1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             jobs, economic development, and human services 
  1.4             purposes; establishing and modifying certain programs; 
  1.5             providing for accounts, assessments and fees; making 
  1.6             changes to programs for children and families; 
  1.7             amending Minnesota Statutes 2004, sections 41A.09, 
  1.8             subdivision 2a; 60A.14, subdivision 1; 60K.55, 
  1.9             subdivision 2; 72A.20, by adding a subdivision; 
  1.10            72B.04, subdivision 10; 82B.09, subdivision 1; 
  1.11            115C.07, subdivision 3; 115C.09, subdivision 3h; 
  1.12            115C.13; 116C.779, subdivision 2; 116J.551, 
  1.13            subdivision 1; 116J.571; 116J.572; 116J.574; 116J.575, 
  1.14            as amended; 116J.63, subdivision 2; 116J.8731, 
  1.15            subdivision 5; 116J.8747, subdivision 2; 116J.994, 
  1.16            subdivisions 7, 9; 116L.03, subdivision 2; 116L.05, by 
  1.17            adding a subdivision; 116L.17, subdivision 1; 116L.20, 
  1.18            subdivision 2; 119B.02, by adding a subdivision; 
  1.19            119B.13, subdivision 1, by adding a subdivision; 
  1.20            183.41, by adding a subdivision; 183.411, subdivisions 
  1.21            2a, 3; 183.42; 183.44, subdivision 1; 183.51, 
  1.22            subdivision 2, by adding a subdivision; 183.545; 
  1.23            183.57; 216C.41, subdivisions 2, 5, 5a; 237.11; 
  1.24            237.295, subdivisions 1, 2; 239.011, subdivision 2; 
  1.25            239.05, subdivision 10b, by adding a subdivision; 
  1.26            239.09; 239.101, subdivision 3; 239.75, subdivisions 
  1.27            1, 5; 239.761; 239.77, by adding a subdivision; 
  1.28            239.79, subdivision 4; 239.791, subdivisions 1, 7, 8, 
  1.29            15; 239.792; 245A.10, subdivision 4; 254A.035, 
  1.30            subdivision 2; 254A.04; 256.01, by adding 
  1.31            subdivisions; 256.741, subdivision 4; 256B.0924, 
  1.32            subdivision 3; 256B.093, subdivision 1; 256D.06, 
  1.33            subdivisions 5, 7, by adding a subdivision; 256I.05, 
  1.34            subdivision 1e; 256J.12, subdivision 1, by adding a 
  1.35            subdivision; 256J.37, subdivision 3a; 256J.515; 
  1.36            256J.751, subdivision 2; 256J.95, by adding 
  1.37            subdivisions; 256K.35, by adding a subdivision; 
  1.38            260.835; 268.19, subdivision 1; 296A.01, subdivisions 
  1.39            2, 7, 8, 14, 19, 20, 22, 23, 24, 25, 26, 28; 298.22, 
  1.40            by adding a subdivision; 326.975, subdivision 1; 
  1.41            345.47, subdivisions 3, 3a; 373.40, subdivisions 1, 3; 
  1.42            462A.05, subdivision 3a; 462A.33, subdivision 2; 
  1.43            517.08, subdivisions 1b, 1c; Laws 1999, chapter 224, 
  1.44            section 7, as amended; proposing coding for new law in 
  1.45            Minnesota Statutes, chapters 45; 116L; 237; 256K; 
  1.46            325F; proposing coding for new law as Minnesota 
  2.1             Statutes, chapter 59B; repealing Minnesota Statutes 
  2.2             2004, sections 45.0295; 116J.573; 116J.58, subdivision 
  2.3             3; 116L.05, subdivision 4; 119B.074; 239.05, 
  2.4             subdivisions 6a, 6b; 256D.54, subdivision 3; 462C.15; 
  2.5             Laws 2003, First Special Session chapter 14, article 
  2.6             9, section 34; Minnesota Rules, parts 9500.1254; 
  2.7             9500.1256. 
  2.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.9                              ARTICLE 1
  2.10            JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS
  2.11  Section 1.  [JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.] 
  2.12     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.13  appropriated from the general fund, or another named fund, to 
  2.14  the agencies and for the purposes specified in this article, to 
  2.15  be available for the fiscal years indicated for each purpose.  
  2.16  The figures "2006" and "2007," where used in this article, mean 
  2.17  that the appropriation or appropriations listed under them are 
  2.18  available for the fiscal year ending June 30, 2006, or June 30, 
  2.19  2007, respectively.  The term "first year" means the fiscal year 
  2.20  ending June 30, 2006, and the term "second year" means the 
  2.21  fiscal year ending June 30, 2007. 
  2.22                          SUMMARY BY FUND
  2.23                            2006          2007           TOTAL
  2.24  General            $  143,228,000 $  137,600,000 $  280,828,000
  2.25  Workforce
  2.26  Development             8,270,000      8,270,000     16,540,000
  2.27  Remediation               700,000        700,000      1,400,000
  2.28  Petroleum Tank
  2.29  Cleanup                 1,084,000      1,084,000      2,168,000
  2.30  Workers'
  2.31  Compensation           21,725,000     21,725,000     43,450,000
  2.32  TOTAL              $  175,007,000 $  169,379,000 $  344,386,000
  2.33                                             APPROPRIATIONS 
  2.34                                         Available for the Year 
  2.35                                             Ending June 30 
  2.36                                            2006         2007 
  2.37  Sec. 2.  EMPLOYMENT AND 
  2.38  ECONOMIC DEVELOPMENT 
  2.39  Subdivision 1.  Total
  2.40  Appropriation                     $   46,116,000 $   46,115,000
  2.41                Summary by Fund
  2.42  General              37,596,000    37,595,000
  2.43  Remediation             700,000       700,000
  3.1   Workforce
  3.2   Development           7,820,000     7,820,000
  3.3   The amounts that may be spent from this 
  3.4   appropriation for each program are 
  3.5   specified in the following subdivisions.
  3.6   Subd. 2.  Business and
  3.7   Community Development                  7,819,000      7,818,000 
  3.8                 Summary by Fund
  3.9   General               7,119,000     7,118,000
  3.10  Remediation             700,000       700,000
  3.11  (a)(1) $150,000 the first year and 
  3.12  $150,000 the second year are from the 
  3.13  general fund for a grant under 
  3.14  Minnesota Statutes, section 116J.421, 
  3.15  to the Rural Policy and Development 
  3.16  Center at Minnesota State University.  
  3.17  The grant shall be used for research 
  3.18  and policy analysis on emerging 
  3.19  economic and social issues in rural 
  3.20  Minnesota, to serve as a policy 
  3.21  resource center for rural Minnesota 
  3.22  communities, to encourage collaboration 
  3.23  across higher education institutions to 
  3.24  provide interdisciplinary team 
  3.25  approaches to research and 
  3.26  problem-solving in rural communities, 
  3.27  and to administer overall operations of 
  3.28  the center. 
  3.29  (2) The grant shall be provided upon 
  3.30  the condition that each 
  3.31  state-appropriated dollar be matched 
  3.32  with a nonstate dollar.  Acceptable 
  3.33  matching funds are nonstate 
  3.34  contributions that the center has 
  3.35  received and have not been used to 
  3.36  match previous state grants.  Any funds 
  3.37  not spent the first year are available 
  3.38  the second year. 
  3.39  (b) $100,000 the first year and 
  3.40  $100,000 the second year are from the 
  3.41  general fund for a grant to the 
  3.42  Metropolitan Economic Development 
  3.43  Association for continuing minority 
  3.44  business development programs in the 
  3.45  metropolitan area. 
  3.46  (c) $150,000 the first year and 
  3.47  $150,000 the second year are from the 
  3.48  general fund for a grant to 
  3.49  WomenVenture for women's business 
  3.50  development programs. 
  3.51  (d) $250,000 the first year and 
  3.52  $250,000 the second year are from the 
  3.53  general fund to establish a 
  3.54  methamphetamine laboratory cleanup 
  3.55  revolving loan fund pursuant to 
  3.56  proposed legislation.  This is a 
  3.57  onetime appropriation.  These funds are 
  3.58  available until spent. 
  3.59  (e) $18,000 in the first year and 
  3.60  $17,000 in the second year are for 
  4.1   onetime grants to the Riverbend Center 
  4.2   for Entrepreneurial Facilitation in 
  4.3   Blue Earth County.  The grants must be 
  4.4   used to continue a program to assist in 
  4.5   the development of entrepreneurs and 
  4.6   small businesses.  The grants must be 
  4.7   provided on the condition that each 
  4.8   state-appropriated dollar be matched 
  4.9   with a nonstate dollar.  Any balance in 
  4.10  the first year does not cancel but is 
  4.11  available in the second year. 
  4.12  Grant recipients must report to the 
  4.13  commissioner by February 1 in each of 
  4.14  the two years after the year of receipt 
  4.15  of the grant.  The report must detail 
  4.16  the number of customers served; the 
  4.17  number of businesses started, 
  4.18  stabilized, or expanded; the number of 
  4.19  jobs created and retained; and business 
  4.20  success rates.  The commissioner shall 
  4.21  report to the legislature on the 
  4.22  program's assistance to entrepreneurs 
  4.23  and small businesses.  The report shall 
  4.24  contain an evaluation of the results. 
  4.25  (f) $100,000 the first year and 
  4.26  $100,000 the second year are to help 
  4.27  small businesses access federal funds 
  4.28  through the federal Small Business 
  4.29  Innovation Research Program and the 
  4.30  federal Small Business Technology 
  4.31  Transfer Program.  Department services 
  4.32  must include maintaining connections to 
  4.33  11 federal programs, assessment of 
  4.34  specific funding opportunities, review 
  4.35  of funding proposals, referral to 
  4.36  specific consulting services, and 
  4.37  conduct of training workshops 
  4.38  throughout the state.  This 
  4.39  appropriation is added to the agency's 
  4.40  base. 
  4.41  (g) $50,000 the first year and $50,000 
  4.42  the second year are for grants to the 
  4.43  Minnesota Inventors Congress. 
  4.44  (h) $15,000 the first year is for a 
  4.45  onetime grant to La Creche Early 
  4.46  Childhood Centers, Inc. of Minneapolis. 
  4.47  Subd. 3.  Workforce Partnerships       7,910,000      7,910,000 
  4.48                Summary by Fund
  4.49  General               7,035,000     7,035,000
  4.50  Workforce
  4.51  Development             875,000       875,000
  4.52  (a) $6,785,000 the first year and 
  4.53  $6,785,000 the second year are from the 
  4.54  general fund for the Minnesota job 
  4.55  skills partnership program under 
  4.56  Minnesota Statutes, sections 116L.01 to 
  4.57  116L.17.  If the appropriation for 
  4.58  either year is insufficient, the 
  4.59  appropriation for the other year is 
  4.60  available.  This appropriation does not 
  4.61  cancel. 
  5.1   (b) $250,000 the first year and 
  5.2   $250,000 the second year are from the 
  5.3   general fund for a grant under 
  5.4   Minnesota Statutes, section 116J.8747, 
  5.5   to Twin Cities RISE! to provide 
  5.6   training to hard-to-train individuals. 
  5.7   (c) $875,000 the first year and 
  5.8   $875,000 the second year are from the 
  5.9   workforce development fund for 
  5.10  opportunities industrialization center 
  5.11  programs. 
  5.12  (d) The first $1,450,000 deposited in 
  5.13  each year of the biennium and in each 
  5.14  year of subsequent bienniums into the 
  5.15  contingent account created under 
  5.16  Minnesota Statutes, section 268.196, 
  5.17  subdivision 3, shall be transferred 
  5.18  upon deposit to the workforce 
  5.19  development fund created under 
  5.20  Minnesota Statutes, section 116L.20.  
  5.21  Deposits in excess of the $1,450,000 
  5.22  shall be transferred upon deposit to 
  5.23  the general fund. 
  5.24  Subd. 4.  Workforce Services          27,110,000     27,110,000 
  5.25                Summary by Fund
  5.26  General              20,165,000    20,165,000
  5.27  Workforce
  5.28  Development           6,945,000     6,945,000
  5.29  (a) $4,864,000 the first year and 
  5.30  $4,864,000 the second year are from the 
  5.31  general fund and $6,920,000 the first 
  5.32  year and $6,920,000 the second year are 
  5.33  from the workforce development fund for 
  5.34  extended employment services for 
  5.35  persons with severe disabilities or 
  5.36  related conditions under Minnesota 
  5.37  Statutes, section 268A.15. 
  5.38  (b) $1,690,000 the first year and 
  5.39  $1,690,000 the second year are from the 
  5.40  general fund for grants under Minnesota 
  5.41  Statutes, section 268A.11, for the 
  5.42  eight centers for independent living.  
  5.43  Money not expended the first year is 
  5.44  available the second year. 
  5.45  (c) $150,000 the first year and 
  5.46  $150,000 the second year are from the 
  5.47  general fund and $25,000 the first year 
  5.48  and $25,000 the second year are from 
  5.49  the workforce development fund for 
  5.50  grants under Minnesota Statutes, 
  5.51  section 268A.03, to Rise, Inc. for the 
  5.52  Minnesota Employment Center for People 
  5.53  Who are Deaf or Hard-of-Hearing.  Money 
  5.54  not expended the first year is 
  5.55  available the second year. 
  5.56  (d) $1,000,000 the first year and 
  5.57  $1,000,000 the second year are from the 
  5.58  general fund for grants for programs 
  5.59  that provide employment support 
  5.60  services to persons with mental illness 
  5.61  under Minnesota Statutes, sections 
  6.1   268A.13 and 268A.14.  Up to $77,000 
  6.2   each year may be used for 
  6.3   administrative and salary expenses. 
  6.4   (e) $4,940,000 the first year and 
  6.5   $4,940,000 the second year are from the 
  6.6   general fund for state services for the 
  6.7   blind activities. 
  6.8   (f) On or after July 1, 2005, the 
  6.9   commissioner of finance shall cancel 
  6.10  the unencumbered balance in the 
  6.11  contaminated site cleanup and 
  6.12  development account to the unrestricted 
  6.13  fund balance in the general fund. 
  6.14  (g) On or after July 1, 2005, the 
  6.15  commissioner of finance shall transfer 
  6.16  to the general fund any amount in 
  6.17  excess of $10,000,000 in the Minnesota 
  6.18  minerals 21st century fund account in 
  6.19  the special revenue fund. 
  6.20  Subd. 5.  State-Funded
  6.21  Administration                         3,277,000      3,277,000 
  6.22  Sec. 3.  COMMERCE
  6.23  Subdivision 1.  Total
  6.24  Appropriation                         22,130,000     22,130,000
  6.25                Summary by Fund
  6.26  General              20,211,000    20,211,000
  6.27  Petroleum
  6.28  Cleanup               1,084,000     1,084,000
  6.29  Workers'
  6.30  Compensation            835,000       835,000
  6.31  The amounts that may be spent from this 
  6.32  appropriation for each program are 
  6.33  specified in the following subdivisions.
  6.34  Subd. 2.  Financial Examinations       5,994,000      5,994,000 
  6.35  Subd. 3.  Petroleum Tank Release
  6.36  Cleanup Board                          1,084,000      1,084,000 
  6.37  This appropriation is from the 
  6.38  petroleum tank release cleanup fund. 
  6.39  Subd. 4.  Administrative Services      5,483,000      5,483,000 
  6.40  Subd. 5.  Market Assurance             5,757,000      5,757,000 
  6.41                Summary by Fund
  6.42  General               4,922,000     4,922,000
  6.43  Workers'
  6.44  Compensation            835,000       835,000
  6.45  Subd. 6.  Energy and
  6.46  Telecommunications                     3,812,000      3,812,000 
  6.47  Subd. 7.  Fair Housing Education  
  6.48  Of the money appropriated for fair 
  6.49  housing education under Laws 2001, 
  7.1   chapter 208, section 28, the 
  7.2   unencumbered balance is canceled and 
  7.3   transferred to the general fund. 
  7.4   Subd. 8.  Mortgage Consumer Education
  7.5   Of the unexpended balance in the 
  7.6   consumer education account established 
  7.7   under Minnesota Statutes, section 
  7.8   58.10, subdivision 3, $200,000 is 
  7.9   transferred to the general fund. 
  7.10  Subd. 9.  Mortgage Flipping Education Campaign 
  7.11  Of the money appropriated for education 
  7.12  regarding mortgage flipping by Laws 
  7.13  1999, chapter 223, article 1, section 
  7.14  6, subdivision 3, the unencumbered 
  7.15  balance is canceled and transferred to 
  7.16  the general fund. 
  7.17  Subd. 10.  Liquefied Petroleum Gas Account 
  7.18  The unexpended balance in the liquefied 
  7.19  petroleum gas account established under 
  7.20  Minnesota Statutes, section 239.785, 
  7.21  subdivision 6, is canceled and 
  7.22  transferred to the general fund. 
  7.23  Sec. 4.  HOUSING FINANCE AGENCY
  7.24  Subdivision 1.  Total
  7.25  Appropriation                         34,770,000     28,270,000
  7.26  The amounts that may be spent from this 
  7.27  appropriation for certain programs are 
  7.28  specified in the following subdivisions.
  7.29  This appropriation is for transfer to 
  7.30  the housing development fund for the 
  7.31  programs specified.  Except as 
  7.32  otherwise indicated, this transfer is 
  7.33  part of the agency's permanent budget 
  7.34  base. 
  7.35  Subd. 2.  Challenge Program       
  7.36  $10,907,000 the first year and 
  7.37  $4,407,000 the second year are for the 
  7.38  economic development and housing 
  7.39  challenge program under Minnesota 
  7.40  Statutes, section 462A.33. 
  7.41  The base budget for the economic 
  7.42  development and housing challenge 
  7.43  program shall be $10,907,000 in fiscal 
  7.44  year 2008 and $10,907,000 in fiscal 
  7.45  year 2009. 
  7.46  Subd. 3.  Housing Trust Fund     
  7.47  $6,305,000 the first year and 
  7.48  $6,305,000 the second year are for the 
  7.49  housing trust fund to be deposited in 
  7.50  the housing trust fund account created 
  7.51  under Minnesota Statutes, section 
  7.52  462A.201, and used for the purposes 
  7.53  provided in that section. 
  7.54  Subd. 4.  Rental Assistance
  7.55  for Mentally Ill                
  8.1   $1,638,000 the first year and 
  8.2   $1,638,000 the second year are for a 
  8.3   rental housing assistance program for 
  8.4   persons with a mental illness or 
  8.5   families with an adult member with a 
  8.6   mental illness under Minnesota 
  8.7   Statutes, section 462A.2097. 
  8.8   Subd. 5.  Family Homeless
  8.9   Prevention                       
  8.10  $3,715,000 the first year and 
  8.11  $3,715,000 the second year are for 
  8.12  family homeless prevention and 
  8.13  assistance programs under Minnesota 
  8.14  Statutes, section 462A.204.  Any 
  8.15  balance the first year does not cancel 
  8.16  but is available the second year. 
  8.17  Subd. 6.  Home Ownership
  8.18  Assistance Fund                 
  8.19  The budget base for the home ownership 
  8.20  assistance fund shall be $885,000 in 
  8.21  fiscal year 2008 and $885,000 in fiscal 
  8.22  year 2009. 
  8.23  Subd. 7.  Affordable Rental
  8.24  Investment Fund               
  8.25  $8,531,000 the first year and 
  8.26  $8,531,000 the second year are for the 
  8.27  affordable rental investment fund 
  8.28  program under Minnesota Statutes, 
  8.29  section 462A.21, subdivision 8b. 
  8.30  This appropriation is to finance the 
  8.31  acquisition, rehabilitation, and debt 
  8.32  restructuring of federally assisted 
  8.33  rental property and for making equity 
  8.34  take-out loans under Minnesota 
  8.35  Statutes, section 462A.05, subdivision 
  8.36  39.  This appropriation also may be 
  8.37  used to finance the acquisition, 
  8.38  rehabilitation, and debt restructuring 
  8.39  of existing supportive housing 
  8.40  properties.  For purposes of this 
  8.41  subdivision, "supportive housing" means 
  8.42  affordable rental housing with links to 
  8.43  services necessary for individuals, 
  8.44  youth, and families with children to 
  8.45  maintain housing stability. 
  8.46  The owner of the federally assisted 
  8.47  rental property must agree to 
  8.48  participate in the applicable federally 
  8.49  assisted housing program and to extend 
  8.50  any existing low-income affordability 
  8.51  restrictions on the housing for the 
  8.52  maximum term permitted.  The owner must 
  8.53  also enter into an agreement that gives 
  8.54  local units of government, housing and 
  8.55  redevelopment authorities, and 
  8.56  nonprofit housing organizations the 
  8.57  right of first refusal if the rental 
  8.58  property is offered for sale.  Priority 
  8.59  must be given among comparable 
  8.60  federally assisted rental properties to 
  8.61  properties with the longest remaining 
  8.62  term under an agreement for federal 
  9.1   rental assistance.  Priority must also 
  9.2   be given among comparable rental 
  9.3   housing developments to developments 
  9.4   that are or will be owned by local 
  9.5   government units, a housing and 
  9.6   redevelopment authority, or a nonprofit 
  9.7   housing organization. 
  9.8   Subd. 8.  Housing Rehabilitation
  9.9   and Accessibility                 
  9.10  $2,654,000 the first year and 
  9.11  $2,654,000 the second year are for the 
  9.12  housing rehabilitation and 
  9.13  accessibility program under Minnesota 
  9.14  Statutes, section 462A.05, subdivisions 
  9.15  14a and 15a. 
  9.16  Subd. 9.  Home Ownership Education,
  9.17  Counseling, and Training          
  9.18  $770,000 the first year and $770,000 
  9.19  the second year are for the home 
  9.20  ownership education, counseling, and 
  9.21  training program under Minnesota 
  9.22  Statutes, section 462A.209. 
  9.23  Subd. 10.  Capacity Building
  9.24  Grants                            
  9.25  $250,000 the first year and $250,000 
  9.26  the second year are for nonprofit 
  9.27  capacity building grants under 
  9.28  Minnesota Statutes, section 462A.21, 
  9.29  subdivision 3b. 
  9.30  Sec. 5.  EXPLORE MINNESOTA
  9.31  TOURISM                                8,626,000      9,626,000 
  9.32  To develop maximum private sector 
  9.33  involvement in tourism, $4,000,000 each 
  9.34  year must be matched by Explore 
  9.35  Minnesota Tourism from nonstate 
  9.36  sources.  Up to one-half of the total 
  9.37  match requirement may include in-kind 
  9.38  contributions.  Cash match is defined 
  9.39  as revenue to the state or documented 
  9.40  case expenditures directly expended to 
  9.41  support Explore Minnesota tourism 
  9.42  programs. 
  9.43  In the second year, for every dollar 
  9.44  generated from nonstate sources in the 
  9.45  previous year in excess of $4,000,000, 
  9.46  an amount of up to $1,000,000 is 
  9.47  appropriated from the general fund to 
  9.48  Explore Minnesota tourism for marketing 
  9.49  purposes.  This incentive is ongoing.  
  9.50  In order to maximize marketing grant 
  9.51  benefits, the director must give 
  9.52  priority for organizational partnership 
  9.53  marketing grants to organizations with 
  9.54  year-round sustained tourism 
  9.55  activities.  For programs and projects 
  9.56  submitted, the director must give 
  9.57  priority to those that encompass two or 
  9.58  more areas or that attract nonresident 
  9.59  travelers to the state. 
  9.60  Funding for the marketing grants is 
  9.61  available either year of the biennium.  
 10.1   Unexpended grant funds from the first 
 10.2   year are available in the second year. 
 10.3   The director may use grant dollars or 
 10.4   the value of in-kind services to 
 10.5   provide the state contribution for the 
 10.6   partnership grant program. 
 10.7   Any unexpended money from the general 
 10.8   fund appropriations made under this 
 10.9   section does not cancel but must be 
 10.10  placed in a special marketing account 
 10.11  for use by Explore Minnesota tourism 
 10.12  for additional marketing activities. 
 10.13  Of this amount, $50,000 the first year 
 10.14  is for a onetime grant to the 
 10.15  Mississippi River Parkway Commission to 
 10.16  support the increased promotion of 
 10.17  tourism along the Great River Road.  
 10.18  This appropriation is available until 
 10.19  June 30, 2007. 
 10.20  Of this amount, $175,000 the first year 
 10.21  and $175,000 the second year are for 
 10.22  the Minnesota Film Board.  The 
 10.23  appropriation in each year is available 
 10.24  only upon receipt by the board of $1 in 
 10.25  matching contributions of money or 
 10.26  in-kind from nonstate sources for every 
 10.27  $3 provided by this appropriation. 
 10.28  Sec. 6.  LABOR AND INDUSTRY
 10.29  Subdivision 1.  Total
 10.30  Appropriation                         22,594,000     22,594,000
 10.31                Summary by Fund
 10.32  General               2,872,000     2,872,000
 10.33  Workers'
 10.34  Compensation         19,272,000    19,272,000
 10.35  Workforce
 10.36  Development             450,000       450,000
 10.37  The amounts that may be spent from this 
 10.38  appropriation for each program are 
 10.39  specified in the following subdivisions.
 10.40  Subd. 2.  Workers' Compensation
 10.41      10,346,000     10,346,000 
 10.42  This appropriation is from the workers' 
 10.43  compensation fund. 
 10.44  Up to $125,000 the first year and up to 
 10.45  $125,000 the second year are for grants 
 10.46  to the Vinland Center for 
 10.47  rehabilitation services.  The grants 
 10.48  shall be distributed as the department 
 10.49  refers injured workers to the Vinland 
 10.50  Center to receive rehabilitation 
 10.51  services. 
 10.52  Subd. 3.  Workplace Services
 10.53       6,961,000      6,961,000 
 11.1                 Summary by Fund
 11.2   General               2,872,000     2,872,000
 11.3   Workers'
 11.4   Compensation          3,639,000     3,639,000
 11.5   Workforce
 11.6   Development             450,000       450,000
 11.7   $350,000 each year is from the 
 11.8   workforce development fund for the 
 11.9   apprenticeship program under Minnesota 
 11.10  Statutes, chapter 178. 
 11.11  $100,000 the first year and $100,000 
 11.12  the second year are for labor education 
 11.13  and advancement program grants.  This 
 11.14  appropriation is from the workforce 
 11.15  development fund. 
 11.16  The annual license fees authorized 
 11.17  under Minnesota Statutes, section 
 11.18  326.48, and detailed in Minnesota 
 11.19  Rules, part 5230.0100, subpart 3, shall 
 11.20  increase $20 for a journeyman 
 11.21  high-pressure piping pipefitter 
 11.22  license, $20 for a high-pressure piping 
 11.23  contracting pipefitter, $10 for an 
 11.24  inactive license, and $100 for a 
 11.25  high-pressure pipefitting business 
 11.26  license. 
 11.27  The permit filing and inspection fees 
 11.28  authorized under Minnesota Statutes, 
 11.29  section 326.47, and detailed in 
 11.30  Minnesota Rules, part 5230.0100, 
 11.31  subpart 4, shall be increased as 
 11.32  follows:  the filing of a permit 
 11.33  application shall be increased $50, the 
 11.34  minimum high-pressure piping inspection 
 11.35  fee shall be increased $50, and the 
 11.36  schedule of inspection fee rates shall 
 11.37  be increased by ten percent. 
 11.38  Subd. 4.  General Support
 11.39       5,287,000      5,287,000 
 11.40  This appropriation is from the workers' 
 11.41  compensation fund. 
 11.42  Sec. 7.  BUREAU OF MEDIATION
 11.43  SERVICES                               1,673,000      1,673,000 
 11.44  Sec. 8.  WORKERS' COMPENSATION
 11.45  COURT OF APPEALS                       1,618,000      1,618,000 
 11.46  This appropriation is from the workers' 
 11.47  compensation fund. 
 11.48  Sec. 9.  MINNESOTA HISTORICAL
 11.49  SOCIETY
 11.50  Subdivision 1.  Total
 11.51  Appropriation                         22,753,000     22,626,000
 11.52  The amounts that may be spent from this 
 11.53  appropriation for each program are 
 11.54  specified in the following 
 11.55  subdivisions.  The Minnesota Historical 
 12.1   Society shall make its best possible 
 12.2   efforts, including the use of 
 12.3   volunteers, to avoid closing historic 
 12.4   sites or substantially limiting public 
 12.5   access to them.  Before closing any 
 12.6   site, the Minnesota Historical Society 
 12.7   must consult with, and fully consider 
 12.8   proposals from, interested community 
 12.9   groups or individuals who are willing 
 12.10  to provide financial or in-kind support 
 12.11  for site operations. 
 12.12  Subd. 2.  Education and
 12.13  Outreach                          
 12.14      12,727,000     12,727,000
 12.15  Of this amount, $60,000 each year is to 
 12.16  offset the revenue loss from not 
 12.17  charging fees for general tours at the 
 12.18  Capitol.  Notwithstanding Minnesota 
 12.19  Statutes, section 138.668, the 
 12.20  Minnesota Historical Society may not 
 12.21  charge a fee for its general tours at 
 12.22  the Capitol, but may charge fees for 
 12.23  special programs other than general 
 12.24  tours.  
 12.25  Of this amount, $743,000 each year is 
 12.26  for operation of the following 
 12.27  historical sites:  Kelley Farm, Hill 
 12.28  House, Lower Sioux Agency, Fort 
 12.29  Ridgely, Historic Forestville, the 
 12.30  Forest History Center, and the Comstock 
 12.31  House.  This appropriation is added to 
 12.32  the society's base.  This paragraph is 
 12.33  effective the day following final 
 12.34  enactment. 
 12.35  Of this amount, $25,000 each year is 
 12.36  for a grant to the Minnesota 
 12.37  Sesquicentennial Commission for 
 12.38  planning and support of its mission.  
 12.39  This appropriation is added to the 
 12.40  society's general fund base through 
 12.41  fiscal year 2010. 
 12.42  Subd. 3.  Preservation and
 12.43  Access                              
 12.44       9,772,000      9,772,000
 12.45  Subd. 4.  Pass-Through
 12.46  Appropriations                      
 12.47         254,000        127,000
 12.48  (a) Minnesota International Center
 12.49          43,000         42,000 
 12.50  (b) Minnesota Air National
 12.51  Guard Museum
 12.52          16,000        -0- 
 12.53  (c) Minnesota Military Museum
 12.54          67,000        -0- 
 12.55  (d) Farmamerica
 13.1          128,000         85,000 
 13.2   Notwithstanding any other law, this 
 13.3   appropriation may be used for 
 13.4   operations. 
 13.5   (e) Balances Forward
 13.6   Any unencumbered balance remaining in 
 13.7   this subdivision the first year does 
 13.8   not cancel but is available for the 
 13.9   second year of the biennium. 
 13.10  Subd. 5.  Fund Transfer
 13.11  The Minnesota Historical Society may 
 13.12  reallocate funds appropriated in and 
 13.13  between subdivisions 2 and 3 for any 
 13.14  program purposes. 
 13.15  Sec. 10.  BOARD OF THE ARTS
 13.16  Subdivision 1.  Total
 13.17  Appropriation                          8,593,000      8,593,000
 13.18  If the appropriation for either year is 
 13.19  insufficient, the appropriation for the 
 13.20  other year is available. 
 13.21  Subd. 2.  Operations and Services      
 13.22         404,000        404,000
 13.23  Subd. 3.  Grants Programs           
 13.24       5,767,000      5,767,000
 13.25  Subd. 4.  Regional Arts
 13.26  Councils                              
 13.27       2,422,000      2,422,000
 13.28  Sec. 11.  BOARD OF
 13.29  ACCOUNTANCY                              487,000        487,000 
 13.30  Effective the day following final 
 13.31  enactment and no later than June 30, 
 13.32  2006, the Board of Accountancy shall 
 13.33  combine its administrative functions 
 13.34  with those of the Board of 
 13.35  Architecture, Engineering, Land 
 13.36  Surveying, Landscape Architecture, 
 13.37  Geoscience, and Interior Design.  Both 
 13.38  appointed boards would remain intact, 
 13.39  and both would maintain their status as 
 13.40  separate state agencies.  
 13.41  Sec. 12.  BOARD OF ARCHITECTURE,
 13.42  ENGINEERING, LAND SURVEYING,
 13.43  LANDSCAPE ARCHITECTURE, GEOSCIENCE,
 13.44  AND INTERIOR DESIGN                      785,000        785,000 
 13.45  Sec. 13.  BOARD OF BARBER
 13.46  EXAMINERS                                699,000        699,000 
 13.47  Sec. 14.  PUBLIC UTILITIES
 13.48  COMMISSION                             4,163,000      4,163,000 
 13.49  Sec. 15.  BOARD OF ELECTRICITY
 13.50  On or before June 30, 2006, the board 
 14.1   shall transfer $4,000,000 from the 
 14.2   special revenue fund to the general 
 14.3   fund. 
 14.4                              ARTICLE 2  
 14.5                    JOBS AND ECONOMIC DEVELOPMENT 
 14.6      Section 1.  Minnesota Statutes 2004, section 41A.09, 
 14.7   subdivision 2a, is amended to read: 
 14.8      Subd. 2a.  [DEFINITIONS.] For the purposes of this section, 
 14.9   the terms defined in this subdivision have the meanings given 
 14.10  them. 
 14.11     (a) "Ethanol" means fermentation ethyl alcohol derived from 
 14.12  agricultural products, including potatoes, cereal grains, cheese 
 14.13  whey, and sugar beets; forest products; or other renewable 
 14.14  resources, including residue and waste generated from the 
 14.15  production, processing, and marketing of agricultural products, 
 14.16  forest products, and other renewable resources, that: 
 14.17     (1) meets all of the specifications in ASTM specification 
 14.18  ~~D4806-01~~ D4806-04a; and 
 14.19     (2) is denatured as specified in Code of Federal 
 14.20  Regulations, title 27, parts 20 and 21. 
 14.21     (b) "Ethanol plant" means a plant at which ethanol is 
 14.22  produced. 
 14.23     (c) "Commissioner" means the commissioner of agriculture. 
 14.24     Sec. 2.  [45.22] [LICENSE EDUCATION.] 
 14.25     The following fees must be paid to the commissioner: 
 14.26     (1) initial course approval, $10 for each hour or fraction 
 14.27  of one hour of education course approval sought.  Initial course 
 14.28  approval expires on the last day of the 24th month after the 
 14.29  course is approved; 
 14.30     (2) renewal of course approval, $10 per course.  Renewal of 
 14.31  course approval expires on the last day of the 24th month after 
 14.32  the course is renewed; 
 14.33     (3) initial coordinator approval, $100.  Initial 
 14.34  coordinator approval expires on the last day of the 24th month 
 14.35  after the coordinator is approved; and 
 14.36     (4) renewal of coordinator approval, $10.  Renewal of 
 14.37  coordinator approval expires on the last day of the 24th month 
 15.1   after the coordinator is renewed. 
 15.2      Sec. 3.  Minnesota Statutes 2004, section 60A.14, 
 15.3   subdivision 1, is amended to read: 
 15.4      Subdivision 1.  [FEES OTHER THAN EXAMINATION FEES.] In 
 15.5   addition to the fees and charges provided for examinations, the 
 15.6   following fees must be paid to the commissioner for deposit in 
 15.7   the general fund: 
 15.8      (a) by township mutual fire insurance companies; 
 15.9      (1) for filing certificate of incorporation $25 and 
 15.10  amendments thereto, $10; 
 15.11     (2) for filing annual statements, $15; 
 15.12     (3) for each annual certificate of authority, $15; 
 15.13     (4) for filing bylaws $25 and amendments thereto, $10; 
 15.14     (b) by other domestic and foreign companies including 
 15.15  fraternals and reciprocal exchanges; 
 15.16     (1) for filing an application for an initial certification 
 15.17  of authority to be admitted to transact business in this state, 
 15.18  $1,500; 
 15.19     (2) for filing certified copy of certificate of articles of 
 15.20  incorporation, $100; 
 15.21     ~~(2)~~ (3) for filing annual statement, $225; 
 15.22     ~~(3)~~ (4) for filing certified copy of amendment to 
 15.23  certificate or articles of incorporation, $100; 
 15.24     ~~(4)~~ (5) for filing bylaws, $75 or amendments thereto, $75; 
 15.25     ~~(5)~~ (6) for each company's certificate of authority, $575, 
 15.26  annually; 
 15.27     (c) the following general fees apply: 
 15.28     (1) for each certificate, including certified copy of 
 15.29  certificate of authority, renewal, valuation of life policies, 
 15.30  corporate condition or qualification, $25; 
 15.31     (2) for each copy of paper on file in the commissioner's 
 15.32  office 50 cents per page, and $2.50 for certifying the same; 
 15.33     (3) for license to procure insurance in unadmitted foreign 
 15.34  companies, $575; 
 15.35     (4) for valuing the policies of life insurance companies, 
 15.36  one cent per $1,000 of insurance so valued, provided that the 
 16.1   fee shall not exceed $13,000 per year for any company.  The 
 16.2   commissioner may, in lieu of a valuation of the policies of any 
 16.3   foreign life insurance company admitted, or applying for 
 16.4   admission, to do business in this state, accept a certificate of 
 16.5   valuation from the company's own actuary or from the 
 16.6   commissioner of insurance of the state or territory in which the 
 16.7   company is domiciled; 
 16.8      (5) for receiving and filing certificates of policies by 
 16.9   the company's actuary, or by the commissioner of insurance of 
 16.10  any other state or territory, $50; 
 16.11     (6) for each appointment of an agent filed with the 
 16.12  commissioner, $10; 
 16.13     (7) for filing forms and rates, $75 per filing, which may 
 16.14  be paid on a quarterly basis in response to an invoice.  Billing 
 16.15  and payment may be made electronically; 
 16.16     (8) for annual renewal of surplus lines insurer license, 
 16.17  $300; 
 16.18     (9) $250 filing fee for a large risk alternative rating 
 16.19  option plan that meets the $250,000 threshold requirement. 
 16.20     The commissioner shall adopt rules to define filings that 
 16.21  are subject to a fee. 
 16.22     Sec. 4.  Minnesota Statutes 2004, section 60K.55, 
 16.23  subdivision 2, is amended to read: 
 16.24     Subd. 2.  [LICENSING FEES.] (a) In addition to fees 
 16.25  provided for examinations, each insurance producer licensed 
 16.26  under this chapter shall pay to the commissioner a fee of: 
 16.27     (1) ~~$40~~ $50 for an initial life, accident and health, 
 16.28  property, or casualty license issued to an individual insurance 
 16.29  producer, and a fee of ~~$40~~ $50 for each renewal; 
 16.30     (2) ~~$75~~ $50 for an initial variable life and variable 
 16.31  annuity license issued to an individual insurance producer, and 
 16.32  a fee of $50 for each renewal; 
 16.33     (3) ~~$80~~ $50 for an initial personal lines license issued to 
 16.34  an individual insurance producer, and a fee of ~~$80~~ $50 for each 
 16.35  renewal; 
 16.36     (4) ~~$80~~ $50 for an initial limited lines license issued to 
 17.1   an individual insurance producer, and a fee of ~~$80~~ $50 for each 
 17.2   renewal; 
 17.3      (5) $200 for an initial license issued to a business 
 17.4   entity, and a fee of ~~$150~~ $200 for each renewal; and 
 17.5      (6) $500 for an initial surplus lines license, and a fee of 
 17.6   $500 for each renewal. 
 17.7      (b) Initial licenses issued under this chapter are valid 
 17.8   for a period not to exceed 24 months and expire on October 31 of 
 17.9   the renewal year assigned by the commissioner.  Each renewal 
 17.10  insurance producer license is valid for a period of 24 months.  
 17.11  Licensees who submit renewal applications postmarked or 
 17.12  delivered on or before October 15 of the renewal year may 
 17.13  continue to transact business whether or not the renewal license 
 17.14  has been received by November 1.  Licensees who submit 
 17.15  applications postmarked or delivered after October 15 of the 
 17.16  renewal year must not transact business after the expiration 
 17.17  date of the license until the renewal license has been received. 
 17.18     (c) All fees are nonreturnable, except that an overpayment 
 17.19  of any fee may be refunded upon proper application.  
 17.20     Sec. 5.  Minnesota Statutes 2004, section 72B.04, 
 17.21  subdivision 10, is amended to read: 
 17.22     Subd. 10.  [FEES.] A fee of ~~$80~~ $50 is imposed for each 
 17.23  initial license or temporary permit and ~~$80~~ $50 for each renewal 
 17.24  thereof or amendment thereto.  A fee of $20 is imposed for the 
 17.25  registration of each nonlicensed adjuster who is required to 
 17.26  register under section 72B.06.  All fees shall be transmitted to 
 17.27  the commissioner and shall be payable to the Department of 
 17.28  Commerce. 
 17.29     Sec. 6.  Minnesota Statutes 2004, section 82B.09, 
 17.30  subdivision 1, is amended to read: 
 17.31     Subdivision 1.  [AMOUNTS.] The following fees must be paid 
 17.32  to the commissioner:  
 17.33     (1) $150 for each initial individual real estate 
 17.34  appraiser's license~~:  $150 if the license expires more than 12~~ 
 17.35  ~~months after issuance, $100 if the license expires less than 12~~ 
 17.36  ~~months after issuance~~; and ~~a fee of~~ 
 18.1      (2) $100 for each renewal. 
 18.2      Sec. 7.  Minnesota Statutes 2004, section 115C.07, 
 18.3   subdivision 3, is amended to read: 
 18.4      Subd. 3.  [RULES.] (a) The board shall adopt rules 
 18.5   regarding its practices and procedures, the form and procedure 
 18.6   for applications for compensation from the fund, procedures for 
 18.7   investigation of claims and specifying the costs that are 
 18.8   eligible for reimbursement from the fund.  
 18.9      (b) The board may adopt rules requiring certification of 
 18.10  environmental consultants. 
 18.11     (c) The board may adopt other rules necessary to implement 
 18.12  this chapter. 
 18.13     (d) The board may use section 14.389 to adopt rules 
 18.14  specifying the competitive bidding requirements for consultant 
 18.15  services proposals. 
 18.16     (e) The board may use section 14.389 to adopt rules 
 18.17  specifying the written proposal and invoice requirements for 
 18.18  consultant services. 
 18.19     Sec. 8.  Minnesota Statutes 2004, section 115C.09, 
 18.20  subdivision 3h, is amended to read: 
 18.21     Subd. 3h.  [REIMBURSEMENT; ABOVEGROUND TANKS IN BULK 
 18.22  PLANTS.] (a) As used in this subdivision, "bulk plant" means an 
 18.23  aboveground or underground tank facility with a storage capacity 
 18.24  of more than 1,100 gallons but less than 1,000,000 gallons that 
 18.25  is used to dispense petroleum into cargo tanks for 
 18.26  transportation and sale at another location. 
 18.27     (b) Notwithstanding any other provision in this chapter and 
 18.28  any rules adopted pursuant to this chapter, the board shall 
 18.29  reimburse 90 percent of an applicant's cost for bulk plant 
 18.30  upgrades or closures completed between June 1, 1998, and 
 18.31  November 1, 2003, to comply with Minnesota Rules, chapter 7151, 
 18.32  provided that the board determines the costs were incurred and 
 18.33  reasonable.  The reimbursement may not exceed $10,000 per bulk 
 18.34  plant.  The board may provide reimbursement under this paragraph 
 18.35  for work completed after November 1, 2003, if the work was 
 18.36  contracted for prior to that date and was not completed by that 
 19.1   date as a result of an unanticipated situation, provided that an 
 19.2   application for reimbursement under this paragraph, which may be 
 19.3   a renewal of an application previously denied, is submitted 
 19.4   prior to December 31, 2005.  
 19.5      (c) For corrective action at a bulk plant located on what 
 19.6   is or was railroad right-of-way, the board shall reimburse 90 
 19.7   percent of total reimbursable costs on the first $40,000 of 
 19.8   reimbursable costs and 100 percent of any remaining reimbursable 
 19.9   costs when the applicant can document that more than one bulk 
 19.10  plant was operated on the same section of right-of-way, as 
 19.11  determined by the commissioner of commerce. 
 19.12     Sec. 9.  Minnesota Statutes 2004, section 115C.13, is 
 19.13  amended to read: 
 19.14     115C.13 [REPEALER.] 
 19.15     Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 
 19.16  115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 
 19.17  115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112, 
 19.18  115C.113, 115C.12, and 115C.13, are repealed effective June 30, 
 19.19  ~~2007~~ 2012. 
 19.20     Sec. 10.  Minnesota Statutes 2004, section 116C.779, 
 19.21  subdivision 2, is amended to read: 
 19.22     Subd. 2.  [RENEWABLE ENERGY PRODUCTION INCENTIVE.] (a) 
 19.23  Until January 1, 2018, up to ~~$6,000,000~~ $10,900,000 annually 
 19.24  must be allocated from available funds in the account to fund 
 19.25  renewable energy production incentives.  ~~$4,500,000~~ $9,400,000 
 19.26  of this annual amount is for incentives for up to ~~100~~ 200 
 19.27  megawatts of electricity generated by wind energy conversion 
 19.28  systems that are eligible for the incentives under section 
 19.29  216C.41.  The balance of this amount, up to $1,500,000 annually, 
 19.30  may be used for production incentives for on-farm biogas 
 19.31  recovery facilities that are eligible for the incentive under 
 19.32  section 216C.41 or for production incentives for other 
 19.33  renewables, to be provided in the same manner as under section 
 19.34  216C.41.  Any portion of the ~~$6,000,000~~ $10,900,000 not expended 
 19.35  in any calendar year for the incentive is available for other 
 19.36  spending purposes under this section.  This subdivision does not 
 20.1   create an obligation to contribute funds to the account.  
 20.2      (b) The Department of Commerce shall determine eligibility 
 20.3   of projects under section 216C.41 for the purposes of this 
 20.4   subdivision.  At least quarterly, the Department of Commerce 
 20.5   shall notify the public utility of the name and address of each 
 20.6   eligible project owner and the amount due to each project under 
 20.7   section 216C.41.  The public utility shall make payments within 
 20.8   15 working days after receipt of notification of payments due. 
 20.9      Sec. 11.  Minnesota Statutes 2004, section 116J.551, 
 20.10  subdivision 1, is amended to read: 
 20.11     Subdivision 1.  [GRANT ACCOUNT.] A contaminated site 
 20.12  cleanup and development grant account is created in the general 
 20.13  fund.  Money in the account may be used, as appropriated by law, 
 20.14  to make grants as provided in section 116J.554 and to pay for 
 20.15  the commissioner's costs in reviewing applications and making 
 20.16  grants.  Notwithstanding section 16A.28, money appropriated to 
 20.17  the account is available for four years. 
 20.18     Sec. 12.  Minnesota Statutes 2004, section 116J.571, is 
 20.19  amended to read: 
 20.20     116J.571 [CREATION OF ACCOUNTS.] 
 20.21     Two ~~greater Minnesota~~ redevelopment accounts are created, 
 20.22  one in the general fund and one in the bond proceeds fund.  
 20.23  Money in the accounts may be used to make grants as provided in 
 20.24  section 116J.575~~.  Money in the bond proceeds fund may only be~~ 
 20.25  ~~used for eligible costs for publicly owned property.  Money in~~ 
 20.26  ~~the general fund may be used~~ and to pay for the commissioner's 
 20.27  costs in reviewing ~~the~~ applications and making grants. 
 20.28     Sec. 13.  Minnesota Statutes 2004, section 116J.572, is 
 20.29  amended to read: 
 20.30     116J.572 [DEFINITIONS.] 
 20.31     Subdivision 1.  [SCOPE OF APPLICATION.] For purposes of 
 20.32  sections 116J.571 to 116J.575, the terms in this section have 
 20.33  the meanings given. 
 20.34     Subd. 2.  [DEVELOPMENT AUTHORITY.] "Development authority" 
 20.35  includes a statutory or home rule charter city, county, housing 
 20.36  and redevelopment authority, economic development authority, or 
 21.1   port authority ~~located outside~~. 
 21.2      Subd. 2a.  [METROPOLITAN AREA.] "Metropolitan area" means 
 21.3   the seven-county metropolitan area, as defined in section 
 21.4   473.121, subdivision 2. 
 21.5      Subd. 2b.  [MUNICIPALITY.] "Municipality" means the 
 21.6   statutory or home rule charter city, town, or, in the case of 
 21.7   unorganized territory, county in which the redevelopment is 
 21.8   located. 
 21.9      Subd. 3.  [~~ELIGIBLE~~ REDEVELOPMENT COSTS OR COSTS.] 
 21.10  "~~Eligible~~ Redevelopment costs" or "costs" means the costs of 
 21.11  land acquisition, stabilizing unstable soils when infill is 
 21.12  required, demolition, infrastructure improvements, and ponding 
 21.13  or other environmental infrastructure~~; building construction,~~ 
 21.14  ~~design and engineering;~~ and costs necessary for adaptive reuse 
 21.15  of buildings, including remedial activities.  ~~Eligible costs do~~ 
 21.16  ~~not include project administration and legal fees.~~ 
 21.17     ~~Subd. 4.  [REDEVELOPMENT.] "Redevelopment" means recycling~~ 
 21.18  ~~obsolete, abandoned, or underutilized properties for new~~ 
 21.19  ~~industrial, commercial, or residential uses.~~ 
 21.20     Sec. 14.  Minnesota Statutes 2004, section 116J.574, is 
 21.21  amended to read: 
 21.22     116J.574 [GRANT APPLICATIONS.] 
 21.23     Subdivision 1.  [APPLICATION REQUIRED.] To obtain a 
 21.24  redevelopment grant, a development authority shall apply to the 
 21.25  commissioner.  The governing body of the municipality must 
 21.26  approve the application by resolution. 
 21.27     Subd. 2.  [REQUIRED CONTENT.] The commissioner shall 
 21.28  prescribe and provide the application form.  The application 
 21.29  must include at least the following information: 
 21.30     (1) identification of the site; 
 21.31     (2) a redevelopment plan for the site; 
 21.32     (3) a detailed ~~budget~~ estimate, ~~including~~ along with 
 21.33  necessary supporting evidence, of the total redevelopment costs 
 21.34  for the site ~~including the total eligible redevelopment costs~~; 
 21.35     ~~(3) a complete~~ (4) an assessment of the development 
 21.36  potential or likely use of the site after completion of the 
 22.1   redevelopment plan, including any specific commitments from 
 22.2   third parties to construct improvements on the site; 
 22.3      ~~(4) a complete financing plan, including~~ (5) the manner in 
 22.4   which the ~~development authority uses innovative financial~~ 
 22.5   ~~partnerships between government, private for-profit, and~~ 
 22.6   ~~nonprofit sectors~~ municipality will meet the local match 
 22.7   requirement; and 
 22.8      ~~(5)~~ (6) any additional information or material ~~that~~ the 
 22.9   commissioner prescribes. 
 22.10     Sec. 15.  Minnesota Statutes 2004, section 116J.575, as 
 22.11  amended by Laws 2005, chapter 20, article 1, section 33, is 
 22.12  amended to read: 
 22.13     116J.575 [GRANTS.] 
 22.14     Subdivision 1.  [COMMISSIONER DISCRETION.] The commissioner 
 22.15  may make a grant for up to 50 percent of the eligible costs of a 
 22.16  project.  The determination of whether to make a grant for a 
 22.17  site is within the discretion of the commissioner, subject to 
 22.18  this section and sections 116J.571 to 116J.574 and available 
 22.19  unencumbered money in the ~~greater Minnesota~~ redevelopment 
 22.20  account.  Notwithstanding section 116J.573, if the commissioner 
 22.21  determines that the applications for grants for projects in 
 22.22  greater Minnesota are less than the amount of grant funds 
 22.23  available, the commissioner may make grants for projects 
 22.24  anywhere in Minnesota.  The commissioner's decisions and 
 22.25  application of the priorities under this section are not subject 
 22.26  to judicial review, except for abuse of discretion. 
 22.27     Subd. 1a.  [PRIORITIES.] (a) If applications for grants 
 22.28  exceed the available appropriations, grants shall be made for 
 22.29  sites that, in the commissioner's judgment, provide the highest 
 22.30  return in public benefits for the public costs incurred.  
 22.31  "Public benefits" include job creation, environmental benefits 
 22.32  to the state and region, efficient use of public transportation, 
 22.33  efficient use of existing infrastructure, provision of 
 22.34  affordable housing, multiuse development that constitutes 
 22.35  community rebuilding rather than single-use development, crime 
 22.36  reduction, blight reduction, community stabilization, and 
 23.1   property tax base maintenance or improvement.  In making this 
 23.2   judgment, the commissioner shall give priority to redevelopment 
 23.3   projects with one or more of the following characteristics: 
 23.4      (1) the need for redevelopment in conjunction with 
 23.5   contamination remediation needs; 
 23.6      (2) the redevelopment project meets current tax increment 
 23.7   financing requirements for a redevelopment district and tax 
 23.8   increments will contribute to the project; 
 23.9      (3) the redevelopment potential within the municipality; 
 23.10     (4) proximity to public transit if located in the 
 23.11  metropolitan area; and 
 23.12     (5) multijurisdictional projects that take into account the 
 23.13  need for affordable housing, transportation, and environmental 
 23.14  impact. 
 23.15     (b) The factors in paragraph (a) are not listed in a rank 
 23.16  order of priority; rather, the commissioner may weigh each 
 23.17  factor, depending upon the facts and circumstances, as the 
 23.18  commissioner considers appropriate.  
 23.19     Subd. 2.  [APPLICATION CYCLES.] In making grants, the 
 23.20  commissioner shall establish semiannual application deadlines in 
 23.21  which grants will be authorized from all or part of the 
 23.22  available money in the account. 
 23.23     Subd. 3.  [MATCH REQUIRED.] In order to qualify for a grant 
 23.24  under sections 116J.571 to 116J.575, the municipality must pay 
 23.25  for at least one-half of the redevelopment costs as a local 
 23.26  match from any money available to the municipality. 
 23.27     Sec. 16.  Minnesota Statutes 2004, section 116J.63, 
 23.28  subdivision 2, is amended to read: 
 23.29     Subd. 2.  [FEES.] (a) Fees for reports, publications, or 
 23.30  related publicity or promotional material are not subject to the 
 23.31  rulemaking requirements of chapter 14 and are not subject to 
 23.32  section 16A.1285.  The fees prescribed by the commissioner must 
 23.33  be commensurate with the distribution objective of the 
 23.34  department for the material produced or with the cost of 
 23.35  furnishing the services.  Except as described in paragraph (b), 
 23.36  all fees for materials and services must be deposited in the 
 24.1   general fund. 
 24.2      (b) The commissioner may sell marketing materials at cost 
 24.3   to economic development organizations and others in quantities 
 24.4   that would not otherwise be available through general fund 
 24.5   appropriations.  Funds received must be placed in a special 
 24.6   revolving account and are appropriated to the commissioner to 
 24.7   pay for the production of the materials. 
 24.8      Sec. 17.  Minnesota Statutes 2004, section 116J.8731, 
 24.9   subdivision 5, is amended to read: 
 24.10     Subd. 5.  [GRANT LIMITS.] A Minnesota investment fund grant 
 24.11  may not be approved for an amount in excess of $1,000,000.  This 
 24.12  limit covers all money paid to complete the same project, 
 24.13  whether paid to one or more grant recipients and whether paid in 
 24.14  one or more fiscal years.  ~~The portion~~ A local community or 
 24.15  recognized Indian tribal government may retain 20 percent, but 
 24.16  not more than $100,000 of a Minnesota investment fund grant ~~that~~ 
 24.17  ~~exceeds $100,000 must be repaid to the state~~ when it is repaid 
 24.18  to the local community or recognized Indian tribal government by 
 24.19  the person or entity to which it was loaned by the local 
 24.20  community or Indian tribal government.  Money repaid to the 
 24.21  state must be credited to a Minnesota investment revolving loan 
 24.22  account in the state treasury.  Funds in the account are 
 24.23  appropriated to the commissioner and must be used in the same 
 24.24  manner as are funds appropriated to the Minnesota investment 
 24.25  fund.  Funds repaid to the state through existing Minnesota 
 24.26  investment fund agreements must be credited to the Minnesota 
 24.27  investment revolving loan account effective July 1, 2003.  A 
 24.28  grant or loan may not be made to a person or entity for the 
 24.29  operation or expansion of a casino or a store which is used 
 24.30  solely or principally for retail sales.  Persons or entities 
 24.31  receiving grants or loans must pay each employee total 
 24.32  compensation, including benefits not mandated by law, that on an 
 24.33  annualized basis is equal to at least 110 percent of the federal 
 24.34  poverty level for a family of four. 
 24.35     Sec. 18.  Minnesota Statutes 2004, section 116J.8747, 
 24.36  subdivision 2, is amended to read: 
 25.1      Subd. 2.  [QUALIFIED JOB TRAINING PROGRAM.] To qualify for 
 25.2   grants under this section, a job training program must satisfy 
 25.3   the following requirements: 
 25.4      (1) the program must be operated by a nonprofit corporation 
 25.5   that qualifies under section 501(c)(3) of the Internal Revenue 
 25.6   Code; 
 25.7      (2) the program must spend at least $15,000 per graduate of 
 25.8   the program; 
 25.9      (3) the program must provide education and training in: 
 25.10     (i) basic skills, such as reading, writing, mathematics, 
 25.11  and communications; 
 25.12     (ii) thinking skills, such as reasoning, creative thinking, 
 25.13  decision making, and problem solving; and 
 25.14     (iii) personal qualities, such as responsibility, 
 25.15  self-esteem, self-management, honesty, and integrity; 
 25.16     (4) the program must provide income supplements, when 
 25.17  needed, to participants for housing, counseling, tuition, and 
 25.18  other basic needs; 
 25.19     (5) the program's education and training course must last 
 25.20  for an average of at least six months; 
 25.21     (6) individuals served by the program must: 
 25.22     (i) be 18 years of age or older; 
 25.23     (ii) have federal adjusted gross income of no more than 
 25.24  $11,000 per year in the ~~two years~~ calendar year immediately 
 25.25  before entering the program; 
 25.26     (iii) have assets of no more than $7,000, excluding the 
 25.27  value of a homestead; and 
 25.28     (iv) not have been claimed as a dependent on the federal 
 25.29  tax return of another person in the previous taxable year; and 
 25.30     (7) the program must be certified by the commissioner of 
 25.31  employment and economic development as meeting the requirements 
 25.32  of this subdivision. 
 25.33     Sec. 19.  Minnesota Statutes 2004, section 116J.994, 
 25.34  subdivision 7, is amended to read: 
 25.35     Subd. 7.  [REPORTS BY RECIPIENTS TO GRANTORS.] (a) A 
 25.36  business subsidy grantor must monitor the progress by the 
 26.1   recipient in achieving agreement goals. 
 26.2      (b) A recipient must provide information regarding goals 
 26.3   and results for two years after the benefit date or until the 
 26.4   goals are met, whichever is later.  If the goals are not met, 
 26.5   the recipient must continue to provide information on the 
 26.6   subsidy until the subsidy is repaid.  The information must be 
 26.7   filed on forms developed by the commissioner in cooperation with 
 26.8   representatives of local government.  Copies of the completed 
 26.9   forms must be sent to the local government agency that provided 
 26.10  the subsidy or to the commissioner if the grantor is a state 
 26.11  agency.  If the Iron Range Resources and Rehabilitation Board is 
 26.12  the grantor, the copies must be sent to the board.  The report 
 26.13  must include: 
 26.14     (1) the type, public purpose, and amount of subsidies and 
 26.15  type of district, if the subsidy is tax increment financing; 
 26.16     (2) the hourly wage of each job created with separate bands 
 26.17  of wages; 
 26.18     (3) the sum of the hourly wages and cost of health 
 26.19  insurance provided by the employer with separate bands of wages; 
 26.20     (4) the date the job and wage goals will be reached; 
 26.21     (5) a statement of goals identified in the subsidy 
 26.22  agreement and an update on achievement of those goals; 
 26.23     (6) the location of the recipient prior to receiving the 
 26.24  business subsidy; 
 26.25     (7) the number of employees who ceased to be employed by 
 26.26  the recipient when the recipient relocated to become eligible 
 26.27  for the business subsidy; 
 26.28     (8) why the recipient did not complete the project outlined 
 26.29  in the subsidy agreement at their previous location, if the 
 26.30  recipient was previously located at another site in Minnesota; 
 26.31     ~~(8)~~ (9) the name and address of the parent corporation of 
 26.32  the recipient, if any; 
 26.33     ~~(9)~~ (10) a list of all financial assistance by all grantors 
 26.34  for the project; and 
 26.35     ~~(10)~~ (11) other information the commissioner may request. 
 26.36  A report must be filed no later than March 1 of each year for 
 27.1   the previous year.  The local agency and the Iron Range 
 27.2   Resources and Rehabilitation Board must forward copies of the 
 27.3   reports received by recipients to the commissioner by April 1.  
 27.4      (c) Financial assistance that is excluded from the 
 27.5   definition of "business subsidy" by section 116J.993, 
 27.6   subdivision 3, clauses (4), (5), (8), and (16), is subject to 
 27.7   the reporting requirements of this subdivision, except that the 
 27.8   report of the recipient must include instead:  
 27.9      (1) the type, public purpose, and amount of the financial 
 27.10  assistance, and type of district if the assistance is tax 
 27.11  increment financing; 
 27.12     (2) progress towards meeting goals stated in the assistance 
 27.13  agreement and the public purpose of the assistance; 
 27.14     (3) if the agreement includes job creation, the hourly wage 
 27.15  of each job created with separate bands of wages; 
 27.16     (4) if the agreement includes job creation, the sum of the 
 27.17  hourly wages and cost of health insurance provided by the 
 27.18  employer with separate bands of wages; 
 27.19     (5) the location of the recipient prior to receiving the 
 27.20  assistance; and 
 27.21     (6) other information the grantor requests. 
 27.22     (d) If the recipient does not submit its report, the local 
 27.23  government agency must mail the recipient a warning within one 
 27.24  week of the required filing date.  If, after 14 days of the 
 27.25  postmarked date of the warning, the recipient fails to provide a 
 27.26  report, the recipient must pay to the grantor a penalty of $100 
 27.27  for each subsequent day until the report is filed.  The maximum 
 27.28  penalty shall not exceed $1,000.  
 27.29     Sec. 20.  Minnesota Statutes 2004, section 116J.994, 
 27.30  subdivision 9, is amended to read: 
 27.31     Subd. 9.  [COMPILATION AND SUMMARY REPORT.] The Department 
 27.32  of Employment and Economic Development must publish a 
 27.33  compilation and summary of the results of the reports for the 
 27.34  previous two calendar years by December 1 of 2004 and every 
 27.35  other year thereafter.  The reports of the government agencies 
 27.36  to the department and the compilation and summary report of the 
 28.1   department must be made available to the public. 
 28.2      The commissioner must coordinate the production of reports 
 28.3   so that useful comparisons across time periods and across 
 28.4   grantors can be made.  The commissioner may add other 
 28.5   information to the report as the commissioner deems necessary to 
 28.6   evaluate business subsidies.  Among the information in the 
 28.7   summary and compilation report, the commissioner must include: 
 28.8      (1) total amount of subsidies awarded in each development 
 28.9   region of the state; 
 28.10     (2) distribution of business subsidy amounts by size of the 
 28.11  business subsidy; 
 28.12     (3) distribution of business subsidy amounts by time 
 28.13  category; 
 28.14     (4) distribution of subsidies by type and by public 
 28.15  purpose; 
 28.16     (5) percent of all business subsidies that reached their 
 28.17  goals; 
 28.18     (6) percent of business subsidies that did not reach their 
 28.19  goals by two years from the benefit date; 
 28.20     (7) total dollar amount of business subsidies that did not 
 28.21  meet their goals after two years from the benefit date; 
 28.22     (8) percent of subsidies that did not meet their goals and 
 28.23  that did not receive repayment; 
 28.24     (9) list of recipients that have failed to meet the terms 
 28.25  of a subsidy agreement in the past five years and have not 
 28.26  satisfied their repayment obligations; 
 28.27     (10) number of part-time and full-time jobs within separate 
 28.28  bands of wages for the entire state and for each development 
 28.29  region of the state; ~~and~~ 
 28.30     (11) benefits paid within separate bands of wages for the 
 28.31  entire state and for each development region of the state; and 
 28.32     (12) number of employees in the entire state and in each 
 28.33  development region of the state who ceased to be employed 
 28.34  because their employers relocated to become eligible for a 
 28.35  business subsidy.  
 28.36     Sec. 21.  Minnesota Statutes 2004, section 116L.03, 
 29.1   subdivision 2, is amended to read: 
 29.2      Subd. 2.  [APPOINTMENT.] The Minnesota Job Skills 
 29.3   Partnership Board consists of:  seven members appointed by the 
 29.4   governor, ~~the chair of the governor's Workforce Development~~ 
 29.5   ~~Council,~~ the commissioner of employment and economic 
 29.6   development, the chancellor, or the chancellor's designee, of 
 29.7   the Minnesota State Colleges and Universities, the president, or 
 29.8   the president's designee, of the University of Minnesota, and 
 29.9   two nonlegislator members, one appointed by the Subcommittee on 
 29.10  Committees of the senate Committee on Rules and Administration 
 29.11  and one appointed by the speaker of the house.  If the 
 29.12  chancellor or the president of the university makes a 
 29.13  designation under this subdivision, the designee must have 
 29.14  experience in technical education.  Four of the appointed 
 29.15  members must be members of the governor's Workforce Development 
 29.16  Council, of whom two must represent organized labor and two must 
 29.17  represent business and industry.  One of the appointed members 
 29.18  must be a representative of a nonprofit organization that 
 29.19  provides workforce development or job training services. 
 29.20     Sec. 22.  Minnesota Statutes 2004, section 116L.05, is 
 29.21  amended by adding a subdivision to read: 
 29.22     Subd. 5.  [USE OF WORKFORCE DEVELOPMENT FUNDS.] After March 
 29.23  1 of any fiscal year, the board may use workforce development 
 29.24  funds for the purposes outlined in sections 116L.04, 116L.06, 
 29.25  and 116L.10 to 116L.14, or to provide incumbent worker training 
 29.26  services under section 116L.18 if the following conditions have 
 29.27  been met: 
 29.28     (1) the board examines relevant economic indicators, 
 29.29  including the projected number of layoffs for the remainder of 
 29.30  the fiscal year and the next fiscal year, evidence of declining 
 29.31  and expanding industries, the number of initial applications for 
 29.32  and the number of exhaustions of unemployment benefits, job 
 29.33  vacancy data, and any additional relevant information brought to 
 29.34  the board's attention; 
 29.35     (2) the board accounts for all allocations made in section 
 29.36  116L.17, subdivision 2; 
 30.1      (3) based on the past expenditures and projected revenue, 
 30.2   the board estimates future funding needs for services under 
 30.3   section 116L.17 for the remainder of the current fiscal year and 
 30.4   the next fiscal year; 
 30.5      (4) the board determines there will be unspent funds after 
 30.6   meeting the needs of dislocated workers in the current fiscal 
 30.7   year and there will be sufficient revenue to meet the needs of 
 30.8   dislocated workers in the next fiscal year; and 
 30.9      (5) the board reports its findings in clauses (1) to (4) to 
 30.10  the chairs of legislative committees with jurisdiction over the 
 30.11  workforce development fund, to the commissioners of revenue and 
 30.12  finance, and to the public. 
 30.13     Sec. 23.  Minnesota Statutes 2004, section 116L.17, 
 30.14  subdivision 1, is amended to read: 
 30.15     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 30.16  section, the following terms have the meanings given them in 
 30.17  this subdivision. 
 30.18     (b) "Commissioner" means the commissioner of employment and 
 30.19  economic development. 
 30.20     (c) "Dislocated worker" means an individual who is a 
 30.21  resident of Minnesota at the time employment ceased or was 
 30.22  working in the state at the time employment ceased and: 
 30.23     (1) has been permanently separated or has received a notice 
 30.24  of permanent separation from public or private sector employment 
 30.25  and is eligible for or has exhausted entitlement to unemployment 
 30.26  benefits, and is unlikely to return to the previous industry or 
 30.27  occupation; 
 30.28     (2) has been long-term unemployed and has limited 
 30.29  opportunities for employment or reemployment in the same or a 
 30.30  similar occupation in the area in which the individual resides, 
 30.31  including older individuals who may have substantial barriers to 
 30.32  employment by reason of age; 
 30.33     (3) has been self-employed, including farmers and ranchers, 
 30.34  and is unemployed as a result of general economic conditions in 
 30.35  the community in which the individual resides or because of 
 30.36  natural disasters; or 
 31.1      (4) is a displaced homemaker.  A "displaced homemaker" is 
 31.2   an individual who has spent a substantial number of years in the 
 31.3   home providing homemaking service and (i) has been dependent 
 31.4   upon the financial support of another; and now due to divorce, 
 31.5   separation, death, or disability of that person, must find 
 31.6   employment to self support; or (ii) derived the substantial 
 31.7   share of support from public assistance on account of dependents 
 31.8   in the home and no longer receives ~~such support~~ cash assistance 
 31.9   under chapter 256J. 
 31.10     To be eligible under this clause, the support must have 
 31.11  ceased while the worker resided in Minnesota.  
 31.12     (d) "Eligible organization" means a state or local 
 31.13  government unit, nonprofit organization, community action 
 31.14  agency, business organization or association, or labor 
 31.15  organization. 
 31.16     (e) "Plant closing" means the announced or actual permanent 
 31.17  shutdown of a single site of employment, or one or more 
 31.18  facilities or operating units within a single site of employment.
 31.19     (f) "Substantial layoff" means a permanent reduction in the 
 31.20  workforce, which is not a result of a plant closing, and which 
 31.21  results in an employment loss at a single site of employment 
 31.22  during any 30-day period for at least 50 employees excluding 
 31.23  those employees that work less than 20 hours per week. 
 31.24     Sec. 24.  [116L.18] [SPECIAL INCUMBENT WORKER TRAINING 
 31.25  GRANTS.] 
 31.26     Subdivision 1.  [PURPOSE.] The purpose of the special 
 31.27  incumbent worker training grants is to expand opportunities for 
 31.28  businesses and workers to gain new skills that are in demand in 
 31.29  the Minnesota economy.  The board shall establish criteria for 
 31.30  incumbent worker grants under this section and may encourage 
 31.31  creative training models, innovative partnerships, and expansion 
 31.32  or replication of promising practices.  
 31.33     Subd. 2.  [DEFINITIONS.] (a) For the purposes of this 
 31.34  section, the following terms have the meanings given them. 
 31.35     (b) "Incumbent worker" means an individual employed by a 
 31.36  qualifying employer.  
 32.1      (c) "Qualifying employer" means a for-profit business or 
 32.2   nonprofit organization in Minnesota with at least one full-time 
 32.3   paid employee.  Public sector organizations are not considered 
 32.4   qualifying employers.  
 32.5      (d) "Eligible organization" has the meaning given in 
 32.6   section 116L.17. 
 32.7      Subd. 3.  [AMOUNT OF GRANTS.] A grant to an eligible 
 32.8   organization may not exceed $400,000. 
 32.9      Subd. 4.  [MATCHING FUNDS.] The board shall require 
 32.10  matching funds from qualifying employers in the form of funding, 
 32.11  equipment, or faculty. 
 32.12     Subd. 5.  [USE OF FUNDS.] Eligible organizations shall use 
 32.13  funds granted under this section for direct training services to 
 32.14  provide a measurable increase in the job-related skills of 
 32.15  participating incumbent workers.  Eligible organizations may 
 32.16  also provide basic assessment, counseling, and preemployment 
 32.17  training services requested by the qualifying employer.  No 
 32.18  funds may be used for support services as described in section 
 32.19  116L.17, subdivision 4, clause (2).  
 32.20     Subd. 6.  [PERFORMANCE OUTCOME MEASURES.] The board and the 
 32.21  commissioner of employment and economic development shall 
 32.22  jointly develop performance outcome measures and standards for 
 32.23  this program.  The commissioner and board shall consult with 
 32.24  eligible organizations in establishing standards.  Measures at a 
 32.25  minimum must include posttraining retention, promotion, and wage 
 32.26  increase.  The board and commissioner shall provide a report to 
 32.27  the legislature by March 1 of each year on the previous fiscal 
 32.28  year's program performance.  Eligible organizations must provide 
 32.29  performance data in a timely manner for the completion of this 
 32.30  report. 
 32.31     Sec. 25.  Minnesota Statutes 2004, section 116L.20, 
 32.32  subdivision 2, is amended to read: 
 32.33     Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
 32.34  The money collected under this section shall be deposited in the 
 32.35  state treasury and credited to the workforce development fund to 
 32.36  provide for employment and training programs.  The workforce 
 33.1   development fund is created as a special account in the state 
 33.2   treasury. 
 33.3      (b) All money in the fund not otherwise appropriated or 
 33.4   transferred is appropriated to the Job Skills Partnership Board 
 33.5   for the purposes of section 116L.17 and as provided for in 
 33.6   paragraph (d).  The board must act as the fiscal agent for the 
 33.7   money and must disburse that money for the purposes of section 
 33.8   116L.17, not allowing the money to be used for any other 
 33.9   obligation of the state.  All money in the workforce development 
 33.10  fund shall be deposited, administered, and disbursed in the same 
 33.11  manner and under the same conditions and requirements as are 
 33.12  provided by law for the other special accounts in the state 
 33.13  treasury, except that all interest or net income resulting from 
 33.14  the investment or deposit of money in the fund shall accrue to 
 33.15  the fund for the purposes of the fund. 
 33.16     (c) Reimbursement for costs related to collection of the 
 33.17  special assessment shall be in an amount negotiated between the 
 33.18  commissioner and the United States Department of Labor. 
 33.19     (d) If the board determines that the conditions of section 
 33.20  116L.05, subdivision 5, have been met, the board may use funds 
 33.21  for the purposes outlined in sections 116L.04, 116L.06, and 
 33.22  116L.10 to 116L.14, or to provide incumbent worker training 
 33.23  services under section 116L.18. 
 33.24     Sec. 26.  Minnesota Statutes 2004, section 183.41, is 
 33.25  amended by adding a subdivision to read: 
 33.26     Subd. 4.  [ANNUAL PERMIT.] The commissioner shall issue an 
 33.27  annual permit to a boat for the purpose of carrying passengers 
 33.28  for hire on the inland waters of the state provided the boat 
 33.29  satisfies the inspection requirements of this section.  A boat 
 33.30  subject to inspection under this chapter shall be registered 
 33.31  with the Division of Boiler Inspection and shall be inspected 
 33.32  before a permit may be issued. 
 33.33     Sec. 27.  Minnesota Statutes 2004, section 183.411, 
 33.34  subdivision 2a, is amended to read: 
 33.35     Subd. 2a.  [INSPECTION FEES.] The ~~commissioner may set fees~~ 
 33.36  fee for inspecting traction engines, show boilers, and show 
 34.1   engines shall be the hourly rate pursuant to section 
 34.2   ~~16A.1285~~ 183.545, subdivision 3a. 
 34.3      Sec. 28.  Minnesota Statutes 2004, section 183.411, 
 34.4   subdivision 3, is amended to read: 
 34.5      Subd. 3.  [LICENSES.] A license to operate steam farm 
 34.6   traction engines, portable and stationary show engines and 
 34.7   portable and stationary show boilers shall be issued to an 
 34.8   applicant who: 
 34.9      ~~(a)~~ (1) is 18 years of age or older; 
 34.10     ~~(b)~~ (2) has a licensed second class or higher class 
 34.11  engineer or steam traction (hobby) engineer sign the affidavit 
 34.12  attesting to the applicant's competence in operating said 
 34.13  devices; 
 34.14     ~~(c)~~ (3) passes a written test for competence in operating 
 34.15  said devices; 
 34.16     ~~(d)~~ (4) has at least 25 hours of actual operating 
 34.17  experience on said devices; and 
 34.18     ~~(e)~~ (5) pays the required fee. 
 34.19     A license shall be valid for the lifetime of the licensee.  
 34.20  A onetime fee ~~set by the commissioner~~ pursuant to section 
 34.21  ~~16A.1285~~ 183.545, subdivision 4, shall be charged for the 
 34.22  license. 
 34.23     Sec. 29.  Minnesota Statutes 2004, section 183.42, is 
 34.24  amended to read: 
 34.25     183.42 [INSPECTION ~~EACH YEAR~~ AND REGISTRATION.] 
 34.26     Subdivision 1.  [INSPECTION.] Every owner, lessee, or other 
 34.27  person having charge of boilers~~,~~ or pressure vessels~~, or any~~ 
 34.28  ~~boat~~ subject to inspection under this chapter shall cause them 
 34.29  to be inspected by the Division of Boiler Inspection.  
 34.30  Boilers ~~and boats~~ subject to inspection under this chapter must 
 34.31  be inspected at least annually and pressure vessels inspected at 
 34.32  least every two years except as provided under section 
 34.33  183.45.  ~~A person who fails to have the inspection required by~~ 
 34.34  ~~this section shall pay to the commissioner a penalty in the~~ 
 34.35  ~~amount of the cost of inspection up to a maximum of $1,000.~~  The 
 34.36  commissioner shall assess a $250 penalty per applicable boiler 
 35.1   or pressure vessel for failure to have the inspection required 
 35.2   by this section and may seal the boiler or pressure vessel for 
 35.3   refusal to allow an inspection as required by this section. 
 35.4      Subd. 2.  [REGISTRATION.] Every owner, lessee, or other 
 35.5   person having charge of boilers or pressure vessels subject to 
 35.6   inspection under this chapter shall register said objects with 
 35.7   the Division of Boiler Inspection.  The registration shall be 
 35.8   renewed annually and is applicable to each object separately.  
 35.9   The fee for registration of a boiler or pressure vessel shall be 
 35.10  pursuant to section 183.545, subdivision 10.  The Division of 
 35.11  Boiler Inspection may issue a billing statement for each boiler 
 35.12  and pressure vessel on record with the division, and may 
 35.13  determine a monthly schedule of billings to be followed for 
 35.14  owners, lessees, or other persons having charge of a boiler or 
 35.15  pressure vessel subject to inspection under this chapter. 
 35.16     Subd. 3.  [CERTIFICATE OF REGISTRATION.] The Division of 
 35.17  Boiler Inspection shall issue a certificate of registration that 
 35.18  lists the boilers and pressure vessels at the location, 
 35.19  expiration date of the certificate of registration, last 
 35.20  inspection date of each boiler and pressure vessel, and maximum 
 35.21  allowable working pressure for each boiler and pressure vessel.  
 35.22  The commissioner may make an electronic certificate of 
 35.23  registration available to be printed by the owner, lessee, or 
 35.24  other person having charge of the boiler or pressure vessel. 
 35.25     Sec. 30.  Minnesota Statutes 2004, section 183.44, 
 35.26  subdivision 1, is amended to read: 
 35.27     Subdivision 1.  [MASTERS ~~AND PILOTS~~.] The ~~Division of~~ 
 35.28  ~~Boiler Inspection~~ commissioner or the commissioner's designee 
 35.29  shall examine all masters ~~and pilots~~ of boats and vessels 
 35.30  carrying passengers for hire on the inland waters of the state 
 35.31  as to their qualifications and fitness.  If found ~~trustworthy~~ 
 35.32  qualified and competent to perform their duties as a master ~~or~~ 
 35.33  ~~pilot~~ of a boat carrying passengers for hire, they shall be 
 35.34  ~~given~~ issued a ~~certificate~~ license authorizing them to act as 
 35.35  such on the inland waters of the state.  The license shall be 
 35.36  renewed annually.  Fees for the original issue and renewal of 
 36.1   the license authorized under this section shall be pursuant to 
 36.2   section 183.545, subdivision 2. 
 36.3      Sec. 31.  Minnesota Statutes 2004, section 183.51, 
 36.4   subdivision 2, is amended to read: 
 36.5      Subd. 2.  [APPLICATIONS.] Any person who desires an 
 36.6   engineer's license shall ~~make~~ submit a written application, on 
 36.7   blanks furnished by the ~~inspector.  The person shall also~~ 
 36.8   ~~successfully pass a written examination for such grade of~~ 
 36.9   ~~license applied for~~ commissioner or designee, at least 15 days 
 36.10  before the requested exam date.  The application is valid for 
 36.11  one year from the date the commissioner or designee received the 
 36.12  application. 
 36.13     Sec. 32.  Minnesota Statutes 2004, section 183.51, is 
 36.14  amended by adding a subdivision to read: 
 36.15     Subd. 2a.  [EXAMINATIONS.] Each applicant for a license 
 36.16  must pass an examination approved by the commissioner.  The 
 36.17  examinations shall be of sufficient scope to establish the 
 36.18  competency of the applicant to operate a boiler of the 
 36.19  applicable license class and grade. 
 36.20     Sec. 33.  Minnesota Statutes 2004, section 183.545, is 
 36.21  amended to read: 
 36.22     183.545 [FEES FOR INSPECTION.] 
 36.23     Subdivision 1.  [FEE AMOUNT; VESSELS OPERATED ON INLAND 
 36.24  WATERS.] The fees for the inspection of the hull, boiler, 
 36.25  machinery, and equipments of vessels ~~are to be set by the~~ 
 36.26  ~~commissioner pursuant to section 16A.1285, for vessels of 50~~ 
 36.27  ~~tons burden or over and vessels of less than 50 tons~~ 
 36.28  ~~burden.~~ operated on inland waters and that carry passengers for 
 36.29  hire are as follows: 
 36.30     (1) annual operating permit and safety inspections shall be 
 36.31  $200; and 
 36.32     (2) other inspections, including dry-dock inspections, boat 
 36.33  stability tests, and plan reviews, are billed at the hourly rate 
 36.34  set in subdivision 3a. 
 36.35     Subd. 2.  [FEE AMOUNTS; MASTERS ~~AND PILOTS~~.] The 
 36.36  ~~commissioner shall, pursuant to section 16A.1285, set~~ 
 37.1   ~~the~~ license and application fee for ~~an examination of an~~ 
 37.2   ~~applicant for~~ a master's ~~or pilot's~~ license is $50, ~~for an~~ or 
 37.3   $20 if the applicant possesses a valid, unlimited, current 
 37.4   United States Coast Guard master's license.  The annual renewal 
 37.5   of a master's ~~or a pilot's~~ license~~, and for an~~ is $20.  The 
 37.6   annual renewal if paid later than ~~ten~~ 30 days after 
 37.7   expiration is $35.  The fee for replacement of a current, valid 
 37.8   license is $20. 
 37.9      Subd. 3.  [BOILER AND PRESSURE VESSEL INSPECTION FEES.] The 
 37.10  fees for the annual inspection of boilers and biennial 
 37.11  inspection of pressure vessels are ~~to be set by the commissioner~~ 
 37.12  ~~pursuant to section 16A.1285, for~~ as follows: 
 37.13     ~~(a)~~ (1) boiler inaccessible for internal inspection, $55; 
 37.14     ~~(b)~~ (2) boiler accessible for internal inspection, $55; 
 37.15     ~~(c)~~ (3) boiler internal inspection over 2,000 square feet 
 37.16  heating surface shall be billed at the hourly rate set in 
 37.17  subdivision 3a; 
 37.18     ~~(d) boiler internal inspection over 4,000 square feet~~ 
 37.19  ~~heating surface;~~ 
 37.20     ~~(e) boiler internal inspection over 10,000 square feet~~ 
 37.21  ~~heating surface;~~ 
 37.22     ~~(f)~~ (4) boiler accessible for internal inspection requiring 
 37.23  one-half day or more of inspection time shall be billed at the 
 37.24  ~~established shop inspection fee~~ hourly rate set in subdivision 
 37.25  3a; 
 37.26     ~~(g)~~ (5) pressure vessel for internal inspection via 
 37.27  manhole, $35; and 
 37.28     ~~(h)~~ (6) pressure vessel inaccessible for internal 
 37.29  inspection, $35.  
 37.30     ~~An additional fee based on the scale of fees applicable to~~ 
 37.31  ~~an inspection shall be charged when it is necessary to make a~~ 
 37.32  ~~special trip for a hydrostatic test of a boiler or pressure~~ 
 37.33  ~~vessel.~~  
 37.34     Subd. 3a.  [HOURLY RATE.] The ~~commissioner shall, pursuant~~ 
 37.35  ~~to section 16A.1285, set shop inspection fees~~ hourly rate for an 
 37.36  inspection not set elsewhere in this chapter is $80 per hour.  
 38.1   Inspection time includes all time related to the ~~shop~~ 
 38.2   inspection.  Travel time, billed at the hourly rate, and travel 
 38.3   expenses shall be billed for shop inspections, triennial audits, 
 38.4   boat stability tests, hydrostatic tests of a boiler or pressure 
 38.5   vessel, or any other inspection or consultation requiring a 
 38.6   special trip. 
 38.7      Subd. 4.  [~~APPLICANTS~~ BOILER ENGINEER LICENSE FEES.] ~~The~~ 
 38.8   ~~commissioner shall, pursuant to section 16A.1285, set the fee~~ 
 38.9   ~~for an examination of an applicant~~ For the following licenses, 
 38.10  the nonrefundable license and application fee is: 
 38.11     ~~(a)~~ (1) chief engineer's license, $50; 
 38.12     ~~(b)~~ (2) first class engineer's license, $50; 
 38.13     ~~(c)~~ (3) second class engineer's license, $50; 
 38.14     ~~(d)~~ (4) special engineer's license, $20; and 
 38.15     ~~(e)~~ (5) traction or hobby boiler engineer's license~~; and~~, 
 38.16  $50. 
 38.17     ~~(f) pilot's license.~~ 
 38.18     ~~If an applicant, after an examination, is entitled to~~ 
 38.19  ~~receive a license, it shall be issued without the payment of any~~ 
 38.20  ~~additional charge.  Any license so issued expires one year after~~ 
 38.21  ~~the date of its issuance.~~  An engineer's license may be renewed 
 38.22  upon application ~~therefor~~ and ~~the~~ payment of an annual renewal 
 38.23  fee ~~as set by the commissioner pursuant to section 16A.1285~~ of 
 38.24  $20.  The annual renewal, if paid later than 30 days after 
 38.25  expiration, is $35.  The fee for replacement of a current, valid 
 38.26  license is $20.  
 38.27     Subd. 6.  [NATIONAL BOARD INSPECTORS.] The fee for an 
 38.28  examination of an applicant for a National Board of Boiler and 
 38.29  Pressure Vessels Inspectors commission ~~shall be set by the~~ 
 38.30  ~~commissioner pursuant to section 16A.1285~~ is $100.  
 38.31     Subd. 7.  [NUCLEAR ENDORSEMENT.] The fee for each 
 38.32  examination of an applicant for a National Board of Boiler and 
 38.33  Pressure Vessels commissioned inspectors nuclear endorsement 
 38.34  ~~shall be set by the commissioner pursuant to section 16A.1285~~ is 
 38.35  $100. 
 38.36     Subd. 8.  [CERTIFICATE OF COMPETENCY.] The fee for issuance 
 39.1   of the original state of Minnesota certificate of competency for 
 39.2   inspectors ~~shall be set by the commissioner pursuant to section~~ 
 39.3   ~~16A.1285~~ is $50.  This fee is waived for inspectors who paid the 
 39.4   examination fee.  The fee for an annual renewal of the state of 
 39.5   Minnesota certificate of competency ~~shall be set by the~~ 
 39.6   ~~commissioner pursuant to section 16A.1285~~ is $35, and is due 
 39.7   January 1 of each year.  The fee for replacement of a current, 
 39.8   valid license is $35. 
 39.9      Subd. 9.  [DEPOSIT OF FEES.] Fees received under this 
 39.10  section ~~and section 183.57~~ must be deposited in the state 
 39.11  treasury and credited to the general fund. 
 39.12     Subd. 10.  [BOILER AND PRESSURE VESSEL REGISTRATION 
 39.13  FEE.] The annual registration fee for boilers and pressure 
 39.14  vessels in use and required to be inspected per section 183.42 
 39.15  shall be $10 per boiler and pressure vessel. 
 39.16     Sec. 34.  Minnesota Statutes 2004, section 183.57, is 
 39.17  amended to read: 
 39.18     183.57 [REPORT OF INSURER; EXEMPTION FROM INSPECTION.] 
 39.19     Subdivision 1.  [REPORT REQUIRED.] Any insurance company 
 39.20  insuring boilers and pressure vessels in this state shall ~~make a~~ 
 39.21  ~~written~~ file a report ~~thereof~~ showing the date of inspection, 
 39.22  the name of the person making the inspection, the condition of 
 39.23  the boiler or pressure vessel as disclosed by the inspection, 
 39.24  whether the ~~same is~~ boiler was operated by a properly licensed 
 39.25  engineer, ~~and~~ whether a policy of insurance has been issued by 
 39.26  the company with reference to the boiler or pressure vessel, and 
 39.27  other information as directed by the chief boiler inspector.  
 39.28  Within ~~15~~ 21 days after the inspection, the insurance company 
 39.29  shall ~~mail a copy of~~ file the report ~~to~~ with the chief boiler 
 39.30  inspector ~~and~~ or designee.  The insurer shall provide a copy of 
 39.31  the report to the person, firm, or corporation owning or 
 39.32  operating the inspected boiler or pressure vessel ~~inspected~~.  
 39.33  Such report shall be made annually for boilers and biennially 
 39.34  for pressure vessels. 
 39.35     Subd. 2.  [EXEMPTION.] Every boiler or pressure vessel as 
 39.36  to which any insurance company authorized to do business in this 
 40.1   state has issued a policy of insurance, after the inspection 
 40.2   thereof, is exempt from inspection by the department made under 
 40.3   sections 183.375 to 183.62, while the same continues to be 
 40.4   insured and provided it continues to be inspected in accordance 
 40.5   with the inspection schedule set forth in sections 183.42 and 
 40.6   183.45, and the person, firm, or corporation owning or operating 
 40.7   the same has an unexpired certificate of ~~exemption from~~ 
 40.8   ~~inspection, issued by the chief boiler~~ 
 40.9   ~~inspector~~ registration.  ~~The fee set by the commissioner~~ 
 40.10  ~~pursuant to section 16A.1285, on the first object inspected and~~ 
 40.11  ~~on each object thereafter shall apply to each exempt object.  A~~ 
 40.12  ~~certificate of exemption expires one year from date of issue.~~  
 40.13  ~~The certificate of exemption shall be posted in a conspicuous~~ 
 40.14  ~~place near the boiler or pressure vessel or in the plant office~~ 
 40.15  ~~or boiler room described therein and to which it relates.  Every~~ 
 40.16  ~~insurance company shall give written notice to the chief boiler~~ 
 40.17  ~~inspector of the cancellation or expiration of every policy of~~ 
 40.18  ~~insurance issued by it with reference to policies in this state,~~ 
 40.19  ~~and the cause or reason for the cancellation or expiration.~~  
 40.20  ~~These notices of cancellation or expiration shall show the date~~ 
 40.21  ~~of the policy and the date when the cancellation has or will~~ 
 40.22  ~~become effective.~~ 
 40.23     ~~Subd. 4.  [CERTIFICATE OF EXEMPTION.] The Division of~~ 
 40.24  ~~Boiler Inspection may issue a billing and exemption certificate~~ 
 40.25  ~~for each boiler and pressure vessel which the division records~~ 
 40.26  ~~indicate shall be or has been inspected by an insurance company~~ 
 40.27  ~~which is providing coverage for the boilers and pressure~~ 
 40.28  ~~vessels.  The division may determine the monthly schedule of the~~ 
 40.29  ~~billings to be followed for each business insured.~~  
 40.30     Subd. 5.  [NOTICE OF INSURANCE COVERAGE.] The insurer shall 
 40.31  notify the commissioner or designee in writing of its policy to 
 40.32  insure and inspect boilers and pressure vessels at a location 
 40.33  within 30 days of the effective date of insurance coverage, 
 40.34  including binders.  The insurer must also provide a duplicate of 
 40.35  the notification to the insured. 
 40.36     Subd. 6.  [NOTICE OF DISCONTINUED COVERAGE.] The insurer 
 41.1   shall notify the commissioner or designee in writing, within 30 
 41.2   days of the effective date, of the discontinuation of insurance 
 41.3   coverage of the boilers and pressure vessels at a location and 
 41.4   the cause or reason for the discontinuation.  This notice shall 
 41.5   show the effective date when the discontinued policy takes 
 41.6   effect. 
 41.7      Subd. 7.  [PENALTIES.] The commissioner shall assess upon 
 41.8   the insurer a $50 penalty, per applicable boiler and pressure 
 41.9   vessel, for failing to submit an inspection report or notify the 
 41.10  commissioner of insurance coverage or discontinuation of 
 41.11  insurance coverage as set forth in this section.  The 
 41.12  commissioner shall assess upon the insurer a penalty of $100, 
 41.13  per applicable boiler and pressure vessel, for failing to 
 41.14  conduct the required in-service inspection within 120 days after 
 41.15  the inspection was due in accordance with section 183.42. 
 41.16     Sec. 35.  Minnesota Statutes 2004, section 216C.41, 
 41.17  subdivision 2, is amended to read: 
 41.18     Subd. 2.  [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 
 41.19  payments must be made according to this section to (1) a 
 41.20  qualified on-farm biogas recovery facility, (2) the owner or 
 41.21  operator of a qualified hydropower facility or qualified wind 
 41.22  energy conversion facility for electric energy generated and 
 41.23  sold by the facility, (3) a publicly owned hydropower facility 
 41.24  for electric energy that is generated by the facility and used 
 41.25  by the owner of the facility outside the facility, or (4) the 
 41.26  owner of a publicly owned dam that is in need of substantial 
 41.27  repair, for electric energy that is generated by a hydropower 
 41.28  facility at the dam and the annual incentive payments will be 
 41.29  used to fund the structural repairs and replacement of 
 41.30  structural components of the dam, or to retire debt incurred to 
 41.31  fund those repairs. 
 41.32     (b) Payment may only be made upon receipt by the 
 41.33  commissioner of ~~finance~~ commerce of an incentive payment 
 41.34  application that establishes that the applicant is eligible to 
 41.35  receive an incentive payment and that satisfies other 
 41.36  requirements the commissioner deems necessary.  The application 
 42.1   must be in a form and submitted at a time the commissioner 
 42.2   establishes.  
 42.3      (c) There is annually appropriated from the ~~general fund~~ 
 42.4   renewable development account under section 116C.779 to the 
 42.5   commissioner of commerce sums sufficient to make the payments 
 42.6   required under this section, ~~other than~~ in addition to the 
 42.7   amounts funded by the renewable development account as specified 
 42.8   in subdivision 5a. 
 42.9      Sec. 36.  Minnesota Statutes 2004, section 216C.41, 
 42.10  subdivision 5, is amended to read: 
 42.11     Subd. 5.  [AMOUNT OF PAYMENT; WIND FACILITIES LIMIT.] (a) 
 42.12  An incentive payment is based on the number of kilowatt hours of 
 42.13  electricity generated. The amount of the payment is: 
 42.14     (1) for a facility described under subdivision 2, paragraph 
 42.15  (a), clause (4), 1.0 cent per kilowatt hour; and 
 42.16     (2) for all other facilities, 1.5 cents per kilowatt hour.  
 42.17  For electricity generated by qualified wind energy conversion 
 42.18  facilities, the incentive payment under this section is limited 
 42.19  to no more than ~~100~~ 200 megawatts of nameplate capacity.  
 42.20     (b) For wind energy conversion systems installed and 
 42.21  contracted for after January 1, 2002, the total size of a wind 
 42.22  energy conversion system under this section must be determined 
 42.23  according to this paragraph.  Unless the systems are 
 42.24  interconnected with different distribution systems, the 
 42.25  nameplate capacity of one wind energy conversion system must be 
 42.26  combined with the nameplate capacity of any other wind energy 
 42.27  conversion system that is: 
 42.28     (1) located within five miles of the wind energy conversion 
 42.29  system; 
 42.30     (2) constructed within the same calendar year as the wind 
 42.31  energy conversion system; and 
 42.32     (3) under common ownership. 
 42.33  In the case of a dispute, the commissioner of commerce shall 
 42.34  determine the total size of the system, and shall draw all 
 42.35  reasonable inferences in favor of combining the systems. 
 42.36     (c) In making a determination under paragraph (b), the 
 43.1   commissioner of commerce may determine that two wind energy 
 43.2   conversion systems are under common ownership when the 
 43.3   underlying ownership structure contains similar persons or 
 43.4   entities, even if the ownership shares differ between the two 
 43.5   systems.  Wind energy conversion systems are not under common 
 43.6   ownership solely because the same person or entity provided 
 43.7   equity financing for the systems. 
 43.8      Sec. 37.  Minnesota Statutes 2004, section 216C.41, 
 43.9   subdivision 5a, is amended to read: 
 43.10     Subd. 5a.  [RENEWABLE DEVELOPMENT ACCOUNT.] The Department 
 43.11  of Commerce shall authorize payment of the renewable energy 
 43.12  production incentive to wind energy conversion systems for ~~100~~ 
 43.13  200 megawatts of nameplate capacity ~~in addition to the capacity~~ 
 43.14  ~~authorized under subdivision 5~~ and to on-farm biogas recovery 
 43.15  facilities.  Payment of the incentive shall be made from the 
 43.16  renewable energy development account as provided under section 
 43.17  116C.779, subdivision 2. 
 43.18     Sec. 38.  Minnesota Statutes 2004, section 237.11, is 
 43.19  amended to read: 
 43.20     237.11 [INSPECTING RECORDS AND PROPERTY; REPORTS REQUIRED.] 
 43.21     Every telephone company subject to the provisions of this 
 43.22  chapter, wherever organized, shall keep an office in this state, 
 43.23  and make such reports to the department as it shall from time to 
 43.24  time require.  All books, records, and files, whether they 
 43.25  relate to competitive or noncompetitive services, and all of its 
 43.26  property shall be at all times subject to inspection by the 
 43.27  commission and the department.  It shall close its accounts and 
 43.28  take therefrom a balance sheet on December 31 of each year, and 
 43.29  on or before May 1 following, such balance sheet, together with 
 43.30  such other information as the department shall require, verified 
 43.31  by an officer of the telephone company, shall be filed with the 
 43.32  commission and the department, except that a local exchange 
 43.33  carrier or a competitive local exchange carrier, as defined in 
 43.34  Minnesota Rules, chapter 7811, is only required to file an 
 43.35  annual report that includes the company's name, contact person, 
 43.36  annual revenue, and status of its 911 update plan. 
 44.1      In the event that any telephone company shall fail to file 
 44.2   its annual report, as provided by this section, the department 
 44.3   is authorized to make such an examination of the books, records, 
 44.4   and vouchers of the company as is necessary to procure the 
 44.5   necessary data for the annual report and cause the same to be 
 44.6   prepared.  The expense of procuring this data and preparing this 
 44.7   report shall be paid by the telephone company failing to report, 
 44.8   and the amount paid shall be credited by the commissioner of 
 44.9   finance to funds appropriated for the expense of the department. 
 44.10     The department is authorized to force collection of such 
 44.11  sum by an action at law in the name of the department.  
 44.12     Sec. 39.  Minnesota Statutes 2004, section 237.295, 
 44.13  subdivision 1, is amended to read: 
 44.14     Subdivision 1.  [~~PAYMENT FOR INVESTIGATION~~ FILING FEE FOR 
 44.15  NEW AUTHORITY.] ~~(a) Whenever the department or commission, in a~~ 
 44.16  ~~proceeding upon its own motion, on complaint, or upon an~~ 
 44.17  ~~application to it, considers it necessary, in order to carry out~~ 
 44.18  ~~the duties imposed on it, to investigate the books, accounts,~~ 
 44.19  ~~practices, and activities of any company, parties to the~~ 
 44.20  ~~proceeding shall pay the expenses reasonably attributable to the~~ 
 44.21  ~~proceeding.  The department and commission shall ascertain the~~ 
 44.22  ~~expenses, and the department shall render a bill for those~~ 
 44.23  ~~expenses to the parties, at the conclusion of the proceeding.~~  
 44.24  ~~The department is authorized to submit billings to parties at~~ 
 44.25  ~~intervals selected by the department during the course of a~~ 
 44.26  ~~proceeding.~~  
 44.27     ~~(b) The allocation of costs may be adjusted for cause by~~ 
 44.28  ~~the commission during the course of the proceeding, or upon the~~ 
 44.29  ~~closing of the docket and issuance of an order.  In addition to~~ 
 44.30  ~~the rights granted in subdivision 3, parties to a proceeding may~~ 
 44.31  ~~object to the allocation at any time during the proceeding.~~  
 44.32  ~~Withdrawal by a party to a proceeding does not absolve the party~~ 
 44.33  ~~from paying allocated costs as determined by the commission.~~  
 44.34  ~~The commission may decide that a party should not pay any~~ 
 44.35  ~~allocated costs of the proceeding.~~  
 44.36     ~~(c) The bill constitutes notice of the assessment and a~~ 
 45.1   ~~demand for payment.  The amount of the bills assessed by the~~ 
 45.2   ~~department under this subdivision must be paid by the parties~~ 
 45.3   ~~into the state treasury within 30 days from the date of~~ 
 45.4   ~~assessment.  The total amount, in a calendar year, for which a~~ 
 45.5   ~~telephone company may become liable, by reason of costs incurred~~ 
 45.6   ~~by the department and commission within that calendar year, may~~ 
 45.7   ~~not exceed two-fifths of one percent of the gross jurisdictional~~ 
 45.8   ~~operating revenue of the telephone company in the last preceding~~ 
 45.9   ~~calendar year.  Direct charges may be assessed without regard to~~ 
 45.10  ~~this limitation until the gross jurisdictional operating revenue~~ 
 45.11  ~~of the telephone company for the preceding calendar year has~~ 
 45.12  ~~been reported for the first time.  Where, under this~~ 
 45.13  ~~subdivision, costs are incurred within a calendar year that are~~ 
 45.14  ~~in excess of two-fifths of one percent of the gross~~ 
 45.15  ~~jurisdictional operating revenues, the excess costs are not~~ 
 45.16  ~~chargeable as part of the remainder under subdivision 2.~~ 
 45.17     ~~(d) Except as otherwise provided in paragraph (e), for~~ 
 45.18  ~~purposes of assessing the cost of a proceeding to a party,~~ 
 45.19  ~~"party" means any entity or group subject to the laws and rules~~ 
 45.20  ~~of this state, however organized, whether public or private,~~ 
 45.21  ~~whether domestic or foreign, whether for profit or nonprofit,~~ 
 45.22  ~~and whether natural, corporate, or political, such as a business~~ 
 45.23  ~~or commercial enterprise organized as any type or combination of~~ 
 45.24  ~~corporation, limited liability company, partnership, limited~~ 
 45.25  ~~liability partnership, proprietorship, association, cooperative,~~ 
 45.26  ~~joint venture, carrier, or utility, and any successor or~~ 
 45.27  ~~assignee of any of them; a social or charitable organization;~~ 
 45.28  ~~and any type or combination of political subdivision, which~~ 
 45.29  ~~includes the executive, judicial, or legislative branch of the~~ 
 45.30  ~~state, a local government unit, an agency of the state or a~~ 
 45.31  ~~local government unit, or a combination of any of them.~~  
 45.32     (~~e) For assessment and billing purposes, "party" does not~~ 
 45.33  ~~include the Department of Commerce or the Residential Utilities~~ 
 45.34  ~~Division of the Office of Attorney General; any entity or group~~ 
 45.35  ~~instituted primarily for the purpose of mutual help and not~~ 
 45.36  ~~conducted for profit; intervenors awarded compensation under~~ 
 46.1   ~~section 237.075, subdivision 10; or any individual or group or~~ 
 46.2   ~~counsel for the individual or group representing the interests~~ 
 46.3   ~~of end users or classes of end users of services provided by~~ 
 46.4   ~~telephone companies or telecommunications carriers, as~~ 
 46.5   ~~determined by the commission.~~  An application for a new 
 46.6   authority must be accompanied by a payment not to exceed $2,000 
 46.7   as determined by the Public Utilities Commission.  This fee will 
 46.8   be reviewed annually and adjusted accordingly. 
 46.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 46.10  following final enactment. 
 46.11     Sec. 40.  Minnesota Statutes 2004, section 237.295, 
 46.12  subdivision 2, is amended to read: 
 46.13     Subd. 2.  [ASSESSMENT OF COSTS.] The department and 
 46.14  commission shall quarterly, at least 30 days before the start of 
 46.15  each quarter, estimate the total of their expenditures in the 
 46.16  performance of their duties relating to telephone companies, 
 46.17  other than amounts chargeable to telephone companies under 
 46.18  subdivision 1, 5, or 6.  The remainder must be assessed by the 
 46.19  department to the telephone companies operating in this state in 
 46.20  proportion to their respective gross jurisdictional operating 
 46.21  revenues during the last calendar year.  The assessment must be 
 46.22  paid into the state treasury within 30 days after the bill has 
 46.23  been mailed to the telephone companies.  The bill constitutes 
 46.24  notice of the assessment and demand of payment.  The total 
 46.25  amount that may be assessed to the telephone companies under 
 46.26  this subdivision may not exceed ~~one-eighth~~ three-eighths of one 
 46.27  percent of the total gross jurisdictional operating revenues 
 46.28  during the calendar year.  The assessment for the third quarter 
 46.29  of each fiscal year must be adjusted to compensate for the 
 46.30  amount by which actual expenditures by the commission and 
 46.31  department for the preceding fiscal year were more or less than 
 46.32  the estimated expenditures previously assessed.  A telephone 
 46.33  company with gross jurisdictional operating revenues of less 
 46.34  than $5,000 is exempt from assessments under this subdivision. 
 46.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 46.36  following final enactment. 
 47.1      Sec. 41.  [237.491] [COMBINED PER NUMBER FEE.] 
 47.2      Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 47.3   subdivision apply to this section. 
 47.4      (b) "911 emergency and public safety communications program"
 47.5   means the program governed by chapter 403. 
 47.6      (c) "Minnesota telephone number" means a ten-digit 
 47.7   telephone number being used to connect to the public switched 
 47.8   telephone network and starting with area code 218, 320, 507, 
 47.9   612, 651, 763, or 952, or any subsequent area code assigned to 
 47.10  this state. 
 47.11     (d) "Service provider" means a provider doing business in 
 47.12  this state who provides real time, two-way voice service with a 
 47.13  Minnesota telephone number. 
 47.14     (e) "Telecommunications access Minnesota program" means the 
 47.15  program governed by sections 237.50 to 237.55. 
 47.16     (f) "Telephone assistance program" means the program 
 47.17  governed by sections 237.69 to 237.711. 
 47.18     Subd. 2.  [PER NUMBER FEE.] (a) By January 15, 2006, the 
 47.19  commissioner of commerce shall report to the legislature and to 
 47.20  the senate Committee on Jobs, Energy, and Community Development 
 47.21  and the house Committee on Regulated Industries, recommendations 
 47.22  for the amount of and method for assessing a fee that would 
 47.23  apply to each service provider based upon the number of 
 47.24  Minnesota telephone numbers in use by current customers of the 
 47.25  service provider.  The fee would be set at a level calculated to 
 47.26  generate only the amount of revenue necessary to fund: 
 47.27     (1) the telephone assistance program and the 
 47.28  telecommunications access Minnesota program at the levels 
 47.29  established by the commission under sections 237.52, subdivision 
 47.30  2, and 237.70; and 
 47.31     (2) the 911 emergency and public safety communications 
 47.32  program at the levels appropriated by law to the commissioner of 
 47.33  public safety and the commissioner of finance for purposes of 
 47.34  sections 403.11, 403.113, 403.27, 403.30, and 403.31 for each 
 47.35  fiscal year. 
 47.36     (b) The recommendations must include any changes to 
 48.1   Minnesota Statutes necessary to establish the procedures whereby 
 48.2   each service provider, to the extent allowed under federal law, 
 48.3   would collect and remit the fee proceeds to the commissioner of 
 48.4   revenue.  The commissioner of revenue would allocate the fee 
 48.5   proceeds to the three funding areas in paragraph (a) and credit 
 48.6   the allocations to the appropriate accounts. 
 48.7      (c) The recommendations must be designed to allow the 
 48.8   combined per telephone number fee to be collected beginning July 
 48.9   1, 2006.  The per access line fee used to collect revenues to 
 48.10  support the TAP, TAM, and 911 programs remains in effect until 
 48.11  the statutory changes necessary to implement the per telephone 
 48.12  number fee have been enacted into law. 
 48.13     (d) As part of the process of developing the 
 48.14  recommendations and preparing the report to the legislature 
 48.15  required under paragraph (a), the commissioner of commerce must, 
 48.16  at a minimum, consult regularly with the Departments of Public 
 48.17  Safety, Finance, and Administration, the Public Utilities 
 48.18  Commission, service providers, the chairs and ranking minority 
 48.19  members of the senate and house committees, subcommittees, and 
 48.20  divisions having jurisdiction over telecommunications and public 
 48.21  safety, and other affected parties. 
 48.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 48.23  following final enactment. 
 48.24     Sec. 42.  Minnesota Statutes 2004, section 239.011, 
 48.25  subdivision 2, is amended to read: 
 48.26     Subd. 2.  [DUTIES AND POWERS.] To carry out the 
 48.27  responsibilities in section 239.01 and subdivision 1, the 
 48.28  director: 
 48.29     (1) shall take charge of, keep, and maintain in good order 
 48.30  the standard of weights and measures of the state and keep a 
 48.31  seal so formed as to impress, when appropriate, the letters 
 48.32  "MINN" and the date of sealing upon the weights and measures 
 48.33  that are sealed; 
 48.34     (2) has general supervision of the weights, measures, and 
 48.35  weighing and measuring devices offered for sale, sold, or in use 
 48.36  in the state; 
 49.1      (3) shall maintain traceability of the state standards to 
 49.2   the national standards of the National Institute of Standards 
 49.3   and Technology; 
 49.4      (4) shall enforce this chapter; 
 49.5      (5) shall grant variances from department rules, within the 
 49.6   limits set by rule, when appropriate to maintain good commercial 
 49.7   practices or when enforcement of the rules would cause undue 
 49.8   hardship; 
 49.9      (6) shall conduct investigations to ensure compliance with 
 49.10  this chapter; 
 49.11     (7) may delegate to division personnel the 
 49.12  responsibilities, duties, and powers contained in this section; 
 49.13     (8) shall test annually, and approve when found to be 
 49.14  correct, the standards of weights and measures used by the 
 49.15  division, by a town, statutory or home rule charter city, or 
 49.16  county within the state, or by a person using standards to 
 49.17  repair, adjust, or calibrate commercial weights and measures; 
 49.18     (9) shall inspect and test weights and measures kept, 
 49.19  offered, or exposed for sale; 
 49.20     (10) shall inspect and test, to ascertain if they are 
 49.21  correct, weights and measures commercially used to: 
 49.22     (i) determine the weight, measure, or count of commodities 
 49.23  or things sold, offered, or exposed for sale, on the basis of 
 49.24  weight, measure, or count; and 
 49.25     (ii) compute the basic charge or payment for services 
 49.26  rendered on the basis of weight, measure, or count; 
 49.27     (11) shall approve for use and mark weights and measures 
 49.28  that are found to be correct; 
 49.29     (12) shall reject, and mark as rejected, weights and 
 49.30  measures that are found to be incorrect and may seize them if 
 49.31  those weights and measures: 
 49.32     (i) are not corrected within the time specified by the 
 49.33  director; 
 49.34     (ii) are used or disposed of in a manner not specifically 
 49.35  authorized by the director; or 
 49.36     (iii) are found to be both incorrect and not capable of 
 50.1   being made correct, in which case the director shall condemn 
 50.2   those weights and measures; 
 50.3      (13) shall weigh, measure, or inspect packaged commodities 
 50.4   kept, offered, or exposed for sale, sold, or in the process of 
 50.5   delivery, to determine whether they contain the amount 
 50.6   represented and whether they are kept, offered, or exposed for 
 50.7   sale in accordance with this chapter and department rules.  In 
 50.8   carrying out this section, the director must employ recognized 
 50.9   sampling procedures, such as those contained in National 
 50.10  Institute of Standards and Technology Handbook 133, "Checking 
 50.11  the Net Contents of Packaged Goods"; 
 50.12     (14) shall prescribe the appropriate term or unit of weight 
 50.13  or measure to be used for a specific commodity when an existing 
 50.14  term or declaration of quantity does not facilitate value 
 50.15  comparisons by consumers, or creates an opportunity for consumer 
 50.16  confusion; 
 50.17     (15) shall allow reasonable variations from the stated 
 50.18  quantity of contents, including variations caused by loss or 
 50.19  gain of moisture during the course of good distribution practice 
 50.20  or by unavoidable deviations in good manufacturing practice, 
 50.21  only after the commodity has entered commerce within the state; 
 50.22     (16) shall inspect and test petroleum products in 
 50.23  accordance with this chapter and chapter 296A; 
 50.24     (17) shall distribute and post notices for used motor oil 
 50.25  and used motor oil filters and lead acid battery recycling in 
 50.26  accordance with sections 239.54, 325E.11, and 325E.115; 
 50.27     (18) shall collect inspection fees in accordance with 
 50.28  sections 239.10 and 239.101; and 
 50.29     (19) shall provide metrological services and support to 
 50.30  businesses and individuals in the United States who wish to 
 50.31  market products and services in the member nations of the 
 50.32  European Economic Community, and other nations outside of the 
 50.33  United States by:  
 50.34     (i) meeting, to the extent practicable, the measurement 
 50.35  quality assurance standards described in the International 
 50.36  Standards Organization ISO ~~9000, Guide 25~~ 17025; 
 51.1      (ii) maintaining, to the extent practicable, certification 
 51.2   of the metrology laboratory by ~~a governing body appointed by the~~ 
 51.3   ~~European Economic Community~~ an internationally accepted 
 51.4   accrediting body such as the National Voluntary Laboratory 
 51.5   Accreditation Program (NVLAP); and 
 51.6      (iii) providing calibration and consultation services to 
 51.7   metrology laboratories in government and private industry in the 
 51.8   United States. 
 51.9      Sec. 43.  Minnesota Statutes 2004, section 239.05, is 
 51.10  amended by adding a subdivision to read: 
 51.11     Subd. 3a.  [AUTOMOTIVE FUEL.] For the purpose of enforcing 
 51.12  the gasoline octane requirements in section 239.792, "automotive 
 51.13  fuel" has the meaning given it in Code of Federal Regulations, 
 51.14  title 16, section 306.0. 
 51.15     Sec. 44.  Minnesota Statutes 2004, section 239.05, 
 51.16  subdivision 10b, is amended to read: 
 51.17     Subd. 10b.  [~~OXYGENATE~~ ETHANOL BLENDER.] "~~Oxygenate~~ Ethanol 
 51.18  blender" means a person who ~~has registered with the division to~~ 
 51.19  ~~blend and distribute, transport, sell, or offer~~ blends and 
 51.20  distributes, transports, sells, or offers to sell gasoline 
 51.21  containing ~~a minimum of 2.0 percent, and an average of 2.7~~ ten 
 51.22  percent ~~oxygen~~ ethanol by ~~weight~~ volume. 
 51.23     Sec. 45.  Minnesota Statutes 2004, section 239.09, is 
 51.24  amended to read: 
 51.25     239.09 [SPECIAL POLICE POWERS.] 
 51.26     When necessary to enforce this chapter or rules adopted 
 51.27  under the authority granted by section 239.06, the director is: 
 51.28     (1) authorized and empowered to arrest, without formal 
 51.29  warrant, any violator of sections 325E.11 and 325E.115 or of the 
 51.30  statute in relation to weights and measures; 
 51.31     (2) empowered to seize for use as evidence and without 
 51.32  formal warrant, any false weight, measure, weighing or measuring 
 51.33  device, package, or commodity found to be used, retained, or 
 51.34  offered or exposed for sale or sold in violation of law; 
 51.35     (3) during normal business hours, authorized to enter 
 51.36  commercial premises; 
 52.1      (4) if the premises are not open to the public, authorized 
 52.2   to enter commercial premises only after presenting credentials 
 52.3   and obtaining consent or after obtaining a search warrant; 
 52.4      (5) empowered to issue stop-use, hold, and removal orders 
 52.5   with respect to weights and measures commercially used, and 
 52.6   packaged commodities or bulk commodities kept, offered, or 
 52.7   exposed for sale, that do not comply with the weights and 
 52.8   measures laws; ~~and~~ 
 52.9      (6) empowered, upon reasonable suspicion of a violation of 
 52.10  the weights and measures laws, to stop a commercial vehicle and, 
 52.11  after presentation of credentials, inspect the contents of the 
 52.12  vehicle, require that the person in charge of the vehicle 
 52.13  produce documents concerning the contents, and require the 
 52.14  person to proceed with the vehicle to some specified place for 
 52.15  inspection; and 
 52.16     (7) empowered, after written warning, to issue citations of 
 52.17  not less than $100 and not more than $500 to a person who 
 52.18  violates any provision of this chapter, any provision of the 
 52.19  rules adopted under the authority contained in this chapter, or 
 52.20  any provision of statutes enforced by the Division of Weights 
 52.21  and Measures. 
 52.22     Sec. 46.  Minnesota Statutes 2004, section 239.101, 
 52.23  subdivision 3, is amended to read: 
 52.24     Subd. 3.  [PETROLEUM INSPECTION FEE.] (a) An inspection fee 
 52.25  is imposed (1) on petroleum products when received by the first 
 52.26  licensed distributor, and (2) on petroleum products received and 
 52.27  held for sale or use by any person when the petroleum products 
 52.28  have not previously been received by a licensed distributor.  
 52.29  The petroleum inspection fee is $1 for every 1,000 gallons 
 52.30  received.  The commissioner of revenue shall collect the fee.  
 52.31  The revenue from 81 cents of the fee ~~must first be applied to~~ 
 52.32  ~~cover the amounts appropriated.  Fifteen cents of the inspection~~ 
 52.33  ~~fee must be deposited in an account in the special revenue fund~~ 
 52.34  ~~and~~ is appropriated to the commissioner of commerce for the cost 
 52.35  of ~~petroleum product quality inspection expenses and for the~~ 
 52.36  ~~inspection and testing of petroleum product-measuring~~ 
 53.1   ~~equipment~~ operations of the Division of Weights and Measures, 
 53.2   petroleum supply monitoring, and the oil burner retrofit 
 53.3   program.  The remainder of the fee must be deposited in the 
 53.4   general fund. 
 53.5      (b) The commissioner of revenue shall credit a person for 
 53.6   inspection fees previously paid in error or for any material 
 53.7   exported or sold for export from the state upon filing of a 
 53.8   report as prescribed by the commissioner of revenue. 
 53.9      (c) The commissioner of revenue may collect the inspection 
 53.10  fee along with any taxes due under chapter 296A. 
 53.11     Sec. 47.  Minnesota Statutes 2004, section 239.75, 
 53.12  subdivision 1, is amended to read: 
 53.13     Subdivision 1.  [INSPECTION TO BE MADE.] The director shall:
 53.14     (1) take samples, free of charge, of petroleum products 
 53.15  wherever processed, blended, held, stored, imported, 
 53.16  transferred, offered for sale or use, or sold in Minnesota, 
 53.17  limiting each sample to~~:~~ 
 53.18     ~~(i) two-tenths of one~~ one-half gallon~~, except when an~~ 
 53.19  ~~octane test is planned; or~~ 
 53.20     ~~(ii) seven-tenths of one gallon for an octane test~~; 
 53.21     (2) inspect and test petroleum product samples according to 
 53.22  the methods of ASTM or other valid test methods adopted by rule, 
 53.23  to determine whether the products comply with the specifications 
 53.24  in section 239.761; 
 53.25     (3) inspect petroleum product storage tanks to ensure that 
 53.26  the products are free from water and impurities; 
 53.27     (4) inspect and test samples submitted to the department by 
 53.28  a licensed distributor, making the test results available to the 
 53.29  distributor; 
 53.30     (5) inspect the labeling, price posting, and price 
 53.31  advertising of petroleum product dispensers and advertising 
 53.32  signs at businesses or locations where petroleum products are 
 53.33  sold, offered for sale or use, or dispensed into motor vehicles; 
 53.34     (6) maintain records of all inspections and tests according 
 53.35  to the records retention policies of the Department of 
 53.36  Administration; 
 54.1      (7) delegate to division personnel, at the director's 
 54.2   discretion, any or all of the responsibilities, duties, and 
 54.3   powers in sections 239.75 to 239.80; 
 54.4      (8) publish ~~octane~~ test data and information to assist 
 54.5   persons who use, produce ~~and~~, distribute, or sell ~~gasoline and~~ 
 54.6   ~~gasoline-oxygenate blends~~ petroleum-based heating and engine 
 54.7   fuels; 
 54.8      (9) ~~register gasoline-oxygenate blenders according to the~~ 
 54.9   ~~requirements of the EPA;~~ 
 54.10     ~~(10)~~ audit the records of any person responsible for the 
 54.11  product to determine compliance with sections 239.75 to 239.792; 
 54.12     ~~(11)~~ (10) after consulting with the commissioner ~~of the~~ 
 54.13  ~~Pollution Control Agency~~, grant a temporary exemption from the 
 54.14  ~~oxygenated gasoline~~ gasoline-ethanol blending requirements in 
 54.15  section 239.791 if the supply of ~~oxygenate~~ ethanol is 
 54.16  insufficient to produce ~~gasoline-oxygenate~~ gasoline-ethanol 
 54.17  blends ~~during an EPA-designated carbon monoxide control period~~; 
 54.18  and 
 54.19     ~~(12)~~ (11) adopt, as an enforcement policy for the division, 
 54.20  reasonable margins of uncertainty for the tests used to 
 54.21  determine compliance with the specifications in section 239.761, 
 54.22  the oxygen percentages in section 239.791, and the octane 
 54.23  requirements in section 239.792 and apply the margins of 
 54.24  uncertainty to only tests performed by the division, not by 
 54.25  adding the margins to uncertainties in tests performed by any 
 54.26  person responsible for the product. 
 54.27     Sec. 48.  Minnesota Statutes 2004, section 239.75, 
 54.28  subdivision 5, is amended to read: 
 54.29     Subd. 5.  [PRODUCT QUALITY, RESPONSIBILITY.] After a 
 54.30  ~~gasoline product~~ petroleum-based engine fuel is purchased, 
 54.31  transferred, or otherwise removed from a refinery or terminal, 
 54.32  the person responsible for the product shall: 
 54.33     (1) keep the product free from contamination with water and 
 54.34  impurities; 
 54.35     (2) not blend the product with dissimilar petroleum 
 54.36  products, for example, gasoline must not be blended with diesel 
 55.1   fuel; 
 55.2      (3) not blend the product with any contaminant, dye, 
 55.3   chemical, or additive, except: 
 55.4      (i) agriculturally derived, denatured ethanol that complies 
 55.5   with the specifications in this chapter; 
 55.6      (ii) an antiknock additive, or an additive designed to 
 55.7   replace tetra-ethyl lead, that is registered by the EPA; ~~or~~ 
 55.8      (iii) a dye to distinguish heating fuel from low sulfur 
 55.9   diesel fuel; or 
 55.10     (iv) biodiesel fuel that complies with the specifications 
 55.11  in this chapter; ~~a~~nd 
 55.12     (4) maintain a record of the name or chemical composition 
 55.13  of the additive, with the product shipping manifest or bill of 
 55.14  lading for one year after the date of the manifest or bill. 
 55.15     Sec. 49.  Minnesota Statutes 2004, section 239.761, is 
 55.16  amended to read: 
 55.17     239.761 [PETROLEUM PRODUCT SPECIFICATIONS.] 
 55.18     Subdivision 1.  [APPLICABILITY.] A person responsible for 
 55.19  the product must meet the specifications in this section.  The 
 55.20  specifications apply to petroleum products processed, held, 
 55.21  stored, imported, transferred, distributed, offered for 
 55.22  distribution, offered for sale or use, or sold in Minnesota. 
 55.23     Subd. 2.  [COORDINATION WITH DEPARTMENTS OF REVENUE AND 
 55.24  AGRICULTURE.] The petroleum product specifications in this 
 55.25  section are intended to match the definitions and specifications 
 55.26  in sections 41A.09 and 296A.01.  Petroleum products named in 
 55.27  this section are defined in section 296A.01. 
 55.28     Subd. 3.  [GASOLINE.] (a) Gasoline that is not blended with 
 55.29  ethanol must not be contaminated with water or other impurities 
 55.30  and must comply with ASTM specification ~~D4814-01~~ D4814-04a.  
 55.31  Gasoline that is not blended with ethanol must also comply with 
 55.32  the volatility requirements in Code of Federal Regulations, 
 55.33  title 40, part 80.  
 55.34     (b) After gasoline is sold, transferred, or otherwise 
 55.35  removed from a refinery or terminal, a person responsible for 
 55.36  the product: 
 56.1      (1) may blend the gasoline with agriculturally derived 
 56.2   ethanol as provided in subdivision 4; 
 56.3      (2) shall not blend the gasoline with any oxygenate other 
 56.4   than denatured, agriculturally derived ethanol; 
 56.5      (3) shall not blend the gasoline with other petroleum 
 56.6   products that are not gasoline or denatured, agriculturally 
 56.7   derived ethanol; 
 56.8      (4) shall not blend the gasoline with products commonly and 
 56.9   commercially known as casinghead gasoline, absorption gasoline, 
 56.10  condensation gasoline, drip gasoline, or natural gasoline; and 
 56.11     (5) may blend the gasoline with a detergent additive, an 
 56.12  antiknock additive, or an additive designed to replace 
 56.13  tetra-ethyl lead, that is registered by the EPA. 
 56.14     Subd. 4.  [GASOLINE BLENDED WITH ETHANOL.] (a) Gasoline may 
 56.15  be blended with up to ten percent, by volume, agriculturally 
 56.16  derived, denatured ethanol that complies with the requirements 
 56.17  of subdivision 5.  
 56.18     (b) A gasoline-ethanol blend must: 
 56.19     (1) comply with the volatility requirements in Code of 
 56.20  Federal Regulations, title 40, part 80; 
 56.21     (2) comply with ASTM specification ~~D4814-01~~ D4814-04a, or 
 56.22  the gasoline base stock from which a gasoline-ethanol blend was 
 56.23  produced must comply with ASTM specification ~~D4814-01~~ D4814-04a; 
 56.24  and 
 56.25     (3) not be blended with casinghead gasoline, absorption 
 56.26  gasoline, condensation gasoline, drip gasoline, or natural 
 56.27  gasoline after the gasoline-ethanol blend has been sold, 
 56.28  transferred, or otherwise removed from a refinery or terminal. 
 56.29     Subd. 5.  [DENATURED ETHANOL.] Denatured ethanol that is to 
 56.30  be blended with gasoline must be agriculturally derived and must 
 56.31  comply with ASTM specification ~~D4806-01~~ D4806-04a.  This 
 56.32  includes the requirement that ethanol may be denatured only as 
 56.33  specified in Code of Federal Regulations, title 27, parts 20 and 
 56.34  21. 
 56.35     Subd. 6.  [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] (a) 
 56.36  A person responsible for the product shall comply with the 
 57.1   following requirements: 
 57.2      (1) after July 1, 2000, gasoline containing in excess of 
 57.3   one-third of one percent, in total, of nonethanol oxygenates 
 57.4   listed in paragraph (b) must not be sold or offered for sale at 
 57.5   any time in this state; and 
 57.6      (2) after July 1, 2005, gasoline containing any of the 
 57.7   nonethanol oxygenates listed in paragraph (b) must not be sold 
 57.8   or offered for sale in this state. 
 57.9      (b) The oxygenates prohibited under paragraph (a) are: 
 57.10     (1) methyl tertiary butyl ether, as defined in section 
 57.11  296A.01, subdivision 34; 
 57.12     (2) ethyl tertiary butyl ether, as defined in section 
 57.13  296A.01, subdivision 18; or 
 57.14     (3) tertiary amyl methyl ether. 
 57.15     (c) Gasoline that is blended with a nonethanol oxygenate 
 57.16  must comply with ASTM specification ~~D4814-01~~ D4814-04a.  
 57.17  Nonethanol oxygenates must not be blended into gasoline after 
 57.18  the gasoline has been sold, transferred, or otherwise removed 
 57.19  from a refinery or terminal. 
 57.20     Subd. 7.  [HEATING FUEL OIL.] Heating fuel oil must comply 
 57.21  with ASTM specification ~~D396-01~~ D396-02a. 
 57.22     Subd. 8.  [DIESEL FUEL OIL.] Diesel fuel oil must comply 
 57.23  with ASTM specification ~~D975-01a~~ D975-04b, except that diesel 
 57.24  fuel oil is not required to meet the diesel lubricity standard 
 57.25  until the date that the biodiesel fuel requirement in section 
 57.26  239.77, subdivision 2, becomes effective or December 31, 2005, 
 57.27  whichever comes first. 
 57.28     Subd. 9.  [KEROSENE.] Kerosene must comply with ASTM 
 57.29  specification ~~D3699-01~~ D3699-03. 
 57.30     Subd. 10.  [AVIATION GASOLINE.] Aviation gasoline must 
 57.31  comply with ASTM specification ~~D910-00~~ D910-04. 
 57.32     Subd. 11.  [AVIATION TURBINE FUEL, JET FUEL.] Aviation 
 57.33  turbine fuel and jet fuel must comply with ASTM specification 
 57.34  ~~D1655-01~~ D1655-04. 
 57.35     Subd. 12.  [GAS TURBINE FUEL OIL.] Fuel oil for use in 
 57.36  nonaviation gas turbine engines must comply with ASTM 
 58.1   specification ~~D2880-00~~ D2880-03. 
 58.2      Subd. 13.  [E85.] A blend of ethanol and gasoline, 
 58.3   containing at least 60 percent ethanol and not more than 85 
 58.4   percent ethanol, produced for use as a motor fuel in alternative 
 58.5   fuel vehicles as defined in section 296A.01, subdivision 5, must 
 58.6   comply with ASTM specification D5798-99 (2004). 
 58.7      Subd. 14.  [M85.] A blend of methanol and gasoline, 
 58.8   containing at least 85 percent methanol, produced for use as a 
 58.9   motor fuel in alternative fuel vehicles as defined in section 
 58.10  296A.01, subdivision 5, must comply with ASTM specification 
 58.11  D5797-96. 
 58.12     Sec. 50.  Minnesota Statutes 2004, section 239.77, is 
 58.13  amended by adding a subdivision to read: 
 58.14     Subd. 4.  [DISCLOSURE.] A refinery or terminal shall 
 58.15  provide, at the time diesel fuel is sold or transferred from the 
 58.16  refinery or terminal, a bill of lading or shipping manifest to 
 58.17  the person who receives the fuel.  For biodiesel-blended 
 58.18  products, the bill of lading or shipping manifest must disclose 
 58.19  biodiesel content, stating volume percentage, gallons of 
 58.20  biodiesel per gallons of petroleum diesel base-stock, or an ASTM 
 58.21  "Bxx" designation where "xx" denotes the volume percent 
 58.22  biodiesel included in the blended product.  This subdivision 
 58.23  does not apply to sales or transfers of biodiesel blend stock 
 58.24  between refineries, between terminals, or between a refinery and 
 58.25  a terminal. 
 58.26     Sec. 51.  Minnesota Statutes 2004, section 239.79, 
 58.27  subdivision 4, is amended to read: 
 58.28     Subd. 4.  [SALE OF CERTAIN PETROLEUM PRODUCTS ON GROSS 
 58.29  VOLUME BASIS.] A person responsible for the products listed in 
 58.30  this subdivision shall transfer, ship, distribute, offer for 
 58.31  distribution, sell, or offer to sell the products by volume.  
 58.32  Volumetric measurement of the product must not be temperature 
 58.33  compensated, or adjusted by any other factor.  This subdivision 
 58.34  applies to gasoline, number one and number two diesel fuel oils, 
 58.35  number one and number two heating fuel oils, kerosene, denatured 
 58.36  ethanol ~~that is to be blended into gasoline, and an oxygenate~~ 
 59.1   ~~that is to be blended into gasoline~~, and biodiesel.  This 
 59.2   subdivision does not apply to the measurement of petroleum 
 59.3   products transferred, sold, or traded between refineries, 
 59.4   between refineries and terminals, or between terminals.  
 59.5      Sec. 52.  Minnesota Statutes 2004, section 239.791, 
 59.6   subdivision 1, is amended to read: 
 59.7      Subdivision 1.  [MINIMUM ETHANOL CONTENT REQUIRED.] (a) 
 59.8   Except as provided in subdivisions 10 to 14, a person 
 59.9   responsible for the product shall ensure that all gasoline sold 
 59.10  or offered for sale in Minnesota must contain at least 10.0 
 59.11  percent denatured ethanol by volume. 
 59.12     (b) For purposes of enforcing the minimum ethanol 
 59.13  requirement of paragraph (a), a gasoline/ethanol blend will be 
 59.14  construed to be in compliance if the ethanol content, exclusive 
 59.15  of denaturants and permitted contaminants, comprises not less 
 59.16  than 9.2 percent by volume and not more than 10.0 percent by 
 59.17  volume of the blend as determined by an appropriate United 
 59.18  States Environmental Protection Agency or American Society of 
 59.19  Testing Materials standard method of analysis of alcohol/ether 
 59.20  content in ~~motor~~ engine fuels. 
 59.21     Sec. 53.  Minnesota Statutes 2004, section 239.791, 
 59.22  subdivision 7, is amended to read: 
 59.23     Subd. 7.  [~~OXYGENATE~~ ETHANOL RECORDS; STATE AUDIT.] The 
 59.24  director shall audit the records of registered ~~oxygenate~~ ethanol 
 59.25  blenders to ensure that each blender has met all requirements in 
 59.26  this chapter.  Specific information or data relating to sales 
 59.27  figures or to processes or methods of production unique to the 
 59.28  blender or that would tend to adversely affect the competitive 
 59.29  position of the blender must be only for the confidential use of 
 59.30  the director, unless otherwise specifically authorized by the 
 59.31  registered blender. 
 59.32     Sec. 54.  Minnesota Statutes 2004, section 239.791, 
 59.33  subdivision 8, is amended to read: 
 59.34     Subd. 8.  [DISCLOSURE.] A refinery or terminal, shall 
 59.35  provide, at the time gasoline is sold or transferred from the 
 59.36  refinery or terminal, a bill of lading or shipping manifest to 
 60.1   the person who receives the gasoline.  For oxygenated gasoline, 
 60.2   the bill of lading or shipping manifest must include the 
 60.3   identity and the volume percentage or gallons of oxygenate 
 60.4   included in the gasoline, and it must state:  "This fuel 
 60.5   contains an oxygenate.  Do not blend this fuel with ethanol or 
 60.6   with any other oxygenate."  ~~For nonoxygenated gasoline sold or~~ 
 60.7   ~~transferred before October 1, 1997, the bill or manifest must~~ 
 60.8   ~~state:  "This fuel must not be sold at retail in a carbon~~ 
 60.9   ~~monoxide control area."~~  For nonoxygenated gasoline sold or 
 60.10  transferred after September 30, 1997, the bill or manifest must 
 60.11  state:  "This fuel is not oxygenated.  It must not be sold at 
 60.12  retail in Minnesota."  This subdivision does not apply to sales 
 60.13  or transfers of gasoline between refineries, between terminals, 
 60.14  or between a refinery and a terminal. 
 60.15     Sec. 55.  Minnesota Statutes 2004, section 239.791, 
 60.16  subdivision 15, is amended to read: 
 60.17     Subd. 15.  [EXEMPTION FOR CERTAIN BLEND PUMPS.] (a) A 
 60.18  person responsible for the product, who offers for sale, sells, 
 60.19  or dispenses nonoxygenated premium gasoline under one or more of 
 60.20  the exemptions in subdivisions 10 to 14, may sell, offer for 
 60.21  sale, or dispense oxygenated gasoline that contains less than 
 60.22  the minimum amount of ethanol required under subdivision 1 if 
 60.23  all of the following conditions are met: 
 60.24     (1) the blended gasoline has an octane rating of 88 or 
 60.25  greater; 
 60.26     (2) the gasoline is a blend of oxygenated gasoline meeting 
 60.27  the requirements of subdivision 1 with nonoxygenated premium 
 60.28  gasoline; 
 60.29     (3) the blended gasoline contains not more than ten percent 
 60.30  nonoxygenated premium gasoline; 
 60.31     (4) the blending of oxygenated gasoline with nonoxygenated 
 60.32  gasoline occurs within the gasoline dispenser; and 
 60.33     (5) the gasoline station at which the gasoline is sold, 
 60.34  offered for sale, or delivered is equipped to store gasoline in 
 60.35  not more than two storage tanks.  
 60.36     (b) This subdivision applies only to those persons who meet 
 61.1   the conditions in paragraph (a), clauses (1) through (5), on ~~the~~ 
 61.2   ~~effective date of this act~~ August 1, 2004, and have registered 
 61.3   with the director within three months of ~~the effective~~ that date 
 61.4   ~~of this act~~. 
 61.5      Sec. 56.  Minnesota Statutes 2004, section 239.792, is 
 61.6   amended to read: 
 61.7      239.792 [~~GASOLINE OCTANE~~ AUTOMOTIVE FUEL RATINGS, 
 61.8   CERTIFICATION, AND POSTING.] 
 61.9      Subdivision 1.  [~~DISCLOSURE~~ DUTIES OF REFINERS, IMPORTERS, 
 61.10  AND PRODUCERS.] A ~~manufacturer, hauler, blender, agent, jobber,~~ 
 61.11  ~~consignment agent~~ refiner, importer, or ~~distributor who sells,~~ 
 61.12  ~~delivers, or distributes gasoline or gasoline-oxygenate blends,~~ 
 61.13  ~~shall provide, at the time of delivery, a bill of lading or~~ 
 61.14  ~~shipping manifest to the person who receives the gasoline.  The~~ 
 61.15  ~~bill or manifest must state the minimum octane of the gasoline~~ 
 61.16  ~~delivered.  The stated octane number must be the average of the~~ 
 61.17  ~~"motor method" octane number and the "research method" octane~~ 
 61.18  ~~number as determined by the test methods in ASTM specification~~ 
 61.19  ~~D4814-01, or by a test method adopted by department~~ 
 61.20  ~~rule~~ producer of automotive fuel must comply with the automotive 
 61.21  fuel rating, certification, and record-keeping requirements of 
 61.22  Code of Federal Regulations, title 16, sections 306.5 to 306.7. 
 61.23     Subd. 2.  [~~DISPENSER LABELING~~ DUTIES OF DISTRIBUTORS.] ~~A~~ 
 61.24  ~~person responsible for the product shall clearly, conspicuously,~~ 
 61.25  ~~and permanently label each gasoline dispenser that is used to~~ 
 61.26  ~~sell gasoline or gasoline-oxygenate blends at retail or to~~ 
 61.27  ~~dispense gasoline or gasoline-oxygenate blends into the fuel~~ 
 61.28  ~~supply tanks of motor vehicles, with the minimum octane of the~~ 
 61.29  ~~gasoline dispensed.  The label must meet the following~~ 
 61.30  ~~requirements:~~ 
 61.31     ~~(a) The octane number displayed on the label must represent~~ 
 61.32  ~~the average of the "motor method" octane number and the~~ 
 61.33  ~~"research method" octane number as determined by the test~~ 
 61.34  ~~methods in ASTM specification D4814-01, or by a test method~~ 
 61.35  ~~adopted by department rule.~~ 
 61.36     ~~(b) The label must be at least 2-1/2 inches high and three~~ 
 62.1   ~~inches wide, with a yellow background, black border, and black~~ 
 62.2   ~~figures and letters.~~ 
 62.3      ~~(c) The number representing the octane of the gasoline must~~ 
 62.4   ~~be at least one inch high.~~ 
 62.5      ~~(d) The label must include the words "minimum octane" and~~ 
 62.6   ~~the term "(R+M)/2" or "(RON+MON)/2."~~ A licensed distributor of 
 62.7   automotive fuel must comply with the certification and 
 62.8   record-keeping provisions of Code of Federal Regulations, title 
 62.9   16, sections 306.8 and 306.9. 
 62.10     Subd. 3.  [DUTIES OF RETAILERS.] A person responsible for 
 62.11  the product who sells or transfers automotive fuel to a consumer 
 62.12  must comply with the automotive fuel rating posting and 
 62.13  record-keeping requirements, and the label specifications of 
 62.14  Code of Federal Regulations, title 16, sections 306.10 to 306.12.
 62.15     Subd. 4.  [DUTIES OF DIRECTOR.] Upon request, the director 
 62.16  shall provide any person with a copy of Code of Federal 
 62.17  Regulations, title 16, part 306.  Upon request, the director 
 62.18  shall provide any distributor, retailer, or organization of 
 62.19  distributors or retailers with the label specifications in Code 
 62.20  of Federal Regulations, title 16, section 306.12. 
 62.21     Sec. 57.  Minnesota Statutes 2004, section 268.19, 
 62.22  subdivision 1, is amended to read: 
 62.23     Subdivision 1.  [USE OF DATA.] (a) Except as otherwise 
 62.24  provided by this section, data gathered from any person pursuant 
 62.25  to the administration of the Minnesota Unemployment Insurance 
 62.26  Law are private data on individuals or nonpublic data not on 
 62.27  individuals as defined in section 13.02, subdivisions 9 and 12, 
 62.28  and may not be disclosed except pursuant to a court order or 
 62.29  section 13.05.  A subpoena shall not be considered a court 
 62.30  order.  These data may be disseminated to and used by the 
 62.31  following agencies without the consent of the subject of the 
 62.32  data:  
 62.33     (1) state and federal agencies specifically authorized 
 62.34  access to the data by state or federal law; 
 62.35     (2) any agency of any other state or any federal agency 
 62.36  charged with the administration of an unemployment insurance 
 63.1   program; 
 63.2      (3) any agency responsible for the maintenance of a system 
 63.3   of public employment offices for the purpose of assisting 
 63.4   individuals in obtaining employment; 
 63.5      (4) human rights agencies within Minnesota that have 
 63.6   enforcement powers; 
 63.7      (5) the Department of Revenue only to the extent necessary 
 63.8   for its duties under Minnesota laws; 
 63.9      (6) public and private agencies responsible for 
 63.10  administering publicly financed assistance programs for the 
 63.11  purpose of monitoring the eligibility of the program's 
 63.12  recipients; 
 63.13     (7) the Department of Labor and Industry and the Division 
 63.14  of Insurance Fraud Prevention in the Department of Commerce on 
 63.15  an interchangeable basis with the department for uses consistent 
 63.16  with the administration of their duties under Minnesota law; 
 63.17     (8) local and state welfare agencies for monitoring the 
 63.18  eligibility of the data subject for assistance programs, or for 
 63.19  any employment or training program administered by those 
 63.20  agencies, whether alone, in combination with another welfare 
 63.21  agency, or in conjunction with the department or to monitor and 
 63.22  evaluate the statewide Minnesota family investment program by 
 63.23  providing data on recipients and former recipients of food 
 63.24  stamps or food support, cash assistance under chapter 256, 256D, 
 63.25  256J, or 256K, child care assistance under chapter 119B, or 
 63.26  medical programs under chapter 256B, 256D, or 256L; 
 63.27     (9) local and state welfare agencies for the purpose of 
 63.28  identifying employment, wages, and other information to assist 
 63.29  in the collection of an overpayment debt in an assistance 
 63.30  program; 
 63.31     (10) local, state, and federal law enforcement agencies for 
 63.32  the sole purpose of ascertaining the last known address and 
 63.33  employment location of a person who is the subject of a criminal 
 63.34  investigation; 
 63.35     ~~(10)~~ (11) the federal Immigration and Naturalization 
 63.36  Service shall have access to data on specific individuals and 
 64.1   specific employers provided the specific individual or specific 
 64.2   employer is the subject of an investigation by that agency; and 
 64.3      ~~(11)~~ (12) the Department of Health solely for the purposes 
 64.4   of epidemiologic investigations.  
 64.5      (b) Data on individuals and employers that are collected, 
 64.6   maintained, or used by the department in an investigation 
 64.7   pursuant to section 268.182 are confidential as to data on 
 64.8   individuals and protected nonpublic data not on individuals as 
 64.9   defined in section 13.02, subdivisions 3 and 13, and must not be 
 64.10  disclosed except pursuant to statute or court order or to a 
 64.11  party named in a criminal proceeding, administrative or 
 64.12  judicial, for preparation of a defense.  
 64.13     (c) Data gathered by the department pursuant to the 
 64.14  administration of the Minnesota unemployment insurance program 
 64.15  must not be made the subject or the basis for any suit in any 
 64.16  civil proceedings, administrative or judicial, unless the action 
 64.17  is initiated by the department. 
 64.18     Sec. 58.  Minnesota Statutes 2004, section 296A.01, 
 64.19  subdivision 2, is amended to read: 
 64.20     Subd. 2.  [AGRICULTURAL ALCOHOL GASOLINE.] "Agricultural 
 64.21  alcohol gasoline" means a gasoline-ethanol blend of up to ten 
 64.22  percent agriculturally derived fermentation ethanol derived from 
 64.23  agricultural products, such as potatoes, cereal, grains, cheese 
 64.24  whey, sugar beets, forest products, or other renewable 
 64.25  resources, that: 
 64.26     (1) meets the specifications in ASTM specification ~~D4806-01~~ 
 64.27  D4806-04a; and 
 64.28     (2) is denatured as specified in Code of Federal 
 64.29  Regulations, title 27, parts 20 and 21. 
 64.30     Sec. 59.  Minnesota Statutes 2004, section 296A.01, 
 64.31  subdivision 7, is amended to read: 
 64.32     Subd. 7.  [AVIATION GASOLINE.] "Aviation gasoline" means 
 64.33  any gasoline that is capable of use for the purpose of producing 
 64.34  or generating power for propelling internal combustion engine 
 64.35  aircraft, that meets the specifications in ASTM 
 64.36  specification ~~D910-00~~ D910-04, and that either: 
 65.1      (1) is invoiced and billed by a producer, manufacturer, 
 65.2   refiner, or blender to a distributor or dealer, by a distributor 
 65.3   to a dealer or consumer, or by a dealer to consumer, as 
 65.4   "aviation gasoline"; or 
 65.5      (2) whether or not invoiced and billed as provided in 
 65.6   clause (1), is received, sold, stored, or withdrawn from storage 
 65.7   by any person, to be used for the purpose of producing or 
 65.8   generating power for propelling internal combustion engine 
 65.9   aircraft. 
 65.10     Sec. 60.  Minnesota Statutes 2004, section 296A.01, 
 65.11  subdivision 8, is amended to read: 
 65.12     Subd. 8.  [AVIATION TURBINE FUEL AND JET FUEL.] "Aviation 
 65.13  turbine fuel" and "jet fuel" mean blends of hydrocarbons derived 
 65.14  from crude petroleum, natural gasoline, and synthetic 
 65.15  hydrocarbons, intended for use in aviation turbine engines, and 
 65.16  that meet the specifications in ASTM specification 
 65.17  ~~D1655-01~~ D1655.04. 
 65.18     Sec. 61.  Minnesota Statutes 2004, section 296A.01, 
 65.19  subdivision 14, is amended to read: 
 65.20     Subd. 14.  [DIESEL FUEL OIL.] "Diesel fuel oil" means a 
 65.21  petroleum distillate or blend of petroleum distillate and 
 65.22  residual fuels, intended for use as a motor fuel in internal 
 65.23  combustion diesel engines, that meets the specifications in ASTM 
 65.24  specification ~~D975-01A~~ D975-04b, except that diesel fuel oil is 
 65.25  not required to meet the diesel lubricity standard until the 
 65.26  date that the biodiesel fuel requirement in section 239.77, 
 65.27  subdivision 2, becomes effective or December 31, 2005, whichever 
 65.28  comes first.  Diesel fuel includes number 1 and number 2 fuel 
 65.29  oils.  K-1 kerosene is not diesel fuel unless it is blended with 
 65.30  diesel fuel for use in motor vehicles.  
 65.31     Sec. 62.  Minnesota Statutes 2004, section 296A.01, 
 65.32  subdivision 19, is amended to read: 
 65.33     Subd. 19.  [E85.] "E85" means a petroleum product that is a 
 65.34  blend of agriculturally derived denatured ethanol and gasoline 
 65.35  or natural gasoline that typically contains 85 percent ethanol 
 65.36  by volume, but at a minimum must contain 60 percent ethanol by 
 66.1   volume.  For the purposes of this chapter, the energy content of 
 66.2   E85 will be considered to be 82,000 BTUs per gallon.  E85 
 66.3   produced for use as a motor fuel in alternative fuel vehicles as 
 66.4   defined in subdivision 5 must comply with ASTM specification 
 66.5   D5798-99 (2004). 
 66.6      Sec. 63.  Minnesota Statutes 2004, section 296A.01, 
 66.7   subdivision 20, is amended to read: 
 66.8      Subd. 20.  [ETHANOL, DENATURED.] "Ethanol, denatured" means 
 66.9   ethanol that is to be blended with gasoline, has been 
 66.10  agriculturally derived, and complies with ASTM specification 
 66.11  ~~D4806-01~~ D4806-04a.  This includes the requirement that ethanol 
 66.12  may be denatured only as specified in Code of Federal 
 66.13  Regulations, title 27, parts 20 and 21. 
 66.14     Sec. 64.  Minnesota Statutes 2004, section 296A.01, 
 66.15  subdivision 22, is amended to read: 
 66.16     Subd. 22.  [GAS TURBINE FUEL OIL.] "Gas turbine fuel oil" 
 66.17  means fuel that contains mixtures of hydrocarbon oils free of 
 66.18  inorganic acid and excessive amounts of solid or fibrous foreign 
 66.19  matter, intended for use in nonaviation gas turbine engines, and 
 66.20  that meets the specifications in ASTM specification 
 66.21  ~~D2880-00~~ D2880-03. 
 66.22     Sec. 65.  Minnesota Statutes 2004, section 296A.01, 
 66.23  subdivision 23, is amended to read: 
 66.24     Subd. 23.  [GASOLINE.] (a) "Gasoline" means: 
 66.25     (1) all products commonly or commercially known or sold as 
 66.26  gasoline regardless of their classification or uses, except 
 66.27  casinghead gasoline, absorption gasoline, condensation gasoline, 
 66.28  drip gasoline, or natural gasoline that under the requirements 
 66.29  of section 239.761, subdivision 3, must not be blended with 
 66.30  gasoline that has been sold, transferred, or otherwise removed 
 66.31  from a refinery or terminal; and 
 66.32     (2) any liquid prepared, advertised, offered for sale or 
 66.33  sold for use as, or commonly and commercially used as, a fuel in 
 66.34  spark-ignition, internal combustion engines, and that when 
 66.35  tested by the Weights and Measures Division meets the 
 66.36  specifications in ASTM specification ~~D4814-01~~ D4814-04a. 
 67.1      (b) Gasoline that is not blended with ethanol must not be 
 67.2   contaminated with water or other impurities and must comply with 
 67.3   both ASTM specification ~~D4814-01~~ D4814-04a and the volatility 
 67.4   requirements in Code of Federal Regulations, title 40, part 80. 
 67.5      (c) After gasoline is sold, transferred, or otherwise 
 67.6   removed from a refinery or terminal, a person responsible for 
 67.7   the product: 
 67.8      (1) may blend the gasoline with agriculturally derived 
 67.9   ethanol, as provided in subdivision 24; 
 67.10     (2) must not blend the gasoline with any oxygenate other 
 67.11  than denatured, agriculturally derived ethanol; 
 67.12     (3) must not blend the gasoline with other petroleum 
 67.13  products that are not gasoline or denatured, agriculturally 
 67.14  derived ethanol; 
 67.15     (4) must not blend the gasoline with products commonly and 
 67.16  commercially known as casinghead gasoline, absorption gasoline, 
 67.17  condensation gasoline, drip gasoline, or natural gasoline; and 
 67.18     (5) may blend the gasoline with a detergent additive, an 
 67.19  antiknock additive, or an additive designed to replace 
 67.20  tetra-ethyl lead, that is registered by the EPA. 
 67.21     Sec. 66.  Minnesota Statutes 2004, section 296A.01, 
 67.22  subdivision 24, is amended to read: 
 67.23     Subd. 24.  [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] 
 67.24  "Gasoline blended with nonethanol oxygenate" means gasoline 
 67.25  blended with ETBE, MTBE, or other alcohol or ether, except 
 67.26  denatured ethanol, that is approved as an oxygenate by the EPA, 
 67.27  and that complies with ASTM specification ~~D4814-01~~ D4814-04a.  
 67.28  Oxygenates, other than denatured ethanol, must not be blended 
 67.29  into gasoline after the gasoline has been sold, transferred, or 
 67.30  otherwise removed from a refinery or terminal. 
 67.31     Sec. 67.  Minnesota Statutes 2004, section 296A.01, 
 67.32  subdivision 25, is amended to read: 
 67.33     Subd. 25.  [GASOLINE BLENDED WITH ETHANOL.] "Gasoline 
 67.34  blended with ethanol" means gasoline blended with up to ten 
 67.35  percent, by volume, agriculturally derived, denatured ethanol.  
 67.36  The blend must comply with the volatility requirements in Code 
 68.1   of Federal Regulations, title 40, part 80.  The blend must also 
 68.2   comply with ASTM specification ~~D4814-01~~ D4814-04a, or the 
 68.3   gasoline base stock from which a gasoline-ethanol blend was 
 68.4   produced must comply with ASTM specification ~~D4814-01~~ D4814-04a; 
 68.5   and the gasoline-ethanol blend must not be blended with 
 68.6   casinghead gasoline, absorption gasoline, condensation gasoline, 
 68.7   drip gasoline, or natural gasoline after the gasoline-ethanol 
 68.8   blend has been sold, transferred, or otherwise removed from a 
 68.9   refinery or terminal.  The blend need not comply with ASTM 
 68.10  specification ~~D4814-01~~ D4814-04a if it is subjected to a 
 68.11  standard distillation test.  For a distillation test, a 
 68.12  gasoline-ethanol blend is not required to comply with the 
 68.13  temperature specification at the 50 percent liquid recovery 
 68.14  point, if the gasoline from which the gasoline-ethanol blend was 
 68.15  produced complies with all of the distillation specifications. 
 68.16     Sec. 68.  Minnesota Statutes 2004, section 296A.01, 
 68.17  subdivision 26, is amended to read: 
 68.18     Subd. 26.  [HEATING FUEL OIL.] "Heating fuel oil" means a 
 68.19  petroleum distillate, blend of petroleum distillates and 
 68.20  residuals, or petroleum residual heating fuel that meets the 
 68.21  specifications in ASTM specification ~~D396-01~~ D396-02a. 
 68.22     Sec. 69.  Minnesota Statutes 2004, section 296A.01, 
 68.23  subdivision 28, is amended to read: 
 68.24     Subd. 28.  [KEROSENE.] "Kerosene" means a refined petroleum 
 68.25  distillate consisting of a homogeneous mixture of hydrocarbons 
 68.26  essentially free of water, inorganic acidic and basic compounds, 
 68.27  and excessive amounts of particulate contaminants and that meets 
 68.28  the specifications in ASTM specification ~~D3699-01~~ D3699-03. 
 68.29     Sec. 70.  Minnesota Statutes 2004, section 298.22, is 
 68.30  amended by adding a subdivision to read: 
 68.31     Subd. 9.  [SALE OR PRIVATIZATION OF FUNCTIONS.] The 
 68.32  commissioner of Iron Range resources and rehabilitation may not 
 68.33  sell or privatize any project area or function of the agency 
 68.34  without prior approval by a majority vote of the board. 
 68.35     Sec. 71.  [325F.991] [911 EMERGENCY PHONE SERVICE 
 68.36  REPRESENTATIONS.] 
 69.1      Subdivision 1.  [DEFINITIONS.] For purposes of this 
 69.2   section, the terms defined in this subdivision have the meanings 
 69.3   given them. 
 69.4      (a) "911 emergency telecommunications system" means a 
 69.5   dedicated emergency telecommunications system required by 
 69.6   section 403.025. 
 69.7      (b) "Person" means an individual, corporation, firm, or 
 69.8   other legal entity. 
 69.9      (c) "Service provider" means a person doing business in 
 69.10  Minnesota who provides real time, two-way voice service 
 69.11  interconnected with the public switched telephone network using 
 69.12  numbers allocated for Minnesota by the North American Numbering 
 69.13  Plan Administration. 
 69.14     Subd. 2.  [REPRESENTATIONS OF 911 SERVICE.] A person shall 
 69.15  not advertise, market, or otherwise represent that the person 
 69.16  furnishes a service capable of providing access to emergency 
 69.17  services by dialing 911 unless the person provides a service 
 69.18  that routes 911 calls through the 911 emergency 
 69.19  telecommunications system. 
 69.20     Subd. 3.  [DISCLOSURE.] A service provider that does not 
 69.21  provide 911 dialing that routes 911 calls through the 911 
 69.22  emergency telecommunications system must disclose that fact in 
 69.23  all advertisements, marketing materials, and contracts.  The 
 69.24  disclosure must be in capital letters, in 12-point font, and on 
 69.25  the front page of the advertisement, marketing materials, and 
 69.26  contracts.  The disclosure must state:  "THIS SERVICE DOES NOT 
 69.27  ROUTE 911 CALLS THROUGH THE 911 EMERGENCY SYSTEM." 
 69.28     Subd. 4.  [CERTAIN CALLS NOT 911 CALLS.] For purposes of 
 69.29  this section, 911 calls routed to the general access number at a 
 69.30  public safety answering point do not qualify as being routed 
 69.31  through a 911 emergency telecommunications system.  
 69.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 69.33  following final enactment.  
 69.34     Sec. 72.  Minnesota Statutes 2004, section 326.975, 
 69.35  subdivision 1, is amended to read: 
 69.36     Subdivision 1.  [GENERALLY.] (a) In addition to any other 
 70.1   fees, each applicant for a license under sections 326.83 to 
 70.2   326.98 shall pay a fee to the contractor's recovery fund.  The 
 70.3   contractor's recovery fund is created in the state treasury and 
 70.4   must be administered by the commissioner in the manner and 
 70.5   subject to all the requirements and limitations provided by 
 70.6   section 82.43 with the following exceptions: 
 70.7      (1) each licensee who renews a license shall pay in 
 70.8   addition to the appropriate renewal fee an additional fee which 
 70.9   shall be credited to the contractor's recovery fund.  The amount 
 70.10  of the fee shall be based on the licensee's gross annual 
 70.11  receipts for the licensee's most recent fiscal year preceding 
 70.12  the renewal, on the following scale: 
 70.13            Fee           Gross Receipts
 70.14            $100          under $1,000,000
 70.15            $150          $1,000,000 to $5,000,000
 70.16            $200          over $5,000,000
 70.17  Any person who receives a new license shall pay a fee based on 
 70.18  the same scale; 
 70.19     (2)(i) the sole purpose of this fund is to compensate any 
 70.20  aggrieved owner or lessee of residential property located within 
 70.21  this state who obtains a final judgment in any court of 
 70.22  competent jurisdiction against a licensee licensed under section 
 70.23  326.84, on grounds of fraudulent, deceptive, or dishonest 
 70.24  practices, conversion of funds, or failure of performance 
 70.25  arising directly out of any transaction when the judgment debtor 
 70.26  was licensed and performed any of the activities enumerated 
 70.27  under section 326.83, subdivision 19, on the owner's residential 
 70.28  property or on residential property rented by the lessee, or on 
 70.29  new residential construction which was never occupied prior to 
 70.30  purchase by the owner, or which was occupied by the licensee for 
 70.31  less than one year prior to purchase by the owner, and which 
 70.32  cause of action arose on or after April 1, 1994; and 
 70.33     (ii) reimburse the Department of Commerce for all legal and 
 70.34  administrative expenses, including staffing costs, incurred in 
 70.35  administering the fund; 
 70.36     (3) nothing may obligate the fund for more than $50,000 per 
 71.1   claimant, nor more than $75,000 per licensee; and 
 71.2      (4) nothing may obligate the fund for claims based on a 
 71.3   cause of action that arose before the licensee paid the recovery 
 71.4   fund fee set in clause (1), or as provided in section 326.945, 
 71.5   subdivision 3.  
 71.6      (b) Should the commissioner pay from the contractor's 
 71.7   recovery fund any amount in settlement of a claim or toward 
 71.8   satisfaction of a judgment against a licensee, the license shall 
 71.9   be automatically suspended upon the effective date of an order 
 71.10  by the court authorizing payment from the fund.  No licensee 
 71.11  shall be granted reinstatement until the licensee has repaid in 
 71.12  full, plus interest at the rate of 12 percent a year, twice the 
 71.13  amount paid from the fund on the licensee's account, and has 
 71.14  obtained a surety bond issued by an insurer authorized to 
 71.15  transact business in this state in the amount of at least 
 71.16  $40,000.  
 71.17     Sec. 73.  Minnesota Statutes 2004, section 345.47, 
 71.18  subdivision 3, is amended to read: 
 71.19     Subd. 3.  [SECURITIES.] Securities listed on an established 
 71.20  stock exchange shall be sold at the prevailing prices on the 
 71.21  exchange.  Other securities may be sold over the counter at 
 71.22  prevailing prices or, ~~with prior approval of the State Board of~~ 
 71.23  ~~Investment,~~ by another method the commissioner determines 
 71.24  advisable.  United States government savings bonds and United 
 71.25  States war bonds shall be presented to the United States for 
 71.26  payment. 
 71.27     Sec. 74.  Minnesota Statutes 2004, section 345.47, 
 71.28  subdivision 3a, is amended to read: 
 71.29     Subd. 3a.  [HOLDING PERIOD.] ~~All securities presumed~~ 
 71.30  ~~abandoned under section 345.35 and delivered to the commissioner~~ 
 71.31  ~~must be held for at least three years before they are sold.  A~~ 
 71.32  ~~person making a claim under this section is entitled to receive~~ 
 71.33  ~~either the securities delivered to the commissioner by the~~ 
 71.34  ~~holder, if they still remain in the hands of the commissioner,~~ 
 71.35  ~~or the proceeds received from the sale, but no person has any~~ 
 71.36  ~~claim under this section against the state, the holder, any~~ 
 72.1   ~~transfer agent, registrar, or other person acting for or on~~ 
 72.2   ~~behalf of a holder for any appreciation in the value of the~~ 
 72.3   ~~property occurring after delivery by the holder to the~~ 
 72.4   ~~commissioner.~~  If the property is of a type customarily sold on 
 72.5   a recognized market or of a type which may be sold over the 
 72.6   counter at prevailing prices, the commissioner may sell the 
 72.7   property without notice by publication or otherwise.  The 
 72.8   commissioner may proceed with the liquidation after holding for 
 72.9   one year, with the exception of securities being held as the 
 72.10  result of an insurance company demutualization, these types of 
 72.11  securities may be sold upon receipt.  The language provided in 
 72.12  this section grants to the commissioner express authority to 
 72.13  sell any property including, but not limited to, stocks, bonds, 
 72.14  notes, bills, and all other public or private securities.  A 
 72.15  person making a claim under section 345.35 is entitled to 
 72.16  receive the securities delivered to the administrator by the 
 72.17  holder, if they still remain in the custody of the 
 72.18  administrator, or the net proceeds received from sale, and is 
 72.19  not entitled to receive any appreciation in the value of the 
 72.20  property occurring after sale by the commissioner.  The 
 72.21  commissioner may liquidate all unclaimed securities currently 
 72.22  held in custody in accordance with the provisions of this 
 72.23  section. 
 72.24     Sec. 75.  Minnesota Statutes 2004, section 373.40, 
 72.25  subdivision 1, is amended to read: 
 72.26     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 72.27  section, the following terms have the meanings given. 
 72.28     (a) "Bonds" means an obligation as defined under section 
 72.29  475.51. 
 72.30     (b) "Capital improvement" means acquisition or betterment 
 72.31  of public lands, development rights in the form of conservation 
 72.32  easements under chapter 84C, buildings, or other improvements 
 72.33  within the county for the purpose of a county courthouse, 
 72.34  administrative building, health or social service facility, 
 72.35  correctional facility, jail, law enforcement center, hospital, 
 72.36  morgue, library, park, qualified indoor ice arena, and roads and 
 73.1   bridges.  An improvement must have an expected useful life of 
 73.2   five years or more to qualify.  "Capital improvement" does not 
 73.3   include light rail transit or any activity related to it or a 
 73.4   recreation or sports facility building (such as, but not limited 
 73.5   to, a gymnasium, ice arena, racquet sports facility, swimming 
 73.6   pool, exercise room or health spa), unless the building is part 
 73.7   of an outdoor park facility and is incidental to the primary 
 73.8   purpose of outdoor recreation. 
 73.9      (c) ~~"Commissioner" means the commissioner of employment and~~ 
 73.10  ~~economic development.~~ 
 73.11     ~~(d)~~ "Metropolitan county" means a county located in the 
 73.12  seven-county metropolitan area as defined in section 473.121 or 
 73.13  a county with a population of 90,000 or more. 
 73.14     ~~(e)~~ (d) "Population" means the population established by 
 73.15  the most recent of the following (determined as of the date the 
 73.16  resolution authorizing the bonds was adopted): 
 73.17     (1) the federal decennial census, 
 73.18     (2) a special census conducted under contract by the United 
 73.19  States Bureau of the Census, or 
 73.20     (3) a population estimate made either by the Metropolitan 
 73.21  Council or by the state demographer under section 4A.02. 
 73.22     ~~(f)~~ (e) "Qualified indoor ice arena" means a facility that 
 73.23  meets the requirements of section 373.43. 
 73.24     ~~(g)~~ (f) "Tax capacity" means total taxable market value, 
 73.25  but does not include captured market value. 
 73.26     Sec. 76.  Minnesota Statutes 2004, section 373.40, 
 73.27  subdivision 3, is amended to read: 
 73.28     Subd. 3.  [CAPITAL IMPROVEMENT PLAN.] (a) A county may 
 73.29  adopt a capital improvement plan.  The plan must cover at least 
 73.30  the five-year period beginning with the date of its adoption.  
 73.31  The plan must set forth the estimated schedule, timing, and 
 73.32  details of specific capital improvements by year, together with 
 73.33  the estimated cost, the need for the improvement, and sources of 
 73.34  revenues to pay for the improvement.  In preparing the capital 
 73.35  improvement plan, the county board must consider for each 
 73.36  project and for the overall plan: 
 74.1      (1) the condition of the county's existing infrastructure, 
 74.2   including the projected need for repair or replacement; 
 74.3      (2) the likely demand for the improvement; 
 74.4      (3) the estimated cost of the improvement; 
 74.5      (4) the available public resources; 
 74.6      (5) the level of overlapping debt in the county; 
 74.7      (6) the relative benefits and costs of alternative uses of 
 74.8   the funds; 
 74.9      (7) operating costs of the proposed improvements; and 
 74.10     (8) alternatives for providing services more efficiently 
 74.11  through shared facilities with other counties or local 
 74.12  government units. 
 74.13     (b) The capital improvement plan and annual amendments to 
 74.14  it ~~must be~~ are not effective until approved by the county board 
 74.15  after public hearing.  ~~The county must submit the capital~~ 
 74.16  ~~improvement plan to the community development division of the~~ 
 74.17  ~~Department of Employment and Economic Development.  The plan is~~ 
 74.18  ~~not effective if the commissioner disapproves the plan within 90~~ 
 74.19  ~~days after it was submitted.  If the commissioner has not~~ 
 74.20  ~~disapproved the plan within 90 days after its submission, the~~ 
 74.21  ~~plan is deemed approved and effective.  The commissioner shall~~ 
 74.22  ~~disapprove a capital improvement plan only if the commissioner~~ 
 74.23  ~~determines (1) that the planned improvements cannot be financed~~ 
 74.24  ~~within the limits specified in subdivision 4, or (2) the county~~ 
 74.25  ~~in preparing the plan did not consider the factors listed in~~ 
 74.26  ~~this subdivision or failed to gather the information necessary~~ 
 74.27  ~~to evaluate the plan under the factors, or (3) the proposed~~ 
 74.28  ~~improvements will result in unnecessary duplication of public~~ 
 74.29  ~~facilities provided by other units of government in the region~~ 
 74.30  ~~or there is insufficient demand for the facility.  If the plan~~ 
 74.31  ~~is disapproved by the commissioner and the county board does not~~ 
 74.32  ~~withdraw the plan, the capital improvement plan must be~~ 
 74.33  ~~submitted to the voters for approval.  If a majority of the~~ 
 74.34  ~~voters approve, the plan is approved and effective.~~ 
 74.35     Sec. 77.  Minnesota Statutes 2004, section 462A.05, 
 74.36  subdivision 3a, is amended to read: 
 75.1      Subd. 3a.  [REFINANCING ~~NONPROFITS~~; RESIDENTIAL HOUSING.] 
 75.2   It may refinance the existing indebtedness of ~~nonprofit~~ 
 75.3   ~~entities, as defined by the agency~~ owners of rental property, 
 75.4   secured by residential housing for occupancy by persons and 
 75.5   families of low and moderate income, if refinancing is 
 75.6   determined by the agency to be necessary to reduce housing costs 
 75.7   to an affordable level or to maintain the supply of affordable 
 75.8   low-income housing.  The authority granted in this subdivision 
 75.9   is in addition to and not in limitation of the authority granted 
 75.10  in section 462A.05, subdivision 14. 
 75.11     Sec. 78.  Minnesota Statutes 2004, section 462A.33, 
 75.12  subdivision 2, is amended to read: 
 75.13     Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
 75.14  may be made to a city, a federally recognized American Indian 
 75.15  tribe or subdivision located in Minnesota, a tribal housing 
 75.16  corporation, a private developer, a nonprofit organization, or 
 75.17  the owner of the housing, including individuals.  For the 
 75.18  purpose of this section, "city" has the meaning given it in 
 75.19  section 462A.03, subdivision 21.  To the extent practicable, 
 75.20  grants and loans shall be made so that an approximately equal 
 75.21  number of housing units are financed in the metropolitan area 
 75.22  and in the nonmetropolitan area. 
 75.23     Sec. 79.  Minnesota Statutes 2004, section 517.08, 
 75.24  subdivision 1b, is amended to read: 
 75.25     Subd. 1b.  [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.] 
 75.26  (a) The local registrar shall examine upon oath the party 
 75.27  applying for a license relative to the legality of the 
 75.28  contemplated marriage.  If at the expiration of a five-day 
 75.29  period, on being satisfied that there is no legal impediment to 
 75.30  it, including the restriction contained in section 259.13, the 
 75.31  local registrar shall issue the license, containing the full 
 75.32  names of the parties before and after marriage, and county and 
 75.33  state of residence, with the county seal attached, and make a 
 75.34  record of the date of issuance.  The license shall be valid for 
 75.35  a period of six months.  In case of emergency or extraordinary 
 75.36  circumstances, a judge of the district court of the county in 
 76.1   which the application is made, may authorize the license to be 
 76.2   issued at any time before the expiration of the five days.  
 76.3   Except as provided in paragraph (b), the local registrar shall 
 76.4   collect from the applicant a fee of ~~$85~~ $75 for administering 
 76.5   the oath, issuing, recording, and filing all papers required, 
 76.6   and preparing and transmitting to the state registrar of vital 
 76.7   statistics the reports of marriage required by this section.  If 
 76.8   the license should not be used within the period of six months 
 76.9   due to illness or other extenuating circumstances, it may be 
 76.10  surrendered to the local registrar for cancellation, and in that 
 76.11  case a new license shall issue upon request of the parties of 
 76.12  the original license without fee.  A local registrar who 
 76.13  knowingly issues or signs a marriage license in any manner other 
 76.14  than as provided in this section shall pay to the parties 
 76.15  aggrieved an amount not to exceed $1,000. 
 76.16     (b) The marriage license fee for parties who have completed 
 76.17  at least 12 hours of premarital education is $20.  In order to 
 76.18  qualify for the reduced fee, the parties must submit a signed 
 76.19  and dated statement from the person who provided the premarital 
 76.20  education confirming that it was received.  The premarital 
 76.21  education must be provided by a licensed or ordained minister or 
 76.22  the minister's designee, a person authorized to solemnize 
 76.23  marriages under section 517.18, or a person authorized to 
 76.24  practice marriage and family therapy under section 148B.33.  The 
 76.25  education must include the use of a premarital inventory and the 
 76.26  teaching of communication and conflict management skills.  
 76.27     (c) The statement from the person who provided the 
 76.28  premarital education under paragraph (b) must be in the 
 76.29  following form:  
 76.30     "I, (name of educator), confirm that (names of both 
 76.31  parties) received at least 12 hours of premarital education that 
 76.32  included the use of a premarital inventory and the teaching of 
 76.33  communication and conflict management skills.  I am a licensed 
 76.34  or ordained minister, a person authorized to solemnize marriages 
 76.35  under Minnesota Statutes, section 517.18, or a person licensed 
 76.36  to practice marriage and family therapy under Minnesota 
 77.1   Statutes, section 148B.33." 
 77.2      The names of the parties in the educator's statement must 
 77.3   be identical to the legal names of the parties as they appear in 
 77.4   the marriage license application.  Notwithstanding section 
 77.5   138.17, the educator's statement must be retained for seven 
 77.6   years, after which time it may be destroyed.  
 77.7      (d) If section 259.13 applies to the request for a marriage 
 77.8   license, the local registrar shall grant the marriage license 
 77.9   without the requested name change.  Alternatively, the local 
 77.10  registrar may delay the granting of the marriage license until 
 77.11  the party with the conviction: 
 77.12     (1) certifies under oath that 30 days have passed since 
 77.13  service of the notice for a name change upon the prosecuting 
 77.14  authority and, if applicable, the attorney general and no 
 77.15  objection has been filed under section 259.13; or 
 77.16     (2) provides a certified copy of the court order granting 
 77.17  it.  The parties seeking the marriage license shall have the 
 77.18  right to choose to have the license granted without the name 
 77.19  change or to delay its granting pending further action on the 
 77.20  name change request. 
 77.21     Sec. 80.  Minnesota Statutes 2004, section 517.08, 
 77.22  subdivision 1c, is amended to read: 
 77.23     Subd. 1c.  [DISPOSITION OF LICENSE FEE.] (a) Of the 
 77.24  marriage license fee collected pursuant to subdivision 1b, 
 77.25  paragraph (a), $15 must be retained by the county.  The local 
 77.26  registrar must pay ~~$70~~ $60 to the commissioner of finance to be 
 77.27  deposited as follows: 
 77.28     (1) $50 in the general fund; 
 77.29     (2) $3 in the special revenue fund to be appropriated to 
 77.30  the commissioner of education for parenting time centers under 
 77.31  section 119A.37; 
 77.32     (3) $2 in the special revenue fund to be appropriated to 
 77.33  the commissioner of health for developing and implementing the 
 77.34  MN ENABL program under section 145.9255; and 
 77.35     (4) ~~$10 in the special revenue fund to be appropriated to~~ 
 77.36  ~~the commissioner of employment and economic development for the~~ 
 78.1   ~~displaced homemaker program under section 116L.96; and~~ 
 78.2      ~~(5)~~ $5 in the special revenue fund to be appropriated to 
 78.3   the commissioner of human services for the Minnesota Healthy 
 78.4   Marriage and Responsible Fatherhood Initiative under section 
 78.5   256.742. 
 78.6      (b) Of the $20 fee under subdivision 1b, paragraph (b), $15 
 78.7   must be retained by the county.  The local registrar must pay $5 
 78.8   to the commissioner of finance to be distributed as provided in 
 78.9   paragraph (a), clauses (2) and (3). 
 78.10     (c) The increase in the marriage license fee under 
 78.11  paragraph (a) provided for in Laws 2004, chapter 273, and 
 78.12  disbursement of the increase in that fee to the special fund for 
 78.13  the Minnesota Healthy Marriage and Responsible Fatherhood 
 78.14  Initiative under paragraph (a), clause ~~(5)~~ (4), is contingent 
 78.15  upon the receipt of federal funding under United States Code, 
 78.16  title 42, section 1315, for purposes of the initiative. 
 78.17     Sec. 81.  Laws 1999, chapter 224, section 7, as amended by 
 78.18  Laws 2004, chapter 261, article 6, section 3, is amended to read:
 78.19     Sec. 7.  [SUNSET.] 
 78.20     Sections 2 and 4 expire on August 1, ~~2005~~ 2006, and 
 78.21  Minnesota Statutes 1998, sections 237.63, 237.65, and 237.68, 
 78.22  expire on December 31, 2004.  
 78.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 78.24  following final enactment.  
 78.25     Sec. 82.  [INCREASED JOB TRAINING AND WAGES FOR 
 78.26  MINORITIES.] 
 78.27     Subdivision 1.  [INITIATIVE.] The commissioner of 
 78.28  employment and economic development shall develop an initiative 
 78.29  to promote employment opportunities for minorities, including 
 78.30  Native Americans, with a particular focus on opportunities for 
 78.31  American blacks, in the state of Minnesota.  At a minimum, the 
 78.32  initiative should significantly expand the job training 
 78.33  available to minorities and promote substantial increases in the 
 78.34  wages paid to minorities, at least to a rate well above living 
 78.35  wage, and within several years to equality. 
 78.36     Subd. 2.  [INTERIM REPORT.] The commissioner, in 
 79.1   consultation with the Governor's Workforce Development Council, 
 79.2   shall prepare an interim report detailing the parameters of the 
 79.3   initiative to the governor and the chair of the finance 
 79.4   committee in each house of the legislature that has jurisdiction 
 79.5   over employment.  The interim report must be made within 90 days 
 79.6   of the effective date of this section. 
 79.7      Subd. 3.  [FINAL REPORT.] The commissioner, in consultation 
 79.8   with the Governor's Workforce Development Council, shall prepare 
 79.9   a final report detailing a proposed initiative by January 10, 
 79.10  2006. 
 79.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 79.12  following final enactment. 
 79.13     Sec. 83.  [SMALL BUSINESS DEVELOPMENT STUDY.] 
 79.14     The commissioner of employment and economic development 
 79.15  must investigate options for charging fees for services that 
 79.16  help companies seek federal Phase II Small Business Innovation 
 79.17  Research grants.  The results and recommendations from this 
 79.18  study must be submitted to the chairs of the house and senate 
 79.19  economic development finance committees by February 1, 2006. 
 79.20     Sec. 84.  [PREVAILING WAGE ADVISORY COUNCIL.] 
 79.21     The commissioner of labor and industry and the commissioner 
 79.22  of employment and economic development shall convene a 
 79.23  prevailing wage advisory council.  The advisory council shall 
 79.24  consist of 12 members as follows:  the presidents of the largest 
 79.25  statewide Minnesota business and organized labor organizations 
 79.26  as measured by the number of employees of its business members 
 79.27  and in its affiliated labor organizations in Minnesota on July 
 79.28  1, 2005.  The governor, the majority leader of the senate, the 
 79.29  speaker of the house of representatives, the minority leader of 
 79.30  the senate, and the minority leader of the house of 
 79.31  representatives shall each select a business and a labor 
 79.32  representative.  At least four of the labor representatives 
 79.33  shall be chosen from the affiliated membership of the Minnesota 
 79.34  AFL-CIO.  At least two of the business representatives shall be 
 79.35  representatives of small employers as defined in Minnesota 
 79.36  Statutes, section 177.24, subdivision 1, paragraph (a), clause 
 80.1   (2).  None of the council members shall represent attorneys, 
 80.2   health care providers, qualified rehabilitation consultants, or 
 80.3   insurance companies. 
 80.4      The advisory council shall study whether: 
 80.5      (1) the responsibility of collecting information needed to 
 80.6   ascertain construction prevailing wages should be transferred 
 80.7   from the Department of Labor and Industry to the Department of 
 80.8   Employment and Economic Development; 
 80.9      (2) the construction prevailing wage rate should be 
 80.10  calculated on a regional basis; and 
 80.11     (3) the construction prevailing wage rate should be an 
 80.12  average of the rate plus benefits paid to workers engaged in the 
 80.13  same class of labor within the area. 
 80.14     The advisory council shall make a recommendation on these 
 80.15  issues to the governor and the chairs of the committees with 
 80.16  jurisdiction over labor issues in the senate and house of 
 80.17  representatives by January 15, 2006.  
 80.18     Sec. 85.  [SESQUICENTENNIAL COMMISSION.] 
 80.19     Subdivision 1.  [COMMISSION; PURPOSE.] The Minnesota 
 80.20  Sesquicentennial Commission is established to plan for 
 80.21  activities relating to Minnesota's 150th anniversary of 
 80.22  statehood.  The commission shall create a plan for capital 
 80.23  improvements, celebratory activities, and public engagement in 
 80.24  every county in the state of Minnesota. 
 80.25     Subd. 2.  [MEMBERSHIP.] The commission shall consist of 17 
 80.26  members who shall serve until the completion of the 
 80.27  sesquicentennial year of statehood, appointed as follows: 
 80.28     (1) nine members appointed by the governor, representing 
 80.29  major corporate, nonprofit, and public sectors of the state, 
 80.30  selected from all parts of the state; 
 80.31     (2) two members appointed by the speaker of the house of 
 80.32  representatives; 
 80.33     (3) two members appointed by the minority leader of the 
 80.34  house of representatives; 
 80.35     (4) two members from the majority party in the senate, 
 80.36  appointed by the Subcommittee on Committees; and 
 81.1      (5) two members from the minority party in the senate, 
 81.2   appointed by the Subcommittee on Committees. 
 81.3      Subd. 3.  [COMPENSATION; OPERATION.] Members shall select a 
 81.4   chair from the membership of the commission.  The chair shall 
 81.5   convene all meetings and set the agenda for the commission.  The 
 81.6   Minnesota Historical Society shall provide office space and 
 81.7   staff support for the commission, and shall cooperate with the 
 81.8   University of Minnesota and Minnesota State Colleges and 
 81.9   Universities to support the programs of the commission.  
 81.10  Meetings shall be at the call of the chair.  The commission may 
 81.11  appoint an advisory council to advise and assist the commission 
 81.12  with its duties.  Members shall receive no compensation for 
 81.13  service on the Sesquicentennial Commission.  Members appointed 
 81.14  by the governor may be reimbursed for expenses under Minnesota 
 81.15  Statutes, section 15.059, subdivision 3. 
 81.16     Subd. 4.  [DUTIES.] The commission shall have the following 
 81.17  duties: 
 81.18     (1) to present to the governor and legislature a plan for 
 81.19  capital grants to pay for capital improvements on Minnesota's 
 81.20  historic public and private buildings, to be known as 
 81.21  sesquicentennial grants; 
 81.22     (2) to seek funding for activities to celebrate the 150th 
 81.23  anniversary of statehood, and to form partnerships with private 
 81.24  parties to further this mission; and 
 81.25     (3) to present an annual report to the governor and 
 81.26  legislature outlining progress made towards the celebration of 
 81.27  the sesquicentennial. 
 81.28     Subd. 5.  [COMMEMORATIVE COIN.] The commission may arrange 
 81.29  for design, production, distribution, marketing, and sale of a 
 81.30  commemorative coin.  Proceeds from sale of the commemorative 
 81.31  coin are appropriated to the commission. 
 81.32     Subd. 6.  [EXPIRATION.] The commission shall continue to 
 81.33  operate until January 30, 2009, at which time it shall expire. 
 81.34     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 81.35  following final enactment. 
 81.36     Sec. 86.  [INSTRUCTION TO REVISOR.] 
 82.1      The revisor of statutes shall renumber Minnesota Statutes, 
 82.2   section 239.05, as section 239.051, alphabetize the definitions, 
 82.3   and correct any cross-references to that section accordingly. 
 82.4      Sec. 87.  [REPEALER.] 
 82.5      Minnesota Statutes 2004, sections 45.0295; 116J.573; 
 82.6   116J.58, subdivision 3; 116L.05, subdivision 4; 239.05, 
 82.7   subdivisions 6a and 6b; and 462C.15, are repealed. 
 82.8                              ARTICLE 3 
 82.9                    HUMAN SERVICES APPROPRIATIONS 
 82.10  Section 1.  [HUMAN SERVICES APPROPRIATIONS.] 
 82.11     The sums shown in the columns marked "APPROPRIATIONS" are 
 82.12  appropriated from the general fund, or any other fund named, to 
 82.13  the agencies and for the purposes specified in the sections of 
 82.14  this article, to be available for the fiscal years indicated for 
 82.15  each purpose.  The figures "2006" and "2007" where used in this 
 82.16  article, mean that the appropriation or appropriations listed 
 82.17  under them are available for the fiscal year ending June 30, 
 82.18  2006, or June 30, 2007, respectively.  
 82.19                          SUMMARY BY FUND
 82.20                                                       BIENNIAL
 82.21                             2006          2007           TOTAL
 82.22  General            $  411,712,000 $  420,246,000 $  831,958,000
 82.23  Health Care 
 82.24  Access                    249,000        249,000        498,000
 82.25  Federal TANF          219,901,000    247,697,000    467,598,000
 82.26  TOTAL              $  631,862,000 $  668,192,000 $1,300,054,000
 82.27                                             APPROPRIATIONS 
 82.28                                         Available for the Year 
 82.29                                             Ending June 30 
 82.30                                            2006         2007 
 82.31  Sec. 2.  COMMISSIONER OF
 82.32  HUMAN SERVICES
 82.33  Subdivision 1.  Total
 82.34  Appropriation                     $  631,862,000 $  668,192,000
 82.35                Summary by Fund
 82.36  General             411,712,000   420,246,000
 82.37  Health Care
 82.38  Access                  249,000       249,000
 82.39  Federal TANF        219,901,000   247,697,000
 82.40  [FOOD STAMPS EMPLOYMENT AND TRAINING 
 83.1   FUNDS.] Notwithstanding Minnesota 
 83.2   Statutes, sections 256J.626 and 
 83.3   256D.051, subdivisions 1a, 6b, and 6c, 
 83.4   federal food stamps employment and 
 83.5   training funds received as 
 83.6   reimbursement of Minnesota family 
 83.7   investment program consolidated fund 
 83.8   grant expenditures must be deposited in 
 83.9   the general fund.  Consistent with the 
 83.10  receipt of these federal funds, the 
 83.11  commissioner may adjust the level of 
 83.12  working family credit expenditures 
 83.13  claimed as TANF maintenance of effort. 
 83.14  [TANF FUNDS APPROPRIATED TO OTHER 
 83.15  ENTITIES.] Any expenditures from the 
 83.16  TANF block grant shall be expended 
 83.17  according to the requirements and 
 83.18  limitations of part A of title IV of 
 83.19  the Social Security Act, as amended, 
 83.20  and any other applicable federal 
 83.21  requirement or limitation.  Prior to 
 83.22  any expenditure of these funds, the 
 83.23  commissioner shall ensure that funds 
 83.24  are expended in compliance with the 
 83.25  requirements and limitations of federal 
 83.26  law and that any reporting requirements 
 83.27  of federal law are met.  It shall be 
 83.28  the responsibility of any entity to 
 83.29  which these funds are appropriated to 
 83.30  implement a memorandum of understanding 
 83.31  with the commissioner that provides the 
 83.32  necessary assurance of compliance prior 
 83.33  to any expenditure of funds.  The 
 83.34  commissioner shall receipt TANF funds 
 83.35  appropriated to other state agencies 
 83.36  and coordinate all related interagency 
 83.37  accounting transactions necessary to 
 83.38  implement these appropriations.  
 83.39  Unexpended TANF funds appropriated to 
 83.40  any state, local, or nonprofit entity 
 83.41  cancel at the end of the state fiscal 
 83.42  year unless appropriating or statutory 
 83.43  language permits otherwise. 
 83.44  [TANF MAINTENANCE OF EFFORT.] (a) In 
 83.45  order to meet the basic maintenance of 
 83.46  effort (MOE) requirements of the TANF 
 83.47  block grant specified under Code of 
 83.48  Federal Regulations, title 45, section 
 83.49  263.1, the commissioner may only report 
 83.50  nonfederal money expended for allowable 
 83.51  activities listed in the following 
 83.52  clauses as TANF/MOE expenditures: 
 83.53  (1) MFIP cash, diversionary work 
 83.54  program, and food assistance benefits 
 83.55  under Minnesota Statutes, chapter 256J; 
 83.56  (2) the child care assistance programs 
 83.57  under Minnesota Statutes, sections 
 83.58  119B.03 and 119B.05, and county child 
 83.59  care administrative costs under 
 83.60  Minnesota Statutes, section 119B.15; 
 83.61  (3) state and county MFIP 
 83.62  administrative costs under Minnesota 
 83.63  Statutes, chapters 256J and 256K; 
 83.64  (4) state, county, and tribal MFIP 
 83.65  employment services under Minnesota 
 84.1   Statutes, chapters 256J and 256K; 
 84.2   (5) expenditures made on behalf of 
 84.3   noncitizen MFIP recipients who qualify 
 84.4   for the medical assistance without 
 84.5   federal financial participation program 
 84.6   under Minnesota Statutes, section 
 84.7   256B.06, subdivision 4, paragraphs (d), 
 84.8   (e), and (j); and 
 84.9   (6) qualifying working family credit 
 84.10  expenditures under Minnesota Statutes, 
 84.11  section 290.0671. 
 84.12  (b) The commissioner shall ensure that 
 84.13  sufficient qualified nonfederal 
 84.14  expenditures are made each year to meet 
 84.15  the state's TANF/MOE requirements.  For 
 84.16  the activities listed in paragraph (a), 
 84.17  clauses (2) to (6), the commissioner 
 84.18  may only report expenditures that are 
 84.19  excluded from the definition of 
 84.20  assistance under Code of Federal 
 84.21  Regulations, title 45, section 260.31. 
 84.22  (c) For fiscal years beginning with 
 84.23  state fiscal year 2005, the 
 84.24  commissioner shall ensure that the 
 84.25  maintenance of effort used by the 
 84.26  commissioner of finance for the 
 84.27  February and November forecasts 
 84.28  required under Minnesota Statutes, 
 84.29  section 16A.103, contains expenditures 
 84.30  under paragraph (a), clause (1), equal 
 84.31  to at least 25 percent of the total 
 84.32  required under Code of Federal 
 84.33  Regulations, title 45, section 263.1. 
 84.34  (d) Minnesota Statutes, section 
 84.35  256.011, subdivision 3, which requires 
 84.36  that federal grants or aids secured or 
 84.37  obtained under that subdivision be used 
 84.38  to reduce any direct appropriations 
 84.39  provided by law, does not apply if the 
 84.40  grants or aids are federal TANF funds. 
 84.41  (e) Notwithstanding the expiration date 
 84.42  provided in section 6, paragraph (a), 
 84.43  clauses (1) to (6), and paragraphs (b) 
 84.44  to (d), expire June 30, 2009. 
 84.45  [WORKING FAMILY CREDIT EXPENDITURES AS 
 84.46  TANF/MOE.] The commissioner may claim 
 84.47  as TANF maintenance of effort up to the 
 84.48  following amounts of working family 
 84.49  credit expenditures for the following 
 84.50  fiscal years: 
 84.51  (1) fiscal year 2006, $6,942,000; and 
 84.52  (2) fiscal year 2007 and thereafter, 
 84.53  $6,707,000. 
 84.54  [INCREASE WORKING FAMILY CREDIT 
 84.55  EXPENDITURES TO BE CLAIMED FOR 
 84.56  TANF/MOE.] In addition to the amounts 
 84.57  provided in this section, the 
 84.58  commissioner may count the following 
 84.59  amounts of working family credit 
 84.60  expenditure as TANF/MOE: 
 85.1   (1) fiscal year 2006, $67,385,000; 
 85.2   (2) fiscal year 2007, $69,839,000; 
 85.3   (3) fiscal year 2008, $12,657,000; and 
 85.4   (4) fiscal year 2009, $8,237,000.  
 85.5   [SPECIAL REVENUE FUND TRANSFER.] 
 85.6   Notwithstanding any law to the 
 85.7   contrary, excluding accounts authorized 
 85.8   under Minnesota Statutes, section 
 85.9   16A.1286, and Minnesota Statutes, 
 85.10  chapter 254B, the commissioner shall 
 85.11  transfer $1,139,000 of uncommitted 
 85.12  special revenue fund balances to the 
 85.13  general fund.  The actual transfers 
 85.14  shall be identified within the standard 
 85.15  information provided to the chairs of 
 85.16  the legislative committees with 
 85.17  jurisdiction over health and human 
 85.18  services issues in December 2005. 
 85.19  Subd. 2.  Children and Economic 
 85.20  Assistance Grants 
 85.21                Summary by Fund
 85.22  General             369,129,000   377,643,000
 85.23  Federal TANF        219,449,000   247,245,000
 85.24  The amounts that may be spent from this 
 85.25  appropriation for each purpose are as 
 85.26  follows: 
 85.27  (a) MFIP/DWP Grants 
 85.28  General              35,640,000    31,902,000
 85.29  Federal TANF        104,204,000   106,020,000
 85.30  (b) Support Services Grants 
 85.31  General               8,697,000     8,715,000
 85.32  Federal TANF        102,594,000   102,632,000
 85.33  (c) MFIP Child Care Assistance Grants 
 85.34  General              41,170,000    20,030,000
 85.35  Federal TANF         11,254,000    37,196,000
 85.36  [MFIP CHILD CARE; TANF APPROPRIATION.] 
 85.37  The federal TANF appropriation is a 
 85.38  onetime appropriation. 
 85.39  [TANF TRANSFER TO FEDERAL CHILD CARE 
 85.40  AND DEVELOPMENT FUND.] $17,946,000 in 
 85.41  fiscal year 2006, $40,388,000 in fiscal 
 85.42  year 2007, and $3,192,000 in fiscal 
 85.43  year 2008 and each fiscal year 
 85.44  thereafter is appropriated to the 
 85.45  commissioner for the purposes of 
 85.46  MFIP/Transition Year child care under 
 85.47  Minnesota Statutes, section 119B.05.  
 85.48  The commissioner shall authorize 
 85.49  transfer of sufficient TANF funds to 
 85.50  the federal child care and development 
 85.51  fund to meet this appropriation and 
 86.1   shall ensure that all transferred funds 
 86.2   are expended according to the federal 
 86.3   child care and development fund 
 86.4   regulations. 
 86.5   (d) Basic Sliding Fee Child Care 
 86.6   Assistance Grants 
 86.7   General               6,592,000    24,911,000
 86.8   [CHILD CARE AND DEVELOPMENT FUND 
 86.9   UNEXPENDED BALANCE.] In addition to the 
 86.10  amount provided in this section, the 
 86.11  commissioner shall expend $16,254,000 
 86.12  in fiscal year 2006 and $2,085,000 in 
 86.13  fiscal year 2007 from the federal child 
 86.14  care and development fund unexpended 
 86.15  balance for basic sliding fee child 
 86.16  care under Minnesota Statutes, section 
 86.17  119B.03.  The commissioner shall ensure 
 86.18  that all child care and development 
 86.19  funds are expended according to the 
 86.20  federal child care and development fund 
 86.21  regulations.  
 86.22  [BASE ADJUSTMENT FOR FREEZE MAXIMUM 
 86.23  RATES FOR CHILD CARE ASSISTANCE.] The 
 86.24  general fund base is increased by 
 86.25  $4,301,000 in fiscal year 2008 and 
 86.26  $6,641,000 in fiscal year 2009 for 
 86.27  basic sliding fee child care assistance.
 86.28  (e) Child Care Development Grants 
 86.29  General               1,540,000     1,540,000
 86.30  (f) Child Support Enforcement Grants 
 86.31  General               3,255,000     3,255,000
 86.32  (g) Children's Services Grants 
 86.33  General              40,488,000    49,580,000
 86.34  [BASE ADJUSTMENT FOR ADOPTION 
 86.35  ASSISTANCE GRANTS.] The general fund 
 86.36  base is increased by $2,153,000 in 
 86.37  fiscal year 2008 and $4,310,000 in 
 86.38  fiscal year 2009 for adoption 
 86.39  assistance grants. 
 86.40  [BASE ADJUSTMENT FOR RELATIVE CUSTODY 
 86.41  ASSISTANCE GRANTS.] The general fund 
 86.42  base is increased by $838,000 in fiscal 
 86.43  year 2008 and $1,689,000 in fiscal year 
 86.44  2009 for relative custody assistance 
 86.45  grants. 
 86.46  [ADOPTION ASSISTANCE AND RELATIVE 
 86.47  CUSTODY ASSISTANCE.] The commissioner 
 86.48  may transfer unencumbered appropriation 
 86.49  balances for adoption assistance and 
 86.50  relative custody assistance between 
 86.51  fiscal years and between programs. 
 86.52  [PRIVATIZED ADOPTION GRANTS.] Federal 
 86.53  reimbursement for privatized adoption 
 86.54  grant and foster care recruitment grant 
 86.55  expenditures is appropriated to the 
 86.56  commissioner for adoption grants and 
 86.57  foster care and adoption administrative 
 87.1   purposes. 
 87.2   (h) Children and Community 
 87.3   Services Grants 
 87.4   General              68,488,000    68,488,000
 87.5   [DELAY PROJECTS OF REGIONAL 
 87.6   SIGNIFICANCE.] Notwithstanding 
 87.7   Minnesota Statutes, section 256M.40, 
 87.8   subdivision 2, the projects of the 
 87.9   regional significance grant program are 
 87.10  delayed until July 1, 2007.  The 
 87.11  general fund base for the program shall 
 87.12  be $25,000,000 in fiscal year 2008 and 
 87.13  $25,000,000 in fiscal year 2009. 
 87.14  (i) General Assistance Grants 
 87.15  General              30,823,000    31,157,000
 87.16  [GENERAL ASSISTANCE STANDARD.] The 
 87.17  commissioner shall set the monthly 
 87.18  standard of assistance for general 
 87.19  assistance units consisting of an adult 
 87.20  recipient who is childless and 
 87.21  unmarried or living apart from parents 
 87.22  or a legal guardian at $203.  The 
 87.23  commissioner may reduce this amount 
 87.24  according to Laws 1997, chapter 85, 
 87.25  article 3, section 54. 
 87.26  [EMERGENCY GENERAL ASSISTANCE.] The 
 87.27  amount appropriated for emergency 
 87.28  general assistance funds is limited to 
 87.29  no more than $7,889,812 in fiscal year 
 87.30  2006 and $7,889,812 in fiscal year 
 87.31  2007.  Funds to counties shall be 
 87.32  allocated by the commissioner using the 
 87.33  allocation method specified in 
 87.34  Minnesota Statutes, section 256D.06. 
 87.35  (j) Minnesota Supplemental Aid Grants 
 87.36  General              30,315,000    30,801,000
 87.37  [EMERGENCY MINNESOTA SUPPLEMENTAL AID 
 87.38  FUNDS.] The amount appropriated for 
 87.39  emergency Minnesota supplemental aid 
 87.40  funds is limited to no more than 
 87.41  $1,100,000 in fiscal year 2006 and 
 87.42  $1,100,000 in fiscal year 2007.  Funds 
 87.43  to counties shall be allocated by the 
 87.44  commissioner using the allocation 
 87.45  method specified in Minnesota Statutes, 
 87.46  section 256D.46. 
 87.47  (k) Group Residential Housing Grants 
 87.48  General              85,487,000    91,009,000
 87.49  (l) Other Children and Economic 
 87.50  Assistance Grants 
 87.51  General              16,634,000    16,255,000
 87.52  Federal TANF          1,397,000     1,397,000
 87.53  [TRANSITIONAL HOUSING.] $3,238,000 in 
 87.54  fiscal year 2006 and $3,238,000 in 
 87.55  fiscal year 2007 are appropriated for 
 88.1   transitional housing under Minnesota 
 88.2   Statutes, section 119A.43.  Of this 
 88.3   amount, $1,397,000 in fiscal year 2006 
 88.4   and $1,397,000 in fiscal year 2007 are 
 88.5   onetime appropriations from the federal 
 88.6   TANF fund.  The general fund base for 
 88.7   transitional housing shall be 
 88.8   $2,988,000 each year for the fiscal 
 88.9   2008-2009 biennium. 
 88.10  Subd. 3.  Children and Economic Assistance 
 88.11  Management 
 88.12                Summary by Fund
 88.13  General              42,583,000    42,603,000
 88.14  Health Care Access      249,000       249,000
 88.15  Federal TANF            452,000       452,000
 88.16  The amounts that may be spent from the 
 88.17  appropriation for each purpose are as 
 88.18  follows: 
 88.19  (a) Children and Economic
 88.20  Assistance Administration
 88.21  General               7,838,000     7,832,000
 88.22  Federal TANF            452,000       452,000
 88.23  (b) Children and Economic 
 88.24  Assistance Operations
 88.25  General              34,745,000    34,771,000
 88.26  Health Care Access      249,000       249,000
 88.27  [SPENDING AUTHORITY FOR FOOD STAMPS 
 88.28  BONUS AWARDS.] In the event that 
 88.29  Minnesota qualifies for the United 
 88.30  States Department of Agriculture Food 
 88.31  and Nutrition Services Food Stamp 
 88.32  Program performance bonus awards 
 88.33  beginning in federal fiscal year 2004, 
 88.34  the funding is appropriated to the 
 88.35  commissioner.  The commissioner shall 
 88.36  retain 25 percent of the funding, with 
 88.37  the other 75 percent divided among the 
 88.38  counties according to a formula that 
 88.39  takes into account each county's impact 
 88.40  on state performance in the applicable 
 88.41  bonus categories. 
 88.42  [CHILD SUPPORT PAYMENT CENTER.] 
 88.43  Payments to the commissioner from other 
 88.44  governmental units, private 
 88.45  enterprises, and individuals for 
 88.46  services performed by the child support 
 88.47  payment center must be deposited in the 
 88.48  state systems account authorized under 
 88.49  Minnesota Statutes, section 256.014.  
 88.50  These payments are appropriated to the 
 88.51  commissioner for the operation of the 
 88.52  child support payment center or system, 
 88.53  according to Minnesota Statutes, 
 88.54  section 256.014. 
 88.55  [CHILD SUPPORT COST RECOVERY FEES.] The 
 88.56  commissioner shall transfer $34,000 of 
 89.1   child support cost recovery fees 
 89.2   collected in fiscal year 2006 and 
 89.3   fiscal year 2007 to the PRISM special 
 89.4   revenue account to offset PRISM system 
 89.5   costs of maintaining the fee. 
 89.6   [STUDY OF ECONOMIC IMPACT OF CHILD 
 89.7   SUPPORT GUIDELINES.] Of this amount, 
 89.8   $20,000 is appropriated to the 
 89.9   commissioner of human services in 
 89.10  fiscal year 2006 to pay the state's 
 89.11  share of the cost of study on the 
 89.12  economic impact of child support 
 89.13  guidelines in article 5, section 26.  
 89.14  [FINANCIAL INSTITUTION DATA MATCH AND 
 89.15  PAYMENT OF FEES.] The commissioner is 
 89.16  authorized to allocate up to $310,000 
 89.17  each year in fiscal year 2006 and 
 89.18  fiscal year 2007 from the PRISM special 
 89.19  revenue account to make payments to 
 89.20  financial institutions in exchange for 
 89.21  performing data matches between account 
 89.22  information held by financial 
 89.23  institutions and the public authority's 
 89.24  database of child support obligors as 
 89.25  authorized by Minnesota Statutes, 
 89.26  section 13B.06, subdivision 7. 
 89.27     Sec. 3.  [TRANSFERS.] 
 89.28     Subdivision 1.  [GRANTS.] The commissioner of human 
 89.29  services, with the approval of the commissioner of finance, and 
 89.30  after notification of the chairs of the relevant senate budget 
 89.31  division and house finance committee, may transfer unencumbered 
 89.32  appropriation balances for the biennium ending June 30, 2007, 
 89.33  within fiscal years among the MFIP, general assistance, medical 
 89.34  assistance, MFIP child care assistance under Minnesota Statutes, 
 89.35  section 119B.05, Minnesota supplemental aid, group residential 
 89.36  housing programs, and the entitlement portion of the chemical 
 89.37  dependency consolidated treatment fund, and between fiscal years 
 89.38  of the biennium. 
 89.39     Subd. 2.  [ADMINISTRATION.] Positions, salary money, and 
 89.40  nonsalary administrative money may be transferred within the 
 89.41  Departments of Human Services and Health and within the programs 
 89.42  operated by the Veterans Nursing Homes Board as the 
 89.43  commissioners and the board consider necessary, with the advance 
 89.44  approval of the commissioner of finance.  The commissioner or 
 89.45  the board shall inform the chairs of the relevant house and 
 89.46  senate health committees quarterly about transfers made under 
 89.47  this provision. 
 90.1      Subd. 3.  [PROHIBITED TRANSFERS.] Grant money shall not be 
 90.2   transferred to operations within the Departments of Human 
 90.3   Services and Health and within the programs operated by the 
 90.4   Veterans Nursing Homes Board without the approval of the 
 90.5   legislature. 
 90.6      Sec. 4.  [SPECIAL REVENUE TRANSFER FOR CERTAIN PROGRAMS.] 
 90.7      (a) The balance of indirect cost reimbursement attributable 
 90.8   to federal grants transferred from the Department of Education 
 90.9   to the Department of Human Services and available at the close 
 90.10  of fiscal year 2005 shall be transferred to the general fund.  
 90.11     (b) The balance of the child care child support recoveries 
 90.12  in the special revenue account established under Minnesota 
 90.13  Statutes, section 119B.074, and available at the close of fiscal 
 90.14  year 2005 shall be transferred to the general fund. 
 90.15     Sec. 5.  [INDIRECT COSTS NOT TO FUND PROGRAMS.] 
 90.16     The commissioners of health and human services shall not 
 90.17  use indirect cost allocations to pay for the operational costs 
 90.18  of any program for which they are responsible. 
 90.19     Sec. 6.  [SUNSET OF UNCODIFIED LANGUAGE.] 
 90.20     All uncodified language contained in this article expires 
 90.21  on June 30, 2007, unless a different expiration date is explicit.
 90.22     Sec. 7.  [EFFECTIVE DATE.] 
 90.23     The provisions in this article are effective July 1, 2005, 
 90.24  unless a different effective date is specified. 
 90.25                             ARTICLE 4 
 90.26          DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT 
 90.27  Section 1.  [ADJUSTMENT.] 
 90.28     The dollar amounts shown are added to or, if shown in 
 90.29  parentheses, are subtracted from the appropriations in Laws 
 90.30  2003, First Special Session chapter 14, as amended by Laws 2004, 
 90.31  chapter 272, or other law, and are appropriated from the general 
 90.32  fund, or any other fund named, to the Department of Human 
 90.33  Services for the purposes specified in this article, to be 
 90.34  available for the fiscal year indicated for each purpose.  The 
 90.35  figure "2005" used in this article means that the appropriation 
 90.36  or appropriations listed are available for the fiscal year 
 91.1   ending June 30, 2005. 
 91.2                           SUMMARY BY FUND
 91.3                                                             2005  
 91.4   General Fund                                          8,280,000 
 91.5   TANF                                                (16,831,000)
 91.6   TOTAL                                                (8,551,000)
 91.7   Sec. 2.  COMMISSIONER OF HUMAN SERVICES 
 91.8   Subdivision 1.  Total
 91.9   Appropriation                                        (8,551,000)
 91.10                          Summary by Fund
 91.11  General                             8,280,000 
 91.12  TANF                              (16,831,000)
 91.13  Subd. 2.  Continuing Care Grants 
 91.14  General                                              (6,017,000)
 91.15  The amount that may be spent from this 
 91.16  appropriation for each purpose is as 
 91.17  follows: 
 91.18  Group Residential Housing
 91.19  General                                               6,017,000
 91.20  Subd. 3.  Economic Support Grants 
 91.21  General                                              22,940,000 
 91.22  TANF                                                (16,831,000)
 91.23  The amount that may be spent from this 
 91.24  appropriation for each purpose is as 
 91.25  follows: 
 91.26  (a) Minnesota Family Investment Program 
 91.27  General                                              21,000,000
 91.28  TANF                                                (16,831,000)
 91.29  (b) General Assistance                                2,840,000 
 91.30  (c) Minnesota Supplemental Aid                         (900,000)
 91.31  Subd. 4.  Child Care 
 91.32  Total Appropriation                                 (20,677,000)
 91.33  General Fund                      (20,677,000) 
 91.34                             ARTICLE 5 
 91.35                       CHILDREN AND FAMILIES 
 91.36     Section 1.  Minnesota Statutes 2004, section 119B.02, is 
 91.37  amended by adding a subdivision to read: 
 91.38     Subd. 7.  [ANNUAL REPORT.] The commissioner shall report 
 91.39  each January, using the most current data sources available to 
 92.1   the agency, on the monthly average cost of child care assistance 
 92.2   per family, the basic sliding fee waiting list, provider's 
 92.3   willingness to care for children from families accessing child 
 92.4   care assistance as documented in the child care resource and 
 92.5   referral program report, the child care assistance program 
 92.6   participation by income level as compared to income eligibility 
 92.7   levels, trends in families applying for MFIP due to child care 
 92.8   reasons, the type of care selected by child care assistance 
 92.9   families as compared to historical trends and to that selected 
 92.10  by the general public, and the percentage of child care center 
 92.11  and family provider rates that are equal to or less than the 
 92.12  child care assistance maximum rate.  The commissioner must also 
 92.13  report on the progress toward measurement of the school 
 92.14  readiness of children in families receiving child care 
 92.15  assistance and of the length of continuous employment of parents 
 92.16  by child care assistance sub-programs.  
 92.17     Sec. 2.  Minnesota Statutes 2004, section 119B.13, 
 92.18  subdivision 1, is amended to read: 
 92.19     Subdivision 1.  [SUBSIDY RESTRICTIONS.] (a) The provider 
 92.20  rates determined under this section for fiscal year 2003 and 
 92.21  implemented July 1, 2002, are to be continued in effect through 
 92.22  June 30, 2007.  The commissioner of human services shall modify 
 92.23  the rate tables for child care centers published in Department 
 92.24  of Human Services Bulletin No. 03-68-07 so that in counties with 
 92.25  regional or statewide cells, the maximum rates must be the 
 92.26  higher of the 100th percentile of the 2002 market rate survey 
 92.27  data for the county or the rate currently identified in the 
 92.28  bulletin.  Beginning in fiscal year 2008, the maximum rate paid 
 92.29  for child care assistance in any county or multicounty region 
 92.30  under the child care fund ~~may not exceed~~ shall be the lesser of 
 92.31  the 75th percentile rate for like-care arrangements in the 
 92.32  county or multicounty region as surveyed by the commissioner or 
 92.33  the previous year's rate for like-care arrangements in the 
 92.34  county increased by the percent change in the average quarterly 
 92.35  national CPI-U index for the current state fiscal year over the 
 92.36  average quarterly index for the previous state fiscal year.  
 93.1   When the commissioner determines that, using the commissioner's 
 93.2   established protocol, the number of providers responding to the 
 93.3   survey is too small to determine the 75th percentile rate for 
 93.4   like-care arrangements in a county or multicounty region, the 
 93.5   commissioner may establish the 75th percentile maximum rate 
 93.6   based on like-care arrangements in a county, region, or category 
 93.7   that the commissioner deems to be similar.  
 93.8      (b) A rate which includes a special needs rate paid under 
 93.9   subdivision 3 may be in excess of the maximum rate allowed under 
 93.10  this subdivision.  
 93.11     (c) The department shall monitor the effect of this 
 93.12  paragraph on provider rates.  The county shall pay the 
 93.13  provider's full charges for every child in care up to the 
 93.14  maximum established.  The commissioner shall determine the 
 93.15  maximum rate for each type of care on an hourly, full-day, and 
 93.16  weekly basis, including special needs and handicapped care.  ~~Not~~ 
 93.17  ~~less than once every two years, the commissioner shall evaluate~~ 
 93.18  ~~market practices for payment of absences and shall establish~~ 
 93.19  ~~policies for payment of absent days that reflect current market~~ 
 93.20  ~~practice.~~ 
 93.21     (d) When the provider charge is greater than the maximum 
 93.22  provider rate allowed, the parent is responsible for payment of 
 93.23  the difference in the rates in addition to any family co-payment 
 93.24  fee. 
 93.25     (e) The commissioner of human services must report each 
 93.26  January on the access that families receiving child care 
 93.27  assistance have to child care programs by identifying the 
 93.28  percentage of child care center and family child care provider 
 93.29  rates that are equal to or less than the maximum rates paid by 
 93.30  the child care assistance programs.  The commissioner must 
 93.31  report the average percentage change in surveyed rates by 
 93.32  provider type.  The commissioner shall also report the 
 93.33  percentage change in the average quarterly national CPI-U index 
 93.34  for the four quarters up to and including the quarter in which 
 93.35  the most recent rate survey began over the four previous 
 93.36  quarters.  Reporting must be based on the rate data collected in 
 94.1   the most recent rate survey. 
 94.2      Sec. 3.  Minnesota Statutes 2004, section 119B.13, is 
 94.3   amended by adding a subdivision to read: 
 94.4      Subd. 7.  [ABSENT DAYS.] Child care providers may not be 
 94.5   reimbursed for more than 25 absent days per child, excluding 
 94.6   holidays, in a fiscal year, or for more than ten consecutive 
 94.7   absent days, unless the child has a documented medical condition 
 94.8   that causes more frequent absences.  Documentation of medical 
 94.9   conditions must be on the forms and submitted according to the 
 94.10  timelines established by the commissioner. 
 94.11     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 94.12     Sec. 4.  Minnesota Statutes 2004, section 245A.10, 
 94.13  subdivision 4, is amended to read: 
 94.14     Subd. 4.  [ANNUAL LICENSE OR CERTIFICATION FEE FOR PROGRAMS 
 94.15  WITH LICENSED CAPACITY.] (a) Child care centers and programs 
 94.16  with a licensed capacity shall pay an annual nonrefundable 
 94.17  license or certification fee based on the following schedule: 
 94.18      Licensed Capacity          Child Care         Other
 94.19                                 Center             Program
 94.20                                 License Fee        License Fee
 94.21       1 to 24 persons               ~~$300~~   $225        $400
 94.22       25 to 49 persons              ~~$450~~   $340        $600
 94.23       50 to 74 persons              ~~$600~~   $450        $800
 94.24       75 to 99 persons              ~~$750~~   $565      $1,000
 94.25       100 to 124 persons            ~~$900~~   $675      $1,200
 94.26       125 to 149 persons          ~~$1,200~~   $900      $1,400
 94.27       150 to 174 persons          ~~$1,400~~ $1,050      $1,600
 94.28       175 to 199 persons          ~~$1,600~~ $1,200      $1,800
 94.29       200 to 224 persons          ~~$1,800~~ $1,350      $2,000
 94.30       225 or more persons         ~~$2,000~~ $1,500      $2,500
 94.31     (b) A day training and habilitation program serving persons 
 94.32  with developmental disabilities or related conditions shall be 
 94.33  assessed a license fee based on the schedule in paragraph (a) 
 94.34  unless the license holder serves more than 50 percent of the 
 94.35  same persons at two or more locations in the community.  When a 
 94.36  day training and habilitation program serves more than 50 
 95.1   percent of the same persons in two or more locations in a 
 95.2   community, the day training and habilitation program shall pay a 
 95.3   license fee based on the licensed capacity of the largest 
 95.4   facility and the other facility or facilities shall be charged a 
 95.5   license fee based on a licensed capacity of a residential 
 95.6   program serving one to 24 persons. 
 95.7      Sec. 5.  Minnesota Statutes 2004, section 254A.035, 
 95.8   subdivision 2, is amended to read: 
 95.9      Subd. 2.  [MEMBERSHIP TERMS, COMPENSATION, REMOVAL AND 
 95.10  EXPIRATION.] The membership of this council shall be composed of 
 95.11  17 persons who are American Indians and who are appointed by the 
 95.12  commissioner.  The commissioner shall appoint one representative 
 95.13  from each of the following groups:  Red Lake Band of Chippewa 
 95.14  Indians; Fond du Lac Band, Minnesota Chippewa Tribe; Grand 
 95.15  Portage Band, Minnesota Chippewa Tribe; Leech Lake Band, 
 95.16  Minnesota Chippewa Tribe; Mille Lacs Band, Minnesota Chippewa 
 95.17  Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth 
 95.18  Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation; 
 95.19  Prairie Island Sioux Indian Reservation; Shakopee Mdewakanton 
 95.20  Sioux Indian Reservation; Upper Sioux Indian Reservation; 
 95.21  International Falls Northern Range; Duluth Urban Indian 
 95.22  Community; and two representatives from the Minneapolis Urban 
 95.23  Indian Community and two from the St. Paul Urban Indian 
 95.24  Community.  The terms, compensation, and removal of American 
 95.25  Indian Advisory Council members shall be as provided in section 
 95.26  15.059.  The council expires June 30, ~~2001~~ 2008.  
 95.27     <b>[EFFECTIVE DATE.]</b> This section is effective retroactively 
 95.28  from June 30, 2001. 
 95.29     Sec. 6.  Minnesota Statutes 2004, section 254A.04, is 
 95.30  amended to read: 
 95.31     254A.04 [CITIZENS ADVISORY COUNCIL.] 
 95.32     There is hereby created an Alcohol and Other Drug Abuse 
 95.33  Advisory Council to advise the Department of Human Services 
 95.34  concerning the problems of alcohol and other drug dependency and 
 95.35  abuse, composed of ten members.  Five members shall be 
 95.36  individuals whose interests or training are in the field of 
 96.1   alcohol dependency and abuse; and five members whose interests 
 96.2   or training are in the field of dependency and abuse of drugs 
 96.3   other than alcohol.  The terms, compensation and removal of 
 96.4   members shall be as provided in section 15.059.  The council 
 96.5   expires June 30, ~~2001~~ 2008.  The commissioner of human services 
 96.6   shall appoint members whose terms end in even-numbered years.  
 96.7   The commissioner of health shall appoint members whose terms end 
 96.8   in odd-numbered years. 
 96.9      <b>[EFFECTIVE DATE.]</b> This section is effective retroactively 
 96.10  from June 30, 2001. 
 96.11     Sec. 7.  Minnesota Statutes 2004, section 256.01, is 
 96.12  amended by adding a subdivision to read: 
 96.13     Subd. 14b.  [AMERICAN INDIAN CHILD WELFARE PROJECTS.] (a) 
 96.14  The commissioner of human services may authorize projects to 
 96.15  test tribal delivery of child welfare services to American 
 96.16  Indian children and their parents and custodians living on the 
 96.17  reservation.  The commissioner has authority to solicit and 
 96.18  determine which tribes may participate in a project.  Grants may 
 96.19  be issued to Minnesota Indian tribes to support the projects.  
 96.20  The commissioner may waive existing state rules as needed to 
 96.21  accomplish the projects.  Notwithstanding section 626.556, the 
 96.22  commissioner may authorize projects to use alternative methods 
 96.23  of investigating and assessing reports of child maltreatment, 
 96.24  provided that the projects comply with the provisions of section 
 96.25  626.556 dealing with the rights of individuals who are subjects 
 96.26  of reports or investigations, including notice and appeal rights 
 96.27  and data practices requirements.  The commissioner may seek any 
 96.28  federal approvals necessary to carry out the projects as well as 
 96.29  seek and use any funds available to the commissioner, including 
 96.30  use of federal funds, foundation funds, existing grant funds, 
 96.31  and other funds.  The commissioner is authorized to advance 
 96.32  state funds as necessary to operate the projects.  Federal 
 96.33  reimbursement applicable to the projects is appropriated to the 
 96.34  commissioner for the purposes of the projects.  The projects 
 96.35  must be required to address responsibility for safety, 
 96.36  permanency, and well-being of children. 
 97.1      (b) For the purposes of this section, "American Indian 
 97.2   child" means a person under 18 years of age who is a tribal 
 97.3   member or eligible for membership in one of the tribes chosen 
 97.4   for a project under this subdivision and who is residing on the 
 97.5   reservation of that tribe. 
 97.6      (c) In order to qualify for an American Indian child 
 97.7   welfare project, a tribe must: 
 97.8      (1) be one of the existing tribes with reservation land in 
 97.9   Minnesota; 
 97.10     (2) have a tribal court with jurisdiction over child 
 97.11  custody proceedings; 
 97.12     (3) have a substantial number of children for whom 
 97.13  determinations of maltreatment have occurred; 
 97.14     (4) have capacity to respond to reports of abuse and 
 97.15  neglect under section 626.556; 
 97.16     (5) provide a wide range of services to families in need of 
 97.17  child welfare services; and 
 97.18     (6) have a tribal-state title IV-E agreement in effect. 
 97.19     (d) Grants awarded under this section may be used for the 
 97.20  nonfederal costs of providing child welfare services to American 
 97.21  Indian children on the tribe's reservation, including costs 
 97.22  associated with: 
 97.23     (1) assessment and prevention of child abuse and neglect; 
 97.24     (2) family preservation; 
 97.25     (3) facilitative, supportive, and reunification services; 
 97.26     (4) out-of-home placement for children removed from the 
 97.27  home for child protective purposes; and 
 97.28     (5) other activities and services approved by the 
 97.29  commissioner that further the goals of providing safety, 
 97.30  permanency, and well-being of American Indian children. 
 97.31     (e) When a tribe has initiated a project and has been 
 97.32  approved by the commissioner to assume child welfare 
 97.33  responsibilities for American Indian children of that tribe 
 97.34  under this section, the affected county social service agency is 
 97.35  relieved of responsibility for responding to reports of abuse 
 97.36  and neglect under section 626.556 for those children during the 
 98.1   time within which the tribal project is in effect and funded.  
 98.2   The commissioner shall work with tribes and affected counties to 
 98.3   develop procedures for data collection, evaluation, and 
 98.4   clarification of ongoing role and financial responsibilities of 
 98.5   the county and tribe for child welfare services prior to 
 98.6   initiation of the project.  Children who have not been 
 98.7   identified by the tribe as participating in the project shall 
 98.8   remain the responsibility of the county.  Nothing in this 
 98.9   section shall alter responsibilities of the county for law 
 98.10  enforcement or court services.  
 98.11     (f) The commissioner shall collect information on outcomes 
 98.12  relating to child safety, permanency, and well-being of American 
 98.13  Indian children who are served in the projects.  Participating 
 98.14  tribes must provide information to the state in a format and 
 98.15  completeness deemed acceptable by the state to meet state and 
 98.16  federal reporting requirements. 
 98.17     Sec. 8.  Minnesota Statutes 2004, section 256.01, is 
 98.18  amended by adding a subdivision to read: 
 98.19     Subd. 23.  [ANNUAL REPORT.] Beginning July 1, 2005, the 
 98.20  commissioner shall prepare an annual report of the number of 
 98.21  eligible applicants who applied in the prior calendar year for 
 98.22  general assistance, under chapter 256D; MFIP, under chapter 
 98.23  256J; and food support, under chapter 256D, who had not lived in 
 98.24  Minnesota for the 12 months prior to the application month.  The 
 98.25  report shall indicate the number of applicants by state of prior 
 98.26  residence or by the general category of foreign country. 
 98.27     Sec. 9.  Minnesota Statutes 2004, section 256.741, 
 98.28  subdivision 4, is amended to read: 
 98.29     Subd. 4.  [EFFECT OF ASSIGNMENT.] Assignments in this 
 98.30  section take effect upon a determination that the applicant is 
 98.31  eligible for public assistance.  The amount of support assigned 
 98.32  under this subdivision may not exceed the total amount of public 
 98.33  assistance issued or the total support obligation, whichever is 
 98.34  less.  Child care support collections made according to an 
 98.35  assignment under subdivision 2, paragraph (c), must be 
 98.36  deposited, subject to any limitations of federal law, ~~by the~~ 
 99.1   ~~commissioner of human services in the child support collection~~ 
 99.2   ~~account in the special revenue fund and appropriated to the~~ 
 99.3   ~~commissioner of education for child care assistance under~~ 
 99.4   ~~section 119B.03.  These collections are in addition to state and~~ 
 99.5   ~~federal funds appropriated to the child care~~ in the general fund.
 99.6      Sec. 10.  Minnesota Statutes 2004, section 256B.0924, 
 99.7   subdivision 3, is amended to read: 
 99.8      Subd. 3.  [ELIGIBILITY.] Persons are eligible to receive 
 99.9   targeted case management services under this section if the 
 99.10  requirements in paragraphs (a) and (b) are met. 
 99.11     (a) The person must be assessed and determined by the local 
 99.12  county agency to: 
 99.13     (1) be age 18 or older; 
 99.14     (2) be receiving medical assistance; 
 99.15     (3) have significant functional limitations; and 
 99.16     (4) be in need of service coordination to attain or 
 99.17  maintain living in an integrated community setting. 
 99.18     (b) The person must be a vulnerable adult in need of adult 
 99.19  protection as defined in section 626.5572, or is an adult with 
 99.20  mental retardation as defined in section 252A.02, subdivision 2, 
 99.21  or a related condition as defined in section 252.27, subdivision 
 99.22  1a, and is not receiving home and community-based waiver 
 99.23  services, or is an adult who lacks a permanent residence and who 
 99.24  has been without a permanent residence for at least one year or 
 99.25  on at least four occasions in the last three years. 
 99.26     Sec. 11.  Minnesota Statutes 2004, section 256B.093, 
 99.27  subdivision 1, is amended to read: 
 99.28     Subdivision 1.  [STATE TRAUMATIC BRAIN INJURY PROGRAM.] The 
 99.29  commissioner of human services shall: 
 99.30     (1) maintain a statewide traumatic brain injury program; 
 99.31     (2) supervise and coordinate services and policies for 
 99.32  persons with traumatic brain injuries; 
 99.33     (3) contract with qualified agencies or employ staff to 
 99.34  provide statewide administrative case management and 
 99.35  consultation; 
 99.36     (4) maintain an advisory committee to provide 
100.1   recommendations in reports to the commissioner regarding program 
100.2   and service needs of persons with traumatic brain injuries; 
100.3      (5) investigate the need for the development of rules or 
100.4   statutes for the traumatic brain injury home and community-based 
100.5   services waiver; 
100.6      (6) investigate present and potential models of service 
100.7   coordination which can be delivered at the local level; and 
100.8      (7) the advisory committee required by clause (4) must 
100.9   consist of no fewer than ten members and no more than 30 
100.10  members.  The commissioner shall appoint all advisory committee 
100.11  members to one- or two-year terms and appoint one member as 
100.12  chair.  Notwithstanding section 15.059, subdivision 5, the 
100.13  advisory committee does not terminate until June 30, ~~2005~~ 2008. 
100.14     Sec. 12.  Minnesota Statutes 2004, section 256D.06, is 
100.15  amended by adding a subdivision to read: 
100.16     Subd. 1d.  [STANDARD OF ASSISTANCE.] For a general 
100.17  assistance applicant who has resided in the state for less than 
100.18  90 days and who lives independently in the community, the 
100.19  standard of assistance shall be 60 percent of the full 
100.20  standard.  The full standard of assistance shall be available 
100.21  beginning the first day of either the month that the 90 days' 
100.22  residency is completed if the 90th day occurs on or before the 
100.23  15th of the month or the following month if the 90th day occurs 
100.24  on the 16th of the month or after.  The 30-day residence period 
100.25  in section 256D.02, subdivision 12a, shall count toward the 
100.26  90-day payment standard. 
100.27     Sec. 13.  Minnesota Statutes 2004, section 256D.06, 
100.28  subdivision 5, is amended to read: 
100.29     Subd. 5.  [ELIGIBILITY; REQUIREMENTS.] (a) Any applicant, 
100.30  otherwise eligible for general assistance and possibly eligible 
100.31  for maintenance benefits from any other source shall ~~(a)~~ (1) 
100.32  make application for those benefits within 30 days of the 
100.33  general assistance application; and ~~(b)~~ (2) execute an interim 
100.34  assistance ~~authorization~~ agreement on a form as directed by the 
100.35  commissioner.  
100.36     (b) The commissioner shall review a denial of an 
101.1   application for other maintenance benefits and may require a 
101.2   recipient of general assistance to file an appeal of the denial 
101.3   if appropriate.  If found eligible for benefits from other 
101.4   sources, and a payment received from another source relates to 
101.5   the period during which general assistance was also being 
101.6   received, the recipient shall be required to reimburse the 
101.7   county agency for the interim assistance paid.  Reimbursement 
101.8   shall not exceed the amount of general assistance paid during 
101.9   the time period to which the other maintenance benefits apply 
101.10  and shall not exceed the state standard applicable to that time 
101.11  period. 
101.12     (c) The commissioner ~~shall adopt rules authorizing county~~ 
101.13  ~~agencies or other client representatives to retain from the~~ 
101.14  ~~amount recovered under an interim assistance agreement 25~~ 
101.15  ~~percent plus actual reasonable fees, costs, and disbursements of~~ 
101.16  ~~appeals and litigation, of providing special assistance to the~~ 
101.17  ~~recipient in processing the recipient's claim for maintenance~~ 
101.18  ~~benefits from another source.  The~~ may contract with the county 
101.19  agencies, qualified agencies, organizations, or persons to 
101.20  provide advocacy and support services to process claims for 
101.21  federal disability benefits for applicants or recipients of 
101.22  services or benefits supervised by the commissioner using money 
101.23  retained under this section ~~shall be from the state share of the~~ 
101.24  ~~recovery.  The commissioner or the county agency may contract~~ 
101.25  ~~with qualified persons to provide the special assistance~~. 
101.26     (d) The ~~rules adopted by the~~ commissioner ~~shall include the~~ 
101.27  may provide methods by which county agencies shall identify, 
101.28  refer, and assist recipients who may be eligible for benefits 
101.29  under federal programs for the disabled.  ~~This subdivision does~~ 
101.30  ~~not require repayment of per diem payments made to shelters for~~ 
101.31  ~~battered women pursuant to section 256D.05, subdivision 3.~~ 
101.32     (e) The total amount of interim assistance recoveries 
101.33  retained under this section for advocacy, support, and claim 
101.34  processing services shall not exceed 35 percent of the interim 
101.35  assistance recoveries in the prior fiscal year. 
101.36     Sec. 14.  Minnesota Statutes 2004, section 256D.06, 
102.1   subdivision 7, is amended to read: 
102.2      Subd. 7.  [SSI CONVERSIONS AND BACK CLAIMS.] (a)  [SSI 
102.3   CONVERSIONS.] The commissioner of human services shall contract 
102.4   with agencies or organizations capable of ensuring that clients 
102.5   who are presently receiving assistance under sections 256D.01 to 
102.6   256D.21, and who may be eligible for benefits under the federal 
102.7   Supplemental Security Income program, apply and, when eligible, 
102.8   are converted to the federal income assistance program and made 
102.9   eligible for health care benefits under the medical assistance 
102.10  program.  The commissioner shall ensure that money owing to the 
102.11  state under interim assistance agreements is collected.  
102.12     (b)  [BACK CLAIMS FOR FEDERAL HEALTH CARE BENEFITS.] The 
102.13  commissioner shall also directly or through contract implement 
102.14  procedures for collecting federal Medicare and medical 
102.15  assistance funds for which clients converted to SSI are 
102.16  retroactively eligible. 
102.17     (c)  [ADDITIONAL REQUIREMENTS.] The commissioner shall 
102.18  ~~begin contracting~~ contract with agencies to ensure 
102.19  implementation of this section ~~within 14 days after April 29,~~ 
102.20  ~~1992~~.  County contracts with providers for residential services 
102.21  shall include the requirement that providers screen residents 
102.22  who may be eligible for federal benefits and provide that 
102.23  information to the local agency.  The commissioner shall modify 
102.24  the MAXIS computer system to provide information on clients who 
102.25  have been on general assistance for two years or longer.  The 
102.26  list of clients shall be provided to local services for 
102.27  screening under this section. 
102.28     ~~(d)  [REPORT.] The commissioner shall report to the~~ 
102.29  ~~legislature by January 15, 1993, on the implementation of this~~ 
102.30  ~~section.  The report shall contain information on the following:~~ 
102.31     ~~(1) the number of clients converted from general assistance~~ 
102.32  ~~to SSI, by county;~~ 
102.33     ~~(2) information on the organizations involved;~~ 
102.34     ~~(3) the amount of money collected through interim~~ 
102.35  ~~assistance agreements;~~ 
102.36     ~~(4) the amount of money collected in federal Medicare or~~ 
103.1   ~~Medicaid funds;~~ 
103.2      ~~(5) problems encountered in processing conversions and back~~ 
103.3   ~~claims; and~~ 
103.4      ~~(6) recommended changes to enhance recoveries and maximize~~ 
103.5   ~~the receipt of federal money in the most efficient way possible.~~ 
103.6      Sec. 15.  Minnesota Statutes 2004, section 256I.05, 
103.7   subdivision 1e, is amended to read: 
103.8      Subd. 1e.  [SUPPLEMENTARY RATE FOR CERTAIN FACILITIES.] 
103.9   Notwithstanding the provisions of subdivisions 1a and 1c, 
103.10  beginning July 1, ~~2001~~ 2005, a county agency shall negotiate a 
103.11  supplementary rate in addition to the rate specified in 
103.12  subdivision 1, ~~equal to 46 percent of the amount specified in~~ 
103.13  ~~subdivision 1a~~ not to exceed $700 per month, including any 
103.14  legislatively authorized inflationary adjustments, for a group 
103.15  residential housing provider that: 
103.16     (1) is located in Hennepin County and has had a group 
103.17  residential housing contract with the county since June 1996; 
103.18     (2) operates in three separate locations a ~~71-bed~~ 75-bed 
103.19  facility, a 50-bed facility, and ~~two 40-bed facilities~~ a 26-bed 
103.20  facility; and 
103.21     (3) serves a chemically dependent clientele, providing 24 
103.22  hours per day supervision and limiting a resident's maximum 
103.23  length of stay to 13 months out of a consecutive 24-month period.
103.24     Sec. 16.  Minnesota Statutes 2004, section 256J.12, 
103.25  subdivision 1, is amended to read: 
103.26     Subdivision 1.  [SIMPLE RESIDENCY.] To be eligible for MFIP 
103.27  or DWP, an assistance unit must have established residency in 
103.28  this state which means the assistance unit is present in the 
103.29  state and intends to remain here.  A person who lives in this 
103.30  state and who entered this state with a job commitment or to 
103.31  seek employment in this state, whether or not that person is 
103.32  currently employed, meets the criteria in this subdivision.  
103.33     Sec. 17.  Minnesota Statutes 2004, section 256J.12, is 
103.34  amended by adding a subdivision to read: 
103.35     Subd. 5.  [RESIDENCY REQUIREMENT FOR DWP APPLICANTS.] 
103.36  Assistance to an eligible DWP family unit in which all members 
104.1   have resided in this state for fewer than 90 consecutive days 
104.2   shall be paid at the standard specified in section 256J.95, 
104.3   subdivision 21.  The 30-day residence period shall count toward 
104.4   the 90-day DWP residence requirement. 
104.5      Sec. 18.  Minnesota Statutes 2004, section 256J.37, 
104.6   subdivision 3a, is amended to read: 
104.7      Subd. 3a.  [RENTAL SUBSIDIES; UNEARNED INCOME.] (a) 
104.8   ~~Effective July 1, 2003,~~ The county agency shall count ~~$50~~ $200 
104.9   of the value of public and assisted rental subsidies provided 
104.10  through the Department of Housing and Urban Development (HUD) as 
104.11  unearned income to the cash portion of the MFIP grant.  The full 
104.12  amount of the subsidy must be counted as unearned income when 
104.13  the subsidy is less than ~~$50~~ $200.  The income from this subsidy 
104.14  shall be budgeted according to section 256J.34. 
104.15     (b) The provisions of this subdivision shall not apply to 
104.16  an MFIP assistance unit which includes a participant who is: 
104.17     (1) age 60 or older; 
104.18     (2) a caregiver who is suffering from an illness, injury, 
104.19  or incapacity that has been certified by a qualified 
104.20  professional when the illness, injury, or incapacity is expected 
104.21  to continue for more than 30 days and prevents the person from 
104.22  obtaining or retaining employment; or 
104.23     (3) a caregiver whose presence in the home is required due 
104.24  to the illness or incapacity of another member in the assistance 
104.25  unit, a relative in the household, or a foster child in the 
104.26  household when the illness or incapacity and the need for the 
104.27  participant's presence in the home has been certified by a 
104.28  qualified professional and is expected to continue for more than 
104.29  30 days. 
104.30     (c) The provisions of this subdivision shall not apply to 
104.31  an MFIP assistance unit where the ~~parental~~ caregiver is an SSI 
104.32  recipient. 
104.33     (d) Prior to implementing this provision, the commissioner 
104.34  must identify the MFIP participants subject to this provision 
104.35  and provide written notice to these participants at least 30 
104.36  days before the first grant reduction.  The notice must inform 
105.1   the participant of the basis for the potential grant reduction, 
105.2   the exceptions to the provision, if any, and inform the 
105.3   participant of the steps necessary to claim an exception.  A 
105.4   person who is found not to meet one of the exceptions to the 
105.5   provision must be notified and informed of the right to a fair 
105.6   hearing under section 256J.40.  The notice must also inform the 
105.7   participant that the participant may be eligible for a rent 
105.8   reduction resulting from a reduction in the MFIP grant and 
105.9   encourage the participant to contact the local housing authority.
105.10     <b>[EFFECTIVE DATE.]</b> This section is effective the first day 
105.11  of the second month after the date of approval by the United 
105.12  States Department of Agriculture. 
105.13     Sec. 19.  Minnesota Statutes 2004, section 256J.515, is 
105.14  amended to read: 
105.15     256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 
105.16     During the first meeting with participants, job counselors 
105.17  must ensure that an overview of employment and training services 
105.18  is provided that: 
105.19     (1) stresses the necessity and opportunity of immediate 
105.20  employment; 
105.21     (2) outlines the job search resources offered; 
105.22     (3) outlines education or training opportunities available; 
105.23     (4) describes the range of work activities, including 
105.24  activities under section 256J.49, subdivision 13, clause (18), 
105.25  that are allowable under MFIP to meet the individual needs of 
105.26  participants; 
105.27     (5) explains the requirements to comply with an employment 
105.28  plan; 
105.29     (6) explains the consequences for failing to comply; 
105.30     (7) explains the services that are available to support job 
105.31  search and work and education; ~~and~~ 
105.32     (8) provides referral information about shelters and 
105.33  programs for victims of family violence and the time limit 
105.34  exemption for family violence victims; and 
105.35     (9) explains the probationary employment periods new 
105.36  employees may serve after being hired and any assistance with 
106.1   job retention services that may be available. 
106.2      Failure to attend the overview of employment and training 
106.3   services without good cause results in the imposition of a 
106.4   sanction under section 256J.46. 
106.5      An applicant who requests and qualifies for a family 
106.6   violence waiver is exempt from attending a group overview.  
106.7   Information usually presented in an overview must be covered 
106.8   during the development of an employment plan under section 
106.9   256J.521, subdivision 3. 
106.10     Sec. 20.  Minnesota Statutes 2004, section 256J.751, 
106.11  subdivision 2, is amended to read: 
106.12     Subd. 2.  [QUARTERLY COMPARISON REPORT.] The commissioner 
106.13  shall report quarterly to all counties on each county's 
106.14  performance on the following measures: 
106.15     (1) percent of MFIP caseload working in paid employment; 
106.16     (2) percent of MFIP caseload receiving only the food 
106.17  portion of assistance; 
106.18     (3) number of MFIP cases that have left assistance; 
106.19     (4) federal participation requirements as specified in 
106.20  Title 1 of Public Law 104-193; 
106.21     (5) median placement wage rate; 
106.22     (6) caseload by months of TANF assistance; 
106.23     (7) percent of MFIP and diversionary work program (DWP) 
106.24  cases off cash assistance or working 30 or more hours per week 
106.25  at one-year, two-year, and three-year follow-up points from a 
106.26  baseline quarter.  This measure is called the self-support 
106.27  index.  Twice annually, the commissioner shall report an 
106.28  expected range of performance for each county, county grouping, 
106.29  and tribe on the self-support index.  The expected range shall 
106.30  be derived by a statistical methodology developed by the 
106.31  commissioner in consultation with the counties and tribes.  For 
106.32  purposes of measuring the self-support index, participants under 
106.33  section 256J.425, subdivisions 2 and 3, are excluded.  The 
106.34  statistical methodology shall control differences across 
106.35  counties in economic conditions and demographics of the MFIP and 
106.36  DWP case load; and 
107.1      (8) the MFIP work participation rate, defined as the 
107.2   participation requirements specified in title 1 of Public Law 
107.3   104-193 applied to all MFIP cases except child only cases and 
107.4   cases exempt under section 256J.56.  For purposes of measuring 
107.5   the work participation rate, participants under sections 
107.6   256J.425, subdivisions 2 and 3; and 256J.561, subdivision 2, 
107.7   paragraph (d), clauses (2) and (3), and subdivision 3, are 
107.8   excluded. 
107.9      Sec. 21.  Minnesota Statutes 2004, section 256J.95, is 
107.10  amended by adding a subdivision to read: 
107.11     Subd. 21.  [INTERSTATE PAYMENT STANDARDS.] (a) Effective 
107.12  July 1, 2005, the amount of assistance paid to an eligible DWP 
107.13  family unit in which all members have resided in this state for 
107.14  fewer than 90 consecutive days shall be calculated according to 
107.15  paragraph (b).  
107.16     (b) Payment must be calculated by applying DWP budgeting 
107.17  policies, and the unit's net income must be deducted from the 
107.18  payment standard in the state of immediate prior residence or 
107.19  Minnesota, whichever is less.  Payments shall be vendor paid 
107.20  according to subdivision 1, paragraph (d).  
107.21     (c) The lesser payment must continue until the DWP family 
107.22  unit meets the 90-day residency requirement.  A family unit that 
107.23  has not resided in Minnesota for 90 days is not exempt from the 
107.24  payment provisions solely because a child is born in Minnesota 
107.25  to a member of the family unit.  
107.26     (d) Any eligible noncitizen who comes directly to Minnesota 
107.27  from another country, and whose United States Citizenship and 
107.28  Immigration Services (USCIS) settlement destination is 
107.29  Minnesota, will receive the amount calculated using DWP policy 
107.30  and standards.  If the USCIS settlement destination is another 
107.31  state, apply the lesser of the payment standard for that size 
107.32  family in the state of immediate prior residence or the 
107.33  standards under DWP.  
107.34     (e) The assistance unit shall be eligible for the full 
107.35  amount of assistance based on DWP standards beginning either the 
107.36  month during which the 90-day residency requirement is met, if 
108.1   the 90th day occurs on or before the 15th of the month, or the 
108.2   following month if the 90th day occurs on the 16th of the month 
108.3   or after.  
108.4      (f) This policy applies whether or not the family unit 
108.5   received similar benefits while residing in the state of 
108.6   immediate prior residence.  
108.7      (g) For the purposes of this section, "state of immediate 
108.8   prior residence" means the state in which the applicant declares 
108.9   the applicant spent the most time in the 30 days prior to moving 
108.10  to Minnesota.  
108.11     (h) Applicants must provide verification of their state of 
108.12  immediate prior residence, in the form of tax statements, a 
108.13  driver's license, automobile registration, rent receipts, or 
108.14  other forms of verification approved by the commissioner.  
108.15     Sec. 22.  Minnesota Statutes 2004, section 256J.95, is 
108.16  amended by adding a subdivision to read: 
108.17     Subd. 22.  [TEMPORARY ABSENCE FROM MINNESOTA.] For an 
108.18  assistance unit that has met the 30-day residency requirements 
108.19  in section 256J.12, subdivisions 1 to 4, the 90-day period in 
108.20  subdivision 21 is not affected by a subsequent absence from 
108.21  Minnesota for fewer than 30 consecutive days, provided the 
108.22  family unit maintains a residence in Minnesota.  
108.23     Sec. 23.  Minnesota Statutes 2004, section 256J.95, is 
108.24  amended by adding a subdivision to read: 
108.25     Subd. 23.  [INELIGIBLE MANDATORY UNIT MEMBERS.] The 90-day 
108.26  residency requirement in subdivision 21 does not apply if the 
108.27  family unit includes an ineligible mandatory family unit member 
108.28  who has resided in Minnesota for 90 consecutive days immediately 
108.29  before the unit's date of application. 
108.30     Sec. 24.  [256K.26] [LONG-TERM HOMELESS SUPPORTIVE 
108.31  SERVICES.] 
108.32     Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] The 
108.33  commissioner shall establish the long-term homeless supportive 
108.34  services fund to provide integrated services needed to stabilize 
108.35  individuals, families, and youth living in supportive housing 
108.36  developed to further the goals set forth in Laws 2003, chapter 
109.1   128, article 15, section 9. 
109.2      Subd. 2.  [IMPLEMENTATION.] The commissioner, in 
109.3   consultation with the commissioners of the Department of 
109.4   Corrections and the Minnesota Housing Finance Agency, counties, 
109.5   providers and funders of supportive housing and services, shall 
109.6   develop application requirements and make funds available 
109.7   according to this section, with the goal of providing maximum 
109.8   flexibility in program design. 
109.9      Subd. 3.  [DEFINITIONS.] For purposes of this section, the 
109.10  following terms have the meanings given: 
109.11     (1) "long-term homelessness" means lacking a permanent 
109.12  place to live continuously for one year or more or at least four 
109.13  times in the past three years; and 
109.14     (2) "household" means an individual, family, or 
109.15  unaccompanied minor experiencing long-term homelessness. 
109.16     Subd. 4.  [COUNTY ELIGIBILITY.] Counties are eligible for 
109.17  funding under this section.  Priority will be given to proposals 
109.18  submitted on behalf of multicounty partnerships. 
109.19     Subd. 5.  [CONTENT OF PROPOSALS.] Proposals will be 
109.20  evaluated on the extent to which they: 
109.21     (1) include partnerships with providers of services or 
109.22  other partners; 
109.23     (2) develop strategies to enhance housing stability for 
109.24  people experiencing long-term homelessness by integrating 
109.25  services and establishing consistent services and procedures 
109.26  across jurisdictions as appropriate; 
109.27     (3) evidence a commitment to working with the commissioners 
109.28  of human services, corrections, and the Housing Finance Agency 
109.29  to identify appropriate households to be served under this 
109.30  section and serve households as defined in subdivision 3.  The 
109.31  commissioner may also set criteria for serving people at 
109.32  significant risk of experiencing long-term homelessness, with a 
109.33  priority on serving families with minor children; 
109.34     (4) ensure that projects make maximum use of mainstream 
109.35  resources, including employment, social, and health services, 
109.36  and leverage additional public and private resources in order to 
110.1   serve the maximum number of households; 
110.2      (5) demonstrate cost-effectiveness by identifying and 
110.3   prioritizing those services most necessary for housing 
110.4   stability; and 
110.5      (6) evaluate and report on outcomes of the projects 
110.6   according to protocols developed by the commissioner of human 
110.7   services in cooperation with the commissioners of corrections 
110.8   and the Housing Finance Agency.  Evaluation would include 
110.9   methods for determining the quality of the integrated service 
110.10  approach, improvement in outcomes, cost savings, or reduction in 
110.11  service disparities that may result. 
110.12     Subd. 6.  [OUTCOMES.] Projects will be selected to further 
110.13  the following outcomes: 
110.14     (1) reduce the number of Minnesota individuals and families 
110.15  that experience long-term homelessness; 
110.16     (2) increase the number of housing opportunities with 
110.17  supportive services; 
110.18     (3) develop integrated, cost-effective service models that 
110.19  address the multiple barriers to obtaining housing stability 
110.20  faced by people experiencing long-term homelessness, including 
110.21  abuse, neglect, chemical dependency, disability, chronic health 
110.22  problems, or other factors including ethnicity and race that may 
110.23  result in poor outcomes or service disparities; 
110.24     (4) encourage partnerships among counties, community 
110.25  agencies, schools, and other providers so that the service 
110.26  delivery system is seamless for people experiencing long-term 
110.27  homelessness; 
110.28     (5) increase employability, self-sufficiency, and other 
110.29  social outcomes for individuals and families experiencing 
110.30  long-term homelessness; and 
110.31     (6) reduce inappropriate use of emergency health care, 
110.32  shelter, chemical dependency, foster care, child protection, 
110.33  corrections, and similar services used by people experiencing 
110.34  long-term homelessness. 
110.35     Subd. 7.  [ELIGIBLE SERVICES.] Services eligible for 
110.36  funding under this section are all services needed to maintain 
111.1   households in permanent supportive housing, as determined by the 
111.2   county or counties administering the project or projects. 
111.3      Subd. 8.  [FAMILIES EXPERIENCING LONG-TERM 
111.4   HOMELESSNESS.] The commissioner, in consultation with the 
111.5   commissioners of housing finance and corrections, shall assess 
111.6   whether the definition of long-term homelessness impacts the 
111.7   ability of families with minor children experiencing 
111.8   homelessness to obtain services necessary to support housing 
111.9   stability. 
111.10     Sec. 25.  Minnesota Statutes 2004, section 260.835, is 
111.11  amended to read: 
111.12     260.835 [AMERICAN INDIAN CHILD WELFARE ADVISORY COUNCIL.] 
111.13     Subdivision 1.  [CREATION.] The commissioner shall appoint 
111.14  an American Indian Advisory Council to help formulate policies 
111.15  and procedures relating to Indian child welfare services and to 
111.16  make recommendations regarding approval of grants provided under 
111.17  section 260.785, subdivisions 1, 2, and 3.  The council shall 
111.18  consist of 17 members appointed by the commissioner and must 
111.19  include representatives of each of the 11 Minnesota reservations 
111.20  who are authorized by tribal resolution, one representative from 
111.21  the Duluth Urban Indian Community, three representatives from 
111.22  the Minneapolis Urban Indian Community, and two representatives 
111.23  from the St. Paul Urban Indian Community.  Representatives from 
111.24  the urban Indian communities must be selected through an open 
111.25  appointments process under section 15.0597.  The terms, 
111.26  compensation, and removal of American Indian Child Welfare 
111.27  Advisory Council members shall be as provided in section 15.059. 
111.28     Subd. 2.  [EXPIRATION.] Notwithstanding section 15.059, 
111.29  subdivision 5, the American Indian Child Welfare Advisory 
111.30  Council expires June 30, 2008. 
111.31     <b>[EFFECTIVE DATE.]</b> This section is effective retroactively 
111.32  from June 30, 2003. 
111.33     Sec. 26.  [STUDY OF ECONOMIC IMPACT OF CHILD SUPPORT 
111.34  GUIDELINES.] 
111.35     Subdivision 1.  [STUDY.] The commissioner of human services 
111.36  shall employ a private provider of policy studies to conduct an 
112.1   economic analysis of the child support guidelines contained in 
112.2   this act to evaluate:  
112.3      (1) whether the guidelines fairly represent the cost of 
112.4   raising children for the respective parental income levels, 
112.5   excluding medical support, child care, and education costs; 
112.6      (2) whether the standards for medical support and child 
112.7   care costs fairly apportion those costs between the parents, 
112.8   after consideration of the respective tax benefits; and 
112.9      (3) whether the guidelines fairly reflect each parent's 
112.10  ability to provide for basic housing needs. 
112.11     The results of the study shall be completed by no later 
112.12  than January 30, 2006.  The private provider must have 
112.13  experience in evaluating or establishing child support 
112.14  guidelines, using the income shares approach, in other states.  
112.15     Sec. 27.  [REPEALER.] 
112.16     (a) Laws 2003, First Special Session chapter 14, article 9, 
112.17  section 34, is repealed. 
112.18     (b) Minnesota Statutes 2004, sections 119B.074 and 256D.54, 
112.19  subdivision 3, are repealed. 
112.20     (c) Minnesota Rules, parts 9500.1254 and 9500.1256, are 
112.21  repealed. 
112.22                             ARTICLE 6
112.23     JOBS AND ECONOMIC DEVELOPMENT SUPPLEMENTAL APPROPRIATIONS
112.24  Section 1.  [JOBS AND ECONOMIC DEVELOPMENT SUPPLEMENTAL 
112.25  APPROPRIATIONS.] 
112.26     The appropriations in this article are available after 
112.27  House File No. 1664 is passed by the house of representatives 
112.28  and are added to the appropriations in article 1. 
112.29     The shown sums in the columns marked "APPROPRIATIONS" are 
112.30  appropriated from the general fund, or another named fund, to 
112.31  the agencies and for the purposes specified in this article, to 
112.32  be available for the fiscal years indicated for each purpose.  
112.33  The figures "2006" and "2007," where used in this article, mean 
112.34  that the appropriation or appropriations listed under them are 
112.35  available for the fiscal year ending June 30, 2006, or June 30, 
112.36  2007, respectively.  The term "first year" means the fiscal year 
113.1   ending June 30, 2006, and the term "second year" means the 
113.2   fiscal year ending June 30, 2007. 
113.3   Sec. 2.  EMPLOYMENT AND ECONOMIC DEVELOPMENT
113.4   Subdivision 1.  Total
113.5   Appropriation                     $    2,921,000 $    2,921,000
113.6   The amounts that may be spent from this 
113.7   appropriation for each program are 
113.8   specified in the following subdivisions.
113.9   Subd. 2.  Workforce Partnerships         500,000        500,000
113.10  $500,000 the first year and $500,000 
113.11  the second year are for a grant under 
113.12  Minnesota Statutes, section 116J.8747, 
113.13  to Twin Cities RISE! to provide 
113.14  training to hard-to-train individuals. 
113.15  Subd. 3.  Workforce Services           2,421,000      2,421,000 
113.16  (a) $1,600,000 the first year and 
113.17  $1,600,000 the second year are for 
113.18  extended employment services for 
113.19  persons with severe disabilities or 
113.20  related conditions under Minnesota 
113.21  Statutes, section 268A.15. 
113.22  (b) $821,000 the first year and 
113.23  $821,000 the second year are for grants 
113.24  for programs that provide employment 
113.25  support to persons with mental illness 
113.26  under Minnesota Statutes, sections 
113.27  268A.13 and 268A.14.  Up to $43,000 
113.28  each year may be used for 
113.29  administrative and salary expenses. 
113.30  Sec. 3.  HOUSING FINANCE AGENCY                       6,500,000 
113.31  This appropriation is available in the 
113.32  second year and is for the economic 
113.33  development and housing challenge 
113.34  program under Minnesota Statutes, 
113.35  section 462A.33.  This is a onetime 
113.36  appropriation and is not to be added to 
113.37  the department's base. 
113.38                             ARTICLE 7
113.39             HUMAN SERVICES SUPPLEMENTAL APPROPRIATIONS
113.40  Section 1.  [HUMAN SERVICES SUPPLEMENTAL APPROPRIATIONS.] 
113.41     The appropriations in this article are available after 
113.42  House File No. 1664 is passed by the house of representatives 
113.43  and are added to the appropriations in article 3. 
113.44     The shown sums in the columns marked "APPROPRIATIONS" are 
113.45  appropriated from the general fund, or another named fund, to 
113.46  the agencies and for the purposes specified in this article, to 
113.47  be available for the fiscal years indicated for each purpose.  
113.48  The figures "2006" and "2007," where used in this article, mean 
114.1   that the appropriation or appropriations listed under them are 
114.2   available for the fiscal year ending June 30, 2006, or June 30, 
114.3   2007, respectively.  The term "first year" means the fiscal year 
114.4   ending June 30, 2006, and the term "second year" means the 
114.5   fiscal year ending June 30, 2007. 
114.6   Sec. 2.  CHILDREN AND ECONOMIC ASSISTANCE GRANTS 
114.7   Subdivision 1.  Total
114.8   Appropriation                     $    1,403,000 $    1,255,000
114.9   Subd. 2. Child Care Assistance 
114.10  Provider Reimbursement Rate Grant Program 
114.11  $1,403,000 the first year and 
114.12  $1,255,000 the second year are 
114.13  appropriated from the general fund for 
114.14  the child care assistance provider 
114.15  reimbursement rate grant program under 
114.16  section 3.  This is a onetime 
114.17  appropriation and is not to be added to 
114.18  the department's base. 
114.19     Sec. 3.  [CHILD CARE ASSISTANCE PROVIDER REIMBURSEMENT RATE 
114.20  GRANT PROGRAM.] 
114.21     Subdivision 1.  [PURPOSE AND ESTABLISHMENT.] The 
114.22  commissioner of human services shall establish a child care 
114.23  assistance provider reimbursement rate grant program for the 
114.24  purpose of allowing certain providers to be reimbursed at rates 
114.25  above the 75th percentile of the market rate as established by 
114.26  the most current market rate survey under Minnesota Statutes, 
114.27  section 119B.13, and published by the Department of Human 
114.28  Services.  These providers must be reimbursed at a rate more 
114.29  closely aligned with the actual cost of care in order to 
114.30  maintain child care capacity in nonmetropolitan areas of 
114.31  Minnesota.  For purposes of this section, "nonmetropolitan" 
114.32  means all Minnesota counties with the exceptions of Anoka, 
114.33  Carver, Dakota, Hennepin, Olmsted, Ramsey, St. Louis, Scott, 
114.34  Stearns, and Washington. 
114.35     Subd. 2.  [PROVIDER ELIGIBILITY.] (a) A nonmetropolitan 
114.36  child care center providing legal child care services as defined 
114.37  under Minnesota Statutes, section 245A.03, is eligible for the 
114.38  grant program established under this section if the center or 
114.39  facility is limited to reimbursement at or less than $160 per 
114.40  week for any age category, as published by the Department of 
115.1   Human Services, for services provided to families receiving 
115.2   child care assistance under Minnesota Statutes, chapter 119B. 
115.3      (b) A nonmetropolitan licensed family child care home 
115.4   providing legal child care services as defined under Minnesota 
115.5   Statutes, section 245A.03, is eligible for the grant program 
115.6   established under this section if the individual is limited to 
115.7   reimbursement at or less than $115 per week for any age 
115.8   category, as published by the Department of Human Services, for 
115.9   services provided to families receiving child care assistance 
115.10  under Minnesota Statutes, chapter 119B. 
115.11     Subd. 3.  [APPLICATION PROCEDURE.] Child care providers may 
115.12  apply to the commissioner of human services, or the 
115.13  commissioner's designee, for the child care assistance provider 
115.14  reimbursement rate grant program on the forms and according to 
115.15  the timelines established by the commissioner.  The 
115.16  commissioner, or the commissioner's designee, has 30 calendar 
115.17  days from the date of receipt of an application to notify the 
115.18  applicant of the eligibility determination. 
115.19     Subd. 4.  [PROVIDER REIMBURSEMENT RATES.] Notwithstanding 
115.20  Minnesota Statutes, section 119B.13, subdivision 1, and Laws 
115.21  2003, First Special Session chapter 14, article 9, section 34, 
115.22  and to the extent funds are available, the commissioner of human 
115.23  services shall reimburse child care providers who the 
115.24  commissioner or the commissioner's designee has determined 
115.25  eligible under subdivision 2, for care provided to families 
115.26  receiving child care assistance under Minnesota Statutes, 
115.27  chapter 119B, at a rate that is the lesser of (1) the rate 
115.28  charged to private pay families, or (2) the 100th percentile of 
115.29  the most current market rate survey.  Notwithstanding any law or 
115.30  rule to the contrary, providers under this section may be 
115.31  reimbursed on a half-day basis.  Grant program reimbursements to 
115.32  providers under this section may be made retroactive to the day 
115.33  following final enactment. 
115.34     Subd. 5.  [SUNSET DATE.] The grant program under this 
115.35  section sunsets on June 30, 2007.  
115.36                             ARTICLE 8 
116.1                   REGULATION OF SERVICE CONTRACTS 
116.2      Section 1.  [59B.01] [SCOPE AND PURPOSE.] 
116.3      (a) The purpose of this chapter is to create a legal 
116.4   framework within which service contracts may be sold in this 
116.5   state. 
116.6      (b) The following are exempt from this chapter: 
116.7      (1) warranties; 
116.8      (2) maintenance agreements; 
116.9      (3) warranties, service contracts, or maintenance 
116.10  agreements offered by public utilities or their affiliates; 
116.11     (4) service contracts sold or offered for sale to persons 
116.12  other than consumers; 
116.13     (5) service contracts on tangible property where the 
116.14  tangible property for which the service contract is sold has a 
116.15  purchase price of $250 or less exclusive of sales tax; and 
116.16     (6) motor vehicle service contracts as defined in section 
116.17  65B.29, subdivision 1, paragraph (1). 
116.18     (c) The types of agreements referred to in paragraph (b) 
116.19  are not subject to chapters 60A to 79A, except as otherwise 
116.20  specifically provided by law. 
116.21     Sec. 2.  [59B.02] [DEFINITIONS.] 
116.22     Subdivision 1.  [TERMS.] For the purposes of this chapter, 
116.23  the terms defined in this section have the meanings given them. 
116.24     Subd. 2.  [ADMINISTRATOR.] "Administrator" means the person 
116.25  who is responsible for the administration of the service 
116.26  contracts or the service contracts plan or who is responsible 
116.27  for any filings required by this chapter.  
116.28     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
116.29  commissioner of commerce. 
116.30     Subd. 4.  [CONSUMER.] "Consumer" means a natural person who 
116.31  buys, other than for purposes of resale, any tangible personal 
116.32  property that is distributed in commerce and that is normally 
116.33  used for personal, family, or household purposes and not for 
116.34  business or research purposes. 
116.35     Subd. 5.  [MAINTENANCE AGREEMENT.] "Maintenance agreement" 
116.36  means a contract of limited duration that provides for scheduled 
117.1   maintenance only. 
117.2      Subd. 6.  [PERSON.] "Person" means an individual, 
117.3   partnership, corporation, incorporated or unincorporated 
117.4   association, joint stock company, reciprocal, syndicate, or any 
117.5   similar entity or combination of entities acting in concert. 
117.6      Subd. 7.  [PREMIUM.] "Premium" means the consideration paid 
117.7   to an insurer for a reimbursement insurance policy. 
117.8      Subd. 8.  [PROVIDER.] "Provider" means a person who is 
117.9   contractually obligated to the service contract holder under the 
117.10  terms of the service contract. 
117.11     Subd. 9.  [PROVIDER FEE.] "Provider fee" means the 
117.12  consideration paid for a service contract. 
117.13     Subd. 10.  [REIMBURSEMENT INSURANCE POLICY.] "Reimbursement 
117.14  insurance policy" means a policy of insurance issued to a 
117.15  provider to either provide reimbursement to the provider under 
117.16  the terms of the insured service contracts issued or sold by the 
117.17  provider or, in the event of the provider's nonperformance, to 
117.18  pay on behalf of the provider all covered contractual 
117.19  obligations incurred by the provider under the terms of the 
117.20  insured service contracts issued or sold by the provider. 
117.21     Subd. 11.  [SERVICE CONTRACT.] "Service contract" means a 
117.22  contract or agreement for a separately stated consideration for 
117.23  a specific duration to perform the repair, replacement, or 
117.24  maintenance of property or indemnification for repair, 
117.25  replacement, or maintenance, for the operational or structural 
117.26  failure due to a defect in materials, workmanship, or normal 
117.27  wear and tear, with or without additional provisions for 
117.28  incidental payment of indemnity under limited circumstances. 
117.29  Service contracts may provide for the repair, replacement, or 
117.30  maintenance of property for damage resulting from power surges 
117.31  and accidental damage from handling. 
117.32     Subd. 12.  [SERVICE CONTRACT HOLDER OR CONTRACT 
117.33  HOLDER.] "Service contract holder" or "contract holder" means a 
117.34  person who is the purchaser or holder of a service contract. 
117.35     Subd. 13.  [WARRANTY.] "Warranty" means a warranty made 
117.36  solely by the manufacturer, importer, or seller of property or 
118.1   services without consideration, that is not negotiated or 
118.2   separated from the sale of the product, and is incidental to the 
118.3   sale of the product, that guarantees indemnity for defective 
118.4   parts, mechanical or electrical breakdown, labor, or other 
118.5   remedial measures, such as repair or replacement of the property 
118.6   or repetition of services. 
118.7      Sec. 3.  [59B.03] [REQUIREMENTS FOR TRANSACTING BUSINESS.] 
118.8      Subdivision 1.  [APPOINTMENT OF ADMINISTRATOR.] A provider 
118.9   may, but is not required to, appoint an administrator or other 
118.10  designee to be responsible for any or all of the administration 
118.11  of service contracts and compliance with this chapter. 
118.12     Subd. 2.  [CONTRACT COPIES AND RECEIPTS.] Service contracts 
118.13  must not be issued, sold, or offered for sale in this state 
118.14  unless the provider has: 
118.15     (1) provided a receipt for, or other written evidence of, 
118.16  the purchase of the service contract to the contract holder; 
118.17     (2) provided a copy of the service contract to the service 
118.18  contract holder within a reasonable period of time from the date 
118.19  of purchase; and 
118.20     (3) complied with this chapter. 
118.21     Subd. 3.  [REGISTRATION.] Each provider of service 
118.22  contracts sold in this state shall file a registration with the 
118.23  commissioner on a form prescribed by the commissioner.  Each 
118.24  provider shall pay to the commissioner a fee in the amount of 
118.25  $750 annually. 
118.26     Subd. 4.  [FINANCIAL REQUIREMENTS.] In order to ensure the 
118.27  faithful performance of a provider's obligations to its contract 
118.28  holders, each provider is responsible for complying with the 
118.29  requirements of one of the following: 
118.30     (1) insure all service contracts under a reimbursement 
118.31  insurance policy issued by an insurer authorized to transact 
118.32  insurance in this state, a risk retention group, as that term is 
118.33  defined in United States Code, title 15, section 3901(A)(4), as 
118.34  long as that risk retention group is in full compliance with the 
118.35  federal Liability Risk Retention Act of 1986, United States 
118.36  Code, title 15, section 3901, et al., or issued pursuant to 
119.1   sections 60A.195 to 60A.209, and either: 
119.2      (i) the insurer or risk retention group shall, at the time 
119.3   the policy is filed with the commissioner, and continuously 
119.4   thereafter, maintain surplus as to policyholders and paid-in 
119.5   capital of at least $15,000,000, and annually file audited 
119.6   financial statements with the commissioner; or 
119.7      (ii) the commissioner may authorize an insurer or risk 
119.8   retention group that has surplus as to policyholders and paid-in 
119.9   capital of less than $15,000,000 but at least equal to 
119.10  $10,000,000 to issue the insurance required by this section if 
119.11  the insurer or risk retention group demonstrates to the 
119.12  satisfaction of the commissioner that the company maintains a 
119.13  ratio of direct written premiums, wherever written, to surplus 
119.14  as to policyholders and paid-in capital of not greater than 3 to 
119.15  1; or 
119.16     (2)(i) maintain a funded reserve account for obligations 
119.17  under contracts issued and outstanding in this state.  The 
119.18  reserves must not be less than 40 percent of gross consideration 
119.19  received, less claims paid, on the sale of the service contract 
119.20  for all in-force contracts.  The reserve account is subject to 
119.21  examination and review by the commissioner; and 
119.22     (ii) place in trust with the commissioner a financial 
119.23  security deposit, having a value of not less than five percent 
119.24  of the gross consideration received, less claims paid, on the 
119.25  sale of the service contract for all service contracts issued 
119.26  and in force, but not less than $25,000, consisting of one of 
119.27  the following: 
119.28     (A) a surety bond issued by an authorized surety; 
119.29     (B) securities of the type eligible for deposit by 
119.30  authorized insurers in this state; 
119.31     (C) cash; 
119.32     (D) a letter of credit issued by a qualified financial 
119.33  institution containing an evergreen clause which prevents the 
119.34  expiration of the letter without due notice from the issuer; or 
119.35     (E) another form of security prescribed by rules of the 
119.36  commissioner; or 
120.1      (3)(i) maintain, or its parent company maintain, a net 
120.2   worth or stockholders' equity of $100,000,000; and 
120.3      (ii) upon request, provide the commissioner with a copy of 
120.4   the provider's or the provider's parent company's most recent 
120.5   Form 10-K or Form 20-F filed with the Securities and Exchange 
120.6   Commission (SEC) within the last calendar year, or if the 
120.7   company does not file with the SEC, a copy of the company's 
120.8   audited financial statements, which shows a net worth of the 
120.9   provider or its parent company of at least $100,000,000.  If the 
120.10  provider's parent company's Form 10-K, Form 20-F, or audited 
120.11  financial statements are filed to meet the provider's financial 
120.12  stability requirement, then the parent company shall agree to 
120.13  guarantee the obligations of the provider relating to service 
120.14  contracts sold by the provider in this state. 
120.15     Subd. 5.  [RIGHT OF RETURN.] Service contracts must require 
120.16  the provider to permit the service contract holder to return the 
120.17  service contract within 20 days of the date the service contract 
120.18  was mailed to the service contract holder or within ten days of 
120.19  delivery if the service contract is delivered to the service 
120.20  contract holder at the time of sale or within a longer time 
120.21  period permitted under the service contract.  Upon return of the 
120.22  service contract to the provider within the applicable time 
120.23  period, if no claim has been made under the service contract 
120.24  before its return to the provider, the service contract is void 
120.25  and the provider shall refund to the service contract holder, or 
120.26  credit the account of the service contract holder, with the full 
120.27  purchase price of the service contract.  The right to void the 
120.28  service contract provided in this paragraph is not transferable 
120.29  and applies only to the original service contract purchaser, and 
120.30  only if no claim has been made before its return to the 
120.31  provider.  A ten percent penalty per month must be added to a 
120.32  refund that is not paid or credited within 45 days after return 
120.33  of the service contract to the provider. 
120.34     Subd. 6.  [PREMIUM TAXES.] (a) Provider fees collected on 
120.35  service contracts are not subject to premium taxes. 
120.36     (b) Premiums for reimbursement insurance policies are 
121.1   subject to applicable taxes. 
121.2      Subd. 7.  [LICENSING EXEMPTION.] Except for the 
121.3   registration requirements in subdivision 3, providers and 
121.4   related service contract sellers, administrators, and other 
121.5   persons marketing, selling, or offering to sell service 
121.6   contracts are exempt from any licensing requirements of this 
121.7   state. 
121.8      Subd. 8.  [INSURANCE EXEMPTION.] The marketing, sale, 
121.9   offering for sale, issuance, making, proposing to make, and 
121.10  administration of service contracts by providers and related 
121.11  service contract sellers, administrators, and other persons are 
121.12  exempt from all other provisions of the insurance laws of this 
121.13  state, except as provided in section 72A.20, subdivision 38. 
121.14     Sec. 4.  [59B.04] [REQUIRED DISCLOSURES; REIMBURSEMENT 
121.15  INSURANCE POLICY.] 
121.16     Subdivision 1.  [RIGHT TO PAYMENT OR 
121.17  REIMBURSEMENT.] Reimbursement insurance policies insuring 
121.18  service contracts issued, sold, or offered for sale in this 
121.19  state shall state that the insurer that issued the reimbursement 
121.20  insurance policy shall either reimburse or pay on behalf of the 
121.21  provider any covered sums the provider is legally obligated to 
121.22  pay or, in the event of the provider's nonperformance, shall 
121.23  provide the service which the provider is legally obligated to 
121.24  perform according to the provider's contractual obligations 
121.25  under the service contracts issued or sold by the provider. 
121.26     Subd. 2.  [RIGHT TO APPLY TO COMPANY.] In the event covered 
121.27  service is not provided by the service contract provider within 
121.28  60 days of proof of loss by the service contract holder, the 
121.29  contract holder is entitled to apply directly to the 
121.30  reimbursement insurance company. 
121.31     Sec. 5.  [59B.05] [REQUIRED DISCLOSURE; SERVICE CONTRACTS.] 
121.32     Subdivision 1.  [READABILITY AND GENERAL 
121.33  DISCLOSURE.] Service contracts marketed, sold, offered for sale, 
121.34  issued, made, proposed to be made, or administered in this state 
121.35  must be written, printed, or typed in clear, understandable 
121.36  language that is easy to read and must disclose the requirements 
122.1   set forth in this section, as applicable. 
122.2      Subd. 2.  [IDENTITIES OF PARTIES.] Service contracts must 
122.3   state the name and address of the provider, and must identify 
122.4   any administrator if different from the provider, the service 
122.5   contract seller, and the service contract holder to the extent 
122.6   that the name of the service contract holder has been furnished 
122.7   by the service contract holder.  The identities of the parties 
122.8   are not required to be preprinted on the service contract and 
122.9   may be added to the service contract at the time of sale. 
122.10     Subd. 3.  [TOTAL PURCHASE PRICE AND SALES TERMS.] Service 
122.11  contracts must state the total purchase price and the terms 
122.12  under which the service contract is sold.  The purchase price is 
122.13  not required to be preprinted on the service contract and may be 
122.14  negotiated at the time of sale with the service contract holder. 
122.15     Subd. 4.  [DEDUCTIBLES.] Service contracts must state the 
122.16  existence of any deductible amount, if applicable. 
122.17     Subd. 5.  [COVERAGES, LIMITATIONS, AND EXCLUSIONS.] No 
122.18  particular causes of loss or property are required to be 
122.19  covered, but service contracts must specify the merchandise and 
122.20  services to be provided and, with equal prominence, any 
122.21  limitations, exceptions, or exclusions including, but not 
122.22  limited to, any damage or breakdown not covered by the service 
122.23  contract.  
122.24     Subd. 6.  [RESTRICTIONS ON TRANSFERABILITY.] Service 
122.25  contracts must state any restrictions governing the 
122.26  transferability of the service contract, if applicable. 
122.27     Subd. 7.  [CANCELLATION TERMS.] Service contracts must 
122.28  state the terms, restrictions, or conditions governing 
122.29  cancellation of the service contract prior to the termination or 
122.30  expiration date of the service contract by either the provider 
122.31  or the service contract holder.  The provider of the service 
122.32  contract shall mail a written notice to the contract holder at 
122.33  the last known address of the service contract holder contained 
122.34  in the records of the provider at least 15 days before 
122.35  cancellation by the provider.  Five days' notice is required if 
122.36  the reason for cancellation is nonpayment of the provider fee, a 
123.1   material misrepresentation by the service contract holder to the 
123.2   provider, or a substantial breach of duties by the service 
123.3   contract holder relating to the covered product or its use.  The 
123.4   notice must state the effective date of the cancellation and the 
123.5   reason for the cancellation. 
123.6      Subd. 8.  [DUTIES OF CONTRACT HOLDER.] Service contracts 
123.7   must set forth all of the obligations and duties of the service 
123.8   contract holder, such as the duty to protect against any further 
123.9   damage and any requirement to follow the owner's manual. 
123.10     Subd. 9.  [EXCLUSIONS; CONSEQUENTIAL DAMAGES AND 
123.11  PREEXISTING CONDITIONS.] Service contracts may exclude coverage 
123.12  for consequential damages or preexisting conditions.  These 
123.13  exclusions, if applicable, must be stated in the contract. 
123.14     Sec. 6.  [59B.06] [ADDITIONAL REQUIRED DISCLOSURE; SERVICE 
123.15  CONTRACTS.] 
123.16     Subdivision 1.  [INSURANCE DISCLOSURE.] Service contracts 
123.17  insured under a reimbursement insurance policy pursuant to 
123.18  section 59B.03, subdivision 4, clause (1), must contain a 
123.19  statement in substantially the following form:  "Obligations of 
123.20  the provider under this service contract are insured under a 
123.21  service contract reimbursement insurance policy."  The service 
123.22  contract must also state the name and address of the insurer. 
123.23     Subd. 2.  [DISCLOSURE OF NO INSURANCE.] Service contracts 
123.24  not insured under a reimbursement insurance policy pursuant to 
123.25  section 59B.03, subdivision 4, clause (1), must contain a 
123.26  statement in substantially the following form:  "Obligations of 
123.27  the provider under this service contract are backed by the full 
123.28  faith and credit of the provider." 
123.29     Sec. 7.  [59B.07] [PROHIBITED ACTS.] 
123.30     Subdivision 1.  [DECEPTIVE NAMES.] A provider shall not use 
123.31  in its name the words insurance, casualty, surety, mutual, or 
123.32  any other words descriptive of the insurance, casualty, or 
123.33  surety business; or a name deceptively similar to the name or 
123.34  description of any insurance or surety corporation, or to the 
123.35  name of any other provider.  The word "guaranty" or similar word 
123.36  may be used by a provider.  This section does not apply to a 
124.1   company that was using any of the prohibited language in its 
124.2   name before the effective date of this chapter.  However, a 
124.3   company using the prohibited language in its name shall include 
124.4   in its service contracts a statement in substantially the 
124.5   following form:  "This agreement is not an insurance contract." 
124.6      Subd. 2.  [FALSE OR MISLEADING STATEMENTS.] A provider or 
124.7   its representative shall not in its service contracts, 
124.8   literature, or otherwise make, permit, or cause to be made any 
124.9   false or misleading statement or omit any material statement 
124.10  that would be considered misleading if omitted. 
124.11     Subd. 3.  [REQUIRED PURCHASE.] A person, such as a bank, 
124.12  savings association, lending institution, manufacturer, or 
124.13  seller of any product shall not require the purchase of a 
124.14  service contract as a condition of a loan or a condition for the 
124.15  sale of any property. 
124.16     Sec. 8.  [59B.08] [RECORD-KEEPING REQUIREMENTS.] 
124.17     Subdivision 1.  [GENERALLY.] The provider shall keep 
124.18  accurate accounts, books, and records concerning transactions 
124.19  regulated under this chapter. 
124.20     The provider's accounts, books, and records include the 
124.21  following: 
124.22     (1) copies of each type of service contracts sold; 
124.23     (2) the name and address of each service contract holder to 
124.24  the extent that the name and address have been furnished by the 
124.25  service contract holder; 
124.26     (3) a list of the locations where service contracts are 
124.27  marketed, sold, or offered for sale; and 
124.28     (4) written claims files which shall contain sufficient 
124.29  information for the commissioner to ascertain whether a claim 
124.30  has been adjusted in conformity with the terms of the service 
124.31  contract, including at least the dates and description of claims 
124.32  related to the service contracts. 
124.33     Subd. 2.  [RETENTION.] (a) Except as provided in paragraph 
124.34  (b), the provider shall retain all records required to be 
124.35  maintained by this section for at least three years after the 
124.36  specified period of coverage has expired. 
125.1      (b) A provider discontinuing business in this state shall 
125.2   maintain its records until it furnishes the commissioner 
125.3   satisfactory proof that it has discharged all obligations to 
125.4   contract holders in this state. 
125.5      Subd. 3.  [MEDIUM.] The records required by this chapter 
125.6   may be, but are not required to be, maintained on a computer 
125.7   disk or other record-keeping technology.  If the records are 
125.8   maintained in other than hard copy, the records must be capable 
125.9   of duplication to legible hard copy at the request of the 
125.10  commissioner. 
125.11     Sec. 9.  [59B.09] [TERMINATION OF REIMBURSEMENT INSURANCE 
125.12  POLICY.] 
125.13     An insurer that issued a reimbursement insurance policy may 
125.14  not terminate the policy unless the insurer mails or delivers 
125.15  written notice of the termination to the commissioner at least 
125.16  30 days before the effective date of termination.  The 
125.17  termination of a reimbursement insurance policy does not reduce 
125.18  the issuer's responsibility for service contracts issued by 
125.19  providers before the date of the termination. 
125.20     Sec. 10.  [59B.10] [OBLIGATION OF REIMBURSEMENT INSURANCE 
125.21  POLICY INSURERS.] 
125.22     Insurers issuing reimbursement insurance to providers are 
125.23  deemed to have received the premiums for the insurance upon the 
125.24  payment of provider fees by consumers for service contracts 
125.25  issued by the insured providers. 
125.26     Nothing in this chapter prevents or limits the right of an 
125.27  insurer which issued a reimbursement insurance policy to seek 
125.28  indemnification or subrogation against a provider if the issuer 
125.29  pays or is obligated to pay the service contract holder sums 
125.30  that the provider was obligated to pay pursuant to the 
125.31  provisions of the service contract. 
125.32     Sec. 11.  [59B.11] [SEVERABILITY PROVISION.] 
125.33     If any provision of this chapter or the application of the 
125.34  provision to any person or circumstances are held invalid, the 
125.35  remainder of this chapter and the application of the provision 
125.36  to person or circumstances other than those as to which it is 
126.1   held invalid, must not be affected. 
126.2      Sec. 12.  Minnesota Statutes 2004, section 72A.20, is 
126.3   amended by adding a subdivision to read: 
126.4      Subd. 38.  [UNFAIR CLAIMS SERVICE; SERVICE CONTRACTS.] No 
126.5   person shall, in connection with a service contract regulated 
126.6   under chapter 59B: 
126.7      (1) attempt to settle claims on the basis of an application 
126.8   or any other material document which was altered without notice 
126.9   to, or knowledge or consent of, the service contract holder; 
126.10     (2) make a material misrepresentation to the warranty 
126.11  holder for the purpose and with the intent of effecting 
126.12  settlement of the claims, loss, or damage under the contract on 
126.13  less favorable terms than those provided in, and contemplated 
126.14  by, the contract; or 
126.15     (3) commit or perform with such frequency as to indicate a 
126.16  general business practice any of the following practices: 
126.17     (i) failure to properly investigate claims; 
126.18     (ii) misrepresentation of pertinent facts or contract 
126.19  provisions relating to coverages at issue; 
126.20     (iii) failure to acknowledge and act upon communications 
126.21  within a reasonable time with respect to claims; 
126.22     (iv) denial of claims without conducting reasonable 
126.23  investigations based upon available information; 
126.24     (v) failure to affirm or deny coverage of claims upon 
126.25  written request of the warranty holder within a reasonable time 
126.26  after proof-of-loss statements have been completed; or 
126.27     (vi) failure to timely provide a reasonable explanation to 
126.28  the warranty holder of the basis in the contract in relation to 
126.29  the facts or applicable law for denial of a claim or for the 
126.30  offer of a compromise settlement. 
126.31     Sec. 13.  [EFFECTIVE DATE.] 
126.32     Sections 1 to 12 are effective January 1, 2006, and apply 
126.33  to service contracts issued on or after that date.  A provider 
126.34  transacting business in this state on or before the date of the 
126.35  enactment of this chapter, which submits an application for 
126.36  registration as a provider under Minnesota Statutes, section 
127.1   59B.03, subdivision 3, within 30 days after the commissioner 
127.2   makes the application available, may continue to transact 
127.3   business in this state until final agency action is taken by the 
127.4   commissioner regarding the registration application and all 
127.5   rights to administrative and judicial review related to that 
127.6   final agency action have been exhausted or have expired. 
127.7                              ARTICLE 9
127.8                     SUPPLEMENTAL APPROPRIATIONS 
127.9   Section 1.  [SUPPLEMENTAL APPROPRIATIONS.] 
127.10     The provisions in this article are effective after H.F. No. 
127.11  2427 is passed by the house of representatives and are added to 
127.12  the appropriations in article 3. 
127.13     Sec. 2.  [AMENDMENT.] 
127.14     H.F. No. 2427 is amended on page 2, line 5, by deleting 
127.15  ".00014" and inserting ".000112" 
127.16     Sec. 3.  Minnesota Statutes 2004, section 256K.35, is 
127.17  amended by adding a subdivision to read: 
127.18     Subd. 5.  [APPROPRIATION.] An amount equal to the proceeds 
127.19  of the deed tax under section 287.21, subdivision 1, paragraph 
127.20  (b), clause (3), on .000028 of the net consideration is 
127.21  appropriated from the general fund to the commissioner of human 
127.22  services for at risk youth out-of-wedlock pregnancy prevention 
127.23  grants under this section.  A minimum of 35 percent of these 
127.24  grant funds must be awarded to eligible applicants located 
127.25  outside of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
127.26  Washington Counties.