        not public data as defined in section 13.02, subdivision 8a, and 
        protected information, in accordance with the limitations 
        contained in section 115B.35. 
           Subd. 3.  [INVESTIGATION; OBTAINING INFORMATION.] The board 
        agency may investigate any claim for compensation and for this 
        purpose it may require from the claimant and request from any 
        person information regarding any matter, fact, or circumstance 
        which is relevant to determination of a claim under section 
        115B.33.  In exercising its powers under this subdivision, 
        the board agency may collect information reasonably calculated 
        to lead to the discovery of evidence admissible under section 
        115B.35.  The board agency shall reimburse the person requested 
        to provide information the actual cost of copies of documents, 
        papers, samples, or other tangible items necessary to respond to 
        the request from the board agency.  In order to obtain this 
        information the board agency, subject to any applicable 
        privilege, may: 
           (a) request any person to produce documents, papers, books, 
        or other tangible things in the possession, custody, or control 
        of that person; 
           (b) request the sworn testimony of any person as to any 
        relevant fact or opinion; 
           (c) direct written questions to any person and request 
        written answers and objections; 
           (d) request a mental or physical examination of the 
        claimant or autopsy of any deceased person whose death is the 
        basis of the claim, provided that notice is given to the 
        claimant and the claimant receives a copy of the report; and 
           (e) request a waiver of medical privilege by the claimant. 
           The board agency shall give written notice of any request 
        under this subdivision at least 15 days before the person is 
        expected to comply with the request.  If a person fails or 
        refuses to comply with a request for information relevant to the 
        release of a harmful substance, the board agency may issue a 
        subpoena for the production of the information and may petition 
        the district court for an order enforcing the subpoena.  If a 
        person fails or refuses to comply with a request for other 
        information relevant to determination of the claim, the board 
        agency may petition the district court for an order to compel 
        compliance with the request.  If the claimant refuses to comply 
        with a request by the board agency for information relevant to 
        the claim, the board agency may dismiss the claim. 
           Subd. 4.  [ADMINISTRATIVE PERSONNEL AND SERVICES 
        INFORMATION FROM STATE AGENCIES.] The board may appoint an 
        executive director who is not a member of the board.  The 
        executive director is in the unclassified service.  The 
        commissioner of health shall provide staff assistance, 
        administrative services, and office space under a contract with 
        the board.  The board shall reimburse the commissioner for the 
        staff, services, and space provided.  In order to perform its 
        duties, the board agency may request information from the 
        supervising officer of any state agency or state institution of 
        higher education.  When requesting health data as defined in 
        section 13.3805, subdivision 1, or sections 144.671 to 144.69, 
        the board agency must submit a written release signed by the 
        subject of the data or, if the subject is deceased, a 
        representative of the deceased, authorizing release of the data 
        in whole or in part.  The supervising officer shall comply with 
        the board's agency's request to the extent possible considering 
        available agency or institution appropriations and may assign 
        agency or institution employees to assist the board agency in 
        performing its duties under sections 115B.25 to 115B.37. 
           Sec. 6.  Minnesota Statutes 2000, section 115B.29, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PERSONAL INJURY AND CERTAIN PROPERTY 
        CLAIMS.] A person may file a claim with the board agency 
        pursuant to this section for compensation for an eligible 
        injury, or for eligible property damage that could reasonably 
        have resulted from an exposure in Minnesota to a harmful 
        substance released from a facility. 
           Sec. 7.  Minnesota Statutes 2000, section 115B.30, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TIME FOR FILING CLAIM.] (a) A claim is not 
        eligible for compensation from the account unless it is filed 
        with the board agency within the time provided in this 
        subdivision. 
           (b) A claim for compensation for personal injury must be 
        filed within two years after the injury and its connection to 
        exposure to a harmful substance was or reasonably should have 
        been discovered. 
           (c) A claim for compensation for property damage must be 
        filed within two years after the full amount of compensable 
        losses can be determined. 
           (d) Notwithstanding the provisions of this subdivision, 
        claims for compensation that would otherwise be barred by any 
        statute of limitations provided in sections 115B.25 to 115B.37 
        may be filed not later than January 1, 1992. 
           Sec. 8.  Minnesota Statutes 2000, section 115B.31, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SUBSEQUENT ACTION OR CLAIM PROHIBITED IN 
        CERTAIN CASES.] (a) A person who has settled a claim for an 
        eligible injury or eligible property damage with a responsible 
        person, either before or after bringing an action in court for 
        that injury or damage, may not file a claim with the account for 
        the same injury or damage.  A person who has received a 
        favorable judgment in a court action for an eligible injury or 
        eligible property damage may not file a claim with the account 
        for the same injury or damage, unless the judgment cannot be 
        satisfied in whole or in part against the persons responsible 
        for the release of the harmful substance.  A person who has 
        filed a claim with the board agency or its predecessor, the 
        harmful substance compensation board, may not file another claim 
        with the board agency for the same eligible injury or damage, 
        unless the claim was inactivated by the agency or board as 
        provided in section 115B.32, subdivision 1. 
           (b) A person who has filed a claim with the agency or board 
        for an eligible injury or damage, and who has received and 
        accepted an award from the agency or board, is precluded from 
        bringing an action in court for the same eligible injury or 
        damage.  
           (c) A person who files a claim with the board agency for 
        personal injury or property damage must include all known claims 
        eligible for compensation in one proceeding before the board 
        agency. 
           Sec. 9.  Minnesota Statutes 2000, section 115B.31, 
        subdivision 2, is amended to read: 
           Subd. 2.  [USE OF PROTECTED INFORMATION AND BOARD AGENCY 
        FINDINGS.] The findings and decision of the board agency are 
        inadmissible in any court action.  Protected information may not 
        be used in any court action except to the extent that the 
        information is otherwise available to a party or discovered 
        under the applicable rules of civil or criminal procedure. 
           Sec. 10.  Minnesota Statutes 2000, section 115B.31, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SIMULTANEOUS CLAIM AND COURT ACTION PROHIBITED.] 
        A claimant may not commence a court action to recover for any 
        injury or damage for which the claimant seeks compensation from 
        the account during the time that a claim is pending before 
        the board agency.  A person may not file a claim with the board 
        agency for compensation for any injury or damage for which the 
        claimant seeks to recover in a pending court action.  The time 
        for filing a claim under section 115B.30 or the statute of 
        limitations for any civil action is suspended during the period 
        of time that a claimant is precluded from filing a claim or 
        commencing an action under this subdivision. 
           Sec. 11.  Minnesota Statutes 2000, section 115B.32, is 
        amended to read: 
           115B.32 [CLAIM FOR COMPENSATION.] 
           Subdivision 1.  [FORM.] A claim for compensation from the 
        account must be filed with the board agency in the form required 
        by the board agency.  When a claim does not include all the 
        information required by subdivision 2 and applicable board 
        agency rules, the board agency staff shall notify the claimant 
        of the absence of the required information within 14 days of the 
        filing of the claim.  All required information must be received 
        by the board agency not later than 60 days after the claimant 
        received notice of its absence or the claim will be inactivated 
        and may not be resubmitted for at least one year following the 
        date of inactivation.  The board agency may decide not to 
        inactivate a claim under this subdivision if it finds serious 
        extenuating circumstances. 
           Subd. 2.  [REQUIRED INFORMATION.] A claimant must provide 
        the following information as part of the claim, provided that 
        nothing in Laws 1985, First Special Session this chapter 8, 
        shall be construed to require the claimant to initiate a court 
        action before filing a claim: 
           (1) a sworn verification by the claimant of the facts set 
        forth in the claim to the best of the claimant's knowledge; 
           (2) evidence that the claimant is an eligible person; 
           (3) evidence of the claimant's exposure to a named harmful 
        substance; 
           (4) evidence that the claimant's exposure to the substance 
        in the amount and duration experienced by the claimant could 
        reasonably have been caused or significantly contributed to by 
        the release of a harmful substance from a facility where the 
        substance was placed or came to be located, to the extent the 
        information is available to the claimant; 
           (5) evidence that the exposure experienced by the claimant 
        can cause or can significantly contribute to the injury suffered 
        by the claimant; 
           (6) evidence of the injury eligible for compensation 
        suffered by the claimant and the compensable losses resulting 
        from the injury; 
           (7) evidence of any property damage eligible for 
        compensation and the amount of compensable losses resulting from 
        the damage; 
           (8) information regarding any collateral sources of 
        compensation; and 
           (9) other information required by the rules of the board 
        agency. 
           Subd. 3.  [DEATH CLAIMS.] In any case in which death is 
        claimed as a compensable injury, the claim may be brought on 
        behalf of the claimant by the claimant's estate for compensable 
        medical expenses and by the claimant's trustee for death 
        benefits for the claimant's dependents as defined in section 
        176.111.  
           Sec. 12.  Minnesota Statutes 2000, section 115B.33, is 
        amended to read: 
           115B.33 [DETERMINATION OF CLAIM.] 
           Subdivision 1.  [STANDARD FOR PERSONAL INJURY.] The 
        board agency shall grant compensation to a claimant who shows 
        that it is more likely than not that: 
           (1) the claimant suffers a medically verified injury that 
        is eligible for compensation from the account and that has 
        resulted in a compensable loss; 
           (2) the claimant has been exposed to a harmful substance; 
           (3) the release of the harmful substance from a facility 
        where the substance was placed or came to be located could 
        reasonably have resulted in the claimant's exposure to the 
        substance in the amount and duration experienced by the 
        claimant; and 
           (4) the injury suffered by the claimant can be caused or 
        significantly contributed to by exposure to the harmful 
        substance in an amount and duration experienced by the claimant. 
           Subd. 2.  [STANDARD FOR PROPERTY DAMAGE.] The board agency 
        shall grant compensation to a claimant who shows that it is more 
        likely than not that: 
           (1) the claimant has suffered property damage that is 
        eligible for compensation and that has resulted in compensable 
        loss; and 
           (2) the presence of the harmful substance in or on the 
        property could reasonably have resulted from the release of the 
        harmful substance from a facility where the substance was placed 
        or came to be located. 
           Sec. 13.  Minnesota Statutes 2000, section 115B.34, is 
        amended to read: 
           115B.34 [COMPENSABLE LOSSES.] 
           Subdivision 1.  [PERSONAL INJURY LOSSES.] Losses 
        compensable by the account for personal injury are limited to: 
           (1) medical expenses directly related to the claimant's 
        injury; 
           (2) up to two-thirds of the claimant's lost wages not to 
        exceed $2,000 per month or $24,000 per year; 
           (3) up to two-thirds of a self-employed claimant's lost 
        income, not to exceed $2,000 per month or $24,000 per year; 
           (4) death benefits to dependents which the board agency 
        shall define by rule subject to the following conditions: 
           (i) the rule adopted by the board agency must establish a 
        schedule of benefits similar to that established by section 
        176.111 and must not provide for the payment of benefits to 
        dependents other than those dependents defined in section 
        176.111; 
           (ii) the total benefits paid to all dependents of a 
        claimant must not exceed $2,000 per month; 
           (iii) benefits paid to a spouse and all dependents other 
        than children must not continue for a period longer than ten 
        years; 
           (iv) payment of benefits is subject to the limitations of 
        section 115B.36; and 
           (5) the value of household labor lost due to the claimant's 
        injury or disease, which must be determined in accordance with a 
        schedule established by the board by rule, not to exceed $2,000 
        per month or $24,000 per year. 
           Subd. 2.  [PROPERTY DAMAGE LOSSES.] (a) Losses compensable 
        by the account for property damage are limited to the following 
        losses caused by damage to the principal residence of the 
        claimant: 
           (1) the reasonable cost of replacing or decontaminating the 
        primary source of drinking water for the property not to exceed 
        the amount actually expended by the claimant or assessed by a 
        local taxing authority, if the department of health has 
        confirmed that the remedy provides safe drinking water and 
        advised that the water not be used for drinking or determined 
        that the replacement or decontamination of the source of 
        drinking water was necessary, up to a maximum of $25,000; 
           (2) losses incurred as a result of a bona fide sale of the 
        property at less than the appraised market value under 
        circumstances that constitute a hardship to the owner, limited 
        to 75 percent of the difference between the appraised market 
        value and the selling price, but not to exceed $25,000; and 
           (3) losses incurred as a result of the inability of an 
        owner in hardship circumstances to sell the property due to the 
        presence of harmful substances, limited to the increase in costs 
        associated with the need to maintain two residences, but not to 
        exceed $25,000.  
           (b) In computation of the loss under paragraph (a), clause 
        (3), the board agency shall offset the loss by the amount of any 
        income received by the claimant from the rental of the property. 
           (c) For purposes of paragraph (a), the following 
        definitions apply: 
           (1) "appraised market value" means an appraisal of the 
        market value of the property disregarding any decrease in value 
        caused by the presence of a harmful substance in or on the 
        property; and 
           (2) "hardship" means an urgent need to sell the property 
        based on a special circumstance of the owner including 
        catastrophic medical expenses, inability of the owner to 
        physically maintain the property due to a physical or mental 
        condition, and change of employment of the owner or other member 
        of the owner's household requiring the owner to move to a 
        different location. 
           (d) Appraisals are subject to board agency approval.  The 
        board agency may adopt rules governing approval of appraisals, 
        criteria for establishing a hardship, and other matters 
        necessary to administer this subdivision. 
           Sec. 14.  Minnesota Statutes 2000, section 115B.35, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TREATMENT OF PROTECTED INFORMATION.] In making a 
        preliminary or final decision under this section, the 
        board agency shall examine protected information outside of the 
        presence of the claimant, the claimant's attorney, or any other 
        person except agency staff to the board.  The board agency, the 
        board's agency's staff, and any other person who obtains access 
        to protected information under this section may not reveal 
        protected information to any person except as provided in this 
        section. 
           Sec. 15.  Minnesota Statutes 2000, section 115B.35, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EVIDENCE ADMISSIBLE IN CLAIM PROCEEDINGS.] In 
        the determination of a claim, the board agency may admit and 
        give probative effect to evidence that possesses probative value 
        commonly accepted by reasonable and prudent persons in the 
        conduct of their affairs.  The board agency shall give effect to 
        the rules of privilege recognized by law.  The board agency may 
        exclude incompetent, irrelevant, immaterial, and repetitious 
        evidence. 
           Sec. 16.  Minnesota Statutes 2000, section 115B.35, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PRELIMINARY DECISION.] The board member to whom 
        the claim is assigned agency shall review all materials filed in 
        support of the claim and may cause an investigation to be 
        conducted into the validity of the claim.  The board member 
        agency may make a preliminary decision on the basis of the 
        papers filed in support of the claim and the report of any 
        investigation of it. The decision must be in writing and include 
        the reasons for the decision, subject to the limitations on 
        disclosure of protected information. 
           Sec. 17.  Minnesota Statutes 2000, section 115B.35, 
        subdivision 8, is amended to read: 
           Subd. 8.  [APPEAL.] A final decision of the board agency 
        made under this section is conclusive on all matters decided.  
        There is no right to judicial review of a final decision of the 
        board agency. 
           Sec. 18.  Minnesota Statutes 2000, section 115B.35, 
        subdivision 9, is amended to read: 
           Subd. 9.  [REMEDIES AND PENALTIES.] A board An agency 
        member, board agency staff person, or other person who reveals 
        protected information in violation of this section is subject to 
        the civil remedies contained in section 13.08 and the penalties 
        in section 13.09. 
           Sec. 19.  Minnesota Statutes 2000, section 115B.36, is 
        amended to read: 
           115B.36 [AMOUNT AND FORM OF PAYMENT.] 
           If the board agency decides to grant compensation, it shall 
        determine the net uncompensated loss payable to the claimant by 
        computing the total amount of compensable losses payable to the 
        claimant and subtracting the total amount of any compensation 
        received by the claimant for the same injury or damage from 
        other sources including, but not limited to, all forms of 
        insurance and social security and any emergency award made by 
        the board agency.  The board agency shall pay compensation in 
        the amount of the net uncompensated loss, provided that no 
        claimant may receive more than $250,000.  In the case of a 
        death, the total amount paid to all persons on behalf of the 
        claimant may not exceed $250,000. 
           Compensation from the account may be awarded in a lump sum 
        or in installments at the discretion of the board agency. 
           Sec. 20.  Minnesota Statutes 2000, section 115B.37, is 
        amended to read: 
           115B.37 [ATTORNEY FEES.] 
           The board agency may by rule limit the fee charged by any 
        attorney for representing a claimant before the board agency. 
           Sec. 21.  Minnesota Statutes 2000, section 115C.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
        spent: 
           (1) to administer the petroleum tank release cleanup 
        program established in this chapter; 
           (2) for agency administrative costs under sections 116.46 
        to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
        action taken by the agency under section 115C.03, including 
        investigations; 
           (3) for costs of recovering expenses of corrective actions 
        under section 115C.04; 
           (4) for training, certification, and rulemaking under 
        sections 116.46 to 116.50; 
           (5) for agency administrative costs of enforcing rules 
        governing the construction, installation, operation, and closure 
        of aboveground and underground petroleum storage tanks; 
           (6) for reimbursement of the harmful substance compensation 
        environmental response, compensation, and compliance account 
        under subdivision 5 and section 115B.26, subdivision 4; 
           (7) for administrative and staff costs as set by the board 
        to administer the petroleum tank release program established in 
        this chapter; 
           (8) for corrective action performance audits under section 
        115C.093; and 
           (9) for contamination cleanup grants, as provided in 
        paragraph (c). 
           (b) Except as provided in paragraph (c), money in the fund 
        is appropriated to the board to make reimbursements or payments 
        under this section. 
           (c) $6,200,000 is annually appropriated from the fund to 
        the commissioner of trade and economic development for 
        contamination cleanup grants under section 116J.554.  Of this 
        amount, the commissioner may spend up to $120,000 annually for 
        administration of the contamination cleanup grant program.  The 
        appropriation does not cancel and is available until expended.  
        The appropriation shall not be withdrawn from the fund nor the 
        fund balance reduced until the funds are requested by the 
        commissioner of trade and economic development.  The 
        commissioner shall schedule requests for withdrawals from the 
        fund to minimize the necessity to impose the fee authorized by 
        subdivision 2.  Unless otherwise provided, the appropriation in 
        this paragraph may be used for: 
           (1) project costs at a qualifying site if a portion of the 
        cleanup costs are attributable to petroleum contamination; and 
           (2) the costs of performing contamination investigation if 
        there is a reasonable basis to suspect the contamination is 
        attributable to petroleum. 
           Sec. 22.  Minnesota Statutes 2000, section 115C.08, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ACCOUNT TRANSFER.] The board shall authorize the 
        commissioner of finance to transfer to the harmful substance 
        compensation environmental response, compensation, and 
        compliance account the amount requested by the harmful substance 
        compensation board pollution control agency under section 
        115B.26, subdivision 4.  Transfer of the amount must be made at 
        the earliest practical date after authorization by the board.  
        If the unencumbered balance in the account is less than 
        $2,000,000, the transfer must be made at the earliest practical 
        date after the unencumbered balance in the account exceeds that 
        amount.  
           Sec. 23.  [REVISOR INSTRUCTION.] 
           The revisor shall make the following changes in Minnesota 
        Rules, chapter 7190:  substitute "pollution control agency" or 
        "agency" for "harmful substance compensation board" or "board" 
        where it means the harmful substance compensation board; 
        substitute "agency" for "director"; substitute "agency staff" or 
        "staff" for "board members" or "member"; and substitute "agency" 
        for "board by majority vote." 
           Sec. 24.  [REPEALER.] 
           Minnesota Statutes 2000, sections 115B.27; and 115B.35, 
        subdivisions 1, 5, and 6; and Minnesota Rules, parts 7190.0001, 
        subparts 2 and 4; 7190.0002; 7190.0003; 7190.0004; 7190.0008, 
        subparts 1 and 2; 7190.0015, subparts 1 and 2; 7190.0100, 
        subpart 2; and 7190.1000, subpart 1, are repealed. 
           Presented to the governor May 17, 2002 
           Signed by the governor May 21, 2002, 3:11 p.m.

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