1.1                          A bill for an act 
  1.2             relating to the environment; regulating packaging; 
  1.3             setting mandatory recycled content for certain 
  1.4             products and packaging; regulating transport 
  1.5             packaging; regulating disposable packaging; requiring 
  1.6             use of reusable packaging for certain percentages of 
  1.7             beverages sold or, in the alternative, refundable 
  1.8             recycling deposits on nonreusable beverage packaging; 
  1.9             requiring a wood waste and wood products residue 
  1.10            marketing plan; providing civil and administrative 
  1.11            penalties; amending Minnesota Statutes 1998, sections 
  1.12            16B.122, subdivision 1, and by adding a subdivision; 
  1.13            and 297A.01, subdivision 3; proposing coding for new 
  1.14            law in Minnesota Statutes, chapters 16B; 115A; 116F; 
  1.15            and 325E; repealing Minnesota Statutes 1998, sections 
  1.16            116F.01; 116F.02; 116F.05; 116F.06; and 116F.08. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18                             ARTICLE 1
  1.19     Section 1.  [115A.561] [RECYCLED CONTENT IN CERTAIN 
  1.20  PRODUCTS AND PACKAGING.] 
  1.21     Subdivision 1.  [MINIMUM RECYCLED CONTENT.] (a) Newsprint 
  1.22  that is distributed for sale to or use by consumers in this 
  1.23  state must contain a minimum percentage of postconsumer material 
  1.24  of 25 percent by January 1, 2001, and 50 percent by January 1, 
  1.25  2005, unless the newsprint is consumed by a printer who prints 
  1.26  less than 10,000 copies each month of all publications printed 
  1.27  by that printer on newsprint, in which case, the newsprint must 
  1.28  contain a minimum percentage of postconsumer material of 15 
  1.29  percent by January 1, 2001, and 30 percent by January 1, 2005. 
  1.30     (b) Glass packaging that is distributed for sale or use, 
  1.31  including sale to or use by consumers of products contained in 
  2.1   the glass packaging who reside in this state, must contain a 
  2.2   minimum percentage of postconsumer material of 25 percent by 
  2.3   January 1, 2001, and 50 percent by January 1, 2005. 
  2.4      (c) A rigid plastic container that is distributed for sale 
  2.5   or use, including sale to or use by a consumer of a product 
  2.6   contained in the container who resides in this state, must 
  2.7   contain a minimum of ten percent postconsumer material by 
  2.8   January 1, 2001, and 25 percent by January 1, 2005.  For the 
  2.9   purposes of this paragraph, "rigid plastic container" means a 
  2.10  formed or molded container composed predominantly of plastic 
  2.11  resin and having a relatively inflexible finite shape or form 
  2.12  intended primarily as a single-service container with a capacity 
  2.13  of eight ounces or more, but less than five gallons. 
  2.14     (d) Paperboard packaging, excluding corrugated paperboard 
  2.15  packaging, that is distributed for sale or use, including sale 
  2.16  to or use by a consumer of a product contained in the packaging 
  2.17  who resides in this state, must contain a minimum percentage of 
  2.18  postconsumer material of 25 percent by January 1, 2001, and 50 
  2.19  percent by January 1, 2005. 
  2.20     Subd. 2.  [EXEMPTIONS.] A product or package is exempt from 
  2.21  the postconsumer material requirement of subdivision 1 if the 
  2.22  product or package cannot comply because of other direct federal 
  2.23  or state requirements, including those for packaging food, 
  2.24  beverages, drugs, medical supplies, medical devices, or cosmetic 
  2.25  products under the federal Food, Drug, and Cosmetics Act. 
  2.26     Subd. 3.  [EXCLUSIONS.] (a) The manufacturer or packager of 
  2.27  a product or package may apply to the commissioner for exclusion 
  2.28  from the requirements of subdivision 1 if: 
  2.29     (1) the manufacturer or packager is unable to obtain a 
  2.30  sufficient supply of postconsumer material to meet those 
  2.31  requirements and cannot reasonably manufacture or use an 
  2.32  alternative product or material that does comply; and 
  2.33     (2) the manufacturer, packager, or another person has 
  2.34  sought approval by the federal Food and Drug Administration of 
  2.35  packaging that does comply, has received a letter of objection 
  2.36  or denial of approval from the administration, and the 
  3.1   manufacturer or packager has no reasonable access to alternative 
  3.2   packaging that does comply. 
  3.3      (b) The commissioner shall develop and distribute, on 
  3.4   request, an application form for exclusions allowed under this 
  3.5   subdivision.  An application must include documentation 
  3.6   supporting the grounds for the exclusion and a certification, 
  3.7   signed by an officer of the company seeking the exclusion, of 
  3.8   the veracity of the information in the application.  An 
  3.9   exclusion is effective 60 days after the commissioner receives 
  3.10  the application unless the commissioner denies the exclusion 
  3.11  within that time.  A denial must be in writing, mailed within 60 
  3.12  days of receipt of the application, and contain reasons for the 
  3.13  denial.  The commissioner may deny an application for exclusion 
  3.14  only if: 
  3.15     (1) the application or accompanying documentation is 
  3.16  insufficient to show grounds for an exclusion; or 
  3.17     (2) other manufacturers or packagers of similar items who 
  3.18  are similarly situated to the applicant do comply with the 
  3.19  requirements. 
  3.20     (c) An exclusion authorized under paragraph (a), clause 
  3.21  (1), expires one year after the date it takes effect.  An 
  3.22  exclusion authorized under paragraph (a), clause (2), expires 
  3.23  three years after the date it takes effect. 
  3.24     Subd. 4.  [RECYCLED CONTENT; STUDY AND RECOMMENDATIONS.] (a)
  3.25  The office of environmental assistance shall, after consultation 
  3.26  with the commissioner, manufacturers, packagers, recyclers, 
  3.27  public and private solid waste managers, environmental groups, 
  3.28  and other interested persons, determine and recommend to the 
  3.29  legislature minimum standards for postconsumer material content 
  3.30  in the following materials: 
  3.31     (1) paper, classified by grade and application; 
  3.32     (2) plastic packaging not governed by subdivision 1, 
  3.33  classified by resin type or application or a combination of 
  3.34  resin types and applications; and 
  3.35     (3) other packaging materials, classified by constituent 
  3.36  materials and applications. 
  4.1      (b) In determining appropriate standards, the director 
  4.2   shall study the effects of minimum recycled content requirements 
  4.3   in other states and nations, the extent to which the state has 
  4.4   access to products and packaging containing a minimum of 25 
  4.5   percent postconsumer material under existing purchasing 
  4.6   constraints, available and developing technologies to produce 
  4.7   acceptable materials with postconsumer material content, and 
  4.8   direct and indirect costs of postconsumer material content in 
  4.9   relation to direct and indirect costs of virgin materials.  The 
  4.10  director shall recommend minimum standards sufficient to 
  4.11  significantly increase market demand for recyclable materials 
  4.12  that are technologically and economically feasible and prudent. 
  4.13     (c) The director shall also study the minimum standards 
  4.14  established in subdivision 1 that take effect in 2001 and 2005 
  4.15  and shall recommend either that the standards remain unchanged, 
  4.16  be further studied, or be reduced, increased, or repealed as 
  4.17  appropriate to each standard. 
  4.18     (d) The director shall make initial recommendations to the 
  4.19  legislature under this subdivision by January 1, 2000, and 
  4.20  thereafter at intervals to be determined by the director as 
  4.21  necessary to implement reasonable postconsumer material content 
  4.22  standards for products and packaging. 
  4.23     Subd. 5.  [ENFORCEMENT; CIVIL AND ADMINISTRATIVE 
  4.24  PENALTIES.] (a) A person who violates subdivision 1 is subject 
  4.25  to a minimum civil or administrative penalty of $100 per item 
  4.26  that is distributed in the state in violation of subdivision 1. 
  4.27     (b) A person who supplies false information in an 
  4.28  application or accompanying documentation for an exclusion from 
  4.29  the requirements of subdivision 1 is subject to a minimum civil 
  4.30  or administrative penalty of $5,000. 
  4.31     (c) If the commissioner determines that a product or type 
  4.32  of packaging subject to an exclusion that has taken effect does 
  4.33  not qualify for the exclusion under the criteria in subdivision 
  4.34  3 and that the application and accompanying documentation for 
  4.35  the exclusion did not contain false information, the 
  4.36  commissioner shall, under section 116.072, order the applicant 
  5.1   to comply with the requirements of subdivision 1 at the earliest 
  5.2   of the expiration date for the exclusion or one year after 
  5.3   issuance of the compliance order and impose an administrative 
  5.4   penalty in an amount to be determined by the commissioner.  The 
  5.5   administrative penalty must be forgiven if the applicant for the 
  5.6   exclusion complies with the commissioner's order. 
  5.7      Sec. 2.  [116F.10] [DEFINITIONS.] 
  5.8      Unless otherwise provided, the definitions in section 
  5.9   115A.03 apply to this chapter. 
  5.10     Sec. 3.  [116F.12] [TRANSPORT PACKAGING.] 
  5.11     Subdivision 1.  [DEFINITION.] "Transport packaging" means 
  5.12  packaging as defined in section 115A.03, subdivision 22b, that 
  5.13  is used primarily for transportation of products prior to final 
  5.14  sale or delivery, whichever occurs later, of the products to 
  5.15  their ultimate consumers.  Transport packaging includes, but is 
  5.16  not limited to, crates, barrels, boxes, pallets, and packing 
  5.17  materials that are or may be removed prior to final sale or 
  5.18  delivery of a product to a consumer. 
  5.19     Subd. 2.  [PROHIBITIONS.] (a) Beginning January 1, 2001, 
  5.20  for waste material generated in the metropolitan area and 
  5.21  beginning January 1, 2002, for waste material generated in the 
  5.22  nonmetropolitan area, a person may not place transport packaging 
  5.23  composed of wood or corrugated paper in:  
  5.24     (1) mixed municipal solid waste or construction debris; 
  5.25     (2) a resource recovery facility other than for reuse or 
  5.26  recycling; or 
  5.27     (3) a disposal facility.  
  5.28     (b) Beginning January 1, 2002, for waste material generated 
  5.29  in the metropolitan area and beginning January 1, 2003, for 
  5.30  waste material generated in the nonmetropolitan area, a person 
  5.31  may not place transport packaging composed of plastic stretch 
  5.32  wrap in:  
  5.33     (1) mixed municipal solid waste or construction debris; 
  5.34     (2) a resource recovery facility other than for reuse or 
  5.35  recycling; or 
  5.36     (3) a disposal facility.  
  6.1      (c) Beginning January 1, 2003, for waste material generated 
  6.2   in the metropolitan area and beginning January 1, 2004, for 
  6.3   waste material generated in the nonmetropolitan area, a person 
  6.4   may not place any other transport packaging not governed by 
  6.5   paragraphs (a) and (b) in:  
  6.6      (1) mixed municipal solid waste or construction debris; 
  6.7      (2) a resource recovery facility other than for reuse or 
  6.8   recycling; or 
  6.9      (3) a disposal facility.  
  6.10     (d) The commissioner may allow an exception to paragraph 
  6.11  (a) or (c) for a composting facility and for waste delivered to 
  6.12  the facility if the commissioner determines that reuse of the 
  6.13  material is impractical, recycling of the material is 
  6.14  unavailable at a cost reasonably similar to the cost of 
  6.15  composting, and composting the material will have no adverse 
  6.16  impact on existing recycling programs and opportunities or on 
  6.17  human health and the environment.  
  6.18     (e) The commissioner may allow an exception from paragraph 
  6.19  (c) for a specific material for which a manufacturer, packager, 
  6.20  wholesaler, or retailer shows that:  
  6.21     (1) it is not feasible or prudent to establish a reuse or 
  6.22  recycling system; 
  6.23     (2) there is no reasonable substitute for which a reuse or 
  6.24  recycling system can be established; and 
  6.25     (3) the person requesting the exception submits a plan for 
  6.26  replacing the material or for establishing a reuse or recycling 
  6.27  system within three years of submitting the request.  
  6.28     (f) For the purposes of paragraph (e), failure of 
  6.29  manufacturers, packagers, wholesalers, retailers, or political 
  6.30  subdivisions to establish or to fund the establishment of reuse 
  6.31  or recycling systems is insufficient to show that a reuse or 
  6.32  recycling system is not feasible or prudent.  
  6.33     Subd. 3.  [ENFORCEMENT.] For violation of subdivision 2, 
  6.34  the commissioner shall impose a forgivable administrative 
  6.35  penalty of not less than $500 for the first violation and $1,000 
  6.36  for each subsequent violation, unless the violator is a 
  7.1   manufacturer of transport packaging or a packager who uses 
  7.2   transport packaging, in which case the minimum penalty is $2,000 
  7.3   for the first violation and $5,000 for each subsequent violation.
  7.4      An administrative penalty imposed for a second or 
  7.5   subsequent violation of subdivision 2 is not forgivable. 
  7.6      Sec. 4.  [116F.13] [DISCARDABLE PACKAGING; REQUIREMENTS.] 
  7.7      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  7.8   section: 
  7.9      (1) "discardable packaging" means packaging that is not 
  7.10  transport packaging as defined in section 116F.12 or reusable 
  7.11  packaging; 
  7.12     (2) "recyclable packaging" means packaging made of a 
  7.13  material that is collected either: 
  7.14     (i) through recycling collection programs available to 75 
  7.15  percent of the state's residents; or 
  7.16     (ii) by a collection program established by a manufacturer 
  7.17  or distributor of the product contained in the packaging that is 
  7.18  designed to collect and recycle a minimum of 60 percent of the 
  7.19  packaging; and 
  7.20     (3) "reusable packaging" means packaging that is designed 
  7.21  to be reused for its original purpose at least five times and 
  7.22  for which systems for return and reuse are in operation 
  7.23  statewide. 
  7.24     Subd. 2.  [REQUIREMENTS; EXEMPTION.] (a) For a consumer 
  7.25  product sold or otherwise distributed for use in this state, the 
  7.26  person who packages the product shall: 
  7.27     (1) use the minimal amount of packaging necessary to 
  7.28  protect the product; 
  7.29     (2) use recyclable packaging; 
  7.30     (3) use packaging that, all layers taken together, contains 
  7.31  at least 25 percent postconsumer recycled material; and 
  7.32     (4) label the outermost layer of packaging to clearly 
  7.33  inform the consumer prior to purchase of the amount of 
  7.34  postconsumer recycled material content in all of the packaging 
  7.35  for the product as a whole and that the packaging is recyclable. 
  7.36     (b) Packaging is exempt from the requirements of paragraph 
  8.1   (a), clauses (2) and (3), only if: 
  8.2      (1) it cannot comply because of other direct federal or 
  8.3   state requirements, including requirements for packaging food, 
  8.4   beverages, drugs, medical supplies, medical devices, or cosmetic 
  8.5   products under the federal Food, Drug, and Cosmetics Act; 
  8.6      (2) it cannot comply because of a certifiable lack of 
  8.7   sufficient quantities of postconsumer material in the market; or 
  8.8      (3) the manufacturer, packager, or another person has 
  8.9   sought approval by the federal Food and Drug Administration of 
  8.10  packaging that does comply, has received a letter of objection 
  8.11  or denial of approval from the administration, and the 
  8.12  manufacturer or packager has no reasonable access to alternative 
  8.13  packaging that does comply. 
  8.14     Subd. 3.  [REPORT; RECOMMENDATION.] As part of the report 
  8.15  that is due by July 1, 2001, on whether the 25 percent packaging 
  8.16  reduction goal has been met under section 115A.5501, subdivision 
  8.17  4, the director shall also report on the extent to which 
  8.18  packagers have complied with subdivision 2 as of December 31, 
  8.19  2000. 
  8.20     If the director finds, based on a statistically reliable 
  8.21  sampling of retail outlets in the state, that less than 75 
  8.22  percent of the discardable packaging associated with consumer 
  8.23  products complies with subdivision 2 or that the 25 percent 
  8.24  packaging reduction goal in section 115A.5501 has not been 
  8.25  achieved, the director, after consultation with interested 
  8.26  persons, including, but not limited to, packagers, wholesalers, 
  8.27  retailers, consumers, and public interest groups, shall 
  8.28  recommend how to best achieve significant reduction in the use 
  8.29  of discardable packaging and in the presence of discardable 
  8.30  packaging in solid waste.  The director shall consider all means 
  8.31  of achieving reduction in both the quantity and toxicity of 
  8.32  discardable packaging in use and in the solid waste stream, 
  8.33  including requirements for and/or prohibitions on the use of 
  8.34  certain materials in the manufacture of disposable packaging; 
  8.35  prohibitions on the use of discardable packaging when 
  8.36  appropriate; requirements for manufacturers, wholesalers, and 
  9.1   retailers to collect discardable packaging; advance disposal or 
  9.2   recycling fees on discardable packaging; mandatory recycling of 
  9.3   discardable packaging; and any other means of achieving 
  9.4   reduction proposed by any interested person.  At a minimum, the 
  9.5   recommendations must include:  
  9.6      (1) how, by 2005, to reduce by at least 50 percent over 
  9.7   1998 levels the amount of discardable packaging in solid waste 
  9.8   delivered to solid waste composting, incineration, 
  9.9   refuse-derived fuel, and disposal facilities; 
  9.10     (2) how to reduce, to the greatest extent technically 
  9.11  feasible, the presence of any materials or combinations of 
  9.12  materials in discardable packaging that are toxic, may combine 
  9.13  with other materials during a waste management process to become 
  9.14  toxic, or make the packaging impossible, difficult, or costly to 
  9.15  recycle; and 
  9.16     (3) how to ensure that any additional costs incurred to 
  9.17  redesign packaging, recycle increased quantities or types of 
  9.18  materials, and administer any necessary government programs to 
  9.19  oversee production, use, sale, and management of discardable 
  9.20  packaging will be recovered from the manufacture, use, and sale 
  9.21  of the packaging, and not from state or local revenue or from 
  9.22  the solid waste management system itself.  
  9.23     Sec. 5.  [325E.043] [PLASTICS; LABEL TO STATE PERCENT OF 
  9.24  PRICE ATTRIBUTABLE TO PACKAGING.] 
  9.25     For all goods produced for retail sale and packaged with 
  9.26  plastic material, the label on the product must state the 
  9.27  percentage of the amount of the manufacturer's suggested retail 
  9.28  price that is attributable to the cost of the packaging of the 
  9.29  product. 
  9.30     Sec. 6.  [WOOD WASTE AND WOOD PRODUCTS RESIDUE; MARKETING 
  9.31  PLAN.] 
  9.32     By January 1, 2001, the director of the office of 
  9.33  environmental assistance, in consultation with wood products 
  9.34  manufacturers, users of transport packaging made of wood or wood 
  9.35  products, consumers including reusers and recyclers of wood 
  9.36  waste and wood products residue, the commissioners of the 
 10.1   departments of trade and economic development, public service, 
 10.2   and natural resources, the Minnesota technical assistance 
 10.3   program, the University of Minnesota extension service, and 
 10.4   other interested persons, shall develop a statewide wood waste 
 10.5   and wood products residue marketing plan.  The plan must: 
 10.6      (1) identify generators of wood waste and wood products 
 10.7   residue; 
 10.8      (2) identify existing and potential markets for wood waste 
 10.9   and wood products residue; 
 10.10     (3) provide guidelines for the collection, transportation, 
 10.11  storage, processing, and reuse or recycling of wood waste and 
 10.12  wood products residue; and 
 10.13     (4) recommend to the legislature any legislation necessary 
 10.14  to encourage development of greater capacity in the state to 
 10.15  reuse and recycle wood waste and wood products residue to ensure 
 10.16  that those items are managed to maximize their environmental and 
 10.17  economic benefits to society. 
 10.18     The director shall develop the marketing plan in light of 
 10.19  the prohibition on placing transport packaging made of wood or 
 10.20  wood products in solid waste or in a solid waste facility under 
 10.21  Minnesota Statutes, section 116F.12.  The director may include 
 10.22  in the marketing plan a recommendation to adjust that 
 10.23  prohibition if necessary to implement a sound marketing system 
 10.24  for wood waste and wood products residue. 
 10.25     Sec. 7.  [REPEALER.] 
 10.26     Minnesota Statutes 1998, sections 116F.01; 116F.02; 
 10.27  116F.05; 116F.06; and 116F.08, are repealed. 
 10.28                             ARTICLE 2
 10.29     Section 1.  Minnesota Statutes 1998, section 16B.122, 
 10.30  subdivision 1, is amended to read: 
 10.31     Subdivision 1.  [DEFINITIONS.] The definitions in this 
 10.32  subdivision apply to this section. 
 10.33     (a) "Copier paper" means paper purchased for use in copying 
 10.34  machines. 
 10.35     (b) "Office paper" means notepads, loose-leaf fillers, 
 10.36  tablets, and other paper commonly used in offices. 
 11.1      (c) "Postconsumer material" means a finished material that 
 11.2   would normally be discarded as a solid waste, having completed 
 11.3   its life cycle as a consumer item.  For purposes of this 
 11.4   subdivision, paper upon which ink has been placed by a printing 
 11.5   process has completed its life cycle as a consumer item when a 
 11.6   printer places the paper into the recycling stream. 
 11.7      (d) "Practicable" means capable of being used, consistent 
 11.8   with performance, in accordance with applicable specifications, 
 11.9   and availability within a reasonable time. 
 11.10     (e) "Printing paper" means paper designed for printing, 
 11.11  other than newsprint, such as offset and publication paper. 
 11.12     (f) "Public entity" means the state, an office, agency, or 
 11.13  institution of the state, the metropolitan council, a 
 11.14  metropolitan agency, the metropolitan mosquito control district, 
 11.15  the legislature, the courts, a county, a statutory or home rule 
 11.16  charter city, a town, a school district, another special taxing 
 11.17  district, a university or college that receives state funding, 
 11.18  or any contractor acting pursuant to a contract with a public 
 11.19  entity. 
 11.20     (g) "Soy-based ink" means printing ink made from soy oil. 
 11.21     (h) "Uncoated" means not coated with plastic, clay, or 
 11.22  other material used to create a glossy finish. 
 11.23     Sec. 2.  Minnesota Statutes 1998, section 16B.122, is 
 11.24  amended by adding a subdivision to read: 
 11.25     Subd. 4.  [ADOPTION OF FEDERAL STANDARDS.] A public entity 
 11.26  shall comply with the minimum content standards for printing and 
 11.27  writing paper contained in Executive Order No. 12873, section 
 11.28  504, Federal Register, volume 58, page 54916 (1993).  
 11.29  Specifically, a public entity shall purchase or cause the 
 11.30  purchase of:  
 11.31     (1) high speed copier paper, offset paper, forms bond, 
 11.32  computer printout paper, carbonless paper, file folders, and 
 11.33  white woven envelopes with postconsumer material content of at 
 11.34  least 20 percent beginning December 31, 1999, and at least 30 
 11.35  percent beginning December 31, 2003; and 
 11.36     (2) other uncoated printing and writing paper, such as 
 12.1   writing and office paper, book paper, cotton fiber paper, and 
 12.2   cover stock, with a recycled content of at least 50 percent, 
 12.3   including a postconsumer material content of at least 20 percent 
 12.4   beginning December 31, 1999, and at least 30 percent beginning 
 12.5   December 31, 2003.  
 12.6      Sec. 3.  [16B.1221] [PUBLIC ENTITY; MILK CONTAINERS.] 
 12.7      Beginning August 1, 2001, a public entity, as defined in 
 12.8   section 16B.122, shall dispense or sell milk only through bulk 
 12.9   dispensers or in refillable containers that the public entity 
 12.10  collects and returns for reuse to the milk processor or bottler. 
 12.11                             ARTICLE 3
 12.12     Section 1.  [116F.20] [REUSABLE BEVERAGE PACKAGING.] 
 12.13     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 12.14  subdivision apply to this section. 
 12.15     (b) "Beverage" means a soft drink, soda water, carbonated 
 12.16  natural or mineral water, or other nonalcoholic carbonated 
 12.17  drink; beer, ale, or other malt drink; or a mixed wine or mixed 
 12.18  spirit drink or milk. 
 12.19     (c) "Beverage container" means an individual hermetically 
 12.20  sealed bottle, can, jar, or milk bottle composed of at least 50 
 12.21  percent glass, metal, or plastic by weight and used to contain 
 12.22  beverages in liquid form intended for human consumption and 
 12.23  which, when sold, contains one gallon or less of a beverage. 
 12.24     (d) "Beverage distributor" means a person who sells filled 
 12.25  beverage containers to retailers in this state. 
 12.26     (e) "Mixed wine drink" means a drink containing eight 
 12.27  percent or less alcohol by volume, consisting of (1) wine mixed 
 12.28  with nonalcoholic beverages or flavoring or coloring materials, 
 12.29  and which may also contain water, fruit juices, fruit adjuncts, 
 12.30  sugar, carbon dioxide, or preservatives; or (2) other similar 
 12.31  product marketed as a wine cooler. 
 12.32     (f) "Mixed spirit drink" means (1) a drink containing ten 
 12.33  percent or less alcohol by volume consisting of distilled 
 12.34  spirits mixed with nonalcoholic beverages or flavoring or 
 12.35  coloring materials and which may also contain water, fruit 
 12.36  juices, fruit adjuncts, sugar, carbon dioxide, or preservatives; 
 13.1   or (2) any spirits based beverage, regardless of the percent of 
 13.2   alcohol by volume, that is manufactured for sale in a 
 13.3   nonrefillable container. 
 13.4      (g) "Reusable beverage container" means a beverage 
 13.5   container that is designed to be and actually is reused at least 
 13.6   five times for its original purpose by a person who is in the 
 13.7   business of placing beverages in containers. 
 13.8      Subd. 2.  [REQUIREMENTS.] (a) A retailer that sells 
 13.9   beverages shall make display or shelf space available for 
 13.10  reusable beverage containers in the following percentages of the 
 13.11  total amount of shelf space available for beverages: 
 13.12     (1) five percent by January 1, 2001; 
 13.13     (2) ten percent by January 1, 2003; 
 13.14     (3) 15 percent by January 1, 2005; and 
 13.15     (4) 20 percent by January 1, 2007, and thereafter. 
 13.16     (b) A small business retailer may apply to the commissioner 
 13.17  of the pollution control agency for a temporary waiver of the 
 13.18  requirements of this subdivision.  The commissioner may grant a 
 13.19  temporary waiver for up to one year upon a showing by the small 
 13.20  business retailer of extraordinary hardship in complying with 
 13.21  these requirements, and a willingness on the part of the 
 13.22  retailer to implement such other measures as the commissioner 
 13.23  and the retailer agree upon to further the intent and purpose of 
 13.24  this section.  For the purposes of this section, "small 
 13.25  business" has the meaning given to it in section 645.445, except 
 13.26  that the small business may not have more than five full-time 
 13.27  employees or more than $250,000 in annual gross revenues in the 
 13.28  preceding fiscal year. 
 13.29     (c) A beverage distributor that does business in this state 
 13.30  shall distribute beverages in reusable containers in sufficient 
 13.31  quantity to supply retailers' demand based on paragraph (a). 
 13.32     (d) For those beverages otherwise subject to sales tax, a 
 13.33  retailer shall post a notice on the shelf at the space reserved 
 13.34  for beverages in reusable containers to clearly inform customers 
 13.35  that beverages sold in reusable containers are not subject to 
 13.36  sales tax. 
 14.1      Subd. 3.  [CLASSIFICATION OF BEVERAGES.] For the purposes 
 14.2   of this section, beverages are classified as: 
 14.3      (1) water, including soda water, carbonated water, and 
 14.4   mineral water; 
 14.5      (2) carbonated soft drinks, including all nonalcoholic 
 14.6   carbonated drinks, except water; 
 14.7      (3) all other soft drinks; 
 14.8      (4) milk; 
 14.9      (5) beer, ale, and other alcoholic malt drinks; and 
 14.10     (6) mixed wine and mixed spirit drinks. 
 14.11     Subd. 4.  [MONITORING.] To determine compliance with this 
 14.12  section, the commissioner of the agency shall conduct statewide 
 14.13  site inspections of a statistically reliable percentage of 
 14.14  large, medium, and small retailers of each classification of 
 14.15  beverages between January 1 of 2001, 2003, 2005 and 2007 and 
 14.16  June 1 of those years.  By July 1 of those years, the 
 14.17  commissioner shall send notification of the percentage of 
 14.18  beverages available for sale in reusable containers for each 
 14.19  classification of beverages and for all beverages as one group 
 14.20  to the commissioner of revenue and the director of the office of 
 14.21  environmental assistance.  If all beverage retailers as a group 
 14.22  fail to achieve the requirements of subdivision 2 in two 
 14.23  consecutive reporting years, the commissioners of the agency and 
 14.24  of revenue and the director of the office shall implement 
 14.25  sections 116F.20 to 116F.255, effective for only those 
 14.26  classifications of beverages for which compliance was not 
 14.27  achieved in both years for beverages sold beginning one year 
 14.28  after the second consecutive notification of noncompliance. 
 14.29     Sec. 2.  [116F.25] [APPLICATION; EXPIRATION.] 
 14.30     Sections 116F.251 to 116F.255 apply only if the 
 14.31  commissioner of the agency notifies the commissioner of revenue 
 14.32  and the director of the office of environmental assistance that 
 14.33  the requirements of section 116F.20 have not been met.  If all 
 14.34  the requirements of section 116F.20 have been met as of July 1, 
 14.35  2007, sections 116F.25 to 116F.255 expire July 1, 2008.  If at 
 14.36  any point sections 116F.251 to 116F.255 are implemented, those 
 15.1   sections remain in effect until replaced or repealed by the 
 15.2   legislature. 
 15.3      Sec. 3.  [116F.251] [DEFINITIONS.] 
 15.4      Subdivision 1.  [APPLICABILITY.] The definitions in this 
 15.5   section and section 116F.20 apply to sections 116F.251 to 
 15.6   116F.255. 
 15.7      Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
 15.8   commissioner of revenue. 
 15.9      Subd. 3.  [CONSUMER.] "Consumer" means a person who buys a 
 15.10  filled nonreusable beverage container from a retailer. 
 15.11     Subd. 4.  [RETAILER.] "Retailer" means a person who engages 
 15.12  in the sale of beverages in or from nonreusable beverage 
 15.13  containers to consumers. 
 15.14     Subd. 5.  [REVERSE VENDING MACHINE.] "Reverse vending 
 15.15  machine" means a mechanical device that accepts one or more 
 15.16  types of empty beverage containers and issues a cash refund or 
 15.17  redeemable credit slip with a value not less than the 
 15.18  containers' redemption value. 
 15.19     Sec. 4.  [116F.252] [RECYCLING DEPOSIT AND REFUND.] 
 15.20     Subdivision 1.  [DEPOSIT.] The price of a filled 
 15.21  nonreusable beverage container sold or offered for off-sale at 
 15.22  retail stores and through vending machines must include a refund 
 15.23  value of ten cents for a container with a volume of less than 
 15.24  one quart and 30 cents for a container with a volume of one 
 15.25  quart or more.  Containers sold aboard commercial airlines, 
 15.26  passenger trains, or passenger buses crossing state borders and 
 15.27  containers whose contents are consumed on the premises of the 
 15.28  retail store are exempt from the requirements of this 
 15.29  subdivision. 
 15.30     Subd. 2.  [REFUND PAYMENT REQUIRED.] Each retailer shall 
 15.31  accept an empty nonreusable beverage container of the kind, 
 15.32  size, and brand sold by the retailer and shall pay the refund 
 15.33  value to the person returning the container.  Each off-sale 
 15.34  retailer shall prominently display on its premises the kinds, 
 15.35  sizes, and brand names of nonreusable beverage containers 
 15.36  accepted.  Each beverage distributor or its designee shall 
 16.1   accept from a retailer nonreusable beverage containers of the 
 16.2   kind, size, and brand sold by the beverage distributor and shall 
 16.3   pay the retailer the refund value specified in subdivision 1 
 16.4   plus a handling allowance of two cents per container upon 
 16.5   receipt. 
 16.6      A retailer may refuse to accept from a consumer, and a 
 16.7   beverage distributor or its designee may refuse to accept from a 
 16.8   retailer, any nonreusable beverage container that is not 
 16.9   properly labeled according to subdivision 3, or is broken, 
 16.10  unclean, or not empty.  A reverse vending machine may be used to 
 16.11  fulfill the requirements of this subdivision. 
 16.12     Subd. 3.  [CONTAINER; PACKAGE DESIGN.] Each filled 
 16.13  nonreusable beverage container sold or offered for sale in this 
 16.14  state by a retailer or distributor must clearly indicate by 
 16.15  embossing, stamp, label, or other permanent method of display, 
 16.16  the name or abbreviation of this state, the refund value of the 
 16.17  container, and the words "Return For Deposit."  Each container 
 16.18  must also be printed, embossed, stamped, labeled, or otherwise 
 16.19  marked with a universal code or similar machine-readable code.  
 16.20  Nothing in this subdivision prohibits inclusion of the name on 
 16.21  the label of other states that have container deposit laws. 
 16.22     Sec. 5.  [116F.253] [REPORTS; PAYMENT OF UNREDEEMED 
 16.23  DEPOSITS.] 
 16.24     Subdivision 1.  [REPORTS.] Every beverage distributor doing 
 16.25  business in this state shall file with the commissioner of 
 16.26  revenue a quarterly and annual report, on a form prescribed by 
 16.27  the commissioner, specifying the total number of nonreusable 
 16.28  beverage containers sold to and redeemed from retailers in the 
 16.29  state and the amount of unredeemed deposits during the reporting 
 16.30  period.  The unredeemed deposit amount may not be offset by the 
 16.31  handling allowance paid to retailers or others. 
 16.32     The quarterly reports are due on or before the 15th day 
 16.33  following the end of the calendar quarter.  The annual reports 
 16.34  must accompany the reports for the fourth calendar quarter and 
 16.35  are due on or before January 15 following the end of the 
 16.36  calendar year. 
 17.1      Subd. 2.  [RECORDS.] The commissioner may by rule require 
 17.2   any person subject to subdivision 1 to keep books, papers, 
 17.3   documents, and records as the commissioner determines necessary 
 17.4   for the enforcement of sections 116F.251 to 116F.255.  The 
 17.5   commissioner may examine, or have examined, any books, papers, 
 17.6   records, or other documents relevant to making a determination, 
 17.7   whether they are in the possession of a reporter or another 
 17.8   person or corporation.  The commissioner may require the 
 17.9   attendance of any persons having knowledge or information in the 
 17.10  premises, to compel the production of books, papers, records, or 
 17.11  memoranda by persons so required to attend, to take testimony on 
 17.12  matters material to a determination, and to administer oaths or 
 17.13  affirmations. 
 17.14     Subd. 3.  [INFORMATION CONFIDENTIAL.] Neither the 
 17.15  commissioner nor any other public official or employee may 
 17.16  divulge or otherwise make known in any manner any particulars 
 17.17  disclosed in any report required by this section, or any 
 17.18  information concerning the affairs of the person making the 
 17.19  report acquired from its records, officers, or employees while 
 17.20  examining or auditing under the authority of sections 116F.251 
 17.21  to 116F.255, except in connection with a proceeding involving 
 17.22  unredeemed deposits due under sections 116F.251 to 116F.255.  
 17.23  Nothing in this section prohibits the commissioner from 
 17.24  publishing statistics classified in a manner that does not 
 17.25  disclose the identity of particular records or reports and their 
 17.26  contents.  Notwithstanding the provisions of this subdivision, 
 17.27  the commissioner may provide the commissioner of the agency with 
 17.28  information necessary for implementation and administration of 
 17.29  sections 116F.251 to 116F.255. 
 17.30     Subd. 4.  [TIME FOR PAYMENT; REFUND.] Unredeemed deposits 
 17.31  held during a calendar quarter must be paid to the commissioner 
 17.32  on or before the 15th day following the end of the quarter.  The 
 17.33  payment due for the fourth calendar quarter must be adjusted to 
 17.34  reflect any underpayment or overpayment that is shown on the 
 17.35  annual report.  Any overpayment of unredeemed recycling deposits 
 17.36  shown on the annual report must be refunded by the commissioner 
 18.1   and may not be entered as a credit against future liabilities 
 18.2   unless requested by the person required to pay the unredeemed 
 18.3   deposit. 
 18.4      Subd. 5.  [ENFORCEMENT.] The penalty, interest, and 
 18.5   enforcement provisions under chapters 270, 289A, and 297A apply 
 18.6   to the reports and amounts due the commissioner under this 
 18.7   section. 
 18.8      Subd. 6.  [COORDINATION WITH EXISTING RECYCLING 
 18.9   PROGRAMS.] A distributor may contract with a county or the 
 18.10  county's designee for collection of containers from retailers 
 18.11  and management of returned containers.  If a distributor chooses 
 18.12  to contract with a county or the county's designee, the 
 18.13  distributor must comply with subdivision 1 and must pay the 
 18.14  county an amount equal to the deposits the county must return to 
 18.15  retailers, the two cents per container handling fee for 
 18.16  retailers, and the incremental cost to the county or its 
 18.17  designee to collect, transport, store, process, and market the 
 18.18  containers, but may retain the amount of the unredeemed deposits 
 18.19  left after payment to the county under the contract. 
 18.20     Subd. 7.  [DEPOSIT AND USE OF REVENUE.] The commissioner 
 18.21  shall deposit revenue received under subdivision 4 in a special 
 18.22  revenue fund in the state treasury.  Revenue received under 
 18.23  subdivision 4 must be clearly identified by source.  Revenue in 
 18.24  the special revenue fund shall be appropriated to the 
 18.25  commissioner of children, families, and learning to be used for 
 18.26  grants to school districts in which retailers with unredeemed 
 18.27  deposits were located.  The grants shall be in same amounts as 
 18.28  the unredeemed deposits collected from retailers in that 
 18.29  district. 
 18.30     Sec. 6.  [116F.254] [AGENCY AND DIRECTOR AUTHORITY; DUTIES; 
 18.31  REPORTS.] 
 18.32     Subdivision 1.  [PUBLIC EDUCATION.] The director of the 
 18.33  office of environmental assistance may prepare, publish, and 
 18.34  issue printed or educational materials necessary for the 
 18.35  dissemination of information to the public and the regulated 
 18.36  community for effective implementation of sections 116F.251 to 
 19.1   116F.255. 
 19.2      Subd. 2.  [INFORMATION GATHERING.] The commissioner of the 
 19.3   agency may require any business or local government unit subject 
 19.4   to sections 116F.251 to 116F.255 to provide information 
 19.5   necessary for the preparation of any reports required by this 
 19.6   section. 
 19.7      Sec. 7.  [116F.255] [PENALTIES; PROCEDURES; RULES.] 
 19.8      Subdivision 1.  [CIVIL PENALTY.] In addition to any other 
 19.9   penalty imposed by law, a person who violates any provision of 
 19.10  section 116F.252 or 116F.253 shall forfeit and pay to the state 
 19.11  a penalty, in an amount to be determined by the court, of not 
 19.12  more than $1,000 per day of violation.  The penalty may be 
 19.13  recovered by a civil action brought by the attorney general in 
 19.14  the name of the state. 
 19.15     Subd. 2.  [INJUNCTIONS.] The attorney general may bring an 
 19.16  action to enjoin any violation of sections 116F.251 to 116F.255 
 19.17  or an action to compel performance of those sections. 
 19.18     Subd. 3.  [ADMINISTRATIVE PENALTY.] In lieu of a civil 
 19.19  penalty authorized in subdivision 1, the commissioner of the 
 19.20  agency may impose an administrative penalty under section 
 19.21  116.072 on any person who violates sections 116F.251 to 116F.255.
 19.22     Subd. 4.  [COSTS; FEES.] In any action under subdivision 1 
 19.23  or 2, the attorney general may also recover costs and attorney 
 19.24  fees. 
 19.25     Subd. 5.  [RULES.] The agency, director, metropolitan 
 19.26  council, and commissioner may adopt emergency and permanent 
 19.27  rules to implement sections 116F.251 to 116F.255. 
 19.28     Sec. 8.  [116F.256] [ENFORCEMENT.] 
 19.29     This chapter may be enforced under section 115.071 or 
 19.30  116.072. 
 19.31                             ARTICLE 4
 19.32     Section 1.  Minnesota Statutes 1998, section 297A.01, 
 19.33  subdivision 3, is amended to read: 
 19.34     Subd. 3.  A "sale" and a "purchase" includes, but is not 
 19.35  limited to, each of the following transactions: 
 19.36     (a) Any transfer of title or possession, or both, of 
 20.1   tangible personal property, whether absolutely or conditionally, 
 20.2   and the leasing of or the granting of a license to use or 
 20.3   consume tangible personal property other than manufactured homes 
 20.4   used for residential purposes for a continuous period of 30 days 
 20.5   or more, for a consideration in money or by exchange or barter; 
 20.6      (b) The production, fabrication, printing, or processing of 
 20.7   tangible personal property for a consideration for consumers who 
 20.8   furnish either directly or indirectly the materials used in the 
 20.9   production, fabrication, printing, or processing; 
 20.10     (c) The furnishing, preparing, or serving for a 
 20.11  consideration of food, meals, or drinks.  "Sale" or "purchase" 
 20.12  does not include: 
 20.13     (1) meals or drinks served to patients, inmates, or persons 
 20.14  residing at hospitals, sanitariums, nursing homes, senior 
 20.15  citizens homes, and correctional, detention, and detoxification 
 20.16  facilities; 
 20.17     (2) meals or drinks purchased for and served exclusively to 
 20.18  individuals who are 60 years of age or over and their spouses or 
 20.19  to the handicapped and their spouses by governmental agencies, 
 20.20  nonprofit organizations, agencies, or churches or pursuant to 
 20.21  any program funded in whole or part through 42 USCA sections 
 20.22  3001 through 3045, wherever delivered, prepared or served; or 
 20.23     (3) meals and lunches served at public and private schools, 
 20.24  universities, or colleges. 
 20.25  Notwithstanding section 297A.25, subdivision 2, taxable food or 
 20.26  meals include, but are not limited to, the following:  
 20.27     (i) food or drinks sold by the retailer for immediate 
 20.28  consumption on the retailer's premises.  Food and drinks sold 
 20.29  within a building or grounds which require an admission charge 
 20.30  for entrance are presumed to be sold for consumption on the 
 20.31  premises; 
 20.32     (ii) food or drinks prepared by the retailer for immediate 
 20.33  consumption either on or off the retailer's premises.  For 
 20.34  purposes of this subdivision, "food or drinks prepared for 
 20.35  immediate consumption" includes any food product upon which an 
 20.36  act of preparation including, but not limited to, cooking, 
 21.1   mixing, sandwich making, blending, heating, or pouring has been 
 21.2   performed by the retailer so the food product may be immediately 
 21.3   consumed by the purchaser; 
 21.4      (iii) ice cream, ice milk, frozen yogurt products, or 
 21.5   frozen novelties sold in single or individual servings including 
 21.6   cones, sundaes, and snow cones.  For purposes of this 
 21.7   subdivision, "single or individual servings" does not include 
 21.8   products when sold in bulk containers or bulk packaging; 
 21.9      (iv) soft drinks and other beverages including all 
 21.10  carbonated and noncarbonated beverages or drinks sold in liquid 
 21.11  form except beverages or drinks which contain milk or milk 
 21.12  products, beverages or drinks containing 15 or more percent 
 21.13  fruit juice, and noncarbonated and noneffervescent bottled water 
 21.14  sold in individual containers of one-half gallon or more in size 
 21.15  when those beverages or water are sold in nonrefillable 
 21.16  containers; 
 21.17     (v) gum, candy, and candy products, except when sold for 
 21.18  fundraising purposes by a nonprofit organization that provides 
 21.19  educational and social activities primarily for young people 18 
 21.20  years of age and under; 
 21.21     (vi) ice; 
 21.22     (vii) all food sold from vending machines; 
 21.23     (viii) all food for immediate consumption sold from 
 21.24  concession stands and vehicles; 
 21.25     (ix) party trays; 
 21.26     (x) all meals and single servings of packaged snack food 
 21.27  sold in restaurants and bars; and 
 21.28     (xi) bakery products: 
 21.29     (A) prepared by the retailer for consumption on the 
 21.30  retailer's premises; 
 21.31     (B) sold at a place that charges admission; 
 21.32     (C) sold from vending machines; or 
 21.33     (D) sold in single or individual servings from concession 
 21.34  stands, vehicles, bars, and restaurants.  For purposes of this 
 21.35  subdivision, "single or individual servings" does not include 
 21.36  products when sold in bulk containers or bulk packaging.  
 22.1      For purposes of this subdivision, "premises" means the 
 22.2   total space and facilities, including buildings, grounds, and 
 22.3   parking lots that are made available or that are available for 
 22.4   use by the retailer or customer for the purpose of sale or 
 22.5   consumption of prepared food and drinks.  The premises of a 
 22.6   caterer is the place where the catered food or drinks are 
 22.7   served; 
 22.8      (d) The granting of the privilege of admission to places of 
 22.9   amusement, recreational areas, or athletic events, except a 
 22.10  world championship football game sponsored by the national 
 22.11  football league, and the privilege of having access to and the 
 22.12  use of amusement devices, tanning facilities, reducing salons, 
 22.13  steam baths, turkish baths, health clubs, and spas or athletic 
 22.14  facilities; 
 22.15     (e) The furnishing for a consideration of lodging and 
 22.16  related services by a hotel, rooming house, tourist court, motel 
 22.17  or trailer camp and of the granting of any similar license to 
 22.18  use real property other than the renting or leasing thereof for 
 22.19  a continuous period of 30 days or more; 
 22.20     (f) The furnishing for a consideration of electricity, gas, 
 22.21  water, or steam for use or consumption within this state, or 
 22.22  local exchange telephone service, intrastate toll service, and 
 22.23  interstate toll service, if that service originates from and is 
 22.24  charged to a telephone located in this state.  Telephone service 
 22.25  does not include services purchased with prepaid telephone 
 22.26  calling cards.  Telephone service includes paging services and 
 22.27  private communication service, as defined in United States Code, 
 22.28  title 26, section 4252(d), as amended through December 31, 1991, 
 22.29  except for private communication service purchased by an agent 
 22.30  acting on behalf of the state lottery.  The furnishing for a 
 22.31  consideration of access to telephone services by a hotel to its 
 22.32  guests is a sale under this clause.  Sales by municipal 
 22.33  corporations in a proprietary capacity are included in the 
 22.34  provisions of this clause.  The furnishing of water and sewer 
 22.35  services for residential use shall not be considered a sale.  
 22.36  The sale of natural gas to be used as a fuel in vehicles 
 23.1   propelled by natural gas shall not be considered a sale for the 
 23.2   purposes of this section; 
 23.3      (g) The furnishing for a consideration of cable television 
 23.4   services, including charges for basic service, charges for 
 23.5   premium service, and any other charges for any other 
 23.6   pay-per-view, monthly, or similar television services; 
 23.7      (h) The furnishing for a consideration of parking services, 
 23.8   whether on a contractual, hourly, or other periodic basis, 
 23.9   except for parking at a meter; 
 23.10     (i) The furnishing for a consideration of services listed 
 23.11  in this paragraph: 
 23.12     (i) laundry and dry cleaning services including cleaning, 
 23.13  pressing, repairing, altering, and storing clothes, linen 
 23.14  services and supply, cleaning and blocking hats, and carpet, 
 23.15  drapery, upholstery, and industrial cleaning.  Laundry and dry 
 23.16  cleaning services do not include services provided by coin 
 23.17  operated facilities operated by the customer; 
 23.18     (ii) motor vehicle washing, waxing, and cleaning services, 
 23.19  including services provided by coin-operated facilities operated 
 23.20  by the customer, and rustproofing, undercoating, and towing of 
 23.21  motor vehicles; 
 23.22     (iii) building and residential cleaning, maintenance, and 
 23.23  disinfecting and exterminating services; 
 23.24     (iv) detective services, security services, burglar, fire 
 23.25  alarm, and armored car services; but not including services 
 23.26  performed within the jurisdiction they serve by off-duty 
 23.27  licensed peace officers as defined in section 626.84, 
 23.28  subdivision 1, or services provided by a nonprofit organization 
 23.29  for monitoring and electronic surveillance of persons placed on 
 23.30  in-home detention pursuant to court order or under the direction 
 23.31  of the Minnesota department of corrections; 
 23.32     (v) pet grooming services; 
 23.33     (vi) lawn care, fertilizing, mowing, spraying and sprigging 
 23.34  services; garden planting and maintenance; tree, bush, and shrub 
 23.35  pruning, bracing, spraying, and surgery; indoor plant care; 
 23.36  tree, bush, shrub and stump removal; and tree trimming for 
 24.1   public utility lines.  Services performed under a construction 
 24.2   contract for the installation of shrubbery, plants, sod, trees, 
 24.3   bushes, and similar items are not taxable; 
 24.4      (vii) massages, except when provided by a licensed health 
 24.5   care facility or professional or upon written referral from a 
 24.6   licensed health care facility or professional for treatment of 
 24.7   illness, injury, or disease; and 
 24.8      (viii) the furnishing for consideration of lodging, board 
 24.9   and care services for animals in kennels and other similar 
 24.10  arrangements, but excluding veterinary and horse boarding 
 24.11  services. 
 24.12  The services listed in this paragraph are taxable under section 
 24.13  297A.02 if the service is performed wholly within Minnesota or 
 24.14  if the service is performed partly within and partly without 
 24.15  Minnesota and the greater proportion of the service is performed 
 24.16  in Minnesota, based on the cost of performance.  In applying the 
 24.17  provisions of this chapter, the terms "tangible personal 
 24.18  property" and "sales at retail" include taxable services and the 
 24.19  provision of taxable services, unless specifically provided 
 24.20  otherwise.  Services performed by an employee for an employer 
 24.21  are not taxable under this paragraph.  Services performed by a 
 24.22  partnership or association for another partnership or 
 24.23  association are not taxable under this paragraph if one of the 
 24.24  entities owns or controls more than 80 percent of the voting 
 24.25  power of the equity interest in the other entity.  Services 
 24.26  performed between members of an affiliated group of corporations 
 24.27  are not taxable.  For purposes of this section, "affiliated 
 24.28  group of corporations" includes those entities that would be 
 24.29  classified as a member of an affiliated group under United 
 24.30  States Code, title 26, section 1504, as amended through December 
 24.31  31, 1987, and who are eligible to file a consolidated tax return 
 24.32  for federal income tax purposes; 
 24.33     (j) A "sale" and a "purchase" includes the transfer of 
 24.34  computer software, meaning information and directions that 
 24.35  dictate the function performed by data processing equipment.  A 
 24.36  "sale" and a "purchase" does not include the design, 
 25.1   development, writing, translation, fabrication, lease, or 
 25.2   transfer for a consideration of title or possession of a custom 
 25.3   computer program; and 
 25.4      (k) The granting of membership in a club, association, or 
 25.5   other organization if: 
 25.6      (1) the club, association, or other organization makes 
 25.7   available for the use of its members sports and athletic 
 25.8   facilities (without regard to whether a separate charge is 
 25.9   assessed for use of the facilities); and 
 25.10     (2) use of the sports and athletic facilities is not made 
 25.11  available to the general public on the same basis as it is made 
 25.12  available to members.  
 25.13  Granting of membership includes both one-time initiation fees 
 25.14  and periodic membership dues.  Sports and athletic facilities 
 25.15  include golf courses, tennis, racquetball, handball and squash 
 25.16  courts, basketball and volleyball facilities, running tracks, 
 25.17  exercise equipment, swimming pools, and other similar athletic 
 25.18  or sports facilities.  The provisions of this paragraph do not 
 25.19  apply to camps or other recreation facilities owned and operated 
 25.20  by an exempt organization under section 501(c)(3) of the 
 25.21  Internal Revenue Code of 1986, as amended through December 31, 
 25.22  1992, for educational and social activities for young people 
 25.23  primarily age 18 and under.