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

                            CHAPTER 488-H.F.No. 2699 
                  An act relating to state government; appropriating 
                  money for jobs and economic development, environment, 
                  natural resources, agriculture, criminal justice, 
                  state government, health, and human services; 
                  modifying term limit provisions for the rehabilitation 
                  advisory council for the blind; modifying a match 
                  requirement for the Judy Garland museum; exempting 
                  certain individuals from certain unemployment 
                  insurance additional benefits requirements; 
                  authorizing certain school food service workers to use 
                  wage credits earned for benefit purposes; exempting 
                  the jobs skills partnership board from certain state 
                  contracting requirements; modifying certain fees; 
                  providing for the expiration of securities filings; 
                  providing for a refund of certain excess securities 
                  fees; authorizing the rural policy and development 
                  center board to appoint additional members; 
                  authorizing the job skills partnership board to make 
                  certain grants; authorizing the Minnesota state 
                  colleges and universities board to make certain 
                  investments; increasing certain penalties; providing 
                  certain rights to next of kin of a deceased employee; 
                  extending the expiration date of the legislative 
                  electric energy task force; modifying provisions 
                  relating to renewable energy incentive payments; 
                  setting a goal for the department of economic 
                  security; increasing grant limits; modifying 
                  unemployment benefit eligibility; modifying a 
                  dislocated worker grant provision; codifying 
                  electrical inspection fee provisions; extending sunset 
                  date for board of boxing; transferring boxing 
                  regulation to the board of health; authorizing a 
                  study; modifying unclaimed property provisions; 
                  extending the time a grant is available; canceling 
                  certain appropriations; reducing appropriations to the 
                  department of commerce; modifying agricultural 
                  licensing fees; changing certain agricultural chemical 
                  reimbursement and ethanol producer payment provisions; 
                  modifying provisions relating to rural finance 
                  authority; creating the agroforestry loan program; 
                  creating certain recreation areas; modifying natural 
                  resources funding formulas; modifying state trail and 
                  park provisions; modifying drainage authority funding 
                  sources; modifying storage tank provisions; modifying 
                  certain resource recovery facility provisions; 
                  modifying provisions relating to state land transfers; 
                  creating an agricultural land set-aside program; 
                  increasing criminal penalty fines; requiring a study 
                  on issues related to providing shelter for victims of 
                  domestic violence; authorizing local road authorities 
                  to provide by ordinance for designation of pedestrian 
                  safety crossings on highways under certain 
                  circumstances; establishing a capitol complex 
                  oversight committee consisting of legislative and 
                  executive agency members to plan and oversee security 
                  in the capitol complex area; requiring the Minnesota 
                  safety council to enhance its crosswalk safety 
                  awareness program; authorizing the council to make 
                  grants to local units of government for enhancing 
                  enforcement of pedestrian safety laws; establishing a 
                  joint domestic abuse prosecution unit to be 
                  administered by the Ramsey county attorney's office 
                  and St. Paul city attorney office; establishing a 
                  grant program for peace officer education to combat 
                  juvenile prostitution; requiring the commissioner of 
                  public safety to develop an automobile theft 
                  prevention program; requiring the commissioner of 
                  corrections to develop a uniform method to calculate 
                  per diem cost of incarcerating offenders at state 
                  adult correctional facilities; adopting a formula that 
                  requires counties and the state to share costs of 
                  confinement at Minnesota correctional facility-Red 
                  Wing; authorizing the commissioner of corrections to 
                  make juvenile residential treatment grants; requiring 
                  placement of juveniles at Red Wing if admission 
                  criteria are met unless the court finds the safety of 
                  the child or community can best be met in an 
                  out-of-state facility; requiring mandatory commitment 
                  to the commissioner of corrections of certain 
                  juveniles who have refused or failed to complete sex 
                  offender or chemical treatment programs; authorizing 
                  conveyance of state land for regional jail programs; 
                  modifying provisions relating to state government 
                  operations; reducing the Minnesota comprehensive 
                  health association's operating deficit assessment; 
                  allowing a hospital construction project in Beltrami 
                  county; allowing exceptions to the nursing home 
                  moratorium; removing the reimbursement prohibition for 
                  marriage and family therapists under medical 
                  assistance; expanding the senior drug program; 
                  requiring information on prescription drug patient 
                  assistance; changing long-term care provisions; 
                  increasing rates for nursing facilities and other 
                  providers; changing provisions governing public 
                  assistance programs; providing for immigration status 
                  verification and requiring a report to the Immigration 
                  and Naturalization Service on undocumented aliens; 
                  making changes to the distribution and treatment of 
                  child support in public assistance programs; 
                  establishing a local interventions for 
                  self-sufficiency grant program; establishing a 
                  supportive housing pilot project; establishing a 
                  nontraditional career assistance and training program; 
                  establishing an at-risk youth out-of-wedlock pregnancy 
                  prevention program; extending public assistance 
                  eligibility for certain groups; authorizing county 
                  pilot projects for families on public assistance; 
                  making technical corrections; amending Minnesota 
                  Statutes 1998, sections 16A.11, subdivision 3; 
                  16A.126, subdivision 2; 16B.052; 16B.48, subdivision 
                  4; 16B.485; 16C.05, subdivision 3; 16E.04, by adding a 
                  subdivision; 17.4988, subdivision 2; 17A.03, 
                  subdivision 5; 18E.04, subdivision 4; 41A.09, 
                  subdivision 3a; 41B.03, subdivisions 1 and 2; 41B.039, 
                  subdivision 2; 41B.04, subdivision 8; 41B.042, 
                  subdivision 4; 41B.043, subdivision 2; 41B.045, 
                  subdivision 2; 60H.03, by adding a subdivision; 
                  80A.122, by adding a subdivision; 80A.28, subdivision 
                  1; 85.015, by adding a subdivision; 85.34, subdivision 
                  1, and by adding subdivisions; 97A.055, subdivision 2; 
                  103E.011, by adding a subdivision; 116L.04, 
                  subdivision 1; 125A.74, subdivisions 1 and 2; 144.551, 
                  subdivision 1; 144A.071, subdivision 4a, and by adding 
                  a subdivision; 148B.32, subdivision 1; 168A.40, 
                  subdivisions 3 and 4; 169.21, subdivisions 2 and 3; 
                  169.89, subdivision 2; 181A.12, subdivision 1; 
                  182.661, subdivision 1; 182.666, subdivision 2, and by 
                  adding a subdivision; 216C.41, subdivision 3; 242.41; 
                  242.43; 242.44; 252.28, by adding a subdivision; 
                  256.01, by adding a subdivision; 256.741, by adding a 
                  subdivision; 256.955, subdivisions 1, 2, and by adding 
                  subdivisions; 256.9751; 256B.0625, by adding a 
                  subdivision; 256B.431, by adding subdivisions; 
                  256B.434, by adding a subdivision; 256B.501, by adding 
                  a subdivision; 256B.69, subdivision 5d; 256J.32, by 
                  adding a subdivision; 256J.45, subdivision 3; 256J.47, 
                  subdivision 1; 256J.49, subdivision 13; 256J.50, 
                  subdivisions 5 and 7; 256L.05, subdivision 5; 268.362, 
                  subdivision 2; 297A.44, subdivision 1; 345.31, by 
                  adding a subdivision; 345.39, subdivision 1; 383B.235, 
                  by adding a subdivision; 422A.101, subdivision 3; 
                  609.02, subdivisions 3 and 4a; 609.03; 609.033; 
                  609.0331; 609.0332, subdivision 1; and 609.034; 
                  Minnesota Statutes 1999 Supplement, sections 16A.103, 
                  subdivision 1; 16A.129, subdivision 3; 62J.535, 
                  subdivision 2; 116.073, subdivision 1; 116J.421, 
                  subdivision 2; 119B.011, subdivision 15; 144.395, by 
                  adding a subdivision; 144.396, subdivisions 11 and 12; 
                  242.192; 256.01, subdivision 2; 256.019; 256.955, 
                  subdivisions 4, 8, and 9; 256B.057, subdivision 3; 
                  256B.0916, subdivision 1; 256B.094, subdivision 6; 
                  256B.431, subdivisions 17 and 28; 256B.69, 
                  subdivisions 5b and 5c; 256D.03, subdivision 4; 
                  256D.053, subdivision 1; 256J.08, subdivision 86; 
                  256J.21, subdivision 2; 256J.33, subdivision 4; 
                  256J.34, subdivisions 1 and 4; 256J.37, subdivision 9; 
                  256J.52, subdivisions 3 and 5; 256J.56; 268.085, 
                  subdivision 4; 268.98, subdivision 3; and 326.105; 
                  Laws 1997, chapter 200, article 1, section 5, 
                  subdivision 3; chapter 203, article 9, section 21, as 
                  amended; chapter 225, article 4, section 4, as 
                  amended; Laws 1998, chapter 389, article 16, section 
                  31, subdivision 2, as amended; chapter 404, section 7, 
                  subdivision 23, as amended; Laws 1999, chapter 216, 
                  article 1, sections 7, subdivision 6; 9; 14; and 18; 
                  chapter 223, article 1, section 6, subdivision 1; 
                  article 2, section 81, as amended; chapter 231, 
                  sections 2, subdivision 2; 6, as amended; 11, 
                  subdivision 3; and 14; chapter 245, article 1, section 
                  2, subdivisions 5 and 8; article 4, section 121; and 
                  article 10, section 10; and chapter 250, article 1, 
                  sections 11; 12, subdivision 8; 14, subdivision 3; and 
                  18; proposing coding for new law in Minnesota 
                  Statutes, chapters 16A; 41B; 116L; 136F; 144; 169; 
                  182; 241; 242; 256J; 256K; 260B; 268; 299A; 299E; 326; 
                  and 345; repealing Minnesota Statutes 1998, section 
                  168A.40, subdivision 1; Minnesota Statutes 1999 
                  Supplement, sections 144.396, subdivision 13; and 
                  168A.40, subdivision 2; Laws 1997, chapter 203, 
                  article 7, section 27; and Laws 1999, chapter 250, 
                  article 1, section 15, subdivision 4; and Minnesota 
                  Rules, part 3800.3810. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                  JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS 
        Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this article, to 
        be available for the fiscal years indicated for each purpose.  
        The figures "2000" and "2001," where used in this article, mean 
        that the appropriation or appropriations listed under them are 
        available for the year ending June 30, 2000, or June 30, 2001, 
        respectively.  The term "first year" means the fiscal year 
        ending June 30, 2000, and "second year" means the fiscal year 
        ending June 30, 2001. 
                                SUMMARY BY FUND
                                    2000          2001           TOTAL
        General              $    737,000    $  3,476,000    $  4,213,000
        TANF                       -0-            500,000         500,000
        Workforce Development  
        Fund                       -0-          1,827,000       1,827,000
        Workers' Compensation 
        Fund                       -0-             90,000          90,000
        TOTAL                $    737,000      $5,893,000      $6,630,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2000         2001 
        Sec. 2.  TRADE AND ECONOMIC
        DEVELOPMENT                          -0-              2,771,000 
        This appropriation is for the purposes 
        stated in this section, and is added to 
        the appropriation in Laws 1999, chapter 
        223, article 1, section 2. 
        (a) Labor Force Assessments
               -0-            750,000 
        This appropriation is for grants to 
        local or regional economic development 
        agencies to support the development and 
        use of labor force assessments that 
        will allow the agencies to recognize 
        areas in which the skill sets or 
        education of the available workforce 
        are underused.  Projects are eligible 
        for grants of up to 60 percent of the 
        total project costs.  The commissioner 
        shall develop criteria for these grants 
        that will maximize their effectiveness 
        in assisting local economic development 
        efforts.  The criteria shall give a 
        preference to projects that have the 
        support and involvement of multiple 
        economic development agencies across a 
        geographic region where appropriate, 
        provided that the size of the area 
        covered by a project does not interfere 
        with the usefulness of the information 
        generated.  This is a one-time 
        appropriation and is not added to the 
        agency's budget base. 
        (b) Catalyst Grants
               -0-          1,000,000 
        This appropriation is for catalyst 
        grants to local governments and 
        recognized Indian tribal governments to 
        expand Internet access in areas of 
        rural Minnesota that are otherwise 
        unlikely to receive access through 
        existing technology.  Catalyst grants 
        are for capital expenditures related to 
        providing Internet access to residences 
        and businesses using either traditional 
        fiber optic cable or wireless 
        technology.  Eligible capital 
        expenditures include equipment and 
        construction costs, but do not include 
        the costs of planning, engineering, or 
        preliminary design.  The commissioner 
        shall award catalyst grants according 
        to a competitive grant process and 
        shall create criteria for the award of 
        grants.  These criteria shall include a 
        preference for projects that will 
        provide both business and residential 
        Internet access, provided that a 
        project is presumed to provide business 
        access only if it will enable access of 
        at least 512 kilobytes per second.  The 
        maximum catalyst grant for any project 
        is $250,000 or 25 percent of the 
        eligible capital expenditures, 
        whichever is less.  This is a one-time 
        appropriation and is not added to the 
        agency's budget base. 
        (c) Tourism Loan Account
               -0-          1,021,000 
        This appropriation is for transfer to 
        the tourism loan account established 
        under Minnesota Statutes, section 
        116J.617, subdivision 5, for the 
        tourism loan program under Minnesota 
        Statutes, section 116J.617.  This is a 
        one-time appropriation and shall be 
        targeted to northern Minnesota. 
        (d) Cancellation
        Of the unspent and unencumbered 
        portions of the appropriations in Laws 
        1997, chapter 200, article 1, section 
        2, subdivision 2, for the pathways 
        program under Minnesota Statutes, 
        section 116L.04, subdivision 1a, 
        $800,000 is canceled and returned to 
        the general fund. 
           EFFECTIVE DATE:  This paragraph is effective the day 
        following final enactment. 
        Sec. 3.  MINNESOTA TECHNOLOGY            -0-            200,000
        This appropriation is for the 
        e-Business Institute.  This is a 
        one-time appropriation and is not added 
        to the agency's budget base. 
        Sec. 4.  HOUSING FINANCE AGENCY          -0-            500,000
        This appropriation is for the family 
        homeless prevention and assistance 
        program under Minnesota Statutes, 
        section 462A.204, and is available 
        until June 30, 2001.  This 
        appropriation is from the state's 
        federal TANF block grant under title I 
        of Public Law Number 104-193 to the 
        commissioner of human services, to 
        reimburse the housing development fund 
        for assistance under this program for 
        families receiving TANF assistance 
        under the MFIP program.  The 
        commissioner of human services shall 
        make quarterly reimbursements to the 
        housing development fund.  The 
        commissioner of human services shall 
        not make any reimbursement which the 
        commissioner determines would be 
        subject to a penalty under Code of 
        Federal Regulations, section 262.1.  
        This is a one-time appropriation. 
        Sec. 5.  BOARD OF ARCHITECTURE,
        ENGINEERING, LAND SURVEYING, LANDSCAPE
        LANDSCAPE ARCHITECTURE, AND  
        INTERIOR DESIGN                          -0-            130,000
        This appropriation is for enforcement 
        activities of the board.  
        Sec. 6.  BOARD OF BOXING                 -0-             65,000
        This amount is added to the 
        appropriation in Laws 1999, chapter 
        223, article 1, section 10. 
        Sec. 7.  DEPARTMENT OF ECONOMIC
        SECURITY                             1,037,000        1,977,000
        (a) Youthbuild 
        Of this amount, $200,000 in the first 
        year is a one-time appropriation for 
        grants to existing Youthbuild programs 
        that have experienced a loss of federal 
        funds and are unable to fulfill their 
        missions under Minnesota Statutes, 
        sections 268.361 to 268.366. 
        (b) Alien Labor Certification 
        Of this amount, $150,000 the second 
        year is a one-time appropriation for 
        alien labor certification, and is 
        available as matching funds are 
        provided on at least a 
        dollar-for-dollar basis from nonstate 
        sources. 
        (c) Displaced Homemaker Programs 
        Of this amount, $1,827,000 the second 
        year is an appropriation from the 
        workforce development fund for 
        displaced homemaker programs under 
        Minnesota Statutes, section 268.96.  
        The general fund appropriation of 
        $1,827,000 for displaced homemaker 
        programs in fiscal year 2001 in Laws 
        1999, chapter 223, article 1, section 
        4, subdivision 4, is canceled and 
        returned to the general fund.  The 
        services, locations, and operations of 
        the displaced homemaker programs shall 
        not be changed because of the change of 
        appropriation fund source by this 
        paragraph.  The workforce development 
        fund shall be the ongoing funding 
        source for displaced homemaker programs 
        under Minnesota Statutes, section 
        268.96. 
        (d) Summer Youth Employment
        $837,000 in the first year is for 
        summer youth employment programs.  This 
        is a one-time appropriation and is not 
        added to the agency's budget base.  
        This appropriation is available 
        immediately. 
           Sec. 8.  Laws 1997, chapter 200, article 1, section 5, 
        subdivision 3, is amended to read:  
        Subd. 3.  State Services for the Blind 
             3,735,000      3,816,000
        This appropriation may be supplemented 
        by funds provided by the Friends of the 
        Communication Center, for support of 
        Services for the Blind's Communication 
        Center, which serves all blind and 
        visually handicapped Minnesotans.  The 
        commissioner shall report to the 
        legislature on a biennial basis the 
        funds provided by the Friends of the 
        Communication Center. 
        The commissioner may not require 
        employees to participate in intensive 
        blindness sensitivity training in which 
        the employees are blindfolded or 
        otherwise simulate blindness, unless 
        the employee is a manager or counselor; 
        except that the commissioner may 
        require the training for up to 14 
        employees who are not managers or 
        counselors but have direct contact with 
        blind clients seeking services, and up 
        to four employees at the store located 
        at the state services for the blind. 
        A person may not serve more than a 
        total of six consecutive years as a 
        member of the rehabilitation advisory 
        council for the blind or its 
        predecessor, the council for the 
        blind.  Service prior to the effective 
        date of this section is included in the 
        six-year limit, except that a person 
        currently serving on the rehabilitation 
        advisory council for the blind may 
        serve out the person's current term and 
        serve one additional term After six 
        consecutive years of service, a person 
        may not be reappointed to the council 
        until a period of one year has elapsed. 
           Sec. 9.  Laws 1999, chapter 223, article 1, section 6, 
        subdivision 1, is amended to read 
        Subdivision 1.  Total 
        Appropriation                         18,927,000     17,460,000
                                              18,627,000     16,760,000 
                      Summary by Fund
        General              17,245,000    15,831,000
                             16,945,000    15,131,000 
        Petro Cleanup         1,015,000     1,045,000 
        Workers'
        Compensation            567,000       584,000
        Special Revenue         100,000       -0-  
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following 
        subdivisions, except that with respect 
        to general fund appropriations, the 
        commissioner must reduce the amounts 
        spent from the amounts specified by a 
        total of $300,000 in the first year and 
        $700,000 in the second year.  The 
        general fund base for the department 
        shall be $14,853,000 in fiscal year 
        2002 and $14,877,000 in fiscal year 
        2003. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
        Sec. 10.  MINNESOTA HISTORICAL
        SOCIETY                                  -0-            850,000
        $850,000 in the second year is for 
        salary adjustments. 
        Sec. 11.  DEPARTMENT OF        
        FINANCE                                  -0-             10,000
        This appropriation is for up to $10,000 
        for the commissioner of finance to 
        consult with the commissioner of 
        employee relations and the Minnesota 
        Historical Society to consider the 
        causes of ongoing shortfalls in the 
        salary and benefit accounts at the 
        Minnesota Historical Society, and to 
        compare the salaries and benefits at 
        agencies in other states that have 
        comparable missions.  The commissioner 
        shall report findings, including 
        recommendations, to the legislature by 
        December 31, 2000.  This is a one-time 
        appropriation and is not added to the 
        agency's budget base. 
        Sec. 12.  DEPARTMENT OF LABOR 
        AND INDUSTRY                             -0-             90,000 
        This appropriation is from the workers' 
        compensation fund for the workplace 
        services division to administer article 
        2, sections 11 to 14.  This amount is 
        added to the appropriation in Laws 
        1999, chapter 223, article 1, section 
        11, subdivision 3. 
           Sec. 13.  [JUDY GARLAND MUSEUM.] 
           Notwithstanding Laws 1997, chapter 200, article 1, section 
        2, subdivision 2, the match required for the appropriation for 
        an agreement under that law with the Judy Garland Children's 
        Museum and the department of trade and economic development is 
        an equal match of $200,000. 
           Sec. 14.  [UPPER RED LAKE BUSINESS LOAN PROGRAM.] 
           The appropriation to the commissioner of trade and economic 
        development in Laws 1999, chapter 223, article 1, section 2, 
        subdivision 4, for the Upper Red Lake business loan program is 
        available until January 31, 2001, and applications for grants 
        under that program may be accepted until that date. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 15.  [ADVANTAGE MINNESOTA.] 
           The appropriation to the commissioner of trade and economic 
        development in Laws 1999, chapter 223, article 1, section 2, 
        subdivision 2, for a grant to Advantage Minnesota is available 
        and may be matched until June 30, 2001. 
           EFFECTIVE DATE: This section is effective the day following 
        final enactment. 
           Sec. 16.  [JOBS SKILLS PARTNERSHIP BOARD.] 
           (a) The appropriation by Laws 1999, chapter 223, article 1, 
        section 2, subdivision 2, to the department of trade and 
        economic development from the workforce development fund for the 
        jobs skills partnership board for the pathways program does not 
        cancel and is available until expended.  If the appropriation 
        for either year is insufficient, the appropriation for the other 
        year is available.  
           (b) The appropriation by Laws 1999, chapter 223, article 1, 
        section 2, subdivision 2, to the department of trade and 
        economic development from the state's federal TANF block grant 
        under Title 1 of Public Law Number 104-193 to the commissioner 
        of human services, to be transferred to the commissioner of 
        trade and economic development for the pathways program under 
        Minnesota Statutes, section 116L.04, subdivision 1a, does not 
        cancel and is available until expended.  If the appropriation 
        for either year is insufficient, the appropriation for the other 
        year is available.  
           (c) The appropriation by Laws 1999, chapter 245, article 1, 
        section 2, subdivision 10, to the commissioner of health and 
        human services from the state's federal TANF block grant under 
        Title 1 of Public Law Number 104-193, to increase employment and 
        training services grants for MFIP of which $750,000 is to be 
        transferred to the jobs skills partnership board for the health 
        care and human services worker training and retention program, 
        does not cancel and is available until expended.  If the 
        appropriation for either year is insufficient, the appropriation 
        for the other year is available. 
           Sec. 17.  [WORKFORCE CENTER LOCATIONS.] 
           The commissioner of the department of administration shall 
        assist the commissioner of economic security and the board of 
        trustees of the Minnesota state colleges and universities system 
        to develop and report to the legislature by January 15, 2001, on 
        a ten-year plan for the possible location of workforce centers 
        or affiliate locations on Minnesota college and university 
        campuses where appropriate.  
           The plan must identify space requirements, current 
        workforce center lease expiration dates, and the campuses that 
        can immediately accommodate workforce centers, and recommend 
        timelines for colocating workforce centers with Minnesota state 
        colleges and universities system facilities.  
           If additional space would be required to accommodate the 
        workforce center, the plan must outline alternative capital 
        financing mechanisms, including private build-lease. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 18.  [UNEMPLOYMENT INSURANCE; FOOD SERVICES.] 
           Notwithstanding the provisions of Minnesota Statutes, 
        section 268.085, subdivision 8, wage credits from an employer 
        are not subject to the provisions of Minnesota Statutes, section 
        268.085, subdivision 7, if those wage credits were earned during 
        the school year by an employee of a private employer performing 
        work pursuant to a contract between the employer and an 
        elementary or secondary school and the employment was related to 
        food services provided to the school by the employer.  This 
        section expires December 31, 2001. 
           Sec. 19.  [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS; 
        HENNEPIN PAPER.] 
           Notwithstanding Minnesota Statutes, section 268.125, an 
        applicant is eligible to receive additional benefits for any 
        week under Minnesota Statutes, section 268.125, if: 
           (1) the applicant was laid off due to lack of work from the 
        Hennepin Paper Company in Morrison county; 
           (2) the applicant is a member of a group certified on May 
        4, 1999, under the North American Free Trade Agreement or the 
        Trade Adjustment Act as having been impacted by foreign imports; 
           (3) the applicant has exhausted all rights to regular 
        benefits under Minnesota Statutes, section 268.07, and does not 
        qualify for a new benefit account under Minnesota Statutes, 
        section 268.07, and is not entitled to receive unemployment 
        benefits under any other state or federal law; 
           (4) the applicant is presently attending training or is on 
        vacation from training pursuant to the North American Free Trade 
        Agreement or the Trade Adjustment Act; 
           (5) the applicant has filed a continued request for 
        benefits under Minnesota Statutes, section 268.086, for the 
        week; 
           (6) a majority of the applicant's wage credits were from 
        the Hennepin Paper Company; 
           (7) the applicant is not subject to a disqualification 
        under Minnesota Statutes, section 268.095; and 
           (8) the applicant meets the eligibility requirements under 
        Minnesota Statutes, section 268.085, except for subdivision 1, 
        clause (2). 
           The disqualification provisions under Minnesota Statutes, 
        section 268.095, apply to this section. 
           The applicant's weekly additional benefit amount shall be 
        the same as the applicant's weekly benefit amount under 
        Minnesota Statutes, section 268.07. 
           The maximum amount of the additional benefits available 
        shall be 26 times the applicant's weekly benefit amount under 
        Minnesota Statutes, section 268.07. 
           Additional benefits under this section are payable from the 
        fund. 
           This section expires January 1, 2001. 
           Sec. 20.  [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS; 
        EVTAC MINING.] 
           Notwithstanding Minnesota Statutes, section 268.125, 
        subdivisions 1, and 3, clauses (1) and (5), an applicant is 
        eligible to receive additional benefits under Minnesota 
        Statutes, section 268.125, effective the week following the week 
        in which the applicant exhausted regular benefits if: 
           (1) the applicant was laid off due to lack of work from the 
        Evtac Mining Company in St. Louis county between the months of 
        June and August of 1999; and 
           (2) the commissioner of economic security finds that the 
        applicant satisfies the conditions of Minnesota Statutes, 
        section 268.125, subdivision 3, clauses (2) to (4).  
           This section does not apply to any applicant who, with 
        respect to any period prior to September 1, 2000, receives, or 
        has an agreement to receive, a retirement pension financed in 
        whole or in part by the Evtac Mining Company. 
           Sec. 21.  [EFFECTIVE DATE.] 
           Sections 19 and 20 and any appropriation and related rider 
        for fiscal year 2000 are effective the day following final 
        enactment. 

                                   ARTICLE 2
                JOBS AND ECONOMIC DEVELOPMENT POLICY PROVISIONS
           Section 1.  Minnesota Statutes 1998, section 16C.05, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXCEPTION.] The requirements of subdivision 2 do 
        not apply to contracts of the department of economic security 
        distributing state and federal funds for the purpose of 
        subcontracting the provision of program services to eligible 
        recipients.  For these contracts, the commissioner of economic 
        security is authorized to directly enter into agency contracts 
        and encumber available funds.  For contracts distributing state 
        or federal funds pursuant to the federal Economic Dislocation 
        and Worker Adjustment Assistance Act, United States Code, title 
        29, section 1651 et seq., or sections 268.9771, 268.978, 
        268.9781, and 268.9782, the commissioner of economic security is 
        authorized to directly enter into agency contracts with approval 
        of the workforce development council and encumber available 
        funds to ensure a rapid response to the needs of dislocated 
        workers.  The commissioner of economic security shall adopt 
        internal procedures to administer and monitor funds distributed 
        under these contracts.  This exception also applies to any 
        contracts entered into by the commissioner of children, 
        families, and learning and the jobs skills partnership board 
        that were previously entered into by the commissioner of 
        economic security. 
           Sec. 2.  Minnesota Statutes 1998, section 60H.03, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [TERM AND FEES.] The term of a managing general 
        agent license issued under this section and the license fees 
        imposed are the same as those applicable to a licensed insurance 
        agent under chapter 60K.  
           Sec. 3.  Minnesota Statutes 1998, section 80A.122, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [EXPIRATION.] (a) A filing made in connection 
        with the securities of an open-end investment company under 
        subdivision 1 expires the next June 30 unless renewed.  To renew 
        a notice filing, an issuer shall: 
           (1) before expiration of a current notice filing, file with 
        the commissioner the documents specified by the commissioner 
        under subdivision 1, clause (2), together with any fees required 
        by section 80A.28, subdivision 1, paragraph (c); and 
           (2) no later than September 1 following expiration, file a 
        sales report for the prior fiscal year with the commissioner 
        specifying: 
           (i) the registered sales; 
           (ii) the actual sales; and 
           (iii) the balance that could be sold without an additional 
        filing under section 80A.28, subdivision 1, paragraph (c). 
           (b) No portion of the unsold balance of shares indicated on 
        the issuer's sales report may be lawfully sold in this state in 
        connection with a renewed notice filing until fees have been 
        paid to renew the shares. 
           Sec. 4.  Minnesota Statutes 1998, section 80A.28, 
        subdivision 1, is amended to read: 
           Subdivision 1.  (a) There shall be a filing fee of $100 for 
        every application for registration or notice filing.  There 
        shall be an additional fee of one-tenth of one percent of the 
        maximum aggregate offering price at which the securities are to 
        be offered in this state, and the maximum combined fees shall 
        not exceed $300.  
           (b) When an application for registration is withdrawn 
        before the effective date or a preeffective stop order is 
        entered under section 80A.13, subdivision 1, all but the $100 
        filing fee shall be returned.  If an application to register 
        securities is denied, the total of all fees received shall be 
        retained. 
           (c) Where a filing is made in connection with a federal 
        covered security under section 18(b)(2) of the Securities Act of 
        1933, there is a fee of $100 for every initial filing.  If the 
        filing is made in connection with redeemable securities issued 
        by an open end management company or unit investment trust, as 
        defined in the Investment Company Act of 1940, there is an 
        additional annual fee of 1/20 of one percent of the maximum 
        aggregate offering price at which the securities are to be 
        offered in this state during the notice filing period.  The fee 
        must be paid at the time of the initial filing and thereafter in 
        connection with each renewal no later than July 1 of each year 
        and must be sufficient to cover the shares the issuer expects to 
        sell in this state over the next 12 months.  If during a current 
        notice filing the issuer determines it is likely to sell shares 
        in excess of the shares for which fees have been paid to the 
        commissioner, the issuer shall submit an amended notice filing 
        to the commissioner under section 80A.122, subdivision 1, clause 
        (3), together with a fee of 1/20 of one percent of the maximum 
        aggregate offering price of the additional shares.  Shares for 
        which a fee has been paid, but which have not been sold at the 
        time of expiration of the notice filing, may not be sold unless 
        an additional fee to cover the shares has been paid to the 
        commissioner as provided in this section and section 80A.122, 
        subdivision 4a.  If the filing is made in connection with 
        redeemable securities issued by such a company or trust, there 
        is no maximum fee for securities filings made according to this 
        paragraph.  If the filing is made in connection with any other 
        federal covered security under Section 18(b)(2) of the 
        Securities Act of 1933, there is an additional fee of one-tenth 
        of one percent of the maximum aggregate offering price at which 
        the securities are to be offered in this state, and the combined 
        fees shall not exceed $300.  Beginning with fiscal year 2001 and 
        continuing each fiscal year thereafter, as of the last day of 
        each fiscal year, the commissioner shall determine the total 
        amount of all fees that were collected under this paragraph in 
        connection with any filings made for that fiscal year for 
        securities of an open-end investment company on behalf of a 
        security that is a federal covered security pursuant to section 
        18(b)(2) of the Securities Act of 1933.  To the extent the total 
        fees collected by the commissioner in connection with these 
        filings exceed $25,000,000 in a fiscal year, the commissioner 
        shall refund, on a pro rata basis, to all persons who paid any 
        fees for that fiscal year, the amount of fees collected by the 
        commissioner in excess of $25,000,000.  No individual refund is 
        required of amounts of $100 or less for a fiscal year. 
           Sec. 5.  Minnesota Statutes 1999 Supplement, section 
        116J.421, subdivision 2, is amended to read: 
           Subd. 2.  [GOVERNANCE.] The center is governed by a board 
        of directors appointed to six-year terms by the governor 
        comprised of: 
           (1) a representative from each of the two largest statewide 
        general farm organizations; 
           (2) a representative from a regional initiative 
        organization selected under section 116J.415, subdivision 3; 
           (3) the president of Mankato State University; 
           (4) a representative from the general public residing in a 
        town of less than 5,000 located outside of the metropolitan 
        area; 
           (5) a member of the house of representatives appointed by 
        the speaker of the house and a member of the senate appointed by 
        the subcommittee on committees of the senate committee on rules 
        and administration appointed for two-year terms; 
           (6) three representatives from business, including one 
        representing rural manufacturing and one rural retail and 
        service business; 
           (7) three representatives from private foundations with a 
        demonstrated commitment to rural issues; 
           (8) one representative from a rural county government; and 
           (9) one representative from a rural regional government. 
           The board shall appoint one additional member to the board 
        of directors who shall represent the general public.  
           If the board concludes at any time that the composition of 
        the board does not adequately reflect the ethnic and gender 
        diversity of rural Minnesota, the board may appoint up to four 
        additional members in order to better reflect this diversity.  
        Members appointed by the board under this paragraph shall serve 
        six-year terms.  The board may not appoint additional members 
        such that the board would have a total of more than 20 members. 
           Sec. 6.  Minnesota Statutes 1998, section 116L.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PARTNERSHIP PROGRAM.] (a) The partnership 
        program may provide grants-in-aid to educational or other 
        nonprofit training educational institutions using the following 
        guidelines:  
           (1) the educational or other nonprofit educational 
        institution is a provider of training within the state in either 
        the public or private sector; 
           (2) the program involves skills training that is an area of 
        employment need; and 
           (3) preference will be given to educational or other 
        nonprofit training institutions which serve economically 
        disadvantaged people, minorities, or those who are victims of 
        economic dislocation and to businesses located in rural areas.  
           (b) A single grant to any one institution shall not exceed 
        $400,000.  
           Sec. 7.  [116L.16] [DISTANCE-WORK GRANTS.] 
           The job skills partnership board may make grants-in-aid for 
        distance-work projects.  The purpose of the grants is to promote 
        distance-work projects involving technology in rural areas and 
        may include a consortium of organizations partnering in the 
        development of rural technology industry.  Grants may be used to 
        identify and train rural workers in technology and provide rural 
        workers with physical connections to telecommunications 
        infrastructure, where necessary, in order to be self-employed or 
        employed from their homes or satellite offices.  Grants must be 
        made according to Minnesota Statutes, sections 116L.02 and 
        116L.04, except that: 
           (1) the business match may include, but is not limited to, 
        additional management or technology staff costs; start-up 
        equipment costs such as telecommunications infrastructure, 
        additional software, or computer upgrades; consulting fees for 
        implementation of distance-work policies or identification and 
        skill assessment of potential employees; and the joint financial 
        contribution of two or more businesses acting as a consortium; 
           (2) cash or in-kind contributions by partnering 
        organizations may be used as a match; 
           (3) eligible grantees may be educational or nonprofit 
        educational training organizations; and 
           (4) grants-in-aid may be packaged with loans under 
        Minnesota Statutes, section 116L.06, subdivision 6. 
           The board shall, to the extent there are sufficient 
        applications, make grant awards to as many parts of the state as 
        possible.  Subject to the requirement for geographic 
        distribution of grants, preference shall be given to grant 
        applications that provide the most cost-effective training 
        proposals, that provide the best prospects for high-paying jobs 
        with high retention rates, or that are from more economically 
        distressed rural areas or communities. 
           Grantees must meet reporting and evaluation requirements 
        established by the board. 
           Sec. 8.  [136F.77] [EQUITY INVESTMENTS.] 
           Subdivision 1.  [POWERS OF BOARD.] The board may acquire an 
        interest in a product or a private business entity for the 
        purpose of developing and providing educational materials and 
        related programs or services to further the mission of the 
        Minnesota state colleges and universities and foster the 
        economic growth of the state.  The board may enter into joint 
        venture agreements with private corporations to develop 
        educational materials and related programs or services.  Any 
        proceeds from the investments or ventures are appropriated to 
        the board.  The state is not liable for any obligations or 
        liabilities that arise from investments under this section.  The 
        board must report annually by September 1 to the legislature 
        regarding its earnings from partnerships and the disposition of 
        those earnings.  
           Subd. 2.  [CONSULTATION REQUIRED.] Prior to entering into a 
        joint venture agreement under this section, the board shall 
        consult with appropriate exclusive bargaining representatives 
        and must address topics such as employee protections, 
        instructional services, information availability, and reporting 
        conflicts of interest. 
           Subd. 3.  [NO ABROGATION.] Nothing in this section shall 
        abrogate the provisions of sections 43A.047 and 136F.581. 
           Sec. 9.  [144.994] [PROFESSIONAL BOXING REGULATION.] 
           Subdivision 1.  [GENERALLY.] The commissioner of health 
        shall regulate professional boxing matches in Minnesota.  For 
        the purposes of this section, "professional boxing matches" 
        means boxing contests held in Minnesota between individuals for 
        financial compensation, but does not include boxing contests 
        regulated by an amateur sports organization. 
           Subd. 2.  [COMPLIANCE WITH FEDERAL LAW.] The commissioner 
        shall act as Minnesota's state boxing commission for the 
        purposes of the Professional Boxing Safety Act, United States 
        Code, title 15, sections 6301 to 6313, and shall ensure that 
        safety standards, registration procedures, and other regulations 
        required by federal law are sufficient to protect the health and 
        safety of boxers. 
           Subd. 3.  [LIMITATION.] The commissioner shall not impose 
        regulations substantially more stringent than necessary to 
        protect boxers' health and safety and to fully comply with 
        federal requirements. 
           EFFECTIVE DATE:  This section is effective July 1, 2001. 
           Sec. 10.  Minnesota Statutes 1998, section 181A.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FINES; PENALTY.] Any employer who hinders 
        or delays the department or its authorized representative in the 
        performance of its duties under sections 181A.01 to 181A.12 or 
        refuses to admit the commissioner or an authorized 
        representative to any place of employment or refuses to make 
        certificates or lists available as required by sections 181A.01 
        to 181A.12, or otherwise violates any provisions of sections 
        181A.01 to 181A.12 or any rules issued pursuant thereto shall be 
        assessed a fine to be paid to the commissioner for deposit in 
        the general fund.  The fine may be recovered in a civil action 
        in the name of the department brought in the district court of 
        the county where the violation is alleged to have occurred or 
        the district court where the commissioner has an office.  Fines 
        are in the amounts as follows: 
             (a) employment of minors under the age of 14           
                 (each employee)                                   $ 50 
                                                                 $  500
             (b) employment of minors under the age of 16               
                 during school hours while school is in session       
                 (each employee)                                     50 
                                                                    500
             (c) employment of minors under the age of 16               
                 before 7:00 a.m. (each employee)                    50 
                                                                    500
             (d) employment of minors under the age of 16               
                 after 9:00 p.m. (each employee)                     50 
                                                                    500
             (e) employment of a high school student under              
                 the age of 18 in violation of section 181A.04,
                 subdivision 6 (each employee)                      100
                                                                  1,000
             (f) employment of minors under the age of 16               
                 over eight hours a day (each employee)              50 
                                                                    500
             (g) employment of minors under the age of 16        
                 over 40 hours a week (each employee)                50 
                                                                    500
             (h) employment of minors under the age of 18        
                 in occupations hazardous or
                 detrimental to their well-being as defined  
                 by rule (each employee)                            100 
                                                                  1,000 
             (i) employment of minors under the age of 16     
                 in occupations hazardous or
                 detrimental to their well-being as defined 
                 by rule (each employee)                            100 
                                                                  1,000
             (j) minors under the age of 18 injured in        
                 hazardous employment (each employee)               500 
                                                                  5,000
             (k) minors employed without proof of age         
                 (each employee)                                     25 
                                                                    250
           An employer who refuses to make certificates or lists 
        available as required by sections 181A.01 to 181A.12 shall be 
        assessed a $500 fine. 
           EFFECTIVE DATE:  This section is effective October 1, 2000. 
           Sec. 11.  [182.6545] [RIGHTS OF NEXT OF KIN UPON DEATH.] 
           In the case of a death of an employee, the department shall 
        make reasonable efforts to locate the employee's next of kin and 
        shall mail to them copies of the following: 
           (1) citations and notification of penalty; 
           (2) notices of hearings; 
           (3) complaints and answers; 
           (4) settlement agreements; 
           (5) orders and decisions; and 
           (6) notices of appeals. 
           In addition, the next of kin shall have the right to 
        request a consultation with the department regarding citations 
        and notification of penalties issued as a result of the 
        investigation of the employee's death.  For the purposes of this 
        section, "next of kin" refers to the nearest proper relative as 
        that term is defined by section 253B.03, subdivision 6, 
        paragraph (c). 
           Sec. 12.  Minnesota Statutes 1998, section 182.661, 
        subdivision 1, is amended to read: 
           Subdivision 1.  If, after an inspection or investigation, 
        the commissioner issues a citation under section 182.66, the 
        commissioner shall notify the employer by certified mail of the 
        penalty, if any, proposed to be assessed under section 182.666 
        and that the employer has 20 calendar days within which to file 
        a notice of contest and certification of service, on a form 
        provided by the commissioner, indicating that the employer 
        wishes to contest the citation, type of violation, proposed 
        assessment of penalty, or the period of time fixed in the 
        citation given for correction of violation.  A copy of the 
        citation and the proposed assessment of penalty shall also be 
        mailed to the authorized employee representative and including, 
        in the case of the death of an employee, to the next of kin if 
        requested.  If within 20 calendar days from the receipt of the 
        penalty notice issued by the commissioner the employer fails to 
        file the notice of contest, and no notice of contest is filed by 
        any employee or authorized representative of employees under 
        subdivision 3 within such time, the citation and assessment, as 
        proposed, shall be deemed a final order of the commissioner and 
        not subject to review by any court or agency. 
           Sec. 13.  Minnesota Statutes 1998, section 182.666, 
        subdivision 2, is amended to read: 
           Subd. 2.  Any employer who has received a citation for a 
        serious violation of its duties under section 182.653, or any 
        standard, rule, or order adopted under the authority of the 
        commissioner as provided in this chapter, shall be assessed a 
        fine not to exceed $7,000 for each violation.  If the violation 
        causes or contributes to the cause of the death of an employee, 
        the employer shall be assessed a fine of up to $25,000. 
           Sec. 14.  Minnesota Statutes 1998, section 182.666, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  Notwithstanding any other provision of this 
        section, if any (1) serious, willful, or repeated violation 
        other than a violation of section 182.653, subdivision 2; or (2) 
        any failure to correct a violation pursuant to subdivision 4 
        causes or contributes to the death of an employee, the minimum 
        total nonnegotiable fine which shall be assessed for all 
        citations connected to the death of an employee is $50,000 if 
        there is a willful or repeated violation or $25,000 if there is 
        no willful or repeated violation. 
           Sec. 15.  Minnesota Statutes 1998, section 216C.41, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBILITY WINDOW.] Payments may be made under 
        this section only for electricity generated: 
           (a) from a qualified hydroelectric facility that is 
        operational and generating electricity before January 1 December 
        31, 2001; or 
           (b) from a qualified wind energy conversion facility that 
        is operational and generating electricity before January 1, 2005.
           Sec. 16.  [268.028] [ALIEN LABOR CERTIFICATION; PERFORMANCE 
        STANDARDS.] 
           The department of economic security shall have as a goal to 
        process completed applications for certification for permanent 
        alien laborers within 60 days of receipt of the completed 
        application. 
           Sec. 17.  Minnesota Statutes 1999 Supplement, section 
        268.085, subdivision 4, is amended to read: 
           Subd. 4.  [SOCIAL SECURITY BENEFITS.] (a) Any applicant 
        aged 62 or over shall be required to state when filing an 
        application for benefits and when filing continued requests for 
        benefits whether the applicant is receiving, has filed for, or 
        intends to file for, primary social security old age or 
        disability benefits for any week during the benefit year. 
           (b) There shall be deducted from an applicant's weekly 
        benefit amount 50 percent of the weekly equivalent of the 
        primary social security old age or disability benefit the 
        applicant has received, has filed for, or intends to file for, 
        with respect to that week. 
           (c) Notwithstanding paragraph (b), an applicant shall be 
        ineligible for benefits for any week with respect to which the 
        applicant is receiving, has received, or has filed for primary 
        social security disability benefits. 
        This paragraph shall not apply if the Social Security 
        Administration approved the collecting of primary social 
        security disability benefits each month the applicant was 
        employed during the base period.  
           (d) Information from the Social Security Administration 
        shall be considered conclusive, absent specific evidence showing 
        that the information was erroneous. 
           (e) Any applicant who receives primary social security old 
        age or disability benefits for periods that the applicant has 
        been paid reemployment compensation benefits shall be considered 
        overpaid those reemployment compensation benefits under section 
        268.18, subdivision 1. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment and is retroactive to August 1, 1999. 
           Sec. 18.  Minnesota Statutes 1998, section 268.362, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GRANT APPLICATIONS; AWARDS.] Interested eligible 
        organizations must apply to the commissioner for the grants.  
        The advisory committee must review the applications and provide 
        to the commissioner a list of recommended eligible organizations 
        that the advisory committee determines meet the requirements for 
        receiving a grant.  The total grant award for any program may 
        not exceed $80,000 $150,000 per year.  In awarding grants, the 
        advisory committee and the commissioner must give priority to: 
           (1) continuing and expanding effective programs by 
        providing grant money to organizations that are operating or 
        have operated a successful program that meets the program 
        purposes under section 268.364; and 
           (2) distributing programs throughout the state through 
        start-up grants for programs in areas that are not served by an 
        existing program. 
           To receive a grant under this section, the eligible 
        organization must match the grant money with at least an equal 
        amount of nonstate money.  The commissioner must verify that the 
        eligible organization has matched the grant money.  Nothing in 
        this subdivision shall prevent an eligible organization from 
        applying for and receiving grants for more than one program.  A 
        grant received by an eligible organization from the federal 
        Youthbuild Project under United States Code, title 42, section 
        5091, is nonstate money and may be used to meet the state match 
        requirement.  State grant money awarded under this section may 
        be used by grantee organizations for match requirements of a 
        federal Youthbuild Project. 
           Sec. 19.  Minnesota Statutes 1999 Supplement, section 
        268.98, subdivision 3, is amended to read: 
           Subd. 3.  [COST LIMITATIONS.] (a) For purposes of sections 
        268.9781 and 268.9782, funds allocated to a grantee are subject 
        to the following limitations: 
           (1) a maximum of 15 percent for administration in a worker 
        adjustment services plan and ten percent in a dislocation event 
        services grant; 
           (2) a minimum of 50 percent for provision of training 
        assistance; 
           (3) no more than ten percent statewide may be allocated 
        annually a maximum of 15 percent may be allocated for support 
        services, as defined in section 268.975, subdivision 13; except, 
        that if the commissioner finds it essential for a specific grant 
        or plan the maximum that may be allocated for support services 
        is 20 percent; and 
           (4) the balance used for provision of basic readjustment 
        assistance. 
           (b) A waiver of the cost limitation on providing training 
        assistance may be requested.  The waiver may not permit less 
        than 30 percent of the funds be spent on training assistance. 
           (c) The commissioner shall prescribe the form and manner 
        for submission of an application for a waiver under paragraph 
        (b).  Criteria for granting a waiver shall be established by the 
        commissioner in consultation with the workforce development 
        council. 
           Sec. 20.  Minnesota Statutes 1999 Supplement, section 
        326.105, is amended to read: 
           326.105 [FEES.] 
           The fee for licensure or renewal of licensure as an 
        architect, professional engineer, land surveyor, landscape 
        architect, or geoscience professional is $104 $120 per biennium. 
        The fee for certification as a certified interior designer or 
        for renewal of the certificate is $104 $120 per biennium.  The 
        fee for an architect applying for original certification as a 
        certified interior designer is $50 per biennium.  The initial 
        license or certification fee for all professions is $104 $120.  
        The renewal fee shall be paid biennially on or before June 30 of 
        each even-numbered year.  The renewal fee, when paid by mail, is 
        not timely paid unless it is postmarked on or before June 30 of 
        each even-numbered year.  The application fee is $25 for 
        in-training applicants and $75 for professional license 
        applicants. 
           The fee for monitoring licensing examinations for 
        applicants is $25, payable by the applicant. 
           Sec. 21.  [326.2441] [INSPECTION FEE SCHEDULE.] 
           Subdivision 1.  [SCHEDULE.] State electrical inspection 
        fees shall be paid according to subdivisions 2 to 13. 
           Subd. 2.  [FEE FOR EACH SEPARATE INSPECTION.] The minimum 
        fee for each separate inspection of an installation, 
        replacement, alteration, or repair is $20. 
           Subd. 3.  [FEE FOR SERVICES, GENERATORS, OTHER POWER SUPPLY 
        SOURCES, OR FEEDERS TO SEPARATE STRUCTURES.] The inspection fee 
        for the installation, addition, alteration, or repair of each 
        service, change of service, temporary service, generator, other 
        power supply source, or feeder to a separate structure is: 
           (1) 0 ampere to and including 400 ampere capacity, $25; 
           (2) 401 ampere to and including 800 ampere capacity, $50; 
        and 
           (3) ampere capacity above 800, $75. 
           Where multiple disconnects are grouped at a single location 
        and are supplied by a single set of supply conductors the 
        cumulative rating of the overcurrent devices shall be used to 
        determine the supply ampere capacity. 
           Subd. 4.  [FEE FOR CIRCUITS, FEEDERS, FEEDER TAPS, OR SETS 
        OF TRANSFORMER SECONDARY CONDUCTORS.] The inspection fee for the 
        installation, addition, alteration, or repair of each circuit, 
        feeder, feeder tap, or set of transformer secondary conductors, 
        including the equipment served, is: 
           (1) 0 ampere to and including 200 ampere capacity, $5; and 
           (2) ampere capacity above 200, $10. 
           Subd. 5.  [LIMITATIONS TO FEES OF SUBDIVISIONS 3 AND 
        4.] (a) The fee for a one-family dwelling and each dwelling unit 
        of a two-family dwelling with a supply of up to 500 amperes 
        where a combination of ten or more sources of supply, feeders, 
        or circuits are installed, added, altered, repaired, or extended 
        is $80.  This fee applies to each separate installation for new 
        dwellings and additions, alterations, or repairs to existing 
        dwellings and includes not more than two inspections.  The fee 
        for additional inspections or other installations is that 
        specified in subdivisions 2 to 4.  The installer may submit fees 
        for additional inspections when filing the request for 
        electrical inspection. 
           (b) The fee for each dwelling unit of a multifamily 
        dwelling with three to 12 dwelling units is $50 and the fee for 
        each additional dwelling unit is $25.  These fees include only 
        inspection of the wiring within individual dwelling units and 
        the final feeder to that unit.  This limitation is subject to 
        the following conditions: 
           (1) the multifamily dwelling is provided with common 
        service equipment and each dwelling unit is supplied by a 
        separate feeder.  The fee for multifamily dwelling services or 
        other power source supplies and all other circuits is that 
        specified in subdivisions 2 to 4; and 
           (2) this limitation applies only to new installations for 
        multifamily dwellings where the majority of the individual 
        dwelling units are available for inspection during each 
        inspection trip. 
           (c) A separate request for electrical inspection form must 
        be filed for each dwelling unit that is supplied with an 
        individual set of service entrance conductors.  These fees are 
        the one-family dwelling rate specified in paragraph (a). 
           Subd. 6.  [ADDITIONS TO FEES OF SUBDIVISIONS 3 TO 5.] (a) 
        The fee for the electrical supply for each manufactured home 
        park lot is $25.  This fee includes the service or feeder 
        conductors up to and including the service equipment or 
        disconnecting means.  The fee for feeders and circuits that 
        extend from the service or disconnecting means is that specified 
        in subdivision 4. 
           (b) The fee for each recreational vehicle site electrical 
        supply equipment is $5.  The fee for recreational vehicle park 
        services, feeders, and circuits is that specified in 
        subdivisions 3 and 4. 
           (c) The fee for each street, parking lot, or outdoor area 
        lighting standard is $1, and the fee for each traffic signal 
        standard is $5.  Circuits originating within the standard or 
        traffic signal controller shall not be used when computing the 
        fee. 
           (d) The fee for transformers for light, heat, and power is 
        $10 for transformers rated up to ten kilovolt-amperes and $20 
        for transformers rated in excess of ten kilovolt-amperes. 
           (e) The fee for transformers and electronic power supplies 
        for electric signs and outline lighting is $5 per unit. 
           (f) The fee for alarm, communication, remote control, and 
        signaling circuits or systems, and circuits of less than 50 
        volts, is 50 cents for each system device or apparatus. 
           (g) The fee for each separate inspection of the bonding for 
        a swimming pool, spa, fountain, an equipotential plane for an 
        agricultural confinement area, or similar installation shall be 
        $20.  Bonding conductors and connections require an inspection 
        before being concealed. 
           (h) The fee for all wiring installed on center pivot 
        irrigation booms is $40. 
           (i) The fee for retrofit modifications to existing lighting 
        fixtures is 25 cents per lighting fixture. 
           Subd. 7.  [INVESTIGATION FEES:  WORK WITHOUT A REQUEST FOR 
        ELECTRICAL INSPECTION.] (a) Whenever any work for which a 
        request for electrical inspection is required by the board has 
        begun without the request for electrical inspection form being 
        filed with the board, a special investigation shall be made 
        before a request for electrical inspection form is accepted by 
        the board. 
           (b) An investigation fee, in addition to the full fee 
        required by subdivisions 1 to 6, shall be paid before an 
        inspection is made.  The investigation fee is two times the 
        hourly rate specified in subdivision 10 or the inspection fee 
        required by subdivisions 1 to 6, whichever is greater, not to 
        exceed $1,000.  The payment of the investigation fee does not 
        exempt any person from compliance with all other provisions of 
        the board rules or statutes nor from any penalty prescribed by 
        law. 
           Subd. 8.  [REINSPECTION FEE.] When reinspection is 
        necessary to determine whether unsafe conditions have been 
        corrected and the conditions are not the subject of an appeal 
        pending before the board or any court, a reinspection fee of $20 
        may be assessed in writing by the inspector. 
           Subd. 9.  [SUPPLEMENTAL FEE.] When inspections scheduled by 
        the installer are preempted, obstructed, prevented, or otherwise 
        not able to be completed as scheduled due to circumstances 
        beyond the control of the inspector, a supplemental inspection 
        fee of $20 may be assessed in writing by the inspector. 
           Subd. 10.  [SPECIAL INSPECTION.] For inspections not 
        covered in this section, or for requested special inspections or 
        services, the fee shall be $30 per hour, including travel time, 
        plus 31 cents per mile traveled, plus the reasonable cost of 
        equipment or material consumed.  This provision is applicable to 
        inspection of empty conduits and other jobs as may be determined 
        by the board.  This fee may also be assessed when installations 
        are not accessible by roadway and require alternate forms of 
        transportation.  
           Subd. 11.  [INSPECTION OF TRANSITORY PROJECTS.] (a) For 
        inspection of transitory projects including, but not limited to, 
        festivals, fairs, carnivals, circuses, shows, production sites, 
        and portable road construction plants, the inspection procedures 
        and fees are as specified in paragraphs (b) to (i). 
           (b) The fee for inspection of each generator or other 
        source of supply is that specified in subdivision 3.  A like fee 
        is required at each engagement or setup. 
           (c) In addition to the fee for generators or other sources 
        of supply, there must be an inspection of all installed feeders, 
        circuits, and equipment at each engagement or setup at the 
        hourly rate specified in subdivision 10, with a two-hour minimum.
           (d) An owner, operator, or appointed representative of a 
        transitory enterprise including, but not limited to, festivals, 
        fairs, carnivals, circuses, production companies, shows, 
        portable road construction plants, and similar enterprises shall 
        notify the board of its itinerary or schedule and make 
        application for initial inspection a minimum of 14 days before 
        its first engagement or setup.  An owner, operator, or appointed 
        representative of a transitory enterprise who fails to notify 
        the board 14 days before its first engagement or setup may be 
        subject to the investigation fees specified in subdivision 7.  
        The owner, operator, or appointed representative shall request 
        inspection and pay the inspection fee for each subsequent 
        engagement or setup at the time of the initial inspection.  For 
        subsequent engagements or setups not listed on the itinerary or 
        schedule submitted to the board and where the board is not 
        notified at least 48 hours in advance, a charge of $100 may be 
        made in addition to all required fees. 
           (e) Amusement rides, devices, concessions, attractions, or 
        other units must be inspected at their first appearance of the 
        year.  The inspection fee is $20 per unit with a supply of up to 
        60 amperes and $30 per unit with a supply above 60 amperes. 
           (f) An additional fee at the hourly rate specified in 
        subdivision 10 must be charged for additional time spent by each 
        inspector if equipment is not ready or available for inspection 
        at the time and date specified on the application for initial 
        inspection or the request for electrical inspection form. 
           (g) In addition to the fees specified in paragraphs (a) and 
        (b), a fee of two hours at the hourly rate specified in 
        subdivision 10 must be charged for inspections required to be 
        performed on Saturdays, Sundays, holidays, or after regular 
        business hours. 
           (h) The fee for reinspection of corrections or supplemental 
        inspections where an additional trip is necessary may be 
        assessed as specified in subdivision 8. 
           (i) The board may retain the inspection fee when an owner, 
        operator, or appointed representative of a transitory enterprise 
        fails to notify the board at least 48 hours in advance of a 
        scheduled inspection that is canceled. 
           Subd. 12.  [HANDLING FEE.] The handling fee to pay the cost 
        of printing and handling of the form requesting an inspection is 
        $1. 
           Subd. 13.  [NATIONAL ELECTRICAL CODE USED FOR 
        INTERPRETATION OF PROVISIONS.] For purposes of interpretation of 
        this section and Minnesota Rules, chapter 3800, the most 
        recently adopted edition of the National Electrical Code shall 
        be prima facie evidence of the definitions, interpretations, and 
        scope of words and terms used.  
           Sec. 22.  Minnesota Statutes 1998, section 345.31, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [MONEY ORDER.] "Money order" includes an express 
        money order and a personal money order, on which the remitter is 
        the purchaser.  The term does not include a bank order or any 
        other instrument sold by a financial organization if the seller 
        has obtained the name and address of the payee. 
           EFFECTIVE DATE:  This section is effective July 1, 2001. 
           Sec. 23.  [345.321] [DORMANCY CHARGE FOR MONEY ORDERS.] 
           Notwithstanding any law to the contrary, a holder may 
        annually deduct, from a money order presumed abandoned, a charge 
        imposed by reason of the owner's failure to claim the property 
        within a specified time.  The holder may deduct the charge only 
        if:  (1) there is a valid and enforceable written contract 
        between the holder and the owner under which the holder may 
        impose the charge; (2) the holder regularly imposes the charge; 
        and (3) the charge is not regularly reversed or otherwise 
        canceled.  The total amount of the deduction is limited to an 
        amount that is not unconscionable. 
           EFFECTIVE DATE:  This section is effective July 1, 2001. 
           Sec. 24.  Minnesota Statutes 1998, section 345.39, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PRESUMED ABANDONMENT.] All intangible 
        personal property, not otherwise covered by sections 345.31 to 
        345.60, including any income or increment thereon, but excluding 
        any charges that may lawfully be withheld, that is held or owing 
        in this state in the ordinary course of the holder's business 
        and has remained unclaimed by the owner for more than three 
        years after it became payable or distributable is presumed 
        abandoned.  Property covered by this section includes, but is 
        not limited to:  (a) unclaimed worker's compensation; (b) 
        deposits or payments for repair or purchase of goods or 
        services; (c) credit checks or memos, or customer overpayments; 
        (d) unidentified remittances, unrefunded overcharges; (e) unpaid 
        claims, unpaid accounts payable or unpaid commissions; (f) 
        unpaid mineral proceeds, royalties or vendor checks; and (g) 
        credit balances, accounts receivable and miscellaneous 
        outstanding checks.  This section does not include money orders. 
        "Intangible property" does not include gift certificates, gift 
        cards, or layaway accounts issued or maintained by any person in 
        the business of selling tangible property or services at retail 
        and such items shall not be subject to this section. 
           EFFECTIVE DATE:  This section is effective July 1, 2001. 
           Sec. 25.  Laws 1999, chapter 223, article 2, section 81, as 
        amended by Laws 1999, chapter 249, section 12, is amended to 
        read: 
           Sec. 81.  [EFFECTIVE DATES.] 
           Section 48 is effective March 1, 2000. 
           Sections 59, 61, 62, 64, 65, and 79 are effective the day 
        following final enactment.  
           Section 67 is effective June 30, 1999. 
           Section 80, paragraph (a), is effective July 1, 1999. 
           Section 80, paragraphs paragraph (b) and (c), are is 
        effective July 1, 2000. 
           Section 80, paragraph (c), is effective July 1, 2001. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 26.  [ASSUMPTION OF RESPONSIBILITIES BY COMMISSIONER 
        OF HEALTH.] 
           The commissioner of health shall consult with appropriate 
        knowledgeable individuals on an ongoing basis regarding the 
        development and enforcement of boxing regulations.  
        Responsibility for the regulation of professional boxing is 
        transferred to the commissioner of health as of July 1, 2001, 
        pursuant to Minnesota Statutes, section 15.039, except that 
        Minnesota Statutes, section 15.039, subdivision 7, shall not 
        apply to this transfer of responsibilities. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 27.  [INFORMATION TO BE PROVIDED.] 
           The commissioner of labor and industry shall by September 
        1, 2000, complete a diligent and concerted effort to provide an 
        informational brochure to every employer in Minnesota who is 
        subject to the provisions of Minnesota Statutes, chapter 181A.  
        The brochure shall describe the requirements of Minnesota 
        Statutes, chapter 181A, shall describe the effects of section 
        10, and shall provide a telephone number that employers may call 
        for additional information regarding compliance with Minnesota 
        Statutes, chapter 181A. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 28.  [INSTRUCTION TO REVISOR.] 
           The revisor shall change references in Minnesota Rules from 
        Minnesota Rules, part 3800.3810, to Minnesota Statutes, section 
        326.2441. 
           Sec. 29.  [REPEALER.] 
           Minnesota Rules, part 3800.3810, is repealed. 

                                   ARTICLE 3
                ENVIRONMENT, NATURAL RESOURCES, AND AGRICULTURE 
        Section 1.  [APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or any other fund named, to 
        the agencies and for the purposes specified in this article, to 
        be available for the fiscal years indicated for each purpose.  
        The figures "2000" and "2001" mean that the appropriation or 
        appropriations listed under them are available for the fiscal 
        year ending June 30, 2000, or June 30, 2001, respectively, and 
        if an earlier appropriation was made for that purpose for that 
        year, the appropriation in this article is added to it.  
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2000         2001 
        Sec. 2.  POLLUTION CONTROL AGENCY        307,000        -0- 
        $306,000 is to administer the 
        wastewater infrastructure fund.  This 
        is a one-time appropriation and is 
        available until June 30, 2001. 
        The agency must allocate $104,000 of 
        the appropriation in Laws 1999, chapter 
        231, section 2, for WIF construction 
        program administration. 
        $1,000 is appropriated from the general 
        fund in fiscal year 2000 for the air 
        quality permitting process required to 
        allow an existing resource recovery 
        facility in Hennepin county to operate 
        at its maximum yearly capacity as 
        provided in section 30.  This is a 
        one-time appropriation and is available 
        until June 30, 2001.  This amount shall 
        be reimbursed by the applicant for the 
        permit. 
        $865,000 from the balance in the 
        environmental fund shall be canceled to 
        the general fund by June 30, 2001. 
        Sec. 3.  BOARD OF WATER     
        AND SOIL RESOURCES                      2,650,000       400,000
        $400,000 in fiscal year 2001 is for 
        professional and technical services to 
        replace wetlands under Minnesota 
        Statutes, section 103G.222, subdivision 
        1.  This is a one-time appropriation. 
        $2,650,000 in fiscal year 2000 is for 
        the purposes of sections 40 to 43.  
        This is a one-time appropriation and 
        remains available until expended.  
        Administrative costs may not exceed ten 
        percent of the appropriation. 
        Sec. 4.  NATURAL RESOURCES              5,414,000        -0-
        $3,955,000 in fiscal year 2000 is for 
        the settlement of legal costs incurred 
        by the Mille Lacs Band, St. Croix Band, 
        Bad River Band, Red Cliff Band, Lac du 
        Flambeau Band, Sokaogon Chippewa 
        Community, and the Lac Courte Oreilles 
        Band related to the 1837 Treaty 
        litigation. 
        The money necessary for the interest 
        payment on the settlement of legal 
        costs in the 1837 Treaty litigation is 
        appropriated in fiscal year 2000.  The 
        amount of the interest payment shall be 
        determined by applying an interest 
        amount of $614.30 for each day 
        beginning December 10, 1999, through 
        the day of payment of the legal costs. 
        $1,459,000 in fiscal year 2000 is for 
        grants to Lake, Cook, and St. Louis 
        counties for emergency communications 
        equipment, emergency response 
        equipment, and emergency planning and 
        training to respond to a major 
        wildfire.  Of this amount, $227,000 is 
        for a grant to Lake county, $430,000 is 
        for a grant to Cook county, and 
        $802,000 is for a grant to St. Louis 
        county.  St. Louis county must use a 
        portion of the grant to purchase a NOAA 
        warning system that can be used by all 
        of the counties receiving grants under 
        this section.  This appropriation is 
        available until June 30, 2001. 
        The commissioner may use up to 50 
        percent of a snowmobile maintenance and 
        grooming grant under Minnesota 
        Statutes, section 84.83, that was 
        available as of December 31, 1999, to 
        reimburse the intended recipient for 
        the actual cost of snowmobile trail 
        grooming equipment.  The costs must be 
        incurred in fiscal year 2000 and 
        recipients seeking reimbursement under 
        this paragraph must provide acceptable 
        documentation of the costs to the 
        commissioner.  All applications for 
        reimbursement under this paragraph must 
        be received no later than September 1, 
        2000. 
        Sec. 5.  AGRICULTURE                      870,000       869,000
        $120,000 in fiscal year 2000 and 
        $374,000 in fiscal year 2001 are for 
        expansion of the state meat inspection 
        program.  If the appropriation for 
        either year is insufficient, the 
        appropriation for the other year is 
        available. 
        $200,000 in fiscal year 2001 is for 
        grants to one or more cooperative 
        associations organized under Minnesota 
        Statutes, chapter 308A, primarily for 
        the purpose of facilitating the 
        production and marketing of short 
        rotation woody crops.  The grants must 
        be matched by $1 of nonstate money for 
        each dollar.  This is a one-time 
        appropriation and remains available 
        until expended. 
        $150,000 in fiscal year 2001 is for a 
        grant to the Center for Farm Financial 
        Management at the University of 
        Minnesota for purposes of a 
        comprehensive effort to develop 
        software and training materials to help 
        farmers improve their profitability 
        through sophisticated business 
        planning.  The software and training 
        will complement existing FINPACK farm 
        management tools.  No later than March 
        1, 2001, the center must report to the 
        agriculture policy and finance 
        committees of the senate and the house 
        of representatives on the software 
        development program.  This is a 
        one-time appropriation and is available 
        until March 31, 2001. 
        $300,000 in fiscal year 2000 is to 
        establish an agricultural water quality 
        and quantity management, research, 
        demonstration, and education program.  
        Of this appropriation, $150,000 is for 
        projects at the Lamberton site and 
        $150,000 is for projects at the Waseca 
        site.  The commissioner may contract 
        with the University of Minnesota or 
        other parties for the implementation of 
        parts of the program.  This 
        appropriation is available until spent 
        and is a one-time appropriation. 
        $150,000 in fiscal year 2000 is for the 
        farm advocates program.  This is a 
        one-time appropriation and is available 
        until June 30, 2001. 
        $170,000 in fiscal year 2001 is to 
        expand the concept of the Minnesota 
        grown pilot program under Laws 1998, 
        chapter 401, section 6.  This is a 
        one-time appropriation. 
        $300,000 in fiscal year 2000 is for 
        grants to organizations participating 
        in the farm wrap network and the rural 
        help network.  The grants may be used 
        for outreach services, legal and 
        accounting services, and informal 
        mediation support for farmers.  This is 
        a one-time appropriation and is 
        available until June 30, 2001. 
        The appropriation for fiscal year 2001 
        in Laws 1999, chapter 231, section 11, 
        subdivision 2, for the dairy producers 
        board is canceled. 
        Sec. 6.  BOARD OF ANIMAL HEALTH          245,000         -0- 
        $245,000 is for continued efforts to 
        control pseudorabies in swine.  This 
        appropriation may be used to cover the 
        costs of pseudorabies monitoring, 
        vaccines, blood tests, and laboratory 
        fees.  This is a one-time 
        appropriation, is in addition to the 
        appropriation in Laws 1999, chapter 45, 
        section 1, and is available until June 
        30, 2001. 
        Sec. 7.  MINNESOTA RESOURCES 
        The availability of the appropriation 
        for the following project is extended 
        to June 30, 2002:  Laws 1997, chapter 
        216, section 15, subdivision 4, 
        paragraph (c), clause (3), local 
        initiatives grants program.  $250,000 
        is to provide matching funds for an 
        ISTEA grant and to provide acquisition 
        and engineering costs for a proposed 
        trail between the city of Pelican 
        Rapids and Maplewood state park. 
        The availability of the appropriation 
        for the following project is extended 
        to June 30, 2001:  Laws 1997, chapter 
        216, section 15, subdivision 4, 
        paragraph (b), metropolitan regional 
        park system, for the portion related to 
        Hyland-Bush-Anderson Lake Park Reserve 
        development. 
           Sec. 8.  Minnesota Statutes 1998, section 17.4988, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AQUATIC FARMING LICENSE.] (a) The annual fee for 
        an aquatic farming license is $275 $70. 
           (b) The aquatic farming license may contain endorsements 
        for the rights and privileges of the following licenses under 
        the game and fish laws.  The endorsement must be made upon 
        payment of the license fee prescribed in section 97A.475 for the 
        following licenses: 
           (1) minnow dealer license; 
           (2) minnow retailer license for sale of minnows as bait; 
           (3) minnow exporting license; 
           (4) aquatic farm vehicle endorsement, which includes a 
        minnow dealer vehicle license, a minnow retailer vehicle 
        license, an exporting minnow vehicle license, and a fish vendor 
        license; 
           (5) sucker egg taking license; and 
           (6) game fish packers license. 
           Sec. 9.  Minnesota Statutes 1998, section 17A.03, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LIVESTOCK.] "Livestock" means cattle, sheep, 
        swine, horses intended for slaughter, mules, farmed cervidae, as 
        defined in section 17.451, subdivision 2, llamas, as defined in 
        section 17.455, subdivision 2, ratitae, as defined in section 
        17.453, subdivision 3, buffalo, and goats. 
           Sec. 10.  Minnesota Statutes 1998, section 18E.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 
        a person that is eligible for reimbursement or payment under 
        subdivisions 1, 2, and 3 from the agricultural chemical response 
        and reimbursement account for:  
           (1) 90 percent of the total reasonable and necessary 
        corrective action costs greater than $1,000 and less than or 
        equal to $100,000; and 
           (2) 100 percent of the total reasonable and necessary 
        corrective action costs greater than $100,000 but less than or 
        equal to $200,000; 
           (3) 80 percent of the total reasonable and necessary 
        corrective action costs greater than $200,000 but less than or 
        equal to $300,000; and 
           (4) 60 percent of the total reasonable and necessary 
        corrective action costs greater than $300,000 but less than or 
        equal to $350,000.  
           (b) A reimbursement or payment may not be made until the 
        board has determined that the costs are reasonable and are for a 
        reimbursement of the costs that were actually incurred. 
           (c) The board may make periodic payments or reimbursements 
        as corrective action costs are incurred upon receipt of invoices 
        for the corrective action costs. 
           (d) Money in the agricultural chemical response and 
        reimbursement account is appropriated to the commissioner to 
        make payments and reimbursements directed by the board under 
        this subdivision.  
           (e) The board may not make reimbursement greater than the 
        maximum allowed under paragraph (a) for all incidents on a 
        single site which: 
           (1) were not reported at the time of release but were 
        discovered and reported after July 1, 1989; and 
           (2) may have occurred prior to July 1, 1989, as determined 
        by the commissioner. 
           (f) The board may only reimburse an eligible person for 
        separate incidents within a single site if the commissioner 
        determines that each incident is completely separate and 
        distinct in respect of location within the single site or time 
        of occurrence. 
           Sec. 11.  Minnesota Statutes 1998, section 41A.09, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [PAYMENTS.] (a) The commissioner of agriculture 
        shall make cash payments to producers of ethanol, anhydrous 
        alcohol, and wet alcohol located in the state.  These payments 
        shall apply only to ethanol, anhydrous alcohol, and wet alcohol 
        fermented in the state and produced at plants that have begun 
        production by June 30, 2000.  For the purpose of this 
        subdivision, an entity that holds a controlling interest in more 
        than one ethanol plant is considered a single producer.  The 
        amount of the payment for each producer's annual production is: 
           (1) except as provided in paragraph (b), for each gallon of 
        ethanol or anhydrous alcohol produced on or before June 30, 
        2000, or ten years after the start of production, whichever is 
        later, 20 cents per gallon; and 
           (2) for each gallon produced of wet alcohol on or before 
        June 30, 2000, or ten years after the start of production, 
        whichever is later, a payment in cents per gallon calculated by 
        the formula "alcohol purity in percent divided by five," and 
        rounded to the nearest cent per gallon, but not less than 11 
        cents per gallon. 
           The producer payments for anhydrous alcohol and wet alcohol 
        under this section may be paid to either the original producer 
        of anhydrous alcohol or wet alcohol or the secondary processor, 
        at the option of the original producer, but not to both. 
           No payments shall be made for production that occurs after 
        June 30, 2010. 
           (b) If the level of production at an ethanol plant 
        increases due to an increase in the production capacity of the 
        plant and the increased production begins by June 30, 2000, the 
        payment under paragraph (a), clause (1), applies to the 
        additional increment of production until ten years after the 
        increased production began.  Once a plant's production capacity 
        reaches 15,000,000 gallons per year, no additional increment 
        will qualify for the payment. 
           (c) The commissioner shall make payments to producers of 
        ethanol or wet alcohol in the amount of 1.5 cents for each 
        kilowatt hour of electricity generated using closed-loop biomass 
        in a cogeneration facility at an ethanol plant located in the 
        state.  Payments under this paragraph shall be made only for 
        electricity generated at cogeneration facilities that begin 
        operation by June 30, 2000.  The payments apply to electricity 
        generated on or before the date ten years after the producer 
        first qualifies for payment under this paragraph.  Total 
        payments under this paragraph in any fiscal year may not exceed 
        $750,000.  For the purposes of this paragraph: 
           (1) "closed-loop biomass" means any organic material from a 
        plant that is planted for the purpose of being used to generate 
        electricity or for multiple purposes that include being used to 
        generate electricity; and 
           (2) "cogeneration" means the combined generation of: 
           (i) electrical or mechanical power; and 
           (ii) steam or forms of useful energy, such as heat, that 
        are used for industrial, commercial, heating, or cooling 
        purposes. 
           (d) Except for new production capacity approved under 
        paragraph (i), clause (1), the total Payments under paragraphs 
        (a) and (b) to all producers may not 
        exceed $34,000,000 $37,000,000 in a fiscal year.  Total payments 
        under paragraphs (a) and (b) to a producer in a fiscal year may 
        not exceed $3,000,000. 
           (e) By the last day of October, January, April, and July, 
        each producer shall file a claim for payment for ethanol, 
        anhydrous alcohol, and wet alcohol production during the 
        preceding three calendar months.  A producer with more than one 
        plant shall file a separate claim for each plant.  A producer 
        shall file a separate claim for the original production capacity 
        of each plant and for each additional increment of production 
        that qualifies under paragraph (b).  A producer that files a 
        claim under this subdivision shall include a statement of the 
        producer's total ethanol, anhydrous alcohol, and wet alcohol 
        production in Minnesota during the quarter covered by the claim, 
        including anhydrous alcohol and wet alcohol produced or received 
        from an outside source.  A producer shall file a separate claim 
        for any amount claimed under paragraph (c).  For each claim and 
        statement of total ethanol, anhydrous alcohol, and wet alcohol 
        production filed under this subdivision, the volume of ethanol, 
        anhydrous alcohol, and wet alcohol production or amounts of 
        electricity generated using closed-loop biomass must be examined 
        by an independent certified public accountant in accordance with 
        standards established by the American Institute of Certified 
        Public Accountants. 
           (f) Payments shall be made November 15, February 15, May 
        15, and August 15.  A separate payment shall be made for each 
        claim filed.  Except as provided in paragraph (j), the total 
        quarterly payment to a producer under this paragraph, excluding 
        amounts paid under paragraph (c), may not exceed 
        $750,000.  Except for new production capacity approved under 
        paragraph (i), clause (1), if the total amount for which all 
        other producers are eligible in a quarter under paragraphs (a) 
        and (b) exceeds $8,500,000, the commissioner shall make payments 
        for production capacity that is subject to this restriction in 
        the order in which the portion of production capacity covered by 
        each claim went into production.  
           (g) If the total amount for which all producers are 
        eligible in a quarter under paragraph (c) exceeds the amount 
        available for payments, the commissioner shall make payments in 
        the order in which the plants covered by the claims began 
        generating electricity using closed-loop biomass. 
           (h) After July 1, 1997, new production capacity is only 
        eligible for payment under this subdivision if the commissioner 
        receives: 
           (1) an application for approval of the new production 
        capacity; 
           (2) an appropriate letter of long-term financial commitment 
        for construction of the new production capacity; and 
           (3) copies of all necessary permits for construction of the 
        new production capacity. 
           The commissioner may approve new production capacity based 
        on the order in which the applications are received.  
           (i) After April 22, 1998, the commissioner may only 
        approve:  (1) up to 12,000,000 gallons of new production 
        capacity at one plant that has not previously received approval 
        or payment for any production capacity; or (2) new production 
        capacity at existing plants not to exceed planned expansions 
        reported to the commissioner by February 1997.  The commissioner 
        may not approve any new production capacity after July 1, 1998, 
        except that a producer with an approved production capacity of 
        at least 12,000,000 gallons per year but less than 15,000,000 
        gallons per year prior to July 1, 1998, is approved for 
        15,000,000 gallons of production capacity.  
           (j) Notwithstanding the quarterly payment limits of 
        paragraph (f), the commissioner shall make an additional payment 
        in the eighth quarter of each fiscal biennium to ethanol 
        producers for the lesser of:  (1) 20 cents per gallon of 
        production in the eighth quarter of the biennium that is greater 
        than 3,750,000 gallons; or (2) the total amount of payments lost 
        during the first seven quarters of the biennium due to plant 
        outages, repair, or major maintenance.  Total payments to an 
        ethanol producer in a fiscal biennium, including any payment 
        under this paragraph, must not exceed the total amount the 
        producer is eligible to receive based on the producer's approved 
        production capacity.  The provisions of this paragraph apply 
        only to production losses that occur in quarters beginning after 
        December 31, 1999. 
           (k) For the purposes of this subdivision "new production 
        capacity" means annual ethanol production capacity that was not 
        allowed under a permit issued by the pollution control agency 
        prior to July 1, 1997, or for which construction did not begin 
        prior to July 1, 1997. 
           Sec. 12.  Minnesota Statutes 1998, section 41B.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY GENERALLY.] To be eligible for 
        a program in sections 41B.01 to 41B.23: 
           (1) a borrower must be a resident of Minnesota or a 
        domestic family farm corporation, as defined in section 500.24, 
        subdivision 2; and 
           (2) the borrower or one of the borrowers must be the 
        principal operator of the farm or, for a prospective homestead 
        redemption borrower, must have at one time been the principal 
        operator of a farm; and 
           (3) the borrower must not receive assistance under sections 
        41B.01 to 41B.23 exceeding an aggregate of $100,000 in loans 
        during the borrower's lifetime. 
           Sec. 13.  Minnesota Statutes 1998, section 41B.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition 
        to the eligibility requirements of subdivision 1, a prospective 
        borrower for a restructured loan must:  
           (1) have received at least 50 percent of average annual 
        gross income from farming for the past three years or, for 
        homesteaded property, received at least 40 percent of average 
        gross income from farming in the past three years, and farming 
        must be the principal occupation of the borrower; 
           (2) have a debt-to-asset ratio equal to or greater than 50 
        percent and in determining this ratio, the assets must be valued 
        at their current market value; 
           (3) have projected annual expenses, including operating 
        expenses, family living, and interest expenses after the 
        restructuring, that do not exceed 95 percent of the borrower's 
        projected annual income considering prior production history and 
        projected prices for farm production, except that the authority 
        may reduce the 95 percent requirement if it finds that other 
        significant factors in the loan application support the making 
        of the loan; and 
           (4) demonstrate substantial difficulty in meeting projected 
        annual expenses without restructuring the loan; and 
           (5) 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. 
           Sec. 14.  Minnesota Statutes 1998, section 41B.039, 
        subdivision 2, is amended to read: 
           Subd. 2.  [STATE PARTICIPATION.] The state may participate 
        in a new real estate loan with an eligible lender to a beginning 
        farmer to the extent of 45 percent of the principal amount of 
        the loan or $100,000 $125,000, whichever is less.  The interest 
        rates and repayment terms of the authority's participation 
        interest may be different than the interest rates and repayment 
        terms of the lender's retained portion of the loan. 
           Sec. 15.  Minnesota Statutes 1998, section 41B.04, 
        subdivision 8, is amended to read: 
           Subd. 8.  [STATE'S PARTICIPATION.] With respect to loans 
        that are eligible for restructuring under sections 41B.01 to 
        41B.23 and upon acceptance by the authority, the authority shall 
        enter into a participation agreement or other financial 
        arrangement whereby it shall participate in a restructured loan 
        to the extent of 45 percent of the primary principal or 
        $100,000 $150,000, whichever is less.  The authority's portion 
        of the loan must be protected during the authority's 
        participation by the first mortgage held by the eligible lender 
        to the extent of its participation in the loan. 
           Sec. 16.  Minnesota Statutes 1998, section 41B.042, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PARTICIPATION LIMIT; INTEREST.] The authority 
        may participate in new seller-sponsored loans to the extent of 
        45 percent of the principal amount of the loan or 
        $100,000 $125,000, whichever is less.  The interest rates and 
        repayment terms of the authority's participation interest may be 
        different than the interest rates and repayment terms of the 
        seller's retained portion of the loan. 
           Sec. 17.  Minnesota Statutes 1998, section 41B.043, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SPECIFICATIONS.] No direct loan may exceed 
        $35,000 or $100,000 $125,000 for a loan participation or be made 
        to refinance an existing debt.  Each direct loan and 
        participation must be secured by a mortgage on real property and 
        such other security as the authority may require. 
           Sec. 18.  Minnesota Statutes 1998, 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. 19.  [41B.048] [AGROFORESTRY LOAN PROGRAM.] 
           Subdivision 1.  [PURPOSE.] The purpose of the agroforestry 
        loan program is to provide low interest financing to farmers 
        during the growing period required to convert agricultural land 
        to agroforestry. 
           Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
        and implement an agroforestry loan program to help finance the 
        production of short rotation woody crops.  The authority may 
        contract with a fiscal agent to provide an efficient delivery 
        system for this program. 
           Subd. 3.  [RULES.] The authority may adopt rules necessary 
        for administration of the program established under subdivision 
        2. 
           Subd. 4.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "Fiscal agent" means any lending institution or other 
        organization of a for-profit or nonprofit nature that is in good 
        standing with the state of Minnesota that has the appropriate 
        business structure and trained personnel suitable to providing 
        efficient disbursement of loan funds and the servicing and 
        collection of loans over an extended period of time. 
           (c) "Growing cycle" means the number of years from planting 
        to harvest. 
           (d) "Harvest" means the day that the crop arrives at the 
        scale of the buyer of the crop. 
           (e) "Short rotation woody crops" or "crop" means hybrid 
        poplar and other woody plants that are harvested for their fiber 
        within 15 years of planting. 
           Subd. 5.  [ELIGIBILITY.] To be eligible for this program a 
        borrower must: 
           (1) be a resident of Minnesota or any entity eligible to 
        own farm land under section 500.24; 
           (2) be or plan to become a grower of short rotation woody 
        crops on agricultural land that is suitable for the profitable 
        production of short rotation woody crops; 
           (3) be a member of a producer-owned cooperative that will 
        contract to market the short rotation woody crop to be planted 
        by the borrower; 
           (4) demonstrate an ability to repay the loan; 
           (5) not receive assistance under this program for more than 
        $150,000 in the producer's lifetime; 
           (6) agree to work with appropriate local, state, and 
        federal agencies, and the marketing cooperative, to develop an 
        acceptable establishment and maintenance plan; 
           (7) agree not to plant short-rotation woody crops within 
        one-quarter of a mile of state or federally protected prairie; 
        and 
           (8) meet any other requirements the authority may impose by 
        administrative procedure or by rule. 
           Subd. 6.  [LOANS.] (a) The authority may disburse loans 
        through a fiscal agent to farmers and agricultural landowners 
        who are eligible under subdivision 5.  The total accumulative 
        loan principal must not exceed $75,000 per loan. 
           (b) The fiscal agent may impose a loan origination fee in 
        the amount of one percent of the total approved loan.  This fee 
        is to be paid by the borrower to the fiscal agent at the time of 
        loan closing. 
           (c) The loan may be disbursed over a period not to exceed 
        12 years. 
           (d) A borrower may receive loans, depending on the 
        availability of funds, for planted areas up to 160 acres for up 
        to: 
           (1) the total amount necessary for establishment of the 
        crop; 
           (2) the total amount of maintenance costs, including weed 
        control, during the first three years; and 
           (3) 70 percent of the estimated value of one year's growth 
        of the crop for years four through 12. 
           (e) Security for the loan must be the crop, a personal note 
        executed by the borrower, an interest in the land upon which the 
        crop is growing, and whatever other security is required by the 
        fiscal agent or the authority.  All recording fees must be paid 
        by the borrower. 
           (f) The authority may prescribe forms and establish an 
        application process for applicants to apply for a loan. 
           (g) The authority may impose a reasonable nonrefundable 
        application fee for each application for a loan under this 
        program.  The application fee is initially $50.  Application 
        fees received by the authority must be deposited in the 
        agroforestry loan program revolving fund established in 
        subdivision 7. 
           (h) Loans under the program must be made using money in the 
        agroforestry loan program revolving fund established in 
        subdivision 7. 
           (i) The interest payable on loans made by the authority for 
        the agroforestry loan program must, if funded by revenue bond 
        proceeds, be at a rate not less than the rate on the revenue 
        bonds, and may be established at a higher rate necessary to pay 
        costs associated with the issuance of the revenue bonds and a 
        proportionate share of the cost of administering the program.  
        The interest payable on loans for the agroforestry loan program 
        funded from sources other than revenue bond proceeds must be at 
        a rate determined by the authority. 
           (j) Loan principal balance outstanding plus all assessed 
        interest must be repaid within 120 days of harvest, but no later 
        than 15 years from planting. 
           Subd. 7.  [REVOLVING FUND.] There is established in the 
        state treasury an agroforestry loan program revolving fund that 
        is eligible to receive appropriations or the proceeds of bond 
        sales.  All repayments of financial assistance granted under 
        subdivision 2, including principal and interest, must be 
        deposited into this fund.  Interest earned on money in the fund 
        accrues to the fund, and money in the fund is appropriated to 
        the commissioner for purposes of the agroforestry loan program, 
        including costs incurred by the authority to establish and 
        administer the program. 
           Subd. 8.  [REVENUE BONDS.] The authority may issue revenue 
        bonds to finance the agroforestry loan program in accordance 
        with sections 41B.08 to 41B.15, 41B.17, and 41B.18.  Bonds may 
        be refunded by the issuance of refunding bonds in the manner 
        authorized by chapter 475.  
           Sec. 20.  [BIG BOG STATE RECREATION AREA.] 
           Subdivision 1.  [85.013] [Subd. 2c.] [BIG BOG STATE 
        RECREATION AREA, BELTRAMI COUNTY.] Big Bog state recreation area 
        is established in Beltrami county. 
           Subd. 2.  [PURPOSE.] The Big Bog state recreation area is 
        created to expand and diversify regional recreational 
        opportunities and to enrich the cultural, biological, and 
        historical opportunities for visitors to an area of the state 
        that has suffered severe economic distress.  The Big Bog 
        recreational area will also enhance public appreciation and 
        provide for the long-term protection of a unique ecosystem. 
           Subd. 3.  [BOUNDARIES.] The following described lands are 
        located within the boundaries of Big Bog state recreation area, 
        all in Beltrami county: 
           (1) Government Lots 1, 2, and 3 of Section 8, Township 154 
        North, Range 30 West, EXCEPT a tract in Government Lot 3 
        beginning 100 feet North of the South boundary of Government Lot 
        3 on the east right-of-way line of State Trunk Highway 72; 
        thence northerly 200 feet along said trunk highway; thence East 
        to the westerly right-of-way line of old Trunk Highway 72; 
        thence southerly 200 feet along said right-of-way line; thence 
        westerly to the point of beginning; 
           (2) all of Sections 25, 26, and 27; the east Half, the 
        Northwest Quarter, and the North Half of the Southwest Quarter 
        of Section 34; the North Half and the Southwest Quarter of 
        Section 35; the North Half, the East Half of the Southwest 
        Quarter, the Southwest Quarter of the Southwest Quarter, the 
        West Half of the Southeast Quarter, and the Southeast Quarter of 
        the Southeast Quarter of Section 36, all in Township 156 North, 
        Range 31 West; and 
           (3) all of Sections 1 and 2; the East Half of Section 3; 
        the East Half, the Southeast Quarter of the Northwest Quarter, 
        the East Half of the Southwest Quarter, and the Southwest 
        Quarter of the Southwest Quarter of Section 10; and all of 
        Sections 11, 12, 13, 14, and 15, all in Township 155 North, 
        Range 31 West. 
           Subd. 4.  [ADMINISTRATION.] The commissioner of natural 
        resources shall administer the area according to Minnesota 
        Statutes, section 86A.05, subdivision 3, subject to existing 
        rules and regulations for state recreation areas. 
           Subd. 5.  [CONTINUED LEASE OF LAND IN BIG BOG STATE 
        RECREATION AREA.] Notwithstanding Minnesota Statutes, sections 
        85.011, 85.013, 85.053, and 86A.05, the commissioner of natural 
        resources may continue to lease, upon the terms and conditions 
        as the commissioner may prescribe and in the form approved by 
        the attorney general, land within the Big Bog state recreation 
        area that is included in lease number 144-15-109 to Waskish 
        township. 
           Sec. 21.  [RED RIVER STATE RECREATION AREA.] 
           Subdivision 1.  [85.013] [Subd. 20a.] [RED RIVER STATE 
        RECREATION AREA, POLK COUNTY.] The Red River state recreation 
        area is established in Polk county. 
           Subd. 2.  [BOUNDARIES.] The following described lands are 
        located within the boundaries of the Red River state recreation 
        area, all in Polk county: 
           (1) Lots 3 to 14 of Block 2 including streets and alleys 
        adjacent thereto in Riverside Addition; 
           (2) Block 1 including streets and alleys adjacent thereto 
        in Surprenant's Addition; 
           (3) Lots 1 to 24 including streets and alleys adjacent 
        thereto in Grigg's Addition; 
           (4) Lots 2, 4, 6, 8, 10, and 12 of Block 1, Block 3, Lots 1 
        to 10 of Block 4, and Lots 1 to 12 in Blocks A and B including 
        streets and alleys adjacent thereto in Grand Forks East; 
           (5) Lots 1 to 5 of Block 1 and Blocks 2 to 14 including 
        streets and alleys adjacent thereto in Lake Park Addition; 
           (6) Lots 1 to 7 and Lots 19 to 24 of Block 2 including 
        streets and alleys adjacent thereto in E.B. Frederick's 
        Addition; 
           (7) Lots 1 to 3 of Block 1 and Blocks 2, 3, and 4 including 
        streets and alleys adjacent thereto in Budge's First Addition; 
           (8) Lots 1 to 4 of Block 1 including streets and alleys 
        adjacent thereto in River Heights 1st Addition; 
           (9) Blocks 1 and 2 including streets and alleys adjacent 
        thereto in Thompson's Addition; 
           (10) Lots 1 to 12 of Block 1, Lots 4 to 12 of Block 2, 
        Block 3, and Lots 1 to 4 of Block 4 in Edwards Outlots and 
        Outlots 4 to 8 including streets and alleys adjacent thereto in 
        Auditor's Plat of Outlots; 
           (11) Auditor's Plat of Mrs. Hines' Outlot; 
           (12) Lots 6, 8, 10, 12, 14, 16, 18, 20, 22, and 24 of Block 
        3 and Lots 1 to 8 of Block 2 including streets and alleys 
        adjacent thereto in the Original Townsite of East Grand Forks; 
           (13) Blocks 1 to 8 including streets and alleys adjacent 
        thereto in Woodland Addition; 
           (14) Lots 1, 3, 5, 7, 9, 11, 13, 15, 17, 19, 21, and 23 of 
        Block 31 and Blocks 32 to 38 including streets and alleys 
        adjacent thereto in Traill's Addition; 
           (15) Blocks 2 to 16 including streets and alleys adjacent 
        thereto in Elm Grove; 
           (16) Block 1, Lots 1 to 11 of Block 2, and Lots 1 to 11 of 
        Block 3 including streets and alleys adjacent thereto in O'Leary 
        and Ryan's Addition to Elm Grove; 
           (17) Lots 6 to 10 of Block 1, Lots 8 to 35 of Block 2, 
        Blocks 3, 4, and 5 including streets and alleys adjacent thereto 
        in Folson Park Addition; 
           (18) Lots 1 to 6 of Block 1 in Jerome's Addition; 
           (19) Lots 1 to 4 of Block 3 in Prestige Addition; 
           (20) Lots 1 to 14 of Block 1 in Riverview Addition; 
           (21) Lots 6 to 16 of Block 3 in Riverview 3rd Addition; 
           (22) Lots 1 to 4 of Block 1 in Riverview 4th Addition; 
           (23) Lots 1 and 2 of Block 1 in Riverview 5th Addition; 
           (24) Lots 1 to 9 of Block 1 and Outlot A in Riverview 6th 
        Addition; 
           (25) Lots 1 to 18 of Block 1 and Lots 1 to 5 of Block 2 
        including streets and alleys adjacent thereto in Timberline 2nd 
        Addition; 
           (26) Lots 14 to 16 of Block 1 including streets and alleys 
        adjacent thereto in Timberline Addition; 
           (27) Lots 19 and 20 including streets and alleys adjacent 
        thereto in Murphy's Outlots; 
           (28) Lots 1 to 10 of Block 1 including streets and alleys 
        thereto in Croy's 2nd Addition; 
           (29) Lots 1 to 6 of Block 1 including the streets and 
        alleys adjacent thereto in Point of Woods 2nd Addition; 
           (30) Lots 1 to 6 of Block 1 including the streets and 
        alleys adjacent thereto in Point of Woods Addition; 
           (31) the unplatted portions of Government Lots 1, 2, and 3 
        of Section 35, Township 152 North, Range 50 West; 
           (32) all of Government Lot 7, the unplatted portion of 
        Government Lot 9, and that part of Government Lots 6 and 8 and 
        the Southeast Quarter of the Southeast Quarter lying 
        southwesterly of the southwesterly right-of-way line of the 
        Burlington Northern and Santa Fe Railroad of Section 1, Township 
        151 North, Range 50 West; 
           (33) the unplatted portions of Government Lots 2, 3, 4, 5, 
        and 6 of Section 2, Township 151 North, Range 50 West; 
           (34) all of Government Lots 1 and 2 of Section 11, Township 
        151 North, Range 50 West; 
           (35) all of Government Lots 1, 7, and 11, the unplatted 
        portions of Government Lots 3, 5, 9, and 10, and the Northeast 
        Quarter of the Northwest Quarter of Section 12, Township 151 
        North, Range 50; 
           (36) all of Government Lots 1 and 2, the Southwest Quarter 
        of the Northwest Quarter, and the Northwest Quarter of the 
        Southwest Quarter of Section 13, Township 151 North, Range 50 
        West; 
           (37) all of Government Lots 1, 2, 3, and 4 of Section 14; 
        Township 151 North, Range 50 West; 
           (38) that part of Government Lot 7 lying southwesterly of 
        the southwesterly right-of-way line of the Burlington Northern 
        and Santa Fe Railroad of Section 6, Township 151 North, Range 49 
        West; and 
           (39) all of Government Lots 2, 6, 7, and 9, the Northwest 
        Quarter of the Northeast Quarter, the Northeast Quarter of the 
        Northeast Quarter, the unplatted portions of Government Lots 3 
        and 5, and that part of Government Lot 1 and the Northeast 
        Quarter of the Northwest Quarter lying southwesterly of the 
        southwesterly right-of-way line of the Burlington Northern and 
        Santa Fe Railroad of Section 7, Township 151 North, Range 49 
        West.  
           Subd. 3.  [ADMINISTRATION.] The commissioner of natural 
        resources shall administer the area according to Minnesota 
        Statutes, section 86A.05, subdivision 3, subject to existing 
        rules and regulations for state recreation areas.  The 
        commissioner shall appoint a citizens' oversight committee to 
        assist with developing and managing the area.  The committee 
        shall serve without compensation and is exempt from Minnesota 
        Statutes, section 15.059. 
           Sec. 22.  Minnesota Statutes 1998, section 85.015, is 
        amended by adding a subdivision to read: 
           Subd. 8a.  [MILL TOWNS TRAIL.] (a) The trail shall 
        originate at a point commonly known as Faribault Junction in 
        Rice county, the termination point of the Sakatah Singing Hills 
        Trail, and shall extend through the towns of Faribault, Dundas, 
        Northfield, Waterford, and Randolph, to the termination point of 
        the Cannon Valley Trail in Cannon Falls.  The trail may be 
        located within the Cannon river wild, scenic, and recreational 
        land use district. 
           (b) The trail shall be developed primarily for riding and 
        hiking.  Motorized vehicles, except snowmobiles, are prohibited 
        from the trail. 
           Sec. 23.  Minnesota Statutes 1998, section 85.34, 
        subdivision 1, is amended to read: 
           Subdivision 1.  The commissioner of natural resources with 
        the approval of the Executive Council may lease for purposes of 
        restoration, preservation, historical, recreational, 
        educational, and commercial use and development, that portion of 
        Fort Snelling state park known as the upper bluff consisting of 
        officer's row and, area J, the polo grounds, the adjacent golf 
        course, and residential, storage and service all buildings and 
        improvements located thereon, all lying within an area bounded 
        by Minneapolis-St. Paul International Airport, trunk highway 
        highways numbered 5 and 55, Taylor avenue, Minnehaha avenue, and 
        Bloomington Road.  The lease or leases shall be in a form 
        approved by the attorney general and for a term of not to exceed 
        99 years.  The lease or leases may provide for the provision of 
        capital improvements or other performance by the tenant or 
        tenants in lieu of all or some of the payments of rent that 
        would otherwise be required. 
           Sec. 24.  Minnesota Statutes 1998, section 85.34, is 
        amended by adding a subdivision to read: 
           Subd. 4.  All receipts derived from the leasing or 
        operation of the property described in subdivision 1 shall be 
        deposited in the state treasury and be credited to the state 
        parks working capital account designated in section 85.22, 
        subdivision 1.  Receipts and expenses from the leasing or 
        operation of the property described in subdivision 1 shall be 
        tracked separately within the account.  Money in the account 
        derived from the leasing or operation of the property described 
        in subdivision 1 is annually appropriated for the payment of 
        expenses attributable to the leasing and operation of the 
        property described in subdivision 1, included but not limited to 
        the maintenance, repair, and rehabilitation of historic 
        buildings and landscapes.  Any excess receipts in this account 
        are annually appropriated for historic preservation purposes 
        within state parks. 
           Sec. 25.  Minnesota Statutes 1998, section 85.34, is 
        amended by adding a subdivision to read: 
           Subd. 5.  The commissioner of natural resources may provide 
        an exception, in whole or in part, to the rules for use of state 
        parks and other recreational areas for property leased pursuant 
        to subdivision 1.  The exception may be provided by 
        commissioner's order and shall be effective for the term of the 
        lease or such lesser period of time specified by the 
        commissioner. 
           Sec. 26.  Minnesota Statutes 1998, section 97A.055, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RECEIPTS.] The state treasurer shall credit to 
        the game and fish fund all money received under the game and 
        fish laws including receipts from:  
           (1) licenses issued; 
           (2) fines and forfeited bail; 
           (3) sales of contraband, wild animals, and other property 
        under the control of the division; 
           (4) fees from advanced education courses for hunters and 
        trappers; 
           (5) reimbursements of expenditures by the division; and 
           (6) contributions to the division; and 
           (7) revenue credited to the game and fish fund under 
        section 297A.44, subdivision 1, paragraph (e), clause (1). 
           Sec. 27.  Minnesota Statutes 1998, section 103E.011, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [USE OF EXTERNAL SOURCES OF 
        FUNDING.] Notwithstanding other provisions of this chapter, a 
        drainage authority may accept and use funds from sources other 
        than, or in addition to, those derived from assessments based on 
        the benefits of the drainage system for the purposes of wetland 
        preservation or restoration or creation of water quality 
        improvements or flood control.  The sources of funding 
        authorized under this subdivision may also be used outside the 
        benefited area but must be within the watershed of the drainage 
        system. 
           Sec. 28.  Minnesota Statutes 1999 Supplement, section 
        116.073, subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY TO ISSUE.] (a) Pollution control 
        agency staff designated by the commissioner and department of 
        natural resources conservation officers may issue citations to a 
        person who: 
           (1) disposes of solid waste as defined in section 116.06, 
        subdivision 22, at a location not authorized by law for the 
        disposal of solid waste without permission of the owner of the 
        property; 
           (2) fails to report or recover oil or hazardous substance 
        discharges as required under section 115.061; or 
           (3) fails to take discharge preventive or preparedness 
        measures required under chapter 115E.  
           (b) In addition, pollution control agency staff designated 
        by the commissioner may issue citations to owners and operators 
        of facilities dispensing petroleum products who violate sections 
        116.46 to 116.50 and Minnesota Rules, chapters 7150 and 7151 and 
        parts 7001.4200 to 7001.4300.  The citations for violation of 
        sections 116.46 to 116.50 and Minnesota Rules, chapter 7150, may 
        be issued only after the owners and operators have had a 90-day 
        period to correct all the violations stated in a letter issued 
        previously by pollution control agency staff.  A citation issued 
        under this subdivision must include a requirement that the 
        person cited remove and properly dispose of or otherwise manage 
        the waste or discharged oil or hazardous substance, reimburse 
        any government agency that has disposed of the waste or 
        discharged oil or hazardous substance and contaminated debris 
        for the reasonable costs of disposal, or correct any underground 
        storage tank violations. 
           (c) Until June 1, 2004, citations for violation of sections 
        115E.045 and 116.46 to 116.50 and Minnesota Rules, chapters 7150 
        and 7151, may be issued only after the owners and operators have 
        had a 90-day period to correct violations stated in writing by 
        pollution control agency staff, unless there is a discharge 
        associated with the violation or the violation is of Minnesota 
        Rules, part 7151.6400, subpart 1, item B, or 7151.6500. 
           Sec. 29.  Minnesota Statutes 1998, section 297A.44, 
        subdivision 1, is amended to read: 
           Subdivision 1.  (a) Except as provided in paragraphs (b) to 
        (d) (f), all revenues, including interest and penalties, derived 
        from the excise and use taxes imposed by sections 297A.01 to 
        297A.44 shall be deposited by the commissioner in the state 
        treasury and credited to the general fund.  
           (b) All excise and use taxes derived from sales and use of 
        property and services purchased for the construction and 
        operation of an agricultural resource project, from and after 
        the date on which a conditional commitment for a loan guaranty 
        for the project is made pursuant to section 41A.04, subdivision 
        3, shall be deposited in the Minnesota agricultural and economic 
        account in the special revenue fund.  The commissioner of 
        finance shall certify to the commissioner the date on which the 
        project received the conditional commitment.  The amount 
        deposited in the loan guaranty account shall be reduced by any 
        refunds and by the costs incurred by the department of revenue 
        to administer and enforce the assessment and collection of the 
        taxes. 
           (c) All revenues, including interest and penalties, derived 
        from the excise and use taxes imposed on sales and purchases 
        included in section 297A.01, subdivision 3, paragraphs (d) and 
        (k), clauses (1) and (2), must be deposited by the commissioner 
        in the state treasury, and credited as follows: 
           (1) first to the general obligation special tax bond debt 
        service account in each fiscal year the amount required by 
        section 16A.661, subdivision 3, paragraph (b); and 
           (2) after the requirements of clause (1) have been met, the 
        balance must be credited to the general fund. 
           (d) The revenues, including interest and penalties, 
        collected under section 297A.135, subdivision 5, shall be 
        deposited by the commissioner in the state treasury and credited 
        to the general fund.  By July 15 of each year the commissioner 
        shall transfer to the highway user tax distribution fund an 
        amount equal to the excess fees collected under section 
        297A.135, subdivision 5, for the previous calendar year. 
           (e) For fiscal year 2001, 97 percent, and for fiscal year 
        2002 and thereafter, 87 percent of the revenues, including 
        interest and penalties, transmitted to the commissioner under 
        section 297A.259, must be deposited by the commissioner in the 
        state treasury as follows: 
           (1) 50 percent of the receipts must be deposited in the 
        heritage enhancement account in the game and fish fund, and may 
        be spent only on activities that improve, enhance, or protect 
        fish and wildlife resources, including conservation, 
        restoration, and enhancement of land, water, and other natural 
        resources of the state; 
           (2) 22.5 percent of the receipts must be deposited in the 
        natural resources fund, and may be spent only for state parks 
        and trails; 
           (3) 22.5 percent of the receipts must be deposited in the 
        natural resources fund, and may be spent only on metropolitan 
        park and trail grants; 
           (4) three percent of the receipts must be deposited in the 
        natural resources fund, and may be spent only on local trail 
        grants; and 
           (5) two percent of the receipts must be deposited in the 
        natural resources fund, and may be spent only for the Minnesota 
        zoological garden, the Como park zoo and conservatory, and the 
        Duluth zoo. 
           (f) The revenue dedicated under paragraph (e) may not be 
        used as a substitute for traditional sources of funding for the 
        purposes specified, but the dedicated revenue shall supplement 
        traditional sources of funding for those purposes.  Land 
        acquired with money deposited in the game and fish fund under 
        paragraph (e) must be open to public hunting and fishing during 
        the open season.  At least 87 percent of the money deposited in 
        the game and fish fund for improvement, enhancement, or 
        protection of fish and wildlife resources under paragraph (e) 
        must be allocated for field operations. 
           Sec. 30.  Minnesota Statutes 1998, section 383B.235, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [EXISTING FACILITY MAY USE 
        CAPACITY.] Notwithstanding subdivisions 1 and 2, an existing 
        resource recovery facility may reclaim, burn, use, process, or 
        dispose of mixed municipal solid waste to the full extent of its 
        maximum yearly capacity as of January 1, 2000.  The facility 
        must continue to comply with all federal and state environmental 
        laws and regulations and must obtain a conditional use permit 
        from the municipality where the facility is located. 
           Sec. 31.  Laws 1998, chapter 389, article 16, section 31, 
        subdivision 2, as amended by Laws 1999, chapter 180, section 1, 
        is amended to read: 
           Subd. 2.  [EXCHANGE OF COUNTY LAKESHORE LAND FOR LEASED 
        LAKESHORE LOTS.] (a) For the purposes of this section: 
           (1) "county land" includes, but is not limited to, 
        tax-forfeited land administered by any county; 
           (2) "leased lakeshore lots" means lands leased by the 
        state, including lots for which leases have been canceled, 
        pursuant to Minnesota Statutes, section 92.46, subdivision 1; 
        and 
           (3) "plan for exchange" means a listing of parcels proposed 
        for exchange with legal descriptions, county estimates of 
        values, and maps and acreage for each parcel.  By July 1, 1999, 
        counties shall include exchange plans for all lakeshore lease 
        lots that are in substantial compliance with official controls.  
        The plan shall also include a timeline that provides for the 
        completion of the exchange of all remaining lakeshore lease lots 
        by December 31, 2000.  
           (b) By July 1, 1999, a county board with leased lakeshore 
        lots must petition the land exchange board with a plan for an 
        exchange of county land for leased lakeshore lots in the county 
        that are not listed by the commissioner pursuant to subdivision 
        1.  Notwithstanding Minnesota Statutes, section 94.342, the land 
        proposed for the exchange must be land bordering on or adjacent 
        to meandered or other public waters.  A county board proposing 
        an exchange under this section may include tax-forfeited land 
        administered by another county in the proposal with the consent 
        of that county board.  
           (c) In determining the value of the leased lakeshore lots 
        for purposes of the exchange, the land exchange board must 
        review an appraisal of each lot prepared by an appraiser 
        licensed by the commissioner of commerce.  The selection of the 
        appraiser must be agreed to by the commissioner of natural 
        resources and the county board of the county containing the 
        leased lakeshore lot.  The commissioner of natural resources 
        must pay the costs of appraisal and may recover these costs as 
        provided in this section.  The commissioner must submit 
        appraisals under this paragraph to the land exchange board by 
        June 1, 1999.  
           (d) The land exchange board must determine whether the land 
        offered for exchange by a county under this section is lakeshore 
        of substantially equal value to the leased lakeshore lots 
        included in the county's petition.  In making this 
        determination, the land exchange board must review an appraisal 
        of the land offered for exchange prepared by an appraiser 
        licensed by the commissioner of commerce.  The selection of the 
        appraiser must be agreed to by the commissioner of natural 
        resources and the county board of the county containing the 
        leased lakeshore lots.  The county must pay the costs of this 
        appraisal and may recover those costs as provided in this 
        section.  
           (e) Before the proposed exchange may be submitted to the 
        land exchange board, the commissioner of natural resources must 
        ensure that, whenever possible, state lands are added to the 
        leased lakeshore lots when necessary to provide conformance with 
        zoning official controls.  The lands added to the leased 
        lakeshore lots must be included in the appraised value of the 
        lots.  If the commissioner is unable to add the necessary land 
        to a lot, the lot shall be treated as if purchased at the time 
        the state first leased the site, for the purposes of local 
        zoning and other ordinances at the time of sale of the lot by 
        the county.  
           (f) Additional state or county lands, including state 
        riparian land leased for a commercial use, may be added to the 
        exchanges if mutually agreed upon by the commissioner and the 
        affected county board to meet county zoning standards or other 
        regulatory needs for the lots, for use of the land by the county 
        or state, or to avoid leaving unmanageable parcels of land in 
        state or county ownership after an exchange, or to dispose of 
        state commercial riparian leases.  The additional county land 
        may include nonriparian land, if the land is adjacent to county 
        land exchanged under this section and is beneficial to or 
        enhances the value of the school trust land.  Notwithstanding 
        Minnesota Statutes, chapter 282, or any other law to the 
        contrary, a county board may sell all or part of any additional 
        land to an owner of a lakeshore lot sold by the county under 
        this section, or sold by the state at a lakeshore lot sale, or 
        to the lessee of a commercial lease.  
           (g) In the event that commercial leased state land is 
        proposed for exchange, the state and county must submit to the 
        land exchange board prior to exchanges, without regard to the 
        dates provided in this section, the reports, appraisals, and 
        plan for exchange required by this section.  The county is not 
        required to sell the commercially leased lands it receives from 
        the state within the times stated in this section. 
           (h) The land exchange board must determine whether the lots 
        are of substantially equal value and may approve the exchange, 
        notwithstanding the requirements of Minnesota Statutes, sections 
        94.342 to 94.347, relating to the approval process.  If the 
        board approves the exchange, the commissioner must exchange the 
        leased lakeshore lots for the county lands, together with any 
        additional state land provided for under this section, subject 
        to the requirements of the Minnesota Constitution, article XI, 
        section 10, relating to the reservation of mineral and water 
        power rights.  
           (i) The deeds between the state and counties for land 
        exchanges under this section are exempt from the deed tax 
        imposed by Minnesota Statutes, section 287.21. 
           (j) The deeds issued by the state and counties for the land 
        exchanges and sales to a lessee made pursuant to this section 
        are exempt from the requirements imposed for well disclosure by 
        Minnesota Statutes, section 103I.235, well sealing by Minnesota 
        Statutes, section 103I.311, and individual sewage treatment 
        system disclosure by Minnesota Statutes, section 115.55, 
        subdivision 6. 
           Sec. 32.  Laws 1998, chapter 404, section 7, subdivision 
        23, as amended by Laws 1999, chapter 231, section 194, and Laws 
        1999, chapter 240, article 1, section 20, is amended to read: 
         Subd. 23.  Metro Regional Trails          5,000,000
        For grants to the metropolitan council 
        for acquisition and development of a 
        capital nature of trail connections in 
        the metropolitan area as specified in 
        this subdivision.  The purpose of the 
        grants is to improve trails in the 
        metropolitan park and open space system 
        and connect them with existing state 
        and regional trails.  Priority shall be 
        given to matching funds for an ISTEA 
        grant. 
        The funds shall be allocated by the 
        council as follows: 
        (1) $1,050,000 is allocated to Ramsey 
        county as follows: 
        (i) $400,000 to complete six miles of 
        trails between the Burlington Northern 
        Regional Trail and Bald Eagle-Otter 
        Lake Regional Park; 
        (ii) $150,000 to complete a one-mile 
        connection between Birch Lake and the 
        Lake Tamarack segment of Bald 
        Eagle-Otter Lake Regional Park; 
        (iii) $500,000 to acquire real property 
        and design and construct or renovate 
        recreation facilities along the 
        Mississippi River in cooperation with 
        the city of St. Paul; 
        (2) $1,050,000 is allocated to the city 
        of St. Paul as follows: 
        (i) $250,000 to construct a bridge over 
        Lexington Parkway in Como Regional 
        Park; and 
        (ii) $800,000 to enhance amenities for 
        the trailhead at the Lilydale-Harriet 
        Island Regional Park pavilion; 
        (3) $1,400,000 is allocated to Anoka 
        county to construct: 
        (i) a pedestrian tunnel under Highway 
        65 on the Rice Creek West Regional 
        Trail in the city of Fridley; and 
        (ii) restrooms, trailhead, signs, and 
        amenities at the trailhead to the Rice 
        Creek West Regional Trail; and 
        (iii) a pedestrian bridge on the 
        Mississippi River Regional Trail 
        crossing over Mississippi Street in the 
        city of Fridley; and 
        (4) $1,500,000 is allocated to the 
        suburban Hennepin regional park 
        district as follows: 
        (i) $1,000,000 to connect North 
        Hennepin Regional Trail to Luce Line 
        State Trail and Medicine Lake; and 
        (ii) $500,000 is for the cost of 
        development and acquisition of the 
        Southwest regional trail in the city of 
        St. Louis Park.  The trail must connect 
        the Minneapolis regional trail system 
        at Cedar Lake park to the Hennepin 
        parks regional trail system at the 
        Hopkins trail head. 
           Sec. 33.  Laws 1999, chapter 231, section 2, subdivision 2, 
        is amended to read: 
        Subd. 2.  Protection of the Water 
            15,984,000     16,008,000
                      Summary by Fund
        General              13,074,000    13,283,000 12,983,000
        State Government
        Special Revenue          44,000        45,000
        Environmental         2,616,000     2,680,000  2,980,000
        Petroleum tank          250,000        -0-
        $2,348,000 the first year and 
        $2,348,000 the second year are for 
        grants to local units of government for 
        the clean water partnership program.  
        The amount of this appropriation above 
        the base is for Phase II implementation 
        projects.  Any unencumbered balance 
        remaining in the first year does not 
        cancel and is available for the second 
        year of the biennium. 
        $1,470,000 the first year and 
        $1,841,000 the second year are for 
        grants for county administration of the 
        feedlot permit program.  These amounts 
        are transferred to the board of water 
        and soil resources for disbursement in 
        accordance with Minnesota Statutes, 
        section 103B.3369, in cooperation with 
        the pollution control agency.  Grants 
        must be matched with a combination of 
        local cash and/or in-kind 
        contributions.  Counties receiving 
        these grants shall submit an annual 
        report to the pollution control agency 
        regarding activities conducted under 
        the grant, expenditures made, and local 
        match contributions.  First priority 
        for funding shall be given to counties 
        that have requested and received 
        delegation from the pollution control 
        agency for processing of animal feedlot 
        permit applications under Minnesota 
        Statutes, section 116.07, subdivision 
        7.  Delegated counties shall be 
        eligible to receive a grant of either:  
        $50 multiplied by the number of 
        livestock or poultry farms with sales 
        greater than $10,000, as reported in 
        the 1997 Census of Agriculture, 
        published by the United States Bureau 
        of Census; or $80 multiplied by the 
        number of feedlots with greater than 
        ten animal units as determined by a 
        level 2 or level 3 feedlot inventory 
        conducted in accordance with the 
        Feedlot Inventory Guidebook published 
        by the board of water and soil 
        resources, dated June 1991.  To receive 
        the additional funding that is based on 
        the county feedlot inventory, the 
        county shall submit a copy of the 
        inventory to the pollution control 
        agency.  Any remaining money is for 
        distribution to all counties on a 
        competitive basis through the challenge 
        grant process for the conducting of 
        feedlot inventories, development of 
        delegated county feedlot programs, and 
        for information and education or 
        technical assistance efforts to reduce 
        feedlot-related pollution hazards.  Any 
        money remaining after the first year is 
        available for the second year. 
        $94,000 the first year and $97,000 the 
        second year are for compliance 
        activities and air quality monitoring 
        to address hydrogen sulfide emissions 
        from animal feedlots.  The air quality 
        monitoring must include the use of 
        portable survey instruments. 
        $1,043,000 the first year and 
        $1,048,000 the second year are for 
        water monitoring activities.  
        $320,000 the first year and $322,000 
        the second year are for community 
        technical assistance and education, 
        including grants and technical 
        assistance to communities for local and 
        basin-wide water quality protection. 
        $201,000 the first year and $202,000 
        the second year are for individual 
        sewage treatment system (ISTS) 
        administration. Of this amount, $86,000 
        in each year is transferred to the 
        board of water and soil resources for 
        assistance to local units of government 
        through competitive grant programs for 
        ISTS program development. 
        $200,000 in each year is for individual 
        sewage treatment system grants.  Any 
        unexpended balance in the first year 
        does not cancel, but is available in 
        the second year. 
        $250,000 the first year and $500,000 
        the second year are for studies to 
        determine total maximum daily load 
        allocations to improve water quality.  
        $300,000 each the first year is from 
        the general fund and $300,000 the 
        second year from the environmental fund 
        are for continuing research on 
        malformed frogs.  This is a one-time 
        appropriation.  
        $126,000 is for administration of the 
        wastewater infrastructure fund (WIF) 
        construction program.  This is a 
        one-time appropriation.  
        $250,000 the first year, 
        notwithstanding Minnesota Statutes, 
        section 115C.08, subdivision 4, is from 
        the petroleum tank release fund for the 
        following purposes:  (1) to purchase 
        and distribute emergency spill response 
        equipment, such as spill containment 
        booms, sorbent pads, and installation 
        tools, along the Mississippi river 
        upstream of drinking water intakes at 
        the locations designated by the agency 
        in consultation with the Mississippi 
        River Defense Network; (2) to purchase 
        mobile trailers to contain the 
        equipment in clause (1) so that rapid 
        deployment can occur; and (3) to 
        conduct spill response training for 
        those groups of responders receiving 
        the spill response equipment described 
        in clause (1).  The agency shall 
        develop and administer protocol for the 
        use of the equipment among all 
        potential users, including private 
        contract firms, public response 
        agencies, and units of government.  Any 
        money remaining after the first year is 
        available for the second year.  This is 
        a one-time appropriation. 
        $100,000 for the biennium is for a 
        grant to the city of Garrison for the 
        Garrison, Kathio, West Mille Lacs Lake 
        Sanitary District for the cost of 
        environmental studies, planning, and 
        legal assistance for sewage treatment 
        purposes.  This is a one-time 
        appropriation. 
        Until July 1, 2001, the agency shall 
        not approve additional fees on animal 
        feedlot operations. 
           Sec. 34.  Laws 1999, chapter 231, section 6, as amended by 
        Laws 1999, chapter 249, section 10, is amended to read: 
        Sec. 6.  BOARD OF WATER AND 
        SOIL RESOURCES                        18,896,000     18,228,000
        $5,480,000 the first year and 
        $5,480,000 the second year are for 
        natural resources block grants to local 
        governments.  Of this amount, $50,000 
        each year is for a grant to the North 
        Shore Management Board, $35,000 each 
        year is for a grant to the St. Louis 
        River Board, $100,000 each year is for 
        a grant to the Minnesota River Basin 
        Joint Powers Board, and $27,000 each 
        year is for a grant to the Southeast 
        Minnesota Resources Board. 
        The board shall reduce the amount of 
        the natural resource block grant to a 
        county by an amount equal to any 
        reduction in the county's general 
        services allocation to a soil and water 
        conservation district from the county's 
        1998 allocation. 
        Grants must be matched with a 
        combination of local cash or in-kind 
        contributions.  The base grant portion 
        related to water planning must be 
        matched by an amount that would be 
        raised by a levy under Minnesota 
        Statutes, section 103B.3369.  
        $3,867,000 the first year and 
        $3,867,000 the second year are for 
        grants to soil and water conservation 
        districts for general purposes, 
        nonpoint engineering, and for 
        implementation of the RIM conservation 
        reserve program.  Upon approval of the 
        board, expenditures may be made from 
        these appropriations for supplies and 
        services benefiting soil and water 
        conservation districts. 
        $4,120,000 the first year and 
        $4,120,000 the second year are for 
        grants to soil and water conservation 
        districts for cost-sharing contracts 
        for erosion control and water quality 
        management.  Of this amount, $32,000 
        the first year is and up to $90,000 the 
        second year are for a grant grants to 
        the Blue Earth county soil and water 
        conservation districts for stream bank 
        stabilization on the LeSueur river 
        within the city limits of St. Clair; 
        and at least $1,500,000 the first year 
        and $1,500,000 the second year are for 
        state cost-share grants for 
        cost-sharing contracts for water 
        quality management on feedlots.  
        Priority must be given to feedlot 
        operators who have received notices of 
        violation and for feedlots in counties 
        that are conducting or have completed a 
        level 2 or level 3 feedlot inventory.  
        This appropriation is available until 
        expended.  If the appropriation in 
        either year is insufficient, the 
        appropriation in the other year is 
        available for it. 
        $100,000 the first year and $100,000 
        the second year are for a grant to the 
        Red river basin board to develop a Red 
        river basin water management plan and 
        to coordinate water management 
        activities in the states and provinces 
        bordering the Red river.  This 
        appropriation is only available to the 
        extent it is matched by a proportionate 
        amount in United States currency from 
        the states of North Dakota and South 
        Dakota and the province of Manitoba.  
        The unencumbered balance in the first 
        year does not cancel but is available 
        for the second year.  This is a 
        one-time appropriation. 
        $189,000 the first year and $189,000 
        the second year are for grants to 
        watershed districts and other local 
        units of government in the southern 
        Minnesota river basin study area 2 for 
        floodplain management.  If the 
        appropriation in either year is 
        insufficient, the appropriation in the 
        other year is available for it. 
        $1,203,000 the first year and $450,000 
        the second year are for the 
        administrative costs of easement and 
        grant programs. 
        Any unencumbered balance in the board's 
        program of grants does not cancel at 
        the end of the first year and is 
        available for the second year for the 
        same grant program.  If the 
        appropriation in either year is 
        insufficient, the appropriation for the 
        other year is available for it. 
           Sec. 35.  Laws 1999, chapter 231, section 11, subdivision 
        3, is amended to read: 
        Subd. 3.  Agricultural Marketing and Development
              6,521,000      5,410,000
        Notwithstanding Minnesota Statutes, 
        section 41A.09, subdivision 3a, the 
        total payments from the ethanol 
        development account to all producers 
        may not exceed $68,447,000 $72,106,000 
        for the biennium ending June 30, 2001.  
        If, prior to the end of the biennium, 
        the total amount for which all 
        producers are eligible in a quarter 
        exceeds the amount available for 
        payments remaining in the 
        appropriation, the commissioner shall 
        make the payments for the quarter in 
        which the shortfall occurs on a pro 
        rata basis.  In fiscal year 2000, the 
        commissioner shall first reimburse 
        producers for eligible unpaid claims 
        accumulated through June 30, 1999.  
        $500,000 the first year is appropriated 
        to the rural finance authority for 
        making a loan under Minnesota Statutes, 
        section 41B.044.  Principal and 
        interest payments on the loan must be 
        deposited in the ethanol development 
        account for producer payments under 
        Minnesota Statutes, section 
        41B.09 general fund. 
        By July 15, 1999, the commissioner 
        shall transfer the unencumbered cash 
        balance in the ethanol development fund 
        established in Minnesota Statutes, 
        section 41B.044, to the general fund. 
        $200,000 the first year is for a grant 
        from the commissioner to the Minnesota 
        Turkey Growers Association for 
        assistance to an entity that constructs 
        a facility that uses poultry litter as 
        a fuel for the generation of 
        electricity.  This amount must be 
        matched by $1 of nonstate money for 
        each dollar of state money.  This is a 
        one-time appropriation. 
        $50,000 the first year is for the 
        commissioner, in consultation with the 
        commissioner of economic development, 
        to conduct a study of the need for a 
        commercial shipping port at which 
        agricultural cooperatives or individual 
        farmers would have access to port 
        facilities.  This is a one-time 
        appropriation.  
        $71,000 the first year and $71,000 the 
        second year are for transfer to the 
        Minnesota grown matching account and 
        may be used as grants for Minnesota 
        grown promotion under Minnesota 
        Statutes, section 17.109. 
        $100,000 the first year is for a grant 
        to the University of Minnesota 
        extension service for its farm safety 
        and health program.  This is a one-time 
        appropriation. 
        $225,000 the first year and $75,000 the 
        second year are for grants to the 
        Minnesota agricultural education 
        leadership council for the planning and 
        implementation of initiatives enhancing 
        and expanding agricultural education in 
        rural and urban areas of the state.  
        Funds not used in the first year are 
        available for the second year.  This is 
        a one-time appropriation.  
        $480,000 the first year and $420,000 
        the second year are to the commissioner 
        of agriculture for programs to 
        aggressively promote, develop, expand, 
        and enhance the marketing of 
        agricultural products from Minnesota 
        producers and processors.  The 
        commissioner must enter into 
        collaborative efforts with the 
        department of trade and economic 
        development, the world trade center 
        corporation, and other public or 
        private entities knowledgeable in 
        market identification and development.  
        The commissioner may also contract with 
        or make grants to public or private 
        organizations involved in efforts to 
        enhance communication between producers 
        and markets and organizations that 
        identify, develop, and promote the 
        marketing of Minnesota agricultural 
        crops, livestock, and produce in local, 
        regional, national, and international 
        marketplaces.  Grants may be provided 
        to appropriate organizations including 
        those functioning as marketing clubs, 
        to a cooperative known as Minnesota 
        Marketplace, and to recognized 
        associations of producers or processors 
        of organic foods or Minnesota grown 
        specialty crops.  Beginning October 15, 
        1999, and 15 days after the close of 
        each calendar quarter thereafter, the 
        commissioner shall provide to the 
        senate and house committees with 
        jurisdiction over agriculture policy 
        and funding interim reports of the 
        progress toward accomplishing the goals 
        of this item.  The commissioner shall 
        deliver a final report on March 1, 
        2001.  If the appropriation for either 
        year is insufficient, the appropriation 
        for the other year is available.  This 
        is a one-time appropriation that 
        remains available until expended. 
        $60,000 the second year is for grants 
        to farmers for demonstration projects 
        involving sustainable agriculture.  If 
        a project cost is more than $25,000, 
        the amount above $25,000 must be 
        matched at the rate of one state dollar 
        for each dollar of nonstate money.  
        Priorities must be given for projects 
        involving multiple parties.  Up to 
        $20,000 each year may be used for 
        dissemination of information about the 
        demonstration grant projects.  If the 
        appropriation for either year is 
        insufficient, the appropriation for the 
        other is available. 
        $160,000 each year is for value-added 
        agricultural product processing and 
        marketing grants under Minnesota 
        Statutes, section 17.101, subdivision 5.
        $450,000 the first year and $300,000 
        the second year are for continued 
        research of solutions and alternatives 
        for manure management and odor 
        control.  This is a one-time 
        appropriation. 
        $50,000 the first year and $50,000 the 
        second year are for annual cost-share 
        payments to resident farmers for the 
        costs of organic certification.  The 
        annual cost-share payments per farmer 
        shall be two-thirds of the cost of the 
        certification or $200, whichever is 
        less.  A certified farmer is eligible 
        to receive annual certification 
        cost-share payments for up to five 
        years.  $15,000 each year is for 
        organic market and program 
        development.  This appropriation is 
        available until expended. 
        $30,000 the first year is to assess 
        producer production contracts under 
        section 205.  This appropriation is 
        available until June 30, 2001. 
           Sec. 36.  Laws 1999, chapter 231, section 14, is amended to 
        read: 
        Sec. 14.  AGRICULTURAL UTILIZATION
        RESEARCH INSTITUTE                    3,830,000      4,330,000
                      Summary by Fund
        General               3,630,000       4,130,000
        Special Revenue Agricultural        200,000       200,000 
        The agricultural utilization research 
        institute must collaborate with the 
        commissioner of agriculture on issues 
        of market development and technology 
        transfer. 
        $200,000 the first year and $200,000 
        the second year are for hybrid tree 
        management research and development of 
        an implementation plan for establishing 
        hybrid tree plantations in the state.  
        This appropriation is available to the 
        extent matched by $2 of nonstate 
        contributions, either cash or in kind, 
        for each $1 of state money. 
           Sec. 37.  [AGRICULTURAL STORAGE TANK REMOVAL; 
        REIMBURSEMENT.] 
           Subdivision 1.  [DEFINITION.] As used in this section, 
        "agricultural storage tank" means an underground petroleum 
        storage tank with a capacity of more than 1,100 gallons that has 
        been registered with the pollution control agency by January 1, 
        2000, and is located on a farm where the contents of the tank 
        are used by the tank owner or operator predominantly for farming 
        purposes and are not commercially distributed. 
           Subd. 2.  [REIMBURSEMENT.] Notwithstanding Minnesota 
        Statutes, section 115C.09, subdivision 1, paragraph (b), clause 
        (1), and pursuant to the remaining provisions of Minnesota 
        Statutes, chapter 115C, the petroleum tank release compensation 
        board shall reimburse an owner or operator of an agricultural 
        storage tank for 90 percent of the total reimbursable cost of 
        removal project costs incurred for the tank prior to January 1, 
        2001, including, but not limited to, tank removal, closure in 
        place, backfill, resurfacing, and utility restoration costs, 
        regardless of whether a release has occurred at the site.  
        Notwithstanding Minnesota Statutes, section 115C.09, subdivision 
        3, the board may not reimburse an eligible applicant under this 
        section for more than $7,500 of costs per tank. 
           Sec. 38.  [SMALL GASOLINE STORAGE TANK REMOVAL; 
        REIMBURSEMENT.] 
           Until June 30, 2001, the petroleum tank release 
        compensation board may reimburse a tank owner from the petroleum 
        tank release cleanup fund for 95 percent of the costs identified 
        in Minnesota Statutes 1998, section 115C.09, subdivision 3f, 
        paragraph (c), if the tank owner: 
           (1) owned two locations in the state, and no locations in 
        any other state, where motor fuel was dispensed to the public 
        into motor vehicles, watercraft, or aircraft and dispensed motor 
        fuel at that location; 
           (2) operated the tanks simultaneously for six months or 
        less in 1995; and 
           (3) dispensed less than 200,000 gallons at both locations. 
           Sec. 39.  [MINNEAPOLIS LEASE.] 
           A lease to the Minneapolis park and recreation board 
        entered into prior to or after the effective date of this 
        section pursuant to Laws 1999, chapter 231, section 5, 
        subdivision 5, shall be subject to Minnesota Statutes, section 
        85.34, except as provided in this section.  The approval of the 
        executive council shall not be required for the lease or the 
        issuance of a liquor license.  Only the operating costs, as 
        defined in the lease, to be paid by the Minneapolis park and 
        recreation board to the state shall be credited to the state 
        parks working capital account.  All base rent and percentage of 
        gross sales to be paid by the Minneapolis park and recreation 
        board to the state shall be credited to the general fund.  A 
        lease of any portion of officer's row or area J may include a 
        charge to be paid by the tenant for repayment of a portion of 
        the costs incurred by the Minneapolis park and recreation board 
        for the installation of a new water line on the upper bluff.  
        The total amount to be repaid to the Minneapolis park and 
        recreation board by tenants of officer's row and area J shall 
        not exceed $450,000. 
           Sec. 40.  [DEFINITIONS.] 
           Subdivision 1.  [APPLICABILITY.] For the purposes of 
        sections 40 to 43, the terms in this section have the meanings 
        given. 
           Subd. 2.  [AGRICULTURAL LAND.] "Agricultural land" means 
        land that is: 
           (1) composed of class I, II, or III land as identified in 
        the land capability classification system of the United States 
        Department of Agriculture; or 
           (2) similar to land described under a land classification 
        system selected by the board of water and soil resources. 
           Subd. 3.  [BOARD.] "Board" means the board of water and 
        soil resources. 
           Subd. 4.  [SHORT ROTATION WOODY CROPS.] "Short rotation 
        woody crops" means hybrid poplar and other woody plants that are 
        harvested for their fiber within 15 years of planting. 
           Subd. 5.  [WINDBREAK.] "Windbreak" means a strip or belt of 
        trees, shrubs, or grass barriers designed and located to reduce 
        snow deposition on highways, improve wildlife habitat or control 
        soil erosion. 
           Sec. 41.  [ELIGIBILITY TERMS.] 
           (a) Agricultural land eligible for the board's program 
        under section 42 must not exceed 160 acres for individual 
        landowners. 
           (b) Agricultural land eligible for payment in fiscal year 
        2000 must have been in a county under presidential disaster 
        declaration in either 1998 or 1999.  In fiscal years 2001 and 
        thereafter, payment is available for eligible agricultural land 
        in any county under a presidential disaster declaration related 
        to agriculture.  
           (c) Eligible land may be set aside for payment under 
        section 42 for a period of three years. 
           (d) At least five percent of an individual's acreage set 
        aside for payments under this program must be planted with short 
        rotation woody crops or windbreaks.  Short rotation woody crops 
        and windbreaks may not be planted within one-quarter of a mile 
        of a state or federally protected prairie.  Plantings on each 
        acre may be consistent with an organic farming plan developed 
        under the supervision of an approved organic certification 
        organization and must be in compliance with a conservation plan 
        approved by the local soil and water conservation district and 
        seeded to a vegetative cover at the earliest practicable time. 
           (e) Land enrolled in the federal conservation reserve 
        program under Public Law Number 99-198, as amended, is not 
        eligible for enrollment under sections 40 to 43. 
           Sec. 42.  [PAYMENTS.] 
           To the extent appropriated money is available for this 
        purpose, annual payments for eligible land under section 41 that 
        is set aside by the board must be based on the soil rental rates 
        established under the federal conservation reserve program 
        contained in Public Law Number 99-198.  An additional annual 
        payment of $5 per acre may be paid for acreage maintenance. 
           Payments for conservation plan implementation must be 
        consistent with Minnesota Statutes, section 103C.501. 
           Sec. 43.  [ADMINISTRATION.] 
           The land payment program in sections 41 and 42 must be 
        administered by soil and water conservation districts under 
        guidelines and grants by the board. 
           Sec. 44.  [REPEALER.] 
           Section 20 of H.F. No. 3046 of the 2000 regular session, if 
        enacted, is repealed. 
           Sec. 45.  [EFFECTIVE DATE.] 
           Section 10 is effective the day following final enactment 
        and applies to claims for corrective action costs incurred after 
        that date.  Sections 11 and 35 are effective retroactive to July 
        1, 1999.  The remainder of this article is effective the day 
        following final enactment. 

                                   ARTICLE 4 
                                 APPROPRIATIONS 
        Section 1.  [CRIMINAL JUSTICE APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another fund named, to 
        the agencies and for the purposes specified in this article, to 
        be available for the fiscal years indicated for each purpose.  
        The figures "2000" and "2001" where used in this article, mean 
        that the appropriation or appropriations listed under them are 
        available for the year ending June 30, 2000, or June 30, 2001, 
        respectively. 
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2000         2001 
        Sec. 2.  SUPREME COURT                   -0-              4,000
        $4,000 is a one-time appropriation to 
        conduct a one-half day judicial seminar 
        on parenting plans. 
        Sec. 3.  COURT OF APPEALS                -0-            200,000
        $200,000 is to restore legal/judicial 
        support services. 
        Sec. 4.  DISTRICT COURT                  -0-          2,879,000
        $2,670,000 is to reduce judge unit 
        vacancies and restore judicial branch 
        infrastructure funding.  The salaries 
        for judges that may be paid from this 
        appropriation are only those approved 
        by Laws 1997, Second Special Session 
        chapter 3, section 16. 
        $130,000 is a one-time appropriation to 
        continue the community court in the 
        second judicial district. 
        $79,000 is a one-time appropriation for 
        extraordinary prosecution costs in 
        Carlton county. 
        Sec. 5.  PUBLIC SAFETY
        Subdivision 1.  Total 
        Appropriation                         3,813,000       2,711,000
                      Summary by Fund
        General               3,813,000       825,000
        Special Revenue          -0-        1,886,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Driver and Vehicle
        Services
                -0-              20,000
        $20,000 is a one-time appropriation for 
        costs related to the recodification of 
        the driving while impaired laws, if 
        S.F. No. 2677 is enacted. 
        Subd. 3.  Emergency Management 
              3,813,000         -0-  
        $3,813,000 is for the state match of 
        federal disaster assistance money under 
        Minnesota Statutes, section 12.221.  
        This appropriation is available to fund 
        state obligations incurred through the 
        receipt of federal disaster assistance 
        grants and is added to the 
        appropriation in Laws 1999, chapter 
        216, article 1, section 7, subdivision 
        2. 
        Subd. 4.  Criminal Apprehension 
                -0-           225,000
        $200,000 is a one-time appropriation 
        for overtime costs. 
        $25,000 is a one-time appropriation to 
        develop and conduct the court security 
        training program described in article 
        5, section 10. 
        Subd. 5.  Law Enforcement and  
        Community Grants 
                      Summary by Fund
        General                 -0-           430,000
        Special Revenue         -0-         1,886,000
        $150,000 is a one-time appropriation 
        for juvenile prostitution law 
        enforcement and officer training grants 
        under Minnesota Statutes, section 
        299A.71. 
        $250,000 is a one-time appropriation 
        for a grant to the Ramsey county 
        attorney's office to establish and fund 
        the joint domestic abuse prosecution 
        unit described in article 6, section 10.
        $30,000 is a one-time appropriation for 
        grants under Minnesota Statutes, 
        section 299A.62, to local law 
        enforcement agencies or regional jails 
        for the purchase of dogs trained to 
        detect or locate controlled substances 
        by scent.  Grants are limited to one 
        dog per agency.  Local law enforcement 
        agencies that previously received a 
        grant under Laws 1999, chapter 216, 
        article 1, section 7, subdivision 6, 
        are ineligible for a grant. * (The 
        preceding text beginning "$30,000 is a 
        one-time appropriation" was indicated 
        as vetoed by the governor. 
        $1,886,000 is for the automobile theft 
        prevention program described in 
        Minnesota Statutes, section 299A.75.  
        This is a one-time appropriation from 
        the automobile theft prevention account 
        in the special revenue fund.  The 
        commissioner may not spend any money 
        the commissioner receives from 
        surcharges in fiscal year 2001, in 
        excess of this appropriation unless the 
        legislature approves of the spending. 
        Subd. 6.  Drug Policy and    
        Violence Prevention
                -0-           150,000
        $150,000 is a one-time appropriation 
        for distribution as matching funds to 
        counties participating in 
        multijurisdictional narcotics task 
        forces that receive federal Byrne grant 
        funds.  These matching funds are 
        available statewide to any county 
        currently participating in a task 
        force, any county seeking to join an 
        existing task force, and any county 
        starting its own task force.  These 
        matching funds may be used to enhance 
        enforcement of drug laws by training 
        and educating law enforcement personnel 
        and other interested members of the 
        community. 
        Sec. 6.  CENTER FOR  
        CRIME VICTIM SERVICES                     -0-         1,240,000
        $1,200,000 is a one-time appropriation 
        for per diem payments for battered 
        women shelter facilities incurred 
        during the administrative transfer of 
        responsibility for these payments from 
        the department of human services to the 
        department of public safety.  Any 
        portion of this appropriation that is 
        not expended for payments incurred 
        before July 1, 2000, may be transferred 
        to the department's fiscal year 2001 
        appropriation for the per diem 
        program.  The department of public 
        safety's liability for battered women 
        shelter per diem payments that are 
        incurred through June 30, 2000, and are 
        not paid by the department of human 
        services extends only to this 
        appropriation.  The department shall 
        process payments in the order in which 
        they are received until this 
        appropriation is completely expended.  
        No part of the department's fiscal year 
        2001 per diem program appropriation or 
        any other funding may be used for 
        program expenses incurred before July 
        1, 2000. 
        $40,000 is a one-time appropriation for 
        a grant to the center for applied 
        research and policy analysis at 
        Metropolitan state university for the 
        domestic violence shelter study 
        described in article 6, section 11. 
        Sec. 7.  CORRECTIONS                     -0-           2,250,000
        $1,750,000 is a one-time appropriation 
        for a grant or grants to counties, 
        groups of counties, or a county or 
        group of counties and a tribal 
        government, for up to 30 percent of the 
        construction cost of adult regional 
        detention facilities. * (The preceding 
        text beginning "$1,750,000 is a 
        one-time appropriation" was indicated 
        as vetoed by the governor.) 
        $500,000 is a one-time appropriation 
        for predesign of a joint headquarters 
        building for the department of 
        corrections and the department of 
        public safety. 
        The commissioner shall predesign a 
        vocational building at Minnesota 
        correctional facility-St. Cloud. 
        The fiscal year 2001 general fund 
        appropriation for juvenile residential 
        treatment grants in Laws 1999, chapter 
        216, article 1, section 13, subdivision 
        4, is reduced by $1,942,000.  This is a 
        one-time reduction. 
        Sec. 8.  AUTOMOBILE THEFT PREVENTION 
        BOARD 
        The fiscal year 2000 transfer from the 
        automobile theft prevention account in 
        the special revenue fund to the 
        commissioner of public safety in Laws 
        1999, chapter 216, article 1, section 
        18, is reduced by $100,000. 
        By June 30, 2000, the commissioner of 
        finance shall transfer the available 
        unencumbered balance from the 
        automobile theft prevention account in 
        the special revenue fund to the general 
        fund.  Minnesota Statutes, section 
        168A.40, subdivision 4, does not apply 
        to money transferred to the general 
        fund under this paragraph. 
        Sec. 9.  SENTENCING         
        GUIDELINES COMMISSION                   -0-              20,000
        $20,000 is a one-time appropriation for 
        salary increases. 
        Sec. 10.  MINNESOTA SAFETY   
        COUNCIL                                 -0-             200,000
        $200,000 is a one-time appropriation 
        for the crosswalk safety awareness 
        program described in article 6, section 
        9. 
        Sec. 11.  UNIVERSITY OF                  -0-             20,000
        MINNESOTA
        $20,000 is a one-time appropriation to 
        cover the cost of updating the parent 
        education curriculum. 
           Sec. 12.  Laws 1999, chapter 216, article 1, section 7, 
        subdivision 6, is amended to read: 
        Subd. 6.  Law Enforcement and Community Grants
            10,290,000      7,583,000 
        $1,000,000 the first year is for grants 
        to pay the costs of developing or 
        implementing a criminal justice 
        information integration plan as 
        described in Minnesota Statutes, 
        section 299C.65, subdivision 6 or 7.  
        The commissioner shall make a minimum 
        of two grants from this appropriation. 
        This is a one-time appropriation. 
        The commissioner of public safety shall 
        consider using a portion of federal 
        Byrne grant funds for costs related to 
        developing or implementing a criminal 
        justice information system integration 
        plan as described in Minnesota 
        Statutes, section 299C.65, subdivision 
        6 or 7. 
        $400,000 the first year is for a grant 
        to the city of Marshall to construct, 
        furnish, and equip a regional emergency 
        response training center.  The balance, 
        if any, does not cancel but is 
        available for the fiscal year ending 
        June 30, 2001. 
        $10,000 the first year is for the 
        commissioner of public safety to 
        reconvene the task force that developed 
        the statewide master plan for fire and 
        law enforcement training facilities 
        under Laws 1998, chapter 404, section 
        21, subdivision 3, for the purpose of 
        developing specific recommendations 
        concerning the siting, financing and 
        use of these training facilities.  The 
        commissioner's report shall include 
        detailed recommendations concerning the 
        following issues: 
        (1) the specific cities, counties, or 
        regions of the state where training 
        facilities should be located; 
        (2) the reasons why a training facility 
        should be sited in the recommended 
        location, including a description of 
        the public safety training needs in 
        that part of the state; 
        (3) the extent to which neighboring 
        cities and counties should be required 
        to collaborate in funding and operating 
        the recommended training facilities; 
        (4) an appropriate amount for a local 
        funding match (up to 50 percent) for 
        cities and counties using the training 
        facility to contribute in money or 
        other resources to build, expand, or 
        operate the facility; 
        (5) the feasibility of providing 
        training at one or more of the 
        recommended facilities for both law 
        enforcement and fire safety personnel; 
        (6) whether the regional or statewide 
        need for increased public safety 
        training resources can be met through 
        the expansion of existing training 
        facilities rather than the creation of 
        new facilities and, if so, which 
        facilities should be expanded; and 
        (7) any other issues the task force 
        deems relevant. 
        By January 15, 2000, the commissioner 
        shall submit the report to the chairs 
        and ranking minority members of the 
        house and senate committees and 
        divisions with jurisdiction over 
        capital investment issues and criminal 
        justice funding and policy. 
        $746,000 the first year and $766,000 
        the second year are for personnel and 
        administrative costs for the criminal 
        gang oversight council and strike force 
        described in Minnesota Statutes, 
        section 299A.64. 
        $1,171,000 the first year and 
        $2,412,000 are for the grants 
        authorized under Minnesota Statutes, 
        section 299A.66, subdivisions 1 and 2.  
        Of this appropriation, $1,595,000 each 
        year shall be included in the 2002-2003 
        biennial base budget. 
        By January 15, 2000, the criminal gang 
        oversight council shall submit a report 
        to the chairs and ranking minority 
        members of the senate and house 
        committees and divisions with 
        jurisdiction over criminal justice 
        funding and policy describing the 
        following: 
        (1) the types of crimes on which the 
        oversight council and strike force have 
        primarily focused their investigative 
        efforts since their inception; 
        (2) a detailed accounting of how the 
        oversight council and strike force have 
        spent all funds and donations they have 
        received since their inception, 
        including donations of goods and 
        services; 
        (3) the extent to which the activities 
        of the oversight council and strike 
        force overlap or duplicate the 
        activities of the fugitive task force 
        or the activities of any federal, 
        state, or local task forces that 
        investigate interjurisdictional 
        criminal activity; and 
        (4) the long-term goals that the 
        criminal gang oversight council and 
        strike force hope to achieve. 
        The commissioner of public safety shall 
        consider using a portion of federal 
        Byrne grant funds for criminal gang 
        prevention and intervention activities 
        to (1) help gang members separate 
        themselves, or remain separated, from 
        gangs; and (2) prevent individuals from 
        becoming affiliated with gangs. 
        $50,000 the first year is for a grant 
        to the Minnesota Safety Council to 
        continue the crosswalk safety awareness 
        campaign.  The Minnesota Safety Council 
        shall work with the department of 
        transportation to develop a long range 
        plan to continue the crosswalk safety 
        awareness campaign. 
        $500,000 the first year is for grants 
        under Minnesota Statutes, section 
        299A.62, subdivision 1. These grants 
        shall be distributed as provided in 
        Minnesota Statutes, section 299A.62, 
        subdivision 2.  This is a one-time 
        appropriation. 
        Up to $30,000 of the appropriation for 
        grants under Minnesota Statutes, 
        section 299A.62, is for grants to 
        requesting local law enforcement 
        agencies to purchase dogs trained to 
        detect or locate controlled substances 
        by scent.  Grants are limited to one 
        dog per county. 
        $50,000 the first year and $50,000 the 
        second year are for grants to the 
        northwest Hennepin human services 
        council to administer the northwest 
        community law enforcement project, to 
        be available until June 30, 2001.  This 
        is a one-time appropriation. 
        $30,000 the first year is to assist 
        volunteer ambulance services, licensed 
        under Minnesota Statutes, chapter 144E, 
        in purchasing automatic external 
        defibrillators.  Ambulance services are 
        eligible for a grant under this 
        provision if they do not already 
        possess an automatic external 
        defibrillator and if they provide a 25 
        percent match in nonstate funds.  This 
        is a one-time appropriation. 
        $50,000 the first year and $50,000 the 
        second year are for grants under 
        Minnesota Statutes, section 119A.31, 
        subdivision 1, clause (12), to 
        organizations that focus on 
        intervention and prevention of teenage 
        prostitution. 
        The commissioner of public safety shall 
        administer a program to distribute tire 
        deflators to local or state law 
        enforcement agencies selected by the 
        commissioner of public safety and to 
        distribute or otherwise make available 
        a computer-controlled driving simulator 
        to local or state law enforcement 
        agencies or POST-certified skills 
        programs selected by the commissioner 
        of public safety. 
        Before any decisions are made on which 
        law enforcement agencies will receive 
        tire deflators or the driving 
        simulator, a committee consisting of a 
        representative from the Minnesota 
        chiefs of police association, a 
        representative from the Minnesota 
        sheriffs association, a representative 
        from the state patrol, and a 
        representative from the Minnesota 
        police and peace officers association 
        shall evaluate the applications.  The 
        commissioner shall consult with the 
        committee concerning its evaluation and 
        recommendations on distribution 
        proposals prior to making a final 
        decision on distribution.  
        Law enforcement agencies that receive 
        tire deflators under this section 
        must:  (i) provide any necessary 
        training to their employees concerning 
        use of the tire deflators; (ii) compile 
        statistics on use of the tire deflators 
        and the results; (iii) provide a 
        one-to-one match in nonstate funds; and 
        (iv) report this information to the 
        commissioner as required. 
        Law enforcement agencies or 
        POST-certified skills programs that 
        receive a computer-controlled driving 
        simulator under this section must: 
        (1) provide necessary training to their 
        employees in emergency vehicle 
        operations and in the conduct of police 
        pursuits; 
        (2) provide a five-year plan for 
        maintaining the hardware necessary to 
        operate the driving simulator; 
        (3) provide a five-year plan to update 
        software necessary to operate the 
        driving simulator; 
        (4) provide a plan to make the driving 
        simulator available at a reasonable 
        cost and with reasonable availability 
        to other law enforcement agencies to 
        train their officers; and 
        (5) provide an estimate of the 
        availability of the driving simulator 
        for use by other law enforcement 
        agencies. 
        By January 15, 2001, the commissioner 
        shall report to the chairs and ranking 
        minority members of the house and 
        senate committees and divisions having 
        jurisdiction over criminal justice 
        matters on the tire deflators and the 
        driving simulator distributed under 
        this section. 
        $285,000 the first year is for a 
        one-time grant to the city of 
        Minneapolis to implement a coordinated 
        criminal justice system response to the 
        CODEFOR (Computer Optimized 
        Development-Focus on Results) law 
        enforcement strategy.  This 
        appropriation is available until 
        expended. 
        $795,000 the first year is for a 
        one-time grant to Hennepin county to 
        implement a coordinated criminal 
        justice system response to the CODEFOR 
        (Computer Optimized Development-Focus 
        on Results) law enforcement strategy.  
        This appropriation is available until 
        expended. 
        $420,000 the first year is for a 
        one-time grant to the fourth judicial 
        district public defender's office to 
        accommodate the CODEFOR (Computer 
        Optimized Development-Focus on Results) 
        law enforcement strategy.  This 
        appropriation is available until 
        expended. 
        $150,000 the first year and $150,000 
        the second year are for weed and seed 
        grants under Minnesota Statutes, 
        section 299A.63.  Money not expended 
        the first year is available for grants 
        during the second year.  This is a 
        one-time appropriation. 
        $200,000 each year is a one-time 
        appropriation for a grant to the center 
        for reducing rural violence to continue 
        the technical assistance and related 
        rural violence prevention services the 
        center offers to rural communities.  
        $500,000 the first year and $500,000 
        the second year are to operate the 
        weekend camp program at Camp Ripley 
        described in Laws 1997, chapter 239, 
        article 1, section 12, subdivision 3, 
        as amended by Laws 1998, chapter 367, 
        article 10, section 13.  The powers and 
        duties of the department of corrections 
        with respect to the weekend program are 
        transferred to the department of public 
        safety under Minnesota Statutes, 
        section 15.039.  The commissioner shall 
        attempt to expand the program to serve 
        500 juveniles per year within this 
        appropriation. 
        An additional $125,000 the first year 
        and $125,000 the second year are for 
        the weekend camp program at Camp Ripley.
        $500,000 the first year and $500,000 
        the second year are for Asian-American 
        juvenile crime intervention and 
        prevention grants under Minnesota 
        Statutes, section 256.486.  The powers 
        and duties of the department of human 
        services, with respect to that program, 
        are transferred to the department of 
        public safety under Minnesota Statutes, 
        section 15.039.  This is a one-time 
        appropriation. 
           Sec. 13.  Laws 1999, chapter 216, article 1, section 18, is 
        amended to read: 
        Sec. 18.  AUTOMOBILE THEFT PREVENTION 
        BOARD                                  2,277,000      1,886,000 
                                                                  -0-
        This appropriation is from the 
        automobile theft prevention account in 
        the special revenue fund. 
        Of this appropriation, up to $400,000 
        the first year is transferred to the 
        commissioner of public safety for the 
        purchase and distribution of tire 
        deflators to local or state law 
        enforcement agencies and for the 
        purchase of a computer-controlled 
        driving simulator.  Any amount not 
        spent by the commissioner of public 
        safety for this purpose shall be 
        returned to the automobile theft 
        prevention account in the special 
        revenue fund and may be used for other 
        automobile theft prevention activities. 
        The automobile theft prevention board 
        may not spend any money it receives 
        from surcharges in the fiscal year 
        2000-2001 biennium, unless the 
        legislature approves the spending. 
        The executive director of the 
        automobile theft prevention board may 
        not sit on the automobile theft 
        prevention board. 
           Sec. 14.  Laws 1999, chapter 216, article 1, section 14, is 
        amended to read: 
        Sec. 14.  CORRECTIONS OMBUDSMAN          470,000 400,000 310,000
        If the reduction in the base level 
        funding causes a reduction in the 
        number of employees, then the 
        commissioner of corrections and 
        commissioner of public safety shall 
        make reasonable efforts to transfer the 
        affected employees to positions within 
        the department of corrections or 
        department of public safety.  
           Sec. 15.  Laws 1999, chapter 216, article 1, section 9, is 
        amended to read: 
        Sec. 9.  CRIME VICTIM 
        OMBUDSMAN                                404,000 389,000 379,000 
        $20,000 the first year is for the crime 
        victims case management system. 

                                   ARTICLE 5 
                                     COURTS 
           Section 1.  Minnesota Statutes 1998, section 169.89, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PETTY MISDEMEANOR PENALTY; NO JURY TRIAL.] A 
        person charged with a petty misdemeanor is not entitled to a 
        jury trial but shall be tried by a judge without a jury.  If 
        convicted, the person is not subject to imprisonment but shall 
        be punished by a fine of not more than $200 $300. 
           Sec. 2.  Minnesota Statutes 1998, section 609.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [MISDEMEANOR.] "Misdemeanor" means a crime for 
        which a sentence of not more than 90 days or a fine of not more 
        than $700 $1,000, or both, may be imposed. 
           Sec. 3.  Minnesota Statutes 1998, section 609.02, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [PETTY MISDEMEANOR.] "Petty misdemeanor" means a 
        petty offense which is prohibited by statute, which does not 
        constitute a crime and for which a sentence of a fine of not 
        more than $200 $300 may be imposed. 
           Sec. 4.  Minnesota Statutes 1998, section 609.03, is 
        amended to read: 
           609.03 [PUNISHMENT WHEN NOT OTHERWISE FIXED.] 
           If a person is convicted of a crime for which no punishment 
        is otherwise provided the person may be sentenced as follows: 
           (1) If the crime is a felony, to imprisonment for not more 
        than five years or to payment of a fine of not more than 
        $10,000, or both; or 
           (2) If the crime is a gross misdemeanor, to imprisonment 
        for not more than one year or to payment of a fine of not more 
        than $3,000, or both; or 
           (3) If the crime is a misdemeanor, to imprisonment for not 
        more than 90 days or to payment of a fine of not more than 
        $700 $1,000, or both; or 
           (4) If the crime is other than a misdemeanor and a fine is 
        imposed but the amount is not specified, to payment of a fine of 
        not more than $1,000, or to imprisonment for a specified term of 
        not more than six months if the fine is not paid. 
           Sec. 5.  Minnesota Statutes 1998, section 609.033, is 
        amended to read: 
           609.033 [INCREASED MAXIMUM PENALTIES FOR MISDEMEANORS.] 
           Any law of this state which provides for a maximum fine of 
        $500 $700 as a penalty for a violation misdemeanor shall, on or 
        after August 1, 1983 2000, be deemed to provide for a maximum 
        fine of $700 $1,000.  
           Sec. 6.  Minnesota Statutes 1998, section 609.0331, is 
        amended to read: 
           609.0331 [INCREASED MAXIMUM PENALTIES FOR PETTY 
        MISDEMEANORS.] 
           A law of this state that provides, on or after August 1, 
        1987 2000, for a maximum penalty of $100 $200 for a petty 
        misdemeanor is considered to provide for a maximum fine 
        of $200 $300.  
           Sec. 7.  Minnesota Statutes 1998, section 609.0332, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INCREASED FINE.] From August 1, 1987 2000, 
        if a state law or municipal charter sets a limit of $100 $200 or 
        less on the fines that a statutory or home rule charter city, 
        town, county, or other political subdivision may prescribe for 
        an ordinance violation that is defined as a petty misdemeanor, 
        that law or charter is considered to provide that the political 
        subdivision has the power to prescribe a maximum fine of $200 
        $300 for the petty misdemeanor violation. 
           Sec. 8.  Minnesota Statutes 1998, section 609.034, is 
        amended to read: 
           609.034 [INCREASED MAXIMUM PENALTY FOR ORDINANCE 
        VIOLATIONS.] 
           Any law of this state or municipal charter which limits the 
        power of any statutory or home rule charter city, town, county, 
        or other political subdivision to prescribe a maximum fine of 
        $500 $700 or less for an ordinance shall on or after August 1, 
        1983 2000, be deemed to provide that the statutory or home rule 
        charter city, town, county, or other political subdivision has 
        the power to prescribe a maximum fine of $700 $1,000.  
           Sec. 9.  [AUTOMATED VICTIM NOTIFICATION SYSTEM.] 
           All courts and state and local correctional facilities 
        shall consider implementing an automated victim notification 
        system.  The commissioner of public safety, in cooperation with 
        the commissioners of children, families, and learning; 
        corrections; and economic security; shall provide financial 
        assistance to implement these systems.  The commissioners shall 
        determine the extent of the financial assistance and the manner 
        in which it will be provided.  Participating local governments 
        shall provide a cash or in-kind match as determined by the 
        commissioner of public safety. 
           Sec. 10.  [COURT SECURITY TRAINING PROGRAM.] 
           The superintendent of the bureau of criminal apprehension 
        shall develop and implement a training program for court and law 
        enforcement personnel.  The training program must: 
           (1) include methods to increase security within court 
        houses and surrounding property; 
           (2) focus on protecting judges, court employees, members of 
        the public, and participants in the legal process; and 
           (3) allow individuals who receive it to, in turn, 
        effectively train others. 
           Sec. 11.  [EFFECTIVE DATE.] 
           Sections 1 to 8 are effective August 1, 2000, and apply to 
        violations committed on or after that date. 

                                   ARTICLE 6
                                 PUBLIC SAFETY 
           Section 1.  Minnesota Statutes 1998, section 168A.40, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SURCHARGE.] Each insurer engaged in the writing 
        of policies of automobile insurance shall collect a surcharge, 
        at the rate of 50 cents per vehicle for every six months of 
        coverage, on each policy of automobile insurance providing 
        comprehensive insurance coverage issued or renewed in this 
        state.  The surcharge may not be considered premium for any 
        purpose, including the computation of premium tax or agents' 
        commissions.  The amount of the surcharge must be separately 
        stated on either a billing or policy declaration sent to an 
        insured.  Insurers shall remit the revenue derived from this 
        surcharge at least quarterly to the board commissioner of public 
        safety for purposes of the automobile theft prevention 
        program described in section 299A.75.  For purposes of this 
        subdivision, "policy of automobile insurance" has the meaning 
        given it in section 65B.14, covering only the following types of 
        vehicles as defined in section 168.011: 
           (1) a passenger automobile; 
           (2) a pick-up truck; 
           (3) a van but not commuter vans as defined in section 
        168.126; or 
           (4) a motorcycle, 
           except that no vehicle with a gross vehicle weight in 
        excess of 10,000 pounds is included within this definition. 
           Sec. 2.  Minnesota Statutes 1998, section 168A.40, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AUTOMOBILE THEFT PREVENTION ACCOUNT.] A special 
        revenue account is created in the state treasury to be credited 
        with the proceeds of the surcharge imposed under subdivision 3.  
        Revenue in the account may be used only for the automobile theft 
        prevention program described in section 299A.75.  The board may 
        not spend in any fiscal year more than ten percent of the money 
        in the fund for its administrative and operating costs. 
           Sec. 3.  Minnesota Statutes 1998, section 169.21, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RIGHTS IN ABSENCE OF SIGNAL.] (a) Where 
        traffic-control signals are not in place or in operation, the 
        driver of a vehicle shall stop to yield the right-of-way to a 
        pedestrian crossing the roadway within a marked crosswalk or 
        within any crosswalk at an intersection but with no marked 
        crosswalk.  The driver must remain stopped until the pedestrian 
        has passed the lane in which the vehicle is stopped.  No 
        pedestrian shall suddenly leave a curb or other place of safety 
        and walk or run into the path of a vehicle which is so close 
        that it is impossible for the driver to yield.  This provision 
        shall not apply under the conditions as otherwise provided in 
        this subdivision. 
           (b) When any vehicle is stopped at a marked crosswalk or at 
        any unmarked crosswalk at an intersection with no marked 
        crosswalk to permit a pedestrian to cross the roadway, the 
        driver of any other vehicle approaching from the rear shall not 
        overtake and pass the stopped vehicle. 
           (c) It is unlawful for any person to drive a motor vehicle 
        through a column of school children crossing a street or highway 
        or past a member of a school safety patrol or adult crossing 
        guard, while the member of the school safety patrol or adult 
        crossing guard is directing the movement of children across a 
        street or highway and while the school safety patrol member or 
        adult crossing guard is holding an official signal in the stop 
        position.  A peace officer may arrest the driver of a motor 
        vehicle if the peace officer has probable cause to believe that 
        the driver has operated the vehicle in violation of this 
        paragraph within the past four hours.  
           (d) A person who violates this subdivision is guilty of a 
        misdemeanor and may be sentenced to imprisonment for not more 
        than 90 days or to payment of a fine of not more than $700, or 
        both.  A person who violates this subdivision a second or 
        subsequent time within one year of a previous conviction under 
        this subdivision is guilty of a gross misdemeanor and may be 
        sentenced to imprisonment for not more than one year or to 
        payment of a fine of not more than $3,000, or both. 
           Sec. 4.  Minnesota Statutes 1998, section 169.21, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CROSSING BETWEEN INTERSECTIONS.] Every 
        pedestrian crossing a roadway at any point other than within a 
        marked crosswalk or within an unmarked crosswalk at an 
        intersection with no marked crosswalk shall yield the 
        right-of-way to all vehicles upon the roadway. 
           Any pedestrian crossing a roadway at a point where a 
        pedestrian tunnel or overhead pedestrian crossing has been 
        provided shall yield the right-of-way to all vehicles upon the 
        roadway. 
           Between adjacent intersections at which traffic-control 
        signals are in operation pedestrians shall not cross at any 
        place except in a marked crosswalk. 
           Notwithstanding the other provisions of this section every 
        driver of a vehicle shall:  (a) exercise due care to avoid 
        colliding with any bicycle or pedestrian upon any roadway and 
        (b) give an audible signal when necessary and exercise proper 
        precaution upon observing any child or any obviously confused or 
        incapacitated person upon a roadway. 
           Sec. 5.  [169.2151] [PEDESTRIAN SAFETY CROSSINGS.] 
           A local road authority may provide by ordinance for the 
        designation of pedestrian safety crossings on highways under the 
        road authority's jurisdiction where pedestrian safety 
        considerations require extra time for pedestrian crossing in 
        addition to the time recommended under the Minnesota manual of 
        uniform traffic control devices for pedestrian signals.  The 
        ordinance may provide for timing of pedestrian signals for such 
        crossings, consistent with the recommendations of the uniform 
        manual for pedestrian signal timing at senior citizen and 
        handicapped pedestrian crossings.  Cities other than cities of 
        the first class may designate a pedestrian safety crossing only 
        with the approval of the road authority having jurisdiction over 
        the crossing.  The authority of local road authorities to 
        determine pedestrian signal timing under this section is in 
        addition to any other control exercised by local road 
        authorities over the timing of pedestrian signals. 
           Sec. 6.  [299A.71] [JUVENILE PROSTITUTION LAW ENFORCEMENT 
        AND OFFICER TRAINING GRANTS.] 
           Subdivision 1.  [ESTABLISHMENT.] A grant program is 
        established for enhanced law enforcement efforts and peace 
        officer education and training to combat juvenile prostitution.  
        The goal of the grants is to provide peace officers with the 
        knowledge and skills to recognize individuals who sexually 
        exploit youth, charge and prosecute these individuals for 
        promotion and solicitation of prostitution, and effectively 
        communicate with the victims of juvenile prostitution. 
           Subd. 2.  [ELIGIBILITY.] The commissioner of public safety 
        shall make juvenile prostitution prevention grants to local law 
        enforcement agencies to provide enhanced efforts targeted to 
        juvenile prostitution and training and staff development 
        relating to the prevention of juvenile prostitution.  The law 
        enforcement agency must utilize all of the grant funding 
        received for efforts to combat juvenile prostitution. 
           Subd. 3.  [GRANT APPLICATION.] A local law enforcement 
        agency must submit an application to the commissioner of public 
        safety in the form and manner the commissioner establishes. 
           Sec. 7.  [299A.75] [AUTOMOBILE THEFT PREVENTION PROGRAM.] 
           Subdivision 1.  [PROGRAM DESCRIBED.] (a) The commissioner 
        of public safety shall: 
           (1) develop and sponsor the implementation of statewide 
        plans, programs, and strategies to combat automobile theft, 
        improve the administration of the automobile theft laws, and 
        provide a forum for identification of critical problems for 
        those persons dealing with automobile theft; 
           (2) coordinate the development, adoption, and 
        implementation of plans, programs, and strategies relating to 
        interagency and intergovernmental cooperation with respect to 
        automobile theft enforcement; 
           (3) annually audit the plans and programs that have been 
        funded in whole or in part to evaluate the effectiveness of the 
        plans and programs and withdraw funding should the commissioner 
        determine that a plan or program is ineffective or is no longer 
        in need of further financial support from the fund; 
           (4) develop a plan of operation including an assessment of 
        the scope of the problem of automobile theft, including areas of 
        the state where the problem is greatest; an analysis of various 
        methods of combating the problem of automobile theft; a plan for 
        providing financial support to combat automobile theft; a plan 
        for eliminating car hijacking; and an estimate of the funds 
        required to implement the plan; and 
           (5) distribute money from the automobile theft prevention 
        special revenue account for automobile theft prevention 
        activities, including: 
           (i) paying the administrative costs of the program; 
           (ii) providing financial support to the state patrol and 
        local law enforcement agencies for automobile theft enforcement 
        teams; 
           (iii) providing financial support to state or local law 
        enforcement agencies for programs designed to reduce the 
        incidence of automobile theft and for improved equipment and 
        techniques for responding to automobile thefts; 
           (iv) providing financial support to local prosecutors for 
        programs designed to reduce the incidence of automobile theft; 
           (v) providing financial support to judicial agencies for 
        programs designed to reduce the incidence of automobile theft; 
           (vi) providing financial support for neighborhood or 
        community organizations or business organizations for programs 
        designed to reduce the incidence of automobile theft; 
           (vii) providing financial support for automobile theft 
        educational and training programs for state and local law 
        enforcement officials, driver and vehicle services exam and 
        inspections staff, and members of the judiciary; and 
           (viii) conducting educational programs designed to inform 
        automobile owners of methods of preventing automobile theft and 
        to provide equipment, for experimental purposes, to enable 
        automobile owners to prevent automobile theft. 
           (b) The commissioner may not spend in any fiscal year more 
        than ten percent of the money in the fund for the program's 
        administrative and operating costs. 
           Subd. 2.  [ANNUAL REPORT.] By January 15 of each year, the 
        commissioner shall report to the governor and legislature on the 
        activities and expenditures in the preceding year. 
           Sec. 8.  [299E.03] [CAPITOL COMPLEX SECURITY OVERSIGHT 
        COMMITTEE.] 
           Subdivision 1.  [MEMBERSHIP.] (a) The capitol complex 
        security oversight committee consists of the following 
        individuals or their designees: 
           (1) the senate majority leader; 
           (2) the speaker of the house of representatives; 
           (3) the chief justice of the supreme court; 
           (4) the chair of the senate committee or division having 
        jurisdiction over criminal justice funding; 
           (5) the chair of the house of representatives committee or 
        division having jurisdiction over criminal justice funding; 
           (6) the commissioner of public safety; 
           (7) the commissioner of administration; 
           (8) the senate sergeant at arms; 
           (9) the house of representatives' sergeant at arms; 
           (10) the chief of the St. Paul police department; 
           (11) the president of a statewide association representing 
        government relations professionals; 
           (12) the director of the capitol complex security division; 
        and 
           (13) the chief supervisor of the state patrol. 
           (b) The committee may elect a chair from among its members. 
           Subd. 2.  [DUTIES.] The oversight committee shall: 
           (1) develop both a short-term and a long-term plan relating 
        to the provision of security in the capitol complex and in other 
        state-owned or leased buildings and property, including 
        providing necessary security to the following:  legislators, 
        constitutional officers, members of the judiciary, commissioners 
        of state agencies, state employees, visiting dignitaries, and 
        members of the public; 
           (2) develop guidelines that may be used to evaluate the 
        methods by which this security is provided; 
           (3) evaluate the budget for providing this security and 
        make annual budgetary recommendations to the legislature; and 
           (4) provide oversight to the entity providing capitol area 
        security and annually report to the legislature on the entity's 
        effectiveness. 
        The plans described in clause (1) must consider potential 
        shifting needs for security and the impact of new security 
        technology. 
           Subd. 3.  [EXPIRATION AND COMPENSATION.] Notwithstanding 
        section 15.059, the oversight committee does not expire.  
        Committee members may not receive compensation for serving, but 
        may receive expense reimbursements as provided in section 15.059.
           Sec. 9.  [CROSSWALK SAFETY AWARENESS PROGRAM.] 
           The Minnesota safety council shall continue its crosswalk 
        safety awareness program by: 
           (1) developing and distributing crosswalk safety education 
        campaign materials; 
           (2) creating and placing advertisements in mass media 
        throughout the state; and 
           (3) making grants to local units of government and law 
        enforcement agencies for: 
           (i) implementing pedestrian safety awareness activities; 
           (ii) providing increased signage and crosswalk markings and 
        evaluating their effect on highway safety; and 
           (iii) enhancing enforcement of pedestrian safety laws. 
           Sec. 10.  [JOINT DOMESTIC ABUSE PROSECUTION UNIT.] 
           Subdivision 1.  [ESTABLISHMENT.] A pilot project is 
        established to develop a joint domestic abuse prosecution unit 
        administered by the Ramsey county attorney's office and the St. 
        Paul city attorney's office.  The unit has authority to 
        prosecute misdemeanors, gross misdemeanors, and felonies.  The 
        unit shall also coordinate efforts with child protection 
        attorneys.  The unit may include four cross-deputized assistant 
        city attorneys and assistant county attorneys.  A victim/witness 
        advocate, a law clerk, and a legal secretary may provide support.
           Subd. 2.  [GOALS.] The goals of this pilot project are to: 
           (1) recognize children as both victims and witnesses in 
        domestic abuse situations; 
           (2) recognize and respect the interests of children in the 
        prosecution of domestic abuse; and 
           (3) reduce the exposure to domestic violence for both adult 
        and child victims. 
           Subd. 3.  [REPORT.] The Ramsey county attorney's office and 
        the St. Paul city attorney's office shall report to the chairs 
        and ranking minority members of the senate and house committees 
        and divisions having jurisdiction over criminal justice policy 
        and funding on the pilot project.  The report may include the 
        number and types of cases referred, the number of cases charged, 
        the outcome of cases, and other relevant outcome measures.  A 
        progress report is due January 15, 2001, and a final report is 
        due January 15, 2002. 
           Subd. 4.  [SHARING OF PILOT PROJECT RESULTS.] The Ramsey 
        county attorney's office and the St. Paul city attorney's office 
        shall share the results of the pilot project with the state and 
        other counties and cities. 
           Sec. 11.  [DOMESTIC VIOLENCE SHELTER STUDY.] 
           By March 15, 2001, the center for applied research and 
        policy analysis at Metropolitan State University, in cooperation 
        with the Minnesota center for crime victim services and the 
        department of public safety, shall study and make 
        recommendations to the chairs and ranking minority members of 
        the senate and house committees and divisions having 
        jurisdiction over criminal justice funding on issues related to 
        providing shelter for victims of domestic violence.  The study 
        must estimate the relative impact of the following, as it 
        relates to providing shelter for victims of domestic violence: 
           (1) the incidence of domestic violence; 
           (2) law enforcement practices in response to domestic 
        violence; 
           (3) the number of victims seeking shelter and whether 
        adequate shelter space exists, and trends regarding this; 
           (4) the number of victims who have children also needing 
        shelter; 
           (5) the financial status of domestic violence victims; 
           (6) the necessary length of stay in shelters; and 
           (7) opportunities for victims to leave shelters. 
        In studying these issues, the center shall analyze costs and 
        demand for shelters in other states having programs comparable 
        to Minnesota's. 
           Sec. 12.  [REVISOR INSTRUCTION.] 
           In the next edition of Minnesota Statutes, the revisor 
        shall eliminate all references to the automobile theft 
        prevention board and correct all cross references to statutes 
        repealed in section 13.  
           Sec. 13.  [REPEALER.] 
           Minnesota Statutes 1998, section 168A.40, subdivision 1, 
        and Minnesota Statutes 1999 Supplement, section 168A.40, 
        subdivision 2, are repealed. 
           Sec. 14.  [EFFECTIVE DATE.] 
           Sections 3 to 5 are effective September 1, 2000. 

                                   ARTICLE 7 
                                  CORRECTIONS 
           Section 1.  [241.018] [PER DIEM CALCULATION.] 
           (a) The commissioner of corrections shall develop a uniform 
        method to calculate the average department wide per diem cost of 
        incarcerating offenders at state adult correctional facilities.  
        In addition to other costs currently factored into the per diem, 
        it must include an appropriate percentage of capitol costs for 
        all adult correctional facilities and 65 percent of the 
        department's management services budget. 
           (b) The commissioner also shall use this method of 
        calculating per diem costs for offenders in each state adult 
        correctional facility.  When calculating the per diem cost of 
        incarcerating offenders at a particular facility, the 
        commissioner shall include an appropriate percentage of capital 
        costs for the facility and an appropriate prorated amount, given 
        the facility's population, of 65 percent of the department's 
        management services budget. 
           (c) The commissioner shall ensure that these new per diem 
        methods are used in all future instances in which per diem 
        charges are reported. 
           (d) The commissioner shall report information related to 
        these per diems to the chairs and ranking minority members of 
        the senate and house committees and divisions having 
        jurisdiction over criminal justice funding by January 15, 2001. 
           Sec. 2.  Minnesota Statutes 1999 Supplement, section 
        242.192, is amended to read: 
           242.192 [CHARGES TO COUNTIES.] 
           (a) Until June 30, 2001, the commissioner shall charge 
        counties or other appropriate jurisdictions for 65 percent of 
        the actual per diem cost of confinement, excluding educational 
        costs and nonbillable service, of juveniles at the Minnesota 
        correctional facility-Red Wing and of juvenile females committed 
        to the commissioner of corrections.  This charge applies to 
        juveniles committed to the commissioner of corrections and 
        juveniles admitted to the Minnesota correctional facility-Red 
        Wing under established admissions criteria.  This charge applies 
        to both counties that participate in the Community Corrections 
        Act and those that do not.  The commissioner shall annually 
        determine costs, making necessary adjustments to reflect the 
        actual costs of confinement the per diem cost of confinement 
        based on projected population, pricing incentives, market 
        conditions, and the requirement that expense and revenue balance 
        out over a period of two years.  All money received under this 
        section must be deposited in the state treasury and credited to 
        the general fund. 
           (b) Until June 30, 2001, the department of corrections 
        shall be responsible for 35 percent of the per diem cost of 
        confinement described in this section. 
           Sec. 3.  [242.193] [JUVENILE RESIDENTIAL TREATMENT GRANTS.] 
           Subdivision 1.  [GRANTS.] Within the limits of available 
        appropriations, the commissioner of corrections shall make 
        juvenile residential treatment grants to counties to defray the 
        cost of juvenile residential treatment.  The commissioner shall 
        distribute 80 percent of the money appropriated for these 
        purposes to noncommunity corrections counties and 20 percent to 
        Community Corrections Act counties.  The commissioner shall 
        distribute the money according to the formula contained in 
        section 401.10. 
           Subd. 2.  [REPORT.] By January 15 of each year, each county 
        that received a grant shall submit a report to the commissioner 
        describing the purposes for which the grants were used.  By 
        March 15 of each year, the commissioner shall summarize this 
        information and report it to the chairs and ranking minority 
        members of the senate and house of representatives committees 
        and divisions having jurisdiction over criminal justice funding. 
           Sec. 4.  Minnesota Statutes 1998, section 242.41, is 
        amended to read: 
           242.41 [THE MINNESOTA CORRECTIONAL FACILITY-RED WING.] 
           There is established the Minnesota correctional 
        facility-Red Wing at Red Wing, Minnesota, in which may be placed 
        persons committed to the commissioner of corrections by the 
        courts of this state who, in the opinion of the commissioner, 
        may benefit from the programs available thereat or admitted 
        consistent with established admissions criteria.  When reviewing 
        placement requests from counties, the commissioner shall take 
        into consideration the purpose of the Minnesota correctional 
        facility-Red Wing which is to educate and provide treatment for 
        serious and chronic juvenile offenders for which the county has 
        exhausted local resources.  The general control and management 
        of the facility shall be under the commissioner of corrections.  
           Sec. 5.  Minnesota Statutes 1998, section 242.43, is 
        amended to read: 
           242.43 [COMMISSIONER, DUTIES.] 
           The commissioner of corrections shall receive, clothe, 
        maintain, and instruct, at the expense of the state, all 
        children duly committed to the corrections department and placed 
        in a state correctional facility for juveniles and keep them in 
        custody until placed on probation, paroled, or discharged.  The 
        commissioner may place any of these children in suitable foster 
        care facilities or cause them to be instructed in such trades or 
        employment as in the commissioner's judgment will be most 
        conducive to their reformation and tend to the future benefit 
        and advantage of these children.  The commissioner may discharge 
        any child so committed, or may recall to the facility at any 
        time any child paroled, placed on probation, or transferred; 
        and, upon recall, may resume the care and control thereof.  The 
        discharge of a child by the commissioner shall be a complete 
        release from all penalties and disabilities created by reason of 
        the commitment. 
           Upon the parole or discharge of any inmate of any state 
        juvenile correctional facility, the commissioner of corrections 
        may pay to each inmate released an amount of money not exceeding 
        the sum of $10.  All payments shall be made from the current 
        expense fund of the facility.  
           Sec. 6.  Minnesota Statutes 1998, section 242.44, is 
        amended to read: 
           242.44 [PUPILS.] 
           The commissioner of corrections, so far as the 
        accommodations of the correctional facilities and other means at 
        the commissioner's disposal will permit, shall may receive and 
        keep until they reach 19 years of age, or until placed in homes, 
        or discharged, all persons committed to the commissioner's care 
        and custody by a juvenile court juvenile delinquents and 
        juvenile offenders serving a juvenile disposition under section 
        260B.130, subdivision 4.  The commissioner's housing of these 
        individuals must be consistent with federal and state law, 
        including established admissions criteria for Minnesota 
        correctional facility-Red Wing.  The commissioner may place 
        these youths at employment, may provide education suitable to 
        their years and capacity, and may place them in suitable homes.  
        Under rules prescribed by the commissioner, when deemed best for 
        these youths, they persons committed to the commissioner's care 
        and custody by a juvenile court may be paroled or discharged 
        from the facility by the commissioner.  All pupils in the 
        facility shall be clothed, instructed, and maintained at the 
        expense of the state by the commissioner of corrections. 
           Sec. 7.  [260B.199] [PLACEMENT OF JUVENILE OFFENDERS AT 
        MINNESOTA CORRECTIONAL FACILITY-RED WING.] 
           Subdivision 1.  [WHEN COURT MUST CONSIDER; PROHIBITION ON 
        PLACEMENT AT OUT-OF-STATE FACILITY.] The admissions criteria for 
        the Minnesota correctional facility-Red Wing shall include a 
        requirement that the county of referral must have considered all 
        appropriate local or regional placements and have exhausted 
        potential in-state placements in the geographic region.  The 
        court must state on the record that this effort was made and 
        placements rejected before ordering a placement or commitment to 
        the Minnesota correctional facility-Red Wing.  Before a court 
        orders a disposition under section 260B.198 or 260B.130, 
        subdivision 4, for a child, the court shall determine whether 
        the child meets the established admissions criteria for the 
        Minnesota correctional facility-Red Wing.  If the child meets 
        the admissions criteria, the court shall place the child at the 
        facility and may not place the child in an out-of-state 
        facility, unless the court makes a finding on the record that 
        the safety of the child or the safety of the community can be 
        best met by placement in an out-of-state facility or that the 
        out-of-state facility is located closer to the child's home. 
           Subd. 2.  [REPORT REQUIRED.] (a) A court that places a 
        child in an out-of-state facility shall report the following 
        information to the sentencing guidelines commission: 
           (1) the out-of-state facility the child was placed at and 
        the reasons for this placement; 
           (2) the in-state facilities at which placement was 
        considered; 
           (3) the reasons for not choosing an in-state facility; 
           (4) the reasons why the child did not meet the established 
        admissions criteria for the Minnesota correctional facility-Red 
        Wing, if applicable; and 
           (5) if the child met the admissions criteria, the reasons 
        why the safety of the child or the safety of the community could 
        not be met at the Minnesota correctional facility-Red Wing. 
           (b) By February 15 of each year, the commission shall 
        forward a summary of the reports received from courts under this 
        subdivision for the preceding year to the chairs and ranking 
        minority members of the senate and house of representatives 
        committees and divisions having jurisdiction over criminal 
        justice policy and funding. 
           Sec. 8.  [260B.201] [MANDATORY COMMITMENT TO COMMISSIONER 
        OF CORRECTIONS.] 
           Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
        the following terms have the meanings given them. 
           (b) "Chemical dependency treatment" means a comprehensive 
        set of planned and organized services, therapeutic experiences, 
        and interventions that are intended to improve the prognosis, 
        function, or outcome of patients by reducing the risk of the use 
        of alcohol, drugs, or other mind-altering substances and assist 
        the patient to adjust to, and deal more effectively with, life 
        situations. 
           (c) An offender has "failed or refused to successfully 
        complete" treatment when based on factors within the offender's 
        control, the offender is not able to substantially achieve the 
        program's goals and the program's director determines that based 
        on the offender's prior placement or treatment history, further 
        participation in the program would not result in its successful 
        completion. 
           (d) "Probation" has the meaning given in section 609.02, 
        subdivision 15. 
           (e) "Sex offender treatment" means a comprehensive set of 
        planned and organized services, therapeutic experiences, and 
        interventions that are intended to improve the prognosis, 
        function, or outcome of patients by reducing the risk of sexual 
        reoffense and other aggressive behavior and assist the patient 
        to adjust to, and deal more effectively with, life situations. 
           Subd. 2.  [WHEN COMMITMENT REQUIRED.] (a) A court having 
        jurisdiction over a child shall commit the child to the custody 
        of the commissioner of corrections or place the child at the 
        Minnesota correctional facility-Red Wing if the child: 
           (1) was previously adjudicated delinquent or convicted as 
        an extended jurisdiction juvenile for an offense for which 
        registration under section 243.166 was required; 
           (2) was placed on probation for the offense and ordered to 
        complete a sex offender or chemical dependency treatment 
        program; and 
           (3) subsequently failed or refused to successfully complete 
        the program. 
           (b) If the child was initially convicted as an extended 
        jurisdiction juvenile, the court may execute the child's adult 
        sentence under section 260B.130, subdivision 4.  Notwithstanding 
        paragraph (c), if the court does not do this, it shall comply 
        with paragraph (a). 
           (c) A court may place a child in an out-of-state facility 
        if the court makes a finding on the record that the safety of 
        the child or the safety of the community can be best met by 
        placement in an out-of-state facility or that the out-of-state 
        facility is located closer to the child's home. 
           Subd. 3.  [REPORT REQUIRED.] A court ordering an 
        alternative placement under subdivision 2, paragraph (c), shall 
        report to the sentencing guidelines commission on the placement 
        ordered and the reasons for not committing the child to the 
        custody of the commissioner of corrections.  If the alternative 
        placement is to an out-of-state facility, the report must 
        include specific information that the safety of the child or the 
        safety of the community can best be met by placement in an 
        out-of-state facility or that the out-of-state facility is 
        located closer to the child's home.  By February 15 of each 
        year, the commission shall summarize the reports received from 
        courts under this paragraph for the preceding year and forward 
        this summary to the chairs and ranking minority members of the 
        senate and house of representatives committees and divisions 
        having jurisdiction over criminal justice policy and funding. 
           Sec. 9.  [LEGISLATIVE INTENT.] 
           It is the intent of the legislature that this article 
        encourage courts to place juvenile offenders at the Minnesota 
        correctional facility-Red Wing who would otherwise be placed in 
        out-of-state facilities.  Except as provided in section 8, it is 
        not the legislature's intent to discourage the placement of 
        juvenile offenders at non-state-operated facilities within 
        Minnesota. 
           Sec. 10.  [STUDY; REPORT.] 
           (a) The commissioner of corrections, in consultation with 
        the counties, shall study the state's juvenile correctional 
        system as it relates to serious and chronic offenders.  The 
        study must analyze and make proposals regarding: 
           (1) the role of the state and counties in providing 
        services; 
           (2) the funding of these services; 
           (3) the extent to which research-based best practices exist 
        and are accessible to counties; 
           (4) the method and process used to administer the juvenile 
        commitment and parole systems; 
           (5) the degree to which existing practice reflects the 
        legislature's intent in enacting juvenile justice laws; and 
           (6) other related issues deemed relevant by the 
        commissioner or the counties. 
           (b) By January 15, 2001, the commissioner shall report the 
        study's findings and proposals to the chairs and ranking 
        minority members of the senate and house of representatives 
        committees and divisions having jurisdiction over criminal 
        justice policy funding. 
           Sec. 11.  [REPORT.] 
           The commissioner shall report information relating to 
        changes in per diem charges to counties for juveniles placed at 
        the Minnesota correctional facility-Red Wing and the resulting 
        reduction in juvenile residential treatment grants to the chairs 
        and ranking minority members of the senate and house committees 
        and divisions having jurisdiction over criminal justice funding 
        by January 15, 2001.  This report shall specifically address any 
        impact on the populations at other state, public, or private 
        juvenile residential facilities and shall specifically include 
        any effect on the population of the Thistledew Camp caused by 
        the per diem reduction at Red Wing.  The report shall also 
        recommend approaches, based on consultation with and input from 
        counties, to achieve financial stability at Minnesota 
        correctional facility-Red Wing.  
           Sec. 12.  [CONVEYANCE OF STATE LAND.] 
           Subdivision 1.  [CONVEYANCE AUTHORIZED.] Notwithstanding 
        Minnesota Statutes, sections 92.45, 94.09, 94.10, and 103F.335, 
        subdivision 3, or any other law to the contrary, the 
        commissioner of administration may convey all, or any part of, 
        the land and the state building located on the land described in 
        subdivision 3, to the central Minnesota regional jail joint 
        powers group comprised of Aitkin, Cass, Crow Wing, Morrison, 
        Todd, and Wadena counties, after the commissioner of human 
        services declares the property surplus to its needs. 
           Subd. 2.  [FORM.] (a) The conveyance shall be in a form 
        approved by the attorney general. 
           (b) The conveyance shall restrict use of the land to county 
        governmental purposes under a joint powers agreement, including 
        regional jails and community corrections programs, and shall 
        provide that ownership of any portion of the land or building 
        that ceases to be used for such purposes shall revert to the 
        state of Minnesota. 
           Subd. 3.  [LAND DESCRIPTION.] The legal description of the 
        land is:  that part of the Southeast Quarter (SE 1/4) of the 
        Northeast Quarter (NE 1/4) of Section 29, Township 45 North, 
        Range 30 West, Crow Wing County, Minnesota, described as 
        follows:  Building 5 and Rectangular site area, on a NW to SE 
        axis, where the northwest side of said area is the centerline of 
        Robin Road.  Extending southwest, 540'-0" from the midpoint 
        between Building 5 and Building 7, the SW to NE dimension is 
        540'-0".  Extending southeast, 675'-0" from the centerline of 
        Robin Road, the SE to NW dimension is 675'-0".  Containing 8.37 
        acres, more or less.  Subject to the right-of-way of the 
        Township road along the east side thereof, subject to other 
        easements, reservations, and restrictions of record, if any.  
        Including a road easement for ingress and egress from state 
        Highway 18 over State Avenue and Robin Road to the junction of 
        Meadowlark Lane. 
           Subd. 4.  [DETERMINATION.] The commissioner of human 
        services has determined that the land described in subdivision 3 
        and the building on the land will not be needed for future 
        operations of the Brainerd regional human services center.  The 
        state's land management interests would best be served by 
        conveying the land to the central Minnesota regional jail joint 
        powers group for governmental use. 

                                   ARTICLE 8
                                 APPROPRIATIONS 
        Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or any other fund named, to 
        the agencies and for the purposes specified in this article, to 
        be available for the fiscal years indicated for each purpose.  
        The figures "2000" and "2001"  mean that the appropriation or 
        appropriations listed under them are available for the fiscal 
        year ending June 30, 2000, or June 30, 2001, respectively, and 
        if an earlier appropriation was made for that purpose for that 
        year, the appropriation in this article is added to it.  Where a 
        dollar amount appears in parenthesis, it means a reduction of an 
        earlier appropriation for that purpose for that year. 
                                SUMMARY BY FUND 
        APPROPRIATIONS                                      BIENNIAL
                                  2000          2001           TOTAL
        General            $   10,328,000 $   81,995,000 $   92,323,000 
        State Government
        Special Revenue           150,000          -0-          150,000
        Health Care Access 
        Fund                    1,266,000      3,401,000      4,667,000 
        Lottery Prize Fund        -0-            248,000        248,000
        TOTAL              $   11,744,000 $   85,644,000 $   97,388,000 
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2000         2001 
        Sec. 2.  COMMISSIONER OF 
        HUMAN SERVICES 
        Subdivision 1.  Total 
        Appropriation                     $   11,594,000 $84,604,000
                      Summary by Fund
        General              10,328,000 80,955,000
        Health Care Access    1,266,000 3,401,000
        Lottery                 -0-           248,000
        This appropriation is added to the 
        appropriation in Laws 1999, chapter 
        245, article 1, section 2. 
        The amounts that are added to or 
        reduced from the appropriation for each 
        program are specified in the following 
        subdivisions. 
        Subd. 2.  Children's Grants
            1,130,000       3,307,000
        [ADOPTION ASSISTANCE/RELATIVE CUSTODY 
        ASSISTANCE.] Of this appropriation, 
        $674,000 in fiscal year 2000 and 
        $1,800,000 in fiscal year 2001 is for 
        the adoption assistance program under 
        Minnesota Statutes, section 259.67, and 
        $456,000 in fiscal year 2000 and 
        $912,000 in fiscal year 2001 is for the 
        relative custody assistance program 
        under Minnesota Statutes, section 
        257.85.  This is a one-time 
        appropriation that shall not be added 
        to the base level funding for these 
        programs. 
        Subd. 3.  Basic Health Care Grants
            14,984,000     50,813,000 
                      Summary by Fund
        General              13,718,000    47,412,000 
        Health Care Access    1,266,000     3,401,000 
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Minnesota Care Grants
        Health Care Access Fund
             1,266,000      3,401,000 
        [WELFARE TO WORK.] The commissioner is 
        authorized to apply for a grant from 
        the Robert Wood Johnson Foundation for 
        technical support with health care 
        program processes to assist families as 
        they move from welfare to work and 
        shall seek federal financial 
        participation.  Any federal matching 
        funds received as a result of the grant 
        shall be dedicated to the commissioner 
        for the project funded by the grant.  
        All funds received shall be accounted 
        for in a special revenue fund account. 
        (b) MA Basic Health Care Grants-
        Families and Children
        General  22,751,000    23,328,000 
        [ADVANCE CAPITATION PAYMENTS.] The 
        commissioner shall provide an advance 
        of up to $500,000 in June of 2001 and 
        June of 2002, not to exceed the total 
        monthly per capita payment due for 
        services provided in June, to 
        county-based purchasing sites operating 
        under Minnesota Statutes, section 
        256B.692.  These advances shall be 
        recovered from the following month's 
        per capita payments.  Notwithstanding 
        section 6, this paragraph expires on 
        August 1, 2002. 
        (c) MA Basic Health Care Grants - 
        Elderly and  Disabled
        General  (3,730,000)   14,071,000 
        [SPECIAL TRANSPORTATION.] Of the 
        general fund appropriation for the 
        fiscal year beginning July 1, 2000, 
        $436,000 for medical assistance and 
        $8,000 for general assistance medical 
        care is for the commissioner to 
        increase mileage reimbursement for 
        special transportation under Minnesota 
        Statutes, section 256B.0625, 
        subdivision 17, by ten cents per mile 
        for services rendered from July 1, 
        2000, to June 30, 2001. 
        (d) General Assistance Medical Care
        General  (5,303,000)   10,013,000 
        (e) Health Care Nonentitlement Grants
                 -0-          -0-     
        Subd. 4.  State-Operated Services
              -0-          (1,495,000)
        [STATE-OPERATED SERVICES BASE 
        REDUCTION.] The general fund base level 
        appropriation for state operated 
        services programs and activities shall 
        be reduced by $1,495,000 for fiscal 
        year 2001.  
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) RTC Facilities
              -0-            (1,495,000)
        Subd. 5.  Continuing Care and 
        Community Support Grants
           (35,029,000)     6,611,000
                      Summary by Fund
        General             (35,029,000)    6,363,000
        Lottery                 -0-           248,000
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Community Services Block Grants
               -0-            901,000 
        (b) Aging Adult Service Grants
               -0-             207,000
        [EPILEPSY.] Of the general fund 
        appropriation, $7,000 in fiscal year 
        2001 is to the commissioner to provide 
        a three percent reimbursement increase 
        to living skills training programs for 
        persons with intractable epilepsy who 
        need assistance in the transition to 
        independent living. 
        [HOME SHARE PROGRAM.] Base level 
        funding for the home share program 
        established under Minnesota Statutes, 
        section 256.973, for fiscal year 2002 
        shall be $175,000.  Notwithstanding 
        section 6, this paragraph expires on 
        June 30, 2002. 
        (c) Deaf and Hard-of-Hearing 
        Services Grants
               -0-             21,000 
        (d) Mental Health Grants
        General                 -0-         1,830,000
        Lottery                 -0-           248,000
        [SERVICES FOR FARMERS.] Of the 
        appropriation from the general fund for 
        the fiscal year beginning July 1, 2000, 
        $400,000 is to the commissioner for the 
        following purposes: 
        (1) $250,000 is to be transferred to 
        the commissioner of agriculture for 
        grants to organizations participating 
        in the farm wrap network and the rural 
        help network.  The grants may be used 
        for mental health services and 
        emergency services for farmers.  
        (2) $150,000 is to be transferred to 
        the board of trustees of the Minnesota 
        state colleges and universities for 
        mental health counseling support to 
        farm families and business operators 
        through the farm business management 
        program at Central Lakes college and 
        Ridgewater college. 
        [COMPULSIVE GAMBLING TREATMENT.] For 
        the fiscal year beginning July 1, 2000, 
        $248,000 is appropriated from the 
        lottery prize fund to the commissioner 
        for the compulsive gambling treatment 
        program.  Of this appropriation, 
        $143,000 is for a grant to gamblers 
        intervention services in Duluth to be 
        spent as follows: 
        (1) $100,000 is to establish an 
        outpatient gambling treatment program 
        in Brainerd; and 
        (2) $43,000 is to make treatment center 
        building improvements to accommodate 
        expanded group services. 
        $75,000 is for a grant to the Minnesota 
        arrowhead region gambling treatment 
        alliance to provide extended outreach 
        and family counseling through its 
        Virginia center. 
        The remaining $30,000 is for a grant to 
        gamblers choice in Minneapolis to make 
        treatment center building improvements 
        to accommodate expanded group services. 
        These are one-time appropriations and 
        shall not become part of base-level 
        funding for the 2002-2003 biennium. 
        (e) Developmental Disabilities
        Support Grants
               -0-            204,000 
        (f) Medical Assistance Long-Term 
        Care Waivers and Home Care
           (12,385,000)     2,797,000  
        (g) Medical Assistance Long-Term
        Care Facilities
           (20,790,000)    (3,405,000)                 
        (h) Alternative Care Grants  
               -0-          1,633,000                
        (i) Group Residential Housing
            (1,854,000)      (295,000)                
        (j) Chemical Dependency
        Entitlement Grants
               -0-          2,470,000                 
        Subd. 6.  Economic Support Grants
            30,509,000     25,368,000                 
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        [ASSISTANCE TO FAMILIES GRANTS TANF 
        FORECAST ADJUSTMENT.] The federal 
        Temporary Assistance to Needy Families 
        (TANF) block grant fund appropriated to 
        the commissioner of human services in 
        Laws 1999, chapter 245, article 1, 
        section 2, subdivision 10, for MFIP 
        cash grants are reduced by $37,513,000 
        in fiscal year 2000 and $30,217,000 in 
        fiscal year 2001. 
        [FEDERAL TANF FUNDS.] (1) In addition 
        to the Federal Temporary Assistance for 
        Needy Families (TANF) block grant funds 
        appropriated to the commissioner of 
        human services in Laws 1999, chapter 
        245, article 1, section 2, subdivision 
        10, federal TANF funds are appropriated 
        to the commissioner in amounts up to 
        $20,000,000 in fiscal year 2000 and 
        $80,440,000 in fiscal year 2001.  In 
        addition to these funds, the 
        commissioner may draw or transfer any 
        other appropriations of federal TANF 
        funds or transfers of federal TANF 
        funds that are enacted into state law. 
        (2) Of the amounts in clause (1), 
        $19,680,000 in fiscal year 2001 is for 
        the local intervention grants program 
        under Minnesota Statutes, section 
        256J.625 and related grant programs and 
        shall be expended as follows: 
        (a) $500,000 in fiscal year 2001 is for 
        a grant to the Southeast Asian MFIP 
        services collaborative to replicate in 
        a second location an existing model of 
        an intensive intervention transitional 
        employment training project which 
        serves TANF-eligible recipients and 
        which moves refugee and immigrant 
        welfare recipients unto unsubsidized 
        employment and leads to economic 
        self-sufficiency.  This is a one-time 
        appropriation. 
        (b) $500,000 in fiscal year 2001 is for 
        nontraditional career assistance and 
        training programs under Minnesota 
        Statutes, section 256K.30, subdivision 
        4.  This is a one-time appropriation. 
        (c) $18,680,000 is for local 
        intervention grants for 
        self-sufficiency program under 
        Minnesota Statutes, section 256J.625.  
        For fiscal years 2002 and 2003 the 
        commissioner of finance shall ensure 
        that the base level funding for the 
        local intervention grants program is 
        $27,180,000 each year. 
        (3) Of the amounts in clause (2), 
        paragraph (c) for local intervention 
        grants, $7,000,000 in fiscal year 2001 
        shall be transferred to the 
        commissioner of health for distribution 
        to county boards according to the 
        formula in Minnesota Statutes, section 
        256J.625, subdivision 3, to be used by 
        county public health boards to serve 
        families with incomes at or below 200 
        percent of the federal poverty 
        guidelines, in the manner specified by 
        Minnesota Statutes, section 145A.16, 
        subdivision 3, clauses (2) through 
        (6).  Training, evaluation and 
        technical assistance shall be provided 
        in accordance with Minnesota Statutes, 
        section 145A.16, subdivisions 5 to 7.  
        For fiscal years 2002 and 2003 the 
        commissioner of finance shall ensure 
        that the base level funding for this 
        activity is $7,000,000 each year. 
        (4) Of the amounts in clause (1), 
        $250,000 in fiscal year 2001 is 
        appropriated to the commissioner to 
        contract with the board of trustees of 
        the Minnesota state colleges and 
        universities to provide tuition waivers 
        to employees of health care and human 
        services providers located in the state 
        that are members of qualifying 
        consortia operating under Minnesota 
        Statutes, sections 116L.10 to 116L.15. 
        (5) Of the amounts in clause (1), 
        $320,000 in fiscal year 2001 is for 
        training job counselors about the MFIP 
        program.  For fiscal years 2002 and 
        2003 the commissioner of finance shall 
        ensure that the base level funding for 
        employment services includes $320,000 
        each year for this activity.  The 
        appropriations in this clause shall not 
        become part of the base for the 
        2004-2005 biennium. 
        (6) Of the amounts in clause (1), 
        $1,000,000 in fiscal year 2001 is for 
        out-of-wedlock pregnancy prevention 
        funds to serve children in 
        TANF-eligible families under Minnesota 
        Statutes, section 256K.35. For fiscal 
        years 2002 and 2003 the commissioner of 
        finance shall ensure that the base 
        level funding for this program is 
        $1,000,000 each year.  The 
        appropriations in this clause shall not 
        become part of the base for the 
        2004-2005 biennium. 
        (7) Of the amounts in clause (1), 
        $1,000,000 in fiscal year 2001 is to 
        provide services to TANF-eligible 
        families who are participating in the 
        supportive housing and managed care 
        pilot project under Minnesota Statutes, 
        section 256K.25.  For fiscal years 2002 
        and 2003 the commissioner of finance 
        shall ensure that the base level 
        funding for this project is $1,000,000 
        each year.  The appropriations in this 
        clause shall not become part of the 
        base for this project for the 2004-2005 
        biennium. 
        [TANF TRANSFER TO SOCIAL SERVICES.] 
        $7,500,000 is transferred from the 
        state's federal TANF block grant to the 
        state's federal Title XX block grant in 
        fiscal year 2001 and in fiscal year 
        2002, for purposes of increasing 
        services for families with children 
        whose incomes are at or below 200 
        percent of the federal poverty 
        guidelines.  Notwithstanding section 6, 
        this paragraph expires June 30, 2002. 
        [TANF MOE.] (a) In order to meet the 
        basic maintenance of effort (MOE) 
        requirements of the TANF block grant 
        specified under United States Code, 
        title 42, section 609(a)(7), the 
        commissioner may only report nonfederal 
        money expended for allowable activities 
        listed in the following clauses as TANF 
        MOE expenditures: 
        (1) MFIP cash and food assistance 
        benefits under Minnesota Statutes, 
        chapter 256J; 
        (2) the child care assistance programs 
        under Minnesota Statutes, sections 
        119B.03 and 119B.05, and county child 
        care administrative costs under 
        Minnesota Statutes, section 119B.15; 
        (3) state and county MFIP 
        administrative costs under Minnesota 
        Statutes, chapters 256J and 256K; 
        (4) state, county, and tribal MFIP 
        employment services under Minnesota 
        Statutes, chapters 256J and 256K; and 
        (5) expenditures made on behalf of 
        noncitizen MFIP recipients who qualify 
        for the medical assistance without 
        federal financial participation program 
        under Minnesota Statutes, section 
        256B.06, subdivision 4, paragraphs (d), 
        (e), and (j). 
        (b) The commissioner shall ensure that 
        sufficient qualified nonfederal 
        expenditures are made each year to meet 
        the state's TANF MOE requirements.  For 
        the activities listed in paragraph (a), 
        clauses (2) to (6), the commissioner 
        may only report expenditures that are 
        excluded from the definition of 
        assistance under Code of Federal 
        Regulations, title 45, section 260.31.  
        If nonfederal expenditures for the 
        programs and purposes listed in 
        paragraph (a) are insufficient to meet 
        the state's TANF MOE requirements, the 
        commissioner shall recommend additional 
        allowable sources of nonfederal 
        expenditures to the legislature, if the 
        legislature is or will be in session to 
        take action to specify additional 
        sources of nonfederal expenditures for 
        TANF MOE before a federal penalty is 
        imposed.  The commissioner shall 
        otherwise provide notice to the 
        legislative commission on planning and 
        fiscal policy under paragraph (d). 
        (c) If the commissioner uses authority 
        granted under Laws 1999, chapter 245, 
        article 1, section 10, or similar 
        authority granted by a subsequent 
        legislature, to meet the state's TANF 
        MOE requirements in a reporting period, 
        the commissioner shall inform the 
        chairs of the appropriate legislative 
        committees about all transfers made 
        under that authority for this purpose. 
        (d) If the commissioner determines that 
        nonfederal expenditures for the 
        programs under Minnesota Statutes, 
        section 256J.025, are insufficient to 
        meet TANF MOE expenditure requirements, 
        and if the legislature is not or will 
        not be in session to take timely action 
        to avoid a federal penalty, the 
        commissioner may report nonfederal 
        expenditures from other allowable 
        sources as TANF MOE expenditures after 
        the requirements of this paragraph are 
        met. 
        The commissioner may report nonfederal 
        expenditures in addition to those 
        specified under paragraph (a) as 
        nonfederal TANF MOE expenditures, but 
        only ten days after the commissioner of 
        finance has first submitted the 
        commissioner's recommendations for 
        additional allowable sources of 
        nonfederal TANF MOE expenditures to the 
        members of the legislative commission 
        on planning and fiscal policy for their 
        review. 
        (e) The commissioner of finance shall 
        not incorporate any changes in federal 
        TANF expenditures or nonfederal 
        expenditures for TANF MOE that may 
        result from reporting additional 
        allowable sources of nonfederal TANF 
        MOE expenditures under the interim 
        procedures in paragraph (d) into the 
        February or November forecasts required 
        under Minnesota Statutes, section 
        16A.103, unless the commissioner of 
        finance has approved the additional 
        sources of expenditures under paragraph 
        (d). 
        (f) The provisions of paragraphs (a) to 
        (e) supersede any contrary provisions 
        in Laws 1999, chapter 245, article 1, 
        section 2, subdivision 10. 
        (g) The provisions of Minnesota 
        Statutes, section 256.011, subdivision 
        3, which require that federal grants or 
        aids secured or obtained under that 
        subdivision be used to reduce any 
        direct appropriations provided by law 
        do not apply if the grants or aids are 
        federal TANF funds. 
        (h) Notwithstanding section 6 of this 
        article, paragraphs (a) to (g) expire 
        June 30, 2003. 
        (i) Paragraphs (a) to (h) are effective 
        the day following final enactment. 
        (a) Assistance to Families Grants
             9,628,000     (2,305,000)                
        (b) Work Grants
                -0-          (250,000)
        (c) AFDC and Other Assistance
            20,000,000     30,734,000 
        [TRANSFERS TO MINNESOTA HOUSING FINANCE 
        AGENCY.] (a) By June 30, 2001, the 
        commissioner shall transfer $50,000,000 
        of the general funds appropriated under 
        this paragraph to the Minnesota housing 
        finance agency for transfer to the 
        housing development fund.  The program 
        funded by this transfer shall be known 
        as the "Bruce F. Vento Year 2000 
        Affordable Housing Program." Up to 
        $15,000,000 may be transferred in 
        fiscal year 2000. 
        (b) Of the funds transferred in 
        paragraph (a), $5,000,000 in fiscal 
        year 2001 and $15,000,000 in fiscal 
        year 2002 is for a loan to Habitat for 
        Humanity of Minnesota, Inc.  The loan 
        shall be an interest-free deferred 
        loan.  The loan shall become due and 
        payable in the event and to the extent 
        that Habitat for Humanity of Minnesota, 
        Inc. does not invest repayments and 
        prepayment of mortgage loans financed 
        with this appropriation in new 
        mortgages for additional homebuyers 
        through Habitat for Humanity of 
        Minnesota, Inc.  To the extent 
        practicable, funding must be allocated 
        to Habitat for Humanity chapters on the 
        basis of the number of MFIP households 
        residing within a chapter's service 
        area compared to the statewide total of 
        MFIP households and on the basis of a 
        chapter's capacity. 
        (c) Of the funds transferred in 
        paragraph (a), $15,000,000 in fiscal 
        year 2001 and $15,000,000 in fiscal 
        year 2002 is for the affordable rental 
        investment fund program under Minnesota 
        Statutes, section 462A.21, subdivision 
        8b.  To the extent practicable, the 
        number of units financed with the 
        appropriation under this paragraph 
        within a city, county, or region shall 
        reflect the number of MFIP households 
        residing within the city, county, or 
        region compared to the statewide total 
        of MFIP households.  This appropriation 
        must be used to finance rental housing 
        units that serve families: 
        (1) receiving MFIP benefits under 
        Minnesota Statutes, section 256J.01, or 
        its successor program; and 
        (2) who have lost eligibility for MFIP 
        due to increased income from employment 
        or due to the collection of child or 
        spousal support under part D of title 
        IV of the Social Security Act. 
        Units produced with this appropriation 
        must remain affordable for a 30-year 
        period. 
        In order to coordinate the availability 
        of housing developed with the 
        appropriation under this paragraph with 
        MFIP families in need of affordable 
        housing, the commissioner of the 
        Minnesota housing finance agency, with 
        the assistance of the commissioner of 
        human services, shall establish 
        cooperative relationships with county 
        agencies as defined in Minnesota 
        Statutes, section 256J.08, local 
        employment and training service 
        providers as defined in Minnesota 
        Statutes, section 256J.49, local social 
        service agencies, or other 
        organizations that provide assistance 
        to MFIP households.  
        The commissioner of the Minnesota 
        housing finance agency shall develop 
        strategies to promote occupancy of the 
        units financed by the appropriation 
        under this paragraph by households most 
        in need of subsidized housing.  The 
        strategies shall include provisions 
        that encourage households to move into 
        homeownership or unsubsidized housing 
        as the household secures stable 
        employment and achieves 
        self-sufficiency.  The commissioner of 
        the Minnesota housing finance agency 
        shall consult with interested parties 
        in developing these strategies.  
        (d) The commissioner of the Minnesota 
        housing finance agency and the 
        commissioner of human services shall 
        jointly prepare and submit a report to 
        the governor and the legislature on the 
        results of the funding provided under 
        this section.  The report shall include:
        (1) information on the number of units 
        produced; 
        (2) the household size and income of 
        the occupants of the units at initial 
        occupancy; and 
        (3) to the extent the information is 
        available, measures related to the 
        occupants' attachment to the workforce 
        and public assistance usage, and number 
        of occupant moves. 
        The report must be submitted annually 
        beginning January 15, 2003. 
        (e) Section 6, sunset of uncodified 
        language, does not apply to paragraphs 
        (a) to (d).  Paragraphs (a) to (d) are 
        effective the day following final 
        enactment. 
        [WORKING FAMILY CREDIT.] (a) On a 
        regular basis, the commissioner of 
        revenue, with the assistance of the 
        commissioner of human services, shall 
        calculate the value of the refundable 
        portion of the Minnesota working family 
        credits provided under Minnesota 
        Statutes, section 290.0671, that 
        qualifies for federal reimbursement 
        from the temporary assistance to needy 
        families block grant.  The commissioner 
        of revenue shall provide the 
        commissioner of human services with 
        such expenditure records and 
        information as are necessary to support 
        draws of federal funds.  The 
        commissioner of human services shall 
        reimburse the commissioner of revenue 
        for the costs of providing the 
        information required by this paragraph. 
        (b) Federal TANF funds, as specified in 
        this paragraph, are appropriated to the 
        commissioner of human services based on 
        calculations under paragraph (a) of 
        working family tax credit expenditures 
        that qualify for reimbursement from the 
        TANF block grant for income tax refunds 
        payable in federal fiscal years 
        beginning October 1, 1999.  The draws 
        of federal TANF funds shall be made on 
        a regular basis based on calculations 
        of credit expenditures by the 
        commissioner of revenue.  Up to the 
        following amounts of federal TANF draws 
        are appropriated to the commissioner of 
        human services to deposit into the 
        general fund:  in fiscal year 2000, 
        $30,957,000; and in fiscal year 2001, 
        $33,895,000. 
        (d) General Assistance
                557,000    (3,134,000)
        (e) Minnesota Supplemental Aid
                324,000       323,000 
        Sec. 3.  COMMISSIONER OF HEALTH 
        Subdivision 1.  Total 
        Appropriation                            -0-          1,040,000
                      Summary by Fund
        General                 -0-         1,040,000
        This appropriation is added to the 
        appropriation in Laws 1999, chapter 
        245, article 1, section 3. 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Health Systems
        and Special Populations                  -0-            865,000
                      Summary by Fund
        General                 -0-           865,000
        [POISON INFORMATION CENTERS.] Of the 
        general fund appropriation for the 
        fiscal year beginning July 1, 2000, 
        $790,000 is to the commissioner for the 
        operation of poison information centers 
        authorized under Minnesota Statutes, 
        section 145.93.  This is a one-time 
        appropriation. 
        [BASE LEVEL REDUCTION.] For fiscal 
        years 2002 and 2003, the base level 
        appropriation for Minnesota poison 
        information centers under Minnesota 
        Statutes, section 145.93 shall be 
        reduced by $380,000 each year.  Section 
        6, sunset of uncodified language, does 
        not apply to this provision. 
        [FUNERAL AND PRENEED COMPLAINT 
        RESPONSES.] (a) Of this appropriation, 
        $75,000 in fiscal year 2001 is to the 
        commissioner for the purposes of 
        responding to complaints as required 
        under Minnesota Statutes, chapter 
        149A.  To the extent that resources are 
        available, the commissioner shall also 
        provide information and technical 
        assistance to the organizations 
        regulated under that chapter.  This 
        appropriation shall not become part of 
        base level funding for the 2002-2003 
        biennium. 
        (b) The commissioner shall make 
        recommendations by January 15, 2001, to 
        the chairs of the senate health and 
        family security budget division and the 
        house health and human services finance 
        committee on whether there is a need 
        for additional funding for ongoing 
        implementation of the regulatory 
        provisions of Minnesota Statutes, 
        chapter 149A, and if so, proposals for 
        an alternative funding source to the 
        general fund. 
        Subd. 3.  Health Protection             -0-            175,000
                      Summary by Fund
        General                 -0-           175,000
        [SEXUALLY TRANSMITTED INFECTIONS.] Of 
        the general fund appropriation for the 
        fiscal year beginning July 1, 2000, 
        $175,000 is to the commissioner to 
        expand access to free screening and 
        testing for sexually transmitted 
        infections.  The appropriation must be 
        used in accordance with Minnesota 
        Statutes, section 144.065.  This is a 
        one-time appropriation and shall not 
        become part of base-level funding for 
        the 2002-2003 biennium. 
        Sec. 4.  HEALTH-RELATED BOARDS 
        Subdivision 1.  Total       
        Appropriation                            150,000        -0-     
        This appropriation is added to the 
        appropriation in Laws 1999, chapter 
        205, article 1, section 5. 
        The appropriations in this section are 
        from the state government special 
        revenue fund. 
        [NO SPENDING IN EXCESS OF REVENUES.] 
        The commissioner of finance shall not 
        permit the allotment, encumbrance, or 
        expenditure of money appropriated in 
        this section in excess of the 
        anticipated biennial revenues or 
        accumulated surplus revenues from fees 
        collected by the boards.  Neither this 
        provision nor Minnesota Statutes, 
        section 214.06, applies to transfers 
        from the general contingent account. 
        Subd. 2.  BOARD OF PSYCHOLOGY            150,000        -0-    
        [LEGAL COSTS.] Of this appropriation, 
        $150,000 for the fiscal year beginning 
        July 1, 1999, is to the board to pay 
        for extraordinary legal costs.  This is 
        a one-time appropriation and shall not 
        become part of base-level funding for 
        the 2002-2003 biennium. 
        Sec. 5.  CARRYOVER LIMITATION 
        None of the appropriations in articles 
        8 to 11 which are allowed to be carried 
        forward from fiscal year 2000 to fiscal 
        year 2001 shall become part of the base 
        level funding for the 2002-2003 
        biennial budget, unless specifically 
        directed by the legislature. 
        Sec. 6.  SUNSET OF UNCODIFIED LANGUAGE 
        All uncodified language contained in 
        this article expires on June 30, 2001, 
        unless a different expiration date is 
        explicit. 
           Sec. 7.  [EFFECTIVE DATE.] 
           The appropriations and reductions for fiscal year 2000 in 
        this article are effective the day following final enactment. 

                                   ARTICLE 9 
                                  HEALTH CARE 
           Section 1.  Minnesota Statutes 1998, section 144.551, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESTRICTED CONSTRUCTION OR MODIFICATION.] 
        (a) The following construction or modification may not be 
        commenced:  
           (1) any erection, building, alteration, reconstruction, 
        modernization, improvement, extension, lease, or other 
        acquisition by or on behalf of a hospital that increases the bed 
        capacity of a hospital, relocates hospital beds from one 
        physical facility, complex, or site to another, or otherwise 
        results in an increase or redistribution of hospital beds within 
        the state; and 
           (2) the establishment of a new hospital.  
           (b) This section does not apply to:  
           (1) construction or relocation within a county by a 
        hospital, clinic, or other health care facility that is a 
        national referral center engaged in substantial programs of 
        patient care, medical research, and medical education meeting 
        state and national needs that receives more than 40 percent of 
        its patients from outside the state of Minnesota; 
           (2) a project for construction or modification for which a 
        health care facility held an approved certificate of need on May 
        1, 1984, regardless of the date of expiration of the 
        certificate; 
           (3) a project for which a certificate of need was denied 
        before July 1, 1990, if a timely appeal results in an order 
        reversing the denial; 
           (4) a project exempted from certificate of need 
        requirements by Laws 1981, chapter 200, section 2; 
           (5) a project involving consolidation of pediatric 
        specialty hospital services within the Minneapolis-St. Paul 
        metropolitan area that would not result in a net increase in the 
        number of pediatric specialty hospital beds among the hospitals 
        being consolidated; 
           (6) a project involving the temporary relocation of 
        pediatric-orthopedic hospital beds to an existing licensed 
        hospital that will allow for the reconstruction of a new 
        philanthropic, pediatric-orthopedic hospital on an existing site 
        and that will not result in a net increase in the number of 
        hospital beds.  Upon completion of the reconstruction, the 
        licenses of both hospitals must be reinstated at the capacity 
        that existed on each site before the relocation; 
           (7) the relocation or redistribution of hospital beds 
        within a hospital building or identifiable complex of buildings 
        provided the relocation or redistribution does not result in: 
        (i) an increase in the overall bed capacity at that site; (ii) 
        relocation of hospital beds from one physical site or complex to 
        another; or (iii) redistribution of hospital beds within the 
        state or a region of the state; 
           (8) relocation or redistribution of hospital beds within a 
        hospital corporate system that involves the transfer of beds 
        from a closed facility site or complex to an existing site or 
        complex provided that:  (i) no more than 50 percent of the 
        capacity of the closed facility is transferred; (ii) the 
        capacity of the site or complex to which the beds are 
        transferred does not increase by more than 50 percent; (iii) the 
        beds are not transferred outside of a federal health systems 
        agency boundary in place on July 1, 1983; and (iv) the 
        relocation or redistribution does not involve the construction 
        of a new hospital building; 
           (9) a construction project involving up to 35 new beds in a 
        psychiatric hospital in Rice county that primarily serves 
        adolescents and that receives more than 70 percent of its 
        patients from outside the state of Minnesota; 
           (10) a project to replace a hospital or hospitals with a 
        combined licensed capacity of 130 beds or less if:  (i) the new 
        hospital site is located within five miles of the current site; 
        and (ii) the total licensed capacity of the replacement 
        hospital, either at the time of construction of the initial 
        building or as the result of future expansion, will not exceed 
        70 licensed hospital beds, or the combined licensed capacity of 
        the hospitals, whichever is less; 
           (11) the relocation of licensed hospital beds from an 
        existing state facility operated by the commissioner of human 
        services to a new or existing facility, building, or complex 
        operated by the commissioner of human services; from one 
        regional treatment center site to another; or from one building 
        or site to a new or existing building or site on the same 
        campus; or 
           (12) the construction or relocation of hospital beds 
        operated by a hospital having a statutory obligation to provide 
        hospital and medical services for the indigent that does not 
        result in a net increase in the number of hospital beds; or 
           (13) a construction project involving the addition of up to 
        31 new beds in an existing nonfederal hospital in Beltrami 
        county. 
           Sec. 2.  Minnesota Statutes 1998, section 144A.071, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 
        best interest of the state to ensure that nursing homes and 
        boarding care homes continue to meet the physical plant 
        licensing and certification requirements by permitting certain 
        construction projects.  Facilities should be maintained in 
        condition to satisfy the physical and emotional needs of 
        residents while allowing the state to maintain control over 
        nursing home expenditure growth. 
           The commissioner of health in coordination with the 
        commissioner of human services, may approve the renovation, 
        replacement, upgrading, or relocation of a nursing home or 
        boarding care home, under the following conditions: 
           (a) to license or certify beds in a new facility 
        constructed to replace a facility or to make repairs in an 
        existing facility that was destroyed or damaged after June 30, 
        1987, by fire, lightning, or other hazard provided:  
           (i) destruction was not caused by the intentional act of or 
        at the direction of a controlling person of the facility; 
           (ii) at the time the facility was destroyed or damaged the 
        controlling persons of the facility maintained insurance 
        coverage for the type of hazard that occurred in an amount that 
        a reasonable person would conclude was adequate; 
           (iii) the net proceeds from an insurance settlement for the 
        damages caused by the hazard are applied to the cost of the new 
        facility or repairs; 
           (iv) the new facility is constructed on the same site as 
        the destroyed facility or on another site subject to the 
        restrictions in section 144A.073, subdivision 5; 
           (v) the number of licensed and certified beds in the new 
        facility does not exceed the number of licensed and certified 
        beds in the destroyed facility; and 
           (vi) the commissioner determines that the replacement beds 
        are needed to prevent an inadequate supply of beds. 
        Project construction costs incurred for repairs authorized under 
        this clause shall not be considered in the dollar threshold 
        amount defined in subdivision 2; 
           (b) to license or certify beds that are moved from one 
        location to another within a nursing home facility, provided the 
        total costs of remodeling performed in conjunction with the 
        relocation of beds does not exceed $750,000; 
           (c) to license or certify beds in a project recommended for 
        approval under section 144A.073; 
           (d) to license or certify beds that are moved from an 
        existing state nursing home to a different state facility, 
        provided there is no net increase in the number of state nursing 
        home beds; 
           (e) to certify and license as nursing home beds boarding 
        care beds in a certified boarding care facility if the beds meet 
        the standards for nursing home licensure, or in a facility that 
        was granted an exception to the moratorium under section 
        144A.073, and if the cost of any remodeling of the facility does 
        not exceed $750,000.  If boarding care beds are licensed as 
        nursing home beds, the number of boarding care beds in the 
        facility must not increase beyond the number remaining at the 
        time of the upgrade in licensure.  The provisions contained in 
        section 144A.073 regarding the upgrading of the facilities do 
        not apply to facilities that satisfy these requirements; 
           (f) to license and certify up to 40 beds transferred from 
        an existing facility owned and operated by the Amherst H. Wilder 
        Foundation in the city of St. Paul to a new unit at the same 
        location as the existing facility that will serve persons with 
        Alzheimer's disease and other related disorders.  The transfer 
        of beds may occur gradually or in stages, provided the total 
        number of beds transferred does not exceed 40.  At the time of 
        licensure and certification of a bed or beds in the new unit, 
        the commissioner of health shall delicense and decertify the 
        same number of beds in the existing facility.  As a condition of 
        receiving a license or certification under this clause, the 
        facility must make a written commitment to the commissioner of 
        human services that it will not seek to receive an increase in 
        its property-related payment rate as a result of the transfers 
        allowed under this paragraph; 
           (g) to license and certify nursing home beds to replace 
        currently licensed and certified boarding care beds which may be 
        located either in a remodeled or renovated boarding care or 
        nursing home facility or in a remodeled, renovated, newly 
        constructed, or replacement nursing home facility within the 
        identifiable complex of health care facilities in which the 
        currently licensed boarding care beds are presently located, 
        provided that the number of boarding care beds in the facility 
        or complex are decreased by the number to be licensed as nursing 
        home beds and further provided that, if the total costs of new 
        construction, replacement, remodeling, or renovation exceed ten 
        percent of the appraised value of the facility or $200,000, 
        whichever is less, the facility makes a written commitment to 
        the commissioner of human services that it will not seek to 
        receive an increase in its property-related payment rate by 
        reason of the new construction, replacement, remodeling, or 
        renovation.  The provisions contained in section 144A.073 
        regarding the upgrading of facilities do not apply to facilities 
        that satisfy these requirements; 
           (h) to license as a nursing home and certify as a nursing 
        facility a facility that is licensed as a boarding care facility 
        but not certified under the medical assistance program, but only 
        if the commissioner of human services certifies to the 
        commissioner of health that licensing the facility as a nursing 
        home and certifying the facility as a nursing facility will 
        result in a net annual savings to the state general fund of 
        $200,000 or more; 
           (i) to certify, after September 30, 1992, and prior to July 
        1, 1993, existing nursing home beds in a facility that was 
        licensed and in operation prior to January 1, 1992; 
           (j) to license and certify new nursing home beds to replace 
        beds in a facility acquired by the Minneapolis community 
        development agency as part of redevelopment activities in a city 
        of the first class, provided the new facility is located within 
        three miles of the site of the old facility.  Operating and 
        property costs for the new facility must be determined and 
        allowed under section 256B.431 or 256B.434; 
           (k) to license and certify up to 20 new nursing home beds 
        in a community-operated hospital and attached convalescent and 
        nursing care facility with 40 beds on April 21, 1991, that 
        suspended operation of the hospital in April 1986.  The 
        commissioner of human services shall provide the facility with 
        the same per diem property-related payment rate for each 
        additional licensed and certified bed as it will receive for its 
        existing 40 beds; 
           (l) to license or certify beds in renovation, replacement, 
        or upgrading projects as defined in section 144A.073, 
        subdivision 1, so long as the cumulative total costs of the 
        facility's remodeling projects do not exceed $750,000; 
           (m) to license and certify beds that are moved from one 
        location to another for the purposes of converting up to five 
        four-bed wards to single or double occupancy rooms in a nursing 
        home that, as of January 1, 1993, was county-owned and had a 
        licensed capacity of 115 beds; 
           (n) to allow a facility that on April 16, 1993, was a 
        106-bed licensed and certified nursing facility located in 
        Minneapolis to layaway all of its licensed and certified nursing 
        home beds.  These beds may be relicensed and recertified in a 
        newly-constructed teaching nursing home facility affiliated with 
        a teaching hospital upon approval by the legislature.  The 
        proposal must be developed in consultation with the interagency 
        committee on long-term care planning.  The beds on layaway 
        status shall have the same status as voluntarily delicensed and 
        decertified beds, except that beds on layaway status remain 
        subject to the surcharge in section 256.9657.  This layaway 
        provision expires July 1, 1998; 
           (o) to allow a project which will be completed in 
        conjunction with an approved moratorium exception project for a 
        nursing home in southern Cass county and which is directly 
        related to that portion of the facility that must be repaired, 
        renovated, or replaced, to correct an emergency plumbing problem 
        for which a state correction order has been issued and which 
        must be corrected by August 31, 1993; 
           (p) to allow a facility that on April 16, 1993, was a 
        368-bed licensed and certified nursing facility located in 
        Minneapolis to layaway, upon 30 days prior written notice to the 
        commissioner, up to 30 of the facility's licensed and certified 
        beds by converting three-bed wards to single or double 
        occupancy.  Beds on layaway status shall have the same status as 
        voluntarily delicensed and decertified beds except that beds on 
        layaway status remain subject to the surcharge in section 
        256.9657, remain subject to the license application and renewal 
        fees under section 144A.07 and shall be subject to a $100 per 
        bed reactivation fee.  In addition, at any time within three 
        years of the effective date of the layaway, the beds on layaway 
        status may be: 
           (1) relicensed and recertified upon relocation and 
        reactivation of some or all of the beds to an existing licensed 
        and certified facility or facilities located in Pine River, 
        Brainerd, or International Falls; provided that the total 
        project construction costs related to the relocation of beds 
        from layaway status for any facility receiving relocated beds 
        may not exceed the dollar threshold provided in subdivision 2 
        unless the construction project has been approved through the 
        moratorium exception process under section 144A.073; 
           (2) relicensed and recertified, upon reactivation of some 
        or all of the beds within the facility which placed the beds in 
        layaway status, if the commissioner has determined a need for 
        the reactivation of the beds on layaway status. 
           The property-related payment rate of a facility placing 
        beds on layaway status must be adjusted by the incremental 
        change in its rental per diem after recalculating the rental per 
        diem as provided in section 256B.431, subdivision 3a, paragraph 
        (d).  The property-related payment rate for a facility 
        relicensing and recertifying beds from layaway status must be 
        adjusted by the incremental change in its rental per diem after 
        recalculating its rental per diem using the number of beds after 
        the relicensing to establish the facility's capacity day 
        divisor, which shall be effective the first day of the month 
        following the month in which the relicensing and recertification 
        became effective.  Any beds remaining on layaway status more 
        than three years after the date the layaway status became 
        effective must be removed from layaway status and immediately 
        delicensed and decertified; 
           (q) to license and certify beds in a renovation and 
        remodeling project to convert 12 four-bed wards into 24 two-bed 
        rooms, expand space, and add improvements in a nursing home 
        that, as of January 1, 1994, met the following conditions:  the 
        nursing home was located in Ramsey county; had a licensed 
        capacity of 154 beds; and had been ranked among the top 15 
        applicants by the 1993 moratorium exceptions advisory review 
        panel.  The total project construction cost estimate for this 
        project must not exceed the cost estimate submitted in 
        connection with the 1993 moratorium exception process; 
           (r) to license and certify up to 117 beds that are 
        relocated from a licensed and certified 138-bed nursing facility 
        located in St. Paul to a hospital with 130 licensed hospital 
        beds located in South St. Paul, provided that the nursing 
        facility and hospital are owned by the same or a related 
        organization and that prior to the date the relocation is 
        completed the hospital ceases operation of its inpatient 
        hospital services at that hospital.  After relocation, the 
        nursing facility's status under section 256B.431, subdivision 
        2j, shall be the same as it was prior to relocation.  The 
        nursing facility's property-related payment rate resulting from 
        the project authorized in this paragraph shall become effective 
        no earlier than April 1, 1996.  For purposes of calculating the 
        incremental change in the facility's rental per diem resulting 
        from this project, the allowable appraised value of the nursing 
        facility portion of the existing health care facility physical 
        plant prior to the renovation and relocation may not exceed 
        $2,490,000; 
           (s) to license and certify two beds in a facility to 
        replace beds that were voluntarily delicensed and decertified on 
        June 28, 1991; 
           (t) to allow 16 licensed and certified beds located on July 
        1, 1994, in a 142-bed nursing home and 21-bed boarding care home 
        facility in Minneapolis, notwithstanding the licensure and 
        certification after July 1, 1995, of the Minneapolis facility as 
        a 147-bed nursing home facility after completion of a 
        construction project approved in 1993 under section 144A.073, to 
        be laid away upon 30 days' prior written notice to the 
        commissioner.  Beds on layaway status shall have the same status 
        as voluntarily delicensed or decertified beds except that they 
        shall remain subject to the surcharge in section 256.9657.  The 
        16 beds on layaway status may be relicensed as nursing home beds 
        and recertified at any time within five years of the effective 
        date of the layaway upon relocation of some or all of the beds 
        to a licensed and certified facility located in Watertown, 
        provided that the total project construction costs related to 
        the relocation of beds from layaway status for the Watertown 
        facility may not exceed the dollar threshold provided in 
        subdivision 2 unless the construction project has been approved 
        through the moratorium exception process under section 144A.073. 
           The property-related payment rate of the facility placing 
        beds on layaway status must be adjusted by the incremental 
        change in its rental per diem after recalculating the rental per 
        diem as provided in section 256B.431, subdivision 3a, paragraph 
        (d).  The property-related payment rate for the facility 
        relicensing and recertifying beds from layaway status must be 
        adjusted by the incremental change in its rental per diem after 
        recalculating its rental per diem using the number of beds after 
        the relicensing to establish the facility's capacity day 
        divisor, which shall be effective the first day of the month 
        following the month in which the relicensing and recertification 
        became effective.  Any beds remaining on layaway status more 
        than five years after the date the layaway status became 
        effective must be removed from layaway status and immediately 
        delicensed and decertified; 
           (u) to license and certify beds that are moved within an 
        existing area of a facility or to a newly constructed addition 
        which is built for the purpose of eliminating three- and 
        four-bed rooms and adding space for dining, lounge areas, 
        bathing rooms, and ancillary service areas in a nursing home 
        that, as of January 1, 1995, was located in Fridley and had a 
        licensed capacity of 129 beds; 
           (v) to relocate 36 beds in Crow Wing county and four beds 
        from Hennepin county to a 160-bed facility in Crow Wing county, 
        provided all the affected beds are under common ownership; 
           (w) to license and certify a total replacement project of 
        up to 49 beds located in Norman county that are relocated from a 
        nursing home destroyed by flood and whose residents were 
        relocated to other nursing homes.  The operating cost payment 
        rates for the new nursing facility shall be determined based on 
        the interim and settle-up payment provisions of Minnesota Rules, 
        part 9549.0057, and the reimbursement provisions of section 
        256B.431, except that subdivision 26, paragraphs (a) and (b), 
        shall not apply until the second rate year after the settle-up 
        cost report is filed.  Property-related reimbursement rates 
        shall be determined under section 256B.431, taking into account 
        any federal or state flood-related loans or grants provided to 
        the facility; 
           (x) to license and certify a total replacement project of 
        up to 129 beds located in Polk county that are relocated from a 
        nursing home destroyed by flood and whose residents were 
        relocated to other nursing homes.  The operating cost payment 
        rates for the new nursing facility shall be determined based on 
        the interim and settle-up payment provisions of Minnesota Rules, 
        part 9549.0057, and the reimbursement provisions of section 
        256B.431, except that subdivision 26, paragraphs (a) and (b), 
        shall not apply until the second rate year after the settle-up 
        cost report is filed.  Property-related reimbursement rates 
        shall be determined under section 256B.431, taking into account 
        any federal or state flood-related loans or grants provided to 
        the facility; 
           (y) to license and certify beds in a renovation and 
        remodeling project to convert 13 three-bed wards into 13 two-bed 
        rooms and 13 single-bed rooms, expand space, and add 
        improvements in a nursing home that, as of January 1, 1994, met 
        the following conditions:  the nursing home was located in 
        Ramsey county, was not owned by a hospital corporation, had a 
        licensed capacity of 64 beds, and had been ranked among the top 
        15 applicants by the 1993 moratorium exceptions advisory review 
        panel.  The total project construction cost estimate for this 
        project must not exceed the cost estimate submitted in 
        connection with the 1993 moratorium exception process; 
           (z) to license and certify up to 150 nursing home beds to 
        replace an existing 285 bed nursing facility located in St. 
        Paul.  The replacement project shall include both the renovation 
        of existing buildings and the construction of new facilities at 
        the existing site.  The reduction in the licensed capacity of 
        the existing facility shall occur during the construction 
        project as beds are taken out of service due to the construction 
        process.  Prior to the start of the construction process, the 
        facility shall provide written information to the commissioner 
        of health describing the process for bed reduction, plans for 
        the relocation of residents, and the estimated construction 
        schedule.  The relocation of residents shall be in accordance 
        with the provisions of law and rule; or 
           (aa) to allow the commissioner of human services to license 
        an additional 36 beds to provide residential services for the 
        physically handicapped under Minnesota Rules, parts 9570.2000 to 
        9570.3400, in a 198-bed nursing home located in Red Wing, 
        provided that the total number of licensed and certified beds at 
        the facility does not increase; 
           (bb) to license and certify a new facility in St. Louis 
        county with 44 beds constructed to replace an existing facility 
        in St. Louis county with 31 beds, which has resident rooms on 
        two separate floors and an antiquated elevator that creates 
        safety concerns for residents and prevents nonambulatory 
        residents from residing on the second floor.  The project shall 
        include the elimination of three- and four-bed rooms; 
           (cc) to license and certify four beds in a 16-bed certified 
        boarding care home in Minneapolis to replace beds that were 
        voluntarily delicensed and decertified on or before March 31, 
        1992.  The licensure and certification is conditional upon the 
        facility periodically assessing and adjusting its resident mix 
        and other factors which may contribute to a potential 
        institution for mental disease declaration.  The commissioner of 
        human services shall retain the authority to audit the facility 
        at any time and shall require the facility to comply with any 
        requirements necessary to prevent an institution for mental 
        disease declaration, including delicensure and decertification 
        of beds, if necessary; or 
           (dd) to license and certify 72 beds in an existing facility 
        in Mille Lacs county with 80 beds as part of a renovation 
        project.  The renovation must include construction of an 
        addition to accommodate ten residents with beginning and 
        midstage dementia in a self-contained living unit; creation of 
        three resident households where dining, activities, and support 
        spaces are located near resident living quarters; designation of 
        four beds for rehabilitation in a self-contained area; 
        designation of 30 private rooms; and other improvements. 
           Sec. 3.  Minnesota Statutes 1998, section 144A.071, is 
        amended by adding a subdivision to read: 
           Subd. 4b.  [LICENSED BEDS ON LAYAWAY STATUS.] A licensed 
        and certified nursing facility may lay away, upon prior written 
        notice to the commissioner of health, up to 50 percent of its 
        licensed and certified beds.  A nursing facility may not 
        discharge a resident in order to lay away a bed.  Notice to the 
        commissioner shall be given 60 days prior to the effective date 
        of the layaway.  Beds on layaway shall have the same status as 
        voluntarily delicensed and decertified beds and shall not be 
        subject to license fees and license surcharge fees.  In 
        addition, beds on layaway may be removed from layaway at any 
        time on or after one year after the effective date of layaway in 
        the facility of origin, with a 60-day notice to the 
        commissioner.  A nursing facility that removes beds from layaway 
        may not place beds on layaway status for one year after the 
        effective date of the removal from layaway.  The commissioner 
        may approve the immediate removal of beds from layaway if 
        necessary to provide access to those nursing home beds to 
        residents relocated from other nursing homes due to emergency 
        situations or closure.  In the event approval is granted, the 
        one-year restriction on placing beds on layaway after a removal 
        of beds from layaway shall not apply.  Beds may remain on 
        layaway for up to five years. 
           Sec. 4.  Minnesota Statutes 1998, section 148B.32, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [UNLICENSED PRACTICE PROHIBITED.] After 
        adoption of rules by the board implementing sections 148B.29 to 
        148B.39, no individual shall engage in marriage and family 
        therapy practice unless that individual holds a valid license 
        issued under sections 148B.29 to 148B.39. 
           Marriage and family therapists may not be reimbursed under 
        medical assistance, chapter 256B, except to the extent such care 
        is reimbursed under section 256B.0625, subdivision 5, or when 
        marriage and family therapists are employed by a managed care 
        organization with a contract to provide mental health care to 
        medical assistance enrollees, and are reimbursed through the 
        managed care organization. 
           Sec. 5.  Minnesota Statutes 1998, section 252.28, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [OLMSTED COUNTY LICENSING EXEMPTION.] (a) 
        Notwithstanding subdivision 3, the commissioner may license 
        service sites each accommodating up to five residents moving 
        from a 43-bed intermediate care facility for persons with mental 
        retardation or related conditions located in Olmsted county that 
        is closing under section 252.292. 
           (b) Notwithstanding the provisions of any other state law 
        or administrative rule, the rate provisions of section 256I.05, 
        subdivision 1, apply to the exception in this subdivision. 
           Sec. 6.  Minnesota Statutes 1999 Supplement, section 
        256.01, subdivision 2, is amended to read: 
           Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
        section 241.021, subdivision 2, the commissioner of human 
        services shall: 
           (1) Administer and supervise all forms of public assistance 
        provided for by state law and other welfare activities or 
        services as are vested in the commissioner.  Administration and 
        supervision of human services activities or services includes, 
        but is not limited to, assuring timely and accurate distribution 
        of benefits, completeness of service, and quality program 
        management.  In addition to administering and supervising human 
        services activities vested by law in the department, the 
        commissioner shall have the authority to: 
           (a) require county agency participation in training and 
        technical assistance programs to promote compliance with 
        statutes, rules, federal laws, regulations, and policies 
        governing human services; 
           (b) monitor, on an ongoing basis, the performance of county 
        agencies in the operation and administration of human services, 
        enforce compliance with statutes, rules, federal laws, 
        regulations, and policies governing welfare services and promote 
        excellence of administration and program operation; 
           (c) develop a quality control program or other monitoring 
        program to review county performance and accuracy of benefit 
        determinations; 
           (d) require county agencies to make an adjustment to the 
        public assistance benefits issued to any individual consistent 
        with federal law and regulation and state law and rule and to 
        issue or recover benefits as appropriate; 
           (e) delay or deny payment of all or part of the state and 
        federal share of benefits and administrative reimbursement 
        according to the procedures set forth in section 256.017; 
           (f) make contracts with and grants to public and private 
        agencies and organizations, both profit and nonprofit, and 
        individuals, using appropriated funds; and 
           (g) enter into contractual agreements with federally 
        recognized Indian tribes with a reservation in Minnesota to the 
        extent necessary for the tribe to operate a federally approved 
        family assistance program or any other program under the 
        supervision of the commissioner.  The commissioner shall consult 
        with the affected county or counties in the contractual 
        agreement negotiations, if the county or counties wish to be 
        included, in order to avoid the duplication of county and tribal 
        assistance program services.  The commissioner may establish 
        necessary accounts for the purposes of receiving and disbursing 
        funds as necessary for the operation of the programs. 
           (2) Inform county agencies, on a timely basis, of changes 
        in statute, rule, federal law, regulation, and policy necessary 
        to county agency administration of the programs. 
           (3) Administer and supervise all child welfare activities; 
        promote the enforcement of laws protecting handicapped, 
        dependent, neglected and delinquent children, and children born 
        to mothers who were not married to the children's fathers at the 
        times of the conception nor at the births of the children; 
        license and supervise child-caring and child-placing agencies 
        and institutions; supervise the care of children in boarding and 
        foster homes or in private institutions; and generally perform 
        all functions relating to the field of child welfare now vested 
        in the state board of control. 
           (4) Administer and supervise all noninstitutional service 
        to handicapped persons, including those who are visually 
        impaired, hearing impaired, or physically impaired or otherwise 
        handicapped.  The commissioner may provide and contract for the 
        care and treatment of qualified indigent children in facilities 
        other than those located and available at state hospitals when 
        it is not feasible to provide the service in state hospitals. 
           (5) Assist and actively cooperate with other departments, 
        agencies and institutions, local, state, and federal, by 
        performing services in conformity with the purposes of Laws 
        1939, chapter 431. 
           (6) Act as the agent of and cooperate with the federal 
        government in matters of mutual concern relative to and in 
        conformity with the provisions of Laws 1939, chapter 431, 
        including the administration of any federal funds granted to the 
        state to aid in the performance of any functions of the 
        commissioner as specified in Laws 1939, chapter 431, and 
        including the promulgation of rules making uniformly available 
        medical care benefits to all recipients of public assistance, at 
        such times as the federal government increases its participation 
        in assistance expenditures for medical care to recipients of 
        public assistance, the cost thereof to be borne in the same 
        proportion as are grants of aid to said recipients. 
           (7) Establish and maintain any administrative units 
        reasonably necessary for the performance of administrative 
        functions common to all divisions of the department. 
           (8) Act as designated guardian of both the estate and the 
        person of all the wards of the state of Minnesota, whether by 
        operation of law or by an order of court, without any further 
        act or proceeding whatever, except as to persons committed as 
        mentally retarded.  For children under the guardianship of the 
        commissioner whose interests would be best served by adoptive 
        placement, the commissioner may contract with a licensed 
        child-placing agency to provide adoption services.  A contract 
        with a licensed child-placing agency must be designed to 
        supplement existing county efforts and may not replace existing 
        county programs, unless the replacement is agreed to by the 
        county board and the appropriate exclusive bargaining 
        representative or the commissioner has evidence that child 
        placements of the county continue to be substantially below that 
        of other counties.  Funds encumbered and obligated under an 
        agreement for a specific child shall remain available until the 
        terms of the agreement are fulfilled or the agreement is 
        terminated. 
           (9) Act as coordinating referral and informational center 
        on requests for service for newly arrived immigrants coming to 
        Minnesota. 
           (10) The specific enumeration of powers and duties as 
        hereinabove set forth shall in no way be construed to be a 
        limitation upon the general transfer of powers herein contained. 
           (11) Establish county, regional, or statewide schedules of 
        maximum fees and charges which may be paid by county agencies 
        for medical, dental, surgical, hospital, nursing and nursing 
        home care and medicine and medical supplies under all programs 
        of medical care provided by the state and for congregate living 
        care under the income maintenance programs. 
           (12) Have the authority to conduct and administer 
        experimental projects to test methods and procedures of 
        administering assistance and services to recipients or potential 
        recipients of public welfare.  To carry out such experimental 
        projects, it is further provided that the commissioner of human 
        services is authorized to waive the enforcement of existing 
        specific statutory program requirements, rules, and standards in 
        one or more counties.  The order establishing the waiver shall 
        provide alternative methods and procedures of administration, 
        shall not be in conflict with the basic purposes, coverage, or 
        benefits provided by law, and in no event shall the duration of 
        a project exceed four years.  It is further provided that no 
        order establishing an experimental project as authorized by the 
        provisions of this section shall become effective until the 
        following conditions have been met: 
           (a) The secretary of health and human services of the 
        United States has agreed, for the same project, to waive state 
        plan requirements relative to statewide uniformity. 
           (b) A comprehensive plan, including estimated project 
        costs, shall be approved by the legislative advisory commission 
        and filed with the commissioner of administration.  
           (13) According to federal requirements, establish 
        procedures to be followed by local welfare boards in creating 
        citizen advisory committees, including procedures for selection 
        of committee members. 
           (14) Allocate federal fiscal disallowances or sanctions 
        which are based on quality control error rates for the aid to 
        families with dependent children program formerly codified in 
        sections 256.72 to 256.87, medical assistance, or food stamp 
        program in the following manner:  
           (a) One-half of the total amount of the disallowance shall 
        be borne by the county boards responsible for administering the 
        programs.  For the medical assistance and the AFDC program 
        formerly codified in sections 256.72 to 256.87, disallowances 
        shall be shared by each county board in the same proportion as 
        that county's expenditures for the sanctioned program are to the 
        total of all counties' expenditures for the AFDC program 
        formerly codified in sections 256.72 to 256.87, and medical 
        assistance programs.  For the food stamp program, sanctions 
        shall be shared by each county board, with 50 percent of the 
        sanction being distributed to each county in the same proportion 
        as that county's administrative costs for food stamps are to the 
        total of all food stamp administrative costs for all counties, 
        and 50 percent of the sanctions being distributed to each county 
        in the same proportion as that county's value of food stamp 
        benefits issued are to the total of all benefits issued for all 
        counties.  Each county shall pay its share of the disallowance 
        to the state of Minnesota.  When a county fails to pay the 
        amount due hereunder, the commissioner may deduct the amount 
        from reimbursement otherwise due the county, or the attorney 
        general, upon the request of the commissioner, may institute 
        civil action to recover the amount due. 
           (b) Notwithstanding the provisions of paragraph (a), if the 
        disallowance results from knowing noncompliance by one or more 
        counties with a specific program instruction, and that knowing 
        noncompliance is a matter of official county board record, the 
        commissioner may require payment or recover from the county or 
        counties, in the manner prescribed in paragraph (a), an amount 
        equal to the portion of the total disallowance which resulted 
        from the noncompliance, and may distribute the balance of the 
        disallowance according to paragraph (a).  
           (15) Develop and implement special projects that maximize 
        reimbursements and result in the recovery of money to the 
        state.  For the purpose of recovering state money, the 
        commissioner may enter into contracts with third parties.  Any 
        recoveries that result from projects or contracts entered into 
        under this paragraph shall be deposited in the state treasury 
        and credited to a special account until the balance in the 
        account reaches $1,000,000.  When the balance in the account 
        exceeds $1,000,000, the excess shall be transferred and credited 
        to the general fund.  All money in the account is appropriated 
        to the commissioner for the purposes of this paragraph. 
           (16) Have the authority to make direct payments to 
        facilities providing shelter to women and their children 
        according to section 256D.05, subdivision 3.  Upon the written 
        request of a shelter facility that has been denied payments 
        under section 256D.05, subdivision 3, the commissioner shall 
        review all relevant evidence and make a determination within 30 
        days of the request for review regarding issuance of direct 
        payments to the shelter facility.  Failure to act within 30 days 
        shall be considered a determination not to issue direct payments.
           (17) Have the authority to establish and enforce the 
        following county reporting requirements:  
           (a) The commissioner shall establish fiscal and statistical 
        reporting requirements necessary to account for the expenditure 
        of funds allocated to counties for human services programs.  
        When establishing financial and statistical reporting 
        requirements, the commissioner shall evaluate all reports, in 
        consultation with the counties, to determine if the reports can 
        be simplified or the number of reports can be reduced. 
           (b) The county board shall submit monthly or quarterly 
        reports to the department as required by the commissioner.  
        Monthly reports are due no later than 15 working days after the 
        end of the month.  Quarterly reports are due no later than 30 
        calendar days after the end of the quarter, unless the 
        commissioner determines that the deadline must be shortened to 
        20 calendar days to avoid jeopardizing compliance with federal 
        deadlines or risking a loss of federal funding.  Only reports 
        that are complete, legible, and in the required format shall be 
        accepted by the commissioner.  
           (c) If the required reports are not received by the 
        deadlines established in clause (b), the commissioner may delay 
        payments and withhold funds from the county board until the next 
        reporting period.  When the report is needed to account for the 
        use of federal funds and the late report results in a reduction 
        in federal funding, the commissioner shall withhold from the 
        county boards with late reports an amount equal to the reduction 
        in federal funding until full federal funding is received.  
           (d) A county board that submits reports that are late, 
        illegible, incomplete, or not in the required format for two out 
        of three consecutive reporting periods is considered 
        noncompliant.  When a county board is found to be noncompliant, 
        the commissioner shall notify the county board of the reason the 
        county board is considered noncompliant and request that the 
        county board develop a corrective action plan stating how the 
        county board plans to correct the problem.  The corrective 
        action plan must be submitted to the commissioner within 45 days 
        after the date the county board received notice of noncompliance.
           (e) The final deadline for fiscal reports or amendments to 
        fiscal reports is one year after the date the report was 
        originally due.  If the commissioner does not receive a report 
        by the final deadline, the county board forfeits the funding 
        associated with the report for that reporting period and the 
        county board must repay any funds associated with the report 
        received for that reporting period. 
           (f) The commissioner may not delay payments, withhold 
        funds, or require repayment under paragraph (c) or (e) if the 
        county demonstrates that the commissioner failed to provide 
        appropriate forms, guidelines, and technical assistance to 
        enable the county to comply with the requirements.  If the 
        county board disagrees with an action taken by the commissioner 
        under paragraph (c) or (e), the county board may appeal the 
        action according to sections 14.57 to 14.69. 
           (g) Counties subject to withholding of funds under 
        paragraph (c) or forfeiture or repayment of funds under 
        paragraph (e) shall not reduce or withhold benefits or services 
        to clients to cover costs incurred due to actions taken by the 
        commissioner under paragraph (c) or (e). 
           (18) Allocate federal fiscal disallowances or sanctions for 
        audit exceptions when federal fiscal disallowances or sanctions 
        are based on a statewide random sample for the foster care 
        program under title IV-E of the Social Security Act, United 
        States Code, title 42, in direct proportion to each county's 
        title IV-E foster care maintenance claim for that period. 
           (19) Be responsible for ensuring the detection, prevention, 
        investigation, and resolution of fraudulent activities or 
        behavior by applicants, recipients, and other participants in 
        the human services programs administered by the department. 
           (20) Require county agencies to identify overpayments, 
        establish claims, and utilize all available and cost-beneficial 
        methodologies to collect and recover these overpayments in the 
        human services programs administered by the department. 
           (21) Have the authority to administer a drug rebate program 
        for drugs purchased pursuant to the senior citizen prescription 
        drug program established under section 256.955 after the 
        beneficiary's satisfaction of any deductible established in the 
        program.  The commissioner shall require a rebate agreement from 
        all manufacturers of covered drugs as defined in section 
        256B.0625, subdivision 13.  Rebate agreements for prescription 
        drugs delivered on or after July 1, 2002, must include rebates 
        for individuals covered under the prescription drug program who 
        are under 65 years of age.  For each drug, the amount of the 
        rebate shall be equal to the basic rebate as defined for 
        purposes of the federal rebate program in United States Code, 
        title 42, section 1396r-8(c)(1).  This basic rebate shall be 
        applied to single-source and multiple-source drugs.  The 
        manufacturers must provide full payment within 30 days of 
        receipt of the state invoice for the rebate within the terms and 
        conditions used for the federal rebate program established 
        pursuant to section 1927 of title XIX of the Social Security 
        Act.  The manufacturers must provide the commissioner with any 
        information necessary to verify the rebate determined per drug.  
        The rebate program shall utilize the terms and conditions used 
        for the federal rebate program established pursuant to section 
        1927 of title XIX of the Social Security Act. 
           (22) Operate the department's communication systems account 
        established in Laws 1993, First Special Session chapter 1, 
        article 1, section 2, subdivision 2, to manage shared 
        communication costs necessary for the operation of the programs 
        the commissioner supervises.  A communications account may also 
        be established for each regional treatment center which operates 
        communications systems.  Each account must be used to manage 
        shared communication costs necessary for the operations of the 
        programs the commissioner supervises.  The commissioner may 
        distribute the costs of operating and maintaining communication 
        systems to participants in a manner that reflects actual usage. 
        Costs may include acquisition, licensing, insurance, 
        maintenance, repair, staff time and other costs as determined by 
        the commissioner.  Nonprofit organizations and state, county, 
        and local government agencies involved in the operation of 
        programs the commissioner supervises may participate in the use 
        of the department's communications technology and share in the 
        cost of operation.  The commissioner may accept on behalf of the 
        state any gift, bequest, devise or personal property of any 
        kind, or money tendered to the state for any lawful purpose 
        pertaining to the communication activities of the department.  
        Any money received for this purpose must be deposited in the 
        department's communication systems accounts.  Money collected by 
        the commissioner for the use of communication systems must be 
        deposited in the state communication systems account and is 
        appropriated to the commissioner for purposes of this section. 
           (23) Receive any federal matching money that is made 
        available through the medical assistance program for the 
        consumer satisfaction survey.  Any federal money received for 
        the survey is appropriated to the commissioner for this 
        purpose.  The commissioner may expend the federal money received 
        for the consumer satisfaction survey in either year of the 
        biennium. 
           (24) Incorporate cost reimbursement claims from First Call 
        Minnesota into the federal cost reimbursement claiming processes 
        of the department according to federal law, rule, and 
        regulations.  Any reimbursement received is appropriated to the 
        commissioner and shall be disbursed to First Call Minnesota 
        according to normal department payment schedules. 
           (25) Develop recommended standards for foster care homes 
        that address the components of specialized therapeutic services 
        to be provided by foster care homes with those services. 
           Sec. 7.  Minnesota Statutes 1998, section 256.955, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
        services shall establish and administer a senior 
        citizen prescription drug program.  Qualified senior citizens 
        shall be eligible for prescription drug coverage under the 
        program beginning no later than January 1, 1999.  
           Sec. 8.  Minnesota Statutes 1998, section 256.955, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
        the following definitions apply. 
           (b) "Health plan" has the meaning provided in section 
        62Q.01, subdivision 3. 
           (c) "Health plan company" has the meaning provided in 
        section 62Q.01, subdivision 4. 
           (d) "Qualified senior citizen individual" means an 
        individual age 65 or older who: meets the requirements described 
        in subdivision 2a or 2b, and: 
           (1) is eligible as a qualified Medicare beneficiary 
        according to section 256B.057, subdivision 3 or 3a, or is 
        eligible under section 256B.057, subdivision 3 or 3a, and is 
        also eligible for medical assistance or general assistance 
        medical care with a spenddown as defined in section 256B.056, 
        subdivision 5.  Persons who are determined eligible for who is 
        not determined eligible for medical assistance according to 
        section 256B.0575, who are is not determined eligible for 
        medical assistance or general assistance medical care without a 
        spenddown, or who are is not enrolled in MinnesotaCare, are not 
        eligible for this program; 
           (2) is not enrolled in prescription drug coverage under a 
        health plan; 
           (3) is not enrolled in prescription drug coverage under a 
        Medicare supplement plan, as defined in sections 62A.31 to 
        62A.44, or policies, contracts, or certificates that supplement 
        Medicare issued by health maintenance organizations or those 
        policies, contracts, or certificates governed by section 1833 or 
        1876 of the federal Social Security Act, United States Code, 
        title 42, section 1395, et seq., as amended; 
           (4) has not had coverage described in clauses (2) and (3) 
        for at least four months prior to application for the program; 
        and 
           (5) is a permanent resident of Minnesota as defined in 
        section 256L.09. 
           EFFECTIVE DATE:  This section is effective October 1, 2000. 
           Sec. 9.  Minnesota Statutes 1998, section 256.955, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [ELIGIBILITY.] (a) An individual satisfying the 
        following requirements and the requirements described in 
        subdivision 2, paragraph (d), is eligible for the prescription 
        drug program: 
           (1) is at least 65 years of age or older; and 
           (2) is eligible as a qualified Medicare beneficiary 
        according to section 256B.057, subdivision 3 or 3a, or is 
        eligible under section 256B.057, subdivision 3 or 3a, and is 
        also eligible for medical assistance or general assistance 
        medical care with a spenddown as defined in section 256B.056, 
        subdivision 5. 
           EFFECTIVE DATE:  This section is effective October 1, 2000. 
           Sec. 10.  Minnesota Statutes 1998, section 256.955, is 
        amended by adding a subdivision to read: 
           Subd. 2b.  [ELIGIBILITY.] (a) Effective July 1, 2002, an 
        individual satisfying the following requirements and the 
        requirements described in subdivision 2, paragraph (d), is 
        eligible for the prescription drug program: 
           (1) is under 65 years of age; and 
           (2) is eligible as a qualified Medicare beneficiary 
        according to section 256B.057, subdivision 3, or is eligible 
        under section 256B.057, subdivision 3, and is also eligible for 
        medical assistance or general assistance medical care with a 
        spenddown as defined in section 256B.056, subdivision 5. 
           Sec. 11.  Minnesota Statutes 1999 Supplement, section 
        256.955, subdivision 4, is amended to read: 
           Subd. 4.  [APPLICATION PROCEDURES AND COORDINATION WITH 
        MEDICAL ASSISTANCE.] Applications and information on the program 
        must be made available at county social service agencies, health 
        care provider offices, and agencies and organizations serving 
        senior citizens and persons with disabilities.  Senior citizens 
        Individuals shall submit applications and any information 
        specified by the commissioner as being necessary to verify 
        eligibility directly to the county social service agencies:  
           (1) beginning January 1, 1999, the county social service 
        agency shall determine medical assistance spenddown eligibility 
        of individuals who qualify for the senior citizen prescription 
        drug program of individuals; and 
           (2) program payments will be used to reduce the spenddown 
        obligations of individuals who are determined to be eligible for 
        medical assistance with a spenddown as defined in section 
        256B.056, subdivision 5. 
        Seniors Qualified individuals who are eligible for medical 
        assistance with a spenddown shall be financially responsible for 
        the deductible amount up to the satisfaction of the spenddown.  
        No deductible applies once the spenddown has been met.  Payments 
        to providers for prescription drugs for persons eligible under 
        this subdivision shall be reduced by the deductible.  
           County social service agencies shall determine an 
        applicant's eligibility for the program within 30 days from the 
        date the application is received.  Eligibility begins the month 
        after approval. 
           Sec. 12.  Minnesota Statutes 1999 Supplement, section 
        256.955, subdivision 8, is amended to read: 
           Subd. 8.  [REPORT.] The commissioner shall annually report 
        to the legislature on the senior citizen prescription drug 
        program.  The report must include demographic information on 
        enrollees, per-prescription expenditures, total program 
        expenditures, hospital and nursing home costs avoided by 
        enrollees, any savings to medical assistance and Medicare 
        resulting from the provision of prescription drug coverage under 
        Medicare by health maintenance organizations, other public and 
        private options for drug assistance to the senior covered 
        population, any hardships caused by the annual deductible, and 
        any recommendations for changes in the senior prescription drug 
        program. 
           Sec. 13.  Minnesota Statutes 1999 Supplement, section 
        256.955, subdivision 9, is amended to read: 
           Subd. 9.  [PROGRAM LIMITATION.] The commissioner shall 
        administer the senior prescription drug program so that the 
        costs total no more than funds appropriated plus the drug rebate 
        proceeds.  Senior Prescription drug program rebate revenues are 
        appropriated to the commissioner and shall be expended to 
        augment funding of the senior prescription drug program.  New 
        enrollment shall cease if the commissioner determines that, 
        given current enrollment, costs of the program will exceed 
        appropriated funds and rebate proceeds.  This section shall be 
        repealed upon federal approval of the waiver to allow the 
        commissioner to provide prescription drug coverage for qualified 
        Medicare beneficiaries whose income is less than 150 percent of 
        the federal poverty guidelines. 
           Sec. 14.  Minnesota Statutes 1998, section 256.9751, is 
        amended to read: 
           256.9751 [CONGREGATE HOUSING ON-SITE COORDINATION (OSC) 
        SERVICES PROJECTS.] 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section, the following terms have the meanings given them.  
           (a)  [CONGREGATE HOUSING.] "Congregate housing" means 
        federally or locally subsidized housing and nonsubsidized low- 
        and moderate-income multifamily housing units which may not have 
        common areas for activities and for serving food, designed for 
        the elderly, consisting of private apartments and common areas 
        which can be used for activities and for serving meals. 
           (b)  [CONGREGATE HOUSING ON-SITE COORDINATION SERVICES 
        PROJECTS.] "Congregate housing On-site coordination services 
        project" means a project in which services are or could be made 
        available to older persons age 55 or older who live 
        in subsidized housing a designated service area and which helps 
        delay or prevent nursing home placement them remain 
        independent.  To be considered a congregate housing an on-site 
        coordination services project, a project must have:  (1) an 
        on-site coordinator, and; (2) a plan for assuring the 
        availability of one meal per day, seven days a week, for each 
        elderly participant in need who needs a meal to continue to live 
        independently; and (3) an approved designated service area.  
           (c)  [ON-SITE COORDINATOR.] "On-site coordinator" means a 
        person who works on-site in a building or buildings designated 
        service area and who serves as a contact for older persons who 
        need services, support, and assistance in order to delay or 
        prevent nursing home placement help them remain independent.  
           (d)  [CONGREGATE HOUSING ON-SITE COORDINATION SERVICES 
        PROJECT PARTICIPANTS OR PROJECT PARTICIPANTS.] "Congregate 
        housing On-site coordination services project participants" or 
        "project participants" means elderly persons 60 55 years old or 
        older, who are currently residents of, or who are applying for 
        residence in housing sites, planning to move into a designated 
        service area and who need support services to remain independent.
           (e)  [DESIGNATED SERVICE AREA OR DSA.] "Designated service 
        area" or "DSA" means the congregate housing site or sites, and 
        surrounding neighborhoods and communities that have a 
        concentration of persons age 55 or older that is higher than the 
        state average, in which on-site coordination services will be 
        provided. 
           Subd. 3.  [GRANT PROGRAM.] The Minnesota board on aging 
        commissioner shall establish a congregate housing an on-site 
        coordination services grant program which that is coordinated 
        with county government programs and services for elderly persons 
        and, in counties where they exist, with seniors' agenda for 
        independent living (SAIL) projects as defined in section 
        256B.0917, that will enable communities and neighborhoods to 
        provide on-site coordinators to serve as a contact for older 
        persons who need services and support, and or need assistance to 
        access in accessing services, in order to delay or prevent 
        nursing home placement and remain independent. 
           Subd. 4.  [USE OF GRANT FUNDS.] Grant funds shall be used 
        to develop and fund on-site coordinator positions.  Grant funds 
        shall not be used to duplicate existing funds, to modify 
        buildings, or to purchase equipment.  
           Subd. 5.  [GRANT ELIGIBILITY.] A public or nonprofit agency 
        or housing unit may apply for funds to provide a coordinator for 
        congregate housing on-site coordination services to an 
        identified population of frail elderly persons in a subsidized 
        multiunit apartment building or buildings in a 
        community designated service area.  The board commissioner shall 
        give preference to applicants that meet the requirements of this 
        section, and that have a common dining site in the designated 
        service area.  A local match may shall be required.  State money 
        received may also be used to match federal money allocated 
        for congregate housing on-site coordination services.  Grants 
        shall be awarded to urban and rural sites. 
           Subd. 6.  [CRITERIA FOR SELECTION.] The Minnesota board on 
        aging commissioner shall select projects under this section 
        according to the following criteria: 
           (1) the extent to which the proposed project assists older 
        persons to age-in-place to prevent or delay nursing home 
        placement; 
           (2) the extent to which the proposed project identifies the 
        needs of project participants; 
           (3) the extent to which the proposed project identifies how 
        the on-site coordinator will help meet the needs of project 
        participants; 
           (4) the extent to which the proposed project plan assures 
        the availability of one meal a day, seven days a week, for each 
        elderly participant in need in the designated service area; 
           (5) the extent to which the proposed project demonstrates 
        involvement of participants, communities, and family members in 
        the project; and 
           (6) the extent to which the proposed project demonstrates 
        involvement coordination of housing providers community agencies 
        and public and private service agencies, including area agencies 
        on aging. 
        The commissioner shall consult with the county board of the 
        county in which the project would be implemented, and shall not 
        select any project without approval of the county board.  A 
        designated service area with a senior dining program may be 
        given preference. 
           Subd. 7.  [GRANT APPLICATIONS.] The Minnesota board on 
        aging commissioner shall request proposals for grants and award 
        grants using the criteria in subdivision 6.  Grant applications 
        shall include: 
           (1) documentation of the need for congregate on-site 
        coordination services in the DSA so the residents can remain 
        independent; 
           (2) a description of the resources, such as social services 
        and health services, that will be available in the DSA community 
        to provide the necessary support services; 
           (3) a description of the target population, as defined in 
        subdivision 1, paragraph (d); 
           (4) a performance plan that includes written performance 
        objectives, outcomes, timelines, and the procedure the grantee 
        will use to document and measure success in meeting the 
        objectives; and 
           (5) letters of support from appropriate public and private 
        agencies and organizations, such as area agencies on aging and 
        county human service departments that demonstrate an intent to 
        work with collaborate and coordinate with the agency requesting 
        a grant.  
           Subd. 8.  [REPORT.] By January 1, 1993, the Minnesota board 
        on aging shall submit a report to the legislature evaluating the 
        programs.  The report must document the project costs and 
        outcomes that helped delay or prevent nursing home placement.  
        The report must describe steps taken for quality assurance and 
        must also include recommendations based on the project 
        findings.  The commissioner shall collect data on a quarterly 
        basis on the number of persons served and other factors relating 
        to the goals, activities, and accomplishments of the projects.  
        The commissioner shall provide this data in summary form to the 
        legislature in annual reports, due January 1, 2001, and each 
        January 1 thereafter.  The annual reports must also include 
        recommendations based on project findings. 
           Subd. 9.  [TECHNICAL ASSISTANCE.] The commissioner may 
        provide technical assistance to sponsors of on-site coordination 
        services programs or may contract or delegate the provision of 
        technical assistance. 
           Subd. 10.  [OTHER AGENCIES.] The commissioner may delegate, 
        use, or employ any federal, state, regional, or local public or 
        private agency or organization, including organizations of 
        physically handicapped persons, upon terms the commissioner 
        deems necessary or desirable, to assist in the exercise of any 
        of the powers granted in this section. 
           Sec. 15.  Minnesota Statutes 1999 Supplement, section 
        256B.057, subdivision 3, is amended to read: 
           Subd. 3.  [QUALIFIED MEDICARE BENEFICIARIES.] A person who 
        is entitled to Part A Medicare benefits, whose income is equal 
        to or less than 100 percent of the federal poverty guidelines, 
        and whose assets are no more than twice the asset limit used to 
        determine eligibility for the supplemental security income 
        program $10,000 for a single individual and $18,000 for a 
        married couple or family of two or more, is eligible for medical 
        assistance reimbursement of Part A and Part B premiums, Part A 
        and Part B coinsurance and deductibles, and cost-effective 
        premiums for enrollment with a health maintenance organization 
        or a competitive medical plan under section 1876 of the Social 
        Security Act.  Reimbursement of the Medicare coinsurance and 
        deductibles, when added to the amount paid by Medicare, must not 
        exceed the total rate the provider would have received for the 
        same service or services if the person were a medical assistance 
        recipient with Medicare coverage.  Increases in benefits under 
        Title II of the Social Security Act shall not be counted as 
        income for purposes of this subdivision until the first day of 
        the second full month following publication of the change in the 
        federal poverty guidelines.  
           EFFECTIVE DATE:  This section is effective October 1, 2000. 
           Sec. 16.  Minnesota Statutes 1998, section 256B.0625, is 
        amended by adding a subdivision to read: 
           Subd. 42.  [MENTAL HEALTH PROFESSIONAL.] Notwithstanding 
        Minnesota Rules, part 9505.0175, subpart 28, the definition of a 
        mental health professional shall include a person who is 
        qualified as specified in section 245.462, subdivision 18, 
        clause (5); or 245.4871, subdivision 27, clause (5), for the 
        purpose of this section and Minnesota Rules, parts 9505.0170 to 
        9505.0475.  
           Sec. 17.  Minnesota Statutes 1999 Supplement, section 
        256B.094, subdivision 6, is amended to read: 
           Subd. 6.  [MEDICAL ASSISTANCE REIMBURSEMENT OF CASE 
        MANAGEMENT SERVICES.] (a) Medical assistance reimbursement for 
        services under this section shall be made on a monthly basis.  
        Payment is based on face-to-face or telephone contacts between 
        the case manager and the client, client's family, primary 
        caregiver, legal representative, or other relevant person 
        identified as necessary to the development or implementation of 
        the goals of the individual service plan regarding the status of 
        the client, the individual service plan, or the goals for the 
        client.  These contacts must meet the minimum standards in 
        clauses (1) and (2):  
           (1) there must be a face-to-face contact at least once a 
        month except as provided in clause (2); and 
           (2) for a client placed outside of the county of financial 
        responsibility in an excluded time facility under section 
        256G.02, subdivision 6, or through the Interstate Compact on the 
        Placement of Children, section 260.851, and the placement in 
        either case is more than 60 miles beyond the county boundaries, 
        there must be at least one contact per month and not more than 
        two consecutive months without a face-to-face contact. 
           (b) Except as provided under paragraph (c), the payment 
        rate is established using time study data on activities of 
        provider service staff and reports required under sections 
        245.482, 256.01, subdivision 2, paragraph (17), and 256E.08, 
        subdivision 8. 
           (c) Payments for tribes may be made according to section 
        256B.0625 or other relevant federally approved rate setting 
        methodology for child welfare targeted case management provided 
        by Indian health services and facilities operated by a tribe or 
        tribal organization. 
           (d) Payment for case management provided by county or 
        tribal social services contracted vendors shall be based on a 
        monthly rate negotiated by the host county or tribal social 
        services.  The negotiated rate must not exceed the rate charged 
        by the vendor for the same service to other payers.  If the 
        service is provided by a team of contracted vendors, the county 
        or tribal social services may negotiate a team rate with a 
        vendor who is a member of the team.  The team shall determine 
        how to distribute the rate among its members.  No reimbursement 
        received by contracted vendors shall be returned to the county 
        or tribal social services, except to reimburse the county or 
        tribal social services for advance funding provided by the 
        county or tribal social services to the vendor. 
           (e) If the service is provided by a team that includes 
        contracted vendors and county or tribal social services staff, 
        the costs for county or tribal social services staff 
        participation in the team shall be included in the rate for 
        county or tribal social services provided services.  In this 
        case, the contracted vendor and the county or tribal social 
        services may each receive separate payment for services provided 
        by each entity in the same month.  To prevent duplication of 
        services, each entity must document, in the recipient's file, 
        the need for team case management and a description of the roles 
        and services of the team members. 
           Separate payment rates may be established for different 
        groups of providers to maximize reimbursement as determined by 
        the commissioner.  The payment rate will be reviewed annually 
        and revised periodically to be consistent with the most recent 
        time study and other data.  Payment for services will be made 
        upon submission of a valid claim and verification of proper 
        documentation described in subdivision 7.  Federal 
        administrative revenue earned through the time study, or under 
        paragraph (c), shall be distributed according to earnings, to 
        counties, reservations, or groups of counties or reservations 
        which have the same payment rate under this subdivision, and to 
        the group of counties or reservations which are not certified 
        providers under section 256F.10.  The commissioner shall modify 
        the requirements set out in Minnesota Rules, parts 9550.0300 to 
        9550.0370, as necessary to accomplish this. 
           Sec. 18.  Minnesota Statutes 1999 Supplement, section 
        256B.431, subdivision 17, is amended to read: 
           Subd. 17.  [SPECIAL PROVISIONS FOR MORATORIUM EXCEPTIONS.] 
        (a) Notwithstanding Minnesota Rules, part 9549.0060, subpart 3, 
        for rate periods beginning on October 1, 1992, and for rate 
        years beginning after June 30, 1993, a nursing facility that (1) 
        has completed a construction project approved under section 
        144A.071, subdivision 4a, clause (m); (2) has completed a 
        construction project approved under section 144A.071, 
        subdivision 4a, and effective after June 30, 1995; or (3) has 
        completed a renovation, replacement, or upgrading project 
        approved under the moratorium exception process in section 
        144A.073 shall be reimbursed for costs directly identified to 
        that project as provided in subdivision 16 and this subdivision. 
           (b) Notwithstanding Minnesota Rules, part 9549.0060, 
        subparts 5, item A, subitems (1) and (3), and 7, item D, 
        allowable interest expense on debt shall include: 
           (1) interest expense on debt related to the cost of 
        purchasing or replacing depreciable equipment, excluding 
        vehicles, not to exceed six percent of the total historical cost 
        of the project; and 
           (2) interest expense on debt related to financing or 
        refinancing costs, including costs related to points, loan 
        origination fees, financing charges, legal fees, and title 
        searches; and issuance costs including bond discounts, bond 
        counsel, underwriter's counsel, corporate counsel, printing, and 
        financial forecasts.  Allowable debt related to items in this 
        clause shall not exceed seven percent of the total historical 
        cost of the project.  To the extent these costs are financed, 
        the straight-line amortization of the costs in this clause is 
        not an allowable cost; and 
           (3) interest on debt incurred for the establishment of a 
        debt reserve fund, net of the interest earned on the debt 
        reserve fund. 
           (c) Debt incurred for costs under paragraph (b) is not 
        subject to Minnesota Rules, part 9549.0060, subpart 5, item A, 
        subitem (5) or (6). 
           (d) The incremental increase in a nursing facility's rental 
        rate, determined under Minnesota Rules, parts 9549.0010 to 
        9549.0080, and this section, resulting from the acquisition of 
        allowable capital assets, and allowable debt and interest 
        expense under this subdivision shall be added to its 
        property-related payment rate and shall be effective on the 
        first day of the month following the month in which the 
        moratorium project was completed. 
           (e) Notwithstanding subdivision 3f, paragraph (a), for rate 
        periods beginning on October 1, 1992, and for rate years 
        beginning after June 30, 1993, the replacement-costs-new per bed 
        limit to be used in Minnesota Rules, part 9549.0060, subpart 4, 
        item B, for a nursing facility that has completed a renovation, 
        replacement, or upgrading project that has been approved under 
        the moratorium exception process in section 144A.073, or that 
        has completed an addition to or replacement of buildings, 
        attached fixtures, or land improvements for which the total 
        historical cost exceeds the lesser of $150,000 or ten percent of 
        the most recent appraised value, must be $47,500 per licensed 
        bed in multiple-bed rooms and $71,250 per licensed bed in a 
        single-bed room.  These amounts must be adjusted annually as 
        specified in subdivision 3f, paragraph (a), beginning January 1, 
        1993. 
           (f) A nursing facility that completes a project identified 
        in this subdivision and, as of April 17, 1992, has not been 
        mailed a rate notice with a special appraisal for a completed 
        project, or completes a project after April 17, 1992, but before 
        September 1, 1992, may elect either to request a special 
        reappraisal with the corresponding adjustment to the 
        property-related payment rate under the laws in effect on June 
        30, 1992, or to submit their capital asset and debt information 
        after that date and obtain the property-related payment rate 
        adjustment under this section, but not both. 
           (g) For purposes of this paragraph, a total replacement 
        means the complete replacement of the nursing facility's 
        physical plant through the construction of a new physical plant 
        or, the transfer of the nursing facility's license from one 
        physical plant location to another, or a new building addition 
        to relocate beds from three- and four-bed wards.  For total 
        replacement projects completed on or after July 1, 1992, the 
        commissioner shall compute the incremental change in the nursing 
        facility's rental per diem, for rate years beginning on or after 
        July 1, 1995, by replacing its appraised value, including the 
        historical capital asset costs, and the capital debt and 
        interest costs with the new nursing facility's allowable capital 
        asset costs and the related allowable capital debt and interest 
        costs.  If the new nursing facility has decreased its licensed 
        capacity, the aggregate investment per bed limit in subdivision 
        3a, paragraph (d), shall apply.  If the new nursing facility has 
        retained a portion of the original physical plant for nursing 
        facility usage, then a portion of the appraised value prior to 
        the replacement must be retained and included in the calculation 
        of the incremental change in the nursing facility's rental per 
        diem.  For purposes of this part, the original nursing facility 
        means the nursing facility prior to the total replacement 
        project.  The portion of the appraised value to be retained 
        shall be calculated according to clauses (1) to (3): 
           (1) The numerator of the allocation ratio shall be the 
        square footage of the area in the original physical plant which 
        is being retained for nursing facility usage. 
           (2) The denominator of the allocation ratio shall be the 
        total square footage of the original nursing facility physical 
        plant. 
           (3) Each component of the nursing facility's allowable 
        appraised value prior to the total replacement project shall be 
        multiplied by the allocation ratio developed by dividing clause 
        (1) by clause (2). 
           In the case of either type of total replacement as 
        authorized under section 144A.071 or 144A.073, the provisions of 
        this subdivision shall also apply.  For purposes of the 
        moratorium exception authorized under section 144A.071, 
        subdivision 4a, paragraph (s), if the total replacement involves 
        the renovation and use of an existing health care facility 
        physical plant, the new allowable capital asset costs and 
        related debt and interest costs shall include first the 
        allowable capital asset costs and related debt and interest 
        costs of the renovation, to which shall be added the allowable 
        capital asset costs of the existing physical plant prior to the 
        renovation, and if reported by the facility, the related 
        allowable capital debt and interest costs. 
           (h) Notwithstanding Minnesota Rules, part 9549.0060, 
        subpart 11, item C, subitem (2), for a total replacement, as 
        defined in paragraph (g), authorized under section 144A.071 or 
        144A.073 after July 1, 1999, or any building project that is a 
        relocation, renovation, upgrading, or conversion authorized 
        under section 144A.073, after July 1, 2001, the 
        replacement-costs-new per bed limit shall be $74,280 per 
        licensed bed in multiple-bed rooms, $92,850 per licensed bed in 
        semiprivate rooms with a fixed partition separating the resident 
        beds, and $111,420 per licensed bed in single rooms.  Minnesota 
        Rules, part 9549.0060, subpart 11, item C, subitem (2), does not 
        apply.  These amounts must be adjusted annually as specified in 
        subdivision 3f, paragraph (a), beginning January 1, 2000.  
           (i) For a total replacement, as defined in paragraph (g), 
        authorized under section 144A.073 for a 96-bed nursing home in 
        Carlton county, the replacement-costs-new per bed limit shall be 
        $74,280 per licensed bed in multiple-bed rooms, $92,850 per 
        licensed bed in semiprivate rooms with a fixed partition 
        separating the resident's beds, and $111,420 per licensed bed in 
        a single room.  Minnesota Rules, part 9549.0060, subpart 11, 
        item C, subitem (2), does not apply.  The resulting maximum 
        allowable replacement-costs-new multiplied by 1.25 shall 
        constitute the project's dollar threshold for purposes of 
        application of the limit set forth in section 144A.071, 
        subdivision 2.  The commissioner of health may waive the 
        requirements of section 144A.073, subdivision 3b, paragraph (b), 
        clause (2), on the condition that the other requirements of that 
        paragraph are met. 
           (j) For a total replacement, as defined in paragraph (g), 
        authorized under section 144A.073 involving a new building 
        addition that relocates beds from three-bed wards for an 80-bed 
        nursing home in Redwood county, the replacement-costs-new per 
        bed limit shall be $74,280 per licensed bed for multiple-bed 
        rooms; $92,850 per licensed bed for semiprivate rooms with a 
        fixed partition separating the beds; and $111,420 per licensed 
        bed for single rooms.  These amounts shall be adjusted annually, 
        beginning January 1, 2001.  Minnesota Rules, part 9549.0060, 
        subpart 11, item C, subitem (2), does not apply.  The resulting 
        maximum allowable replacement-costs-new multiplied by 1.25 shall 
        constitute the project's dollar threshold for purposes of 
        application of the limit set forth in section 144A.071, 
        subdivision 2.  The commissioner of health may waive the 
        requirements of section 144A.073, subdivision 3b, paragraph (b), 
        clause (2), on the condition that the other requirements of that 
        paragraph are met. 
           Sec. 19.  Minnesota Statutes 1999 Supplement, section 
        256B.431, subdivision 28, is amended to read: 
           Subd. 28.  [NURSING FACILITY RATE INCREASES BEGINNING JULY 
        1, 1999, AND JULY 1, 2000.] (a) For the rate years beginning 
        July 1, 1999, and July 1, 2000, the commissioner shall make 
        available to each nursing facility reimbursed under this section 
        or section 256B.434 an adjustment to the total operating payment 
        rate.  For nursing facilities reimbursed under this section or 
        section 256B.434, the July 1, 2000, operating payment rate 
        increases provided in this subdivision shall be applied to each 
        facility's June 30, 2000, operating payment rate.  For each 
        facility, total operating costs shall be separated into costs 
        that are compensation related and all other costs.  
        Compensation-related costs include salaries, payroll taxes, and 
        fringe benefits for all employees except management fees, the 
        administrator, and central office staff. 
           (b) For the rate year beginning July 1, 1999, the 
        commissioner shall make available a rate increase for 
        compensation-related costs of 4.843 percent and a rate increase 
        for all other operating costs of 3.446 percent. 
           (c) For the rate year beginning July 1, 2000, the 
        commissioner shall make available: 
           (1) a rate increase for compensation-related costs of 3.632 
        percent; 
           (2) an additional rate increase which must be used to 
        increase the per-hour pay rate of all employees except 
        management fees, the administrator, and central office staff by 
        an equal dollar amount and to pay associated costs for FICA, the 
        Medicare tax, workers' compensation premiums, and federal and 
        state unemployment insurance, to be calculated according to 
        clauses (i) to (iii): 
           (i) the commissioner shall calculate the arithmetic mean of 
        the eleven June 30, 2000, operating rates for each facility; 
           (ii) the commissioner shall construct an array of nursing 
        facilities from highest to lowest, according to the arithmetic 
        mean calculated in clause (i).  A numerical rank shall be 
        assigned to each facility in the array.  The facility with the 
        highest mean shall be assigned a numerical rank of one.  The 
        facility with the lowest mean shall be assigned a numerical rank 
        equal to the total number of nursing facilities in the array.  
        All other facilities shall be assigned a numerical rank in 
        accordance with their position in the array; 
           (iii) the amount of the additional rate increase shall be 
        $1 plus an amount equal to $3.13 multiplied by the ratio of the 
        facility's numeric rank divided by the number of facilities in 
        the array; and 
           (3) a rate increase for all other operating costs of 2.585 
        percent.  
           Money received by a facility as a result of the additional 
        rate increase provided under clause (2) shall be used only for 
        wage increases implemented on or after July 1, 2000, and shall 
        not be used for wage increases implemented prior to that date. 
           (d) The payment rate adjustment for each nursing facility 
        must be determined under clause (1) or (2): 
           (1) for each nursing facility that reports salaries for 
        registered nurses, licensed practical nurses, aides, orderlies, 
        and attendants separately, the commissioner shall determine the 
        payment rate adjustment using the categories specified in 
        paragraph (a) multiplied by the rate increases specified in 
        paragraph (b) or (c), and then dividing the resulting amount by 
        the nursing facility's actual resident days.  In determining the 
        amount of a payment rate adjustment for a nursing facility 
        reimbursed under section 256B.434, the commissioner shall 
        determine the proportions of the facility's rates that are 
        compensation-related costs and all other operating costs based 
        on the facility's most recent cost report; and 
           (2) for each nursing facility that does not report salaries 
        for registered nurses, licensed practical nurses, aides, 
        orderlies, and attendants separately, the payment rate 
        adjustment shall be computed using the facility's total 
        operating costs, separated into the categories specified in 
        paragraph (a) in proportion to the weighted average of all 
        facilities determined under clause (1), multiplied by the rate 
        increases specified in paragraph (b) or (c), and then dividing 
        the resulting amount by the nursing facility's actual resident 
        days. 
           (e) A nursing facility may apply for the 
        compensation-related payment rate adjustment calculated under 
        this subdivision.  The application must be made to the 
        commissioner and contain a plan by which the nursing facility 
        will distribute the compensation-related portion of the payment 
        rate adjustment to employees of the nursing facility.  For 
        nursing facilities in which the employees are represented by an 
        exclusive bargaining representative, an agreement negotiated and 
        agreed to by the employer and the exclusive bargaining 
        representative constitutes the plan.  For the second rate year, 
        a negotiated agreement constitutes the plan only if the 
        agreement is finalized after the date of enactment of all rate 
        increases for the second rate year.  The commissioner shall 
        review the plan to ensure that the payment rate adjustment per 
        diem is used as provided in paragraphs (a) to (c).  To be 
        eligible, a facility must submit its plan for the compensation 
        distribution by December 31 each year.  A facility may amend its 
        plan for the second rate year by submitting a revised plan by 
        December 31, 2000.  If a facility's plan for compensation 
        distribution is effective for its employees after July 1 of the 
        year that the funds are available, the payment rate adjustment 
        per diem shall be effective the same date as its plan. 
           (f) A copy of the approved distribution plan must be made 
        available to all employees.  This must be done by giving each 
        employee a copy or by posting it in an area of the nursing 
        facility to which all employees have access.  If an employee 
        does not receive the compensation adjustment described in their 
        facility's approved plan and is unable to resolve the problem 
        with the facility's management or through the employee's union 
        representative, the employee may contact the commissioner at an 
        address or phone number provided by the commissioner and 
        included in the approved plan.  
           (g) If the reimbursement system under section 256B.435 is 
        not implemented until July 1, 2001, the salary adjustment per 
        diem authorized in subdivision 2i, paragraph (c), shall continue 
        until June 30, 2001.  
           (h) For the rate year beginning July 1, 1999, the following 
        nursing facilities shall be allowed a rate increase equal to 67 
        percent of the rate increase that would be allowed if 
        subdivision 26, paragraph (a), was not applied: 
           (1) a nursing facility in Carver county licensed for 33 
        nursing home beds and four boarding care beds; 
           (2) a nursing facility in Faribault county licensed for 159 
        nursing home beds on September 30, 1998; and 
           (3) a nursing facility in Houston county licensed for 68 
        nursing home beds on September 30, 1998. 
           (i) For the rate year beginning July 1, 1999, the following 
        nursing facilities shall be allowed a rate increase equal to 67 
        percent of the rate increase that would be allowed if 
        subdivision 26, paragraphs (a) and (b), were not applied: 
           (1) a nursing facility in Chisago county licensed for 135 
        nursing home beds on September 30, 1998; and 
           (2) a nursing facility in Murray county licensed for 62 
        nursing home beds on September 30, 1998. 
           (j) For the rate year beginning July 1, 1999, a nursing 
        facility in Hennepin county licensed for 134 beds on September 
        30, 1998, shall: 
           (1) have the prior year's allowable care-related per diem 
        increased by $3.93 and the prior year's other operating cost per 
        diem increased by $1.69 before adding the inflation in 
        subdivision 26, paragraph (d), clause (2); and 
           (2) be allowed a rate increase equal to 67 percent of the 
        rate increase that would be allowed if subdivision 26, 
        paragraphs (a) and (b), were not applied. 
           The increases provided in paragraphs (h), (i), and (j) 
        shall be included in the facility's total payment rates for the 
        purposes of determining future rates under this section or any 
        other section. 
           Sec. 20.  Minnesota Statutes 1998, section 256B.431, is 
        amended by adding a subdivision to read: 
           Subd. 29.  [FACILITY RATE INCREASES EFFECTIVE JULY 1, 
        2000.] Following the determination under subdivision 28 of the 
        payment rate for the rate year beginning July 1, 2000, for a 
        facility in Roseau county licensed for 49 beds, the facility's 
        operating cost per diem shall be increased by the following 
        amounts: 
           (1) case mix class A, $1.97; 
           (2) case mix class B, $2.11; 
           (3) case mix class C, $2.26; 
           (4) case mix class D, $2.39; 
           (5) case mix class E, $2.54; 
           (6) case mix class F, $2.55; 
           (7) case mix class G, $2.66; 
           (8) case mix class H, $2.90; 
           (9) case mix class I, $2.97; 
           (10) case mix class J, $3.10; and 
           (11) case mix class K, $3.36. 
        These increases shall be included in the facility's total 
        payment rates for the purpose of determining future rates under 
        this section or any other section. 
           Sec. 21.  Minnesota Statutes 1998, section 256B.431, is 
        amended by adding a subdivision to read: 
           Subd. 30.  [BED LAYAWAY AND DELICENSURE.] (a) For rate 
        years beginning on or after July 1, 2000, a nursing facility 
        reimbursed under this section which has placed beds on layaway 
        shall, for purposes of application of the downsizing incentive 
        in subdivision 3a, paragraph (d), and calculation of the rental 
        per diem, have those beds given the same effect as if the beds 
        had been delicensed so long as the beds remain on layaway.  At 
        the time of a layaway, a facility may change its single bed 
        election for use in calculating capacity days under Minnesota 
        Rules, part 9549.0060, subpart 11.  The property payment rate 
        increase shall be effective the first day of the month following 
        the month in which the layaway of the beds becomes effective 
        under section 144A.071, subdivision 4b. 
           (b) For rate years beginning on or after July 1, 2000, 
        notwithstanding any provision to the contrary under section 
        256B.434, a nursing facility reimbursed under that section which 
        has placed beds on layaway shall, for so long as the beds remain 
        on layaway, be allowed to: 
           (1) aggregate the applicable investment per bed limits 
        based on the number of beds licensed immediately prior to 
        entering the alternative payment system; 
           (2) retain or change the facility's single bed election for 
        use in calculating capacity days under Minnesota Rules, part 
        9549.0060, subpart 11; and 
           (3) establish capacity days based on the number of beds 
        immediately prior to the layaway and the number of beds after 
        the layaway. 
        The commissioner shall increase the facility's property payment 
        rate by the incremental increase in the rental per diem 
        resulting from the recalculation of the facility's rental per 
        diem applying only the changes resulting from the layaway of 
        beds and clauses (1), (2), and (3).  If a facility reimbursed 
        under section 256B.434 completes a moratorium exception project 
        after its base year, the base year property rate shall be the 
        moratorium project property rate.  The base year rate shall be 
        inflated by the factors in section 256B.434, subdivision 4, 
        paragraph (c).  The property payment rate increase shall be 
        effective the first day of the month following the month in 
        which the layaway of the beds becomes effective. 
           (c) If a nursing facility removes a bed from layaway status 
        in accordance with section 144A.071, subdivision 4b, the 
        commissioner shall establish capacity days based on the number 
        of licensed and certified beds in the facility not on layaway 
        and shall reduce the nursing facility's property payment rate in 
        accordance with paragraph (b). 
           (d) For the rate years beginning on or after July 1, 2000, 
        notwithstanding any provision to the contrary under section 
        256B.434, a nursing facility reimbursed under that section, 
        which has delicensed beds after July 1, 2000, by giving notice 
        of the delicensure to the commissioner of health according to 
        the notice requirements in section 144A.071, subdivision 4b, 
        shall be allowed to: 
           (1) aggregate the applicable investment per bed limits 
        based on the number of beds licensed immediately prior to 
        entering the alternative payment system; 
           (2) retain or change the facility's single bed election for 
        use in calculating capacity days under Minnesota Rules, part 
        9549.0060, subpart 11; and 
           (3) establish capacity days based on the number of beds 
        immediately prior to the delicensure and the number of beds 
        after the delicensure. 
        The commissioner shall increase the facility's property payment 
        rate by the incremental increase in the rental per diem 
        resulting from the recalculation of the facility's rental per 
        diem applying only the changes resulting from the delicensure of 
        beds and clauses (1), (2), and (3).  If a facility reimbursed 
        under section 256B.434 completes a moratorium exception project 
        after its base year, the base year property rate shall be the 
        moratorium project property rate.  The base year rate shall be 
        inflated by the factors in section 256B.434, subdivision 4, 
        paragraph (c).  The property payment rate increase shall be 
        effective the first day of the month following the month in 
        which the delicensure of the beds becomes effective. 
           (e) For nursing facilities reimbursed under this section or 
        section 256B.434, any beds placed on layaway shall not be 
        included in calculating facility occupancy as it pertains to 
        leave days defined in Minnesota Rules, part 9505.0415. 
           (f) For nursing facilities reimbursed under this section or 
        section 256B.434, the rental rate calculated after placing beds 
        on layaway may not be less than the rental rate prior to placing 
        beds on layaway. 
           (g) A nursing facility receiving a rate adjustment as a 
        result of this section shall comply with section 256B.47, 
        subdivision 2. 
           (h) A facility that does not utilize the space made 
        available as a result of bed layaway or delicensure under this 
        subdivision to reduce the number of beds per room or provide 
        more common space for nursing facility uses or perform other 
        activities related to the operation of the nursing facility 
        shall have its property rate increase calculated under this 
        subdivision reduced by the ratio of the square footage made 
        available that is not used for these purposes to the total 
        square footage made available as a result of bed layaway or 
        delicensure. 
           Sec. 22.  Minnesota Statutes 1998, section 256B.434, is 
        amended by adding a subdivision to read: 
           Subd. 4b.  [FACILITY RATE INCREASES EFFECTIVE JULY 1, 
        2000.] For the rate year beginning July 1, 2000, the nursing 
        facilities described in clauses (1) to (6) shall receive the 
        rate increases indicated.  The increases under this subdivision 
        shall be added following the determination under section 
        256B.431, subdivision 28, of the payment rate for the rate year 
        beginning July 1, 2000, and shall be included in the facility's 
        total payment rates for the purposes of determining future rates 
        under this section or any other section: 
           (1) a nursing facility in Hennepin county licensed for 290 
        beds shall receive an operating cost per diem increase of 5.9 
        percent, provided that the facility delicenses, decertifies, or 
        places on layaway status, if that status is otherwise permitted 
        by law, 70 beds; 
           (2) a nursing facility in Goodhue county licensed for 84 
        beds shall receive an increase of $1.54 in each case mix payment 
        rate; 
           (3) a nursing facility located in Rochester and licensed 
        for 103 beds on January 1, 2000, shall receive an increase in 
        its case mix resident class A payment of $3.78, and an increase 
        in the payment rate for all other case mix classes of that 
        amount multiplied by the class weight for that case mix class 
        established in Minnesota Rules, part 9549.0058, subpart 3; 
           (4) a nursing facility in Wright county licensed for 154 
        beds shall receive an increase of $2.03 in each case mix payment 
        rate to be used for employee wage and benefit enhancements; 
           (5) a facility in Todd county licensed for 78 beds, shall 
        have its operating cost per diem increased by the following 
        amounts: 
           (i) case mix class A, $1.16; 
           (ii) case mix class B, $1.50; 
           (iii) case mix class C, $1.89; 
           (iv) case mix class D, $2.26; 
           (v) case mix class E, $2.63; 
           (vi) case mix class F, $2.65; 
           (vii) case mix class G, $2.96; 
           (viii) case mix class H, $3.55; 
           (ix) case mix class I, $3.76; 
           (x) case mix class J, $4.08; and 
           (xi) case mix class K, $4.76; and 
           (6) a nursing facility in Pine City that decertified 22 
        beds in calendar year 1999 shall have its property-related per 
        diem payment rate increased by $1.59. 
           Sec. 23.  Minnesota Statutes 1998, section 256B.501, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [ICF/MR RATE INCREASES BEGINNING OCTOBER 1, 
        1999, AND OCTOBER 1, 2000.] (a) For the rate years beginning 
        October 1, 1999, and October 1, 2000, the commissioner shall 
        make available to each facility reimbursed under this section, 
        section 256B.5011, and Laws 1993, First Special Session chapter 
        1, article 4, section 11, an adjustment to the total operating 
        payment rate.  For each facility, total operating costs shall be 
        separated into costs that are compensation related and all other 
        costs.  "Compensation-related costs" means the facility's 
        allowable program operating cost category employee training 
        expenses and the facility's allowable salaries, payroll taxes, 
        and fringe benefits.  The term does not include these same 
        salary-related costs for both administrative or central office 
        employees. 
           For the purpose of determining the adjustment to be granted 
        under this subdivision, the commissioner must use the most 
        recent cost report that has been subject to desk audit. 
           (b) For the rate year beginning October 1, 1999, the 
        commissioner shall make available a rate increase for 
        compensation-related costs of 4.6 percent and a rate increase 
        for all other operating costs of 3.2 percent. 
           (c) For the rate year beginning October 1, 2000, the 
        commissioner shall make available: 
           (1) a rate increase for compensation related costs of 6.5 
        percent, 45 percent of which shall be used to increase the 
        per-hour pay rate of all employees except administrative and 
        central office employees by an equal dollar amount and to pay 
        associated costs for FICA, the Medicare tax, workers' 
        compensation premiums, and federal and state unemployment 
        insurance provided that this portion of the compensation-related 
        increase shall be used only for wage increases implemented on or 
        after October 1, 2000, and shall not be used for wage increases 
        implemented prior to that date; and 
           (2) a rate increase for all other operating costs of two 
        percent. 
           (d) For each facility, the commissioner shall determine the 
        payment rate adjustment using the categories specified in 
        paragraph (a) multiplied by the rate increases specified in 
        paragraph (b) or (c), and then dividing the resulting amount by 
        the facility's actual resident days.  
           (e) Any facility whose payment rates are governed by 
        closure agreements, receivership agreements, or Minnesota Rules, 
        part 9553.0075, are not eligible for an adjustment otherwise 
        granted under this subdivision.  
           (f) A facility may apply for the compensation-related 
        payment rate adjustment calculated under this subdivision.  The 
        application must be made to the commissioner and contain a plan 
        by which the facility will distribute the compensation-related 
        portion of the payment rate adjustment to employees of the 
        facility.  For facilities in which the employees are represented 
        by an exclusive bargaining representative, an agreement 
        negotiated and agreed to by the employer and the exclusive 
        bargaining representative constitutes the plan.  For the second 
        rate year, a negotiated agreement may constitute the plan only 
        if the agreement is finalized after the date of enactment of all 
        rate increases for the second rate year.  The commissioner shall 
        review the plan to ensure that the payment rate adjustment per 
        diem is used as provided in this subdivision.  To be eligible, a 
        facility must submit its plan for the compensation distribution 
        by December 31 each year.  A facility may amend its plan for the 
        second rate year by submitting a revised plan by December 31, 
        2000.  If a facility's plan for compensation distribution is 
        effective for its employees after October 1 of the year that the 
        funds are available, the payment rate adjustment per diem shall 
        be effective the same date as its plan. 
           (g) A copy of the approved distribution plan must be made 
        available to all employees.  This must be done by giving each 
        employee a copy or by posting it in an area of the facility to 
        which all employees have access.  If an employee does not 
        receive the compensation adjustment described in their 
        facility's approved plan and is unable to resolve the problem 
        with the facility's management or through the employee's union 
        representative, the employee may contact the commissioner at an 
        address or telephone number provided by the commissioner and 
        included in the approved plan. 
           Sec. 24.  Minnesota Statutes 1999 Supplement, section 
        256B.69, subdivision 5b, is amended to read: 
           Subd. 5b.  [PROSPECTIVE REIMBURSEMENT RATES.] (a) For 
        prepaid medical assistance and general assistance medical care 
        program contract rates set by the commissioner under subdivision 
        5 and effective on or after January 1, 1998, capitation rates 
        for nonmetropolitan counties shall on a weighted average be no 
        less than 88 percent of the capitation rates for metropolitan 
        counties, excluding Hennepin county.  The commissioner shall 
        make a pro rata adjustment in capitation rates paid to counties 
        other than nonmetropolitan counties in order to make this 
        provision budget neutral.  
           (b) For prepaid medical assistance program contract rates 
        set by the commissioner under subdivision 5 and effective on or 
        after January 1, 2001, capitation rates for nonmetropolitan 
        counties shall, on a weighted average, be no less than 89 
        percent of the capitation rates for metropolitan counties, 
        excluding Hennepin county. 
           (c) This subdivision shall not affect the nongeographically 
        based risk adjusted rates established under section 62Q.03, 
        subdivision 5a, paragraph (f). 
           Sec. 25.  Minnesota Statutes 1999 Supplement, section 
        256B.69, subdivision 5c, is amended to read: 
           Subd. 5c.  [MEDICAL EDUCATION AND RESEARCH FUND.] (a) 
        Beginning in January 1999 and each year thereafter: 
           (1) the commissioner of human services shall transfer an 
        amount equal to the reduction in the prepaid medical assistance 
        and prepaid general assistance medical care payments resulting 
        from clause (2), excluding nursing facility and elderly waiver 
        payments and demonstration projects operating under subdivision 
        23, to the medical education and research fund established under 
        section 62J.692; 
           (2) until January 1, 2002, the county medical assistance 
        and general assistance medical care capitation base rate prior 
        to plan specific adjustments and after the regional rate 
        adjustments under section 256B.69, subdivision 5b, shall be 
        reduced 6.3 percent for Hennepin county, two percent for the 
        remaining metropolitan counties, and no reduction for 
        nonmetropolitan Minnesota counties; and after January 1, 2002, 
        the county medical assistance and general assistance medical 
        care capitation base rate prior to plan specific adjustments 
        shall be reduced 6.3 percent for Hennepin county, two percent 
        for the remaining metropolitan counties, and 1.6 percent for 
        nonmetropolitan Minnesota counties; and 
           (3) the amount calculated under clause (1) shall not be 
        adjusted for subsequent changes to the capitation payments for 
        periods already paid.  
           (b) This subdivision shall be effective upon approval of a 
        federal waiver which allows federal financial participation in 
        the medical education and research fund.  
           Sec. 26.  Minnesota Statutes 1998, section 256B.69, 
        subdivision 5d, is amended to read: 
           Subd. 5d.  [MODIFICATION OF PAYMENT DATES EFFECTIVE JANUARY 
        1, 2001.] Effective for services rendered on or after January 1, 
        2001, capitation payments under this section and under section 
        256D.03 for services provided in the month of June shall be made 
        no earlier than the first day after the month of service. 
           Sec. 27.  Minnesota Statutes 1998, section 256L.05, 
        subdivision 5, is amended to read: 
           Subd. 5.  [AVAILABILITY OF PRIVATE INSURANCE.] The 
        commissioner, in consultation with the commissioners of health 
        and commerce, shall provide information regarding the 
        availability of private health insurance coverage and the 
        possibility of disenrollment under section 256L.07, subdivision 
        1, paragraphs (b) and (c), to all:  (1) families and individuals 
        enrolled in the MinnesotaCare program whose gross family income 
        is equal to or more than 200 225 percent of the federal poverty 
        guidelines; and (2) single adults and households without 
        children enrolled in the MinnesotaCare program whose gross 
        family income is equal to or more than 165 percent of the 
        federal poverty guidelines.  This information must be provided 
        upon initial enrollment and annually thereafter.  The 
        commissioner shall also include information regarding the 
        availability of private health insurance coverage in the notice 
        of ineligibility provided to persons subject to disenrollment 
        under section 256L.07, subdivision 1, paragraphs (b) and (c). 
           Sec. 28.  Laws 1997, chapter 225, article 4, section 4, as 
        amended by Laws 1999, chapter 245, article 4, section 104, is 
        amended to read: 
           Sec. 4.  [SENIOR PRESCRIPTION DRUG PROGRAM.] 
           The commissioner shall report to the legislature the 
        estimated costs of the senior prescription drug program without 
        funding caps.  The report shall be included as part of the 
        November and February forecasts. 
           The commissioner of finance shall annually reimburse the 
        general fund with health care access funds for the estimated 
        increased costs in the QMB/SLMB program directly associated with 
        the senior prescription drug program.  This reimbursement shall 
        sunset June 30, 2001. 
           Sec. 29.  Laws 1999, chapter 245, article 1, section 2, 
        subdivision 8, is amended to read: 
        Subd. 8.  Continuing Care and 
        Community Support Grants
        General           1,174,195,000 1,259,767,000
        Lottery Prize         1,158,000     1,158,000
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Community Social Services
        Block Grants
            42,597,000     43,498,000 
        [CSSA TRADITIONAL APPROPRIATION.] 
        Notwithstanding Minnesota Statutes, 
        section 256E.06, subdivisions 1 and 2, 
        the appropriations available under that 
        section in fiscal years 2000 and 2001 
        must be distributed to each county 
        proportionately to the aid received by 
        the county in calendar year 1998.  The 
        commissioner, in consultation with 
        counties, shall study the formula 
        limitations in subdivision 2 of that 
        section, and report findings and any 
        recommendations for revision of the 
        CSSA formula and its formula limitation 
        provisions to the legislature by 
        January 15, 2000. 
        (b) Consumer Support Grants
             1,123,000      1,123,000 
        (c) Aging Adult Service Grants
             7,965,000      7,765,000 
        [LIVING-AT-HOME/BLOCK NURSE PROGRAM.] 
        Of the general fund appropriation, 
        $120,000 in fiscal year 2000 and 
        $120,000 in fiscal year 2001 is for the 
        commissioner to provide funding to six 
        additional living-at-home/block nurse 
        programs.  This appropriation shall 
        become part of the base for the 
        2002-2003 biennium. 
        [MINNESOTA SENIOR SERVICE CORPS.] Of 
        this appropriation, $160,000 for the 
        biennium is from the general fund to 
        the commissioner for the following 
        purposes: 
        (a) $40,000 in fiscal year 2000 and 
        $40,000 in fiscal year 2001 is to 
        increase the hourly stipend by ten 
        cents per hour in the foster 
        grandparent program, the retired and 
        senior volunteer program, and the 
        senior companion program. 
        (b) $40,000 in fiscal year 2000 and 
        $40,000 in fiscal year 2001 is for a 
        grant to the tri-valley opportunity 
        council in Crookston to expand services 
        in the ten-county area of northwestern 
        Minnesota. 
        (c) This appropriation shall become 
        part of the base for the 2002-2003 
        biennium.
        [HEALTH INSURANCE COUNSELING.] Of this 
        appropriation, $100,000 in fiscal year 
        2000 and $100,000 in fiscal year 2001 
        is from the general fund to the 
        commissioner to transfer to the board 
        on aging for the purpose of awarding 
        health insurance counseling and 
        assistance grants to the area agencies 
        on aging providing state-funded health 
        insurance counseling services.  Access 
        to health insurance counseling programs 
        shall be provided by the senior linkage 
        line service of the board on aging and 
        the area agencies on aging. The board 
        on aging shall explore opportunities 
        for obtaining alternative funding from 
        nonstate sources, including 
        contributions from individuals seeking 
        health insurance counseling services.  
        This is a one-time appropriation and 
        shall not become part of base level 
        funding for this activity for the 
        2002-2003 biennium. 
        (d) Deaf and Hard-of-Hearing 
        Services Grants
             1,859,000      1,760,000 
        [SERVICES TO DEAF PERSONS WITH MENTAL 
        ILLNESS.] Of this appropriation, 
        $100,000 each year is to the 
        commissioner for a grant to a nonprofit 
        agency that currently serves deaf and 
        hard-of-hearing adults with mental 
        illness through residential programs 
        and supported housing outreach.  The 
        grant must be used to operate a 
        community support program for persons 
        with mental illness that is 
        communicatively accessible for persons 
        who are deaf or hard-of-hearing.  This 
        is a one-time appropriation and shall 
        not become part of base level funding 
        for this activity for the 2002-2003 
        biennium. 
        [DEAF-BLIND ORIENTATION AND MOBILITY 
        SERVICES.] Of this appropriation, 
        $120,000 for the biennium is to the 
        commissioner for a grant to DeafBlind 
        Services Minnesota to hire an 
        orientation and, mobility, and 
        deaf-blind specialist to work with 
        deaf-blind people and for related 
        costs.  The specialist will provide 
        services to deaf-blind Minnesotans, and 
        training to teachers and rehabilitation 
        counselors, on a statewide basis.  This 
        is a one-time appropriation and shall 
        not become part of base level funding 
        for this activity for the 2002-2003 
        biennium.  Notwithstanding section 13, 
        this paragraph expires on June 30, 2003.
        (e) Mental Health Grants
        General          45,169,000     46,528,000 
        Lottery Prize     1,158,000      1,158,000 
        [CRISIS HOUSING.] Of the general fund 
        appropriation, $126,000 in fiscal year 
        2000 and $150,000 in fiscal year 2001 
        is to the commissioner for the adult 
        mental illness crisis housing 
        assistance program under Minnesota 
        Statutes, section 245.99.  This 
        appropriation shall become part of the 
        base for the 2002-2003 biennium. 
        [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 
        $150,000 in fiscal year 2000 and 
        $150,000 in fiscal year 2001 is 
        appropriated from the lottery prize 
        fund created under Minnesota Statutes, 
        section 349A.10, subdivision 2, to the 
        commissioner for the purposes of a 
        grant to a compulsive gambling council 
        located in St. Louis county for a 
        statewide compulsive gambling 
        prevention and education project for 
        adolescents. 
        (f) Developmental Disabilities
        Community Support Grants
           9,323,000     10,958,000 
        [CRISIS INTERVENTION PROJECT.] Of this 
        appropriation, $40,000 in fiscal year 
        2000 is to the commissioner for the 
        action, support, and prevention project 
        of southeastern Minnesota. 
        [SILS FUNDING.] Of this appropriation, 
        $1,000,000 each year is for 
        semi-independent living services under 
        Minnesota Statutes, section 252.275. 
        This appropriation must be added to the 
        base level funding for this activity 
        for the 2002-2003 biennium.  Unexpended 
        funds for fiscal year 2000 do not 
        cancel but are available to the 
        commissioner for this purpose in fiscal 
        year 2001. 
        [FAMILY SUPPORT GRANTS.] Of this 
        appropriation, $1,000,000 in fiscal 
        year 2000 and $2,500,000 in fiscal year 
        2001 is to increase the availability of 
        family support grants under Minnesota 
        Statutes, section 252.32.  This 
        appropriation must be added to the base 
        level funding for this activity for the 
        2002-2003 biennium.  Unexpended funds 
        for fiscal year 2000 do not cancel but 
        are available to the commissioner for 
        this purpose in fiscal year 2001. 
        (g) Medical Assistance Long-Term 
        Care Waivers and Home Care
           349,052,000    414,240,000 
        [PROVIDER RATE INCREASES.] (a) The 
        commissioner shall increase 
        reimbursement rates by four percent the 
        first year of the biennium and by three 
        5.9 percent the second year for the 
        providers listed in paragraph (b).  The 
        increases shall be effective for 
        services rendered on or after July 1 of 
        each year. 
        (b) The rate increases described in 
        this section shall be provided to home 
        and community-based waivered services 
        for persons with mental retardation or 
        related conditions under Minnesota 
        Statutes, section 256B.501; home and 
        community-based waivered services for 
        the elderly under Minnesota Statutes, 
        section 256B.0915; waivered services 
        under community alternatives for 
        disabled individuals under Minnesota 
        Statutes, section 256B.49; community 
        alternative care waivered services 
        under Minnesota Statutes, section 
        256B.49; traumatic brain injury 
        waivered services under Minnesota 
        Statutes, section 256B.49; nursing 
        services and home health services under 
        Minnesota Statutes, section 256B.0625, 
        subdivision 6a; personal care services 
        and nursing supervision of personal 
        care services under Minnesota Statutes, 
        section 256B.0625, subdivision 19a; 
        private-duty nursing services under 
        Minnesota Statutes, section 256B.0625, 
        subdivision 7; day training and 
        habilitation services for adults with 
        mental retardation or related 
        conditions under Minnesota Statutes, 
        sections 252.40 to 252.46; alternative 
        care services under Minnesota Statutes, 
        section 256B.0913; adult residential 
        program grants under Minnesota Rules, 
        parts 9535.2000 to 9535.3000; adult and 
        family community support grants under 
        Minnesota Rules, parts 9535.1700 to 
        9535.1760; semi-independent living 
        services under Minnesota Statutes, 
        section 252.275, including SILS funding 
        under county social services grants 
        formerly funded under Minnesota 
        Statutes, chapter 256I; and community 
        support services for deaf and 
        hard-of-hearing adults with mental 
        illness who use or wish to use sign 
        language as their primary means of 
        communication. 
        (c) The commissioner shall increase 
        reimbursement rates by two percent for 
        the group residential housing 
        supplementary service rate under 
        Minnesota Statutes, section 256I.05, 
        subdivision 1a, for services rendered 
        on or after January 1, 2000. 
        (d) Providers that receive a rate 
        increase under this section shall use 
        at least 80 percent of the additional 
        revenue the first year to increase the 
        compensation paid to employees other 
        than the administrator and central 
        office staff.  In the second year, 
        providers must use the additional 
        revenue as follows: 
        (1) at least 41 percent to increase the 
        compensation paid to employees other 
        than the administrator and central 
        office staff; 
        (2) at least 49 percent to increase the 
        per-hour pay rate of all employees 
        other than the administrator and 
        central office staff by an equal dollar 
        amount and to pay associated costs for 
        FICA, the Medicare tax, workers' 
        compensation premiums, and federal and 
        state unemployment insurance.  For 
        public employees, the portion of this 
        increase reserved to increase the 
        per-hour pay rate for certain staff by 
        an equal dollar amount shall be 
        available and pay rates shall be 
        increased only to the extent that they 
        comply with laws governing public 
        employees collective bargaining.  Money 
        received by a provider as a result of 
        the additional rate increase described 
        in this clause shall be used only for 
        wage increases implemented on or after 
        July 1, 2000, and shall not be used for 
        wage increases implemented prior to 
        that date; and 
        (3) up to ten percent for other 
        purposes. 
        (e) A copy of the provider's plan for 
        complying with paragraph (d) must be 
        made available to all employees.  This 
        must be done by giving each employee a 
        copy or by posting it in an area of the 
        provider's operation to which all 
        employees have access.  If an employee 
        does not receive the salary adjustment 
        described in the plan and is unable to 
        resolve the problem with the provider, 
        the employee may contact the employee's 
        union representative.  If the employee 
        is not covered by a collective 
        bargaining agreement, the employee may 
        contact the commissioner at a phone 
        number provided by the commissioner and 
        included in the provider's plan. 
        (f) Section 13, sunset of uncodified 
        language, does not apply to this 
        provision. 
        [DEVELOPMENTAL DISABILITIES WAIVER 
        SLOTS.] Of this appropriation, 
        $1,746,000 in fiscal year 2000 and 
        $4,683,000 in fiscal year 2001 is to 
        increase the availability of home and 
        community-based waiver services for 
        persons with mental retardation or 
        related conditions.  
        (h) Medical Assistance Long-Term
        Care Facilities
           546,228,000    558,349,000 
        [MORATORIUM EXCEPTIONS.] Of this 
        appropriation, $250,000 in fiscal year 
        2000 and $250,000 in fiscal year 2001 
        is from the general fund to the 
        commissioner for the medical assistance 
        costs of moratorium exceptions approved 
        by the commissioner of health under 
        Minnesota Statutes, section 144A.073.  
        Unexpended money appropriated for 
        fiscal year 2000 shall not cancel but 
        shall be available for fiscal year 2001.
        [NURSING FACILITY OPERATED BY THE RED 
        LAKE BAND OF CHIPPEWA INDIANS.] (1) The 
        medical assistance payment rates for 
        the 47-bed nursing facility operated by 
        the Red Lake Band of Chippewa Indians 
        must be calculated according to 
        allowable reimbursement costs under the 
        medical assistance program, as 
        specified in Minnesota Statutes, 
        section 246.50, and are subject to the 
        facility-specific Medicare upper limits.
        (2) In addition, the commissioner shall 
        make available an operating payment 
        rate adjustment effective July 1, 1999, 
        and July 1, 2000, that is equal to the 
        adjustment provided under Minnesota 
        Statutes, section 256B.431, subdivision 
        28.  The commissioner must use the 
        facility's final 1998 and 1999 Medicare 
        cost reports, respectively, to 
        calculate the adjustment.  The 
        adjustment shall be available based on 
        a plan submitted and approved according 
        to Minnesota Statutes, section 
        256B.431, subdivision 28.  Section 13, 
        sunset of uncodified language, does not 
        apply to this paragraph. 
        [COSTS RELATED TO FACILITY 
        CERTIFICATION.] Of this appropriation, 
        $168,000 is for the costs of providing 
        one-half the state share of medical 
        assistance reimbursement for 
        residential and day habilitation 
        services under article 3, section 39.  
        This amount is available the day 
        following final enactment. 
        (i) Alternative Care Grants  
        General              60,873,000    59,981,000
        [ALTERNATIVE CARE TRANSFER.] Any money 
        allocated to the alternative care 
        program that is not spent for the 
        purposes indicated does not cancel but 
        shall be transferred to the medical 
        assistance account. 
        [PREADMISSION SCREENING AMOUNT.] The 
        preadmission screening payment to all 
        counties shall continue at the payment 
        amount in effect for fiscal year 1999. 
        [ALTERNATIVE CARE APPROPRIATION.] The 
        commissioner may expend the money 
        appropriated for the alternative care 
        program for that purpose in either year 
        of the biennium. 
        (j) Group Residential Housing
        General              66,477,000    70,390,000
        [GROUP RESIDENTIAL FACILITY FOR WOMEN 
        IN RAMSEY COUNTY.] (a) Notwithstanding 
        Minnesota Statutes 1998, section 
        256I.05, subdivision 1d, the new 23-bed 
        group residential facility for women in 
        Ramsey county, with approval by the 
        county agency, may negotiate a 
        supplementary service rate in addition 
        to the board and lodging rate for 
        facilities licensed and registered by 
        the Minnesota department of health 
        under Minnesota Statutes, section 
        15.17.  The supplementary service rate 
        shall not exceed $564 per person per 
        month and the total rate may not exceed 
        $1,177 per person per month. 
        (b) Of the general fund appropriation, 
        $19,000 in fiscal year 2000 and $38,000 
        in fiscal year 2001 is to the 
        commissioner for the costs associated 
        with paragraph (a).  This appropriation 
        shall become part of the base for the 
        2002-2003 biennium. 
        (k) Chemical Dependency
        Entitlement Grants
        General              36,751,000    38,847,000
        (l) Chemical Dependency 
        Nonentitlement Grants
        General               6,778,000     6,328,000
        [CHEMICAL DEPENDENCY SERVICES.] Of this 
        appropriation, $450,000 in fiscal year 
        2000 is to the commissioner for 
        chemical dependency services to persons 
        who qualify under Minnesota Statutes, 
        section 254B.04, subdivision 1, 
        paragraph (b). 
           Sec. 30.  Laws 1999, chapter 245, article 10, section 10, 
        is amended to read: 
           Sec. 10.  [REPEALER.] 
           (a) Minnesota Statutes 1998, section 256.973, is 
        repealed effective June 30, 2001 2002. 
           (b) Laws 1997, chapter 225, article 6, section 8, is 
        repealed. 
           Sec. 31.  [EMPLOYER-BASED HEALTH INSURANCE.] 
           Subdivision 1.  [FEDERAL MATCHING FUNDS.] The commissioner 
        of human services shall determine requirements necessary to 
        obtain federal matching funds for payment of a direct subsidy 
        for the employee share of employer-based health care coverage 
        that is available to dependent children of employees with 
        household incomes that do not exceed 200 percent of the federal 
        poverty guidelines. 
           Subd. 2.  [REPORT.] The commissioner shall report to the 
        legislature by January 15, 2001, on the parameters and status of 
        the federal requirements described in subdivision 1, after 
        consultation with the commissioners of health and commerce and 
        with representatives of large and small employers, including 
        rural business purchasing alliances.  In the report, the 
        commissioner shall make recommendations on how best to provide 
        direct subsidies for employer-based health care coverage for 
        dependent children of employees with household incomes that do 
        not exceed 200 percent of the federal poverty guidelines.  The 
        commissioner shall report the optimal way to meet the needs of 
        the dependent children in a manner that does not:  (1) require 
        modifications to existing or future employer-based health care 
        coverage; or (2) create incentives for employers to utilize 
        publicly subsidized health care. 
           Sec. 32.  [INFORMATION ON PRESCRIPTION DRUG PATIENT 
        ASSISTANCE AND COST SAVINGS PROGRAMS.] 
           The commissioner of human services must work with the board 
        of medical practice, organizations representing pharmaceutical 
        manufacturers, and organizations representing pharmacies, to 
        develop a strategy to provide information to all physicians and 
        pharmacists on prescription drug patient assistance programs and 
        cost savings opportunities offered by pharmaceutical 
        manufacturers.  Any strategy developed must provide physicians 
        and pharmacists with regular updates on prescription drug 
        patient assistance programs and cost savings opportunities and 
        be implemented without cost to physicians, pharmacists, or the 
        state. 
           Sec. 33.  [TASK FORCE EXTENDED; REPORT.] 
           The day training and habilitation task force established 
        under Laws 1999, chapter 152, shall be extended to June 15, 
        2001.  The task force shall present a report recommending a new 
        payment rate schedule for day training and habilitation services 
        to the legislature by January 15, 2001. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 34.  [RESPITE CARE FOR FAMILY ADULT FOSTER CARE 
        PROVIDERS.] 
           The commissioner of human services, in consultation with 
        affected groups, including counties, family adult foster care 
        providers, guardians and family members, and advocacy agencies, 
        shall develop legislative proposals, including cost projections, 
        to provide 30 days of respite care per year for family adult 
        foster care providers.  The proposals must include funding 
        options that rely upon federal and state funding.  The 
        commissioner shall provide the legislative proposals and cost 
        projections to the chairs of the house health and human services 
        policy committee, the house health and human services finance 
        committee, the senate health and family security policy 
        committee, and the senate health and family security budget 
        division, by December 1, 2000. 
           Sec. 35.  [MEDICAL EDUCATION DISTRIBUTION FORMULA STUDY.] 
           The commissioner of health shall convene a group of 
        stakeholders that includes representatives of teaching programs 
        and training sites throughout the state and members of the 
        medical education and research advisory committee for the 
        purpose of evaluating the appropriateness of the current 
        distribution formula and considering alternatives for allocating 
        the amount transferred in accordance with Minnesota Statutes, 
        section 256B.69, subdivision 5c.  The commissioner shall report 
        the findings and recommendations of this group to the 
        legislature by January 15, 2001. 
           Sec. 36.  [INSTRUCTION TO REVISOR.] 
           (a) The revisor of statutes shall change the phrase "senior 
        citizen drug program" wherever it appears in the next edition of 
        Minnesota Statutes and Minnesota Rules to "prescription drug 
        program." 
           (b) The revisor, in the next edition of Minnesota Statutes, 
        shall recodify section 256.9751 as section 256.9731, and make 
        any necessary changes in cross-references. 
           Sec. 37.  [INCONSISTENT AMENDMENTS.] 
           The amendments to Minnesota Statutes, section 256B.501, 
        subdivision 13, in section 10 prevail over the amendments to 
        that section in 2000 H.F. No. 3557, if enacted. 

                                   ARTICLE 10
                HUMAN SERVICES ASSISTANCE PROGRAM MODIFICATIONS 
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        119B.011, subdivision 15, is amended to read: 
           Subd. 15.  [INCOME.] "Income" means earned or unearned 
        income received by all family members, including public 
        assistance cash benefits and at-home infant care subsidy 
        payments, unless specifically excluded and child support and 
        maintenance distributed to the family under section 256.741, 
        subdivision 15.  The following are excluded from income:  funds 
        used to pay for health insurance premiums for family members, 
        Supplemental Security Income, scholarships, work-study income, 
        and grants that cover costs or reimbursement for tuition, fees, 
        books, and educational supplies; student loans for tuition, 
        fees, books, supplies, and living expenses; state and federal 
        earned income tax credits; in-kind income such as food stamps, 
        energy assistance, foster care assistance, medical assistance, 
        child care assistance, and housing subsidies; earned income of 
        full or part-time students, who have not earned a high school 
        diploma or GED high school equivalency diploma including 
        earnings from summer employment; grant awards under the family 
        subsidy program; nonrecurring lump sum income only to the extent 
        that it is earmarked and used for the purpose for which it is 
        paid; and any income assigned to the public authority according 
        to section 256.74 or 256.741. 
           EFFECTIVE DATE:  This section is effective January 1, 2001. 
           Sec. 2.  Minnesota Statutes 1998, section 256.01, is 
        amended by adding a subdivision to read: 
           Subd. 18.  [IMMIGRATION STATUS 
        VERIFICATIONS.] Notwithstanding any waiver of this requirement 
        by the secretary of the United States Department of Health and 
        Human Services, effective July 1, 2001, the commissioner shall 
        utilize the Systematic Alien Verification for Entitlements 
        (SAVE) program to conduct immigration status verifications: 
           (1) as required under United States Code, title 8, section 
        1642; 
           (2) for all applicants for food assistance benefits, 
        whether under the federal food stamp program, the MFIP or work 
        first program, or the Minnesota food assistance program; 
           (3) for all applicants for general assistance medical care, 
        except assistance for an emergency medical condition, for 
        immunization with respect to an immunizable disease, or for 
        testing and treatment of symptoms of a communicable disease; and 
           (4) for all applicants for general assistance, Minnesota 
        supplemental aid, MinnesotaCare, or group residential housing, 
        when the benefits provided by these programs would fall under 
        the definition of "federal public benefit" under United States 
        Code, title 8, section 1642, if federal funds were used to pay 
        for all or part of the benefits.  
           The commissioner shall report to the Immigration and 
        Naturalization Service all undocumented persons who have been 
        identified through application verification procedures or by the 
        self-admission of an applicant for assistance.  Reports made 
        under this subdivision must comply with the requirements of 
        section 411A of the Social Security Act, as amended, and United 
        States Code, title 8, section 1644. 
           Sec. 3.  Minnesota Statutes 1999 Supplement, section 
        256.019, is amended to read: 
           256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 
           Subdivision 1.  [RETENTION RATES.] When an assistance 
        recovery amount is recovered from any source for assistance 
        given collected and posted by a county agency under the 
        provisions governing public assistance programs including the 
        aid to families with dependent children program formerly 
        codified in sections 256.72 to 256.87, MFIP, general assistance 
        medical care, emergency assistance, general assistance, and 
        Minnesota supplemental aid, the county may keep one-half of the 
        recovery made by the county agency using any method other than 
        recoupment.  For medical assistance, if the recovery is made by 
        a county agency using any method other than recoupment, the 
        county may keep one-half of the nonfederal share of the recovery.
           This does not apply to recoveries from medical providers or 
        to recoveries begun by the department of human services' 
        surveillance and utilization review division, state hospital 
        collections unit, and the benefit recoveries division or, by the 
        attorney general's office, or child support collections.  In the 
        food stamp program, the nonfederal share of recoveries in the 
        federal tax refund offset program (FTROP) only will be divided 
        equally between the state agency and the involved county agency. 
           Subd. 2.  [RETENTION RATES FOR AFDC AND MFIP.] (a) When an 
        assistance recovery amount is collected and posted by a county 
        agency under the provisions governing the aid to families with 
        dependent children program formerly codified in 1996 in sections 
        256.72 to 256.87 or MFIP under chapter 256J, the commissioner 
        shall reimburse the county agency from the proceeds of the 
        recovery using the applicable rate specified in paragraph (b) or 
        (c). 
           (b) For recoveries of overpayments made on or before 
        September 30, 1996, from the aid to families with dependent 
        children program including the emergency assistance program, the 
        commissioner shall reimburse the county agency at a rate of 
        one-quarter of the recovery made by any method other than 
        recoupment. 
           (c) For recoveries of overpayments made after September 30, 
        1996, from the aid to families with dependent children including 
        the emergency assistance program and programs funded in whole or 
        in part by the temporary assistance to needy families program 
        under section 256J.02, subdivision 2, and recoveries of 
        nonfederally funded food assistance under section 256J.11, the 
        commissioner shall reimburse the county agency at a rate of 
        one-quarter of the recovery made by any method other than 
        recoupment. 
           EFFECTIVE DATE:  This section is effective January 1, 2001. 
           Sec. 4.  Minnesota Statutes 1998, section 256.741, is 
        amended by adding a subdivision to read: 
           Subd. 15.  [CHILD SUPPORT DISTRIBUTION.] The state shall 
        distribute current child support and maintenance received by the 
        state to an individual who assigns the right to that support 
        under subdivision 2, paragraph (a). 
           EFFECTIVE DATE:  This section is effective January 1, 2001. 
           Sec. 5.  Minnesota Statutes 1999 Supplement, section 
        256D.053, subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM ESTABLISHED.] The Minnesota food 
        assistance program is established to provide food assistance to 
        legal noncitizens residing in this state who are ineligible to 
        participate in the federal Food Stamp Program solely due to the 
        provisions of section 402 or 403 of Public Law Number 104-193, 
        as authorized by Title VII of the 1997 Emergency Supplemental 
        Appropriations Act, Public Law Number 105-18, and as amended by 
        Public Law Number 105-185. 
           Beginning July 1, 2000 2002, the Minnesota food assistance 
        program is limited to those noncitizens described in this 
        subdivision who are 50 years of age or older. 
           Sec. 6.  Minnesota Statutes 1999 Supplement, section 
        256J.02, subdivision 2, is amended to read: 
           Subd. 2.  [USE OF MONEY.] State money appropriated for 
        purposes of this section and TANF block grant money must be used 
        for: 
           (1) financial assistance to or on behalf of any minor child 
        who is a resident of this state under section 256J.12; 
           (2) employment and training services under this chapter or 
        chapter 256K; 
           (3) emergency financial assistance and services under 
        section 256J.48; 
           (4) diversionary assistance under section 256J.47; 
           (5) the health care and human services training and 
        retention program under chapter 116L, for costs associated with 
        families with children with incomes below 200 percent of the 
        federal poverty guidelines; 
           (6) the pathways program under section 116L.04, subdivision 
        1a; 
           (7) welfare-to-work extended employment services for MFIP 
        participants with severe impairment to employment as defined in 
        section 268A.15, subdivision 1a; 
           (8) the family homeless prevention and assistance program 
        under section 462A.204; 
           (9) the rent assistance for family stabilization 
        demonstration project under section 462A.205; and 
           (10) welfare to work transportation authorized under Public 
        Law Number 105-178; 
           (11) reimbursements for the federal share of child support 
        collections passed through to the custodial parent; 
           (12) reimbursements for the working family credit under 
        section 290.0671; 
           (13) intensive ESL grants under 2000 H.F. No. 3800, article 
        1, if enacted; 
           (14) transitional housing programs under section 119A.43; 
           (15) programs and pilot projects under chapter 256K; and 
           (16) program administration under this chapter. 
           EFFECTIVE DATE:  Clause (11) of this section is effective 
        January 1, 2001. 
           Sec. 7.  Minnesota Statutes 1999 Supplement, section 
        256J.08, subdivision 86, is amended to read: 
           Subd. 86.  [UNEARNED INCOME.] "Unearned income" means 
        income received by a person that does not meet the definition of 
        earned income.  Unearned income includes income from a contract 
        for deed, interest, dividends, reemployment compensation, 
        disability insurance payments, veterans benefits, pension 
        payments, return on capital investment, insurance payments or 
        settlements, severance payments, child support and maintenance 
        payments, and payments for illness or disability whether the 
        premium payments are made in whole or in part by an employer or 
        participant. 
           EFFECTIVE DATE:  This section is effective January 1, 2001. 
           Sec. 8.  Minnesota Statutes 1999 Supplement, section 
        256J.21, subdivision 2, is amended to read: 
           Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
        excluded in determining a family's available income: 
           (1) payments for basic care, difficulty of care, and 
        clothing allowances received for providing family foster care to 
        children or adults under Minnesota Rules, parts 9545.0010 to 
        9545.0260 and 9555.5050 to 9555.6265, and payments received and 
        used for care and maintenance of a third-party beneficiary who 
        is not a household member; 
           (2) reimbursements for employment training received through 
        the Job Training Partnership Act, United States Code, title 29, 
        chapter 19, sections 1501 to 1792b; 
           (3) reimbursement for out-of-pocket expenses incurred while 
        performing volunteer services, jury duty, employment, or 
        informal carpooling arrangements directly related to employment; 
           (4) all educational assistance, except the county agency 
        must count graduate student teaching assistantships, 
        fellowships, and other similar paid work as earned income and, 
        after allowing deductions for any unmet and necessary 
        educational expenses, shall count scholarships or grants awarded 
        to graduate students that do not require teaching or research as 
        unearned income; 
           (5) loans, regardless of purpose, from public or private 
        lending institutions, governmental lending institutions, or 
        governmental agencies; 
           (6) loans from private individuals, regardless of purpose, 
        provided an applicant or participant documents that the lender 
        expects repayment; 
           (7)(i) state income tax refunds; and 
           (ii) federal income tax refunds; 
           (8)(i) federal earned income credits; 
           (ii) Minnesota working family credits; 
           (iii) state homeowners and renters credits under chapter 
        290A; and 
           (iv) federal or state tax rebates; 
           (9) funds received for reimbursement, replacement, or 
        rebate of personal or real property when these payments are made 
        by public agencies, awarded by a court, solicited through public 
        appeal, or made as a grant by a federal agency, state or local 
        government, or disaster assistance organizations, subsequent to 
        a presidential declaration of disaster; 
           (10) the portion of an insurance settlement that is used to 
        pay medical, funeral, and burial expenses, or to repair or 
        replace insured property; 
           (11) reimbursements for medical expenses that cannot be 
        paid by medical assistance; 
           (12) payments by a vocational rehabilitation program 
        administered by the state under chapter 268A, except those 
        payments that are for current living expenses; 
           (13) in-kind income, including any payments directly made 
        by a third party to a provider of goods and services; 
           (14) assistance payments to correct underpayments, but only 
        for the month in which the payment is received; 
           (15) emergency assistance payments; 
           (16) funeral and cemetery payments as provided by section 
        256.935; 
           (17) nonrecurring cash gifts of $30 or less, not exceeding 
        $30 per participant in a calendar month; 
           (18) any form of energy assistance payment made through 
        Public Law Number 97-35, Low-Income Home Energy Assistance Act 
        of 1981, payments made directly to energy providers by other 
        public and private agencies, and any form of credit or rebate 
        payment issued by energy providers; 
           (19) Supplemental Security Income, including retroactive 
        payments; 
           (20) Minnesota supplemental aid, including retroactive 
        payments; 
           (21) proceeds from the sale of real or personal property; 
           (22) adoption assistance payments under section 259.67; 
           (23) state-funded family subsidy program payments made 
        under section 252.32 to help families care for children with 
        mental retardation or related conditions, consumer support grant 
        funds under section 256.476, and resources and services for a 
        disabled household member under one of the home and 
        community-based waiver services programs under chapter 256B; 
           (24) interest payments and dividends from property that is 
        not excluded from and that does not exceed the asset limit; 
           (25) rent rebates; 
           (26) income earned by a minor caregiver, minor child 
        through age 6, or a minor child who is at least a half-time 
        student in an approved elementary or secondary education 
        program; 
           (27) income earned by a caregiver under age 20 who is at 
        least a half-time student in an approved elementary or secondary 
        education program; 
           (28) MFIP child care payments under section 119B.05; 
           (29) all other payments made through MFIP to support a 
        caregiver's pursuit of greater self-support; 
           (30) income a participant receives related to shared living 
        expenses; 
           (31) reverse mortgages; 
           (32) benefits provided by the Child Nutrition Act of 1966, 
        United States Code, title 42, chapter 13A, sections 1771 to 
        1790; 
           (33) benefits provided by the women, infants, and children 
        (WIC) nutrition program, United States Code, title 42, chapter 
        13A, section 1786; 
           (34) benefits from the National School Lunch Act, United 
        States Code, title 42, chapter 13, sections 1751 to 1769e; 
           (35) relocation assistance for displaced persons under the 
        Uniform Relocation Assistance and Real Property Acquisition 
        Policies Act of 1970, United States Code, title 42, chapter 61, 
        subchapter II, section 4636, or the National Housing Act, United 
        States Code, title 12, chapter 13, sections 1701 to 1750jj; 
           (36) benefits from the Trade Act of 1974, United States 
        Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
           (37) war reparations payments to Japanese Americans and 
        Aleuts under United States Code, title 50, sections 1989 to 
        1989d; 
           (38) payments to veterans or their dependents as a result 
        of legal settlements regarding Agent Orange or other chemical 
        exposure under Public Law Number 101-239, section 10405, 
        paragraph (a)(2)(E); 
           (39) income that is otherwise specifically excluded from 
        MFIP consideration in federal law, state law, or federal 
        regulation; 
           (40) security and utility deposit refunds; 
           (41) American Indian tribal land settlements excluded under 
        Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
        Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
        reservations and payments to members of the White Earth Band, 
        under United States Code, title 25, chapter 9, section 331, and 
        chapter 16, section 1407; 
           (42) all income of the minor parent's parents and 
        stepparents when determining the grant for the minor parent in 
        households that include a minor parent living with parents or 
        stepparents on MFIP with other children; and 
           (43) income of the minor parent's parents and stepparents 
        equal to 200 percent of the federal poverty guideline for a 
        family size not including the minor parent and the minor 
        parent's child in households that include a minor parent living 
        with parents or stepparents not on MFIP when determining the 
        grant for the minor parent.  The remainder of income is deemed 
        as specified in section 256J.37, subdivision 1b; 
           (44) payments made to children eligible for relative 
        custody assistance under section 257.85; 
           (45) vendor payments for goods and services made on behalf 
        of a client unless the client has the option of receiving the 
        payment in cash; and 
           (46) the principal portion of a contract for deed payment. 
           Sec. 9.  Minnesota Statutes 1998, section 256J.32, is 
        amended by adding a subdivision to read: 
           Subd. 7a.  [REQUIREMENT TO REPORT TO IMMIGRATION AND 
        NATURALIZATION SERVICES.] Notwithstanding subdivision 7, 
        effective July 1, 2001, the commissioner shall report to the 
        Immigration and Naturalization Services all undocumented persons 
        who have been identified through application verification 
        procedures or by the self-admission of an applicant for 
        assistance.  Reports made under this subdivision must comply 
        with the requirements of section 411A of the Social Security 
        Act, as amended, and United States Code, title 8, section 1644. 
           Sec. 10.  Minnesota Statutes 1999 Supplement, section 
        256J.33, subdivision 4, is amended to read: 
           Subd. 4.  [MONTHLY INCOME TEST.] A county agency must apply 
        the monthly income test retrospectively for each month of MFIP 
        eligibility.  An assistance unit is not eligible when the 
        countable income equals or exceeds the MFIP standard of need or 
        the family wage level for the assistance unit.  The income 
        applied against the monthly income test must include: 
           (1) gross earned income from employment, prior to mandatory 
        payroll deductions, voluntary payroll deductions, wage 
        authorizations, and after the disregards in section 256J.21, 
        subdivision 4, and the allocations in section 256J.36, unless 
        the employment income is specifically excluded under section 
        256J.21, subdivision 2; 
           (2) gross earned income from self-employment less 
        deductions for self-employment expenses in section 256J.37, 
        subdivision 5, but prior to any reductions for personal or 
        business state and federal income taxes, personal FICA, personal 
        health and life insurance, and after the disregards in section 
        256J.21, subdivision 4, and the allocations in section 256J.36; 
           (3) unearned income after deductions for allowable expenses 
        in section 256J.37, subdivision 9, and allocations in section 
        256J.36, unless the income has been specifically excluded in 
        section 256J.21, subdivision 2; 
           (4) gross earned income from employment as determined under 
        clause (1) which is received by a member of an assistance unit 
        who is a minor child or minor caregiver and less than a 
        half-time student; 
           (5) child support and spousal support received or 
        anticipated to be received by an assistance unit; 
           (6) the income of a parent when that parent is not included 
        in the assistance unit; 
           (7) the income of an eligible relative and spouse who seek 
        to be included in the assistance unit; and 
           (8) the unearned income of a minor child included in the 
        assistance unit. 
           EFFECTIVE DATE:  This section is effective January 1, 2001. 
           Sec. 11.  Minnesota Statutes 1999 Supplement, section 
        256J.34, subdivision 1, is amended to read: 
           Subdivision 1.  [PROSPECTIVE BUDGETING.] A county agency 
        must use prospective budgeting to calculate the assistance 
        payment amount for the first two months for an applicant who has 
        not received assistance in this state for at least one payment 
        month preceding the first month of payment under a current 
        application.  Notwithstanding subdivision 3, paragraph (a), 
        clause (2), a county agency must use prospective budgeting for 
        the first two months for a person who applies to be added to an 
        assistance unit.  Prospective budgeting is not subject to 
        overpayments or underpayments unless fraud is determined under 
        section 256.98. 
           (a) The county agency must apply the income received or 
        anticipated in the first month of MFIP eligibility against the 
        need of the first month.  The county agency must apply the 
        income received or anticipated in the second month against the 
        need of the second month. 
           (b) When the assistance payment for any part of the first 
        two months is based on anticipated income, the county agency 
        must base the initial assistance payment amount on the 
        information available at the time the initial assistance payment 
        is made. 
           (c) The county agency must determine the assistance payment 
        amount for the first two months of MFIP eligibility by budgeting 
        both recurring and nonrecurring income for those two months. 
           (d) The county agency must budget the child support income 
        received or anticipated to be received by an assistance unit to 
        determine the assistance payment amount from the month of 
        application through the date in which MFIP eligibility is 
        determined and assistance is authorized.  Child support income 
        which has been budgeted to determine the assistance payment in 
        the initial two months is considered nonrecurring income.  An 
        assistance unit must forward any payment of child support to the 
        child support enforcement unit of the county agency following 
        the date in which assistance is authorized. 
           EFFECTIVE DATE:  This section is effective January 1, 2001. 
           Sec. 12.  Minnesota Statutes 1999 Supplement, section 
        256J.34, subdivision 4, is amended to read: 
           Subd. 4.  [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 
        agency must recalculate the assistance payment when an 
        assistance unit experiences a significant change, as defined in 
        section 256J.08, resulting in a reduction in the gross income 
        received in the payment month from the gross income received in 
        the budget month.  The county agency must issue a supplemental 
        assistance payment based on the county agency's best estimate of 
        the assistance unit's income and circumstances for the payment 
        month.  Supplemental assistance payments that result from 
        significant changes are limited to two in a 12-month period 
        regardless of the reason for the change.  Notwithstanding any 
        other statute or rule of law, supplementary assistance payments 
        shall not be made when the significant change in income is the 
        result of receipt of a lump sum, receipt of an extra paycheck, 
        business fluctuation in self-employment income, or an assistance 
        unit member's participation in a strike or other labor 
        action.  Supplementary assistance payments due to a significant 
        change in the amount of direct support received must not be made 
        after the date the assistance unit is required to forward 
        support to the child support enforcement unit under subdivision 
        1, paragraph (d). 
           EFFECTIVE DATE:  This section is effective January 1, 2001. 
           Sec. 13.  Minnesota Statutes 1999 Supplement, section 
        256J.37, subdivision 9, is amended to read: 
           Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
        apply unearned income to the MFIP standard of need.  When 
        determining the amount of unearned income, the county agency 
        must deduct the costs necessary to secure payments of unearned 
        income.  These costs include legal fees, medical fees, and 
        mandatory deductions such as federal and state income taxes. 
           (b) Effective January July 1, 2001, the county agency shall 
        count $100 of the value of public and assisted rental subsidies 
        provided through the Department of Housing and Urban Development 
        (HUD) as unearned income.  The full amount of the subsidy must 
        be counted as unearned income when the subsidy is less than $100.
           (c) The provisions of paragraph (b) shall not apply to MFIP 
        participants who are exempt from the employment and training 
        services component because they are: 
           (i) individuals who are age 60 or older; 
           (ii) individuals who are suffering from a professionally 
        certified permanent or temporary illness, injury, or incapacity 
        which is expected to continue for more than 30 days and which 
        prevents the person from obtaining or retaining employment; or 
           (iii) caregivers whose presence in the home is required 
        because of the professionally certified illness or incapacity of 
        another member in the assistance unit, a relative in the 
        household, or a foster child in the household. 
           (d) The provisions of paragraph (b) shall not apply to an 
        MFIP assistance unit where the parental caregiver receives 
        supplemental security income. 
           Sec. 14.  Minnesota Statutes 1998, section 256J.45, 
        subdivision 3, is amended to read: 
           Subd. 3.  [GOOD CAUSE EXEMPTIONS FOR NOT ATTENDING 
        ORIENTATION.] (a) The county agency shall not impose the 
        sanction under section 256J.46 if it determines that the 
        participant has good cause for failing to attend orientation.  
        Good cause exists when: 
           (1) appropriate child care is not available; 
           (2) the participant is ill or injured; 
           (3) a family member is ill and needs care by the 
        participant that prevents the participant from attending 
        orientation.  For a caregiver with a child or adult in the 
        household who meets the disability or medical criteria for home 
        care services under section 256B.0627, subdivision 1, paragraph 
        (c) or a home and community-based waiver services program under 
        chapter 256B, or meets the criteria for severe emotional 
        disturbance under section 245.4871, subdivision 6, or for 
        serious and persistent mental illness under section 245.462, 
        subdivision 20, paragraph (c), good cause also exists when an 
        interruption in the provision of those services occurs which 
        prevents the participant from attending orientation; 
           (4) the caregiver is unable to secure necessary 
        transportation; 
           (5) the caregiver is in an emergency situation that 
        prevents orientation attendance; 
           (6) the orientation conflicts with the caregiver's work, 
        training, or school schedule; or 
           (7) the caregiver documents other verifiable impediments to 
        orientation attendance beyond the caregiver's control.  
           (b) Counties must work with clients to provide child care 
        and transportation necessary to ensure a caregiver has every 
        opportunity to attend orientation. 
           Sec. 15.  Minnesota Statutes 1998, section 256J.47, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY.] A family is eligible to 
        receive diversionary assistance once every 36 12 months if: 
           (1) a family member has resided in this state for at least 
        30 days; 
           (2) the caregiver provides verification that the caregiver 
        has either experienced an unexpected occurrence that makes it 
        impossible to retain or obtain employment or the caregiver has a 
        temporary loss of income, which is not due to refusing to accept 
        or terminating suitable employment as defined in section 
        256J.49, without good cause under section 256J.57, resulting in 
        an emergency; 
           (3) the caregiver is at risk of MFIP-S eligibility if 
        diversionary assistance is not provided and household income is 
        below 140 200 percent of the federal poverty guidelines; and 
           (4) the diversionary assistance will resolve the emergency 
        and divert the family from applying for MFIP-S. 
           For purposes of this section, diversionary assistance means 
        a one-time lump-sum payment to an individual or third-party 
        vendor to prevent long-term receipt of public assistance. 
           Sec. 16.  Minnesota Statutes 1998, section 256J.49, 
        subdivision 13, is amended to read: 
           Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
        activity in a participant's approved employment plan that is 
        tied to the participant's employment goal.  For purposes of the 
        MFIP-S MFIP program, any activity that is included in a 
        participant's approved employment plan meets the definition of 
        work activity as counted under the federal participation 
        standards.  Work activity includes, but is not limited to: 
           (1) unsubsidized employment; 
           (2) subsidized private sector or public sector employment, 
        including grant diversion as specified in section 256J.69; 
           (3) work experience, including CWEP as specified in section 
        256J.67, and including work associated with the refurbishing of 
        publicly assisted housing if sufficient private sector 
        employment is not available; 
           (4) on-the-job training as specified in section 256J.66; 
           (5) job search, either supervised or unsupervised; 
           (6) job readiness assistance; 
           (7) job clubs, including job search workshops; 
           (8) job placement; 
           (9) job development; 
           (10) job-related counseling; 
           (11) job coaching; 
           (12) job retention services; 
           (13) job-specific training or education; 
           (14) job skills training directly related to employment; 
           (15) the self-employment investment demonstration (SEID), 
        as specified in section 256J.65; 
           (16) preemployment activities, based on availability and 
        resources, such as volunteer work, literacy programs and related 
        activities, citizenship and classes, English as a second 
        language (ESL) classes as limited by the provisions of section 
        256J.52, subdivisions 3, paragraph (d), and 5, paragraph (c), or 
        participation in dislocated worker services, chemical dependency 
        treatment, mental health services, peer group networks, 
        displaced homemaker programs, strength-based resiliency 
        training, parenting education, or other programs designed to 
        help families reach their employment goals and enhance their 
        ability to care for their children; 
           (17) community service programs; 
           (18) vocational educational training or educational 
        programs that can reasonably be expected to lead to employment, 
        as limited by the provisions of section 256J.53; 
           (19) apprenticeships; 
           (20) satisfactory attendance in general educational 
        development diploma classes or an adult diploma program; 
           (21) satisfactory attendance at secondary school, if the 
        participant has not received a high school diploma; 
           (22) adult basic education classes; 
           (23) internships; 
           (24) bilingual employment and training services; 
           (25) providing child care services to a participant who is 
        working in a community service program; and 
           (26) activities included in a safety plan that is developed 
        under section 256J.52, subdivision 6. 
           Sec. 17.  Minnesota Statutes 1998, section 256J.50, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PARTICIPATION REQUIREMENTS FOR SINGLE-PARENT AND 
        TWO-PARENT ALL CASES.] (a) A county must establish a uniform 
        schedule for requiring participation by single parents.  
        Mandatory participation must be required within six months of 
        eligibility for cash assistance.  For two-parent cases, 
        participation is required concurrent with the receipt of MFIP-S 
        MFIP cash assistance.  
           For single-parent cases, participation is required 
        concurrent with the receipt of MFIP cash assistance for all 
        counties except Blue Earth and Nicollet, effective July 1, 2000, 
        and is required for Blue Earth and Nicollet counties effective 
        January 1, 2001.  For Blue Earth and Nicollet counties only, 
        from July 1, 2000 to December 31, 2000, mandatory participation 
        for single-parent cases must be required within six months of 
        eligibility for cash assistance. 
           (b) Beginning January 1, 1998, with the exception of 
        caregivers required to attend high school under the provisions 
        of section 256J.54, subdivision 5, MFIP caregivers, upon 
        completion of the secondary assessment, must develop an 
        employment plan and participate in work activities. 
           (c) Upon completion of the secondary assessment: 
           (1) In single-parent families with no children under six 
        years of age, the job counselor and the caregiver must develop 
        an employment plan that includes 20 to 35 hours per week of work 
        activities for the period January 1, 1998, to September 30, 
        1998; 25 to 35 hours of work activities per week in federal 
        fiscal year 1999; and 30 to 35 hours per week of work activities 
        in federal fiscal year 2000 and thereafter. 
           (2) In single-parent families with a child under six years 
        of age, the job counselor and the caregiver must develop an 
        employment plan that includes 20 to 35 hours per week of work 
        activities. 
           (3) In two-parent families, the job counselor and the 
        caregivers must develop employment plans which result in a 
        combined total of at least 55 hours per week of work activities. 
           Sec. 18.  Minnesota Statutes 1998, section 256J.50, 
        subdivision 7, is amended to read: 
           Subd. 7.  [LOCAL SERVICE UNIT PLAN.] (a) Each local or 
        county service unit shall prepare and submit a plan as specified 
        in section 268.88. 
           (b) The plan must include a description of how projects 
        funded under the local intervention grants for self-sufficiency 
        in section 256J.625, subdivisions 2 and 3, operate in the local 
        service unit, including: 
           (1) the target populations of hard-to-employ participants 
        and working participants in need of job retention and wage 
        advancement services, with a description of how individual 
        participant needs will be met; 
           (2) services that will be provided which may include paid 
        work experience, enhanced mental health services, outreach to 
        sanctioned families, child care for social services, child care 
        transition year set-aside, homeless and housing advocacy, and 
        transportation; 
           (3) projected expenditures by activity; 
           (4) anticipated program outcomes including the anticipated 
        impact the intervention efforts will have on performance 
        measures under section 256J.751 and on reducing the number of 
        MFIP participants expected to reach their 60-month time limit; 
        and 
           (5) a description of services that are provided or will be 
        provided to MFIP participants affected by chemical dependency, 
        mental health issues, learning disabilities, or family violence. 
           Each plan must demonstrate how the county or tribe is 
        working within its organization and with other organizations in 
        the community to serve hard-to-employ populations, including how 
        organizations in the community were engaged in planning for use 
        of these funds, services other entities will provide under the 
        plan, and whether multicounty or regional strategies are being 
        implemented as part of this plan. 
           (c) Activities and expenditures in the plan must enhance or 
        supplement MFIP activities without supplanting existing 
        activities and expenditures.  However, this paragraph does not 
        require a county to maintain either:  
           (1) its current provision of child care assistance to MFIP 
        families through the expenditure of county resources under 
        chapter 256E for social services child care assistance if funds 
        are appropriated by another law for an MFIP social services 
        child care pool; 
           (2) its current provision of transition-year child care 
        assistance through the expenditure of county resources if funds 
        are appropriated by another law for this purpose; or 
           (3) its current provision of intensive ESL programs through 
        the expenditure of county resources if funds are appropriated by 
        another law for intensive ESL grants. 
           (d) The plan required under this subdivision must be 
        approved before the local or county service unit is eligible to 
        receive funds under section 256J.625, subdivisions 2 and 3. 
           Sec. 19.  Minnesota Statutes 1999 Supplement, section 
        256J.52, subdivision 3, is amended to read: 
           Subd. 3.  [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 
        after the initial assessment, the job counselor determines that 
        the participant possesses sufficient skills that the participant 
        is likely to succeed in obtaining suitable employment, the 
        participant must conduct job search for a period of up to eight 
        weeks, for at least 30 hours per week.  The participant must 
        accept any offer of suitable employment.  Upon agreement by the 
        job counselor and the participant, a job search support plan may 
        limit a job search to jobs that are consistent with the 
        participant's employment goal.  The job counselor and 
        participant must develop a job search support plan which 
        specifies, at a minimum:  whether the job search is to be 
        supervised or unsupervised; support services that will be 
        provided while the participant conducts job search activities; 
        the courses necessary to obtain certification or licensure, if 
        applicable, and after obtaining the license or certificate, the 
        client must comply with subdivision 5; and how frequently the 
        participant must report to the job counselor on the status of 
        the participant's job search activities.  The job search support 
        plan may must also specify that the participant fulfill a 
        specified portion no more than half of the required hours of job 
        search through attending adult basic education or English as a 
        second language classes, if one or both of those activities are 
        approved by the job counselor. 
           (b) During the eight-week job search period, either the job 
        counselor or the participant may request a review of the 
        participant's job search plan and progress towards obtaining 
        suitable employment.  If a review is requested by the 
        participant, the job counselor must concur that the review is 
        appropriate for the participant at that time.  If a review is 
        conducted, the job counselor may make a determination to conduct 
        a secondary assessment prior to the conclusion of the job search.
           (c) Failure to conduct the required job search, to accept 
        any offer of suitable employment, to develop or comply with a 
        job search support plan, or voluntarily quitting suitable 
        employment without good cause results in the imposition of a 
        sanction under section 256J.46.  If at the end of eight weeks 
        the participant has not obtained suitable employment, the job 
        counselor must conduct a secondary assessment of the participant 
        under subdivision 3. 
           (d) In order for an English as a second language (ESL) 
        class to be an approved work activity, a participant must be at 
        or below a spoken language proficiency level of SPL5 or its 
        equivalent, as measured by a nationally recognized test.  A 
        participant may not be approved for more than a total of 24 
        months of ESL activities while participating in the employment 
        and training services component of MFIP.  In approving ESL as a 
        work activity, the job counselor must give preference to 
        enrollment in an intensive ESL program, if one is available, 
        over a regular ESL program.  If an intensive ESL program is 
        approved, the restriction in paragraph (a) that no more than 
        half of the required hours of job search is fulfilled through 
        attending ESL classes does not apply. 
           Sec. 20.  Minnesota Statutes 1999 Supplement, section 
        256J.52, subdivision 5, is amended to read: 
           Subd. 5.  [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 
        secondary assessment under subdivision 4, the job counselor and 
        the participant must develop an employment plan for the 
        participant that includes specific activities that are tied to 
        an employment goal and a plan for long-term self-sufficiency, 
        and that is designed to move the participant along the most 
        direct path to unsubsidized employment.  The employment plan 
        must list the specific steps that will be taken to obtain 
        employment and a timetable for completion of each of the steps. 
        Upon agreement by the job counselor and the participant, the 
        employment plan may limit a job search to jobs that are 
        consistent with the participant's employment goal. 
           (b) As part of the development of the participant's 
        employment plan, the participant shall have the option of 
        selecting from among the vendors or resources that the job 
        counselor determines will be effective in supplying one or more 
        of the services necessary to meet the employment goals specified 
        in the participant's plan.  In compiling the list of vendors and 
        resources that the job counselor determines would be effective 
        in meeting the participant's employment goals, the job counselor 
        must determine that adequate financial resources are available 
        for the vendors or resources ultimately selected by the 
        participant. 
           (c) In order for an English as a second language (ESL) 
        class to be an approved work activity, a participant must be at 
        or below a spoken language proficiency level of SPL5 or its 
        equivalent, as measured by a nationally recognized test.  A 
        participant may not be approved for more than a total of 24 
        months of ESL activities while participating in the employment 
        and training services component of MFIP.  In approving ESL as a 
        work activity, the job counselor must give preference to 
        enrollment in an intensive ESL program, if one is available, 
        over a regular ESL program. 
           (d) The job counselor and the participant must sign the 
        developed plan to indicate agreement between the job counselor 
        and the participant on the contents of the plan. 
           Sec. 21.  Minnesota Statutes 1999 Supplement, section 
        256J.56, is amended to read: 
           256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
        EXEMPTIONS.] 
           (a) An MFIP caregiver is exempt from the requirements of 
        sections 256J.52 to 256J.55 if the caregiver belongs to any of 
        the following groups: 
           (1) individuals who are age 60 or older; 
           (2) individuals who are suffering from a professionally 
        certified permanent or temporary illness, injury, or incapacity 
        which is expected to continue for more than 30 days and which 
        prevents the person from obtaining or retaining employment.  
        Persons in this category with a temporary illness, injury, or 
        incapacity must be reevaluated at least quarterly; 
           (3) caregivers whose presence in the home is required 
        because of the professionally certified illness or incapacity of 
        another member in the assistance unit, a relative in the 
        household, or a foster child in the household; 
           (4) women who are pregnant, if the pregnancy has resulted 
        in a professionally certified incapacity that prevents the woman 
        from obtaining or retaining employment; 
           (5) caregivers of a child under the age of one year who 
        personally provide full-time care for the child.  This exemption 
        may be used for only 12 months in a lifetime.  In two-parent 
        households, only one parent or other relative may qualify for 
        this exemption; 
           (6) individuals who are single parents, or one parent in a 
        two-parent family, employed at least 35 hours per week; 
           (7) individuals experiencing a personal or family crisis 
        that makes them incapable of participating in the program, as 
        determined by the county agency.  If the participant does not 
        agree with the county agency's determination, the participant 
        may seek professional certification, as defined in section 
        256J.08, that the participant is incapable of participating in 
        the program. 
           Persons in this exemption category must be reevaluated 
        every 60 days; or 
           (8) second parents in two-parent families employed for 20 
        or more hours per week, provided the first parent is employed at 
        least 35 hours per week; or 
           (9) caregivers with a child or an adult in the household 
        who meets the disability or medical criteria for home care 
        services under section 256B.0627, subdivision 1, paragraph (c), 
        or a home and community-based waiver services program under 
        chapter 256B, or meets the criteria for severe emotional 
        disturbance under section 245.4871, subdivision 6, or for 
        serious and persistent mental illness under section 245.462, 
        subdivision 20, paragraph (c).  Caregivers in this exemption 
        category are presumed to be prevented from obtaining or 
        retaining employment. 
           A caregiver who is exempt under clause (5) must enroll in 
        and attend an early childhood and family education class, a 
        parenting class, or some similar activity, if available, during 
        the period of time the caregiver is exempt under this section.  
        Notwithstanding section 256J.46, failure to attend the required 
        activity shall not result in the imposition of a sanction. 
           (b) The county agency must provide employment and training 
        services to MFIP caregivers who are exempt under this section, 
        but who volunteer to participate.  Exempt volunteers may request 
        approval for any work activity under section 256J.49, 
        subdivision 13.  The hourly participation requirements for 
        nonexempt caregivers under section 256J.50, subdivision 5, do 
        not apply to exempt caregivers who volunteer to participate. 
           Sec. 22.  [256J.625] [LOCAL INTERVENTION GRANTS FOR 
        SELF-SUFFICIENCY.] 
           Subdivision 1.  [ESTABLISHMENT; GUARANTEED MINIMUM 
        ALLOCATION.] (a) The commissioner shall make grants under this 
        subdivision to assist county and tribal TANF programs to more 
        effectively serve hard-to-employ MFIP participants.  Funds 
        appropriated for local intervention grants for self-sufficiency 
        must be allocated first in amounts equal to the guaranteed 
        minimum in paragraph (b), and second according to the provisions 
        of subdivision 2.  Any remaining funds must be allocated 
        according to the formula in subdivision 3.  Counties or tribes 
        must have an approved local service unit plan under section 
        256J.50, subdivision 7, paragraph (b), in order to receive and 
        expend funds under subdivisions 2 and 3.  
           (b) Each county or tribal program shall receive a 
        guaranteed minimum annual allocation of $25,000. 
           Subd. 2.  [SET-ASIDE FUNDS.] (a) Of the funds appropriated 
        for grants under this section, after the allocation in 
        subdivision 1, paragraph (b), is made, 20 percent of the 
        remaining funds each year shall be retained by the commissioner 
        and awarded to counties or tribes whose approved plans 
        demonstrate additional need based on their identification of 
        hard-to-employ families and working participants in need of job 
        retention and wage advancement services, strong anticipated 
        outcomes for families and an effective plan for monitoring 
        performance, or, use of a multicounty, multi-entity or regional 
        approach to serve hard-to-employ families and working 
        participants in need of job retention and wage advancement 
        services who are identified as a target population to be served 
        in the plan submitted under section 256J.50, subdivision 7, 
        paragraph (b).  In distributing funds under this paragraph, the 
        commissioner must achieve a geographic balance.  The 
        commissioner may award funds under this paragraph to other 
        public, private, or nonprofit entities to deliver services in a 
        county or region where the entity or entities submit a plan that 
        demonstrates a strong capability to fulfill the terms of the 
        plan and where the plan shows an innovative or multi-entity 
        approach. 
           (b) For fiscal year 2001 only, of the funds available under 
        this subdivision the commissioner must allocate funding in the 
        amounts specified in article 1, section 2, subdivision 7, for an 
        intensive intervention transitional employment training project 
        and for nontraditional career assistance and training programs.  
        These allocations must occur before any set-aside funds are 
        allocated under paragraph (a). 
           Subd. 2a.  [ALTERNATIVE DISTRIBUTION FORMULA.] (a) By 
        January 31, 2001, the commissioner of human services must 
        develop and present to the appropriate legislative committees a 
        distribution formula that is an alternative to the formula 
        allocation specified in subdivision 3.  The proposed 
        distribution formula must target hard-to-employ MFIP 
        participants, and it must include an incentive-based component 
        that is designed to encourage county and tribal programs to 
        effectively serve hard-to-employ participants.  The 
        commissioner's proposal must also be designed to be implemented 
        for fiscal years 2002 and 2003 in place of the formula 
        allocation specified in subdivision 3. 
           (b) Notwithstanding the provisions of subdivision 2, 
        paragraph (a), if the commissioner does not develop a proposed 
        formula as required in paragraph (a), the set-aside funds for 
        fiscal years 2002 and 2003 that the commissioner would otherwise 
        distribute under subdivision 2, paragraph (a), must not be 
        distributed under that provision.  Funds available under 
        subdivision 2, paragraph (a), must instead be allocated in equal 
        amounts to each county and tribal program in fiscal years 2002 
        and 2003. 
           Subd. 3.  [FORMULA ALLOCATION.] Funds remaining after the 
        allocations in subdivisions 1 and 2 must be allocated as follows:
           (1) 85 percent shall be allocated in proportion to each 
        county's and tribal TANF program's one-parent MFIP cases that 
        have received MFIP assistance for at least 25 months, as sampled 
        on December 31 of the previous calendar year, excluding cases 
        where all caregivers are age 60 or over. 
           (2) 15 percent shall be allocated to each county's and 
        tribal TANF program's two-parent MFIP cases that have received 
        MFIP assistance for at least 25 months, as sampled on December 
        31 of the previous calendar year, excluding cases where all 
        caregivers are age 60 or over. 
           Subd. 4.  [USE OF FUNDS.] (a) A county or tribal program 
        may use funds allocated under this subdivision to provide 
        services to MFIP participants who are hard-to-employ and their 
        families.  Services provided must be intended to reduce the 
        number of MFIP participants who are expected to reach the 
        60-month time limit under section 256J.42.  Counties, tribes, 
        and other entities receiving funds under subdivisions 2 or 3 
        must submit semiannual progress reports to the commissioner 
        which detail program outcomes. 
           (b) Funds allocated under this section may not be used to 
        provide benefits that are defined as "assistance" in Code of 
        Federal Regulations, title 45, section 260.31, to an assistance 
        unit that is only receiving the food portion of MFIP benefits. 
           (c) A county may use funds allocated under this section for 
        that part of the match for federal access to jobs transportation 
        funds that is TANF-eligible.  A county may also use funds 
        allocated under this section to enhance transportation choices 
        for eligible recipients up to 150 percent of the federal poverty 
        guidelines. 
           Subd. 5.  [SUNSET.] The grant program under this section 
        sunsets on June 30, 2003. 
           Sec. 23.  [256J.655] [NONTRADITIONAL CAREER ASSISTANCE AND 
        TRAINING.] 
           With the approval of the job counselor, a participant may 
        enroll and participate in a nontraditional career assistance and 
        training (NCAT) program under section 256K.30.  An MFIP 
        recipient participating in an NCAT program with the approval of 
        the job counselor is also eligible for employment and training 
        services, including child care and transportation. 
           Sec. 24.  [256J.88] [CHILD ONLY TANF PROGRAM.] 
           Children who receive assistance under this chapter, in 
        which the assistance unit does not include a caregiver, but only 
        includes a minor child, shall become part of the program 
        established under this section. 
           Sec. 25.  [256K.25] [SUPPORTIVE HOUSING AND MANAGED CARE 
        PILOT PROJECT.] 
           Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] (a) The 
        commissioner shall establish a supportive housing and managed 
        care pilot project in two counties, one within the seven-county 
        metropolitan area and one outside of that area, to determine 
        whether the integrated delivery of employment services, 
        supportive services, housing, and health care into a single, 
        flexible program will: 
           (1) reduce public expenditures on homeless families with 
        minor children, homeless noncustodial parents, and other 
        homeless individuals; 
           (2) increase the employment rates of these persons; and 
           (3) provide a new alternative to providing services to this 
        hard-to-serve population. 
           (b) The commissioner shall create a program for counties 
        for the purpose of providing integrated intensive and 
        individualized case management services, employment services, 
        health care services, rent subsidies or other short- or 
        medium-term housing assistance, and other supportive services to 
        eligible families and individuals.  Minimum project and 
        application requirements shall be developed by the commissioner 
        in cooperation with counties and their nonprofit partners with 
        the goal to provide the maximum flexibility in program design. 
           (c) Services available under this project must be 
        coordinated with available health care services for an eligible 
        project participant. 
           Subd. 2.  [DEFINITION.] For purposes of this section, 
        "homeless" means having no appropriate housing available and 
        lacking the resources necessary to access permanent housing, as 
        determined by the county requesting funding under subdivision 3, 
        and: 
           (1) living, or being at imminent risk of living, on the 
        street or in a shelter; or 
           (2) having been evicted from a dwelling or discharged from 
        a regional treatment center, state-operated community-based 
        program, community hospital, or residential treatment program.  
           Subd. 3.  [COUNTY ELIGIBILITY.] A county may request 
        funding under this pilot project if the county: 
           (1) agrees to develop, in cooperation with nonprofit 
        partners, a supportive housing and managed care pilot project 
        that integrates the delivery of employment services, supportive 
        services, housing and health care for eligible families and 
        individuals, or agrees to contract with an existing integrated 
        program; 
           (2) for eligible participants who are also MFIP recipients, 
        agrees to develop, in cooperation with nonprofit partners, 
        procedures to ensure that the services provided under the pilot 
        project are closely coordinated with the services provided under 
        MFIP; and 
           (3) develops a method for evaluating the quality of the 
        integrated services provided and the amount of any resulting 
        cost savings to the county and state. 
           Subd. 4.  [PARTICIPANT ELIGIBILITY.] (a) In order to be 
        eligible for the pilot project, the county must determine that a 
        participant is homeless or is at risk of homelessness; has a 
        mental illness, a history of substance abuse, or HIV; and is a 
        family that meets the criteria in paragraph (b) or is an 
        individual who meets the criteria in paragraph (c). 
           (b) An eligible family must include a minor child or a 
        pregnant woman, and: 
           (1) be receiving or be eligible for MFIP assistance under 
        chapter 256J; or 
           (2) include an adult caregiver who is employed or is 
        receiving employment and training services, and have household 
        income below the MFIP exit level in section 256J.24, subdivision 
        10.  
           (c) An eligible individual must: 
           (1) meet the eligibility requirements of the group 
        residential housing program under section 256I.04, subdivision 
        1; or 
           (2) be a noncustodial parent who is employed or is 
        receiving employment and training services, and have household 
        income below the MFIP exit level in section 256J.24, subdivision 
        10.  
           Subd. 5.  [FUNDING.] A county may request funding from the 
        commissioner for a specified number of TANF-eligible project 
        participants.  The commissioner shall review the request for 
        compliance with subdivisions 1 to 4 and may approve or 
        disapprove the request.  If other funds are available, the 
        commissioner may allocate funding for project participants who 
        meet the eligibility requirements of subdivision 4, paragraph 
        (c).  
           Subd. 6.  [REPORT.] Participating counties and the 
        commissioner shall collaborate to prepare and issue an annual 
        report, beginning December 1, 2001, to the chairs of the 
        appropriate legislative committees on the pilot project's use of 
        public resources, including other funds leveraged for this 
        initiative, the employment and housing status of the families 
        and individuals served in the project, and the 
        cost-effectiveness of the project.  The annual report must also 
        evaluate the pilot project with respect to the following project 
        goals:  that participants will lead more productive, healthier, 
        more stable and better quality lives; that the teams created 
        under the project to deliver services for each project 
        participant will be accountable for ensuring that services are 
        more appropriate, cost-effective and well-coordinated; and that 
        the system-wide costs of serving this population, and the 
        inappropriate use of emergency, crisis-oriented or institutional 
        services, will be materially reduced.  The commissioner shall 
        provide data that may be needed to evaluate the project to 
        participating counties that request the data. 
           Subd. 7.  [SUNSET.] The pilot project under this section 
        sunsets on June 30, 2006. 
           Sec. 26.  [256K.30] [GRANTS FOR NONTRADITIONAL CAREER 
        ASSISTANCE AND TRAINING PROGRAMS.] 
           Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] The 
        commissioner shall establish a program of reimbursement-based 
        grants to nonprofit organizations to provide nontraditional 
        career assistance and training (NCAT) programs that encourage 
        and assist low-income women with minor children to enter 
        nontraditional careers in the trades and in manual and technical 
        operations. 
           Subd. 2.  [REQUIREMENTS FOR GRANTEES.] To be eligible for a 
        grant under this section, an NCAT program must include the 
        career assistance component specified in subdivision 4. 
           Subd. 3.  [OUTREACH COMPONENT.] An NCAT program may include 
        an outreach component that provides outreach to girls and women 
        through public and private elementary and secondary schools, 
        appropriate community organizations, or existing state and 
        county employment and training programs.  The outreach must 
        consist of:  general information concerning opportunities for 
        women in the trades, manual, and technical occupations, 
        including specific fields where worker shortages exist; and 
        specific information about training programs offered.  The 
        outreach may include printed or recorded information, hands-on 
        experiences for women and girls, presentations to women and 
        girls, or ongoing contact with appropriate staff. 
           Federal TANF funds may not be used for the outreach 
        component of an NCAT program. 
           Subd. 4.  [CAREER ASSISTANCE COMPONENT.] An NCAT program 
        may include a career assistance component that provides the 
        following assistance for low-income women to enter careers in 
        the trades and technical occupations: 
           (1) training designed to prepare women to succeed in 
        nontraditional occupations, conducted by an NCAT grantee or in 
        collaboration with another institution.  The training must cover 
        the knowledge and skills required for the trade, information 
        about on-the-job realities for women in the particular trade, 
        physical strength and stamina training as needed, opportunities 
        for developing workplace problem-solving skills, and information 
        about the current and projected future job market and likely 
        career path for the trade; 
           (2) assistance with child care and transportation during 
        training, during job search, and for at least the first two 
        months of posttraining employment; 
           (3) job placement assistance during training, during job 
        search, and for at least two years after completion of the 
        training program; and 
           (4) job retention support may be in the form of mentorship 
        programs, support groups, or ongoing staff contact for at least 
        the first year of posttraining employment, including access to 
        job-related information, assistance with workplace issue 
        resolution, and access to advocacy services. 
           Subd. 5.  [NCAT; ELIGIBLE PARTICIPANTS.] To be eligible to 
        enroll in an NCAT program under this section, a participant must 
        be a female caregiver receiving assistance under chapter 256J or 
        this chapter.  
           Subd. 6.  [ACCESSIBILITY REQUIRED.] Approved NCAT programs 
        must be accessible to women who are MFIP participants.  Factors 
        that contribute to a program's accessibility include: 
           (1) affordability of tuition and supplies; 
           (2) geographic proximity to low-income neighborhoods, child 
        care, and public transportation routes; and 
           (3) flexibility of the hours per week required by the 
        program and the duration of the program, in order to be 
        compatible with the program participants' family needs and the 
        need for participants to be employed during training. 
           Sec. 27.  [256K.35] [AT-RISK YOUTH OUT-OF-WEDLOCK PREGNANCY 
        PREVENTION PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] The 
        commissioner shall establish a statewide grant program to 
        prevent or reduce the incidence of out-of-wedlock pregnancies 
        among homeless, runaway, or thrown-away youth who are at risk of 
        being prostituted or currently being used in prostitution.  The 
        goal of the out-of-wedlock pregnancy prevention program is to 
        significantly increase the number of existing short-term shelter 
        beds for these youth in the state.  By providing street outreach 
        and supportive services for emergency shelter, transitional 
        housing, and services to reconnect the youth with their families 
        where appropriate, the number of youth at risk of being sexually 
        exploited or actually being sexually exploited, and thus at risk 
        of experiencing an out-of-wedlock pregnancy, will be reduced. 
           Subd. 2.  [FUNDS AVAILABLE.] The commissioner shall make 
        funds for street outreach and supportive services for emergency 
        shelter and transitional housing for out-of-wedlock pregnancy 
        prevention available to eligible nonprofit corporations or 
        government agencies to provide supportive services for emergency 
        and transitional housing for at-risk youth.  The commissioner 
        shall consider the need for emergency and transitional housing 
        supportive services throughout the state, and must give priority 
        to applicants who offer 24-hour emergency facilities. 
           Subd. 3.  [APPLICATION; ELIGIBILITY.] (a) A nonprofit 
        corporation or government agency must submit an application to 
        the commissioner in the form and manner the commissioner 
        establishes.  The application must describe how the applicant 
        meets the eligibility criteria under paragraph (b).  The 
        commissioner may also require an applicant to provide additional 
        information. 
           (b) To be eligible for funding under this section, an 
        applicant must meet the following criteria: 
           (1) the applicant must have a commitment to helping the 
        community, children, and preventing juvenile prostitution.  If 
        the applicant does not have any past experience with youth 
        involved in or at risk of being used in prostitution, the 
        applicant must demonstrate knowledge of best practices in this 
        area and develop a plan to follow those practices; 
           (2) the applicant must present a plan to communicate with 
        local law enforcement officials, social services, and the 
        commissioner consistent with state and federal law; and 
           (3) the applicant must present a plan to encourage 
        homeless, runaway, or thrown-away youth to either reconnect with 
        family or to transition into long-term housing. 
           Subd. 4.  [USES OF FUNDS.] (a) Funds available under this 
        section must be used to create and maintain supportive services 
        for emergency shelter and transitional housing for homeless, 
        runaway, and thrown-away youth.  Federal TANF funds must be used 
        to serve youth and their families with household income below 
        200 percent of the federal poverty guidelines.  If other funds 
        are available, services may be provided to youth outside of 
        TANF-eligible families. 
           (b) Funds available under this section shall not be used to 
        conduct general education or awareness programs unrelated to the 
        operation of an emergency shelter or transitional housing. 
           Sec. 28.  Laws 1997, chapter 203, article 9, section 21, as 
        amended by Laws 1998, chapter 407, article 6, section 111, is 
        amended to read: 
           Sec. 21.  [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 
           (a) Beginning July 1, 2000 Effective on the date specified, 
        the following persons will be ineligible for general assistance 
        and general assistance medical care under Minnesota Statutes, 
        chapter 256D, group residential housing under Minnesota 
        Statutes, chapter 256I, and MFIP-S MFIP assistance under 
        Minnesota Statutes, chapter 256J, funded with state money: 
           (1) Beginning July 1, 2002, persons who are terminated from 
        or denied Supplemental Security Income due to the 1996 changes 
        in the federal law making persons whose alcohol or drug 
        addiction is a material factor contributing to the person's 
        disability ineligible for Supplemental Security Income, and are 
        eligible for general assistance under Minnesota Statutes, 
        section 256D.05, subdivision 1, paragraph (a), clause (17) 15, 
        general assistance medical care under Minnesota Statutes, 
        chapter 256D, or group residential housing under Minnesota 
        Statutes, chapter 256I; 
           (2) Beginning July 1, 2002, legal noncitizens who are 
        ineligible for Supplemental Security Income due to the 1996 
        changes in federal law making certain noncitizens ineligible for 
        these programs due to their noncitizen status; and 
           (3) Beginning July 1, 2001, legal noncitizens who are 
        eligible for MFIP-S MFIP assistance, either the cash assistance 
        portion or the food assistance portion, funded entirely with 
        state money. 
           (b) State money that remains unspent due to changes in 
        federal law enacted after May 12, 1997, that reduce state 
        spending for legal noncitizens or for persons whose alcohol or 
        drug addiction is a material factor contributing to the person's 
        disability, or enacted after February 1, 1998, that reduce state 
        spending for food benefits for legal noncitizens shall not 
        cancel and shall be deposited in the TANF reserve account.  
           Sec. 29.  [PILOT PROJECTS FOR MFIP ELIGIBLE FAMILIES.] 
           The commissioner of human services shall authorize Dakota 
        county and four other counties to test alternative approaches to 
        improve compliance with MFIP work requirements or to encourage 
        rapid entrance into the workforce.  The projects are intended to 
        improve employability and self-sufficiency outcomes for MFIP 
        eligible families.  These county pilots may test different 
        approaches which include, but are not limited to, diversion of 
        MFIP eligible applicants and case suspension or closure for 
        participants unwilling to fulfill the conditions of the 
        employment or job search support plan. 
           For purposes of eligibility for child care assistance under 
        Minnesota Statutes, chapter 119B, all pilot program participants 
        shall be eligible for the same benefits as MFIP recipients.  
           The four counties, other than Dakota county, will be 
        selected as pilot sites through a request for proposals (RFP) 
        process.  Dakota county's proposal shall meet the same criteria 
        required of those counties that respond to the RFP.  County 
        proposals must define the nature and scope of the pilot and must 
        be cost neutral to the state.  The commissioner must analyze 
        proposals for system impacts.  The commissioner may authorize 
        counties to implement these pilots when the state agency 
        determines the county agency is prepared and any system changes 
        are complete.  The commissioner will work with the counties in 
        developing policies and guidelines for operating the pilots.  
        The commissioner will provide technical assistance to county 
        agencies to evaluate the effectiveness of the pilots.  The 
        commissioner and county agencies shall report the evaluation 
        findings to the chairs of the house health and human services 
        and senate health and family security policy and fiscal 
        committees by February 1, 2002.  An interim status report must 
        be provided to the committee chairs by February 1, 2001. 
           Sec. 30.  [REPORTS ON SAVE IMPLEMENTATION.] 
           On January 15, 2003, and January 15, 2004, the commissioner 
        shall report to the chairs of the house health and human 
        services policy committee and the senate health and family 
        security committee on the usage and costs of the SAVE program 
        over the previous year.  These reports must include summary, 
        nonidentifying information on the number of inquiries per month 
        that were submitted to the SAVE system, the number of times 
        secondary verifications were pursued as a result of the 
        inquiries submitted to SAVE, and the number of times the county 
        determined, as a result of information provided through the SAVE 
        system, that an applicant to a program listed in section 256.01, 
        subdivision 18, was ineligible for benefits due to the 
        applicant's immigration status. 
           Sec. 31.  [REPORT ON EFFECT OF ELIGIBILITY SUNSET DELAY.] 
           The health care division of the department of human 
        services shall conduct a study to identify the characteristics 
        of the GA, GAMC, and GRH recipients for whom program eligibility 
        has been extended past June 30, 2000, due to a change in state 
        law.  Division staff must collect and report summary information 
        about the affected recipients that includes, but is not limited 
        to, information about the recipients':  current employment 
        status and employment history; disabilities; past and present 
        involvement in chemical dependency treatment or related 
        services; criminal history, if any; and other barriers that 
        affect the recipients' ability to live independently.  The 
        report must not include uniquely identifying information about 
        the affected recipients.  The report must also include 
        information on the actual and projected costs of extending these 
        recipients' eligibility for the GA, GAMC, and GRH programs past 
        June 30, 2000.  The report must be submitted to the chairs of 
        the house of representatives and senate policy and fiscal 
        committees with jurisdiction over these programs by January 15, 
        2001. 
           Sec. 32.  [REPEALER.] 
           Laws 1999, chapter 245, article 5, section 24, is repealed. 

                                   ARTICLE 11
                             TECHNICAL CORRECTIONS 
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        62J.535, subdivision 2, is amended to read: 
           Subd. 2.  [COMPLIANCE.] (a) Concurrent with the effective 
        dates date of required compliance established under United 
        States Code, title 42, sections 1320d to 1320d-8, as amended 
        from time to time, for uniform electronic billing standards, all 
        health care providers must conform to the uniform billing 
        standards developed under subdivision 1. 
           (b) Notwithstanding paragraph (a), the requirements for the 
        uniform remittance advice report shall be effective 12 months 
        after the date of the required compliance of the standards for 
        the electronic remittance advice transaction are effective under 
        United States Code, title 42, sections 1320d to 1320d-8, as 
        amended from time to time. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 2.  Minnesota Statutes 1998, section 125A.74, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY.] A district may enroll as a 
        provider in the medical assistance program and receive medical 
        assistance payments for covered special education services 
        provided to persons eligible for medical assistance under 
        chapter 256B.  To receive medical assistance payments, the 
        district must pay the nonfederal share of medical assistance 
        services provided according to section 256B.0625, subdivision 
        26, and comply with relevant provisions of state and federal 
        statutes and regulations governing the medical assistance 
        program. 
           Sec. 3.  Minnesota Statutes 1998, section 125A.74, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FUNDING.] A district that provides a covered 
        service to an eligible person and complies with relevant 
        requirements of the medical assistance program is entitled to 
        receive payment for the service provided, including that portion 
        of the payment services that will subsequently be reimbursed by 
        the federal government, in the same manner as other medical 
        assistance providers.  The school district is not required to 
        provide matching funds or pay part of the costs of the service, 
        as long as the rate charged for the service does not exceed 
        medical assistance limits that apply to all medical assistance 
        providers. 
           Sec. 4.  Minnesota Statutes 1999 Supplement, section 
        144.395, is amended by adding a subdivision to read: 
           Subd. 3.  [SUNSET.] The tobacco use prevention and local 
        public health endowment fund expires June 30, 2015.  Upon 
        expiration, the commissioner of finance shall transfer the 
        principal and any remaining interest to the general fund.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 5.  Minnesota Statutes 1999 Supplement, section 
        144.396, subdivision 11, is amended to read: 
           Subd. 11.  [AUDITS REQUIRED.] The legislative auditor shall 
        audit tobacco use prevention and local public health endowment 
        fund expenditures to ensure that the money is spent for tobacco 
        use prevention measures and public health initiatives.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 6.  Minnesota Statutes 1999 Supplement, section 
        144.396, subdivision 12, is amended to read: 
           Subd. 12.  [ENDOWMENT FUND NOT TO SUPPLANT EXISTING 
        FUNDING.] Appropriations from the account tobacco use prevention 
        and local public health endowment fund must not be used as a 
        substitute for traditional sources of funding tobacco use 
        prevention activities or public health initiatives.  Any local 
        unit of government receiving money under this section must 
        ensure that existing local financial efforts remain in place.  
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 7.  Minnesota Statutes 1999 Supplement, section 
        256B.0916, subdivision 1, is amended to read: 
           Subdivision 1.  [REDUCTION OF WAITING LIST.] (a) The 
        legislature recognizes that as of January 1, 1999, 3,300 persons 
        with mental retardation or related conditions have been screened 
        and determined eligible for the home and community-based waiver 
        services program for persons with mental retardation or related 
        conditions.  Many wait for several years before receiving 
        service. 
           (b) The waiting list for this program shall be reduced or 
        eliminated by June 30, 2003.  In order to reduce the number of 
        eligible persons waiting for identified services provided 
        through the home and community-based waiver for persons with 
        mental retardation or related conditions, during the period from 
        July 1, 1999, to June 30, 2003, funding shall be increased to 
        add 100 additional eligible persons each year beyond the 
        February 1999 medical assistance forecast. 
           (c) The commissioner shall allocate resources in such a 
        manner as to use all resources budgeted for the home and 
        community-based waiver for persons with mental retardation or 
        related conditions according to the priorities listed in 
        subdivision 2, paragraph (b), and then to serve other persons on 
        the waiting list.  Resources allocated for a fiscal year to 
        serve persons affected by public and private sector ICF/MR 
        closures, but not expected to be expended for that purpose, must 
        be reallocated within that fiscal year to serve other persons on 
        the waiting list, and the number of waiver diversion slots shall 
        be adjusted accordingly. 
           (d) For fiscal year 2001, at least one-half of the increase 
        in funding over the previous year provided in the February 1999 
        medical assistance forecast for the home and community-based 
        waiver for persons with mental retardation and related 
        conditions, including changes made by the 1999 legislature, must 
        be used to serve persons who are not affected by public and 
        private sector ICF/MR closures. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 8.  Minnesota Statutes 1999 Supplement, section 
        256D.03, subdivision 4, is amended to read: 
           Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
        For a person who is eligible under subdivision 3, paragraph (a), 
        clause (3), general assistance medical care covers, except as 
        provided in paragraph (c): 
           (1) inpatient hospital services; 
           (2) outpatient hospital services; 
           (3) services provided by Medicare certified rehabilitation 
        agencies; 
           (4) prescription drugs and other products recommended 
        through the process established in section 256B.0625, 
        subdivision 13; 
           (5) equipment necessary to administer insulin and 
        diagnostic supplies and equipment for diabetics to monitor blood 
        sugar level; 
           (6) eyeglasses and eye examinations provided by a physician 
        or optometrist; 
           (7) hearing aids; 
           (8) prosthetic devices; 
           (9) laboratory and X-ray services; 
           (10) physician's services; 
           (11) medical transportation; 
           (12) chiropractic services as covered under the medical 
        assistance program; 
           (13) podiatric services; 
           (14) dental services; 
           (15) outpatient services provided by a mental health center 
        or clinic that is under contract with the county board and is 
        established under section 245.62; 
           (16) day treatment services for mental illness provided 
        under contract with the county board; 
           (17) prescribed medications for persons who have been 
        diagnosed as mentally ill as necessary to prevent more 
        restrictive institutionalization; 
           (18) psychological services, medical supplies and 
        equipment, and Medicare premiums, coinsurance and deductible 
        payments; 
           (19) medical equipment not specifically listed in this 
        paragraph when the use of the equipment will prevent the need 
        for costlier services that are reimbursable under this 
        subdivision; 
           (20) services performed by a certified pediatric nurse 
        practitioner, a certified family nurse practitioner, a certified 
        adult nurse practitioner, a certified obstetric/gynecological 
        nurse practitioner, a certified neonatal nurse practitioner, or 
        a certified geriatric nurse practitioner in independent 
        practice, if (1) the service is otherwise covered under this 
        chapter as a physician service, (2) a the service provided on an 
        inpatient basis is not included as part of the cost for 
        inpatient services included in the operating payment rate, and 
        (3) the service is within the scope of practice of the nurse 
        practitioner's license as a registered nurse, as defined in 
        section 148.171; 
           (21) services of a certified public health nurse or a 
        registered nurse practicing in a public health nursing clinic 
        that is a department of, or that operates under the direct 
        authority of, a unit of government, if the service is within the 
        scope of practice of the public health nurse's license as a 
        registered nurse, as defined in section 148.171; and 
           (22) telemedicine consultations, to the extent they are 
        covered under section 256B.0625, subdivision 3b.  
           (b) Except as provided in paragraph (c), for a recipient 
        who is eligible under subdivision 3, paragraph (a), clause (1) 
        or (2), general assistance medical care covers the services 
        listed in paragraph (a) with the exception of special 
        transportation services. 
           (c) Gender reassignment surgery and related services are 
        not covered services under this subdivision unless the 
        individual began receiving gender reassignment services prior to 
        July 1, 1995.  
           (d) In order to contain costs, the commissioner of human 
        services shall select vendors of medical care who can provide 
        the most economical care consistent with high medical standards 
        and shall where possible contract with organizations on a 
        prepaid capitation basis to provide these services.  The 
        commissioner shall consider proposals by counties and vendors 
        for prepaid health plans, competitive bidding programs, block 
        grants, or other vendor payment mechanisms designed to provide 
        services in an economical manner or to control utilization, with 
        safeguards to ensure that necessary services are provided.  
        Before implementing prepaid programs in counties with a county 
        operated or affiliated public teaching hospital or a hospital or 
        clinic operated by the University of Minnesota, the commissioner 
        shall consider the risks the prepaid program creates for the 
        hospital and allow the county or hospital the opportunity to 
        participate in the program in a manner that reflects the risk of 
        adverse selection and the nature of the patients served by the 
        hospital, provided the terms of participation in the program are 
        competitive with the terms of other participants considering the 
        nature of the population served.  Payment for services provided 
        pursuant to this subdivision shall be as provided to medical 
        assistance vendors of these services under sections 256B.02, 
        subdivision 8, and 256B.0625.  For payments made during fiscal 
        year 1990 and later years, the commissioner shall consult with 
        an independent actuary in establishing prepayment rates, but 
        shall retain final control over the rate methodology.  
        Notwithstanding the provisions of subdivision 3, an individual 
        who becomes ineligible for general assistance medical care 
        because of failure to submit income reports or recertification 
        forms in a timely manner, shall remain enrolled in the prepaid 
        health plan and shall remain eligible for general assistance 
        medical care coverage through the last day of the month in which 
        the enrollee became ineligible for general assistance medical 
        care. 
           (e) The commissioner of human services may reduce payments 
        provided under sections 256D.01 to 256D.21 and 261.23 in order 
        to remain within the amount appropriated for general assistance 
        medical care, within the following restrictions: 
           (i) For the period July 1, 1985 to December 31, 1985, 
        reductions below the cost per service unit allowable under 
        section 256.966, are permitted only as follows:  payments for 
        inpatient and outpatient hospital care provided in response to a 
        primary diagnosis of chemical dependency or mental illness may 
        be reduced no more than 30 percent; payments for all other 
        inpatient hospital care may be reduced no more than 20 percent.  
        Reductions below the payments allowable under general assistance 
        medical care for the remaining general assistance medical care 
        services allowable under this subdivision may be reduced no more 
        than ten percent. 
           (ii) For the period January 1, 1986 to December 31, 1986, 
        reductions below the cost per service unit allowable under 
        section 256.966 are permitted only as follows:  payments for 
        inpatient and outpatient hospital care provided in response to a 
        primary diagnosis of chemical dependency or mental illness may 
        be reduced no more than 20 percent; payments for all other 
        inpatient hospital care may be reduced no more than 15 percent.  
        Reductions below the payments allowable under general assistance 
        medical care for the remaining general assistance medical care 
        services allowable under this subdivision may be reduced no more 
        than five percent. 
           (iii) For the period January 1, 1987 to June 30, 1987, 
        reductions below the cost per service unit allowable under 
        section 256.966 are permitted only as follows:  payments for 
        inpatient and outpatient hospital care provided in response to a 
        primary diagnosis of chemical dependency or mental illness may 
        be reduced no more than 15 percent; payments for all other 
        inpatient hospital care may be reduced no more than ten 
        percent.  Reductions below the payments allowable under medical 
        assistance for the remaining general assistance medical care 
        services allowable under this subdivision may be reduced no more 
        than five percent.  
           (iv) For the period July 1, 1987 to June 30, 1988, 
        reductions below the cost per service unit allowable under 
        section 256.966 are permitted only as follows:  payments for 
        inpatient and outpatient hospital care provided in response to a 
        primary diagnosis of chemical dependency or mental illness may 
        be reduced no more than 15 percent; payments for all other 
        inpatient hospital care may be reduced no more than five percent.
        Reductions below the payments allowable under medical assistance 
        for the remaining general assistance medical care services 
        allowable under this subdivision may be reduced no more than 
        five percent. 
           (v) For the period July 1, 1988 to June 30, 1989, 
        reductions below the cost per service unit allowable under 
        section 256.966 are permitted only as follows:  payments for 
        inpatient and outpatient hospital care provided in response to a 
        primary diagnosis of chemical dependency or mental illness may 
        be reduced no more than 15 percent; payments for all other 
        inpatient hospital care may not be reduced.  Reductions below 
        the payments allowable under medical assistance for the 
        remaining general assistance medical care services allowable 
        under this subdivision may be reduced no more than five percent. 
           (f) There shall be no copayment required of any recipient 
        of benefits for any services provided under this subdivision.  A 
        hospital receiving a reduced payment as a result of this section 
        may apply the unpaid balance toward satisfaction of the 
        hospital's bad debts. 
           (g) (f) Any county may, from its own resources, provide 
        medical payments for which state payments are not made. 
           (h) (g) Chemical dependency services that are reimbursed 
        under chapter 254B must not be reimbursed under general 
        assistance medical care. 
           (i) (h) The maximum payment for new vendors enrolled in the 
        general assistance medical care program after the base year 
        shall be determined from the average usual and customary charge 
        of the same vendor type enrolled in the base year. 
           (j) (i) The conditions of payment for services under this 
        subdivision are the same as the conditions specified in rules 
        adopted under chapter 256B governing the medical assistance 
        program, unless otherwise provided by statute or rule. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 9.  Laws 1999, chapter 245, article 1, section 2, 
        subdivision 5, is amended to read: 
        Subd. 5.  Basic Health Care Grants
                      Summary by Fund
        General             867,174,000   916,234,000
        Health Care
        Access              116,490,000   145,469,000
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Minnesota Care Grants-
        Health Care
        Access              116,490,000   145,469,000
        [HOSPITAL INPATIENT COPAYMENTS.] The 
        commissioner of human services may 
        require hospitals to refund hospital 
        inpatient copayments paid by enrollees 
        pursuant to Minnesota Statutes, section 
        256L.03, subdivision 5, between March 
        1, 1999, and December 31, 1999.  If the 
        commissioner requires hospitals to 
        refund these copayments, the hospitals 
        shall collect the copayment directly 
        from the commissioner. 
        [MINNESOTACARE OUTREACH FEDERAL 
        MATCHING FUNDS.] Any federal matching 
        funds received as a result of the 
        MinnesotaCare outreach activities 
        authorized by Laws 1997, chapter 225, 
        article 7, section 2, subdivision 1, 
        shall be deposited in the health care 
        access fund and dedicated to the 
        commissioner to be used for those 
        outreach purposes. 
        [FEDERAL RECEIPTS FOR ADMINISTRATION.] 
        Receipts received as a result of 
        federal participation pertaining to 
        administrative costs of the Minnesota 
        health care reform waiver shall be 
        deposited as nondedicated revenue in 
        the health care access fund.  Receipts 
        received as a result of federal 
        participation pertaining to grants 
        shall be deposited in the federal fund 
        and shall offset health care access 
        funds for payments to providers. 
        [HEALTH CARE ACCESS FUND.] The 
        commissioner may expend money 
        appropriated from the health care 
        access fund for MinnesotaCare in either 
        fiscal year of the biennium. 
        (b) MA Basic Health Care Grants-
        Families and Children
        General             307,053,000   320,112,000
        [COMMUNITY DENTAL CLINICS.] Of this 
        appropriation, $600,000 in fiscal year 
        2000 is for the commissioner to provide 
        start-up grants to establish community 
        dental clinics under Minnesota 
        Statutes, section 256B.76, paragraph 
        (b), clause (5) (4).  The commissioner 
        shall award grants and shall require 
        grant recipients to match the state 
        grant with nonstate funding on a 
        one-to-one basis.  This is a one-time 
        appropriation and shall not become part 
        of base level funding for this activity 
        for the 2002-2003 biennium. 
        (c) MA Basic Health Care Grants- 
        Elderly & Disabled
        General             404,814,000   451,928,000
        [SURCHARGE COMPLIANCE.] In the event 
        that federal financial participation in 
        the Minnesota medical assistance 
        program is reduced as a result of a 
        determination that the surcharge and 
        intergovernmental transfers governed by 
        Minnesota Statutes, sections 256.9657 
        and 256B.19 are out of compliance with 
        United States Code, title 42, section 
        1396b(w), or its implementing 
        regulations or with any other federal 
        law designed to restrict provider tax 
        programs or intergovernmental 
        transfers, the commissioner shall 
        appeal the determination to the fullest 
        extent permitted by law and may ratably 
        reduce all medical assistance and 
        general assistance medical care 
        payments to providers other than the 
        state of Minnesota in order to 
        eliminate any shortfall resulting from 
        the reduced federal funding.  Any 
        amount later recovered through the 
        appeals process shall be used to 
        reimburse providers for any ratable 
        reductions taken. 
        [BLOOD PRODUCTS LITIGATION.] To the 
        extent permitted by federal law, 
        Minnesota Statutes, section 256.015, 
        256B.042, and 256B.15, are waived as 
        necessary for the limited purpose of 
        resolving the state's claims in 
        connection with In re Factor VIII or IX 
        Concentrate Blood Products Litigation, 
        MDL-986, No. 93-C7452 (N.D.III.). 
        (d) General Assistance Medical Care
        General             141,805,000   128,012,000
        (e) Basic Health Care - Nonentitlement
        General              13,502,000    16,182,000
        [DENTAL ACCESS GRANT.] Of this 
        appropriation, $75,000 is from the 
        general fund to the commissioner in 
        fiscal year 2000 for a grant to a 
        nonprofit dental provider group 
        operating a dental clinic in Clay 
        county.  The grant must be used to 
        increase access to dental services for 
        recipients of medical assistance, 
        general assistance medical care, and 
        the MinnesotaCare program in the 
        northwest area of the state.  This 
        appropriation is available the day 
        following final enactment. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 10.  Laws 1999, chapter 245, article 1, section 2, 
        subdivision 8, is amended to read: 
        Subd. 8.  Continuing Care and 
        Community Support Grants
        General           1,174,195,000 1,259,767,000
        Lottery Prize         1,158,000     1,158,000
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Community Social Services
        Block Grants
            42,597,000     43,498,000 
        [CSSA TRADITIONAL APPROPRIATION.] 
        Notwithstanding Minnesota Statutes, 
        section 256E.06, subdivisions 1 and 2, 
        the appropriations available under that 
        section in fiscal years 2000 and 2001 
        must be distributed to each county 
        proportionately to the aid received by 
        the county in calendar year 1998.  The 
        commissioner, in consultation with 
        counties, shall study the formula 
        limitations in subdivision 2 of that 
        section, and report findings and any 
        recommendations for revision of the 
        CSSA formula and its formula limitation 
        provisions to the legislature by 
        January 15, 2000. 
        (b) Consumer Support Grants
             1,123,000      1,123,000 
        (c) Aging Adult Service Grants
             7,965,000      7,765,000 
        [LIVING-AT-HOME/BLOCK NURSE PROGRAM.] 
        Of the general fund appropriation, 
        $120,000 in fiscal year 2000 and 
        $120,000 in fiscal year 2001 is for the 
        commissioner to provide funding to six 
        additional living-at-home/block nurse 
        programs.  This appropriation shall 
        become part of the base for the 
        2002-2003 biennium. 
        [MINNESOTA SENIOR SERVICE CORPS.] Of 
        this appropriation, $160,000 for the 
        biennium is from the general fund to 
        the commissioner for the following 
        purposes: 
        (a) $40,000 in fiscal year 2000 and 
        $40,000 in fiscal year 2001 is to 
        increase the hourly stipend by ten 
        cents per hour in the foster 
        grandparent program, the retired and 
        senior volunteer program, and the 
        senior companion program. 
        (b) $40,000 in fiscal year 2000 and 
        $40,000 in fiscal year 2001 is for a 
        grant to the tri-valley opportunity 
        council in Crookston to expand services 
        in the ten-county area of northwestern 
        Minnesota. 
        (c) This appropriation shall become 
        part of the base for the 2002-2003 
        biennium.
        [HEALTH INSURANCE COUNSELING.] Of this 
        appropriation, $100,000 in fiscal year 
        2000 and $100,000 in fiscal year 2001 
        is from the general fund to the 
        commissioner to transfer to the board 
        on aging for the purpose of awarding 
        health insurance counseling and 
        assistance grants to the area agencies 
        on aging providing state-funded health 
        insurance counseling services.  Access 
        to health insurance counseling programs 
        shall be provided by the senior linkage 
        line service of the board on aging and 
        the area agencies on aging. The board 
        on aging shall explore opportunities 
        for obtaining alternative funding from 
        nonstate sources, including 
        contributions from individuals seeking 
        health insurance counseling services.  
        This is a one-time appropriation and 
        shall not become part of base level 
        funding for this activity for the 
        2002-2003 biennium. 
        (d) Deaf and Hard-of-Hearing 
        Services Grants
             1,859,000      1,760,000 
        [SERVICES TO DEAF PERSONS WITH MENTAL 
        ILLNESS.] Of this appropriation, 
        $100,000 each year is to the 
        commissioner for a grant to a nonprofit 
        agency that currently serves deaf and 
        hard-of-hearing adults with mental 
        illness through residential programs 
        and supported housing outreach.  The 
        grant must be used to operate a 
        community support program for persons 
        with mental illness that is 
        communicatively accessible for persons 
        who are deaf or hard-of-hearing.  This 
        is a one-time appropriation and shall 
        not become part of base level funding 
        for this activity for the 2002-2003 
        biennium. 
        [DEAF-BLIND ORIENTATION AND MOBILITY 
        SERVICES.] Of this appropriation, 
        $120,000 for the biennium is to the 
        commissioner for a grant to Deaf-Blind 
        Services Minnesota to hire an 
        orientation and mobility specialist to 
        work with deaf-blind people.  The 
        specialist will provide services to 
        deaf-blind Minnesotans, and training to 
        teachers and rehabilitation counselors, 
        on a statewide basis.  This is a 
        one-time appropriation and shall not 
        become part of base level funding for 
        this activity for the 2002-2003 
        biennium. 
        (e) Mental Health Grants
        General          45,169,000     46,528,000 
        Lottery Prize     1,158,000      1,158,000 
        [CRISIS HOUSING.] Of the general fund 
        appropriation, $126,000 in fiscal year 
        2000 and $150,000 in fiscal year 2001 
        is to the commissioner for the adult 
        mental illness crisis housing 
        assistance program under Minnesota 
        Statutes, section 245.99.  This 
        appropriation shall become part of the 
        base for the 2002-2003 biennium. 
        [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 
        $150,000 in fiscal year 2000 and 
        $150,000 in fiscal year 2001 is 
        appropriated from the lottery prize 
        fund created under Minnesota Statutes, 
        section 349A.10, subdivision 2, to the 
        commissioner for the purposes of a 
        grant to a compulsive gambling council 
        located in St. Louis county for a 
        statewide compulsive gambling 
        prevention and education project for 
        adolescents. 
        (f) Developmental Disabilities
        Community Support Grants
           9,323,000     10,958,000 
        [CRISIS INTERVENTION PROJECT.] Of this 
        appropriation, $40,000 in fiscal year 
        2000 is to the commissioner for the 
        action, support, and prevention project 
        of southeastern Minnesota. 
        [SILS FUNDING.] Of this appropriation, 
        $1,000,000 each year is for 
        semi-independent living services under 
        Minnesota Statutes, section 252.275. 
        This appropriation must be added to the 
        base level funding for this activity 
        for the 2002-2003 biennium.  Unexpended 
        funds for fiscal year 2000 do not 
        cancel but are available to the 
        commissioner for this purpose in fiscal 
        year 2001. 
        [FAMILY SUPPORT GRANTS.] Of this 
        appropriation, $1,000,000 in fiscal 
        year 2000 and $2,500,000 in fiscal year 
        2001 is to increase the availability of 
        family support grants under Minnesota 
        Statutes, section 252.32.  This 
        appropriation must be added to the base 
        level funding for this activity for the 
        2002-2003 biennium.  Unexpended funds 
        for fiscal year 2000 do not cancel but 
        are available to the commissioner for 
        this purpose in fiscal year 2001. 
        (g) Medical Assistance Long-Term 
        Care Waivers and Home Care
           349,052,000    414,240,000 
        [PROVIDER RATE INCREASES.] (a) The 
        commissioner shall increase 
        reimbursement rates by four percent the 
        first year of the biennium and by three 
        percent the second year for the 
        providers listed in paragraph (b).  The 
        increases shall be effective for 
        services rendered on or after July 1 of 
        each year. 
        (b) The rate increases described in 
        this section shall be provided to home 
        and community-based waivered services 
        for persons with mental retardation or 
        related conditions under Minnesota 
        Statutes, section 256B.501; home and 
        community-based waivered services for 
        the elderly under Minnesota Statutes, 
        section 256B.0915; waivered services 
        under community alternatives for 
        disabled individuals under Minnesota 
        Statutes, section 256B.49; community 
        alternative care waivered services 
        under Minnesota Statutes, section 
        256B.49; traumatic brain injury 
        waivered services under Minnesota 
        Statutes, section 256B.49; nursing 
        services and home health services under 
        Minnesota Statutes, section 256B.0625, 
        subdivision 6a; personal care services 
        and nursing supervision of personal 
        care services under Minnesota Statutes, 
        section 256B.0625, subdivision 19a; 
        private-duty nursing services under 
        Minnesota Statutes, section 256B.0625, 
        subdivision 7; day training and 
        habilitation services for adults with 
        mental retardation or related 
        conditions under Minnesota Statutes, 
        sections 252.40 to 252.46; alternative 
        care services under Minnesota Statutes, 
        section 256B.0913; adult residential 
        program grants under Minnesota Rules, 
        parts 9535.2000 to 9535.3000; adult and 
        family community support grants under 
        Minnesota Rules, parts 9535.1700 to 
        9535.1760; semi-independent living 
        services under Minnesota Statutes, 
        section 252.275, including SILS funding 
        under county social services grants 
        formerly funded under Minnesota 
        Statutes, chapter 256I; and community 
        support services for deaf and 
        hard-of-hearing adults with mental 
        illness who use or wish to use sign 
        language as their primary means of 
        communication. 
        (c) The commissioner shall increase 
        reimbursement rates by two percent for 
        the group residential housing 
        supplementary service rate under 
        Minnesota Statutes, section 256I.05, 
        subdivision 1a, for services rendered 
        on or after January 1, 2000. 
        (d) Providers that receive a rate 
        increase under this section shall use 
        at least 80 percent of the additional 
        revenue to increase the compensation 
        paid to employees other than the 
        administrator and central office staff. 
        (e) A copy of the provider's plan for 
        complying with paragraph (d) must be 
        made available to all employees.  This 
        must be done by giving each employee a 
        copy or by posting it in an area of the 
        provider's operation to which all 
        employees have access.  If an employee 
        does not receive the salary adjustment 
        described in the plan and is unable to 
        resolve the problem with the provider, 
        the employee may contact the employee's 
        union representative.  If the employee 
        is not covered by a collective 
        bargaining agreement, the employee may 
        contact the commissioner at a phone 
        number provided by the commissioner and 
        included in the provider's plan. 
        (f) Section 13, sunset of uncodified 
        language, does not apply to this 
        provision. 
        [DEVELOPMENTAL DISABILITIES WAIVER 
        SLOTS.] Of this appropriation, 
        $1,746,000 in fiscal year 2000 and 
        $4,683,000 in fiscal year 2001 is to 
        increase the availability of home and 
        community-based waiver services for 
        persons with mental retardation or 
        related conditions.  
        (h) Medical Assistance Long-Term
        Care Facilities
           546,228,000    558,349,000 
        [MORATORIUM EXCEPTIONS.] Of this 
        appropriation, $250,000 in fiscal year 
        2000 and $250,000 in fiscal year 2001 
        is from the general fund to the 
        commissioner for the medical assistance 
        costs of moratorium exceptions approved 
        by the commissioner of health under 
        Minnesota Statutes, section 144A.073.  
        Unexpended money appropriated for 
        fiscal year 2000 shall not cancel but 
        shall be available for fiscal year 2001.
        [NURSING FACILITY OPERATED BY THE RED 
        LAKE BAND OF CHIPPEWA INDIANS.] (1) The 
        medical assistance payment rates for 
        the 47-bed nursing facility operated by 
        the Red Lake Band of Chippewa Indians 
        must be calculated according to 
        allowable reimbursement costs under the 
        medical assistance program, as 
        specified in Minnesota Statutes, 
        section 246.50, and are subject to the 
        facility-specific Medicare upper limits.
        (2) In addition, the commissioner shall 
        make available an operating payment 
        rate adjustment effective July 1, 1999, 
        and July 1, 2000, that is equal to the 
        adjustment provided under Minnesota 
        Statutes, section 256B.431, subdivision 
        28.  The commissioner must use the 
        facility's final 1998 and 1999 Medicare 
        cost reports, respectively, to 
        calculate the adjustment.  The 
        adjustment shall be available based on 
        a plan submitted and approved according 
        to Minnesota Statutes, section 
        256B.431, subdivision 28.  Section 13, 
        sunset of uncodified language, does not 
        apply to this paragraph. 
        [COSTS RELATED TO FACILITY 
        CERTIFICATION.] Of this appropriation, 
        $168,000 is for the costs of providing 
        one-half the state share of medical 
        assistance reimbursement for 
        residential and day habilitation 
        services under article 3, section 39 43.
        This amount is available the day 
        following final enactment. 
        (i) Alternative Care Grants  
        General              60,873,000    59,981,000
        [ALTERNATIVE CARE TRANSFER.] Any money 
        allocated to the alternative care 
        program that is not spent for the 
        purposes indicated does not cancel but 
        shall be transferred to the medical 
        assistance account. 
        [PREADMISSION SCREENING AMOUNT.] The 
        preadmission screening payment to all 
        counties shall continue at the payment 
        amount in effect for fiscal year 1999. 
        [ALTERNATIVE CARE APPROPRIATION.] The 
        commissioner may expend the money 
        appropriated for the alternative care 
        program for that purpose in either year 
        of the biennium. 
        (j) Group Residential Housing
        General              66,477,000    70,390,000
        [GROUP RESIDENTIAL FACILITY FOR WOMEN 
        IN RAMSEY COUNTY.] (a) Notwithstanding 
        Minnesota Statutes 1998, section 
        256I.05, subdivision 1d, the new 23-bed 
        group residential facility for women in 
        Ramsey county, with approval by the 
        county agency, may negotiate a 
        supplementary service rate in addition 
        to the board and lodging rate for 
        facilities licensed and registered by 
        the Minnesota department of health 
        under Minnesota Statutes, section 15.17 
        157.17.  The supplementary service rate 
        shall not exceed $564 per person per 
        month and the total rate may not exceed 
        $1,177 per person per month. 
        (b) Of the general fund appropriation, 
        $19,000 in fiscal year 2000 and $38,000 
        in fiscal year 2001 is to the 
        commissioner for the costs associated 
        with paragraph (a).  This appropriation 
        shall become part of the base for the 
        2002-2003 biennium. 
        (k) Chemical Dependency
        Entitlement Grants
        General              36,751,000    38,847,000
        (l) Chemical Dependency 
        Nonentitlement Grants
        General               6,778,000     6,328,000
        [CHEMICAL DEPENDENCY SERVICES.] Of this 
        appropriation, $450,000 in fiscal year 
        2000 is to the commissioner for 
        chemical dependency services to persons 
        who qualify under Minnesota Statutes, 
        section 254B.04, subdivision 1, 
        paragraph (b). 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 11.  Laws 1999, chapter 245, article 4, section 121, 
        is amended to read: 
           Sec. 121.  [EFFECTIVE DATE.] 
           (a) Sections 3, 4, 5, 45, 95, and 97, subdivision 3, 
        paragraph (d), are effective July 1, 2000. 
           (b) Section 56 is effective upon federal approval. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 
           Sec. 12.  [REPEALER.] 
           (a) Minnesota Statutes 1999 Supplement, section 144.396, 
        subdivision 13, is repealed.  
           (b) Laws 1997, chapter 203, article 7, section 27, is 
        repealed. 
           EFFECTIVE DATE:  This section is effective the day 
        following final enactment. 

                                   ARTICLE 12 
                                STATE GOVERNMENT 
                                 APPROPRIATIONS 
        Section 1.  [APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or any other fund named, to 
        the agencies and for the purposes specified in this article, to 
        be available for the fiscal years indicated for each purpose.  
        The figures "2000" and "2001" mean that the appropriation or 
        appropriations listed under them are available for the fiscal 
        year ending June 30, 2000, or June 30, 2001, respectively, and 
        if an earlier appropriation was made for that purpose for that 
        year, the appropriation in this article is added to it.  Where a 
        dollar amount appears in parentheses, it means a reduction of an 
        earlier appropriation for that purpose for that year. 
                                SUMMARY BY FUND 
                                                             BIENNIAL
                                  2000          2001           TOTAL
        General              $  2,994,000   $  (524,000)   $  2,470,000
        Special Revenue             -0-         249,000         249,000
        TOTAL                $  2,994,000   $  (275,000)   $  2,719,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2000         2001 
                                            $              $       
        Sec. 2.  SECRETARY OF STATE            4,000,000          -0-  
        To construct and maintain the Uniform 
        Commercial Code central filing system 
        required by Laws 2000, chapter 399, to 
        be available until June 30, 2001. 
        Sec. 3.  OFFICE OF STRATEGIC AND
        LONG-RANGE PLANNING                      200,000          -0-  
        For grants of $50,000 each to regional 
        development commissions or, in regions 
        not served by regional development 
        commissions, to regional organizations 
        selected by the director, to support 
        planning work on behalf of local units 
        of government.  A region that received 
        a grant from the appropriation in Laws 
        1999, chapter 250, article 1, section 
        11 or 14, for regional planning is not 
        eligible to receive a grant from this 
        appropriation.  This appropriation is 
        available until June 30, 2001.  The 
        planning work must include, but need 
        not be limited to:  
        (1) development of local zoning 
        ordinances; 
        (2) land use plans; 
        (3) community or economic development 
        plans; 
        (4) transportation and transit plans; 
        (5) solid waste management plans; 
        (6) wastewater management plans; 
        (7) workforce development plans; 
        (8) housing development plans or market 
        analysis; 
        (9) rural health service and senior 
        nutrition plans; or 
        (10) natural resources management plans.
        Sec. 4.  ADMINISTRATION              
        Subdivision 1.  Office of   
        Technology Long-Range Plan                               
        Notwithstanding Laws 1999, chapter 250, 
        article 1, section 12, subdivision 3, 
        the appropriation for the second year 
        is available for expenditure. 
        Subd. 2.  Metropolitan    
        Radio Board                                -0-          249,000
        This appropriation is from the special 
        revenue fund. 
        This appropriation is canceled if a law 
        is enacted authorizing a statewide 800 
        megahertz radio system. 
        Subd. 3.  Year 2000 Contingency Surplus                        
        Notwithstanding Laws 1999, chapter 250, 
        article 1, section 12, subdivision 4, 
        of the unexpended balance of the 
        appropriation to address year 2000 
        changes, $1,400,000 is reappropriated 
        to enable the electronic delivery of 
        government services and $600,000 is 
        added to the appropriation to the 
        commissioner of revenue for the income 
        tax reengineering initiative in Laws 
        1999, chapter 250, article 1, section 
        16, subdivision 2.  These 
        appropriations are available until June 
        30, 2003. 
        Subd. 4.  Data Practices Base Adjustment                       
        If H.F. No. 3501 is enacted by the 2000 
        legislature, the commissioner of 
        finance shall not treat any costs 
        imposed by it as a base adjustment to 
        the budget of the department of 
        administration for fiscal year 2002 or 
        2003.  
        Subd. 5.  Facilities Management            -0-        1,268,000
        To be added to the appropriation for 
        office space costs of the legislature 
        and veterans organizations, for 
        ceremonial space, and for statutorily 
        free space, in Laws 1999, chapter 250, 
        article 1, section 12, subdivision 5.  
        This is a one-time appropriation. 
        Sec. 5.  CAMPAIGN FINANCE AND
        DISCLOSURE BOARD                          38,000          -0-
        For legal costs for the board's defense 
        of a constitutionality challenge, to be 
        available until June 30, 2001. 
        Sec. 6.  EMPLOYEE RELATIONS               -0-          100,000
        To pay the costs of conducting the 
        postretirement and active employee 
        health care study and preparing the 
        report required by 2000 S.F. No. 2796, 
        article 5, section 1.  The retirement 
        funds participating in the study may 
        contribute a total of $100,000 
        additional money to help pay these 
        costs. 
        Sec. 7.  GAMBLING CONTROL
        BOARD                                     90,000        -0-
        For workers' compensation claims.  
        Money not expended in the first year is 
        available for expenditure in the second 
        year. 
        Sec. 8.  MINNEAPOLIS EMPLOYEES
        RETIREMENT FUND                        (1,334,000)   (1,892,000)
        This is a reduction in payments made to 
        the Minneapolis employees retirement 
        fund under Minnesota Statutes, section 
        422A.101, subdivision 3.  The reduction 
        for fiscal year 2002 is estimated to be 
        $1,892,000 and the reduction for fiscal 
        year 2003 is estimated to be $1,892,000.
           Sec. 9.  Minnesota Statutes 1999 Supplement, section 
        16A.103, subdivision 1, is amended to read: 
           Subdivision 1.  [STATE REVENUE AND EXPENDITURES.] In 
        February and November each year, the commissioner shall prepare 
        a forecast of state revenue and expenditures.  The November 
        forecast must be delivered to the legislature and governor no 
        later than the end of the first week of December.  The February 
        forecast must be delivered to the legislature and governor by 
        the end of February.  Forecasts must be delivered to the 
        legislature and governor on the same day.  If requested by the 
        legislative commission on planning and fiscal policy, delivery 
        to the legislature must include a presentation to the commission.
           Subd. 1a.  [FORECAST PARAMETERS.] The forecast must assume 
        the continuation of current laws and reasonable estimates of 
        projected growth in the national and state economies and 
        affected populations.  Revenue must be estimated for all sources 
        provided for in current law.  Expenditures must be estimated for 
        all obligations imposed by law and those projected to occur as a 
        result of inflation and variables outside the control of the 
        legislature.  
           Subd. 1b.  [FORECAST VARIABLE.] In determining the rate of 
        inflation, the application of inflation, the amount of state 
        bonding as it affects debt service, the calculation of 
        investment income, and the other variables to be included in the 
        expenditure part of the forecast, the commissioner must consult 
        with the chair chairs and lead minority members of the senate 
        state government finance committee, and the chair of the house 
        committee on ways and means committee, and house and 
        senate legislative fiscal staff.  This consultation must occur 
        at least three weeks before the forecast is to be released.  No 
        later than two weeks prior to the release of the forecast, the 
        commissioner must inform the chairs and lead minority members of 
        the senate state government finance committee and the house ways 
        and means committee, and legislative fiscal staff of any changes 
        in these variables from the previous forecast. 
           Subd. 1c.  [EXPENDITURE DATA.] State agencies must submit 
        any revisions in expenditure data the commissioner determines 
        necessary for the forecast to the commissioner at least four 
        weeks prior to the release of the forecast.  The information 
        submitted by state agencies and any modifications to that 
        information made by the commissioner must be made available to 
        legislative fiscal staff no later than three weeks prior to the 
        release of the forecast. 
           Subd. 1d.  [REVENUE DATA.] On a monthly basis, the 
        commissioner must provide legislative fiscal staff with an 
        update of the previous month's state revenues no later than 12 
        days after the end of that month. 
           Subd. 1e.  [ECONOMIC INFORMATION.] The commissioner must 
        review economic information including economic forecasts with 
        legislative fiscal staff no later than two weeks before the 
        forecast is released.  The commissioner must invite the chairs 
        and lead minority members of the senate state government finance 
        committee and the house ways and means committee, and 
        legislative fiscal staff to attend any meetings held with 
        outside economic advisors.  The commissioner must provide 
        legislative fiscal staff with monthly economic forecast 
        information received from outside sources. 
           Subd. 1f.  [PERSONAL INCOME.] In addition, the commissioner 
        shall forecast Minnesota personal income for each of the years 
        covered by the forecast and include these estimates in the 
        forecast documents. 
           Subd. 1g.  [PERIOD TO BE FORECAST.] A forecast prepared 
        during the first fiscal year of a biennium must cover that 
        biennium and the next biennium.  A forecast prepared during the 
        second fiscal year of a biennium must cover that biennium and 
        the next two bienniums. 
           Sec. 10.  Minnesota Statutes 1998, section 16A.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PART TWO:  DETAILED BUDGET.] (a) Part two of the 
        budget, the detailed budget estimates both of expenditures and 
        revenues, must contain any statements on the financial plan 
        which the governor believes desirable or which may be required 
        by the legislature.  The detailed estimates shall include the 
        governor's budget arranged in tabular form. 
           (b) The detailed estimates must include a separate line 
        listing the total number of professional or technical service 
        contracts and the total cost of those contracts for the prior 
        biennium and the projected number of professional or technical 
        service contracts and the projected costs of those contracts for 
        the current and upcoming biennium.  They must also include a 
        summary of the personnel employed by the agency, reflected as 
        full-time equivalent positions, and the number of professional 
        or technical service consultants for the current biennium. 
           (c) The detailed estimates for internal service funds must 
        include the number of full-time equivalents by program; detail 
        on any loans from the general fund, including dollar amounts by 
        program; proposed investments in technology or equipment of 
        $100,000 or more; an explanation of any operating losses or 
        increases in retained earnings; and a history of the rates that 
        have been charged, with an explanation of any rate changes and 
        the impact of the rate changes on affected agencies. 
           Sec. 11.  Minnesota Statutes 1998, section 16A.126, 
        subdivision 2, is amended to read: 
           Subd. 2.  [IMMEDIATE NEEDS.] To reduce reserves for 
        unforeseen needs, and so reduce these rates, the commissioner 
        may transfer money from the general fund to a revolving fund.  
        Before doing so, the commissioner must decide there is not 
        enough money in the revolving fund for an immediate, necessary 
        expenditure.  The amount necessary to make the transfer is 
        appropriated from the general fund to the commissioner of 
        finance.  The commissioner shall report the amount and purpose 
        of the transfer to the chair of the committee or division in the 
        senate and house of representatives with primary jurisdiction 
        over the budget of the department of finance. 
           Sec. 12.  Minnesota Statutes 1999 Supplement, section 
        16A.129, subdivision 3, is amended to read: 
           Subd. 3.  [CASH ADVANCES.] When the operations of any 
        nongeneral fund account would be impeded by projected cash 
        deficiencies resulting from delays in the receipt of grants, 
        dedicated income, or other similar receivables, and when the 
        deficiencies would be corrected within the budget period 
        involved, the commissioner of finance may use general fund cash 
        reserves to meet cash demands.  If funds are transferred from 
        the general fund to meet cash flow needs, the cash flow 
        transfers must be returned to the general fund as soon as 
        sufficient cash balances are available in the account to which 
        the transfer was made.  The fund to which general fund cash was 
        advanced must pay interest on the cash advance at a rate 
        comparable to the rate earned by the state on invested 
        treasurer's cash, as determined monthly by the commissioner.  An 
        amount necessary to pay the interest is appropriated from the 
        nongeneral fund to which the cash advance was made.  Any 
        interest earned on general fund cash flow transfers accrues to 
        the general fund and not to the accounts or funds to which the 
        transfer was made.  The commissioner may advance general fund 
        cash reserves to nongeneral fund accounts where the receipts 
        from other governmental units cannot be collected within the 
        budget period. 
           Sec. 13.  [16A.633] [CAPITAL FUNDING CONTINGENT ON 
        MAINTAINING DATA.] 
           Subdivision 1.  [STATE AGENCIES.] Each state agency shall 
        provide to the commissioner of administration the data necessary 
        for the commissioner to maintain the department's database on 
        the location, description, and condition of state-owned 
        facilities.  The data must be provided by September 1 each 
        year.  The commissioner of administration must maintain both the 
        current inventory data and historical data.  A state agency is 
        not eligible to receive capital funding unless the agency has 
        provided the data required. 
           Subd. 2.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 
        board of trustees of the Minnesota state colleges and 
        universities shall establish and maintain data on the location, 
        description, and condition of board-owned facilities that is 
        comparable with the database established by the department of 
        administration.  The data must be updated annually and the board 
        must maintain both current inventory data and historical data.  
        The board is not eligible to receive capital funding unless the 
        board has established and maintains the data required. 
           Subd. 3.  [UNIVERSITY OF MINNESOTA.] The board of regents 
        of the University of Minnesota is requested to establish and 
        maintain data on the location, description, and condition of 
        university-owned facilities that is comparable with the database 
        established by the department of administration.  The university 
        is requested to update the data annually and maintain both 
        current inventory data and historical data.  The board of 
        regents is not eligible to receive capital funding unless the 
        board has established and maintains the data required. 
           Sec. 14.  Minnesota Statutes 1998, section 16B.052, is 
        amended to read: 
           16B.052 [AUTHORITY TO TRANSFER FUNDS.] 
           The commissioner may, with the approval of the commissioner 
        of finance, transfer from an internal service or enterprise fund 
        account to another internal service or enterprise fund account, 
        any contributed capital appropriated by the legislature.  The 
        transfer may be made only to provide working capital or positive 
        cash flow in the account to which the money is transferred.  The 
        commissioner shall report the amount and purpose of the transfer 
        to the chair of the committee or division in the senate and 
        house of representatives with primary jurisdiction over the 
        budget of the department of administration.  The transfer must 
        be repaid within 18 months.  
           Sec. 15.  Minnesota Statutes 1998, section 16B.48, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REIMBURSEMENTS.] Except as specifically provided 
        otherwise by law, each agency shall reimburse intertechnologies 
        and general services revolving funds for the cost of all 
        services, supplies, materials, labor, and depreciation of 
        equipment, including reasonable overhead costs, which the 
        commissioner is authorized and directed to furnish an agency.  
        The cost of all publications or other materials produced by the 
        commissioner and financed from the general services revolving 
        fund must include reasonable overhead costs.  The commissioner 
        of administration shall report the rates to be charged for each 
        revolving fund no later than July 1 each year to the chair of 
        the committee or division in the senate and house of 
        representatives with primary jurisdiction over the budget of the 
        department of administration.  The commissioner of finance shall 
        make appropriate transfers to the revolving funds described in 
        this section when requested by the commissioner of 
        administration.  The commissioner of administration may make 
        allotments, encumbrances, and, with the approval of the 
        commissioner of finance, disbursements in anticipation of such 
        transfers.  In addition, the commissioner of administration, 
        with the approval of the commissioner of finance, may require an 
        agency to make advance payments to the revolving funds in this 
        section sufficient to cover the agency's estimated obligation 
        for a period of at least 60 days.  All reimbursements and other 
        money received by the commissioner of administration under this 
        section must be deposited in the appropriate revolving fund.  
        Any earnings remaining in the fund established to account for 
        the documents service prescribed by section 16B.51 at the end of 
        each fiscal year not otherwise needed for present or future 
        operations, as determined by the commissioners of administration 
        and finance, must be transferred to the general fund.  
           Sec. 16.  Minnesota Statutes 1998, section 16B.485, is 
        amended to read: 
           16B.485 [INTERFUND LOANS.] 
           The commissioner may, with the approval of the commissioner 
        of finance, make loans from an internal service or enterprise 
        fund to another internal service or enterprise fund, and the 
        amount necessary is appropriated from the fund that makes the 
        loan.  The commissioner shall report the amount and purpose of 
        the loan to the chair of the committee or division in the senate 
        and house of representatives with primary jurisdiction over the 
        budget of the department of administration.  The term of a loan 
        made under this section must be not more than 24 months. 
           Sec. 17.  Minnesota Statutes 1998, section 16E.04, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [RISK ASSESSMENT AND MITIGATION.] (a) A risk 
        assessment and risk mitigation plan are required for an 
        information systems development project estimated to cost more 
        than $1,000,000 that is undertaken by a state agency in the 
        executive or judicial branch or by a constitutional officer.  
        The commissioner of administration must contract with an entity 
        outside of state government to conduct the assessment and 
        prepare the mitigation plan for a project estimated to cost more 
        than $5,000,000.  The outside entity conducting the risk 
        assessment and preparing the mitigation plan must not have any 
        other direct or indirect financial interest in the project.  The 
        risk assessment and risk mitigation plan must provide for 
        periodic monitoring by the commissioner until the project is 
        completed. 
           (b) The risk assessment and risk mitigation plan must be 
        paid for with money appropriated for the information systems 
        development project.  No more than ten percent of the amount 
        anticipated to be spent on the project, other than the money 
        spent on the risk assessment and risk mitigation plan, may be 
        spent until the risk assessment and mitigation plan are reported 
        to the commissioner of administration and the commissioner has 
        approved the risk mitigation plan.  
           Sec. 18.  Minnesota Statutes 1998, section 422A.101, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STATE CONTRIBUTIONS.] (a) Subject to the 
        limitation set forth in paragraph (c), the state shall pay to 
        the Minneapolis employees retirement fund annually an amount 
        equal to the amount calculated under paragraph (b). 
           (b) The payment amount is an amount equal to the financial 
        requirements of the Minneapolis employees retirement fund 
        reported in the actuarial valuation of the fund prepared by the 
        commission-retained actuary pursuant to section 356.215 for the 
        most recent year but based on a target date for full 
        amortization of the unfunded actuarial accrued liabilities by 
        June 30, 2020, less the amount of employee contributions 
        required pursuant to section 422A.10, and the amount of employer 
        contributions required pursuant to subdivisions 1a, 2, and 2a.  
        Payments shall be made in four equal installments, occurring on 
        March 15, July 15, September 15, and November 15 annually.  
           (c) The annual state contribution under this subdivision 
        may not exceed $10,455,000 through fiscal year 1998 and 
        $9,000,000 beginning in fiscal year 1999, plus the cost of the 
        annual supplemental benefit determined under section 356.865. 
           (d) If the amount determined under paragraph (b) exceeds 
        $11,910,000, the excess must be allocated to and paid to the 
        fund by the employers identified in subdivisions 1a and 2, other 
        than units of metropolitan government.  Each employer's share of 
        the excess is proportionate to the employer's share of the 
        fund's unfunded actuarial accrued liability as disclosed in the 
        annual actuarial valuation prepared by the actuary retained by 
        the legislative commission on pensions and retirement compared 
        to the total unfunded actuarial accrued liability attributed to 
        all employers identified in subdivisions 1a and 2, other than 
        units of metropolitan government.  Payments must be made in 
        equal installments as set forth in paragraph (b). 
           Sec. 19.  Laws 1999, chapter 250, article 1, section 11, is 
        amended to read: 
        Sec. 11.  OFFICE OF STRATEGIC 
        AND LONG-RANGE PLANNING                6,891,000      4,417,000
        $100,000 the first year is to integrate 
        the office's information technology and 
        is available until June 30, 2003.  The 
        director shall report on the progress 
        of the unit to the chairs of the 
        legislative committees responsible for 
        this budget item by January 15, 2000, 
        2001, and 2002. 
        $1,600,000 the first year is for a 
        generic environmental impact statement 
        on animal agriculture. 
        $200,000 the first year is to perform 
        program evaluations of agencies in the 
        executive branch. 
        The program evaluation division will 
        report to the legislature by December 
        1, 2000, ways to reduce state 
        government expenditures by five to ten 
        percent. 
        $100,000 the first year is to provide 
        administrative support to 
        community-based planning efforts. 
        $150,000 the first year is for a grant 
        of $50,000 to the southwest regional 
        development commission for the 
        continuation of the pilot program and 
        two additional grants of $50,000 each 
        to regional development commissions or, 
        in regions not served by regional 
        development commissions, to regional 
        organizations selected by the director 
        of strategic and long-range planning, 
        to support planning work on behalf of 
        local units of government.  The 
        planning work shall include, but need 
        not be limited to:  
        (1) development of local zoning 
        ordinances; 
        (2) land use plans; 
        (3) community or economic development 
        plans; 
        (4) transportation and transit plans; 
        (5) solid waste management plans; 
        (6) wastewater management plans; 
        (7) workforce development plans; 
        (8) housing development plans and/or 
        market analysis; 
        (9) rural health service plans; 
        (10) natural resources management 
        plans; or 
        (11) development of geographical 
        information systems database to serve a 
        region's needs, including hardware and 
        software purchases and related labor 
        costs. 
        $200,000 the first year is to prepare 
        the generic environmental impact 
        statement on urban development required 
        by section 108.  Any unencumbered 
        balance remaining in the first year 
        does not cancel and is available for 
        the second year of the biennium. 
        $24,000 the first year is for the 
        southwest Minnesota wind monitoring 
        project. 
        $100,000 the first year is for a grant 
        to the city of Mankato to complete the 
        Mankato area growth management and 
        planning study, phase 2.  The 
        appropriation is available until June 
        30, 2002.  The appropriation must be 
        matched by an in-kind donation of 
        $100,000 in administrative, technical, 
        and higher educational internship 
        support and supervision.  The value of 
        the in-kind donations must be 
        determined by the commissioner of 
        finance. 
        The city shall serve as fiscal agent to 
        complete the study under the 1997 
        regional planning joint powers 
        agreement among the cities of Mankato, 
        North Mankato, and Eagle Lake; the 
        counties of Nicollet and Blue Earth; 
        and the towns of Mankato, South Bend, 
        Lime, Decoria, and Belgrade, without 
        limitation on the rights of the parties 
        to that agreement to add or remove 
        members.  The study is intended as an 
        alternative to community-based 
        planning.  The study is intended to 
        develop information and analysis to 
        provide guidance on such issues as: 
        (1) the development of joint planning 
        agreements to implement a unified 
        growth management strategy; 
        (2) joint service ventures, such as 
        planning or zoning administration in 
        urban fringe areas; 
        (3) orderly growth and annexation 
        agreements between cities and 
        townships; 
        (4) feedlot regulations in urban fringe 
        areas and future growth corridors; 
        (5) service strategies for unsewered 
        subdivisions; 
        (6) other joint ventures for city, 
        county, and township service delivery 
        in fringe areas; 
        (7) feasibility of a rural township 
        taxing district; and 
        (8) alternatives to the current 
        community-based planning legislation 
        that would add flexibility and improve 
        the planning process. 
        The city of Mankato shall report the 
        results of the study to the legislature 
        by January 15, 2002. 
           Sec. 20.  Laws 1999, chapter 250, article 1, section 12, 
        subdivision 8, is amended to read: 
        Subd. 8.  Public Broadcasting 
             3,443,000      3,330,000
        $1,450,000 the first year and 
        $1,450,000 the second year are for 
        matching grants for public television.  
        $600,000 the first year and $600,000 
        the second year are for public 
        television equipment needs.  Equipment 
        grant allocations shall be made after 
        considering the recommendations of the 
        Minnesota public television association.
        $441,000 the first year and $441,000 
        the second year are for grants and for 
        contracts with the senate and house of 
        representatives for public information 
        television, Internet, intranet, and 
        other transmission of legislative 
        activities.  At least one-half must go 
        for programming to be broadcast in 
        transmitted to rural Minnesota. 
        $25,000 the first year and $25,000 the 
        second year are for grants to the Twin 
        Cities regional cable channel. 
        $320,000 the first year and $320,000 
        the second year are for community 
        service grants to public educational 
        radio stations, which must be allocated 
        after considering the recommendations 
        of the Association of Minnesota Public 
        Educational Radio Stations under 
        Minnesota Statutes, section 129D.14.  
        Of this appropriation, $30,000 the 
        first year and $30,000 the second year 
        are for station WTIP-FM in Grand 
        Marais, which need not meet the 
        requirements of Minnesota Statutes, 
        section 129D.14, until July 1, 2002.  
        $494,000 the first year and $494,000 
        the second year are for equipment 
        grants to public radio stations.  These 
        grants must be allocated after 
        considering the recommendations of the 
        Association of Minnesota Public 
        Educational Radio Stations and 
        Minnesota Public Radio, Inc. 
        If an appropriation for either year for 
        grants to public television or radio 
        stations is not sufficient, the 
        appropriation for the other year is 
        available for it. 
           Sec. 21.  Laws 1999, chapter 250, article 1, section 14, 
        subdivision 3, is amended to read: 
        Subd. 3.  Information and 
        Management Services 
            16,643,000      9,932,000
        $100,000 the first year is for a grant 
        to the city of Mankato to complete the 
        Mankato area growth management and 
        planning study, phase 2.  The 
        appropriation is available until June 
        30, 2002.  The appropriation must be 
        matched by an in-kind donation of 
        $100,000 in administrative, technical, 
        and higher educational internship 
        support and supervision.  The value of 
        the in-kind donations must be 
        determined by the commissioner of 
        finance. 
        The city shall serve as fiscal agent to 
        complete the study under the 1997 
        regional planning joint powers 
        agreement among the cities of Mankato, 
        North Mankato, and Eagle Lake; the 
        counties of Nicollet and Blue Earth; 
        and the towns of Mankato, South Bend, 
        Lime, Decoria, and Belgrade, without 
        limitation on the rights of the parties 
        to that agreement to add or remove 
        members.  The study is intended as an 
        alternative to community-based 
        planning.  The study is intended to 
        develop information and analysis to 
        provide guidance on such issues as: 
        (1) the development of joint planning 
        agreements to implement a unified 
        growth management strategy; 
        (2) joint service ventures, such as 
        planning or zoning administration in 
        urban fringe areas; 
        (3) orderly growth and annexation 
        agreements between cities and 
        townships; 
        (4) feedlot regulations in urban fringe 
        areas and future growth corridors; 
        (5) service strategies for unsewered 
        subdivisions; 
        (6) other joint ventures for city, 
        county, and township service delivery 
        in fringe areas; 
        (7) feasibility of a rural township 
        taxing district; and 
        (8) alternatives to the current 
        community-based planning legislation 
        that would add flexibility and improve 
        the planning process. 
        The city of Mankato shall report the 
        results of the study to the legislature 
        by January 15, 2002. 
        $6,839,000 the first year is a one-time 
        appropriation to upgrade the human 
        resources and payroll system and is 
        available until June 30, 2003.  The 
        commissioner shall report on the 
        progress of this project to the chairs 
        of the legislative committees 
        responsible for this budget item by 
        January 15, 2000, 2001, and 2002. 
        The commissioner of finance shall work 
        with the commissioners of employee 
        relations and administration and shall 
        develop as part of the human resource 
        and payroll systems upgrade, and submit 
        to the chairs of the senate 
        governmental operations budget division 
        and the house state government finance 
        committee by January 15, 2000, a 
        long-range plan for the statewide 
        business systems:  human resources, 
        payroll, accounting, and procurement.  
        The plan must detail each system's 
        original development costs, its 
        expected life cycle, the estimated cost 
        of upgrading software to newer versions 
        during its life cycle, its operating 
        costs to date, and the factors that are 
        expected to drive future operating 
        costs within the departments of 
        finance, administration, and employee 
        relations.  The plan must also include 
        an evaluation of and recommendations on 
        whether, for the statewide business 
        systems, the state should use software 
        that is developed and maintained in 
        house; proprietary software, either 
        modified or unmodified; a private 
        vendor; or a particular combination of 
        these options. 
        The commissioner of finance, in 
        consultation with senate and house 
        fiscal staff and the commissioner of 
        administration, shall develop 
        recommendations for inclusion in the 
        governor's fiscal year 2002-2003 budget 
        document on the presentation of 
        internal service funds.  The 
        commissioner of finance shall submit 
        the recommendations to the chairs of 
        the senate governmental operations 
        budget division and the house state 
        government finance committee by January 
        15, 2000. 
        The department shall prepare a separate 
        budget book for the biennium beginning 
        July 1, 2001, containing all of the 
        administration's technology 
        initiatives.  The book must also 
        include a complete inventory of 
        state-owned and leased technology, 
        along with a projected replacement 
        schedule.  The inventory must include 
        information on how the technology fits 
        into the state's master plan. 
           Sec. 22.  Laws 1999, chapter 250, article 1, section 18, is 
        amended to read: 
        Sec. 18.  VETERANS AFFAIRS             5,885,000      4,369,000
        $1,544,000 the first year and 
        $1,544,000 the second year are for 
        emergency financial and medical needs 
        of veterans.  If the appropriation for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it.  
        $12,000 the first year and $13,000 the 
        second year are one-time funding to 
        provide grants to local veterans' 
        organizations that provide 
        transportation services for veterans to 
        veterans administration medical 
        facilities. 
        The commissioner of veterans affairs, 
        in cooperation with the board of 
        directors of the Minnesota veterans 
        homes and the United States Veterans 
        Administration, shall study the 
        feasibility and desirability of 
        supplementing the missions of the 
        veterans homes and the Veterans 
        Administration hospitals in Minnesota 
        by entering into agreements with health 
        care providers throughout the state to 
        provide free or reduced-cost 
        comprehensive health care to veterans 
        close to their places of residence as a 
        supplement to private health 
        insurance.  The commissioner shall 
        report the results of the study and any 
        recommendations to the legislature by 
        January 15, 2000. 
        With the approval of the commissioner 
        of finance, the commissioner of 
        veterans affairs may transfer the 
        unencumbered balance from the veterans 
        relief program to other department 
        programs during the fiscal year.  
        Before the transfer, the commissioner 
        of veterans affairs shall explain why 
        the unencumbered balance exists.  The 
        amounts transferred must be identified 
        to the chairs of the senate 
        governmental operations budget 
        committee and the house state 
        government finance committee. 
        $275,000 the first year and $275,000 
        the second year are for a grant to the 
        Vinland National Center. 
        $1,485,000 the first year is to make 
        bonus payments authorized under 
        Minnesota Statutes, section 197.79.  
        The appropriation may not be used for 
        administrative purposes.  The 
        appropriation does not expire until the 
        commissioner acts on all applications 
        submitted under Minnesota Statutes, 
        section 197.79. 
        $105,000 the first year is to 
        administer the bonus program 
        established under Minnesota Statutes, 
        section 197.79.  The appropriation does 
        not expire until the commissioner acts 
        on all the applications submitted under 
        Minnesota Statutes, section 197.79. 
        $233,000 the first year and $235,000 
        the second year are for grants to 
        county veterans offices for training of 
        county veterans service officers to 
        enhance their effectiveness. 
           Sec. 23.  [CLARIFICATION; EFFECT ON REPEAL.] 
           Laws 1999, chapter 250, article 3, does not repeal rules or 
        fees in effect on the day before the effective date of Laws 
        1999, chapter 250, article 3. 
           Sec. 24.  [BASE ADJUSTMENTS PROHIBITED.] 
           If a capital project authorized by the 2000 legislature 
        causes a change in operating costs for a state agency, the 
        commissioner of finance shall not treat that change as a base 
        adjustment in the agency's budget for fiscal years 2002 and 2003.
           Sec. 25.  [REPEALER.] 
           Laws 1999, chapter 250, article 1, section 15, subdivision 
        4, is repealed. 
           Sec. 26.  [EFFECTIVE DATE.] 
           Except as otherwise provided in this article, this article 
        is effective the day following final enactment.  Section 13 is 
        effective June 30, 2001.  Section 17 is effective the day 
        following final enactment and applies to information systems 
        development projects that have not progressed beyond initial 
        planning and assessment before its effective date. 

                                   ARTICLE 13 
                   MINNESOTA COMPREHENSIVE HEALTH ASSOCIATION 
           Section 1.  [MINNESOTA WORKERS' COMPENSATION ASSIGNED RISK 
        PLAN SURPLUS UTILIZATION.] 
           On January 15, 2001, the commissioner of finance shall 
        transfer $15,000,000 in assets of the assigned risk plan to the 
        general fund and $15,000,000 is appropriated from the general 
        fund to the commissioner of commerce to be paid to the Minnesota 
        comprehensive health association for the exclusive purpose of 
        reducing the association's operating deficit assessment for 
        calendar year 2001. 
           Presented to the governor May 11, 2000 
           Signed by the governor May 15, 2000, 6:50 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569