2nd 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.05, subdivisions 1, 5; 1.11 82B.09, subdivision 1; 115C.07, subdivision 3; 1.12 115C.09, subdivision 3h; 115C.13; 116C.779, 1.13 subdivision 2; 116J.551, subdivision 1; 116J.571; 1.14 116J.572; 116J.574; 116J.575, as amended; 116J.63, 1.15 subdivision 2; 116J.8731, subdivision 5; 116J.8747, 1.16 subdivision 2; 116J.994, subdivisions 7, 9; 116L.03, 1.17 subdivision 2; 116L.05, by adding a subdivision; 1.18 116L.17, subdivision 1; 116L.20, subdivision 2; 1.19 119B.02, by adding a subdivision; 119B.13, subdivision 1.20 1, by adding a subdivision; 183.41, by adding a 1.21 subdivision; 183.411, subdivisions 2a, 3; 183.42; 1.22 183.44, subdivision 1; 183.51, subdivision 2, by 1.23 adding a subdivision; 183.545; 183.57; 216C.41, 1.24 subdivisions 2, 5, 5a; 237.11; 237.295, subdivisions 1.25 1, 2; 239.011, subdivision 2; 239.05, subdivision 10b, 1.26 by adding a subdivision; 239.09; 239.101, subdivision 1.27 3; 239.75, subdivisions 1, 5; 239.761; 239.77, by 1.28 adding a subdivision; 239.79, subdivision 4; 239.791, 1.29 subdivisions 1, 7, 8, 15; 239.792; 245A.10, 1.30 subdivision 4; 254A.035, subdivision 2; 254A.04; 1.31 256.01, by adding subdivisions; 256.741, subdivision 1.32 4; 256B.0924, subdivision 3; 256B.093, subdivision 1; 1.33 256D.06, subdivisions 5, 7, by adding a subdivision; 1.34 256I.05, subdivision 1e; 256J.12, subdivision 1, by 1.35 adding a subdivision; 256J.37, subdivision 3a; 1.36 256J.515; 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.05, 17.30 subdivision 1, is amended to read: 17.31 Subdivision 1. [MEMBERS.] The Real Estate Appraiser 17.32 Advisory Board consists of 15 members appointed by the 17.33 commissioner of commerce. Three of the members must be public 17.34 members, four must be consumers of appraisal services, and eight 17.35 must be real estate appraisers of whom not less than two members 17.36 shall be registered real property appraisers, licensed real 18.1 property appraisers, or certified residential real property 18.2 appraisersand, not less than two members shall be certified 18.3 general real property appraisers, and not less than one member 18.4 shall be certified by the Appraisal Qualification Board of the 18.5 Appraisal Foundation to teach the Uniform Standards of 18.6 Professional Appraisal Practice. The board is governed by 18.7 section 15.0575. 18.8 Sec. 7. Minnesota Statutes 2004, section 82B.05, 18.9 subdivision 5, is amended to read: 18.10 Subd. 5. [CONDUCT OF MEETINGS.] Places of regular board 18.11 meetings must be decided by the vote of members. Written notice 18.12 must be given to each member of the time and place of each 18.13 meeting of the board at least ten days before the scheduled date 18.14 of regular board meetings. The board shall establish procedures 18.15 for emergency board meetings and other operational procedures, 18.16 subject to the approval of the commissioner. 18.17 The members of the board shall elect a chair from among the 18.18 members to preside at board meetings. 18.19 A quorum of the board is eight members. 18.20 The board shall meet once every six months, or sooner as 18.21 determined by a majority vote of the members or a call of the 18.22 commissioner. 18.23 Sec. 8. Minnesota Statutes 2004, section 82B.09, 18.24 subdivision 1, is amended to read: 18.25 Subdivision 1. [AMOUNTS.] The following fees must be paid 18.26 to the commissioner: 18.27 (1) $150 for each initial individual real estate 18.28 appraiser's license: $150 if the license expires more than 1218.29months after issuance, $100 if the license expires less than 1218.30months after issuance; anda fee of18.31 (2) $100 for each renewal. 18.32 Sec. 9. Minnesota Statutes 2004, section 115C.07, 18.33 subdivision 3, is amended to read: 18.34 Subd. 3. [RULES.] (a) The board shall adopt rules 18.35 regarding its practices and procedures, the form and procedure 18.36 for applications for compensation from the fund, procedures for 19.1 investigation of claims and specifying the costs that are 19.2 eligible for reimbursement from the fund. 19.3 (b) The board may adopt rules requiring certification of 19.4 environmental consultants. 19.5 (c) The board may adopt other rules necessary to implement 19.6 this chapter. 19.7 (d) The board may use section 14.389 to adopt rules 19.8 specifying the competitive bidding requirements for consultant 19.9 services proposals. 19.10 (e) The board may use section 14.389 to adopt rules 19.11 specifying the written proposal and invoice requirements for 19.12 consultant services. 19.13 Sec. 10. Minnesota Statutes 2004, section 115C.09, 19.14 subdivision 3h, is amended to read: 19.15 Subd. 3h. [REIMBURSEMENT; ABOVEGROUND TANKS IN BULK 19.16 PLANTS.] (a) As used in this subdivision, "bulk plant" means an 19.17 aboveground or underground tank facility with a storage capacity 19.18 of more than 1,100 gallons but less than 1,000,000 gallons that 19.19 is used to dispense petroleum into cargo tanks for 19.20 transportation and sale at another location. 19.21 (b) Notwithstanding any other provision in this chapter and 19.22 any rules adopted pursuant to this chapter, the board shall 19.23 reimburse 90 percent of an applicant's cost for bulk plant 19.24 upgrades or closures completed between June 1, 1998, and 19.25 November 1, 2003, to comply with Minnesota Rules, chapter 7151, 19.26 provided that the board determines the costs were incurred and 19.27 reasonable. The reimbursement may not exceed $10,000 per bulk 19.28 plant. The board may provide reimbursement under this paragraph 19.29 for work completed after November 1, 2003, if the work was 19.30 contracted for prior to that date and was not completed by that 19.31 date as a result of an unanticipated situation, provided that an 19.32 application for reimbursement under this paragraph, which may be 19.33 a renewal of an application previously denied, is submitted 19.34 prior to December 31, 2005. 19.35 (c) For corrective action at a bulk plant located on what 19.36 is or was railroad right-of-way, the board shall reimburse 90 20.1 percent of total reimbursable costs on the first $40,000 of 20.2 reimbursable costs and 100 percent of any remaining reimbursable 20.3 costs when the applicant can document that more than one bulk 20.4 plant was operated on the same section of right-of-way, as 20.5 determined by the commissioner of commerce. 20.6 Sec. 11. Minnesota Statutes 2004, section 115C.13, is 20.7 amended to read: 20.8 115C.13 [REPEALER.] 20.9 Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 20.10 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 20.11 115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112, 20.12 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 20.1320072012. 20.14 Sec. 12. Minnesota Statutes 2004, section 116C.779, 20.15 subdivision 2, is amended to read: 20.16 Subd. 2. [RENEWABLE ENERGY PRODUCTION INCENTIVE.] (a) 20.17 Until January 1, 2018, up to$6,000,000$10,900,000 annually 20.18 must be allocated from available funds in the account to fund 20.19 renewable energy production incentives.$4,500,000$9,400,000 20.20 of this annual amount is for incentives for up to100200 20.21 megawatts of electricity generated by wind energy conversion 20.22 systems that are eligible for the incentives under section 20.23 216C.41. The balance of this amount, up to $1,500,000 annually, 20.24 may be used for production incentives for on-farm biogas 20.25 recovery facilities that are eligible for the incentive under 20.26 section 216C.41 or for production incentives for other 20.27 renewables, to be provided in the same manner as under section 20.28 216C.41. Any portion of the$6,000,000$10,900,000 not expended 20.29 in any calendar year for the incentive is available for other 20.30 spending purposes under this section. This subdivision does not 20.31 create an obligation to contribute funds to the account. 20.32 (b) The Department of Commerce shall determine eligibility 20.33 of projects under section 216C.41 for the purposes of this 20.34 subdivision. At least quarterly, the Department of Commerce 20.35 shall notify the public utility of the name and address of each 20.36 eligible project owner and the amount due to each project under 21.1 section 216C.41. The public utility shall make payments within 21.2 15 working days after receipt of notification of payments due. 21.3 Sec. 13. Minnesota Statutes 2004, section 116J.551, 21.4 subdivision 1, is amended to read: 21.5 Subdivision 1. [GRANT ACCOUNT.] A contaminated site 21.6 cleanup and development grant account is created in the general 21.7 fund. Money in the account may be used, as appropriated by law, 21.8 to make grants as provided in section 116J.554 and to pay for 21.9 the commissioner's costs in reviewing applications and making 21.10 grants. Notwithstanding section 16A.28, money appropriated to 21.11 the account is available for four years. 21.12 Sec. 14. Minnesota Statutes 2004, section 116J.571, is 21.13 amended to read: 21.14 116J.571 [CREATION OF ACCOUNTS.] 21.15 Twogreater Minnesotaredevelopment accounts are created, 21.16 one in the general fund and one in the bond proceeds fund. 21.17 Money in the accounts may be used to make grants as provided in 21.18 section 116J.575. Money in the bond proceeds fund may only be21.19used for eligible costs for publicly owned property. Money in21.20the general fund may be usedand to pay for the commissioner's 21.21 costs in reviewingtheapplications and making grants. 21.22 Sec. 15. Minnesota Statutes 2004, section 116J.572, is 21.23 amended to read: 21.24 116J.572 [DEFINITIONS.] 21.25 Subdivision 1. [SCOPE OF APPLICATION.] For purposes of 21.26 sections 116J.571 to 116J.575, the terms in this section have 21.27 the meanings given. 21.28 Subd. 2. [DEVELOPMENT AUTHORITY.] "Development authority" 21.29 includes a statutory or home rule charter city, county, housing 21.30 and redevelopment authority, economic development authority, or 21.31 port authoritylocated outside. 21.32 Subd. 2a. [METROPOLITAN AREA.] "Metropolitan area" means 21.33 the seven-county metropolitan area, as defined in section 21.34 473.121, subdivision 2. 21.35 Subd. 2b. [MUNICIPALITY.] "Municipality" means the 21.36 statutory or home rule charter city, town, or, in the case of 22.1 unorganized territory, county in which the redevelopment is 22.2 located. 22.3 Subd. 3. [ELIGIBLEREDEVELOPMENT COSTS OR COSTS.] 22.4 "EligibleRedevelopment costs" or "costs" means the costs of 22.5 land acquisition, stabilizing unstable soils when infill is 22.6 required, demolition, infrastructure improvements, and ponding 22.7 or other environmental infrastructure; building construction,22.8design and engineering;and costs necessary for adaptive reuse 22.9 of buildings, including remedial activities.Eligible costs do22.10not include project administration and legal fees.22.11Subd. 4. [REDEVELOPMENT.] "Redevelopment" means recycling22.12obsolete, abandoned, or underutilized properties for new22.13industrial, commercial, or residential uses.22.14 Sec. 16. Minnesota Statutes 2004, section 116J.574, is 22.15 amended to read: 22.16 116J.574 [GRANT APPLICATIONS.] 22.17 Subdivision 1. [APPLICATION REQUIRED.] To obtain a 22.18 redevelopment grant, a development authority shall apply to the 22.19 commissioner. The governing body of the municipality must 22.20 approve the application by resolution. 22.21 Subd. 2. [REQUIRED CONTENT.] The commissioner shall 22.22 prescribe and provide the application form. The application 22.23 must include at least the following information: 22.24 (1) identification of the site; 22.25 (2) a redevelopment plan for the site; 22.26 (3) a detailedbudgetestimate,includingalong with 22.27 necessary supporting evidence, of the total redevelopment costs 22.28 for the siteincluding the total eligible redevelopment costs; 22.29(3) a complete(4) an assessment of the development 22.30 potential or likely use of the site after completion of the 22.31 redevelopment plan, including any specific commitments from 22.32 third parties to construct improvements on the site; 22.33(4) a complete financing plan, including(5) the manner in 22.34 which thedevelopment authority uses innovative financial22.35partnerships between government, private for-profit, and22.36nonprofit sectorsmunicipality will meet the local match 23.1 requirement; and 23.2(5)(6) any additional information or materialthatthe 23.3 commissioner prescribes. 23.4 Sec. 17. Minnesota Statutes 2004, section 116J.575, as 23.5 amended by Laws 2005, chapter 20, article 1, section 33, is 23.6 amended to read: 23.7 116J.575 [GRANTS.] 23.8 Subdivision 1. [COMMISSIONER DISCRETION.] The commissioner 23.9 may make a grant for up to 50 percent of the eligible costs of a 23.10 project. The determination of whether to make a grant for a 23.11 site is within the discretion of the commissioner, subject to 23.12 this section and sections 116J.571 to 116J.574 and available 23.13 unencumbered money in thegreater Minnesotaredevelopment 23.14 account. Notwithstanding section 116J.573, if the commissioner 23.15 determines that the applications for grants for projects in 23.16 greater Minnesota are less than the amount of grant funds 23.17 available, the commissioner may make grants for projects 23.18 anywhere in Minnesota. The commissioner's decisions and 23.19 application of the priorities under this section are not subject 23.20 to judicial review, except for abuse of discretion. 23.21 Subd. 1a. [PRIORITIES.] (a) If applications for grants 23.22 exceed the available appropriations, grants shall be made for 23.23 sites that, in the commissioner's judgment, provide the highest 23.24 return in public benefits for the public costs incurred. 23.25 "Public benefits" include job creation, environmental benefits 23.26 to the state and region, efficient use of public transportation, 23.27 efficient use of existing infrastructure, provision of 23.28 affordable housing, multiuse development that constitutes 23.29 community rebuilding rather than single-use development, crime 23.30 reduction, blight reduction, community stabilization, and 23.31 property tax base maintenance or improvement. In making this 23.32 judgment, the commissioner shall give priority to redevelopment 23.33 projects with one or more of the following characteristics: 23.34 (1) the need for redevelopment in conjunction with 23.35 contamination remediation needs; 23.36 (2) the redevelopment project meets current tax increment 24.1 financing requirements for a redevelopment district and tax 24.2 increments will contribute to the project; 24.3 (3) the redevelopment potential within the municipality; 24.4 (4) proximity to public transit if located in the 24.5 metropolitan area; and 24.6 (5) multijurisdictional projects that take into account the 24.7 need for affordable housing, transportation, and environmental 24.8 impact. 24.9 (b) The factors in paragraph (a) are not listed in a rank 24.10 order of priority; rather, the commissioner may weigh each 24.11 factor, depending upon the facts and circumstances, as the 24.12 commissioner considers appropriate. 24.13 Subd. 2. [APPLICATION CYCLES.] In making grants, the 24.14 commissioner shall establish semiannual application deadlines in 24.15 which grants will be authorized from all or part of the 24.16 available money in the account. 24.17 Subd. 3. [MATCH REQUIRED.] In order to qualify for a grant 24.18 under sections 116J.571 to 116J.575, the municipality must pay 24.19 for at least one-half of the redevelopment costs as a local 24.20 match from any money available to the municipality. 24.21 Sec. 18. Minnesota Statutes 2004, section 116J.63, 24.22 subdivision 2, is amended to read: 24.23 Subd. 2. [FEES.] (a) Fees for reports, publications, or 24.24 related publicity or promotional material are not subject to the 24.25 rulemaking requirements of chapter 14 and are not subject to 24.26 section 16A.1285. The fees prescribed by the commissioner must 24.27 be commensurate with the distribution objective of the 24.28 department for the material produced or with the cost of 24.29 furnishing the services. Except as described in paragraph (b), 24.30 all fees for materials and services must be deposited in the 24.31 general fund. 24.32 (b) The commissioner may sell marketing materials at cost 24.33 to economic development organizations and others in quantities 24.34 that would not otherwise be available through general fund 24.35 appropriations. Funds received must be placed in a special 24.36 revolving account and are appropriated to the commissioner to 25.1 pay for the production of the materials. 25.2 Sec. 19. Minnesota Statutes 2004, section 116J.8731, 25.3 subdivision 5, is amended to read: 25.4 Subd. 5. [GRANT LIMITS.] A Minnesota investment fund grant 25.5 may not be approved for an amount in excess of $1,000,000. This 25.6 limit covers all money paid to complete the same project, 25.7 whether paid to one or more grant recipients and whether paid in 25.8 one or more fiscal years.The portionA local community or 25.9 recognized Indian tribal government may retain 20 percent, but 25.10 not more than $100,000 of a Minnesota investment fund grantthat25.11exceeds $100,000 must be repaid to the statewhen it is repaid 25.12 to the local community or recognized Indian tribal government by 25.13 the person or entity to which it was loaned by the local 25.14 community or Indian tribal government. Money repaid to the 25.15 state must be credited to a Minnesota investment revolving loan 25.16 account in the state treasury. Funds in the account are 25.17 appropriated to the commissioner and must be used in the same 25.18 manner as are funds appropriated to the Minnesota investment 25.19 fund. Funds repaid to the state through existing Minnesota 25.20 investment fund agreements must be credited to the Minnesota 25.21 investment revolving loan account effective July 1, 2003. A 25.22 grant or loan may not be made to a person or entity for the 25.23 operation or expansion of a casino or a store which is used 25.24 solely or principally for retail sales. Persons or entities 25.25 receiving grants or loans must pay each employee total 25.26 compensation, including benefits not mandated by law, that on an 25.27 annualized basis is equal to at least 110 percent of the federal 25.28 poverty level for a family of four. 25.29 Sec. 20. Minnesota Statutes 2004, section 116J.8747, 25.30 subdivision 2, is amended to read: 25.31 Subd. 2. [QUALIFIED JOB TRAINING PROGRAM.] To qualify for 25.32 grants under this section, a job training program must satisfy 25.33 the following requirements: 25.34 (1) the program must be operated by a nonprofit corporation 25.35 that qualifies under section 501(c)(3) of the Internal Revenue 25.36 Code; 26.1 (2) the program must spend at least $15,000 per graduate of 26.2 the program; 26.3 (3) the program must provide education and training in: 26.4 (i) basic skills, such as reading, writing, mathematics, 26.5 and communications; 26.6 (ii) thinking skills, such as reasoning, creative thinking, 26.7 decision making, and problem solving; and 26.8 (iii) personal qualities, such as responsibility, 26.9 self-esteem, self-management, honesty, and integrity; 26.10 (4) the program must provide income supplements, when 26.11 needed, to participants for housing, counseling, tuition, and 26.12 other basic needs; 26.13 (5) the program's education and training course must last 26.14 for an average of at least six months; 26.15 (6) individuals served by the program must: 26.16 (i) be 18 years of age or older; 26.17 (ii) have federal adjusted gross income of no more than 26.18 $11,000 per year in thetwo yearscalendar year immediately 26.19 before entering the program; 26.20 (iii) have assets of no more than $7,000, excluding the 26.21 value of a homestead; and 26.22 (iv) not have been claimed as a dependent on the federal 26.23 tax return of another person in the previous taxable year; and 26.24 (7) the program must be certified by the commissioner of 26.25 employment and economic development as meeting the requirements 26.26 of this subdivision. 26.27 Sec. 21. Minnesota Statutes 2004, section 116J.994, 26.28 subdivision 7, is amended to read: 26.29 Subd. 7. [REPORTS BY RECIPIENTS TO GRANTORS.] (a) A 26.30 business subsidy grantor must monitor the progress by the 26.31 recipient in achieving agreement goals. 26.32 (b) A recipient must provide information regarding goals 26.33 and results for two years after the benefit date or until the 26.34 goals are met, whichever is later. If the goals are not met, 26.35 the recipient must continue to provide information on the 26.36 subsidy until the subsidy is repaid. The information must be 27.1 filed on forms developed by the commissioner in cooperation with 27.2 representatives of local government. Copies of the completed 27.3 forms must be sent to the local government agency that provided 27.4 the subsidy or to the commissioner if the grantor is a state 27.5 agency. If the Iron Range Resources and Rehabilitation Board is 27.6 the grantor, the copies must be sent to the board. The report 27.7 must include: 27.8 (1) the type, public purpose, and amount of subsidies and 27.9 type of district, if the subsidy is tax increment financing; 27.10 (2) the hourly wage of each job created with separate bands 27.11 of wages; 27.12 (3) the sum of the hourly wages and cost of health 27.13 insurance provided by the employer with separate bands of wages; 27.14 (4) the date the job and wage goals will be reached; 27.15 (5) a statement of goals identified in the subsidy 27.16 agreement and an update on achievement of those goals; 27.17 (6) the location of the recipient prior to receiving the 27.18 business subsidy; 27.19 (7) the number of employees who ceased to be employed by 27.20 the recipient when the recipient relocated to become eligible 27.21 for the business subsidy; 27.22 (8) why the recipient did not complete the project outlined 27.23 in the subsidy agreement at their previous location, if the 27.24 recipient was previously located at another site in Minnesota; 27.25(8)(9) the name and address of the parent corporation of 27.26 the recipient, if any; 27.27(9)(10) a list of all financial assistance by all grantors 27.28 for the project; and 27.29(10)(11) other information the commissioner may request. 27.30 A report must be filed no later than March 1 of each year for 27.31 the previous year. The local agency and the Iron Range 27.32 Resources and Rehabilitation Board must forward copies of the 27.33 reports received by recipients to the commissioner by April 1. 27.34 (c) Financial assistance that is excluded from the 27.35 definition of "business subsidy" by section 116J.993, 27.36 subdivision 3, clauses (4), (5), (8), and (16), is subject to 28.1 the reporting requirements of this subdivision, except that the 28.2 report of the recipient must include instead: 28.3 (1) the type, public purpose, and amount of the financial 28.4 assistance, and type of district if the assistance is tax 28.5 increment financing; 28.6 (2) progress towards meeting goals stated in the assistance 28.7 agreement and the public purpose of the assistance; 28.8 (3) if the agreement includes job creation, the hourly wage 28.9 of each job created with separate bands of wages; 28.10 (4) if the agreement includes job creation, the sum of the 28.11 hourly wages and cost of health insurance provided by the 28.12 employer with separate bands of wages; 28.13 (5) the location of the recipient prior to receiving the 28.14 assistance; and 28.15 (6) other information the grantor requests. 28.16 (d) If the recipient does not submit its report, the local 28.17 government agency must mail the recipient a warning within one 28.18 week of the required filing date. If, after 14 days of the 28.19 postmarked date of the warning, the recipient fails to provide a 28.20 report, the recipient must pay to the grantor a penalty of $100 28.21 for each subsequent day until the report is filed. The maximum 28.22 penalty shall not exceed $1,000. 28.23 Sec. 22. Minnesota Statutes 2004, section 116J.994, 28.24 subdivision 9, is amended to read: 28.25 Subd. 9. [COMPILATION AND SUMMARY REPORT.] The Department 28.26 of Employment and Economic Development must publish a 28.27 compilation and summary of the results of the reports for the 28.28 previous two calendar years by December 1 of 2004 and every 28.29 other year thereafter. The reports of the government agencies 28.30 to the department and the compilation and summary report of the 28.31 department must be made available to the public. 28.32 The commissioner must coordinate the production of reports 28.33 so that useful comparisons across time periods and across 28.34 grantors can be made. The commissioner may add other 28.35 information to the report as the commissioner deems necessary to 28.36 evaluate business subsidies. Among the information in the 29.1 summary and compilation report, the commissioner must include: 29.2 (1) total amount of subsidies awarded in each development 29.3 region of the state; 29.4 (2) distribution of business subsidy amounts by size of the 29.5 business subsidy; 29.6 (3) distribution of business subsidy amounts by time 29.7 category; 29.8 (4) distribution of subsidies by type and by public 29.9 purpose; 29.10 (5) percent of all business subsidies that reached their 29.11 goals; 29.12 (6) percent of business subsidies that did not reach their 29.13 goals by two years from the benefit date; 29.14 (7) total dollar amount of business subsidies that did not 29.15 meet their goals after two years from the benefit date; 29.16 (8) percent of subsidies that did not meet their goals and 29.17 that did not receive repayment; 29.18 (9) list of recipients that have failed to meet the terms 29.19 of a subsidy agreement in the past five years and have not 29.20 satisfied their repayment obligations; 29.21 (10) number of part-time and full-time jobs within separate 29.22 bands of wages for the entire state and for each development 29.23 region of the state;and29.24 (11) benefits paid within separate bands of wages for the 29.25 entire state and for each development region of the state; and 29.26 (12) number of employees in the entire state and in each 29.27 development region of the state who ceased to be employed 29.28 because their employers relocated to become eligible for a 29.29 business subsidy. 29.30 Sec. 23. Minnesota Statutes 2004, section 116L.03, 29.31 subdivision 2, is amended to read: 29.32 Subd. 2. [APPOINTMENT.] The Minnesota Job Skills 29.33 Partnership Board consists of: seven members appointed by the 29.34 governor,the chair of the governor's Workforce Development29.35Council,the commissioner of employment and economic 29.36 development, the chancellor, or the chancellor's designee, of 30.1 the Minnesota State Colleges and Universities, the president, or 30.2 the president's designee, of the University of Minnesota, and 30.3 two nonlegislator members, one appointed by the Subcommittee on 30.4 Committees of the senate Committee on Rules and Administration 30.5 and one appointed by the speaker of the house. If the 30.6 chancellor or the president of the university makes a 30.7 designation under this subdivision, the designee must have 30.8 experience in technical education. Four of the appointed 30.9 members must be members of the governor's Workforce Development 30.10 Council, of whom two must represent organized labor and two must 30.11 represent business and industry. One of the appointed members 30.12 must be a representative of a nonprofit organization that 30.13 provides workforce development or job training services. 30.14 Sec. 24. Minnesota Statutes 2004, section 116L.05, is 30.15 amended by adding a subdivision to read: 30.16 Subd. 5. [USE OF WORKFORCE DEVELOPMENT FUNDS.] After March 30.17 1 of any fiscal year, the board may use workforce development 30.18 funds for the purposes outlined in sections 116L.04, 116L.06, 30.19 and 116L.10 to 116L.14, or to provide incumbent worker training 30.20 services under section 116L.18 if the following conditions have 30.21 been met: 30.22 (1) the board examines relevant economic indicators, 30.23 including the projected number of layoffs for the remainder of 30.24 the fiscal year and the next fiscal year, evidence of declining 30.25 and expanding industries, the number of initial applications for 30.26 and the number of exhaustions of unemployment benefits, job 30.27 vacancy data, and any additional relevant information brought to 30.28 the board's attention; 30.29 (2) the board accounts for all allocations made in section 30.30 116L.17, subdivision 2; 30.31 (3) based on the past expenditures and projected revenue, 30.32 the board estimates future funding needs for services under 30.33 section 116L.17 for the remainder of the current fiscal year and 30.34 the next fiscal year; 30.35 (4) the board determines there will be unspent funds after 30.36 meeting the needs of dislocated workers in the current fiscal 31.1 year and there will be sufficient revenue to meet the needs of 31.2 dislocated workers in the next fiscal year; and 31.3 (5) the board reports its findings in clauses (1) to (4) to 31.4 the chairs of legislative committees with jurisdiction over the 31.5 workforce development fund, to the commissioners of revenue and 31.6 finance, and to the public. 31.7 Sec. 25. Minnesota Statutes 2004, section 116L.17, 31.8 subdivision 1, is amended to read: 31.9 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 31.10 section, the following terms have the meanings given them in 31.11 this subdivision. 31.12 (b) "Commissioner" means the commissioner of employment and 31.13 economic development. 31.14 (c) "Dislocated worker" means an individual who is a 31.15 resident of Minnesota at the time employment ceased or was 31.16 working in the state at the time employment ceased and: 31.17 (1) has been permanently separated or has received a notice 31.18 of permanent separation from public or private sector employment 31.19 and is eligible for or has exhausted entitlement to unemployment 31.20 benefits, and is unlikely to return to the previous industry or 31.21 occupation; 31.22 (2) has been long-term unemployed and has limited 31.23 opportunities for employment or reemployment in the same or a 31.24 similar occupation in the area in which the individual resides, 31.25 including older individuals who may have substantial barriers to 31.26 employment by reason of age; 31.27 (3) has been self-employed, including farmers and ranchers, 31.28 and is unemployed as a result of general economic conditions in 31.29 the community in which the individual resides or because of 31.30 natural disasters; or 31.31 (4) is a displaced homemaker. A "displaced homemaker" is 31.32 an individual who has spent a substantial number of years in the 31.33 home providing homemaking service and (i) has been dependent 31.34 upon the financial support of another; and now due to divorce, 31.35 separation, death, or disability of that person, must find 31.36 employment to self support; or (ii) derived the substantial 32.1 share of support from public assistance on account of dependents 32.2 in the home and no longer receivessuch supportcash assistance 32.3 under chapter 256J. 32.4 To be eligible under this clause, the support must have 32.5 ceased while the worker resided in Minnesota. 32.6 (d) "Eligible organization" means a state or local 32.7 government unit, nonprofit organization, community action 32.8 agency, business organization or association, or labor 32.9 organization. 32.10 (e) "Plant closing" means the announced or actual permanent 32.11 shutdown of a single site of employment, or one or more 32.12 facilities or operating units within a single site of employment. 32.13 (f) "Substantial layoff" means a permanent reduction in the 32.14 workforce, which is not a result of a plant closing, and which 32.15 results in an employment loss at a single site of employment 32.16 during any 30-day period for at least 50 employees excluding 32.17 those employees that work less than 20 hours per week. 32.18 Sec. 26. [116L.18] [SPECIAL INCUMBENT WORKER TRAINING 32.19 GRANTS.] 32.20 Subdivision 1. [PURPOSE.] The purpose of the special 32.21 incumbent worker training grants is to expand opportunities for 32.22 businesses and workers to gain new skills that are in demand in 32.23 the Minnesota economy. The board shall establish criteria for 32.24 incumbent worker grants under this section and may encourage 32.25 creative training models, innovative partnerships, and expansion 32.26 or replication of promising practices. 32.27 Subd. 2. [DEFINITIONS.] (a) For the purposes of this 32.28 section, the following terms have the meanings given them. 32.29 (b) "Incumbent worker" means an individual employed by a 32.30 qualifying employer. 32.31 (c) "Qualifying employer" means a for-profit business or 32.32 nonprofit organization in Minnesota with at least one full-time 32.33 paid employee. Public sector organizations are not considered 32.34 qualifying employers. 32.35 (d) "Eligible organization" has the meaning given in 32.36 section 116L.17. 33.1 Subd. 3. [AMOUNT OF GRANTS.] A grant to an eligible 33.2 organization may not exceed $400,000. 33.3 Subd. 4. [MATCHING FUNDS.] The board shall require 33.4 matching funds from qualifying employers in the form of funding, 33.5 equipment, or faculty. 33.6 Subd. 5. [USE OF FUNDS.] Eligible organizations shall use 33.7 funds granted under this section for direct training services to 33.8 provide a measurable increase in the job-related skills of 33.9 participating incumbent workers. Eligible organizations may 33.10 also provide basic assessment, counseling, and preemployment 33.11 training services requested by the qualifying employer. No 33.12 funds may be used for support services as described in section 33.13 116L.17, subdivision 4, clause (2). 33.14 Subd. 6. [PERFORMANCE OUTCOME MEASURES.] The board and the 33.15 commissioner of employment and economic development shall 33.16 jointly develop performance outcome measures and standards for 33.17 this program. The commissioner and board shall consult with 33.18 eligible organizations in establishing standards. Measures at a 33.19 minimum must include posttraining retention, promotion, and wage 33.20 increase. The board and commissioner shall provide a report to 33.21 the legislature by March 1 of each year on the previous fiscal 33.22 year's program performance. Eligible organizations must provide 33.23 performance data in a timely manner for the completion of this 33.24 report. 33.25 Sec. 27. Minnesota Statutes 2004, section 116L.20, 33.26 subdivision 2, is amended to read: 33.27 Subd. 2. [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 33.28 The money collected under this section shall be deposited in the 33.29 state treasury and credited to the workforce development fund to 33.30 provide for employment and training programs. The workforce 33.31 development fund is created as a special account in the state 33.32 treasury. 33.33 (b) All money in the fund not otherwise appropriated or 33.34 transferred is appropriated to the Job Skills Partnership Board 33.35 for the purposes of section 116L.17 and as provided for in 33.36 paragraph (d). The board must act as the fiscal agent for the 34.1 money and must disburse that money for the purposes of section 34.2 116L.17, not allowing the money to be used for any other 34.3 obligation of the state. All money in the workforce development 34.4 fund shall be deposited, administered, and disbursed in the same 34.5 manner and under the same conditions and requirements as are 34.6 provided by law for the other special accounts in the state 34.7 treasury, except that all interest or net income resulting from 34.8 the investment or deposit of money in the fund shall accrue to 34.9 the fund for the purposes of the fund. 34.10 (c) Reimbursement for costs related to collection of the 34.11 special assessment shall be in an amount negotiated between the 34.12 commissioner and the United States Department of Labor. 34.13 (d) If the board determines that the conditions of section 34.14 116L.05, subdivision 5, have been met, the board may use funds 34.15 for the purposes outlined in sections 116L.04, 116L.06, and 34.16 116L.10 to 116L.14, or to provide incumbent worker training 34.17 services under section 116L.18. 34.18 Sec. 28. Minnesota Statutes 2004, section 183.41, is 34.19 amended by adding a subdivision to read: 34.20 Subd. 4. [ANNUAL PERMIT.] The commissioner shall issue an 34.21 annual permit to a boat for the purpose of carrying passengers 34.22 for hire on the inland waters of the state provided the boat 34.23 satisfies the inspection requirements of this section. A boat 34.24 subject to inspection under this chapter shall be registered 34.25 with the Division of Boiler Inspection and shall be inspected 34.26 before a permit may be issued. 34.27 Sec. 29. Minnesota Statutes 2004, section 183.411, 34.28 subdivision 2a, is amended to read: 34.29 Subd. 2a. [INSPECTION FEES.] Thecommissioner may set fees34.30 fee for inspecting traction engines, show boilers, and show 34.31 engines shall be the hourly rate pursuant to section 34.3216A.1285183.545, subdivision 3a. 34.33 Sec. 30. Minnesota Statutes 2004, section 183.411, 34.34 subdivision 3, is amended to read: 34.35 Subd. 3. [LICENSES.] A license to operate steam farm 34.36 traction engines, portable and stationary show engines and 35.1 portable and stationary show boilers shall be issued to an 35.2 applicant who: 35.3(a)(1) is 18 years of age or older; 35.4(b)(2) has a licensed second class or higher class 35.5 engineer or steam traction (hobby) engineer sign the affidavit 35.6 attesting to the applicant's competence in operating said 35.7 devices; 35.8(c)(3) passes a written test for competence in operating 35.9 said devices; 35.10(d)(4) has at least 25 hours of actual operating 35.11 experience on said devices; and 35.12(e)(5) pays the required fee. 35.13 A license shall be valid for the lifetime of the licensee. 35.14 A onetime feeset by the commissionerpursuant to section 35.1516A.1285183.545, subdivision 4, shall be charged for the 35.16 license. 35.17 Sec. 31. Minnesota Statutes 2004, section 183.42, is 35.18 amended to read: 35.19 183.42 [INSPECTIONEACH YEARAND REGISTRATION.] 35.20 Subdivision 1. [INSPECTION.] Every owner, lessee, or other 35.21 person having charge of boilers,or pressure vessels, or any35.22boatsubject to inspection under this chapter shall cause them 35.23 to be inspected by the Division of Boiler Inspection. 35.24 Boilersand boatssubject to inspection under this chapter must 35.25 be inspected at least annually and pressure vessels inspected at 35.26 least every two years except as provided under section 35.27 183.45.A person who fails to have the inspection required by35.28this section shall pay to the commissioner a penalty in the35.29amount of the cost of inspection up to a maximum of $1,000.The 35.30 commissioner shall assess a $250 penalty per applicable boiler 35.31 or pressure vessel for failure to have the inspection required 35.32 by this section and may seal the boiler or pressure vessel for 35.33 refusal to allow an inspection as required by this section. 35.34 Subd. 2. [REGISTRATION.] Every owner, lessee, or other 35.35 person having charge of boilers or pressure vessels subject to 35.36 inspection under this chapter shall register said objects with 36.1 the Division of Boiler Inspection. The registration shall be 36.2 renewed annually and is applicable to each object separately. 36.3 The fee for registration of a boiler or pressure vessel shall be 36.4 pursuant to section 183.545, subdivision 10. The Division of 36.5 Boiler Inspection may issue a billing statement for each boiler 36.6 and pressure vessel on record with the division, and may 36.7 determine a monthly schedule of billings to be followed for 36.8 owners, lessees, or other persons having charge of a boiler or 36.9 pressure vessel subject to inspection under this chapter. 36.10 Subd. 3. [CERTIFICATE OF REGISTRATION.] The Division of 36.11 Boiler Inspection shall issue a certificate of registration that 36.12 lists the boilers and pressure vessels at the location, 36.13 expiration date of the certificate of registration, last 36.14 inspection date of each boiler and pressure vessel, and maximum 36.15 allowable working pressure for each boiler and pressure vessel. 36.16 The commissioner may make an electronic certificate of 36.17 registration available to be printed by the owner, lessee, or 36.18 other person having charge of the boiler or pressure vessel. 36.19 Sec. 32. Minnesota Statutes 2004, section 183.44, 36.20 subdivision 1, is amended to read: 36.21 Subdivision 1. [MASTERSAND PILOTS.] TheDivision of36.22Boiler Inspectioncommissioner or the commissioner's designee 36.23 shall examine all mastersand pilotsof boats and vessels 36.24 carrying passengers for hire on the inland waters of the state 36.25 as to their qualifications and fitness. If foundtrustworthy36.26 qualified and competent to perform their duties as a masteror36.27pilotof a boat carrying passengers for hire, they shall be 36.28givenissued acertificatelicense authorizing them to act as 36.29 such on the inland waters of the state. The license shall be 36.30 renewed annually. Fees for the original issue and renewal of 36.31 the license authorized under this section shall be pursuant to 36.32 section 183.545, subdivision 2. 36.33 Sec. 33. Minnesota Statutes 2004, section 183.51, 36.34 subdivision 2, is amended to read: 36.35 Subd. 2. [APPLICATIONS.] Any person who desires an 36.36 engineer's license shallmakesubmit a written application, on 37.1 blanks furnished by theinspector. The person shall also37.2successfully pass a written examination for such grade of37.3license applied forcommissioner or designee, at least 15 days 37.4 before the requested exam date. The application is valid for 37.5 one year from the date the commissioner or designee received the 37.6 application. 37.7 Sec. 34. Minnesota Statutes 2004, section 183.51, is 37.8 amended by adding a subdivision to read: 37.9 Subd. 2a. [EXAMINATIONS.] Each applicant for a license 37.10 must pass an examination approved by the commissioner. The 37.11 examinations shall be of sufficient scope to establish the 37.12 competency of the applicant to operate a boiler of the 37.13 applicable license class and grade. 37.14 Sec. 35. Minnesota Statutes 2004, section 183.545, is 37.15 amended to read: 37.16 183.545 [FEES FOR INSPECTION.] 37.17 Subdivision 1. [FEE AMOUNT; VESSELS OPERATED ON INLAND 37.18 WATERS.] The fees for the inspection of the hull, boiler, 37.19 machinery, and equipments of vesselsare to be set by the37.20commissioner pursuant to section 16A.1285, for vessels of 5037.21tons burden or over and vessels of less than 50 tons37.22burden.operated on inland waters and that carry passengers for 37.23 hire are as follows: 37.24 (1) annual operating permit and safety inspections shall be 37.25 $200; and 37.26 (2) other inspections, including dry-dock inspections, boat 37.27 stability tests, and plan reviews, are billed at the hourly rate 37.28 set in subdivision 3a. 37.29 Subd. 2. [FEE AMOUNTS; MASTERSAND PILOTS.] The 37.30commissioner shall, pursuant to section 16A.1285, set37.31thelicense and application fee foran examination of an37.32applicant fora master'sor pilot'slicense is $50,for anor 37.33 $20 if the applicant possesses a valid, unlimited, current 37.34 United States Coast Guard master's license. The annual renewal 37.35 of a master'sor a pilot'slicense, and for anis $20. The 37.36 annual renewal if paid later thanten30 days after 38.1 expiration is $35. The fee for replacement of a current, valid 38.2 license is $20. 38.3 Subd. 3. [BOILER AND PRESSURE VESSEL INSPECTION FEES.] The 38.4 fees for the annual inspection of boilers and biennial 38.5 inspection of pressure vessels areto be set by the commissioner38.6pursuant to section 16A.1285, foras follows: 38.7(a)(1) boiler inaccessible for internal inspection, $55; 38.8(b)(2) boiler accessible for internal inspection, $55; 38.9(c)(3) boiler internal inspection over 2,000 square feet 38.10 heating surface shall be billed at the hourly rate set in 38.11 subdivision 3a; 38.12(d) boiler internal inspection over 4,000 square feet38.13heating surface;38.14(e) boiler internal inspection over 10,000 square feet38.15heating surface;38.16(f)(4) boiler accessible for internal inspection requiring 38.17 one-half day or more of inspection time shall be billed at the 38.18established shop inspection feehourly rate set in subdivision 38.19 3a; 38.20(g)(5) pressure vessel for internal inspection via 38.21 manhole, $35; and 38.22(h)(6) pressure vessel inaccessible for internal 38.23 inspection, $35. 38.24An additional fee based on the scale of fees applicable to38.25an inspection shall be charged when it is necessary to make a38.26special trip for a hydrostatic test of a boiler or pressure38.27vessel.38.28 Subd. 3a. [HOURLY RATE.] Thecommissioner shall, pursuant38.29to section 16A.1285, set shop inspection feeshourly rate for an 38.30 inspection not set elsewhere in this chapter is $80 per hour. 38.31 Inspection time includes all time related to theshop38.32 inspection. Travel time, billed at the hourly rate, and travel 38.33 expenses shall be billed for shop inspections, triennial audits, 38.34 boat stability tests, hydrostatic tests of a boiler or pressure 38.35 vessel, or any other inspection or consultation requiring a 38.36 special trip. 39.1 Subd. 4. [APPLICANTSBOILER ENGINEER LICENSE FEES.]The39.2commissioner shall, pursuant to section 16A.1285, set the fee39.3for an examination of an applicantFor the following licenses, 39.4 the nonrefundable license and application fee is: 39.5(a)(1) chief engineer's license, $50; 39.6(b)(2) first class engineer's license, $50; 39.7(c)(3) second class engineer's license, $50; 39.8(d)(4) special engineer's license, $20; and 39.9(e)(5) traction or hobby boiler engineer's license; and, 39.10 $50. 39.11(f) pilot's license.39.12If an applicant, after an examination, is entitled to39.13receive a license, it shall be issued without the payment of any39.14additional charge. Any license so issued expires one year after39.15the date of its issuance.An engineer's license may be renewed 39.16 upon applicationthereforandthepayment of an annual renewal 39.17 feeas set by the commissioner pursuant to section 16A.1285of 39.18 $20. The annual renewal, if paid later than 30 days after 39.19 expiration, is $35. The fee for replacement of a current, valid 39.20 license is $20. 39.21 Subd. 6. [NATIONAL BOARD INSPECTORS.] The fee for an 39.22 examination of an applicant for a National Board of Boiler and 39.23 Pressure Vessels Inspectors commissionshall be set by the39.24commissioner pursuant to section 16A.1285is $100. 39.25 Subd. 7. [NUCLEAR ENDORSEMENT.] The fee for each 39.26 examination of an applicant for a National Board of Boiler and 39.27 Pressure Vessels commissioned inspectors nuclear endorsement 39.28shall be set by the commissioner pursuant to section 16A.1285is 39.29 $100. 39.30 Subd. 8. [CERTIFICATE OF COMPETENCY.] The fee for issuance 39.31 of the original state of Minnesota certificate of competency for 39.32 inspectorsshall be set by the commissioner pursuant to section39.3316A.1285is $50. This fee is waived for inspectors who paid the 39.34 examination fee. The fee for an annual renewal of the state of 39.35 Minnesota certificate of competencyshall be set by the39.36commissioner pursuant to section 16A.1285is $35, and is due 40.1 January 1 of each year. The fee for replacement of a current, 40.2 valid license is $35. 40.3 Subd. 9. [DEPOSIT OF FEES.] Fees received under this 40.4 sectionand section 183.57must be deposited in the state 40.5 treasury and credited to the general fund. 40.6 Subd. 10. [BOILER AND PRESSURE VESSEL REGISTRATION 40.7 FEE.] The annual registration fee for boilers and pressure 40.8 vessels in use and required to be inspected per section 183.42 40.9 shall be $10 per boiler and pressure vessel. 40.10 Sec. 36. Minnesota Statutes 2004, section 183.57, is 40.11 amended to read: 40.12 183.57 [REPORT OF INSURER; EXEMPTION FROM INSPECTION.] 40.13 Subdivision 1. [REPORT REQUIRED.] Any insurance company 40.14 insuring boilers and pressure vessels in this state shallmake a40.15writtenfile a reportthereofshowing the date of inspection, 40.16 the name of the person making the inspection, the condition of 40.17 the boiler or pressure vessel as disclosed by the inspection, 40.18 whether thesame isboiler was operated by a properly licensed 40.19 engineer,andwhether a policy of insurance has been issued by 40.20 the company with reference to the boiler or pressure vessel, and 40.21 other information as directed by the chief boiler inspector. 40.22 Within1521 days after the inspection, the insurance company 40.23 shallmail a copy offile the reporttowith the chief boiler 40.24 inspectorandor designee. The insurer shall provide a copy of 40.25 the report to the person, firm, or corporation owning or 40.26 operating the inspected boiler or pressure vesselinspected. 40.27 Such report shall be made annually for boilers and biennially 40.28 for pressure vessels. 40.29 Subd. 2. [EXEMPTION.] Every boiler or pressure vessel as 40.30 to which any insurance company authorized to do business in this 40.31 state has issued a policy of insurance, after the inspection 40.32 thereof, is exempt from inspection by the department made under 40.33 sections 183.375 to 183.62, while the same continues to be 40.34 insured and provided it continues to be inspected in accordance 40.35 with the inspection schedule set forth in sections 183.42 and 40.36 183.45, and the person, firm, or corporation owning or operating 41.1 the same has an unexpired certificate ofexemption from41.2inspection, issued by the chief boiler41.3inspectorregistration.The fee set by the commissioner41.4pursuant to section 16A.1285, on the first object inspected and41.5on each object thereafter shall apply to each exempt object. A41.6certificate of exemption expires one year from date of issue.41.7The certificate of exemption shall be posted in a conspicuous41.8place near the boiler or pressure vessel or in the plant office41.9or boiler room described therein and to which it relates. Every41.10insurance company shall give written notice to the chief boiler41.11inspector of the cancellation or expiration of every policy of41.12insurance issued by it with reference to policies in this state,41.13and the cause or reason for the cancellation or expiration.41.14These notices of cancellation or expiration shall show the date41.15of the policy and the date when the cancellation has or will41.16become effective.41.17Subd. 4. [CERTIFICATE OF EXEMPTION.] The Division of41.18Boiler Inspection may issue a billing and exemption certificate41.19for each boiler and pressure vessel which the division records41.20indicate shall be or has been inspected by an insurance company41.21which is providing coverage for the boilers and pressure41.22vessels. The division may determine the monthly schedule of the41.23billings to be followed for each business insured.41.24 Subd. 5. [NOTICE OF INSURANCE COVERAGE.] The insurer shall 41.25 notify the commissioner or designee in writing of its policy to 41.26 insure and inspect boilers and pressure vessels at a location 41.27 within 30 days of the effective date of insurance coverage, 41.28 including binders. The insurer must also provide a duplicate of 41.29 the notification to the insured. 41.30 Subd. 6. [NOTICE OF DISCONTINUED COVERAGE.] The insurer 41.31 shall notify the commissioner or designee in writing, within 30 41.32 days of the effective date, of the discontinuation of insurance 41.33 coverage of the boilers and pressure vessels at a location and 41.34 the cause or reason for the discontinuation. This notice shall 41.35 show the effective date when the discontinued policy takes 41.36 effect. 42.1 Subd. 7. [PENALTIES.] The commissioner shall assess upon 42.2 the insurer a $50 penalty, per applicable boiler and pressure 42.3 vessel, for failing to submit an inspection report or notify the 42.4 commissioner of insurance coverage or discontinuation of 42.5 insurance coverage as set forth in this section. The 42.6 commissioner shall assess upon the insurer a penalty of $100, 42.7 per applicable boiler and pressure vessel, for failing to 42.8 conduct the required in-service inspection within 120 days after 42.9 the inspection was due in accordance with section 183.42. 42.10 Sec. 37. Minnesota Statutes 2004, section 216C.41, 42.11 subdivision 2, is amended to read: 42.12 Subd. 2. [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 42.13 payments must be made according to this section to (1) a 42.14 qualified on-farm biogas recovery facility, (2) the owner or 42.15 operator of a qualified hydropower facility or qualified wind 42.16 energy conversion facility for electric energy generated and 42.17 sold by the facility, (3) a publicly owned hydropower facility 42.18 for electric energy that is generated by the facility and used 42.19 by the owner of the facility outside the facility, or (4) the 42.20 owner of a publicly owned dam that is in need of substantial 42.21 repair, for electric energy that is generated by a hydropower 42.22 facility at the dam and the annual incentive payments will be 42.23 used to fund the structural repairs and replacement of 42.24 structural components of the dam, or to retire debt incurred to 42.25 fund those repairs. 42.26 (b) Payment may only be made upon receipt by the 42.27 commissioner offinancecommerce of an incentive payment 42.28 application that establishes that the applicant is eligible to 42.29 receive an incentive payment and that satisfies other 42.30 requirements the commissioner deems necessary. The application 42.31 must be in a form and submitted at a time the commissioner 42.32 establishes. 42.33 (c) There is annually appropriated from thegeneral fund42.34 renewable development account under section 116C.779 to the 42.35 commissioner of commerce sums sufficient to make the payments 42.36 required under this section,other thanin addition to the 43.1 amounts funded by the renewable development account as specified 43.2 in subdivision 5a. 43.3 Sec. 38. Minnesota Statutes 2004, section 216C.41, 43.4 subdivision 5, is amended to read: 43.5 Subd. 5. [AMOUNT OF PAYMENT; WIND FACILITIES LIMIT.] (a) 43.6 An incentive payment is based on the number of kilowatt hours of 43.7 electricity generated. The amount of the payment is: 43.8 (1) for a facility described under subdivision 2, paragraph 43.9 (a), clause (4), 1.0 cent per kilowatt hour; and 43.10 (2) for all other facilities, 1.5 cents per kilowatt hour. 43.11 For electricity generated by qualified wind energy conversion 43.12 facilities, the incentive payment under this section is limited 43.13 to no more than100200 megawatts of nameplate capacity. 43.14 (b) For wind energy conversion systems installed and 43.15 contracted for after January 1, 2002, the total size of a wind 43.16 energy conversion system under this section must be determined 43.17 according to this paragraph. Unless the systems are 43.18 interconnected with different distribution systems, the 43.19 nameplate capacity of one wind energy conversion system must be 43.20 combined with the nameplate capacity of any other wind energy 43.21 conversion system that is: 43.22 (1) located within five miles of the wind energy conversion 43.23 system; 43.24 (2) constructed within the same calendar year as the wind 43.25 energy conversion system; and 43.26 (3) under common ownership. 43.27 In the case of a dispute, the commissioner of commerce shall 43.28 determine the total size of the system, and shall draw all 43.29 reasonable inferences in favor of combining the systems. 43.30 (c) In making a determination under paragraph (b), the 43.31 commissioner of commerce may determine that two wind energy 43.32 conversion systems are under common ownership when the 43.33 underlying ownership structure contains similar persons or 43.34 entities, even if the ownership shares differ between the two 43.35 systems. Wind energy conversion systems are not under common 43.36 ownership solely because the same person or entity provided 44.1 equity financing for the systems. 44.2 Sec. 39. Minnesota Statutes 2004, section 216C.41, 44.3 subdivision 5a, is amended to read: 44.4 Subd. 5a. [RENEWABLE DEVELOPMENT ACCOUNT.] The Department 44.5 of Commerce shall authorize payment of the renewable energy 44.6 production incentive to wind energy conversion systems for10044.7 200 megawatts of nameplate capacityin addition to the capacity44.8authorized under subdivision 5and to on-farm biogas recovery 44.9 facilities. Payment of the incentive shall be made from the 44.10 renewable energy development account as provided under section 44.11 116C.779, subdivision 2. 44.12 Sec. 40. Minnesota Statutes 2004, section 237.11, is 44.13 amended to read: 44.14 237.11 [INSPECTING RECORDS AND PROPERTY; REPORTS REQUIRED.] 44.15 Every telephone company subject to the provisions of this 44.16 chapter, wherever organized, shall keep an office in this state, 44.17 and make such reports to the department as it shall from time to 44.18 time require. All books, records, and files, whether they 44.19 relate to competitive or noncompetitive services, and all of its 44.20 property shall be at all times subject to inspection by the 44.21 commission and the department. It shall close its accounts and 44.22 take therefrom a balance sheet on December 31 of each year, and 44.23 on or before May 1 following, such balance sheet, together with 44.24 such other information as the department shall require, verified 44.25 by an officer of the telephone company, shall be filed with the 44.26 commission and the department, except that a local exchange 44.27 carrier or a competitive local exchange carrier, as defined in 44.28 Minnesota Rules, chapter 7811, is only required to file an 44.29 annual report that includes the company's name, contact person, 44.30 annual revenue, and status of its 911 update plan. 44.31 In the event that any telephone company shall fail to file 44.32 its annual report, as provided by this section, the department 44.33 is authorized to make such an examination of the books, records, 44.34 and vouchers of the company as is necessary to procure the 44.35 necessary data for the annual report and cause the same to be 44.36 prepared. The expense of procuring this data and preparing this 45.1 report shall be paid by the telephone company failing to report, 45.2 and the amount paid shall be credited by the commissioner of 45.3 finance to funds appropriated for the expense of the department. 45.4 The department is authorized to force collection of such 45.5 sum by an action at law in the name of the department. 45.6 Sec. 41. Minnesota Statutes 2004, section 237.295, 45.7 subdivision 1, is amended to read: 45.8 Subdivision 1. [PAYMENT FOR INVESTIGATIONFILING FEE FOR 45.9 NEW AUTHORITY.](a) Whenever the department or commission, in a45.10proceeding upon its own motion, on complaint, or upon an45.11application to it, considers it necessary, in order to carry out45.12the duties imposed on it, to investigate the books, accounts,45.13practices, and activities of any company, parties to the45.14proceeding shall pay the expenses reasonably attributable to the45.15proceeding. The department and commission shall ascertain the45.16expenses, and the department shall render a bill for those45.17expenses to the parties, at the conclusion of the proceeding.45.18The department is authorized to submit billings to parties at45.19intervals selected by the department during the course of a45.20proceeding.45.21(b) The allocation of costs may be adjusted for cause by45.22the commission during the course of the proceeding, or upon the45.23closing of the docket and issuance of an order. In addition to45.24the rights granted in subdivision 3, parties to a proceeding may45.25object to the allocation at any time during the proceeding.45.26Withdrawal by a party to a proceeding does not absolve the party45.27from paying allocated costs as determined by the commission.45.28The commission may decide that a party should not pay any45.29allocated costs of the proceeding.45.30(c) The bill constitutes notice of the assessment and a45.31demand for payment. The amount of the bills assessed by the45.32department under this subdivision must be paid by the parties45.33into the state treasury within 30 days from the date of45.34assessment. The total amount, in a calendar year, for which a45.35telephone company may become liable, by reason of costs incurred45.36by the department and commission within that calendar year, may46.1not exceed two-fifths of one percent of the gross jurisdictional46.2operating revenue of the telephone company in the last preceding46.3calendar year. Direct charges may be assessed without regard to46.4this limitation until the gross jurisdictional operating revenue46.5of the telephone company for the preceding calendar year has46.6been reported for the first time. Where, under this46.7subdivision, costs are incurred within a calendar year that are46.8in excess of two-fifths of one percent of the gross46.9jurisdictional operating revenues, the excess costs are not46.10chargeable as part of the remainder under subdivision 2.46.11(d) Except as otherwise provided in paragraph (e), for46.12purposes of assessing the cost of a proceeding to a party,46.13"party" means any entity or group subject to the laws and rules46.14of this state, however organized, whether public or private,46.15whether domestic or foreign, whether for profit or nonprofit,46.16and whether natural, corporate, or political, such as a business46.17or commercial enterprise organized as any type or combination of46.18corporation, limited liability company, partnership, limited46.19liability partnership, proprietorship, association, cooperative,46.20joint venture, carrier, or utility, and any successor or46.21assignee of any of them; a social or charitable organization;46.22and any type or combination of political subdivision, which46.23includes the executive, judicial, or legislative branch of the46.24state, a local government unit, an agency of the state or a46.25local government unit, or a combination of any of them.46.26 (e) For assessment and billing purposes, "party" does not46.27include the Department of Commerce or the Residential Utilities46.28Division of the Office of Attorney General; any entity or group46.29instituted primarily for the purpose of mutual help and not46.30conducted for profit; intervenors awarded compensation under46.31section 237.075, subdivision 10; or any individual or group or46.32counsel for the individual or group representing the interests46.33of end users or classes of end users of services provided by46.34telephone companies or telecommunications carriers, as46.35determined by the commission.An application for a new 46.36 authority must be accompanied by a payment not to exceed $2,000 47.1 as determined by the Public Utilities Commission. This fee will 47.2 be reviewed annually and adjusted accordingly. 47.3 [EFFECTIVE DATE.] This section is effective the day 47.4 following final enactment. 47.5 Sec. 42. Minnesota Statutes 2004, section 237.295, 47.6 subdivision 2, is amended to read: 47.7 Subd. 2. [ASSESSMENT OF COSTS.] The department and 47.8 commission shall quarterly, at least 30 days before the start of 47.9 each quarter, estimate the total of their expenditures in the 47.10 performance of their duties relating to telephone companies, 47.11 other than amounts chargeable to telephone companies under 47.12 subdivision 1, 5, or 6. The remainder must be assessed by the 47.13 department to the telephone companies operating in this state in 47.14 proportion to their respective gross jurisdictional operating 47.15 revenues during the last calendar year. The assessment must be 47.16 paid into the state treasury within 30 days after the bill has 47.17 been mailed to the telephone companies. The bill constitutes 47.18 notice of the assessment and demand of payment. The total 47.19 amount that may be assessed to the telephone companies under 47.20 this subdivision may not exceedone-eighththree-eighths of one 47.21 percent of the total gross jurisdictional operating revenues 47.22 during the calendar year. The assessment for the third quarter 47.23 of each fiscal year must be adjusted to compensate for the 47.24 amount by which actual expenditures by the commission and 47.25 department for the preceding fiscal year were more or less than 47.26 the estimated expenditures previously assessed. A telephone 47.27 company with gross jurisdictional operating revenues of less 47.28 than $5,000 is exempt from assessments under this subdivision. 47.29 [EFFECTIVE DATE.] This section is effective the day 47.30 following final enactment. 47.31 Sec. 43. [237.491] [COMBINED PER NUMBER FEE.] 47.32 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 47.33 subdivision apply to this section. 47.34 (b) "911 emergency and public safety communications program" 47.35 means the program governed by chapter 403. 47.36 (c) "Minnesota telephone number" means a ten-digit 48.1 telephone number being used to connect to the public switched 48.2 telephone network and starting with area code 218, 320, 507, 48.3 612, 651, 763, or 952, or any subsequent area code assigned to 48.4 this state. 48.5 (d) "Service provider" means a provider doing business in 48.6 this state who provides real time, two-way voice service with a 48.7 Minnesota telephone number. 48.8 (e) "Telecommunications access Minnesota program" means the 48.9 program governed by sections 237.50 to 237.55. 48.10 (f) "Telephone assistance program" means the program 48.11 governed by sections 237.69 to 237.711. 48.12 Subd. 2. [PER NUMBER FEE.] (a) By January 15, 2006, the 48.13 commissioner of commerce shall report to the legislature and to 48.14 the senate Committee on Jobs, Energy, and Community Development 48.15 and the house Committee on Regulated Industries, recommendations 48.16 for the amount of and method for assessing a fee that would 48.17 apply to each service provider based upon the number of 48.18 Minnesota telephone numbers in use by current customers of the 48.19 service provider. The fee would be set at a level calculated to 48.20 generate only the amount of revenue necessary to fund: 48.21 (1) the telephone assistance program and the 48.22 telecommunications access Minnesota program at the levels 48.23 established by the commission under sections 237.52, subdivision 48.24 2, and 237.70; and 48.25 (2) the 911 emergency and public safety communications 48.26 program at the levels appropriated by law to the commissioner of 48.27 public safety and the commissioner of finance for purposes of 48.28 sections 403.11, 403.113, 403.27, 403.30, and 403.31 for each 48.29 fiscal year. 48.30 (b) The recommendations must include any changes to 48.31 Minnesota Statutes necessary to establish the procedures whereby 48.32 each service provider, to the extent allowed under federal law, 48.33 would collect and remit the fee proceeds to the commissioner of 48.34 revenue. The commissioner of revenue would allocate the fee 48.35 proceeds to the three funding areas in paragraph (a) and credit 48.36 the allocations to the appropriate accounts. 49.1 (c) The recommendations must be designed to allow the 49.2 combined per telephone number fee to be collected beginning July 49.3 1, 2006. The per access line fee used to collect revenues to 49.4 support the TAP, TAM, and 911 programs remains in effect until 49.5 the statutory changes necessary to implement the per telephone 49.6 number fee have been enacted into law. 49.7 (d) As part of the process of developing the 49.8 recommendations and preparing the report to the legislature 49.9 required under paragraph (a), the commissioner of commerce must, 49.10 at a minimum, consult regularly with the Departments of Public 49.11 Safety, Finance, and Administration, the Public Utilities 49.12 Commission, service providers, the chairs and ranking minority 49.13 members of the senate and house committees, subcommittees, and 49.14 divisions having jurisdiction over telecommunications and public 49.15 safety, and other affected parties. 49.16 [EFFECTIVE DATE.] This section is effective the day 49.17 following final enactment. 49.18 Sec. 44. Minnesota Statutes 2004, section 239.011, 49.19 subdivision 2, is amended to read: 49.20 Subd. 2. [DUTIES AND POWERS.] To carry out the 49.21 responsibilities in section 239.01 and subdivision 1, the 49.22 director: 49.23 (1) shall take charge of, keep, and maintain in good order 49.24 the standard of weights and measures of the state and keep a 49.25 seal so formed as to impress, when appropriate, the letters 49.26 "MINN" and the date of sealing upon the weights and measures 49.27 that are sealed; 49.28 (2) has general supervision of the weights, measures, and 49.29 weighing and measuring devices offered for sale, sold, or in use 49.30 in the state; 49.31 (3) shall maintain traceability of the state standards to 49.32 the national standards of the National Institute of Standards 49.33 and Technology; 49.34 (4) shall enforce this chapter; 49.35 (5) shall grant variances from department rules, within the 49.36 limits set by rule, when appropriate to maintain good commercial 50.1 practices or when enforcement of the rules would cause undue 50.2 hardship; 50.3 (6) shall conduct investigations to ensure compliance with 50.4 this chapter; 50.5 (7) may delegate to division personnel the 50.6 responsibilities, duties, and powers contained in this section; 50.7 (8) shall test annually, and approve when found to be 50.8 correct, the standards of weights and measures used by the 50.9 division, by a town, statutory or home rule charter city, or 50.10 county within the state, or by a person using standards to 50.11 repair, adjust, or calibrate commercial weights and measures; 50.12 (9) shall inspect and test weights and measures kept, 50.13 offered, or exposed for sale; 50.14 (10) shall inspect and test, to ascertain if they are 50.15 correct, weights and measures commercially used to: 50.16 (i) determine the weight, measure, or count of commodities 50.17 or things sold, offered, or exposed for sale, on the basis of 50.18 weight, measure, or count; and 50.19 (ii) compute the basic charge or payment for services 50.20 rendered on the basis of weight, measure, or count; 50.21 (11) shall approve for use and mark weights and measures 50.22 that are found to be correct; 50.23 (12) shall reject, and mark as rejected, weights and 50.24 measures that are found to be incorrect and may seize them if 50.25 those weights and measures: 50.26 (i) are not corrected within the time specified by the 50.27 director; 50.28 (ii) are used or disposed of in a manner not specifically 50.29 authorized by the director; or 50.30 (iii) are found to be both incorrect and not capable of 50.31 being made correct, in which case the director shall condemn 50.32 those weights and measures; 50.33 (13) shall weigh, measure, or inspect packaged commodities 50.34 kept, offered, or exposed for sale, sold, or in the process of 50.35 delivery, to determine whether they contain the amount 50.36 represented and whether they are kept, offered, or exposed for 51.1 sale in accordance with this chapter and department rules. In 51.2 carrying out this section, the director must employ recognized 51.3 sampling procedures, such as those contained in National 51.4 Institute of Standards and Technology Handbook 133, "Checking 51.5 the Net Contents of Packaged Goods"; 51.6 (14) shall prescribe the appropriate term or unit of weight 51.7 or measure to be used for a specific commodity when an existing 51.8 term or declaration of quantity does not facilitate value 51.9 comparisons by consumers, or creates an opportunity for consumer 51.10 confusion; 51.11 (15) shall allow reasonable variations from the stated 51.12 quantity of contents, including variations caused by loss or 51.13 gain of moisture during the course of good distribution practice 51.14 or by unavoidable deviations in good manufacturing practice, 51.15 only after the commodity has entered commerce within the state; 51.16 (16) shall inspect and test petroleum products in 51.17 accordance with this chapter and chapter 296A; 51.18 (17) shall distribute and post notices for used motor oil 51.19 and used motor oil filters and lead acid battery recycling in 51.20 accordance with sections 239.54, 325E.11, and 325E.115; 51.21 (18) shall collect inspection fees in accordance with 51.22 sections 239.10 and 239.101; and 51.23 (19) shall provide metrological services and support to 51.24 businesses and individuals in the United States who wish to 51.25 market products and services in the member nations of the 51.26 European Economic Community, and other nations outside of the 51.27 United States by: 51.28 (i) meeting, to the extent practicable, the measurement 51.29 quality assurance standards described in the International 51.30 Standards Organization ISO9000, Guide 2517025; 51.31 (ii) maintaining, to the extent practicable, certification 51.32 of the metrology laboratory bya governing body appointed by the51.33European Economic Communityan internationally accepted 51.34 accrediting body such as the National Voluntary Laboratory 51.35 Accreditation Program (NVLAP); and 51.36 (iii) providing calibration and consultation services to 52.1 metrology laboratories in government and private industry in the 52.2 United States. 52.3 Sec. 45. Minnesota Statutes 2004, section 239.05, is 52.4 amended by adding a subdivision to read: 52.5 Subd. 3a. [AUTOMOTIVE FUEL.] For the purpose of enforcing 52.6 the gasoline octane requirements in section 239.792, "automotive 52.7 fuel" has the meaning given it in Code of Federal Regulations, 52.8 title 16, section 306.0. 52.9 Sec. 46. Minnesota Statutes 2004, section 239.05, 52.10 subdivision 10b, is amended to read: 52.11 Subd. 10b. [OXYGENATEETHANOL BLENDER.] "OxygenateEthanol 52.12 blender" means a person whohas registered with the division to52.13blend and distribute, transport, sell, or offerblends and 52.14 distributes, transports, sells, or offers to sell gasoline 52.15 containinga minimum of 2.0 percent, and an average of 2.7ten 52.16 percentoxygenethanol byweightvolume. 52.17 Sec. 47. Minnesota Statutes 2004, section 239.09, is 52.18 amended to read: 52.19 239.09 [SPECIAL POLICE POWERS.] 52.20 When necessary to enforce this chapter or rules adopted 52.21 under the authority granted by section 239.06, the director is: 52.22 (1) authorized and empowered to arrest, without formal 52.23 warrant, any violator of sections 325E.11 and 325E.115 or of the 52.24 statute in relation to weights and measures; 52.25 (2) empowered to seize for use as evidence and without 52.26 formal warrant, any false weight, measure, weighing or measuring 52.27 device, package, or commodity found to be used, retained, or 52.28 offered or exposed for sale or sold in violation of law; 52.29 (3) during normal business hours, authorized to enter 52.30 commercial premises; 52.31 (4) if the premises are not open to the public, authorized 52.32 to enter commercial premises only after presenting credentials 52.33 and obtaining consent or after obtaining a search warrant; 52.34 (5) empowered to issue stop-use, hold, and removal orders 52.35 with respect to weights and measures commercially used, and 52.36 packaged commodities or bulk commodities kept, offered, or 53.1 exposed for sale, that do not comply with the weights and 53.2 measures laws;and53.3 (6) empowered, upon reasonable suspicion of a violation of 53.4 the weights and measures laws, to stop a commercial vehicle and, 53.5 after presentation of credentials, inspect the contents of the 53.6 vehicle, require that the person in charge of the vehicle 53.7 produce documents concerning the contents, and require the 53.8 person to proceed with the vehicle to some specified place for 53.9 inspection; and 53.10 (7) empowered, after written warning, to issue citations of 53.11 not less than $100 and not more than $500 to a person who 53.12 violates any provision of this chapter, any provision of the 53.13 rules adopted under the authority contained in this chapter, or 53.14 any provision of statutes enforced by the Division of Weights 53.15 and Measures. 53.16 Sec. 48. Minnesota Statutes 2004, section 239.101, 53.17 subdivision 3, is amended to read: 53.18 Subd. 3. [PETROLEUM INSPECTION FEE.] (a) An inspection fee 53.19 is imposed (1) on petroleum products when received by the first 53.20 licensed distributor, and (2) on petroleum products received and 53.21 held for sale or use by any person when the petroleum products 53.22 have not previously been received by a licensed distributor. 53.23 The petroleum inspection fee is $1 for every 1,000 gallons 53.24 received. The commissioner of revenue shall collect the fee. 53.25 The revenue from 81 cents of the feemust first be applied to53.26cover the amounts appropriated. Fifteen cents of the inspection53.27fee must be deposited in an account in the special revenue fund53.28andis appropriated to the commissioner of commerce for the cost 53.29 ofpetroleum product quality inspection expenses and for the53.30inspection and testing of petroleum product-measuring53.31equipmentoperations of the Division of Weights and Measures, 53.32 petroleum supply monitoring, and the oil burner retrofit 53.33 program. The remainder of the fee must be deposited in the 53.34 general fund. 53.35 (b) The commissioner of revenue shall credit a person for 53.36 inspection fees previously paid in error or for any material 54.1 exported or sold for export from the state upon filing of a 54.2 report as prescribed by the commissioner of revenue. 54.3 (c) The commissioner of revenue may collect the inspection 54.4 fee along with any taxes due under chapter 296A. 54.5 Sec. 49. Minnesota Statutes 2004, section 239.75, 54.6 subdivision 1, is amended to read: 54.7 Subdivision 1. [INSPECTION TO BE MADE.] The director shall: 54.8 (1) take samples, free of charge, of petroleum products 54.9 wherever processed, blended, held, stored, imported, 54.10 transferred, offered for sale or use, or sold in Minnesota, 54.11 limiting each sample to:54.12(i) two-tenths of oneone-half gallon, except when an54.13octane test is planned; or54.14(ii) seven-tenths of one gallon for an octane test; 54.15 (2) inspect and test petroleum product samples according to 54.16 the methods of ASTM or other valid test methods adopted by rule, 54.17 to determine whether the products comply with the specifications 54.18 in section 239.761; 54.19 (3) inspect petroleum product storage tanks to ensure that 54.20 the products are free from water and impurities; 54.21 (4) inspect and test samples submitted to the department by 54.22 a licensed distributor, making the test results available to the 54.23 distributor; 54.24 (5) inspect the labeling, price posting, and price 54.25 advertising of petroleum product dispensers and advertising 54.26 signs at businesses or locations where petroleum products are 54.27 sold, offered for sale or use, or dispensed into motor vehicles; 54.28 (6) maintain records of all inspections and tests according 54.29 to the records retention policies of the Department of 54.30 Administration; 54.31 (7) delegate to division personnel, at the director's 54.32 discretion, any or all of the responsibilities, duties, and 54.33 powers in sections 239.75 to 239.80; 54.34 (8) publishoctanetest data and information to assist 54.35 persons who use, produceand, distribute, or sellgasoline and54.36gasoline-oxygenate blendspetroleum-based heating and engine 55.1 fuels; 55.2 (9)register gasoline-oxygenate blenders according to the55.3requirements of the EPA;55.4(10)audit the records of any person responsible for the 55.5 product to determine compliance with sections 239.75 to 239.792; 55.6(11)(10) after consulting with the commissionerof the55.7Pollution Control Agency, grant a temporary exemption from the 55.8oxygenated gasolinegasoline-ethanol blending requirements in 55.9 section 239.791 if the supply ofoxygenateethanol is 55.10 insufficient to producegasoline-oxygenategasoline-ethanol 55.11 blendsduring an EPA-designated carbon monoxide control period; 55.12 and 55.13(12)(11) adopt, as an enforcement policy for the division, 55.14 reasonable margins of uncertainty for the tests used to 55.15 determine compliance with the specifications in section 239.761, 55.16 the oxygen percentages in section 239.791, and the octane 55.17 requirements in section 239.792 and apply the margins of 55.18 uncertainty to only tests performed by the division, not by 55.19 adding the margins to uncertainties in tests performed by any 55.20 person responsible for the product. 55.21 Sec. 50. Minnesota Statutes 2004, section 239.75, 55.22 subdivision 5, is amended to read: 55.23 Subd. 5. [PRODUCT QUALITY, RESPONSIBILITY.] After a 55.24gasoline productpetroleum-based engine fuel is purchased, 55.25 transferred, or otherwise removed from a refinery or terminal, 55.26 the person responsible for the product shall: 55.27 (1) keep the product free from contamination with water and 55.28 impurities; 55.29 (2) not blend the product with dissimilar petroleum 55.30 products, for example, gasoline must not be blended with diesel 55.31 fuel; 55.32 (3) not blend the product with any contaminant, dye, 55.33 chemical, or additive, except: 55.34 (i) agriculturally derived, denatured ethanol that complies 55.35 with the specifications in this chapter; 55.36 (ii) an antiknock additive, or an additive designed to 56.1 replace tetra-ethyl lead, that is registered by the EPA;or56.2 (iii) a dye to distinguish heating fuel from low sulfur 56.3 diesel fuel; or 56.4 (iv) biodiesel fuel that complies with the specifications 56.5 in this chapter;and 56.6 (4) maintain a record of the name or chemical composition 56.7 of the additive, with the product shipping manifest or bill of 56.8 lading for one year after the date of the manifest or bill. 56.9 Sec. 51. Minnesota Statutes 2004, section 239.761, is 56.10 amended to read: 56.11 239.761 [PETROLEUM PRODUCT SPECIFICATIONS.] 56.12 Subdivision 1. [APPLICABILITY.] A person responsible for 56.13 the product must meet the specifications in this section. The 56.14 specifications apply to petroleum products processed, held, 56.15 stored, imported, transferred, distributed, offered for 56.16 distribution, offered for sale or use, or sold in Minnesota. 56.17 Subd. 2. [COORDINATION WITH DEPARTMENTS OF REVENUE AND 56.18 AGRICULTURE.] The petroleum product specifications in this 56.19 section are intended to match the definitions and specifications 56.20 in sections 41A.09 and 296A.01. Petroleum products named in 56.21 this section are defined in section 296A.01. 56.22 Subd. 3. [GASOLINE.] (a) Gasoline that is not blended with 56.23 ethanol must not be contaminated with water or other impurities 56.24 and must comply with ASTM specificationD4814-01D4814-04a. 56.25 Gasoline that is not blended with ethanol must also comply with 56.26 the volatility requirements in Code of Federal Regulations, 56.27 title 40, part 80. 56.28 (b) After gasoline is sold, transferred, or otherwise 56.29 removed from a refinery or terminal, a person responsible for 56.30 the product: 56.31 (1) may blend the gasoline with agriculturally derived 56.32 ethanol as provided in subdivision 4; 56.33 (2) shall not blend the gasoline with any oxygenate other 56.34 than denatured, agriculturally derived ethanol; 56.35 (3) shall not blend the gasoline with other petroleum 56.36 products that are not gasoline or denatured, agriculturally 57.1 derived ethanol; 57.2 (4) shall not blend the gasoline with products commonly and 57.3 commercially known as casinghead gasoline, absorption gasoline, 57.4 condensation gasoline, drip gasoline, or natural gasoline; and 57.5 (5) may blend the gasoline with a detergent additive, an 57.6 antiknock additive, or an additive designed to replace 57.7 tetra-ethyl lead, that is registered by the EPA. 57.8 Subd. 4. [GASOLINE BLENDED WITH ETHANOL.] (a) Gasoline may 57.9 be blended with up to ten percent, by volume, agriculturally 57.10 derived, denatured ethanol that complies with the requirements 57.11 of subdivision 5. 57.12 (b) A gasoline-ethanol blend must: 57.13 (1) comply with the volatility requirements in Code of 57.14 Federal Regulations, title 40, part 80; 57.15 (2) comply with ASTM specificationD4814-01D4814-04a, or 57.16 the gasoline base stock from which a gasoline-ethanol blend was 57.17 produced must comply with ASTM specificationD4814-01D4814-04a; 57.18 and 57.19 (3) not be blended with casinghead gasoline, absorption 57.20 gasoline, condensation gasoline, drip gasoline, or natural 57.21 gasoline after the gasoline-ethanol blend has been sold, 57.22 transferred, or otherwise removed from a refinery or terminal. 57.23 Subd. 5. [DENATURED ETHANOL.] Denatured ethanol that is to 57.24 be blended with gasoline must be agriculturally derived and must 57.25 comply with ASTM specificationD4806-01D4806-04a. This 57.26 includes the requirement that ethanol may be denatured only as 57.27 specified in Code of Federal Regulations, title 27, parts 20 and 57.28 21. 57.29 Subd. 6. [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] (a) 57.30 A person responsible for the product shall comply with the 57.31 following requirements: 57.32 (1) after July 1, 2000, gasoline containing in excess of 57.33 one-third of one percent, in total, of nonethanol oxygenates 57.34 listed in paragraph (b) must not be sold or offered for sale at 57.35 any time in this state; and 57.36 (2) after July 1, 2005, gasoline containing any of the 58.1 nonethanol oxygenates listed in paragraph (b) must not be sold 58.2 or offered for sale in this state. 58.3 (b) The oxygenates prohibited under paragraph (a) are: 58.4 (1) methyl tertiary butyl ether, as defined in section 58.5 296A.01, subdivision 34; 58.6 (2) ethyl tertiary butyl ether, as defined in section 58.7 296A.01, subdivision 18; or 58.8 (3) tertiary amyl methyl ether. 58.9 (c) Gasoline that is blended with a nonethanol oxygenate 58.10 must comply with ASTM specificationD4814-01D4814-04a. 58.11 Nonethanol oxygenates must not be blended into gasoline after 58.12 the gasoline has been sold, transferred, or otherwise removed 58.13 from a refinery or terminal. 58.14 Subd. 7. [HEATING FUEL OIL.] Heating fuel oil must comply 58.15 with ASTM specificationD396-01D396-02a. 58.16 Subd. 8. [DIESEL FUEL OIL.] Diesel fuel oil must comply 58.17 with ASTM specificationD975-01aD975-04b, except that diesel 58.18 fuel oil is not required to meet the diesel lubricity standard 58.19 until the date that the biodiesel fuel requirement in section 58.20 239.77, subdivision 2, becomes effective or December 31, 2005, 58.21 whichever comes first. 58.22 Subd. 9. [KEROSENE.] Kerosene must comply with ASTM 58.23 specificationD3699-01D3699-03. 58.24 Subd. 10. [AVIATION GASOLINE.] Aviation gasoline must 58.25 comply with ASTM specificationD910-00D910-04. 58.26 Subd. 11. [AVIATION TURBINE FUEL, JET FUEL.] Aviation 58.27 turbine fuel and jet fuel must comply with ASTM specification 58.28D1655-01D1655-04. 58.29 Subd. 12. [GAS TURBINE FUEL OIL.] Fuel oil for use in 58.30 nonaviation gas turbine engines must comply with ASTM 58.31 specificationD2880-00D2880-03. 58.32 Subd. 13. [E85.] A blend of ethanol and gasoline, 58.33 containing at least 60 percent ethanol and not more than 85 58.34 percent ethanol, produced for use as a motor fuel in alternative 58.35 fuel vehicles as defined in section 296A.01, subdivision 5, must 58.36 comply with ASTM specification D5798-99 (2004). 59.1 Subd. 14. [M85.] A blend of methanol and gasoline, 59.2 containing at least 85 percent methanol, produced for use as a 59.3 motor fuel in alternative fuel vehicles as defined in section 59.4 296A.01, subdivision 5, must comply with ASTM specification 59.5 D5797-96. 59.6 Sec. 52. Minnesota Statutes 2004, section 239.77, is 59.7 amended by adding a subdivision to read: 59.8 Subd. 4. [DISCLOSURE.] A refinery or terminal shall 59.9 provide, at the time diesel fuel is sold or transferred from the 59.10 refinery or terminal, a bill of lading or shipping manifest to 59.11 the person who receives the fuel. For biodiesel-blended 59.12 products, the bill of lading or shipping manifest must disclose 59.13 biodiesel content, stating volume percentage, gallons of 59.14 biodiesel per gallons of petroleum diesel base-stock, or an ASTM 59.15 "Bxx" designation where "xx" denotes the volume percent 59.16 biodiesel included in the blended product. This subdivision 59.17 does not apply to sales or transfers of biodiesel blend stock 59.18 between refineries, between terminals, or between a refinery and 59.19 a terminal. 59.20 Sec. 53. Minnesota Statutes 2004, section 239.79, 59.21 subdivision 4, is amended to read: 59.22 Subd. 4. [SALE OF CERTAIN PETROLEUM PRODUCTS ON GROSS 59.23 VOLUME BASIS.] A person responsible for the products listed in 59.24 this subdivision shall transfer, ship, distribute, offer for 59.25 distribution, sell, or offer to sell the products by volume. 59.26 Volumetric measurement of the product must not be temperature 59.27 compensated, or adjusted by any other factor. This subdivision 59.28 applies to gasoline, number one and number two diesel fuel oils, 59.29 number one and number two heating fuel oils, kerosene, denatured 59.30 ethanolthat is to be blended into gasoline, and an oxygenate59.31that is to be blended into gasoline, and biodiesel. This 59.32 subdivision does not apply to the measurement of petroleum 59.33 products transferred, sold, or traded between refineries, 59.34 between refineries and terminals, or between terminals. 59.35 Sec. 54. Minnesota Statutes 2004, section 239.791, 59.36 subdivision 1, is amended to read: 60.1 Subdivision 1. [MINIMUM ETHANOL CONTENT REQUIRED.] (a) 60.2 Except as provided in subdivisions 10 to 14, a person 60.3 responsible for the product shall ensure that all gasoline sold 60.4 or offered for sale in Minnesota must contain at least 10.0 60.5 percent denatured ethanol by volume. 60.6 (b) For purposes of enforcing the minimum ethanol 60.7 requirement of paragraph (a), a gasoline/ethanol blend will be 60.8 construed to be in compliance if the ethanol content, exclusive 60.9 of denaturants and permitted contaminants, comprises not less 60.10 than 9.2 percent by volume and not more than 10.0 percent by 60.11 volume of the blend as determined by an appropriate United 60.12 States Environmental Protection Agency or American Society of 60.13 Testing Materials standard method of analysis of alcohol/ether 60.14 content inmotorengine fuels. 60.15 Sec. 55. Minnesota Statutes 2004, section 239.791, 60.16 subdivision 7, is amended to read: 60.17 Subd. 7. [OXYGENATEETHANOL RECORDS; STATE AUDIT.] The 60.18 director shall audit the records of registeredoxygenateethanol 60.19 blenders to ensure that each blender has met all requirements in 60.20 this chapter. Specific information or data relating to sales 60.21 figures or to processes or methods of production unique to the 60.22 blender or that would tend to adversely affect the competitive 60.23 position of the blender must be only for the confidential use of 60.24 the director, unless otherwise specifically authorized by the 60.25 registered blender. 60.26 Sec. 56. Minnesota Statutes 2004, section 239.791, 60.27 subdivision 8, is amended to read: 60.28 Subd. 8. [DISCLOSURE.] A refinery or terminal, shall 60.29 provide, at the time gasoline is sold or transferred from the 60.30 refinery or terminal, a bill of lading or shipping manifest to 60.31 the person who receives the gasoline. For oxygenated gasoline, 60.32 the bill of lading or shipping manifest must include the 60.33 identity and the volume percentage or gallons of oxygenate 60.34 included in the gasoline, and it must state: "This fuel 60.35 contains an oxygenate. Do not blend this fuel with ethanol or 60.36 with any other oxygenate."For nonoxygenated gasoline sold or61.1transferred before October 1, 1997, the bill or manifest must61.2state: "This fuel must not be sold at retail in a carbon61.3monoxide control area."For nonoxygenated gasoline sold or 61.4 transferred after September 30, 1997, the bill or manifest must 61.5 state: "This fuel is not oxygenated. It must not be sold at 61.6 retail in Minnesota." This subdivision does not apply to sales 61.7 or transfers of gasoline between refineries, between terminals, 61.8 or between a refinery and a terminal. 61.9 Sec. 57. Minnesota Statutes 2004, section 239.791, 61.10 subdivision 15, is amended to read: 61.11 Subd. 15. [EXEMPTION FOR CERTAIN BLEND PUMPS.] (a) A 61.12 person responsible for the product, who offers for sale, sells, 61.13 or dispenses nonoxygenated premium gasoline under one or more of 61.14 the exemptions in subdivisions 10 to 14, may sell, offer for 61.15 sale, or dispense oxygenated gasoline that contains less than 61.16 the minimum amount of ethanol required under subdivision 1 if 61.17 all of the following conditions are met: 61.18 (1) the blended gasoline has an octane rating of 88 or 61.19 greater; 61.20 (2) the gasoline is a blend of oxygenated gasoline meeting 61.21 the requirements of subdivision 1 with nonoxygenated premium 61.22 gasoline; 61.23 (3) the blended gasoline contains not more than ten percent 61.24 nonoxygenated premium gasoline; 61.25 (4) the blending of oxygenated gasoline with nonoxygenated 61.26 gasoline occurs within the gasoline dispenser; and 61.27 (5) the gasoline station at which the gasoline is sold, 61.28 offered for sale, or delivered is equipped to store gasoline in 61.29 not more than two storage tanks. 61.30 (b) This subdivision applies only to those persons who meet 61.31 the conditions in paragraph (a), clauses (1) through (5), onthe61.32effective date of this actAugust 1, 2004, and have registered 61.33 with the director within three months ofthe effectivethat date 61.34of this act. 61.35 Sec. 58. Minnesota Statutes 2004, section 239.792, is 61.36 amended to read: 62.1 239.792 [GASOLINE OCTANEAUTOMOTIVE FUEL RATINGS, 62.2 CERTIFICATION, AND POSTING.] 62.3 Subdivision 1. [DISCLOSUREDUTIES OF REFINERS, IMPORTERS, 62.4 AND PRODUCERS.] Amanufacturer, hauler, blender, agent, jobber,62.5consignment agentrefiner, importer, ordistributor who sells,62.6delivers, or distributes gasoline or gasoline-oxygenate blends,62.7shall provide, at the time of delivery, a bill of lading or62.8shipping manifest to the person who receives the gasoline. The62.9bill or manifest must state the minimum octane of the gasoline62.10delivered. The stated octane number must be the average of the62.11"motor method" octane number and the "research method" octane62.12number as determined by the test methods in ASTM specification62.13D4814-01, or by a test method adopted by department62.14ruleproducer of automotive fuel must comply with the automotive 62.15 fuel rating, certification, and record-keeping requirements of 62.16 Code of Federal Regulations, title 16, sections 306.5 to 306.7. 62.17 Subd. 2. [DISPENSER LABELINGDUTIES OF DISTRIBUTORS.]A62.18person responsible for the product shall clearly, conspicuously,62.19and permanently label each gasoline dispenser that is used to62.20sell gasoline or gasoline-oxygenate blends at retail or to62.21dispense gasoline or gasoline-oxygenate blends into the fuel62.22supply tanks of motor vehicles, with the minimum octane of the62.23gasoline dispensed. The label must meet the following62.24requirements:62.25(a) The octane number displayed on the label must represent62.26the average of the "motor method" octane number and the62.27"research method" octane number as determined by the test62.28methods in ASTM specification D4814-01, or by a test method62.29adopted by department rule.62.30(b) The label must be at least 2-1/2 inches high and three62.31inches wide, with a yellow background, black border, and black62.32figures and letters.62.33(c) The number representing the octane of the gasoline must62.34be at least one inch high.62.35(d) The label must include the words "minimum octane" and62.36the term "(R+M)/2" or "(RON+MON)/2."A licensed distributor of 63.1 automotive fuel must comply with the certification and 63.2 record-keeping provisions of Code of Federal Regulations, title 63.3 16, sections 306.8 and 306.9. 63.4 Subd. 3. [DUTIES OF RETAILERS.] A person responsible for 63.5 the product who sells or transfers automotive fuel to a consumer 63.6 must comply with the automotive fuel rating posting and 63.7 record-keeping requirements, and the label specifications of 63.8 Code of Federal Regulations, title 16, sections 306.10 to 306.12. 63.9 Subd. 4. [DUTIES OF DIRECTOR.] Upon request, the director 63.10 shall provide any person with a copy of Code of Federal 63.11 Regulations, title 16, part 306. Upon request, the director 63.12 shall provide any distributor, retailer, or organization of 63.13 distributors or retailers with the label specifications in Code 63.14 of Federal Regulations, title 16, section 306.12. 63.15 Sec. 59. Minnesota Statutes 2004, section 268.19, 63.16 subdivision 1, is amended to read: 63.17 Subdivision 1. [USE OF DATA.] (a) Except as otherwise 63.18 provided by this section, data gathered from any person pursuant 63.19 to the administration of the Minnesota Unemployment Insurance 63.20 Law are private data on individuals or nonpublic data not on 63.21 individuals as defined in section 13.02, subdivisions 9 and 12, 63.22 and may not be disclosed except pursuant to a court order or 63.23 section 13.05. A subpoena shall not be considered a court 63.24 order. These data may be disseminated to and used by the 63.25 following agencies without the consent of the subject of the 63.26 data: 63.27 (1) state and federal agencies specifically authorized 63.28 access to the data by state or federal law; 63.29 (2) any agency of any other state or any federal agency 63.30 charged with the administration of an unemployment insurance 63.31 program; 63.32 (3) any agency responsible for the maintenance of a system 63.33 of public employment offices for the purpose of assisting 63.34 individuals in obtaining employment; 63.35 (4) human rights agencies within Minnesota that have 63.36 enforcement powers; 64.1 (5) the Department of Revenue only to the extent necessary 64.2 for its duties under Minnesota laws; 64.3 (6) public and private agencies responsible for 64.4 administering publicly financed assistance programs for the 64.5 purpose of monitoring the eligibility of the program's 64.6 recipients; 64.7 (7) the Department of Labor and Industry and the Division 64.8 of Insurance Fraud Prevention in the Department of Commerce on 64.9 an interchangeable basis with the department for uses consistent 64.10 with the administration of their duties under Minnesota law; 64.11 (8) local and state welfare agencies for monitoring the 64.12 eligibility of the data subject for assistance programs, or for 64.13 any employment or training program administered by those 64.14 agencies, whether alone, in combination with another welfare 64.15 agency, or in conjunction with the department or to monitor and 64.16 evaluate the statewide Minnesota family investment program by 64.17 providing data on recipients and former recipients of food 64.18 stamps or food support, cash assistance under chapter 256, 256D, 64.19 256J, or 256K, child care assistance under chapter 119B, or 64.20 medical programs under chapter 256B, 256D, or 256L; 64.21 (9) local and state welfare agencies for the purpose of 64.22 identifying employment, wages, and other information to assist 64.23 in the collection of an overpayment debt in an assistance 64.24 program; 64.25 (10) local, state, and federal law enforcement agencies for 64.26 the sole purpose of ascertaining the last known address and 64.27 employment location of a person who is the subject of a criminal 64.28 investigation; 64.29(10)(11) the federal Immigration and Naturalization 64.30 Service shall have access to data on specific individuals and 64.31 specific employers provided the specific individual or specific 64.32 employer is the subject of an investigation by that agency; and 64.33(11)(12) the Department of Health solely for the purposes 64.34 of epidemiologic investigations. 64.35 (b) Data on individuals and employers that are collected, 64.36 maintained, or used by the department in an investigation 65.1 pursuant to section 268.182 are confidential as to data on 65.2 individuals and protected nonpublic data not on individuals as 65.3 defined in section 13.02, subdivisions 3 and 13, and must not be 65.4 disclosed except pursuant to statute or court order or to a 65.5 party named in a criminal proceeding, administrative or 65.6 judicial, for preparation of a defense. 65.7 (c) Data gathered by the department pursuant to the 65.8 administration of the Minnesota unemployment insurance program 65.9 must not be made the subject or the basis for any suit in any 65.10 civil proceedings, administrative or judicial, unless the action 65.11 is initiated by the department. 65.12 Sec. 60. Minnesota Statutes 2004, section 296A.01, 65.13 subdivision 2, is amended to read: 65.14 Subd. 2. [AGRICULTURAL ALCOHOL GASOLINE.] "Agricultural 65.15 alcohol gasoline" means a gasoline-ethanol blend of up to ten 65.16 percent agriculturally derived fermentation ethanol derived from 65.17 agricultural products, such as potatoes, cereal, grains, cheese 65.18 whey, sugar beets, forest products, or other renewable 65.19 resources, that: 65.20 (1) meets the specifications in ASTM specificationD4806-0165.21 D4806-04a; and 65.22 (2) is denatured as specified in Code of Federal 65.23 Regulations, title 27, parts 20 and 21. 65.24 Sec. 61. Minnesota Statutes 2004, section 296A.01, 65.25 subdivision 7, is amended to read: 65.26 Subd. 7. [AVIATION GASOLINE.] "Aviation gasoline" means 65.27 any gasoline that is capable of use for the purpose of producing 65.28 or generating power for propelling internal combustion engine 65.29 aircraft, that meets the specifications in ASTM 65.30 specificationD910-00D910-04, and that either: 65.31 (1) is invoiced and billed by a producer, manufacturer, 65.32 refiner, or blender to a distributor or dealer, by a distributor 65.33 to a dealer or consumer, or by a dealer to consumer, as 65.34 "aviation gasoline"; or 65.35 (2) whether or not invoiced and billed as provided in 65.36 clause (1), is received, sold, stored, or withdrawn from storage 66.1 by any person, to be used for the purpose of producing or 66.2 generating power for propelling internal combustion engine 66.3 aircraft. 66.4 Sec. 62. Minnesota Statutes 2004, section 296A.01, 66.5 subdivision 8, is amended to read: 66.6 Subd. 8. [AVIATION TURBINE FUEL AND JET FUEL.] "Aviation 66.7 turbine fuel" and "jet fuel" mean blends of hydrocarbons derived 66.8 from crude petroleum, natural gasoline, and synthetic 66.9 hydrocarbons, intended for use in aviation turbine engines, and 66.10 that meet the specifications in ASTM specification 66.11D1655-01D1655.04. 66.12 Sec. 63. Minnesota Statutes 2004, section 296A.01, 66.13 subdivision 14, is amended to read: 66.14 Subd. 14. [DIESEL FUEL OIL.] "Diesel fuel oil" means a 66.15 petroleum distillate or blend of petroleum distillate and 66.16 residual fuels, intended for use as a motor fuel in internal 66.17 combustion diesel engines, that meets the specifications in ASTM 66.18 specificationD975-01AD975-04b, except that diesel fuel oil is 66.19 not required to meet the diesel lubricity standard until the 66.20 date that the biodiesel fuel requirement in section 239.77, 66.21 subdivision 2, becomes effective or December 31, 2005, whichever 66.22 comes first. Diesel fuel includes number 1 and number 2 fuel 66.23 oils. K-1 kerosene is not diesel fuel unless it is blended with 66.24 diesel fuel for use in motor vehicles. 66.25 Sec. 64. Minnesota Statutes 2004, section 296A.01, 66.26 subdivision 19, is amended to read: 66.27 Subd. 19. [E85.] "E85" means a petroleum product that is a 66.28 blend of agriculturally derived denatured ethanol and gasoline 66.29 or natural gasoline that typically contains 85 percent ethanol 66.30 by volume, but at a minimum must contain 60 percent ethanol by 66.31 volume. For the purposes of this chapter, the energy content of 66.32 E85 will be considered to be 82,000 BTUs per gallon. E85 66.33 produced for use as a motor fuel in alternative fuel vehicles as 66.34 defined in subdivision 5 must comply with ASTM specification 66.35 D5798-99 (2004). 66.36 Sec. 65. Minnesota Statutes 2004, section 296A.01, 67.1 subdivision 20, is amended to read: 67.2 Subd. 20. [ETHANOL, DENATURED.] "Ethanol, denatured" means 67.3 ethanol that is to be blended with gasoline, has been 67.4 agriculturally derived, and complies with ASTM specification 67.5D4806-01D4806-04a. This includes the requirement that ethanol 67.6 may be denatured only as specified in Code of Federal 67.7 Regulations, title 27, parts 20 and 21. 67.8 Sec. 66. Minnesota Statutes 2004, section 296A.01, 67.9 subdivision 22, is amended to read: 67.10 Subd. 22. [GAS TURBINE FUEL OIL.] "Gas turbine fuel oil" 67.11 means fuel that contains mixtures of hydrocarbon oils free of 67.12 inorganic acid and excessive amounts of solid or fibrous foreign 67.13 matter, intended for use in nonaviation gas turbine engines, and 67.14 that meets the specifications in ASTM specification 67.15D2880-00D2880-03. 67.16 Sec. 67. Minnesota Statutes 2004, section 296A.01, 67.17 subdivision 23, is amended to read: 67.18 Subd. 23. [GASOLINE.] (a) "Gasoline" means: 67.19 (1) all products commonly or commercially known or sold as 67.20 gasoline regardless of their classification or uses, except 67.21 casinghead gasoline, absorption gasoline, condensation gasoline, 67.22 drip gasoline, or natural gasoline that under the requirements 67.23 of section 239.761, subdivision 3, must not be blended with 67.24 gasoline that has been sold, transferred, or otherwise removed 67.25 from a refinery or terminal; and 67.26 (2) any liquid prepared, advertised, offered for sale or 67.27 sold for use as, or commonly and commercially used as, a fuel in 67.28 spark-ignition, internal combustion engines, and that when 67.29 tested by the Weights and Measures Division meets the 67.30 specifications in ASTM specificationD4814-01D4814-04a. 67.31 (b) Gasoline that is not blended with ethanol must not be 67.32 contaminated with water or other impurities and must comply with 67.33 both ASTM specificationD4814-01D4814-04a and the volatility 67.34 requirements in Code of Federal Regulations, title 40, part 80. 67.35 (c) After gasoline is sold, transferred, or otherwise 67.36 removed from a refinery or terminal, a person responsible for 68.1 the product: 68.2 (1) may blend the gasoline with agriculturally derived 68.3 ethanol, as provided in subdivision 24; 68.4 (2) must not blend the gasoline with any oxygenate other 68.5 than denatured, agriculturally derived ethanol; 68.6 (3) must not blend the gasoline with other petroleum 68.7 products that are not gasoline or denatured, agriculturally 68.8 derived ethanol; 68.9 (4) must not blend the gasoline with products commonly and 68.10 commercially known as casinghead gasoline, absorption gasoline, 68.11 condensation gasoline, drip gasoline, or natural gasoline; and 68.12 (5) may blend the gasoline with a detergent additive, an 68.13 antiknock additive, or an additive designed to replace 68.14 tetra-ethyl lead, that is registered by the EPA. 68.15 Sec. 68. Minnesota Statutes 2004, section 296A.01, 68.16 subdivision 24, is amended to read: 68.17 Subd. 24. [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] 68.18 "Gasoline blended with nonethanol oxygenate" means gasoline 68.19 blended with ETBE, MTBE, or other alcohol or ether, except 68.20 denatured ethanol, that is approved as an oxygenate by the EPA, 68.21 and that complies with ASTM specificationD4814-01D4814-04a. 68.22 Oxygenates, other than denatured ethanol, must not be blended 68.23 into gasoline after the gasoline has been sold, transferred, or 68.24 otherwise removed from a refinery or terminal. 68.25 Sec. 69. Minnesota Statutes 2004, section 296A.01, 68.26 subdivision 25, is amended to read: 68.27 Subd. 25. [GASOLINE BLENDED WITH ETHANOL.] "Gasoline 68.28 blended with ethanol" means gasoline blended with up to ten 68.29 percent, by volume, agriculturally derived, denatured ethanol. 68.30 The blend must comply with the volatility requirements in Code 68.31 of Federal Regulations, title 40, part 80. The blend must also 68.32 comply with ASTM specificationD4814-01D4814-04a, or the 68.33 gasoline base stock from which a gasoline-ethanol blend was 68.34 produced must comply with ASTM specificationD4814-01D4814-04a; 68.35 and the gasoline-ethanol blend must not be blended with 68.36 casinghead gasoline, absorption gasoline, condensation gasoline, 69.1 drip gasoline, or natural gasoline after the gasoline-ethanol 69.2 blend has been sold, transferred, or otherwise removed from a 69.3 refinery or terminal. The blend need not comply with ASTM 69.4 specificationD4814-01D4814-04a if it is subjected to a 69.5 standard distillation test. For a distillation test, a 69.6 gasoline-ethanol blend is not required to comply with the 69.7 temperature specification at the 50 percent liquid recovery 69.8 point, if the gasoline from which the gasoline-ethanol blend was 69.9 produced complies with all of the distillation specifications. 69.10 Sec. 70. Minnesota Statutes 2004, section 296A.01, 69.11 subdivision 26, is amended to read: 69.12 Subd. 26. [HEATING FUEL OIL.] "Heating fuel oil" means a 69.13 petroleum distillate, blend of petroleum distillates and 69.14 residuals, or petroleum residual heating fuel that meets the 69.15 specifications in ASTM specificationD396-01D396-02a. 69.16 Sec. 71. Minnesota Statutes 2004, section 296A.01, 69.17 subdivision 28, is amended to read: 69.18 Subd. 28. [KEROSENE.] "Kerosene" means a refined petroleum 69.19 distillate consisting of a homogeneous mixture of hydrocarbons 69.20 essentially free of water, inorganic acidic and basic compounds, 69.21 and excessive amounts of particulate contaminants and that meets 69.22 the specifications in ASTM specificationD3699-01D3699-03. 69.23 Sec. 72. Minnesota Statutes 2004, section 298.22, is 69.24 amended by adding a subdivision to read: 69.25 Subd. 9. [SALE OR PRIVATIZATION OF FUNCTIONS.] The 69.26 commissioner of Iron Range resources and rehabilitation may not 69.27 sell or privatize any project area or function of the agency 69.28 without prior approval by a majority vote of the board. 69.29 Sec. 73. [325F.991] [911 EMERGENCY PHONE SERVICE 69.30 REPRESENTATIONS.] 69.31 Subdivision 1. [DEFINITIONS.] For purposes of this 69.32 section, the terms defined in this subdivision have the meanings 69.33 given them. 69.34 (a) "911 emergency telecommunications system" means a 69.35 dedicated emergency telecommunications system required by 69.36 section 403.025. 70.1 (b) "Person" means an individual, corporation, firm, or 70.2 other legal entity. 70.3 (c) "Service provider" means a person doing business in 70.4 Minnesota who provides real time, two-way voice service 70.5 interconnected with the public switched telephone network using 70.6 numbers allocated for Minnesota by the North American Numbering 70.7 Plan Administration. 70.8 Subd. 2. [REPRESENTATIONS OF 911 SERVICE.] A person shall 70.9 not advertise, market, or otherwise represent that the person 70.10 furnishes a service capable of providing access to emergency 70.11 services by dialing 911 unless the person provides a service 70.12 that routes 911 calls through the 911 emergency 70.13 telecommunications system. 70.14 Subd. 3. [DISCLOSURE.] A service provider that does not 70.15 provide 911 dialing that routes 911 calls through the 911 70.16 emergency telecommunications system must disclose that fact in 70.17 all advertisements, marketing materials, and contracts. The 70.18 disclosure must be in capital letters, in 12-point font, and on 70.19 the front page of the advertisement, marketing materials, and 70.20 contracts. The disclosure must state: "THIS SERVICE DOES NOT 70.21 ROUTE 911 CALLS THROUGH THE 911 EMERGENCY SYSTEM." 70.22 Subd. 4. [CERTAIN CALLS NOT 911 CALLS.] For purposes of 70.23 this section, 911 calls routed to the general access number at a 70.24 public safety answering point do not qualify as being routed 70.25 through a 911 emergency telecommunications system. 70.26 [EFFECTIVE DATE.] This section is effective the day 70.27 following final enactment. 70.28 Sec. 74. Minnesota Statutes 2004, section 326.975, 70.29 subdivision 1, is amended to read: 70.30 Subdivision 1. [GENERALLY.] (a) In addition to any other 70.31 fees, each applicant for a license under sections 326.83 to 70.32 326.98 shall pay a fee to the contractor's recovery fund. The 70.33 contractor's recovery fund is created in the state treasury and 70.34 must be administered by the commissioner in the manner and 70.35 subject to all the requirements and limitations provided by 70.36 section 82.43 with the following exceptions: 71.1 (1) each licensee who renews a license shall pay in 71.2 addition to the appropriate renewal fee an additional fee which 71.3 shall be credited to the contractor's recovery fund. The amount 71.4 of the fee shall be based on the licensee's gross annual 71.5 receipts for the licensee's most recent fiscal year preceding 71.6 the renewal, on the following scale: 71.7 Fee Gross Receipts 71.8 $100 under $1,000,000 71.9 $150 $1,000,000 to $5,000,000 71.10 $200 over $5,000,000 71.11 Any person who receives a new license shall pay a fee based on 71.12 the same scale; 71.13 (2)(i) the sole purpose of this fund is to compensate any 71.14 aggrieved owner or lessee of residential property located within 71.15 this state who obtains a final judgment in any court of 71.16 competent jurisdiction against a licensee licensed under section 71.17 326.84, on grounds of fraudulent, deceptive, or dishonest 71.18 practices, conversion of funds, or failure of performance 71.19 arising directly out of any transaction when the judgment debtor 71.20 was licensed and performed any of the activities enumerated 71.21 under section 326.83, subdivision 19, on the owner's residential 71.22 property or on residential property rented by the lessee, or on 71.23 new residential construction which was never occupied prior to 71.24 purchase by the owner, or which was occupied by the licensee for 71.25 less than one year prior to purchase by the owner, and which 71.26 cause of action arose on or after April 1, 1994; and 71.27 (ii) reimburse the Department of Commerce for all legal and 71.28 administrative expenses, including staffing costs, incurred in 71.29 administering the fund; 71.30 (3) nothing may obligate the fund for more than $50,000 per 71.31 claimant, nor more than $75,000 per licensee; and 71.32 (4) nothing may obligate the fund for claims based on a 71.33 cause of action that arose before the licensee paid the recovery 71.34 fund fee set in clause (1), or as provided in section 326.945, 71.35 subdivision 3. 71.36 (b) Should the commissioner pay from the contractor's 72.1 recovery fund any amount in settlement of a claim or toward 72.2 satisfaction of a judgment against a licensee, the license shall 72.3 be automatically suspended upon the effective date of an order 72.4 by the court authorizing payment from the fund. No licensee 72.5 shall be granted reinstatement until the licensee has repaid in 72.6 full, plus interest at the rate of 12 percent a year, twice the 72.7 amount paid from the fund on the licensee's account, and has 72.8 obtained a surety bond issued by an insurer authorized to 72.9 transact business in this state in the amount of at least 72.10 $40,000. 72.11 Sec. 75. Minnesota Statutes 2004, section 345.47, 72.12 subdivision 3, is amended to read: 72.13 Subd. 3. [SECURITIES.] Securities listed on an established 72.14 stock exchange shall be sold at the prevailing prices on the 72.15 exchange. Other securities may be sold over the counter at 72.16 prevailing prices or,with prior approval of the State Board of72.17Investment,by another method the commissioner determines 72.18 advisable. United States government savings bonds and United 72.19 States war bonds shall be presented to the United States for 72.20 payment. 72.21 Sec. 76. Minnesota Statutes 2004, section 345.47, 72.22 subdivision 3a, is amended to read: 72.23 Subd. 3a. [HOLDING PERIOD.]All securities presumed72.24abandoned under section 345.35 and delivered to the commissioner72.25must be held for at least three years before they are sold. A72.26person making a claim under this section is entitled to receive72.27either the securities delivered to the commissioner by the72.28holder, if they still remain in the hands of the commissioner,72.29or the proceeds received from the sale, but no person has any72.30claim under this section against the state, the holder, any72.31transfer agent, registrar, or other person acting for or on72.32behalf of a holder for any appreciation in the value of the72.33property occurring after delivery by the holder to the72.34commissioner.If the property is of a type customarily sold on 72.35 a recognized market or of a type which may be sold over the 72.36 counter at prevailing prices, the commissioner may sell the 73.1 property without notice by publication or otherwise. The 73.2 commissioner may proceed with the liquidation after holding for 73.3 one year, with the exception of securities being held as the 73.4 result of an insurance company demutualization, these types of 73.5 securities may be sold upon receipt. The language provided in 73.6 this section grants to the commissioner express authority to 73.7 sell any property including, but not limited to, stocks, bonds, 73.8 notes, bills, and all other public or private securities. A 73.9 person making a claim under section 345.35 is entitled to 73.10 receive the securities delivered to the administrator by the 73.11 holder, if they still remain in the custody of the 73.12 administrator, or the net proceeds received from sale, and is 73.13 not entitled to receive any appreciation in the value of the 73.14 property occurring after sale by the commissioner. The 73.15 commissioner may liquidate all unclaimed securities currently 73.16 held in custody in accordance with the provisions of this 73.17 section. 73.18 Sec. 77. Minnesota Statutes 2004, section 373.40, 73.19 subdivision 1, is amended to read: 73.20 Subdivision 1. [DEFINITIONS.] For purposes of this 73.21 section, the following terms have the meanings given. 73.22 (a) "Bonds" means an obligation as defined under section 73.23 475.51. 73.24 (b) "Capital improvement" means acquisition or betterment 73.25 of public lands, development rights in the form of conservation 73.26 easements under chapter 84C, buildings, or other improvements 73.27 within the county for the purpose of a county courthouse, 73.28 administrative building, health or social service facility, 73.29 correctional facility, jail, law enforcement center, hospital, 73.30 morgue, library, park, qualified indoor ice arena, and roads and 73.31 bridges. An improvement must have an expected useful life of 73.32 five years or more to qualify. "Capital improvement" does not 73.33 include light rail transit or any activity related to it or a 73.34 recreation or sports facility building (such as, but not limited 73.35 to, a gymnasium, ice arena, racquet sports facility, swimming 73.36 pool, exercise room or health spa), unless the building is part 74.1 of an outdoor park facility and is incidental to the primary 74.2 purpose of outdoor recreation. 74.3 (c)"Commissioner" means the commissioner of employment and74.4economic development.74.5(d)"Metropolitan county" means a county located in the 74.6 seven-county metropolitan area as defined in section 473.121 or 74.7 a county with a population of 90,000 or more. 74.8(e)(d) "Population" means the population established by 74.9 the most recent of the following (determined as of the date the 74.10 resolution authorizing the bonds was adopted): 74.11 (1) the federal decennial census, 74.12 (2) a special census conducted under contract by the United 74.13 States Bureau of the Census, or 74.14 (3) a population estimate made either by the Metropolitan 74.15 Council or by the state demographer under section 4A.02. 74.16(f)(e) "Qualified indoor ice arena" means a facility that 74.17 meets the requirements of section 373.43. 74.18(g)(f) "Tax capacity" means total taxable market value, 74.19 but does not include captured market value. 74.20 Sec. 78. Minnesota Statutes 2004, section 373.40, 74.21 subdivision 3, is amended to read: 74.22 Subd. 3. [CAPITAL IMPROVEMENT PLAN.] (a) A county may 74.23 adopt a capital improvement plan. The plan must cover at least 74.24 the five-year period beginning with the date of its adoption. 74.25 The plan must set forth the estimated schedule, timing, and 74.26 details of specific capital improvements by year, together with 74.27 the estimated cost, the need for the improvement, and sources of 74.28 revenues to pay for the improvement. In preparing the capital 74.29 improvement plan, the county board must consider for each 74.30 project and for the overall plan: 74.31 (1) the condition of the county's existing infrastructure, 74.32 including the projected need for repair or replacement; 74.33 (2) the likely demand for the improvement; 74.34 (3) the estimated cost of the improvement; 74.35 (4) the available public resources; 74.36 (5) the level of overlapping debt in the county; 75.1 (6) the relative benefits and costs of alternative uses of 75.2 the funds; 75.3 (7) operating costs of the proposed improvements; and 75.4 (8) alternatives for providing services more efficiently 75.5 through shared facilities with other counties or local 75.6 government units. 75.7 (b) The capital improvement plan and annual amendments to 75.8 itmust beare not effective until approved by the county board 75.9 after public hearing.The county must submit the capital75.10improvement plan to the community development division of the75.11Department of Employment and Economic Development. The plan is75.12not effective if the commissioner disapproves the plan within 9075.13days after it was submitted. If the commissioner has not75.14disapproved the plan within 90 days after its submission, the75.15plan is deemed approved and effective. The commissioner shall75.16disapprove a capital improvement plan only if the commissioner75.17determines (1) that the planned improvements cannot be financed75.18within the limits specified in subdivision 4, or (2) the county75.19in preparing the plan did not consider the factors listed in75.20this subdivision or failed to gather the information necessary75.21to evaluate the plan under the factors, or (3) the proposed75.22improvements will result in unnecessary duplication of public75.23facilities provided by other units of government in the region75.24or there is insufficient demand for the facility. If the plan75.25is disapproved by the commissioner and the county board does not75.26withdraw the plan, the capital improvement plan must be75.27submitted to the voters for approval. If a majority of the75.28voters approve, the plan is approved and effective.75.29 Sec. 79. Minnesota Statutes 2004, section 462A.05, 75.30 subdivision 3a, is amended to read: 75.31 Subd. 3a. [REFINANCINGNONPROFITS; RESIDENTIAL HOUSING.] 75.32 It may refinance the existing indebtedness ofnonprofit75.33entities, as defined by the agencyowners of rental property, 75.34 secured by residential housing for occupancy by persons and 75.35 families of low and moderate income, if refinancing is 75.36 determined by the agency to be necessary to reduce housing costs 76.1 to an affordable level or to maintain the supply of affordable 76.2 low-income housing. The authority granted in this subdivision 76.3 is in addition to and not in limitation of the authority granted 76.4 in section 462A.05, subdivision 14. 76.5 Sec. 80. Minnesota Statutes 2004, section 462A.33, 76.6 subdivision 2, is amended to read: 76.7 Subd. 2. [ELIGIBLE RECIPIENTS.] Challenge grants or loans 76.8 may be made to a city, a federally recognized American Indian 76.9 tribe or subdivision located in Minnesota, a tribal housing 76.10 corporation, a private developer, a nonprofit organization, or 76.11 the owner of the housing, including individuals. For the 76.12 purpose of this section, "city" has the meaning given it in 76.13 section 462A.03, subdivision 21. To the extent practicable, 76.14 grants and loans shall be made so that an approximately equal 76.15 number of housing units are financed in the metropolitan area 76.16 and in the nonmetropolitan area. 76.17 Sec. 81. Minnesota Statutes 2004, section 517.08, 76.18 subdivision 1b, is amended to read: 76.19 Subd. 1b. [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.] 76.20 (a) The local registrar shall examine upon oath the party 76.21 applying for a license relative to the legality of the 76.22 contemplated marriage. If at the expiration of a five-day 76.23 period, on being satisfied that there is no legal impediment to 76.24 it, including the restriction contained in section 259.13, the 76.25 local registrar shall issue the license, containing the full 76.26 names of the parties before and after marriage, and county and 76.27 state of residence, with the county seal attached, and make a 76.28 record of the date of issuance. The license shall be valid for 76.29 a period of six months. In case of emergency or extraordinary 76.30 circumstances, a judge of the district court of the county in 76.31 which the application is made, may authorize the license to be 76.32 issued at any time before the expiration of the five days. 76.33 Except as provided in paragraph (b), the local registrar shall 76.34 collect from the applicant a fee of$85$75 for administering 76.35 the oath, issuing, recording, and filing all papers required, 76.36 and preparing and transmitting to the state registrar of vital 77.1 statistics the reports of marriage required by this section. If 77.2 the license should not be used within the period of six months 77.3 due to illness or other extenuating circumstances, it may be 77.4 surrendered to the local registrar for cancellation, and in that 77.5 case a new license shall issue upon request of the parties of 77.6 the original license without fee. A local registrar who 77.7 knowingly issues or signs a marriage license in any manner other 77.8 than as provided in this section shall pay to the parties 77.9 aggrieved an amount not to exceed $1,000. 77.10 (b) The marriage license fee for parties who have completed 77.11 at least 12 hours of premarital education is $20. In order to 77.12 qualify for the reduced fee, the parties must submit a signed 77.13 and dated statement from the person who provided the premarital 77.14 education confirming that it was received. The premarital 77.15 education must be provided by a licensed or ordained minister or 77.16 the minister's designee, a person authorized to solemnize 77.17 marriages under section 517.18, or a person authorized to 77.18 practice marriage and family therapy under section 148B.33. The 77.19 education must include the use of a premarital inventory and the 77.20 teaching of communication and conflict management skills. 77.21 (c) The statement from the person who provided the 77.22 premarital education under paragraph (b) must be in the 77.23 following form: 77.24 "I, (name of educator), confirm that (names of both 77.25 parties) received at least 12 hours of premarital education that 77.26 included the use of a premarital inventory and the teaching of 77.27 communication and conflict management skills. I am a licensed 77.28 or ordained minister, a person authorized to solemnize marriages 77.29 under Minnesota Statutes, section 517.18, or a person licensed 77.30 to practice marriage and family therapy under Minnesota 77.31 Statutes, section 148B.33." 77.32 The names of the parties in the educator's statement must 77.33 be identical to the legal names of the parties as they appear in 77.34 the marriage license application. Notwithstanding section 77.35 138.17, the educator's statement must be retained for seven 77.36 years, after which time it may be destroyed. 78.1 (d) If section 259.13 applies to the request for a marriage 78.2 license, the local registrar shall grant the marriage license 78.3 without the requested name change. Alternatively, the local 78.4 registrar may delay the granting of the marriage license until 78.5 the party with the conviction: 78.6 (1) certifies under oath that 30 days have passed since 78.7 service of the notice for a name change upon the prosecuting 78.8 authority and, if applicable, the attorney general and no 78.9 objection has been filed under section 259.13; or 78.10 (2) provides a certified copy of the court order granting 78.11 it. The parties seeking the marriage license shall have the 78.12 right to choose to have the license granted without the name 78.13 change or to delay its granting pending further action on the 78.14 name change request. 78.15 Sec. 82. Minnesota Statutes 2004, section 517.08, 78.16 subdivision 1c, is amended to read: 78.17 Subd. 1c. [DISPOSITION OF LICENSE FEE.] (a) Of the 78.18 marriage license fee collected pursuant to subdivision 1b, 78.19 paragraph (a), $15 must be retained by the county. The local 78.20 registrar must pay$70$60 to the commissioner of finance to be 78.21 deposited as follows: 78.22 (1) $50 in the general fund; 78.23 (2) $3 in the special revenue fund to be appropriated to 78.24 the commissioner of education for parenting time centers under 78.25 section 119A.37; 78.26 (3) $2 in the special revenue fund to be appropriated to 78.27 the commissioner of health for developing and implementing the 78.28 MN ENABL program under section 145.9255; and 78.29 (4)$10 in the special revenue fund to be appropriated to78.30the commissioner of employment and economic development for the78.31displaced homemaker program under section 116L.96; and78.32(5)$5 in the special revenue fund to be appropriated to 78.33 the commissioner of human services for the Minnesota Healthy 78.34 Marriage and Responsible Fatherhood Initiative under section 78.35 256.742. 78.36 (b) Of the $20 fee under subdivision 1b, paragraph (b), $15 79.1 must be retained by the county. The local registrar must pay $5 79.2 to the commissioner of finance to be distributed as provided in 79.3 paragraph (a), clauses (2) and (3). 79.4 (c) The increase in the marriage license fee under 79.5 paragraph (a) provided for in Laws 2004, chapter 273, and 79.6 disbursement of the increase in that fee to the special fund for 79.7 the Minnesota Healthy Marriage and Responsible Fatherhood 79.8 Initiative under paragraph (a), clause(5)(4), is contingent 79.9 upon the receipt of federal funding under United States Code, 79.10 title 42, section 1315, for purposes of the initiative. 79.11 Sec. 83. Laws 1999, chapter 224, section 7, as amended by 79.12 Laws 2004, chapter 261, article 6, section 3, is amended to read: 79.13 Sec. 7. [SUNSET.] 79.14 Sections 2 and 4 expire on August 1,20052006, and 79.15 Minnesota Statutes 1998, sections 237.63, 237.65, and 237.68, 79.16 expire on December 31, 2004. 79.17 [EFFECTIVE DATE.] This section is effective the day 79.18 following final enactment. 79.19 Sec. 84. [INCREASED JOB TRAINING AND WAGES FOR 79.20 MINORITIES.] 79.21 Subdivision 1. [INITIATIVE.] The commissioner of 79.22 employment and economic development shall develop an initiative 79.23 to promote employment opportunities for minorities, including 79.24 Native Americans, with a particular focus on opportunities for 79.25 American blacks, in the state of Minnesota. At a minimum, the 79.26 initiative should significantly expand the job training 79.27 available to minorities and promote substantial increases in the 79.28 wages paid to minorities, at least to a rate well above living 79.29 wage, and within several years to equality. 79.30 Subd. 2. [INTERIM REPORT.] The commissioner, in 79.31 consultation with the Governor's Workforce Development Council, 79.32 shall prepare an interim report detailing the parameters of the 79.33 initiative to the governor and the chair of the finance 79.34 committee in each house of the legislature that has jurisdiction 79.35 over employment. The interim report must be made within 90 days 79.36 of the effective date of this section. 80.1 Subd. 3. [FINAL REPORT.] The commissioner, in consultation 80.2 with the Governor's Workforce Development Council, shall prepare 80.3 a final report detailing a proposed initiative by January 10, 80.4 2006. 80.5 [EFFECTIVE DATE.] This section is effective the day 80.6 following final enactment. 80.7 Sec. 85. [SMALL BUSINESS DEVELOPMENT STUDY.] 80.8 The commissioner of employment and economic development 80.9 must investigate options for charging fees for services that 80.10 help companies seek federal Phase II Small Business Innovation 80.11 Research grants. The results and recommendations from this 80.12 study must be submitted to the chairs of the house and senate 80.13 economic development finance committees by February 1, 2006. 80.14 Sec. 86. [PREVAILING WAGE ADVISORY COUNCIL.] 80.15 The commissioner of labor and industry and the commissioner 80.16 of employment and economic development shall convene a 80.17 prevailing wage advisory council. The advisory council shall 80.18 consist of 12 members as follows: the presidents of the largest 80.19 statewide Minnesota business and organized labor organizations 80.20 as measured by the number of employees of its business members 80.21 and in its affiliated labor organizations in Minnesota on July 80.22 1, 2005. The governor, the majority leader of the senate, the 80.23 speaker of the house of representatives, the minority leader of 80.24 the senate, and the minority leader of the house of 80.25 representatives shall each select a business and a labor 80.26 representative. At least four of the labor representatives 80.27 shall be chosen from the affiliated membership of the Minnesota 80.28 AFL-CIO. At least two of the business representatives shall be 80.29 representatives of small employers as defined in Minnesota 80.30 Statutes, section 177.24, subdivision 1, paragraph (a), clause 80.31 (2). None of the council members shall represent attorneys, 80.32 health care providers, qualified rehabilitation consultants, or 80.33 insurance companies. 80.34 The advisory council shall study whether: 80.35 (1) the responsibility of collecting information needed to 80.36 ascertain construction prevailing wages should be transferred 81.1 from the Department of Labor and Industry to the Department of 81.2 Employment and Economic Development; 81.3 (2) the construction prevailing wage rate should be 81.4 calculated on a regional basis; and 81.5 (3) the construction prevailing wage rate should be an 81.6 average of the rate plus benefits paid to workers engaged in the 81.7 same class of labor within the area. 81.8 The advisory council shall make a recommendation on these 81.9 issues to the governor and the chairs of the committees with 81.10 jurisdiction over labor issues in the senate and house of 81.11 representatives by January 15, 2006. 81.12 Sec. 87. [SESQUICENTENNIAL COMMISSION.] 81.13 Subdivision 1. [COMMISSION; PURPOSE.] The Minnesota 81.14 Sesquicentennial Commission is established to plan for 81.15 activities relating to Minnesota's 150th anniversary of 81.16 statehood. The commission shall create a plan for capital 81.17 improvements, celebratory activities, and public engagement in 81.18 every county in the state of Minnesota. 81.19 Subd. 2. [MEMBERSHIP.] The commission shall consist of 17 81.20 members who shall serve until the completion of the 81.21 sesquicentennial year of statehood, appointed as follows: 81.22 (1) nine members appointed by the governor, representing 81.23 major corporate, nonprofit, and public sectors of the state, 81.24 selected from all parts of the state; 81.25 (2) two members appointed by the speaker of the house of 81.26 representatives; 81.27 (3) two members appointed by the minority leader of the 81.28 house of representatives; 81.29 (4) two members from the majority party in the senate, 81.30 appointed by the Subcommittee on Committees; and 81.31 (5) two members from the minority party in the senate, 81.32 appointed by the Subcommittee on Committees. 81.33 Subd. 3. [COMPENSATION; OPERATION.] Members shall select a 81.34 chair from the membership of the commission. The chair shall 81.35 convene all meetings and set the agenda for the commission. The 81.36 Minnesota Historical Society shall provide office space and 82.1 staff support for the commission, and shall cooperate with the 82.2 University of Minnesota and Minnesota State Colleges and 82.3 Universities to support the programs of the commission. 82.4 Meetings shall be at the call of the chair. The commission may 82.5 appoint an advisory council to advise and assist the commission 82.6 with its duties. Members shall receive no compensation for 82.7 service on the Sesquicentennial Commission. Members appointed 82.8 by the governor may be reimbursed for expenses under Minnesota 82.9 Statutes, section 15.059, subdivision 3. 82.10 Subd. 4. [DUTIES.] The commission shall have the following 82.11 duties: 82.12 (1) to present to the governor and legislature a plan for 82.13 capital grants to pay for capital improvements on Minnesota's 82.14 historic public and private buildings, to be known as 82.15 sesquicentennial grants; 82.16 (2) to seek funding for activities to celebrate the 150th 82.17 anniversary of statehood, and to form partnerships with private 82.18 parties to further this mission; and 82.19 (3) to present an annual report to the governor and 82.20 legislature outlining progress made towards the celebration of 82.21 the sesquicentennial. 82.22 Subd. 5. [COMMEMORATIVE COIN.] The commission may arrange 82.23 for design, production, distribution, marketing, and sale of a 82.24 commemorative coin. Proceeds from sale of the commemorative 82.25 coin are appropriated to the commission. 82.26 Subd. 6. [EXPIRATION.] The commission shall continue to 82.27 operate until January 30, 2009, at which time it shall expire. 82.28 [EFFECTIVE DATE.] This section is effective the day 82.29 following final enactment. 82.30 Sec. 88. [INSTRUCTION TO REVISOR.] 82.31 The revisor of statutes shall renumber Minnesota Statutes, 82.32 section 239.05, as section 239.051, alphabetize the definitions, 82.33 and correct any cross-references to that section accordingly. 82.34 Sec. 89. [REPEALER.] 82.35 Minnesota Statutes 2004, sections 45.0295; 116J.573; 82.36 116J.58, subdivision 3; 116L.05, subdivision 4; 239.05, 83.1 subdivisions 6a and 6b; and 462C.15, are repealed. 83.2 Sec. 90. [APPLICATION.] 83.3 The provisions of sections 14 to 17 do not apply to 83.4 appropriations under Laws 2005, chapter 20. 83.5 ARTICLE 3 83.6 HUMAN SERVICES APPROPRIATIONS 83.7 Section 1. [HUMAN SERVICES APPROPRIATIONS.] 83.8 The sums shown in the columns marked "APPROPRIATIONS" are 83.9 appropriated from the general fund, or any other fund named, to 83.10 the agencies and for the purposes specified in the sections of 83.11 this article, to be available for the fiscal years indicated for 83.12 each purpose. The figures "2006" and "2007" where used in this 83.13 article, mean that the appropriation or appropriations listed 83.14 under them are available for the fiscal year ending June 30, 83.15 2006, or June 30, 2007, respectively. 83.16 SUMMARY BY FUND 83.17 BIENNIAL 83.18 2006 2007 TOTAL 83.19 General $ 411,712,000 $ 420,246,000 $ 831,958,000 83.20 Health Care 83.21 Access 249,000 249,000 498,000 83.22 Federal TANF 219,901,000 247,697,000 467,598,000 83.23 TOTAL $ 631,862,000 $ 668,192,000 $1,300,054,000 83.24 APPROPRIATIONS 83.25 Available for the Year 83.26 Ending June 30 83.27 2006 2007 83.28 Sec. 2. COMMISSIONER OF 83.29 HUMAN SERVICES 83.30 Subdivision 1. Total 83.31 Appropriation $ 631,862,000 $ 668,192,000 83.32 Summary by Fund 83.33 General 411,712,000 420,246,000 83.34 Health Care 83.35 Access 249,000 249,000 83.36 Federal TANF 219,901,000 247,697,000 83.37 [FOOD STAMPS EMPLOYMENT AND TRAINING 83.38 FUNDS.] Notwithstanding Minnesota 83.39 Statutes, sections 256J.626 and 83.40 256D.051, subdivisions 1a, 6b, and 6c, 83.41 federal food stamps employment and 83.42 training funds received as 83.43 reimbursement of Minnesota family 84.1 investment program consolidated fund 84.2 grant expenditures must be deposited in 84.4 the general fund. Consistent with the 84.5 receipt of these federal funds, the 84.6 commissioner may adjust the level of 84.7 working family credit expenditures 84.8 claimed as TANF maintenance of effort. 84.9 [TANF FUNDS APPROPRIATED TO OTHER 84.10 ENTITIES.] Any expenditures from the 84.11 TANF block grant shall be expended 84.12 according to the requirements and 84.13 limitations of part A of title IV of 84.14 the Social Security Act, as amended, 84.15 and any other applicable federal 84.16 requirement or limitation. Prior to 84.17 any expenditure of these funds, the 84.18 commissioner shall ensure that funds 84.19 are expended in compliance with the 84.20 requirements and limitations of federal 84.21 law and that any reporting requirements 84.22 of federal law are met. It shall be 84.23 the responsibility of any entity to 84.24 which these funds are appropriated to 84.25 implement a memorandum of understanding 84.26 with the commissioner that provides the 84.27 necessary assurance of compliance prior 84.28 to any expenditure of funds. The 84.29 commissioner shall receipt TANF funds 84.30 appropriated to other state agencies 84.31 and coordinate all related interagency 84.32 accounting transactions necessary to 84.33 implement these appropriations. 84.34 Unexpended TANF funds appropriated to 84.35 any state, local, or nonprofit entity 84.36 cancel at the end of the state fiscal 84.37 year unless appropriating or statutory 84.38 language permits otherwise. 84.39 [TANF MAINTENANCE OF EFFORT.] (a) In 84.40 order to meet the basic maintenance of 84.41 effort (MOE) requirements of the TANF 84.42 block grant specified under Code of 84.43 Federal Regulations, title 45, section 84.44 263.1, the commissioner may only report 84.45 nonfederal money expended for allowable 84.46 activities listed in the following 84.47 clauses as TANF/MOE expenditures: 84.48 (1) MFIP cash, diversionary work 84.49 program, and food assistance benefits 84.50 under Minnesota Statutes, chapter 256J; 84.51 (2) the child care assistance programs 84.52 under Minnesota Statutes, sections 84.53 119B.03 and 119B.05, and county child 84.54 care administrative costs under 84.55 Minnesota Statutes, section 119B.15; 84.56 (3) state and county MFIP 84.57 administrative costs under Minnesota 84.58 Statutes, chapters 256J and 256K; 84.59 (4) state, county, and tribal MFIP 84.60 employment services under Minnesota 84.61 Statutes, chapters 256J and 256K; 84.62 (5) expenditures made on behalf of 84.63 noncitizen MFIP recipients who qualify 84.64 for the medical assistance without 84.65 federal financial participation program 85.1 under Minnesota Statutes, section 85.2 256B.06, subdivision 4, paragraphs (d), 85.3 (e), and (j); and 85.4 (6) qualifying working family credit 85.5 expenditures under Minnesota Statutes, 85.6 section 290.0671. 85.7 (b) The commissioner shall ensure that 85.8 sufficient qualified nonfederal 85.9 expenditures are made each year to meet 85.10 the state's TANF/MOE requirements. For 85.11 the activities listed in paragraph (a), 85.12 clauses (2) to (6), the commissioner 85.13 may only report expenditures that are 85.14 excluded from the definition of 85.15 assistance under Code of Federal 85.16 Regulations, title 45, section 260.31. 85.17 (c) For fiscal years beginning with 85.18 state fiscal year 2005, the 85.19 commissioner shall ensure that the 85.20 maintenance of effort used by the 85.21 commissioner of finance for the 85.22 February and November forecasts 85.23 required under Minnesota Statutes, 85.24 section 16A.103, contains expenditures 85.25 under paragraph (a), clause (1), equal 85.26 to at least 25 percent of the total 85.27 required under Code of Federal 85.28 Regulations, title 45, section 263.1. 85.29 (d) Minnesota Statutes, section 85.30 256.011, subdivision 3, which requires 85.31 that federal grants or aids secured or 85.32 obtained under that subdivision be used 85.33 to reduce any direct appropriations 85.34 provided by law, does not apply if the 85.35 grants or aids are federal TANF funds. 85.36 (e) Notwithstanding the expiration date 85.37 provided in section 6, paragraph (a), 85.38 clauses (1) to (6), and paragraphs (b) 85.39 to (d), expire June 30, 2009. 85.40 [WORKING FAMILY CREDIT EXPENDITURES AS 85.41 TANF/MOE.] The commissioner may claim 85.42 as TANF maintenance of effort up to the 85.43 following amounts of working family 85.44 credit expenditures for the following 85.45 fiscal years: 85.46 (1) fiscal year 2006, $6,942,000; and 85.47 (2) fiscal year 2007 and thereafter, 85.48 $6,707,000. 85.49 [INCREASE WORKING FAMILY CREDIT 85.50 EXPENDITURES TO BE CLAIMED FOR 85.51 TANF/MOE.] In addition to the amounts 85.52 provided in this section, the 85.53 commissioner may count the following 85.54 amounts of working family credit 85.55 expenditure as TANF/MOE: 85.56 (1) fiscal year 2006, $67,385,000; 85.57 (2) fiscal year 2007, $69,839,000; 85.58 (3) fiscal year 2008, $12,657,000; and 86.1 (4) fiscal year 2009, $8,237,000. 86.2 [SPECIAL REVENUE FUND TRANSFER.] 86.3 Notwithstanding any law to the 86.4 contrary, excluding accounts authorized 86.5 under Minnesota Statutes, section 86.6 16A.1286, and Minnesota Statutes, 86.7 chapter 254B, the commissioner shall 86.8 transfer $1,139,000 of uncommitted 86.9 special revenue fund balances to the 86.10 general fund. The actual transfers 86.11 shall be identified within the standard 86.12 information provided to the chairs of 86.13 the legislative committees with 86.14 jurisdiction over health and human 86.15 services issues in December 2005. 86.16 Subd. 2. Children and Economic 86.17 Assistance Grants 86.18 Summary by Fund 86.19 General 369,129,000 377,643,000 86.20 Federal TANF 219,449,000 247,245,000 86.21 The amounts that may be spent from this 86.22 appropriation for each purpose are as 86.23 follows: 86.24 (a) MFIP/DWP Grants 86.25 General 35,640,000 31,902,000 86.26 Federal TANF 104,204,000 106,020,000 86.27 (b) Support Services Grants 86.28 General 8,697,000 8,715,000 86.29 Federal TANF 102,594,000 102,632,000 86.30 (c) MFIP Child Care Assistance Grants 86.31 General 41,170,000 20,030,000 86.32 Federal TANF 11,254,000 37,196,000 86.33 [MFIP CHILD CARE; TANF APPROPRIATION.] 86.34 The federal TANF appropriation is a 86.35 onetime appropriation. 86.36 [TANF TRANSFER TO FEDERAL CHILD CARE 86.37 AND DEVELOPMENT FUND.] $17,946,000 in 86.38 fiscal year 2006, $40,388,000 in fiscal 86.39 year 2007, and $3,192,000 in fiscal 86.40 year 2008 and each fiscal year 86.41 thereafter is appropriated to the 86.42 commissioner for the purposes of 86.43 MFIP/Transition Year child care under 86.44 Minnesota Statutes, section 119B.05. 86.45 The commissioner shall authorize 86.46 transfer of sufficient TANF funds to 86.47 the federal child care and development 86.48 fund to meet this appropriation and 86.49 shall ensure that all transferred funds 86.50 are expended according to the federal 86.51 child care and development fund 86.52 regulations. 86.53 (d) Basic Sliding Fee Child Care 87.1 Assistance Grants 87.2 General 6,592,000 24,911,000 87.3 [CHILD CARE AND DEVELOPMENT FUND 87.4 UNEXPENDED BALANCE.] In addition to the 87.5 amount provided in this section, the 87.6 commissioner shall expend $16,254,000 87.7 in fiscal year 2006 and $2,085,000 in 87.8 fiscal year 2007 from the federal child 87.9 care and development fund unexpended 87.10 balance for basic sliding fee child 87.11 care under Minnesota Statutes, section 87.12 119B.03. The commissioner shall ensure 87.13 that all child care and development 87.14 funds are expended according to the 87.15 federal child care and development fund 87.16 regulations. 87.17 [BASE ADJUSTMENT FOR FREEZE MAXIMUM 87.18 RATES FOR CHILD CARE ASSISTANCE.] The 87.19 general fund base is increased by 87.20 $4,301,000 in fiscal year 2008 and 87.21 $6,641,000 in fiscal year 2009 for 87.22 basic sliding fee child care assistance. 87.23 (e) Child Care Development Grants 87.24 General 1,540,000 1,540,000 87.25 (f) Child Support Enforcement Grants 87.26 General 3,255,000 3,255,000 87.27 (g) Children's Services Grants 87.28 General 40,488,000 49,580,000 87.29 [BASE ADJUSTMENT FOR ADOPTION 87.30 ASSISTANCE GRANTS.] The general fund 87.31 base is increased by $2,153,000 in 87.32 fiscal year 2008 and $4,310,000 in 87.33 fiscal year 2009 for adoption 87.34 assistance grants. 87.35 [BASE ADJUSTMENT FOR RELATIVE CUSTODY 87.36 ASSISTANCE GRANTS.] The general fund 87.37 base is increased by $838,000 in fiscal 87.38 year 2008 and $1,689,000 in fiscal year 87.39 2009 for relative custody assistance 87.40 grants. 87.41 [ADOPTION ASSISTANCE AND RELATIVE 87.42 CUSTODY ASSISTANCE.] The commissioner 87.43 may transfer unencumbered appropriation 87.44 balances for adoption assistance and 87.45 relative custody assistance between 87.46 fiscal years and between programs. 87.47 [PRIVATIZED ADOPTION GRANTS.] Federal 87.48 reimbursement for privatized adoption 87.49 grant and foster care recruitment grant 87.50 expenditures is appropriated to the 87.51 commissioner for adoption grants and 87.52 foster care and adoption administrative 87.53 purposes. 87.54 (h) Children and Community 87.55 Services Grants 87.56 General 68,488,000 68,488,000 88.1 [DELAY PROJECTS OF REGIONAL 88.2 SIGNIFICANCE.] Notwithstanding 88.3 Minnesota Statutes, section 256M.40, 88.4 subdivision 2, the projects of the 88.5 regional significance grant program are 88.6 delayed until July 1, 2007. The 88.7 general fund base for the program shall 88.8 be $25,000,000 in fiscal year 2008 and 88.9 $25,000,000 in fiscal year 2009. 88.10 (i) General Assistance Grants 88.11 General 30,823,000 31,157,000 88.12 [GENERAL ASSISTANCE STANDARD.] The 88.13 commissioner shall set the monthly 88.14 standard of assistance for general 88.15 assistance units consisting of an adult 88.16 recipient who is childless and 88.17 unmarried or living apart from parents 88.18 or a legal guardian at $203. The 88.19 commissioner may reduce this amount 88.20 according to Laws 1997, chapter 85, 88.21 article 3, section 54. 88.22 [EMERGENCY GENERAL ASSISTANCE.] The 88.23 amount appropriated for emergency 88.24 general assistance funds is limited to 88.25 no more than $7,889,812 in fiscal year 88.26 2006 and $7,889,812 in fiscal year 88.27 2007. Funds to counties shall be 88.28 allocated by the commissioner using the 88.29 allocation method specified in 88.30 Minnesota Statutes, section 256D.06. 88.31 (j) Minnesota Supplemental Aid Grants 88.32 General 30,315,000 30,801,000 88.33 [EMERGENCY MINNESOTA SUPPLEMENTAL AID 88.34 FUNDS.] The amount appropriated for 88.35 emergency Minnesota supplemental aid 88.36 funds is limited to no more than 88.37 $1,100,000 in fiscal year 2006 and 88.38 $1,100,000 in fiscal year 2007. Funds 88.39 to counties shall be allocated by the 88.40 commissioner using the allocation 88.41 method specified in Minnesota Statutes, 88.42 section 256D.46. 88.43 (k) Group Residential Housing Grants 88.44 General 85,487,000 91,009,000 88.45 (l) Other Children and Economic 88.46 Assistance Grants 88.47 General 16,634,000 16,255,000 88.48 Federal TANF 1,397,000 1,397,000 88.49 [TRANSITIONAL HOUSING.] $3,238,000 in 88.50 fiscal year 2006 and $3,238,000 in 88.51 fiscal year 2007 are appropriated for 88.52 transitional housing under Minnesota 88.53 Statutes, section 119A.43. Of this 88.54 amount, $1,397,000 in fiscal year 2006 88.55 and $1,397,000 in fiscal year 2007 are 88.56 onetime appropriations from the federal 88.57 TANF fund. The general fund base for 88.58 transitional housing shall be 89.1 $2,988,000 each year for the fiscal 89.2 2008-2009 biennium. 89.3 Subd. 3. Children and Economic Assistance 89.4 Management 89.5 Summary by Fund 89.6 General 42,583,000 42,603,000 89.7 Health Care Access 249,000 249,000 89.8 Federal TANF 452,000 452,000 89.9 The amounts that may be spent from the 89.10 appropriation for each purpose are as 89.11 follows: 89.12 (a) Children and Economic 89.13 Assistance Administration 89.14 General 7,838,000 7,832,000 89.15 Federal TANF 452,000 452,000 89.16 (b) Children and Economic 89.17 Assistance Operations 89.18 General 34,745,000 34,771,000 89.19 Health Care Access 249,000 249,000 89.20 [SPENDING AUTHORITY FOR FOOD STAMPS 89.21 BONUS AWARDS.] In the event that 89.22 Minnesota qualifies for the United 89.23 States Department of Agriculture Food 89.24 and Nutrition Services Food Stamp 89.25 Program performance bonus awards 89.26 beginning in federal fiscal year 2004, 89.27 the funding is appropriated to the 89.28 commissioner. The commissioner shall 89.29 retain 25 percent of the funding, with 89.30 the other 75 percent divided among the 89.31 counties according to a formula that 89.32 takes into account each county's impact 89.33 on state performance in the applicable 89.34 bonus categories. 89.35 [CHILD SUPPORT PAYMENT CENTER.] 89.36 Payments to the commissioner from other 89.37 governmental units, private 89.38 enterprises, and individuals for 89.39 services performed by the child support 89.40 payment center must be deposited in the 89.41 state systems account authorized under 89.42 Minnesota Statutes, section 256.014. 89.43 These payments are appropriated to the 89.44 commissioner for the operation of the 89.45 child support payment center or system, 89.46 according to Minnesota Statutes, 89.47 section 256.014. 89.48 [CHILD SUPPORT COST RECOVERY FEES.] The 89.49 commissioner shall transfer $34,000 of 89.50 child support cost recovery fees 89.51 collected in fiscal year 2006 and 89.52 fiscal year 2007 to the PRISM special 89.53 revenue account to offset PRISM system 89.54 costs of maintaining the fee. 89.55 [STUDY OF ECONOMIC IMPACT OF CHILD 90.1 SUPPORT GUIDELINES.] Of this amount, 90.2 $20,000 is appropriated to the 90.3 commissioner of human services in 90.4 fiscal year 2006 to pay the state's 90.5 share of the cost of study on the 90.6 economic impact of child support 90.7 guidelines in article 5, section 26. 90.8 [FINANCIAL INSTITUTION DATA MATCH AND 90.9 PAYMENT OF FEES.] The commissioner is 90.10 authorized to allocate up to $310,000 90.11 each year in fiscal year 2006 and 90.12 fiscal year 2007 from the PRISM special 90.13 revenue account to make payments to 90.14 financial institutions in exchange for 90.15 performing data matches between account 90.16 information held by financial 90.17 institutions and the public authority's 90.18 database of child support obligors as 90.19 authorized by Minnesota Statutes, 90.20 section 13B.06, subdivision 7. 90.21 Sec. 3. [TRANSFERS.] 90.22 Subdivision 1. [GRANTS.] The commissioner of human 90.23 services, with the approval of the commissioner of finance, and 90.24 after notification of the chairs of the relevant senate budget 90.25 division and house finance committee, may transfer unencumbered 90.26 appropriation balances for the biennium ending June 30, 2007, 90.27 within fiscal years among the MFIP, general assistance, medical 90.28 assistance, MFIP child care assistance under Minnesota Statutes, 90.29 section 119B.05, Minnesota supplemental aid, group residential 90.30 housing programs, and the entitlement portion of the chemical 90.31 dependency consolidated treatment fund, and between fiscal years 90.32 of the biennium. 90.33 Subd. 2. [ADMINISTRATION.] Positions, salary money, and 90.34 nonsalary administrative money may be transferred within the 90.35 Departments of Human Services and Health and within the programs 90.36 operated by the Veterans Nursing Homes Board as the 90.37 commissioners and the board consider necessary, with the advance 90.38 approval of the commissioner of finance. The commissioner or 90.39 the board shall inform the chairs of the relevant house and 90.40 senate health committees quarterly about transfers made under 90.41 this provision. 90.42 Subd. 3. [PROHIBITED TRANSFERS.] Grant money shall not be 90.43 transferred to operations within the Departments of Human 90.44 Services and Health and within the programs operated by the 90.45 Veterans Nursing Homes Board without the approval of the 91.1 legislature. 91.2 Sec. 4. [SPECIAL REVENUE TRANSFER FOR CERTAIN PROGRAMS.] 91.3 (a) The balance of indirect cost reimbursement attributable 91.4 to federal grants transferred from the Department of Education 91.5 to the Department of Human Services and available at the close 91.6 of fiscal year 2005 shall be transferred to the general fund. 91.7 (b) The balance of the child care child support recoveries 91.8 in the special revenue account established under Minnesota 91.9 Statutes, section 119B.074, and available at the close of fiscal 91.10 year 2005 shall be transferred to the general fund. 91.11 Sec. 5. [INDIRECT COSTS NOT TO FUND PROGRAMS.] 91.12 The commissioners of health and human services shall not 91.13 use indirect cost allocations to pay for the operational costs 91.14 of any program for which they are responsible. 91.15 Sec. 6. [SUNSET OF UNCODIFIED LANGUAGE.] 91.16 All uncodified language contained in this article expires 91.17 on June 30, 2007, unless a different expiration date is explicit. 91.18 Sec. 7. [EFFECTIVE DATE.] 91.19 The provisions in this article are effective July 1, 2005, 91.20 unless a different effective date is specified. 91.21 ARTICLE 4 91.22 DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT 91.23 Section 1. [ADJUSTMENT.] 91.24 The dollar amounts shown are added to or, if shown in 91.25 parentheses, are subtracted from the appropriations in Laws 91.26 2003, First Special Session chapter 14, as amended by Laws 2004, 91.27 chapter 272, or other law, and are appropriated from the general 91.28 fund, or any other fund named, to the Department of Human 91.29 Services for the purposes specified in this article, to be 91.30 available for the fiscal year indicated for each purpose. The 91.31 figure "2005" used in this article means that the appropriation 91.32 or appropriations listed are available for the fiscal year 91.33 ending June 30, 2005. 91.34 SUMMARY BY FUND 91.35 2005 91.36 General Fund 8,280,000 92.1 TANF (16,831,000) 92.2 TOTAL (8,551,000) 92.3 Sec. 2. COMMISSIONER OF HUMAN SERVICES 92.4 Subdivision 1. Total 92.5 Appropriation (8,551,000) 92.6 Summary by Fund 92.7 General 8,280,000 92.8 TANF (16,831,000) 92.9 Subd. 2. Continuing Care Grants 92.10 General (6,017,000) 92.11 The amount that may be spent from this 92.12 appropriation for each purpose is as 92.13 follows: 92.14 Group Residential Housing 92.15 General 6,017,000 92.16 Subd. 3. Economic Support Grants 92.17 General 22,940,000 92.18 TANF (16,831,000) 92.19 The amount that may be spent from this 92.20 appropriation for each purpose is as 92.21 follows: 92.22 (a) Minnesota Family Investment Program 92.23 General 21,000,000 92.24 TANF (16,831,000) 92.25 (b) General Assistance 2,840,000 92.26 (c) Minnesota Supplemental Aid (900,000) 92.27 Subd. 4. Child Care 92.28 Total Appropriation (20,677,000) 92.29 General Fund (20,677,000) 92.30 ARTICLE 5 92.31 CHILDREN AND FAMILIES 92.32 Section 1. Minnesota Statutes 2004, section 119B.02, is 92.33 amended by adding a subdivision to read: 92.34 Subd. 7. [ANNUAL REPORT.] The commissioner shall report 92.35 each January, using the most current data sources available to 92.36 the agency, on the monthly average cost of child care assistance 92.37 per family, the basic sliding fee waiting list, provider's 92.38 willingness to care for children from families accessing child 92.39 care assistance as documented in the child care resource and 93.1 referral program report, the child care assistance program 93.2 participation by income level as compared to income eligibility 93.3 levels, trends in families applying for MFIP due to child care 93.4 reasons, the type of care selected by child care assistance 93.5 families as compared to historical trends and to that selected 93.6 by the general public, and the percentage of child care center 93.7 and family provider rates that are equal to or less than the 93.8 child care assistance maximum rate. The commissioner must also 93.9 report on the progress toward measurement of the school 93.10 readiness of children in families receiving child care 93.11 assistance and of the length of continuous employment of parents 93.12 by child care assistance sub-programs. 93.13 Sec. 2. Minnesota Statutes 2004, section 119B.13, 93.14 subdivision 1, is amended to read: 93.15 Subdivision 1. [SUBSIDY RESTRICTIONS.] (a) The provider 93.16 rates determined under this section for fiscal year 2003 and 93.17 implemented July 1, 2002, are to be continued in effect through 93.18 June 30, 2007. The commissioner of human services shall modify 93.19 the rate tables for child care centers published in Department 93.20 of Human Services Bulletin No. 03-68-07 so that in counties with 93.21 regional or statewide cells, the maximum rates must be the 93.22 higher of the 100th percentile of the 2002 market rate survey 93.23 data for the county or the rate currently identified in the 93.24 bulletin. Beginning in fiscal year 2008, the maximum rate paid 93.25 for child care assistance in any county or multicounty region 93.26 under the child care fundmay not exceedshall be the lesser of 93.27 the 75th percentile rate for like-care arrangements in the 93.28 county or multicounty region as surveyed by the commissioner or 93.29 the previous year's rate for like-care arrangements in the 93.30 county increased by the percent change in the average quarterly 93.31 national CPI-U index for the current state fiscal year over the 93.32 average quarterly index for the previous state fiscal year. 93.33 When the commissioner determines that, using the commissioner's 93.34 established protocol, the number of providers responding to the 93.35 survey is too small to determine the 75th percentile rate for 93.36 like-care arrangements in a county or multicounty region, the 94.1 commissioner may establish the 75th percentile maximum rate 94.2 based on like-care arrangements in a county, region, or category 94.3 that the commissioner deems to be similar. 94.4 (b) A rate which includes a special needs rate paid under 94.5 subdivision 3 may be in excess of the maximum rate allowed under 94.6 this subdivision. 94.7 (c) The department shall monitor the effect of this 94.8 paragraph on provider rates. The county shall pay the 94.9 provider's full charges for every child in care up to the 94.10 maximum established. The commissioner shall determine the 94.11 maximum rate for each type of care on an hourly, full-day, and 94.12 weekly basis, including special needs and handicapped care.Not94.13less than once every two years, the commissioner shall evaluate94.14market practices for payment of absences and shall establish94.15policies for payment of absent days that reflect current market94.16practice.94.17 (d) When the provider charge is greater than the maximum 94.18 provider rate allowed, the parent is responsible for payment of 94.19 the difference in the rates in addition to any family co-payment 94.20 fee. 94.21 (e) The commissioner of human services must report each 94.22 January on the access that families receiving child care 94.23 assistance have to child care programs by identifying the 94.24 percentage of child care center and family child care provider 94.25 rates that are equal to or less than the maximum rates paid by 94.26 the child care assistance programs. The commissioner must 94.27 report the average percentage change in surveyed rates by 94.28 provider type. The commissioner shall also report the 94.29 percentage change in the average quarterly national CPI-U index 94.30 for the four quarters up to and including the quarter in which 94.31 the most recent rate survey began over the four previous 94.32 quarters. Reporting must be based on the rate data collected in 94.33 the most recent rate survey. 94.34 Sec. 3. Minnesota Statutes 2004, section 119B.13, is 94.35 amended by adding a subdivision to read: 94.36 Subd. 7. [ABSENT DAYS.] Child care providers may not be 95.1 reimbursed for more than 25 absent days per child, excluding 95.2 holidays, in a fiscal year, or for more than ten consecutive 95.3 absent days, unless the child has a documented medical condition 95.4 that causes more frequent absences. Documentation of medical 95.5 conditions must be on the forms and submitted according to the 95.6 timelines established by the commissioner. 95.7 [EFFECTIVE DATE.] This section is effective July 1, 2005. 95.8 Sec. 4. Minnesota Statutes 2004, section 245A.10, 95.9 subdivision 4, is amended to read: 95.10 Subd. 4. [ANNUAL LICENSE OR CERTIFICATION FEE FOR PROGRAMS 95.11 WITH LICENSED CAPACITY.] (a) Child care centers and programs 95.12 with a licensed capacity shall pay an annual nonrefundable 95.13 license or certification fee based on the following schedule: 95.14 Licensed Capacity Child Care Other 95.15 Center Program 95.16 License Fee License Fee 95.17 1 to 24 persons$300$225 $400 95.18 25 to 49 persons$450$340 $600 95.19 50 to 74 persons$600$450 $800 95.20 75 to 99 persons$750$565 $1,000 95.21 100 to 124 persons$900$675 $1,200 95.22 125 to 149 persons$1,200$900 $1,400 95.23 150 to 174 persons$1,400$1,050 $1,600 95.24 175 to 199 persons$1,600$1,200 $1,800 95.25 200 to 224 persons$1,800$1,350 $2,000 95.26 225 or more persons$2,000$1,500 $2,500 95.27 (b) A day training and habilitation program serving persons 95.28 with developmental disabilities or related conditions shall be 95.29 assessed a license fee based on the schedule in paragraph (a) 95.30 unless the license holder serves more than 50 percent of the 95.31 same persons at two or more locations in the community. When a 95.32 day training and habilitation program serves more than 50 95.33 percent of the same persons in two or more locations in a 95.34 community, the day training and habilitation program shall pay a 95.35 license fee based on the licensed capacity of the largest 95.36 facility and the other facility or facilities shall be charged a 96.1 license fee based on a licensed capacity of a residential 96.2 program serving one to 24 persons. 96.3 Sec. 5. Minnesota Statutes 2004, section 254A.035, 96.4 subdivision 2, is amended to read: 96.5 Subd. 2. [MEMBERSHIP TERMS, COMPENSATION, REMOVAL AND 96.6 EXPIRATION.] The membership of this council shall be composed of 96.7 17 persons who are American Indians and who are appointed by the 96.8 commissioner. The commissioner shall appoint one representative 96.9 from each of the following groups: Red Lake Band of Chippewa 96.10 Indians; Fond du Lac Band, Minnesota Chippewa Tribe; Grand 96.11 Portage Band, Minnesota Chippewa Tribe; Leech Lake Band, 96.12 Minnesota Chippewa Tribe; Mille Lacs Band, Minnesota Chippewa 96.13 Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth 96.14 Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation; 96.15 Prairie Island Sioux Indian Reservation; Shakopee Mdewakanton 96.16 Sioux Indian Reservation; Upper Sioux Indian Reservation; 96.17 International Falls Northern Range; Duluth Urban Indian 96.18 Community; and two representatives from the Minneapolis Urban 96.19 Indian Community and two from the St. Paul Urban Indian 96.20 Community. The terms, compensation, and removal of American 96.21 Indian Advisory Council members shall be as provided in section 96.22 15.059. The council expires June 30,20012008. 96.23 [EFFECTIVE DATE.] This section is effective retroactively 96.24 from June 30, 2001. 96.25 Sec. 6. Minnesota Statutes 2004, section 254A.04, is 96.26 amended to read: 96.27 254A.04 [CITIZENS ADVISORY COUNCIL.] 96.28 There is hereby created an Alcohol and Other Drug Abuse 96.29 Advisory Council to advise the Department of Human Services 96.30 concerning the problems of alcohol and other drug dependency and 96.31 abuse, composed of ten members. Five members shall be 96.32 individuals whose interests or training are in the field of 96.33 alcohol dependency and abuse; and five members whose interests 96.34 or training are in the field of dependency and abuse of drugs 96.35 other than alcohol. The terms, compensation and removal of 96.36 members shall be as provided in section 15.059. The council 97.1 expires June 30,20012008. The commissioner of human services 97.2 shall appoint members whose terms end in even-numbered years. 97.3 The commissioner of health shall appoint members whose terms end 97.4 in odd-numbered years. 97.5 [EFFECTIVE DATE.] This section is effective retroactively 97.6 from June 30, 2001. 97.7 Sec. 7. Minnesota Statutes 2004, section 256.01, is 97.8 amended by adding a subdivision to read: 97.9 Subd. 14b. [AMERICAN INDIAN CHILD WELFARE PROJECTS.] (a) 97.10 The commissioner of human services may authorize projects to 97.11 test tribal delivery of child welfare services to American 97.12 Indian children and their parents and custodians living on the 97.13 reservation. The commissioner has authority to solicit and 97.14 determine which tribes may participate in a project. Grants may 97.15 be issued to Minnesota Indian tribes to support the projects. 97.16 The commissioner may waive existing state rules as needed to 97.17 accomplish the projects. Notwithstanding section 626.556, the 97.18 commissioner may authorize projects to use alternative methods 97.19 of investigating and assessing reports of child maltreatment, 97.20 provided that the projects comply with the provisions of section 97.21 626.556 dealing with the rights of individuals who are subjects 97.22 of reports or investigations, including notice and appeal rights 97.23 and data practices requirements. The commissioner may seek any 97.24 federal approvals necessary to carry out the projects as well as 97.25 seek and use any funds available to the commissioner, including 97.26 use of federal funds, foundation funds, existing grant funds, 97.27 and other funds. The commissioner is authorized to advance 97.28 state funds as necessary to operate the projects. Federal 97.29 reimbursement applicable to the projects is appropriated to the 97.30 commissioner for the purposes of the projects. The projects 97.31 must be required to address responsibility for safety, 97.32 permanency, and well-being of children. 97.33 (b) For the purposes of this section, "American Indian 97.34 child" means a person under 18 years of age who is a tribal 97.35 member or eligible for membership in one of the tribes chosen 97.36 for a project under this subdivision and who is residing on the 98.1 reservation of that tribe. 98.2 (c) In order to qualify for an American Indian child 98.3 welfare project, a tribe must: 98.4 (1) be one of the existing tribes with reservation land in 98.5 Minnesota; 98.6 (2) have a tribal court with jurisdiction over child 98.7 custody proceedings; 98.8 (3) have a substantial number of children for whom 98.9 determinations of maltreatment have occurred; 98.10 (4) have capacity to respond to reports of abuse and 98.11 neglect under section 626.556; 98.12 (5) provide a wide range of services to families in need of 98.13 child welfare services; and 98.14 (6) have a tribal-state title IV-E agreement in effect. 98.15 (d) Grants awarded under this section may be used for the 98.16 nonfederal costs of providing child welfare services to American 98.17 Indian children on the tribe's reservation, including costs 98.18 associated with: 98.19 (1) assessment and prevention of child abuse and neglect; 98.20 (2) family preservation; 98.21 (3) facilitative, supportive, and reunification services; 98.22 (4) out-of-home placement for children removed from the 98.23 home for child protective purposes; and 98.24 (5) other activities and services approved by the 98.25 commissioner that further the goals of providing safety, 98.26 permanency, and well-being of American Indian children. 98.27 (e) When a tribe has initiated a project and has been 98.28 approved by the commissioner to assume child welfare 98.29 responsibilities for American Indian children of that tribe 98.30 under this section, the affected county social service agency is 98.31 relieved of responsibility for responding to reports of abuse 98.32 and neglect under section 626.556 for those children during the 98.33 time within which the tribal project is in effect and funded. 98.34 The commissioner shall work with tribes and affected counties to 98.35 develop procedures for data collection, evaluation, and 98.36 clarification of ongoing role and financial responsibilities of 99.1 the county and tribe for child welfare services prior to 99.2 initiation of the project. Children who have not been 99.3 identified by the tribe as participating in the project shall 99.4 remain the responsibility of the county. Nothing in this 99.5 section shall alter responsibilities of the county for law 99.6 enforcement or court services. 99.7 (f) The commissioner shall collect information on outcomes 99.8 relating to child safety, permanency, and well-being of American 99.9 Indian children who are served in the projects. Participating 99.10 tribes must provide information to the state in a format and 99.11 completeness deemed acceptable by the state to meet state and 99.12 federal reporting requirements. 99.13 Sec. 8. Minnesota Statutes 2004, section 256.01, is 99.14 amended by adding a subdivision to read: 99.15 Subd. 23. [ANNUAL REPORT.] Beginning July 1, 2005, the 99.16 commissioner shall prepare an annual report of the number of 99.17 eligible applicants who applied in the prior calendar year for 99.18 general assistance, under chapter 256D; MFIP, under chapter 99.19 256J; and food support, under chapter 256D, who had not lived in 99.20 Minnesota for the 12 months prior to the application month. The 99.21 report shall indicate the number of applicants by state of prior 99.22 residence or by the general category of foreign country. 99.23 Sec. 9. Minnesota Statutes 2004, section 256.741, 99.24 subdivision 4, is amended to read: 99.25 Subd. 4. [EFFECT OF ASSIGNMENT.] Assignments in this 99.26 section take effect upon a determination that the applicant is 99.27 eligible for public assistance. The amount of support assigned 99.28 under this subdivision may not exceed the total amount of public 99.29 assistance issued or the total support obligation, whichever is 99.30 less. Child care support collections made according to an 99.31 assignment under subdivision 2, paragraph (c), must be 99.32 deposited, subject to any limitations of federal law,by the99.33commissioner of human services in the child support collection99.34account in the special revenue fund and appropriated to the99.35commissioner of education for child care assistance under99.36section 119B.03. These collections are in addition to state and100.1federal funds appropriated to the child carein the general fund. 100.2 Sec. 10. Minnesota Statutes 2004, section 256B.0924, 100.3 subdivision 3, is amended to read: 100.4 Subd. 3. [ELIGIBILITY.] Persons are eligible to receive 100.5 targeted case management services under this section if the 100.6 requirements in paragraphs (a) and (b) are met. 100.7 (a) The person must be assessed and determined by the local 100.8 county agency to: 100.9 (1) be age 18 or older; 100.10 (2) be receiving medical assistance; 100.11 (3) have significant functional limitations; and 100.12 (4) be in need of service coordination to attain or 100.13 maintain living in an integrated community setting. 100.14 (b) The person must be a vulnerable adult in need of adult 100.15 protection as defined in section 626.5572, or is an adult with 100.16 mental retardation as defined in section 252A.02, subdivision 2, 100.17 or a related condition as defined in section 252.27, subdivision 100.18 1a, and is not receiving home and community-based waiver 100.19 services, or is an adult who lacks a permanent residence and who 100.20 has been without a permanent residence for at least one year or 100.21 on at least four occasions in the last three years. 100.22 Sec. 11. Minnesota Statutes 2004, section 256B.093, 100.23 subdivision 1, is amended to read: 100.24 Subdivision 1. [STATE TRAUMATIC BRAIN INJURY PROGRAM.] The 100.25 commissioner of human services shall: 100.26 (1) maintain a statewide traumatic brain injury program; 100.27 (2) supervise and coordinate services and policies for 100.28 persons with traumatic brain injuries; 100.29 (3) contract with qualified agencies or employ staff to 100.30 provide statewide administrative case management and 100.31 consultation; 100.32 (4) maintain an advisory committee to provide 100.33 recommendations in reports to the commissioner regarding program 100.34 and service needs of persons with traumatic brain injuries; 100.35 (5) investigate the need for the development of rules or 100.36 statutes for the traumatic brain injury home and community-based 101.1 services waiver; 101.2 (6) investigate present and potential models of service 101.3 coordination which can be delivered at the local level; and 101.4 (7) the advisory committee required by clause (4) must 101.5 consist of no fewer than ten members and no more than 30 101.6 members. The commissioner shall appoint all advisory committee 101.7 members to one- or two-year terms and appoint one member as 101.8 chair. Notwithstanding section 15.059, subdivision 5, the 101.9 advisory committee does not terminate until June 30,20052008. 101.10 Sec. 12. Minnesota Statutes 2004, section 256D.06, is 101.11 amended by adding a subdivision to read: 101.12 Subd. 1d. [STANDARD OF ASSISTANCE.] For a general 101.13 assistance applicant who has resided in the state for less than 101.14 90 days and who lives independently in the community, the 101.15 standard of assistance shall be 60 percent of the full 101.16 standard. The full standard of assistance shall be available 101.17 beginning the first day of either the month that the 90 days' 101.18 residency is completed if the 90th day occurs on or before the 101.19 15th of the month or the following month if the 90th day occurs 101.20 on the 16th of the month or after. The 30-day residence period 101.21 in section 256D.02, subdivision 12a, shall count toward the 101.22 90-day payment standard. 101.23 Sec. 13. Minnesota Statutes 2004, section 256D.06, 101.24 subdivision 5, is amended to read: 101.25 Subd. 5. [ELIGIBILITY; REQUIREMENTS.] (a) Any applicant, 101.26 otherwise eligible for general assistance and possibly eligible 101.27 for maintenance benefits from any other source shall(a)(1) 101.28 make application for those benefits within 30 days of the 101.29 general assistance application; and(b)(2) execute an interim 101.30 assistanceauthorizationagreement on a form as directed by the 101.31 commissioner. 101.32 (b) The commissioner shall review a denial of an 101.33 application for other maintenance benefits and may require a 101.34 recipient of general assistance to file an appeal of the denial 101.35 if appropriate. If found eligible for benefits from other 101.36 sources, and a payment received from another source relates to 102.1 the period during which general assistance was also being 102.2 received, the recipient shall be required to reimburse the 102.3 county agency for the interim assistance paid. Reimbursement 102.4 shall not exceed the amount of general assistance paid during 102.5 the time period to which the other maintenance benefits apply 102.6 and shall not exceed the state standard applicable to that time 102.7 period. 102.8 (c) The commissionershall adopt rules authorizing county102.9agencies or other client representatives to retain from the102.10amount recovered under an interim assistance agreement 25102.11percent plus actual reasonable fees, costs, and disbursements of102.12appeals and litigation, of providing special assistance to the102.13recipient in processing the recipient's claim for maintenance102.14benefits from another source. Themay contract with the county 102.15 agencies, qualified agencies, organizations, or persons to 102.16 provide advocacy and support services to process claims for 102.17 federal disability benefits for applicants or recipients of 102.18 services or benefits supervised by the commissioner using money 102.19 retained under this sectionshall be from the state share of the102.20recovery. The commissioner or the county agency may contract102.21with qualified persons to provide the special assistance. 102.22 (d) Therules adopted by thecommissionershall include the102.23 may provide methods by which county agencies shall identify, 102.24 refer, and assist recipients who may be eligible for benefits 102.25 under federal programs for the disabled.This subdivision does102.26not require repayment of per diem payments made to shelters for102.27battered women pursuant to section 256D.05, subdivision 3.102.28 (e) The total amount of interim assistance recoveries 102.29 retained under this section for advocacy, support, and claim 102.30 processing services shall not exceed 35 percent of the interim 102.31 assistance recoveries in the prior fiscal year. 102.32 Sec. 14. Minnesota Statutes 2004, section 256D.06, 102.33 subdivision 7, is amended to read: 102.34 Subd. 7. [SSI CONVERSIONS AND BACK CLAIMS.] (a) [SSI 102.35 CONVERSIONS.] The commissioner of human services shall contract 102.36 with agencies or organizations capable of ensuring that clients 103.1 who are presently receiving assistance under sections 256D.01 to 103.2 256D.21, and who may be eligible for benefits under the federal 103.3 Supplemental Security Income program, apply and, when eligible, 103.4 are converted to the federal income assistance program and made 103.5 eligible for health care benefits under the medical assistance 103.6 program. The commissioner shall ensure that money owing to the 103.7 state under interim assistance agreements is collected. 103.8 (b) [BACK CLAIMS FOR FEDERAL HEALTH CARE BENEFITS.] The 103.9 commissioner shall also directly or through contract implement 103.10 procedures for collecting federal Medicare and medical 103.11 assistance funds for which clients converted to SSI are 103.12 retroactively eligible. 103.13 (c) [ADDITIONAL REQUIREMENTS.] The commissioner shall 103.14begin contractingcontract with agencies to ensure 103.15 implementation of this sectionwithin 14 days after April 29,103.161992. County contracts with providers for residential services 103.17 shall include the requirement that providers screen residents 103.18 who may be eligible for federal benefits and provide that 103.19 information to the local agency. The commissioner shall modify 103.20 the MAXIS computer system to provide information on clients who 103.21 have been on general assistance for two years or longer. The 103.22 list of clients shall be provided to local services for 103.23 screening under this section. 103.24(d) [REPORT.] The commissioner shall report to the103.25legislature by January 15, 1993, on the implementation of this103.26section. The report shall contain information on the following:103.27(1) the number of clients converted from general assistance103.28to SSI, by county;103.29(2) information on the organizations involved;103.30(3) the amount of money collected through interim103.31assistance agreements;103.32(4) the amount of money collected in federal Medicare or103.33Medicaid funds;103.34(5) problems encountered in processing conversions and back103.35claims; and103.36(6) recommended changes to enhance recoveries and maximize104.1the receipt of federal money in the most efficient way possible.104.2 Sec. 15. Minnesota Statutes 2004, section 256I.05, 104.3 subdivision 1e, is amended to read: 104.4 Subd. 1e. [SUPPLEMENTARY RATE FOR CERTAIN FACILITIES.] 104.5 Notwithstanding the provisions of subdivisions 1a and 1c, 104.6 beginning July 1,20012005, a county agency shall negotiate a 104.7 supplementary rate in addition to the rate specified in 104.8 subdivision 1,equal to 46 percent of the amount specified in104.9subdivision 1anot to exceed $700 per month, including any 104.10 legislatively authorized inflationary adjustments, for a group 104.11 residential housing provider that: 104.12 (1) is located in Hennepin County and has had a group 104.13 residential housing contract with the county since June 1996; 104.14 (2) operates in three separate locations a71-bed75-bed 104.15 facility, a 50-bed facility, andtwo 40-bed facilitiesa 26-bed 104.16 facility; and 104.17 (3) serves a chemically dependent clientele, providing 24 104.18 hours per day supervision and limiting a resident's maximum 104.19 length of stay to 13 months out of a consecutive 24-month period. 104.20 Sec. 16. Minnesota Statutes 2004, section 256J.12, 104.21 subdivision 1, is amended to read: 104.22 Subdivision 1. [SIMPLE RESIDENCY.] To be eligible for MFIP 104.23 or DWP, an assistance unit must have established residency in 104.24 this state which means the assistance unit is present in the 104.25 state and intends to remain here. A person who lives in this 104.26 state and who entered this state with a job commitment or to 104.27 seek employment in this state, whether or not that person is 104.28 currently employed, meets the criteria in this subdivision. 104.29 Sec. 17. Minnesota Statutes 2004, section 256J.12, is 104.30 amended by adding a subdivision to read: 104.31 Subd. 5. [RESIDENCY REQUIREMENT FOR DWP APPLICANTS.] 104.32 Assistance to an eligible DWP family unit in which all members 104.33 have resided in this state for fewer than 90 consecutive days 104.34 shall be paid at the standard specified in section 256J.95, 104.35 subdivision 21. The 30-day residence period shall count toward 104.36 the 90-day DWP residence requirement. 105.1 Sec. 18. Minnesota Statutes 2004, section 256J.37, 105.2 subdivision 3a, is amended to read: 105.3 Subd. 3a. [RENTAL SUBSIDIES; UNEARNED INCOME.] (a) 105.4Effective July 1, 2003,The county agency shall count$50$200 105.5 of the value of public and assisted rental subsidies provided 105.6 through the Department of Housing and Urban Development (HUD) as 105.7 unearned income to the cash portion of the MFIP grant. The full 105.8 amount of the subsidy must be counted as unearned income when 105.9 the subsidy is less than$50$200. The income from this subsidy 105.10 shall be budgeted according to section 256J.34. 105.11 (b) The provisions of this subdivision shall not apply to 105.12 an MFIP assistance unit which includes a participant who is: 105.13 (1) age 60 or older; 105.14 (2) a caregiver who is suffering from an illness, injury, 105.15 or incapacity that has been certified by a qualified 105.16 professional when the illness, injury, or incapacity is expected 105.17 to continue for more than 30 days and prevents the person from 105.18 obtaining or retaining employment; or 105.19 (3) a caregiver whose presence in the home is required due 105.20 to the illness or incapacity of another member in the assistance 105.21 unit, a relative in the household, or a foster child in the 105.22 household when the illness or incapacity and the need for the 105.23 participant's presence in the home has been certified by a 105.24 qualified professional and is expected to continue for more than 105.25 30 days. 105.26 (c) The provisions of this subdivision shall not apply to 105.27 an MFIP assistance unit where theparentalcaregiver is an SSI 105.28 recipient. 105.29 (d) Prior to implementing this provision, the commissioner 105.30 must identify the MFIP participants subject to this provision 105.31 and provide written notice to these participants at least 30 105.32 days before the first grant reduction. The notice must inform 105.33 the participant of the basis for the potential grant reduction, 105.34 the exceptions to the provision, if any, and inform the 105.35 participant of the steps necessary to claim an exception. A 105.36 person who is found not to meet one of the exceptions to the 106.1 provision must be notified and informed of the right to a fair 106.2 hearing under section 256J.40. The notice must also inform the 106.3 participant that the participant may be eligible for a rent 106.4 reduction resulting from a reduction in the MFIP grant and 106.5 encourage the participant to contact the local housing authority. 106.6 [EFFECTIVE DATE.] This section is effective the first day 106.7 of the second month after the date of approval by the United 106.8 States Department of Agriculture. 106.9 Sec. 19. Minnesota Statutes 2004, section 256J.515, is 106.10 amended to read: 106.11 256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 106.12 During the first meeting with participants, job counselors 106.13 must ensure that an overview of employment and training services 106.14 is provided that: 106.15 (1) stresses the necessity and opportunity of immediate 106.16 employment; 106.17 (2) outlines the job search resources offered; 106.18 (3) outlines education or training opportunities available; 106.19 (4) describes the range of work activities, including 106.20 activities under section 256J.49, subdivision 13, clause (18), 106.21 that are allowable under MFIP to meet the individual needs of 106.22 participants; 106.23 (5) explains the requirements to comply with an employment 106.24 plan; 106.25 (6) explains the consequences for failing to comply; 106.26 (7) explains the services that are available to support job 106.27 search and work and education;and106.28 (8) provides referral information about shelters and 106.29 programs for victims of family violence and the time limit 106.30 exemption for family violence victims; and 106.31 (9) explains the probationary employment periods new 106.32 employees may serve after being hired and any assistance with 106.33 job retention services that may be available. 106.34 Failure to attend the overview of employment and training 106.35 services without good cause results in the imposition of a 106.36 sanction under section 256J.46. 107.1 An applicant who requests and qualifies for a family 107.2 violence waiver is exempt from attending a group overview. 107.3 Information usually presented in an overview must be covered 107.4 during the development of an employment plan under section 107.5 256J.521, subdivision 3. 107.6 Sec. 20. Minnesota Statutes 2004, section 256J.751, 107.7 subdivision 2, is amended to read: 107.8 Subd. 2. [QUARTERLY COMPARISON REPORT.] The commissioner 107.9 shall report quarterly to all counties on each county's 107.10 performance on the following measures: 107.11 (1) percent of MFIP caseload working in paid employment; 107.12 (2) percent of MFIP caseload receiving only the food 107.13 portion of assistance; 107.14 (3) number of MFIP cases that have left assistance; 107.15 (4) federal participation requirements as specified in 107.16 Title 1 of Public Law 104-193; 107.17 (5) median placement wage rate; 107.18 (6) caseload by months of TANF assistance; 107.19 (7) percent of MFIP and diversionary work program (DWP) 107.20 cases off cash assistance or working 30 or more hours per week 107.21 at one-year, two-year, and three-year follow-up points from a 107.22 baseline quarter. This measure is called the self-support 107.23 index. Twice annually, the commissioner shall report an 107.24 expected range of performance for each county, county grouping, 107.25 and tribe on the self-support index. The expected range shall 107.26 be derived by a statistical methodology developed by the 107.27 commissioner in consultation with the counties and tribes. For 107.28 purposes of measuring the self-support index, participants under 107.29 section 256J.425, subdivisions 2 and 3, are excluded. The 107.30 statistical methodology shall control differences across 107.31 counties in economic conditions and demographics of the MFIP and 107.32 DWP case load; and 107.33 (8) the MFIP work participation rate, defined as the 107.34 participation requirements specified in title 1 of Public Law 107.35 104-193 applied to all MFIP cases except child only cases and 107.36 cases exempt under section 256J.56. For purposes of measuring 108.1 the work participation rate, participants under sections 108.2 256J.425, subdivisions 2 and 3; and 256J.561, subdivision 2, 108.3 paragraph (d), clauses (2) and (3), and subdivision 3, are 108.4 excluded. 108.5 Sec. 21. Minnesota Statutes 2004, section 256J.95, is 108.6 amended by adding a subdivision to read: 108.7 Subd. 21. [INTERSTATE PAYMENT STANDARDS.] (a) Effective 108.8 July 1, 2005, the amount of assistance paid to an eligible DWP 108.9 family unit in which all members have resided in this state for 108.10 fewer than 90 consecutive days shall be calculated according to 108.11 paragraph (b). 108.12 (b) Payment must be calculated by applying DWP budgeting 108.13 policies, and the unit's net income must be deducted from the 108.14 payment standard in the state of immediate prior residence or 108.15 Minnesota, whichever is less. Payments shall be vendor paid 108.16 according to subdivision 1, paragraph (d). 108.17 (c) The lesser payment must continue until the DWP family 108.18 unit meets the 90-day residency requirement. A family unit that 108.19 has not resided in Minnesota for 90 days is not exempt from the 108.20 payment provisions solely because a child is born in Minnesota 108.21 to a member of the family unit. 108.22 (d) Any eligible noncitizen who comes directly to Minnesota 108.23 from another country, and whose United States Citizenship and 108.24 Immigration Services (USCIS) settlement destination is 108.25 Minnesota, will receive the amount calculated using DWP policy 108.26 and standards. If the USCIS settlement destination is another 108.27 state, apply the lesser of the payment standard for that size 108.28 family in the state of immediate prior residence or the 108.29 standards under DWP. 108.30 (e) The assistance unit shall be eligible for the full 108.31 amount of assistance based on DWP standards beginning either the 108.32 month during which the 90-day residency requirement is met, if 108.33 the 90th day occurs on or before the 15th of the month, or the 108.34 following month if the 90th day occurs on the 16th of the month 108.35 or after. 108.36 (f) This policy applies whether or not the family unit 109.1 received similar benefits while residing in the state of 109.2 immediate prior residence. 109.3 (g) For the purposes of this section, "state of immediate 109.4 prior residence" means the state in which the applicant declares 109.5 the applicant spent the most time in the 30 days prior to moving 109.6 to Minnesota. 109.7 (h) Applicants must provide verification of their state of 109.8 immediate prior residence, in the form of tax statements, a 109.9 driver's license, automobile registration, rent receipts, or 109.10 other forms of verification approved by the commissioner. 109.11 Sec. 22. Minnesota Statutes 2004, section 256J.95, is 109.12 amended by adding a subdivision to read: 109.13 Subd. 22. [TEMPORARY ABSENCE FROM MINNESOTA.] For an 109.14 assistance unit that has met the 30-day residency requirements 109.15 in section 256J.12, subdivisions 1 to 4, the 90-day period in 109.16 subdivision 21 is not affected by a subsequent absence from 109.17 Minnesota for fewer than 30 consecutive days, provided the 109.18 family unit maintains a residence in Minnesota. 109.19 Sec. 23. Minnesota Statutes 2004, section 256J.95, is 109.20 amended by adding a subdivision to read: 109.21 Subd. 23. [INELIGIBLE MANDATORY UNIT MEMBERS.] The 90-day 109.22 residency requirement in subdivision 21 does not apply if the 109.23 family unit includes an ineligible mandatory family unit member 109.24 who has resided in Minnesota for 90 consecutive days immediately 109.25 before the unit's date of application. 109.26 Sec. 24. [256K.26] [LONG-TERM HOMELESS SUPPORTIVE 109.27 SERVICES.] 109.28 Subdivision 1. [ESTABLISHMENT AND PURPOSE.] The 109.29 commissioner shall establish the long-term homeless supportive 109.30 services fund to provide integrated services needed to stabilize 109.31 individuals, families, and youth living in supportive housing 109.32 developed to further the goals set forth in Laws 2003, chapter 109.33 128, article 15, section 9. 109.34 Subd. 2. [IMPLEMENTATION.] The commissioner, in 109.35 consultation with the commissioners of the Department of 109.36 Corrections and the Minnesota Housing Finance Agency, counties, 110.1 providers and funders of supportive housing and services, shall 110.2 develop application requirements and make funds available 110.3 according to this section, with the goal of providing maximum 110.4 flexibility in program design. 110.5 Subd. 3. [DEFINITIONS.] For purposes of this section, the 110.6 following terms have the meanings given: 110.7 (1) "long-term homelessness" means lacking a permanent 110.8 place to live continuously for one year or more or at least four 110.9 times in the past three years; and 110.10 (2) "household" means an individual, family, or 110.11 unaccompanied minor experiencing long-term homelessness. 110.12 Subd. 4. [COUNTY ELIGIBILITY.] Counties are eligible for 110.13 funding under this section. Priority will be given to proposals 110.14 submitted on behalf of multicounty partnerships. 110.15 Subd. 5. [CONTENT OF PROPOSALS.] Proposals will be 110.16 evaluated on the extent to which they: 110.17 (1) include partnerships with providers of services or 110.18 other partners; 110.19 (2) develop strategies to enhance housing stability for 110.20 people experiencing long-term homelessness by integrating 110.21 services and establishing consistent services and procedures 110.22 across jurisdictions as appropriate; 110.23 (3) evidence a commitment to working with the commissioners 110.24 of human services, corrections, and the Housing Finance Agency 110.25 to identify appropriate households to be served under this 110.26 section and serve households as defined in subdivision 3. The 110.27 commissioner may also set criteria for serving people at 110.28 significant risk of experiencing long-term homelessness, with a 110.29 priority on serving families with minor children; 110.30 (4) ensure that projects make maximum use of mainstream 110.31 resources, including employment, social, and health services, 110.32 and leverage additional public and private resources in order to 110.33 serve the maximum number of households; 110.34 (5) demonstrate cost-effectiveness by identifying and 110.35 prioritizing those services most necessary for housing 110.36 stability; and 111.1 (6) evaluate and report on outcomes of the projects 111.2 according to protocols developed by the commissioner of human 111.3 services in cooperation with the commissioners of corrections 111.4 and the Housing Finance Agency. Evaluation would include 111.5 methods for determining the quality of the integrated service 111.6 approach, improvement in outcomes, cost savings, or reduction in 111.7 service disparities that may result. 111.8 Subd. 6. [OUTCOMES.] Projects will be selected to further 111.9 the following outcomes: 111.10 (1) reduce the number of Minnesota individuals and families 111.11 that experience long-term homelessness; 111.12 (2) increase the number of housing opportunities with 111.13 supportive services; 111.14 (3) develop integrated, cost-effective service models that 111.15 address the multiple barriers to obtaining housing stability 111.16 faced by people experiencing long-term homelessness, including 111.17 abuse, neglect, chemical dependency, disability, chronic health 111.18 problems, or other factors including ethnicity and race that may 111.19 result in poor outcomes or service disparities; 111.20 (4) encourage partnerships among counties, community 111.21 agencies, schools, and other providers so that the service 111.22 delivery system is seamless for people experiencing long-term 111.23 homelessness; 111.24 (5) increase employability, self-sufficiency, and other 111.25 social outcomes for individuals and families experiencing 111.26 long-term homelessness; and 111.27 (6) reduce inappropriate use of emergency health care, 111.28 shelter, chemical dependency, foster care, child protection, 111.29 corrections, and similar services used by people experiencing 111.30 long-term homelessness. 111.31 Subd. 7. [ELIGIBLE SERVICES.] Services eligible for 111.32 funding under this section are all services needed to maintain 111.33 households in permanent supportive housing, as determined by the 111.34 county or counties administering the project or projects. 111.35 Subd. 8. [FAMILIES EXPERIENCING LONG-TERM 111.36 HOMELESSNESS.] The commissioner, in consultation with the 112.1 commissioners of housing finance and corrections, shall assess 112.2 whether the definition of long-term homelessness impacts the 112.3 ability of families with minor children experiencing 112.4 homelessness to obtain services necessary to support housing 112.5 stability. 112.6 Sec. 25. Minnesota Statutes 2004, section 260.835, is 112.7 amended to read: 112.8 260.835 [AMERICAN INDIAN CHILD WELFARE ADVISORY COUNCIL.] 112.9 Subdivision 1. [CREATION.] The commissioner shall appoint 112.10 an American Indian Advisory Council to help formulate policies 112.11 and procedures relating to Indian child welfare services and to 112.12 make recommendations regarding approval of grants provided under 112.13 section 260.785, subdivisions 1, 2, and 3. The council shall 112.14 consist of 17 members appointed by the commissioner and must 112.15 include representatives of each of the 11 Minnesota reservations 112.16 who are authorized by tribal resolution, one representative from 112.17 the Duluth Urban Indian Community, three representatives from 112.18 the Minneapolis Urban Indian Community, and two representatives 112.19 from the St. Paul Urban Indian Community. Representatives from 112.20 the urban Indian communities must be selected through an open 112.21 appointments process under section 15.0597. The terms, 112.22 compensation, and removal of American Indian Child Welfare 112.23 Advisory Council members shall be as provided in section 15.059. 112.24 Subd. 2. [EXPIRATION.] Notwithstanding section 15.059, 112.25 subdivision 5, the American Indian Child Welfare Advisory 112.26 Council expires June 30, 2008. 112.27 [EFFECTIVE DATE.] This section is effective retroactively 112.28 from June 30, 2003. 112.29 Sec. 26. [STUDY OF ECONOMIC IMPACT OF CHILD SUPPORT 112.30 GUIDELINES.] 112.31 Subdivision 1. [STUDY.] The commissioner of human services 112.32 shall employ a private provider of policy studies to conduct an 112.33 economic analysis of the child support guidelines contained in 112.34 this act to evaluate: 112.35 (1) whether the guidelines fairly represent the cost of 112.36 raising children for the respective parental income levels, 113.1 excluding medical support, child care, and education costs; 113.2 (2) whether the standards for medical support and child 113.3 care costs fairly apportion those costs between the parents, 113.4 after consideration of the respective tax benefits; and 113.5 (3) whether the guidelines fairly reflect each parent's 113.6 ability to provide for basic housing needs. 113.7 The results of the study shall be completed by no later 113.8 than January 30, 2006. The private provider must have 113.9 experience in evaluating or establishing child support 113.10 guidelines, using the income shares approach, in other states. 113.11 Sec. 27. [REPEALER.] 113.12 (a) Laws 2003, First Special Session chapter 14, article 9, 113.13 section 34, is repealed. 113.14 (b) Minnesota Statutes 2004, sections 119B.074 and 256D.54, 113.15 subdivision 3, are repealed. 113.16 (c) Minnesota Rules, parts 9500.1254 and 9500.1256, are 113.17 repealed. 113.18 ARTICLE 6 113.19 JOBS AND ECONOMIC DEVELOPMENT SUPPLEMENTAL APPROPRIATIONS 113.20 Section 1. [JOBS AND ECONOMIC DEVELOPMENT SUPPLEMENTAL 113.21 APPROPRIATIONS.] 113.22 The appropriations in this article are available after 113.23 House File No. 1664 is passed by the house of representatives 113.24 and are added to the appropriations in article 1. 113.25 The shown sums in the columns marked "APPROPRIATIONS" are 113.26 appropriated from the general fund, or another named fund, to 113.27 the agencies and for the purposes specified in this article, to 113.28 be available for the fiscal years indicated for each purpose. 113.29 The figures "2006" and "2007," where used in this article, mean 113.30 that the appropriation or appropriations listed under them are 113.31 available for the fiscal year ending June 30, 2006, or June 30, 113.32 2007, respectively. The term "first year" means the fiscal year 113.33 ending June 30, 2006, and the term "second year" means the 113.34 fiscal year ending June 30, 2007. 113.35 Sec. 2. EMPLOYMENT AND ECONOMIC DEVELOPMENT 113.36 Subdivision 1. Total 114.1 Appropriation $ 2,921,000 $ 2,921,000 114.2 The amounts that may be spent from this 114.3 appropriation for each program are 114.4 specified in the following subdivisions. 114.5 Subd. 2. Workforce Partnerships 500,000 500,000 114.6 $500,000 the first year and $500,000 114.7 the second year are for a grant under 114.8 Minnesota Statutes, section 116J.8747, 114.9 to Twin Cities RISE! to provide 114.10 training to hard-to-train individuals. 114.11 Subd. 3. Workforce Services 2,421,000 2,421,000 114.12 (a) $1,600,000 the first year and 114.13 $1,600,000 the second year are for 114.14 extended employment services for 114.15 persons with severe disabilities or 114.16 related conditions under Minnesota 114.17 Statutes, section 268A.15. 114.18 (b) $821,000 the first year and 114.19 $821,000 the second year are for grants 114.20 for programs that provide employment 114.21 support to persons with mental illness 114.22 under Minnesota Statutes, sections 114.23 268A.13 and 268A.14. Up to $43,000 114.24 each year may be used for 114.25 administrative and salary expenses. 114.26 Sec. 3. HOUSING FINANCE AGENCY 6,500,000 114.27 This appropriation is available in the 114.28 second year and is for the economic 114.29 development and housing challenge 114.30 program under Minnesota Statutes, 114.31 section 462A.33. This is a onetime 114.32 appropriation and is not to be added to 114.33 the department's base. 114.34 ARTICLE 7 114.35 HUMAN SERVICES SUPPLEMENTAL APPROPRIATIONS 114.36 Section 1. [HUMAN SERVICES SUPPLEMENTAL APPROPRIATIONS.] 114.37 The appropriations in this article are available after 114.38 House File No. 1664 is passed by the house of representatives 114.39 and are added to the appropriations in article 3. 114.40 The shown sums in the columns marked "APPROPRIATIONS" are 114.41 appropriated from the general fund, or another named fund, to 114.42 the agencies and for the purposes specified in this article, to 114.43 be available for the fiscal years indicated for each purpose. 114.44 The figures "2006" and "2007," where used in this article, mean 114.45 that the appropriation or appropriations listed under them are 114.46 available for the fiscal year ending June 30, 2006, or June 30, 114.47 2007, respectively. The term "first year" means the fiscal year 114.48 ending June 30, 2006, and the term "second year" means the 115.1 fiscal year ending June 30, 2007. 115.2 Sec. 2. CHILDREN AND ECONOMIC ASSISTANCE GRANTS 115.3 Subdivision 1. Total 115.4 Appropriation $ 1,403,000 $ 1,255,000 115.5 Subd. 2. Child Care Assistance 115.6 Provider Reimbursement Rate Grant Program 115.7 $1,403,000 the first year and 115.8 $1,255,000 the second year are 115.9 appropriated from the general fund for 115.10 the child care assistance provider 115.11 reimbursement rate grant program under 115.12 section 3. This is a onetime 115.13 appropriation and is not to be added to 115.14 the department's base. 115.15 Sec. 3. [CHILD CARE ASSISTANCE PROVIDER REIMBURSEMENT RATE 115.16 GRANT PROGRAM.] 115.17 Subdivision 1. [PURPOSE AND ESTABLISHMENT.] The 115.18 commissioner of human services shall establish a child care 115.19 assistance provider reimbursement rate grant program for the 115.20 purpose of allowing certain providers to be reimbursed at rates 115.21 above the 75th percentile of the market rate as established by 115.22 the most current market rate survey under Minnesota Statutes, 115.23 section 119B.13, and published by the Department of Human 115.24 Services. These providers must be reimbursed at a rate more 115.25 closely aligned with the actual cost of care in order to 115.26 maintain child care capacity in nonmetropolitan areas of 115.27 Minnesota. For purposes of this section, "nonmetropolitan" 115.28 means all Minnesota counties with the exceptions of Anoka, 115.29 Carver, Dakota, Hennepin, Olmsted, Ramsey, St. Louis, Scott, 115.30 Stearns, and Washington. 115.31 Subd. 2. [PROVIDER ELIGIBILITY.] (a) A nonmetropolitan 115.32 child care center providing legal child care services as defined 115.33 under Minnesota Statutes, section 245A.03, is eligible for the 115.34 grant program established under this section if the center or 115.35 facility is limited to reimbursement at or less than $160 per 115.36 week for any age category, as published by the Department of 115.37 Human Services, for services provided to families receiving 115.38 child care assistance under Minnesota Statutes, chapter 119B. 115.39 (b) A nonmetropolitan licensed family child care home 115.40 providing legal child care services as defined under Minnesota 116.1 Statutes, section 245A.03, is eligible for the grant program 116.2 established under this section if the individual is limited to 116.3 reimbursement at or less than $115 per week for any age 116.4 category, as published by the Department of Human Services, for 116.5 services provided to families receiving child care assistance 116.6 under Minnesota Statutes, chapter 119B. 116.7 Subd. 3. [APPLICATION PROCEDURE.] Child care providers may 116.8 apply to the commissioner of human services, or the 116.9 commissioner's designee, for the child care assistance provider 116.10 reimbursement rate grant program on the forms and according to 116.11 the timelines established by the commissioner. The 116.12 commissioner, or the commissioner's designee, has 30 calendar 116.13 days from the date of receipt of an application to notify the 116.14 applicant of the eligibility determination. 116.15 Subd. 4. [PROVIDER REIMBURSEMENT RATES.] Notwithstanding 116.16 Minnesota Statutes, section 119B.13, subdivision 1, and Laws 116.17 2003, First Special Session chapter 14, article 9, section 34, 116.18 and to the extent funds are available, the commissioner of human 116.19 services shall reimburse child care providers who the 116.20 commissioner or the commissioner's designee has determined 116.21 eligible under subdivision 2, for care provided to families 116.22 receiving child care assistance under Minnesota Statutes, 116.23 chapter 119B, at a rate that is the lesser of (1) the rate 116.24 charged to private pay families, or (2) the 100th percentile of 116.25 the most current market rate survey. Notwithstanding any law or 116.26 rule to the contrary, providers under this section may be 116.27 reimbursed on a half-day basis. Grant program reimbursements to 116.28 providers under this section may be made retroactive to the day 116.29 following final enactment. 116.30 Subd. 5. [SUNSET DATE.] The grant program under this 116.31 section sunsets on June 30, 2007. 116.32 ARTICLE 8 116.33 REGULATION OF SERVICE CONTRACTS 116.34 Section 1. [59B.01] [SCOPE AND PURPOSE.] 116.35 (a) The purpose of this chapter is to create a legal 116.36 framework within which service contracts may be sold in this 117.1 state. 117.2 (b) The following are exempt from this chapter: 117.3 (1) warranties; 117.4 (2) maintenance agreements; 117.5 (3) warranties, service contracts, or maintenance 117.6 agreements offered by public utilities or their affiliates; 117.7 (4) service contracts sold or offered for sale to persons 117.8 other than consumers; 117.9 (5) service contracts on tangible property where the 117.10 tangible property for which the service contract is sold has a 117.11 purchase price of $250 or less exclusive of sales tax; 117.12 (6) motor vehicle service contracts as defined in section 117.13 65B.29, subdivision 1, paragraph (1); and 117.14 (7) motor club membership contracts that typically provide 117.15 roadside assistance services to motorists stranded for reasons 117.16 that include, but are not limited to, mechanical breakdown or 117.17 adverse road conditions. 117.18 (c) The types of agreements referred to in paragraph (b) 117.19 are not subject to chapters 60A to 79A, except as otherwise 117.20 specifically provided by law. 117.21 Sec. 2. [59B.02] [DEFINITIONS.] 117.22 Subdivision 1. [TERMS.] For the purposes of this chapter, 117.23 the terms defined in this section have the meanings given them. 117.24 Subd. 2. [ADMINISTRATOR.] "Administrator" means the person 117.25 who is responsible for the administration of the service 117.26 contracts or the service contracts plan or who is responsible 117.27 for any filings required by this chapter. 117.28 Subd. 3. [COMMISSIONER.] "Commissioner" means the 117.29 commissioner of commerce. 117.30 Subd. 4. [CONSUMER.] "Consumer" means a natural person who 117.31 buys, other than for purposes of resale, any tangible personal 117.32 property that is distributed in commerce and that is normally 117.33 used for personal, family, or household purposes and not for 117.34 business or research purposes. 117.35 Subd. 5. [MAINTENANCE AGREEMENT.] "Maintenance agreement" 117.36 means a contract of limited duration that provides for scheduled 118.1 maintenance only. 118.2 Subd. 6. [PERSON.] "Person" means an individual, 118.3 partnership, corporation, incorporated or unincorporated 118.4 association, joint stock company, reciprocal, syndicate, or any 118.5 similar entity or combination of entities acting in concert. 118.6 Subd. 7. [PREMIUM.] "Premium" means the consideration paid 118.7 to an insurer for a reimbursement insurance policy. 118.8 Subd. 8. [PROVIDER.] "Provider" means a person who is 118.9 contractually obligated to the service contract holder under the 118.10 terms of the service contract. 118.11 Subd. 9. [PROVIDER FEE.] "Provider fee" means the 118.12 consideration paid for a service contract. 118.13 Subd. 10. [REIMBURSEMENT INSURANCE POLICY.] "Reimbursement 118.14 insurance policy" means a policy of insurance issued to a 118.15 provider to either provide reimbursement to the provider under 118.16 the terms of the insured service contracts issued or sold by the 118.17 provider or, in the event of the provider's nonperformance, to 118.18 pay on behalf of the provider all covered contractual 118.19 obligations incurred by the provider under the terms of the 118.20 insured service contracts issued or sold by the provider. 118.21 Subd. 11. [SERVICE CONTRACT.] "Service contract" means a 118.22 contract or agreement for a separately stated consideration for 118.23 a specific duration to perform the repair, replacement, or 118.24 maintenance of property or indemnification for repair, 118.25 replacement, or maintenance, for the operational or structural 118.26 failure due to a defect in materials, workmanship, or normal 118.27 wear and tear, with or without additional provisions for 118.28 incidental payment of indemnity under limited circumstances. 118.29 Service contracts may provide for the repair, replacement, or 118.30 maintenance of property for damage resulting from power surges 118.31 and accidental damage from handling. 118.32 Subd. 12. [SERVICE CONTRACT HOLDER OR CONTRACT 118.33 HOLDER.] "Service contract holder" or "contract holder" means a 118.34 person who is the purchaser or holder of a service contract. 118.35 Subd. 13. [WARRANTY.] "Warranty" means a warranty made 118.36 solely by the manufacturer, importer, or seller of property or 119.1 services without consideration, that is not negotiated or 119.2 separated from the sale of the product, and is incidental to the 119.3 sale of the product, that guarantees indemnity for defective 119.4 parts, mechanical or electrical breakdown, labor, or other 119.5 remedial measures, such as repair or replacement of the property 119.6 or repetition of services. 119.7 Sec. 3. [59B.03] [REQUIREMENTS FOR TRANSACTING BUSINESS.] 119.8 Subdivision 1. [APPOINTMENT OF ADMINISTRATOR.] A provider 119.9 may, but is not required to, appoint an administrator or other 119.10 designee to be responsible for any or all of the administration 119.11 of service contracts and compliance with this chapter. 119.12 Subd. 2. [CONTRACT COPIES AND RECEIPTS.] Service contracts 119.13 must not be issued, sold, or offered for sale in this state 119.14 unless the provider has: 119.15 (1) provided a receipt for, or other written evidence of, 119.16 the purchase of the service contract to the contract holder; 119.17 (2) provided a copy of the service contract to the service 119.18 contract holder within a reasonable period of time from the date 119.19 of purchase; and 119.20 (3) complied with this chapter. 119.21 Subd. 3. [REGISTRATION.] Each provider of service 119.22 contracts sold in this state shall file a registration with the 119.23 commissioner on a form prescribed by the commissioner. Each 119.24 provider shall pay to the commissioner a fee in the amount of 119.25 $750 annually. 119.26 Subd. 4. [FINANCIAL REQUIREMENTS.] In order to ensure the 119.27 faithful performance of a provider's obligations to its contract 119.28 holders, each provider is responsible for complying with the 119.29 requirements of one of the following: 119.30 (1) insure all service contracts under a reimbursement 119.31 insurance policy issued by an insurer authorized to transact 119.32 insurance in this state, a risk retention group, as that term is 119.33 defined in United States Code, title 15, section 3901(A)(4), as 119.34 long as that risk retention group is in full compliance with the 119.35 federal Liability Risk Retention Act of 1986, United States 119.36 Code, title 15, section 3901, et al., or issued pursuant to 120.1 sections 60A.195 to 60A.209, and either: 120.2 (i) the insurer or risk retention group shall, at the time 120.3 the policy is filed with the commissioner, and continuously 120.4 thereafter, maintain surplus as to policyholders and paid-in 120.5 capital of at least $15,000,000, and annually file audited 120.6 financial statements with the commissioner; or 120.7 (ii) the commissioner may authorize an insurer or risk 120.8 retention group that has surplus as to policyholders and paid-in 120.9 capital of less than $15,000,000 but at least equal to 120.10 $10,000,000 to issue the insurance required by this section if 120.11 the insurer or risk retention group demonstrates to the 120.12 satisfaction of the commissioner that the company maintains a 120.13 ratio of direct written premiums, wherever written, to surplus 120.14 as to policyholders and paid-in capital of not greater than 3 to 120.15 1; or 120.16 (2)(i) maintain a funded reserve account for obligations 120.17 under contracts issued and outstanding in this state. The 120.18 reserves must not be less than 40 percent of gross consideration 120.19 received, less claims paid, on the sale of the service contract 120.20 for all in-force contracts. The reserve account is subject to 120.21 examination and review by the commissioner; and 120.22 (ii) place in trust with the commissioner a financial 120.23 security deposit, having a value of not less than five percent 120.24 of the gross consideration received, less claims paid, on the 120.25 sale of the service contract for all service contracts issued 120.26 and in force, but not less than $25,000, consisting of one of 120.27 the following: 120.28 (A) a surety bond issued by an authorized surety; 120.29 (B) securities of the type eligible for deposit by 120.30 authorized insurers in this state; 120.31 (C) cash; 120.32 (D) a letter of credit issued by a qualified financial 120.33 institution containing an evergreen clause which prevents the 120.34 expiration of the letter without due notice from the issuer; or 120.35 (E) another form of security prescribed by rules of the 120.36 commissioner; or 121.1 (3)(i) maintain, or its parent company maintain, a net 121.2 worth or stockholders' equity of $100,000,000; and 121.3 (ii) upon request, provide the commissioner with a copy of 121.4 the provider's or the provider's parent company's most recent 121.5 Form 10-K or Form 20-F filed with the Securities and Exchange 121.6 Commission (SEC) within the last calendar year, or if the 121.7 company does not file with the SEC, a copy of the company's 121.8 audited financial statements, which shows a net worth of the 121.9 provider or its parent company of at least $100,000,000. If the 121.10 provider's parent company's Form 10-K, Form 20-F, or audited 121.11 financial statements are filed to meet the provider's financial 121.12 stability requirement, then the parent company shall agree to 121.13 guarantee the obligations of the provider relating to service 121.14 contracts sold by the provider in this state. 121.15 Subd. 5. [RIGHT OF RETURN.] Service contracts must require 121.16 the provider to permit the service contract holder to return the 121.17 service contract within 20 days of the date the service contract 121.18 was mailed to the service contract holder or within ten days of 121.19 delivery if the service contract is delivered to the service 121.20 contract holder at the time of sale or within a longer time 121.21 period permitted under the service contract. Upon return of the 121.22 service contract to the provider within the applicable time 121.23 period, if no claim has been made under the service contract 121.24 before its return to the provider, the service contract is void 121.25 and the provider shall refund to the service contract holder, or 121.26 credit the account of the service contract holder, with the full 121.27 purchase price of the service contract. The right to void the 121.28 service contract provided in this paragraph is not transferable 121.29 and applies only to the original service contract purchaser, and 121.30 only if no claim has been made before its return to the 121.31 provider. A ten percent penalty per month must be added to a 121.32 refund that is not paid or credited within 45 days after return 121.33 of the service contract to the provider. 121.34 Subd. 6. [PREMIUM TAXES.] (a) Provider fees collected on 121.35 service contracts are not subject to premium taxes. 121.36 (b) Premiums for reimbursement insurance policies are 122.1 subject to applicable taxes. 122.2 Subd. 7. [LICENSING EXEMPTION.] Except for the 122.3 registration requirements in subdivision 3, providers and 122.4 related service contract sellers, administrators, and other 122.5 persons marketing, selling, or offering to sell service 122.6 contracts are exempt from any licensing requirements of this 122.7 state. 122.8 Subd. 8. [INSURANCE EXEMPTION.] The marketing, sale, 122.9 offering for sale, issuance, making, proposing to make, and 122.10 administration of service contracts by providers and related 122.11 service contract sellers, administrators, and other persons are 122.12 exempt from all other provisions of the insurance laws of this 122.13 state, except as provided in section 72A.20, subdivision 38. 122.14 Sec. 4. [59B.04] [REQUIRED DISCLOSURES; REIMBURSEMENT 122.15 INSURANCE POLICY.] 122.16 Subdivision 1. [RIGHT TO PAYMENT OR 122.17 REIMBURSEMENT.] Reimbursement insurance policies insuring 122.18 service contracts issued, sold, or offered for sale in this 122.19 state shall state that the insurer that issued the reimbursement 122.20 insurance policy shall either reimburse or pay on behalf of the 122.21 provider any covered sums the provider is legally obligated to 122.22 pay or, in the event of the provider's nonperformance, shall 122.23 provide the service which the provider is legally obligated to 122.24 perform according to the provider's contractual obligations 122.25 under the service contracts issued or sold by the provider. 122.26 Subd. 2. [RIGHT TO APPLY TO COMPANY.] In the event covered 122.27 service is not provided by the service contract provider within 122.28 60 days of proof of loss by the service contract holder, the 122.29 contract holder is entitled to apply directly to the 122.30 reimbursement insurance company. 122.31 Sec. 5. [59B.05] [REQUIRED DISCLOSURE; SERVICE CONTRACTS.] 122.32 Subdivision 1. [READABILITY AND GENERAL 122.33 DISCLOSURE.] Service contracts marketed, sold, offered for sale, 122.34 issued, made, proposed to be made, or administered in this state 122.35 must be written, printed, or typed in clear, understandable 122.36 language that is easy to read and must disclose the requirements 123.1 set forth in this section, as applicable. 123.2 Subd. 2. [IDENTITIES OF PARTIES.] Service contracts must 123.3 state the name and address of the provider, and must identify 123.4 any administrator if different from the provider, the service 123.5 contract seller, and the service contract holder to the extent 123.6 that the name of the service contract holder has been furnished 123.7 by the service contract holder. The identities of the parties 123.8 are not required to be preprinted on the service contract and 123.9 may be added to the service contract at the time of sale. 123.10 Subd. 3. [TOTAL PURCHASE PRICE AND SALES TERMS.] Service 123.11 contracts must state the total purchase price and the terms 123.12 under which the service contract is sold. The purchase price is 123.13 not required to be preprinted on the service contract and may be 123.14 negotiated at the time of sale with the service contract holder. 123.15 Subd. 4. [DEDUCTIBLES.] Service contracts must state the 123.16 existence of any deductible amount, if applicable. 123.17 Subd. 5. [COVERAGES, LIMITATIONS, AND EXCLUSIONS.] No 123.18 particular causes of loss or property are required to be 123.19 covered, but service contracts must specify the merchandise and 123.20 services to be provided and, with equal prominence, any 123.21 limitations, exceptions, or exclusions including, but not 123.22 limited to, any damage or breakdown not covered by the service 123.23 contract. 123.24 Subd. 6. [RESTRICTIONS ON TRANSFERABILITY.] Service 123.25 contracts must state any restrictions governing the 123.26 transferability of the service contract, if applicable. 123.27 Subd. 7. [CANCELLATION TERMS.] Service contracts must 123.28 state the terms, restrictions, or conditions governing 123.29 cancellation of the service contract prior to the termination or 123.30 expiration date of the service contract by either the provider 123.31 or the service contract holder. The provider of the service 123.32 contract shall mail a written notice to the contract holder at 123.33 the last known address of the service contract holder contained 123.34 in the records of the provider at least 15 days before 123.35 cancellation by the provider. Five days' notice is required if 123.36 the reason for cancellation is nonpayment of the provider fee, a 124.1 material misrepresentation by the service contract holder to the 124.2 provider, or a substantial breach of duties by the service 124.3 contract holder relating to the covered product or its use. The 124.4 notice must state the effective date of the cancellation and the 124.5 reason for the cancellation. 124.6 Subd. 8. [DUTIES OF CONTRACT HOLDER.] Service contracts 124.7 must set forth all of the obligations and duties of the service 124.8 contract holder, such as the duty to protect against any further 124.9 damage and any requirement to follow the owner's manual. 124.10 Subd. 9. [EXCLUSIONS; CONSEQUENTIAL DAMAGES AND 124.11 PREEXISTING CONDITIONS.] Service contracts may exclude coverage 124.12 for consequential damages or preexisting conditions. These 124.13 exclusions, if applicable, must be stated in the contract. 124.14 Sec. 6. [59B.06] [ADDITIONAL REQUIRED DISCLOSURE; SERVICE 124.15 CONTRACTS.] 124.16 Subdivision 1. [INSURANCE DISCLOSURE.] Service contracts 124.17 insured under a reimbursement insurance policy pursuant to 124.18 section 59B.03, subdivision 4, clause (1), must contain a 124.19 statement in substantially the following form: "Obligations of 124.20 the provider under this service contract are insured under a 124.21 service contract reimbursement insurance policy." The service 124.22 contract must also state the name and address of the insurer. 124.23 Subd. 2. [DISCLOSURE OF NO INSURANCE.] Service contracts 124.24 not insured under a reimbursement insurance policy pursuant to 124.25 section 59B.03, subdivision 4, clause (1), must contain a 124.26 statement in substantially the following form: "Obligations of 124.27 the provider under this service contract are backed by the full 124.28 faith and credit of the provider." 124.29 Sec. 7. [59B.07] [PROHIBITED ACTS.] 124.30 Subdivision 1. [DECEPTIVE NAMES.] A provider shall not use 124.31 in its name the words insurance, casualty, surety, mutual, or 124.32 any other words descriptive of the insurance, casualty, or 124.33 surety business; or a name deceptively similar to the name or 124.34 description of any insurance or surety corporation, or to the 124.35 name of any other provider. The word "guaranty" or similar word 124.36 may be used by a provider. This section does not apply to a 125.1 company that was using any of the prohibited language in its 125.2 name before the effective date of this chapter. However, a 125.3 company using the prohibited language in its name shall include 125.4 in its service contracts a statement in substantially the 125.5 following form: "This agreement is not an insurance contract." 125.6 Subd. 2. [FALSE OR MISLEADING STATEMENTS.] A provider or 125.7 its representative shall not in its service contracts, 125.8 literature, or otherwise make, permit, or cause to be made any 125.9 false or misleading statement or omit any material statement 125.10 that would be considered misleading if omitted. 125.11 Subd. 3. [REQUIRED PURCHASE.] A person, such as a bank, 125.12 savings association, lending institution, manufacturer, or 125.13 seller of any product shall not require the purchase of a 125.14 service contract as a condition of a loan or a condition for the 125.15 sale of any property. 125.16 Sec. 8. [59B.08] [RECORD-KEEPING REQUIREMENTS.] 125.17 Subdivision 1. [GENERALLY.] The provider shall keep 125.18 accurate accounts, books, and records concerning transactions 125.19 regulated under this chapter. 125.20 The provider's accounts, books, and records include the 125.21 following: 125.22 (1) copies of each type of service contracts sold; 125.23 (2) the name and address of each service contract holder to 125.24 the extent that the name and address have been furnished by the 125.25 service contract holder; 125.26 (3) a list of the locations where service contracts are 125.27 marketed, sold, or offered for sale; and 125.28 (4) written claims files which shall contain sufficient 125.29 information for the commissioner to ascertain whether a claim 125.30 has been adjusted in conformity with the terms of the service 125.31 contract, including at least the dates and description of claims 125.32 related to the service contracts. 125.33 Subd. 2. [RETENTION.] (a) Except as provided in paragraph 125.34 (b), the provider shall retain all records required to be 125.35 maintained by this section for at least three years after the 125.36 specified period of coverage has expired. 126.1 (b) A provider discontinuing business in this state shall 126.2 maintain its records until it furnishes the commissioner 126.3 satisfactory proof that it has discharged all obligations to 126.4 contract holders in this state. 126.5 Subd. 3. [MEDIUM.] The records required by this chapter 126.6 may be, but are not required to be, maintained on a computer 126.7 disk or other record-keeping technology. If the records are 126.8 maintained in other than hard copy, the records must be capable 126.9 of duplication to legible hard copy at the request of the 126.10 commissioner. 126.11 Sec. 9. [59B.09] [TERMINATION OF REIMBURSEMENT INSURANCE 126.12 POLICY.] 126.13 An insurer that issued a reimbursement insurance policy may 126.14 not terminate the policy unless the insurer mails or delivers 126.15 written notice of the termination to the commissioner at least 126.16 30 days before the effective date of termination. The 126.17 termination of a reimbursement insurance policy does not reduce 126.18 the issuer's responsibility for service contracts issued by 126.19 providers before the date of the termination. 126.20 Sec. 10. [59B.10] [OBLIGATION OF REIMBURSEMENT INSURANCE 126.21 POLICY INSURERS.] 126.22 Insurers issuing reimbursement insurance to providers are 126.23 deemed to have received the premiums for the insurance upon the 126.24 payment of provider fees by consumers for service contracts 126.25 issued by the insured providers. 126.26 Nothing in this chapter prevents or limits the right of an 126.27 insurer which issued a reimbursement insurance policy to seek 126.28 indemnification or subrogation against a provider if the issuer 126.29 pays or is obligated to pay the service contract holder sums 126.30 that the provider was obligated to pay pursuant to the 126.31 provisions of the service contract. 126.32 Sec. 11. [59B.11] [SEVERABILITY PROVISION.] 126.33 If any provision of this chapter or the application of the 126.34 provision to any person or circumstances are held invalid, the 126.35 remainder of this chapter and the application of the provision 126.36 to person or circumstances other than those as to which it is 127.1 held invalid, must not be affected. 127.2 Sec. 12. Minnesota Statutes 2004, section 72A.20, is 127.3 amended by adding a subdivision to read: 127.4 Subd. 38. [UNFAIR CLAIMS SERVICE; SERVICE CONTRACTS.] No 127.5 person shall, in connection with a service contract regulated 127.6 under chapter 59B: 127.7 (1) attempt to settle claims on the basis of an application 127.8 or any other material document which was altered without notice 127.9 to, or knowledge or consent of, the service contract holder; 127.10 (2) make a material misrepresentation to the warranty 127.11 holder for the purpose and with the intent of effecting 127.12 settlement of the claims, loss, or damage under the contract on 127.13 less favorable terms than those provided in, and contemplated 127.14 by, the contract; or 127.15 (3) commit or perform with such frequency as to indicate a 127.16 general business practice any of the following practices: 127.17 (i) failure to properly investigate claims; 127.18 (ii) misrepresentation of pertinent facts or contract 127.19 provisions relating to coverages at issue; 127.20 (iii) failure to acknowledge and act upon communications 127.21 within a reasonable time with respect to claims; 127.22 (iv) denial of claims without conducting reasonable 127.23 investigations based upon available information; 127.24 (v) failure to affirm or deny coverage of claims upon 127.25 written request of the warranty holder within a reasonable time 127.26 after proof-of-loss statements have been completed; or 127.27 (vi) failure to timely provide a reasonable explanation to 127.28 the warranty holder of the basis in the contract in relation to 127.29 the facts or applicable law for denial of a claim or for the 127.30 offer of a compromise settlement. 127.31 Sec. 13. [EFFECTIVE DATE.] 127.32 Sections 1 to 12 are effective January 1, 2006, and apply 127.33 to service contracts issued on or after that date. A provider 127.34 transacting business in this state on or before the date of the 127.35 enactment of this chapter, which submits an application for 127.36 registration as a provider under Minnesota Statutes, section 128.1 59B.03, subdivision 3, within 30 days after the commissioner 128.2 makes the application available, may continue to transact 128.3 business in this state until final agency action is taken by the 128.4 commissioner regarding the registration application and all 128.5 rights to administrative and judicial review related to that 128.6 final agency action have been exhausted or have expired. 128.7 ARTICLE 9 128.8 SUPPLEMENTAL APPROPRIATIONS 128.9 Section 1. [SUPPLEMENTAL APPROPRIATIONS.] 128.10 The provisions in this article are effective after H.F. No. 128.11 2427 is passed by the house of representatives and are added to 128.12 the appropriations in article 3. 128.13 Sec. 2. [AMENDMENT.] 128.14 H.F. No. 2427 is amended on page 2, line 5, by deleting 128.15 ".00014" and inserting ".000112" 128.16 Sec. 3. Minnesota Statutes 2004, section 256K.35, is 128.17 amended by adding a subdivision to read: 128.18 Subd. 5. [APPROPRIATION.] An amount equal to the proceeds 128.19 of the deed tax under section 287.21, subdivision 1, paragraph 128.20 (b), clause (3), on .000028 of the net consideration is 128.21 appropriated from the general fund to the commissioner of human 128.22 services for at risk youth out-of-wedlock pregnancy prevention 128.23 grants under this section. A minimum of 35 percent of these 128.24 grant funds must be awarded to eligible applicants located 128.25 outside of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 128.26 Washington Counties.