1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             economic development, housing, and certain agencies of 
  1.4             state government; modifying programs; regulating 
  1.5             activities and practices; modifying penalty 
  1.6             provisions; changing terms; authorizing a registration 
  1.7             fee; modifying displaced homemaker provisions; 
  1.8             increasing the petroleum inspection fee; requiring 
  1.9             uniform mandatory penalties against license holders 
  1.10            and a licensee's employees for sales to minors; 
  1.11            providing for mitigating circumstances in assessing 
  1.12            penalties; modifying motor vehicle installment sales 
  1.13            provisions; amending Minnesota Statutes 2002, sections 
  1.14            13.462, subdivision 2; 16B.35, subdivision 1; 17.101, 
  1.15            subdivision 1; 41A.036, subdivision 2; 43A.24, 
  1.16            subdivision 2; 43A.27, subdivision 2; 47.59, 
  1.17            subdivision 4a; 60A.14, subdivision 1; 79.56, 
  1.18            subdivisions 1, 3; 115C.02, subdivision 14; 115C.08, 
  1.19            subdivision 4; 115C.09, subdivision 3, by adding 
  1.20            subdivisions; 115C.11, subdivision 1; 115C.13; 
  1.21            116.073, subdivisions 1, 2; 116.46, by adding 
  1.22            subdivisions; 116.49, by adding subdivisions; 116.50; 
  1.23            116J.011; 116J.411, by adding a subdivision; 116J.415, 
  1.24            subdivisions 1, 2, 4, 5, 7, 11; 116J.553, subdivision 
  1.25            2; 116J.554, subdivision 2; 116J.64, subdivision 2; 
  1.26            116J.8731, subdivisions 1, 4, 5, 7; 116J.8764, by 
  1.27            adding a subdivision; 116J.955, subdivision 2; 
  1.28            116J.966, subdivision 1; 116J.994, subdivision 4; 
  1.29            116J.995; 116L.02; 116L.04, subdivisions 1, 1a; 
  1.30            116L.12, subdivision 4; 116L.17, subdivisions 2, 3, 8, 
  1.31            by adding a subdivision; 116M.14, subdivision 4; 
  1.32            116O.03, subdivision 2; 116O.091, subdivision 7; 
  1.33            116O.12; 154.18; 168.66, subdivision 14; 168.71, 
  1.34            subdivision 2; 168.75; 175.16, subdivision 1; 177.26, 
  1.35            subdivisions 1, 2; 178.01; 178.03, subdivisions 1, 2; 
  1.36            181.9435, subdivision 1; 181.9436; 216A.03, 
  1.37            subdivision 1; 216C.41, subdivision 1; 239.10, 
  1.38            subdivision 3; 239.101, subdivision 3; 248.10; 
  1.39            268A.02, by adding a subdivision; 326.105; 354D.02, 
  1.40            subdivision 2; 461.12, subdivision 2; 461.19; 624.20, 
  1.41            subdivision 1; proposing coding for new law in 
  1.42            Minnesota Statutes, chapters 60A; 115C; 178; repealing 
  1.43            Minnesota Statutes 2002, sections 13.598, subdivision 
  1.44            2; 116J.411, subdivision 3; 116J.415, subdivisions 6, 
  1.45            9, 10; 116J.693; 116J.9665; 116L.03, subdivision 7; 
  1.46            138.91; 155A.03, subdivisions 14, 15; 155A.07, 
  2.1             subdivision 9; 177.26, subdivision 3; 178.11; 
  2.2             Minnesota Rules, part 2100.9300, subpart 1. 
  2.3   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.4                              ARTICLE 1 
  2.5                            APPROPRIATIONS 
  2.6                         ECONOMIC DEVELOPMENT 
  2.7   Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  2.8      The sums shown in the columns marked "APPROPRIATIONS" are 
  2.9   appropriated from the general fund, or another named fund, to 
  2.10  the agencies and for the purposes specified in this act, to be 
  2.11  available for the fiscal years indicated for each purpose.  The 
  2.12  figures "2004" and "2005," where used in this act, mean that the 
  2.13  appropriation or appropriations listed under them are available 
  2.14  for the year ending June 30, 2004, or June 30, 2005, 
  2.15  respectively.  The term "first year" means the fiscal year 
  2.16  ending June 30, 2004, and the term "second year" means the 
  2.17  fiscal year ending June 30, 2005. 
  2.18                          SUMMARY BY FUND
  2.19                            2004          2005           TOTAL
  2.20  General            $  165,223,000 $  158,178,000 $  323,401,000
  2.21  Petroleum Tank 
  2.22  Cleanup                 1,834,000      1,084,000      2,918,000
  2.23  Environmental 
  2.24  Fund                      700,000        700,000      1,400,000
  2.25  Workers'  
  2.26  Compensation           21,905,000     21,600,000     43,505,000
  2.27  Workforce Development 
  2.28  Fund                    7,720,000      7,720,000     15,440,000
  2.29  TANF Block Grant        1,250,000      1,250,000      2,500,000
  2.30  TOTAL              $  198,632,000 $  190,532,000 $  389,164,000
  2.31                                             APPROPRIATIONS 
  2.32                                         Available for the Year 
  2.33                                             Ending June 30 
  2.34                                            2004         2005 
  2.35  Sec. 2.  TRADE AND ECONOMIC  
  2.36  DEVELOPMENT 
  2.37  Subdivision 1.  Total 
  2.38  Appropriation                     $   69,448,000 $   64,673,000
  2.39                Summary by Fund
  2.40  General              60,278,000    56,253,000
  2.41  Petroleum Tank
  3.1   Cleanup                 750,000       -0-    
  3.2   Environmental Fund      700,000       700,000
  3.3   Workforce Development
  3.4   Fund                  7,720,000     7,720,000
  3.5   The amounts that may be spent from this 
  3.6   appropriation for each program are 
  3.7   specified in the following subdivisions.
  3.8   Subd. 2.  Business and Community 
  3.9   Development                           13,114,000      8,734,000
  3.10                Summary by Fund
  3.11  General              11,664,000     8,034,000
  3.12  Petroleum Tank
  3.13  Cleanup                 750,000       -0-    
  3.14  Environmental Fund      700,000       700,000
  3.15  $2,203,000 the first year and 
  3.16  $2,203,000 the second year are for 
  3.17  Minnesota investment fund grants. 
  3.18  $150,000 the first year and $150,000 
  3.19  the second year are for grants to the 
  3.20  rural policy and development center at 
  3.21  Minnesota State University, Mankato.  
  3.22  The grant shall be used for research 
  3.23  and policy analysis on emerging 
  3.24  economic and social issues in rural 
  3.25  Minnesota, to serve as a policy 
  3.26  resource center for rural Minnesota 
  3.27  communities, to encourage collaboration 
  3.28  across higher education institutions to 
  3.29  provide interdisciplinary team 
  3.30  approaches to research and problem 
  3.31  solving in rural communities, and to 
  3.32  administer overall operations of the 
  3.33  center. 
  3.34  The grant shall be provided upon the 
  3.35  condition that each state-appropriated 
  3.36  dollar be matched with a 
  3.37  nonstate-appropriated dollar.  
  3.38  Acceptable matching funds are 
  3.39  nonstate-appropriated contributions 
  3.40  that the center has received and have 
  3.41  not been used to match previous state 
  3.42  grants.  The funds not spent the first 
  3.43  year are available the second. 
  3.44  $1,000,000 the first year and 
  3.45  $1,000,000 the second year are onetime 
  3.46  appropriations to encourage and 
  3.47  facilitate a joint partnership with the 
  3.48  University of Minnesota and the Mayo 
  3.49  Foundation for research in 
  3.50  biotechnology and medical genomics.  
  3.51  This appropriation must be matched 
  3.52  dollar for dollar by nonstate funds.  
  3.53  Funds shall be made available on a 
  3.54  reimbursement basis after certification 
  3.55  to the commissioner of finance of the 
  3.56  nonstate match.  
  3.57  In the first year, the appropriation 
  3.58  funds operating costs of the 
  4.1   collaboration, including salaries, but 
  4.2   does not include capital expenditures.  
  4.3   The University of Minnesota and the 
  4.4   Mayo Foundation shall submit a business 
  4.5   plan to the governor, the chair of the 
  4.6   house jobs and economic development 
  4.7   committee, and the chair of the senate 
  4.8   jobs, housing, and community 
  4.9   development committee no later than 
  4.10  October 1, 2003.  The plan should 
  4.11  identify specific disciplines for 
  4.12  development and collaboration, data 
  4.13  access and confidentiality policies; 
  4.14  timelines, and include a discussion of 
  4.15  the expected economic benefits of the 
  4.16  partnership to the state of Minnesota.  
  4.17  After adoption of the business plan by 
  4.18  the governing bodies of the University 
  4.19  of Minnesota and the Mayo Foundation, 
  4.20  the appropriation in the second year 
  4.21  shall be made available on a 
  4.22  reimbursement basis to begin 
  4.23  implementation of the business plan.  A 
  4.24  preliminary report on the budgeted 
  4.25  expenditure of these funds should be 
  4.26  submitted no later than October 1, 
  4.27  2004.  A final report on the 
  4.28  expenditure of these funds should be 
  4.29  submitted no later than July 31, 2005. 
  4.30  $2,000,000 the first year is to the 
  4.31  Minnesota investment fund to make 
  4.32  grants to local units of government for 
  4.33  locally administered grants or loan 
  4.34  programs, including buyouts, for 
  4.35  businesses directly and adversely 
  4.36  affected by flooding in the area 
  4.37  included in DR-1419.  Criteria and 
  4.38  requirements must be locally 
  4.39  established with the approval of the 
  4.40  commissioner.  For the purposes of this 
  4.41  appropriation, Minnesota Statutes, 
  4.42  sections 116J.8731, subdivisions 3, 4, 
  4.43  5, and 7; 116J.993; 116J.994; and 
  4.44  116J.995, are waived.  Businesses that 
  4.45  receive grants or loans from this 
  4.46  appropriation must set goals for jobs 
  4.47  retained and wages paid within the area 
  4.48  included in DR-1419. 
  4.49  This is a onetime appropriation and is 
  4.50  available until expended. 
  4.51  Notwithstanding Minnesota Statutes, 
  4.52  section 115C.08, subdivision 4, 
  4.53  $750,000 the first year is for grants 
  4.54  to local units of government in the 
  4.55  area included in DR-1419 to safely 
  4.56  rehabilitate buildings if a portion of 
  4.57  the rehabilitation costs is 
  4.58  attributable to petroleum contamination 
  4.59  or to buy out property substantially 
  4.60  damaged by a petroleum tank release.  
  4.61  This appropriation is not subject to 
  4.62  the limitations of Minnesota Statutes, 
  4.63  section 115C.09, subdivision 3i. 
  4.64  This is a onetime appropriation from 
  4.65  the petroleum tank release cleanup fund 
  4.66  and is available until expended. 
  5.1   $1,125,000 the first year to the public 
  5.2   facilities authority for grants to 
  5.3   local units of government to assist 
  5.4   with the cost of rehabilitation and 
  5.5   replacement of publicly owned 
  5.6   infrastructure, including storm sewers, 
  5.7   wastewater and municipal utility 
  5.8   service, drinking water systems, and 
  5.9   other infrastructure damaged by 
  5.10  flooding in the area included in 
  5.11  DR-1419.  This is a onetime 
  5.12  appropriation and is available until 
  5.13  expended. 
  5.14  $500,000 the first year is for a grant 
  5.15  to the city of Roseau for engineering 
  5.16  and design plans to relocate the flood 
  5.17  damaged city hall, auditorium, library, 
  5.18  museum, and police department out of 
  5.19  the Roseau river floodway as a result 
  5.20  of flooding as declared in DR-1419.  
  5.21  This is a onetime appropriation and is 
  5.22  available until expended. 
  5.23  Subd. 3.  Minnesota Trade   
  5.24  Office                                 2,187,000      2,187,000 
  5.25  Subd. 4.  Workforce Development        7,435,000      7,435,000 
  5.26  $7,435,000 the first year and 
  5.27  $7,435,000 the second year are for the 
  5.28  job skills partnership and pathways 
  5.29  programs.  If the appropriation for 
  5.30  either year is insufficient, the 
  5.31  appropriation for the other year is 
  5.32  available.  This appropriation does not 
  5.33  cancel. 
  5.34  Subd. 5.  Office of Tourism            8,391,000      8,384,000 
  5.35  To develop maximum private sector 
  5.36  involvement in tourism, $3,500,000 the 
  5.37  first year and $3,500,000 the second 
  5.38  year of the amounts appropriated for 
  5.39  marketing activities are contingent on 
  5.40  receipt of an equal contribution from 
  5.41  nonstate sources that have been 
  5.42  certified by the commissioner.  Up to 
  5.43  one-half of the match may be given in 
  5.44  in-kind contributions. 
  5.45  In order to maximize marketing grant 
  5.46  benefits, the commissioner must give 
  5.47  priority for joint venture marketing 
  5.48  grants to organizations with year-round 
  5.49  sustained tourism activities.  For 
  5.50  programs and projects submitted, the 
  5.51  commissioner must give priority to 
  5.52  those that encompass two or more areas 
  5.53  or that attract nonresident travelers 
  5.54  to the state. 
  5.55  If an appropriation for either year for 
  5.56  grants is not sufficient, the 
  5.57  appropriation for the other year is 
  5.58  available for it. 
  5.59  The commissioner may use grant dollars 
  5.60  or the value of in-kind services to 
  5.61  provide the state contribution for the 
  5.62  partnership program. 
  6.1   Any unexpended money from general fund 
  6.2   appropriations made under this 
  6.3   subdivision does not cancel but must be 
  6.4   placed in a special advertising account 
  6.5   for use by the office of tourism to 
  6.6   purchase additional media. 
  6.7   Of this amount, $50,000 the first year 
  6.8   is for a onetime grant to the 
  6.9   Mississippi River parkway commission to 
  6.10  support the increased promotion of 
  6.11  tourism along the Great River Road.  
  6.12  This appropriation is available until 
  6.13  June 30, 2005. 
  6.14  Subd. 6.  Administration               4,992,000      4,604,000 
  6.15  Subd. 7.  Workforce Services           7,123,000      7,123,000 
  6.16                Summary by Fund
  6.17  General               6,348,000     6,348,000
  6.18  Workforce Development
  6.19  Fund                    775,000       775,000
  6.20  $1,257,000 the first year and 
  6.21  $1,257,000 the second year are for the 
  6.22  youth intervention programs under 
  6.23  Minnesota Statutes, section 268.30.  
  6.24  The base funding in the fiscal year 
  6.25  2006-2007 biennium is $1,446,000 each 
  6.26  year. 
  6.27  Subd. 8.  Rehabilitation Services     21,758,000     21,758,000 
  6.28                Summary by Fund
  6.29  General              14,813,000    14,813,000
  6.30  Workforce Development
  6.31  Fund                  6,945,000     6,945,000
  6.32  $1,325,000 the first year and 
  6.33  $1,325,000 the second year are for 
  6.34  grants to fund the eight centers for 
  6.35  independent living.  The base funding 
  6.36  in the fiscal year 2006-2007 biennium 
  6.37  is $1,690,000 each year. 
  6.38  Subd. 9.  State Services for
  6.39  the Blind                              4,448,000      4,448,000 
  6.40  The base funding restored by this 
  6.41  subdivision is intended to be used to 
  6.42  provide services to blind persons, and 
  6.43  that restored funding should not be 
  6.44  used to increase administrative 
  6.45  expenditures. 
  6.46  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    2,000,000        -0-     
  6.47  $2,000,000 the first year is for 
  6.48  transfer from the general fund to the 
  6.49  Minnesota Technology, Inc. fund.  This 
  6.50  is a onetime appropriation and no base 
  6.51  funding is provided for any future year.
  6.52  Sec. 4.  HOUSING FINANCE AGENCY   
  6.53  Subdivision 1.  Total  
  7.1   Appropriation                         35,360,000     34,860,000 
  7.2                 Summary by Fund
  7.3   General              34,735,000    34,235,000
  7.4   TANF Block Grant        625,000       625,000
  7.5   This appropriation is for transfer to 
  7.6   the housing development fund.  Except 
  7.7   as otherwise indicated, this transfer 
  7.8   is part of the agency's permanent 
  7.9   budget base. 
  7.10  Subd. 2.  Roseau Flood Assistance 
  7.11  $500,000 the first year is for a 
  7.12  onetime grant for the city of Roseau to 
  7.13  buy out flood damaged residential 
  7.14  properties as provided below.  The 
  7.15  agency is authorized to provide 
  7.16  assistance for the city of Roseau to 
  7.17  acquire properties within the area 
  7.18  included in DR-1419 that meet the 
  7.19  following criteria: 
  7.20  (1) the owner agrees to voluntarily 
  7.21  sell the property; 
  7.22  (2) the property to be acquired was the 
  7.23  principal residence of the owner prior 
  7.24  to the flooding described in DR-1419; 
  7.25  and 
  7.26  (3) the cost of restoring the property 
  7.27  to its predamage condition would equal 
  7.28  or exceed 50 percent of the market 
  7.29  value of the structure before the 
  7.30  damage occurred, or the property has 
  7.31  been declared uninhabitable by a state 
  7.32  or local official in accordance with 
  7.33  current codes or ordinances. 
  7.34  Property owners may receive assistance 
  7.35  from the city in amounts up to the 
  7.36  preflood fair market value of their 
  7.37  property.  The city must reduce the 
  7.38  assistance provided to a property owner 
  7.39  by any duplication of benefits from 
  7.40  other sources.  If the property owner 
  7.41  is selling the structure which served 
  7.42  as the principal residence but not the 
  7.43  real property on which the structure is 
  7.44  located, the assistance must be reduced 
  7.45  by the preflood fair market value of 
  7.46  the real property.  If the city sells 
  7.47  the real property it has acquired with 
  7.48  the assistance provided under this 
  7.49  subdivision, it will repay to the 
  7.50  agency any funds obtained from the sale 
  7.51  of the real property.  
  7.52  Subd. 3.  Affordable Rental Investment 
  7.53  Fund 
  7.54  $9,273,000 the first year and 
  7.55  $9,273,000 the second year are for the 
  7.56  affordable rental investment fund 
  7.57  program under Minnesota Statutes, 
  7.58  section 462A.21, subdivision 8b.  These 
  7.59  amounts are to finance the acquisition, 
  8.1   rehabilitation, and debt restructuring 
  8.2   of federally assisted rental property 
  8.3   and for making equity take-out loans 
  8.4   under Minnesota Statutes, section 
  8.5   462A.05, subdivision 39.  The owner of 
  8.6   the federally assisted rental property 
  8.7   must agree to participate in the 
  8.8   applicable federally assisted housing 
  8.9   program and to extend any existing 
  8.10  low-income affordability restrictions 
  8.11  on the housing for the maximum term 
  8.12  permitted.  The owner must also enter 
  8.13  into an agreement that gives local 
  8.14  units of government, housing and 
  8.15  redevelopment authorities, and 
  8.16  nonprofit housing organizations the 
  8.17  right of first refusal if the rental 
  8.18  property is offered for sale.  Priority 
  8.19  must be given among comparable 
  8.20  properties to properties with the 
  8.21  longest remaining term under an 
  8.22  agreement for federal rental 
  8.23  assistance.  Priority must also be 
  8.24  given among comparable rental housing 
  8.25  developments to developments that are 
  8.26  or will be owned by local government 
  8.27  units, a housing and redevelopment 
  8.28  authority, or a nonprofit housing 
  8.29  organization. 
  8.30  Subd. 4.  Family Homeless Prevention
  8.31                Summary by Fund
  8.32  General               3,065,000     3,065,000
  8.33  TANF Block Grant        625,000       625,000
  8.34  $3,065,000 the first year and 
  8.35  $3,065,000 the second year are for 
  8.36  family homeless prevention and 
  8.37  assistance programs under Minnesota 
  8.38  Statutes, section 462A.204.  Any 
  8.39  balance in the first year does not 
  8.40  cancel but is available in the second 
  8.41  year.  The general fund base funding to 
  8.42  this program for the 2006-2007 biennium 
  8.43  is $3,565,000 each year. 
  8.44  $1,250,000 of the TANF block grant 
  8.45  appropriation to the pathways program 
  8.46  in Laws 1999, chapter 223, article 1, 
  8.47  section 2, subdivision 2, is canceled.  
  8.48  Of the amount canceled, $625,000 the 
  8.49  first year and $625,000 the second year 
  8.50  are appropriated to the family homeless 
  8.51  prevention and assistance programs 
  8.52  under Minnesota Statutes, section 
  8.53  462A.204.  Any balance in the first 
  8.54  year does not cancel but is available 
  8.55  in the second year.  This is a onetime 
  8.56  appropriation. 
  8.57  Sec. 5.  COMMERCE 
  8.58  Subdivision 1.  Total 
  8.59  Appropriation                         26,088,000     25,761,000
  8.60                Summary by Fund
  8.61  General              24,169,000    23,842,000
  9.1   Petroleum    
  9.2   Cleanup               1,084,000     1,084,000
  9.3   Workers'     
  9.4   Compensation            835,000       835,000
  9.5   The amounts that may be spent from this 
  9.6   appropriation for each program are 
  9.7   specified in the following subdivisions.
  9.8   Subd. 2.  Financial        
  9.9   Examinations                           5,997,000      5,994,000 
  9.10  Subd. 3.  Petroleum Tank Release 
  9.11  Cleanup Board                          1,084,000      1,084,000 
  9.12  This appropriation is from the 
  9.13  petroleum tank release cleanup fund. 
  9.14  Subd. 4.  Administrative Services      5,518,000      5,518,000 
  9.15  Subd. 5.  Market Assurance             6,442,000      6,117,000
  9.16                Summary by Fund
  9.17  General               5,607,000     5,282,000
  9.18  Workers' Compensation   835,000       835,000
  9.19  Subd. 6.  Energy and 
  9.20  Telecommunications                     3,941,000      3,941,000 
  9.21  Subd. 7.  Weights and 
  9.22  Measurement                            3,106,000      3,107,000 
  9.23  Sec. 6.  BOARD OF ACCOUNTANCY            577,000        577,000 
  9.24  Sec. 7.  BOARD OF ARCHITECTURE, 
  9.25  ENGINEERING, LAND SURVEYING, 
  9.26  LANDSCAPE ARCHITECTURE, 
  9.27  GEOSCIENCE, AND INTERIOR 
  9.28  DESIGN                                   881,000        881,000 
  9.29  Sec. 8.  BOARD OF BARBER    
  9.30  EXAMINERS                                172,000        172,000 
  9.31  Sec. 9.  LABOR AND INDUSTRY                                     
  9.32  Subdivision 1.  Total           
  9.33  Appropriation                         22,357,000     21,986,000
  9.34                Summary by Fund
  9.35  General               2,905,000     2,839,000
  9.36  Workers'     
  9.37  Compensation         19,452,000    19,147,000
  9.38  The amounts that may be spent from this 
  9.39  appropriation for each program are 
  9.40  specified in the following subdivisions.
  9.41  Subd. 2.  Workers'          
  9.42  Compensation                          10,221,000     10,221,000 
  9.43  This appropriation is from the workers' 
  9.44  compensation fund. 
  9.45  Subd. 3.  Workplace Services           6,544,000      6,478,000
  9.46  $345,000 the first year and $345,000 
 10.1   the second year is for boiler 
 10.2   inspections under Minnesota Statutes, 
 10.3   section 183.38, subdivision 1.  This is 
 10.4   a onetime appropriation and is not 
 10.5   added to the department's base. 
 10.6                 Summary by Fund
 10.7   General               2,905,000     2,839,000
 10.8   Workers'     
 10.9   Compensation          3,639,000     3,639,000
 10.10  Subd. 4.  General Support              5,592,000      5,287,000 
 10.11  This appropriation is from the workers' 
 10.12  compensation fund. 
 10.13  Sec. 10.  BUREAU OF MEDIATION
 10.14  SERVICES                               1,673,000      1,673,000 
 10.15  Sec. 11.  WORKERS' COMPENSATION 
 10.16  COURT OF APPEALS                       1,618,000      1,618,000 
 10.17  This appropriation is from the workers' 
 10.18  compensation fund. 
 10.19  Sec. 12.  PUBLIC UTILITIES  
 10.20  COMMISSION                             4,163,000      4,163,000 
 10.21  Sec. 13.  MINNESOTA HISTORICAL 
 10.22  SOCIETY 
 10.23  Subdivision 1.  Total 
 10.24  Appropriation                         21,957,000     21,830,000
 10.25  The amounts that may be spent from this 
 10.26  appropriation for each program are 
 10.27  specified in the following subdivisions.
 10.28  Budget reductions must first be made by 
 10.29  reducing administrative expenses.  
 10.30  Reductions in services may be 
 10.31  considered only after available 
 10.32  administrative savings have been 
 10.33  realized. 
 10.34  The historical society may not close or 
 10.35  effectively eliminate public access to 
 10.36  any historic site in order to reduce 
 10.37  its budget.  The society may act to 
 10.38  eliminate access to a site only if the 
 10.39  reason for doing so is a public safety 
 10.40  or other emergency unrelated to the 
 10.41  reductions in its budget that are 
 10.42  called for in this or other legislative 
 10.43  acts. 
 10.44  Subd. 2.  Education and     
 10.45  Outreach                              12,124,000     12,124,000 
 10.46  Subd. 3.  Preservation and  
 10.47  Access                                 9,579,000      9,579,000 
 10.48  Subd. 4.  Fiscal Agent                   254,000        127,000 
 10.49  (a) Minnesota International Center 
 10.50          43,000         42,000 
 10.51  (b) Minnesota Air National   
 11.1   Guard Museum 
 11.2           16,000        -0-     
 11.3   (c) Minnesota Military Museum 
 11.4           67,000        -0-     
 11.5   (d) Farmamerica              
 11.6          128,000         85,000 
 11.7   Notwithstanding any other law, this 
 11.8   appropriation may be used for 
 11.9   operations. 
 11.10  (e) Balances Forward         
 11.11  Any unencumbered balance remaining in 
 11.12  this subdivision the first year does 
 11.13  not cancel but is available for the 
 11.14  second year of the biennium. 
 11.15  Subd. 5.  Fund Transfer  
 11.16  The society may reallocate funds 
 11.17  appropriated in and between 
 11.18  subdivisions 2 and 3 for any program 
 11.19  purposes. 
 11.20  Sec. 14.  COUNCIL ON BLACK  
 11.21  MINNESOTANS                              282,000        282,000 
 11.22  Sec. 15.  COUNCIL ON        
 11.23  CHICANO-LATINO AFFAIRS                   275,000        275,000 
 11.24  Sec. 16.  COUNCIL ON 
 11.25  ASIAN-PACIFIC MINNESOTANS                243,000        243,000 
 11.26  Sec. 17.  INDIAN AFFAIRS    
 11.27  COUNCIL                                  482,000        482,000 
 11.28  Sec. 18.  BOARD OF THE      
 11.29  ARTS                                   
 11.30  Subdivision 1.  Total 
 11.31  Appropriation                          8,593,000      8,593,000 
 11.32  Subd. 2.  Operations and Services        404,000        404,000 
 11.33  Subd. 3.  Grants Programs              5,767,000      5,767,000 
 11.34  Subd. 4.  Regional Arts     
 11.35  Councils                               2,422,000      2,422,000 
 11.36  Sec. 19.  DEPARTMENT OF EDUCATION
 11.37  Subdivision 1.  Total Appropriation    2,463,000      2,463,000 
 11.38                Summary by Fund
 11.39  General               1,838,000     1,838,000
 11.40  TANF Block Grant        625,000       625,000
 11.41  Subd. 2.  Emergency Services             350,000        350,000 
 11.42  Any balance in the first year does not 
 11.43  cancel but is available in the second 
 11.44  year. 
 12.1   Subd. 3.  Transitional Housing         2,113,000      2,113,000 
 12.2                 Summary by Fund
 12.3   General               1,488,000     1,488,000
 12.4   TANF Block Grant        625,000       625,000
 12.5   $1,488,000 the first year and 
 12.6   $1,488,000 the second year are for 
 12.7   transitional housing programs according 
 12.8   to Minnesota Statutes, section 
 12.9   119A.43.  Any balance in the first year 
 12.10  does not cancel but is available in the 
 12.11  second year.  The general fund base 
 12.12  funding to this program for the 
 12.13  2006-2007 biennium is $1,988,000 each 
 12.14  year. 
 12.15  $450,000 of the TANF block grant 
 12.16  appropriation to the pathways program 
 12.17  in Laws 1999, chapter 223, article 1, 
 12.18  section 2, subdivision 2, is canceled.  
 12.19  This $450,000 is appropriated to the 
 12.20  transitional housing programs according 
 12.21  to Minnesota Statutes, section 
 12.22  119A.43.  Any balance in the first year 
 12.23  does not cancel but is available in the 
 12.24  second year.  This is a onetime 
 12.25  appropriation. 
 12.26  $800,000 of the TANF block grant 
 12.27  appropriation to the health care and 
 12.28  human services worker training and 
 12.29  retention program in Laws 2001, First 
 12.30  Special Session chapter 4, article 1, 
 12.31  section 2, subdivision 4, is canceled.  
 12.32  Of the amount canceled, $175,000 the 
 12.33  first year and $625,000 the second year 
 12.34  are appropriated to the transitional 
 12.35  housing programs according to Minnesota 
 12.36  Statutes, section 119A.43.  Any balance 
 12.37  in the first year does not cancel but 
 12.38  is available in the second year.  This 
 12.39  is a onetime appropriation. 
 12.40     Sec. 20.  [CANCELLATIONS AND TRANSFERS.] 
 12.41     (a) The unexpended balance as of July 1, 2003, from all 
 12.42  appropriations to the capital access program established under 
 12.43  Minnesota Statutes, section 116J.8761, is canceled to the 
 12.44  general fund. 
 12.45     (b) The unexpended balance as of July 1, 2003, in the 
 12.46  nongame wildlife tourism program in the department of trade and 
 12.47  economic development is canceled to the general fund. 
 12.48     (c) Of the unexpended balance as of July 1, 2003, in the 
 12.49  Indian business loan program account established under Minnesota 
 12.50  Statutes, section 116J.64, subdivision 6, $800,000 is 
 12.51  transferred to the general fund.  Notwithstanding the provisions 
 12.52  of that subdivision, during fiscal years 2004 and 2005, any tax 
 13.1   revenue that would otherwise be deposited in the Indian business 
 13.2   loan program account shall be deposited in the general fund.  On 
 13.3   July 10, 2005, the commissioner of finance shall transfer 
 13.4   $500,000 from the general fund to the Indian business loan 
 13.5   program account.  
 13.6      (d) Of the money appropriated for fair housing education 
 13.7   under Laws 2001, chapter 208, section 28, $800,000 is canceled 
 13.8   and transferred to the general fund. 
 13.9      (e) Of the unexpended balance in the consumer education 
 13.10  account established under Minnesota Statutes, section 58.10, 
 13.11  subdivision 3, $90,000 is transferred to the general fund. 
 13.12     (f) Of the money appropriated for education regarding 
 13.13  mortgage flipping by Laws 1999, chapter 223, article 1, section 
 13.14  6, subdivision 3, $15,000 is canceled and transferred to the 
 13.15  general fund. 
 13.16     (g) Of the appropriation made to the department of trade 
 13.17  and economic development in Laws 1997, chapter 200, article 1, 
 13.18  section 2, subdivision 2, $361,000 is canceled to the general 
 13.19  fund. 
 13.20     (h) Of the appropriation made to the public facilities 
 13.21  authority in Laws 2000, chapter 492, article 1, section 22, 
 13.22  subdivision 3, $700,000 is canceled to the general fund. 
 13.23     (i) After July 1, 2003, but before September 30, 2003, the 
 13.24  commissioner of finance shall transfer $800,000 of the 
 13.25  unexpended balance in the tourism loan account established under 
 13.26  Minnesota Statutes, section 116J.617, subdivision 5, to the 
 13.27  general fund. 
 13.28     (j) Minnesota Statutes, section 116J.617, is repealed.  Any 
 13.29  repayments of principal and any interest earned on money 
 13.30  previously in the tourism loan account shall be deposited in the 
 13.31  general fund. 
 13.32     (k) On or before June 30 of each fiscal year of the 
 13.33  2004-2005 biennium, the commissioner of finance shall transfer 
 13.34  $1,000,000 from the workforce development fund to the general 
 13.35  fund. 
 13.36     (l) After 1, 2003, but before September 30, 2003, the 
 14.1   commissioner of finance shall transfer $2,500,000 of the 
 14.2   unexpended balance in the contractor's recovery fund established 
 14.3   under Minnesota Statutes, section 326.975, subdivision 1, to the 
 14.4   general fund. 
 14.5      (m) Of the unexpended balance in the liquefied petroleum 
 14.6   gas account established under Minnesota Statutes, section 
 14.7   239.785, $500,000 is transferred to the general fund. 
 14.8                              ARTICLE 2
 14.9                        DEPARTMENT OF COMMERCE 
 14.10                         POLICY PROVISIONS 
 14.11     Section 1.  [60A.035] [GOVERNMENT CONTROLLED OR OWNED 
 14.12  COMPANY PROHIBITED FROM TRANSACTING BUSINESS.] 
 14.13     (a) No insurance company the voting control or ownership of 
 14.14  which is held in whole or substantial part by any government or 
 14.15  governmental agency or entity having a tax exemption under 
 14.16  section 501(c)(27)(B) or 115 of the Internal Revenue Code of 
 14.17  1986 or which is operated for or by any such government or 
 14.18  agency or entity having a tax exemption under section 
 14.19  501(c)(27)(B) or 115 of the Internal Revenue Code of 1986 is 
 14.20  authorized to transact insurance in this state.  Membership in a 
 14.21  mutual company, subscribership in a reciprocal insurer, 
 14.22  ownership of stock of an insurer by the alien property custodian 
 14.23  or similar official of the United States, or supervision of an 
 14.24  insurer by public insurance supervisory authority is not 
 14.25  considered to be an ownership, control, or operation of the 
 14.26  insurer for the purposes of this section. 
 14.27     (b) This section does not apply to an insurance company if 
 14.28  its sole insurance business in this state is providing workers' 
 14.29  compensation insurance and associated employers' liability 
 14.30  coverage to an employer principally located in the insurer's 
 14.31  state of domicile whose employee may receive benefits under 
 14.32  section 176.041, subdivision 4, provided the operations of the 
 14.33  employer are for fewer than 30 consecutive days in this state 
 14.34  and provided the employer has no other significant contacts with 
 14.35  this state. 
 14.36     (c) This section does not apply to a fund established under 
 15.1   section 16B.85, subdivision 2. 
 15.2      Sec. 2.  Minnesota Statutes 2002, 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 certified copy of certificate of articles of 
 15.17  incorporation, $100; 
 15.18     (2) for filing annual statement, $225; 
 15.19     (3) for filing certified copy of amendment to certificate 
 15.20  or articles of incorporation, $100; 
 15.21     (4) for filing bylaws, $75 or amendments thereto, $75; 
 15.22     (5) for each company's certificate of authority, $575, 
 15.23  annually; 
 15.24     (c) the following general fees apply: 
 15.25     (1) for each certificate, including certified copy of 
 15.26  certificate of authority, renewal, valuation of life policies, 
 15.27  corporate condition or qualification, $25; 
 15.28     (2) for each copy of paper on file in the commissioner's 
 15.29  office 50 cents per page, and $2.50 for certifying the same; 
 15.30     (3) for license to procure insurance in unadmitted foreign 
 15.31  companies, $575; 
 15.32     (4) for valuing the policies of life insurance companies, 
 15.33  one cent per $1,000 of insurance so valued, provided that the 
 15.34  fee shall not exceed $13,000 per year for any company.  The 
 15.35  commissioner may, in lieu of a valuation of the policies of any 
 15.36  foreign life insurance company admitted, or applying for 
 16.1   admission, to do business in this state, accept a certificate of 
 16.2   valuation from the company's own actuary or from the 
 16.3   commissioner of insurance of the state or territory in which the 
 16.4   company is domiciled; 
 16.5      (5) for receiving and filing certificates of policies by 
 16.6   the company's actuary, or by the commissioner of insurance of 
 16.7   any other state or territory, $50; 
 16.8      (6) for each appointment of an agent filed with the 
 16.9   commissioner, $10; 
 16.10     (7) for filing forms and rates, ~~$75~~ $110 per filing, which 
 16.11  may be paid on a quarterly basis in response to an invoice.  
 16.12  Billing and payment may be made electronically; 
 16.13     (8) for annual renewal of surplus lines insurer license, 
 16.14  $300~~;~~ 
 16.15     ~~(9) $250 filing fee for a large risk alternative rating~~ 
 16.16  ~~option plan that meets the $250,000 threshold requirement~~. 
 16.17     The commissioner shall adopt rules to define filings that 
 16.18  are subject to a fee. 
 16.19     Sec. 3.  Minnesota Statutes 2002, section 79.56, 
 16.20  subdivision 1, is amended to read: 
 16.21     Subdivision 1.  [PREFILING OF RATES.] (a) Each insurer 
 16.22  shall file with the commissioner a complete copy of its rates 
 16.23  and rating plan, and all changes and amendments thereto, and 
 16.24  such supporting data and information that the commissioner may 
 16.25  by rule require, at least 60 days prior to its effective date.  
 16.26  The commissioner shall advise an insurer within 30 days of the 
 16.27  filing if its submission is not accompanied with such supporting 
 16.28  data and information that the commissioner by rule may require.  
 16.29  The commissioner may extend the filing review period and 
 16.30  effective date for an additional 30 days if an insurer, after 
 16.31  having been advised of what supporting data and information is 
 16.32  necessary to complete its filing, does not provide such 
 16.33  information within 15 days of having been so notified.  If any 
 16.34  rate or rating plan filing or amendment thereto is not 
 16.35  disapproved by the commissioner within the filing review period, 
 16.36  the insurer may implement it.  For the period August 1, 1995, to 
 17.1   December 31, 1995, the filing shall be made at least 90 days 
 17.2   prior to the effective date and the department shall advise an 
 17.3   insurer within 60 days of such filing if the filing is 
 17.4   insufficient under this section.  
 17.5      (b) A rating plan or rates are not subject to the 
 17.6   requirements of paragraph (a), where the insurer files a 
 17.7   certification verifying that it will use the rating plan or 
 17.8   rates only to write a specific employer that generates $250,000 
 17.9   in annual written workers' compensation premiums before the 
 17.10  application of any large deductible rating plan.  The $250,000 
 17.11  threshold includes premiums generated in any state.  The 
 17.12  designation and certification shall be submitted in 
 17.13  substantially the following form: 
 17.14  Name and address of insurer:................................. 
 17.15  Name and address of insured employer:........................ 
 17.16  Effective date of filing:.................................... 
 17.17  I certify that the employer named above generates $250,000 or 
 17.18  more in annual written workers' compensation premiums before the 
 17.19  application of any large deductible rating plan.  This 
 17.20  certification authorizes the use of this rate or rating plan 
 17.21  only for the named employer. 
 17.22  Name of responsible officer:................................. 
 17.23  Title:....................................................... 
 17.24  Signature:................................................... 
 17.25     Sec. 4.  Minnesota Statutes 2002, section 79.56, 
 17.26  subdivision 3, is amended to read: 
 17.27     Subd. 3.  [PENALTIES.] ~~(a)~~ Any insurer using a rate or a 
 17.28  rating plan which has not been filed under subdivision 1 shall 
 17.29  be subject to a fine of up to $100 for each day the failure to 
 17.30  file continues.  The commissioner may, after a hearing on the 
 17.31  record, find that the failure is willful.  A willful failure to 
 17.32  meet filing requirements shall be punishable by a fine of up to 
 17.33  $500 for each day during which a willful failure continues.  
 17.34  These penalties shall be in addition to any other penalties 
 17.35  provided by law.  
 17.36     ~~(b) Notwithstanding this subdivision, an employer that~~ 
 18.1   ~~generates $250,000 in annual written workers' compensation~~ 
 18.2   ~~premium under the rates and rating plan of an insurer before the~~ 
 18.3   ~~application of any large deductible rating plans, may be written~~ 
 18.4   ~~by that insurer using rates or rating plans that are not subject~~ 
 18.5   ~~to disapproval but which have been filed.  For the purposes of~~ 
 18.6   ~~this paragraph, written workers' compensation premiums generated~~ 
 18.7   ~~from states other than Minnesota are included in calculating the~~ 
 18.8   ~~$250,000 threshold for large risk alternative rating option~~ 
 18.9   ~~plans.~~ 
 18.10     Sec. 5.  Minnesota Statutes 2002, section 216C.41, 
 18.11  subdivision 1, is amended to read: 
 18.12     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 18.13  subdivision apply to this section. 
 18.14     (b) "Qualified hydroelectric facility" means a 
 18.15  hydroelectric generating facility in this state that: 
 18.16     (1) is located at the site of a dam, if the dam was in 
 18.17  existence as of March 31, 1994; and 
 18.18     (2) begins generating electricity after July 1, 1994, or 
 18.19  generates electricity after substantial refurbishing of a 
 18.20  facility that begins after July 1, 2001. 
 18.21     (c) "Qualified wind energy conversion facility" means a 
 18.22  wind energy conversion system that: 
 18.23     (1) produces two megawatts or less of electricity as 
 18.24  measured by nameplate rating and begins generating electricity 
 18.25  after December 31, 1996, and before July 1, 1999; 
 18.26     (2) begins generating electricity after June 30, 1999, 
 18.27  produces two megawatts or less of electricity as measured by 
 18.28  nameplate rating, and is: 
 18.29     (i) located within one county and owned by ~~a natural person~~ 
 18.30  ~~who~~ an entity that is not prohibited from owning agricultural 
 18.31  land under section 500.24 that owns the land where the facility 
 18.32  is sited; 
 18.33     (ii) owned by a Minnesota small business as defined in 
 18.34  section 645.445; 
 18.35     (iii) owned by a nonprofit organization; or 
 18.36     (iv) owned by a tribal council if the facility is located 
 19.1   within the boundaries of the reservation; or 
 19.2      (3) begins generating electricity after June 30, 1999, 
 19.3   produces seven megawatts or less of electricity as measured by 
 19.4   nameplate rating, and: 
 19.5      (i) is owned by a cooperative organized under chapter 308A; 
 19.6   and 
 19.7      (ii) all shares and membership in the cooperative are held 
 19.8   by natural persons or estates, at least 51 percent of whom 
 19.9   reside in a county or contiguous to a county where the wind 
 19.10  energy production facilities of the cooperative are located. 
 19.11     (d) "Qualified on-farm biogas recovery facility" means an 
 19.12  anaerobic digester system that: 
 19.13     (1) is located at the site of an agricultural operation; 
 19.14     (2) is owned by a natural person who owns or rents the land 
 19.15  where the facility is located; and 
 19.16     (3) begins generating electricity after July 1, 2001.  
 19.17     (e) "Anaerobic digester system" means a system of 
 19.18  components that processes animal waste based on the absence of 
 19.19  oxygen and produces gas used to generate electricity. 
 19.20     Sec. 6.  Minnesota Statutes 2002, section 239.10, 
 19.21  subdivision 3, is amended to read: 
 19.22     Subd. 3.  [OTHER WEIGHTS AND MEASURES.] The director shall 
 19.23  inspect all weights and measures, except those specified in 
 19.24  subdivisions 1 and 2, annually, or as often as deemed possible 
 19.25  within budget and staff limitations, except that the director 
 19.26  shall not inspect liquid petroleum gas measuring equipment and 
 19.27  shall not charge a fee related to any such inspections. 
 19.28     Sec. 7.  Minnesota Statutes 2002, section 239.101, 
 19.29  subdivision 3, is amended to read: 
 19.30     Subd. 3.  [PETROLEUM INSPECTION FEE.] (a) An inspection fee 
 19.31  is imposed (1) on petroleum products when received by the first 
 19.32  licensed distributor, and (2) on petroleum products received and 
 19.33  held for sale or use by any person when the petroleum products 
 19.34  have not previously been received by a licensed distributor.  
 19.35  The petroleum inspection fee is ~~85 cents~~ $1 for every 1,000 
 19.36  gallons received.  The commissioner of revenue shall collect the 
 20.1   fee.  The revenue from the fee must first be applied to cover 
 20.2   the amounts ~~appropriated for petroleum product quality~~ 
 20.3   ~~inspection expenses, for the inspection and testing of petroleum~~ 
 20.4   ~~product measuring equipment, and for petroleum supply monitoring~~ 
 20.5   ~~under chapter~~ necessary to enforce the appropriate provisions of 
 20.6   chapters 216C, 239, 325D, and 325E.  These functions shall be 
 20.7   performed by departmental staff. 
 20.8      (b) The commissioner of revenue shall credit a person for 
 20.9   inspection fees previously paid in error or for any material 
 20.10  exported or sold for export from the state upon filing of a 
 20.11  report as prescribed by the commissioner of revenue. 
 20.12     (c) The commissioner of revenue may collect the inspection 
 20.13  fee along with any taxes due under chapter 296A. 
 20.14     Sec. 8.  Minnesota Statutes 2002, section 354D.02, 
 20.15  subdivision 2, is amended to read: 
 20.16     Subd. 2.  [ELIGIBILITY.] Eligible employees are: 
 20.17     (1) any supervisory or professional employee of the state 
 20.18  arts board; or 
 20.19     ~~(2) any supervisory or professional employee of the~~ 
 20.20  ~~Minnesota humanities commission; or~~ 
 20.21     ~~(3)~~ (2) any employee of the Minnesota historical society. 
 20.22     Sec. 9.  [SUSPENSION OF MORTGAGE CREDIT CERTIFICATE AID.] 
 20.23     Notwithstanding Minnesota Statutes, section 462C.15, during 
 20.24  the fiscal years 2004 and 2005, no applications or reports shall 
 20.25  be made pursuant to subdivision 1 of that section, no aid shall 
 20.26  be provided pursuant to subdivision 3 of that section, and no 
 20.27  money is appropriated pursuant to subdivision 4 of that section. 
 20.28     Sec. 10.  [AMBULANCE SERVICE LIABILITY INSURANCE STUDY.] 
 20.29     The commissioner of commerce shall study the availability 
 20.30  and cost to ambulance services of vehicle and malpractice 
 20.31  insurance and the factors influencing cost increases.  The 
 20.32  commissioner shall report the results of this study and 
 20.33  recommendations on means to ensure continued availability of 
 20.34  affordable insurance to the legislature by January 10, 2004. 
 20.35     Sec. 11.  [UNCLAIMED PROPERTY.] 
 20.36     The department shall, after July 1, 2003, and before June 
 21.1   30, 2005, sell the unclaimed property identified by the 
 21.2   legislative auditor in Finding 1 of its management letter dated 
 21.3   March 20, 2003.  To the degree this property has not been held 
 21.4   for the three-year period required by law prior to sale, that 
 21.5   three-year requirement is waived as to this property, and the 
 21.6   department shall sell the property. 
 21.7      Sec. 12.  [REPEALER.] 
 21.8      Minnesota Statutes 2002, section 138.91, is repealed. 
 21.9                              ARTICLE 3 
 21.10                  DEPARTMENT OF LABOR AND INDUSTRY  
 21.11                         POLICY PROVISIONS 
 21.12     Section 1.  Minnesota Statutes 2002, section 175.16, 
 21.13  subdivision 1, is amended to read: 
 21.14     Subdivision 1.  [ESTABLISHED.] The department of labor and 
 21.15  industry shall consist of the following divisions:  division of 
 21.16  workers' compensation, division of boiler inspection, division 
 21.17  of occupational safety and health, division of statistics, 
 21.18  division of steamfitting standards, ~~division of voluntary~~ 
 21.19  ~~apprenticeship,~~ division of labor standards and apprenticeship, 
 21.20  and such other divisions as the commissioner of the department 
 21.21  of labor and industry may deem necessary and establish.  Each 
 21.22  division of the department and persons in charge thereof shall 
 21.23  be subject to the supervision of the commissioner of the 
 21.24  department of labor and industry and, in addition to such duties 
 21.25  as are or may be imposed on them by statute, shall perform such 
 21.26  other duties as may be assigned to them by ~~said~~ the commissioner.
 21.27  Notwithstanding any other law to the contrary, the commissioner 
 21.28  is the administrator and supervisor of all of the department's 
 21.29  dispute resolution functions and personnel and may delegate 
 21.30  authority to compensation judges and others to make 
 21.31  determinations under sections 176.106, 176.238, and 176.239 and 
 21.32  to approve settlement of claims under section 176.521. 
 21.33     Sec. 2.  Minnesota Statutes 2002, section 177.26, 
 21.34  subdivision 1, is amended to read: 
 21.35     Subdivision 1.  [CREATION.] The division of labor standards 
 21.36  and apprenticeship in the department of labor and industry is 
 22.1   supervised and controlled by the commissioner of labor and 
 22.2   industry.  
 22.3      Sec. 3.  Minnesota Statutes 2002, section 177.26, 
 22.4   subdivision 2, is amended to read: 
 22.5      Subd. 2.  [POWERS AND DUTIES.] ~~The powers, duties, and~~ 
 22.6   ~~functions given to the department's division of women and~~ 
 22.7   ~~children by this chapter, and other applicable laws relating to~~ 
 22.8   ~~wages, hours, and working conditions, are transferred to the~~ 
 22.9   ~~division of labor standards.~~  The division of labor standards 
 22.10  and apprenticeship shall administer ~~sections 177.21 to 177.35~~ 
 22.11  ~~and chapter~~ chapters 177, 178, 181, 181A, and 184.  ~~The division~~ 
 22.12  ~~shall perform duties under sections 181.9435 and 181.9436.~~ 
 22.13     Sec. 4.  Minnesota Statutes 2002, section 178.01, is 
 22.14  amended to read: 
 22.15     178.01 [PURPOSES.] 
 22.16     The purposes of this chapter are:  to open to young people 
 22.17  regardless of race, sex, creed, color or national origin, the 
 22.18  opportunity to obtain training that will equip them for 
 22.19  profitable employment and citizenship; to establish as a means 
 22.20  to this end, a program of voluntary apprenticeship under 
 22.21  approved apprentice agreements providing facilities for their 
 22.22  training and guidance in the arts, skills, and crafts of 
 22.23  industry and trade, with concurrent, supplementary instruction 
 22.24  in related subjects; to promote employment opportunities under 
 22.25  conditions providing adequate training and reasonable earnings; 
 22.26  to relate the supply of skilled workers to employment demands; 
 22.27  to establish standards for apprentice training; to establish an 
 22.28  apprenticeship advisory council and apprenticeship committees to 
 22.29  assist in effectuating the purposes of this chapter; to provide 
 22.30  for a division of ~~voluntary~~ labor standards and apprenticeship 
 22.31  within the department of labor and industry; to provide for 
 22.32  reports to the legislature regarding the status of apprentice 
 22.33  training in the state; to establish a procedure for the 
 22.34  determination of apprentice agreement controversies; and to 
 22.35  accomplish related ends.  
 22.36     Sec. 5.  Minnesota Statutes 2002, section 178.03, 
 23.1   subdivision 1, is amended to read: 
 23.2      Subdivision 1.  [ESTABLISHMENT OF DIVISION.] There is 
 23.3   ~~hereby~~ established a division of ~~voluntary~~ labor standards and 
 23.4   apprenticeship in the department of labor and industry.  This 
 23.5   division shall be administered by a director, and be under the 
 23.6   supervision of the commissioner of labor and industry, 
 23.7   hereinafter referred to as the commissioner.  
 23.8      Sec. 6.  Minnesota Statutes 2002, section 178.03, 
 23.9   subdivision 2, is amended to read: 
 23.10     Subd. 2.  [DIRECTOR OF ~~VOLUNTARY~~ LABOR STANDARDS AND 
 23.11  APPRENTICESHIP.] The commissioner shall appoint a director of 
 23.12  the division of ~~voluntary~~ labor standards and apprenticeship, 
 23.13  hereinafter referred to as the director, and may appoint and 
 23.14  employ such clerical, technical, and professional help as is 
 23.15  necessary to accomplish the purposes of this chapter.  The 
 23.16  director and division staff shall be appointed and shall serve 
 23.17  in the classified service pursuant to civil service law and 
 23.18  rules.  
 23.19     Sec. 7.  [178.12] [REGISTRATION FEE.] 
 23.20     The apprenticeship registration account is established in 
 23.21  the special revenue fund of the state treasury.  An annual 
 23.22  registration fee will be charged to each sponsor for each 
 23.23  apprentice registered in the program.  The fee is established at 
 23.24  $50 per apprentice.  Subsequent adjustments to this fee will be 
 23.25  made pursuant to Minnesota Statutes, sections 16A.1283 and 
 23.26  16A.1285, subdivision 2.  The fees collected and any interest 
 23.27  earned are appropriated to the commissioner for purposes of this 
 23.28  chapter. 
 23.29     Sec. 8.  Minnesota Statutes 2002, section 181.9435, 
 23.30  subdivision 1, is amended to read: 
 23.31     Subdivision 1.  [INVESTIGATION.] The division of labor 
 23.32  standards and apprenticeship shall receive complaints of 
 23.33  employees against employers relating to sections 181.940 to 
 23.34  181.9436 and investigate informally whether an employer may be 
 23.35  in violation of sections 181.940 to 181.9436.  The division 
 23.36  shall attempt to resolve employee complaints by informing 
 24.1   employees and employers of the provisions of the law and 
 24.2   directing employers to comply with the law. 
 24.3      Sec. 9.  Minnesota Statutes 2002, section 181.9436, is 
 24.4   amended to read: 
 24.5      181.9436 [POSTING OF LAW.] 
 24.6      The division of labor standards and apprenticeship shall 
 24.7   develop, with the assistance of interested business and 
 24.8   community organizations, an educational poster stating 
 24.9   employees' rights under sections 181.940 to 181.9436.  The 
 24.10  department shall make the poster available, upon request, to 
 24.11  employers for posting on the employer's premises. 
 24.12     Sec. 10.  [BOILER INSPECTION AND LICENSE FEE SURCHARGE.] 
 24.13     The commissioner of labor and industry shall impose a 
 24.14  surcharge of $5 on each of the fees authorized under Minnesota 
 24.15  Statutes, section 183.545, subdivisions 2, 3, and 4, for the 
 24.16  period starting July 1, 2003, and ending June 30, 2005. 
 24.17     Sec. 11.  [REPEALER.] 
 24.18     Minnesota Statutes 2002, sections 177.26, subdivision 3; 
 24.19  and 178.11, are repealed.  
 24.20     Sec. 12.  [EFFECTIVE DATE.] 
 24.21     Section 10 is effective July 1, 2003. 
 24.22                             ARTICLE 4  
 24.23                  DEPARTMENT OF ECONOMIC SECURITY 
 24.24                         POLICY PROVISIONS 
 24.25     Section 1.  Minnesota Statutes 2002, section 248.10, is 
 24.26  amended to read: 
 24.27     248.10 [REHABILITATION COUNCIL FOR THE BLIND.] 
 24.28     (a) The commissioner shall establish a rehabilitation 
 24.29  council for the blind consistent with the federal Rehabilitation 
 24.30  Act of 1973, Public Law Number 93-112, as amended.  Council 
 24.31  members shall be compensated as provided in section 15.059, 
 24.32  subdivision 3.  The council shall advise the commissioner about 
 24.33  programs of the division of state services for the blind. 
 24.34     (b) Notwithstanding section 13D.01, the rehabilitation 
 24.35  council for the blind may conduct a meeting of its members by 
 24.36  telephone or other electronic means so long as the following 
 25.1   conditions are met: 
 25.2      (1) all members of the council participating in the 
 25.3   meeting, wherever their physical location, can hear one another 
 25.4   and can hear all discussion and testimony; 
 25.5      (2) members of the public present at the regular meeting 
 25.6   location of the council can hear all discussion and testimony 
 25.7   and all votes of members of the council; 
 25.8      (3) at least one member of the council is physically 
 25.9   present at the regular meeting location; and 
 25.10     (4) all votes are conducted by roll call, so each member's 
 25.11  vote on each issue can be identified and recorded. 
 25.12     (c) Each member of the council participating in a meeting 
 25.13  by telephone or other electronic means is considered present at 
 25.14  the meeting for purposes of determining a quorum and 
 25.15  participating in all proceedings. 
 25.16     (d) If telephone or another electronic means is used to 
 25.17  conduct a meeting, the council to the extent practical, shall 
 25.18  allow a person to monitor the meeting electronically from a 
 25.19  remote location.  The council may require the person making such 
 25.20  a connection to pay for documented marginal costs that the 
 25.21  council incurs as a result of the additional connection.  
 25.22     (e) If telephone or another electronic means is used to 
 25.23  conduct a regular, special, or emergency meeting, the council 
 25.24  shall provide notice of the regular meeting location, of the 
 25.25  fact that some members may participate by electronic means, and 
 25.26  of the provisions of paragraph (d).  The timing and method of 
 25.27  providing notice is governed by section 13D.04. 
 25.28     Sec. 2.  Minnesota Statutes 2002, section 268A.02, is 
 25.29  amended by adding a subdivision to read: 
 25.30     Subd. 3.  [MEETINGS.] (a) Notwithstanding section 13D.01, 
 25.31  the state rehabilitation council and state independent living 
 25.32  council may conduct meetings of their members by telephone or 
 25.33  other electronic means as long as the following conditions are 
 25.34  met: 
 25.35     (1) all members of the council participating in the 
 25.36  meeting, wherever their physical location, can hear one another 
 26.1   and can hear all discussion and testimony; 
 26.2      (2) members of the public present at the regular meeting 
 26.3   location of the council can hear all discussion and testimony 
 26.4   and all votes of members of the council; 
 26.5      (3) at least one member of the council is physically 
 26.6   present at the regular meeting location; and 
 26.7      (4) all votes are conducted by roll call, so each member's 
 26.8   vote on each issue can be identified and recorded. 
 26.9      (b) Each member of the council participating in a meeting 
 26.10  by telephone or other electronic means is considered present at 
 26.11  the meeting for purposes of determining a quorum and 
 26.12  participating in all proceedings. 
 26.13     (c) If telephone or another electronic means is used to 
 26.14  conduct a meeting, the council to the extent practical, shall 
 26.15  allow a person to monitor the meeting electronically from a 
 26.16  remote location.  The council may require the person making such 
 26.17  a connection to pay for documented marginal costs that the 
 26.18  council incurs as a result of the additional connection.  
 26.19     (d) If telephone or another electronic means is used to 
 26.20  conduct a regular, special, or emergency meeting, the council 
 26.21  shall provide notice of the regular meeting location, of the 
 26.22  fact that some members may participate by electronic means, and 
 26.23  of the provisions of paragraph (c).  The timing and method of 
 26.24  providing notice is governed by section 13D.04. 
 26.25     Sec. 3.  [PLAN TO REDUCE NUMBER OF WORKFORCE SERVICE 
 26.26  AREAS.] 
 26.27     The governor's workforce development council shall, in 
 26.28  consultation with representatives of the local workforce 
 26.29  councils and local elected officials, study the current 
 26.30  configuration of workforce service areas in Minnesota and 
 26.31  whether the efficiency or quality of service delivery could be 
 26.32  improved by changing the boundaries of workforce service areas 
 26.33  or reducing the number of areas.  The council shall report to 
 26.34  the legislature by January 1, 2004. 
 26.35                             ARTICLE 5
 26.36                             PETROFUND
 27.1      Section 1.  Minnesota Statutes 2002, section 115C.02, 
 27.2   subdivision 14, is amended to read: 
 27.3      Subd. 14.  [TANK.] "Tank" means any one or a combination of 
 27.4   containers, vessels, and enclosures, including structures and 
 27.5   appurtenances connected to them, that is, or has been, used to 
 27.6   contain ~~or~~, dispense, store, or transport petroleum.  
 27.7      "Tank" does not include: 
 27.8      ~~(1) a mobile storage tank used to transport petroleum from~~ 
 27.9   ~~one location to another, except a mobile storage tank with a~~ 
 27.10  ~~capacity of 500 gallons or less used only to transport home~~ 
 27.11  ~~heating fuel on private property; or~~ 
 27.12     ~~(2)~~ pipeline facilities, including gathering lines, 
 27.13  regulated under the Natural Gas Pipeline Safety Act of 1968, 
 27.14  United States Code, title 49, chapter 24, or the Hazardous 
 27.15  Liquid Pipeline Safety Act of 1979, United States Code, title 
 27.16  49, chapter 29. 
 27.17     Sec. 2.  Minnesota Statutes 2002, section 115C.08, 
 27.18  subdivision 4, is amended to read: 
 27.19     Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
 27.20  spent: 
 27.21     (1) to administer the petroleum tank release cleanup 
 27.22  program established in this chapter; 
 27.23     (2) for agency administrative costs under sections 116.46 
 27.24  to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
 27.25  action taken by the agency under section 115C.03, including 
 27.26  investigations; 
 27.27     (3) for costs of recovering expenses of corrective actions 
 27.28  under section 115C.04; 
 27.29     (4) for training, certification, and rulemaking under 
 27.30  sections 116.46 to 116.50; 
 27.31     (5) for agency administrative costs of enforcing rules 
 27.32  governing the construction, installation, operation, and closure 
 27.33  of aboveground and underground petroleum storage tanks; 
 27.34     (6) for reimbursement of the environmental response, 
 27.35  compensation, and compliance account under subdivision 5 and 
 27.36  section 115B.26, subdivision 4; 
 28.1      (7) for administrative and staff costs as set by the board 
 28.2   to administer the petroleum tank release program established in 
 28.3   this chapter; 
 28.4      (8) for corrective action performance audits under section 
 28.5   115C.093; and 
 28.6      (9) for contamination cleanup grants, as provided in 
 28.7   paragraph (c); and 
 28.8      (10) to assess and remove abandoned underground storage 
 28.9   tanks under section 115C.094 and, if a release is discovered, to 
 28.10  pay for the specific consultant and contractor services costs 
 28.11  necessary to complete the tank removal project, including, but 
 28.12  not limited to, excavation soil sampling, groundwater sampling, 
 28.13  soil disposal, and completion of an excavation report. 
 28.14     (b) Except as provided in paragraph (c), money in the fund 
 28.15  is appropriated to the board to make reimbursements or payments 
 28.16  under this section. 
 28.17     (c) $6,200,000 is annually appropriated from the fund to 
 28.18  the commissioner of trade and economic development for 
 28.19  contamination cleanup grants under section 116J.554.  Of this 
 28.20  amount, the commissioner may spend up to $120,000 annually for 
 28.21  administration of the contamination cleanup grant program.  The 
 28.22  appropriation does not cancel and is available until expended.  
 28.23  The appropriation shall not be withdrawn from the fund nor the 
 28.24  fund balance reduced until the funds are requested by the 
 28.25  commissioner of trade and economic development.  The 
 28.26  commissioner shall schedule requests for withdrawals from the 
 28.27  fund to minimize the necessity to impose the fee authorized by 
 28.28  subdivision 2.  Unless otherwise provided, the appropriation in 
 28.29  this paragraph may be used for: 
 28.30     (1) project costs at a qualifying site if a portion of the 
 28.31  cleanup costs are attributable to petroleum contamination; and 
 28.32     (2) the costs of performing contamination investigation if 
 28.33  there is a reasonable basis to suspect the contamination is 
 28.34  attributable to petroleum. 
 28.35     Sec. 3.  Minnesota Statutes 2002, section 115C.09, 
 28.36  subdivision 3, is amended to read: 
 29.1      Subd. 3.  [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) 
 29.2   The board shall reimburse an eligible applicant from the fund 
 29.3   for 90 percent of the total reimbursable costs incurred at the 
 29.4   site, except that the board may reimburse an eligible applicant 
 29.5   from the fund for greater than 90 percent of the total 
 29.6   reimbursable costs, if the applicant previously qualified for a 
 29.7   higher reimbursement rate.  For costs associated with a release 
 29.8   from a tank in transport, the board may reimburse 90 percent of 
 29.9   costs over $10,000, with the maximum reimbursement not to exceed 
 29.10  $100,000.  
 29.11     Not more than $1,000,000 may be reimbursed for costs 
 29.12  associated with a single release, regardless of the number of 
 29.13  persons eligible for reimbursement, and not more than $2,000,000 
 29.14  may be reimbursed for costs associated with a single tank 
 29.15  facility. 
 29.16     (b) A reimbursement may not be made from the fund under 
 29.17  this chapter until the board has determined that the costs for 
 29.18  which reimbursement is requested were actually incurred and were 
 29.19  reasonable. 
 29.20     (c) When an applicant has obtained responsible competitive 
 29.21  bids or proposals according to rules promulgated under this 
 29.22  chapter prior to June 1, 1995, the eligible costs for the tasks, 
 29.23  procedures, services, materials, equipment, and tests of the low 
 29.24  bid or proposal are presumed to be reasonable by the board, 
 29.25  unless the costs of the low bid or proposal are substantially in 
 29.26  excess of the average costs charged for similar tasks, 
 29.27  procedures, services, materials, equipment, and tests in the 
 29.28  same geographical area during the same time period. 
 29.29     (d) When an applicant has obtained a minimum of two 
 29.30  responsible competitive bids or proposals on forms prescribed by 
 29.31  the board and where the rules promulgated under this chapter 
 29.32  after June 1, 1995, designate maximum costs for specific tasks, 
 29.33  procedures, services, materials, equipment and tests, the 
 29.34  eligible costs of the low bid or proposal are deemed reasonable 
 29.35  if the costs are at or below the maximums set forth in the rules.
 29.36     (e) Costs incurred for change orders executed as prescribed 
 30.1   in rules promulgated under this chapter after June 1, 1995, are 
 30.2   presumed reasonable if the costs are at or below the maximums 
 30.3   set forth in the rules, unless the costs in the change order are 
 30.4   above those in the original bid or proposal or are 
 30.5   unsubstantiated and inconsistent with the process and standards 
 30.6   required by the rules. 
 30.7      (f) A reimbursement may not be made from the fund in 
 30.8   response to either an initial or supplemental application for 
 30.9   costs incurred after June 4, 1987, that are payable under an 
 30.10  applicable insurance policy, except that if the board finds that 
 30.11  the applicant has made reasonable efforts to collect from an 
 30.12  insurer and failed, the board shall reimburse the applicant. 
 30.13     (g) If the board reimburses an applicant for costs for 
 30.14  which the applicant has insurance coverage, the board is 
 30.15  subrogated to the rights of the applicant with respect to that 
 30.16  insurance coverage, to the extent of the reimbursement by the 
 30.17  board.  The board may request the attorney general to bring an 
 30.18  action in district court against the insurer to enforce the 
 30.19  board's subrogation rights.  Acceptance by an applicant of 
 30.20  reimbursement constitutes an assignment by the applicant to the 
 30.21  board of any rights of the applicant with respect to any 
 30.22  insurance coverage applicable to the costs that are reimbursed.  
 30.23  Notwithstanding this paragraph, the board may instead request a 
 30.24  return of the reimbursement under subdivision 5 and may employ 
 30.25  against the applicant the remedies provided in that subdivision, 
 30.26  except where the board has knowingly provided reimbursement 
 30.27  because the applicant was denied coverage by the insurer. 
 30.28     (h) Money in the fund is appropriated to the board to make 
 30.29  reimbursements under this chapter.  A reimbursement to a state 
 30.30  agency must be credited to the appropriation account or accounts 
 30.31  from which the reimbursed costs were paid. 
 30.32     (i) The board may reduce the amount of reimbursement to be 
 30.33  made under this chapter if it finds that the applicant has not 
 30.34  complied with a provision of this chapter, a rule or order 
 30.35  issued under this chapter, or one or more of the following 
 30.36  requirements: 
 31.1      (1) the agency was given notice of the release as required 
 31.2   by section 115.061; 
 31.3      (2) the applicant, to the extent possible, fully cooperated 
 31.4   with the agency in responding to the release; 
 31.5      (3) the state rules applicable after December 22, 1993, to 
 31.6   operating an underground storage tank and appurtenances without 
 31.7   leak detection; 
 31.8      (4) the state rules applicable after December 22, 1998, to 
 31.9   operating an underground storage tank and appurtenances without 
 31.10  corrosion protection or spill and overfill protection; and 
 31.11     (5) the state rule applicable after November 1, 1998, to 
 31.12  operating an aboveground tank without a dike or other structure 
 31.13  that would contain a spill at the aboveground tank site. 
 31.14     (j) The reimbursement may be reduced as much as 100 percent 
 31.15  for failure by the applicant to comply with the requirements in 
 31.16  paragraph (i), clauses (1) to (5).  In determining the amount of 
 31.17  the reimbursement reduction, the board shall consider: 
 31.18     (1) the reasonable determination by the agency that the 
 31.19  noncompliance poses a threat to the environment; 
 31.20     (2) whether the noncompliance was negligent, knowing, or 
 31.21  willful; 
 31.22     (3) the deterrent effect of the award reduction on other 
 31.23  tank owners and operators; 
 31.24     (4) the amount of reimbursement reduction recommended by 
 31.25  the commissioner; and 
 31.26     (5) the documentation of noncompliance provided by the 
 31.27  commissioner. 
 31.28     (k) An applicant may ~~assign the right to receive~~ 
 31.29  ~~reimbursement to~~ request that the board issue a multiparty check 
 31.30  that includes each lender who advanced funds to pay the costs of 
 31.31  the corrective action or to each contractor or consultant who 
 31.32  provided corrective action services.  ~~An assignment~~ This request 
 31.33  must be made by filing with the board a document, in a form 
 31.34  prescribed by the board, indicating the identity of the 
 31.35  applicant, the identity of the ~~assignee~~ lender, contractor, or 
 31.36  consultant, the dollar amount ~~of the assignment~~, and the 
 32.1   location of the corrective action.  ~~An assignment signed by the~~ 
 32.2   ~~applicant is valid unless terminated by filing a termination~~ 
 32.3   ~~with the board, in a form prescribed by the board, which must~~ 
 32.4   ~~include the written concurrence of the assignee.  The board~~ 
 32.5   ~~shall maintain an index of assignments filed under this~~ 
 32.6   ~~paragraph.  The board shall pay the reimbursement to the~~ 
 32.7   ~~applicant and to one or more assignees by a multiparty~~ 
 32.8   ~~check.~~  The applicant must submit a request for the issuance of 
 32.9   a multiparty check for each application submitted to the board.  
 32.10  Payment under this paragraph does not constitute the assignment 
 32.11  of the applicant's right to reimbursement to the consultant, 
 32.12  contractor, or lender.  The board has no liability to an 
 32.13  applicant for a payment ~~under an assignment meeting~~ issued as a 
 32.14  multiparty check that meets the requirements of this paragraph. 
 32.15     (l) Notwithstanding other law to the contrary in this 
 32.16  section, the board shall reimburse a state agency from the fund 
 32.17  for 100 percent of its total reimbursable costs at a site. 
 32.18     Sec. 4.  Minnesota Statutes 2002, section 115C.09, is 
 32.19  amended by adding a subdivision to read: 
 32.20     Subd. 3i.  [REIMBURSEMENT; NATURAL DISASTER AREA.] (a) As 
 32.21  used in this subdivision, "natural disaster area" means a 
 32.22  geographical area that has been declared a disaster by the 
 32.23  governor and President of the United States. 
 32.24     (b) Notwithstanding subdivision 3, paragraph (a), and 
 32.25  Minnesota Rules, chapter 2890, with the exception of Minnesota 
 32.26  Rules, parts 2890.0010 to 2890.0065, and 2890.0090 to 2890.0130, 
 32.27  the board may reimburse: 
 32.28     (1) up to 50 percent of an applicant' pre-natural-disaster 
 32.29  estimated building market value as recorded by the county 
 32.30  assessor; or 
 32.31     (2) if the applicant conveys title of the real estate to 
 32.32  local or state government, up to 50 percent of the 
 32.33  pre-natural-disaster estimated total market value, not to exceed 
 32.34  one acre, as recorded by the county assessor. 
 32.35     (c) Paragraph (b) applies only if the applicant documents 
 32.36  that: 
 33.1      (1) the natural disaster area has been declared eligible 
 33.2   for state or federal emergency aid; 
 33.3      (2) the building is declared uninhabitable by the 
 33.4   commissioner because of damage caused by the release of 
 33.5   petroleum from a petroleum storage tank; and 
 33.6      (3) the applicant has submitted a claim under any 
 33.7   applicable insurance policies and has been denied benefits under 
 33.8   those policies. 
 33.9      (d) In determining the percentage for reimbursement, the 
 33.10  board shall consider the applicant's eligibility to receive 
 33.11  other state or federal financial assistance and determine a 
 33.12  lesser reimbursement rate to the extent that the applicant is 
 33.13  eligible to receive financial assistance that exceeds 50 percent 
 33.14  of the applicant's pre-natural-disaster estimated building 
 33.15  market value or total market value. 
 33.16     Sec. 5.  [115C.094] [ABANDONED UNDERGROUND STORAGE TANKS.] 
 33.17     (a) As used in this section, an abandoned underground 
 33.18  petroleum storage tank means an underground petroleum storage 
 33.19  tank that was: 
 33.20     (1) taken out of service prior to December 22, 1988; or 
 33.21     (2) taken out of service on or after December 22, 1988, if 
 33.22  the current property owner did not know of the existence of the 
 33.23  underground petroleum storage tank and cannot reasonably be 
 33.24  expected to have known of the tank's existence. 
 33.25     (b) The board may contract for: 
 33.26     (1) a statewide assessment in order to determine the 
 33.27  quantity, location, cost, and feasibility of removing abandoned 
 33.28  underground petroleum storage tanks; 
 33.29     (2) the removal of an abandoned underground petroleum 
 33.30  storage tank; and 
 33.31     (3) the removal and disposal of petroleum-contaminated soil 
 33.32  if the removal is required by the commissioner at the time of 
 33.33  tank removal. 
 33.34     (c) Before the board may contract for removal of an 
 33.35  abandoned petroleum storage tank, the tank owner must provide 
 33.36  the board with written access to the property and release the 
 34.1   board from any potential liability for the work performed. 
 34.2      (d) Money in the fund is appropriated to the board for the 
 34.3   purposes of this section. 
 34.4      Sec. 6.  Minnesota Statutes 2002, section 115C.11, 
 34.5   subdivision 1, is amended to read: 
 34.6      Subdivision 1.  [REGISTRATION.] (a) All consultants and 
 34.7   contractors who perform corrective action services must register 
 34.8   with the board.  In order to register, consultants must meet and 
 34.9   demonstrate compliance with the following criteria: 
 34.10     (1) provide a signed statement to the board verifying 
 34.11  agreement to abide by this chapter and the rules adopted under 
 34.12  it and to include a signed statement with each claim that all 
 34.13  costs claimed by the consultant are a true and accurate account 
 34.14  of services performed; 
 34.15     (2) provide a signed statement that the consultant shall 
 34.16  make available for inspection any records requested by the board 
 34.17  for field or financial audits under the scope of this chapter; 
 34.18     (3) certify knowledge of the requirements of this chapter 
 34.19  and the rules adopted under it; 
 34.20     (4) obtain and maintain professional liability coverage, 
 34.21  including pollution impairment liability; and 
 34.22     (5) agree to submit to the board a certificate or 
 34.23  certificates verifying the existence of the required insurance 
 34.24  coverage. 
 34.25     (b) The board must maintain a list of all registered 
 34.26  consultants and a list of all registered contractors. 
 34.27     (c) All corrective action services must be performed by 
 34.28  registered consultants and contractors. 
 34.29     (d) Reimbursement for corrective action services performed 
 34.30  by an unregistered consultant or contractor is subject to 
 34.31  reduction under section 115C.09, subdivision 3, paragraph (i). 
 34.32     (e) Corrective action services performed by a consultant or 
 34.33  contractor prior to being removed from the registration list may 
 34.34  be reimbursed without reduction by the board. 
 34.35     (f) If the information in an application for registration 
 34.36  becomes inaccurate or incomplete in any material respect, the 
 35.1   registered consultant or contractor must promptly file a 
 35.2   corrected application with the board. 
 35.3      (g) Registration is effective 30 days after a complete 
 35.4   application is received by the board.  The board may reimburse 
 35.5   without reduction the cost of work performed by an unregistered 
 35.6   contractor if the contractor performed the work within 60 days 
 35.7   of the effective date of registration. 
 35.8      (h) Registration for consultants under this section remains 
 35.9   in force until the expiration date of the professional liability 
 35.10  coverage, including pollution impairment liability, required 
 35.11  under paragraph (a), clause (4), or until voluntarily terminated 
 35.12  by the registrant, or until suspended or revoked by the 
 35.13  commissioner of commerce.  Registration for contractors under 
 35.14  this section expires each year on the anniversary of the 
 35.15  effective date of the contractor's most recent registration and 
 35.16  must be renewed on or before expiration.  Prior to its annual 
 35.17  expiration, a registration remains in force until voluntarily 
 35.18  terminated by the registrant, or until suspended or revoked by 
 35.19  the commissioner of commerce.  All registrants must comply with 
 35.20  registration criteria under this section. 
 35.21     (i) The board may deny a consultant or contractor 
 35.22  registration or request for renewal under this section if the 
 35.23  consultant or contractor: 
 35.24     (1) does not intend to or is not in good faith carrying on 
 35.25  the business of an environmental consultant or contractor; 
 35.26     (2) has filed an application for registration that is 
 35.27  incomplete in any material respect or contains any statement 
 35.28  which, in light of the circumstances under which it is made, 
 35.29  contains any misrepresentation, or is false, misleading, or 
 35.30  fraudulent; 
 35.31     (3) has engaged in any fraudulent, coercive, deceptive, or 
 35.32  dishonest act or practice whether or not such act or practice 
 35.33  involves the business of environmental consulting or 
 35.34  contracting; 
 35.35     (4) has forged another's name to any document whether or 
 35.36  not the document relates to a document approved by the board; 
 36.1      (5) has plead guilty, with or without explicitly admitting 
 36.2   guilt; plead nolo contendere; or been convicted of a felony, 
 36.3   gross misdemeanor, or misdemeanor involving moral turpitude, 
 36.4   including, but not limited to, assault, harassment, or similar 
 36.5   conduct; 
 36.6      (6) has been subject to disciplinary action in another 
 36.7   state or jurisdiction; or 
 36.8      (7) has not paid subcontractors hired by the consultant or 
 36.9   contractor after they have been paid in full by the applicant. 
 36.10     Sec. 7.  Minnesota Statutes 2002, section 115C.13, is 
 36.11  amended to read: 
 36.12     115C.13 [REPEALER.] 
 36.13     Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 
 36.14  115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 
 36.15  115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112, 
 36.16  115C.113, 115C.12, and 115C.13, are repealed effective June 30, 
 36.17  ~~2005~~ 2007. 
 36.18     Sec. 8.  [STATE TANK REMOVAL; INVENTORY AND REIMBURSEMENT.] 
 36.19     The petroleum tank release compensation board shall 
 36.20  inventory the sites for which a state agency has incurred 
 36.21  reimbursable costs under Minnesota Statutes 2002, section 
 36.22  115C.09, subdivision 1, from 1990 to the present.  To the extent 
 36.23  these costs were not reimbursed or expended from the petroleum 
 36.24  tank fund or state general obligation bond funds, the board 
 36.25  shall reimburse the agency for 100 percent of its total 
 36.26  reimbursable costs, by transferring funds from the petroleum 
 36.27  tank fund to the general fund or other state fund from which the 
 36.28  agency expended funds for this purpose. 
 36.29                             ARTICLE 6
 36.30                  DEPARTMENT OF TRADE AND ECONOMIC
 36.31                   DEVELOPMENT POLICY PROVISIONS
 36.32     Section 1.  Minnesota Statutes 2002, section 17.101, 
 36.33  subdivision 1, is amended to read: 
 36.34     Subdivision 1.  [DEPARTMENTAL DUTIES.] For the purposes of 
 36.35  expanding, improving, and developing production and marketing of 
 36.36  products of Minnesota agriculture, the commissioner shall 
 37.1   encourage and promote the production and marketing of these 
 37.2   products by means of:  
 37.3      (a) advertising Minnesota agricultural products; 
 37.4      (b) assisting state agricultural commodity organizations; 
 37.5      (c) developing methods to increase processing and marketing 
 37.6   of agricultural commodities including commodities not being 
 37.7   produced in Minnesota on a commercial scale, but which may have 
 37.8   economic potential in national and international markets; 
 37.9      (d) investigating and identifying new marketing technology 
 37.10  and methods to enhance the competitive position of Minnesota 
 37.11  agricultural products; 
 37.12     (e) evaluating livestock marketing opportunities; 
 37.13     (f) assessing and developing national and international 
 37.14  markets for Minnesota agricultural products; 
 37.15     (g) studying the conversion of raw agricultural products to 
 37.16  manufactured products including ethanol; 
 37.17     (h) hosting the visits of foreign trade teams to Minnesota 
 37.18  and defraying the teams' expenses; 
 37.19     (i) assisting Minnesota agricultural businesses desiring to 
 37.20  sell their products; 
 37.21     (j) conducting research to eliminate or reduce specific 
 37.22  production or technological barriers to market development and 
 37.23  trade; and 
 37.24     (k) other activities the commissioner deems appropriate to 
 37.25  promote Minnesota agricultural products, provided that the 
 37.26  activities do not duplicate programs or services provided by the 
 37.27  Minnesota trade division ~~or the Minnesota world trade center~~. 
 37.28     Sec. 2.  Minnesota Statutes 2002, section 41A.036, 
 37.29  subdivision 2, is amended to read: 
 37.30     Subd. 2.  [SMALL BUSINESS DEVELOPMENT LOANS; PREFERENCES.] 
 37.31  The following eligible small businesses have preference among 
 37.32  all business applicants for small business development loans: 
 37.33     (1) businesses located in rural areas of the state that are 
 37.34  experiencing the most severe unemployment rates in the state; 
 37.35     (2) businesses that are likely to expand and provide 
 37.36  additional permanent employment in rural areas of the state, or 
 38.1   enhance the quality of existing jobs in those areas; 
 38.2      (3) businesses located in border communities that 
 38.3   experience a competitive disadvantage due to location; 
 38.4      (4) businesses that have been unable to obtain traditional 
 38.5   financial assistance due to a disadvantageous location, minority 
 38.6   ownership, or other factors rather than due to the business 
 38.7   having been considered a poor financial risk; 
 38.8      (5) businesses that utilize state resources and reduce 
 38.9   state dependence on outside resources, and that produce products 
 38.10  or services consistent with the long-term social and economic 
 38.11  needs of the state; and 
 38.12     (6) businesses located in designated enterprise zones, as 
 38.13  described in section 469.168. 
 38.14     Sec. 3.  Minnesota Statutes 2002, section 115C.08, 
 38.15  subdivision 4, is amended to read: 
 38.16     Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
 38.17  spent: 
 38.18     (1) to administer the petroleum tank release cleanup 
 38.19  program established in this chapter; 
 38.20     (2) for agency administrative costs under sections 116.46 
 38.21  to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
 38.22  action taken by the agency under section 115C.03, including 
 38.23  investigations; 
 38.24     (3) for costs of recovering expenses of corrective actions 
 38.25  under section 115C.04; 
 38.26     (4) for training, certification, and rulemaking under 
 38.27  sections 116.46 to 116.50; 
 38.28     (5) for agency administrative costs of enforcing rules 
 38.29  governing the construction, installation, operation, and closure 
 38.30  of aboveground and underground petroleum storage tanks; 
 38.31     (6) for reimbursement of the environmental response, 
 38.32  compensation, and compliance account under subdivision 5 and 
 38.33  section 115B.26, subdivision 4; 
 38.34     (7) for administrative and staff costs as set by the board 
 38.35  to administer the petroleum tank release program established in 
 38.36  this chapter; 
 39.1      (8) for corrective action performance audits under section 
 39.2   115C.093; and 
 39.3      (9) for contamination cleanup grants, as provided in 
 39.4   paragraph (c). 
 39.5      (b) Except as provided in paragraph (c), money in the fund 
 39.6   is appropriated to the board to make reimbursements or payments 
 39.7   under this section. 
 39.8      (c) $6,200,000 is annually appropriated from the fund to 
 39.9   the commissioner of trade and economic development for 
 39.10  contamination cleanup grants under section 116J.554.  Of this 
 39.11  amount, the commissioner may spend up to ~~$120,000~~ $180,000 
 39.12  annually for administration of the contamination cleanup grant 
 39.13  program.  The appropriation does not cancel and is available 
 39.14  until expended.  The appropriation shall not be withdrawn from 
 39.15  the fund nor the fund balance reduced until the funds are 
 39.16  requested by the commissioner of trade and economic 
 39.17  development.  The commissioner shall schedule requests for 
 39.18  withdrawals from the fund to minimize the necessity to impose 
 39.19  the fee authorized by subdivision 2.  Unless otherwise provided, 
 39.20  the appropriation in this paragraph may be used for: 
 39.21     (1) project costs at a qualifying site if a portion of the 
 39.22  cleanup costs are attributable to petroleum contamination; and 
 39.23     (2) the costs of performing contamination investigation if 
 39.24  there is a reasonable basis to suspect the contamination is 
 39.25  attributable to petroleum. 
 39.26     <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2003. 
 39.27     Sec. 4.  Minnesota Statutes 2002, section 116J.011, is 
 39.28  amended to read: 
 39.29     116J.011 [MISSION.] 
 39.30     The mission of the department of trade and economic 
 39.31  development is to employ all of the available state government 
 39.32  resources to facilitate an economic environment that produces 
 39.33  net new job growth in excess of the national average, to improve 
 39.34  the quality of existing jobs, and to increase nonresident and 
 39.35  resident tourism revenues.  It is part of the department's 
 39.36  mission that within the department's resources the commissioner 
 40.1   shall endeavor to: 
 40.2      (1) prevent the waste or unnecessary spending of public 
 40.3   money; 
 40.4      (2) use innovative fiscal and human resource practices to 
 40.5   manage the state's resources and operate the department as 
 40.6   efficiently as possible; 
 40.7      (3) coordinate the department's activities wherever 
 40.8   appropriate with the activities of other governmental agencies; 
 40.9      (4) use technology where appropriate to increase agency 
 40.10  productivity, improve customer service, increase public access 
 40.11  to information about government, and increase public 
 40.12  participation in the business of government; 
 40.13     (5) utilize constructive and cooperative labor-management 
 40.14  practices to the extent otherwise required by chapters 43A and 
 40.15  179A; 
 40.16     (6) report to the legislature on the performance of agency 
 40.17  operations and the accomplishment of agency goals in the 
 40.18  agency's biennial budget according to section 16A.10, 
 40.19  subdivision 1; and 
 40.20     (7) recommend to the legislature appropriate changes in law 
 40.21  necessary to carry out the mission and improve the performance 
 40.22  of the department. 
 40.23     Sec. 5.  Minnesota Statutes 2002, section 116J.411, is 
 40.24  amended by adding a subdivision to read: 
 40.25     Subd. 2a.  [JOB ENHANCEMENT.] "Job enhancement" means an 
 40.26  increase in wages; and 
 40.27     (1) an increase in the responsibility or skill level of job 
 40.28  duties; or 
 40.29     (2) the provision of additional training or education for 
 40.30  employees in existing jobs. 
 40.31     Sec. 6.  Minnesota Statutes 2002, section 116J.415, 
 40.32  subdivision 1, is amended to read: 
 40.33     Subdivision 1.  [ORGANIZATION.] The commissioner shall make 
 40.34  challenge grants to regional organizations, for the purpose of 
 40.35  providing financial assistance to encourage private investment, 
 40.36  to provide jobs or job enhancement for low-income persons, and 
 41.1   to promote economic development in the rural areas of the state. 
 41.2      Sec. 7.  Minnesota Statutes 2002, section 116J.415, 
 41.3   subdivision 2, is amended to read: 
 41.4      Subd. 2.  [FUNDING REGIONS.] The commissioner shall divide 
 41.5   the state outside of the metropolitan area as defined in section 
 41.6   473.121, subdivision 2, into six regions.  A region's boundaries 
 41.7   must be coterminous with the boundaries of one or more of the 
 41.8   development regions established under section 462.385.  The 
 41.9   commissioner shall ~~designate up to $1,000,000 for each region,~~ 
 41.10  ~~to be awarded over a period of three years~~ allocate all funds 
 41.11  remaining in each regional subaccount of the rural 
 41.12  rehabilitation account, as established under section 166J.955, 
 41.13  to each respective regional organization.  The money designated 
 41.14  to each region must be used for ~~revolving loans~~ assistance 
 41.15  authorized in this section.  
 41.16     Sec. 8.  Minnesota Statutes 2002, section 116J.415, 
 41.17  subdivision 4, is amended to read: 
 41.18     Subd. 4.  [REVOLVING ~~LOAN~~ FUND.] A regional organization 
 41.19  shall establish a commissioner certified revolving ~~loan~~ fund ~~to~~ 
 41.20  ~~provide loans to new and expanding businesses in rural Minnesota~~ 
 41.21  to promote economic development in rural Minnesota.  ~~Eligible~~ 
 41.22  ~~business enterprises include technologically innovative~~ 
 41.23  ~~industries, value-added manufacturing, agriprocessing,~~ 
 41.24  ~~information industries, and agricultural marketing.  Loan~~ 
 41.25  ~~applications given preliminary approval by the organization must~~ 
 41.26  ~~be forwarded to the commissioner for final approval.  The amount~~ 
 41.27  ~~of state money allocated for each loan is appropriated from the~~ 
 41.28  ~~rural rehabilitation account established in section 116J.955 to~~ 
 41.29  ~~the organization's regional revolving loan fund when the~~ 
 41.30  ~~commissioner gives final approval for each loan.  The amount of~~ 
 41.31  ~~money appropriated from the rural rehabilitation account may not~~ 
 41.32  ~~exceed 50 percent for each loan.  The amount of nonpublic money~~ 
 41.33  ~~must equal at least 50 percent for each loan.~~  Funds may be used 
 41.34  to provide loans, loan guarantees, interest buy-downs, and other 
 41.35  forms of participation with private sources of financing, 
 41.36  provided that the financial assistance must be for a principal 
 42.1   amount that does not exceed one-half of the cost of the project 
 42.2   for which financing is sought. 
 42.3      Sec. 9.  Minnesota Statutes 2002, section 116J.415, 
 42.4   subdivision 5, is amended to read: 
 42.5      Subd. 5.  [~~LOAN~~ ASSISTANCE CRITERIA.] ~~The following~~ 
 42.6   ~~criteria apply to loans made under~~ Projects supported through 
 42.7   the challenge grant program must be used principally to benefit 
 42.8   low-income persons by:  
 42.9      ~~(1) loans must be made to businesses that are not likely to~~ 
 42.10  ~~undertake a project for which loans are sought without~~ 
 42.11  ~~assistance from the challenge grant program;~~ 
 42.12     ~~(2) a loan must be used for a project designed principally~~ 
 42.13  ~~to benefit low-income persons through the creation of job or~~ 
 42.14  ~~business opportunities for them;~~ 
 42.15     ~~(3) the minimum loan is $5,000 and the maximum is $200,000;~~ 
 42.16     ~~(4) a loan may not exceed 50 percent of the total cost of~~ 
 42.17  ~~an individual project;~~ 
 42.18     ~~(5) a loan may not be used for a retail development~~ 
 42.19  ~~project; and~~ 
 42.20     ~~(6) a business applying for a loan, except a~~ 
 42.21  ~~microenterprise loan under subdivision 6, must be sponsored by a~~ 
 42.22  ~~resolution of the governing body of the local governmental unit~~ 
 42.23  ~~within whose jurisdiction the project is located.~~ 
 42.24     (1) creating new jobs or retaining existing jobs; 
 42.25     (2) increasing the local tax base; 
 42.26     (3) demonstrating that investment of public dollars induces 
 42.27  private funds; 
 42.28     (4) providing higher wage levels to the community or adding 
 42.29  value to current workforce skills; 
 42.30     (5) retaining existing business; or 
 42.31     (6) attracting out-of-state business. 
 42.32     Sec. 10.  Minnesota Statutes 2002, section 116J.415, 
 42.33  subdivision 7, is amended to read: 
 42.34     Subd. 7.  [REVOLVING FUND ADMINISTRATION.] ~~(a) The~~ 
 42.35  ~~commissioner shall establish a minimum interest rate for loans~~ 
 42.36  ~~to ensure that necessary management costs are covered.~~  
 43.1      ~~(b) Loan~~ Repayment amounts ~~equal to one-half of the~~ 
 43.2   ~~principal and interest must be deposited in the rural~~ 
 43.3   ~~rehabilitation revolving fund for challenge grants to the region~~ 
 43.4   ~~from which the money was originally designated.  The remaining~~ 
 43.5   ~~amount of the loan repayment may~~ must be deposited in the 
 43.6   regional revolving ~~loan~~ fund for further distribution by the 
 43.7   regional organization, consistent with the loan criteria 
 43.8   specified in subdivisions 4 and 5. 
 43.9      ~~(c) The first $1,000,000 of revolving loans for each region~~ 
 43.10  ~~must be matched by nonstate sources.  The matching requirement~~ 
 43.11  ~~does not apply to loans made under paragraph (b).~~ 
 43.12     ~~(d) Administrative expenses of each organization may be~~ 
 43.13  ~~paid out of the interest earned on loans and on interest earned~~ 
 43.14  ~~on money invested by the state board of investment under section~~ 
 43.15  ~~116J.413, subdivision 2.~~ 
 43.16     Sec. 11.  Minnesota Statutes 2002, section 116J.415, 
 43.17  subdivision 11, is amended to read: 
 43.18     Subd. 11.  [REPORTING REQUIREMENTS.] An organization that 
 43.19  receives a challenge grant shall: 
 43.20     (1) submit an annual report to the commissioner by ~~February~~ 
 43.21  ~~15 of each~~ August 30 for the preceding fiscal year that includes 
 43.22  ~~a description of projects supported by the challenge grant~~ 
 43.23  ~~program,~~ an account of loans made, written off, and fully paid 
 43.24  during the calendar year, the source and amount of money 
 43.25  collected and distributed by the ~~challenge grant program~~ 
 43.26  regional revolving fund, and the ~~program's assets and~~ 
 43.27  ~~liabilities, and an explanation of administrative~~ 
 43.28  ~~expenses~~ funds' cash balance and loans receivable; and 
 43.29     (2) provide for an independent annual audit to be performed 
 43.30  in accordance with generally accepted accounting practices and 
 43.31  auditing standards and submit a copy of each annual audit report 
 43.32  to the commissioner. 
 43.33     Sec. 12.  Minnesota Statutes 2002, section 116J.553, 
 43.34  subdivision 2, is amended to read: 
 43.35     Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
 43.36  prescribe and provide the application form.  The application 
 44.1   must include at least the following information: 
 44.2      (1) identification of the site; 
 44.3      (2) an approved response action plan for the site, 
 44.4   including the results of engineering and other tests showing the 
 44.5   nature and extent of the release or threatened release of 
 44.6   contaminants at the site; 
 44.7      (3) a detailed estimate, along with necessary supporting 
 44.8   evidence, of the total cleanup costs for the site; 
 44.9      (4) an appraisal of the current market value of the 
 44.10  property, separately taking into account the effect of the 
 44.11  contaminants on the market value, prepared by a qualified 
 44.12  independent appraiser licensed under chapter 82B using accepted 
 44.13  appraisal methodology or, the estimated market value of the 
 44.14  property for the latest year shown on the most recent valuation 
 44.15  notice used under section 273.121; 
 44.16     (5) an assessment of the development potential or likely 
 44.17  use of the site after completion of the response action plan, 
 44.18  including any specific commitments from third parties to 
 44.19  construct improvements on the site; 
 44.20     (6) the manner in which the municipality will meet the 
 44.21  local match requirement; and 
 44.22     (7) any additional information or material that the 
 44.23  commissioner prescribes. 
 44.24     (b) A response action plan is not required as a condition 
 44.25  to receive a grant under section 116J.554, subdivision 1, 
 44.26  paragraph (c). 
 44.27     Sec. 13.  Minnesota Statutes 2002, section 116J.554, 
 44.28  subdivision 2, is amended to read: 
 44.29     Subd. 2.  [QUALIFYING SITES.] A site qualifies for a grant 
 44.30  under this section, if the following criteria are met: 
 44.31     (1) the site is not scheduled for funding during the 
 44.32  current or next fiscal year under the Comprehensive 
 44.33  Environmental Response, Compensation, and Liability Act, United 
 44.34  States Code, title 42, section 9601, et seq. or under the 
 44.35  Environmental Response, and Liability Act under sections 115B.01 
 44.36  to 115B.24; 
 45.1      (2) the appraised value of the site after adjusting for the 
 45.2   effect on the value of the presence or possible presence of 
 45.3   contaminants using accepted appraisal methodology, or the 
 45.4   current market value of the site as issued under section 
 45.5   273.121, separately taking into account the effect of the 
 45.6   contaminants on the market value, (i) is less than 75 percent of 
 45.7   the estimated project costs for the site or (ii) is less than or 
 45.8   equal to the estimated cleanup costs for the site and the 
 45.9   cleanup costs equal or exceed $3 per square foot for the site; 
 45.10  and 
 45.11     (3) if the proposed cleanup is completed, it is expected 
 45.12  that the site will be improved with buildings or other 
 45.13  improvements and these improvements will provide a substantial 
 45.14  increase in the property tax base within a reasonable period of 
 45.15  time or the site will be used for an important publicly owned or 
 45.16  tax-exempt facility. 
 45.17     Sec. 14.  Minnesota Statutes 2002, section 116J.8731, 
 45.18  subdivision 1, is amended to read: 
 45.19     Subdivision 1.  [PURPOSE.] The Minnesota investment fund is 
 45.20  created to provide financial assistance, through partnership 
 45.21  with communities, for the creation of new employment or to 
 45.22  maintain existing employment, and for business start-up, 
 45.23  expansions, and retention.  It shall accomplish these goals by 
 45.24  the following means: 
 45.25     (1) creation or retention of permanent private-sector jobs 
 45.26  in order to create above-average economic growth consistent with 
 45.27  environmental protection, which includes investments in 
 45.28  technology and equipment that increase productivity and provide 
 45.29  for a higher wage; 
 45.30     (2) stimulation or leverage of private investment to ensure 
 45.31  economic renewal and competitiveness; 
 45.32     (3) increasing the local tax base, based on demonstrated 
 45.33  measurable outcomes, to guarantee a diversified industry mix; 
 45.34     (4) improving the quality of existing jobs, based on 
 45.35  increases in wages or improvements in the job duties, training, 
 45.36  or education associated with those jobs; 
 46.1      (5) improvement of employment and economic opportunity for 
 46.2   citizens in the region to create a reasonable standard of 
 46.3   living, consistent with federal and state guidelines on low- to 
 46.4   moderate-income persons; and 
 46.5      ~~(5)~~ (6) stimulation of productivity growth through improved 
 46.6   manufacturing or new technologies, including cold weather 
 46.7   testing.  
 46.8      Sec. 15.  Minnesota Statutes 2002, section 116J.8731, 
 46.9   subdivision 4, is amended to read: 
 46.10     Subd. 4.  [ELIGIBLE PROJECTS.] Assistance must be evaluated 
 46.11  on the existence of the following conditions: 
 46.12     (1) creation of new jobs ~~or~~, retention of existing jobs, or 
 46.13  improvements in the quality of existing jobs as measured by the 
 46.14  wages, skills, or education associated with those jobs; 
 46.15     (2) increase in the tax base; 
 46.16     (3) the project can demonstrate that investment of public 
 46.17  dollars induces private funds; 
 46.18     (4) the project can demonstrate an excessive public 
 46.19  infrastructure or improvement cost beyond the means of the 
 46.20  affected community and private participants in the project; 
 46.21     (5) the project provides higher wage levels to the 
 46.22  community or will add value to current workforce skills; 
 46.23     (6) whether assistance is necessary to retain existing 
 46.24  business; and 
 46.25     (7) whether assistance is necessary to attract out-of-state 
 46.26  business.  
 46.27     A grant or loan cannot be made based solely on a finding 
 46.28  that the conditions in clause (6) or (7) exist.  A finding must 
 46.29  be made that a condition in clause (1), (2), (3), (4), or (5) 
 46.30  also exists. 
 46.31     Applications recommended for funding shall be submitted to 
 46.32  the commissioner. 
 46.33     Sec. 16.  Minnesota Statutes 2002, section 116J.8731, 
 46.34  subdivision 5, is amended to read: 
 46.35     Subd. 5.  [GRANT LIMITS.] A Minnesota investment fund grant 
 46.36  may not be approved for an amount in excess of 
 47.1   ~~$500,000~~ $1,000,000.  This limit covers all money paid to 
 47.2   complete the same project, whether paid to one or more grant 
 47.3   recipients and whether paid in one or more fiscal years.  The 
 47.4   portion of a Minnesota investment fund grant that exceeds 
 47.5   $100,000 must be repaid to the state when it is repaid to the 
 47.6   local community or recognized Indian tribal government by the 
 47.7   person or entity to which it was loaned by the local community 
 47.8   or Indian tribal government.  Money repaid to the state must be 
 47.9   credited to the general fund.  A grant or loan may not be made 
 47.10  to a person or entity for the operation or expansion of a casino 
 47.11  or a store which is used solely or principally for retail 
 47.12  sales.  Persons or entities receiving grants or loans must pay 
 47.13  each employee total compensation, including benefits not 
 47.14  mandated by law, that on an annualized basis is equal to at 
 47.15  least 110 percent of the federal poverty level for a family of 
 47.16  four. 
 47.17     Sec. 17.  Minnesota Statutes 2002, section 116J.8731, 
 47.18  subdivision 7, is amended to read: 
 47.19     Subd. 7.  [CONTRACTUAL OBLIGATION.] A business receiving 
 47.20  Minnesota investment fund grants must demonstrate why the grant 
 47.21  is necessary for a project and enter into an agreement with the 
 47.22  local grantor.  The agreement, among other things, must obligate 
 47.23  the recipient to pay the minimum compensation set by this 
 47.24  section and meet job creation or job enhancement goals.  A 
 47.25  recipient that breaches the agreement must repay the grant 
 47.26  directly to the commissioner.  Repayments under this subdivision 
 47.27  must be deposited in the general fund.  If the commissioner 
 47.28  determines, during the repayment period of a Minnesota 
 47.29  investment fund loan, that the project for which the loan was 
 47.30  made is in imminent danger of ceasing operations due to 
 47.31  financial difficulties, the commissioner may elect to delay loan 
 47.32  payments due on the loan for a period of no more than two 
 47.33  years.  In making a determination about whether a recipient 
 47.34  qualifies for possible delay in payments, the commissioner must 
 47.35  consider all available information regarding the health of the 
 47.36  affected business and the industry in which it operates, the 
 48.1   potential for displacement of workers in the event that 
 48.2   operations cease, and the likelihood that a delay of payments 
 48.3   will provide the business with a reasonable ability to improve 
 48.4   its financial condition. 
 48.5      Sec. 18.  Minnesota Statutes 2002, section 116J.8764, is 
 48.6   amended by adding a subdivision to read: 
 48.7      Subd. 2a.  [ENROLLMENT OF LOANS WITHOUT COMMISSIONER'S FULL 
 48.8   PREMIUM PAYMENT.] The commissioner may continue to accept loans 
 48.9   for enrollment into the program even if the amount of funds 
 48.10  contained in the account is zero or an amount less than the full 
 48.11  amount that is required to be transferred under section 
 48.12  116J.8765, subdivision 2, paragraph (a), (b), or (c).  
 48.13     Sec. 19.  Minnesota Statutes 2002, section 116J.955, 
 48.14  subdivision 2, is amended to read: 
 48.15     Subd. 2.  [EXPENDITURE OF ACCOUNT.] The commissioner may 
 48.16  use the rural rehabilitation account for the purposes that are 
 48.17  allowed under the Minnesota rural rehabilitation corporation's 
 48.18  charter and agreement ~~with~~, as may be amended or modified by, 
 48.19  the United States Secretary of Agriculture as provided in Public 
 48.20  Law Number 499, 81st Congress, enacted May 3, 1950 and as 
 48.21  allowed under Laws 1987, chapter 386, article 1.  Not more than 
 48.22  three percent of the combined book value of the Minnesota rural 
 48.23  rehabilitation ~~corporation's assets~~ account and the regional 
 48.24  revolving funds may be used for administrative purposes in a 
 48.25  year without approval of the United States Secretary of 
 48.26  Agriculture.  Any funds used for administrative purposes may 
 48.27  only be drawn from money remaining in the Minnesota rural 
 48.28  rehabilitation account.  
 48.29     Sec. 20.  Minnesota Statutes 2002, section 116J.966, 
 48.30  subdivision 1, is amended to read: 
 48.31     Subdivision 1.  [GENERALLY.] (a) The commissioner shall 
 48.32  promote, develop, and facilitate trade and foreign investment in 
 48.33  Minnesota.  In furtherance of these goals, and in addition to 
 48.34  the powers granted by section 116J.035, the commissioner may:  
 48.35     (1) locate, develop, and promote international markets for 
 48.36  Minnesota products and services; 
 49.1      (2) arrange and lead trade missions to countries with 
 49.2   promising international markets for Minnesota goods, technology, 
 49.3   services, and agricultural products; 
 49.4      (3) promote Minnesota products and services at domestic and 
 49.5   international trade shows; 
 49.6      (4) organize, promote, and present domestic and 
 49.7   international trade shows featuring Minnesota products and 
 49.8   services; 
 49.9      (5) host trade delegations and assist foreign traders in 
 49.10  contacting appropriate Minnesota businesses and investments; 
 49.11     (6) develop contacts with Minnesota businesses and gather 
 49.12  and provide information to assist them in locating and 
 49.13  communicating with international trading or joint venture 
 49.14  counterparts; 
 49.15     (7) provide information, education, and counseling services 
 49.16  to Minnesota businesses regarding the economic, commercial, 
 49.17  legal, and cultural contexts of international trade; 
 49.18     (8) provide Minnesota businesses with international trade 
 49.19  leads and information about the availability and sources of 
 49.20  services relating to international trade, such as export 
 49.21  financing, licensing, freight forwarding, international 
 49.22  advertising, translation, and custom brokering; 
 49.23     (9) locate, attract, and promote foreign direct investment 
 49.24  and business development in Minnesota to enhance employment 
 49.25  opportunities in Minnesota; 
 49.26     (10) provide foreign businesses and investors desiring to 
 49.27  locate facilities in Minnesota information regarding sources of 
 49.28  governmental, legal, real estate, financial, and business 
 49.29  services; 
 49.30     (11) enter into contracts or other agreements with private 
 49.31  persons and public entities, including agreements to establish 
 49.32  and maintain offices and other types of representation in 
 49.33  foreign countries, to carry out the purposes of promoting 
 49.34  international trade and attracting investment from foreign 
 49.35  countries to Minnesota and to carry out this section, without 
 49.36  regard to section 16C.06; and 
 50.1      (12) market trade-related materials to businesses and 
 50.2   organizations, and the proceeds of which must be placed in a 
 50.3   special revolving account and are appropriated to the 
 50.4   commissioner to prepare and distribute trade-related materials.  
 50.5      (b) The commissioner may expend money to carry out this 
 50.6   section.  Promotional expenses include, but are not limited to, 
 50.7   expenses for the food, lodging, and travel of consultants and 
 50.8   speakers, and publications and other forms of advertising. 
 50.9      (c) The programs and activities of the commissioner of 
 50.10  trade and economic development and the Minnesota trade division 
 50.11  may not duplicate programs and activities of the commissioner of 
 50.12  agriculture ~~or the Minnesota world trade center~~. 
 50.13     ~~(c)~~ (d) The commissioner shall notify the chairs of the 
 50.14  senate finance and house appropriations committees of each 
 50.15  agreement under this subdivision to establish and maintain an 
 50.16  office or other type of representation in a foreign country. 
 50.17     Sec. 21.  Minnesota Statutes 2002, section 116J.994, 
 50.18  subdivision 4, is amended to read: 
 50.19     Subd. 4.  [WAGE AND JOB GOALS.] The subsidy agreement, in 
 50.20  addition to any other goals, must include:  (1) goals for the 
 50.21  number of jobs created, which may include separate goals for the 
 50.22  number of part-time or full-time jobs, or, in cases where job 
 50.23  loss is specific and demonstrable, goals for the number of jobs 
 50.24  retained; ~~and~~ (2) wage goals for ~~the~~ any jobs created or 
 50.25  retained; and (3) wage goals for any jobs to be enhanced through 
 50.26  increased wages.  After a public hearing, if the creation or 
 50.27  retention of jobs is determined not to be a goal, the wage and 
 50.28  job goals may be set at zero. 
 50.29     In addition to other specific goal time frames, the wage 
 50.30  and job goals must contain specific goals to be attained within 
 50.31  two years of the benefit date. 
 50.32     Sec. 22.  Minnesota Statutes 2002, section 116J.995, is 
 50.33  amended to read: 
 50.34     116J.995 [ECONOMIC GRANTS.] 
 50.35     An appropriation rider in an appropriation to the 
 50.36  department of trade and economic development that specifies that 
 51.1   the appropriation be granted to a particular business or class 
 51.2   of businesses must contain a statement of the expected benefits 
 51.3   associated with the grant.  At a minimum, the statement must 
 51.4   include goals for the number of jobs created or enhanced, wages 
 51.5   paid, and the tax revenue increases due to the grant.  The wage 
 51.6   and job goals must contain specific goals to be attained within 
 51.7   two years of the benefit date.  The statement must specify the 
 51.8   recipient's obligation if the recipient does not attain the 
 51.9   goals.  At a minimum, the statement must require a recipient 
 51.10  failing to meet the job and wage goals to pay back the 
 51.11  assistance plus interest to the department of trade and economic 
 51.12  development provided that repayment may be prorated to reflect 
 51.13  partial fulfillment of goals.  The interest rate must be set at 
 51.14  no less than the implicit price deflator as defined under 
 51.15  section 116J.994, subdivision 6.  The legislature, after a 
 51.16  public hearing, may extend for up to one year the period for 
 51.17  meeting the goals provided in the statement. 
 51.18     Sec. 23.  Minnesota Statutes 2002, section 116L.02, is 
 51.19  amended to read: 
 51.20     116L.02 [JOB SKILLS PARTNERSHIP PROGRAM.] 
 51.21     (a) The Minnesota job skills partnership program is created 
 51.22  to act as a catalyst to bring together employers with specific 
 51.23  training needs with educational or other nonprofit institutions 
 51.24  which can design programs to fill those needs.  The partnership 
 51.25  shall work closely with employers to prepare, train and place 
 51.26  prospective or incumbent workers in identifiable positions as 
 51.27  well as assisting educational or other nonprofit institutions in 
 51.28  developing training programs that coincide with current and 
 51.29  future employer requirements.  The partnership shall provide 
 51.30  grants to educational or other nonprofit institutions for the 
 51.31  purpose of training workers.  A participating business must 
 51.32  match the grant-in-aid made by the Minnesota job skills 
 51.33  partnership.  The match may be in the form of funding, 
 51.34  equipment, or faculty. 
 51.35     (b) The partnership program shall administer the health 
 51.36  care and human services worker training and retention program 
 52.1   under sections 116L.10 to 116L.15. 
 52.2      (c) The partnership program is authorized to use funds to 
 52.3   pay for training for individuals who have incomes at or below 
 52.4   200 percent of the federal poverty line.  The board may grant 
 52.5   funds to eligible recipients to pay for board-certified training.
 52.6   Eligible recipients of grants may include public, private, or 
 52.7   nonprofit entities that provide employment services to 
 52.8   low-income individuals. 
 52.9      Sec. 24.  Minnesota Statutes 2002, section 116L.04, 
 52.10  subdivision 1, is amended to read: 
 52.11     Subdivision 1.  [PARTNERSHIP PROGRAM.] (a) The partnership 
 52.12  program may provide grants-in-aid to educational or other 
 52.13  nonprofit educational institutions using the following 
 52.14  guidelines:  
 52.15     (1) the educational or other nonprofit educational 
 52.16  institution is a provider of training within the state in either 
 52.17  the public or private sector; 
 52.18     (2) the program involves skills training that is an area of 
 52.19  employment need; and 
 52.20     (3) preference will be given to educational or other 
 52.21  nonprofit training institutions which serve economically 
 52.22  disadvantaged people, minorities, or those who are victims of 
 52.23  economic dislocation and to businesses located in rural areas.  
 52.24     (b) A single grant to any one institution shall not exceed 
 52.25  $400,000.  Up to 25 percent of a grant may be used for 
 52.26  preemployment training. 
 52.27     Sec. 25.  Minnesota Statutes 2002, section 116L.04, 
 52.28  subdivision 1a, is amended to read: 
 52.29     Subd. 1a.  [PATHWAYS PROGRAM.] The pathways program may 
 52.30  provide grants-in-aid for developing programs which assist in 
 52.31  the transition of persons from welfare to work and assist 
 52.32  individuals at or below 200 percent of the federal poverty 
 52.33  guidelines.  The program is to be operated by the board.  The 
 52.34  board shall consult and coordinate with program administrators 
 52.35  at the department of economic security to design and provide 
 52.36  services for temporary assistance for needy families recipients. 
 53.1      Pathways grants-in-aid may be awarded to educational or 
 53.2   other nonprofit training institutions for education and training 
 53.3   programs and services supporting education and training programs 
 53.4   that serve eligible recipients. 
 53.5      Preference shall be given to projects that: 
 53.6      (1) provide employment with benefits paid to employees; 
 53.7      (2) provide employment where there are defined career paths 
 53.8   for trainees; 
 53.9      (3) pilot the development of an educational pathway that 
 53.10  can be used on a continuing basis for transitioning persons from 
 53.11  welfare to work; and 
 53.12     (4) demonstrate the active participation of department of 
 53.13  economic security workforce centers, Minnesota state college and 
 53.14  university institutions and other educational institutions, and 
 53.15  local welfare agencies. 
 53.16     Pathways projects must demonstrate the active involvement 
 53.17  and financial commitment of private business.  Pathways projects 
 53.18  must be matched with cash or in-kind contributions on at least a 
 53.19  one-to-one ratio by participating private business. 
 53.20     A single grant to any one institution shall not exceed 
 53.21  $400,000. 
 53.22     ~~The board shall annually, by March 31, report to the~~ 
 53.23  ~~commissioners of economic security and trade and economic~~ 
 53.24  ~~development on pathways programs, including the number of~~ 
 53.25  ~~recipients participating in the program, the number of~~ 
 53.26  ~~participants placed in employment, the salary and benefits they~~ 
 53.27  ~~receive, and the state program costs per participant.~~ 
 53.28     Sec. 26.  Minnesota Statutes 2002, section 116L.12, 
 53.29  subdivision 4, is amended to read: 
 53.30     Subd. 4.  [GRANTS.] Within the limits of available 
 53.31  appropriations, the board shall make grants not to exceed 
 53.32  $400,000 each to qualifying consortia to operate local, 
 53.33  regional, or statewide training and retention programs.  Grants 
 53.34  may be made from TANF funds, general fund appropriations, and 
 53.35  any other funding sources available to the board, provided the 
 53.36  requirements of those funding sources are satisfied.  Up to 25 
 54.1   percent of a grant may be used for preemployment training.  
 54.2   Grant awards must establish specific, measurable outcomes and 
 54.3   timelines for achieving those outcomes.  
 54.4      Sec. 27.  Minnesota Statutes 2002, section 116L.17, 
 54.5   subdivision 2, is amended to read: 
 54.6      Subd. 2.  [GRANTS.] The board shall make grants to 
 54.7   workforce service areas or other eligible organizations to 
 54.8   provide services to dislocated workers.  The board shall 
 54.9   allocate funds available for the purposes of this section in its 
 54.10  discretion to respond to large layoffs.  The board shall 
 54.11  regularly allocate funds to provide services to individual 
 54.12  dislocated workers or small groups.  The allocation for this 
 54.13  purpose must be no less than 35 percent and no more than 50 
 54.14  percent of the ~~projected~~ actual collections, interest and other 
 54.15  earnings of the workforce development fund during the period for 
 54.16  which the allocation is made, less any collection costs paid out 
 54.17  of the fund and any amounts appropriated by the legislature from 
 54.18  the workforce development fund for programs other than the state 
 54.19  dislocated worker program.  The board shall consider the need 
 54.20  for services to individual workers and workers in small layoffs 
 54.21  in comparison to those in large layoffs relative to the needs in 
 54.22  previous years when making this allocation.  The board may, in 
 54.23  its discretion, allocate funds carried forward from previous 
 54.24  years under subdivision 9 for large, small, or individual 
 54.25  layoffs. 
 54.26     Sec. 28.  Minnesota Statutes 2002, section 116L.17, 
 54.27  subdivision 3, is amended to read: 
 54.28     Subd. 3.  [ALLOCATION OF FUNDS.] The board, in consultation 
 54.29  with local workforce councils and local elected officials, shall 
 54.30  develop a method of distributing funds to provide services for 
 54.31  dislocated workers who are dislocated as a result of small or 
 54.32  individual layoffs.  The board shall consider current requests 
 54.33  for services and the likelihood of future layoffs when making 
 54.34  this allocation.  The board shall consider factors for 
 54.35  determining the allocation amounts that include, but are not 
 54.36  limited to, the previous year's obligations and projected 
 55.1   layoffs.  After the first quarter of the program year, the board 
 55.2   shall evaluate the obligations by workforce service areas for 
 55.3   the purpose of reallocating funds to workforce service areas 
 55.4   with increased demand for services.  Periodically throughout the 
 55.5   program year, the board shall consider making additional 
 55.6   allocations to the workforce service areas with a demonstrated 
 55.7   need for increased funding.  The board shall make an initial 
 55.8   determination regarding allocations under this subdivision by 
 55.9   July 15, 2001, and in subsequent years shall make a 
 55.10  determination by ~~April~~ June 15. 
 55.11     Sec. 29.  Minnesota Statutes 2002, section 116L.17, 
 55.12  subdivision 8, is amended to read: 
 55.13     Subd. 8.  [ADMINISTRATIVE COSTS.] No more than ~~three~~ five 
 55.14  percent of the funds appropriated to the board for the purposes 
 55.15  of this section may be spent by the board for its administrative 
 55.16  costs. 
 55.17     Sec. 30.  Minnesota Statutes 2002, section 116L.17, is 
 55.18  amended by adding a subdivision to read: 
 55.19     Subd. 9.  [RAPID RESPONSE ACTIVITIES.] The commissioner 
 55.20  shall be responsible for implementing the following rapid 
 55.21  response activities: 
 55.22     (1) establishing on-site contact with employer and employee 
 55.23  representatives within a short period of time after becoming 
 55.24  aware of a current or projected plant closing or substantial 
 55.25  layoff in order to: 
 55.26     (i) provide information on and facilitate access to 
 55.27  available public programs and services; and 
 55.28     (ii) provide emergency assistance adapted to the particular 
 55.29  closure or layoff; 
 55.30     (2) promoting the formation of a employee-management 
 55.31  committee by providing: 
 55.32     (i) immediate assistance in the establishment of the 
 55.33  employee-management committee; 
 55.34     (ii) technical advice and information on sources of 
 55.35  assistance and liaison with other public and private services 
 55.36  and programs; and 
 56.1      (iii) assistance in the selection of worker representatives 
 56.2   in the event no union is present; 
 56.3      (3) collecting and disseminating information related to 
 56.4   economic dislocation, including potential closings or layoffs, 
 56.5   and all available resources with the state for dislocated 
 56.6   workers; 
 56.7      (4) providing or obtaining appropriate financial and 
 56.8   technical advice and liaison with economic development agencies 
 56.9   and other organizations to assist in efforts to avert 
 56.10  dislocation; 
 56.11     (5) disseminating information throughout the state on the 
 56.12  availability of services and activities carried out by the 
 56.13  dislocated worker unit; and 
 56.14     (6) assisting the local community in developing its own 
 56.15  coordinated response to a plant closing or substantial layoff 
 56.16  and access to state economic development assistance. 
 56.17     Sec. 31.  Minnesota Statutes 2002, section 116M.14, 
 56.18  subdivision 4, is amended to read: 
 56.19     Subd. 4.  [LOW-INCOME AREA.] "Low-income area" means 
 56.20  Minneapolis, St. Paul, and those cities in the metropolitan area 
 56.21  as defined in section 473.121, subdivision 2, that have an 
 56.22  average income that is below ~~60~~ 80 percent of the median income 
 56.23  for a four-person family as of the latest report by the United 
 56.24  States Census Bureau. 
 56.25     Sec. 32.  [NAFTA AND FTAA REVIEW AND REPORT.] 
 56.26     The commissioner of trade and economic development shall 
 56.27  analyze and report to the legislature on the negative and 
 56.28  positive impacts of the North American Free Trade Agreement 
 56.29  (NAFTA) and its pending expansion to 34 more countries in South 
 56.30  and Central America under the pending Free Trade Areas of the 
 56.31  Americas (FTAA).  The analysis shall include but not be limited 
 56.32  to:  
 56.33     (1) the number of manufacturing jobs in Minnesota lost or 
 56.34  gained to foreign competition and the sectors expected to 
 56.35  experience job losses; 
 56.36     (2) the restrictions on public subsidies for economic 
 57.1   development, job creation and job training including tax free 
 57.2   zones, enterprise zones, tourism promotion, bio-research 
 57.3   promotion; 
 57.4      (3) the treatment of foreign investors as compared to 
 57.5   domestic investors; 
 57.6      (4) subsidies for housing; and 
 57.7      (5) other trade agreement rules that potentially conflict 
 57.8   with state or local law-making authority and opportunities to 
 57.9   promote economic development in Minnesota. 
 57.10     The commissioner shall report preliminary findings to the 
 57.11  chairs of the house jobs and economic development and commerce 
 57.12  committees and the senate jobs and economic development and 
 57.13  commerce committees by July 15, 2003.  The commissioner shall 
 57.14  make a final report by January 1, 2004, in order to allow the 
 57.15  Minnesota legislature and governor the option to join with other 
 57.16  states who are expressing their concerns about potential loss or 
 57.17  gains of state and local governing authority to the United 
 57.18  States Trade Representative, who is currently engaged in private 
 57.19  negotiations in which the state and the governor have no 
 57.20  representative to protect state and local sovereignty. 
 57.21     Sec. 33.  [REPEALER.] 
 57.22     Minnesota Statutes 2002, sections 13.598, subdivision 2; 
 57.23  116J.411, subdivision 3; 116J.415, subdivisions 6, 9, and 10; 
 57.24  116J.693; 116J.9665; and 116L.03, subdivision 7, are repealed. 
 57.25                             ARTICLE 7
 57.26                           VAPOR RECOVERY
 57.27     Section 1.  Minnesota Statutes 2002, section 115C.09, is 
 57.28  amended by adding a subdivision to read: 
 57.29     Subd. 3j.  [RETAIL LOCATIONS AND TRANSPORT VEHICLES.] (a) 
 57.30  As used in this subdivision, "retail location" means a facility 
 57.31  located in the metropolitan area as defined in section 473.121, 
 57.32  subdivision 2, where gasoline is offered for sale to the general 
 57.33  public for use in automobiles and trucks.  "Transport vehicle" 
 57.34  means a liquid fuel cargo tank used to deliver gasoline into 
 57.35  underground storage tanks during 2002 at a retail location. 
 57.36     (b) Notwithstanding any other provision in this chapter, 
 58.1   and any rules adopted under this chapter, the board shall 
 58.2   reimburse 90 percent of an applicant's cost for retrofits of 
 58.3   retail locations and transport vehicles completed between 
 58.4   January 1, 2001, and January 1, 2006, to comply with section 
 58.5   116.49, subdivisions 3 and 4, provided that the board determines 
 58.6   the costs were incurred and reasonable.  The reimbursement may 
 58.7   not exceed $3,000 per retail location and $3,000 per transport 
 58.8   vehicle. 
 58.9      Sec. 2.  Minnesota Statutes 2002, section 116.073, 
 58.10  subdivision 1, is amended to read: 
 58.11     Subdivision 1.  [AUTHORITY TO ISSUE.] (a) Pollution control 
 58.12  agency staff designated by the commissioner and department of 
 58.13  natural resources conservation officers may issue citations to a 
 58.14  person who: 
 58.15     (1) disposes of solid waste as defined in section 116.06, 
 58.16  subdivision 22, at a location not authorized by law for the 
 58.17  disposal of solid waste without permission of the owner of the 
 58.18  property; 
 58.19     (2) fails to report or recover discharges as required under 
 58.20  section 115.061; ~~or~~ 
 58.21     (3) fails to take discharge preventive or preparedness 
 58.22  measures required under chapter 115E; or 
 58.23     (4) fails to install or use vapor recovery equipment during 
 58.24  the transfer of gasoline from a transport delivery vehicle to an 
 58.25  underground storage tank as required in section 116.49, 
 58.26  subdivisions 3 and 4. 
 58.27     (b) In addition, pollution control agency staff designated 
 58.28  by the commissioner may issue citations to owners and operators 
 58.29  of facilities dispensing petroleum products who violate sections 
 58.30  116.46 to 116.50 and Minnesota Rules, chapters 7150 and 7151 and 
 58.31  parts 7001.4200 to 7001.4300.  A citation issued under this 
 58.32  subdivision must include a requirement that the person cited 
 58.33  remove and properly dispose of or otherwise manage the waste or 
 58.34  discharged oil or hazardous substance, reimburse any government 
 58.35  agency that has disposed of the waste or discharged oil or 
 58.36  hazardous substance and contaminated debris for the reasonable 
 59.1   costs of disposal, or correct any storage tank violations. 
 59.2      (c) Until June 1, 2004, citations for violation of sections 
 59.3   115E.045 and 116.46 to 116.50 and Minnesota Rules, chapters 7150 
 59.4   and 7151, may be issued only after the owners and operators have 
 59.5   had a 90-day period to correct violations stated in writing by 
 59.6   pollution control agency staff, unless there is a discharge 
 59.7   associated with the violation or the violation is of Minnesota 
 59.8   Rules, part 7151.6400, subpart 1, item B, or 7151.6500. 
 59.9      Sec. 3.  Minnesota Statutes 2002, section 116.073, 
 59.10  subdivision 2, is amended to read: 
 59.11     Subd. 2.  [PENALTY AMOUNT.] The citation must impose the 
 59.12  following penalty amounts: 
 59.13     (1) $100 per major appliance, as defined in section 
 59.14  115A.03, subdivision 17a, up to a maximum of $2,000; 
 59.15     (2) $25 per waste tire, as defined in section 115A.90, 
 59.16  subdivision 11, up to a maximum of $2,000; 
 59.17     (3) $25 per lead acid battery governed by section 115A.915, 
 59.18  up to a maximum of $2,000; 
 59.19     (4) $1 per pound of other solid waste or $20 per cubic foot 
 59.20  up to a maximum of $2,000; 
 59.21     (5) up to $200 for any amount of waste that escapes from a 
 59.22  vehicle used for the transportation of solid waste if, after 
 59.23  receiving actual notice that waste has escaped the vehicle, the 
 59.24  person or company transporting the waste fails to immediately 
 59.25  collect the waste; 
 59.26     (6) $50 per violation of rules adopted under section 
 59.27  116.49, relating to underground storage tank system design, 
 59.28  construction, installation, and notification requirements, up to 
 59.29  a maximum of $2,000; 
 59.30     (7) $250 per violation of rules adopted under section 
 59.31  116.49, relating to upgrading of existing underground storage 
 59.32  tank systems, up to a maximum of $2,000; 
 59.33     (8) $100 per violation of rules adopted under section 
 59.34  116.49, relating to underground storage tank system general 
 59.35  operating requirements, up to a maximum of $2,000; 
 59.36     (9) $250 per violation of rules adopted under section 
 60.1   116.49, relating to underground storage tank system release 
 60.2   detection requirements, up to a maximum of $2,000; 
 60.3      (10) $50 per violation of rules adopted under section 
 60.4   116.49, relating to out-of-service underground storage tank 
 60.5   systems and closure, up to a maximum of $2,000; 
 60.6      (11) $50 per violation of sections 116.48 to 116.491 
 60.7   relating to underground storage tank system notification, 
 60.8   monitoring, environmental protection, and tank installers 
 60.9   training and certification requirements, up to a maximum of 
 60.10  $2,000; 
 60.11     (12) $25 per gallon of oil or hazardous substance 
 60.12  discharged which is not reported or recovered under section 
 60.13  115.061, up to a maximum of $2,000; 
 60.14     (13) $1 per gallon of oil or hazardous substance being 
 60.15  stored, transported, or otherwise handled without the prevention 
 60.16  or preparedness measures required under chapter 115E, up to a 
 60.17  maximum of $2,000; ~~and~~ 
 60.18     (14) $250 per violation of Minnesota Rules, parts 7001.4200 
 60.19  to 7001.4300 or chapter 7151, related to aboveground storage 
 60.20  tank systems, up to a maximum of $2,000; and 
 60.21     (15) $250 per delivery made in violation of section 116.49, 
 60.22  subdivision 3 or 4, levied against: 
 60.23     (i) the retail location if vapor recovery equipment is not 
 60.24  installed or maintained properly; 
 60.25     (ii) the carrier if the transport delivery vehicle is not 
 60.26  equipped with vapor recovery equipment; or 
 60.27     (iii) the driver for failure to use supplied vapor recovery 
 60.28  equipment.  
 60.29     Sec. 4.  Minnesota Statutes 2002, section 116.46, is 
 60.30  amended by adding a subdivision to read: 
 60.31     Subd. 7a.  [RETAIL LOCATION.] "Retail location" means a 
 60.32  facility located in the metropolitan area as defined in section 
 60.33  473.121, subdivision 2, where gasoline is offered for sale to 
 60.34  the general public for use in automobiles and trucks. 
 60.35     Sec. 5.  Minnesota Statutes 2002, section 116.46, is 
 60.36  amended by adding a subdivision to read: 
 61.1      Subd. 7b.  [TRANSPORT DELIVERY VEHICLE.] "Transport 
 61.2   delivery vehicle" means a liquid fuel cargo tank used to deliver 
 61.3   gasoline into underground storage tanks. 
 61.4      Sec. 6.  Minnesota Statutes 2002, section 116.46, is 
 61.5   amended by adding a subdivision to read: 
 61.6      Subd. 9.  [VAPOR RECOVERY SYSTEM.] "Vapor recovery system" 
 61.7   means a system which transfers vapors from underground storage 
 61.8   tanks during the filling operation to the storage compartment of 
 61.9   the transport vehicle delivering gasoline. 
 61.10     Sec. 7.  Minnesota Statutes 2002, section 116.49, is 
 61.11  amended by adding a subdivision to read: 
 61.12     Subd. 3.  [VAPOR RECOVERY SYSTEM.] Every underground 
 61.13  gasoline storage tank at a retail location must be fitted with 
 61.14  vapor recovery equipment by January 1, 2006.  The equipment must 
 61.15  be certified by the manufacturer as capable of collecting 95 
 61.16  percent of hydrocarbons emitted during gasoline transfers from a 
 61.17  transport delivery vehicle to an underground storage tank.  
 61.18  Product delivery and vapor recovery access points must be on the 
 61.19  same side of the transport vehicle when the transport vehicle is 
 61.20  positioned for delivery into the underground tank.  After 
 61.21  January 1, 2006, no gasoline may be delivered to a retail 
 61.22  location that is not equipped with a vapor recovery system. 
 61.23     Sec. 8.  Minnesota Statutes 2002, section 116.49, is 
 61.24  amended by adding a subdivision to read: 
 61.25     Subd. 4.  [VAPOR RECOVERY ON TRANSPORTS.] All transport 
 61.26  delivery vehicles that deliver gasoline into underground storage 
 61.27  tanks in the metropolitan area as defined in section 473.121, 
 61.28  subdivision 2, must be fitted with vapor recovery equipment.  
 61.29  The equipment must recover and manage 95 percent of hydrocarbons 
 61.30  emitted during the transfer of gasoline from the underground 
 61.31  storage tank and the transport delivery vehicle by January 1, 
 61.32  2006.  After January 1, 2006, no gasoline may be delivered to a 
 61.33  retail location by a transport vehicle that is not fitted with 
 61.34  vapor recovery equipment. 
 61.35     Sec. 9.  Minnesota Statutes 2002, section 116.50, is 
 61.36  amended to read: 
 62.1      116.50 [PREEMPTION.] 
 62.2      Sections 116.46 to 116.49 preempt conflicting local and 
 62.3   municipal rules or ordinances requiring notification or 
 62.4   establishing environmental protection requirements for 
 62.5   underground storage tanks.  A state agency or local unit of 
 62.6   government may not adopt rules or ordinances establishing or 
 62.7   requiring vapor recovery for underground storage tanks. 
 62.8                              ARTICLE 8
 62.9                   MOTOR VEHICLE INSTALLMENT SALES
 62.10     Section 1.  Minnesota Statutes 2002, section 47.59, 
 62.11  subdivision 4a, is amended to read: 
 62.12     Subd. 4a.  [FINANCE CHARGE FOR MOTOR VEHICLE RETAIL 
 62.13  INSTALLMENT SALES.] A retail installment contract evidencing the 
 62.14  retail installment sale of a motor vehicle as defined in section 
 62.15  168.66 is subject to the finance charge limitations in 
 62.16  paragraphs (a) and (b). 
 62.17     (a) The finance charge authorized by this subdivision in a 
 62.18  retail installment sale may not exceed the following annual 
 62.19  percentage rates applied to the principal balance determined in 
 62.20  the same manner as in section 168.71, subdivision 2, clause (5): 
 62.21     (1) Class 1.  A motor vehicle designated by the 
 62.22  manufacturer by a year model of the same or not more than one 
 62.23  year before the year in which the sale is made, 18 percent per 
 62.24  year. 
 62.25     (2) Class 2.  A motor vehicle designated by the 
 62.26  manufacturer by a year model of two to three years before the 
 62.27  year in which the sale is made, 19.75 percent per year. 
 62.28     (3) Class 3.  Any motor vehicle not in Class 1 or Class 2, 
 62.29  23.25 percent per year. 
 62.30     (b) A sale of a manufactured home made after July 31, 1983, 
 62.31  is governed by this subdivision for purposes of determining the 
 62.32  lawful finance charge rate, except that the maximum finance 
 62.33  charge for a Class 1 manufactured home may not exceed 14.5 
 62.34  percent per year.  A retail installment sale of a manufactured 
 62.35  home that imposes a finance charge that is greater than the rate 
 62.36  permitted by this subdivision is lawful and enforceable in 
 63.1   accordance with its terms until the indebtedness is fully 
 63.2   satisfied if the rate was lawful when the sale was made. 
 63.3      Sec. 2.  Minnesota Statutes 2002, section 168.66, 
 63.4   subdivision 14, is amended to read: 
 63.5      Subd. 14.  [CASH SALE PRICE.] "Cash sale price" means the 
 63.6   price at which the seller would in good faith sell to the buyer, 
 63.7   and the buyer would in good faith buy from the seller, the motor 
 63.8   vehicle which is the subject matter of the retail installment 
 63.9   contract, if such sale were a sale for cash, instead of a retail 
 63.10  installment sale.  The cash sale price may include any taxes, 
 63.11  charges for delivery, servicing, repairing or improving the 
 63.12  motor vehicle, including accessories and their installation, and 
 63.13  any other charges agreed upon between the parties.  The cash 
 63.14  price may not include a documentary fee or document 
 63.15  administration fee in excess of ~~$25~~ $50 for services actually 
 63.16  rendered to, for, or on behalf of, the retail buyer in 
 63.17  preparing, handling, and processing documents relating to the 
 63.18  motor vehicle and the closing of the retail sale. 
 63.19     Sec. 3.  Minnesota Statutes 2002, section 168.71, 
 63.20  subdivision 2, is amended to read: 
 63.21     Subd. 2.  [CONTENTS.] The retail installment contract shall 
 63.22  contain the following items: 
 63.23     (1) the cash sale price of the motor vehicle which is the 
 63.24  subject matter of the retail installment contract; 
 63.25     (2) the total amount of the retail buyer's down payment, 
 63.26  whether made in money or goods, or partly in money or partly in 
 63.27  goods; 
 63.28     (3) the difference between clauses (1) and (2); 
 63.29     (4) the ~~charge~~ amount, if any, included in the transaction 
 63.30  but not included in clause (1) to pay the balance of an existing 
 63.31  purchase money motor vehicle lien which exceeds the value of the 
 63.32  trade-in amount, ~~or~~ to discharge an interest in an existing 
 63.33  motor vehicle lease, for any insurance ~~and other benefits not~~ 
 63.34  ~~included in clause (1)~~, specifying the types of coverage ~~and~~, 
 63.35  taxes, fees, and charges that actually are or will be paid to 
 63.36  public officials or government agencies, including those for 
 64.1   perfecting, releasing, or satisfying a security interest ~~if such~~ 
 64.2   ~~taxes, fees, or charges are not included in clause (1)~~, and any 
 64.3   other amount to be financed that is related to the transaction; 
 64.4      (5) principal balance, which is the sum of clauses (3) and 
 64.5   (4); 
 64.6      (6) the amount of the finance charge; 
 64.7      (7) the total of payments payable by the retail buyer to 
 64.8   the retail seller and the number of installment payments 
 64.9   required and the amount of each installment expressed in dollars 
 64.10  or percentages, and date of each payment necessary finally to 
 64.11  pay the total of payments which is the sum of clauses (5) and 
 64.12  (6). 
 64.13  Provided, however, that said clauses (1) to (7) inclusive need 
 64.14  not be stated in the terms, sequence, or order set forth above.  
 64.15  Provided further, that clauses (6) and (7) may be disclosed on 
 64.16  the assumption that all scheduled payments under the contract 
 64.17  will be made when due. 
 64.18  In lieu of the above clauses, the retail seller may give the 
 64.19  retail buyer disclosures which satisfy the requirements of the 
 64.20  Federal Truth-In-Lending Act in effect as of the time of the 
 64.21  contract, notwithstanding whether or not that act applies to the 
 64.22  transaction. 
 64.23     Sec. 4.  Minnesota Statutes 2002, section 168.75, is 
 64.24  amended to read: 
 64.25     168.75 [VEHICLE SALES FINANCE COMPANY VIOLATIONS; 
 64.26  REMEDIES.] 
 64.27     ~~(a)~~ Subdivision 1.  [CRIMINAL VIOLATIONS.] Any person 
 64.28  engaged in the business of a sales finance company in this state 
 64.29  without a license therefor as provided in sections 168.66 to 
 64.30  168.77 shall be guilty of a gross misdemeanor and punished by a 
 64.31  fine not exceeding $3,000, or by imprisonment for a period not 
 64.32  to exceed one year, or by both such fine and imprisonment in the 
 64.33  discretion of the court.  
 64.34     ~~(b) In case of an intentional failure to comply with any~~ 
 64.35  ~~provision of sections 168.66 to 168.77, the buyer shall have a~~ 
 64.36  ~~right to recover from the person committing such violation, to~~ 
 65.1   ~~set off or counterclaim in any action by such person to enforce~~ 
 65.2   ~~such contract an amount as liquidated damages, the whole of the~~ 
 65.3   ~~contract due and payable, plus reasonable attorneys' fees.~~  
 65.4      ~~(c) In case of a failure to comply with any provision of~~ 
 65.5   ~~sections 168.66 to 168.77, other than an intentional failure,~~ 
 65.6   ~~the buyer shall have a right to recover from the person~~ 
 65.7   ~~committing such violation, to set off or counterclaim in any~~ 
 65.8   ~~action by such person to enforce such contract an amount as~~ 
 65.9   ~~liquidated damages equal to three times the amount of any time~~ 
 65.10  ~~price differential charged in excess of the amount authorized by~~ 
 65.11  ~~sections 168.66 to 168.77 or $50, whichever is greater, plus~~ 
 65.12  ~~reasonable attorneys' fees.~~  
 65.13     Subd. 2.  [EXCESS CHARGES; RETAIL BUYER'S REMEDIES.] A 
 65.14  retail buyer is not obligated to pay a charge in excess of the 
 65.15  amounts allowed by sections 168.66 to 168.77 and has a right to 
 65.16  a refund of any excess charge paid.  If a retail seller or 
 65.17  assignee refuses to make a refund or reduce the retail buyer's 
 65.18  obligation by the amount of the excess charge within 30 days of 
 65.19  the retail buyer's written demand, the retail buyer shall also 
 65.20  have the right to recover a penalty in an amount determined by 
 65.21  the court but not less than $100 nor more than $1,000 together 
 65.22  with reasonable attorney fees as determined by the court. 
 65.23     Subd. 3.  [DISCLOSURE VIOLATIONS; RETAIL BUYER'S REMEDIES.] 
 65.24  (a) If a retail seller or assignee fails to comply with any 
 65.25  provision of sections 168.66 to 168.77 other than a section 
 65.26  establishing maximum charges, the retail buyer has a right to 
 65.27  recover any actual damages sustained as a result of the 
 65.28  violation and, in an action other than a class action, a penalty 
 65.29  in an amount determined by the court but not less than $100 nor 
 65.30  more than $1,000 together with reasonable attorney fees as 
 65.31  determined by the court. 
 65.32     (b) In the case of a class action brought pursuant to this 
 65.33  paragraph, each retail buyer who is a member of the class has a 
 65.34  right to recover any actual damages sustained as a result of the 
 65.35  failure to comply.  The court may also award each class member a 
 65.36  penalty, except that as to each member of the class the $100 
 66.1   minimum penalty does not apply and the total penalty award in 
 66.2   any class action or series of class actions arising out of the 
 66.3   same failure to comply must not be more than the lesser of 
 66.4   $500,000 or one percent of the net worth of the person 
 66.5   committing the violation.  In determining whether to award a 
 66.6   penalty, and the amount of the penalty, the court shall 
 66.7   consider, among other relevant factors, the amount of any actual 
 66.8   damages awarded, the frequency and persistence of the failure to 
 66.9   comply, the resources of the person committing the violation, 
 66.10  the number of persons adversely affected, and the extent to 
 66.11  which the conduct was intentional. 
 66.12     Subd. 4.  [COMPLIANCE WITH FEDERAL LAW.] Notwithstanding 
 66.13  the provisions of subdivision 3, a retail buyer has no right of 
 66.14  recovery if the retail seller complied with the provisions of 
 66.15  the federal Truth-In-Lending Act, United States Code, title 15, 
 66.16  section 1601, et seq., in effect as of the time of the 
 66.17  contract.  A retail buyer also has no right to recover a penalty 
 66.18  under subdivision 3 if the failure to comply would also violate 
 66.19  the federal Truth-In-Lending Act in effect as of the time of the 
 66.20  contract and the Truth-In-Lending Act would not impose an award 
 66.21  of statutory damages for such violation. 
 66.22     Subd. 5.  [CORRECTION OF ERRORS.] A retail seller or 
 66.23  assignee may not be held liable for a penalty under subdivision 
 66.24  2 or 3 if within 45 days after discovering an error, and before 
 66.25  either the institution of an action by the retail buyer or 
 66.26  receipt of written notice of the error from the retail buyer, 
 66.27  the retail seller or assignee provides written notice of the 
 66.28  error to the retail buyer and corrects the error.  If the error 
 66.29  consists of an excess charge, correction may be made by 
 66.30  adjustment or refund.  If the violation consists of an improper 
 66.31  disclosure or improper retail installment contract, providing 
 66.32  the retail buyer a corrected copy of the writing is sufficient 
 66.33  notification and correction. 
 66.34     Subd. 6.  [UNINTENTIONAL VIOLATIONS; BONA FIDE ERRORS.] A 
 66.35  retail seller or assignee may not be held liable in an action 
 66.36  brought under this section if the retail seller or assignee 
 67.1   shows by a preponderance of evidence that the violation was not 
 67.2   intentional and resulted from a bona fide error notwithstanding 
 67.3   the maintenance of procedures reasonably adopted to avoid the 
 67.4   error. 
 67.5      Subd. 7.  [MULTIPLE OBLIGORS.] When there are multiple 
 67.6   obligors under a retail installment contract, there must be no 
 67.7   more than one recovery under this section. 
 67.8      Subd. 8.  [LIABILITY OF ASSIGNEES.] Unless the assignee is 
 67.9   the person committing the violation of sections 168.66 to 
 67.10  168.77, an action for a violation of sections 168.66 to 168.77 
 67.11  which may be brought against a retail seller may be maintained 
 67.12  against an assignee of the retail seller only if the violation 
 67.13  for which the action is brought is apparent on the face of the 
 67.14  retail installment contract, except where the assignment is 
 67.15  involuntary. 
 67.16     Subd. 9.  [RECOVERY FOR MULTIPLE VIOLATIONS.] Multiple 
 67.17  violations in connection with a single retail installment 
 67.18  contract entitle the retail buyer to a single penalty under this 
 67.19  section.  A retail seller or assignee may not be held liable for 
 67.20  a penalty under subdivision 2 or 3 if the failure to comply also 
 67.21  violates the federal Truth-In-Lending Act and the retail buyer 
 67.22  has recovered statutory damages under that act. 
 67.23     Subd. 10.  [OFFSET FROM AMOUNT OWED TO CREDITOR OR 
 67.24  ASSIGNEE; RIGHTS OF DEFAULTING RETAIL BUYER.] A violation of 
 67.25  sections 168.66 to 168.77 does not impair rights on a debt.  A 
 67.26  retail buyer may not offset any amount for which a retail seller 
 67.27  or assignee is potentially liable to the person against any 
 67.28  amount owed by the person under a retail installment contract, 
 67.29  unless the amount of the retail seller or assignee's liability 
 67.30  under this section has been determined by a final judgment of a 
 67.31  court of competent jurisdiction in an action of which the person 
 67.32  was a party. 
 67.33     Subd. 11.  [LIMITATION OF ACTIONS.] Any action under this 
 67.34  section may be brought within one year from the date of the 
 67.35  occurrence of the violation.  This subdivision does not bar a 
 67.36  retail buyer from asserting a violation of sections 168.66 to 
 68.1   168.77 in an action to collect the debt which was brought more 
 68.2   than one year from the date of the occurrence of the violation 
 68.3   as a matter of defense by recoupment or setoff in the action. 
 68.4      Subd. 12.  [ATTORNEY FEES; RETAIL SELLER AND ASSIGNEE 
 68.5   REMEDIES.] The court may award attorney fees and costs to the 
 68.6   retail seller or assignee if the party complaining of a 
 68.7   violation of sections 168.66 to 168.77 has brought an action 
 68.8   knowing it to be groundless. 
 68.9      Sec. 5.  [EFFECTIVE DATE.] 
 68.10     Sections 1 to 3 are effective the day following final 
 68.11  enactment.  Section 4 is effective the day following final 
 68.12  enactment and applies to all actions commenced on or after that 
 68.13  date. 
 68.14                             ARTICLE 9
 68.15                           MISCELLANEOUS
 68.16     Section 1.  Minnesota Statutes 2002, section 13.462, 
 68.17  subdivision 2, is amended to read: 
 68.18     Subd. 2.  [PUBLIC DATA.] The names and addresses of 
 68.19  applicants for and recipients of benefits, aid, or assistance 
 68.20  through programs administered by any political subdivision, 
 68.21  state agency, or statewide system that are intended to assist 
 68.22  with the purchase ~~of~~, rehabilitation, or other purposes related 
 68.23  to housing or other real property are classified as public data 
 68.24  on individuals.  If an applicant or recipient is a corporation, 
 68.25  the names and addresses of the officers of the corporation are 
 68.26  public data on individuals.  If an applicant or recipient is a 
 68.27  partnership, the names and addresses of the partners are public 
 68.28  data on individuals.  The amount or value of benefits, aid, or 
 68.29  assistance received is public data. 
 68.30     Sec. 2.  Minnesota Statutes 2002, section 16B.35, 
 68.31  subdivision 1, is amended to read: 
 68.32     Subdivision 1.  [PERCENT OF APPROPRIATIONS FOR ART.] An 
 68.33  appropriation for the construction or alteration of any state 
 68.34  building may contain an amount not to exceed the lesser of 
 68.35  $100,000 or one percent of the total appropriation for the 
 68.36  building for the acquisition of works of art, excluding 
 69.1   landscaping, which may be an integral part of the building or 
 69.2   its grounds, attached to the building or grounds or capable of 
 69.3   being displayed in other state buildings.  Money used for this 
 69.4   purpose is available only for the acquisition of works of art to 
 69.5   be exhibited in areas of a building or its grounds accessible, 
 69.6   on a regular basis, to members of the public.  No more than ten 
 69.7   percent of the total amount available each fiscal year under 
 69.8   this subdivision may be used for administrative expenses, either 
 69.9   by the commissioner of administration or by any other entity to 
 69.10  whom the commissioner delegates administrative authority.  For 
 69.11  the purposes of this section "state building" means a building 
 69.12  the construction or alteration of which is paid for wholly or in 
 69.13  part by the state. 
 69.14     Sec. 3.  Minnesota Statutes 2002, section 43A.24, 
 69.15  subdivision 2, is amended to read: 
 69.16     Subd. 2.  [OTHER ELIGIBLE PERSONS.] The following persons 
 69.17  are eligible for state paid life insurance and hospital, 
 69.18  medical, and dental benefits as determined in applicable 
 69.19  collective bargaining agreements or by the commissioner or by 
 69.20  plans pursuant to section 43A.18, subdivision 6, or by the board 
 69.21  of regents for employees of the University of Minnesota not 
 69.22  covered by collective bargaining agreements.  Coverages made 
 69.23  available, including optional coverages, are as contained in the 
 69.24  plan established pursuant to section 43A.18, subdivision 2: 
 69.25     (a) a member of the state legislature, provided that 
 69.26  changes in benefits resulting in increased costs to the state 
 69.27  shall not be effective until expiration of the term of the 
 69.28  members of the existing house of representatives.  An eligible 
 69.29  member of the state legislature may decline to be enrolled for 
 69.30  state paid coverages by filing a written waiver with the 
 69.31  commissioner.  The waiver shall not prohibit the member from 
 69.32  enrolling the member or dependents for optional coverages, 
 69.33  without cost to the state, as provided for in section 43A.26.  A 
 69.34  member of the state legislature who returns from a leave of 
 69.35  absence to a position previously occupied in the civil service 
 69.36  shall be eligible to receive the life insurance and hospital, 
 70.1   medical, and dental benefits to which the position is entitled; 
 70.2      (b) an employee of the legislature or an employee of a 
 70.3   permanent study or interim committee or commission or a state 
 70.4   employee on leave of absence to work for the legislature, during 
 70.5   a regular or special legislative session, as determined by the 
 70.6   legislative coordinating commission; 
 70.7      (c) a judge of the appellate courts or an officer or 
 70.8   employee of these courts; a judge of the district court, a judge 
 70.9   of county court, or a judge of county municipal court; a 
 70.10  district court referee, judicial officer, court reporter, or law 
 70.11  clerk; a district administrator; an employee of the office of 
 70.12  the district administrator that is not in the second or fourth 
 70.13  judicial district; a court administrator or employee of the 
 70.14  court administrator in a judicial district under section 
 70.15  480.181, subdivision 1, paragraph (b), and a guardian ad litem 
 70.16  program employee; 
 70.17     (d) a salaried employee of the public employees retirement 
 70.18  association; 
 70.19     (e) a full-time military or civilian officer or employee in 
 70.20  the unclassified service of the department of military affairs 
 70.21  whose salary is paid from state funds; 
 70.22     (f) a salaried employee of the Minnesota historical 
 70.23  society, whether paid from state funds or otherwise, who is not 
 70.24  a member of the governing board; 
 70.25     (g) an employee of the regents of the University of 
 70.26  Minnesota; 
 70.27     (h) notwithstanding section 43A.27, subdivision 3, an 
 70.28  employee of the state of Minnesota or the regents of the 
 70.29  University of Minnesota who is at least 60 and not yet 65 years 
 70.30  of age on July 1, 1982, who is otherwise eligible for employee 
 70.31  and dependent insurance and benefits pursuant to section 43A.18 
 70.32  or other law, who has at least 20 years of service and retires, 
 70.33  earlier than required, within 60 days of March 23, 1982; or an 
 70.34  employee who is at least 60 and not yet 65 years of age on July 
 70.35  1, 1982, who has at least 20 years of state service and retires, 
 70.36  earlier than required, from employment at Rochester state 
 71.1   hospital after July 1, 1981; or an employee who is at least 55 
 71.2   and not yet 65 years of age on July 1, 1982, and is covered by 
 71.3   the Minnesota state retirement system correctional employee 
 71.4   retirement plan or the state patrol retirement fund, who has at 
 71.5   least 20 years of state service and retires, earlier than 
 71.6   required, within 60 days of March 23, 1982.  For purposes of 
 71.7   this clause, a person retires when the person terminates active 
 71.8   employment in state or University of Minnesota service and 
 71.9   applies for a retirement annuity.  Eligibility shall cease when 
 71.10  the retired employee attains the age of 65, or when the employee 
 71.11  chooses not to receive the annuity that the employee has applied 
 71.12  for.  The retired employee shall be eligible for coverages to 
 71.13  which the employee was entitled at the time of retirement, 
 71.14  subject to any changes in coverage through collective bargaining 
 71.15  or plans established pursuant to section 43A.18, for employees 
 71.16  in positions equivalent to that from which retired, provided 
 71.17  that the retired employee shall not be eligible for state-paid 
 71.18  life insurance.  Coverages shall be coordinated with relevant 
 71.19  health insurance benefits provided through the federally 
 71.20  sponsored Medicare program; 
 71.21     (i) an employee of an agency of the state of Minnesota 
 71.22  identified through the process provided in this paragraph who is 
 71.23  eligible to retire prior to age 65.  The commissioner and the 
 71.24  exclusive representative of state employees shall enter into 
 71.25  agreements under section 179A.22 to identify employees whose 
 71.26  positions are in programs that are being permanently eliminated 
 71.27  or reduced due to federal or state policies or practices.  
 71.28  Failure to reach agreement identifying these employees is not 
 71.29  subject to impasse procedures provided in chapter 179A.  The 
 71.30  commissioner must prepare a plan identifying eligible employees 
 71.31  not covered by a collective bargaining agreement in accordance 
 71.32  with the process outlined in section 43A.18, subdivisions 2 and 
 71.33  3.  For purposes of this paragraph, a person retires when the 
 71.34  person terminates active employment in state service and applies 
 71.35  for a retirement annuity.  Eligibility ends as provided in the 
 71.36  agreement or plan, but must cease at the end of the month in 
 72.1   which the retired employee chooses not to receive an annuity, or 
 72.2   the employee is eligible for employer-paid health insurance from 
 72.3   a new employer.  The retired employees shall be eligible for 
 72.4   coverages to which they were entitled at the time of retirement, 
 72.5   subject to any changes in coverage through collective bargaining 
 72.6   or plans established under section 43A.18 for employees in 
 72.7   positions equivalent to that from which they retired, provided 
 72.8   that the retired employees shall not be eligible for state-paid 
 72.9   life insurance; 
 72.10     (j) employees of the state board of public defense, with 
 72.11  eligibility determined by the state board of public defense in 
 72.12  consultation with the commissioner of employee relations; ~~and~~ 
 72.13     (k) employees of the health data institute under section 
 72.14  62J.451, subdivision 12, as paid for by the health data 
 72.15  institute; 
 72.16     (l) employees of supporting organizations of Minnesota 
 72.17  Technology, Inc., established after July 1, 2003, under section 
 72.18  116O.05, subdivision 4, as paid for by the supporting 
 72.19  organization; and 
 72.20     (m) employees of Minnesota Project Innovation, as paid for 
 72.21  by Minnesota Project Innovation. 
 72.22     Sec. 4.  Minnesota Statutes 2002, section 43A.27, 
 72.23  subdivision 2, is amended to read: 
 72.24     Subd. 2.  [ELECTIVE ELIGIBILITY.] The following persons, if 
 72.25  not otherwise covered by section 43A.24, may elect coverage for 
 72.26  themselves or their dependents at their own expense: 
 72.27     (a) a state employee, including persons on layoff from a 
 72.28  civil service position as provided in collective bargaining 
 72.29  agreements or a plan established pursuant to section 43A.18; 
 72.30     (b) an employee of the board of regents of the University 
 72.31  of Minnesota, including persons on layoff, as provided in 
 72.32  collective bargaining agreements or by the board of regents; 
 72.33     (c) an officer or employee of the state agricultural 
 72.34  society, state horticultural society, Sibley house association, 
 72.35  ~~Minnesota humanities commission,~~ Minnesota area industry labor 
 72.36  management councils, Minnesota international center, Minnesota 
 73.1   academy of science, science museum of Minnesota, Minnesota 
 73.2   safety council, state office of disabled American veterans, 
 73.3   state office of the American Legion and its auxiliary, state 
 73.4   office of veterans of foreign wars and its auxiliary, or state 
 73.5   office of the Military Order of the Purple Heart; 
 73.6      (d) a civilian employee of the adjutant general who is paid 
 73.7   from federal funds and who is not eligible for benefits from any 
 73.8   federal civilian employee group life insurance or health 
 73.9   benefits program; and 
 73.10     (e) an officer or employee of the state capitol credit 
 73.11  union or the highway credit union. 
 73.12     Sec. 5.  Minnesota Statutes 2002, section 116J.64, 
 73.13  subdivision 2, is amended to read: 
 73.14     Subd. 2.  "Indian" means a person ~~of one-quarter or more~~ 
 73.15  ~~Indian blood and~~ who is an enrolled member of a federally 
 73.16  recognized Minnesota based band or tribe. 
 73.17     Sec. 6.  Minnesota Statutes 2002, section 116O.03, 
 73.18  subdivision 2, is amended to read: 
 73.19     Subd. 2.  [BOARD OF DIRECTORS.] The corporation is governed 
 73.20  by a board of ~~15~~ directors.  The selection, membership terms, 
 73.21  compensation, removal, and filling of vacancies of ~~public~~ 
 73.22  members of the board are as provided in ~~section 15.0575~~ the 
 73.23  corporation's bylaws.  ~~Membership of the board consists of the~~ 
 73.24  ~~following:~~ 
 73.25     ~~(1) a person from the private sector, appointed by the~~ 
 73.26  ~~governor, who shall act as chair and serve as chief science~~ 
 73.27  ~~advisor to the governor and the legislature;~~ 
 73.28     ~~(2) the dean of the institute of technology of the~~ 
 73.29  ~~University of Minnesota;~~ 
 73.30     ~~(3) the dean of the graduate school of the University of~~ 
 73.31  ~~Minnesota;~~ 
 73.32     ~~(4) the commissioner of the department of trade and~~ 
 73.33  ~~economic development;~~ 
 73.34     ~~(5) the commissioner of administration;~~ 
 73.35     ~~(6) six members appointed by the governor, at least one of~~ 
 73.36  ~~whom must be a person from a public post-secondary system other~~ 
 74.1   ~~than the University of Minnesota; and~~ 
 74.2      ~~(7) one member who is not a member of the legislature~~ 
 74.3   ~~appointed by each of the following:  the speaker of the house of~~ 
 74.4   ~~representatives, the house of representatives minority leader,~~ 
 74.5   ~~the senate majority leader, and the senate minority leader.~~ 
 74.6      ~~At least 50 percent of the members described in clauses (6)~~ 
 74.7   ~~and (7) must live outside the metropolitan area as defined in~~ 
 74.8   ~~section 473.121, subdivision 2, and must have experience in~~ 
 74.9   ~~manufacturing, the technology industry, or research and~~ 
 74.10  ~~development.~~  
 74.11     Sec. 7.  Minnesota Statutes 2002, section 116O.091, 
 74.12  subdivision 7, is amended to read: 
 74.13     Subd. 7.  [ADVISORY COMMITTEES.] An advisory committee is 
 74.14  created to assist in selecting vendors and evaluating the 
 74.15  corporation's project outreach activities.  The advisory 
 74.16  committee shall include the president of the University of 
 74.17  Minnesota or the president's designee, the commissioner of trade 
 74.18  and economic development or the commissioner's designee, the 
 74.19  chair of the Minnesota Technology, Inc., board of directors or 
 74.20  the chair's designee, a member of the state senate appointed by 
 74.21  the subcommittee on committees of the senate rules and 
 74.22  administration committee, a member of the house of 
 74.23  representatives appointed by the speaker, and at least five 
 74.24  users of project outreach services appointed by the named 
 74.25  members.  The advisory committee expires June 30, 2004. 
 74.26     Sec. 8.  Minnesota Statutes 2002, section 116O.12, is 
 74.27  amended to read: 
 74.28     116O.12 [MINNESOTA TECHNOLOGY ACCOUNT.] 
 74.29     ~~(a)~~ The Minnesota technology account is in the special 
 74.30  revenue fund.  Money in the account not needed for the immediate 
 74.31  purposes of the corporation may be invested by the state board 
 74.32  of investment in any way authorized by section 11A.24.  Money in 
 74.33  the account is appropriated to the corporation to be used as 
 74.34  provided in this chapter.  
 74.35     ~~(b) The account consists of:~~  
 74.36     ~~(1) money appropriated and transferred from other state~~ 
 75.1   ~~funds;~~ 
 75.2      ~~(2) fees and charges collected by the corporation;~~ 
 75.3      ~~(3) income from investments and purchases;~~ 
 75.4      ~~(4) revenue from loans, rentals, royalties, dividends, and~~ 
 75.5   ~~other proceeds collected in connection with lawful corporate~~ 
 75.6   ~~purposes;~~ 
 75.7      ~~(5) gifts, donations, and bequests made to the corporation;~~ 
 75.8   ~~and~~ 
 75.9      ~~(6) other income credited to the account by law.~~  
 75.10     Sec. 9.  Minnesota Statutes 2002, section 154.18, is 
 75.11  amended to read: 
 75.12     154.18 [FEES.] 
 75.13     (a) The fees collected, as required in this chapter, 
 75.14  chapter 214, and the rules of the board, shall be paid in 
 75.15  advance to the executive secretary of the board.  The executive 
 75.16  secretary shall deposit the fees in the state treasury, to be 
 75.17  disbursed by the executive secretary on the order of the chair 
 75.18  in payment of expenses lawfully incurred by the board. 
 75.19     (b) The board shall charge the following fees:  
 75.20     (1) examination and certificate, registered barber, $65; 
 75.21     (2) examination and certificate, apprentice, $60; 
 75.22     (3) examination, instructor, $160; 
 75.23     (4) certificate, instructor, $45; 
 75.24     (5) temporary teacher or apprentice permit, $50; 
 75.25     (6) renewal of license, registered barber, $50; 
 75.26     (7) renewal of license, apprentice, $45; 
 75.27     (8) renewal of license, instructor, $60; 
 75.28     (9) renewal of temporary teacher permit, $35; 
 75.29     (10) student permit, $25; 
 75.30     (11) initial shop registration, $60; 
 75.31     (12) initial school registration, $1,010; 
 75.32     (13) renewal shop registration, $60; 
 75.33     (14) renewal school registration, $260; 
 75.34     (15) restoration of registered barber license, $75; 
 75.35     (16) restoration of apprentice license, $70; 
 75.36     (17) restoration of shop registration, $85; 
 76.1      (18) change of ownership or location, $35; 
 76.2      (19) duplicate license, $20; and 
 76.3      (20) home study course, $75. 
 76.4      Sec. 10.  Minnesota Statutes 2002, section 216A.03, 
 76.5   subdivision 1, is amended to read: 
 76.6      Subdivision 1.  [MEMBERS.] The public utilities commission 
 76.7   shall consist of five members.  The terms of members shall be 
 76.8   six years and until their successors have been appointed and 
 76.9   qualified.  Each commissioner shall be appointed by the governor 
 76.10  by and with the advice and consent of the senate.  Not more than 
 76.11  three commissioners shall belong to the same political party.  
 76.12  At least ~~one commissioner~~ two commissioners must ~~have been~~ be 
 76.13  domiciled at the time of appointment outside the seven-county 
 76.14  metropolitan area.  Of these two commissioners, at least one 
 76.15  must be domiciled outside a city of the first or second class, 
 76.16  as defined in section 410.01, at the time of initial 
 76.17  appointment.  If the membership of the commission after ~~July 31,~~ 
 76.18  ~~1986~~ August 1, 2003, does not consist of at least ~~one member~~ two 
 76.19  members domiciled at the time of appointment outside the 
 76.20  seven-county metropolitan area, the membership shall conform to 
 76.21  this requirement following normal attrition of the present 
 76.22  commissioners.  The governor when selecting commissioners shall 
 76.23  give consideration to persons learned in the law or persons who 
 76.24  have engaged in the profession of engineering, public 
 76.25  accounting, property and utility valuation, finance, physical or 
 76.26  natural sciences, production agriculture, or natural resources 
 76.27  as well as being representative of the general public. 
 76.28     For purposes of this subdivision, "seven-county 
 76.29  metropolitan area" means Anoka, Carver, Dakota, Hennepin, 
 76.30  Ramsey, Scott, and Washington counties. 
 76.31     Sec. 11.  Minnesota Statutes 2002, section 326.105, is 
 76.32  amended to read: 
 76.33     326.105 [FEES.] 
 76.34     The fee for licensure or renewal of licensure as an 
 76.35  architect, professional engineer, land surveyor, landscape 
 76.36  architect, or geoscience professional is ~~$120~~ $132 per biennium. 
 77.1   The fee for certification as a certified interior designer or 
 77.2   for renewal of the certificate is ~~$120~~ $132 per biennium.  The 
 77.3   fee for an architect applying for original certification as a 
 77.4   certified interior designer is $50 per biennium.  The initial 
 77.5   license or certification fee for all professions is ~~$120~~ $132.  
 77.6   The renewal fee shall be paid biennially on or before June 30 of 
 77.7   each even-numbered year.  The renewal fee, when paid by mail, is 
 77.8   not timely paid unless it is postmarked on or before June 30 of 
 77.9   each even-numbered year.  The application fee is $25 for 
 77.10  in-training applicants and $75 for professional license 
 77.11  applicants. 
 77.12     The fee for monitoring licensing examinations for 
 77.13  applicants is $25, payable by the applicant. 
 77.14     Sec. 12.  Minnesota Statutes 2002, section 461.12, 
 77.15  subdivision 2, is amended to read: 
 77.16     Subd. 2.  [ADMINISTRATIVE PENALTIES; LICENSEES.] (a) If a 
 77.17  licensee or employee of a licensee sells tobacco to a person 
 77.18  under the age of 18 years, or violates any other provision of 
 77.19  this chapter, the licensee shall be charged an administrative 
 77.20  penalty of ~~$75~~ up to $500.  An administrative penalty of ~~$200~~ up 
 77.21  to a maximum of $1,000 must be imposed for a second violation at 
 77.22  the same location within 24 months after the initial violation.  
 77.23  An administrative penalty of up to a maximum of $5,000 may be 
 77.24  imposed for a third violation at the same location within 24 
 77.25  months after the initial violation.  For a ~~third~~ subsequent 
 77.26  violation at the same location within 24 months after the 
 77.27  initial violation, both of the following may be imposed:  
 77.28     (1) an administrative penalty of ~~$250 must be imposed,~~ 
 77.29  ~~and~~ up to $5,000; and 
 77.30     (2) the licensee's authority to sell tobacco at that 
 77.31  location ~~must~~ may be suspended for ~~not less than~~ up to a maximum 
 77.32  of seven days. 
 77.33     (b) The licensing authority may suspend or revoke a tobacco 
 77.34  license if the licensee fails to act on any of the following: 
 77.35     (1) imposition of disciplinary sanctions of an employee 
 77.36  with multiple noncompliant sales to a minor; 
 78.1      (2) failure to effectively train or retrain any employee on 
 78.2   applicable laws and how to prevent sales of tobacco to minors; 
 78.3   or 
 78.4      (3) failure to adopt and enforce a written employee policy 
 78.5   to prevent the sale of tobacco to minors. 
 78.6      (c) No suspension or penalty may take effect until the 
 78.7   licensee has received notice, served personally or by mail, of 
 78.8   the alleged violation and an opportunity for a hearing before a 
 78.9   person authorized by the licensing authority to conduct the 
 78.10  hearing. 
 78.11     (d) In determining the amount of a penalty and the length 
 78.12  of a license suspension, the local licensing authority shall 
 78.13  take into consideration as mitigating circumstances evidence 
 78.14  provided by a licensee of a licensee's adoption and enforcement 
 78.15  of a written employee policy to prevent the sale of tobacco to 
 78.16  minors, a licensee's training program to instruct employees on 
 78.17  applicable laws and how to prevent sales of tobacco to minors, a 
 78.18  licensee's adoption and imposition of disciplinary sanctions for 
 78.19  employee noncompliance with the licensee's policies, a 
 78.20  licensee's policy of conducting voluntary internal compliance 
 78.21  checks to test compliance with section 609.685, and whether a 
 78.22  licensee or a licensee's employee verified the age of the 
 78.23  customer during the transaction in question and reasonably 
 78.24  relied on the age verification to complete the sale.  A decision 
 78.25  that a violation has occurred must be in writing and must 
 78.26  include a summary of the mitigating circumstances considered by 
 78.27  the local licensing authority in assessing a penalty or a 
 78.28  license suspension.  
 78.29     Sec. 13.  Minnesota Statutes 2002, section 461.19, is 
 78.30  amended to read: 
 78.31     461.19 [EFFECT ON LOCAL ORDINANCE; NOTICE.] 
 78.32     Sections 461.12 to 461.18 do not preempt a local ordinance 
 78.33  that provides for more restrictive regulation of tobacco sales, 
 78.34  except that on and after the effective date of this act, a 
 78.35  licensing authority shall not assess or impose a penalty on a 
 78.36  licensee or an employee of a licensee that is greater than the 
 79.1   administrative penalties set forth in section 461.12, 
 79.2   subdivisions 2 and 3.  A governing body shall give notice of its 
 79.3   intention to consider adoption or substantial amendment of any 
 79.4   local ordinance required under section 461.12 or permitted under 
 79.5   this section.  The governing body shall take reasonable steps to 
 79.6   send notice by mail at least 30 days prior to the meeting to the 
 79.7   last known address of each licensee or person required to hold a 
 79.8   license under section 461.12.  The notice shall state the time, 
 79.9   place, and date of the meeting and the subject matter of the 
 79.10  proposed ordinance. 
 79.11     Sec. 14.  Minnesota Statutes 2002, section 624.20, 
 79.12  subdivision 1, is amended to read: 
 79.13     Subdivision 1.  (a) As used in sections 624.20 to 624.25, 
 79.14  the term "fireworks" means any substance or combination of 
 79.15  substances or article prepared for the purpose of producing a 
 79.16  visible or an audible effect by combustion, explosion, 
 79.17  deflagration, or detonation, and includes blank cartridges, toy 
 79.18  cannons, and toy canes in which explosives are used, the type of 
 79.19  balloons which require fire underneath to propel them, 
 79.20  firecrackers, torpedoes, skyrockets, Roman candles, daygo bombs, 
 79.21  sparklers other than those specified in paragraph (c), or other 
 79.22  fireworks of like construction, and any fireworks containing any 
 79.23  explosive or inflammable compound, or any tablets or other 
 79.24  device containing any explosive substance and commonly used as 
 79.25  fireworks.  
 79.26     (b) The term "fireworks" shall not include toy pistols, toy 
 79.27  guns, in which paper caps containing 25/100 grains or less of 
 79.28  explosive compound are used and toy pistol caps which contain 
 79.29  less than 20/100 grains of explosive mixture. 
 79.30     (c) The term also does not include wire or wood sparklers 
 79.31  of not more than 100 grams of mixture per item, other sparkling 
 79.32  items which are nonexplosive and nonaerial and contain 75 grams 
 79.33  or less of chemical mixture per tube or a total of 200 grams or 
 79.34  less for multiple tubes, snakes and glow worms, smoke devices, 
 79.35  or trick noisemakers which include paper streamers, party 
 79.36  poppers, string poppers, snappers, and drop pops, each 
 80.1   consisting of not more than twenty-five hundredths grains of 
 80.2   explosive mixture.  The use of items listed in this paragraph is 
 80.3   not permitted on public property.  This paragraph does not 
 80.4   authorize the purchase of items listed in it by persons younger 
 80.5   than 18 years of age.  The age of a purchaser of items listed in 
 80.6   this paragraph must be verified by photographic identification. 
 80.7      (d) A local unit of government may impose an annual license 
 80.8   fee for the retail sale of items authorized under paragraph 
 80.9   (c).  The annual license fee of each retail seller that is in 
 80.10  the business of selling only the items authorized under 
 80.11  paragraph (c) may not exceed $350, and the annual license of 
 80.12  each other retail seller may not exceed $100.  A local unit of 
 80.13  government may not: 
 80.14     (1) impose any fee or charge, other than the fee authorized 
 80.15  by this paragraph, on the retail sale of items authorized under 
 80.16  paragraph (c); 
 80.17     (2) prohibit or restrict the display of items for retail 
 80.18  sale authorized under paragraph (c); or 
 80.19     (3) impose on a retail seller any financial guarantee 
 80.20  requirements, including bonding or insurance provisions, 
 80.21  containing restrictions or conditions not imposed on the same 
 80.22  basis on all other business licensees. 
 80.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 80.24  following final enactment. 
 80.25     Sec. 15.  [UTILITY REGULATORY REVIEW; RURAL CONCERNS.] 
 80.26     (a) The chair of the public utilities commission and the 
 80.27  commissioner of commerce shall jointly review the organizational 
 80.28  structure and regulatory procedures by which energy and 
 80.29  telecommunications service providers are regulated by the state. 
 80.30  By January 15, 2004, the chair and the commissioner shall issue 
 80.31  a report on that review to the chairs of the house and senate 
 80.32  committees with jurisdiction over utility regulation, and shall 
 80.33  include recommendations for executive and legislative action to 
 80.34  ensure the state has the most representative, cost-effective, 
 80.35  and efficient utility regulatory system possible. 
 80.36     (b) A primary focus of this review must be to consider and 
 81.1   make recommendations for actions that could be taken to ensure 
 81.2   the utility regulatory structure and process takes into account 
 81.3   the issues and concerns of rural and center city service 
 81.4   providers, residents, and businesses.  Items for consideration 
 81.5   must include: 
 81.6      (1) requiring the commission to hold hearings in rural 
 81.7   Minnesota, both on a regular basis and when an issue of special 
 81.8   concern to rural Minnesota is before the commission; and 
 81.9      (2) the establishment of a screening process for applicants 
 81.10  for the public utilities commission to demonstrate their 
 81.11  understanding and experience with regard to rural and center 
 81.12  city utility service issues. 
 81.13     Sec. 16.  [TRANSFER OF RESPONSIBILITIES FOR INDIAN BUSINESS 
 81.14  LOAN PROGRAM.] 
 81.15     The responsibilities of the Indian Affairs Council in 
 81.16  administering the Indian Business Loan program under Minnesota 
 81.17  Statutes, section 116J.64, are transferred to the department of 
 81.18  trade and economic development, which may enter into an 
 81.19  agreement with the governing body of a federally recognized 
 81.20  Indian tribe in Minnesota to administer the program or a portion 
 81.21  of the program. 
 81.22     Sec. 17.  [SEASONAL AGRICULTURAL OPERATIONS; MANUFACTURED 
 81.23  HOME PARK EXCLUSIONS.] 
 81.24     Notwithstanding Minnesota Statutes, section 327.14, 
 81.25  subdivision 3, and section 327.23, subdivision 2, the term 
 81.26  "manufactured home park" shall not be construed to include up to 
 81.27  four manufactured homes maintained by an individual or a company 
 81.28  on premises associated with a seasonal agricultural operation 
 81.29  and used exclusively to house labor or other personnel occupied 
 81.30  in such operation if: 
 81.31     (1) these manufactured homes are equipped with indoor 
 81.32  plumbing facilities and meet the standards established in 
 81.33  Minnesota Rules, parts 4630.0600, subpart 1, 4630.0700, 
 81.34  4630.1200, 4630.3500, and 4715.0310; 
 81.35     (2) these manufactured homes provide at least 80 square 
 81.36  feet of indoor living space per inhabitant of each home; 
 82.1      (3) these manufactured homes are installed in compliance 
 82.2   with the state building code under Minnesota Rules, chapter 
 82.3   1350; 
 82.4      (4) these manufactured homes are in compliance with 
 82.5   Minnesota Statutes, section 326.243; 
 82.6      (5) the individual or company maintaining these 
 82.7   manufactured homes, with the assistance and approval of the city 
 82.8   or town where the homes are located, develops a plan to be 
 82.9   posted in conspicuous locations near the homes for the 
 82.10  sheltering, or the safe evacuation to a safe place of shelter, 
 82.11  of the residents of the homes in time of severe weather 
 82.12  conditions, such as tornadoes, high winds, and floods; and 
 82.13     (6) the individual or company maintains the homes in a 
 82.14  clean, orderly, and sanitary condition. 
 82.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 82.16  following final enactment and expires two years after the 
 82.17  effective date. 
 82.18     Sec. 18.  [REPEALER.] 
 82.19     (a) Minnesota Statutes, section 155A.03, subdivisions 14 
 82.20  and 15; and 155A.07, subdivision 9, are repealed. 
 82.21     (b) Minnesota Rules, part 2100.9300, subpart 1, is repealed.
 82.22     Sec. 19.  [EFFECTIVE DATE.] 
 82.23     (a) Sections 12 and 13 are effective the day following 
 82.24  final enactment and apply to administrative penalties imposed on 
 82.25  or after that date. 
 82.26     (b) Sections 9, 15, and 18 are effective July 1, 2003. 
 82.27     (c) Section 10 is effective June 30, 2004.