1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 jobs, economic development, and human services 1.4 purposes; establishing and modifying certain programs; 1.5 providing for accounts, assessments and fees; making 1.6 changes to programs for children and families; 1.7 amending Minnesota Statutes 2004, sections 41A.09, 1.8 subdivision 2a; 60A.14, subdivision 1; 60K.55, 1.9 subdivision 2; 72A.20, by adding a subdivision; 1.10 72B.04, subdivision 10; 82B.09, subdivision 1; 1.11 115C.07, subdivision 3; 115C.09, subdivision 3h; 1.12 115C.13; 116C.779, subdivision 2; 116J.551, 1.13 subdivision 1; 116J.571; 116J.572; 116J.574; 116J.575, 1.14 as amended; 116J.63, subdivision 2; 116J.8731, 1.15 subdivision 5; 116J.8747, subdivision 2; 116J.994, 1.16 subdivisions 7, 9; 116L.03, subdivision 2; 116L.05, by 1.17 adding a subdivision; 116L.17, subdivision 1; 116L.20, 1.18 subdivision 2; 119B.02, by adding a subdivision; 1.19 119B.13, subdivision 1, by adding a subdivision; 1.20 183.41, by adding a subdivision; 183.411, subdivisions 1.21 2a, 3; 183.42; 183.44, subdivision 1; 183.51, 1.22 subdivision 2, by adding a subdivision; 183.545; 1.23 183.57; 216C.41, subdivisions 2, 5, 5a; 237.11; 1.24 237.295, subdivisions 1, 2; 239.011, subdivision 2; 1.25 239.05, subdivision 10b, by adding a subdivision; 1.26 239.09; 239.101, subdivision 3; 239.75, subdivisions 1.27 1, 5; 239.761; 239.77, by adding a subdivision; 1.28 239.79, subdivision 4; 239.791, subdivisions 1, 7, 8, 1.29 15; 239.792; 245A.10, subdivision 4; 254A.035, 1.30 subdivision 2; 254A.04; 256.01, by adding 1.31 subdivisions; 256.741, subdivision 4; 256B.0924, 1.32 subdivision 3; 256B.093, subdivision 1; 256D.06, 1.33 subdivisions 5, 7, by adding a subdivision; 256I.05, 1.34 subdivision 1e; 256J.12, subdivision 1, by adding a 1.35 subdivision; 256J.37, subdivision 3a; 256J.515; 1.36 256J.751, subdivision 2; 256J.95, by adding 1.37 subdivisions; 256K.35, by adding a subdivision; 1.38 260.835; 268.19, subdivision 1; 296A.01, subdivisions 1.39 2, 7, 8, 14, 19, 20, 22, 23, 24, 25, 26, 28; 298.22, 1.40 by adding a subdivision; 326.975, subdivision 1; 1.41 345.47, subdivisions 3, 3a; 373.40, subdivisions 1, 3; 1.42 462A.05, subdivision 3a; 462A.33, subdivision 2; 1.43 517.08, subdivisions 1b, 1c; Laws 1999, chapter 224, 1.44 section 7, as amended; proposing coding for new law in 1.45 Minnesota Statutes, chapters 45; 116L; 237; 256K; 1.46 325F; proposing coding for new law as Minnesota 2.1 Statutes, chapter 59B; repealing Minnesota Statutes 2.2 2004, sections 45.0295; 116J.573; 116J.58, subdivision 2.3 3; 116L.05, subdivision 4; 119B.074; 239.05, 2.4 subdivisions 6a, 6b; 256D.54, subdivision 3; 462C.15; 2.5 Laws 2003, First Special Session chapter 14, article 2.6 9, section 34; Minnesota Rules, parts 9500.1254; 2.7 9500.1256. 2.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.9 ARTICLE 1 2.10 JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS 2.11 Section 1. [JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.] 2.12 The sums shown in the columns marked "APPROPRIATIONS" are 2.13 appropriated from the general fund, or another named fund, to 2.14 the agencies and for the purposes specified in this article, to 2.15 be available for the fiscal years indicated for each purpose. 2.16 The figures "2006" and "2007," where used in this article, mean 2.17 that the appropriation or appropriations listed under them are 2.18 available for the fiscal year ending June 30, 2006, or June 30, 2.19 2007, respectively. The term "first year" means the fiscal year 2.20 ending June 30, 2006, and the term "second year" means the 2.21 fiscal year ending June 30, 2007. 2.22 SUMMARY BY FUND 2.23 2006 2007 TOTAL 2.24 General $ 143,228,000 $ 137,600,000 $ 280,828,000 2.25 Workforce 2.26 Development 8,270,000 8,270,000 16,540,000 2.27 Remediation 700,000 700,000 1,400,000 2.28 Petroleum Tank 2.29 Cleanup 1,084,000 1,084,000 2,168,000 2.30 Workers' 2.31 Compensation 21,725,000 21,725,000 43,450,000 2.32 TOTAL $ 175,007,000 $ 169,379,000 $ 344,386,000 2.33 APPROPRIATIONS 2.34 Available for the Year 2.35 Ending June 30 2.36 2006 2007 2.37 Sec. 2. EMPLOYMENT AND 2.38 ECONOMIC DEVELOPMENT 2.39 Subdivision 1. Total 2.40 Appropriation $ 46,116,000 $ 46,115,000 2.41 Summary by Fund 2.42 General 37,596,000 37,595,000 2.43 Remediation 700,000 700,000 3.1 Workforce 3.2 Development 7,820,000 7,820,000 3.3 The amounts that may be spent from this 3.4 appropriation for each program are 3.5 specified in the following subdivisions. 3.6 Subd. 2. Business and 3.7 Community Development 7,819,000 7,818,000 3.8 Summary by Fund 3.9 General 7,119,000 7,118,000 3.10 Remediation 700,000 700,000 3.11 (a)(1) $150,000 the first year and 3.12 $150,000 the second year are from the 3.13 general fund for a grant under 3.14 Minnesota Statutes, section 116J.421, 3.15 to the Rural Policy and Development 3.16 Center at Minnesota State University. 3.17 The grant shall be used for research 3.18 and policy analysis on emerging 3.19 economic and social issues in rural 3.20 Minnesota, to serve as a policy 3.21 resource center for rural Minnesota 3.22 communities, to encourage collaboration 3.23 across higher education institutions to 3.24 provide interdisciplinary team 3.25 approaches to research and 3.26 problem-solving in rural communities, 3.27 and to administer overall operations of 3.28 the center. 3.29 (2) The grant shall be provided upon 3.30 the condition that each 3.31 state-appropriated dollar be matched 3.32 with a nonstate dollar. Acceptable 3.33 matching funds are nonstate 3.34 contributions that the center has 3.35 received and have not been used to 3.36 match previous state grants. Any funds 3.37 not spent the first year are available 3.38 the second year. 3.39 (b) $100,000 the first year and 3.40 $100,000 the second year are from the 3.41 general fund for a grant to the 3.42 Metropolitan Economic Development 3.43 Association for continuing minority 3.44 business development programs in the 3.45 metropolitan area. 3.46 (c) $150,000 the first year and 3.47 $150,000 the second year are from the 3.48 general fund for a grant to 3.49 WomenVenture for women's business 3.50 development programs. 3.51 (d) $250,000 the first year and 3.52 $250,000 the second year are from the 3.53 general fund to establish a 3.54 methamphetamine laboratory cleanup 3.55 revolving loan fund pursuant to 3.56 proposed legislation. This is a 3.57 onetime appropriation. These funds are 3.58 available until spent. 3.59 (e) $18,000 in the first year and 3.60 $17,000 in the second year are for 4.1 onetime grants to the Riverbend Center 4.2 for Entrepreneurial Facilitation in 4.3 Blue Earth County. The grants must be 4.4 used to continue a program to assist in 4.5 the development of entrepreneurs and 4.6 small businesses. The grants must be 4.7 provided on the condition that each 4.8 state-appropriated dollar be matched 4.9 with a nonstate dollar. Any balance in 4.10 the first year does not cancel but is 4.11 available in the second year. 4.12 Grant recipients must report to the 4.13 commissioner by February 1 in each of 4.14 the two years after the year of receipt 4.15 of the grant. The report must detail 4.16 the number of customers served; the 4.17 number of businesses started, 4.18 stabilized, or expanded; the number of 4.19 jobs created and retained; and business 4.20 success rates. The commissioner shall 4.21 report to the legislature on the 4.22 program's assistance to entrepreneurs 4.23 and small businesses. The report shall 4.24 contain an evaluation of the results. 4.25 (f) $100,000 the first year and 4.26 $100,000 the second year are to help 4.27 small businesses access federal funds 4.28 through the federal Small Business 4.29 Innovation Research Program and the 4.30 federal Small Business Technology 4.31 Transfer Program. Department services 4.32 must include maintaining connections to 4.33 11 federal programs, assessment of 4.34 specific funding opportunities, review 4.35 of funding proposals, referral to 4.36 specific consulting services, and 4.37 conduct of training workshops 4.38 throughout the state. This 4.39 appropriation is added to the agency's 4.40 base. 4.41 (g) $50,000 the first year and $50,000 4.42 the second year are for grants to the 4.43 Minnesota Inventors Congress. 4.44 (h) $15,000 the first year is for a 4.45 onetime grant to La Creche Early 4.46 Childhood Centers, Inc. of Minneapolis. 4.47 Subd. 3. Workforce Partnerships 7,910,000 7,910,000 4.48 Summary by Fund 4.49 General 7,035,000 7,035,000 4.50 Workforce 4.51 Development 875,000 875,000 4.52 (a) $6,785,000 the first year and 4.53 $6,785,000 the second year are from the 4.54 general fund for the Minnesota job 4.55 skills partnership program under 4.56 Minnesota Statutes, sections 116L.01 to 4.57 116L.17. If the appropriation for 4.58 either year is insufficient, the 4.59 appropriation for the other year is 4.60 available. This appropriation does not 4.61 cancel. 5.1 (b) $250,000 the first year and 5.2 $250,000 the second year are from the 5.3 general fund for a grant under 5.4 Minnesota Statutes, section 116J.8747, 5.5 to Twin Cities RISE! to provide 5.6 training to hard-to-train individuals. 5.7 (c) $875,000 the first year and 5.8 $875,000 the second year are from the 5.9 workforce development fund for 5.10 opportunities industrialization center 5.11 programs. 5.12 (d) The first $1,450,000 deposited in 5.13 each year of the biennium and in each 5.14 year of subsequent bienniums into the 5.15 contingent account created under 5.16 Minnesota Statutes, section 268.196, 5.17 subdivision 3, shall be transferred 5.18 upon deposit to the workforce 5.19 development fund created under 5.20 Minnesota Statutes, section 116L.20. 5.21 Deposits in excess of the $1,450,000 5.22 shall be transferred upon deposit to 5.23 the general fund. 5.24 Subd. 4. Workforce Services 27,110,000 27,110,000 5.25 Summary by Fund 5.26 General 20,165,000 20,165,000 5.27 Workforce 5.28 Development 6,945,000 6,945,000 5.29 (a) $4,864,000 the first year and 5.30 $4,864,000 the second year are from the 5.31 general fund and $6,920,000 the first 5.32 year and $6,920,000 the second year are 5.33 from the workforce development fund for 5.34 extended employment services for 5.35 persons with severe disabilities or 5.36 related conditions under Minnesota 5.37 Statutes, section 268A.15. 5.38 (b) $1,690,000 the first year and 5.39 $1,690,000 the second year are from the 5.40 general fund for grants under Minnesota 5.41 Statutes, section 268A.11, for the 5.42 eight centers for independent living. 5.43 Money not expended the first year is 5.44 available the second year. 5.45 (c) $150,000 the first year and 5.46 $150,000 the second year are from the 5.47 general fund and $25,000 the first year 5.48 and $25,000 the second year are from 5.49 the workforce development fund for 5.50 grants under Minnesota Statutes, 5.51 section 268A.03, to Rise, Inc. for the 5.52 Minnesota Employment Center for People 5.53 Who are Deaf or Hard-of-Hearing. Money 5.54 not expended the first year is 5.55 available the second year. 5.56 (d) $1,000,000 the first year and 5.57 $1,000,000 the second year are from the 5.58 general fund for grants for programs 5.59 that provide employment support 5.60 services to persons with mental illness 5.61 under Minnesota Statutes, sections 6.1 268A.13 and 268A.14. Up to $77,000 6.2 each year may be used for 6.3 administrative and salary expenses. 6.4 (e) $4,940,000 the first year and 6.5 $4,940,000 the second year are from the 6.6 general fund for state services for the 6.7 blind activities. 6.8 (f) On or after July 1, 2005, the 6.9 commissioner of finance shall cancel 6.10 the unencumbered balance in the 6.11 contaminated site cleanup and 6.12 development account to the unrestricted 6.13 fund balance in the general fund. 6.14 (g) On or after July 1, 2005, the 6.15 commissioner of finance shall transfer 6.16 to the general fund any amount in 6.17 excess of $10,000,000 in the Minnesota 6.18 minerals 21st century fund account in 6.19 the special revenue fund. 6.20 Subd. 5. State-Funded 6.21 Administration 3,277,000 3,277,000 6.22 Sec. 3. COMMERCE 6.23 Subdivision 1. Total 6.24 Appropriation 22,130,000 22,130,000 6.25 Summary by Fund 6.26 General 20,211,000 20,211,000 6.27 Petroleum 6.28 Cleanup 1,084,000 1,084,000 6.29 Workers' 6.30 Compensation 835,000 835,000 6.31 The amounts that may be spent from this 6.32 appropriation for each program are 6.33 specified in the following subdivisions. 6.34 Subd. 2. Financial Examinations 5,994,000 5,994,000 6.35 Subd. 3. Petroleum Tank Release 6.36 Cleanup Board 1,084,000 1,084,000 6.37 This appropriation is from the 6.38 petroleum tank release cleanup fund. 6.39 Subd. 4. Administrative Services 5,483,000 5,483,000 6.40 Subd. 5. Market Assurance 5,757,000 5,757,000 6.41 Summary by Fund 6.42 General 4,922,000 4,922,000 6.43 Workers' 6.44 Compensation 835,000 835,000 6.45 Subd. 6. Energy and 6.46 Telecommunications 3,812,000 3,812,000 6.47 Subd. 7. Fair Housing Education 6.48 Of the money appropriated for fair 6.49 housing education under Laws 2001, 7.1 chapter 208, section 28, the 7.2 unencumbered balance is canceled and 7.3 transferred to the general fund. 7.4 Subd. 8. Mortgage Consumer Education 7.5 Of the unexpended balance in the 7.6 consumer education account established 7.7 under Minnesota Statutes, section 7.8 58.10, subdivision 3, $200,000 is 7.9 transferred to the general fund. 7.10 Subd. 9. Mortgage Flipping Education Campaign 7.11 Of the money appropriated for education 7.12 regarding mortgage flipping by Laws 7.13 1999, chapter 223, article 1, section 7.14 6, subdivision 3, the unencumbered 7.15 balance is canceled and transferred to 7.16 the general fund. 7.17 Subd. 10. Liquefied Petroleum Gas Account 7.18 The unexpended balance in the liquefied 7.19 petroleum gas account established under 7.20 Minnesota Statutes, section 239.785, 7.21 subdivision 6, is canceled and 7.22 transferred to the general fund. 7.23 Sec. 4. HOUSING FINANCE AGENCY 7.24 Subdivision 1. Total 7.25 Appropriation 34,770,000 28,270,000 7.26 The amounts that may be spent from this 7.27 appropriation for certain programs are 7.28 specified in the following subdivisions. 7.29 This appropriation is for transfer to 7.30 the housing development fund for the 7.31 programs specified. Except as 7.32 otherwise indicated, this transfer is 7.33 part of the agency's permanent budget 7.34 base. 7.35 Subd. 2. Challenge Program 7.36 $10,907,000 the first year and 7.37 $4,407,000 the second year are for the 7.38 economic development and housing 7.39 challenge program under Minnesota 7.40 Statutes, section 462A.33. 7.41 The base budget for the economic 7.42 development and housing challenge 7.43 program shall be $10,907,000 in fiscal 7.44 year 2008 and $10,907,000 in fiscal 7.45 year 2009. 7.46 Subd. 3. Housing Trust Fund 7.47 $6,305,000 the first year and 7.48 $6,305,000 the second year are for the 7.49 housing trust fund to be deposited in 7.50 the housing trust fund account created 7.51 under Minnesota Statutes, section 7.52 462A.201, and used for the purposes 7.53 provided in that section. 7.54 Subd. 4. Rental Assistance 7.55 for Mentally Ill 8.1 $1,638,000 the first year and 8.2 $1,638,000 the second year are for a 8.3 rental housing assistance program for 8.4 persons with a mental illness or 8.5 families with an adult member with a 8.6 mental illness under Minnesota 8.7 Statutes, section 462A.2097. 8.8 Subd. 5. Family Homeless 8.9 Prevention 8.10 $3,715,000 the first year and 8.11 $3,715,000 the second year are for 8.12 family homeless prevention and 8.13 assistance programs under Minnesota 8.14 Statutes, section 462A.204. Any 8.15 balance the first year does not cancel 8.16 but is available the second year. 8.17 Subd. 6. Home Ownership 8.18 Assistance Fund 8.19 The budget base for the home ownership 8.20 assistance fund shall be $885,000 in 8.21 fiscal year 2008 and $885,000 in fiscal 8.22 year 2009. 8.23 Subd. 7. Affordable Rental 8.24 Investment Fund 8.25 $8,531,000 the first year and 8.26 $8,531,000 the second year are for the 8.27 affordable rental investment fund 8.28 program under Minnesota Statutes, 8.29 section 462A.21, subdivision 8b. 8.30 This appropriation is to finance the 8.31 acquisition, rehabilitation, and debt 8.32 restructuring of federally assisted 8.33 rental property and for making equity 8.34 take-out loans under Minnesota 8.35 Statutes, section 462A.05, subdivision 8.36 39. This appropriation also may be 8.37 used to finance the acquisition, 8.38 rehabilitation, and debt restructuring 8.39 of existing supportive housing 8.40 properties. For purposes of this 8.41 subdivision, "supportive housing" means 8.42 affordable rental housing with links to 8.43 services necessary for individuals, 8.44 youth, and families with children to 8.45 maintain housing stability. 8.46 The owner of the federally assisted 8.47 rental property must agree to 8.48 participate in the applicable federally 8.49 assisted housing program and to extend 8.50 any existing low-income affordability 8.51 restrictions on the housing for the 8.52 maximum term permitted. The owner must 8.53 also enter into an agreement that gives 8.54 local units of government, housing and 8.55 redevelopment authorities, and 8.56 nonprofit housing organizations the 8.57 right of first refusal if the rental 8.58 property is offered for sale. Priority 8.59 must be given among comparable 8.60 federally assisted rental properties to 8.61 properties with the longest remaining 8.62 term under an agreement for federal 9.1 rental assistance. Priority must also 9.2 be given among comparable rental 9.3 housing developments to developments 9.4 that are or will be owned by local 9.5 government units, a housing and 9.6 redevelopment authority, or a nonprofit 9.7 housing organization. 9.8 Subd. 8. Housing Rehabilitation 9.9 and Accessibility 9.10 $2,654,000 the first year and 9.11 $2,654,000 the second year are for the 9.12 housing rehabilitation and 9.13 accessibility program under Minnesota 9.14 Statutes, section 462A.05, subdivisions 9.15 14a and 15a. 9.16 Subd. 9. Home Ownership Education, 9.17 Counseling, and Training 9.18 $770,000 the first year and $770,000 9.19 the second year are for the home 9.20 ownership education, counseling, and 9.21 training program under Minnesota 9.22 Statutes, section 462A.209. 9.23 Subd. 10. Capacity Building 9.24 Grants 9.25 $250,000 the first year and $250,000 9.26 the second year are for nonprofit 9.27 capacity building grants under 9.28 Minnesota Statutes, section 462A.21, 9.29 subdivision 3b. 9.30 Sec. 5. EXPLORE MINNESOTA 9.31 TOURISM 8,626,000 9,626,000 9.32 To develop maximum private sector 9.33 involvement in tourism, $4,000,000 each 9.34 year must be matched by Explore 9.35 Minnesota Tourism from nonstate 9.36 sources. Up to one-half of the total 9.37 match requirement may include in-kind 9.38 contributions. Cash match is defined 9.39 as revenue to the state or documented 9.40 case expenditures directly expended to 9.41 support Explore Minnesota tourism 9.42 programs. 9.43 In the second year, for every dollar 9.44 generated from nonstate sources in the 9.45 previous year in excess of $4,000,000, 9.46 an amount of up to $1,000,000 is 9.47 appropriated from the general fund to 9.48 Explore Minnesota tourism for marketing 9.49 purposes. This incentive is ongoing. 9.50 In order to maximize marketing grant 9.51 benefits, the director must give 9.52 priority for organizational partnership 9.53 marketing grants to organizations with 9.54 year-round sustained tourism 9.55 activities. For programs and projects 9.56 submitted, the director must give 9.57 priority to those that encompass two or 9.58 more areas or that attract nonresident 9.59 travelers to the state. 9.60 Funding for the marketing grants is 9.61 available either year of the biennium. 10.1 Unexpended grant funds from the first 10.2 year are available in the second year. 10.3 The director may use grant dollars or 10.4 the value of in-kind services to 10.5 provide the state contribution for the 10.6 partnership grant program. 10.7 Any unexpended money from the general 10.8 fund appropriations made under this 10.9 section does not cancel but must be 10.10 placed in a special marketing account 10.11 for use by Explore Minnesota tourism 10.12 for additional marketing activities. 10.13 Of this amount, $50,000 the first year 10.14 is for a onetime grant to the 10.15 Mississippi River Parkway Commission to 10.16 support the increased promotion of 10.17 tourism along the Great River Road. 10.18 This appropriation is available until 10.19 June 30, 2007. 10.20 Of this amount, $175,000 the first year 10.21 and $175,000 the second year are for 10.22 the Minnesota Film Board. The 10.23 appropriation in each year is available 10.24 only upon receipt by the board of $1 in 10.25 matching contributions of money or 10.26 in-kind from nonstate sources for every 10.27 $3 provided by this appropriation. 10.28 Sec. 6. LABOR AND INDUSTRY 10.29 Subdivision 1. Total 10.30 Appropriation 22,594,000 22,594,000 10.31 Summary by Fund 10.32 General 2,872,000 2,872,000 10.33 Workers' 10.34 Compensation 19,272,000 19,272,000 10.35 Workforce 10.36 Development 450,000 450,000 10.37 The amounts that may be spent from this 10.38 appropriation for each program are 10.39 specified in the following subdivisions. 10.40 Subd. 2. Workers' Compensation 10.41 10,346,000 10,346,000 10.42 This appropriation is from the workers' 10.43 compensation fund. 10.44 Up to $125,000 the first year and up to 10.45 $125,000 the second year are for grants 10.46 to the Vinland Center for 10.47 rehabilitation services. The grants 10.48 shall be distributed as the department 10.49 refers injured workers to the Vinland 10.50 Center to receive rehabilitation 10.51 services. 10.52 Subd. 3. Workplace Services 10.53 6,961,000 6,961,000 11.1 Summary by Fund 11.2 General 2,872,000 2,872,000 11.3 Workers' 11.4 Compensation 3,639,000 3,639,000 11.5 Workforce 11.6 Development 450,000 450,000 11.7 $350,000 each year is from the 11.8 workforce development fund for the 11.9 apprenticeship program under Minnesota 11.10 Statutes, chapter 178. 11.11 $100,000 the first year and $100,000 11.12 the second year are for labor education 11.13 and advancement program grants. This 11.14 appropriation is from the workforce 11.15 development fund. 11.16 The annual license fees authorized 11.17 under Minnesota Statutes, section 11.18 326.48, and detailed in Minnesota 11.19 Rules, part 5230.0100, subpart 3, shall 11.20 increase $20 for a journeyman 11.21 high-pressure piping pipefitter 11.22 license, $20 for a high-pressure piping 11.23 contracting pipefitter, $10 for an 11.24 inactive license, and $100 for a 11.25 high-pressure pipefitting business 11.26 license. 11.27 The permit filing and inspection fees 11.28 authorized under Minnesota Statutes, 11.29 section 326.47, and detailed in 11.30 Minnesota Rules, part 5230.0100, 11.31 subpart 4, shall be increased as 11.32 follows: the filing of a permit 11.33 application shall be increased $50, the 11.34 minimum high-pressure piping inspection 11.35 fee shall be increased $50, and the 11.36 schedule of inspection fee rates shall 11.37 be increased by ten percent. 11.38 Subd. 4. General Support 11.39 5,287,000 5,287,000 11.40 This appropriation is from the workers' 11.41 compensation fund. 11.42 Sec. 7. BUREAU OF MEDIATION 11.43 SERVICES 1,673,000 1,673,000 11.44 Sec. 8. WORKERS' COMPENSATION 11.45 COURT OF APPEALS 1,618,000 1,618,000 11.46 This appropriation is from the workers' 11.47 compensation fund. 11.48 Sec. 9. MINNESOTA HISTORICAL 11.49 SOCIETY 11.50 Subdivision 1. Total 11.51 Appropriation 22,753,000 22,626,000 11.52 The amounts that may be spent from this 11.53 appropriation for each program are 11.54 specified in the following 11.55 subdivisions. The Minnesota Historical 12.1 Society shall make its best possible 12.2 efforts, including the use of 12.3 volunteers, to avoid closing historic 12.4 sites or substantially limiting public 12.5 access to them. Before closing any 12.6 site, the Minnesota Historical Society 12.7 must consult with, and fully consider 12.8 proposals from, interested community 12.9 groups or individuals who are willing 12.10 to provide financial or in-kind support 12.11 for site operations. 12.12 Subd. 2. Education and 12.13 Outreach 12.14 12,727,000 12,727,000 12.15 Of this amount, $60,000 each year is to 12.16 offset the revenue loss from not 12.17 charging fees for general tours at the 12.18 Capitol. Notwithstanding Minnesota 12.19 Statutes, section 138.668, the 12.20 Minnesota Historical Society may not 12.21 charge a fee for its general tours at 12.22 the Capitol, but may charge fees for 12.23 special programs other than general 12.24 tours. 12.25 Of this amount, $743,000 each year is 12.26 for operation of the following 12.27 historical sites: Kelley Farm, Hill 12.28 House, Lower Sioux Agency, Fort 12.29 Ridgely, Historic Forestville, the 12.30 Forest History Center, and the Comstock 12.31 House. This appropriation is added to 12.32 the society's base. This paragraph is 12.33 effective the day following final 12.34 enactment. 12.35 Of this amount, $25,000 each year is 12.36 for a grant to the Minnesota 12.37 Sesquicentennial Commission for 12.38 planning and support of its mission. 12.39 This appropriation is added to the 12.40 society's general fund base through 12.41 fiscal year 2010. 12.42 Subd. 3. Preservation and 12.43 Access 12.44 9,772,000 9,772,000 12.45 Subd. 4. Pass-Through 12.46 Appropriations 12.47 254,000 127,000 12.48 (a) Minnesota International Center 12.49 43,000 42,000 12.50 (b) Minnesota Air National 12.51 Guard Museum 12.52 16,000 -0- 12.53 (c) Minnesota Military Museum 12.54 67,000 -0- 12.55 (d) Farmamerica 13.1 128,000 85,000 13.2 Notwithstanding any other law, this 13.3 appropriation may be used for 13.4 operations. 13.5 (e) Balances Forward 13.6 Any unencumbered balance remaining in 13.7 this subdivision the first year does 13.8 not cancel but is available for the 13.9 second year of the biennium. 13.10 Subd. 5. Fund Transfer 13.11 The Minnesota Historical Society may 13.12 reallocate funds appropriated in and 13.13 between subdivisions 2 and 3 for any 13.14 program purposes. 13.15 Sec. 10. BOARD OF THE ARTS 13.16 Subdivision 1. Total 13.17 Appropriation 8,593,000 8,593,000 13.18 If the appropriation for either year is 13.19 insufficient, the appropriation for the 13.20 other year is available. 13.21 Subd. 2. Operations and Services 13.22 404,000 404,000 13.23 Subd. 3. Grants Programs 13.24 5,767,000 5,767,000 13.25 Subd. 4. Regional Arts 13.26 Councils 13.27 2,422,000 2,422,000 13.28 Sec. 11. BOARD OF 13.29 ACCOUNTANCY 487,000 487,000 13.30 Effective the day following final 13.31 enactment and no later than June 30, 13.32 2006, the Board of Accountancy shall 13.33 combine its administrative functions 13.34 with those of the Board of 13.35 Architecture, Engineering, Land 13.36 Surveying, Landscape Architecture, 13.37 Geoscience, and Interior Design. Both 13.38 appointed boards would remain intact, 13.39 and both would maintain their status as 13.40 separate state agencies. 13.41 Sec. 12. BOARD OF ARCHITECTURE, 13.42 ENGINEERING, LAND SURVEYING, 13.43 LANDSCAPE ARCHITECTURE, GEOSCIENCE, 13.44 AND INTERIOR DESIGN 785,000 785,000 13.45 Sec. 13. BOARD OF BARBER 13.46 EXAMINERS 699,000 699,000 13.47 Sec. 14. PUBLIC UTILITIES 13.48 COMMISSION 4,163,000 4,163,000 13.49 Sec. 15. BOARD OF ELECTRICITY 13.50 On or before June 30, 2006, the board 14.1 shall transfer $4,000,000 from the 14.2 special revenue fund to the general 14.3 fund. 14.4 ARTICLE 2 14.5 JOBS AND ECONOMIC DEVELOPMENT 14.6 Section 1. Minnesota Statutes 2004, section 41A.09, 14.7 subdivision 2a, is amended to read: 14.8 Subd. 2a. [DEFINITIONS.] For the purposes of this section, 14.9 the terms defined in this subdivision have the meanings given 14.10 them. 14.11 (a) "Ethanol" means fermentation ethyl alcohol derived from 14.12 agricultural products, including potatoes, cereal grains, cheese 14.13 whey, and sugar beets; forest products; or other renewable 14.14 resources, including residue and waste generated from the 14.15 production, processing, and marketing of agricultural products, 14.16 forest products, and other renewable resources, that: 14.17 (1) meets all of the specifications in ASTM specification 14.18D4806-01D4806-04a; and 14.19 (2) is denatured as specified in Code of Federal 14.20 Regulations, title 27, parts 20 and 21. 14.21 (b) "Ethanol plant" means a plant at which ethanol is 14.22 produced. 14.23 (c) "Commissioner" means the commissioner of agriculture. 14.24 Sec. 2. [45.22] [LICENSE EDUCATION.] 14.25 The following fees must be paid to the commissioner: 14.26 (1) initial course approval, $10 for each hour or fraction 14.27 of one hour of education course approval sought. Initial course 14.28 approval expires on the last day of the 24th month after the 14.29 course is approved; 14.30 (2) renewal of course approval, $10 per course. Renewal of 14.31 course approval expires on the last day of the 24th month after 14.32 the course is renewed; 14.33 (3) initial coordinator approval, $100. Initial 14.34 coordinator approval expires on the last day of the 24th month 14.35 after the coordinator is approved; and 14.36 (4) renewal of coordinator approval, $10. Renewal of 14.37 coordinator approval expires on the last day of the 24th month 15.1 after the coordinator is renewed. 15.2 Sec. 3. Minnesota Statutes 2004, section 60A.14, 15.3 subdivision 1, is amended to read: 15.4 Subdivision 1. [FEES OTHER THAN EXAMINATION FEES.] In 15.5 addition to the fees and charges provided for examinations, the 15.6 following fees must be paid to the commissioner for deposit in 15.7 the general fund: 15.8 (a) by township mutual fire insurance companies; 15.9 (1) for filing certificate of incorporation $25 and 15.10 amendments thereto, $10; 15.11 (2) for filing annual statements, $15; 15.12 (3) for each annual certificate of authority, $15; 15.13 (4) for filing bylaws $25 and amendments thereto, $10; 15.14 (b) by other domestic and foreign companies including 15.15 fraternals and reciprocal exchanges; 15.16 (1) for filing an application for an initial certification 15.17 of authority to be admitted to transact business in this state, 15.18 $1,500; 15.19 (2) for filing certified copy of certificate of articles of 15.20 incorporation, $100; 15.21(2)(3) for filing annual statement, $225; 15.22(3)(4) for filing certified copy of amendment to 15.23 certificate or articles of incorporation, $100; 15.24(4)(5) for filing bylaws, $75 or amendments thereto, $75; 15.25(5)(6) for each company's certificate of authority, $575, 15.26 annually; 15.27 (c) the following general fees apply: 15.28 (1) for each certificate, including certified copy of 15.29 certificate of authority, renewal, valuation of life policies, 15.30 corporate condition or qualification, $25; 15.31 (2) for each copy of paper on file in the commissioner's 15.32 office 50 cents per page, and $2.50 for certifying the same; 15.33 (3) for license to procure insurance in unadmitted foreign 15.34 companies, $575; 15.35 (4) for valuing the policies of life insurance companies, 15.36 one cent per $1,000 of insurance so valued, provided that the 16.1 fee shall not exceed $13,000 per year for any company. The 16.2 commissioner may, in lieu of a valuation of the policies of any 16.3 foreign life insurance company admitted, or applying for 16.4 admission, to do business in this state, accept a certificate of 16.5 valuation from the company's own actuary or from the 16.6 commissioner of insurance of the state or territory in which the 16.7 company is domiciled; 16.8 (5) for receiving and filing certificates of policies by 16.9 the company's actuary, or by the commissioner of insurance of 16.10 any other state or territory, $50; 16.11 (6) for each appointment of an agent filed with the 16.12 commissioner, $10; 16.13 (7) for filing forms and rates, $75 per filing, which may 16.14 be paid on a quarterly basis in response to an invoice. Billing 16.15 and payment may be made electronically; 16.16 (8) for annual renewal of surplus lines insurer license, 16.17 $300; 16.18 (9) $250 filing fee for a large risk alternative rating 16.19 option plan that meets the $250,000 threshold requirement. 16.20 The commissioner shall adopt rules to define filings that 16.21 are subject to a fee. 16.22 Sec. 4. Minnesota Statutes 2004, section 60K.55, 16.23 subdivision 2, is amended to read: 16.24 Subd. 2. [LICENSING FEES.] (a) In addition to fees 16.25 provided for examinations, each insurance producer licensed 16.26 under this chapter shall pay to the commissioner a fee of: 16.27 (1)$40$50 for an initial life, accident and health, 16.28 property, or casualty license issued to an individual insurance 16.29 producer, and a fee of$40$50 for each renewal; 16.30 (2)$75$50 for an initial variable life and variable 16.31 annuity license issued to an individual insurance producer, and 16.32 a fee of $50 for each renewal; 16.33 (3)$80$50 for an initial personal lines license issued to 16.34 an individual insurance producer, and a fee of$80$50 for each 16.35 renewal; 16.36 (4)$80$50 for an initial limited lines license issued to 17.1 an individual insurance producer, and a fee of$80$50 for each 17.2 renewal; 17.3 (5) $200 for an initial license issued to a business 17.4 entity, and a fee of$150$200 for each renewal; and 17.5 (6) $500 for an initial surplus lines license, and a fee of 17.6 $500 for each renewal. 17.7 (b) Initial licenses issued under this chapter are valid 17.8 for a period not to exceed 24 months and expire on October 31 of 17.9 the renewal year assigned by the commissioner. Each renewal 17.10 insurance producer license is valid for a period of 24 months. 17.11 Licensees who submit renewal applications postmarked or 17.12 delivered on or before October 15 of the renewal year may 17.13 continue to transact business whether or not the renewal license 17.14 has been received by November 1. Licensees who submit 17.15 applications postmarked or delivered after October 15 of the 17.16 renewal year must not transact business after the expiration 17.17 date of the license until the renewal license has been received. 17.18 (c) All fees are nonreturnable, except that an overpayment 17.19 of any fee may be refunded upon proper application. 17.20 Sec. 5. Minnesota Statutes 2004, section 72B.04, 17.21 subdivision 10, is amended to read: 17.22 Subd. 10. [FEES.] A fee of$80$50 is imposed for each 17.23 initial license or temporary permit and$80$50 for each renewal 17.24 thereof or amendment thereto. A fee of $20 is imposed for the 17.25 registration of each nonlicensed adjuster who is required to 17.26 register under section 72B.06. All fees shall be transmitted to 17.27 the commissioner and shall be payable to the Department of 17.28 Commerce. 17.29 Sec. 6. Minnesota Statutes 2004, section 82B.09, 17.30 subdivision 1, is amended to read: 17.31 Subdivision 1. [AMOUNTS.] The following fees must be paid 17.32 to the commissioner: 17.33 (1) $150 for each initial individual real estate 17.34 appraiser's license: $150 if the license expires more than 1217.35months after issuance, $100 if the license expires less than 1217.36months after issuance; anda fee of18.1 (2) $100 for each renewal. 18.2 Sec. 7. Minnesota Statutes 2004, section 115C.07, 18.3 subdivision 3, is amended to read: 18.4 Subd. 3. [RULES.] (a) The board shall adopt rules 18.5 regarding its practices and procedures, the form and procedure 18.6 for applications for compensation from the fund, procedures for 18.7 investigation of claims and specifying the costs that are 18.8 eligible for reimbursement from the fund. 18.9 (b) The board may adopt rules requiring certification of 18.10 environmental consultants. 18.11 (c) The board may adopt other rules necessary to implement 18.12 this chapter. 18.13 (d) The board may use section 14.389 to adopt rules 18.14 specifying the competitive bidding requirements for consultant 18.15 services proposals. 18.16 (e) The board may use section 14.389 to adopt rules 18.17 specifying the written proposal and invoice requirements for 18.18 consultant services. 18.19 Sec. 8. Minnesota Statutes 2004, section 115C.09, 18.20 subdivision 3h, is amended to read: 18.21 Subd. 3h. [REIMBURSEMENT; ABOVEGROUND TANKS IN BULK 18.22 PLANTS.] (a) As used in this subdivision, "bulk plant" means an 18.23 aboveground or underground tank facility with a storage capacity 18.24 of more than 1,100 gallons but less than 1,000,000 gallons that 18.25 is used to dispense petroleum into cargo tanks for 18.26 transportation and sale at another location. 18.27 (b) Notwithstanding any other provision in this chapter and 18.28 any rules adopted pursuant to this chapter, the board shall 18.29 reimburse 90 percent of an applicant's cost for bulk plant 18.30 upgrades or closures completed between June 1, 1998, and 18.31 November 1, 2003, to comply with Minnesota Rules, chapter 7151, 18.32 provided that the board determines the costs were incurred and 18.33 reasonable. The reimbursement may not exceed $10,000 per bulk 18.34 plant. The board may provide reimbursement under this paragraph 18.35 for work completed after November 1, 2003, if the work was 18.36 contracted for prior to that date and was not completed by that 19.1 date as a result of an unanticipated situation, provided that an 19.2 application for reimbursement under this paragraph, which may be 19.3 a renewal of an application previously denied, is submitted 19.4 prior to December 31, 2005. 19.5 (c) For corrective action at a bulk plant located on what 19.6 is or was railroad right-of-way, the board shall reimburse 90 19.7 percent of total reimbursable costs on the first $40,000 of 19.8 reimbursable costs and 100 percent of any remaining reimbursable 19.9 costs when the applicant can document that more than one bulk 19.10 plant was operated on the same section of right-of-way, as 19.11 determined by the commissioner of commerce. 19.12 Sec. 9. Minnesota Statutes 2004, section 115C.13, is 19.13 amended to read: 19.14 115C.13 [REPEALER.] 19.15 Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 19.16 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 19.17 115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112, 19.18 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 19.1920072012. 19.20 Sec. 10. Minnesota Statutes 2004, section 116C.779, 19.21 subdivision 2, is amended to read: 19.22 Subd. 2. [RENEWABLE ENERGY PRODUCTION INCENTIVE.] (a) 19.23 Until January 1, 2018, up to$6,000,000$10,900,000 annually 19.24 must be allocated from available funds in the account to fund 19.25 renewable energy production incentives.$4,500,000$9,400,000 19.26 of this annual amount is for incentives for up to100200 19.27 megawatts of electricity generated by wind energy conversion 19.28 systems that are eligible for the incentives under section 19.29 216C.41. The balance of this amount, up to $1,500,000 annually, 19.30 may be used for production incentives for on-farm biogas 19.31 recovery facilities that are eligible for the incentive under 19.32 section 216C.41 or for production incentives for other 19.33 renewables, to be provided in the same manner as under section 19.34 216C.41. Any portion of the$6,000,000$10,900,000 not expended 19.35 in any calendar year for the incentive is available for other 19.36 spending purposes under this section. This subdivision does not 20.1 create an obligation to contribute funds to the account. 20.2 (b) The Department of Commerce shall determine eligibility 20.3 of projects under section 216C.41 for the purposes of this 20.4 subdivision. At least quarterly, the Department of Commerce 20.5 shall notify the public utility of the name and address of each 20.6 eligible project owner and the amount due to each project under 20.7 section 216C.41. The public utility shall make payments within 20.8 15 working days after receipt of notification of payments due. 20.9 Sec. 11. Minnesota Statutes 2004, section 116J.551, 20.10 subdivision 1, is amended to read: 20.11 Subdivision 1. [GRANT ACCOUNT.] A contaminated site 20.12 cleanup and development grant account is created in the general 20.13 fund. Money in the account may be used, as appropriated by law, 20.14 to make grants as provided in section 116J.554 and to pay for 20.15 the commissioner's costs in reviewing applications and making 20.16 grants. Notwithstanding section 16A.28, money appropriated to 20.17 the account is available for four years. 20.18 Sec. 12. Minnesota Statutes 2004, section 116J.571, is 20.19 amended to read: 20.20 116J.571 [CREATION OF ACCOUNTS.] 20.21 Twogreater Minnesotaredevelopment accounts are created, 20.22 one in the general fund and one in the bond proceeds fund. 20.23 Money in the accounts may be used to make grants as provided in 20.24 section 116J.575. Money in the bond proceeds fund may only be20.25used for eligible costs for publicly owned property. Money in20.26the general fund may be usedand to pay for the commissioner's 20.27 costs in reviewingtheapplications and making grants. 20.28 Sec. 13. Minnesota Statutes 2004, section 116J.572, is 20.29 amended to read: 20.30 116J.572 [DEFINITIONS.] 20.31 Subdivision 1. [SCOPE OF APPLICATION.] For purposes of 20.32 sections 116J.571 to 116J.575, the terms in this section have 20.33 the meanings given. 20.34 Subd. 2. [DEVELOPMENT AUTHORITY.] "Development authority" 20.35 includes a statutory or home rule charter city, county, housing 20.36 and redevelopment authority, economic development authority, or 21.1 port authoritylocated outside. 21.2 Subd. 2a. [METROPOLITAN AREA.] "Metropolitan area" means 21.3 the seven-county metropolitan area, as defined in section 21.4 473.121, subdivision 2. 21.5 Subd. 2b. [MUNICIPALITY.] "Municipality" means the 21.6 statutory or home rule charter city, town, or, in the case of 21.7 unorganized territory, county in which the redevelopment is 21.8 located. 21.9 Subd. 3. [ELIGIBLEREDEVELOPMENT COSTS OR COSTS.] 21.10 "EligibleRedevelopment costs" or "costs" means the costs of 21.11 land acquisition, stabilizing unstable soils when infill is 21.12 required, demolition, infrastructure improvements, and ponding 21.13 or other environmental infrastructure; building construction,21.14design and engineering;and costs necessary for adaptive reuse 21.15 of buildings, including remedial activities.Eligible costs do21.16not include project administration and legal fees.21.17Subd. 4. [REDEVELOPMENT.] "Redevelopment" means recycling21.18obsolete, abandoned, or underutilized properties for new21.19industrial, commercial, or residential uses.21.20 Sec. 14. Minnesota Statutes 2004, section 116J.574, is 21.21 amended to read: 21.22 116J.574 [GRANT APPLICATIONS.] 21.23 Subdivision 1. [APPLICATION REQUIRED.] To obtain a 21.24 redevelopment grant, a development authority shall apply to the 21.25 commissioner. The governing body of the municipality must 21.26 approve the application by resolution. 21.27 Subd. 2. [REQUIRED CONTENT.] The commissioner shall 21.28 prescribe and provide the application form. The application 21.29 must include at least the following information: 21.30 (1) identification of the site; 21.31 (2) a redevelopment plan for the site; 21.32 (3) a detailedbudgetestimate,includingalong with 21.33 necessary supporting evidence, of the total redevelopment costs 21.34 for the siteincluding the total eligible redevelopment costs; 21.35(3) a complete(4) an assessment of the development 21.36 potential or likely use of the site after completion of the 22.1 redevelopment plan, including any specific commitments from 22.2 third parties to construct improvements on the site; 22.3(4) a complete financing plan, including(5) the manner in 22.4 which thedevelopment authority uses innovative financial22.5partnerships between government, private for-profit, and22.6nonprofit sectorsmunicipality will meet the local match 22.7 requirement; and 22.8(5)(6) any additional information or materialthatthe 22.9 commissioner prescribes. 22.10 Sec. 15. Minnesota Statutes 2004, section 116J.575, as 22.11 amended by Laws 2005, chapter 20, article 1, section 33, is 22.12 amended to read: 22.13 116J.575 [GRANTS.] 22.14 Subdivision 1. [COMMISSIONER DISCRETION.] The commissioner 22.15 may make a grant for up to 50 percent of the eligible costs of a 22.16 project. The determination of whether to make a grant for a 22.17 site is within the discretion of the commissioner, subject to 22.18 this section and sections 116J.571 to 116J.574 and available 22.19 unencumbered money in thegreater Minnesotaredevelopment 22.20 account. Notwithstanding section 116J.573, if the commissioner 22.21 determines that the applications for grants for projects in 22.22 greater Minnesota are less than the amount of grant funds 22.23 available, the commissioner may make grants for projects 22.24 anywhere in Minnesota. The commissioner's decisions and 22.25 application of the priorities under this section are not subject 22.26 to judicial review, except for abuse of discretion. 22.27 Subd. 1a. [PRIORITIES.] (a) If applications for grants 22.28 exceed the available appropriations, grants shall be made for 22.29 sites that, in the commissioner's judgment, provide the highest 22.30 return in public benefits for the public costs incurred. 22.31 "Public benefits" include job creation, environmental benefits 22.32 to the state and region, efficient use of public transportation, 22.33 efficient use of existing infrastructure, provision of 22.34 affordable housing, multiuse development that constitutes 22.35 community rebuilding rather than single-use development, crime 22.36 reduction, blight reduction, community stabilization, and 23.1 property tax base maintenance or improvement. In making this 23.2 judgment, the commissioner shall give priority to redevelopment 23.3 projects with one or more of the following characteristics: 23.4 (1) the need for redevelopment in conjunction with 23.5 contamination remediation needs; 23.6 (2) the redevelopment project meets current tax increment 23.7 financing requirements for a redevelopment district and tax 23.8 increments will contribute to the project; 23.9 (3) the redevelopment potential within the municipality; 23.10 (4) proximity to public transit if located in the 23.11 metropolitan area; and 23.12 (5) multijurisdictional projects that take into account the 23.13 need for affordable housing, transportation, and environmental 23.14 impact. 23.15 (b) The factors in paragraph (a) are not listed in a rank 23.16 order of priority; rather, the commissioner may weigh each 23.17 factor, depending upon the facts and circumstances, as the 23.18 commissioner considers appropriate. 23.19 Subd. 2. [APPLICATION CYCLES.] In making grants, the 23.20 commissioner shall establish semiannual application deadlines in 23.21 which grants will be authorized from all or part of the 23.22 available money in the account. 23.23 Subd. 3. [MATCH REQUIRED.] In order to qualify for a grant 23.24 under sections 116J.571 to 116J.575, the municipality must pay 23.25 for at least one-half of the redevelopment costs as a local 23.26 match from any money available to the municipality. 23.27 Sec. 16. Minnesota Statutes 2004, section 116J.63, 23.28 subdivision 2, is amended to read: 23.29 Subd. 2. [FEES.] (a) Fees for reports, publications, or 23.30 related publicity or promotional material are not subject to the 23.31 rulemaking requirements of chapter 14 and are not subject to 23.32 section 16A.1285. The fees prescribed by the commissioner must 23.33 be commensurate with the distribution objective of the 23.34 department for the material produced or with the cost of 23.35 furnishing the services. Except as described in paragraph (b), 23.36 all fees for materials and services must be deposited in the 24.1 general fund. 24.2 (b) The commissioner may sell marketing materials at cost 24.3 to economic development organizations and others in quantities 24.4 that would not otherwise be available through general fund 24.5 appropriations. Funds received must be placed in a special 24.6 revolving account and are appropriated to the commissioner to 24.7 pay for the production of the materials. 24.8 Sec. 17. Minnesota Statutes 2004, section 116J.8731, 24.9 subdivision 5, is amended to read: 24.10 Subd. 5. [GRANT LIMITS.] A Minnesota investment fund grant 24.11 may not be approved for an amount in excess of $1,000,000. This 24.12 limit covers all money paid to complete the same project, 24.13 whether paid to one or more grant recipients and whether paid in 24.14 one or more fiscal years.The portionA local community or 24.15 recognized Indian tribal government may retain 20 percent, but 24.16 not more than $100,000 of a Minnesota investment fund grantthat24.17exceeds $100,000 must be repaid to the statewhen it is repaid 24.18 to the local community or recognized Indian tribal government by 24.19 the person or entity to which it was loaned by the local 24.20 community or Indian tribal government. Money repaid to the 24.21 state must be credited to a Minnesota investment revolving loan 24.22 account in the state treasury. Funds in the account are 24.23 appropriated to the commissioner and must be used in the same 24.24 manner as are funds appropriated to the Minnesota investment 24.25 fund. Funds repaid to the state through existing Minnesota 24.26 investment fund agreements must be credited to the Minnesota 24.27 investment revolving loan account effective July 1, 2003. A 24.28 grant or loan may not be made to a person or entity for the 24.29 operation or expansion of a casino or a store which is used 24.30 solely or principally for retail sales. Persons or entities 24.31 receiving grants or loans must pay each employee total 24.32 compensation, including benefits not mandated by law, that on an 24.33 annualized basis is equal to at least 110 percent of the federal 24.34 poverty level for a family of four. 24.35 Sec. 18. Minnesota Statutes 2004, section 116J.8747, 24.36 subdivision 2, is amended to read: 25.1 Subd. 2. [QUALIFIED JOB TRAINING PROGRAM.] To qualify for 25.2 grants under this section, a job training program must satisfy 25.3 the following requirements: 25.4 (1) the program must be operated by a nonprofit corporation 25.5 that qualifies under section 501(c)(3) of the Internal Revenue 25.6 Code; 25.7 (2) the program must spend at least $15,000 per graduate of 25.8 the program; 25.9 (3) the program must provide education and training in: 25.10 (i) basic skills, such as reading, writing, mathematics, 25.11 and communications; 25.12 (ii) thinking skills, such as reasoning, creative thinking, 25.13 decision making, and problem solving; and 25.14 (iii) personal qualities, such as responsibility, 25.15 self-esteem, self-management, honesty, and integrity; 25.16 (4) the program must provide income supplements, when 25.17 needed, to participants for housing, counseling, tuition, and 25.18 other basic needs; 25.19 (5) the program's education and training course must last 25.20 for an average of at least six months; 25.21 (6) individuals served by the program must: 25.22 (i) be 18 years of age or older; 25.23 (ii) have federal adjusted gross income of no more than 25.24 $11,000 per year in thetwo yearscalendar year immediately 25.25 before entering the program; 25.26 (iii) have assets of no more than $7,000, excluding the 25.27 value of a homestead; and 25.28 (iv) not have been claimed as a dependent on the federal 25.29 tax return of another person in the previous taxable year; and 25.30 (7) the program must be certified by the commissioner of 25.31 employment and economic development as meeting the requirements 25.32 of this subdivision. 25.33 Sec. 19. Minnesota Statutes 2004, section 116J.994, 25.34 subdivision 7, is amended to read: 25.35 Subd. 7. [REPORTS BY RECIPIENTS TO GRANTORS.] (a) A 25.36 business subsidy grantor must monitor the progress by the 26.1 recipient in achieving agreement goals. 26.2 (b) A recipient must provide information regarding goals 26.3 and results for two years after the benefit date or until the 26.4 goals are met, whichever is later. If the goals are not met, 26.5 the recipient must continue to provide information on the 26.6 subsidy until the subsidy is repaid. The information must be 26.7 filed on forms developed by the commissioner in cooperation with 26.8 representatives of local government. Copies of the completed 26.9 forms must be sent to the local government agency that provided 26.10 the subsidy or to the commissioner if the grantor is a state 26.11 agency. If the Iron Range Resources and Rehabilitation Board is 26.12 the grantor, the copies must be sent to the board. The report 26.13 must include: 26.14 (1) the type, public purpose, and amount of subsidies and 26.15 type of district, if the subsidy is tax increment financing; 26.16 (2) the hourly wage of each job created with separate bands 26.17 of wages; 26.18 (3) the sum of the hourly wages and cost of health 26.19 insurance provided by the employer with separate bands of wages; 26.20 (4) the date the job and wage goals will be reached; 26.21 (5) a statement of goals identified in the subsidy 26.22 agreement and an update on achievement of those goals; 26.23 (6) the location of the recipient prior to receiving the 26.24 business subsidy; 26.25 (7) the number of employees who ceased to be employed by 26.26 the recipient when the recipient relocated to become eligible 26.27 for the business subsidy; 26.28 (8) why the recipient did not complete the project outlined 26.29 in the subsidy agreement at their previous location, if the 26.30 recipient was previously located at another site in Minnesota; 26.31(8)(9) the name and address of the parent corporation of 26.32 the recipient, if any; 26.33(9)(10) a list of all financial assistance by all grantors 26.34 for the project; and 26.35(10)(11) other information the commissioner may request. 26.36 A report must be filed no later than March 1 of each year for 27.1 the previous year. The local agency and the Iron Range 27.2 Resources and Rehabilitation Board must forward copies of the 27.3 reports received by recipients to the commissioner by April 1. 27.4 (c) Financial assistance that is excluded from the 27.5 definition of "business subsidy" by section 116J.993, 27.6 subdivision 3, clauses (4), (5), (8), and (16), is subject to 27.7 the reporting requirements of this subdivision, except that the 27.8 report of the recipient must include instead: 27.9 (1) the type, public purpose, and amount of the financial 27.10 assistance, and type of district if the assistance is tax 27.11 increment financing; 27.12 (2) progress towards meeting goals stated in the assistance 27.13 agreement and the public purpose of the assistance; 27.14 (3) if the agreement includes job creation, the hourly wage 27.15 of each job created with separate bands of wages; 27.16 (4) if the agreement includes job creation, the sum of the 27.17 hourly wages and cost of health insurance provided by the 27.18 employer with separate bands of wages; 27.19 (5) the location of the recipient prior to receiving the 27.20 assistance; and 27.21 (6) other information the grantor requests. 27.22 (d) If the recipient does not submit its report, the local 27.23 government agency must mail the recipient a warning within one 27.24 week of the required filing date. If, after 14 days of the 27.25 postmarked date of the warning, the recipient fails to provide a 27.26 report, the recipient must pay to the grantor a penalty of $100 27.27 for each subsequent day until the report is filed. The maximum 27.28 penalty shall not exceed $1,000. 27.29 Sec. 20. Minnesota Statutes 2004, section 116J.994, 27.30 subdivision 9, is amended to read: 27.31 Subd. 9. [COMPILATION AND SUMMARY REPORT.] The Department 27.32 of Employment and Economic Development must publish a 27.33 compilation and summary of the results of the reports for the 27.34 previous two calendar years by December 1 of 2004 and every 27.35 other year thereafter. The reports of the government agencies 27.36 to the department and the compilation and summary report of the 28.1 department must be made available to the public. 28.2 The commissioner must coordinate the production of reports 28.3 so that useful comparisons across time periods and across 28.4 grantors can be made. The commissioner may add other 28.5 information to the report as the commissioner deems necessary to 28.6 evaluate business subsidies. Among the information in the 28.7 summary and compilation report, the commissioner must include: 28.8 (1) total amount of subsidies awarded in each development 28.9 region of the state; 28.10 (2) distribution of business subsidy amounts by size of the 28.11 business subsidy; 28.12 (3) distribution of business subsidy amounts by time 28.13 category; 28.14 (4) distribution of subsidies by type and by public 28.15 purpose; 28.16 (5) percent of all business subsidies that reached their 28.17 goals; 28.18 (6) percent of business subsidies that did not reach their 28.19 goals by two years from the benefit date; 28.20 (7) total dollar amount of business subsidies that did not 28.21 meet their goals after two years from the benefit date; 28.22 (8) percent of subsidies that did not meet their goals and 28.23 that did not receive repayment; 28.24 (9) list of recipients that have failed to meet the terms 28.25 of a subsidy agreement in the past five years and have not 28.26 satisfied their repayment obligations; 28.27 (10) number of part-time and full-time jobs within separate 28.28 bands of wages for the entire state and for each development 28.29 region of the state;and28.30 (11) benefits paid within separate bands of wages for the 28.31 entire state and for each development region of the state; and 28.32 (12) number of employees in the entire state and in each 28.33 development region of the state who ceased to be employed 28.34 because their employers relocated to become eligible for a 28.35 business subsidy. 28.36 Sec. 21. Minnesota Statutes 2004, section 116L.03, 29.1 subdivision 2, is amended to read: 29.2 Subd. 2. [APPOINTMENT.] The Minnesota Job Skills 29.3 Partnership Board consists of: seven members appointed by the 29.4 governor,the chair of the governor's Workforce Development29.5Council,the commissioner of employment and economic 29.6 development, the chancellor, or the chancellor's designee, of 29.7 the Minnesota State Colleges and Universities, the president, or 29.8 the president's designee, of the University of Minnesota, and 29.9 two nonlegislator members, one appointed by the Subcommittee on 29.10 Committees of the senate Committee on Rules and Administration 29.11 and one appointed by the speaker of the house. If the 29.12 chancellor or the president of the university makes a 29.13 designation under this subdivision, the designee must have 29.14 experience in technical education. Four of the appointed 29.15 members must be members of the governor's Workforce Development 29.16 Council, of whom two must represent organized labor and two must 29.17 represent business and industry. One of the appointed members 29.18 must be a representative of a nonprofit organization that 29.19 provides workforce development or job training services. 29.20 Sec. 22. Minnesota Statutes 2004, section 116L.05, is 29.21 amended by adding a subdivision to read: 29.22 Subd. 5. [USE OF WORKFORCE DEVELOPMENT FUNDS.] After March 29.23 1 of any fiscal year, the board may use workforce development 29.24 funds for the purposes outlined in sections 116L.04, 116L.06, 29.25 and 116L.10 to 116L.14, or to provide incumbent worker training 29.26 services under section 116L.18 if the following conditions have 29.27 been met: 29.28 (1) the board examines relevant economic indicators, 29.29 including the projected number of layoffs for the remainder of 29.30 the fiscal year and the next fiscal year, evidence of declining 29.31 and expanding industries, the number of initial applications for 29.32 and the number of exhaustions of unemployment benefits, job 29.33 vacancy data, and any additional relevant information brought to 29.34 the board's attention; 29.35 (2) the board accounts for all allocations made in section 29.36 116L.17, subdivision 2; 30.1 (3) based on the past expenditures and projected revenue, 30.2 the board estimates future funding needs for services under 30.3 section 116L.17 for the remainder of the current fiscal year and 30.4 the next fiscal year; 30.5 (4) the board determines there will be unspent funds after 30.6 meeting the needs of dislocated workers in the current fiscal 30.7 year and there will be sufficient revenue to meet the needs of 30.8 dislocated workers in the next fiscal year; and 30.9 (5) the board reports its findings in clauses (1) to (4) to 30.10 the chairs of legislative committees with jurisdiction over the 30.11 workforce development fund, to the commissioners of revenue and 30.12 finance, and to the public. 30.13 Sec. 23. Minnesota Statutes 2004, section 116L.17, 30.14 subdivision 1, is amended to read: 30.15 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 30.16 section, the following terms have the meanings given them in 30.17 this subdivision. 30.18 (b) "Commissioner" means the commissioner of employment and 30.19 economic development. 30.20 (c) "Dislocated worker" means an individual who is a 30.21 resident of Minnesota at the time employment ceased or was 30.22 working in the state at the time employment ceased and: 30.23 (1) has been permanently separated or has received a notice 30.24 of permanent separation from public or private sector employment 30.25 and is eligible for or has exhausted entitlement to unemployment 30.26 benefits, and is unlikely to return to the previous industry or 30.27 occupation; 30.28 (2) has been long-term unemployed and has limited 30.29 opportunities for employment or reemployment in the same or a 30.30 similar occupation in the area in which the individual resides, 30.31 including older individuals who may have substantial barriers to 30.32 employment by reason of age; 30.33 (3) has been self-employed, including farmers and ranchers, 30.34 and is unemployed as a result of general economic conditions in 30.35 the community in which the individual resides or because of 30.36 natural disasters; or 31.1 (4) is a displaced homemaker. A "displaced homemaker" is 31.2 an individual who has spent a substantial number of years in the 31.3 home providing homemaking service and (i) has been dependent 31.4 upon the financial support of another; and now due to divorce, 31.5 separation, death, or disability of that person, must find 31.6 employment to self support; or (ii) derived the substantial 31.7 share of support from public assistance on account of dependents 31.8 in the home and no longer receivessuch supportcash assistance 31.9 under chapter 256J. 31.10 To be eligible under this clause, the support must have 31.11 ceased while the worker resided in Minnesota. 31.12 (d) "Eligible organization" means a state or local 31.13 government unit, nonprofit organization, community action 31.14 agency, business organization or association, or labor 31.15 organization. 31.16 (e) "Plant closing" means the announced or actual permanent 31.17 shutdown of a single site of employment, or one or more 31.18 facilities or operating units within a single site of employment. 31.19 (f) "Substantial layoff" means a permanent reduction in the 31.20 workforce, which is not a result of a plant closing, and which 31.21 results in an employment loss at a single site of employment 31.22 during any 30-day period for at least 50 employees excluding 31.23 those employees that work less than 20 hours per week. 31.24 Sec. 24. [116L.18] [SPECIAL INCUMBENT WORKER TRAINING 31.25 GRANTS.] 31.26 Subdivision 1. [PURPOSE.] The purpose of the special 31.27 incumbent worker training grants is to expand opportunities for 31.28 businesses and workers to gain new skills that are in demand in 31.29 the Minnesota economy. The board shall establish criteria for 31.30 incumbent worker grants under this section and may encourage 31.31 creative training models, innovative partnerships, and expansion 31.32 or replication of promising practices. 31.33 Subd. 2. [DEFINITIONS.] (a) For the purposes of this 31.34 section, the following terms have the meanings given them. 31.35 (b) "Incumbent worker" means an individual employed by a 31.36 qualifying employer. 32.1 (c) "Qualifying employer" means a for-profit business or 32.2 nonprofit organization in Minnesota with at least one full-time 32.3 paid employee. Public sector organizations are not considered 32.4 qualifying employers. 32.5 (d) "Eligible organization" has the meaning given in 32.6 section 116L.17. 32.7 Subd. 3. [AMOUNT OF GRANTS.] A grant to an eligible 32.8 organization may not exceed $400,000. 32.9 Subd. 4. [MATCHING FUNDS.] The board shall require 32.10 matching funds from qualifying employers in the form of funding, 32.11 equipment, or faculty. 32.12 Subd. 5. [USE OF FUNDS.] Eligible organizations shall use 32.13 funds granted under this section for direct training services to 32.14 provide a measurable increase in the job-related skills of 32.15 participating incumbent workers. Eligible organizations may 32.16 also provide basic assessment, counseling, and preemployment 32.17 training services requested by the qualifying employer. No 32.18 funds may be used for support services as described in section 32.19 116L.17, subdivision 4, clause (2). 32.20 Subd. 6. [PERFORMANCE OUTCOME MEASURES.] The board and the 32.21 commissioner of employment and economic development shall 32.22 jointly develop performance outcome measures and standards for 32.23 this program. The commissioner and board shall consult with 32.24 eligible organizations in establishing standards. Measures at a 32.25 minimum must include posttraining retention, promotion, and wage 32.26 increase. The board and commissioner shall provide a report to 32.27 the legislature by March 1 of each year on the previous fiscal 32.28 year's program performance. Eligible organizations must provide 32.29 performance data in a timely manner for the completion of this 32.30 report. 32.31 Sec. 25. Minnesota Statutes 2004, section 116L.20, 32.32 subdivision 2, is amended to read: 32.33 Subd. 2. [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 32.34 The money collected under this section shall be deposited in the 32.35 state treasury and credited to the workforce development fund to 32.36 provide for employment and training programs. The workforce 33.1 development fund is created as a special account in the state 33.2 treasury. 33.3 (b) All money in the fund not otherwise appropriated or 33.4 transferred is appropriated to the Job Skills Partnership Board 33.5 for the purposes of section 116L.17 and as provided for in 33.6 paragraph (d). The board must act as the fiscal agent for the 33.7 money and must disburse that money for the purposes of section 33.8 116L.17, not allowing the money to be used for any other 33.9 obligation of the state. All money in the workforce development 33.10 fund shall be deposited, administered, and disbursed in the same 33.11 manner and under the same conditions and requirements as are 33.12 provided by law for the other special accounts in the state 33.13 treasury, except that all interest or net income resulting from 33.14 the investment or deposit of money in the fund shall accrue to 33.15 the fund for the purposes of the fund. 33.16 (c) Reimbursement for costs related to collection of the 33.17 special assessment shall be in an amount negotiated between the 33.18 commissioner and the United States Department of Labor. 33.19 (d) If the board determines that the conditions of section 33.20 116L.05, subdivision 5, have been met, the board may use funds 33.21 for the purposes outlined in sections 116L.04, 116L.06, and 33.22 116L.10 to 116L.14, or to provide incumbent worker training 33.23 services under section 116L.18. 33.24 Sec. 26. Minnesota Statutes 2004, section 183.41, is 33.25 amended by adding a subdivision to read: 33.26 Subd. 4. [ANNUAL PERMIT.] The commissioner shall issue an 33.27 annual permit to a boat for the purpose of carrying passengers 33.28 for hire on the inland waters of the state provided the boat 33.29 satisfies the inspection requirements of this section. A boat 33.30 subject to inspection under this chapter shall be registered 33.31 with the Division of Boiler Inspection and shall be inspected 33.32 before a permit may be issued. 33.33 Sec. 27. Minnesota Statutes 2004, section 183.411, 33.34 subdivision 2a, is amended to read: 33.35 Subd. 2a. [INSPECTION FEES.] Thecommissioner may set fees33.36 fee for inspecting traction engines, show boilers, and show 34.1 engines shall be the hourly rate pursuant to section 34.216A.1285183.545, subdivision 3a. 34.3 Sec. 28. Minnesota Statutes 2004, section 183.411, 34.4 subdivision 3, is amended to read: 34.5 Subd. 3. [LICENSES.] A license to operate steam farm 34.6 traction engines, portable and stationary show engines and 34.7 portable and stationary show boilers shall be issued to an 34.8 applicant who: 34.9(a)(1) is 18 years of age or older; 34.10(b)(2) has a licensed second class or higher class 34.11 engineer or steam traction (hobby) engineer sign the affidavit 34.12 attesting to the applicant's competence in operating said 34.13 devices; 34.14(c)(3) passes a written test for competence in operating 34.15 said devices; 34.16(d)(4) has at least 25 hours of actual operating 34.17 experience on said devices; and 34.18(e)(5) pays the required fee. 34.19 A license shall be valid for the lifetime of the licensee. 34.20 A onetime feeset by the commissionerpursuant to section 34.2116A.1285183.545, subdivision 4, shall be charged for the 34.22 license. 34.23 Sec. 29. Minnesota Statutes 2004, section 183.42, is 34.24 amended to read: 34.25 183.42 [INSPECTIONEACH YEARAND REGISTRATION.] 34.26 Subdivision 1. [INSPECTION.] Every owner, lessee, or other 34.27 person having charge of boilers,or pressure vessels, or any34.28boatsubject to inspection under this chapter shall cause them 34.29 to be inspected by the Division of Boiler Inspection. 34.30 Boilersand boatssubject to inspection under this chapter must 34.31 be inspected at least annually and pressure vessels inspected at 34.32 least every two years except as provided under section 34.33 183.45.A person who fails to have the inspection required by34.34this section shall pay to the commissioner a penalty in the34.35amount of the cost of inspection up to a maximum of $1,000.The 34.36 commissioner shall assess a $250 penalty per applicable boiler 35.1 or pressure vessel for failure to have the inspection required 35.2 by this section and may seal the boiler or pressure vessel for 35.3 refusal to allow an inspection as required by this section. 35.4 Subd. 2. [REGISTRATION.] Every owner, lessee, or other 35.5 person having charge of boilers or pressure vessels subject to 35.6 inspection under this chapter shall register said objects with 35.7 the Division of Boiler Inspection. The registration shall be 35.8 renewed annually and is applicable to each object separately. 35.9 The fee for registration of a boiler or pressure vessel shall be 35.10 pursuant to section 183.545, subdivision 10. The Division of 35.11 Boiler Inspection may issue a billing statement for each boiler 35.12 and pressure vessel on record with the division, and may 35.13 determine a monthly schedule of billings to be followed for 35.14 owners, lessees, or other persons having charge of a boiler or 35.15 pressure vessel subject to inspection under this chapter. 35.16 Subd. 3. [CERTIFICATE OF REGISTRATION.] The Division of 35.17 Boiler Inspection shall issue a certificate of registration that 35.18 lists the boilers and pressure vessels at the location, 35.19 expiration date of the certificate of registration, last 35.20 inspection date of each boiler and pressure vessel, and maximum 35.21 allowable working pressure for each boiler and pressure vessel. 35.22 The commissioner may make an electronic certificate of 35.23 registration available to be printed by the owner, lessee, or 35.24 other person having charge of the boiler or pressure vessel. 35.25 Sec. 30. Minnesota Statutes 2004, section 183.44, 35.26 subdivision 1, is amended to read: 35.27 Subdivision 1. [MASTERSAND PILOTS.] TheDivision of35.28Boiler Inspectioncommissioner or the commissioner's designee 35.29 shall examine all mastersand pilotsof boats and vessels 35.30 carrying passengers for hire on the inland waters of the state 35.31 as to their qualifications and fitness. If foundtrustworthy35.32 qualified and competent to perform their duties as a masteror35.33pilotof a boat carrying passengers for hire, they shall be 35.34givenissued acertificatelicense authorizing them to act as 35.35 such on the inland waters of the state. The license shall be 35.36 renewed annually. Fees for the original issue and renewal of 36.1 the license authorized under this section shall be pursuant to 36.2 section 183.545, subdivision 2. 36.3 Sec. 31. Minnesota Statutes 2004, section 183.51, 36.4 subdivision 2, is amended to read: 36.5 Subd. 2. [APPLICATIONS.] Any person who desires an 36.6 engineer's license shallmakesubmit a written application, on 36.7 blanks furnished by theinspector. The person shall also36.8successfully pass a written examination for such grade of36.9license applied forcommissioner or designee, at least 15 days 36.10 before the requested exam date. The application is valid for 36.11 one year from the date the commissioner or designee received the 36.12 application. 36.13 Sec. 32. Minnesota Statutes 2004, section 183.51, is 36.14 amended by adding a subdivision to read: 36.15 Subd. 2a. [EXAMINATIONS.] Each applicant for a license 36.16 must pass an examination approved by the commissioner. The 36.17 examinations shall be of sufficient scope to establish the 36.18 competency of the applicant to operate a boiler of the 36.19 applicable license class and grade. 36.20 Sec. 33. Minnesota Statutes 2004, section 183.545, is 36.21 amended to read: 36.22 183.545 [FEES FOR INSPECTION.] 36.23 Subdivision 1. [FEE AMOUNT; VESSELS OPERATED ON INLAND 36.24 WATERS.] The fees for the inspection of the hull, boiler, 36.25 machinery, and equipments of vesselsare to be set by the36.26commissioner pursuant to section 16A.1285, for vessels of 5036.27tons burden or over and vessels of less than 50 tons36.28burden.operated on inland waters and that carry passengers for 36.29 hire are as follows: 36.30 (1) annual operating permit and safety inspections shall be 36.31 $200; and 36.32 (2) other inspections, including dry-dock inspections, boat 36.33 stability tests, and plan reviews, are billed at the hourly rate 36.34 set in subdivision 3a. 36.35 Subd. 2. [FEE AMOUNTS; MASTERSAND PILOTS.] The 36.36commissioner shall, pursuant to section 16A.1285, set37.1thelicense and application fee foran examination of an37.2applicant fora master'sor pilot'slicense is $50,for anor 37.3 $20 if the applicant possesses a valid, unlimited, current 37.4 United States Coast Guard master's license. The annual renewal 37.5 of a master'sor a pilot'slicense, and for anis $20. The 37.6 annual renewal if paid later thanten30 days after 37.7 expiration is $35. The fee for replacement of a current, valid 37.8 license is $20. 37.9 Subd. 3. [BOILER AND PRESSURE VESSEL INSPECTION FEES.] The 37.10 fees for the annual inspection of boilers and biennial 37.11 inspection of pressure vessels areto be set by the commissioner37.12pursuant to section 16A.1285, foras follows: 37.13(a)(1) boiler inaccessible for internal inspection, $55; 37.14(b)(2) boiler accessible for internal inspection, $55; 37.15(c)(3) boiler internal inspection over 2,000 square feet 37.16 heating surface shall be billed at the hourly rate set in 37.17 subdivision 3a; 37.18(d) boiler internal inspection over 4,000 square feet37.19heating surface;37.20(e) boiler internal inspection over 10,000 square feet37.21heating surface;37.22(f)(4) boiler accessible for internal inspection requiring 37.23 one-half day or more of inspection time shall be billed at the 37.24established shop inspection feehourly rate set in subdivision 37.25 3a; 37.26(g)(5) pressure vessel for internal inspection via 37.27 manhole, $35; and 37.28(h)(6) pressure vessel inaccessible for internal 37.29 inspection, $35. 37.30An additional fee based on the scale of fees applicable to37.31an inspection shall be charged when it is necessary to make a37.32special trip for a hydrostatic test of a boiler or pressure37.33vessel.37.34 Subd. 3a. [HOURLY RATE.] Thecommissioner shall, pursuant37.35to section 16A.1285, set shop inspection feeshourly rate for an 37.36 inspection not set elsewhere in this chapter is $80 per hour. 38.1 Inspection time includes all time related to theshop38.2 inspection. Travel time, billed at the hourly rate, and travel 38.3 expenses shall be billed for shop inspections, triennial audits, 38.4 boat stability tests, hydrostatic tests of a boiler or pressure 38.5 vessel, or any other inspection or consultation requiring a 38.6 special trip. 38.7 Subd. 4. [APPLICANTSBOILER ENGINEER LICENSE FEES.]The38.8commissioner shall, pursuant to section 16A.1285, set the fee38.9for an examination of an applicantFor the following licenses, 38.10 the nonrefundable license and application fee is: 38.11(a)(1) chief engineer's license, $50; 38.12(b)(2) first class engineer's license, $50; 38.13(c)(3) second class engineer's license, $50; 38.14(d)(4) special engineer's license, $20; and 38.15(e)(5) traction or hobby boiler engineer's license; and, 38.16 $50. 38.17(f) pilot's license.38.18If an applicant, after an examination, is entitled to38.19receive a license, it shall be issued without the payment of any38.20additional charge. Any license so issued expires one year after38.21the date of its issuance.An engineer's license may be renewed 38.22 upon applicationthereforandthepayment of an annual renewal 38.23 feeas set by the commissioner pursuant to section 16A.1285of 38.24 $20. The annual renewal, if paid later than 30 days after 38.25 expiration, is $35. The fee for replacement of a current, valid 38.26 license is $20. 38.27 Subd. 6. [NATIONAL BOARD INSPECTORS.] The fee for an 38.28 examination of an applicant for a National Board of Boiler and 38.29 Pressure Vessels Inspectors commissionshall be set by the38.30commissioner pursuant to section 16A.1285is $100. 38.31 Subd. 7. [NUCLEAR ENDORSEMENT.] The fee for each 38.32 examination of an applicant for a National Board of Boiler and 38.33 Pressure Vessels commissioned inspectors nuclear endorsement 38.34shall be set by the commissioner pursuant to section 16A.1285is 38.35 $100. 38.36 Subd. 8. [CERTIFICATE OF COMPETENCY.] The fee for issuance 39.1 of the original state of Minnesota certificate of competency for 39.2 inspectorsshall be set by the commissioner pursuant to section39.316A.1285is $50. This fee is waived for inspectors who paid the 39.4 examination fee. The fee for an annual renewal of the state of 39.5 Minnesota certificate of competencyshall be set by the39.6commissioner pursuant to section 16A.1285is $35, and is due 39.7 January 1 of each year. The fee for replacement of a current, 39.8 valid license is $35. 39.9 Subd. 9. [DEPOSIT OF FEES.] Fees received under this 39.10 sectionand section 183.57must be deposited in the state 39.11 treasury and credited to the general fund. 39.12 Subd. 10. [BOILER AND PRESSURE VESSEL REGISTRATION 39.13 FEE.] The annual registration fee for boilers and pressure 39.14 vessels in use and required to be inspected per section 183.42 39.15 shall be $10 per boiler and pressure vessel. 39.16 Sec. 34. Minnesota Statutes 2004, section 183.57, is 39.17 amended to read: 39.18 183.57 [REPORT OF INSURER; EXEMPTION FROM INSPECTION.] 39.19 Subdivision 1. [REPORT REQUIRED.] Any insurance company 39.20 insuring boilers and pressure vessels in this state shallmake a39.21writtenfile a reportthereofshowing the date of inspection, 39.22 the name of the person making the inspection, the condition of 39.23 the boiler or pressure vessel as disclosed by the inspection, 39.24 whether thesame isboiler was operated by a properly licensed 39.25 engineer,andwhether a policy of insurance has been issued by 39.26 the company with reference to the boiler or pressure vessel, and 39.27 other information as directed by the chief boiler inspector. 39.28 Within1521 days after the inspection, the insurance company 39.29 shallmail a copy offile the reporttowith the chief boiler 39.30 inspectorandor designee. The insurer shall provide a copy of 39.31 the report to the person, firm, or corporation owning or 39.32 operating the inspected boiler or pressure vesselinspected. 39.33 Such report shall be made annually for boilers and biennially 39.34 for pressure vessels. 39.35 Subd. 2. [EXEMPTION.] Every boiler or pressure vessel as 39.36 to which any insurance company authorized to do business in this 40.1 state has issued a policy of insurance, after the inspection 40.2 thereof, is exempt from inspection by the department made under 40.3 sections 183.375 to 183.62, while the same continues to be 40.4 insured and provided it continues to be inspected in accordance 40.5 with the inspection schedule set forth in sections 183.42 and 40.6 183.45, and the person, firm, or corporation owning or operating 40.7 the same has an unexpired certificate ofexemption from40.8inspection, issued by the chief boiler40.9inspectorregistration.The fee set by the commissioner40.10pursuant to section 16A.1285, on the first object inspected and40.11on each object thereafter shall apply to each exempt object. A40.12certificate of exemption expires one year from date of issue.40.13The certificate of exemption shall be posted in a conspicuous40.14place near the boiler or pressure vessel or in the plant office40.15or boiler room described therein and to which it relates. Every40.16insurance company shall give written notice to the chief boiler40.17inspector of the cancellation or expiration of every policy of40.18insurance issued by it with reference to policies in this state,40.19and the cause or reason for the cancellation or expiration.40.20These notices of cancellation or expiration shall show the date40.21of the policy and the date when the cancellation has or will40.22become effective.40.23Subd. 4. [CERTIFICATE OF EXEMPTION.] The Division of40.24Boiler Inspection may issue a billing and exemption certificate40.25for each boiler and pressure vessel which the division records40.26indicate shall be or has been inspected by an insurance company40.27which is providing coverage for the boilers and pressure40.28vessels. The division may determine the monthly schedule of the40.29billings to be followed for each business insured.40.30 Subd. 5. [NOTICE OF INSURANCE COVERAGE.] The insurer shall 40.31 notify the commissioner or designee in writing of its policy to 40.32 insure and inspect boilers and pressure vessels at a location 40.33 within 30 days of the effective date of insurance coverage, 40.34 including binders. The insurer must also provide a duplicate of 40.35 the notification to the insured. 40.36 Subd. 6. [NOTICE OF DISCONTINUED COVERAGE.] The insurer 41.1 shall notify the commissioner or designee in writing, within 30 41.2 days of the effective date, of the discontinuation of insurance 41.3 coverage of the boilers and pressure vessels at a location and 41.4 the cause or reason for the discontinuation. This notice shall 41.5 show the effective date when the discontinued policy takes 41.6 effect. 41.7 Subd. 7. [PENALTIES.] The commissioner shall assess upon 41.8 the insurer a $50 penalty, per applicable boiler and pressure 41.9 vessel, for failing to submit an inspection report or notify the 41.10 commissioner of insurance coverage or discontinuation of 41.11 insurance coverage as set forth in this section. The 41.12 commissioner shall assess upon the insurer a penalty of $100, 41.13 per applicable boiler and pressure vessel, for failing to 41.14 conduct the required in-service inspection within 120 days after 41.15 the inspection was due in accordance with section 183.42. 41.16 Sec. 35. Minnesota Statutes 2004, section 216C.41, 41.17 subdivision 2, is amended to read: 41.18 Subd. 2. [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 41.19 payments must be made according to this section to (1) a 41.20 qualified on-farm biogas recovery facility, (2) the owner or 41.21 operator of a qualified hydropower facility or qualified wind 41.22 energy conversion facility for electric energy generated and 41.23 sold by the facility, (3) a publicly owned hydropower facility 41.24 for electric energy that is generated by the facility and used 41.25 by the owner of the facility outside the facility, or (4) the 41.26 owner of a publicly owned dam that is in need of substantial 41.27 repair, for electric energy that is generated by a hydropower 41.28 facility at the dam and the annual incentive payments will be 41.29 used to fund the structural repairs and replacement of 41.30 structural components of the dam, or to retire debt incurred to 41.31 fund those repairs. 41.32 (b) Payment may only be made upon receipt by the 41.33 commissioner offinancecommerce of an incentive payment 41.34 application that establishes that the applicant is eligible to 41.35 receive an incentive payment and that satisfies other 41.36 requirements the commissioner deems necessary. The application 42.1 must be in a form and submitted at a time the commissioner 42.2 establishes. 42.3 (c) There is annually appropriated from thegeneral fund42.4 renewable development account under section 116C.779 to the 42.5 commissioner of commerce sums sufficient to make the payments 42.6 required under this section,other thanin addition to the 42.7 amounts funded by the renewable development account as specified 42.8 in subdivision 5a. 42.9 Sec. 36. Minnesota Statutes 2004, section 216C.41, 42.10 subdivision 5, is amended to read: 42.11 Subd. 5. [AMOUNT OF PAYMENT; WIND FACILITIES LIMIT.] (a) 42.12 An incentive payment is based on the number of kilowatt hours of 42.13 electricity generated. The amount of the payment is: 42.14 (1) for a facility described under subdivision 2, paragraph 42.15 (a), clause (4), 1.0 cent per kilowatt hour; and 42.16 (2) for all other facilities, 1.5 cents per kilowatt hour. 42.17 For electricity generated by qualified wind energy conversion 42.18 facilities, the incentive payment under this section is limited 42.19 to no more than100200 megawatts of nameplate capacity. 42.20 (b) For wind energy conversion systems installed and 42.21 contracted for after January 1, 2002, the total size of a wind 42.22 energy conversion system under this section must be determined 42.23 according to this paragraph. Unless the systems are 42.24 interconnected with different distribution systems, the 42.25 nameplate capacity of one wind energy conversion system must be 42.26 combined with the nameplate capacity of any other wind energy 42.27 conversion system that is: 42.28 (1) located within five miles of the wind energy conversion 42.29 system; 42.30 (2) constructed within the same calendar year as the wind 42.31 energy conversion system; and 42.32 (3) under common ownership. 42.33 In the case of a dispute, the commissioner of commerce shall 42.34 determine the total size of the system, and shall draw all 42.35 reasonable inferences in favor of combining the systems. 42.36 (c) In making a determination under paragraph (b), the 43.1 commissioner of commerce may determine that two wind energy 43.2 conversion systems are under common ownership when the 43.3 underlying ownership structure contains similar persons or 43.4 entities, even if the ownership shares differ between the two 43.5 systems. Wind energy conversion systems are not under common 43.6 ownership solely because the same person or entity provided 43.7 equity financing for the systems. 43.8 Sec. 37. Minnesota Statutes 2004, section 216C.41, 43.9 subdivision 5a, is amended to read: 43.10 Subd. 5a. [RENEWABLE DEVELOPMENT ACCOUNT.] The Department 43.11 of Commerce shall authorize payment of the renewable energy 43.12 production incentive to wind energy conversion systems for10043.13 200 megawatts of nameplate capacityin addition to the capacity43.14authorized under subdivision 5and to on-farm biogas recovery 43.15 facilities. Payment of the incentive shall be made from the 43.16 renewable energy development account as provided under section 43.17 116C.779, subdivision 2. 43.18 Sec. 38. Minnesota Statutes 2004, section 237.11, is 43.19 amended to read: 43.20 237.11 [INSPECTING RECORDS AND PROPERTY; REPORTS REQUIRED.] 43.21 Every telephone company subject to the provisions of this 43.22 chapter, wherever organized, shall keep an office in this state, 43.23 and make such reports to the department as it shall from time to 43.24 time require. All books, records, and files, whether they 43.25 relate to competitive or noncompetitive services, and all of its 43.26 property shall be at all times subject to inspection by the 43.27 commission and the department. It shall close its accounts and 43.28 take therefrom a balance sheet on December 31 of each year, and 43.29 on or before May 1 following, such balance sheet, together with 43.30 such other information as the department shall require, verified 43.31 by an officer of the telephone company, shall be filed with the 43.32 commission and the department, except that a local exchange 43.33 carrier or a competitive local exchange carrier, as defined in 43.34 Minnesota Rules, chapter 7811, is only required to file an 43.35 annual report that includes the company's name, contact person, 43.36 annual revenue, and status of its 911 update plan. 44.1 In the event that any telephone company shall fail to file 44.2 its annual report, as provided by this section, the department 44.3 is authorized to make such an examination of the books, records, 44.4 and vouchers of the company as is necessary to procure the 44.5 necessary data for the annual report and cause the same to be 44.6 prepared. The expense of procuring this data and preparing this 44.7 report shall be paid by the telephone company failing to report, 44.8 and the amount paid shall be credited by the commissioner of 44.9 finance to funds appropriated for the expense of the department. 44.10 The department is authorized to force collection of such 44.11 sum by an action at law in the name of the department. 44.12 Sec. 39. Minnesota Statutes 2004, section 237.295, 44.13 subdivision 1, is amended to read: 44.14 Subdivision 1. [PAYMENT FOR INVESTIGATIONFILING FEE FOR 44.15 NEW AUTHORITY.](a) Whenever the department or commission, in a44.16proceeding upon its own motion, on complaint, or upon an44.17application to it, considers it necessary, in order to carry out44.18the duties imposed on it, to investigate the books, accounts,44.19practices, and activities of any company, parties to the44.20proceeding shall pay the expenses reasonably attributable to the44.21proceeding. The department and commission shall ascertain the44.22expenses, and the department shall render a bill for those44.23expenses to the parties, at the conclusion of the proceeding.44.24The department is authorized to submit billings to parties at44.25intervals selected by the department during the course of a44.26proceeding.44.27(b) The allocation of costs may be adjusted for cause by44.28the commission during the course of the proceeding, or upon the44.29closing of the docket and issuance of an order. In addition to44.30the rights granted in subdivision 3, parties to a proceeding may44.31object to the allocation at any time during the proceeding.44.32Withdrawal by a party to a proceeding does not absolve the party44.33from paying allocated costs as determined by the commission.44.34The commission may decide that a party should not pay any44.35allocated costs of the proceeding.44.36(c) The bill constitutes notice of the assessment and a45.1demand for payment. The amount of the bills assessed by the45.2department under this subdivision must be paid by the parties45.3into the state treasury within 30 days from the date of45.4assessment. The total amount, in a calendar year, for which a45.5telephone company may become liable, by reason of costs incurred45.6by the department and commission within that calendar year, may45.7not exceed two-fifths of one percent of the gross jurisdictional45.8operating revenue of the telephone company in the last preceding45.9calendar year. Direct charges may be assessed without regard to45.10this limitation until the gross jurisdictional operating revenue45.11of the telephone company for the preceding calendar year has45.12been reported for the first time. Where, under this45.13subdivision, costs are incurred within a calendar year that are45.14in excess of two-fifths of one percent of the gross45.15jurisdictional operating revenues, the excess costs are not45.16chargeable as part of the remainder under subdivision 2.45.17(d) Except as otherwise provided in paragraph (e), for45.18purposes of assessing the cost of a proceeding to a party,45.19"party" means any entity or group subject to the laws and rules45.20of this state, however organized, whether public or private,45.21whether domestic or foreign, whether for profit or nonprofit,45.22and whether natural, corporate, or political, such as a business45.23or commercial enterprise organized as any type or combination of45.24corporation, limited liability company, partnership, limited45.25liability partnership, proprietorship, association, cooperative,45.26joint venture, carrier, or utility, and any successor or45.27assignee of any of them; a social or charitable organization;45.28and any type or combination of political subdivision, which45.29includes the executive, judicial, or legislative branch of the45.30state, a local government unit, an agency of the state or a45.31local government unit, or a combination of any of them.45.32 (e) For assessment and billing purposes, "party" does not45.33include the Department of Commerce or the Residential Utilities45.34Division of the Office of Attorney General; any entity or group45.35instituted primarily for the purpose of mutual help and not45.36conducted for profit; intervenors awarded compensation under46.1section 237.075, subdivision 10; or any individual or group or46.2counsel for the individual or group representing the interests46.3of end users or classes of end users of services provided by46.4telephone companies or telecommunications carriers, as46.5determined by the commission.An application for a new 46.6 authority must be accompanied by a payment not to exceed $2,000 46.7 as determined by the Public Utilities Commission. This fee will 46.8 be reviewed annually and adjusted accordingly. 46.9 [EFFECTIVE DATE.] This section is effective the day 46.10 following final enactment. 46.11 Sec. 40. Minnesota Statutes 2004, section 237.295, 46.12 subdivision 2, is amended to read: 46.13 Subd. 2. [ASSESSMENT OF COSTS.] The department and 46.14 commission shall quarterly, at least 30 days before the start of 46.15 each quarter, estimate the total of their expenditures in the 46.16 performance of their duties relating to telephone companies, 46.17 other than amounts chargeable to telephone companies under 46.18 subdivision 1, 5, or 6. The remainder must be assessed by the 46.19 department to the telephone companies operating in this state in 46.20 proportion to their respective gross jurisdictional operating 46.21 revenues during the last calendar year. The assessment must be 46.22 paid into the state treasury within 30 days after the bill has 46.23 been mailed to the telephone companies. The bill constitutes 46.24 notice of the assessment and demand of payment. The total 46.25 amount that may be assessed to the telephone companies under 46.26 this subdivision may not exceedone-eighththree-eighths of one 46.27 percent of the total gross jurisdictional operating revenues 46.28 during the calendar year. The assessment for the third quarter 46.29 of each fiscal year must be adjusted to compensate for the 46.30 amount by which actual expenditures by the commission and 46.31 department for the preceding fiscal year were more or less than 46.32 the estimated expenditures previously assessed. A telephone 46.33 company with gross jurisdictional operating revenues of less 46.34 than $5,000 is exempt from assessments under this subdivision. 46.35 [EFFECTIVE DATE.] This section is effective the day 46.36 following final enactment. 47.1 Sec. 41. [237.491] [COMBINED PER NUMBER FEE.] 47.2 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 47.3 subdivision apply to this section. 47.4 (b) "911 emergency and public safety communications program" 47.5 means the program governed by chapter 403. 47.6 (c) "Minnesota telephone number" means a ten-digit 47.7 telephone number being used to connect to the public switched 47.8 telephone network and starting with area code 218, 320, 507, 47.9 612, 651, 763, or 952, or any subsequent area code assigned to 47.10 this state. 47.11 (d) "Service provider" means a provider doing business in 47.12 this state who provides real time, two-way voice service with a 47.13 Minnesota telephone number. 47.14 (e) "Telecommunications access Minnesota program" means the 47.15 program governed by sections 237.50 to 237.55. 47.16 (f) "Telephone assistance program" means the program 47.17 governed by sections 237.69 to 237.711. 47.18 Subd. 2. [PER NUMBER FEE.] (a) By January 15, 2006, the 47.19 commissioner of commerce shall report to the legislature and to 47.20 the senate Committee on Jobs, Energy, and Community Development 47.21 and the house Committee on Regulated Industries, recommendations 47.22 for the amount of and method for assessing a fee that would 47.23 apply to each service provider based upon the number of 47.24 Minnesota telephone numbers in use by current customers of the 47.25 service provider. The fee would be set at a level calculated to 47.26 generate only the amount of revenue necessary to fund: 47.27 (1) the telephone assistance program and the 47.28 telecommunications access Minnesota program at the levels 47.29 established by the commission under sections 237.52, subdivision 47.30 2, and 237.70; and 47.31 (2) the 911 emergency and public safety communications 47.32 program at the levels appropriated by law to the commissioner of 47.33 public safety and the commissioner of finance for purposes of 47.34 sections 403.11, 403.113, 403.27, 403.30, and 403.31 for each 47.35 fiscal year. 47.36 (b) The recommendations must include any changes to 48.1 Minnesota Statutes necessary to establish the procedures whereby 48.2 each service provider, to the extent allowed under federal law, 48.3 would collect and remit the fee proceeds to the commissioner of 48.4 revenue. The commissioner of revenue would allocate the fee 48.5 proceeds to the three funding areas in paragraph (a) and credit 48.6 the allocations to the appropriate accounts. 48.7 (c) The recommendations must be designed to allow the 48.8 combined per telephone number fee to be collected beginning July 48.9 1, 2006. The per access line fee used to collect revenues to 48.10 support the TAP, TAM, and 911 programs remains in effect until 48.11 the statutory changes necessary to implement the per telephone 48.12 number fee have been enacted into law. 48.13 (d) As part of the process of developing the 48.14 recommendations and preparing the report to the legislature 48.15 required under paragraph (a), the commissioner of commerce must, 48.16 at a minimum, consult regularly with the Departments of Public 48.17 Safety, Finance, and Administration, the Public Utilities 48.18 Commission, service providers, the chairs and ranking minority 48.19 members of the senate and house committees, subcommittees, and 48.20 divisions having jurisdiction over telecommunications and public 48.21 safety, and other affected parties. 48.22 [EFFECTIVE DATE.] This section is effective the day 48.23 following final enactment. 48.24 Sec. 42. Minnesota Statutes 2004, section 239.011, 48.25 subdivision 2, is amended to read: 48.26 Subd. 2. [DUTIES AND POWERS.] To carry out the 48.27 responsibilities in section 239.01 and subdivision 1, the 48.28 director: 48.29 (1) shall take charge of, keep, and maintain in good order 48.30 the standard of weights and measures of the state and keep a 48.31 seal so formed as to impress, when appropriate, the letters 48.32 "MINN" and the date of sealing upon the weights and measures 48.33 that are sealed; 48.34 (2) has general supervision of the weights, measures, and 48.35 weighing and measuring devices offered for sale, sold, or in use 48.36 in the state; 49.1 (3) shall maintain traceability of the state standards to 49.2 the national standards of the National Institute of Standards 49.3 and Technology; 49.4 (4) shall enforce this chapter; 49.5 (5) shall grant variances from department rules, within the 49.6 limits set by rule, when appropriate to maintain good commercial 49.7 practices or when enforcement of the rules would cause undue 49.8 hardship; 49.9 (6) shall conduct investigations to ensure compliance with 49.10 this chapter; 49.11 (7) may delegate to division personnel the 49.12 responsibilities, duties, and powers contained in this section; 49.13 (8) shall test annually, and approve when found to be 49.14 correct, the standards of weights and measures used by the 49.15 division, by a town, statutory or home rule charter city, or 49.16 county within the state, or by a person using standards to 49.17 repair, adjust, or calibrate commercial weights and measures; 49.18 (9) shall inspect and test weights and measures kept, 49.19 offered, or exposed for sale; 49.20 (10) shall inspect and test, to ascertain if they are 49.21 correct, weights and measures commercially used to: 49.22 (i) determine the weight, measure, or count of commodities 49.23 or things sold, offered, or exposed for sale, on the basis of 49.24 weight, measure, or count; and 49.25 (ii) compute the basic charge or payment for services 49.26 rendered on the basis of weight, measure, or count; 49.27 (11) shall approve for use and mark weights and measures 49.28 that are found to be correct; 49.29 (12) shall reject, and mark as rejected, weights and 49.30 measures that are found to be incorrect and may seize them if 49.31 those weights and measures: 49.32 (i) are not corrected within the time specified by the 49.33 director; 49.34 (ii) are used or disposed of in a manner not specifically 49.35 authorized by the director; or 49.36 (iii) are found to be both incorrect and not capable of 50.1 being made correct, in which case the director shall condemn 50.2 those weights and measures; 50.3 (13) shall weigh, measure, or inspect packaged commodities 50.4 kept, offered, or exposed for sale, sold, or in the process of 50.5 delivery, to determine whether they contain the amount 50.6 represented and whether they are kept, offered, or exposed for 50.7 sale in accordance with this chapter and department rules. In 50.8 carrying out this section, the director must employ recognized 50.9 sampling procedures, such as those contained in National 50.10 Institute of Standards and Technology Handbook 133, "Checking 50.11 the Net Contents of Packaged Goods"; 50.12 (14) shall prescribe the appropriate term or unit of weight 50.13 or measure to be used for a specific commodity when an existing 50.14 term or declaration of quantity does not facilitate value 50.15 comparisons by consumers, or creates an opportunity for consumer 50.16 confusion; 50.17 (15) shall allow reasonable variations from the stated 50.18 quantity of contents, including variations caused by loss or 50.19 gain of moisture during the course of good distribution practice 50.20 or by unavoidable deviations in good manufacturing practice, 50.21 only after the commodity has entered commerce within the state; 50.22 (16) shall inspect and test petroleum products in 50.23 accordance with this chapter and chapter 296A; 50.24 (17) shall distribute and post notices for used motor oil 50.25 and used motor oil filters and lead acid battery recycling in 50.26 accordance with sections 239.54, 325E.11, and 325E.115; 50.27 (18) shall collect inspection fees in accordance with 50.28 sections 239.10 and 239.101; and 50.29 (19) shall provide metrological services and support to 50.30 businesses and individuals in the United States who wish to 50.31 market products and services in the member nations of the 50.32 European Economic Community, and other nations outside of the 50.33 United States by: 50.34 (i) meeting, to the extent practicable, the measurement 50.35 quality assurance standards described in the International 50.36 Standards Organization ISO9000, Guide 2517025; 51.1 (ii) maintaining, to the extent practicable, certification 51.2 of the metrology laboratory bya governing body appointed by the51.3European Economic Communityan internationally accepted 51.4 accrediting body such as the National Voluntary Laboratory 51.5 Accreditation Program (NVLAP); and 51.6 (iii) providing calibration and consultation services to 51.7 metrology laboratories in government and private industry in the 51.8 United States. 51.9 Sec. 43. Minnesota Statutes 2004, section 239.05, is 51.10 amended by adding a subdivision to read: 51.11 Subd. 3a. [AUTOMOTIVE FUEL.] For the purpose of enforcing 51.12 the gasoline octane requirements in section 239.792, "automotive 51.13 fuel" has the meaning given it in Code of Federal Regulations, 51.14 title 16, section 306.0. 51.15 Sec. 44. Minnesota Statutes 2004, section 239.05, 51.16 subdivision 10b, is amended to read: 51.17 Subd. 10b. [OXYGENATEETHANOL BLENDER.] "OxygenateEthanol 51.18 blender" means a person whohas registered with the division to51.19blend and distribute, transport, sell, or offerblends and 51.20 distributes, transports, sells, or offers to sell gasoline 51.21 containinga minimum of 2.0 percent, and an average of 2.7ten 51.22 percentoxygenethanol byweightvolume. 51.23 Sec. 45. Minnesota Statutes 2004, section 239.09, is 51.24 amended to read: 51.25 239.09 [SPECIAL POLICE POWERS.] 51.26 When necessary to enforce this chapter or rules adopted 51.27 under the authority granted by section 239.06, the director is: 51.28 (1) authorized and empowered to arrest, without formal 51.29 warrant, any violator of sections 325E.11 and 325E.115 or of the 51.30 statute in relation to weights and measures; 51.31 (2) empowered to seize for use as evidence and without 51.32 formal warrant, any false weight, measure, weighing or measuring 51.33 device, package, or commodity found to be used, retained, or 51.34 offered or exposed for sale or sold in violation of law; 51.35 (3) during normal business hours, authorized to enter 51.36 commercial premises; 52.1 (4) if the premises are not open to the public, authorized 52.2 to enter commercial premises only after presenting credentials 52.3 and obtaining consent or after obtaining a search warrant; 52.4 (5) empowered to issue stop-use, hold, and removal orders 52.5 with respect to weights and measures commercially used, and 52.6 packaged commodities or bulk commodities kept, offered, or 52.7 exposed for sale, that do not comply with the weights and 52.8 measures laws;and52.9 (6) empowered, upon reasonable suspicion of a violation of 52.10 the weights and measures laws, to stop a commercial vehicle and, 52.11 after presentation of credentials, inspect the contents of the 52.12 vehicle, require that the person in charge of the vehicle 52.13 produce documents concerning the contents, and require the 52.14 person to proceed with the vehicle to some specified place for 52.15 inspection; and 52.16 (7) empowered, after written warning, to issue citations of 52.17 not less than $100 and not more than $500 to a person who 52.18 violates any provision of this chapter, any provision of the 52.19 rules adopted under the authority contained in this chapter, or 52.20 any provision of statutes enforced by the Division of Weights 52.21 and Measures. 52.22 Sec. 46. Minnesota Statutes 2004, section 239.101, 52.23 subdivision 3, is amended to read: 52.24 Subd. 3. [PETROLEUM INSPECTION FEE.] (a) An inspection fee 52.25 is imposed (1) on petroleum products when received by the first 52.26 licensed distributor, and (2) on petroleum products received and 52.27 held for sale or use by any person when the petroleum products 52.28 have not previously been received by a licensed distributor. 52.29 The petroleum inspection fee is $1 for every 1,000 gallons 52.30 received. The commissioner of revenue shall collect the fee. 52.31 The revenue from 81 cents of the feemust first be applied to52.32cover the amounts appropriated. Fifteen cents of the inspection52.33fee must be deposited in an account in the special revenue fund52.34andis appropriated to the commissioner of commerce for the cost 52.35 ofpetroleum product quality inspection expenses and for the52.36inspection and testing of petroleum product-measuring53.1equipmentoperations of the Division of Weights and Measures, 53.2 petroleum supply monitoring, and the oil burner retrofit 53.3 program. The remainder of the fee must be deposited in the 53.4 general fund. 53.5 (b) The commissioner of revenue shall credit a person for 53.6 inspection fees previously paid in error or for any material 53.7 exported or sold for export from the state upon filing of a 53.8 report as prescribed by the commissioner of revenue. 53.9 (c) The commissioner of revenue may collect the inspection 53.10 fee along with any taxes due under chapter 296A. 53.11 Sec. 47. Minnesota Statutes 2004, section 239.75, 53.12 subdivision 1, is amended to read: 53.13 Subdivision 1. [INSPECTION TO BE MADE.] The director shall: 53.14 (1) take samples, free of charge, of petroleum products 53.15 wherever processed, blended, held, stored, imported, 53.16 transferred, offered for sale or use, or sold in Minnesota, 53.17 limiting each sample to:53.18(i) two-tenths of oneone-half gallon, except when an53.19octane test is planned; or53.20(ii) seven-tenths of one gallon for an octane test; 53.21 (2) inspect and test petroleum product samples according to 53.22 the methods of ASTM or other valid test methods adopted by rule, 53.23 to determine whether the products comply with the specifications 53.24 in section 239.761; 53.25 (3) inspect petroleum product storage tanks to ensure that 53.26 the products are free from water and impurities; 53.27 (4) inspect and test samples submitted to the department by 53.28 a licensed distributor, making the test results available to the 53.29 distributor; 53.30 (5) inspect the labeling, price posting, and price 53.31 advertising of petroleum product dispensers and advertising 53.32 signs at businesses or locations where petroleum products are 53.33 sold, offered for sale or use, or dispensed into motor vehicles; 53.34 (6) maintain records of all inspections and tests according 53.35 to the records retention policies of the Department of 53.36 Administration; 54.1 (7) delegate to division personnel, at the director's 54.2 discretion, any or all of the responsibilities, duties, and 54.3 powers in sections 239.75 to 239.80; 54.4 (8) publishoctanetest data and information to assist 54.5 persons who use, produceand, distribute, or sellgasoline and54.6gasoline-oxygenate blendspetroleum-based heating and engine 54.7 fuels; 54.8 (9)register gasoline-oxygenate blenders according to the54.9requirements of the EPA;54.10(10)audit the records of any person responsible for the 54.11 product to determine compliance with sections 239.75 to 239.792; 54.12(11)(10) after consulting with the commissionerof the54.13Pollution Control Agency, grant a temporary exemption from the 54.14oxygenated gasolinegasoline-ethanol blending requirements in 54.15 section 239.791 if the supply ofoxygenateethanol is 54.16 insufficient to producegasoline-oxygenategasoline-ethanol 54.17 blendsduring an EPA-designated carbon monoxide control period; 54.18 and 54.19(12)(11) adopt, as an enforcement policy for the division, 54.20 reasonable margins of uncertainty for the tests used to 54.21 determine compliance with the specifications in section 239.761, 54.22 the oxygen percentages in section 239.791, and the octane 54.23 requirements in section 239.792 and apply the margins of 54.24 uncertainty to only tests performed by the division, not by 54.25 adding the margins to uncertainties in tests performed by any 54.26 person responsible for the product. 54.27 Sec. 48. Minnesota Statutes 2004, section 239.75, 54.28 subdivision 5, is amended to read: 54.29 Subd. 5. [PRODUCT QUALITY, RESPONSIBILITY.] After a 54.30gasoline productpetroleum-based engine fuel is purchased, 54.31 transferred, or otherwise removed from a refinery or terminal, 54.32 the person responsible for the product shall: 54.33 (1) keep the product free from contamination with water and 54.34 impurities; 54.35 (2) not blend the product with dissimilar petroleum 54.36 products, for example, gasoline must not be blended with diesel 55.1 fuel; 55.2 (3) not blend the product with any contaminant, dye, 55.3 chemical, or additive, except: 55.4 (i) agriculturally derived, denatured ethanol that complies 55.5 with the specifications in this chapter; 55.6 (ii) an antiknock additive, or an additive designed to 55.7 replace tetra-ethyl lead, that is registered by the EPA;or55.8 (iii) a dye to distinguish heating fuel from low sulfur 55.9 diesel fuel; or 55.10 (iv) biodiesel fuel that complies with the specifications 55.11 in this chapter;and 55.12 (4) maintain a record of the name or chemical composition 55.13 of the additive, with the product shipping manifest or bill of 55.14 lading for one year after the date of the manifest or bill. 55.15 Sec. 49. Minnesota Statutes 2004, section 239.761, is 55.16 amended to read: 55.17 239.761 [PETROLEUM PRODUCT SPECIFICATIONS.] 55.18 Subdivision 1. [APPLICABILITY.] A person responsible for 55.19 the product must meet the specifications in this section. The 55.20 specifications apply to petroleum products processed, held, 55.21 stored, imported, transferred, distributed, offered for 55.22 distribution, offered for sale or use, or sold in Minnesota. 55.23 Subd. 2. [COORDINATION WITH DEPARTMENTS OF REVENUE AND 55.24 AGRICULTURE.] The petroleum product specifications in this 55.25 section are intended to match the definitions and specifications 55.26 in sections 41A.09 and 296A.01. Petroleum products named in 55.27 this section are defined in section 296A.01. 55.28 Subd. 3. [GASOLINE.] (a) Gasoline that is not blended with 55.29 ethanol must not be contaminated with water or other impurities 55.30 and must comply with ASTM specificationD4814-01D4814-04a. 55.31 Gasoline that is not blended with ethanol must also comply with 55.32 the volatility requirements in Code of Federal Regulations, 55.33 title 40, part 80. 55.34 (b) After gasoline is sold, transferred, or otherwise 55.35 removed from a refinery or terminal, a person responsible for 55.36 the product: 56.1 (1) may blend the gasoline with agriculturally derived 56.2 ethanol as provided in subdivision 4; 56.3 (2) shall not blend the gasoline with any oxygenate other 56.4 than denatured, agriculturally derived ethanol; 56.5 (3) shall not blend the gasoline with other petroleum 56.6 products that are not gasoline or denatured, agriculturally 56.7 derived ethanol; 56.8 (4) shall not blend the gasoline with products commonly and 56.9 commercially known as casinghead gasoline, absorption gasoline, 56.10 condensation gasoline, drip gasoline, or natural gasoline; and 56.11 (5) may blend the gasoline with a detergent additive, an 56.12 antiknock additive, or an additive designed to replace 56.13 tetra-ethyl lead, that is registered by the EPA. 56.14 Subd. 4. [GASOLINE BLENDED WITH ETHANOL.] (a) Gasoline may 56.15 be blended with up to ten percent, by volume, agriculturally 56.16 derived, denatured ethanol that complies with the requirements 56.17 of subdivision 5. 56.18 (b) A gasoline-ethanol blend must: 56.19 (1) comply with the volatility requirements in Code of 56.20 Federal Regulations, title 40, part 80; 56.21 (2) comply with ASTM specificationD4814-01D4814-04a, or 56.22 the gasoline base stock from which a gasoline-ethanol blend was 56.23 produced must comply with ASTM specificationD4814-01D4814-04a; 56.24 and 56.25 (3) not be blended with casinghead gasoline, absorption 56.26 gasoline, condensation gasoline, drip gasoline, or natural 56.27 gasoline after the gasoline-ethanol blend has been sold, 56.28 transferred, or otherwise removed from a refinery or terminal. 56.29 Subd. 5. [DENATURED ETHANOL.] Denatured ethanol that is to 56.30 be blended with gasoline must be agriculturally derived and must 56.31 comply with ASTM specificationD4806-01D4806-04a. This 56.32 includes the requirement that ethanol may be denatured only as 56.33 specified in Code of Federal Regulations, title 27, parts 20 and 56.34 21. 56.35 Subd. 6. [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] (a) 56.36 A person responsible for the product shall comply with the 57.1 following requirements: 57.2 (1) after July 1, 2000, gasoline containing in excess of 57.3 one-third of one percent, in total, of nonethanol oxygenates 57.4 listed in paragraph (b) must not be sold or offered for sale at 57.5 any time in this state; and 57.6 (2) after July 1, 2005, gasoline containing any of the 57.7 nonethanol oxygenates listed in paragraph (b) must not be sold 57.8 or offered for sale in this state. 57.9 (b) The oxygenates prohibited under paragraph (a) are: 57.10 (1) methyl tertiary butyl ether, as defined in section 57.11 296A.01, subdivision 34; 57.12 (2) ethyl tertiary butyl ether, as defined in section 57.13 296A.01, subdivision 18; or 57.14 (3) tertiary amyl methyl ether. 57.15 (c) Gasoline that is blended with a nonethanol oxygenate 57.16 must comply with ASTM specificationD4814-01D4814-04a. 57.17 Nonethanol oxygenates must not be blended into gasoline after 57.18 the gasoline has been sold, transferred, or otherwise removed 57.19 from a refinery or terminal. 57.20 Subd. 7. [HEATING FUEL OIL.] Heating fuel oil must comply 57.21 with ASTM specificationD396-01D396-02a. 57.22 Subd. 8. [DIESEL FUEL OIL.] Diesel fuel oil must comply 57.23 with ASTM specificationD975-01aD975-04b, except that diesel 57.24 fuel oil is not required to meet the diesel lubricity standard 57.25 until the date that the biodiesel fuel requirement in section 57.26 239.77, subdivision 2, becomes effective or December 31, 2005, 57.27 whichever comes first. 57.28 Subd. 9. [KEROSENE.] Kerosene must comply with ASTM 57.29 specificationD3699-01D3699-03. 57.30 Subd. 10. [AVIATION GASOLINE.] Aviation gasoline must 57.31 comply with ASTM specificationD910-00D910-04. 57.32 Subd. 11. [AVIATION TURBINE FUEL, JET FUEL.] Aviation 57.33 turbine fuel and jet fuel must comply with ASTM specification 57.34D1655-01D1655-04. 57.35 Subd. 12. [GAS TURBINE FUEL OIL.] Fuel oil for use in 57.36 nonaviation gas turbine engines must comply with ASTM 58.1 specificationD2880-00D2880-03. 58.2 Subd. 13. [E85.] A blend of ethanol and gasoline, 58.3 containing at least 60 percent ethanol and not more than 85 58.4 percent ethanol, produced for use as a motor fuel in alternative 58.5 fuel vehicles as defined in section 296A.01, subdivision 5, must 58.6 comply with ASTM specification D5798-99 (2004). 58.7 Subd. 14. [M85.] A blend of methanol and gasoline, 58.8 containing at least 85 percent methanol, produced for use as a 58.9 motor fuel in alternative fuel vehicles as defined in section 58.10 296A.01, subdivision 5, must comply with ASTM specification 58.11 D5797-96. 58.12 Sec. 50. Minnesota Statutes 2004, section 239.77, is 58.13 amended by adding a subdivision to read: 58.14 Subd. 4. [DISCLOSURE.] A refinery or terminal shall 58.15 provide, at the time diesel fuel is sold or transferred from the 58.16 refinery or terminal, a bill of lading or shipping manifest to 58.17 the person who receives the fuel. For biodiesel-blended 58.18 products, the bill of lading or shipping manifest must disclose 58.19 biodiesel content, stating volume percentage, gallons of 58.20 biodiesel per gallons of petroleum diesel base-stock, or an ASTM 58.21 "Bxx" designation where "xx" denotes the volume percent 58.22 biodiesel included in the blended product. This subdivision 58.23 does not apply to sales or transfers of biodiesel blend stock 58.24 between refineries, between terminals, or between a refinery and 58.25 a terminal. 58.26 Sec. 51. Minnesota Statutes 2004, section 239.79, 58.27 subdivision 4, is amended to read: 58.28 Subd. 4. [SALE OF CERTAIN PETROLEUM PRODUCTS ON GROSS 58.29 VOLUME BASIS.] A person responsible for the products listed in 58.30 this subdivision shall transfer, ship, distribute, offer for 58.31 distribution, sell, or offer to sell the products by volume. 58.32 Volumetric measurement of the product must not be temperature 58.33 compensated, or adjusted by any other factor. This subdivision 58.34 applies to gasoline, number one and number two diesel fuel oils, 58.35 number one and number two heating fuel oils, kerosene, denatured 58.36 ethanolthat is to be blended into gasoline, and an oxygenate59.1that is to be blended into gasoline, and biodiesel. This 59.2 subdivision does not apply to the measurement of petroleum 59.3 products transferred, sold, or traded between refineries, 59.4 between refineries and terminals, or between terminals. 59.5 Sec. 52. Minnesota Statutes 2004, section 239.791, 59.6 subdivision 1, is amended to read: 59.7 Subdivision 1. [MINIMUM ETHANOL CONTENT REQUIRED.] (a) 59.8 Except as provided in subdivisions 10 to 14, a person 59.9 responsible for the product shall ensure that all gasoline sold 59.10 or offered for sale in Minnesota must contain at least 10.0 59.11 percent denatured ethanol by volume. 59.12 (b) For purposes of enforcing the minimum ethanol 59.13 requirement of paragraph (a), a gasoline/ethanol blend will be 59.14 construed to be in compliance if the ethanol content, exclusive 59.15 of denaturants and permitted contaminants, comprises not less 59.16 than 9.2 percent by volume and not more than 10.0 percent by 59.17 volume of the blend as determined by an appropriate United 59.18 States Environmental Protection Agency or American Society of 59.19 Testing Materials standard method of analysis of alcohol/ether 59.20 content inmotorengine fuels. 59.21 Sec. 53. Minnesota Statutes 2004, section 239.791, 59.22 subdivision 7, is amended to read: 59.23 Subd. 7. [OXYGENATEETHANOL RECORDS; STATE AUDIT.] The 59.24 director shall audit the records of registeredoxygenateethanol 59.25 blenders to ensure that each blender has met all requirements in 59.26 this chapter. Specific information or data relating to sales 59.27 figures or to processes or methods of production unique to the 59.28 blender or that would tend to adversely affect the competitive 59.29 position of the blender must be only for the confidential use of 59.30 the director, unless otherwise specifically authorized by the 59.31 registered blender. 59.32 Sec. 54. Minnesota Statutes 2004, section 239.791, 59.33 subdivision 8, is amended to read: 59.34 Subd. 8. [DISCLOSURE.] A refinery or terminal, shall 59.35 provide, at the time gasoline is sold or transferred from the 59.36 refinery or terminal, a bill of lading or shipping manifest to 60.1 the person who receives the gasoline. For oxygenated gasoline, 60.2 the bill of lading or shipping manifest must include the 60.3 identity and the volume percentage or gallons of oxygenate 60.4 included in the gasoline, and it must state: "This fuel 60.5 contains an oxygenate. Do not blend this fuel with ethanol or 60.6 with any other oxygenate."For nonoxygenated gasoline sold or60.7transferred before October 1, 1997, the bill or manifest must60.8state: "This fuel must not be sold at retail in a carbon60.9monoxide control area."For nonoxygenated gasoline sold or 60.10 transferred after September 30, 1997, the bill or manifest must 60.11 state: "This fuel is not oxygenated. It must not be sold at 60.12 retail in Minnesota." This subdivision does not apply to sales 60.13 or transfers of gasoline between refineries, between terminals, 60.14 or between a refinery and a terminal. 60.15 Sec. 55. Minnesota Statutes 2004, section 239.791, 60.16 subdivision 15, is amended to read: 60.17 Subd. 15. [EXEMPTION FOR CERTAIN BLEND PUMPS.] (a) A 60.18 person responsible for the product, who offers for sale, sells, 60.19 or dispenses nonoxygenated premium gasoline under one or more of 60.20 the exemptions in subdivisions 10 to 14, may sell, offer for 60.21 sale, or dispense oxygenated gasoline that contains less than 60.22 the minimum amount of ethanol required under subdivision 1 if 60.23 all of the following conditions are met: 60.24 (1) the blended gasoline has an octane rating of 88 or 60.25 greater; 60.26 (2) the gasoline is a blend of oxygenated gasoline meeting 60.27 the requirements of subdivision 1 with nonoxygenated premium 60.28 gasoline; 60.29 (3) the blended gasoline contains not more than ten percent 60.30 nonoxygenated premium gasoline; 60.31 (4) the blending of oxygenated gasoline with nonoxygenated 60.32 gasoline occurs within the gasoline dispenser; and 60.33 (5) the gasoline station at which the gasoline is sold, 60.34 offered for sale, or delivered is equipped to store gasoline in 60.35 not more than two storage tanks. 60.36 (b) This subdivision applies only to those persons who meet 61.1 the conditions in paragraph (a), clauses (1) through (5), onthe61.2effective date of this actAugust 1, 2004, and have registered 61.3 with the director within three months ofthe effectivethat date 61.4of this act. 61.5 Sec. 56. Minnesota Statutes 2004, section 239.792, is 61.6 amended to read: 61.7 239.792 [GASOLINE OCTANEAUTOMOTIVE FUEL RATINGS, 61.8 CERTIFICATION, AND POSTING.] 61.9 Subdivision 1. [DISCLOSUREDUTIES OF REFINERS, IMPORTERS, 61.10 AND PRODUCERS.] Amanufacturer, hauler, blender, agent, jobber,61.11consignment agentrefiner, importer, ordistributor who sells,61.12delivers, or distributes gasoline or gasoline-oxygenate blends,61.13shall provide, at the time of delivery, a bill of lading or61.14shipping manifest to the person who receives the gasoline. The61.15bill or manifest must state the minimum octane of the gasoline61.16delivered. The stated octane number must be the average of the61.17"motor method" octane number and the "research method" octane61.18number as determined by the test methods in ASTM specification61.19D4814-01, or by a test method adopted by department61.20ruleproducer of automotive fuel must comply with the automotive 61.21 fuel rating, certification, and record-keeping requirements of 61.22 Code of Federal Regulations, title 16, sections 306.5 to 306.7. 61.23 Subd. 2. [DISPENSER LABELINGDUTIES OF DISTRIBUTORS.]A61.24person responsible for the product shall clearly, conspicuously,61.25and permanently label each gasoline dispenser that is used to61.26sell gasoline or gasoline-oxygenate blends at retail or to61.27dispense gasoline or gasoline-oxygenate blends into the fuel61.28supply tanks of motor vehicles, with the minimum octane of the61.29gasoline dispensed. The label must meet the following61.30requirements:61.31(a) The octane number displayed on the label must represent61.32the average of the "motor method" octane number and the61.33"research method" octane number as determined by the test61.34methods in ASTM specification D4814-01, or by a test method61.35adopted by department rule.61.36(b) The label must be at least 2-1/2 inches high and three62.1inches wide, with a yellow background, black border, and black62.2figures and letters.62.3(c) The number representing the octane of the gasoline must62.4be at least one inch high.62.5(d) The label must include the words "minimum octane" and62.6the term "(R+M)/2" or "(RON+MON)/2."A licensed distributor of 62.7 automotive fuel must comply with the certification and 62.8 record-keeping provisions of Code of Federal Regulations, title 62.9 16, sections 306.8 and 306.9. 62.10 Subd. 3. [DUTIES OF RETAILERS.] A person responsible for 62.11 the product who sells or transfers automotive fuel to a consumer 62.12 must comply with the automotive fuel rating posting and 62.13 record-keeping requirements, and the label specifications of 62.14 Code of Federal Regulations, title 16, sections 306.10 to 306.12. 62.15 Subd. 4. [DUTIES OF DIRECTOR.] Upon request, the director 62.16 shall provide any person with a copy of Code of Federal 62.17 Regulations, title 16, part 306. Upon request, the director 62.18 shall provide any distributor, retailer, or organization of 62.19 distributors or retailers with the label specifications in Code 62.20 of Federal Regulations, title 16, section 306.12. 62.21 Sec. 57. Minnesota Statutes 2004, section 268.19, 62.22 subdivision 1, is amended to read: 62.23 Subdivision 1. [USE OF DATA.] (a) Except as otherwise 62.24 provided by this section, data gathered from any person pursuant 62.25 to the administration of the Minnesota Unemployment Insurance 62.26 Law are private data on individuals or nonpublic data not on 62.27 individuals as defined in section 13.02, subdivisions 9 and 12, 62.28 and may not be disclosed except pursuant to a court order or 62.29 section 13.05. A subpoena shall not be considered a court 62.30 order. These data may be disseminated to and used by the 62.31 following agencies without the consent of the subject of the 62.32 data: 62.33 (1) state and federal agencies specifically authorized 62.34 access to the data by state or federal law; 62.35 (2) any agency of any other state or any federal agency 62.36 charged with the administration of an unemployment insurance 63.1 program; 63.2 (3) any agency responsible for the maintenance of a system 63.3 of public employment offices for the purpose of assisting 63.4 individuals in obtaining employment; 63.5 (4) human rights agencies within Minnesota that have 63.6 enforcement powers; 63.7 (5) the Department of Revenue only to the extent necessary 63.8 for its duties under Minnesota laws; 63.9 (6) public and private agencies responsible for 63.10 administering publicly financed assistance programs for the 63.11 purpose of monitoring the eligibility of the program's 63.12 recipients; 63.13 (7) the Department of Labor and Industry and the Division 63.14 of Insurance Fraud Prevention in the Department of Commerce on 63.15 an interchangeable basis with the department for uses consistent 63.16 with the administration of their duties under Minnesota law; 63.17 (8) local and state welfare agencies for monitoring the 63.18 eligibility of the data subject for assistance programs, or for 63.19 any employment or training program administered by those 63.20 agencies, whether alone, in combination with another welfare 63.21 agency, or in conjunction with the department or to monitor and 63.22 evaluate the statewide Minnesota family investment program by 63.23 providing data on recipients and former recipients of food 63.24 stamps or food support, cash assistance under chapter 256, 256D, 63.25 256J, or 256K, child care assistance under chapter 119B, or 63.26 medical programs under chapter 256B, 256D, or 256L; 63.27 (9) local and state welfare agencies for the purpose of 63.28 identifying employment, wages, and other information to assist 63.29 in the collection of an overpayment debt in an assistance 63.30 program; 63.31 (10) local, state, and federal law enforcement agencies for 63.32 the sole purpose of ascertaining the last known address and 63.33 employment location of a person who is the subject of a criminal 63.34 investigation; 63.35(10)(11) the federal Immigration and Naturalization 63.36 Service shall have access to data on specific individuals and 64.1 specific employers provided the specific individual or specific 64.2 employer is the subject of an investigation by that agency; and 64.3(11)(12) the Department of Health solely for the purposes 64.4 of epidemiologic investigations. 64.5 (b) Data on individuals and employers that are collected, 64.6 maintained, or used by the department in an investigation 64.7 pursuant to section 268.182 are confidential as to data on 64.8 individuals and protected nonpublic data not on individuals as 64.9 defined in section 13.02, subdivisions 3 and 13, and must not be 64.10 disclosed except pursuant to statute or court order or to a 64.11 party named in a criminal proceeding, administrative or 64.12 judicial, for preparation of a defense. 64.13 (c) Data gathered by the department pursuant to the 64.14 administration of the Minnesota unemployment insurance program 64.15 must not be made the subject or the basis for any suit in any 64.16 civil proceedings, administrative or judicial, unless the action 64.17 is initiated by the department. 64.18 Sec. 58. Minnesota Statutes 2004, section 296A.01, 64.19 subdivision 2, is amended to read: 64.20 Subd. 2. [AGRICULTURAL ALCOHOL GASOLINE.] "Agricultural 64.21 alcohol gasoline" means a gasoline-ethanol blend of up to ten 64.22 percent agriculturally derived fermentation ethanol derived from 64.23 agricultural products, such as potatoes, cereal, grains, cheese 64.24 whey, sugar beets, forest products, or other renewable 64.25 resources, that: 64.26 (1) meets the specifications in ASTM specificationD4806-0164.27 D4806-04a; and 64.28 (2) is denatured as specified in Code of Federal 64.29 Regulations, title 27, parts 20 and 21. 64.30 Sec. 59. Minnesota Statutes 2004, section 296A.01, 64.31 subdivision 7, is amended to read: 64.32 Subd. 7. [AVIATION GASOLINE.] "Aviation gasoline" means 64.33 any gasoline that is capable of use for the purpose of producing 64.34 or generating power for propelling internal combustion engine 64.35 aircraft, that meets the specifications in ASTM 64.36 specificationD910-00D910-04, and that either: 65.1 (1) is invoiced and billed by a producer, manufacturer, 65.2 refiner, or blender to a distributor or dealer, by a distributor 65.3 to a dealer or consumer, or by a dealer to consumer, as 65.4 "aviation gasoline"; or 65.5 (2) whether or not invoiced and billed as provided in 65.6 clause (1), is received, sold, stored, or withdrawn from storage 65.7 by any person, to be used for the purpose of producing or 65.8 generating power for propelling internal combustion engine 65.9 aircraft. 65.10 Sec. 60. Minnesota Statutes 2004, section 296A.01, 65.11 subdivision 8, is amended to read: 65.12 Subd. 8. [AVIATION TURBINE FUEL AND JET FUEL.] "Aviation 65.13 turbine fuel" and "jet fuel" mean blends of hydrocarbons derived 65.14 from crude petroleum, natural gasoline, and synthetic 65.15 hydrocarbons, intended for use in aviation turbine engines, and 65.16 that meet the specifications in ASTM specification 65.17D1655-01D1655.04. 65.18 Sec. 61. Minnesota Statutes 2004, section 296A.01, 65.19 subdivision 14, is amended to read: 65.20 Subd. 14. [DIESEL FUEL OIL.] "Diesel fuel oil" means a 65.21 petroleum distillate or blend of petroleum distillate and 65.22 residual fuels, intended for use as a motor fuel in internal 65.23 combustion diesel engines, that meets the specifications in ASTM 65.24 specificationD975-01AD975-04b, except that diesel fuel oil is 65.25 not required to meet the diesel lubricity standard until the 65.26 date that the biodiesel fuel requirement in section 239.77, 65.27 subdivision 2, becomes effective or December 31, 2005, whichever 65.28 comes first. Diesel fuel includes number 1 and number 2 fuel 65.29 oils. K-1 kerosene is not diesel fuel unless it is blended with 65.30 diesel fuel for use in motor vehicles. 65.31 Sec. 62. Minnesota Statutes 2004, section 296A.01, 65.32 subdivision 19, is amended to read: 65.33 Subd. 19. [E85.] "E85" means a petroleum product that is a 65.34 blend of agriculturally derived denatured ethanol and gasoline 65.35 or natural gasoline that typically contains 85 percent ethanol 65.36 by volume, but at a minimum must contain 60 percent ethanol by 66.1 volume. For the purposes of this chapter, the energy content of 66.2 E85 will be considered to be 82,000 BTUs per gallon. E85 66.3 produced for use as a motor fuel in alternative fuel vehicles as 66.4 defined in subdivision 5 must comply with ASTM specification 66.5 D5798-99 (2004). 66.6 Sec. 63. Minnesota Statutes 2004, section 296A.01, 66.7 subdivision 20, is amended to read: 66.8 Subd. 20. [ETHANOL, DENATURED.] "Ethanol, denatured" means 66.9 ethanol that is to be blended with gasoline, has been 66.10 agriculturally derived, and complies with ASTM specification 66.11D4806-01D4806-04a. This includes the requirement that ethanol 66.12 may be denatured only as specified in Code of Federal 66.13 Regulations, title 27, parts 20 and 21. 66.14 Sec. 64. Minnesota Statutes 2004, section 296A.01, 66.15 subdivision 22, is amended to read: 66.16 Subd. 22. [GAS TURBINE FUEL OIL.] "Gas turbine fuel oil" 66.17 means fuel that contains mixtures of hydrocarbon oils free of 66.18 inorganic acid and excessive amounts of solid or fibrous foreign 66.19 matter, intended for use in nonaviation gas turbine engines, and 66.20 that meets the specifications in ASTM specification 66.21D2880-00D2880-03. 66.22 Sec. 65. Minnesota Statutes 2004, section 296A.01, 66.23 subdivision 23, is amended to read: 66.24 Subd. 23. [GASOLINE.] (a) "Gasoline" means: 66.25 (1) all products commonly or commercially known or sold as 66.26 gasoline regardless of their classification or uses, except 66.27 casinghead gasoline, absorption gasoline, condensation gasoline, 66.28 drip gasoline, or natural gasoline that under the requirements 66.29 of section 239.761, subdivision 3, must not be blended with 66.30 gasoline that has been sold, transferred, or otherwise removed 66.31 from a refinery or terminal; and 66.32 (2) any liquid prepared, advertised, offered for sale or 66.33 sold for use as, or commonly and commercially used as, a fuel in 66.34 spark-ignition, internal combustion engines, and that when 66.35 tested by the Weights and Measures Division meets the 66.36 specifications in ASTM specificationD4814-01D4814-04a. 67.1 (b) Gasoline that is not blended with ethanol must not be 67.2 contaminated with water or other impurities and must comply with 67.3 both ASTM specificationD4814-01D4814-04a and the volatility 67.4 requirements in Code of Federal Regulations, title 40, part 80. 67.5 (c) After gasoline is sold, transferred, or otherwise 67.6 removed from a refinery or terminal, a person responsible for 67.7 the product: 67.8 (1) may blend the gasoline with agriculturally derived 67.9 ethanol, as provided in subdivision 24; 67.10 (2) must not blend the gasoline with any oxygenate other 67.11 than denatured, agriculturally derived ethanol; 67.12 (3) must not blend the gasoline with other petroleum 67.13 products that are not gasoline or denatured, agriculturally 67.14 derived ethanol; 67.15 (4) must not blend the gasoline with products commonly and 67.16 commercially known as casinghead gasoline, absorption gasoline, 67.17 condensation gasoline, drip gasoline, or natural gasoline; and 67.18 (5) may blend the gasoline with a detergent additive, an 67.19 antiknock additive, or an additive designed to replace 67.20 tetra-ethyl lead, that is registered by the EPA. 67.21 Sec. 66. Minnesota Statutes 2004, section 296A.01, 67.22 subdivision 24, is amended to read: 67.23 Subd. 24. [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] 67.24 "Gasoline blended with nonethanol oxygenate" means gasoline 67.25 blended with ETBE, MTBE, or other alcohol or ether, except 67.26 denatured ethanol, that is approved as an oxygenate by the EPA, 67.27 and that complies with ASTM specificationD4814-01D4814-04a. 67.28 Oxygenates, other than denatured ethanol, must not be blended 67.29 into gasoline after the gasoline has been sold, transferred, or 67.30 otherwise removed from a refinery or terminal. 67.31 Sec. 67. Minnesota Statutes 2004, section 296A.01, 67.32 subdivision 25, is amended to read: 67.33 Subd. 25. [GASOLINE BLENDED WITH ETHANOL.] "Gasoline 67.34 blended with ethanol" means gasoline blended with up to ten 67.35 percent, by volume, agriculturally derived, denatured ethanol. 67.36 The blend must comply with the volatility requirements in Code 68.1 of Federal Regulations, title 40, part 80. The blend must also 68.2 comply with ASTM specificationD4814-01D4814-04a, or the 68.3 gasoline base stock from which a gasoline-ethanol blend was 68.4 produced must comply with ASTM specificationD4814-01D4814-04a; 68.5 and the gasoline-ethanol blend must not be blended with 68.6 casinghead gasoline, absorption gasoline, condensation gasoline, 68.7 drip gasoline, or natural gasoline after the gasoline-ethanol 68.8 blend has been sold, transferred, or otherwise removed from a 68.9 refinery or terminal. The blend need not comply with ASTM 68.10 specificationD4814-01D4814-04a if it is subjected to a 68.11 standard distillation test. For a distillation test, a 68.12 gasoline-ethanol blend is not required to comply with the 68.13 temperature specification at the 50 percent liquid recovery 68.14 point, if the gasoline from which the gasoline-ethanol blend was 68.15 produced complies with all of the distillation specifications. 68.16 Sec. 68. Minnesota Statutes 2004, section 296A.01, 68.17 subdivision 26, is amended to read: 68.18 Subd. 26. [HEATING FUEL OIL.] "Heating fuel oil" means a 68.19 petroleum distillate, blend of petroleum distillates and 68.20 residuals, or petroleum residual heating fuel that meets the 68.21 specifications in ASTM specificationD396-01D396-02a. 68.22 Sec. 69. Minnesota Statutes 2004, section 296A.01, 68.23 subdivision 28, is amended to read: 68.24 Subd. 28. [KEROSENE.] "Kerosene" means a refined petroleum 68.25 distillate consisting of a homogeneous mixture of hydrocarbons 68.26 essentially free of water, inorganic acidic and basic compounds, 68.27 and excessive amounts of particulate contaminants and that meets 68.28 the specifications in ASTM specificationD3699-01D3699-03. 68.29 Sec. 70. Minnesota Statutes 2004, section 298.22, is 68.30 amended by adding a subdivision to read: 68.31 Subd. 9. [SALE OR PRIVATIZATION OF FUNCTIONS.] The 68.32 commissioner of Iron Range resources and rehabilitation may not 68.33 sell or privatize any project area or function of the agency 68.34 without prior approval by a majority vote of the board. 68.35 Sec. 71. [325F.991] [911 EMERGENCY PHONE SERVICE 68.36 REPRESENTATIONS.] 69.1 Subdivision 1. [DEFINITIONS.] For purposes of this 69.2 section, the terms defined in this subdivision have the meanings 69.3 given them. 69.4 (a) "911 emergency telecommunications system" means a 69.5 dedicated emergency telecommunications system required by 69.6 section 403.025. 69.7 (b) "Person" means an individual, corporation, firm, or 69.8 other legal entity. 69.9 (c) "Service provider" means a person doing business in 69.10 Minnesota who provides real time, two-way voice service 69.11 interconnected with the public switched telephone network using 69.12 numbers allocated for Minnesota by the North American Numbering 69.13 Plan Administration. 69.14 Subd. 2. [REPRESENTATIONS OF 911 SERVICE.] A person shall 69.15 not advertise, market, or otherwise represent that the person 69.16 furnishes a service capable of providing access to emergency 69.17 services by dialing 911 unless the person provides a service 69.18 that routes 911 calls through the 911 emergency 69.19 telecommunications system. 69.20 Subd. 3. [DISCLOSURE.] A service provider that does not 69.21 provide 911 dialing that routes 911 calls through the 911 69.22 emergency telecommunications system must disclose that fact in 69.23 all advertisements, marketing materials, and contracts. The 69.24 disclosure must be in capital letters, in 12-point font, and on 69.25 the front page of the advertisement, marketing materials, and 69.26 contracts. The disclosure must state: "THIS SERVICE DOES NOT 69.27 ROUTE 911 CALLS THROUGH THE 911 EMERGENCY SYSTEM." 69.28 Subd. 4. [CERTAIN CALLS NOT 911 CALLS.] For purposes of 69.29 this section, 911 calls routed to the general access number at a 69.30 public safety answering point do not qualify as being routed 69.31 through a 911 emergency telecommunications system. 69.32 [EFFECTIVE DATE.] This section is effective the day 69.33 following final enactment. 69.34 Sec. 72. Minnesota Statutes 2004, section 326.975, 69.35 subdivision 1, is amended to read: 69.36 Subdivision 1. [GENERALLY.] (a) In addition to any other 70.1 fees, each applicant for a license under sections 326.83 to 70.2 326.98 shall pay a fee to the contractor's recovery fund. The 70.3 contractor's recovery fund is created in the state treasury and 70.4 must be administered by the commissioner in the manner and 70.5 subject to all the requirements and limitations provided by 70.6 section 82.43 with the following exceptions: 70.7 (1) each licensee who renews a license shall pay in 70.8 addition to the appropriate renewal fee an additional fee which 70.9 shall be credited to the contractor's recovery fund. The amount 70.10 of the fee shall be based on the licensee's gross annual 70.11 receipts for the licensee's most recent fiscal year preceding 70.12 the renewal, on the following scale: 70.13 Fee Gross Receipts 70.14 $100 under $1,000,000 70.15 $150 $1,000,000 to $5,000,000 70.16 $200 over $5,000,000 70.17 Any person who receives a new license shall pay a fee based on 70.18 the same scale; 70.19 (2)(i) the sole purpose of this fund is to compensate any 70.20 aggrieved owner or lessee of residential property located within 70.21 this state who obtains a final judgment in any court of 70.22 competent jurisdiction against a licensee licensed under section 70.23 326.84, on grounds of fraudulent, deceptive, or dishonest 70.24 practices, conversion of funds, or failure of performance 70.25 arising directly out of any transaction when the judgment debtor 70.26 was licensed and performed any of the activities enumerated 70.27 under section 326.83, subdivision 19, on the owner's residential 70.28 property or on residential property rented by the lessee, or on 70.29 new residential construction which was never occupied prior to 70.30 purchase by the owner, or which was occupied by the licensee for 70.31 less than one year prior to purchase by the owner, and which 70.32 cause of action arose on or after April 1, 1994; and 70.33 (ii) reimburse the Department of Commerce for all legal and 70.34 administrative expenses, including staffing costs, incurred in 70.35 administering the fund; 70.36 (3) nothing may obligate the fund for more than $50,000 per 71.1 claimant, nor more than $75,000 per licensee; and 71.2 (4) nothing may obligate the fund for claims based on a 71.3 cause of action that arose before the licensee paid the recovery 71.4 fund fee set in clause (1), or as provided in section 326.945, 71.5 subdivision 3. 71.6 (b) Should the commissioner pay from the contractor's 71.7 recovery fund any amount in settlement of a claim or toward 71.8 satisfaction of a judgment against a licensee, the license shall 71.9 be automatically suspended upon the effective date of an order 71.10 by the court authorizing payment from the fund. No licensee 71.11 shall be granted reinstatement until the licensee has repaid in 71.12 full, plus interest at the rate of 12 percent a year, twice the 71.13 amount paid from the fund on the licensee's account, and has 71.14 obtained a surety bond issued by an insurer authorized to 71.15 transact business in this state in the amount of at least 71.16 $40,000. 71.17 Sec. 73. Minnesota Statutes 2004, section 345.47, 71.18 subdivision 3, is amended to read: 71.19 Subd. 3. [SECURITIES.] Securities listed on an established 71.20 stock exchange shall be sold at the prevailing prices on the 71.21 exchange. Other securities may be sold over the counter at 71.22 prevailing prices or,with prior approval of the State Board of71.23Investment,by another method the commissioner determines 71.24 advisable. United States government savings bonds and United 71.25 States war bonds shall be presented to the United States for 71.26 payment. 71.27 Sec. 74. Minnesota Statutes 2004, section 345.47, 71.28 subdivision 3a, is amended to read: 71.29 Subd. 3a. [HOLDING PERIOD.]All securities presumed71.30abandoned under section 345.35 and delivered to the commissioner71.31must be held for at least three years before they are sold. A71.32person making a claim under this section is entitled to receive71.33either the securities delivered to the commissioner by the71.34holder, if they still remain in the hands of the commissioner,71.35or the proceeds received from the sale, but no person has any71.36claim under this section against the state, the holder, any72.1transfer agent, registrar, or other person acting for or on72.2behalf of a holder for any appreciation in the value of the72.3property occurring after delivery by the holder to the72.4commissioner.If the property is of a type customarily sold on 72.5 a recognized market or of a type which may be sold over the 72.6 counter at prevailing prices, the commissioner may sell the 72.7 property without notice by publication or otherwise. The 72.8 commissioner may proceed with the liquidation after holding for 72.9 one year, with the exception of securities being held as the 72.10 result of an insurance company demutualization, these types of 72.11 securities may be sold upon receipt. The language provided in 72.12 this section grants to the commissioner express authority to 72.13 sell any property including, but not limited to, stocks, bonds, 72.14 notes, bills, and all other public or private securities. A 72.15 person making a claim under section 345.35 is entitled to 72.16 receive the securities delivered to the administrator by the 72.17 holder, if they still remain in the custody of the 72.18 administrator, or the net proceeds received from sale, and is 72.19 not entitled to receive any appreciation in the value of the 72.20 property occurring after sale by the commissioner. The 72.21 commissioner may liquidate all unclaimed securities currently 72.22 held in custody in accordance with the provisions of this 72.23 section. 72.24 Sec. 75. Minnesota Statutes 2004, section 373.40, 72.25 subdivision 1, is amended to read: 72.26 Subdivision 1. [DEFINITIONS.] For purposes of this 72.27 section, the following terms have the meanings given. 72.28 (a) "Bonds" means an obligation as defined under section 72.29 475.51. 72.30 (b) "Capital improvement" means acquisition or betterment 72.31 of public lands, development rights in the form of conservation 72.32 easements under chapter 84C, buildings, or other improvements 72.33 within the county for the purpose of a county courthouse, 72.34 administrative building, health or social service facility, 72.35 correctional facility, jail, law enforcement center, hospital, 72.36 morgue, library, park, qualified indoor ice arena, and roads and 73.1 bridges. An improvement must have an expected useful life of 73.2 five years or more to qualify. "Capital improvement" does not 73.3 include light rail transit or any activity related to it or a 73.4 recreation or sports facility building (such as, but not limited 73.5 to, a gymnasium, ice arena, racquet sports facility, swimming 73.6 pool, exercise room or health spa), unless the building is part 73.7 of an outdoor park facility and is incidental to the primary 73.8 purpose of outdoor recreation. 73.9 (c)"Commissioner" means the commissioner of employment and73.10economic development.73.11(d)"Metropolitan county" means a county located in the 73.12 seven-county metropolitan area as defined in section 473.121 or 73.13 a county with a population of 90,000 or more. 73.14(e)(d) "Population" means the population established by 73.15 the most recent of the following (determined as of the date the 73.16 resolution authorizing the bonds was adopted): 73.17 (1) the federal decennial census, 73.18 (2) a special census conducted under contract by the United 73.19 States Bureau of the Census, or 73.20 (3) a population estimate made either by the Metropolitan 73.21 Council or by the state demographer under section 4A.02. 73.22(f)(e) "Qualified indoor ice arena" means a facility that 73.23 meets the requirements of section 373.43. 73.24(g)(f) "Tax capacity" means total taxable market value, 73.25 but does not include captured market value. 73.26 Sec. 76. Minnesota Statutes 2004, section 373.40, 73.27 subdivision 3, is amended to read: 73.28 Subd. 3. [CAPITAL IMPROVEMENT PLAN.] (a) A county may 73.29 adopt a capital improvement plan. The plan must cover at least 73.30 the five-year period beginning with the date of its adoption. 73.31 The plan must set forth the estimated schedule, timing, and 73.32 details of specific capital improvements by year, together with 73.33 the estimated cost, the need for the improvement, and sources of 73.34 revenues to pay for the improvement. In preparing the capital 73.35 improvement plan, the county board must consider for each 73.36 project and for the overall plan: 74.1 (1) the condition of the county's existing infrastructure, 74.2 including the projected need for repair or replacement; 74.3 (2) the likely demand for the improvement; 74.4 (3) the estimated cost of the improvement; 74.5 (4) the available public resources; 74.6 (5) the level of overlapping debt in the county; 74.7 (6) the relative benefits and costs of alternative uses of 74.8 the funds; 74.9 (7) operating costs of the proposed improvements; and 74.10 (8) alternatives for providing services more efficiently 74.11 through shared facilities with other counties or local 74.12 government units. 74.13 (b) The capital improvement plan and annual amendments to 74.14 itmust beare not effective until approved by the county board 74.15 after public hearing.The county must submit the capital74.16improvement plan to the community development division of the74.17Department of Employment and Economic Development. The plan is74.18not effective if the commissioner disapproves the plan within 9074.19days after it was submitted. If the commissioner has not74.20disapproved the plan within 90 days after its submission, the74.21plan is deemed approved and effective. The commissioner shall74.22disapprove a capital improvement plan only if the commissioner74.23determines (1) that the planned improvements cannot be financed74.24within the limits specified in subdivision 4, or (2) the county74.25in preparing the plan did not consider the factors listed in74.26this subdivision or failed to gather the information necessary74.27to evaluate the plan under the factors, or (3) the proposed74.28improvements will result in unnecessary duplication of public74.29facilities provided by other units of government in the region74.30or there is insufficient demand for the facility. If the plan74.31is disapproved by the commissioner and the county board does not74.32withdraw the plan, the capital improvement plan must be74.33submitted to the voters for approval. If a majority of the74.34voters approve, the plan is approved and effective.74.35 Sec. 77. Minnesota Statutes 2004, section 462A.05, 74.36 subdivision 3a, is amended to read: 75.1 Subd. 3a. [REFINANCINGNONPROFITS; RESIDENTIAL HOUSING.] 75.2 It may refinance the existing indebtedness ofnonprofit75.3entities, as defined by the agencyowners of rental property, 75.4 secured by residential housing for occupancy by persons and 75.5 families of low and moderate income, if refinancing is 75.6 determined by the agency to be necessary to reduce housing costs 75.7 to an affordable level or to maintain the supply of affordable 75.8 low-income housing. The authority granted in this subdivision 75.9 is in addition to and not in limitation of the authority granted 75.10 in section 462A.05, subdivision 14. 75.11 Sec. 78. Minnesota Statutes 2004, section 462A.33, 75.12 subdivision 2, is amended to read: 75.13 Subd. 2. [ELIGIBLE RECIPIENTS.] Challenge grants or loans 75.14 may be made to a city, a federally recognized American Indian 75.15 tribe or subdivision located in Minnesota, a tribal housing 75.16 corporation, a private developer, a nonprofit organization, or 75.17 the owner of the housing, including individuals. For the 75.18 purpose of this section, "city" has the meaning given it in 75.19 section 462A.03, subdivision 21. To the extent practicable, 75.20 grants and loans shall be made so that an approximately equal 75.21 number of housing units are financed in the metropolitan area 75.22 and in the nonmetropolitan area. 75.23 Sec. 79. Minnesota Statutes 2004, section 517.08, 75.24 subdivision 1b, is amended to read: 75.25 Subd. 1b. [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.] 75.26 (a) The local registrar shall examine upon oath the party 75.27 applying for a license relative to the legality of the 75.28 contemplated marriage. If at the expiration of a five-day 75.29 period, on being satisfied that there is no legal impediment to 75.30 it, including the restriction contained in section 259.13, the 75.31 local registrar shall issue the license, containing the full 75.32 names of the parties before and after marriage, and county and 75.33 state of residence, with the county seal attached, and make a 75.34 record of the date of issuance. The license shall be valid for 75.35 a period of six months. In case of emergency or extraordinary 75.36 circumstances, a judge of the district court of the county in 76.1 which the application is made, may authorize the license to be 76.2 issued at any time before the expiration of the five days. 76.3 Except as provided in paragraph (b), the local registrar shall 76.4 collect from the applicant a fee of$85$75 for administering 76.5 the oath, issuing, recording, and filing all papers required, 76.6 and preparing and transmitting to the state registrar of vital 76.7 statistics the reports of marriage required by this section. If 76.8 the license should not be used within the period of six months 76.9 due to illness or other extenuating circumstances, it may be 76.10 surrendered to the local registrar for cancellation, and in that 76.11 case a new license shall issue upon request of the parties of 76.12 the original license without fee. A local registrar who 76.13 knowingly issues or signs a marriage license in any manner other 76.14 than as provided in this section shall pay to the parties 76.15 aggrieved an amount not to exceed $1,000. 76.16 (b) The marriage license fee for parties who have completed 76.17 at least 12 hours of premarital education is $20. In order to 76.18 qualify for the reduced fee, the parties must submit a signed 76.19 and dated statement from the person who provided the premarital 76.20 education confirming that it was received. The premarital 76.21 education must be provided by a licensed or ordained minister or 76.22 the minister's designee, a person authorized to solemnize 76.23 marriages under section 517.18, or a person authorized to 76.24 practice marriage and family therapy under section 148B.33. The 76.25 education must include the use of a premarital inventory and the 76.26 teaching of communication and conflict management skills. 76.27 (c) The statement from the person who provided the 76.28 premarital education under paragraph (b) must be in the 76.29 following form: 76.30 "I, (name of educator), confirm that (names of both 76.31 parties) received at least 12 hours of premarital education that 76.32 included the use of a premarital inventory and the teaching of 76.33 communication and conflict management skills. I am a licensed 76.34 or ordained minister, a person authorized to solemnize marriages 76.35 under Minnesota Statutes, section 517.18, or a person licensed 76.36 to practice marriage and family therapy under Minnesota 77.1 Statutes, section 148B.33." 77.2 The names of the parties in the educator's statement must 77.3 be identical to the legal names of the parties as they appear in 77.4 the marriage license application. Notwithstanding section 77.5 138.17, the educator's statement must be retained for seven 77.6 years, after which time it may be destroyed. 77.7 (d) If section 259.13 applies to the request for a marriage 77.8 license, the local registrar shall grant the marriage license 77.9 without the requested name change. Alternatively, the local 77.10 registrar may delay the granting of the marriage license until 77.11 the party with the conviction: 77.12 (1) certifies under oath that 30 days have passed since 77.13 service of the notice for a name change upon the prosecuting 77.14 authority and, if applicable, the attorney general and no 77.15 objection has been filed under section 259.13; or 77.16 (2) provides a certified copy of the court order granting 77.17 it. The parties seeking the marriage license shall have the 77.18 right to choose to have the license granted without the name 77.19 change or to delay its granting pending further action on the 77.20 name change request. 77.21 Sec. 80. Minnesota Statutes 2004, section 517.08, 77.22 subdivision 1c, is amended to read: 77.23 Subd. 1c. [DISPOSITION OF LICENSE FEE.] (a) Of the 77.24 marriage license fee collected pursuant to subdivision 1b, 77.25 paragraph (a), $15 must be retained by the county. The local 77.26 registrar must pay$70$60 to the commissioner of finance to be 77.27 deposited as follows: 77.28 (1) $50 in the general fund; 77.29 (2) $3 in the special revenue fund to be appropriated to 77.30 the commissioner of education for parenting time centers under 77.31 section 119A.37; 77.32 (3) $2 in the special revenue fund to be appropriated to 77.33 the commissioner of health for developing and implementing the 77.34 MN ENABL program under section 145.9255; and 77.35 (4)$10 in the special revenue fund to be appropriated to77.36the commissioner of employment and economic development for the78.1displaced homemaker program under section 116L.96; and78.2(5)$5 in the special revenue fund to be appropriated to 78.3 the commissioner of human services for the Minnesota Healthy 78.4 Marriage and Responsible Fatherhood Initiative under section 78.5 256.742. 78.6 (b) Of the $20 fee under subdivision 1b, paragraph (b), $15 78.7 must be retained by the county. The local registrar must pay $5 78.8 to the commissioner of finance to be distributed as provided in 78.9 paragraph (a), clauses (2) and (3). 78.10 (c) The increase in the marriage license fee under 78.11 paragraph (a) provided for in Laws 2004, chapter 273, and 78.12 disbursement of the increase in that fee to the special fund for 78.13 the Minnesota Healthy Marriage and Responsible Fatherhood 78.14 Initiative under paragraph (a), clause(5)(4), is contingent 78.15 upon the receipt of federal funding under United States Code, 78.16 title 42, section 1315, for purposes of the initiative. 78.17 Sec. 81. Laws 1999, chapter 224, section 7, as amended by 78.18 Laws 2004, chapter 261, article 6, section 3, is amended to read: 78.19 Sec. 7. [SUNSET.] 78.20 Sections 2 and 4 expire on August 1,20052006, and 78.21 Minnesota Statutes 1998, sections 237.63, 237.65, and 237.68, 78.22 expire on December 31, 2004. 78.23 [EFFECTIVE DATE.] This section is effective the day 78.24 following final enactment. 78.25 Sec. 82. [INCREASED JOB TRAINING AND WAGES FOR 78.26 MINORITIES.] 78.27 Subdivision 1. [INITIATIVE.] The commissioner of 78.28 employment and economic development shall develop an initiative 78.29 to promote employment opportunities for minorities, including 78.30 Native Americans, with a particular focus on opportunities for 78.31 American blacks, in the state of Minnesota. At a minimum, the 78.32 initiative should significantly expand the job training 78.33 available to minorities and promote substantial increases in the 78.34 wages paid to minorities, at least to a rate well above living 78.35 wage, and within several years to equality. 78.36 Subd. 2. [INTERIM REPORT.] The commissioner, in 79.1 consultation with the Governor's Workforce Development Council, 79.2 shall prepare an interim report detailing the parameters of the 79.3 initiative to the governor and the chair of the finance 79.4 committee in each house of the legislature that has jurisdiction 79.5 over employment. The interim report must be made within 90 days 79.6 of the effective date of this section. 79.7 Subd. 3. [FINAL REPORT.] The commissioner, in consultation 79.8 with the Governor's Workforce Development Council, shall prepare 79.9 a final report detailing a proposed initiative by January 10, 79.10 2006. 79.11 [EFFECTIVE DATE.] This section is effective the day 79.12 following final enactment. 79.13 Sec. 83. [SMALL BUSINESS DEVELOPMENT STUDY.] 79.14 The commissioner of employment and economic development 79.15 must investigate options for charging fees for services that 79.16 help companies seek federal Phase II Small Business Innovation 79.17 Research grants. The results and recommendations from this 79.18 study must be submitted to the chairs of the house and senate 79.19 economic development finance committees by February 1, 2006. 79.20 Sec. 84. [PREVAILING WAGE ADVISORY COUNCIL.] 79.21 The commissioner of labor and industry and the commissioner 79.22 of employment and economic development shall convene a 79.23 prevailing wage advisory council. The advisory council shall 79.24 consist of 12 members as follows: the presidents of the largest 79.25 statewide Minnesota business and organized labor organizations 79.26 as measured by the number of employees of its business members 79.27 and in its affiliated labor organizations in Minnesota on July 79.28 1, 2005. The governor, the majority leader of the senate, the 79.29 speaker of the house of representatives, the minority leader of 79.30 the senate, and the minority leader of the house of 79.31 representatives shall each select a business and a labor 79.32 representative. At least four of the labor representatives 79.33 shall be chosen from the affiliated membership of the Minnesota 79.34 AFL-CIO. At least two of the business representatives shall be 79.35 representatives of small employers as defined in Minnesota 79.36 Statutes, section 177.24, subdivision 1, paragraph (a), clause 80.1 (2). None of the council members shall represent attorneys, 80.2 health care providers, qualified rehabilitation consultants, or 80.3 insurance companies. 80.4 The advisory council shall study whether: 80.5 (1) the responsibility of collecting information needed to 80.6 ascertain construction prevailing wages should be transferred 80.7 from the Department of Labor and Industry to the Department of 80.8 Employment and Economic Development; 80.9 (2) the construction prevailing wage rate should be 80.10 calculated on a regional basis; and 80.11 (3) the construction prevailing wage rate should be an 80.12 average of the rate plus benefits paid to workers engaged in the 80.13 same class of labor within the area. 80.14 The advisory council shall make a recommendation on these 80.15 issues to the governor and the chairs of the committees with 80.16 jurisdiction over labor issues in the senate and house of 80.17 representatives by January 15, 2006. 80.18 Sec. 85. [SESQUICENTENNIAL COMMISSION.] 80.19 Subdivision 1. [COMMISSION; PURPOSE.] The Minnesota 80.20 Sesquicentennial Commission is established to plan for 80.21 activities relating to Minnesota's 150th anniversary of 80.22 statehood. The commission shall create a plan for capital 80.23 improvements, celebratory activities, and public engagement in 80.24 every county in the state of Minnesota. 80.25 Subd. 2. [MEMBERSHIP.] The commission shall consist of 17 80.26 members who shall serve until the completion of the 80.27 sesquicentennial year of statehood, appointed as follows: 80.28 (1) nine members appointed by the governor, representing 80.29 major corporate, nonprofit, and public sectors of the state, 80.30 selected from all parts of the state; 80.31 (2) two members appointed by the speaker of the house of 80.32 representatives; 80.33 (3) two members appointed by the minority leader of the 80.34 house of representatives; 80.35 (4) two members from the majority party in the senate, 80.36 appointed by the Subcommittee on Committees; and 81.1 (5) two members from the minority party in the senate, 81.2 appointed by the Subcommittee on Committees. 81.3 Subd. 3. [COMPENSATION; OPERATION.] Members shall select a 81.4 chair from the membership of the commission. The chair shall 81.5 convene all meetings and set the agenda for the commission. The 81.6 Minnesota Historical Society shall provide office space and 81.7 staff support for the commission, and shall cooperate with the 81.8 University of Minnesota and Minnesota State Colleges and 81.9 Universities to support the programs of the commission. 81.10 Meetings shall be at the call of the chair. The commission may 81.11 appoint an advisory council to advise and assist the commission 81.12 with its duties. Members shall receive no compensation for 81.13 service on the Sesquicentennial Commission. Members appointed 81.14 by the governor may be reimbursed for expenses under Minnesota 81.15 Statutes, section 15.059, subdivision 3. 81.16 Subd. 4. [DUTIES.] The commission shall have the following 81.17 duties: 81.18 (1) to present to the governor and legislature a plan for 81.19 capital grants to pay for capital improvements on Minnesota's 81.20 historic public and private buildings, to be known as 81.21 sesquicentennial grants; 81.22 (2) to seek funding for activities to celebrate the 150th 81.23 anniversary of statehood, and to form partnerships with private 81.24 parties to further this mission; and 81.25 (3) to present an annual report to the governor and 81.26 legislature outlining progress made towards the celebration of 81.27 the sesquicentennial. 81.28 Subd. 5. [COMMEMORATIVE COIN.] The commission may arrange 81.29 for design, production, distribution, marketing, and sale of a 81.30 commemorative coin. Proceeds from sale of the commemorative 81.31 coin are appropriated to the commission. 81.32 Subd. 6. [EXPIRATION.] The commission shall continue to 81.33 operate until January 30, 2009, at which time it shall expire. 81.34 [EFFECTIVE DATE.] This section is effective the day 81.35 following final enactment. 81.36 Sec. 86. [INSTRUCTION TO REVISOR.] 82.1 The revisor of statutes shall renumber Minnesota Statutes, 82.2 section 239.05, as section 239.051, alphabetize the definitions, 82.3 and correct any cross-references to that section accordingly. 82.4 Sec. 87. [REPEALER.] 82.5 Minnesota Statutes 2004, sections 45.0295; 116J.573; 82.6 116J.58, subdivision 3; 116L.05, subdivision 4; 239.05, 82.7 subdivisions 6a and 6b; and 462C.15, are repealed. 82.8 ARTICLE 3 82.9 HUMAN SERVICES APPROPRIATIONS 82.10 Section 1. [HUMAN SERVICES APPROPRIATIONS.] 82.11 The sums shown in the columns marked "APPROPRIATIONS" are 82.12 appropriated from the general fund, or any other fund named, to 82.13 the agencies and for the purposes specified in the sections of 82.14 this article, to be available for the fiscal years indicated for 82.15 each purpose. The figures "2006" and "2007" where used in this 82.16 article, mean that the appropriation or appropriations listed 82.17 under them are available for the fiscal year ending June 30, 82.18 2006, or June 30, 2007, respectively. 82.19 SUMMARY BY FUND 82.20 BIENNIAL 82.21 2006 2007 TOTAL 82.22 General $ 411,712,000 $ 420,246,000 $ 831,958,000 82.23 Health Care 82.24 Access 249,000 249,000 498,000 82.25 Federal TANF 219,901,000 247,697,000 467,598,000 82.26 TOTAL $ 631,862,000 $ 668,192,000 $1,300,054,000 82.27 APPROPRIATIONS 82.28 Available for the Year 82.29 Ending June 30 82.30 2006 2007 82.31 Sec. 2. COMMISSIONER OF 82.32 HUMAN SERVICES 82.33 Subdivision 1. Total 82.34 Appropriation $ 631,862,000 $ 668,192,000 82.35 Summary by Fund 82.36 General 411,712,000 420,246,000 82.37 Health Care 82.38 Access 249,000 249,000 82.39 Federal TANF 219,901,000 247,697,000 82.40 [FOOD STAMPS EMPLOYMENT AND TRAINING 83.1 FUNDS.] Notwithstanding Minnesota 83.2 Statutes, sections 256J.626 and 83.3 256D.051, subdivisions 1a, 6b, and 6c, 83.4 federal food stamps employment and 83.5 training funds received as 83.6 reimbursement of Minnesota family 83.7 investment program consolidated fund 83.8 grant expenditures must be deposited in 83.9 the general fund. Consistent with the 83.10 receipt of these federal funds, the 83.11 commissioner may adjust the level of 83.12 working family credit expenditures 83.13 claimed as TANF maintenance of effort. 83.14 [TANF FUNDS APPROPRIATED TO OTHER 83.15 ENTITIES.] Any expenditures from the 83.16 TANF block grant shall be expended 83.17 according to the requirements and 83.18 limitations of part A of title IV of 83.19 the Social Security Act, as amended, 83.20 and any other applicable federal 83.21 requirement or limitation. Prior to 83.22 any expenditure of these funds, the 83.23 commissioner shall ensure that funds 83.24 are expended in compliance with the 83.25 requirements and limitations of federal 83.26 law and that any reporting requirements 83.27 of federal law are met. It shall be 83.28 the responsibility of any entity to 83.29 which these funds are appropriated to 83.30 implement a memorandum of understanding 83.31 with the commissioner that provides the 83.32 necessary assurance of compliance prior 83.33 to any expenditure of funds. The 83.34 commissioner shall receipt TANF funds 83.35 appropriated to other state agencies 83.36 and coordinate all related interagency 83.37 accounting transactions necessary to 83.38 implement these appropriations. 83.39 Unexpended TANF funds appropriated to 83.40 any state, local, or nonprofit entity 83.41 cancel at the end of the state fiscal 83.42 year unless appropriating or statutory 83.43 language permits otherwise. 83.44 [TANF MAINTENANCE OF EFFORT.] (a) In 83.45 order to meet the basic maintenance of 83.46 effort (MOE) requirements of the TANF 83.47 block grant specified under Code of 83.48 Federal Regulations, title 45, section 83.49 263.1, the commissioner may only report 83.50 nonfederal money expended for allowable 83.51 activities listed in the following 83.52 clauses as TANF/MOE expenditures: 83.53 (1) MFIP cash, diversionary work 83.54 program, and food assistance benefits 83.55 under Minnesota Statutes, chapter 256J; 83.56 (2) the child care assistance programs 83.57 under Minnesota Statutes, sections 83.58 119B.03 and 119B.05, and county child 83.59 care administrative costs under 83.60 Minnesota Statutes, section 119B.15; 83.61 (3) state and county MFIP 83.62 administrative costs under Minnesota 83.63 Statutes, chapters 256J and 256K; 83.64 (4) state, county, and tribal MFIP 83.65 employment services under Minnesota 84.1 Statutes, chapters 256J and 256K; 84.2 (5) expenditures made on behalf of 84.3 noncitizen MFIP recipients who qualify 84.4 for the medical assistance without 84.5 federal financial participation program 84.6 under Minnesota Statutes, section 84.7 256B.06, subdivision 4, paragraphs (d), 84.8 (e), and (j); and 84.9 (6) qualifying working family credit 84.10 expenditures under Minnesota Statutes, 84.11 section 290.0671. 84.12 (b) The commissioner shall ensure that 84.13 sufficient qualified nonfederal 84.14 expenditures are made each year to meet 84.15 the state's TANF/MOE requirements. For 84.16 the activities listed in paragraph (a), 84.17 clauses (2) to (6), the commissioner 84.18 may only report expenditures that are 84.19 excluded from the definition of 84.20 assistance under Code of Federal 84.21 Regulations, title 45, section 260.31. 84.22 (c) For fiscal years beginning with 84.23 state fiscal year 2005, the 84.24 commissioner shall ensure that the 84.25 maintenance of effort used by the 84.26 commissioner of finance for the 84.27 February and November forecasts 84.28 required under Minnesota Statutes, 84.29 section 16A.103, contains expenditures 84.30 under paragraph (a), clause (1), equal 84.31 to at least 25 percent of the total 84.32 required under Code of Federal 84.33 Regulations, title 45, section 263.1. 84.34 (d) Minnesota Statutes, section 84.35 256.011, subdivision 3, which requires 84.36 that federal grants or aids secured or 84.37 obtained under that subdivision be used 84.38 to reduce any direct appropriations 84.39 provided by law, does not apply if the 84.40 grants or aids are federal TANF funds. 84.41 (e) Notwithstanding the expiration date 84.42 provided in section 6, paragraph (a), 84.43 clauses (1) to (6), and paragraphs (b) 84.44 to (d), expire June 30, 2009. 84.45 [WORKING FAMILY CREDIT EXPENDITURES AS 84.46 TANF/MOE.] The commissioner may claim 84.47 as TANF maintenance of effort up to the 84.48 following amounts of working family 84.49 credit expenditures for the following 84.50 fiscal years: 84.51 (1) fiscal year 2006, $6,942,000; and 84.52 (2) fiscal year 2007 and thereafter, 84.53 $6,707,000. 84.54 [INCREASE WORKING FAMILY CREDIT 84.55 EXPENDITURES TO BE CLAIMED FOR 84.56 TANF/MOE.] In addition to the amounts 84.57 provided in this section, the 84.58 commissioner may count the following 84.59 amounts of working family credit 84.60 expenditure as TANF/MOE: 85.1 (1) fiscal year 2006, $67,385,000; 85.2 (2) fiscal year 2007, $69,839,000; 85.3 (3) fiscal year 2008, $12,657,000; and 85.4 (4) fiscal year 2009, $8,237,000. 85.5 [SPECIAL REVENUE FUND TRANSFER.] 85.6 Notwithstanding any law to the 85.7 contrary, excluding accounts authorized 85.8 under Minnesota Statutes, section 85.9 16A.1286, and Minnesota Statutes, 85.10 chapter 254B, the commissioner shall 85.11 transfer $1,139,000 of uncommitted 85.12 special revenue fund balances to the 85.13 general fund. The actual transfers 85.14 shall be identified within the standard 85.15 information provided to the chairs of 85.16 the legislative committees with 85.17 jurisdiction over health and human 85.18 services issues in December 2005. 85.19 Subd. 2. Children and Economic 85.20 Assistance Grants 85.21 Summary by Fund 85.22 General 369,129,000 377,643,000 85.23 Federal TANF 219,449,000 247,245,000 85.24 The amounts that may be spent from this 85.25 appropriation for each purpose are as 85.26 follows: 85.27 (a) MFIP/DWP Grants 85.28 General 35,640,000 31,902,000 85.29 Federal TANF 104,204,000 106,020,000 85.30 (b) Support Services Grants 85.31 General 8,697,000 8,715,000 85.32 Federal TANF 102,594,000 102,632,000 85.33 (c) MFIP Child Care Assistance Grants 85.34 General 41,170,000 20,030,000 85.35 Federal TANF 11,254,000 37,196,000 85.36 [MFIP CHILD CARE; TANF APPROPRIATION.] 85.37 The federal TANF appropriation is a 85.38 onetime appropriation. 85.39 [TANF TRANSFER TO FEDERAL CHILD CARE 85.40 AND DEVELOPMENT FUND.] $17,946,000 in 85.41 fiscal year 2006, $40,388,000 in fiscal 85.42 year 2007, and $3,192,000 in fiscal 85.43 year 2008 and each fiscal year 85.44 thereafter is appropriated to the 85.45 commissioner for the purposes of 85.46 MFIP/Transition Year child care under 85.47 Minnesota Statutes, section 119B.05. 85.48 The commissioner shall authorize 85.49 transfer of sufficient TANF funds to 85.50 the federal child care and development 85.51 fund to meet this appropriation and 86.1 shall ensure that all transferred funds 86.2 are expended according to the federal 86.3 child care and development fund 86.4 regulations. 86.5 (d) Basic Sliding Fee Child Care 86.6 Assistance Grants 86.7 General 6,592,000 24,911,000 86.8 [CHILD CARE AND DEVELOPMENT FUND 86.9 UNEXPENDED BALANCE.] In addition to the 86.10 amount provided in this section, the 86.11 commissioner shall expend $16,254,000 86.12 in fiscal year 2006 and $2,085,000 in 86.13 fiscal year 2007 from the federal child 86.14 care and development fund unexpended 86.15 balance for basic sliding fee child 86.16 care under Minnesota Statutes, section 86.17 119B.03. The commissioner shall ensure 86.18 that all child care and development 86.19 funds are expended according to the 86.20 federal child care and development fund 86.21 regulations. 86.22 [BASE ADJUSTMENT FOR FREEZE MAXIMUM 86.23 RATES FOR CHILD CARE ASSISTANCE.] The 86.24 general fund base is increased by 86.25 $4,301,000 in fiscal year 2008 and 86.26 $6,641,000 in fiscal year 2009 for 86.27 basic sliding fee child care assistance. 86.28 (e) Child Care Development Grants 86.29 General 1,540,000 1,540,000 86.30 (f) Child Support Enforcement Grants 86.31 General 3,255,000 3,255,000 86.32 (g) Children's Services Grants 86.33 General 40,488,000 49,580,000 86.34 [BASE ADJUSTMENT FOR ADOPTION 86.35 ASSISTANCE GRANTS.] The general fund 86.36 base is increased by $2,153,000 in 86.37 fiscal year 2008 and $4,310,000 in 86.38 fiscal year 2009 for adoption 86.39 assistance grants. 86.40 [BASE ADJUSTMENT FOR RELATIVE CUSTODY 86.41 ASSISTANCE GRANTS.] The general fund 86.42 base is increased by $838,000 in fiscal 86.43 year 2008 and $1,689,000 in fiscal year 86.44 2009 for relative custody assistance 86.45 grants. 86.46 [ADOPTION ASSISTANCE AND RELATIVE 86.47 CUSTODY ASSISTANCE.] The commissioner 86.48 may transfer unencumbered appropriation 86.49 balances for adoption assistance and 86.50 relative custody assistance between 86.51 fiscal years and between programs. 86.52 [PRIVATIZED ADOPTION GRANTS.] Federal 86.53 reimbursement for privatized adoption 86.54 grant and foster care recruitment grant 86.55 expenditures is appropriated to the 86.56 commissioner for adoption grants and 86.57 foster care and adoption administrative 87.1 purposes. 87.2 (h) Children and Community 87.3 Services Grants 87.4 General 68,488,000 68,488,000 87.5 [DELAY PROJECTS OF REGIONAL 87.6 SIGNIFICANCE.] Notwithstanding 87.7 Minnesota Statutes, section 256M.40, 87.8 subdivision 2, the projects of the 87.9 regional significance grant program are 87.10 delayed until July 1, 2007. The 87.11 general fund base for the program shall 87.12 be $25,000,000 in fiscal year 2008 and 87.13 $25,000,000 in fiscal year 2009. 87.14 (i) General Assistance Grants 87.15 General 30,823,000 31,157,000 87.16 [GENERAL ASSISTANCE STANDARD.] The 87.17 commissioner shall set the monthly 87.18 standard of assistance for general 87.19 assistance units consisting of an adult 87.20 recipient who is childless and 87.21 unmarried or living apart from parents 87.22 or a legal guardian at $203. The 87.23 commissioner may reduce this amount 87.24 according to Laws 1997, chapter 85, 87.25 article 3, section 54. 87.26 [EMERGENCY GENERAL ASSISTANCE.] The 87.27 amount appropriated for emergency 87.28 general assistance funds is limited to 87.29 no more than $7,889,812 in fiscal year 87.30 2006 and $7,889,812 in fiscal year 87.31 2007. Funds to counties shall be 87.32 allocated by the commissioner using the 87.33 allocation method specified in 87.34 Minnesota Statutes, section 256D.06. 87.35 (j) Minnesota Supplemental Aid Grants 87.36 General 30,315,000 30,801,000 87.37 [EMERGENCY MINNESOTA SUPPLEMENTAL AID 87.38 FUNDS.] The amount appropriated for 87.39 emergency Minnesota supplemental aid 87.40 funds is limited to no more than 87.41 $1,100,000 in fiscal year 2006 and 87.42 $1,100,000 in fiscal year 2007. Funds 87.43 to counties shall be allocated by the 87.44 commissioner using the allocation 87.45 method specified in Minnesota Statutes, 87.46 section 256D.46. 87.47 (k) Group Residential Housing Grants 87.48 General 85,487,000 91,009,000 87.49 (l) Other Children and Economic 87.50 Assistance Grants 87.51 General 16,634,000 16,255,000 87.52 Federal TANF 1,397,000 1,397,000 87.53 [TRANSITIONAL HOUSING.] $3,238,000 in 87.54 fiscal year 2006 and $3,238,000 in 87.55 fiscal year 2007 are appropriated for 88.1 transitional housing under Minnesota 88.2 Statutes, section 119A.43. Of this 88.3 amount, $1,397,000 in fiscal year 2006 88.4 and $1,397,000 in fiscal year 2007 are 88.5 onetime appropriations from the federal 88.6 TANF fund. The general fund base for 88.7 transitional housing shall be 88.8 $2,988,000 each year for the fiscal 88.9 2008-2009 biennium. 88.10 Subd. 3. Children and Economic Assistance 88.11 Management 88.12 Summary by Fund 88.13 General 42,583,000 42,603,000 88.14 Health Care Access 249,000 249,000 88.15 Federal TANF 452,000 452,000 88.16 The amounts that may be spent from the 88.17 appropriation for each purpose are as 88.18 follows: 88.19 (a) Children and Economic 88.20 Assistance Administration 88.21 General 7,838,000 7,832,000 88.22 Federal TANF 452,000 452,000 88.23 (b) Children and Economic 88.24 Assistance Operations 88.25 General 34,745,000 34,771,000 88.26 Health Care Access 249,000 249,000 88.27 [SPENDING AUTHORITY FOR FOOD STAMPS 88.28 BONUS AWARDS.] In the event that 88.29 Minnesota qualifies for the United 88.30 States Department of Agriculture Food 88.31 and Nutrition Services Food Stamp 88.32 Program performance bonus awards 88.33 beginning in federal fiscal year 2004, 88.34 the funding is appropriated to the 88.35 commissioner. The commissioner shall 88.36 retain 25 percent of the funding, with 88.37 the other 75 percent divided among the 88.38 counties according to a formula that 88.39 takes into account each county's impact 88.40 on state performance in the applicable 88.41 bonus categories. 88.42 [CHILD SUPPORT PAYMENT CENTER.] 88.43 Payments to the commissioner from other 88.44 governmental units, private 88.45 enterprises, and individuals for 88.46 services performed by the child support 88.47 payment center must be deposited in the 88.48 state systems account authorized under 88.49 Minnesota Statutes, section 256.014. 88.50 These payments are appropriated to the 88.51 commissioner for the operation of the 88.52 child support payment center or system, 88.53 according to Minnesota Statutes, 88.54 section 256.014. 88.55 [CHILD SUPPORT COST RECOVERY FEES.] The 88.56 commissioner shall transfer $34,000 of 89.1 child support cost recovery fees 89.2 collected in fiscal year 2006 and 89.3 fiscal year 2007 to the PRISM special 89.4 revenue account to offset PRISM system 89.5 costs of maintaining the fee. 89.6 [STUDY OF ECONOMIC IMPACT OF CHILD 89.7 SUPPORT GUIDELINES.] Of this amount, 89.8 $20,000 is appropriated to the 89.9 commissioner of human services in 89.10 fiscal year 2006 to pay the state's 89.11 share of the cost of study on the 89.12 economic impact of child support 89.13 guidelines in article 5, section 26. 89.14 [FINANCIAL INSTITUTION DATA MATCH AND 89.15 PAYMENT OF FEES.] The commissioner is 89.16 authorized to allocate up to $310,000 89.17 each year in fiscal year 2006 and 89.18 fiscal year 2007 from the PRISM special 89.19 revenue account to make payments to 89.20 financial institutions in exchange for 89.21 performing data matches between account 89.22 information held by financial 89.23 institutions and the public authority's 89.24 database of child support obligors as 89.25 authorized by Minnesota Statutes, 89.26 section 13B.06, subdivision 7. 89.27 Sec. 3. [TRANSFERS.] 89.28 Subdivision 1. [GRANTS.] The commissioner of human 89.29 services, with the approval of the commissioner of finance, and 89.30 after notification of the chairs of the relevant senate budget 89.31 division and house finance committee, may transfer unencumbered 89.32 appropriation balances for the biennium ending June 30, 2007, 89.33 within fiscal years among the MFIP, general assistance, medical 89.34 assistance, MFIP child care assistance under Minnesota Statutes, 89.35 section 119B.05, Minnesota supplemental aid, group residential 89.36 housing programs, and the entitlement portion of the chemical 89.37 dependency consolidated treatment fund, and between fiscal years 89.38 of the biennium. 89.39 Subd. 2. [ADMINISTRATION.] Positions, salary money, and 89.40 nonsalary administrative money may be transferred within the 89.41 Departments of Human Services and Health and within the programs 89.42 operated by the Veterans Nursing Homes Board as the 89.43 commissioners and the board consider necessary, with the advance 89.44 approval of the commissioner of finance. The commissioner or 89.45 the board shall inform the chairs of the relevant house and 89.46 senate health committees quarterly about transfers made under 89.47 this provision. 90.1 Subd. 3. [PROHIBITED TRANSFERS.] Grant money shall not be 90.2 transferred to operations within the Departments of Human 90.3 Services and Health and within the programs operated by the 90.4 Veterans Nursing Homes Board without the approval of the 90.5 legislature. 90.6 Sec. 4. [SPECIAL REVENUE TRANSFER FOR CERTAIN PROGRAMS.] 90.7 (a) The balance of indirect cost reimbursement attributable 90.8 to federal grants transferred from the Department of Education 90.9 to the Department of Human Services and available at the close 90.10 of fiscal year 2005 shall be transferred to the general fund. 90.11 (b) The balance of the child care child support recoveries 90.12 in the special revenue account established under Minnesota 90.13 Statutes, section 119B.074, and available at the close of fiscal 90.14 year 2005 shall be transferred to the general fund. 90.15 Sec. 5. [INDIRECT COSTS NOT TO FUND PROGRAMS.] 90.16 The commissioners of health and human services shall not 90.17 use indirect cost allocations to pay for the operational costs 90.18 of any program for which they are responsible. 90.19 Sec. 6. [SUNSET OF UNCODIFIED LANGUAGE.] 90.20 All uncodified language contained in this article expires 90.21 on June 30, 2007, unless a different expiration date is explicit. 90.22 Sec. 7. [EFFECTIVE DATE.] 90.23 The provisions in this article are effective July 1, 2005, 90.24 unless a different effective date is specified. 90.25 ARTICLE 4 90.26 DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT 90.27 Section 1. [ADJUSTMENT.] 90.28 The dollar amounts shown are added to or, if shown in 90.29 parentheses, are subtracted from the appropriations in Laws 90.30 2003, First Special Session chapter 14, as amended by Laws 2004, 90.31 chapter 272, or other law, and are appropriated from the general 90.32 fund, or any other fund named, to the Department of Human 90.33 Services for the purposes specified in this article, to be 90.34 available for the fiscal year indicated for each purpose. The 90.35 figure "2005" used in this article means that the appropriation 90.36 or appropriations listed are available for the fiscal year 91.1 ending June 30, 2005. 91.2 SUMMARY BY FUND 91.3 2005 91.4 General Fund 8,280,000 91.5 TANF (16,831,000) 91.6 TOTAL (8,551,000) 91.7 Sec. 2. COMMISSIONER OF HUMAN SERVICES 91.8 Subdivision 1. Total 91.9 Appropriation (8,551,000) 91.10 Summary by Fund 91.11 General 8,280,000 91.12 TANF (16,831,000) 91.13 Subd. 2. Continuing Care Grants 91.14 General (6,017,000) 91.15 The amount that may be spent from this 91.16 appropriation for each purpose is as 91.17 follows: 91.18 Group Residential Housing 91.19 General 6,017,000 91.20 Subd. 3. Economic Support Grants 91.21 General 22,940,000 91.22 TANF (16,831,000) 91.23 The amount that may be spent from this 91.24 appropriation for each purpose is as 91.25 follows: 91.26 (a) Minnesota Family Investment Program 91.27 General 21,000,000 91.28 TANF (16,831,000) 91.29 (b) General Assistance 2,840,000 91.30 (c) Minnesota Supplemental Aid (900,000) 91.31 Subd. 4. Child Care 91.32 Total Appropriation (20,677,000) 91.33 General Fund (20,677,000) 91.34 ARTICLE 5 91.35 CHILDREN AND FAMILIES 91.36 Section 1. Minnesota Statutes 2004, section 119B.02, is 91.37 amended by adding a subdivision to read: 91.38 Subd. 7. [ANNUAL REPORT.] The commissioner shall report 91.39 each January, using the most current data sources available to 92.1 the agency, on the monthly average cost of child care assistance 92.2 per family, the basic sliding fee waiting list, provider's 92.3 willingness to care for children from families accessing child 92.4 care assistance as documented in the child care resource and 92.5 referral program report, the child care assistance program 92.6 participation by income level as compared to income eligibility 92.7 levels, trends in families applying for MFIP due to child care 92.8 reasons, the type of care selected by child care assistance 92.9 families as compared to historical trends and to that selected 92.10 by the general public, and the percentage of child care center 92.11 and family provider rates that are equal to or less than the 92.12 child care assistance maximum rate. The commissioner must also 92.13 report on the progress toward measurement of the school 92.14 readiness of children in families receiving child care 92.15 assistance and of the length of continuous employment of parents 92.16 by child care assistance sub-programs. 92.17 Sec. 2. Minnesota Statutes 2004, section 119B.13, 92.18 subdivision 1, is amended to read: 92.19 Subdivision 1. [SUBSIDY RESTRICTIONS.] (a) The provider 92.20 rates determined under this section for fiscal year 2003 and 92.21 implemented July 1, 2002, are to be continued in effect through 92.22 June 30, 2007. The commissioner of human services shall modify 92.23 the rate tables for child care centers published in Department 92.24 of Human Services Bulletin No. 03-68-07 so that in counties with 92.25 regional or statewide cells, the maximum rates must be the 92.26 higher of the 100th percentile of the 2002 market rate survey 92.27 data for the county or the rate currently identified in the 92.28 bulletin. Beginning in fiscal year 2008, the maximum rate paid 92.29 for child care assistance in any county or multicounty region 92.30 under the child care fundmay not exceedshall be the lesser of 92.31 the 75th percentile rate for like-care arrangements in the 92.32 county or multicounty region as surveyed by the commissioner or 92.33 the previous year's rate for like-care arrangements in the 92.34 county increased by the percent change in the average quarterly 92.35 national CPI-U index for the current state fiscal year over the 92.36 average quarterly index for the previous state fiscal year. 93.1 When the commissioner determines that, using the commissioner's 93.2 established protocol, the number of providers responding to the 93.3 survey is too small to determine the 75th percentile rate for 93.4 like-care arrangements in a county or multicounty region, the 93.5 commissioner may establish the 75th percentile maximum rate 93.6 based on like-care arrangements in a county, region, or category 93.7 that the commissioner deems to be similar. 93.8 (b) A rate which includes a special needs rate paid under 93.9 subdivision 3 may be in excess of the maximum rate allowed under 93.10 this subdivision. 93.11 (c) The department shall monitor the effect of this 93.12 paragraph on provider rates. The county shall pay the 93.13 provider's full charges for every child in care up to the 93.14 maximum established. The commissioner shall determine the 93.15 maximum rate for each type of care on an hourly, full-day, and 93.16 weekly basis, including special needs and handicapped care.Not93.17less than once every two years, the commissioner shall evaluate93.18market practices for payment of absences and shall establish93.19policies for payment of absent days that reflect current market93.20practice.93.21 (d) When the provider charge is greater than the maximum 93.22 provider rate allowed, the parent is responsible for payment of 93.23 the difference in the rates in addition to any family co-payment 93.24 fee. 93.25 (e) The commissioner of human services must report each 93.26 January on the access that families receiving child care 93.27 assistance have to child care programs by identifying the 93.28 percentage of child care center and family child care provider 93.29 rates that are equal to or less than the maximum rates paid by 93.30 the child care assistance programs. The commissioner must 93.31 report the average percentage change in surveyed rates by 93.32 provider type. The commissioner shall also report the 93.33 percentage change in the average quarterly national CPI-U index 93.34 for the four quarters up to and including the quarter in which 93.35 the most recent rate survey began over the four previous 93.36 quarters. Reporting must be based on the rate data collected in 94.1 the most recent rate survey. 94.2 Sec. 3. Minnesota Statutes 2004, section 119B.13, is 94.3 amended by adding a subdivision to read: 94.4 Subd. 7. [ABSENT DAYS.] Child care providers may not be 94.5 reimbursed for more than 25 absent days per child, excluding 94.6 holidays, in a fiscal year, or for more than ten consecutive 94.7 absent days, unless the child has a documented medical condition 94.8 that causes more frequent absences. Documentation of medical 94.9 conditions must be on the forms and submitted according to the 94.10 timelines established by the commissioner. 94.11 [EFFECTIVE DATE.] This section is effective July 1, 2005. 94.12 Sec. 4. Minnesota Statutes 2004, section 245A.10, 94.13 subdivision 4, is amended to read: 94.14 Subd. 4. [ANNUAL LICENSE OR CERTIFICATION FEE FOR PROGRAMS 94.15 WITH LICENSED CAPACITY.] (a) Child care centers and programs 94.16 with a licensed capacity shall pay an annual nonrefundable 94.17 license or certification fee based on the following schedule: 94.18 Licensed Capacity Child Care Other 94.19 Center Program 94.20 License Fee License Fee 94.21 1 to 24 persons$300$225 $400 94.22 25 to 49 persons$450$340 $600 94.23 50 to 74 persons$600$450 $800 94.24 75 to 99 persons$750$565 $1,000 94.25 100 to 124 persons$900$675 $1,200 94.26 125 to 149 persons$1,200$900 $1,400 94.27 150 to 174 persons$1,400$1,050 $1,600 94.28 175 to 199 persons$1,600$1,200 $1,800 94.29 200 to 224 persons$1,800$1,350 $2,000 94.30 225 or more persons$2,000$1,500 $2,500 94.31 (b) A day training and habilitation program serving persons 94.32 with developmental disabilities or related conditions shall be 94.33 assessed a license fee based on the schedule in paragraph (a) 94.34 unless the license holder serves more than 50 percent of the 94.35 same persons at two or more locations in the community. When a 94.36 day training and habilitation program serves more than 50 95.1 percent of the same persons in two or more locations in a 95.2 community, the day training and habilitation program shall pay a 95.3 license fee based on the licensed capacity of the largest 95.4 facility and the other facility or facilities shall be charged a 95.5 license fee based on a licensed capacity of a residential 95.6 program serving one to 24 persons. 95.7 Sec. 5. Minnesota Statutes 2004, section 254A.035, 95.8 subdivision 2, is amended to read: 95.9 Subd. 2. [MEMBERSHIP TERMS, COMPENSATION, REMOVAL AND 95.10 EXPIRATION.] The membership of this council shall be composed of 95.11 17 persons who are American Indians and who are appointed by the 95.12 commissioner. The commissioner shall appoint one representative 95.13 from each of the following groups: Red Lake Band of Chippewa 95.14 Indians; Fond du Lac Band, Minnesota Chippewa Tribe; Grand 95.15 Portage Band, Minnesota Chippewa Tribe; Leech Lake Band, 95.16 Minnesota Chippewa Tribe; Mille Lacs Band, Minnesota Chippewa 95.17 Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth 95.18 Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation; 95.19 Prairie Island Sioux Indian Reservation; Shakopee Mdewakanton 95.20 Sioux Indian Reservation; Upper Sioux Indian Reservation; 95.21 International Falls Northern Range; Duluth Urban Indian 95.22 Community; and two representatives from the Minneapolis Urban 95.23 Indian Community and two from the St. Paul Urban Indian 95.24 Community. The terms, compensation, and removal of American 95.25 Indian Advisory Council members shall be as provided in section 95.26 15.059. The council expires June 30,20012008. 95.27 [EFFECTIVE DATE.] This section is effective retroactively 95.28 from June 30, 2001. 95.29 Sec. 6. Minnesota Statutes 2004, section 254A.04, is 95.30 amended to read: 95.31 254A.04 [CITIZENS ADVISORY COUNCIL.] 95.32 There is hereby created an Alcohol and Other Drug Abuse 95.33 Advisory Council to advise the Department of Human Services 95.34 concerning the problems of alcohol and other drug dependency and 95.35 abuse, composed of ten members. Five members shall be 95.36 individuals whose interests or training are in the field of 96.1 alcohol dependency and abuse; and five members whose interests 96.2 or training are in the field of dependency and abuse of drugs 96.3 other than alcohol. The terms, compensation and removal of 96.4 members shall be as provided in section 15.059. The council 96.5 expires June 30,20012008. The commissioner of human services 96.6 shall appoint members whose terms end in even-numbered years. 96.7 The commissioner of health shall appoint members whose terms end 96.8 in odd-numbered years. 96.9 [EFFECTIVE DATE.] This section is effective retroactively 96.10 from June 30, 2001. 96.11 Sec. 7. Minnesota Statutes 2004, section 256.01, is 96.12 amended by adding a subdivision to read: 96.13 Subd. 14b. [AMERICAN INDIAN CHILD WELFARE PROJECTS.] (a) 96.14 The commissioner of human services may authorize projects to 96.15 test tribal delivery of child welfare services to American 96.16 Indian children and their parents and custodians living on the 96.17 reservation. The commissioner has authority to solicit and 96.18 determine which tribes may participate in a project. Grants may 96.19 be issued to Minnesota Indian tribes to support the projects. 96.20 The commissioner may waive existing state rules as needed to 96.21 accomplish the projects. Notwithstanding section 626.556, the 96.22 commissioner may authorize projects to use alternative methods 96.23 of investigating and assessing reports of child maltreatment, 96.24 provided that the projects comply with the provisions of section 96.25 626.556 dealing with the rights of individuals who are subjects 96.26 of reports or investigations, including notice and appeal rights 96.27 and data practices requirements. The commissioner may seek any 96.28 federal approvals necessary to carry out the projects as well as 96.29 seek and use any funds available to the commissioner, including 96.30 use of federal funds, foundation funds, existing grant funds, 96.31 and other funds. The commissioner is authorized to advance 96.32 state funds as necessary to operate the projects. Federal 96.33 reimbursement applicable to the projects is appropriated to the 96.34 commissioner for the purposes of the projects. The projects 96.35 must be required to address responsibility for safety, 96.36 permanency, and well-being of children. 97.1 (b) For the purposes of this section, "American Indian 97.2 child" means a person under 18 years of age who is a tribal 97.3 member or eligible for membership in one of the tribes chosen 97.4 for a project under this subdivision and who is residing on the 97.5 reservation of that tribe. 97.6 (c) In order to qualify for an American Indian child 97.7 welfare project, a tribe must: 97.8 (1) be one of the existing tribes with reservation land in 97.9 Minnesota; 97.10 (2) have a tribal court with jurisdiction over child 97.11 custody proceedings; 97.12 (3) have a substantial number of children for whom 97.13 determinations of maltreatment have occurred; 97.14 (4) have capacity to respond to reports of abuse and 97.15 neglect under section 626.556; 97.16 (5) provide a wide range of services to families in need of 97.17 child welfare services; and 97.18 (6) have a tribal-state title IV-E agreement in effect. 97.19 (d) Grants awarded under this section may be used for the 97.20 nonfederal costs of providing child welfare services to American 97.21 Indian children on the tribe's reservation, including costs 97.22 associated with: 97.23 (1) assessment and prevention of child abuse and neglect; 97.24 (2) family preservation; 97.25 (3) facilitative, supportive, and reunification services; 97.26 (4) out-of-home placement for children removed from the 97.27 home for child protective purposes; and 97.28 (5) other activities and services approved by the 97.29 commissioner that further the goals of providing safety, 97.30 permanency, and well-being of American Indian children. 97.31 (e) When a tribe has initiated a project and has been 97.32 approved by the commissioner to assume child welfare 97.33 responsibilities for American Indian children of that tribe 97.34 under this section, the affected county social service agency is 97.35 relieved of responsibility for responding to reports of abuse 97.36 and neglect under section 626.556 for those children during the 98.1 time within which the tribal project is in effect and funded. 98.2 The commissioner shall work with tribes and affected counties to 98.3 develop procedures for data collection, evaluation, and 98.4 clarification of ongoing role and financial responsibilities of 98.5 the county and tribe for child welfare services prior to 98.6 initiation of the project. Children who have not been 98.7 identified by the tribe as participating in the project shall 98.8 remain the responsibility of the county. Nothing in this 98.9 section shall alter responsibilities of the county for law 98.10 enforcement or court services. 98.11 (f) The commissioner shall collect information on outcomes 98.12 relating to child safety, permanency, and well-being of American 98.13 Indian children who are served in the projects. Participating 98.14 tribes must provide information to the state in a format and 98.15 completeness deemed acceptable by the state to meet state and 98.16 federal reporting requirements. 98.17 Sec. 8. Minnesota Statutes 2004, section 256.01, is 98.18 amended by adding a subdivision to read: 98.19 Subd. 23. [ANNUAL REPORT.] Beginning July 1, 2005, the 98.20 commissioner shall prepare an annual report of the number of 98.21 eligible applicants who applied in the prior calendar year for 98.22 general assistance, under chapter 256D; MFIP, under chapter 98.23 256J; and food support, under chapter 256D, who had not lived in 98.24 Minnesota for the 12 months prior to the application month. The 98.25 report shall indicate the number of applicants by state of prior 98.26 residence or by the general category of foreign country. 98.27 Sec. 9. Minnesota Statutes 2004, section 256.741, 98.28 subdivision 4, is amended to read: 98.29 Subd. 4. [EFFECT OF ASSIGNMENT.] Assignments in this 98.30 section take effect upon a determination that the applicant is 98.31 eligible for public assistance. The amount of support assigned 98.32 under this subdivision may not exceed the total amount of public 98.33 assistance issued or the total support obligation, whichever is 98.34 less. Child care support collections made according to an 98.35 assignment under subdivision 2, paragraph (c), must be 98.36 deposited, subject to any limitations of federal law,by the99.1commissioner of human services in the child support collection99.2account in the special revenue fund and appropriated to the99.3commissioner of education for child care assistance under99.4section 119B.03. These collections are in addition to state and99.5federal funds appropriated to the child carein the general fund. 99.6 Sec. 10. Minnesota Statutes 2004, section 256B.0924, 99.7 subdivision 3, is amended to read: 99.8 Subd. 3. [ELIGIBILITY.] Persons are eligible to receive 99.9 targeted case management services under this section if the 99.10 requirements in paragraphs (a) and (b) are met. 99.11 (a) The person must be assessed and determined by the local 99.12 county agency to: 99.13 (1) be age 18 or older; 99.14 (2) be receiving medical assistance; 99.15 (3) have significant functional limitations; and 99.16 (4) be in need of service coordination to attain or 99.17 maintain living in an integrated community setting. 99.18 (b) The person must be a vulnerable adult in need of adult 99.19 protection as defined in section 626.5572, or is an adult with 99.20 mental retardation as defined in section 252A.02, subdivision 2, 99.21 or a related condition as defined in section 252.27, subdivision 99.22 1a, and is not receiving home and community-based waiver 99.23 services, or is an adult who lacks a permanent residence and who 99.24 has been without a permanent residence for at least one year or 99.25 on at least four occasions in the last three years. 99.26 Sec. 11. Minnesota Statutes 2004, section 256B.093, 99.27 subdivision 1, is amended to read: 99.28 Subdivision 1. [STATE TRAUMATIC BRAIN INJURY PROGRAM.] The 99.29 commissioner of human services shall: 99.30 (1) maintain a statewide traumatic brain injury program; 99.31 (2) supervise and coordinate services and policies for 99.32 persons with traumatic brain injuries; 99.33 (3) contract with qualified agencies or employ staff to 99.34 provide statewide administrative case management and 99.35 consultation; 99.36 (4) maintain an advisory committee to provide 100.1 recommendations in reports to the commissioner regarding program 100.2 and service needs of persons with traumatic brain injuries; 100.3 (5) investigate the need for the development of rules or 100.4 statutes for the traumatic brain injury home and community-based 100.5 services waiver; 100.6 (6) investigate present and potential models of service 100.7 coordination which can be delivered at the local level; and 100.8 (7) the advisory committee required by clause (4) must 100.9 consist of no fewer than ten members and no more than 30 100.10 members. The commissioner shall appoint all advisory committee 100.11 members to one- or two-year terms and appoint one member as 100.12 chair. Notwithstanding section 15.059, subdivision 5, the 100.13 advisory committee does not terminate until June 30,20052008. 100.14 Sec. 12. Minnesota Statutes 2004, section 256D.06, is 100.15 amended by adding a subdivision to read: 100.16 Subd. 1d. [STANDARD OF ASSISTANCE.] For a general 100.17 assistance applicant who has resided in the state for less than 100.18 90 days and who lives independently in the community, the 100.19 standard of assistance shall be 60 percent of the full 100.20 standard. The full standard of assistance shall be available 100.21 beginning the first day of either the month that the 90 days' 100.22 residency is completed if the 90th day occurs on or before the 100.23 15th of the month or the following month if the 90th day occurs 100.24 on the 16th of the month or after. The 30-day residence period 100.25 in section 256D.02, subdivision 12a, shall count toward the 100.26 90-day payment standard. 100.27 Sec. 13. Minnesota Statutes 2004, section 256D.06, 100.28 subdivision 5, is amended to read: 100.29 Subd. 5. [ELIGIBILITY; REQUIREMENTS.] (a) Any applicant, 100.30 otherwise eligible for general assistance and possibly eligible 100.31 for maintenance benefits from any other source shall(a)(1) 100.32 make application for those benefits within 30 days of the 100.33 general assistance application; and(b)(2) execute an interim 100.34 assistanceauthorizationagreement on a form as directed by the 100.35 commissioner. 100.36 (b) The commissioner shall review a denial of an 101.1 application for other maintenance benefits and may require a 101.2 recipient of general assistance to file an appeal of the denial 101.3 if appropriate. If found eligible for benefits from other 101.4 sources, and a payment received from another source relates to 101.5 the period during which general assistance was also being 101.6 received, the recipient shall be required to reimburse the 101.7 county agency for the interim assistance paid. Reimbursement 101.8 shall not exceed the amount of general assistance paid during 101.9 the time period to which the other maintenance benefits apply 101.10 and shall not exceed the state standard applicable to that time 101.11 period. 101.12 (c) The commissionershall adopt rules authorizing county101.13agencies or other client representatives to retain from the101.14amount recovered under an interim assistance agreement 25101.15percent plus actual reasonable fees, costs, and disbursements of101.16appeals and litigation, of providing special assistance to the101.17recipient in processing the recipient's claim for maintenance101.18benefits from another source. Themay contract with the county 101.19 agencies, qualified agencies, organizations, or persons to 101.20 provide advocacy and support services to process claims for 101.21 federal disability benefits for applicants or recipients of 101.22 services or benefits supervised by the commissioner using money 101.23 retained under this sectionshall be from the state share of the101.24recovery. The commissioner or the county agency may contract101.25with qualified persons to provide the special assistance. 101.26 (d) Therules adopted by thecommissionershall include the101.27 may provide methods by which county agencies shall identify, 101.28 refer, and assist recipients who may be eligible for benefits 101.29 under federal programs for the disabled.This subdivision does101.30not require repayment of per diem payments made to shelters for101.31battered women pursuant to section 256D.05, subdivision 3.101.32 (e) The total amount of interim assistance recoveries 101.33 retained under this section for advocacy, support, and claim 101.34 processing services shall not exceed 35 percent of the interim 101.35 assistance recoveries in the prior fiscal year. 101.36 Sec. 14. Minnesota Statutes 2004, section 256D.06, 102.1 subdivision 7, is amended to read: 102.2 Subd. 7. [SSI CONVERSIONS AND BACK CLAIMS.] (a) [SSI 102.3 CONVERSIONS.] The commissioner of human services shall contract 102.4 with agencies or organizations capable of ensuring that clients 102.5 who are presently receiving assistance under sections 256D.01 to 102.6 256D.21, and who may be eligible for benefits under the federal 102.7 Supplemental Security Income program, apply and, when eligible, 102.8 are converted to the federal income assistance program and made 102.9 eligible for health care benefits under the medical assistance 102.10 program. The commissioner shall ensure that money owing to the 102.11 state under interim assistance agreements is collected. 102.12 (b) [BACK CLAIMS FOR FEDERAL HEALTH CARE BENEFITS.] The 102.13 commissioner shall also directly or through contract implement 102.14 procedures for collecting federal Medicare and medical 102.15 assistance funds for which clients converted to SSI are 102.16 retroactively eligible. 102.17 (c) [ADDITIONAL REQUIREMENTS.] The commissioner shall 102.18begin contractingcontract with agencies to ensure 102.19 implementation of this sectionwithin 14 days after April 29,102.201992. County contracts with providers for residential services 102.21 shall include the requirement that providers screen residents 102.22 who may be eligible for federal benefits and provide that 102.23 information to the local agency. The commissioner shall modify 102.24 the MAXIS computer system to provide information on clients who 102.25 have been on general assistance for two years or longer. The 102.26 list of clients shall be provided to local services for 102.27 screening under this section. 102.28(d) [REPORT.] The commissioner shall report to the102.29legislature by January 15, 1993, on the implementation of this102.30section. The report shall contain information on the following:102.31(1) the number of clients converted from general assistance102.32to SSI, by county;102.33(2) information on the organizations involved;102.34(3) the amount of money collected through interim102.35assistance agreements;102.36(4) the amount of money collected in federal Medicare or103.1Medicaid funds;103.2(5) problems encountered in processing conversions and back103.3claims; and103.4(6) recommended changes to enhance recoveries and maximize103.5the receipt of federal money in the most efficient way possible.103.6 Sec. 15. Minnesota Statutes 2004, section 256I.05, 103.7 subdivision 1e, is amended to read: 103.8 Subd. 1e. [SUPPLEMENTARY RATE FOR CERTAIN FACILITIES.] 103.9 Notwithstanding the provisions of subdivisions 1a and 1c, 103.10 beginning July 1,20012005, a county agency shall negotiate a 103.11 supplementary rate in addition to the rate specified in 103.12 subdivision 1,equal to 46 percent of the amount specified in103.13subdivision 1anot to exceed $700 per month, including any 103.14 legislatively authorized inflationary adjustments, for a group 103.15 residential housing provider that: 103.16 (1) is located in Hennepin County and has had a group 103.17 residential housing contract with the county since June 1996; 103.18 (2) operates in three separate locations a71-bed75-bed 103.19 facility, a 50-bed facility, andtwo 40-bed facilitiesa 26-bed 103.20 facility; and 103.21 (3) serves a chemically dependent clientele, providing 24 103.22 hours per day supervision and limiting a resident's maximum 103.23 length of stay to 13 months out of a consecutive 24-month period. 103.24 Sec. 16. Minnesota Statutes 2004, section 256J.12, 103.25 subdivision 1, is amended to read: 103.26 Subdivision 1. [SIMPLE RESIDENCY.] To be eligible for MFIP 103.27 or DWP, an assistance unit must have established residency in 103.28 this state which means the assistance unit is present in the 103.29 state and intends to remain here. A person who lives in this 103.30 state and who entered this state with a job commitment or to 103.31 seek employment in this state, whether or not that person is 103.32 currently employed, meets the criteria in this subdivision. 103.33 Sec. 17. Minnesota Statutes 2004, section 256J.12, is 103.34 amended by adding a subdivision to read: 103.35 Subd. 5. [RESIDENCY REQUIREMENT FOR DWP APPLICANTS.] 103.36 Assistance to an eligible DWP family unit in which all members 104.1 have resided in this state for fewer than 90 consecutive days 104.2 shall be paid at the standard specified in section 256J.95, 104.3 subdivision 21. The 30-day residence period shall count toward 104.4 the 90-day DWP residence requirement. 104.5 Sec. 18. Minnesota Statutes 2004, section 256J.37, 104.6 subdivision 3a, is amended to read: 104.7 Subd. 3a. [RENTAL SUBSIDIES; UNEARNED INCOME.] (a) 104.8Effective July 1, 2003,The county agency shall count$50$200 104.9 of the value of public and assisted rental subsidies provided 104.10 through the Department of Housing and Urban Development (HUD) as 104.11 unearned income to the cash portion of the MFIP grant. The full 104.12 amount of the subsidy must be counted as unearned income when 104.13 the subsidy is less than$50$200. The income from this subsidy 104.14 shall be budgeted according to section 256J.34. 104.15 (b) The provisions of this subdivision shall not apply to 104.16 an MFIP assistance unit which includes a participant who is: 104.17 (1) age 60 or older; 104.18 (2) a caregiver who is suffering from an illness, injury, 104.19 or incapacity that has been certified by a qualified 104.20 professional when the illness, injury, or incapacity is expected 104.21 to continue for more than 30 days and prevents the person from 104.22 obtaining or retaining employment; or 104.23 (3) a caregiver whose presence in the home is required due 104.24 to the illness or incapacity of another member in the assistance 104.25 unit, a relative in the household, or a foster child in the 104.26 household when the illness or incapacity and the need for the 104.27 participant's presence in the home has been certified by a 104.28 qualified professional and is expected to continue for more than 104.29 30 days. 104.30 (c) The provisions of this subdivision shall not apply to 104.31 an MFIP assistance unit where theparentalcaregiver is an SSI 104.32 recipient. 104.33 (d) Prior to implementing this provision, the commissioner 104.34 must identify the MFIP participants subject to this provision 104.35 and provide written notice to these participants at least 30 104.36 days before the first grant reduction. The notice must inform 105.1 the participant of the basis for the potential grant reduction, 105.2 the exceptions to the provision, if any, and inform the 105.3 participant of the steps necessary to claim an exception. A 105.4 person who is found not to meet one of the exceptions to the 105.5 provision must be notified and informed of the right to a fair 105.6 hearing under section 256J.40. The notice must also inform the 105.7 participant that the participant may be eligible for a rent 105.8 reduction resulting from a reduction in the MFIP grant and 105.9 encourage the participant to contact the local housing authority. 105.10 [EFFECTIVE DATE.] This section is effective the first day 105.11 of the second month after the date of approval by the United 105.12 States Department of Agriculture. 105.13 Sec. 19. Minnesota Statutes 2004, section 256J.515, is 105.14 amended to read: 105.15 256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 105.16 During the first meeting with participants, job counselors 105.17 must ensure that an overview of employment and training services 105.18 is provided that: 105.19 (1) stresses the necessity and opportunity of immediate 105.20 employment; 105.21 (2) outlines the job search resources offered; 105.22 (3) outlines education or training opportunities available; 105.23 (4) describes the range of work activities, including 105.24 activities under section 256J.49, subdivision 13, clause (18), 105.25 that are allowable under MFIP to meet the individual needs of 105.26 participants; 105.27 (5) explains the requirements to comply with an employment 105.28 plan; 105.29 (6) explains the consequences for failing to comply; 105.30 (7) explains the services that are available to support job 105.31 search and work and education;and105.32 (8) provides referral information about shelters and 105.33 programs for victims of family violence and the time limit 105.34 exemption for family violence victims; and 105.35 (9) explains the probationary employment periods new 105.36 employees may serve after being hired and any assistance with 106.1 job retention services that may be available. 106.2 Failure to attend the overview of employment and training 106.3 services without good cause results in the imposition of a 106.4 sanction under section 256J.46. 106.5 An applicant who requests and qualifies for a family 106.6 violence waiver is exempt from attending a group overview. 106.7 Information usually presented in an overview must be covered 106.8 during the development of an employment plan under section 106.9 256J.521, subdivision 3. 106.10 Sec. 20. Minnesota Statutes 2004, section 256J.751, 106.11 subdivision 2, is amended to read: 106.12 Subd. 2. [QUARTERLY COMPARISON REPORT.] The commissioner 106.13 shall report quarterly to all counties on each county's 106.14 performance on the following measures: 106.15 (1) percent of MFIP caseload working in paid employment; 106.16 (2) percent of MFIP caseload receiving only the food 106.17 portion of assistance; 106.18 (3) number of MFIP cases that have left assistance; 106.19 (4) federal participation requirements as specified in 106.20 Title 1 of Public Law 104-193; 106.21 (5) median placement wage rate; 106.22 (6) caseload by months of TANF assistance; 106.23 (7) percent of MFIP and diversionary work program (DWP) 106.24 cases off cash assistance or working 30 or more hours per week 106.25 at one-year, two-year, and three-year follow-up points from a 106.26 baseline quarter. This measure is called the self-support 106.27 index. Twice annually, the commissioner shall report an 106.28 expected range of performance for each county, county grouping, 106.29 and tribe on the self-support index. The expected range shall 106.30 be derived by a statistical methodology developed by the 106.31 commissioner in consultation with the counties and tribes. For 106.32 purposes of measuring the self-support index, participants under 106.33 section 256J.425, subdivisions 2 and 3, are excluded. The 106.34 statistical methodology shall control differences across 106.35 counties in economic conditions and demographics of the MFIP and 106.36 DWP case load; and 107.1 (8) the MFIP work participation rate, defined as the 107.2 participation requirements specified in title 1 of Public Law 107.3 104-193 applied to all MFIP cases except child only cases and 107.4 cases exempt under section 256J.56. For purposes of measuring 107.5 the work participation rate, participants under sections 107.6 256J.425, subdivisions 2 and 3; and 256J.561, subdivision 2, 107.7 paragraph (d), clauses (2) and (3), and subdivision 3, are 107.8 excluded. 107.9 Sec. 21. Minnesota Statutes 2004, section 256J.95, is 107.10 amended by adding a subdivision to read: 107.11 Subd. 21. [INTERSTATE PAYMENT STANDARDS.] (a) Effective 107.12 July 1, 2005, the amount of assistance paid to an eligible DWP 107.13 family unit in which all members have resided in this state for 107.14 fewer than 90 consecutive days shall be calculated according to 107.15 paragraph (b). 107.16 (b) Payment must be calculated by applying DWP budgeting 107.17 policies, and the unit's net income must be deducted from the 107.18 payment standard in the state of immediate prior residence or 107.19 Minnesota, whichever is less. Payments shall be vendor paid 107.20 according to subdivision 1, paragraph (d). 107.21 (c) The lesser payment must continue until the DWP family 107.22 unit meets the 90-day residency requirement. A family unit that 107.23 has not resided in Minnesota for 90 days is not exempt from the 107.24 payment provisions solely because a child is born in Minnesota 107.25 to a member of the family unit. 107.26 (d) Any eligible noncitizen who comes directly to Minnesota 107.27 from another country, and whose United States Citizenship and 107.28 Immigration Services (USCIS) settlement destination is 107.29 Minnesota, will receive the amount calculated using DWP policy 107.30 and standards. If the USCIS settlement destination is another 107.31 state, apply the lesser of the payment standard for that size 107.32 family in the state of immediate prior residence or the 107.33 standards under DWP. 107.34 (e) The assistance unit shall be eligible for the full 107.35 amount of assistance based on DWP standards beginning either the 107.36 month during which the 90-day residency requirement is met, if 108.1 the 90th day occurs on or before the 15th of the month, or the 108.2 following month if the 90th day occurs on the 16th of the month 108.3 or after. 108.4 (f) This policy applies whether or not the family unit 108.5 received similar benefits while residing in the state of 108.6 immediate prior residence. 108.7 (g) For the purposes of this section, "state of immediate 108.8 prior residence" means the state in which the applicant declares 108.9 the applicant spent the most time in the 30 days prior to moving 108.10 to Minnesota. 108.11 (h) Applicants must provide verification of their state of 108.12 immediate prior residence, in the form of tax statements, a 108.13 driver's license, automobile registration, rent receipts, or 108.14 other forms of verification approved by the commissioner. 108.15 Sec. 22. Minnesota Statutes 2004, section 256J.95, is 108.16 amended by adding a subdivision to read: 108.17 Subd. 22. [TEMPORARY ABSENCE FROM MINNESOTA.] For an 108.18 assistance unit that has met the 30-day residency requirements 108.19 in section 256J.12, subdivisions 1 to 4, the 90-day period in 108.20 subdivision 21 is not affected by a subsequent absence from 108.21 Minnesota for fewer than 30 consecutive days, provided the 108.22 family unit maintains a residence in Minnesota. 108.23 Sec. 23. Minnesota Statutes 2004, section 256J.95, is 108.24 amended by adding a subdivision to read: 108.25 Subd. 23. [INELIGIBLE MANDATORY UNIT MEMBERS.] The 90-day 108.26 residency requirement in subdivision 21 does not apply if the 108.27 family unit includes an ineligible mandatory family unit member 108.28 who has resided in Minnesota for 90 consecutive days immediately 108.29 before the unit's date of application. 108.30 Sec. 24. [256K.26] [LONG-TERM HOMELESS SUPPORTIVE 108.31 SERVICES.] 108.32 Subdivision 1. [ESTABLISHMENT AND PURPOSE.] The 108.33 commissioner shall establish the long-term homeless supportive 108.34 services fund to provide integrated services needed to stabilize 108.35 individuals, families, and youth living in supportive housing 108.36 developed to further the goals set forth in Laws 2003, chapter 109.1 128, article 15, section 9. 109.2 Subd. 2. [IMPLEMENTATION.] The commissioner, in 109.3 consultation with the commissioners of the Department of 109.4 Corrections and the Minnesota Housing Finance Agency, counties, 109.5 providers and funders of supportive housing and services, shall 109.6 develop application requirements and make funds available 109.7 according to this section, with the goal of providing maximum 109.8 flexibility in program design. 109.9 Subd. 3. [DEFINITIONS.] For purposes of this section, the 109.10 following terms have the meanings given: 109.11 (1) "long-term homelessness" means lacking a permanent 109.12 place to live continuously for one year or more or at least four 109.13 times in the past three years; and 109.14 (2) "household" means an individual, family, or 109.15 unaccompanied minor experiencing long-term homelessness. 109.16 Subd. 4. [COUNTY ELIGIBILITY.] Counties are eligible for 109.17 funding under this section. Priority will be given to proposals 109.18 submitted on behalf of multicounty partnerships. 109.19 Subd. 5. [CONTENT OF PROPOSALS.] Proposals will be 109.20 evaluated on the extent to which they: 109.21 (1) include partnerships with providers of services or 109.22 other partners; 109.23 (2) develop strategies to enhance housing stability for 109.24 people experiencing long-term homelessness by integrating 109.25 services and establishing consistent services and procedures 109.26 across jurisdictions as appropriate; 109.27 (3) evidence a commitment to working with the commissioners 109.28 of human services, corrections, and the Housing Finance Agency 109.29 to identify appropriate households to be served under this 109.30 section and serve households as defined in subdivision 3. The 109.31 commissioner may also set criteria for serving people at 109.32 significant risk of experiencing long-term homelessness, with a 109.33 priority on serving families with minor children; 109.34 (4) ensure that projects make maximum use of mainstream 109.35 resources, including employment, social, and health services, 109.36 and leverage additional public and private resources in order to 110.1 serve the maximum number of households; 110.2 (5) demonstrate cost-effectiveness by identifying and 110.3 prioritizing those services most necessary for housing 110.4 stability; and 110.5 (6) evaluate and report on outcomes of the projects 110.6 according to protocols developed by the commissioner of human 110.7 services in cooperation with the commissioners of corrections 110.8 and the Housing Finance Agency. Evaluation would include 110.9 methods for determining the quality of the integrated service 110.10 approach, improvement in outcomes, cost savings, or reduction in 110.11 service disparities that may result. 110.12 Subd. 6. [OUTCOMES.] Projects will be selected to further 110.13 the following outcomes: 110.14 (1) reduce the number of Minnesota individuals and families 110.15 that experience long-term homelessness; 110.16 (2) increase the number of housing opportunities with 110.17 supportive services; 110.18 (3) develop integrated, cost-effective service models that 110.19 address the multiple barriers to obtaining housing stability 110.20 faced by people experiencing long-term homelessness, including 110.21 abuse, neglect, chemical dependency, disability, chronic health 110.22 problems, or other factors including ethnicity and race that may 110.23 result in poor outcomes or service disparities; 110.24 (4) encourage partnerships among counties, community 110.25 agencies, schools, and other providers so that the service 110.26 delivery system is seamless for people experiencing long-term 110.27 homelessness; 110.28 (5) increase employability, self-sufficiency, and other 110.29 social outcomes for individuals and families experiencing 110.30 long-term homelessness; and 110.31 (6) reduce inappropriate use of emergency health care, 110.32 shelter, chemical dependency, foster care, child protection, 110.33 corrections, and similar services used by people experiencing 110.34 long-term homelessness. 110.35 Subd. 7. [ELIGIBLE SERVICES.] Services eligible for 110.36 funding under this section are all services needed to maintain 111.1 households in permanent supportive housing, as determined by the 111.2 county or counties administering the project or projects. 111.3 Subd. 8. [FAMILIES EXPERIENCING LONG-TERM 111.4 HOMELESSNESS.] The commissioner, in consultation with the 111.5 commissioners of housing finance and corrections, shall assess 111.6 whether the definition of long-term homelessness impacts the 111.7 ability of families with minor children experiencing 111.8 homelessness to obtain services necessary to support housing 111.9 stability. 111.10 Sec. 25. Minnesota Statutes 2004, section 260.835, is 111.11 amended to read: 111.12 260.835 [AMERICAN INDIAN CHILD WELFARE ADVISORY COUNCIL.] 111.13 Subdivision 1. [CREATION.] The commissioner shall appoint 111.14 an American Indian Advisory Council to help formulate policies 111.15 and procedures relating to Indian child welfare services and to 111.16 make recommendations regarding approval of grants provided under 111.17 section 260.785, subdivisions 1, 2, and 3. The council shall 111.18 consist of 17 members appointed by the commissioner and must 111.19 include representatives of each of the 11 Minnesota reservations 111.20 who are authorized by tribal resolution, one representative from 111.21 the Duluth Urban Indian Community, three representatives from 111.22 the Minneapolis Urban Indian Community, and two representatives 111.23 from the St. Paul Urban Indian Community. Representatives from 111.24 the urban Indian communities must be selected through an open 111.25 appointments process under section 15.0597. The terms, 111.26 compensation, and removal of American Indian Child Welfare 111.27 Advisory Council members shall be as provided in section 15.059. 111.28 Subd. 2. [EXPIRATION.] Notwithstanding section 15.059, 111.29 subdivision 5, the American Indian Child Welfare Advisory 111.30 Council expires June 30, 2008. 111.31 [EFFECTIVE DATE.] This section is effective retroactively 111.32 from June 30, 2003. 111.33 Sec. 26. [STUDY OF ECONOMIC IMPACT OF CHILD SUPPORT 111.34 GUIDELINES.] 111.35 Subdivision 1. [STUDY.] The commissioner of human services 111.36 shall employ a private provider of policy studies to conduct an 112.1 economic analysis of the child support guidelines contained in 112.2 this act to evaluate: 112.3 (1) whether the guidelines fairly represent the cost of 112.4 raising children for the respective parental income levels, 112.5 excluding medical support, child care, and education costs; 112.6 (2) whether the standards for medical support and child 112.7 care costs fairly apportion those costs between the parents, 112.8 after consideration of the respective tax benefits; and 112.9 (3) whether the guidelines fairly reflect each parent's 112.10 ability to provide for basic housing needs. 112.11 The results of the study shall be completed by no later 112.12 than January 30, 2006. The private provider must have 112.13 experience in evaluating or establishing child support 112.14 guidelines, using the income shares approach, in other states. 112.15 Sec. 27. [REPEALER.] 112.16 (a) Laws 2003, First Special Session chapter 14, article 9, 112.17 section 34, is repealed. 112.18 (b) Minnesota Statutes 2004, sections 119B.074 and 256D.54, 112.19 subdivision 3, are repealed. 112.20 (c) Minnesota Rules, parts 9500.1254 and 9500.1256, are 112.21 repealed. 112.22 ARTICLE 6 112.23 JOBS AND ECONOMIC DEVELOPMENT SUPPLEMENTAL APPROPRIATIONS 112.24 Section 1. [JOBS AND ECONOMIC DEVELOPMENT SUPPLEMENTAL 112.25 APPROPRIATIONS.] 112.26 The appropriations in this article are available after 112.27 House File No. 1664 is passed by the house of representatives 112.28 and are added to the appropriations in article 1. 112.29 The shown sums in the columns marked "APPROPRIATIONS" are 112.30 appropriated from the general fund, or another named fund, to 112.31 the agencies and for the purposes specified in this article, to 112.32 be available for the fiscal years indicated for each purpose. 112.33 The figures "2006" and "2007," where used in this article, mean 112.34 that the appropriation or appropriations listed under them are 112.35 available for the fiscal year ending June 30, 2006, or June 30, 112.36 2007, respectively. The term "first year" means the fiscal year 113.1 ending June 30, 2006, and the term "second year" means the 113.2 fiscal year ending June 30, 2007. 113.3 Sec. 2. EMPLOYMENT AND ECONOMIC DEVELOPMENT 113.4 Subdivision 1. Total 113.5 Appropriation $ 2,921,000 $ 2,921,000 113.6 The amounts that may be spent from this 113.7 appropriation for each program are 113.8 specified in the following subdivisions. 113.9 Subd. 2. Workforce Partnerships 500,000 500,000 113.10 $500,000 the first year and $500,000 113.11 the second year are for a grant under 113.12 Minnesota Statutes, section 116J.8747, 113.13 to Twin Cities RISE! to provide 113.14 training to hard-to-train individuals. 113.15 Subd. 3. Workforce Services 2,421,000 2,421,000 113.16 (a) $1,600,000 the first year and 113.17 $1,600,000 the second year are for 113.18 extended employment services for 113.19 persons with severe disabilities or 113.20 related conditions under Minnesota 113.21 Statutes, section 268A.15. 113.22 (b) $821,000 the first year and 113.23 $821,000 the second year are for grants 113.24 for programs that provide employment 113.25 support to persons with mental illness 113.26 under Minnesota Statutes, sections 113.27 268A.13 and 268A.14. Up to $43,000 113.28 each year may be used for 113.29 administrative and salary expenses. 113.30 Sec. 3. HOUSING FINANCE AGENCY 6,500,000 113.31 This appropriation is available in the 113.32 second year and is for the economic 113.33 development and housing challenge 113.34 program under Minnesota Statutes, 113.35 section 462A.33. This is a onetime 113.36 appropriation and is not to be added to 113.37 the department's base. 113.38 ARTICLE 7 113.39 HUMAN SERVICES SUPPLEMENTAL APPROPRIATIONS 113.40 Section 1. [HUMAN SERVICES SUPPLEMENTAL APPROPRIATIONS.] 113.41 The appropriations in this article are available after 113.42 House File No. 1664 is passed by the house of representatives 113.43 and are added to the appropriations in article 3. 113.44 The shown sums in the columns marked "APPROPRIATIONS" are 113.45 appropriated from the general fund, or another named fund, to 113.46 the agencies and for the purposes specified in this article, to 113.47 be available for the fiscal years indicated for each purpose. 113.48 The figures "2006" and "2007," where used in this article, mean 114.1 that the appropriation or appropriations listed under them are 114.2 available for the fiscal year ending June 30, 2006, or June 30, 114.3 2007, respectively. The term "first year" means the fiscal year 114.4 ending June 30, 2006, and the term "second year" means the 114.5 fiscal year ending June 30, 2007. 114.6 Sec. 2. CHILDREN AND ECONOMIC ASSISTANCE GRANTS 114.7 Subdivision 1. Total 114.8 Appropriation $ 1,403,000 $ 1,255,000 114.9 Subd. 2. Child Care Assistance 114.10 Provider Reimbursement Rate Grant Program 114.11 $1,403,000 the first year and 114.12 $1,255,000 the second year are 114.13 appropriated from the general fund for 114.14 the child care assistance provider 114.15 reimbursement rate grant program under 114.16 section 3. This is a onetime 114.17 appropriation and is not to be added to 114.18 the department's base. 114.19 Sec. 3. [CHILD CARE ASSISTANCE PROVIDER REIMBURSEMENT RATE 114.20 GRANT PROGRAM.] 114.21 Subdivision 1. [PURPOSE AND ESTABLISHMENT.] The 114.22 commissioner of human services shall establish a child care 114.23 assistance provider reimbursement rate grant program for the 114.24 purpose of allowing certain providers to be reimbursed at rates 114.25 above the 75th percentile of the market rate as established by 114.26 the most current market rate survey under Minnesota Statutes, 114.27 section 119B.13, and published by the Department of Human 114.28 Services. These providers must be reimbursed at a rate more 114.29 closely aligned with the actual cost of care in order to 114.30 maintain child care capacity in nonmetropolitan areas of 114.31 Minnesota. For purposes of this section, "nonmetropolitan" 114.32 means all Minnesota counties with the exceptions of Anoka, 114.33 Carver, Dakota, Hennepin, Olmsted, Ramsey, St. Louis, Scott, 114.34 Stearns, and Washington. 114.35 Subd. 2. [PROVIDER ELIGIBILITY.] (a) A nonmetropolitan 114.36 child care center providing legal child care services as defined 114.37 under Minnesota Statutes, section 245A.03, is eligible for the 114.38 grant program established under this section if the center or 114.39 facility is limited to reimbursement at or less than $160 per 114.40 week for any age category, as published by the Department of 115.1 Human Services, for services provided to families receiving 115.2 child care assistance under Minnesota Statutes, chapter 119B. 115.3 (b) A nonmetropolitan licensed family child care home 115.4 providing legal child care services as defined under Minnesota 115.5 Statutes, section 245A.03, is eligible for the grant program 115.6 established under this section if the individual is limited to 115.7 reimbursement at or less than $115 per week for any age 115.8 category, as published by the Department of Human Services, for 115.9 services provided to families receiving child care assistance 115.10 under Minnesota Statutes, chapter 119B. 115.11 Subd. 3. [APPLICATION PROCEDURE.] Child care providers may 115.12 apply to the commissioner of human services, or the 115.13 commissioner's designee, for the child care assistance provider 115.14 reimbursement rate grant program on the forms and according to 115.15 the timelines established by the commissioner. The 115.16 commissioner, or the commissioner's designee, has 30 calendar 115.17 days from the date of receipt of an application to notify the 115.18 applicant of the eligibility determination. 115.19 Subd. 4. [PROVIDER REIMBURSEMENT RATES.] Notwithstanding 115.20 Minnesota Statutes, section 119B.13, subdivision 1, and Laws 115.21 2003, First Special Session chapter 14, article 9, section 34, 115.22 and to the extent funds are available, the commissioner of human 115.23 services shall reimburse child care providers who the 115.24 commissioner or the commissioner's designee has determined 115.25 eligible under subdivision 2, for care provided to families 115.26 receiving child care assistance under Minnesota Statutes, 115.27 chapter 119B, at a rate that is the lesser of (1) the rate 115.28 charged to private pay families, or (2) the 100th percentile of 115.29 the most current market rate survey. Notwithstanding any law or 115.30 rule to the contrary, providers under this section may be 115.31 reimbursed on a half-day basis. Grant program reimbursements to 115.32 providers under this section may be made retroactive to the day 115.33 following final enactment. 115.34 Subd. 5. [SUNSET DATE.] The grant program under this 115.35 section sunsets on June 30, 2007. 115.36 ARTICLE 8 116.1 REGULATION OF SERVICE CONTRACTS 116.2 Section 1. [59B.01] [SCOPE AND PURPOSE.] 116.3 (a) The purpose of this chapter is to create a legal 116.4 framework within which service contracts may be sold in this 116.5 state. 116.6 (b) The following are exempt from this chapter: 116.7 (1) warranties; 116.8 (2) maintenance agreements; 116.9 (3) warranties, service contracts, or maintenance 116.10 agreements offered by public utilities or their affiliates; 116.11 (4) service contracts sold or offered for sale to persons 116.12 other than consumers; 116.13 (5) service contracts on tangible property where the 116.14 tangible property for which the service contract is sold has a 116.15 purchase price of $250 or less exclusive of sales tax; and 116.16 (6) motor vehicle service contracts as defined in section 116.17 65B.29, subdivision 1, paragraph (1). 116.18 (c) The types of agreements referred to in paragraph (b) 116.19 are not subject to chapters 60A to 79A, except as otherwise 116.20 specifically provided by law. 116.21 Sec. 2. [59B.02] [DEFINITIONS.] 116.22 Subdivision 1. [TERMS.] For the purposes of this chapter, 116.23 the terms defined in this section have the meanings given them. 116.24 Subd. 2. [ADMINISTRATOR.] "Administrator" means the person 116.25 who is responsible for the administration of the service 116.26 contracts or the service contracts plan or who is responsible 116.27 for any filings required by this chapter. 116.28 Subd. 3. [COMMISSIONER.] "Commissioner" means the 116.29 commissioner of commerce. 116.30 Subd. 4. [CONSUMER.] "Consumer" means a natural person who 116.31 buys, other than for purposes of resale, any tangible personal 116.32 property that is distributed in commerce and that is normally 116.33 used for personal, family, or household purposes and not for 116.34 business or research purposes. 116.35 Subd. 5. [MAINTENANCE AGREEMENT.] "Maintenance agreement" 116.36 means a contract of limited duration that provides for scheduled 117.1 maintenance only. 117.2 Subd. 6. [PERSON.] "Person" means an individual, 117.3 partnership, corporation, incorporated or unincorporated 117.4 association, joint stock company, reciprocal, syndicate, or any 117.5 similar entity or combination of entities acting in concert. 117.6 Subd. 7. [PREMIUM.] "Premium" means the consideration paid 117.7 to an insurer for a reimbursement insurance policy. 117.8 Subd. 8. [PROVIDER.] "Provider" means a person who is 117.9 contractually obligated to the service contract holder under the 117.10 terms of the service contract. 117.11 Subd. 9. [PROVIDER FEE.] "Provider fee" means the 117.12 consideration paid for a service contract. 117.13 Subd. 10. [REIMBURSEMENT INSURANCE POLICY.] "Reimbursement 117.14 insurance policy" means a policy of insurance issued to a 117.15 provider to either provide reimbursement to the provider under 117.16 the terms of the insured service contracts issued or sold by the 117.17 provider or, in the event of the provider's nonperformance, to 117.18 pay on behalf of the provider all covered contractual 117.19 obligations incurred by the provider under the terms of the 117.20 insured service contracts issued or sold by the provider. 117.21 Subd. 11. [SERVICE CONTRACT.] "Service contract" means a 117.22 contract or agreement for a separately stated consideration for 117.23 a specific duration to perform the repair, replacement, or 117.24 maintenance of property or indemnification for repair, 117.25 replacement, or maintenance, for the operational or structural 117.26 failure due to a defect in materials, workmanship, or normal 117.27 wear and tear, with or without additional provisions for 117.28 incidental payment of indemnity under limited circumstances. 117.29 Service contracts may provide for the repair, replacement, or 117.30 maintenance of property for damage resulting from power surges 117.31 and accidental damage from handling. 117.32 Subd. 12. [SERVICE CONTRACT HOLDER OR CONTRACT 117.33 HOLDER.] "Service contract holder" or "contract holder" means a 117.34 person who is the purchaser or holder of a service contract. 117.35 Subd. 13. [WARRANTY.] "Warranty" means a warranty made 117.36 solely by the manufacturer, importer, or seller of property or 118.1 services without consideration, that is not negotiated or 118.2 separated from the sale of the product, and is incidental to the 118.3 sale of the product, that guarantees indemnity for defective 118.4 parts, mechanical or electrical breakdown, labor, or other 118.5 remedial measures, such as repair or replacement of the property 118.6 or repetition of services. 118.7 Sec. 3. [59B.03] [REQUIREMENTS FOR TRANSACTING BUSINESS.] 118.8 Subdivision 1. [APPOINTMENT OF ADMINISTRATOR.] A provider 118.9 may, but is not required to, appoint an administrator or other 118.10 designee to be responsible for any or all of the administration 118.11 of service contracts and compliance with this chapter. 118.12 Subd. 2. [CONTRACT COPIES AND RECEIPTS.] Service contracts 118.13 must not be issued, sold, or offered for sale in this state 118.14 unless the provider has: 118.15 (1) provided a receipt for, or other written evidence of, 118.16 the purchase of the service contract to the contract holder; 118.17 (2) provided a copy of the service contract to the service 118.18 contract holder within a reasonable period of time from the date 118.19 of purchase; and 118.20 (3) complied with this chapter. 118.21 Subd. 3. [REGISTRATION.] Each provider of service 118.22 contracts sold in this state shall file a registration with the 118.23 commissioner on a form prescribed by the commissioner. Each 118.24 provider shall pay to the commissioner a fee in the amount of 118.25 $750 annually. 118.26 Subd. 4. [FINANCIAL REQUIREMENTS.] In order to ensure the 118.27 faithful performance of a provider's obligations to its contract 118.28 holders, each provider is responsible for complying with the 118.29 requirements of one of the following: 118.30 (1) insure all service contracts under a reimbursement 118.31 insurance policy issued by an insurer authorized to transact 118.32 insurance in this state, a risk retention group, as that term is 118.33 defined in United States Code, title 15, section 3901(A)(4), as 118.34 long as that risk retention group is in full compliance with the 118.35 federal Liability Risk Retention Act of 1986, United States 118.36 Code, title 15, section 3901, et al., or issued pursuant to 119.1 sections 60A.195 to 60A.209, and either: 119.2 (i) the insurer or risk retention group shall, at the time 119.3 the policy is filed with the commissioner, and continuously 119.4 thereafter, maintain surplus as to policyholders and paid-in 119.5 capital of at least $15,000,000, and annually file audited 119.6 financial statements with the commissioner; or 119.7 (ii) the commissioner may authorize an insurer or risk 119.8 retention group that has surplus as to policyholders and paid-in 119.9 capital of less than $15,000,000 but at least equal to 119.10 $10,000,000 to issue the insurance required by this section if 119.11 the insurer or risk retention group demonstrates to the 119.12 satisfaction of the commissioner that the company maintains a 119.13 ratio of direct written premiums, wherever written, to surplus 119.14 as to policyholders and paid-in capital of not greater than 3 to 119.15 1; or 119.16 (2)(i) maintain a funded reserve account for obligations 119.17 under contracts issued and outstanding in this state. The 119.18 reserves must not be less than 40 percent of gross consideration 119.19 received, less claims paid, on the sale of the service contract 119.20 for all in-force contracts. The reserve account is subject to 119.21 examination and review by the commissioner; and 119.22 (ii) place in trust with the commissioner a financial 119.23 security deposit, having a value of not less than five percent 119.24 of the gross consideration received, less claims paid, on the 119.25 sale of the service contract for all service contracts issued 119.26 and in force, but not less than $25,000, consisting of one of 119.27 the following: 119.28 (A) a surety bond issued by an authorized surety; 119.29 (B) securities of the type eligible for deposit by 119.30 authorized insurers in this state; 119.31 (C) cash; 119.32 (D) a letter of credit issued by a qualified financial 119.33 institution containing an evergreen clause which prevents the 119.34 expiration of the letter without due notice from the issuer; or 119.35 (E) another form of security prescribed by rules of the 119.36 commissioner; or 120.1 (3)(i) maintain, or its parent company maintain, a net 120.2 worth or stockholders' equity of $100,000,000; and 120.3 (ii) upon request, provide the commissioner with a copy of 120.4 the provider's or the provider's parent company's most recent 120.5 Form 10-K or Form 20-F filed with the Securities and Exchange 120.6 Commission (SEC) within the last calendar year, or if the 120.7 company does not file with the SEC, a copy of the company's 120.8 audited financial statements, which shows a net worth of the 120.9 provider or its parent company of at least $100,000,000. If the 120.10 provider's parent company's Form 10-K, Form 20-F, or audited 120.11 financial statements are filed to meet the provider's financial 120.12 stability requirement, then the parent company shall agree to 120.13 guarantee the obligations of the provider relating to service 120.14 contracts sold by the provider in this state. 120.15 Subd. 5. [RIGHT OF RETURN.] Service contracts must require 120.16 the provider to permit the service contract holder to return the 120.17 service contract within 20 days of the date the service contract 120.18 was mailed to the service contract holder or within ten days of 120.19 delivery if the service contract is delivered to the service 120.20 contract holder at the time of sale or within a longer time 120.21 period permitted under the service contract. Upon return of the 120.22 service contract to the provider within the applicable time 120.23 period, if no claim has been made under the service contract 120.24 before its return to the provider, the service contract is void 120.25 and the provider shall refund to the service contract holder, or 120.26 credit the account of the service contract holder, with the full 120.27 purchase price of the service contract. The right to void the 120.28 service contract provided in this paragraph is not transferable 120.29 and applies only to the original service contract purchaser, and 120.30 only if no claim has been made before its return to the 120.31 provider. A ten percent penalty per month must be added to a 120.32 refund that is not paid or credited within 45 days after return 120.33 of the service contract to the provider. 120.34 Subd. 6. [PREMIUM TAXES.] (a) Provider fees collected on 120.35 service contracts are not subject to premium taxes. 120.36 (b) Premiums for reimbursement insurance policies are 121.1 subject to applicable taxes. 121.2 Subd. 7. [LICENSING EXEMPTION.] Except for the 121.3 registration requirements in subdivision 3, providers and 121.4 related service contract sellers, administrators, and other 121.5 persons marketing, selling, or offering to sell service 121.6 contracts are exempt from any licensing requirements of this 121.7 state. 121.8 Subd. 8. [INSURANCE EXEMPTION.] The marketing, sale, 121.9 offering for sale, issuance, making, proposing to make, and 121.10 administration of service contracts by providers and related 121.11 service contract sellers, administrators, and other persons are 121.12 exempt from all other provisions of the insurance laws of this 121.13 state, except as provided in section 72A.20, subdivision 38. 121.14 Sec. 4. [59B.04] [REQUIRED DISCLOSURES; REIMBURSEMENT 121.15 INSURANCE POLICY.] 121.16 Subdivision 1. [RIGHT TO PAYMENT OR 121.17 REIMBURSEMENT.] Reimbursement insurance policies insuring 121.18 service contracts issued, sold, or offered for sale in this 121.19 state shall state that the insurer that issued the reimbursement 121.20 insurance policy shall either reimburse or pay on behalf of the 121.21 provider any covered sums the provider is legally obligated to 121.22 pay or, in the event of the provider's nonperformance, shall 121.23 provide the service which the provider is legally obligated to 121.24 perform according to the provider's contractual obligations 121.25 under the service contracts issued or sold by the provider. 121.26 Subd. 2. [RIGHT TO APPLY TO COMPANY.] In the event covered 121.27 service is not provided by the service contract provider within 121.28 60 days of proof of loss by the service contract holder, the 121.29 contract holder is entitled to apply directly to the 121.30 reimbursement insurance company. 121.31 Sec. 5. [59B.05] [REQUIRED DISCLOSURE; SERVICE CONTRACTS.] 121.32 Subdivision 1. [READABILITY AND GENERAL 121.33 DISCLOSURE.] Service contracts marketed, sold, offered for sale, 121.34 issued, made, proposed to be made, or administered in this state 121.35 must be written, printed, or typed in clear, understandable 121.36 language that is easy to read and must disclose the requirements 122.1 set forth in this section, as applicable. 122.2 Subd. 2. [IDENTITIES OF PARTIES.] Service contracts must 122.3 state the name and address of the provider, and must identify 122.4 any administrator if different from the provider, the service 122.5 contract seller, and the service contract holder to the extent 122.6 that the name of the service contract holder has been furnished 122.7 by the service contract holder. The identities of the parties 122.8 are not required to be preprinted on the service contract and 122.9 may be added to the service contract at the time of sale. 122.10 Subd. 3. [TOTAL PURCHASE PRICE AND SALES TERMS.] Service 122.11 contracts must state the total purchase price and the terms 122.12 under which the service contract is sold. The purchase price is 122.13 not required to be preprinted on the service contract and may be 122.14 negotiated at the time of sale with the service contract holder. 122.15 Subd. 4. [DEDUCTIBLES.] Service contracts must state the 122.16 existence of any deductible amount, if applicable. 122.17 Subd. 5. [COVERAGES, LIMITATIONS, AND EXCLUSIONS.] No 122.18 particular causes of loss or property are required to be 122.19 covered, but service contracts must specify the merchandise and 122.20 services to be provided and, with equal prominence, any 122.21 limitations, exceptions, or exclusions including, but not 122.22 limited to, any damage or breakdown not covered by the service 122.23 contract. 122.24 Subd. 6. [RESTRICTIONS ON TRANSFERABILITY.] Service 122.25 contracts must state any restrictions governing the 122.26 transferability of the service contract, if applicable. 122.27 Subd. 7. [CANCELLATION TERMS.] Service contracts must 122.28 state the terms, restrictions, or conditions governing 122.29 cancellation of the service contract prior to the termination or 122.30 expiration date of the service contract by either the provider 122.31 or the service contract holder. The provider of the service 122.32 contract shall mail a written notice to the contract holder at 122.33 the last known address of the service contract holder contained 122.34 in the records of the provider at least 15 days before 122.35 cancellation by the provider. Five days' notice is required if 122.36 the reason for cancellation is nonpayment of the provider fee, a 123.1 material misrepresentation by the service contract holder to the 123.2 provider, or a substantial breach of duties by the service 123.3 contract holder relating to the covered product or its use. The 123.4 notice must state the effective date of the cancellation and the 123.5 reason for the cancellation. 123.6 Subd. 8. [DUTIES OF CONTRACT HOLDER.] Service contracts 123.7 must set forth all of the obligations and duties of the service 123.8 contract holder, such as the duty to protect against any further 123.9 damage and any requirement to follow the owner's manual. 123.10 Subd. 9. [EXCLUSIONS; CONSEQUENTIAL DAMAGES AND 123.11 PREEXISTING CONDITIONS.] Service contracts may exclude coverage 123.12 for consequential damages or preexisting conditions. These 123.13 exclusions, if applicable, must be stated in the contract. 123.14 Sec. 6. [59B.06] [ADDITIONAL REQUIRED DISCLOSURE; SERVICE 123.15 CONTRACTS.] 123.16 Subdivision 1. [INSURANCE DISCLOSURE.] Service contracts 123.17 insured under a reimbursement insurance policy pursuant to 123.18 section 59B.03, subdivision 4, clause (1), must contain a 123.19 statement in substantially the following form: "Obligations of 123.20 the provider under this service contract are insured under a 123.21 service contract reimbursement insurance policy." The service 123.22 contract must also state the name and address of the insurer. 123.23 Subd. 2. [DISCLOSURE OF NO INSURANCE.] Service contracts 123.24 not insured under a reimbursement insurance policy pursuant to 123.25 section 59B.03, subdivision 4, clause (1), must contain a 123.26 statement in substantially the following form: "Obligations of 123.27 the provider under this service contract are backed by the full 123.28 faith and credit of the provider." 123.29 Sec. 7. [59B.07] [PROHIBITED ACTS.] 123.30 Subdivision 1. [DECEPTIVE NAMES.] A provider shall not use 123.31 in its name the words insurance, casualty, surety, mutual, or 123.32 any other words descriptive of the insurance, casualty, or 123.33 surety business; or a name deceptively similar to the name or 123.34 description of any insurance or surety corporation, or to the 123.35 name of any other provider. The word "guaranty" or similar word 123.36 may be used by a provider. This section does not apply to a 124.1 company that was using any of the prohibited language in its 124.2 name before the effective date of this chapter. However, a 124.3 company using the prohibited language in its name shall include 124.4 in its service contracts a statement in substantially the 124.5 following form: "This agreement is not an insurance contract." 124.6 Subd. 2. [FALSE OR MISLEADING STATEMENTS.] A provider or 124.7 its representative shall not in its service contracts, 124.8 literature, or otherwise make, permit, or cause to be made any 124.9 false or misleading statement or omit any material statement 124.10 that would be considered misleading if omitted. 124.11 Subd. 3. [REQUIRED PURCHASE.] A person, such as a bank, 124.12 savings association, lending institution, manufacturer, or 124.13 seller of any product shall not require the purchase of a 124.14 service contract as a condition of a loan or a condition for the 124.15 sale of any property. 124.16 Sec. 8. [59B.08] [RECORD-KEEPING REQUIREMENTS.] 124.17 Subdivision 1. [GENERALLY.] The provider shall keep 124.18 accurate accounts, books, and records concerning transactions 124.19 regulated under this chapter. 124.20 The provider's accounts, books, and records include the 124.21 following: 124.22 (1) copies of each type of service contracts sold; 124.23 (2) the name and address of each service contract holder to 124.24 the extent that the name and address have been furnished by the 124.25 service contract holder; 124.26 (3) a list of the locations where service contracts are 124.27 marketed, sold, or offered for sale; and 124.28 (4) written claims files which shall contain sufficient 124.29 information for the commissioner to ascertain whether a claim 124.30 has been adjusted in conformity with the terms of the service 124.31 contract, including at least the dates and description of claims 124.32 related to the service contracts. 124.33 Subd. 2. [RETENTION.] (a) Except as provided in paragraph 124.34 (b), the provider shall retain all records required to be 124.35 maintained by this section for at least three years after the 124.36 specified period of coverage has expired. 125.1 (b) A provider discontinuing business in this state shall 125.2 maintain its records until it furnishes the commissioner 125.3 satisfactory proof that it has discharged all obligations to 125.4 contract holders in this state. 125.5 Subd. 3. [MEDIUM.] The records required by this chapter 125.6 may be, but are not required to be, maintained on a computer 125.7 disk or other record-keeping technology. If the records are 125.8 maintained in other than hard copy, the records must be capable 125.9 of duplication to legible hard copy at the request of the 125.10 commissioner. 125.11 Sec. 9. [59B.09] [TERMINATION OF REIMBURSEMENT INSURANCE 125.12 POLICY.] 125.13 An insurer that issued a reimbursement insurance policy may 125.14 not terminate the policy unless the insurer mails or delivers 125.15 written notice of the termination to the commissioner at least 125.16 30 days before the effective date of termination. The 125.17 termination of a reimbursement insurance policy does not reduce 125.18 the issuer's responsibility for service contracts issued by 125.19 providers before the date of the termination. 125.20 Sec. 10. [59B.10] [OBLIGATION OF REIMBURSEMENT INSURANCE 125.21 POLICY INSURERS.] 125.22 Insurers issuing reimbursement insurance to providers are 125.23 deemed to have received the premiums for the insurance upon the 125.24 payment of provider fees by consumers for service contracts 125.25 issued by the insured providers. 125.26 Nothing in this chapter prevents or limits the right of an 125.27 insurer which issued a reimbursement insurance policy to seek 125.28 indemnification or subrogation against a provider if the issuer 125.29 pays or is obligated to pay the service contract holder sums 125.30 that the provider was obligated to pay pursuant to the 125.31 provisions of the service contract. 125.32 Sec. 11. [59B.11] [SEVERABILITY PROVISION.] 125.33 If any provision of this chapter or the application of the 125.34 provision to any person or circumstances are held invalid, the 125.35 remainder of this chapter and the application of the provision 125.36 to person or circumstances other than those as to which it is 126.1 held invalid, must not be affected. 126.2 Sec. 12. Minnesota Statutes 2004, section 72A.20, is 126.3 amended by adding a subdivision to read: 126.4 Subd. 38. [UNFAIR CLAIMS SERVICE; SERVICE CONTRACTS.] No 126.5 person shall, in connection with a service contract regulated 126.6 under chapter 59B: 126.7 (1) attempt to settle claims on the basis of an application 126.8 or any other material document which was altered without notice 126.9 to, or knowledge or consent of, the service contract holder; 126.10 (2) make a material misrepresentation to the warranty 126.11 holder for the purpose and with the intent of effecting 126.12 settlement of the claims, loss, or damage under the contract on 126.13 less favorable terms than those provided in, and contemplated 126.14 by, the contract; or 126.15 (3) commit or perform with such frequency as to indicate a 126.16 general business practice any of the following practices: 126.17 (i) failure to properly investigate claims; 126.18 (ii) misrepresentation of pertinent facts or contract 126.19 provisions relating to coverages at issue; 126.20 (iii) failure to acknowledge and act upon communications 126.21 within a reasonable time with respect to claims; 126.22 (iv) denial of claims without conducting reasonable 126.23 investigations based upon available information; 126.24 (v) failure to affirm or deny coverage of claims upon 126.25 written request of the warranty holder within a reasonable time 126.26 after proof-of-loss statements have been completed; or 126.27 (vi) failure to timely provide a reasonable explanation to 126.28 the warranty holder of the basis in the contract in relation to 126.29 the facts or applicable law for denial of a claim or for the 126.30 offer of a compromise settlement. 126.31 Sec. 13. [EFFECTIVE DATE.] 126.32 Sections 1 to 12 are effective January 1, 2006, and apply 126.33 to service contracts issued on or after that date. A provider 126.34 transacting business in this state on or before the date of the 126.35 enactment of this chapter, which submits an application for 126.36 registration as a provider under Minnesota Statutes, section 127.1 59B.03, subdivision 3, within 30 days after the commissioner 127.2 makes the application available, may continue to transact 127.3 business in this state until final agency action is taken by the 127.4 commissioner regarding the registration application and all 127.5 rights to administrative and judicial review related to that 127.6 final agency action have been exhausted or have expired. 127.7 ARTICLE 9 127.8 SUPPLEMENTAL APPROPRIATIONS 127.9 Section 1. [SUPPLEMENTAL APPROPRIATIONS.] 127.10 The provisions in this article are effective after H.F. No. 127.11 2427 is passed by the house of representatives and are added to 127.12 the appropriations in article 3. 127.13 Sec. 2. [AMENDMENT.] 127.14 H.F. No. 2427 is amended on page 2, line 5, by deleting 127.15 ".00014" and inserting ".000112" 127.16 Sec. 3. Minnesota Statutes 2004, section 256K.35, is 127.17 amended by adding a subdivision to read: 127.18 Subd. 5. [APPROPRIATION.] An amount equal to the proceeds 127.19 of the deed tax under section 287.21, subdivision 1, paragraph 127.20 (b), clause (3), on .000028 of the net consideration is 127.21 appropriated from the general fund to the commissioner of human 127.22 services for at risk youth out-of-wedlock pregnancy prevention 127.23 grants under this section. A minimum of 35 percent of these 127.24 grant funds must be awarded to eligible applicants located 127.25 outside of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 127.26 Washington Counties.