1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             economic development, housing, and certain agencies of 
  1.4             state government; establishing and modifying programs; 
  1.5             transferring certain duties and funds; establishing an 
  1.6             account; consolidating housing programs; regulating 
  1.7             activities and practices; modifying fees; making 
  1.8             conforming changes; requiring reports; revising 
  1.9             certain provisions involving state regulation of 
  1.10            private health coverage; transferring certain 
  1.11            regulatory control; establishing requirements for 
  1.12            managed care plans; codifying reorganization order No. 
  1.13            181; transferring the remaining duties of the 
  1.14            commissioner of public service to the commissioner of 
  1.15            commerce; instructing the revisor to change certain 
  1.16            terms; modifying provisions of the Minnesota 
  1.17            Electrical Act; providing for power limited technician 
  1.18            licensing; amending Minnesota Statutes 2000, sections 
  1.19            3C.12, subdivision 2; 13.679; 15.01; 15.06, 
  1.20            subdivision 1; 15A.0815, subdivision 2; 16B.32, 
  1.21            subdivision 2; 16B.335, subdivision 4; 16B.56, 
  1.22            subdivision 1; 16B.76, subdivision 1; 17.86, 
  1.23            subdivision 3; 18.024, subdivision 1; 43A.08, 
  1.24            subdivision 1a; 45.012; 62A.021, subdivision 1; 
  1.25            62A.041, subdivisions 1, 2; 62A.042; 62A.043, 
  1.26            subdivision 1; 62A.105; 62A.14; 62A.149, subdivision 
  1.27            1; 62A.15, subdivision 1; 62A.152, subdivision 1; 
  1.28            62A.153; 62A.20; 62A.21; 62A.615; 62A.616; 62A.65, 
  1.29            subdivision 5; 62D.02, subdivisions 3, 8; 62D.12, 
  1.30            subdivisions 1, 1a; 62D.15, subdivision 1; 62D.24; 
  1.31            62E.05, subdivision 2; 62E.11, subdivision 13; 62E.14, 
  1.32            subdivision 6; 62E.16; 62J.041, subdivision 4; 
  1.33            62J.701; 62J.74, subdivisions 1, 2; 62J.75; 62L.02, 
  1.34            subdivision 8; 62L.05, subdivision 12; 62L.08, 
  1.35            subdivisions 10, 11; 62L.09, subdivision 3; 62L.10, 
  1.36            subdivision 4; 62L.11, subdivision 2; 62L.12, 
  1.37            subdivision 2; 62M.11; 62M.16; 62N.02, subdivision 4; 
  1.38            62N.26; 62Q.01, subdivision 2; 62Q.03, subdivision 5a; 
  1.39            62Q.07; 62Q.106; 62Q.22, subdivisions 2, 6, 7; 62Q.32; 
  1.40            62Q.33, subdivision 2; 62Q.49, subdivision 2; 62Q.51, 
  1.41            subdivision 3; 62Q.525, subdivision 3; 62Q.68, 
  1.42            subdivision 1; 62Q.69, subdivisions 2, 3; 62Q.71; 
  1.43            62Q.72; 62Q.73, subdivisions 3, 4, 5, 6; 62R.04, 
  1.44            subdivision 5; 62R.06, subdivision 1; 62T.01, 
  1.45            subdivision 4; 103F.325, subdivisions 2, 3; 115A.15, 
  1.46            subdivision 5; 116J.8731, subdivision 1; 116L.03, 
  2.1             subdivisions 2, 3, 5; 116O.06, subdivision 2; 123B.65, 
  2.2             subdivisions 1, 3, 5; 138.664, by adding a 
  2.3             subdivision; 161.45, subdivision 1; 168.61, 
  2.4             subdivision 1; 169.073; 174.03, subdivision 7; 181.30; 
  2.5             184.29; 184.30, subdivision 1; 184.38, subdivisions 6, 
  2.6             8, 9, 10, 11, 17, 18, 20; 184.41; 216A.01; 216A.035; 
  2.7             216A.036; 216A.05, subdivision 1; 216A.07, subdivision 
  2.8             1; 216A.08; 216A.085, subdivision 3; 216B.02, 
  2.9             subdivisions 1, 7, 8; 216B.16, subdivisions 1, 2, 6b, 
  2.10            15; 216B.162, subdivisions 7, 11; 216B.1675, 
  2.11            subdivision 9; 216B.241, subdivisions 1a, 1b, 2b; 
  2.12            216C.01, subdivisions 1, 2, 3; 216C.051, subdivision 
  2.13            6; 216C.06, by adding a subdivision; 216C.37, 
  2.14            subdivision 1; 216C.40, subdivision 4; 216C.41; 
  2.15            237.02; 237.075, subdivisions 2, 9; 237.082; 237.21; 
  2.16            237.30; 237.462, subdivision 6; 237.51, subdivisions 
  2.17            1, 5, 5a; 237.52, subdivisions 2, 4, 5; 237.54, 
  2.18            subdivision 2; 237.55; 237.59, subdivision 2; 237.768; 
  2.19            239.01; 239.10; 256B.692, subdivisions 2, 7; 257.34, 
  2.20            subdivision 1; 268.022, subdivisions 1, 2; 325E.11; 
  2.21            325E.115, subdivision 2; 326.01, subdivisions 5, 6g, 
  2.22            by adding subdivisions; 326.241, subdivision 1; 
  2.23            326.242, subdivisions 1, 2, 3, 5, 6, 6a, 6b, 6c, 7, 8, 
  2.24            10, 12, by adding a subdivision; 326.2421, 
  2.25            subdivisions 2, 9; 326.243; 326.244, subdivisions 1a, 
  2.26            2, 5, 6; 462A.01; 462A.03, subdivisions 1, 6, 10, by 
  2.27            adding a subdivision; 462A.04, subdivision 6; 462A.05, 
  2.28            subdivisions 14, 14a, 16, 22, 26; 462A.06, 
  2.29            subdivisions 1, 4; 462A.07, subdivisions 10, 12; 
  2.30            462A.073, subdivision 1; 462A.15; 462A.17, subdivision 
  2.31            3; 462A.20, subdivision 3; 462A.201, subdivisions 2, 
  2.32            6; 462A.204, subdivision 3; 462A.205, subdivisions 4, 
  2.33            4a; 462A.209; 462A.2091, subdivision 3; 462A.2093, 
  2.34            subdivision 1; 462A.2097; 462A.21, subdivisions 5, 10, 
  2.35            by adding subdivisions; 462A.222, subdivision 1a; 
  2.36            462A.24; 462A.33, subdivisions 1, 2, 3, 5, by adding a 
  2.37            subdivision; 484.50; Laws 1993, chapter 301, section 
  2.38            1, subdivision 4, as amended; Laws 1995, chapter 248, 
  2.39            article 12, section 2, as amended; article 13, section 
  2.40            2, subdivision 2, as amended; Laws 2000, chapter 488, 
  2.41            article 8, section 2, subdivision 6; proposing coding 
  2.42            for new law in Minnesota Statutes, chapters 116L; 
  2.43            122A; 462A; proposing coding for new law as Minnesota 
  2.44            Statutes, chapter 62U; repealing Minnesota Statutes 
  2.45            2000, sections 62A.049; 62A.21, subdivision 3; 62C.14, 
  2.46            subdivisions 5, 5a, 5b, 14; 62C.142; 62D.09, 
  2.47            subdivision 3; 62D.101; 62D.105; 62D.12, subdivision 
  2.48            19; 62D.123, subdivisions 2, 3, 4; 62D.124; 62Q.095, 
  2.49            subdivisions 1, 2, 3, 4, 6; 62Q.45; 138A.01; 138A.02; 
  2.50            138A.03; 138A.04; 138A.05; 138A.06; 184.22, 
  2.51            subdivisions 2, 3, 4, 5; 184.37, subdivision 2; 
  2.52            216A.06; 237.69, subdivision 3; 268.96; 268.975; 
  2.53            268.976; 268.9771; 268.978; 268.9781; 268.9782; 
  2.54            268.9783; 268.979; 268.98; 326.01, subdivision 6d; 
  2.55            326.2421, subdivisions 3, 4, 6, 8; 462A.201, 
  2.56            subdivision 4; 462A.207; 462A.209, subdivision 4; 
  2.57            462A.21, subdivision 17; 462A.221, subdivision 4; 
  2.58            462A.30, subdivision 2; 462A.33, subdivisions 4, 6, 7; 
  2.59            Minnesota Rules, parts 3800.3500, subpart 12; 
  2.60            4685.0801, subpart 7; 4685.1010; 4685.1300; 4685.1900; 
  2.61            4685.2000; 4685.2200, subpart 3; 4685.1105; 4685.1110; 
  2.62            4685.1115; 4685.1120; 4685.1125; 4685.1130. 
  2.63  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.64                             ARTICLE 1 
  2.65                           APPROPRIATIONS 
  2.66  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  3.1      The sums shown in the columns marked "APPROPRIATIONS" are 
  3.2   appropriated from the general fund, or another named fund, to 
  3.3   the agencies and for the purposes specified in this act, to be 
  3.4   available for the fiscal years indicated for each purpose.  The 
  3.5   figures "2002" and "2003," where used in this act, mean that the 
  3.6   appropriation or appropriations listed under them are available 
  3.7   for the year ending June 30, 2002, or June 30, 2003, 
  3.8   respectively.  The term "first year" means the fiscal year 
  3.9   ending June 30, 2002, and "second year" means the fiscal year 
  3.10  ending June 30, 2003. 
  3.11                          SUMMARY BY FUND
  3.12              2001          2002          2003           TOTAL
  3.13  General  $1,538,000   $187,082,502   $187,801,000   $376,421,502
  3.14  Assigned Risk 
  3.15  Plan     73,000,000        -0-            -0-         73,000,000
  3.16  Petroleum Tank
  3.17  Cleanup                  1,055,000      1,065,000      2,120,000
  3.18  Environmental Fund         700,000        700,000      1,400,000
  3.19  TANF Block Grant        15,050,000     14,450,000     29,500,000
  3.20  Workers' 
  3.21  Compensation            22,993,000     23,309,000     46,302,000
  3.22  Special Revenue  
  3.23  Fund                    14,267,000     15,482,000     29,749,000
  3.24  TOTAL   $74,538,000   $241,147,502   $242,807,000   $558,492,502
  3.25                                             APPROPRIATIONS 
  3.26                                         Available for the Year 
  3.27                                             Ending June 30 
  3.28                                            2002         2003 
  3.29  Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
  3.30  Subdivision 1.  Total       
  3.31  Appropriation                          41,237,502    41,809,000
  3.32                Summary by Fund
  3.33  General              28,762,502    28,227,000
  3.34  TANF Block Grant      1,600,000     1,000,000
  3.35  Environmental Fund      700,000       700,000 
  3.36  Special 
  3.37  Revenue Fund         10,175,000    11,882,000 
  3.38  The amounts that may be spent from this 
  3.39  appropriation for each program are 
  3.40  specified in the following subdivisions.
  3.41  Subd. 2.  Business and Community 
  3.42  Development                            12,497,502    11,513,000
  4.1                 Summary by Fund
  4.2   General              11,797,502    10,813,000
  4.3   Environmental Fund      700,000       700,000
  4.4   (a) $4,017,000 the first year and 
  4.5   $4,017,000 the second year are for 
  4.6   Minnesota investment fund grants.  Of 
  4.7   this amount, $150,000 the first year is 
  4.8   for a one-time grant to the city of 
  4.9   Ironton to be applied to planning for 
  4.10  the Cuyuna Range Technology Center, 
  4.11  which is available until June 30, 2003. 
  4.12  (b) $150,000 the first year and 
  4.13  $150,000 the second year are for 
  4.14  one-time grants to the rural policy and 
  4.15  development center at Minnesota State 
  4.16  University, Mankato.  The grant shall 
  4.17  be used for research and policy 
  4.18  analysis on emerging economic and 
  4.19  social issues in rural Minnesota, to 
  4.20  serve as a policy resource center for 
  4.21  rural Minnesota communities, to 
  4.22  encourage collaboration across higher 
  4.23  education institutions to provide 
  4.24  interdisciplinary team approaches to 
  4.25  research and problem solving in rural 
  4.26  communities, and to administer overall 
  4.27  operations of the center.  
  4.28  The grant shall be provided upon the 
  4.29  condition that each state-appropriated 
  4.30  dollar be matched with a 
  4.31  non-state-appropriated dollar.  
  4.32  Acceptable matching funds are 
  4.33  non-state-appropriated contributions 
  4.34  that the center has received after July 
  4.35  1, 2000, and have not been used to 
  4.36  match previous state grants. 
  4.37  (c) $155,000 the first year and 
  4.38  $155,000 the second year are for 
  4.39  one-time grants to the metropolitan 
  4.40  economic development association. 
  4.41  (d) $220,000 the first year and 
  4.42  $220,000 the second year are for 
  4.43  one-time grants to nonprofit 
  4.44  organizations to provide technical 
  4.45  assistance to individuals to support 
  4.46  the start-up and growth of 
  4.47  self-employment and microenterprise 
  4.48  businesses.  Eligible businesses are 
  4.49  microenterprises employing fewer than 
  4.50  five people plus the owner and 
  4.51  requiring under $35,000 or no capital 
  4.52  to start or expand the business.  
  4.53  Nonprofit organizations must apply for 
  4.54  grants under this subdivision following 
  4.55  procedures established by the 
  4.56  commissioner.  To be eligible for a 
  4.57  grant, an organization must demonstrate 
  4.58  to the commissioner that it has the 
  4.59  appropriate expertise.  The 
  4.60  commissioner shall give preference for 
  4.61  grants to organizations that target 
  4.62  nontraditional entrepreneurs such as 
  5.1   women, members of a minority, 
  5.2   low-income individuals, or persons 
  5.3   seeking work who are currently on or 
  5.4   recently removed from welfare 
  5.5   assistance or who have recently been 
  5.6   laid off from their previous employment.
  5.7   An application must include: 
  5.8   (1) the local need for microenterprise 
  5.9   support; 
  5.10  (2) proposed criteria for business 
  5.11  eligibility; 
  5.12  (3) a proposal for identifying and 
  5.13  serving eligible businesses; 
  5.14  (4) a description of technical 
  5.15  assistance to be provided to eligible 
  5.16  businesses; 
  5.17  (5) a proposal to coordinate technical 
  5.18  assistance with financial assistance; 
  5.19  (6) demonstration of an ability to 
  5.20  collaborate with other agencies 
  5.21  including educational and financial 
  5.22  institutions; and 
  5.23  (7) project goals identifying the 
  5.24  number of eligible businesses to be 
  5.25  assisted with the state funds awarded 
  5.26  under the grant. 
  5.27  Grant recipients must report to the 
  5.28  commissioner by February 1 in each of 
  5.29  the two years after the year of receipt 
  5.30  of the grant.  The report must detail 
  5.31  the number of customers served; the 
  5.32  number of businesses started, 
  5.33  stabilized, or expanded; the number of 
  5.34  jobs created and retained; and business 
  5.35  success rates.  The commissioner shall 
  5.36  report to the legislature on the 
  5.37  microenterprise entrepreneurial 
  5.38  assistance.  The report shall contain 
  5.39  an evaluation of the results. 
  5.40  (e) $35,000 the first year is for a 
  5.41  one-time grant for a pilot project 
  5.42  incubated by Blue Earth county named 
  5.43  the Rural Advanced Business 
  5.44  Facilitation Program.  The grant shall 
  5.45  be provided on the condition that the 
  5.46  funds be matched on a one-to-one basis 
  5.47  from nonstate sources. 
  5.48  (f) $500,000 the first year is for a 
  5.49  one-time grant to the city of St. Paul 
  5.50  for the planning, predesign, and design 
  5.51  of the new Roy Wilkins auditorium and 
  5.52  exhibit hall.  No further state 
  5.53  appropriation is authorized or given 
  5.54  special preference by this language. 
  5.55  (g) $150,000 the first year is for a 
  5.56  one-time grant to West Newton township 
  5.57  in Nicollet county to write down 
  5.58  individual assessments in St. George 
  5.59  for wastewater treatment improvements. 
  6.1   (h) $75,000 the first year is for a 
  6.2   one-time grant to Minnesota rural 
  6.3   partners.  This grant must be used only 
  6.4   for the Minnesota rural summit and 
  6.5   shall be provided on the condition that 
  6.6   funds be matched on a one-to-one basis 
  6.7   from nongovernmental sources. 
  6.8   (i) $262,502 the first year is for 
  6.9   transfer to the commissioner of public 
  6.10  safety for one-time grants to local 
  6.11  units of government for the applicant's 
  6.12  share of federal disaster assistance 
  6.13  funds under Minnesota Statutes, section 
  6.14  12.221, and other nonreimbursed costs.  
  6.15  The commissioner must award grants 
  6.16  based on the amount of the local share 
  6.17  in the signed grant agreement.  Grants 
  6.18  are limited to areas that sustained 
  6.19  damage from the tornado that struck 
  6.20  Yellow Medicine and Chippewa counties 
  6.21  on July 25, 2000. 
  6.22  (j) $50,000 in the first year and 
  6.23  $50,000 in the second year are 
  6.24  appropriated for one-time grants to the 
  6.25  Albert Lea Port Authority to remodel a 
  6.26  building in the Northaire Industrial 
  6.27  Park. 
  6.28  (k) Notwithstanding the provisions of 
  6.29  Minnesota Statutes, section 116J.565, 
  6.30  subdivision 1, paragraph (a), clauses 
  6.31  (1) through (5), priority for a 
  6.32  redevelopment grant under section 
  6.33  116J.564 may be given to the 33-acre 
  6.34  Trillium site that is part of the Trout 
  6.35  Brook greenway corridor in St. Paul. 
  6.36  (l) Notwithstanding the limit in 
  6.37  Minnesota Statutes, section 116J.8731, 
  6.38  subdivision 5, a grant of up to 
  6.39  $1,000,000 may be made to a political 
  6.40  subdivision that is chosen as a site 
  6.41  for a soybean oilseed processing 
  6.42  facility constructed by a 
  6.43  Minnesota-based cooperative.  The grant 
  6.44  may be used for site preparation, 
  6.45  predevelopment, and other 
  6.46  infrastructure improvements, including 
  6.47  public and private utility improvements 
  6.48  that are necessary for development of 
  6.49  the oilseed processing facility.  The 
  6.50  grant may be made any time until June 
  6.51  30, 2003. 
  6.52  Subd. 3.  Minnesota Trade Office 
  6.53       2,447,000      2,576,000
  6.54  Subd. 4.  Workforce Development   11,625,000     12,882,000
  6.55                Summary by Fund
  6.56  Special Revenue      10,025,000    11,882,000
  6.57  TANF Block Grant      1,600,000     1,000,000
  6.58  (a) $8,500,000 the first year and 
  6.59  $8,500,000 the second year are from the 
  6.60  workforce development fund for the job 
  7.1   skills partnership program. 
  7.2   (b) $400,000 the first year and 
  7.3   $400,000 the second year are for 
  7.4   one-time grants to Lifetrack Resources 
  7.5   for its immigrant/refugee collaborative 
  7.6   programs, including those related to 
  7.7   job-seeking skills and workplace 
  7.8   orientation, intensive job development, 
  7.9   functional work English, and on-site 
  7.10  job coaching.  Of this amount, $150,000 
  7.11  each year is from the workforce 
  7.12  development fund and $250,000 each year 
  7.13  is from the state's federal TANF block 
  7.14  grant under Title I of Public Law 
  7.15  Number 104-193 to the commissioner of 
  7.16  human services, to be transferred to 
  7.17  the commissioner of trade and economic 
  7.18  development. 
  7.19  (c) $300,000 the first year and 
  7.20  $300,000 the second year are from the 
  7.21  workforce development fund for one-time 
  7.22  grants to Twin Cities Rise.  Twin 
  7.23  Cities Rise must report to the 
  7.24  commissioner by February 1 of each 
  7.25  year.  The report must detail the 
  7.26  number of participants served, the cost 
  7.27  per participant, the number of 
  7.28  participants placed, and the number of 
  7.29  participants who otherwise successfully 
  7.30  completed the program. 
  7.31  (d) $600,000 the first year is for the 
  7.32  job skills partnership board to operate 
  7.33  the pilot program provided by article 
  7.34  2, section 30.  This is a one-time 
  7.35  appropriation and is from the state's 
  7.36  federal TANF block grant under Title I 
  7.37  of Public Law Number 104-193 to the 
  7.38  commissioner of human services, to be 
  7.39  transferred to the commissioner of 
  7.40  trade and economic development.  This 
  7.41  appropriation is available until June 
  7.42  30, 2003. 
  7.43  (e) $1,075,000 the first year and 
  7.44  $2,932,000 the second year are for 
  7.45  transfer to the higher education 
  7.46  services office for the loan repayment 
  7.47  program provided in article 2, section 
  7.48  7.  Of this amount, up to $75,000 each 
  7.49  year may be spent on administration.  
  7.50  The legislature intends that the 
  7.51  appropriation for this program shall be 
  7.52  $4,646,000 in fiscal year 2004, 
  7.53  $2,789,000 in fiscal year 2005, and 
  7.54  zero dollars each year thereafter, 
  7.55  subject to the same $75,000 
  7.56  administrative cost limitation.  All 
  7.57  appropriations for this program are 
  7.58  from the workforce development fund, 
  7.59  and any funds that are unused at the 
  7.60  conclusion of the program are returned 
  7.61  to the workforce development fund. 
  7.62  Subd. 5.  Office of Tourism 
  7.63      9,475,000       9,521,000 
  7.64  To develop maximum private sector 
  8.1   involvement in tourism, $3,500,000 the 
  8.2   first year and $3,500,000 the second 
  8.3   year of the amounts appropriated for 
  8.4   marketing activities are contingent on 
  8.5   receipt of an equal contribution from 
  8.6   nonstate sources that have been 
  8.7   certified by the commissioner.  Up to 
  8.8   one-half of the match may be given in 
  8.9   in-kind contributions. 
  8.10  In order to maximize marketing grant 
  8.11  benefits, the commissioner must give 
  8.12  priority for joint venture marketing 
  8.13  grants to organizations with year-round 
  8.14  sustained tourism activities.  For 
  8.15  programs and projects submitted, the 
  8.16  commissioner must give priority to 
  8.17  those that encompass two or more areas 
  8.18  or that attract nonresident travelers 
  8.19  to the state. 
  8.20  If an appropriation for either year for 
  8.21  grants is not sufficient, the 
  8.22  appropriation for the other year is 
  8.23  available for it. 
  8.24  The commissioner may use grant dollars 
  8.25  or the value of in-kind services to 
  8.26  provide the state contribution for the 
  8.27  partnership program. 
  8.28  Any unexpended money from general fund 
  8.29  appropriations made under this 
  8.30  subdivision does not cancel but must be 
  8.31  placed in a special advertising account 
  8.32  for use by the office of tourism to 
  8.33  purchase additional media. 
  8.34  Of this amount, $55,000 the first year 
  8.35  is for a one-time grant to the 
  8.36  Mississippi River parkway commission to 
  8.37  support the increased promotion of 
  8.38  tourism along the Great River Road. 
  8.39  Of this amount, $50,000 the first year 
  8.40  is for one-time grants to local units 
  8.41  of government, and state or local 
  8.42  nonprofit entities to plan and promote 
  8.43  the 2004 Grand Excursion.  A local 
  8.44  nonstate dollar-for-dollar match is 
  8.45  required. 
  8.46  Of this amount, $329,000 each year is 
  8.47  for the Minnesota film board.  This 
  8.48  appropriation is available only upon 
  8.49  receipt by the board of $1 in matching 
  8.50  contributions of money or in-kind from 
  8.51  nonstate sources for every $3 provided 
  8.52  by this appropriation.  No 
  8.53  appropriation is made for the film 
  8.54  production jobs fund established in 
  8.55  Laws 1999, chapter 223, article 1, 
  8.56  section 2, subdivision 4. 
  8.57  Of this amount, $61,000 the first year 
  8.58  is for a one-time grant to Koochiching 
  8.59  county for concept development and a 
  8.60  marketing feasibility study related to 
  8.61  the construction of a North American 
  8.62  bear center called the Big Bear Country 
  8.63  Education Center. 
  9.1   Subd. 6.  Information and Analysis 
  9.2        1,613,000      1,632,000 
  9.3   Subd. 7.  Administrative Support       3,580,000      3,685,000
  9.4                 Summary by Fund
  9.5   General               3,430,000     3,685,000
  9.6   Special Revenue Fund    150,000        -0- 
  9.7   $150,000 the first year is for the 
  9.8   transition team under article 2, 
  9.9   section 28.  This is a one-time 
  9.10  appropriation from the workforce 
  9.11  development fund and is not added to 
  9.12  the agency's budget base.  
  9.13  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    6,105,000      6,105,000
  9.14  On or before July 10, 2001, the 
  9.15  commissioner of finance shall transfer 
  9.16  $2,000,000 from the Minnesota 
  9.17  technology account created in Minnesota 
  9.18  Statutes, section 116O.12, to the 
  9.19  general fund. 
  9.20  Notwithstanding the provisions of 
  9.21  Minnesota Statutes, section 116O.12, 
  9.22  the legislature does not approve the 
  9.23  industry cluster initiative proposed by 
  9.24  Minnesota Technology, Inc., in the 
  9.25  governor's 2002-2003 biennial budget. 
  9.26  Sec. 4.  ECONOMIC SECURITY  
  9.27  Subdivision 1.  Total 
  9.28  Appropriation                         38,874,000     38,349,000
  9.29                Summary by Fund
  9.30  General              34,569,000    34,544,000
  9.31  TANF Block Grant      1,000,000     1,000,000
  9.32  Special  
  9.33  Revenue Fund          3,305,000     2,805,000
  9.34  Subd. 2.  Workforce Services         11,214,000     10,608,000
  9.35                Summary by Fund
  9.36  General               8,739,000     8,633,000
  9.37  TANF Block Grant        250,000       250,000
  9.38  Special Revenue       2,225,000     1,725,000
  9.39  (a) $750,000 the first year and 
  9.40  $750,000 the second year are from the 
  9.41  workforce development fund for one-time 
  9.42  grants for projects to provide services 
  9.43  to displaced homemakers.  "Displaced 
  9.44  homemaker" means an individual who was 
  9.45  a full-time homemaker for a substantial 
  9.46  number of years, derived the 
  9.47  substantial share of support from a 
  9.48  spouse, and no longer receives that 
  9.49  support due to separation or divorce 
  9.50  from, or the death or permanent 
 10.1   disability of, the spouse, or derived 
 10.2   the substantial share of support from 
 10.3   public assistance based on the presence 
 10.4   of dependents in the home and no longer 
 10.5   receives such support. 
 10.6   Grants from this appropriation shall be 
 10.7   based on a competitive grant process.  
 10.8   Eligible grant recipients include local 
 10.9   workforce boards and nonprofit job 
 10.10  training providers, including but not 
 10.11  limited to current providers of 
 10.12  services under the existing displaced 
 10.13  homemaker program.  Administrative 
 10.14  money from the state dislocated worker 
 10.15  program may be spent to administer this 
 10.16  program.  The commissioner of economic 
 10.17  security shall report to the 
 10.18  legislature by February 15, 2003, on 
 10.19  the outcome of grants under this 
 10.20  paragraph. 
 10.21  (b) $111,000 the first year is for 
 10.22  youth violence prevention programs to 
 10.23  match the federal juvenile 
 10.24  accountability incentive block grant.  
 10.25  This is a one-time appropriation and is 
 10.26  not added to the agency's budget base. 
 10.27  (c) No appropriation is made for the 
 10.28  youth curfew and truancy prevention 
 10.29  program established in Laws 1999, 
 10.30  chapter 216, article 1, section 20. 
 10.31  (d) $500,000 the first year is from the 
 10.32  workforce development fund for a 
 10.33  one-time grant to workforce service 
 10.34  area #6, to be used for employment and 
 10.35  training services targeted to 
 10.36  individuals who were affected by the 
 10.37  tornado that struck Yellow Medicine and 
 10.38  Chippewa counties on July 25, 2000, or 
 10.39  were affected by plant closings in the 
 10.40  same area. 
 10.41  (e) No appropriation is made for asset 
 10.42  preservation and facility repair.  
 10.43  (f) $1,225,000 the first year and 
 10.44  $1,225,000 the second year are for the 
 10.45  opportunities industrialization center 
 10.46  programs.  Of this amount, $200,000 
 10.47  each year is a one-time appropriation 
 10.48  from the workforce development fund and 
 10.49  $250,000 each year is a one-time 
 10.50  appropriation from the state's federal 
 10.51  TANF block grant under Title I of 
 10.52  Public Law Number 104-193 to the 
 10.53  commissioner of human services, to be 
 10.54  transferred to the commissioner of 
 10.55  economic security.  
 10.56  Subd. 3.  Rehabilitation Services     22,770,000     22,777,000
 10.57                Summary by Fund
 10.58  General              20,940,000    20,947,000
 10.59  TANF                    750,000       750,000 
 10.60  Special         
 11.1   Revenue Fund          1,080,000     1,080,000
 11.2   $10,724,000 in the first year and 
 11.3   $10,724,000 in the second year are for 
 11.4   extended employment services for 
 11.5   persons with severe disabilities or 
 11.6   related conditions under Minnesota 
 11.7   Statutes, section 268A.15, subdivision 
 11.8   3.  Of this amount, $1,080,000 the 
 11.9   first year and $1,080,000 the second 
 11.10  year are one-time appropriations from 
 11.11  the workforce development fund.  The 
 11.12  extended employment services program's 
 11.13  funding for fiscal year 2004 and fiscal 
 11.14  year 2005 shall be from the general 
 11.15  fund. 
 11.16  $750,000 the first year and $750,000 
 11.17  the second year are from the state's 
 11.18  TANF block grant under Title I of 
 11.19  Public Law Number 104-193 to the 
 11.20  commissioner of human services, to be 
 11.21  transferred to the commissioner of 
 11.22  economic security for extended 
 11.23  employment services for the 
 11.24  continuation of efforts to provide 
 11.25  extended employment training through 
 11.26  the welfare-to-work extended employment 
 11.27  partnership program to welfare 
 11.28  recipients with severe impairments to 
 11.29  employment as provided for under 
 11.30  Minnesota Statutes, section 268A.15.  
 11.31  Of this appropriation, up to two 
 11.32  percent may be used for administrative 
 11.33  costs.  This is a one-time 
 11.34  appropriation and is not added to the 
 11.35  agency's budget base. 
 11.36  $50,000 the first year and $50,000 the 
 11.37  second year are for grants to fund the 
 11.38  eight centers for independent living.  
 11.39  The appropriation shall be distributed 
 11.40  in accordance with the state 
 11.41  independent living plan formula for 
 11.42  distribution of new independent living 
 11.43  funding.  This appropriation shall be 
 11.44  added to the agency's base level 
 11.45  funding for the 2004-2005 biennium. 
 11.46  Subd. 4.  State Services for the Blind 
 11.47       4,890,000      4,964,000 
 11.48  Sec. 5.  HOUSING FINANCE AGENCY       65,132,000     64,532,000
 11.49                Summary by Fund
 11.50  General              52,682,000    52,082,000
 11.51  TANF                 12,450,000    12,450,000
 11.52  Subdivision 1.  Total Appropriation 
 11.53  The amounts that may be spent from this 
 11.54  appropriation for certain programs are 
 11.55  specified in the following subdivisions.
 11.56  This appropriation is for transfer to 
 11.57  the housing development fund for the 
 11.58  programs specified.  Except as 
 11.59  otherwise indicated, this transfer is 
 12.1   part of the agency's permanent budget 
 12.2   base. 
 12.3   Subd. 2.  Challenge Program 
 12.4   $12,004,000 the first year and 
 12.5   $12,004,000 the second year are for the 
 12.6   economic development and housing 
 12.7   challenge program under Minnesota 
 12.8   Statutes, section 462A.33.  Until 
 12.9   January 1, 2002, the agency may 
 12.10  administer the appropriations under 
 12.11  this subdivision in the same manner as 
 12.12  appropriations for Minnesota Statutes, 
 12.13  section 462A.21, subdivision 8b, 15, 
 12.14  21, or 24.  In funding proposals with 
 12.15  money appropriated under this 
 12.16  subdivision, the agency shall give 
 12.17  priority to no more than three 
 12.18  proposals for pilot projects 
 12.19  encouraging homeowners to make 
 12.20  improvements to the exteriors of 
 12.21  deteriorating properties or assisting 
 12.22  homeowners with interior lead hazard 
 12.23  reduction in targeted neighborhoods.  
 12.24  Eligible proposals must meet the 
 12.25  following criteria: 
 12.26  (1) the funds will be used to discount 
 12.27  the interest rate on the community 
 12.28  fix-up fund program for home 
 12.29  improvement loans provided through the 
 12.30  agency; 
 12.31  (2) matching funds are provided from 
 12.32  either a local unit of government or a 
 12.33  private philanthropic, religious, or 
 12.34  charitable organization; and 
 12.35  (3) the discounted interest rate loans 
 12.36  will be targeted to households based on 
 12.37  need, as determined by the community. 
 12.38  Communities receiving funds under a 
 12.39  proposal for this purpose shall report 
 12.40  to the agency on the outcomes of the 
 12.41  pilot project, including the number of 
 12.42  households served, the cost per 
 12.43  household, the changes in property 
 12.44  values, if any, in the targeted 
 12.45  neighborhood, and improvements, if any, 
 12.46  made in the targeted neighborhoods 
 12.47  without government subsidy during the 
 12.48  same time period as the pilot project.  
 12.49  Subd. 3.  Rental Assistance for Mentally Ill 
 12.50  $1,700,000 the first year and 
 12.51  $1,700,000 the second year are for a 
 12.52  rental housing assistance program for 
 12.53  persons with a mental illness or 
 12.54  families with an adult member with a 
 12.55  mental illness under Minnesota 
 12.56  Statutes, section 462A.2097. 
 12.57  Subd. 4.  Family Homeless Prevention 
 12.58  $3,750,000 the first year and 
 12.59  $3,750,000 the second year are for the 
 12.60  family homeless prevention and 
 12.61  assistance program under Minnesota 
 13.1   Statutes, section 462A.204, and are 
 13.2   available until June 30, 2003.  Of this 
 13.3   amount, $250,000 the first year and 
 13.4   $250,000 the second year are one-time 
 13.5   appropriations from the state's federal 
 13.6   TANF block grant under Title I of 
 13.7   Public Law Number 104-193 to the 
 13.8   commissioner of human services, to 
 13.9   reimburse the housing development fund 
 13.10  for assistance under this program for 
 13.11  families receiving TANF assistance 
 13.12  under the MFIP program.  The 
 13.13  commissioner of human services shall 
 13.14  make monthly reimbursements to the 
 13.15  housing development fund.  The 
 13.16  commissioner of human services shall 
 13.17  not make any reimbursement which the 
 13.18  commissioner determines would be 
 13.19  subject to a penalty under Code of 
 13.20  Federal Regulations, section 262.1.  If 
 13.21  the appropriation in either year is 
 13.22  insufficient, the appropriation for the 
 13.23  other year is available.  It is the 
 13.24  intention of the legislature that the 
 13.25  general fund base funding to this 
 13.26  program be $6,500,000 for the 2004-2005 
 13.27  biennium. 
 13.28  Subd. 5.  Home Ownership Education, 
 13.29  Counseling, and Training
 13.30  $1,058,000 the first year and 
 13.31  $1,058,000 the second year are for the 
 13.32  home ownership education, counseling, 
 13.33  and training program under Minnesota 
 13.34  Statutes, section 462A.209. 
 13.35  Of this amount, $200,000 the first year 
 13.36  and $200,000 the second year are from 
 13.37  the state's federal TANF block grant 
 13.38  under Title I of Public Law Number 
 13.39  104-103 to the commissioner of human 
 13.40  services, to reimburse the housing 
 13.41  development fund for full-cycle home 
 13.42  ownership services funded under this 
 13.43  program for non-English-speaking 
 13.44  persons, recent immigrants, and 
 13.45  historically underserved populations. 
 13.46  Subd. 6.  Housing Trust Fund
 13.47  $4,623,000 the first year and 
 13.48  $4,623,000 the second year are for the 
 13.49  housing trust fund to be deposited in 
 13.50  the housing trust fund account created 
 13.51  under Minnesota Statutes, section 
 13.52  462A.201, and used for the purposes 
 13.53  provided in that section.  Until 
 13.54  January 1, 2002, the agency may 
 13.55  administer the appropriations under 
 13.56  this subdivision in the same manner as 
 13.57  appropriations for Minnesota Statutes 
 13.58  2000, sections 462A.201, 462A.205, and 
 13.59  462A.21, subdivision 8b.  Among 
 13.60  comparable rehabilitation proposals, 
 13.61  the agency may give a priority for 
 13.62  projects that include lead hazard 
 13.63  reduction. 
 13.64  The agency shall strongly consider 
 13.65  funding proposals by community agencies 
 14.1   in partnership with local governments 
 14.2   or the federal government to assist in 
 14.3   the development, construction, 
 14.4   acquisition, or rehabilitation of 
 14.5   supportive and permanent housing 
 14.6   located on property owned by the United 
 14.7   States Department of Veterans Affairs 
 14.8   which will serve veterans and single 
 14.9   adults who are homeless or at risk of 
 14.10  becoming homeless and which will 
 14.11  provide or coordinate health and social 
 14.12  services needed by the residents. 
 14.13  Subd. 7.  Affordable Rental Investment Fund
 14.14  $22,000,000 the first year and 
 14.15  $22,000,000 the second year are for the 
 14.16  affordable rental investment fund 
 14.17  program under Minnesota Statutes, 
 14.18  section 462A.21, subdivision 8b.  Of 
 14.19  this amount, $12,000,000 in each year 
 14.20  is a one-time appropriation and is not 
 14.21  added to the agency's base budget. 
 14.22  (a) Of this amount, $10,000,000 the 
 14.23  first year and $10,000,000 the second 
 14.24  year are to finance the acquisition, 
 14.25  rehabilitation, and debt restructuring 
 14.26  of federally assisted rental property 
 14.27  and for making equity take-out loans 
 14.28  under Minnesota Statutes, section 
 14.29  462A.05, subdivision 39.  The owner of 
 14.30  the federally assisted rental property 
 14.31  must agree to participate in the 
 14.32  applicable federally assisted housing 
 14.33  program and to extend any existing 
 14.34  low-income affordability restrictions 
 14.35  on the housing for the maximum term 
 14.36  permitted.  The owner must also enter 
 14.37  into an agreement that gives local 
 14.38  units of government, housing and 
 14.39  redevelopment authorities, and 
 14.40  nonprofit housing organizations the 
 14.41  right of first refusal if the rental 
 14.42  property is offered for sale.  Priority 
 14.43  must be given among comparable 
 14.44  properties to properties with the 
 14.45  longest remaining term under an 
 14.46  agreement for federal rental 
 14.47  assistance.  Priority must also be 
 14.48  given among comparable rental housing 
 14.49  developments to developments that are 
 14.50  or will be owned by local government 
 14.51  units, a housing and redevelopment 
 14.52  authority, or a nonprofit housing 
 14.53  organization. 
 14.54  (b) Of this appropriation, $12,000,000 
 14.55  the first year and $12,000,000 the 
 14.56  second year are to be used by the 
 14.57  agency to finance permanent and 
 14.58  supportive rental housing units and 
 14.59  necessary operating cost subsidies 
 14.60  related to the units financed and to 
 14.61  provide rental assistance.  The 
 14.62  appropriation under this paragraph must 
 14.63  be used to finance units or provide 
 14.64  assistance for families whose household 
 14.65  income, at the time of initial 
 14.66  occupancy, does not exceed 30 percent 
 14.67  of the HUD established median income 
 15.1   for the metropolitan area, as defined 
 15.2   in Minnesota Statutes, section 473.121, 
 15.3   subdivision 2.  The median family 
 15.4   income may be adjusted for families of 
 15.5   five or more persons.  The owner of 
 15.6   units financed with the appropriation 
 15.7   under this paragraph must agree to 
 15.8   maintain affordability of the units 
 15.9   financed under this paragraph for a 
 15.10  30-year period. 
 15.11  Housing units financed in the 
 15.12  metropolitan area with the 
 15.13  appropriation under this paragraph must 
 15.14  be located near public transit that 
 15.15  provides regular service and access to 
 15.16  jobs, schools, and other services that 
 15.17  support self-sufficiency.  
 15.18  Housing units financed outside the 
 15.19  metropolitan area with the 
 15.20  appropriation under this paragraph must 
 15.21  be located near jobs, schools, and 
 15.22  other services that support 
 15.23  self-sufficiency. 
 15.24  The commissioner shall utilize 
 15.25  strategies to:  (1) promote occupancy 
 15.26  of the units financed by the 
 15.27  appropriation under this paragraph by 
 15.28  households most in need of subsidized 
 15.29  housing and (2) encourage households to 
 15.30  move into homeownership or unsubsidized 
 15.31  housing as the household achieves 
 15.32  economic self-sufficiency. 
 15.33  The appropriation under this paragraph 
 15.34  shall be jointly administered by the 
 15.35  commissioners of the Minnesota housing 
 15.36  finance agency and the department of 
 15.37  human services and the director of the 
 15.38  strategic and long-range planning 
 15.39  office.  
 15.40  [WORKING FAMILY CREDIT.] (a) On a 
 15.41  regular basis, the commissioner of 
 15.42  revenue, with the assistance of the 
 15.43  commissioner of human services, shall 
 15.44  calculate the value of the refundable 
 15.45  portion of the Minnesota working family 
 15.46  credits provided under Minnesota 
 15.47  Statutes, section 290.0671, that 
 15.48  qualifies for federal reimbursement 
 15.49  from the temporary assistance to needy 
 15.50  families block grant.  The commissioner 
 15.51  of revenue shall provide the 
 15.52  commissioner of human services with 
 15.53  such expenditure records and 
 15.54  information as are necessary to support 
 15.55  draw down of federal funds. 
 15.56  (b) Federal TANF funds, as specified in 
 15.57  this paragraph, are appropriated to the 
 15.58  commissioner of housing finance based 
 15.59  on calculations under paragraph (a) of 
 15.60  working family tax credit expenditures 
 15.61  that qualify for reimbursement from the 
 15.62  TANF block grant for income tax refunds 
 15.63  payable in federal fiscal years 
 15.64  beginning October 1, 2001.  The draw 
 15.65  down of federal TANF funds shall be 
 16.1   made on a regular basis based on 
 16.2   calculations of credit expenditures by 
 16.3   the commissioner of revenue.  
 16.4   $12,000,000 in fiscal year 2002 and 
 16.5   $12,000,000 in fiscal year 2003 are 
 16.6   appropriated to the commissioner of the 
 16.7   housing finance agency.  These funds 
 16.8   shall be transferred to the 
 16.9   commissioner of revenue to deposit into 
 16.10  the general fund.  These funds shall 
 16.11  not become part of the 2004-05 base 
 16.12  budget. 
 16.13  Subd. 8.  Urban Indian Housing Program 
 16.14  $187,000 the first year and $187,000 
 16.15  the second year are for the urban 
 16.16  Indian housing program under Minnesota 
 16.17  Statutes, section 462A.07, subdivision 
 16.18  15.  
 16.19  Subd. 9.  Tribal Indian Housing Program
 16.20  $1,683,000 the first year and 
 16.21  $1,683,000 the second year are for the 
 16.22  tribal Indian housing program under 
 16.23  Minnesota Statutes, section 462A.07, 
 16.24  subdivision 14.  
 16.25  Subd. 10.  Capacity Building Grants 
 16.26  $340,000 the first year and $340,000 
 16.27  the second year are for nonprofit 
 16.28  capacity building grants under 
 16.29  Minnesota Statutes, section 462A.21, 
 16.30  subdivision 3b.  
 16.31  Subd. 11.  Housing Rehabilitation
 16.32  and Accessibility
 16.33  $4,287,000 the first year and 
 16.34  $4,287,000 the second year are for the 
 16.35  housing rehabilitation and 
 16.36  accessibility program under Minnesota 
 16.37  Statutes, section 462A.05, subdivisions 
 16.38  14a and 15a. 
 16.39  Subd. 12.  Home Ownership
 16.40  Assistance Fund
 16.41  $900,000 the first year and $900,000 
 16.42  the second year are for the home 
 16.43  ownership assistance fund under 
 16.44  Minnesota Statutes, section 462A.21, 
 16.45  subdivision 8.  
 16.46  Subd. 13.  Manufactured Home
 16.47  Park Redevelopment
 16.48  $500,000 is for the manufactured home 
 16.49  park redevelopment program created by 
 16.50  Minnesota Statutes, section 462A.2035, 
 16.51  and is available until June 30, 2003.  
 16.52  This is a one-time appropriation and is 
 16.53  not added to the agency's budget base. 
 16.54  Subd. 14.  Rental Housing
 16.55  Pilot Program
 16.56  $100,000 is for a rental housing pilot 
 17.1   program to encourage landlords to rent 
 17.2   to high-risk tenants with poor rental 
 17.3   histories in the counties of Benton, 
 17.4   Dakota, Hennepin, Olmsted, Ramsey, St. 
 17.5   Louis, Sherburne, and Stearns.  This is 
 17.6   a one-time appropriation available 
 17.7   until June 30, 2003, and is not added 
 17.8   to the agency's budget base. 
 17.9   The program shall allow local agencies 
 17.10  to provide payment bonds to landlords 
 17.11  to reimburse a portion of losses 
 17.12  sustained by landlords willing to 
 17.13  accept high-risk tenants.  In selecting 
 17.14  recipients for funding under this 
 17.15  section, priority must be given to 
 17.16  proposals that include accountability 
 17.17  provisions for participating landlords 
 17.18  and training and certification 
 17.19  requirements for participating tenants. 
 17.20  Local government units, nonprofit 
 17.21  agencies, or partnerships between local 
 17.22  government units and nonprofit agencies 
 17.23  are eligible for funding under this 
 17.24  subdivision.  Local government units 
 17.25  must provide matching funds, which may 
 17.26  include administrative costs, payment 
 17.27  bond funding, or property tax credits. 
 17.28  The housing finance agency shall 
 17.29  consult with the following in selecting 
 17.30  recipients for funding under this 
 17.31  subdivision:  organizations who 
 17.32  advocate for tenants and provide tenant 
 17.33  training, nonprofit and for-profit 
 17.34  housing providers, supportive housing 
 17.35  service providers, and tenant screening 
 17.36  organizations. 
 17.37  The housing finance agency must report 
 17.38  to the legislature by January 1, 2003, 
 17.39  on the effectiveness of the pilot 
 17.40  program in this subdivision in securing 
 17.41  rental housing for individuals with 
 17.42  poor rental histories.  The report must 
 17.43  also address the feasibility of and 
 17.44  need for expanding the program 
 17.45  statewide and recommend best practices. 
 17.46  Subd. 15.  Cancellations 
 17.47  The unobligated and unencumbered 
 17.48  balance appropriated to the affordable 
 17.49  rental investment fund account and the 
 17.50  community rehabilitation fund account 
 17.51  under Laws 1997, Second Special Session 
 17.52  chapter 2, section 4, is transferred on 
 17.53  July 1, 2001, to the disaster relief 
 17.54  contingency fund under Minnesota 
 17.55  Statutes, section 462A.21, subdivision 
 17.56  29. 
 17.57  The unobligated and unencumbered 
 17.58  balance appropriated to the affordable 
 17.59  rental investment fund account and the 
 17.60  community rehabilitation fund account 
 17.61  under Laws 1998, chapter 383, section 
 17.62  2, is transferred on July 1, 2001, to 
 17.63  the disaster relief contingency fund 
 17.64  under Minnesota Statutes, section 
 18.1   462A.21, subdivision 29. 
 18.2   $420,000 of the unobligated and 
 18.3   unencumbered balance in the local 
 18.4   government unit housing account under 
 18.5   Minnesota Statutes, section 462A.202, 
 18.6   is transferred to the housing trust 
 18.7   fund under Minnesota Statutes, section 
 18.8   462A.201, for loans and grants to 
 18.9   assist in the development, 
 18.10  construction, acquisition, or 
 18.11  rehabilitation of supportive and 
 18.12  permanent housing to serve veterans and 
 18.13  single adults who are homeless or at 
 18.14  risk of becoming homeless.  The loans 
 18.15  or grants must be used for at least two 
 18.16  housing projects that: 
 18.17  (1) are located on property owned by 
 18.18  the United States Department of 
 18.19  Veterans Affairs or other property that 
 18.20  could be obtained at no cost; 
 18.21  (2) provide or coordinate health and 
 18.22  social services needed by the 
 18.23  residents; and 
 18.24  (3) are a collaborative partnership 
 18.25  between community agencies and local 
 18.26  units of government or the federal 
 18.27  government. 
 18.28  Of the amount transferred under this 
 18.29  subdivision, $50,000 is for a grant to 
 18.30  the city of Granite Falls for grants to 
 18.31  citizens whose homes were destroyed by 
 18.32  the Granite Falls tornado.  Grants 
 18.33  shall be used to allow citizens who can 
 18.34  no longer build on existing lots 
 18.35  because of a lack of city services to 
 18.36  purchase new lots, up to $10,000 per 
 18.37  family. 
 18.38  Sec. 6.  COMMERCE 
 18.39  Subdivision 1.  Total 
 18.40  Appropriation                         27,404,000     28,499,000
 18.41                Summary by Fund
 18.42  General              25,757,000    26,834,000
 18.43  Petroleum Cleanup     1,055,000     1,065,000 
 18.44  Workers'
 18.45  Compensation            592,000       600,000
 18.46  The amounts that may be spent from this 
 18.47  appropriation for each program are 
 18.48  specified in the following subdivisions.
 18.49  Subd. 2.  Financial Examinations 
 18.50       6,432,000      6,659,000
 18.51  Subd. 3.  Petroleum Tank Release 
 18.52  Cleanup Board 
 18.53       1,055,000      1,065,000
 18.54  This appropriation is from the 
 19.1   petroleum tank release cleanup fund. 
 19.2   Subd. 4.  Administrative Services 
 19.3        5,793,000      5,883,000 
 19.4   Subd. 5.  Enforcement 
 19.5   and Compliance                         6,123,000      6,805,000
 19.6                 Summary by Fund
 19.7   General               5,531,000     6,205,000
 19.8   Workers' Compensation   592,000       600,000
 19.9   Of this amount, $138,000 the first year 
 19.10  and $161,000 the second year of the 
 19.11  general fund appropriation are for the 
 19.12  cost of implementing HF1311, if 
 19.13  enacted.  This appropriation is 
 19.14  available only if HF1311 is enacted. 
 19.15  Of this amount, $21,000 the first year 
 19.16  and $5,000 the second year are for the 
 19.17  costs of implementing HF1955, if 
 19.18  enacted.  This appropriation is 
 19.19  available only if HF1955 is enacted. 
 19.20   Subd. 6.  Energy 
 19.21            3,773,000       3,811,000
 19.22   Subd. 7.  Telecommunication 
 19.23              976,000         987,000 
 19.24   Subd. 8.  Weights and Measurement 
 19.25            3,252,000       3,289,000 
 19.26  Of this amount, $5,000 the first year 
 19.27  and $5,000 the second year are for the 
 19.28  cost of implementing HF1007, if 
 19.29  enacted.  This appropriation is 
 19.30  available only if HF1007 is enacted.  
 19.31  Sec. 7.  BOARD OF ACCOUNTANCY FEE        674,000        702,000
 19.32  Sec. 8.  BOARD OF ARCHITECTURE,
 19.33  ENGINEERING, LAND SURVEYING, 
 19.34  LANDSCAPE ARCHITECTURE, AND 
 19.35  INTERIOR DESIGN                          935,000        948,000 
 19.36  Sec. 9.  BOARD OF BARBER   
 19.37  EXAMINERS                                152,000        157,000
 19.38  Sec. 10.  LABOR AND INDUSTRY 
 19.39  Subdivision 1.  Total             
 19.40  Appropriation                         25,154,000     25,481,000
 19.41                Summary by Fund
 19.42  General               3,525,000     3,575,000
 19.43  Workers'     
 19.44  Compensation         20,842,000    21,111,000
 19.45  Special   
 19.46  Revenue Fund            787,000       795,000
 20.1   The amounts that may be spent from this 
 20.2   appropriation for each program are 
 20.3   specified in the following subdivisions.
 20.4   Subd. 2.  Workers' Compensation 
 20.5       10,797,000     10,944,000 
 20.6   This appropriation is from the workers' 
 20.7   compensation fund. 
 20.8   $125,000 the first year and $125,000 
 20.9   the second year are for grants to the 
 20.10  Vinland Center for rehabilitation 
 20.11  service. 
 20.12  Subd. 3.  Workplace Services           7,394,000      7,492,000
 20.13                Summary by Fund
 20.14  General               2,464,000     2,496,000
 20.15  Workers'
 20.16  Compensation          4,143,000     4,201,000
 20.17  Special   
 20.18  Revenue Fund            787,000       795,000 
 20.19  $204,000 the first year and $204,000 
 20.20  the second year are for labor education 
 20.21  and advancement program grants.  This 
 20.22  appropriation is from the workforce 
 20.23  development fund. 
 20.24  Subd. 4.  General Support              6,963,000      7,045,000
 20.25                Summary by Fund
 20.26  General               1,061,000     1,079,000
 20.27  Workers'     
 20.28  Compensation          5,902,000     5,966,000
 20.29  Sec. 11.  BUREAU OF MEDIATION SERVICES 
 20.30  Subdivision 1.  Total
 20.31  Appropriation                          2,236,000      2,260,000
 20.32  The amounts that may be spent from this 
 20.33  appropriation for each program are 
 20.34  specified in the following subdivisions.
 20.35  Subd. 2.  Mediation Services           1,934,000      1,958,000
 20.36  Subd. 3.  Labor Management 
 20.37  Cooperation Grants                       302,000        302,000
 20.38  $302,000 each year is for grants to 
 20.39  area labor-management committees.  Any 
 20.40  unencumbered balance remaining at the 
 20.41  end of the first year does not cancel 
 20.42  but is available for the second year. 
 20.43  Sec. 12.  WORKERS' COMPENSATION
 20.44  COURT OF APPEALS                       1,559,000      1,598,000
 20.45  This appropriation is from the workers' 
 20.46  compensation fund. 
 20.47  Sec. 13.  PUBLIC UTILITIES  
 20.48  COMMISSION                             3,948,000      4,069,000
 21.1   Sec. 14.  MINNESOTA HISTORICAL 
 21.2   SOCIETY 
 21.3   Subdivision 1.  Total       
 21.4   Appropriation                         26,199,000     26,729,000
 21.5   The amounts that may be spent from this 
 21.6   appropriation for each program are 
 21.7   specified in the following subdivisions.
 21.8   Subd. 2.  Education and     
 21.9   Outreach                              14,480,000     14,807,000
 21.10  Subd. 3.  Preservation and Access     11,323,000     11,574,000
 21.11  Subd. 4.  Fiscal Agent                   396,000        348,000
 21.12  (a) Sibley House Association 
 21.13          88,000         88,000
 21.14  This appropriation is available for 
 21.15  operation and maintenance of the Sibley 
 21.16  House and related buildings on the Old 
 21.17  Mendota state historic site operated by 
 21.18  the Sibley House Association.  
 21.19  (b) Minnesota International Center 
 21.20          50,000         50,000
 21.21  (c) Minnesota Air National   
 21.22  Guard Museum 
 21.23          19,000        -0-
 21.24  (d) Institute for Learning and
 21.25  Teaching - Project 120
 21.26         110,000        110,000 
 21.27  (e) Minnesota Military Museum
 21.28          29,000        -0-
 21.29  (f) Farmamerica
 21.30         100,000        100,000 
 21.31  Notwithstanding any other law, this 
 21.32  appropriation may be used for 
 21.33  operations. 
 21.34  (g) Balances Forward
 21.35  Any unencumbered balance remaining in 
 21.36  this subdivision the first year does 
 21.37  not cancel but is available for the 
 21.38  second year of the biennium. 
 21.39  Sec. 15.  COUNCIL ON BLACK
 21.40  MINNESOTANS                              339,000        346,000
 21.41  Of this amount, $3,000 the first year 
 21.42  and $3,000 the second year are for the 
 21.43  cost of implementing HF387/SF142, if 
 21.44  enacted.  This appropriation is 
 21.45  available only if HF387/SF142 is 
 21.46  enacted. 
 22.1   Sec. 16.  COUNCIL ON 
 22.2   CHICANO-LATINO AFFAIRS                   330,000        337,000
 22.3   Sec. 17.  COUNCIL ON
 22.4   ASIAN-PACIFIC MINNESOTANS                293,000        301,000
 22.5   Sec. 18.  INDIAN AFFAIRS
 22.6   COUNCIL                                  576,000        585,000
 22.7      Sec. 19.  [FEDERAL FUND APPROVAL.] 
 22.8      Requests to spend federal grants and aids as shown in the 
 22.9   biennial budget document and its supplements for the departments 
 22.10  of trade and economic development, economic security, commerce, 
 22.11  and labor and industry; the Minnesota housing finance agency; 
 22.12  and Minnesota Technology, Inc., for which further review was 
 22.13  requested under Minnesota Statutes, section 3.3005, subdivision 
 22.14  2a, in January or February 2001, are approved and the amounts 
 22.15  shown in the budget documents are appropriated for the purpose 
 22.16  indicated in the request. 
 22.17                             ARTICLE 2 
 22.18                         POLICY PROVISIONS 
 22.19     Section 1.  Minnesota Statutes 2000, section 15.01, is 
 22.20  amended to read: 
 22.21     15.01 [DEPARTMENTS OF THE STATE.] 
 22.22     The following agencies are designated as the departments of 
 22.23  the state government:  the department of administration; the 
 22.24  department of agriculture; the department of commerce; the 
 22.25  department of corrections; the department of children, families, 
 22.26  and learning; ~~the department of economic security; the~~ 
 22.27  ~~department of trade and economic development~~ department of jobs, 
 22.28  economic development, and trade; the department of finance; the 
 22.29  department of health; the department of human rights; the 
 22.30  department of labor and industry; the department of military 
 22.31  affairs; the department of natural resources; the department of 
 22.32  employee relations; the department of public safety; the 
 22.33  department of public service; the department of human services; 
 22.34  the department of revenue; the department of transportation; the 
 22.35  department of veterans affairs; and their successor departments. 
 22.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 22.37     Sec. 2.  Minnesota Statutes 2000, section 116J.8731, 
 23.1   subdivision 1, is amended to read: 
 23.2      Subdivision 1.  [PURPOSE.] The Minnesota investment fund is 
 23.3   created to provide financial assistance, through partnership 
 23.4   with communities, for the creation of new employment or to 
 23.5   maintain existing employment, and for business start-up, 
 23.6   expansions, and retention.  It shall accomplish these goals by 
 23.7   the following means: 
 23.8      (1) creation or retention of permanent private-sector jobs 
 23.9   in order to create above-average economic growth consistent with 
 23.10  environmental protection, which includes investments in 
 23.11  technology and equipment that increase productivity and provide 
 23.12  for a higher wage; 
 23.13     (2) stimulation or leverage of private investment to ensure 
 23.14  economic renewal and competitiveness; 
 23.15     (3) increasing the local tax base, based on demonstrated 
 23.16  measurable outcomes, to guarantee a diversified industry mix; 
 23.17     (4) improvement of employment and economic opportunity for 
 23.18  citizens in the region to create a reasonable standard of 
 23.19  living, consistent with federal and state guidelines on low- to 
 23.20  moderate-income persons; and 
 23.21     (5) stimulation of productivity growth through improved 
 23.22  manufacturing or new technologies, including cold weather 
 23.23  testing.  
 23.24     Sec. 3.  Minnesota Statutes 2000, section 116L.03, 
 23.25  subdivision 2, is amended to read: 
 23.26     Subd. 2.  [APPOINTMENT.] The Minnesota job skills 
 23.27  partnership board consists of:  nine members appointed by the 
 23.28  governor, the commissioner of trade and economic development, 
 23.29  the commissioner of economic security, and the chancellor, or 
 23.30  the chancellor's designee, of the Minnesota state colleges and 
 23.31  universities.  If the chancellor makes a designation under this 
 23.32  subdivision, the designee must have experience in technical 
 23.33  education.  Two of the appointed members must be representatives 
 23.34  from organized labor, and one of the appointed members must have 
 23.35  expertise in and be a representative of a technology industry.  
 23.36     Sec. 4.  Minnesota Statutes 2000, section 116L.03, 
 24.1   subdivision 3, is amended to read: 
 24.2      Subd. 3.  [QUALIFICATIONS.] Members must have expertise in, 
 24.3   and be representative of the following fields of education, ~~job~~ 
 24.4   ~~skills training,~~ labor, business, and government.  
 24.5      Sec. 5.  Minnesota Statutes 2000, section 116L.03, 
 24.6   subdivision 5, is amended to read: 
 24.7      Subd. 5.  [TERMS.] The terms of appointed members shall be 
 24.8   for four years except for the initial appointments.  The initial 
 24.9   appointments of the governor shall have the following terms:  
 24.10  two members each for one, two, three, and four years.  No member 
 24.11  shall serve more than two terms, and no person shall be 
 24.12  appointed after December 31, 2001, for any term that would cause 
 24.13  that person to serve a total of more than eight years on the 
 24.14  board.  Compensation for board members is as provided in section 
 24.15  15.0575, subdivision 3. 
 24.16     Sec. 6.  [116L.17] [STATE DISLOCATED WORKER PROGRAM.] 
 24.17     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 24.18  section, the following terms have the meanings given them in 
 24.19  this subdivision. 
 24.20     (b) "Dislocated worker" means an individual who is a 
 24.21  resident of Minnesota at the time employment ceased or was 
 24.22  working in the state at the time employment ceased and: 
 24.23     (1) has been terminated or has received a notice of 
 24.24  termination from public or private sector employment, is 
 24.25  eligible for or has exhausted entitlement to unemployment 
 24.26  benefits, and is unlikely to return to the previous industry or 
 24.27  occupation; 
 24.28     (2) has been terminated or has received a notice of 
 24.29  termination of employment as a result of any plant closing or 
 24.30  any substantial layoff at a plant, facility, or enterprise; 
 24.31     (3) has been long-term unemployed and has limited 
 24.32  opportunities for employment or reemployment in the same or a 
 24.33  similar occupation in the area in which the individual resides, 
 24.34  including older individuals who may have substantial barriers to 
 24.35  employment by reason of age; 
 24.36     (4) has been self-employed, including farmers and ranchers, 
 25.1   and is unemployed as a result of general economic conditions in 
 25.2   the community in which the individual resides or because of 
 25.3   natural disasters, subject to rules to be adopted by the 
 25.4   commissioner; 
 25.5      (5) has been self-employed as a farmer or rancher and, even 
 25.6   though that employment has not ceased, has experienced a 
 25.7   significant reduction in income due to inadequate crop or 
 25.8   livestock prices, crop failures, or significant loss in crop 
 25.9   yields due to pests, disease, adverse weather, or other natural 
 25.10  phenomenon.  This clause expires July 31, 2003; or 
 25.11     (6) was a full-time homemaker for a substantial number of 
 25.12  years and derived the substantial share of support from: 
 25.13     (i) a spouse and no longer receives such support due to the 
 25.14  death of, divorce from, permanent disability of, or permanent 
 25.15  separation from the spouse; or 
 25.16     (ii) public assistance on account of dependents in the home 
 25.17  and no longer receives such support. 
 25.18     To be eligible under this clause, the support must have 
 25.19  ceased while the worker resided in Minnesota.  
 25.20     (c) "Eligible organization" means a local government unit, 
 25.21  nonprofit organization, community action agency, business 
 25.22  organization or association, or labor organization. 
 25.23     (d) "Plant closing" means the announced or actual permanent 
 25.24  shutdown of a single site of employment, or one or more 
 25.25  facilities or operating units within a single site of employment.
 25.26     (e) "Substantial layoff" means a permanent reduction in the 
 25.27  workforce, which is not a result of a plant closing, and which 
 25.28  results in an employment loss at a single site of employment 
 25.29  during any 30-day period for at least 50 employees excluding 
 25.30  those employees that work less than 20 hours per week. 
 25.31     Subd. 2.  [GRANTS.] The board shall make grants to 
 25.32  workforce service areas or other eligible organizations to 
 25.33  provide services to dislocated workers.  The board shall 
 25.34  allocate funds available for the purposes of this section in its 
 25.35  discretion to respond to large layoffs and to provide services 
 25.36  to individual dislocated workers or small groups. 
 26.1      Subd. 3.  [ALLOCATION OF FUNDS.] The board, in consultation 
 26.2   with local workforce councils, shall develop a method of 
 26.3   distributing funds to provide services for dislocated workers 
 26.4   who are dislocated as a result of small or individual layoffs.  
 26.5   The board shall make an initial determination regarding 
 26.6   allocations under this subdivision by June 15, 2001, and in 
 26.7   subsequent years shall make a determination by April 15.  This 
 26.8   subdivision is effective June 1, 2001. 
 26.9      Subd. 4.  [USE OF FUNDS.] Funds granted by the board under 
 26.10  this section may be used for any combination of the following, 
 26.11  except as otherwise provided in this section: 
 26.12     (1) employment transition services such as developing 
 26.13  readjustment plans for individuals; outreach and intake; early 
 26.14  readjustment; job or career counseling; testing; orientation; 
 26.15  assessment of skills and aptitudes; provision of occupational 
 26.16  and labor market information; job placement assistance; job 
 26.17  search; job development; prelayoff assistance; relocation 
 26.18  assistance; and programs provided in cooperation with employers 
 26.19  or labor organizations to provide early intervention in the 
 26.20  event of plant closings or substantial layoffs; 
 26.21     (2) services that will allow the participant to become 
 26.22  reemployed by retraining for a new occupation or industry, 
 26.23  enhancing current skills, or relocating to employ existing 
 26.24  skills, including classroom training; occupational skill 
 26.25  training; on-the-job training; out-of-area job search; 
 26.26  relocation; basic and remedial education; literacy and English 
 26.27  for training non-English speakers; entrepreneurial training; and 
 26.28  other appropriate training activities directly related to 
 26.29  appropriate employment opportunities in the local labor market; 
 26.30  and 
 26.31     (3) support services, including family care assistance, 
 26.32  including child care; commuting assistance; housing and rental 
 26.33  assistance; counseling assistance, including personal and 
 26.34  financial; health care; emergency health assistance; emergency 
 26.35  financial assistance; work-related tools and clothing; and other 
 26.36  appropriate support services that enable a person to participate 
 27.1   in an employment and training program. 
 27.2      Subd. 5.  [COST LIMITATIONS.] Funds allocated to a grantee 
 27.3   are subject to the following cost limitations: 
 27.4      (1) no more than 10 percent may be allocated for 
 27.5   administration; 
 27.6      (2) at least 50 percent must be allocated for training 
 27.7   assistance as provided in subdivision 4, clause (2); and 
 27.8      (3) no more than 15 percent may be allocated for support 
 27.9   services as provided in subdivision 4, clause (3). 
 27.10     A waiver of the training assistance minimum in clause (2) 
 27.11  may be sought, but no waiver shall allow less than 30 percent of 
 27.12  the grant to be spent on training assistance.  A waiver of the 
 27.13  support services maximum in clause (3) may be sought, but no 
 27.14  waiver shall allow more than 20 percent of the grant to be spent 
 27.15  on support services. 
 27.16     Subd. 6.  [PERFORMANCE STANDARDS.] (a) The board, in 
 27.17  consultation with representatives of local workforce councils 
 27.18  and local elected officials, shall establish performance 
 27.19  standards for the programs and activities administered or funded 
 27.20  under this section.  The board may use, when appropriate, 
 27.21  existing federal performance standards or, if the commissioner 
 27.22  determines that federal standards are inadequate or not 
 27.23  suitable, may formulate new performance standards to ensure that 
 27.24  the programs and activities of the dislocated worker program are 
 27.25  effectively administered. 
 27.26     (b) The board shall, at a minimum, establish performance 
 27.27  standards that appropriately gauge the program's effectiveness 
 27.28  at placing dislocated workers in employment, replacing lost 
 27.29  income resulting from dislocation, early intervention with 
 27.30  workers shortly after dislocation, and retraining of workers 
 27.31  from one industry or occupation to another. 
 27.32     Subd. 7.  [REPORTS.] (a) Grantees receiving funds under 
 27.33  this section shall report to the board information on program 
 27.34  participants, activities funded, and utilization of funds in a 
 27.35  form and manner prescribed by the board. 
 27.36     (b) The board shall report quarterly to the workforce 
 28.1   development council information on grants awarded, activities 
 28.2   funded, and plant closings and substantial layoffs.  Specific 
 28.3   information to be reported shall be by agreement between the 
 28.4   board and the workforce development council. 
 28.5      Subd. 8.  [ADMINISTRATIVE COSTS.] No more than five percent 
 28.6   of the funds appropriated to the board for the purposes of this 
 28.7   section may be spent by the board for its administrative costs. 
 28.8      Sec. 7.  [122A.655] [RECRUITMENT OF EXCELLENT TEACHERS IN 
 28.9   SCIENCE, MATH, INDUSTRIAL TECHNOLOGY, AND SPECIAL EDUCATION AND 
 28.10  IN RURAL AREAS; LOAN REPAYMENT PROGRAM.] 
 28.11     Subdivision 1.  [PROGRAM ESTABLISHED; ACCOUNT CREATED.] A 
 28.12  loan repayment program is established to assist Minnesota public 
 28.13  schools in recruiting and retaining excellent teachers in the 
 28.14  fields of science, math, industrial technology, and special 
 28.15  education, and in rural areas.  A loan repayment program account 
 28.16  is created in the state treasury.  The account consists of money 
 28.17  appropriated by the legislature for loan repayments.  All money 
 28.18  in this account is annually appropriated to the higher education 
 28.19  services office and must be used to repay loans of qualified 
 28.20  licensed teachers who teach in high-need curricular and 
 28.21  geographic areas under subdivision 2. 
 28.22     Subd. 2.  [ELIGIBILITY; APPLICATION.] (a) To participate in 
 28.23  this program, a person must: 
 28.24     (1) have graduated from an approved teacher preparation 
 28.25  institution within 12 months of submitting an application to the 
 28.26  higher education services office to participate in this program; 
 28.27  and 
 28.28     (2) have a 3.0 grade point average or higher and be 
 28.29  licensed to teach in the field of math, science, industrial 
 28.30  technology, or special education. 
 28.31     (b) A person who has a 3.0 grade point average also may 
 28.32  participate in this program if the person is a teacher: 
 28.33     (1) who is licensed to teach science, math, industrial 
 28.34  technology, or special education and is employed to teach for 
 28.35  the first time in a Minnesota school district or is placed on 
 28.36  unrequested leave of absence under section 122A.40, subdivision 
 29.1   10 or 11, or is terminated because a position is discontinued or 
 29.2   a lack of pupils under section 122A.41, subdivision 14, or whose 
 29.3   contract as a probationary teacher is not renewed under section 
 29.4   122A.40 or 122A.41, and is employed by another school district 
 29.5   to teach science, math, industrial technology, or special 
 29.6   education; or 
 29.7      (2) with continuing contract or tenure rights who received 
 29.8   certification to teach in the field of science, math, industrial 
 29.9   technology, or special education within 12 months of submitting 
 29.10  an application to the higher education services office to 
 29.11  participate in this program.  
 29.12     (c) A person who meets the criteria in paragraph (a) or (b) 
 29.13  and is employed as a teacher in a public school located in 
 29.14  Minnesota outside the metropolitan area, as defined in section 
 29.15  473.121, subdivision 2, is eligible to receive an additional 
 29.16  loan repayment amount of up to $2,000 per year under subdivision 
 29.17  3. 
 29.18     (d) To be eligible to participate in this program, a person 
 29.19  must submit an application to the higher education services 
 29.20  office in the form and manner the higher education services 
 29.21  office prescribes.  The person must be employed as a teacher for 
 29.22  at least three consecutive school years in a Minnesota public 
 29.23  school.  
 29.24     (e) The higher education services office shall ensure that 
 29.25  applicants are qualified for this program, notify eligible 
 29.26  people about the program, develop and disseminate application 
 29.27  materials, and carry out other activities needed to implement 
 29.28  this section. 
 29.29     Subd. 3.  [LOAN REPAYMENT.] (a) For fiscal year 2002 and 
 29.30  fiscal year 2003, the higher education services office may 
 29.31  select teacher applicants to participate in this program.  
 29.32  Program participants are responsible for securing their own 
 29.33  education loans.  For each year that a participant is employed 
 29.34  and teaching in a school district according to subdivision 2, up 
 29.35  to a total of three years, the higher education services office 
 29.36  shall pay the following loan repayment amounts for the costs a 
 30.1   participant incurred for a post-secondary education leading to a 
 30.2   license to teach or for certification to teach in the field of 
 30.3   science, math, industrial technology, or special education:  
 30.4      (1) at the end of the first successfully completed school 
 30.5   year, if the teacher meets the criteria of subdivision 2, 
 30.6   paragraph (a) or (b), up to $1,000, and if the teacher meets the 
 30.7   criteria of subdivision 2, paragraphs (a) or (b) and (c), up to 
 30.8   $3,000; 
 30.9      (2) at the end of the second successfully completed school 
 30.10  year, if the teacher meets the criteria of subdivision 2, 
 30.11  paragraph (a) or (b), up to $3,000, and if the teacher meets the 
 30.12  criteria of subdivision 2, paragraphs (a) or (b) and (c), up to 
 30.13  $5,000; and 
 30.14     (3) at the end of the third successfully completed school 
 30.15  year, if the teacher meets the criteria of subdivision 2, 
 30.16  paragraph (a) or (b), up to $5,000, and if the teacher meets the 
 30.17  criteria of subdivision 2, paragraphs (a) or (b) and (c), up to 
 30.18  $7,000. 
 30.19     The higher education services office shall prorate the loan 
 30.20  repayment amounts of eligible teachers under this section who 
 30.21  work less than full-time in the field of science, math, 
 30.22  industrial technology, or special education. 
 30.23     (b) The higher education services office shall make 
 30.24  payments according to paragraph (a).  The annual and total 
 30.25  payment amounts must not exceed the amount of the participant's 
 30.26  loan.  
 30.27     Subd. 4.  [RULES.] The higher education services office 
 30.28  shall adopt rules to administer this loan repayment program 
 30.29  consistent with its authority under section 136A.01, subdivision 
 30.30  2, clause (8).  For purposes of this section, the higher 
 30.31  education services office is exempt from all rulemaking 
 30.32  requirements under chapter 14, except section 14.386. 
 30.33     Subd. 5.  [SUNSET.] This section expires on June 30, 2005. 
 30.34     Sec. 8.  Minnesota Statutes 2000, section 138.664, is 
 30.35  amended by adding a subdivision to read: 
 30.36     Subd. 50a.  Little Elk Heritage Preserve, Morrison county. 
 31.1      Sec. 9.  Minnesota Statutes 2000, section 184.29, is 
 31.2   amended to read: 
 31.3      184.29 [FEES.] 
 31.4      Before a license is granted to an applicant, the applicant 
 31.5   shall pay the following fee: 
 31.6      (a) An employment agent shall pay an annual license fee of 
 31.7   $250 for each license.  
 31.8      (b) ~~A search firm exempt under section 184.22, subdivision~~ 
 31.9   ~~2, shall pay an annual registration fee of $250, accompanying~~ 
 31.10  ~~the annual statement to the commissioner.~~  
 31.11     ~~(c)~~ An applicant for a counselor's license shall pay a 
 31.12  license fee of $20 and a renewal fee of $10.  
 31.13     ~~(d)~~ (c) An applicant for an employment agency manager's 
 31.14  license shall pay a license fee of $20 and a renewal fee of $10. 
 31.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 31.16     Sec. 10.  Minnesota Statutes 2000, section 184.30, 
 31.17  subdivision 1, is amended to read: 
 31.18     Subdivision 1.  Every application for an employment 
 31.19  agency's license, and every annual report required to be filed 
 31.20  under section 184.22, subdivision 2, must be accompanied by a 
 31.21  surety bond approved by the department in the amount of $10,000 
 31.22  for each location~~; except, that for a search firm, the bond is~~ 
 31.23  ~~required only for the first five years of registration.  For a~~ 
 31.24  ~~search firm that was previously licensed as an employment~~ 
 31.25  ~~agency, the bond is required only until the firm has met the~~ 
 31.26  ~~bond requirement as an agency or as a search firm for a total of~~ 
 31.27  ~~at least five years~~.  The bond must be filed in the office of 
 31.28  the secretary of state and conditioned that the employment 
 31.29  agency and each member, shareholder, director, or officer of a 
 31.30  firm, partnership, corporation, or association operating as an 
 31.31  employment agency will comply with the provisions of sections 
 31.32  184.21 to 184.40 and any contract made by the employment agent 
 31.33  in the conduct of the business.  A person damaged by a breach of 
 31.34  any condition of the bond may bring an action on the bond, and 
 31.35  successive actions may be maintained on it. 
 31.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 32.1      Sec. 11.  Minnesota Statutes 2000, section 184.38, 
 32.2   subdivision 6, is amended to read: 
 32.3      Subd. 6.  (a) No employment agent ~~or search firm~~ shall send 
 32.4   out any applicant for employment without having obtained a job 
 32.5   order, and if no employment of the kind applied for existed at 
 32.6   the place to which the applicant was directed, the employment 
 32.7   agent ~~or search firm~~ shall refund to the applicant, within 48 
 32.8   hours of demand, any sums paid by the applicant for 
 32.9   transportation in going to and returning from the place. 
 32.10     (b) Nothing in this chapter shall be construed to prevent 
 32.11  an employment agent ~~or search firm~~ from directing an applicant 
 32.12  to an employer where the employer has previously requested 
 32.13  interviews with applicants of certain types and qualifications, 
 32.14  even though no actual vacancy existed in the employer's 
 32.15  organization at the time the applicant was so directed; nor 
 32.16  shall it prevent the employment agent ~~or search firm~~ from 
 32.17  attempting to sell the services of an applicant to the employer 
 32.18  even though no order has been placed with the employment agent 
 32.19  ~~or search firm~~; provided, that prior to scheduling an interview 
 32.20  with an employer, when no opening currently exists with that 
 32.21  employer, the applicant is clearly informed that no opening 
 32.22  exists at that time. 
 32.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 32.24     Sec. 12.  Minnesota Statutes 2000, section 184.38, 
 32.25  subdivision 8, is amended to read: 
 32.26     Subd. 8.  No employment agent ~~or search firm~~ shall 
 32.27  knowingly cause to be printed or published a false or fraudulent 
 32.28  notice or advertisement for help or for obtaining work or 
 32.29  employment.  For purposes of this subdivision the phrase "false 
 32.30  or fraudulent notice or advertisement" shall include the 
 32.31  following: 
 32.32     (a) The advertisement of any job for which there is no bona 
 32.33  fide oral or written job order and completed job order form in 
 32.34  existence at the time the advertisement is placed; 
 32.35     (b) The inclusion in any advertisement of any information 
 32.36  concerning the identity, availability, features, or requirements 
 33.1   of any advertised job when such information is not substantiated 
 33.2   by, and included in, the supporting job order form; 
 33.3      (c) The advertisement of any job opening of the type 
 33.4   described in subdivision 6, clause (b); 
 33.5      (d) The advertisement of any job without the inclusion in 
 33.6   the advertisement of the "job order number" required in 
 33.7   subdivision 18; 
 33.8      (e) If an applicant appears at any agency ~~or search firm~~ in 
 33.9   response to the advertisement of a particular job, the failure 
 33.10  to attempt placement of the applicant in the advertised job; 
 33.11  provided however, that the agency ~~or search firm~~ may refuse to 
 33.12  attempt such placement if the reason(s) for the refusal are 
 33.13  clearly and truthfully disclosed to the applicant either orally 
 33.14  or in writing. 
 33.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 33.16     Sec. 13.  Minnesota Statutes 2000, section 184.38, 
 33.17  subdivision 9, is amended to read: 
 33.18     Subd. 9.  No employment agent ~~or search firm~~ shall place or 
 33.19  assist in placing any person in unlawful employment. 
 33.20     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 33.21     Sec. 14.  Minnesota Statutes 2000, section 184.38, 
 33.22  subdivision 10, is amended to read: 
 33.23     Subd. 10.  No employment agent ~~or search firm~~ shall fail to 
 33.24  state in any advertisement, proposal, or contract for 
 33.25  employment, that there is a strike or lockout at the place of 
 33.26  proposed employment, if the agent ~~or firm~~ has knowledge that 
 33.27  such condition exists. 
 33.28     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 33.29     Sec. 15.  Minnesota Statutes 2000, section 184.38, 
 33.30  subdivision 11, is amended to read: 
 33.31     Subd. 11.  No employment agency or its employee may split, 
 33.32  divide, or share, directly or indirectly, any fee, charge, or 
 33.33  compensation received from any employer or applicant with any 
 33.34  employer, or person in any way connected with the employer's 
 33.35  business.  ~~No search firm or its employee may split, divide, or~~ 
 33.36  ~~share, directly or indirectly, any fee, charge, or compensation~~ 
 34.1   ~~received from any employer with any person connected in any way~~ 
 34.2   ~~with the employer's business.~~  A violation of this subdivision 
 34.3   shall be punished by a fine of not less than $100, and not more 
 34.4   than $3,000, or on failure to pay the fine by imprisonment for a 
 34.5   period not to exceed one year, or both, at the discretion of the 
 34.6   court. 
 34.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 34.8      Sec. 16.  Minnesota Statutes 2000, section 184.38, 
 34.9   subdivision 17, is amended to read: 
 34.10     Subd. 17.  Except for applicant information given in the 
 34.11  course of normal agency ~~or firm~~ operations, no employment agent 
 34.12  ~~or search firm~~ shall voluntarily sell, give, or otherwise 
 34.13  transfer any files, records, or other information relating to 
 34.14  its employment agency ~~or search firm~~ applicants and employers to 
 34.15  any person other than a licensed employment agent ~~or registered~~ 
 34.16  ~~search firm~~ or a person who agrees to obtain an employment 
 34.17  agency license ~~or register as a search firm~~.  Every employment 
 34.18  agent ~~or search firm~~ who ceases to engage in the business of or 
 34.19  act as an employment agent ~~or search firm~~ shall notify the 
 34.20  department of such fact within 30 days thereof, and shall advise 
 34.21  the department as to the disposition of all files and other 
 34.22  records relating to its employment agency ~~or search firm~~ 
 34.23  business. 
 34.24     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 34.25     Sec. 17.  Minnesota Statutes 2000, section 184.38, 
 34.26  subdivision 18, is amended to read: 
 34.27     Subd. 18.  Every job order communicated to an agency ~~or~~ 
 34.28  ~~search firm~~ shall be recorded by the agency ~~or search firm~~ on a 
 34.29  job order form which form shall contain specific information as 
 34.30  prescribed by the department.  A job order form shall be filled 
 34.31  out for each job order prior to any attempt to advertise the job 
 34.32  opening or to place persons in said job.  Such forms shall each 
 34.33  be assigned a separate number and shall be maintained by the 
 34.34  agency ~~or search firm~~ for a period of one year. 
 34.35     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 34.36     Sec. 18.  Minnesota Statutes 2000, section 184.38, 
 35.1   subdivision 20, is amended to read: 
 35.2      Subd. 20.  No employment agent ~~or search firm~~ shall 
 35.3   knowingly misrepresent to any employer the educational 
 35.4   background, skills, or qualifications of any job candidate; or 
 35.5   knowingly misrepresent to a job candidate the responsibilities, 
 35.6   salary, or other features of any position of employment.  
 35.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 35.8      Sec. 19.  Minnesota Statutes 2000, section 184.41, is 
 35.9   amended to read: 
 35.10     184.41 [VIOLATIONS.] 
 35.11     Any person who engages in the business of or acts as an 
 35.12  employment agent or counselor without first procuring a license 
 35.13  as required by section 184.22, and any employment agent, 
 35.14  manager, or counselor who violates the provisions of this 
 35.15  chapter~~, and any exempt firm which violates any of the~~ 
 35.16  ~~applicable provisions of this chapter,~~ is guilty of a 
 35.17  misdemeanor.  
 35.18     In addition to the penalties for commission of a 
 35.19  misdemeanor, the department may bring an action for an 
 35.20  injunction against any person who engages in the business of or 
 35.21  acts as an employment agent or counselor without first procuring 
 35.22  the license required under section 184.22, ~~or who engages in the~~ 
 35.23  ~~business of or acts as a search firm without first filing the~~ 
 35.24  ~~registration required under section 184.22, subdivision 3,~~ and 
 35.25  against any employment agent, manager, or counselor~~, or search~~ 
 35.26  ~~firm~~ who violates the applicable provisions of this chapter.  If 
 35.27  an agency, manager, or counselor~~, or search firm~~ is found guilty 
 35.28  of a misdemeanor in any action relevant to the operation of an 
 35.29  agency, ~~or search firm~~ the department may suspend or revoke the 
 35.30  license ~~or registration~~ of the agency, manager, or counselor~~, or~~ 
 35.31  ~~search firm~~. 
 35.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
 35.33     Sec. 20.  Minnesota Statutes 2000, section 216C.06, is 
 35.34  amended by adding a subdivision to read: 
 35.35     Subd. 14.  [ANAEROBIC DIGESTER SYSTEM.] "Anaerobic digester 
 35.36  system" means a system of components that processes animal waste 
 36.1   based on the absence of oxygen and produces gas used to generate 
 36.2   electricity. 
 36.3      Sec. 21.  Minnesota Statutes 2000, section 216C.41, is 
 36.4   amended to read: 
 36.5      216C.41 [RENEWABLE ENERGY PRODUCTION INCENTIVE.] 
 36.6      Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 36.7   subdivision apply to this section. 
 36.8      (b) "Qualified hydroelectric facility" means a 
 36.9   hydroelectric generating facility in this state that: 
 36.10     (1) is located at the site of a dam, if the dam was in 
 36.11  existence as of March 31, 1994; and 
 36.12     (2) begins generating electricity after July 1, 1994, or 
 36.13  generates electricity after substantial refurbishing of a 
 36.14  facility that begins after July 1, 2001. 
 36.15     (c) "Qualified wind energy conversion facility" means a 
 36.16  wind energy conversion system that: 
 36.17     (1) produces two megawatts or less of electricity as 
 36.18  measured by nameplate rating and begins generating electricity 
 36.19  after June 30, 1997, and before July 1, 1999; 
 36.20     (2) begins generating electricity after June 30, 1999, 
 36.21  produces two megawatts or less of electricity as measured by 
 36.22  nameplate rating, and is: 
 36.23     (i) located within one county and owned by a natural person 
 36.24  who owns the land where the facility is sited; 
 36.25     (ii) owned by a Minnesota small business as defined in 
 36.26  section 645.445; 
 36.27     (iii) owned by a nonprofit organization; or 
 36.28     (iv) owned by a tribal council if the facility is located 
 36.29  within the boundaries of the reservation; or 
 36.30     (3) begins generating electricity after June 30, 1999, 
 36.31  produces seven megawatts or less of electricity as measured by 
 36.32  nameplate rating, and: 
 36.33     (i) is owned by a cooperative organized under chapter 308A; 
 36.34  and 
 36.35     (ii) all shares and membership in the cooperative are held 
 36.36  by natural persons or estates, at least 51 percent of whom 
 37.1   reside in a county or contiguous to a county where the wind 
 37.2   energy production facilities of the cooperative are located. 
 37.3      (d) "Qualified on-farm biogas recovery facility" means an 
 37.4   anaerobic digester system that: 
 37.5      (1) is located at the site of an agricultural operation; 
 37.6      (2) is owned by a natural person who owns or rents the land 
 37.7   where the facility is located; and 
 37.8      (3) begins generating electricity after July 1, 2001.  
 37.9      Subd. 2.  [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 
 37.10  payments ~~shall~~ must be made according to this section to (1) a 
 37.11  qualified on-farm biogas recovery facility, (2) the owner or 
 37.12  operator of a qualified hydropower facility or qualified wind 
 37.13  energy conversion facility for electric energy generated and 
 37.14  sold by the facility ~~or, for~~, (3) a publicly owned hydropower 
 37.15  facility~~,~~ for electric energy that is generated by the facility 
 37.16  and used by the owner of the facility outside the facility, or 
 37.17  (4) the owner of a publicly owned dam that is in need of 
 37.18  substantial repair, for electric energy that is generated by a 
 37.19  hydropower facility at the dam and the annual incentive payments 
 37.20  will be used to fund the structural repairs and replacement of 
 37.21  structural components of the dam, or to retire debt incurred to 
 37.22  fund those repairs.  
 37.23     (b) Payment may only be made upon receipt by the 
 37.24  commissioner of finance of an incentive payment application that 
 37.25  establishes that the applicant is eligible to receive an 
 37.26  incentive payment and that satisfies other requirements the 
 37.27  commissioner deems necessary.  The application ~~shall~~ must be in 
 37.28  a form and submitted at a time the commissioner establishes.  
 37.29     (c) There is annually appropriated from the general fund 
 37.30  sums sufficient to make the payments required under this section.
 37.31     Subd. 3.  [ELIGIBILITY WINDOW.] Payments may be made under 
 37.32  this section only for electricity generated: 
 37.33     (1) from a qualified hydroelectric facility that is 
 37.34  operational and generating electricity before December 31, 
 37.35  ~~2001~~ 2005; ~~or~~ 
 37.36     (2) from a qualified wind energy conversion facility that 
 38.1   is operational and generating electricity before January 1, 
 38.2   2005; or 
 38.3      (3) from a qualified on-farm biogas recovery facility from 
 38.4   July 1, 2001, through December 31, 2015. 
 38.5      Subd. 4.  [PAYMENT PERIOD.] (a) A facility may receive 
 38.6   payments under this section for a ten-year period.  No payment 
 38.7   under this section may be made for electricity generated: 
 38.8      (1) by a qualified hydroelectric facility after December 
 38.9   31, ~~2010~~ 2015; ~~or~~ 
 38.10     (2) by a qualified wind energy conversion facility after 
 38.11  December 31, 2015; or 
 38.12     (3) by a qualified on-farm biogas recovery facility after 
 38.13  December 31, 2015.  
 38.14     (b) The payment period begins and runs consecutively from 
 38.15  the first year in which electricity generated from the facility 
 38.16  is eligible for incentive payment or after substantial repairs 
 38.17  to the hydropower facility dam funded by the incentive payments 
 38.18  are initiated. 
 38.19     Subd. 5.  [AMOUNT OF PAYMENT.] An incentive payment is 
 38.20  based on the number of kilowatt hours of electricity generated. 
 38.21  The amount of the payment is: 
 38.22     (1) for a facility described under subdivision 2, paragraph 
 38.23  (a), clause (4), 1.0 cents per kilowatt hour; and 
 38.24     (2) for all other facilities, 1.5 cents per kilowatt hour.  
 38.25     For electricity generated by qualified wind energy 
 38.26  conversion facilities, the incentive payment under this section 
 38.27  is limited to no more than 100 megawatts of nameplate capacity.  
 38.28  During any period in which qualifying claims for incentive 
 38.29  payments exceed 100 megawatts of nameplate capacity, the 
 38.30  payments must be made to producers in the order in which the 
 38.31  production capacity was brought into production.  
 38.32     Sec. 22.  Minnesota Statutes 2000, section 268.022, 
 38.33  subdivision 1, is amended to read: 
 38.34     Subdivision 1.  [DETERMINATION AND COLLECTION OF SPECIAL 
 38.35  ASSESSMENT.] (a) In addition to all other taxes, assessments, 
 38.36  and payment obligations under chapter 268, each employer, except 
 39.1   an employer making payments in lieu of taxes is liable for a 
 39.2   special assessment levied at the rate of ~~one-tenth of one~~ 
 39.3   ~~percent per year until June 30, 2000, and~~ seven-hundredths of 
 39.4   one percent per year ~~on and after July 1, 2000~~ until December 
 39.5   31, 2001, and five-hundredths of one percent per year on and 
 39.6   after January 1, 2002, on all taxable wages, as defined in 
 39.7   section 268.04, subdivision 25b.  The assessment shall become 
 39.8   due and be paid by each employer to the department on the same 
 39.9   schedule and in the same manner as other taxes. 
 39.10     (b) The special assessment levied under this section shall 
 39.11  not affect the computation of any other taxes, assessments, or 
 39.12  payment obligations due under this chapter. 
 39.13     Sec. 23.  Minnesota Statutes 2000, section 268.022, 
 39.14  subdivision 2, is amended to read: 
 39.15     Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
 39.16  The money collected under this section shall be deposited in the 
 39.17  state treasury and credited to the workforce development fund to 
 39.18  provide for employment and training programs.  The workforce 
 39.19  development fund is created as a special account in the state 
 39.20  treasury. 
 39.21     (b) ~~All money in the fund not otherwise appropriated or~~ 
 39.22  ~~transferred is appropriated to the commissioner who must act as~~ 
 39.23  ~~the fiscal agent for the money and must disburse that money for~~ 
 39.24  ~~the purposes of this section, not allowing the money to be used~~ 
 39.25  ~~for any other obligation of the state.~~  Beginning in fiscal year 
 39.26  2002, $12,000,000 each fiscal year is appropriated from the 
 39.27  workforce development fund to the job skills partnership board 
 39.28  for the purposes of section 116L.17.  All money in the workforce 
 39.29  development fund shall be deposited, administered, and disbursed 
 39.30  in the same manner and under the same conditions and 
 39.31  requirements as are provided by law for the other special 
 39.32  accounts in the state treasury, except that all interest or net 
 39.33  income resulting from the investment or deposit of money in the 
 39.34  fund shall accrue to the fund for the purposes of the fund. 
 39.35     (c) ~~No more than five percent of the funds collected in~~ 
 39.36  ~~each fiscal year may be used by the department of economic~~ 
 40.1   ~~security for its administrative costs.~~ 
 40.2      ~~(d)~~ Reimbursement for costs related to collection of the 
 40.3   special assessment shall be in an amount negotiated between the 
 40.4   commissioner and the United States Department of Labor. 
 40.5      ~~(e) The funds appropriated to the commissioner, less~~ 
 40.6   ~~amounts under paragraphs (c) and (d) shall be allocated as~~ 
 40.7   ~~follows:~~  
 40.8      ~~(1) 40 percent to be allocated annually to substate~~ 
 40.9   ~~grantees for provision of expeditious response activities under~~ 
 40.10  ~~section 268.9771 and worker adjustment services under section~~ 
 40.11  ~~268.9781; and~~ 
 40.12     ~~(2) 60 percent to be allocated to activities and programs~~ 
 40.13  ~~authorized under sections 268.975 to 268.98.~~ 
 40.14     ~~(f) Any funds not allocated, obligated, or expended in a~~ 
 40.15  ~~fiscal year shall be available for allocation, obligation, and~~ 
 40.16  ~~expenditure in the following fiscal year.~~ 
 40.17     Sec. 24.  Laws 1993, chapter 301, section 1, subdivision 4, 
 40.18  as amended by Laws 1999, chapter 47, section 1, is amended to 
 40.19  read: 
 40.20     Subd. 4.  [WAIVER.] (a) Upon receipt of the committee 
 40.21  report required by subdivision 3, each entity head shall submit 
 40.22  the list of recommended waivers to the commissioner of employee 
 40.23  relations.  The commissioner shall then grant the waivers 
 40.24  requested by each entity, effective for the requesting entity, 
 40.25  for a period ending June 30, 1997, except the waivers granted 
 40.26  for the Minnesota housing finance agency shall extend to June 
 40.27  30, ~~2001~~ 2003, subject to the restrictions in paragraph (b) and 
 40.28  to revision in accordance with subdivision 5.  The commissioner 
 40.29  shall waive a rule by granting a variance under Minnesota 
 40.30  Statutes, section 14.05, subdivision 4.  
 40.31     (b) The commissioner may not grant a waiver if it would 
 40.32  result in the layoff of classified employees or unclassified 
 40.33  employees covered by a collective bargaining agreement except as 
 40.34  provided in a plan negotiated under Minnesota Statutes, chapter 
 40.35  179A, that provides options to layoff for employees who would be 
 40.36  affected.  If a proposed waiver would violate the terms of a 
 41.1   collective bargaining agreement reached under Minnesota 
 41.2   Statutes, chapter 179A, the waiver may not be granted without 
 41.3   the consent of the exclusive representative that is a party to 
 41.4   the agreement. 
 41.5      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 41.6      Sec. 25.  Laws 1995, chapter 248, article 12, section 2, as 
 41.7   amended by Laws 1999, chapter 47, section 2, is amended to read: 
 41.8      Sec. 2.  [TERMINATION.] 
 41.9      Section 1 and the civil service pilot project in the 
 41.10  housing finance agency as authorized by Laws 1993, chapter 301, 
 41.11  terminate June 30, ~~2001~~ 2003, or at any earlier time by a method 
 41.12  agreed upon by the commissioners of employee relations and 
 41.13  housing finance and the affected exclusive bargaining 
 41.14  representative of state employees. 
 41.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 41.16     Sec. 26.  Laws 1995, chapter 248, article 13, section 2, 
 41.17  subdivision 2, as amended by Laws 1997, chapter 97, section 13, 
 41.18  is amended to read: 
 41.19     Subd. 2.  [PILOT PROJECT.] During the biennium ending June 
 41.20  30, ~~2001~~ 2005, the governor shall designate an executive agency 
 41.21  that will conduct a pilot civil service project.  The pilot 
 41.22  program must adhere to the policies expressed in subdivision 1 
 41.23  and in Minnesota Statutes, section 43A.01.  For the purposes of 
 41.24  conducting the pilot project, the commissioner of the designated 
 41.25  agency is exempt from the provisions that relate to employment 
 41.26  in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 
 41.27  3900, and administrative procedures and policies of the 
 41.28  department of employee relations.  If a proposed exemption from 
 41.29  the provisions that relate to employment in Minnesota Statutes, 
 41.30  chapter 43A, Minnesota Rules, chapter 3900, and administrative 
 41.31  procedures and policies of the department of employee relations 
 41.32  would violate the terms of a collective bargaining agreement 
 41.33  effective under Minnesota Statutes, chapter 179A, the exemption 
 41.34  is not effective without the consent of the exclusive 
 41.35  representative that is a party to the agreement.  Upon request 
 41.36  of the commissioner carrying out the pilot project, the 
 42.1   commissioner of employee relations shall provide technical 
 42.2   assistance in support of the pilot project.  This section does 
 42.3   not exempt an agency from compliance with Minnesota Statutes, 
 42.4   sections 43A.19 and 43A.191, or from rules adopted to implement 
 42.5   those sections. 
 42.6      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 42.7      Sec. 27.  [NEW AGENCY.] 
 42.8      (a) Responsibility for administration of those Workforce 
 42.9   Investment Act (United States Code, title 29), title I and title 
 42.10  III programs administered by the department of trade and 
 42.11  economic development is transferred to the new agency, the 
 42.12  department of jobs, economic development, and trade. 
 42.13     (b) Responsibility for administration of those Workforce 
 42.14  Investment Act (United States Code, title 29), title I and title 
 42.15  III programs administered by the department of economic security 
 42.16  is transferred to the new agency, the department of jobs, 
 42.17  economic development, and trade. 
 42.18     (c) Responsibility for administration of the apprenticeship 
 42.19  program in the department of labor and industry is transferred 
 42.20  to the new agency, the department of jobs, economic development, 
 42.21  and trade. 
 42.22     (d) Responsibility for administration of the job skills 
 42.23  partnership program in the department of trade and economic 
 42.24  development is transferred to the new agency, the department of 
 42.25  jobs, economic development, and trade. 
 42.26     (e) The head of the new agency, the department of jobs, 
 42.27  economic development, and trade, is a commissioner for the 
 42.28  purposes of Minnesota Statutes, section 15.06. 
 42.29     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 42.30     Sec. 28.  [TRANSITION TEAM.] 
 42.31     (a) The governor shall appoint the head of a workforce 
 42.32  transition team.  The head of the transition team shall 
 42.33  recommend to the governor and the legislature the transfer to 
 42.34  the appropriate state agency of the responsibility for 
 42.35  administration of those programs of the department of trade and 
 42.36  economic development and the department of economic security not 
 43.1   specified in this act.  The head of the transition team may 
 43.2   recommend, where appropriate, the transfer of a program, 
 43.3   including those programs under the Workforce Investment Act 
 43.4   (United States Code, title 29), title I and title III, to local 
 43.5   workforce boards.  The legislature shall review the allocation 
 43.6   of resources to state programs and the local workforce councils. 
 43.7      (b) The head of the workforce transition team shall report 
 43.8   to the legislature no later than December 15, 2001, on 
 43.9   recommendations under paragraph (a).  The report submitted by 
 43.10  the transition team shall exclude any reference to mandatory 
 43.11  career tracking for individuals, and shall recommend such 
 43.12  changes in state law or policy as are necessary or desirable in 
 43.13  order to eliminate career tracking by agencies of state 
 43.14  government, political subdivisions of the state, or local 
 43.15  workforce councils. 
 43.16     (c) The head of the workforce transition team shall consult 
 43.17  with all appropriate state authorized councils, including, but 
 43.18  not limited to, the state rehabilitation advisory council, the 
 43.19  statewide independent living council, the rehabilitation 
 43.20  advisory council for the blind, and the governor's council on 
 43.21  developmental disabilities, prior to making recommendations to 
 43.22  the legislature on the appropriate transfer of responsibilities 
 43.23  for administration of those programs for which the councils are 
 43.24  authorized. 
 43.25     (d) The head of the workforce transition team shall consult 
 43.26  with the SAFE coordinating council, prior to making any 
 43.27  recommendation to the legislature, on the appropriate state 
 43.28  agency in which to house the juvenile justice program, the 
 43.29  Minnesota city grants program, and the youth intervention 
 43.30  program in the department of economic security. 
 43.31     (e) The head of the workforce transition team shall consult 
 43.32  and meet with the representatives of the collective bargaining 
 43.33  units for state employees affected by the transfers of 
 43.34  responsibilities under this act, including the representatives 
 43.35  of the two affected AFL-CIO affiliates and the representative of 
 43.36  another affected major statewide labor organization. 
 44.1      (f) The head of the workforce transition team shall consult 
 44.2   with the commissioners of economic security, trade and economic 
 44.3   development, and labor and industry, and the cochairs of the 
 44.4   legislative task force on workforce development prior to making 
 44.5   any recommendation to the legislature under paragraph (a).  
 44.6      (g) The head of the workforce transition team shall consult 
 44.7   with local workforce councils and local elected officials. 
 44.8      (h) The head of the workforce transition team shall consult 
 44.9   with at least one consumer who receives services through the 
 44.10  Minnesota Family Investment Program, or an advocate for such 
 44.11  consumers. 
 44.12     (i) The head of the workforce transition team shall consult 
 44.13  with nonprofit job training providers. 
 44.14     (j) In determining the placement in state government of 
 44.15  state services for the blind, the head of the transition team 
 44.16  shall consult with representatives from each of the following 
 44.17  groups: 
 44.18     (1) the rehabilitation council for the blind; 
 44.19     (2) the national federation of the blind; 
 44.20     (3) the American council of the blind; and 
 44.21     (4) the united blind of Minnesota. 
 44.22     (k) The commissioners of trade and economic development, 
 44.23  economic security, and labor and industry, must cooperate with 
 44.24  and provide staff support to the workforce transition team.  The 
 44.25  support includes, but is not limited to, professional, 
 44.26  technical, and clerical staff necessary to fully assess the 
 44.27  programs under paragraph (a). 
 44.28     (l) The transition team shall propose revisions to the 
 44.29  state unified plan submitted to the United States Department of 
 44.30  Labor under the Workforce Investment Act of 1998 to remove all 
 44.31  references to Goals 2000, federally mandated school-to-work 
 44.32  programs, and linkages between K-12 education and workforce 
 44.33  development, and to reflect consideration of the concerns of the 
 44.34  parties with whom the transition team is required by law to 
 44.35  consult.  Career tracking of individuals, or contractual 
 44.36  agreements to undertake the same, are not authorized. The 
 45.1   proposed plan revisions shall be submitted to the legislature by 
 45.2   December 15, 2001. 
 45.3      (m) The transition team shall determine where to house the 
 45.4   unemployment insurance program, taking into consideration the 
 45.5   possibilities of transferring the program to the department of 
 45.6   labor and industry or the new agency, the department of jobs, 
 45.7   economic development, and trade. 
 45.8      (n) The transition team shall, as part of its consideration 
 45.9   of the unemployment insurance program, study the feasibility of 
 45.10  transferring all or part of the responsibility for collecting 
 45.11  unemployment insurance taxes and other assessments collected 
 45.12  with those taxes to the department of revenue. 
 45.13     (o) The transition team's report to the legislature shall 
 45.14  include consideration of whether the Minnesota career 
 45.15  information system operated by the department of children, 
 45.16  families, and learning and the ISEEK system operated by the 
 45.17  Minnesota state colleges and universities are duplicative, and 
 45.18  if so, the potential for a consolidated system.  The report 
 45.19  shall also recommend where such a consolidated system, if 
 45.20  appropriate, should be housed. 
 45.21     (p) The head of the workforce transition team shall develop 
 45.22  recommendations for statutory and administrative changes 
 45.23  necessary to strengthen the oversight and management 
 45.24  responsibilities of local workforce councils and local elected 
 45.25  officials to ensure the efficient operation of the workforce 
 45.26  center system and to ensure better coordination of service 
 45.27  delivery at the community level. 
 45.28     (q) Notwithstanding any law to the contrary, the head of 
 45.29  the workforce transition team shall have access to private or 
 45.30  nonpublic data necessary to carry out the objective of paragraph 
 45.31  (a). 
 45.32     (r) The head of the workforce transition team shall be in 
 45.33  the unclassified service of the state and may hire employees in 
 45.34  the unclassified service. 
 45.35     (s) This section shall expire June 30, 2002. 
 45.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 46.1      Sec. 29.  [CAREER TRACKING.] 
 46.2      As used in this section, "career tracking" is defined as 
 46.3   identifying individuals for the selective presentation of 
 46.4   specific course offerings or training programs to students or 
 46.5   prospective trainees, based upon a government entity's or a 
 46.6   workforce council's preference for an industry, a company, or a 
 46.7   skill set.  Career tracking is prohibited. 
 46.8      Sec. 30.  [TRANSFER.] 
 46.9      The responsibility for administration of the energy 
 46.10  assistance, reach out for warmth, and weatherization programs in 
 46.11  the department of economic security is transferred to the 
 46.12  department of commerce. 
 46.13     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 46.14     Sec. 31.  [ACCOUNT ESTABLISHED.] 
 46.15     The contingency account is created in the special revenue 
 46.16  fund.  The contingency account in the special revenue fund 
 46.17  expires on June 30, 2003, and any remaining balance is canceled 
 46.18  and transferred to the general fund. 
 46.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 46.20  following final enactment. 
 46.21     Sec. 32.  [TRANSFER.] 
 46.22     $1,538,000 is transferred in fiscal year 2001 from the 
 46.23  general fund to the contingency account in the special revenue 
 46.24  fund. 
 46.25     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 46.26  following final enactment. 
 46.27     Sec. 33.  [MINNESOTA WORKERS' COMPENSATION ASSIGNED RISK 
 46.28  PLAN SURPLUS TRANSFER.] 
 46.29     On or before June 30, 2001, the commissioner of finance 
 46.30  must transfer $73,000,000 of the assets of the assigned risk 
 46.31  plan to the contingency account in the special revenue fund. 
 46.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 46.33  following final enactment. 
 46.34     Sec. 34.  [TRAINING FOR LOW-INCOME WORKERS.] 
 46.35     The job skills partnership board shall operate a pilot 
 46.36  project to fund creative job training programs for low-income 
 47.1   individuals.  Funds shall be used for grants for projects that 
 47.2   will serve individuals who are training-ready, have incomes 
 47.3   below 200 percent of the federal poverty line, and have 
 47.4   dependent children, but are not eligible for training services 
 47.5   under the Minnesota Family Investment Program.  Training funded 
 47.6   with grants provided under this section should be flexible and 
 47.7   responsive in order to maximize the ability of funded programs 
 47.8   to adapt to changes in economic and business conditions.  
 47.9   Eligible recipients of grants include: 
 47.10     (1) local workforce boards, nonprofit job training 
 47.11  providers, and educational institutions; and 
 47.12     (2) partnerships of two or more eligible recipients under 
 47.13  clause (1), or partnerships of one or more eligible recipients 
 47.14  and the Council on Black Minnesotans, the Chicano-Latino Affairs 
 47.15  Council, the Council on Asian-Pacific Minnesotans, the Indian 
 47.16  Affairs Council, the Minneapolis Community Development Agency, 
 47.17  or the St. Paul port authority. 
 47.18     The job skills partnership board shall report to the 
 47.19  legislature on the performance and progress of the pilot project 
 47.20  on or before September 1, 2003. 
 47.21     Sec. 35.  [WORKFORCE ENHANCEMENT FEE.] 
 47.22     Subdivision 1.  [FEE.] Notwithstanding Minnesota Statutes, 
 47.23  section 268.022, effective January 1, 2002, the special 
 47.24  assessment under that section on taxable wages as defined in 
 47.25  Minnesota Statutes, section 268.035, subdivision 24, is 
 47.26  suspended until December 31, 2005.  Effective January 1, 2002, 
 47.27  there shall be assessed, in addition to unemployment taxes due 
 47.28  under Minnesota Statutes, section 268.051, a workforce 
 47.29  enhancement fee of .07 percent on taxable wages.  This fee shall 
 47.30  be due and be paid on the same schedule and in the same manner 
 47.31  as unemployment taxes under Minnesota Statutes, section 
 47.32  268.051.  Any amount past due under this section shall be 
 47.33  subject to the same interest and collection provisions as 
 47.34  unemployment taxes.  This fee shall expire on December 31, 2005. 
 47.35     Subd. 2.  [USE OF FUNDS COLLECTED.] An amount equal to .05 
 47.36  percent on taxable wages shall be deposited in the workforce 
 48.1   development fund provided for under Minnesota Statutes, section 
 48.2   268.022, subdivision 2.  An amount equal to .02 percent on 
 48.3   taxable wages, less reimbursement for collection costs of the 
 48.4   total amount of the fee, shall be deposited in the unemployment 
 48.5   insurance technology initiative account provided for in section 
 48.6   32. 
 48.7      Sec. 36.  [UNEMPLOYMENT INSURANCE TECHNOLOGY INITIATIVE.] 
 48.8      Subdivision 1.  [PURPOSE; SET-ASIDE.] The unemployment 
 48.9   insurance technology initiative involves a set-aside of a 
 48.10  portion of the money that would otherwise go into the 
 48.11  unemployment insurance trust fund.  This money will be used on 
 48.12  technology to substantially enhance unemployment insurance 
 48.13  services to both applicants for benefits and employers. 
 48.14     Subd. 2.  [TAX REDUCTION.] Notwithstanding Minnesota 
 48.15  Statutes, section 268.051, subdivision 2, paragraph (b), 
 48.16  effective January 1, 2002, the base unemployment tax on all 
 48.17  taxable wages shall be reduced by .02 percent.  This subdivision 
 48.18  expires December 31, 2005. 
 48.19     Subd. 3.  [ACCOUNT.] (a) Effective January 1, 2002, the 
 48.20  unemployment insurance technology initiative account is created 
 48.21  as a special account in the special revenue fund in the state 
 48.22  treasury.  This account lapses on December 31, 2007, and any 
 48.23  money remaining in the account on that date shall be paid into 
 48.24  the unemployment insurance program trust fund.  This account 
 48.25  consists of all money collected by the workforce enhancement fee 
 48.26  provided by section 31 and all interest earned on any money in 
 48.27  this account, less reimbursement of collection costs under 
 48.28  paragraph (e). 
 48.29     (b) Money in the unemployment insurance technology 
 48.30  initiative account is appropriated to the commissioner of 
 48.31  economic security and shall be allocated and expended by the 
 48.32  commissioner only for technology initiatives to enhance 
 48.33  unemployment insurance services for both applicants for benefits 
 48.34  and employers. 
 48.35     (c) Any funds not allocated, obligated, or expended in a 
 48.36  fiscal year shall be available for allocation, obligation, and 
 49.1   expenditure in the following fiscal year. 
 49.2      (d) If the total amount in the account exceeds $30,000,000 
 49.3   on June 30 of any year, the excess shall be paid into the 
 49.4   unemployment insurance program trust fund. 
 49.5      (e) Because the administrative cost of collection of the 
 49.6   workforce enhancement fee is borne by federal money made 
 49.7   available only to administer the unemployment insurance program, 
 49.8   the commissioner shall negotiate with the United States 
 49.9   Department of Labor the amount of any reimbursement for costs 
 49.10  related to the collection of the fee.  Because the reimbursement 
 49.11  is subsequently made available by the United States Department 
 49.12  of Labor to the commissioner for administration of the 
 49.13  unemployment insurance program, the commissioner shall expend 
 49.14  the reimbursement on personnel costs of operating the 
 49.15  unemployment insurance program's technology services. 
 49.16     Sec. 37.  [SUNSET.] 
 49.17     Section 35 expires on December 31, 2005.  Section 36 
 49.18  expires on December 31, 2007. 
 49.19     Sec. 38.  [IMPORTANCE.] 
 49.20     The Little Elk Heritage Preserve, a 92.25 acre 
 49.21  archaeological park and nature preserve on the Mississippi river 
 49.22  near Little Falls, contains a unique cluster of cultural and 
 49.23  natural resources that together document diverse human 
 49.24  activities and connections to natural environments in central 
 49.25  Minnesota over thousands of years.  The resources at Little Elk 
 49.26  Heritage Preserve include archaeological remains identified with 
 49.27  ancient native America, the colonial fur trade, early Dakota and 
 49.28  Ojibwe life, Black and women's history, Mississippi valley 
 49.29  exploration, a mission farm and school, United States Indian 
 49.30  treaties, territorial period homesteading and townsite 
 49.31  development, the conflict of 1862, hunting, gathering, 
 49.32  portaging, quarrying, logging, farming, dam building, grist 
 49.33  milling, saw milling, and wood products manufacturing.  Ongoing 
 49.34  research programs explore and interpret these important 
 49.35  resources. 
 49.36     Sec. 39.  [HISTORIC SITE DEFINITION; LITTLE ELK HERITAGE 
 50.1   PRESERVE.] 
 50.2      The state register of historic places listing for the 
 50.3   Little Elk Heritage Preserve includes those portions of the 
 50.4   preserve that contain significant archaeological or historic 
 50.5   resources. 
 50.6      Sec. 40.  [TRANSFER TO COUNTY HISTORICAL SOCIETY.] 
 50.7      Notwithstanding Minnesota Statutes 2000, chapter 134 and 
 50.8   section 138.053, the city of Anoka may transfer before January 
 50.9   1, 2002, the balance in the city of Anoka library fund to the 
 50.10  Anoka county historical society for the society's use for any 
 50.11  Anoka county historical society purpose. 
 50.12     Sec. 41.  [BOARD OF ACCOUNTANCY FEE.] 
 50.13     The legislature approves the board of accountancy's 
 50.14  proposed fee increase included in the governor's 2002-2003 
 50.15  biennial budget. 
 50.16     Sec. 42.  [ELECTRONIC REPORTING; FORMAT.] 
 50.17     In developing electronic reporting systems developed by the 
 50.18  department of labor and industry for use in the administration 
 50.19  of the workers' compensation system, the department must consult 
 50.20  with the International Association of Industrial Accident Boards 
 50.21  and Commissions so that the department's format of data elements 
 50.22  and their definitions conform as closely as possible to the data 
 50.23  dictionary used by the IAIABC. 
 50.24     Sec. 43.  [REPEALER.] 
 50.25     (a) Minnesota Statutes 2000, sections 268.96; 268.975; 
 50.26  268.976; 268.9771; 268.978; 268.9781; 268.9782; 268.9783; 
 50.27  268.979; and 268.98, are repealed. 
 50.28     (b) Minnesota Statutes 2000, sections 184.22, subdivisions 
 50.29  2, 3, 4, and 5; and 184.37, subdivision 2, are repealed. 
 50.30     (c) Minnesota Statutes 2000, sections 138A.01; 138A.02; 
 50.31  138A.03; 138A.04; 138A.05; and 138A.06, are repealed. 
 50.32     <b>[EFFECTIVE DATE.]</b> Paragraph (b) of this section is 
 50.33  effective July 1, 2003. 
 50.34     Sec. 44.  [EFFECTIVE DATE.] 
 50.35     Laws 2000, chapter 492, article 1, section 60, is effective 
 50.36  for grants and loans for which application is made after July 1, 
 51.1   2000. 
 51.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 51.3   following final enactment. 
 51.4                              ARTICLE 3 
 51.5                HOUSING PROGRAM AND TECHNICAL CHANGES 
 51.6      Section 1.  Minnesota Statutes 2000, section 462A.01, is 
 51.7   amended to read: 
 51.8      462A.01 [CITATION.] 
 51.9      Sections 462A.01 to ~~462A.24~~ 462A.33 shall be known as and 
 51.10  may be cited as the "Minnesota Housing Finance Agency Law of 
 51.11  1971."  
 51.12     Sec. 2.  Minnesota Statutes 2000, section 462A.03, 
 51.13  subdivision 1, is amended to read: 
 51.14     Subdivision 1.  [APPLICATION.] For the purpose of ~~sections~~ 
 51.15  ~~462A.01 to 462A.24~~ this chapter, the terms defined in this 
 51.16  section have the meanings ascribed to them. 
 51.17     Sec. 3.  Minnesota Statutes 2000, section 462A.03, 
 51.18  subdivision 6, is amended to read: 
 51.19     Subd. 6.  [AGENCY.] "Agency" means the Minnesota housing 
 51.20  finance agency created by ~~sections 462A.01 to 462A.24~~ this 
 51.21  chapter. 
 51.22     Sec. 4.  Minnesota Statutes 2000, section 462A.03, 
 51.23  subdivision 10, is amended to read: 
 51.24     Subd. 10.  [PERSONS AND FAMILIES OF LOW AND MODERATE 
 51.25  INCOME.] "Persons and families of low and moderate income" means 
 51.26  persons and families, irrespective of race, creed, national 
 51.27  origin, sex, or status with respect to guardianship or 
 51.28  conservatorship, determined by the agency to require such 
 51.29  assistance as is made available by ~~sections 462A.01 to 462A.24~~ 
 51.30  this chapter on account of personal or family income not 
 51.31  sufficient to afford adequate housing.  In making such 
 51.32  determination the agency shall take into account the following:  
 51.33  (a) The amount of the total income of such persons and families 
 51.34  available for housing needs, (b) the size of the family, (c) the 
 51.35  cost and condition of housing facilities available, (d) the 
 51.36  eligibility of such persons and families to compete successfully 
 52.1   in the normal housing market and to pay the amounts at which 
 52.2   private enterprise is providing sanitary, decent and safe 
 52.3   housing.  In the case of federally subsidized mortgages with 
 52.4   respect to which income limits have been established by any 
 52.5   agency of the federal government having jurisdiction thereover 
 52.6   for the purpose of defining eligibility of low and moderate 
 52.7   income families, the limits so established shall govern under 
 52.8   the ~~provision~~ provisions of ~~sections 462A.01 to 462A.24~~ this 
 52.9   chapter.  In all other cases income limits for the purpose of 
 52.10  defining low or moderate income persons shall be established by 
 52.11  the agency by rules. 
 52.12     Sec. 5.  Minnesota Statutes 2000, section 462A.03, is 
 52.13  amended by adding a subdivision to read: 
 52.14     Subd. 23.  [METROPOLITAN AREA.] "Metropolitan area" has the 
 52.15  meaning given in section 473.121, subdivision 2. 
 52.16     Sec. 6.  Minnesota Statutes 2000, section 462A.04, 
 52.17  subdivision 6, is amended to read: 
 52.18     Subd. 6.  [MANAGEMENT, CONTROL.] The management and control 
 52.19  of the agency shall be vested solely in the members in 
 52.20  accordance with the provisions of ~~sections 462A.01 to 462A.24~~ 
 52.21  this chapter. 
 52.22     Sec. 7.  Minnesota Statutes 2000, section 462A.05, 
 52.23  subdivision 14, is amended to read: 
 52.24     Subd. 14.  [REHABILITATION LOANS.] It may agree to 
 52.25  purchase, make, or otherwise participate in the making, and may 
 52.26  enter into commitments for the purchase, making, or 
 52.27  participation in the making, of eligible loans for 
 52.28  rehabilitation to persons and families of low and moderate 
 52.29  income, and to owners of existing residential housing for 
 52.30  occupancy by such persons and families, for the rehabilitation 
 52.31  of existing residential housing owned by them.  The loans may be 
 52.32  insured or uninsured and may be made with security, or may be 
 52.33  unsecured, as the agency deems advisable.  The loans may be in 
 52.34  addition to or in combination with long-term eligible mortgage 
 52.35  loans under subdivision 3.  They may be made in amounts 
 52.36  sufficient to refinance existing indebtedness secured by the 
 53.1   property, if refinancing is determined by the agency to be 
 53.2   necessary to permit the owner to meet the owner's housing cost 
 53.3   without expending an unreasonable portion of the owner's income 
 53.4   thereon.  No loan for rehabilitation shall be made unless the 
 53.5   agency determines that the loan will be used primarily to make 
 53.6   the housing more desirable to live in, to increase the market 
 53.7   value of the housing, for compliance with state, county or 
 53.8   municipal building, housing maintenance, fire, health or similar 
 53.9   codes and standards applicable to housing, or to accomplish 
 53.10  energy conservation related improvements.  In unincorporated 
 53.11  areas and municipalities not having codes and standards, the 
 53.12  agency may, solely for the purpose of administering the 
 53.13  provisions of this chapter, establish codes and standards.  
 53.14  Except for accessibility improvements under this subdivision and 
 53.15  subdivisions 14a and 24, clause (1), no secured loan for 
 53.16  rehabilitation of any property shall be made in an amount which, 
 53.17  with all other existing indebtedness secured by the property, 
 53.18  would exceed 110 percent of its market value, as determined by 
 53.19  the agency.  No loan under this subdivision shall be denied 
 53.20  solely because the loan will not be used for placing the 
 53.21  residential housing in full compliance with all state, county, 
 53.22  or municipal building, housing maintenance, fire, health, or 
 53.23  similar codes and standards applicable to housing.  
 53.24  Rehabilitation loans shall be made only when the agency 
 53.25  determines that financing is not otherwise available, in whole 
 53.26  or in part, from private lenders upon equivalent terms and 
 53.27  conditions.  Accessibility rehabilitation loans authorized under 
 53.28  this subdivision may be made to eligible persons and families 
 53.29  without limitations relating to the maximum incomes of the 
 53.30  borrowers if: 
 53.31     (1) the borrower or a member of the borrower's family 
 53.32  requires a level of care provided in a hospital, skilled nursing 
 53.33  facility, or intermediate care facility for persons with mental 
 53.34  retardation or related conditions; 
 53.35     (2) home care is appropriate; and 
 53.36     (3) the improvement will enable the borrower or a member of 
 54.1   the borrower's family to reside in the housing. 
 54.2   The agency may waive any requirement that the housing units in a 
 54.3   residential housing development be rented to persons of low and 
 54.4   moderate income if the development consists of four or less 
 54.5   dwelling units, one of which is occupied by the owner. 
 54.6      Sec. 8.  Minnesota Statutes 2000, section 462A.05, 
 54.7   subdivision 14a, is amended to read: 
 54.8      Subd. 14a.  [REHABILITATION LOANS; EXISTING OWNER OCCUPIED 
 54.9   RESIDENTIAL HOUSING.] It may make loans to persons and families 
 54.10  of low and moderate income to rehabilitate or to assist in 
 54.11  rehabilitating existing residential housing owned and occupied 
 54.12  by those persons or families.  No loan shall be made unless the 
 54.13  agency determines that the loan will be used primarily for 
 54.14  rehabilitation work necessary for health or safety, essential 
 54.15  accessibility improvements, or to improve the energy efficiency 
 54.16  of the dwelling.  No loan for rehabilitation of owner occupied 
 54.17  residential housing shall be denied solely because the loan will 
 54.18  not be used for placing the residential housing in full 
 54.19  compliance with all state, county or municipal building, housing 
 54.20  maintenance, fire, health or similar codes and standards 
 54.21  applicable to housing.  The amount of any loan shall not exceed 
 54.22  the lesser of (a) a maximum loan amount determined under rules 
 54.23  adopted by the agency not to exceed $20,000, or (b) the actual 
 54.24  cost of the work performed, or (c) that portion of the cost of 
 54.25  rehabilitation which the agency determines cannot otherwise be 
 54.26  paid by the person or family without the expenditure of an 
 54.27  unreasonable portion of the income of the person or family.  
 54.28  Loans made in whole or in part with federal funds may exceed the 
 54.29  maximum loan amount to the extent necessary to comply with 
 54.30  federal lead abatement requirements prescribed by the funding 
 54.31  source.  In making loans, the agency shall determine the 
 54.32  circumstances under which and the terms and conditions under 
 54.33  which all or any portion of the loan will be repaid and shall 
 54.34  determine the appropriate security for the repayment of the 
 54.35  loan.  Loans pursuant to this subdivision may be made with or 
 54.36  without interest or periodic payments.  ~~Loans made without~~ 
 55.1   ~~interest or periodic payments need not be repaid by the borrower~~ 
 55.2   ~~if the property for which the loan is made has not been sold,~~ 
 55.3   ~~transferred, or otherwise conveyed nor has it ceased to be the~~ 
 55.4   ~~principal place of residence of the borrower, within ten years~~ 
 55.5   ~~after the date of the loan.~~  
 55.6      Sec. 9.  Minnesota Statutes 2000, section 462A.05, 
 55.7   subdivision 16, is amended to read: 
 55.8      Subd. 16.  [PAYMENTS FOR STRUCTURAL DEFECTS.] (a) It may 
 55.9   make payments or expenditures from the housing development fund 
 55.10  to persons of low or moderate income, who are recipients of an 
 55.11  eligible loan as defined in section 462A.03, subdivision 11, or 
 55.12  who have purchased residential housing from a recipient of such 
 55.13  eligible loan, and who are owners and occupants of residential 
 55.14  housing constructed or rehabilitated under ~~sections 462A.01 to~~ 
 55.15  ~~462A.24~~ this chapter, when, in the agency's determination, such 
 55.16  residential housing contains defects or omissions which affect 
 55.17  the structural soundness, or the use and the livability of such 
 55.18  housing, including but not limited to defects or omissions in 
 55.19  materials, hardware, fixtures, design, workmanship and 
 55.20  landscaping of whatever kind and nature incorporated in said 
 55.21  housing and which are covered by an agency approved warranty, 
 55.22  for the purposes of (i) correcting such defects, or (ii) paying 
 55.23  the claims of the owner arising from such defects, provided, 
 55.24  that this authority shall exist only if the owner has requested 
 55.25  assistance from the agency not later than four years after the 
 55.26  issuance of the eligible loan, or where such residential housing 
 55.27  was rehabilitated under ~~sections 462A.01 to 462A.24~~ this chapter 
 55.28  only if the owner has requested assistance from the agency not 
 55.29  later than two years after the issuance of the eligible loan. 
 55.30     (b) If such owner elects to receive payments or 
 55.31  expenditures pursuant to this section, the agency is subrogated 
 55.32  to the right of such owner to recover damages against any party 
 55.33  or persons reasonably calculated to be responsible for such 
 55.34  damages. 
 55.35     (c) The agency may require from the seller of such 
 55.36  residential housing, or the contractor responsible for the 
 56.1   construction or rehabilitation of such housing, an agreement to 
 56.2   reimburse the agency for any payments and expenditures made 
 56.3   pursuant to this subdivision with respect to such residential 
 56.4   housing. 
 56.5      Sec. 10.  Minnesota Statutes 2000, section 462A.05, 
 56.6   subdivision 22, is amended to read: 
 56.7      Subd. 22.  [LOANS TO FINANCIAL INSTITUTIONS.] It may make 
 56.8   or participate in the making and enter into commitments for the 
 56.9   making of loans to any banking institution, savings association, 
 56.10  or other lender approved by the members, organized under the 
 56.11  laws of this or any other state or of the United States having 
 56.12  an office in this state, notwithstanding the provisions of 
 56.13  section 462A.03, subdivision 13, if it first determines that the 
 56.14  proceeds of such loans will be utilized for the purpose of 
 56.15  making loans to or for the benefit of eligible persons and 
 56.16  families as provided and in accordance with ~~sections 462A.01 to~~ 
 56.17  ~~462A.24~~ this chapter.  Loans pursuant to this subdivision shall 
 56.18  be secured, repaid and bear interest at the rate as determined 
 56.19  by the members.  
 56.20     Sec. 11.  Minnesota Statutes 2000, section 462A.05, 
 56.21  subdivision 26, is amended to read: 
 56.22     Subd. 26.  [FORMATION OF NONPROFIT CORPORATIONS.] It may, 
 56.23  when the agency determines it is necessary or desirable to carry 
 56.24  out its purposes and to exercise any or all of the powers 
 56.25  conferred upon it ~~under sections 462A.01 to 462A.24~~ by this 
 56.26  chapter, and subject to the provisions of subdivision 27, form 
 56.27  or consent to the formation of one or more corporations under 
 56.28  the Minnesota Nonprofit Corporation Act, as amended, or under 
 56.29  other laws of this state.  The agency may be a member of the 
 56.30  corporations, and the members and employees of the agency from 
 56.31  time to time may be members of the board of directors or 
 56.32  officers of the corporations.  The agency may enter into 
 56.33  agreements with them providing for the agency to approve various 
 56.34  aspects of their operations.  The agency may capitalize the 
 56.35  corporations and may acquire all or a part of the corporations' 
 56.36  share or member certificates.  The agency may require that it 
 57.1   approve aspects of the operation of the corporations including 
 57.2   the corporations' articles of incorporation or bylaws, 
 57.3   directors, projects and expenditures, and the sale or conveyance 
 57.4   of projects, and the issuance of obligations.  The agency may 
 57.5   agree to and may take title to property of the corporations upon 
 57.6   their dissolution. 
 57.7      Sec. 12.  Minnesota Statutes 2000, section 462A.06, 
 57.8   subdivision 1, is amended to read: 
 57.9      Subdivision 1.  [LISTED HERE.] For the purpose of 
 57.10  exercising the specific powers granted in section 462A.05 and 
 57.11  effectuating the other purposes of ~~sections 462A.01 to 462A.24~~ 
 57.12  this chapter, the agency shall have the general powers granted 
 57.13  in this section. 
 57.14     Sec. 13.  Minnesota Statutes 2000, section 462A.06, 
 57.15  subdivision 4, is amended to read: 
 57.16     Subd. 4.  [RULES.] It may make, and from time to time, 
 57.17  amend and repeal rules not inconsistent with the provisions of 
 57.18  ~~sections 462A.01 to 462A.24~~ this chapter.  
 57.19     Sec. 14.  Minnesota Statutes 2000, section 462A.07, 
 57.20  subdivision 10, is amended to read: 
 57.21     Subd. 10.  [HUMAN RIGHTS.] It may establish and enforce 
 57.22  such rules as may be necessary to insure compliance with chapter 
 57.23  363, and to insure that occupancy of housing assisted under 
 57.24  ~~sections 462A.01 to 462A.24~~ this chapter shall be open to all 
 57.25  persons, and that contractors and subcontractors engaged in the 
 57.26  construction of such housing shall provide an equal opportunity 
 57.27  for employment to all persons, without discrimination as to 
 57.28  race, color, creed, religion, national origin, sex, marital 
 57.29  status, age, and status with regard to public assistance or 
 57.30  disability. 
 57.31     Sec. 15.  Minnesota Statutes 2000, section 462A.07, 
 57.32  subdivision 12, is amended to read: 
 57.33     Subd. 12.  [USE OF OTHER AGENCIES.] It may delegate, use or 
 57.34  employ any federal, state, regional or local public or private 
 57.35  agency or organization, including organizations of physically 
 57.36  handicapped persons, upon terms it deems necessary or desirable, 
 58.1   to assist in the exercise of any of the powers granted ~~in~~ 
 58.2   ~~sections 462A.01 to 462A.24~~ by this chapter and to carry out the 
 58.3   objectives of ~~sections 462A.01 to 462A.24~~ this chapter and may 
 58.4   pay for the services from the housing development fund. 
 58.5      Sec. 16.  Minnesota Statutes 2000, section 462A.073, 
 58.6   subdivision 1, is amended to read: 
 58.7      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 58.8   section, the following terms have the meanings given them. 
 58.9      (b) "Existing housing" means single-family housing that (i) 
 58.10  has been previously occupied prior to the first day of the 
 58.11  origination period; or (ii) has been available for occupancy for 
 58.12  at least 12 months but has not been previously occupied.  
 58.13     (c) ~~"Metropolitan area" means the metropolitan area as~~ 
 58.14  ~~defined in section 473.121, subdivision 2.~~ 
 58.15     ~~(d)~~ "New housing" means single-family housing that has not 
 58.16  been previously occupied.  
 58.17     ~~(e)~~ (d) "Origination period" means the period that loans 
 58.18  financed with the proceeds of qualified mortgage revenue bonds 
 58.19  are available for the purchase of single-family housing.  The 
 58.20  origination period begins when financing actually becomes 
 58.21  available to the borrowers for loans.  
 58.22     ~~(f)~~ (e) "Redevelopment area" means a compact and contiguous 
 58.23  area within which the city finds by resolution that 70 percent 
 58.24  of the parcels are occupied by buildings, streets, utilities, or 
 58.25  other improvements and more than 25 percent of the buildings, 
 58.26  not including outbuildings, are structurally substandard to a 
 58.27  degree requiring substantial renovation or clearance. 
 58.28     ~~(g)~~ (f) "Single-family housing" means dwelling units 
 58.29  eligible to be financed from the proceeds of qualified mortgage 
 58.30  revenue bonds under federal law. 
 58.31     ~~(h)~~ (g) "Structurally substandard" means containing defects 
 58.32  in structural elements or a combination of deficiencies in 
 58.33  essential utilities and facilities, light, ventilation, fire 
 58.34  protection including adequate egress, layout and condition of 
 58.35  interior partitions, or similar factors, which defects or 
 58.36  deficiencies are of sufficient total significance to justify 
 59.1   substantial renovation or clearance. 
 59.2      Sec. 17.  Minnesota Statutes 2000, section 462A.15, is 
 59.3   amended to read: 
 59.4      462A.15 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 
 59.5      The state pledges and agrees with the holders of any notes 
 59.6   or bonds issued under ~~sections 462A.01 to 462A.24~~ this chapter, 
 59.7   that the state will not limit or alter the rights vested in the 
 59.8   agency to fulfill the terms of any agreements made with the 
 59.9   holders thereof, or in any way impair the rights and remedies of 
 59.10  the holders until the notes or bonds, together with the interest 
 59.11  thereon, with interest on any unpaid installments of interest, 
 59.12  and all costs and expenses in connection with any action or 
 59.13  proceeding by or on behalf of such holders, are fully met and 
 59.14  discharged.  The agency is authorized to include this pledge and 
 59.15  agreement of the state in any agreement with the holders of such 
 59.16  notes or bonds.  
 59.17     Sec. 18.  Minnesota Statutes 2000, section 462A.17, 
 59.18  subdivision 3, is amended to read: 
 59.19     Subd. 3.  [RAMSEY COUNTY VENUE; NOTICE OF PRINCIPAL DUE.] 
 59.20  The venue of any action or proceedings brought by the trustees 
 59.21  under ~~sections 462A.01 to 462A.24~~ this chapter, shall be in 
 59.22  Ramsey county.  Before declaring the principal of notes or bonds 
 59.23  due and payable, the trustee shall first give 30 days' notice in 
 59.24  writing to the governor, to the agency and to the state 
 59.25  treasurer.  
 59.26     Sec. 19.  Minnesota Statutes 2000, section 462A.20, 
 59.27  subdivision 3, is amended to read: 
 59.28     Subd. 3.  [SEPARATE ACCOUNTS; TRANSFERS; LIMITS.] Whenever 
 59.29  any money is appropriated by the state to the agency solely for 
 59.30  a specified purpose or purposes, the agency shall establish a 
 59.31  separate bookkeeping account or accounts in the housing 
 59.32  development fund to record the receipt and disbursement of such 
 59.33  money and of the income, gain, and loss from the investment and 
 59.34  reinvestment thereof.  Earnings from investment of any amounts 
 59.35  appropriated by the state to the agency for a specified purpose 
 59.36  or purposes may be aggregated.  The costs and expenses necessary 
 60.1   and incidental to the development and operation of all programs 
 60.2   funded by state appropriations may be paid from the aggregated 
 60.3   earnings from investments prior to periodic distributions of 
 60.4   earnings to separate accounts to be used for the same purpose as 
 60.5   the respective original appropriation.  The agency may transfer 
 60.6   unencumbered balances from one appropriated account to another, 
 60.7   provided that no money appropriated for the purpose of agency 
 60.8   loan programs may be transferred to an account to be used for 
 60.9   making grants, except that money appropriated for the purpose of 
 60.10  section 462A.05, subdivision 14a, may be transferred for the 
 60.11  purpose of section 462A.05, subdivision 15a.  
 60.12     Sec. 20.  [462A.2035] [MANUFACTURED HOME PARK REDEVELOPMENT 
 60.13  PROGRAM.] 
 60.14     Subdivision 1.  [ESTABLISHMENT.] The agency shall establish 
 60.15  a manufactured home park redevelopment program for the purpose 
 60.16  of making manufactured home park redevelopment grants or loans 
 60.17  to cities, counties, or community action programs.  Cities, 
 60.18  counties, and community action programs may use grants and loans 
 60.19  under this program to: 
 60.20     (1) assist with the purchase of existing manufactured homes 
 60.21  in manufactured home parks with preference given to older 
 60.22  manufactured homes and buy-out assistance not to exceed $3,000 
 60.23  per home; 
 60.24     (2) provide down payment assistance to prospective 
 60.25  homeowners who have qualified through a bank or financial 
 60.26  institution for a major part of a loan for the purchase of new 
 60.27  manufactured homes, with preference given to replacing existing 
 60.28  homes in manufactured home parks and maximum down payment 
 60.29  assistance not to exceed $10,000 per home; and 
 60.30     (3) make improvements in manufactured home parks as 
 60.31  requested by the grant recipient. 
 60.32     Subd. 2.  [ELIGIBILITY REQUIREMENTS.] Households assisted 
 60.33  under this section must have an annual household income at or 
 60.34  below 80 percent of the area median household income.  Cities, 
 60.35  counties, or community action programs receiving funds under the 
 60.36  program must give preference to households at or below 50 
 61.1   percent of the area median household income.  Participation in 
 61.2   the program is voluntary and no park resident shall be required 
 61.3   to participate. 
 61.4      Sec. 21.  Minnesota Statutes 2000, section 462A.204, 
 61.5   subdivision 3, is amended to read: 
 61.6      Subd. 3.  [SET ASIDE.] At least one grant must be awarded 
 61.7   in an area located outside of the metropolitan area ~~as defined~~ 
 61.8   ~~in section 473.121, subdivision 2~~.  A county, a group of 
 61.9   contiguous counties jointly acting together, or a 
 61.10  community-based nonprofit organization with a sponsoring 
 61.11  resolution from each of the county boards of the counties 
 61.12  located within its operating jurisdiction may apply for and 
 61.13  receive grants for areas located outside the metropolitan area.  
 61.14     Sec. 22.  Minnesota Statutes 2000, section 462A.205, 
 61.15  subdivision 4, is amended to read: 
 61.16     Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
 61.17  subdivision applies to both the voucher option and the 
 61.18  project-based voucher option.  
 61.19     (b) Within the limits of available appropriations, eligible 
 61.20  families may receive monthly rent assistance for a 60-month 
 61.21  period starting with the month the family first receives rent 
 61.22  assistance under this section.  The amount of the family's 
 61.23  portion of the rental payment is equal to at least 30 percent of 
 61.24  gross income. 
 61.25     (c) The rent assistance must be paid by the local housing 
 61.26  organization to the property owner. 
 61.27     (d) Subject to the limitations in paragraph (e), the amount 
 61.28  of rent assistance is the difference between the rent and the 
 61.29  family's portion of the rental payment. 
 61.30     (e) In no case: 
 61.31     (1) may the amount of monthly rent assistance be more than 
 61.32  $250 for housing located within the metropolitan area~~, as~~ 
 61.33  ~~defined in section 473.121, subdivision 2,~~ or more than $200 for 
 61.34  housing located outside of the metropolitan area; 
 61.35     (2) may the owner receive more rent for assisted units than 
 61.36  for comparable unassisted units; nor 
 62.1      (3) may the amount of monthly rent assistance be more than 
 62.2   the difference between the family's portion of the rental 
 62.3   payment and the fair market rent for the unit as determined by 
 62.4   the Department of Housing and Urban Development. 
 62.5      Sec. 23.  Minnesota Statutes 2000, section 462A.205, 
 62.6   subdivision 4a, is amended to read: 
 62.7      Subd. 4a.  [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 
 62.8   the monthly rent assistance authorized under subdivision 4, rent 
 62.9   assistance may include up to $200 for a security deposit for 
 62.10  housing located outside the metropolitan area~~, as defined in~~ 
 62.11  ~~section 473.121, subdivision 2,~~ and up to $250 for a security 
 62.12  deposit for housing located within the metropolitan area. 
 62.13     Sec. 24.  Minnesota Statutes 2000, section 462A.2091, 
 62.14  subdivision 3, is amended to read: 
 62.15     Subd. 3.  [ELIGIBLE PROPERTY.] Contracts for deed eligible 
 62.16  for refinancing with guarantee fund assistance must be for the 
 62.17  purchase of an owner-occupied single-family or duplex 
 62.18  structure.  In a city of the first class in the metropolitan 
 62.19  area, ~~as defined in section 473.121, subdivision 2,~~ eligible 
 62.20  properties must be located in an area in which at least one 
 62.21  census tract meets at least three of the following four criteria:
 62.22     (1) at least 70 percent of the housing structures were 
 62.23  built before 1960; 
 62.24     (2) at least 60 percent of the single-family housing is 
 62.25  owner-occupied; 
 62.26     (3) the median market value of the area's owner-occupied 
 62.27  housing, as recorded in the most recent federal decennial 
 62.28  census, is not more than 100 percent of the purchase price limit 
 62.29  for existing homes eligible for purchase in the area under the 
 62.30  agency's home mortgage loan program; and 
 62.31     (4) between 1980 and 1990, the rate of owner occupancy of 
 62.32  residential properties in the area declined by at least five 
 62.33  percent, or at least 80 percent of the residential properties in 
 62.34  the area are rental properties.  
 62.35     The area must include eight blocks in any direction from 
 62.36  the census tract.  Priority must be given for property located 
 63.1   in an area that meets all four criteria.  
 63.2      Sec. 25.  Minnesota Statutes 2000, section 462A.2093, 
 63.3   subdivision 1, is amended to read: 
 63.4      Subdivision 1.  [DEFINITIONS.] For purposes of this 
 63.5   section, the following terms have the meanings given them in 
 63.6   this subdivision. 
 63.7      (a) "Municipality" means a town or a statutory or home rule 
 63.8   city. 
 63.9      (b) "Nonmetropolitan" means the area of the state outside 
 63.10  of the metropolitan area ~~defined in section 473.121, subdivision~~ 
 63.11  ~~2~~. 
 63.12     (c) "Inclusionary housing development" means a new 
 63.13  construction development including owner-occupied or rental 
 63.14  housing, or a combination of both, with a variety of prices and 
 63.15  designs which serve families with a range of incomes and housing 
 63.16  needs. 
 63.17     Sec. 26.  Minnesota Statutes 2000, section 462A.2097, is 
 63.18  amended to read: 
 63.19     462A.2097 [RENTAL HOUSING.] 
 63.20     The agency may establish a tenant-based or project-based 
 63.21  rental housing assistance program for persons of low income or 
 63.22  for persons with a mental illness or families that include an 
 63.23  adult family member with a mental illness.  Rental assistance 
 63.24  may be in the form of direct rental subsidies for housing for 
 63.25  persons or families with incomes, at the time of initial 
 63.26  occupancy, of up to 50 percent of the area median income as 
 63.27  determined by the United States Department of Housing and Urban 
 63.28  Development, adjusted for families of five or more.  Housing for 
 63.29  the mentally ill must be operated in coordination with social 
 63.30  service providers who provide services requested by tenants.  
 63.31  Direct rental subsidies must be administered by the agency for 
 63.32  the benefit of eligible tenants.  Financial assistance provided 
 63.33  under this section must be in the form of vendor payments 
 63.34  whenever possible. 
 63.35     Sec. 27.  Minnesota Statutes 2000, section 462A.21, 
 63.36  subdivision 5, is amended to read: 
 64.1      Subd. 5.  [OTHER AGENCY PURPOSES.] It may expend moneys in 
 64.2   the fund, not otherwise appropriated, for such other agency 
 64.3   purposes as previously enumerated in ~~sections 462A.01 to 462A.24~~ 
 64.4   this chapter as the agency in its discretion shall determine and 
 64.5   provide. 
 64.6      Sec. 28.  Minnesota Statutes 2000, section 462A.21, 
 64.7   subdivision 10, is amended to read: 
 64.8      Subd. 10.  [CERTAIN APPROPRIATIONS AVAILABLE UNTIL 
 64.9   EXPENDED.] Notwithstanding the repeal of section 462A.26 and the 
 64.10  provisions of section 16A.28 or any other law relating to lapse 
 64.11  of an appropriation, the appropriations made to the agency by 
 64.12  the legislature in 1976 and subsequent years are available until 
 64.13  fully expended, and the allocations provided in the 
 64.14  appropriations remain in effect.  Earnings from investments of 
 64.15  any of the amounts appropriated to the agency are appropriated 
 64.16  to the agency to be used for the same purposes as the respective 
 64.17  original appropriations, after payment of the costs and expenses 
 64.18  necessary and incidental to the development and operation of the 
 64.19  programs authorized under this chapter. 
 64.20     Sec. 29.  Minnesota Statutes 2000, section 462A.21, is 
 64.21  amended by adding a subdivision to read: 
 64.22     Subd. 28.  [FAMILY STABILIZATION DEMONSTRATION 
 64.23  PROJECT.] The agency may spend money for the purposes of section 
 64.24  462A.205 and may pay costs and expenses necessary and incidental 
 64.25  to the development and operation of the project. 
 64.26     Sec. 30.  Minnesota Statutes 2000, section 462A.21, is 
 64.27  amended by adding a subdivision to read: 
 64.28     Subd. 29.  [DISASTER RELIEF CONTINGENCY FUND.] It may 
 64.29  establish a disaster relief contingency fund to provide loans or 
 64.30  grants, on terms and conditions it deems advisable, to assist 
 64.31  with the rehabilitation or replacement of housing damaged as a 
 64.32  result of a natural disaster in areas of the state designated 
 64.33  under presidential declarations of a major disaster.  It may 
 64.34  transfer to the disaster relief contingency fund any repayments 
 64.35  of grants or loans made from appropriations specifically for 
 64.36  assistance after natural disasters in areas of the state 
 65.1   designated under a presidential declaration of a major disaster. 
 65.2      Sec. 31.  Minnesota Statutes 2000, section 462A.21, is 
 65.3   amended by adding a subdivision to read: 
 65.4      Subd. 30.  [MANUFACTURED HOME PARK REDEVELOPMENT.] The 
 65.5   agency may spend money for the purposes of section 462A.2035 and 
 65.6   may pay costs and expenses necessary and incidental to the 
 65.7   development and operation of the program. 
 65.8      Sec. 32.  Minnesota Statutes 2000, section 462A.222, 
 65.9   subdivision 1a, is amended to read: 
 65.10     Subd. 1a.  [DETERMINATION OF REGIONAL CREDIT POOLS.] The 
 65.11  agency shall divide the annual per capita amount used in 
 65.12  determining the state ceiling for low-income housing tax credits 
 65.13  provided under section 42 of the Internal Revenue Code of 1986, 
 65.14  as amended, into a metropolitan pool and a greater Minnesota 
 65.15  pool.  The metropolitan pool shall serve the metropolitan area 
 65.16  ~~as defined in section 473.121, subdivision 2~~.  The greater 
 65.17  Minnesota pool shall serve the remaining counties of the state.  
 65.18  The percentage of the annual per capita amount allotted to each 
 65.19  pool must be determined as follows: 
 65.20     (a) The percentage set-aside for projects involving a 
 65.21  qualified nonprofit organization as provided in section 42 of 
 65.22  the Internal Revenue Code of 1986, as amended, must be deducted 
 65.23  from the annual per capita amount used in determining the state 
 65.24  ceiling. 
 65.25     (b) Of the remaining amount, the metropolitan pool must be 
 65.26  allotted a percentage equal to the metropolitan counties' 
 65.27  percentage of the total number of state recipients of the 
 65.28  Minnesota family investment program, general assistance, 
 65.29  Minnesota supplemental aid, and supplemental security income in 
 65.30  the state, as reported annually by the department of human 
 65.31  services.  The greater Minnesota pool must be allotted the 
 65.32  amount remaining after the metropolitan pool's percentage has 
 65.33  been allotted. 
 65.34     The set-aside for qualified nonprofit organizations must be 
 65.35  divided between the two regional pools in the same percentage as 
 65.36  determined for the credit amounts above. 
 66.1      Sec. 33.  Minnesota Statutes 2000, section 462A.24, is 
 66.2   amended to read: 
 66.3      462A.24 [CONSTRUCTION.] 
 66.4      ~~Sections 462A.01 to 462A.24 are~~ This chapter is necessary 
 66.5   for the welfare of the state of Minnesota and its inhabitants; 
 66.6   therefore, it shall be liberally construed to effect its purpose.
 66.7      Sec. 34.  Minnesota Statutes 2000, section 462A.33, 
 66.8   subdivision 2, is amended to read: 
 66.9      Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
 66.10  may be made to a city, a private developer, a nonprofit 
 66.11  organization, or the owner of the housing, including 
 66.12  individuals.  For the purpose of this section, "city" has the 
 66.13  meaning given it in section 462A.03, subdivision 21.  Preference 
 66.14  shall be given to challenge grants or loans for home ownership.  
 66.15  To the extent practicable, grants and loans shall be made so 
 66.16  that an approximately equal number of housing units are financed 
 66.17  in the metropolitan area~~, as defined in section 473.121,~~ 
 66.18  ~~subdivision 2,~~ and in the nonmetropolitan area. 
 66.19     Sec. 35.  Laws 2000, chapter 488, article 8, section 2, 
 66.20  subdivision 6, is amended to read: 
 66.21  Subd. 6.  Economic Support Grants
 66.22      30,509,000     25,368,000                 
 66.23  The amounts that may be spent from this 
 66.24  appropriation for each purpose are as 
 66.25  follows: 
 66.26  [ASSISTANCE TO FAMILIES GRANTS TANF 
 66.27  FORECAST ADJUSTMENT.] The federal 
 66.28  Temporary Assistance to Needy Families 
 66.29  (TANF) block grant fund appropriated to 
 66.30  the commissioner of human services in 
 66.31  Laws 1999, chapter 245, article 1, 
 66.32  section 2, subdivision 10, for MFIP 
 66.33  cash grants are reduced by $37,513,000 
 66.34  in fiscal year 2000 and $30,217,000 in 
 66.35  fiscal year 2001. 
 66.36  [FEDERAL TANF FUNDS.] (1) In addition 
 66.37  to the Federal Temporary Assistance for 
 66.38  Needy Families (TANF) block grant funds 
 66.39  appropriated to the commissioner of 
 66.40  human services in Laws 1999, chapter 
 66.41  245, article 1, section 2, subdivision 
 66.42  10, federal TANF funds are appropriated 
 66.43  to the commissioner in amounts up to 
 66.44  $20,000,000 in fiscal year 2000 and 
 66.45  $80,440,000 in fiscal year 2001.  In 
 66.46  addition to these funds, the 
 66.47  commissioner may draw or transfer any 
 67.1   other appropriations of federal TANF 
 67.2   funds or transfers of federal TANF 
 67.3   funds that are enacted into state law. 
 67.4   (2) Of the amounts in clause (1), 
 67.5   $19,680,000 in fiscal year 2001 is for 
 67.6   the local intervention grants program 
 67.7   under Minnesota Statutes, section 
 67.8   256J.625 and related grant programs and 
 67.9   shall be expended as follows: 
 67.10  (a) $500,000 in fiscal year 2001 is for 
 67.11  a grant to the Southeast Asian MFIP 
 67.12  services collaborative to replicate in 
 67.13  a second location an existing model of 
 67.14  an intensive intervention transitional 
 67.15  employment training project which 
 67.16  serves TANF-eligible recipients and 
 67.17  which moves refugee and immigrant 
 67.18  welfare recipients unto unsubsidized 
 67.19  employment and leads to economic 
 67.20  self-sufficiency.  This is a one-time 
 67.21  appropriation. 
 67.22  (b) $500,000 in fiscal year 2001 is for 
 67.23  nontraditional career assistance and 
 67.24  training programs under Minnesota 
 67.25  Statutes, section 256K.30, subdivision 
 67.26  4.  This is a one-time appropriation. 
 67.27  (c) $18,680,000 is for local 
 67.28  intervention grants for 
 67.29  self-sufficiency program under 
 67.30  Minnesota Statutes, section 256J.625.  
 67.31  For fiscal years 2002 and 2003 the 
 67.32  commissioner of finance shall ensure 
 67.33  that the base level funding for the 
 67.34  local intervention grants program is 
 67.35  $27,180,000 each year. 
 67.36  (3) Of the amounts in clause (2), 
 67.37  paragraph (c) for local intervention 
 67.38  grants, $7,000,000 in fiscal year 2001 
 67.39  shall be transferred to the 
 67.40  commissioner of health for distribution 
 67.41  to county boards according to the 
 67.42  formula in Minnesota Statutes, section 
 67.43  256J.625, subdivision 3, to be used by 
 67.44  county public health boards to serve 
 67.45  families with incomes at or below 200 
 67.46  percent of the federal poverty 
 67.47  guidelines, in the manner specified by 
 67.48  Minnesota Statutes, section 145A.16, 
 67.49  subdivision 3, clauses (2) through 
 67.50  (6).  Training, evaluation and 
 67.51  technical assistance shall be provided 
 67.52  in accordance with Minnesota Statutes, 
 67.53  section 145A.16, subdivisions 5 to 7.  
 67.54  For fiscal years 2002 and 2003 the 
 67.55  commissioner of finance shall ensure 
 67.56  that the base level funding for this 
 67.57  activity is $7,000,000 each year. 
 67.58  (4) Of the amounts in clause (1), 
 67.59  $250,000 in fiscal year 2001 is 
 67.60  appropriated to the commissioner to 
 67.61  contract with the board of trustees of 
 67.62  the Minnesota state colleges and 
 67.63  universities to provide tuition waivers 
 67.64  to employees of health care and human 
 67.65  services providers located in the state 
 68.1   that are members of qualifying 
 68.2   consortia operating under Minnesota 
 68.3   Statutes, sections 116L.10 to 116L.15. 
 68.4   (5) Of the amounts in clause (1), 
 68.5   $320,000 in fiscal year 2001 is for 
 68.6   training job counselors about the MFIP 
 68.7   program.  For fiscal years 2002 and 
 68.8   2003 the commissioner of finance shall 
 68.9   ensure that the base level funding for 
 68.10  employment services includes $320,000 
 68.11  each year for this activity.  The 
 68.12  appropriations in this clause shall not 
 68.13  become part of the base for the 
 68.14  2004-2005 biennium. 
 68.15  (6) Of the amounts in clause (1), 
 68.16  $1,000,000 in fiscal year 2001 is for 
 68.17  out-of-wedlock pregnancy prevention 
 68.18  funds to serve children in 
 68.19  TANF-eligible families under Minnesota 
 68.20  Statutes, section 256K.35. For fiscal 
 68.21  years 2002 and 2003 the commissioner of 
 68.22  finance shall ensure that the base 
 68.23  level funding for this program is 
 68.24  $1,000,000 each year.  The 
 68.25  appropriations in this clause shall not 
 68.26  become part of the base for the 
 68.27  2004-2005 biennium. 
 68.28  (7) Of the amounts in clause (1), 
 68.29  $1,000,000 in fiscal year 2001 is to 
 68.30  provide services to TANF-eligible 
 68.31  families who are participating in the 
 68.32  supportive housing and managed care 
 68.33  pilot project under Minnesota Statutes, 
 68.34  section 256K.25.  For fiscal years 2002 
 68.35  and 2003 the commissioner of finance 
 68.36  shall ensure that the base level 
 68.37  funding for this project is $1,000,000 
 68.38  each year.  The appropriations in this 
 68.39  clause shall not become part of the 
 68.40  base for this project for the 2004-2005 
 68.41  biennium. 
 68.42  [TANF TRANSFER TO SOCIAL SERVICES.] 
 68.43  $7,500,000 is transferred from the 
 68.44  state's federal TANF block grant to the 
 68.45  state's federal Title XX block grant in 
 68.46  fiscal year 2001 and in fiscal year 
 68.47  2002, for purposes of increasing 
 68.48  services for families with children 
 68.49  whose incomes are at or below 200 
 68.50  percent of the federal poverty 
 68.51  guidelines.  Notwithstanding section 6, 
 68.52  this paragraph expires June 30, 2002. 
 68.53  [TANF MOE.] (a) In order to meet the 
 68.54  basic maintenance of effort (MOE) 
 68.55  requirements of the TANF block grant 
 68.56  specified under United States Code, 
 68.57  title 42, section 609(a)(7), the 
 68.58  commissioner may only report nonfederal 
 68.59  money expended for allowable activities 
 68.60  listed in the following clauses as TANF 
 68.61  MOE expenditures: 
 68.62  (1) MFIP cash and food assistance 
 68.63  benefits under Minnesota Statutes, 
 68.64  chapter 256J; 
 69.1   (2) the child care assistance programs 
 69.2   under Minnesota Statutes, sections 
 69.3   119B.03 and 119B.05, and county child 
 69.4   care administrative costs under 
 69.5   Minnesota Statutes, section 119B.15; 
 69.6   (3) state and county MFIP 
 69.7   administrative costs under Minnesota 
 69.8   Statutes, chapters 256J and 256K; 
 69.9   (4) state, county, and tribal MFIP 
 69.10  employment services under Minnesota 
 69.11  Statutes, chapters 256J and 256K; and 
 69.12  (5) expenditures made on behalf of 
 69.13  noncitizen MFIP recipients who qualify 
 69.14  for the medical assistance without 
 69.15  federal financial participation program 
 69.16  under Minnesota Statutes, section 
 69.17  256B.06, subdivision 4, paragraphs (d), 
 69.18  (e), and (j). 
 69.19  (b) The commissioner shall ensure that 
 69.20  sufficient qualified nonfederal 
 69.21  expenditures are made each year to meet 
 69.22  the state's TANF MOE requirements.  For 
 69.23  the activities listed in paragraph (a), 
 69.24  clauses (2) to (6), the commissioner 
 69.25  may only report expenditures that are 
 69.26  excluded from the definition of 
 69.27  assistance under Code of Federal 
 69.28  Regulations, title 45, section 260.31.  
 69.29  If nonfederal expenditures for the 
 69.30  programs and purposes listed in 
 69.31  paragraph (a) are insufficient to meet 
 69.32  the state's TANF MOE requirements, the 
 69.33  commissioner shall recommend additional 
 69.34  allowable sources of nonfederal 
 69.35  expenditures to the legislature, if the 
 69.36  legislature is or will be in session to 
 69.37  take action to specify additional 
 69.38  sources of nonfederal expenditures for 
 69.39  TANF MOE before a federal penalty is 
 69.40  imposed.  The commissioner shall 
 69.41  otherwise provide notice to the 
 69.42  legislative commission on planning and 
 69.43  fiscal policy under paragraph (d). 
 69.44  (c) If the commissioner uses authority 
 69.45  granted under Laws 1999, chapter 245, 
 69.46  article 1, section 10, or similar 
 69.47  authority granted by a subsequent 
 69.48  legislature, to meet the state's TANF 
 69.49  MOE requirements in a reporting period, 
 69.50  the commissioner shall inform the 
 69.51  chairs of the appropriate legislative 
 69.52  committees about all transfers made 
 69.53  under that authority for this purpose. 
 69.54  (d) If the commissioner determines that 
 69.55  nonfederal expenditures for the 
 69.56  programs under Minnesota Statutes, 
 69.57  section 256J.025, are insufficient to 
 69.58  meet TANF MOE expenditure requirements, 
 69.59  and if the legislature is not or will 
 69.60  not be in session to take timely action 
 69.61  to avoid a federal penalty, the 
 69.62  commissioner may report nonfederal 
 69.63  expenditures from other allowable 
 69.64  sources as TANF MOE expenditures after 
 69.65  the requirements of this paragraph are 
 70.1   met. 
 70.2   The commissioner may report nonfederal 
 70.3   expenditures in addition to those 
 70.4   specified under paragraph (a) as 
 70.5   nonfederal TANF MOE expenditures, but 
 70.6   only ten days after the commissioner of 
 70.7   finance has first submitted the 
 70.8   commissioner's recommendations for 
 70.9   additional allowable sources of 
 70.10  nonfederal TANF MOE expenditures to the 
 70.11  members of the legislative commission 
 70.12  on planning and fiscal policy for their 
 70.13  review. 
 70.14  (e) The commissioner of finance shall 
 70.15  not incorporate any changes in federal 
 70.16  TANF expenditures or nonfederal 
 70.17  expenditures for TANF MOE that may 
 70.18  result from reporting additional 
 70.19  allowable sources of nonfederal TANF 
 70.20  MOE expenditures under the interim 
 70.21  procedures in paragraph (d) into the 
 70.22  February or November forecasts required 
 70.23  under Minnesota Statutes, section 
 70.24  16A.103, unless the commissioner of 
 70.25  finance has approved the additional 
 70.26  sources of expenditures under paragraph 
 70.27  (d). 
 70.28  (f) The provisions of paragraphs (a) to 
 70.29  (e) supersede any contrary provisions 
 70.30  in Laws 1999, chapter 245, article 1, 
 70.31  section 2, subdivision 10. 
 70.32  (g) The provisions of Minnesota 
 70.33  Statutes, section 256.011, subdivision 
 70.34  3, which require that federal grants or 
 70.35  aids secured or obtained under that 
 70.36  subdivision be used to reduce any 
 70.37  direct appropriations provided by law 
 70.38  do not apply if the grants or aids are 
 70.39  federal TANF funds. 
 70.40  (h) Notwithstanding section 6 of this 
 70.41  article, paragraphs (a) to (g) expire 
 70.42  June 30, 2003. 
 70.43  (i) Paragraphs (a) to (h) are effective 
 70.44  the day following final enactment. 
 70.45  (a) Assistance to Families Grants
 70.46       9,628,000     (2,305,000)                
 70.47  (b) Work Grants
 70.48          -0-          (250,000)
 70.49  (c) AFDC and Other Assistance
 70.50      20,000,000     30,734,000 
 70.51  [TRANSFERS TO MINNESOTA HOUSING FINANCE 
 70.52  AGENCY.] (a) By June 30, 2001, the 
 70.53  commissioner shall transfer $50,000,000 
 70.54  of the general funds appropriated under 
 70.55  this paragraph to the Minnesota housing 
 70.56  finance agency for transfer to the 
 70.57  housing development fund.  The program 
 70.58  funded by this transfer shall be known 
 71.1   as the "Bruce F. Vento Year 2000 
 71.2   Affordable Housing Program." Up to 
 71.3   $15,000,000 may be transferred in 
 71.4   fiscal year 2000. 
 71.5   (b) Of the funds transferred in 
 71.6   paragraph (a), $5,000,000 in fiscal 
 71.7   year 2001 and $15,000,000 in fiscal 
 71.8   year 2002 is for a loan to Habitat for 
 71.9   Humanity of Minnesota, Inc.  The loan 
 71.10  shall be an interest-free deferred 
 71.11  loan.  The loan shall become due and 
 71.12  payable in the event and to the extent 
 71.13  that Habitat for Humanity of Minnesota, 
 71.14  Inc. does not invest repayments and 
 71.15  prepayment of mortgage loans financed 
 71.16  with this appropriation in new 
 71.17  mortgages for additional homebuyers 
 71.18  through Habitat for Humanity of 
 71.19  Minnesota, Inc.  To the extent 
 71.20  practicable, funding must be allocated 
 71.21  to Habitat for Humanity chapters on the 
 71.22  basis of the number of MFIP households 
 71.23  residing within a chapter's service 
 71.24  area compared to the statewide total of 
 71.25  MFIP households and on the basis of a 
 71.26  chapter's capacity. 
 71.27  (c) Of the funds transferred in 
 71.28  paragraph (a), $15,000,000 in fiscal 
 71.29  year 2001 and $15,000,000 in fiscal 
 71.30  year 2002 is for the affordable rental 
 71.31  investment fund program under Minnesota 
 71.32  Statutes, section 462A.21, subdivision 
 71.33  8b.  To the extent practicable, the 
 71.34  number of units financed with the 
 71.35  appropriation under this paragraph 
 71.36  within a city, county, or region shall 
 71.37  reflect the number of MFIP households 
 71.38  residing within the city, county, or 
 71.39  region compared to the statewide total 
 71.40  of MFIP households.  This appropriation 
 71.41  must be used to finance rental housing 
 71.42  units that serve families: 
 71.43  (1) receiving MFIP benefits under 
 71.44  Minnesota Statutes, section 256J.01, or 
 71.45  its successor program; and 
 71.46  (2) who have lost eligibility for MFIP 
 71.47  ~~due to increased income from employment~~ 
 71.48  ~~or due to the collection of child or~~ 
 71.49  ~~spousal support under part D of title~~ 
 71.50  ~~IV of the Social Security Act~~ for 
 71.51  reasons other than disqualification 
 71.52  from MFIP due to fraud. 
 71.53  Units produced with this appropriation 
 71.54  must remain affordable for a 30-year 
 71.55  period. 
 71.56  In order to coordinate the availability 
 71.57  of housing developed with the 
 71.58  appropriation under this paragraph with 
 71.59  MFIP families in need of affordable 
 71.60  housing, the commissioner of the 
 71.61  Minnesota housing finance agency, with 
 71.62  the assistance of the commissioner of 
 71.63  human services, shall establish 
 71.64  cooperative relationships with county 
 71.65  agencies as defined in Minnesota 
 72.1   Statutes, section 256J.08, local 
 72.2   employment and training service 
 72.3   providers as defined in Minnesota 
 72.4   Statutes, section 256J.49, local social 
 72.5   service agencies, or other 
 72.6   organizations that provide assistance 
 72.7   to MFIP households.  
 72.8   The commissioner of the Minnesota 
 72.9   housing finance agency shall develop 
 72.10  strategies to promote occupancy of the 
 72.11  units financed by the appropriation 
 72.12  under this paragraph by households most 
 72.13  in need of subsidized housing.  The 
 72.14  strategies shall include provisions 
 72.15  that encourage households to move into 
 72.16  homeownership or unsubsidized housing 
 72.17  as the household secures stable 
 72.18  employment and achieves 
 72.19  self-sufficiency.  The commissioner of 
 72.20  the Minnesota housing finance agency 
 72.21  shall consult with interested parties 
 72.22  in developing these strategies.  
 72.23  (d) The commissioner of the Minnesota 
 72.24  housing finance agency and the 
 72.25  commissioner of human services shall 
 72.26  jointly prepare and submit a report to 
 72.27  the governor and the legislature on the 
 72.28  results of the funding provided under 
 72.29  this section.  The report shall include:
 72.30  (1) information on the number of units 
 72.31  produced; 
 72.32  (2) the household size and income of 
 72.33  the occupants of the units at initial 
 72.34  occupancy; and 
 72.35  (3) to the extent the information is 
 72.36  available, measures related to the 
 72.37  occupants' attachment to the workforce 
 72.38  and public assistance usage, and number 
 72.39  of occupant moves. 
 72.40  The report must be submitted annually 
 72.41  beginning January 15, 2003. 
 72.42  (e) Section 6, sunset of uncodified 
 72.43  language, does not apply to paragraphs 
 72.44  (a) to (d).  Paragraphs (a) to (d) are 
 72.45  effective the day following final 
 72.46  enactment. 
 72.47  [WORKING FAMILY CREDIT.] (a) On a 
 72.48  regular basis, the commissioner of 
 72.49  revenue, with the assistance of the 
 72.50  commissioner of human services, shall 
 72.51  calculate the value of the refundable 
 72.52  portion of the Minnesota working family 
 72.53  credits provided under Minnesota 
 72.54  Statutes, section 290.0671, that 
 72.55  qualifies for federal reimbursement 
 72.56  from the temporary assistance to needy 
 72.57  families block grant.  The commissioner 
 72.58  of revenue shall provide the 
 72.59  commissioner of human services with 
 72.60  such expenditure records and 
 72.61  information as are necessary to support 
 72.62  draws of federal funds.  The 
 72.63  commissioner of human services shall 
 73.1   reimburse the commissioner of revenue 
 73.2   for the costs of providing the 
 73.3   information required by this paragraph. 
 73.4   (b) Federal TANF funds, as specified in 
 73.5   this paragraph, are appropriated to the 
 73.6   commissioner of human services based on 
 73.7   calculations under paragraph (a) of 
 73.8   working family tax credit expenditures 
 73.9   that qualify for reimbursement from the 
 73.10  TANF block grant for income tax refunds 
 73.11  payable in federal fiscal years 
 73.12  beginning October 1, 1999.  The draws 
 73.13  of federal TANF funds shall be made on 
 73.14  a regular basis based on calculations 
 73.15  of credit expenditures by the 
 73.16  commissioner of revenue.  Up to the 
 73.17  following amounts of federal TANF draws 
 73.18  are appropriated to the commissioner of 
 73.19  human services to deposit into the 
 73.20  general fund:  in fiscal year 2000, 
 73.21  $30,957,000; and in fiscal year 2001, 
 73.22  $33,895,000. 
 73.23  (d) General Assistance
 73.24          557,000    (3,134,000)
 73.25  (e) Minnesota Supplemental Aid
 73.26          324,000       323,000 
 73.27     Sec. 36.  [MANUFACTURED HOME PARK REDEVELOPMENT REPORT.] 
 73.28     The housing finance agency shall report to the legislature 
 73.29  by February 1, 2003, on the effectiveness of the program created 
 73.30  by Minnesota Statutes, section 462A.2035. 
 73.31     Sec. 37.  [REPEALER.] 
 73.32     Minnesota Statutes 2000, sections 462A.221, subdivision 4; 
 73.33  and 462A.30, subdivision 2, are repealed. 
 73.34                             ARTICLE 4
 73.35                   HOUSING PROGRAM CONSOLIDATION
 73.36     Section 1.  Minnesota Statutes 2000, section 462A.201, 
 73.37  subdivision 2, is amended to read: 
 73.38     Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may~~, in~~ 
 73.39  ~~consultation with the advisory committee,~~ use money from the 
 73.40  housing trust fund account to provide loans or grants for: 
 73.41     (1) projects for the development, construction, 
 73.42  acquisition, preservation, and rehabilitation of low-income 
 73.43  rental and limited equity cooperative housing units, including 
 73.44  temporary and transitional housing~~, and homes for ownership~~; 
 73.45     (2) the costs of operating rental housing, as determined by 
 73.46  the agency, that are unique to the operation of low-income 
 74.1   rental housing or supportive housing; and 
 74.2      (3) rental assistance, either project-based or tenant-based.
 74.3   For purposes of this section, "transitional housing" ~~means~~ 
 74.4   ~~housing that is provided for a limited duration not exceeding 24~~ 
 74.5   ~~months, except that up to one-third of the residents may live in~~ 
 74.6   ~~the housing for up to 36 months~~ has the meaning given by the 
 74.7   United States Department of Housing and Urban Development.  
 74.8   Loans or grants for residential housing for migrant farmworkers 
 74.9   may be made under this section.  ~~No more than 20 percent of~~ 
 74.10  ~~available funds may be used for home ownership projects.~~  
 74.11     (b) ~~A rental or limited equity cooperative permanent~~ 
 74.12  ~~housing project must meet one of the following income tests:~~ 
 74.13     ~~(1) at least 75 percent of the rental and cooperative units~~ 
 74.14  ~~must be rented to or cooperatively owned by persons and families~~ 
 74.15  ~~whose income does not exceed 30 percent of the median family~~ 
 74.16  ~~income for the metropolitan area as defined in section 473.121,~~ 
 74.17  ~~subdivision 2; or~~ 
 74.18     ~~(2) all~~ The housing trust fund account must be used for the 
 74.19  benefit of persons and families whose income, at the time of 
 74.20  initial occupancy, does not exceed 60 percent of median income 
 74.21  as determined by the United States Department of Housing and 
 74.22  Urban Development for the metropolitan area.  At least 75 
 74.23  percent of the ~~units funded by~~ funds in the housing trust fund 
 74.24  account must be used for the benefit of persons and families 
 74.25  whose income, at the time of initial occupancy, does not exceed 
 74.26  30 percent of the median family income for the metropolitan area 
 74.27  as defined in section 473.121, subdivision 2.  For purposes of 
 74.28  this section, a household with a housing assistance voucher 
 74.29  under section 8 of the United States Housing Act of 1937, as 
 74.30  amended, is deemed to meet the income requirements of this 
 74.31  section. 
 74.32     The median family income may be adjusted for families of 
 74.33  five or more. 
 74.34     (c) ~~Homes for ownership must be owned or purchased by~~ 
 74.35  ~~persons and families whose income does not exceed 50 percent of~~ 
 74.36  ~~the metropolitan area median income, adjusted for family size.~~ 
 75.1      ~~(d)~~ Rental assistance under this section must be provided 
 75.2   by governmental units which administer housing assistance 
 75.3   supplements or for-profit or by nonprofit organizations 
 75.4   experienced in housing management.  Rental assistance shall be 
 75.5   limited to households whose income at the time of initial 
 75.6   receipt of rental assistance does not exceed 60 percent of 
 75.7   median income, as determined by the United States Department of 
 75.8   Housing and Urban Development for the metropolitan area.  
 75.9   Priority among comparable applications for tenant-based rental 
 75.10  assistance will be given to proposals that will serve households 
 75.11  whose income at the time of initial application for rental 
 75.12  assistance does not exceed 30 percent of median income, as 
 75.13  determined by the United States Department of Housing and Urban 
 75.14  Development for the metropolitan area.  Rental assistance must 
 75.15  be terminated when it is determined that 30 percent of a 
 75.16  household's monthly income for four consecutive months equals or 
 75.17  exceeds the market rent for the unit in which the household 
 75.18  resides plus utilities for which the tenant is responsible.  
 75.19  Rental assistance may only be used for rental housing units that 
 75.20  meet the housing maintenance code of the local unit of 
 75.21  government in which the unit is located, if such a code has been 
 75.22  adopted, or the housing quality standards adopted by the United 
 75.23  States Department of Housing and Urban Development, if no local 
 75.24  housing maintenance code has been adopted.  
 75.25     (d) In making the loans or grants, the agency shall 
 75.26  determine the terms and conditions of repayment and the 
 75.27  appropriate security, if any, should repayment be required.  To 
 75.28  promote the geographic distribution of grants and loans, the 
 75.29  agency may designate a portion of the grant or loan awards to be 
 75.30  set aside for projects located in specified congressional 
 75.31  districts or other geographical regions specified by the 
 75.32  agency.  The agency may adopt rules for awarding grants and 
 75.33  loans under this subdivision. 
 75.34     Sec. 2.  Minnesota Statutes 2000, section 462A.201, 
 75.35  subdivision 6, is amended to read: 
 75.36     Subd. 6.  [REPORT.] The agency shall submit a biennial 
 76.1   report to the legislature and the governor ~~annually~~ on the use 
 76.2   of the housing trust fund account including the number of loans 
 76.3   and grants made, the number and types of residential units 
 76.4   assisted through the account, the number of households for whom 
 76.5   rental assistance payments were provided, and the number of 
 76.6   residential units assisted through the account that were rented 
 76.7   to or cooperatively owned by persons or families at or below 30 
 76.8   percent of the median family income of the metropolitan area at 
 76.9   the time of initial occupancy.  
 76.10     Sec. 3.  Minnesota Statutes 2000, section 462A.209, is 
 76.11  amended to read: 
 76.12     462A.209 [HOME OWNERSHIP ~~ASSISTANCE~~ EDUCATION, COUNSELING, 
 76.13  AND TRAINING PROGRAM.] 
 76.14     Subdivision 1.  [FULL CYCLE HOME OWNERSHIP SERVICES.] 
 76.15  The ~~full cycle home ownership services~~ homeownership education, 
 76.16  counseling, and training program shall be used to ~~fund~~ provide 
 76.17  funding to community-based nonprofit organizations and political 
 76.18  subdivisions ~~providing, building capacity to provide, or~~ 
 76.19  ~~supporting full cycle lending for~~ to assist them in building the 
 76.20  capacity to provide and providing full cycle home ownership 
 76.21  services to low and moderate income home buyers and homeowners, 
 76.22  including seniors.  The purpose of the program is to encourage 
 76.23  private investment in affordable housing and collaboration of 
 76.24  nonprofit organizations and political subdivisions with each 
 76.25  other and private lenders in providing full cycle ~~lending~~ 
 76.26  homeownership services. 
 76.27     Subd. 2.  [DEFINITION.] "Full cycle home ownership 
 76.28  services" means supporting eligible home buyers and ~~owners~~ home 
 76.29  owners through all phases of purchasing and keeping a home, by 
 76.30  providing prepurchase home buyer education~~,~~; prepurchase 
 76.31  counseling and credit repair~~,~~; prepurchase and postpurchase 
 76.32  property inspection and technical and financial assistance to 
 76.33  buyers in rehabilitating the home~~,~~; postpurchase counseling, 
 76.34  including home equity conversion loan counseling, mortgage 
 76.35  default counseling, postpurchase assistance with home 
 76.36  maintenance, entry cost assistance~~,~~; foreclosure prevention and 
 77.1   assistance; and access to flexible loan products. 
 77.2      Subd. 3.  [ELIGIBILITY.] The agency shall establish 
 77.3   eligibility criteria for nonprofit organizations and political 
 77.4   subdivisions to receive funding under this section.  The 
 77.5   eligibility criteria must require the nonprofit organization or 
 77.6   political subdivision to provide, to build capacity to provide, 
 77.7   or support full cycle home ownership services for eligible home 
 77.8   buyers.  The agency may fund a nonprofit organization or 
 77.9   political subdivision that will provide full cycle home 
 77.10  ownership services by coordinating with one or more other 
 77.11  organizations that will provide specific components of full 
 77.12  cycle home ownership services.  The agency may make exceptions 
 77.13  to providing all components of full cycle lending if justified 
 77.14  by the application.  If there are more applicants requesting 
 77.15  funding than there are funds available, the agency shall award 
 77.16  the funds on a competitive basis and also assure an equitable 
 77.17  geographic distribution of the available funds.  The eligibility 
 77.18  criteria must require the nonprofit organization or political 
 77.19  subdivision to have a demonstrated involvement in the local 
 77.20  community and to target the housing affordability needs of the 
 77.21  local community or to have demonstrated experience with 
 77.22  counseling older persons on housing, or both.  The eligibility 
 77.23  criteria may include a requirement for specific training 
 77.24  provided by designated state or national entities.  The agency 
 77.25  may also include an eligibility criteria that requires counselor 
 77.26  certification or organizational accreditation by specified 
 77.27  organizations which provide certification or accreditation 
 77.28  services.  Partnerships and collaboration with innovative, grass 
 77.29  roots, or community-based initiatives shall be encouraged.  The 
 77.30  agency shall give priority to nonprofit organizations and 
 77.31  political subdivisions that ~~provide matching funds~~ have funding 
 77.32  from other sources for full cycle homeownership services.  
 77.33  Applicants for funds under section 462A.057 may also apply funds 
 77.34  under this program. 
 77.35     Subd. 4.  [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 
 77.36  The agency may establish an entry cost home ownership 
 78.1   opportunity program, on terms and conditions it deems advisable, 
 78.2   to assist individuals with downpayment and closing costs to 
 78.3   finance the purchase of a home. 
 78.4      Subd. 5.  [SELECTION CRITERIA.] The agency shall take the 
 78.5   following criteria into consideration when determining whether 
 78.6   to award funds to an eligible organization: 
 78.7      (1) the extent to which there is an equitable geographic 
 78.8   distribution of funds among program applicants; 
 78.9      (2) the prior experience and documented familiarity of the 
 78.10  organization, as may be applicable, in establishing, 
 78.11  administering, and maintaining some or all of the components of 
 78.12  full cycle homeownership services; 
 78.13     (3) the reasonableness of the proposed budget in meeting 
 78.14  the program objectives, a demonstrated ability to leverage 
 78.15  program money with other sources of funding, and the extent of 
 78.16  the leveraging of other sources of funding; 
 78.17     (4) the extent to which efforts are targeted towards 
 78.18  households with incomes that do not exceed 80 percent of the 
 78.19  state or area median income or underserved segments of the local 
 78.20  population; and 
 78.21     (5) the extent to which program funding does not duplicate 
 78.22  other efforts currently available in the local area and will 
 78.23  enable, expand, or enhance existing activities. 
 78.24     Subd. 6.  [DESIGNATED AREAS.] A program administrator must 
 78.25  designate specific areas, communities, or neighborhoods within 
 78.26  which the program is proposed to be operated for the purpose of 
 78.27  focusing resources. 
 78.28     Subd. 7.  [ASSISTANCE TO PREVENT MORTGAGE FORECLOSURES.] (a)
 78.29  Program assistance and counseling to prevent mortgage 
 78.30  foreclosures or cancellations of contract for deeds includes 
 78.31  general information, screening, assessment, referral services, 
 78.32  case management, advocacy, and financial assistance to borrowers 
 78.33  who are delinquent on mortgage or contract for deed payments. 
 78.34     (b) Not more than one-half of funds awarded for foreclosure 
 78.35  prevention and assistance activities may be used for mortgage or 
 78.36  financial counseling services. 
 79.1      (c) Financial assistance consists of payments for 
 79.2   delinquent mortgage or contract for deed payments, future 
 79.3   mortgage or contract for deed payments for a period of up to six 
 79.4   months, property taxes, assessments, utilities, insurance, home 
 79.5   improvement repairs, future rent payments for a period of up to 
 79.6   six months, and relocation costs if necessary, or other costs 
 79.7   necessary to prevent foreclosure. 
 79.8      (d) An individual or family may receive a maximum of $5,500 
 79.9   of financial assistance to prevent a mortgage foreclosure or the 
 79.10  cancellation of a contract for deed. 
 79.11     (e) The agency may require the recipient of financial 
 79.12  assistance to enter into an agreement with the agency for 
 79.13  repayment.  The repayment agreement for mortgages or contract 
 79.14  for deed buyers must provide that in the event the property is 
 79.15  sold, transferred, or otherwise conveyed, or ceases to be the 
 79.16  recipient's principal place of residence, the recipient shall 
 79.17  repay all or a portion of the financial assistance.  The agency 
 79.18  may take into consideration financial hardship in determining 
 79.19  repayment requirements.  The repayment agreement may be secured 
 79.20  by a lien on the property for the benefit of the agency. 
 79.21     Subd. 8.  [REPORT.] By January 10 of every year, each 
 79.22  nonprofit organization that delivers services under this section 
 79.23  must submit a report to the agency that summarizes the number of 
 79.24  people served and the sources and amounts of nonstate money used 
 79.25  to fund the services.  The agency shall annually submit a report 
 79.26  to the legislature by February 15. 
 79.27     Sec. 4.  Minnesota Statutes 2000, section 462A.21, is 
 79.28  amended by adding a subdivision to read: 
 79.29     Subd. 27.  [ECONOMIC DEVELOPMENT AND HOUSING CHALLENGE 
 79.30  PROGRAM.] The agency may spend money for the purposes of section 
 79.31  462A.33 and may pay the costs and expenses necessary and 
 79.32  incidental to the development and operation of the program. 
 79.33     Sec. 5.  Minnesota Statutes 2000, section 462A.33, 
 79.34  subdivision 1, is amended to read: 
 79.35     Subdivision 1.  [CREATED.] The economic development and 
 79.36  housing challenge program is created to be administered by the 
 80.1   agency. 
 80.2      (a) The program shall provide grants or loans for the 
 80.3   purpose of construction, acquisition, rehabilitation, demolition 
 80.4   or removal of existing structures, construction financing, 
 80.5   permanent financing, interest rate reduction, refinancing, and 
 80.6   gap financing of housing to support economic development and 
 80.7   redevelopment activities or job creation or job preservation 
 80.8   within a community or region by meeting locally identified 
 80.9   housing needs. 
 80.10     Gap financing is either: 
 80.11     (i) the difference between the costs of the property, 
 80.12  including acquisition, demolition, rehabilitation, and 
 80.13  construction, and the market value of the property upon sale; or 
 80.14     (ii) the difference between the cost of the property and 
 80.15  the amount the targeted household can afford for housing, based 
 80.16  on industry standards and practices. 
 80.17     (b) Preference for grants and loans shall be given to 
 80.18  comparable proposals that include regulatory changes or waivers 
 80.19  that result in identifiable cost avoidance or cost reductions, 
 80.20  such as increased density, flexibility in site development 
 80.21  standards, or zoning code requirements.  Preference must also be 
 80.22  given among comparable proposals to proposals for projects that 
 80.23  are accessible to transportation systems, jobs, schools, and 
 80.24  other services. 
 80.25     (c) If a grant or loan is used for demolition or removal of 
 80.26  existing structures, the cleared land must be used for the 
 80.27  construction of housing to be owned or rented by persons who 
 80.28  meet the income limits of this section or for other 
 80.29  housing-related purposes that primarily benefit the persons 
 80.30  residing in the adjacent housing.  In making selections for 
 80.31  grants or loans for projects that demolish affordable housing 
 80.32  units, the agency must review the potential displacement of 
 80.33  residents and consider the extent to which displacement of 
 80.34  residents is minimized. 
 80.35     Sec. 6.  Minnesota Statutes 2000, section 462A.33, 
 80.36  subdivision 2, is amended to read: 
 81.1      Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
 81.2   may be made to a city, a private developer, a nonprofit 
 81.3   organization, or the owner of the housing, including 
 81.4   individuals.  For the purpose of this section, "city" has the 
 81.5   meaning given it in section 462A.03, subdivision 21.  ~~Preference~~ 
 81.6   ~~shall be given to challenge grants or loans for home ownership.~~  
 81.7   To the extent practicable, grants and loans shall be made so 
 81.8   that an approximately equal number of housing units are financed 
 81.9   in the metropolitan area, as defined in section 473.121, 
 81.10  subdivision 2, and in the nonmetropolitan area. 
 81.11     Sec. 7.  Minnesota Statutes 2000, section 462A.33, 
 81.12  subdivision 3, is amended to read: 
 81.13     Subd. 3.  [CONTRIBUTION REQUIREMENT~~; REGULATORY~~ 
 81.14  ~~FLEXIBILITY~~.] Fifty percent of the funds appropriated for this 
 81.15  section must be used for challenge grants or loans which meet 
 81.16  the requirements of this subdivision.  These challenge grants or 
 81.17  loans must be used for economically viable homeownership or 
 81.18  rental housing proposals that:  
 81.19     (1) include a financial or in-kind contribution from an 
 81.20  area employer and either a unit of local government or a private 
 81.21  philanthropic, religious, or charitable organization; and 
 81.22     (2) address the housing needs of the local work force.  
 81.23     For the purpose of this subdivision, an employer 
 81.24  contribution may consist partially or wholly of the premium paid 
 81.25  for federal housing tax credits.  ~~Preference for grants and~~ 
 81.26  ~~loans shall be given to comparable proposals that include~~ 
 81.27  ~~regulatory changes that result in identifiable cost avoidance or~~ 
 81.28  ~~cost reductions, such as increased density, flexibility in site~~ 
 81.29  ~~development standards, or zoning code requirements.~~  
 81.30     Preference for grants and loans shall also be given to 
 81.31  comparable proposals that include a financial or in-kind 
 81.32  contribution from a unit of local government, an area employer, 
 81.33  and a private philanthropic, religious, or charitable 
 81.34  organization. 
 81.35     Sec. 8.  Minnesota Statutes 2000, section 462A.33, 
 81.36  subdivision 5, is amended to read: 
 82.1      Subd. 5.  [INCOME LIMITS.] Households served through 
 82.2   challenge grants or loans must not have incomes at the time of 
 82.3   initial occupancy that exceed~~, for homeownership projects,~~ 115 
 82.4   percent of the greater of state or area median income as 
 82.5   determined by the United States Department of Housing and Urban 
 82.6   Development, ~~and for rental housing projects, 115 percent of the~~ 
 82.7   ~~greater of state or area median income as determined by the~~ 
 82.8   ~~United States Department of Housing and Urban Development~~ except 
 82.9   that the housing developed or rehabilitated with challenge fund 
 82.10  grants or loans must be affordable to the local work force. 
 82.11     Preference among comparable proposals shall be given to 
 82.12  those that provide housing opportunities for an expanded range 
 82.13  of household incomes within a community or that provide housing 
 82.14  opportunities for a wide range of incomes within the development.
 82.15     Sec. 9.  Minnesota Statutes 2000, section 462A.33, is 
 82.16  amended by adding a subdivision to read: 
 82.17     Subd. 8.  [LIMITATION ON RETURN.] The limitations on return 
 82.18  of eligible mortgagors contained in section 462A.03, subdivision 
 82.19  13, do not apply to loans or grants for rental housing if the 
 82.20  loans or grants made by the agency, from all sources, are less 
 82.21  than 50 percent of the total costs, as determined by the agency. 
 82.22     Sec. 10.  [REPEALER.] 
 82.23     Minnesota Statutes 2000, sections 462A.201, subdivision 4; 
 82.24  462A.207; 462A.209, subdivision 4; 462A.21, subdivision 17; and 
 82.25  462A.33, subdivisions 4, 6, and 7, are repealed. 
 82.26                             ARTICLE 5 
 82.27            CONSISTENT REGULATION OF MANAGED CARE PLANS 
 82.28     Section 1.  [62U.01] [DEFINITIONS.] 
 82.29     Subdivision 1.  [APPLICABILITY.] For purposes of this 
 82.30  chapter, the terms defined in this section have the meaning 
 82.31  given. 
 82.32     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
 82.33  commissioner of commerce. 
 82.34     Subd. 3.  [COPAYMENT.] "Copayment" means an amount an 
 82.35  enrollee must pay to receive a specific service that is not 
 82.36  fully prepaid.  Copayment includes coinsurance. 
 83.1      Subd. 4.  [DEDUCTIBLE.] "Deductible" means the amount an 
 83.2   enrollee is responsible to pay out-of-pocket before the managed 
 83.3   care organization begins to pay the costs associated with 
 83.4   treatment. 
 83.5      Subd. 5.  [ENROLLEE.] "Enrollee" means a natural person 
 83.6   covered by a health plan and includes an insured, policyholder, 
 83.7   subscriber, contract holder, member, certificate holder, or any 
 83.8   other natural person covered by a health plan, whether as a 
 83.9   spouse, dependent, former dependent, or otherwise. 
 83.10     Subd. 6.  [EVIDENCE OF COVERAGE.] "Evidence of coverage" 
 83.11  means a statement issued to an enrollee by the health plan 
 83.12  company or by the group policyholder or group contract holder 
 83.13  that sets out the coverage and other rights to which the 
 83.14  enrollee is entitled under the health benefit plan. 
 83.15     Subd. 7.  [FACILITY.] "Facility" means an institution 
 83.16  providing health care services or a health care setting, 
 83.17  including but not limited to a hospital or other licensed 
 83.18  inpatient center; an ambulatory surgical or treatment center; a 
 83.19  skilled nursing center; a residential treatment center; a 
 83.20  diagnostic, laboratory, or imaging center; or a rehabilitation 
 83.21  or other therapeutic health setting. 
 83.22     Subd. 8.  [HEALTH PLAN.] "Health plan" means a policy, 
 83.23  contract, certificate, or agreement offered or issued by a 
 83.24  health plan company to provide, deliver, arrange for, pay for, 
 83.25  or reimburse any of the costs of health care services.  Health 
 83.26  plan includes a policy or certificate of accident and sickness 
 83.27  insurance as defined in section 62A.01 offered by an insurance 
 83.28  company licensed under chapter 60A; a subscriber contract or 
 83.29  certificate offered by a nonprofit health service plan 
 83.30  corporation operating under chapter 62C; a health maintenance 
 83.31  contract or certificate offered by a health maintenance 
 83.32  organization operating under chapter 62D; health coverage 
 83.33  offered by a joint self-insurance employee health plan operating 
 83.34  under chapter 62H; or a health benefit certificate offered by a 
 83.35  fraternal benefit society operating under chapter 64B.  Health 
 83.36  plan means individual and group coverage, unless otherwise 
 84.1   specified.  Health plan does not include coverage that is: 
 84.2      (1) limited to disability or income protection coverage; 
 84.3      (2) automobile medical payment coverage; 
 84.4      (3) supplemental to liability insurance; 
 84.5      (4) designed solely to provide payments on a per diem, 
 84.6   fixed indemnity, or non-expense-incurred basis; 
 84.7      (5) credit accident and health insurance as defined in 
 84.8   section 62B.02; 
 84.9      (6) designed solely to provide dental or vision care; 
 84.10     (7) blanket accident and sickness insurance as defined in 
 84.11  section 62A.11; 
 84.12     (8) accident-only coverage; 
 84.13     (9) a long-term care policy as defined in section 62A.46 or 
 84.14  long-term care insurance as defined in 62S.01; 
 84.15     (10) issued as a supplement to Medicare, as defined in 
 84.16  sections 62A.31 to 62A.44, or policies, contracts, or 
 84.17  certificates that supplement Medicare issued by health 
 84.18  maintenance organizations or those policies, contracts, or 
 84.19  certificates governed by section 1833 or 1876 of the federal 
 84.20  Social Security Act, United States Code, title 42, sections 
 84.21  1395l and 1395mm, as amended; 
 84.22     (11) workers' compensation insurance; or 
 84.23     (12) issued solely as a companion to a health maintenance 
 84.24  contract as described in section 62D.12, subdivision 1a, so long 
 84.25  as the health maintenance contract meets the definition of a 
 84.26  health plan. 
 84.27     Subd. 9.  [HEALTH PLAN COMPANY.] "Health plan company" 
 84.28  means an entity subject to the insurance laws and regulations of 
 84.29  this state, or subject to the jurisdiction of the commissioner, 
 84.30  that contracts or offers to contract to provide, deliver, 
 84.31  arrange for, pay for, or reimburse any of the costs of health 
 84.32  care services, including an insurance company licensed under 
 84.33  chapter 60A; a nonprofit health service plan corporation 
 84.34  operating under chapter 62C; a health maintenance organization 
 84.35  operating under chapter 62D; a joint self-insurance employee 
 84.36  health plan that is subject to chapter 62H; a community 
 85.1   integrated service network as defined in section 62N.02, 
 85.2   subdivision 4a; a fraternal benefit society operating under 
 85.3   chapter 64B; or any other entity providing a plan of health 
 85.4   insurance, health benefits, or health services.  "Health plan 
 85.5   company" does not include an employer with respect to a 
 85.6   self-insured employee health benefit plan organized and offered 
 85.7   by the employer to its employees under the Federal Employee 
 85.8   Retirement Income Security Act of 1974, and this chapter does 
 85.9   not apply to those plans. 
 85.10     Subd. 10.  [HEALTH CARE PROFESSIONAL.] "Health care 
 85.11  professional" means a physician or other health care 
 85.12  practitioner licensed, accredited, or certified to perform 
 85.13  specified health care services consistent with state law. 
 85.14     Subd. 11.  [HEALTH CARE PROVIDER OR PROVIDER.] "Health care 
 85.15  provider" or "provider" means a health care professional or 
 85.16  facility. 
 85.17     Subd. 12.  [HEALTH CARE SERVICES.] "Health care services" 
 85.18  means services for the diagnosis, prevention, treatment, cure, 
 85.19  or relief of a health condition, illness, injury, or disease. 
 85.20     Subd. 13.  [INDIVIDUAL COVERAGE, INDIVIDUAL HEALTH PLAN, OR 
 85.21  INDIVIDUAL MANAGED CARE PLAN.] "Individual coverage," 
 85.22  "individual health plan," or "individual managed care plan" 
 85.23  means coverage, a health plan, or a managed care plan, as 
 85.24  appropriate, issued to and covering an individual.  The 
 85.25  individual coverage, health plan, or managed care plan, as 
 85.26  appropriate, may also cover dependents of the individual. 
 85.27     Subd. 14.  [MANAGED CARE PLAN.] (a) "Managed care plan" 
 85.28  means a health plan that either requires an enrollee to use or 
 85.29  creates incentives, including financial incentives, for an 
 85.30  enrollee to use health care providers managed, owned, or 
 85.31  employed by or under contract with the health plan company and 
 85.32  that results in an enrollee being subject to at least one of the 
 85.33  following: 
 85.34     (1) use of prescriptions included in a drug formulary, 
 85.35  unless a higher copayment is applied; 
 85.36     (2) use of a provider to coordinate some or all health care 
 86.1   services; 
 86.2      (3) having the enrollee's health care subject to 
 86.3   utilization review, as defined in section 62M.02, subdivision 
 86.4   20; and 
 86.5      (4) other managed care techniques designed to use health 
 86.6   care protocols to control costs or access to health care 
 86.7   services. 
 86.8      (b) A health plan is not a managed care plan if the 
 86.9   financial incentive to use certain health care providers is 
 86.10  solely the difference in the obligation of the enrollee to pay 
 86.11  for the balance of charges after the health plan company has 
 86.12  paid its usual and customary charges. 
 86.13     Subd. 15.  [PARTICIPATING PROVIDER.] "Participating 
 86.14  provider" means a provider that, under an express contract with 
 86.15  a health plan company or with its contractor or subcontractor, 
 86.16  has agreed to provide health care services to enrollees with an 
 86.17  expectation of receiving payment, other than copayments or 
 86.18  deductibles, directly or indirectly from the health plan company.
 86.19     Subd. 16.  [PERSON.] "Person" means an individual, a 
 86.20  corporation, a partnership, an association, a joint venture, a 
 86.21  joint stock company, a trust, an unincorporated organization, 
 86.22  any similar entity, or a combination of the foregoing. 
 86.23     Sec. 2.  [62U.02] [APPLICABILITY AND SCOPE.] 
 86.24     (a) This chapter applies to all health plan companies 
 86.25  offering, selling, issuing, or renewing a managed care plan in 
 86.26  this state or to cover a resident of this state, except that 
 86.27  this chapter does not apply to health plan companies whose 
 86.28  annual Minnesota private health premium revenues are less than 
 86.29  five percent of the total annual Minnesota private health 
 86.30  premium revenues, as measured by the assessment base of the 
 86.31  Minnesota comprehensive health association.  For purposes of 
 86.32  this percentage calculation, a health plan company's premiums 
 86.33  include the Minnesota private health premium revenues of its 
 86.34  affiliates. 
 86.35     (b) Notwithstanding paragraph (a), sections 62U.01 to 
 86.36  62U.16 apply to all health maintenance organizations. 
 87.1      (c) Notwithstanding paragraph (a), sections 62U.13, 62U.14, 
 87.2   and 62U.15 apply to managed care plans offered in connection 
 87.3   with medical assistance under chapter 256B, general assistance 
 87.4   medical care under chapter 256D, or the MinnesotaCare program 
 87.5   under chapter 256L. 
 87.6      (d) When this chapter states that a health plan company or 
 87.7   a managed care plan must comply with a referenced statute or 
 87.8   rule that by its terms applies only to a specific type of health 
 87.9   plan company or health plan, the requirement of this chapter is 
 87.10  that all health plan companies or managed care plans referenced 
 87.11  in the requirement of this chapter must comply with the 
 87.12  referenced statute or rule. 
 87.13     (e) This chapter applies to health plan companies only with 
 87.14  respect to their managed care plans, except as otherwise 
 87.15  expressly provided. 
 87.16     (f) This chapter does not apply to providers, or to a 
 87.17  health plan company's relationship with providers, not located 
 87.18  within this state or within a county adjacent to this state. 
 87.19     Sec. 3.  [62U.03] [APPROVAL OF MANAGED CARE PLANS.] 
 87.20     (a) No person shall offer, issue, sell, or renew a managed 
 87.21  care plan in this state or to cover a resident of this state, 
 87.22  without first obtaining approval to do so from the commissioner 
 87.23  under this section.  Existing managed care plans are deemed 
 87.24  approved if the health plan company has previously demonstrated 
 87.25  to either the commissioner of health or the commissioner of 
 87.26  commerce that the managed care plan complies with this chapter. 
 87.27     (b) A health plan company may apply to the commissioner 
 87.28  under this section for approval of a managed care plan. 
 87.29     (c) The commissioner shall approve an application from a 
 87.30  health plan company made under this section if the commissioner 
 87.31  determines, based upon the application and any other information 
 87.32  available to the commissioner, that the applicant intends to and 
 87.33  has the capacity to fully comply with this chapter and with all 
 87.34  other laws of this state that apply to the health plan company 
 87.35  in connection with the managed care plan. 
 87.36     (d) The commissioner shall approve, disapprove, or approve 
 88.1   conditional upon proposed modification, an application no later 
 88.2   than 60 days after receipt by the commissioner of a completed 
 88.3   application, including all supporting materials required by law 
 88.4   or requested by the commissioner. 
 88.5      Sec. 4.  [62U.04] [APPLICATION FORM AND REQUIREMENTS; OTHER 
 88.6   LAW.] 
 88.7      (a) The commissioner may prescribe an application form for 
 88.8   approval of a managed care plan and may specify the items 
 88.9   required to be submitted in connection with the application 
 88.10  consistent with the provisions of this chapter. 
 88.11     (b) The required submissions must include materials 
 88.12  sufficient to permit the commissioner to determine that the 
 88.13  proposed managed care plan fully complies with this chapter. 
 88.14     (c) This section does not limit requirements provided 
 88.15  elsewhere in law that apply in connection with approval of a 
 88.16  managed care plan. 
 88.17     Sec. 5.  [62U.05] [COVERED HEALTH CARE SERVICES.] 
 88.18     Subdivision 1.  [REQUIRED COVERAGE.] (a) A group managed 
 88.19  care plan must cover at least the health care services included 
 88.20  in the definition of comprehensive health maintenance services 
 88.21  under section 62D.02, subdivision 7, and Minnesota Rules, part 
 88.22  4685.0700, subparts 1 and 2.  
 88.23     (b) An individual managed care plan must comply with the 
 88.24  benefit requirements that apply to an insurance company licensed 
 88.25  under chapter 60A and need not comply with additional or 
 88.26  different benefit requirements that apply to companies licensed 
 88.27  under chapter 62C, 62D, or 62N. 
 88.28     (c) A managed care plan must not use a definition of 
 88.29  "medically necessary," "medical necessity," or similar term that 
 88.30  is more restrictive than the definition of "medically necessary 
 88.31  care" provided in Minnesota Rules, part 4685.0100, subpart 9b. 
 88.32     Subd. 2.  [EXCEPTIONS.] (a) Exclusions of and limitations 
 88.33  on the services required under subdivision 1 are permitted 
 88.34  subject to prior written approval by the commissioner based on 
 88.35  the standards in paragraphs (b) to (d). 
 88.36     (b) Exclusions and limitations based on services being 
 89.1   experimental, investigative, or unproven must not be more 
 89.2   restrictive than provided in Minnesota Rules, part 4685.0700, 
 89.3   subpart 4, item F. 
 89.4      (c) Exclusions and limitations based on use of a drug 
 89.5   formulary must not be more restrictive than provided in 
 89.6   Minnesota Rules, part 4685.0700, subpart 3, item A. 
 89.7      (d) Exclusions and limitations must not be unjust, unfair, 
 89.8   or inequitable, as provided in section 62A.02, subdivision 3, or 
 89.9   have the effect of substantially eliminating or restricting 
 89.10  services otherwise covered in the plan. 
 89.11     (e) Exclusions of and limitations on the services required 
 89.12  under subdivision 1 are permitted at least to the extent 
 89.13  described in Minnesota Rules, part 4685.0700, subparts 3 and 4.  
 89.14  Variations on those exclusions and limitations may be requested 
 89.15  under paragraph (a). 
 89.16     Subd. 3.  [OTHER STATE LAW.] (a) A managed care plan must 
 89.17  cover all health care services, in addition to those required 
 89.18  under subdivision 1, that are required under other state law. 
 89.19     (b) A managed care plan must comply with sections 62D.102 
 89.20  and 62D.103. 
 89.21     (c) A managed care plan need not comply with this section 
 89.22  to the extent permitted under chapter 62L with respect to 
 89.23  managed care plans offered to small employers in compliance with 
 89.24  section 62L.05 or 62L.055. 
 89.25     Sec. 6.  [62U.06] [DISPUTE RESOLUTION AND UTILIZATION 
 89.26  REVIEW.] 
 89.27     (a) A health plan company must, with respect to its managed 
 89.28  care plans, comply with chapter 62M, sections 62Q.68 to 62Q.73, 
 89.29  and all other related applicable state laws. 
 89.30     (b) A health plan company must not deny or limit coverage 
 89.31  of a service that an enrollee has already received solely on the 
 89.32  basis of the lack of prior authorization or second opinion, to 
 89.33  the extent that the service would otherwise have been covered 
 89.34  under the enrollee's health plan by the health plan company had 
 89.35  prior authorization or a second opinion been obtained. 
 89.36     Sec. 7.  [62U.07] [EVIDENCE OF COVERAGE.] 
 90.1      A health plan company shall, in connection with a managed 
 90.2   care plan, comply with section 62D.07. 
 90.3      Sec. 8.  [62U.08] [INFORMATION TO ENROLLEES.] 
 90.4      A health plan company shall, in connection with a managed 
 90.5   care plan, comply with section 62D.09, subdivisions 1, 2, and 4 
 90.6   to 8. 
 90.7      Sec. 9.  [62U.09] [ENROLLEES HELD HARMLESS.] 
 90.8      A health plan company shall, in connection with a managed 
 90.9   care plan, comply with section 62D.12, subdivision 5. 
 90.10     Sec. 10.  [62U.10] [ENFORCEMENT.] 
 90.11     The commissioner shall enforce this chapter under sections 
 90.12  60A.031; 60A.052; 62D.14, subdivisions 3, 4a, and 5; and 62D.15 
 90.13  to 62D.17.  Administrative penalties for violations of this 
 90.14  chapter are as provided in section 62D.17. 
 90.15     Sec. 11.  [62U.11] [DELEGATION OF RESPONSIBILITY AND 
 90.16  SHARING OF RISKS.] 
 90.17     Subdivision 1.  [APPROVAL OF DELEGATION AGREEMENT.] (a) 
 90.18  Before delegating any of its obligations or responsibilities 
 90.19  under a managed care plan or under this chapter to another 
 90.20  entity, a health plan company shall file with the commissioner a 
 90.21  copy of the form of the delegation agreement for written 
 90.22  approval.  
 90.23     (b) The delegation agreement must: 
 90.24     (1) provide for regular monitoring of the delegatee's 
 90.25  performance by the health plan company; 
 90.26     (2) permit periodic and other audits of the delegatee by 
 90.27  the commissioner with respect to this chapter; and 
 90.28     (3) provide that the delegated functions must be carried 
 90.29  out in a manner consistent with state law. 
 90.30     (c) The health plan company retains ultimate responsibility 
 90.31  for performance of the delegated functions, and the delegatee is 
 90.32  not subject to the enforcement authority of the commissioner.  
 90.33     Subd. 2.  [PROVIDER AGREEMENTS.] (a) An agreement between a 
 90.34  health plan company and a provider in which the provider agrees 
 90.35  to undertake specified responsibilities under this chapter, in 
 90.36  connection with a managed care plan, is subject to subdivision 1.
 91.1      (b) A health plan company, in connection with a managed 
 91.2   care plan, may enter into an agreement under subdivision 1 with 
 91.3   a provider, which agreement structures payments to the provider 
 91.4   based on the efficient provision of services or as incentives to 
 91.5   provide quality care.  
 91.6      (c) Assumption of risk by a provider under this section is 
 91.7   not insurance for purposes of section 60A.02, subdivision 3. 
 91.8      Sec. 12.  [62U.12] [SUBROGATION AND COORDINATION OF 
 91.9   BENEFITS.] 
 91.10     (a) A managed care plan may contain subrogation provisions 
 91.11  as permitted and limited under sections 62A.095 and 62A.096 and 
 91.12  Minnesota Rules, part 4685.0900. 
 91.13     (b) A health plan company, in connection with a group 
 91.14  managed care plan, must comply with Minnesota Rules, chapter 
 91.15  2742, relating to coordination of benefits.  The health plan 
 91.16  company must not refuse to provide covered health services on 
 91.17  the basis that it has the right to coordinate benefits.  The 
 91.18  services must be provided prior to coordination. 
 91.19     Sec. 13.  [62U.13] [QUALITY ASSESSMENT AND PERFORMANCE 
 91.20  IMPROVEMENT.] 
 91.21     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 91.22  section, the terms defined in this subdivision have the meanings 
 91.23  given. 
 91.24     (b) "Outcome or outcome of care" means the end result of 
 91.25  health care or a change in patient health status.  Examples of 
 91.26  outcomes of care include a hospital admission or readmission, an 
 91.27  advanced stage of a disease, recovery, alleviation of symptoms, 
 91.28  or death. 
 91.29     (c) "Performance improvement" means the effort to improve 
 91.30  the timeliness, processes, and outcomes related to the provision 
 91.31  of care within the health plan company.  
 91.32     (d) "Quality assessment" means the measurement and 
 91.33  evaluation of the quality and outcomes of care provided to 
 91.34  individuals, groups, or populations. 
 91.35     Subd. 2.  [HEALTH PLAN COMPANY REQUIREMENTS.] A health plan 
 91.36  company that provides managed care plans shall develop and 
 92.1   maintain a quality assessment and performance improvement 
 92.2   program, which includes the infrastructure and disclosure 
 92.3   systems and activities necessary to measure and improve the 
 92.4   quality of health care services provided to covered persons 
 92.5   under the managed care plan.  A health plan company shall, in 
 92.6   connection with its managed care plans: 
 92.7      (1) establish a program designed to assess the quality of 
 92.8   health care provided to covered persons and capable of 
 92.9   identifying opportunities to improve care.  The program must 
 92.10  include systematic collection, analysis, and reporting of 
 92.11  relevant data.  The program may use appropriate sampling 
 92.12  techniques.  The program must be structured to identify 
 92.13  practices that result in improved outcomes, identify problematic 
 92.14  utilization patterns, identify those providers that may be 
 92.15  responsible for either exemplary or problematic patterns, and 
 92.16  foster an environment of continuous quality improvement; 
 92.17     (2) file a written description of the quality assessment 
 92.18  and performance improvement program with the commissioner, which 
 92.19  must include a signed certification by a corporate officer of 
 92.20  the health plan company that the filing meets the requirements 
 92.21  of this section; 
 92.22     (3) communicate findings from its quality assessment and 
 92.23  performance improvement program activities at least annually to 
 92.24  applicable regulatory agencies, providers, purchasers, and 
 92.25  consumers, as provided in subdivision 5; 
 92.26     (4) on a continuing basis, use findings from its quality 
 92.27  assessment and performance improvement program activities to 
 92.28  work with participating providers and other staff to improve the 
 92.29  health care delivered to covered persons; 
 92.30     (5) report to the appropriate licensing authority any 
 92.31  persistent pattern of problematic care provided by a provider 
 92.32  consistent with sections 147.111, 147.121, 148.263, 148.264, and 
 92.33  other similar laws applicable to credentialed providers; 
 92.34     (6) design, measure, assess, and improve the processes and 
 92.35  outcomes of care as identified in the health plan company's 
 92.36  quality assessment and performance improvement program that is 
 93.1   filed with the commissioner, meets all requirements of 
 93.2   subdivision 3, and is otherwise consistent with this section; 
 93.3      (7) ensure that participating providers have the 
 93.4   opportunity to participate in developing, implementing, and 
 93.5   evaluating the quality assessment and performance improvement 
 93.6   program; and 
 93.7      (8) include information from covered persons in the 
 93.8   development of the quality assessment and performance 
 93.9   improvement program, which may include, at the option of the 
 93.10  health plan company, any available satisfaction survey results 
 93.11  and other general comments. 
 93.12     Subd. 3.  [QUALITY ASSESSMENT AND PERFORMANCE IMPROVEMENT 
 93.13  PROGRAM REQUIREMENTS.] (a) A quality assessment and performance 
 93.14  improvement program required under subdivision 2 must include a 
 93.15  written statement, including a description of data collection 
 93.16  activities, information systems, and performance improvement 
 93.17  activities, and an annual effectiveness review of the quality 
 93.18  assessment and performance improvement program. 
 93.19     (b) A quality assessment and performance improvement 
 93.20  program required under subdivision 2 must include a written plan 
 93.21  that describes how the health plan company intends to: 
 93.22     (1) analyze both processes and outcomes of care, to discern 
 93.23  the causes of variation; 
 93.24     (2) identify topics to be reviewed by the quality 
 93.25  assessment and performance improvement program each year.  In 
 93.26  determining topics for review, the health plan company shall 
 93.27  consider problems; potential problems; areas with potential for 
 93.28  improvements in care; practices and diagnoses that affect a 
 93.29  substantial number of the plan's covered persons or that could 
 93.30  place covered persons at serious risk; and illnesses associated 
 93.31  with increased mortality and morbidity.  This clause must not be 
 93.32  construed to require a health carrier to review every disease, 
 93.33  illness, and condition that may affect an enrollee of a managed 
 93.34  care plan offered by the health plan company; 
 93.35     (3) use a range of appropriate methods to analyze quality, 
 93.36  including: 
 94.1      (i) collection and analysis of information on 
 94.2   overutilization and underutilization of services; 
 94.3      (ii) evaluation of courses of treatment and outcomes of 
 94.4   health care, using nationally recognized measures of 
 94.5   effectiveness of care, use of services, and access to care; 
 94.6      (iii) collection and analysis of information specific to a 
 94.7   covered person or provider, gathered from multiple sources 
 94.8   including but not limited to utilization management, claims 
 94.9   processing, and documentation of satisfaction surveys; and 
 94.10     (iv) ongoing evaluation of enrollee complaints received by 
 94.11  a health plan company that are related to quality of and access 
 94.12  to care.  The data on complaints related to quality of and 
 94.13  access to care must be evaluated by the health plan company at 
 94.14  least quarterly; 
 94.15     (4) compare program findings with past performance, as 
 94.16  appropriate, and with internal goals and external standards, 
 94.17  when available, such as those standards developed by recognized 
 94.18  state and national accreditation organizations; 
 94.19     (5) establish and implement policies and procedures for 
 94.20  provider selection, credentialing, and recredentialing that, at 
 94.21  a minimum, are consistent with accepted community standards; 
 94.22     (6) in response to complaints or sentinel events, evaluate 
 94.23  the performance of participating providers and conduct peer 
 94.24  review activities, such as: 
 94.25     (i) identifying practices that do not, at a minimum, meet 
 94.26  accepted community standards; and 
 94.27     (ii) taking action, if appropriate, to ensure that 
 94.28  participating providers meet accepted community standards; 
 94.29     (7) distribute information and educate providers regarding 
 94.30  accepted standards, treatment protocols, and practice 
 94.31  guidelines; 
 94.32     (8) support and promote population-based health quality 
 94.33  assessment and improvement through communication with public 
 94.34  health agencies and participation in regional or statewide 
 94.35  health quality assessment and improvement activities, including 
 94.36  the communication and participation required under section 
 95.1   62Q.075; and 
 95.2      (9) identify, document, and implement performance 
 95.3   improvement strategies related to program findings, including: 
 95.4      (i) measurable objectives for each action, including the 
 95.5   degree of expected change in persons or situations; 
 95.6      (ii) time frames for performance improvement activities; 
 95.7      (iii) persons responsible for implementation of performance 
 95.8   improvement strategies; and 
 95.9      (iv) a schedule to monitor the effectiveness of the 
 95.10  performance improvement strategies. 
 95.11     Subd. 4.  [AUDITS.] The commissioner shall conduct routine 
 95.12  audits of quality assessment and performance improvement 
 95.13  programs to ensure compliance with this section.  If an 
 95.14  independent organization has conducted an audit of the quality 
 95.15  assessment and performance improvement program of the health 
 95.16  plan company: 
 95.17     (1) the commissioner may accept the independent audit and 
 95.18  require no further audit if the results of the independent audit 
 95.19  show that the quality assessment and performance improvement 
 95.20  program of the health plan company meets the requirements of 
 95.21  this section; 
 95.22     (2) the commissioner may accept the independent audit and 
 95.23  limit further auditing if the results of the independent audit 
 95.24  show that the quality assessment and performance improvement 
 95.25  program of the health plan company partially meets the 
 95.26  requirements of this section.  Auditing by the commissioner must 
 95.27  be limited to program areas where fulfillment of the 
 95.28  requirements of this section has not been demonstrated; 
 95.29     (3) the health plan company must demonstrate to the 
 95.30  commissioner that the independent organization that conducted 
 95.31  the audit is qualified and that the results of the audit 
 95.32  demonstrate that the quality assessment and performance 
 95.33  improvement program of the health plan company partially or 
 95.34  fully meets the requirements of this section; and 
 95.35     (4) if the commissioner has partially or fully accepted an 
 95.36  independent audit of the quality assessment and performance 
 96.1   improvement program of the health plan company, the commissioner 
 96.2   may use the finding of a deficiency with regard to statutes or 
 96.3   rules by an independent audit as the basis for a targeted audit 
 96.4   or enforcement action. 
 96.5      Subd. 5.  [REPORTING AND DISCLOSURE.] (a) A health plan 
 96.6   company shall document and communicate information about its 
 96.7   quality assessment and performance improvement program according 
 96.8   to this subdivision.  The health plan company shall: 
 96.9      (1) include a summary of its quality assessment and 
 96.10  performance improvement program in marketing materials; 
 96.11     (2) include a description of its quality assessment and 
 96.12  performance improvement program and a statement of patient 
 96.13  rights and responsibilities with respect to the program in the 
 96.14  certificate of coverage or handbook provided to newly enrolled 
 96.15  enrollees; 
 96.16     (3) make available annually to providers and enrollees 
 96.17  findings from its quality assessment and performance improvement 
 96.18  program and information about its progress in meeting internal 
 96.19  goals and external standards, when available.  The reports shall 
 96.20  include a description of the methods used to assess each 
 96.21  specific area and an explanation of how any assumptions affect 
 96.22  the findings; and 
 96.23     (4) submit annually to the commissioner a comprehensive 
 96.24  summary of the activities required by subdivision 3 and the 
 96.25  findings described in clause (3). 
 96.26     (b) By July 1 of each year, a health plan company shall 
 96.27  file a report with the commissioner of health, without a filing 
 96.28  fee.  The commissioner of health may specify the audit 
 96.29  procedures, format, and content of the report including 
 96.30  identification of the specific measures related to the outcomes 
 96.31  of care, effectiveness of care, use of services, access to care, 
 96.32  and patient satisfaction to be included.  To determine the 
 96.33  specific measures to be reported, the commissioner of health 
 96.34  shall consider: 
 96.35     (1) current public health goals established under section 
 96.36  62J.212; and 
 97.1      (2) measures established by recognized state or national 
 97.2   health data reporting organizations and accreditation 
 97.3   organizations. 
 97.4      Sec. 14.  [62U.14] [NETWORK ADEQUACY.] 
 97.5      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 97.6   section, the terms defined in this subdivision have the meanings 
 97.7   given. 
 97.8      (b) "General hospital" has the meaning given in Minnesota 
 97.9   Rules, part 4640.0100, subpart 4. 
 97.10     (c) "Service area" means the geographic locations, 
 97.11  identified according to recognized political subdivisions such 
 97.12  as cities, counties, and townships, in which the health plan 
 97.13  company is approved by the commissioner to market its managed 
 97.14  care product. 
 97.15     (d) "Specialized hospital" has the meaning given in 
 97.16  Minnesota Rules, part 4640.0100, subpart 10. 
 97.17     Subd. 2.  [NETWORK ADEQUACY STANDARDS.] (a) A health plan 
 97.18  company providing a managed care plan shall maintain a network 
 97.19  that is sufficient in numbers and types of providers to ensure 
 97.20  that all services to enrollees in the managed care plan's 
 97.21  service area will be accessible without unreasonable delay.  At 
 97.22  a minimum, the health plan company must meet the network 
 97.23  adequacy standards in paragraphs (b) to (v). 
 97.24     (b) The health plan company must have available, either 
 97.25  directly or through arrangements, appropriate and sufficient 
 97.26  personnel, physical resources, and equipment to meet the 
 97.27  projected needs of its enrollees for covered health care 
 97.28  services.  The health plan company, in coordination with 
 97.29  participating providers, shall develop and implement written 
 97.30  standards or guidelines that assess the capacity of each 
 97.31  provider network to provide timely access to health care 
 97.32  services according to the following:  the health plan company, 
 97.33  either directly or through its provider contracts, shall arrange 
 97.34  for covered health care services, including referrals to 
 97.35  participating and nonparticipating providers, to be accessible 
 97.36  to enrollees on a timely basis in accordance with medically 
 98.1   appropriate guidelines consistent with accepted standards of 
 98.2   practice.  
 98.3      (c) Covered persons must have access to emergency services 
 98.4   24 hours per day, seven days per week. 
 98.5      (d) Primary care and specialty physician services must be 
 98.6   available and accessible within the managed care plan's service 
 98.7   area.  The health plan company shall fulfill this requirement 
 98.8   through written standards for: 
 98.9      (1) regularly scheduled appointments during normal business 
 98.10  hours; 
 98.11     (2) after hours clinics; 
 98.12     (3) use of a 24-hour answering service with standards for 
 98.13  maximum allowable call-back times based upon what is medically 
 98.14  appropriate to each situation; and 
 98.15     (4) referrals to urgent care centers, where available, and 
 98.16  to hospital emergency care. 
 98.17     (e) The health plan company shall provide or contract with 
 98.18  a sufficient number of primary care physicians to meet the 
 98.19  projected needs of its enrollees for primary care physician 
 98.20  services. 
 98.21     (f) The health plan company shall ensure that there are a 
 98.22  sufficient number of primary care physicians with hospital 
 98.23  admitting privileges at one or more participating general 
 98.24  hospitals within the managed care plan's service area to ensure 
 98.25  that necessary hospital admissions are made on a timely basis 
 98.26  consistent with accepted standards of practice. 
 98.27     (g) The health plan company shall provide directly, 
 98.28  contract for, or otherwise arrange for, specialty physician 
 98.29  services that are covered benefits and to which enrollees have 
 98.30  access in the managed care plan's service area. 
 98.31     (h) Specialty physician services to which enrollees do not 
 98.32  have continued access, for example, referrals for consultation 
 98.33  or second opinions, shall be provided by the health plan company 
 98.34  through contracts or other arrangements with specialty 
 98.35  physicians. 
 98.36     (i) The health plan company shall ensure that there are a 
 99.1   sufficient number of specialty physicians with hospital 
 99.2   admitting privileges to ensure that necessary hospital 
 99.3   admissions are made on a timely basis consistent with accepted 
 99.4   standards of practice. 
 99.5      (j) Services of one or more general hospitals licensed 
 99.6   under sections 144.50 to 144.58 must be provided through 
 99.7   contracts between the health plan company and hospitals.  The 
 99.8   services must be available and accessible, on a timely basis 
 99.9   consistent with accepted standards of practice, 24 hours per 
 99.10  day, seven days per week, within the managed care plan's service 
 99.11  area.  Services of specialized hospitals licensed under sections 
 99.12  144.50 to 144.58, including chemical dependency and mental 
 99.13  health services, must be provided through contracts between the 
 99.14  health plan company or its contracted providers and hospitals, 
 99.15  either within or outside the managed care plan's service area.  
 99.16  The services must be available during normal business hours 
 99.17  consistent with accepted standards of practice. 
 99.18     (k) The health plan company shall contract with or employ 
 99.19  sufficient numbers of providers of ancillary services to meet 
 99.20  the projected needs of its enrollees.  The services must be 
 99.21  available during normal daytime business hours consistent with 
 99.22  accepted standards of practice. 
 99.23     (l) The health plan company shall contract with or employ 
 99.24  sufficient numbers of qualified providers of outpatient mental 
 99.25  health and chemical dependency services to meet the projected 
 99.26  needs of its enrollees consistent with accepted standards of 
 99.27  practice and meeting the following requirements: 
 99.28     (1) services for enrollees with alcohol and other chemical 
 99.29  dependency problems must be provided by outpatient treatment 
 99.30  programs licensed by the commissioner of human services under 
 99.31  Minnesota Rules, parts 9530.5000 to 9530.6400, or by hospitals 
 99.32  licensed under Minnesota Rules, chapter 4640; 
 99.33     (2) outpatient chemical dependency treatment programs 
 99.34  serving adolescents must meet all of the requirements of the 
 99.35  commissioner of human services contained in Minnesota Rules, 
 99.36  part 9530.6400; 
100.1      (3) outpatient mental health services must be provided by 
100.2   licensed psychiatrists, psychologists, social workers, marriage 
100.3   and family therapists, or psychiatric nurses, as appropriate in 
100.4   each case, and by mental health centers or mental health clinics 
100.5   licensed by the commissioner of human services under Minnesota 
100.6   Rules, chapter 9520; and 
100.7      (4) the health plan company, either directly or through its 
100.8   contracted mental health or chemical dependency provider, shall 
100.9   have services available that are culturally specific or 
100.10  appropriate to a specific age, gender, or sexual preference. 
100.11     If any of the services in items (1) to (4) cannot be 
100.12  provided by licensed providers and programs, the health plan 
100.13  company shall file a request for an exception to the 
100.14  requirements of items (1) to (4).  A request for an exception is 
100.15  considered a filing under Minnesota Rules, part 4685.3300.  The 
100.16  health plan company shall submit specific data in support of its 
100.17  request. 
100.18     (m) The health plan company shall provide directly, 
100.19  contract for, or otherwise arrange for residential treatment 
100.20  programs licensed by the commissioner of human services under 
100.21  Minnesota Rules, parts 9530.4100 to 9530.4450, to provide 
100.22  services to enrollees with alcohol and other chemical dependency 
100.23  problems. 
100.24     (n) In any case where the health plan company has an 
100.25  insufficient number or type of participating providers to 
100.26  provide a covered benefit, the health plan company shall ensure 
100.27  that the enrollee obtains the covered benefit at no greater cost 
100.28  to the enrollee than if the benefit were obtained from a 
100.29  participating provider or shall make other arrangements 
100.30  acceptable to the commissioner. 
100.31     (o) If a specific managed care plan provider refuses to 
100.32  continue to provide care to a specific managed care plan 
100.33  enrollee, the health plan company shall furnish the enrollee 
100.34  with the name, address, and telephone number of other 
100.35  participating providers in the same area of medical specialty. 
100.36  Examples of reasons for refusal to continue to provide care to 
101.1   an enrollee are:  unpaid bills incurred by that individual 
101.2   before enrollment in the managed care plan; unpaid copayments or 
101.3   coinsurance incurred by the enrollee after enrollment in the 
101.4   managed care plan; an enrollee who is uncooperative or abusive 
101.5   toward the provider; and the inability of the enrollee and the 
101.6   provider to agree on a course of treatment. 
101.7      (p) The health plan company is responsible for implementing 
101.8   a system that, to the greatest possible extent, ensures that 
101.9   referrals, either by the health plan company or by a 
101.10  participating provider, are made to participating providers.  An 
101.11  enrollee cannot be held liable if the managed care plan 
101.12  provider, in error, gives a referral to a nonparticipating 
101.13  provider.  This issue may be addressed in contracts between the 
101.14  health plan company and its providers. 
101.15     (q) Referral procedures must be described in an enrollee's 
101.16  evidence of coverage and must be available to an enrollee upon 
101.17  request for information regarding referral procedures. 
101.18  Information regarding referral procedures must clearly describe 
101.19  at least the following: 
101.20     (1) under what circumstances and for what services a 
101.21  referral is necessary; 
101.22     (2) how to request a referral; 
101.23     (3) how to request a standing referral; and 
101.24     (4) how to appeal a referral determination. 
101.25     (r) In plans in which referrals to specialty providers and 
101.26  ancillary services are required, the health plan company shall 
101.27  inform its primary care and other authorized providers of the 
101.28  providers' responsibility to provide written referrals and any 
101.29  specific procedures that must be followed in providing referrals.
101.30     (s) This paragraph applies to a health plan company that 
101.31  arranges for the services of assigned or selected primary care 
101.32  providers to provide initial and basic care to enrollees.  An 
101.33  enrollee who is dissatisfied with the assigned or selected 
101.34  primary care provider must be allowed to change primary care 
101.35  providers according to the health plan company's procedures and 
101.36  policies.  If requested by an enrollee or if determined to be 
102.1   necessary because of a pattern of inappropriate utilization of 
102.2   services, an enrollee's health care may be supervised and 
102.3   coordinated by the primary care provider. 
102.4      (t) Within the managed care plan's service area, the 
102.5   maximum travel distance or time must be the lesser of 30 miles 
102.6   or 30 minutes to the nearest provider of each of the following 
102.7   services:  primary care services, mental health services, and 
102.8   general hospital services.  The health plan company shall 
102.9   designate which method is used. 
102.10     (u) Within a managed care plan's service area, the maximum 
102.11  travel distance or time must be the lesser of 60 miles or 60 
102.12  minutes to the nearest provider of specialty physician services, 
102.13  ancillary services, specialized hospital services, and all other 
102.14  health services not listed in paragraph (t).  The health carrier 
102.15  shall designate which method is used. 
102.16     (v) The commissioner shall grant an exception to a 
102.17  requirement in paragraph (t) or (u) if the health plan company 
102.18  can demonstrate with specific data that the requirement of 
102.19  paragraph (t) or (u) is not feasible in a particular service 
102.20  area or part of a service area.  The health plan company shall 
102.21  submit specific data in support of its request.  Paragraphs (t) 
102.22  and (u) do not apply if an enrollee is referred to a referral 
102.23  center for health care services.  Paragraph (t) does not apply 
102.24  if an enrollee has chosen a managed care plan with full 
102.25  knowledge that the managed care plan has no participating 
102.26  providers within 30 miles or 30 minutes of the enrollee's place 
102.27  of residence. 
102.28     Subd. 3.  [ACCESS PLAN; PRIOR APPROVAL.] Beginning January 
102.29  1, 2002, a health plan company shall file for prior approval 
102.30  with the commissioner an access plan meeting the requirements of 
102.31  this section for each of the managed care plans that the health 
102.32  plan company offers in the state.  The health plan company shall 
102.33  make the access plans available on its business premises and 
102.34  shall provide them to any interested party upon request.  The 
102.35  health plan company shall prepare and file an access plan prior 
102.36  to offering a new managed care plan and shall update and file 
103.1   changes for an existing access plan whenever it makes any 
103.2   material change to an existing managed care plan.  The access 
103.3   plan must describe or contain at least the following: 
103.4      (1) the health plan company's network that is available to 
103.5   enrollees under the managed care plan, including a description 
103.6   of the available care systems, if applicable; 
103.7      (2) the health plan company's procedures for making 
103.8   referrals, including standing referrals under section 62Q.58 
103.9   within and outside its network; 
103.10     (3) the health plan company's process for monitoring and 
103.11  ensuring on an ongoing basis the sufficiency of the network to 
103.12  meet the health care needs of populations that enroll in the 
103.13  managed care plan; 
103.14     (4) the health plan company's system for ensuring file 
103.15  coordination and continuity of care for enrollees referred to 
103.16  specialty physicians; 
103.17     (5) the health plan company's process for enabling 
103.18  enrollees to change primary care professionals; and 
103.19     (6) the health plan company's proposed plan for providing 
103.20  continuity of care in the event of contract termination as 
103.21  required under section 62Q.56. 
103.22     Subd. 4.  [ENROLLEES NOT IN SERVICE AREAS.] (a) An eligible 
103.23  person must not be denied continued enrollment in a managed care 
103.24  plan solely on the basis that the eligible person lives or works 
103.25  outside of the designated service area.  For purposes of this 
103.26  section, "continued enrollment" includes, but is not limited to, 
103.27  enrollment in continuation or conversion coverage.  
103.28     (b) A health plan company may decline to enroll an eligible 
103.29  person in a managed care plan solely on the basis that the 
103.30  eligible person lives outside of the designated service area.  
103.31  If a health plan company chooses to permit enrollment of such a 
103.32  person, the health plan company shall first provide the 
103.33  prospective enrollee with a written notice of the consequences 
103.34  of this special enrollment. 
103.35     (c) To the extent that this subdivision conflicts with 
103.36  section 62D.12, subdivision 2, this subdivision governs.  
104.1      Sec. 15.  [62U.15] [PROVIDER CONTRACTS.] 
104.2      (a) A health plan company shall, in connection with a 
104.3   managed care plan, comply with section 62D.123. 
104.4      (b) An agreement to provide health care services between a 
104.5   provider and a health plan company must require the provider to 
104.6   cooperate with and participate in the health plan company's 
104.7   quality assessment and performance improvement program, dispute 
104.8   resolution procedure, and utilization review program. 
104.9      (c) An agreement to provide health care services between a 
104.10  provider and a health plan company must require that if the 
104.11  provider terminates the agreement, without cause, the provider 
104.12  shall give the health plan company 120 days' advance notice of 
104.13  termination. 
104.14     (d) The rights and responsibilities under a contract 
104.15  between a health plan company and a participating provider must 
104.16  not be assigned or delegated by the provider without the prior 
104.17  written consent of the health plan company and the contract must 
104.18  so provide. 
104.19     (e) A health plan company is responsible for ensuring that 
104.20  a participating provider furnishes covered benefits to all 
104.21  enrollees without regard to the enrollee's enrollment in the 
104.22  plan as a private purchaser of the plan or as a participant in 
104.23  publicly financed programs of health care services.  This 
104.24  paragraph does not apply to circumstances when the provider 
104.25  should not render services due to limitations arising from lack 
104.26  of training, experience, or skill or from licensing restrictions.
104.27     (f) A health plan company shall not penalize a provider 
104.28  because the provider, in good faith, reports to state or federal 
104.29  authorities any act or practice by the health plan company that 
104.30  jeopardizes patient health or welfare. 
104.31     (g) A health plan company shall establish a mechanism by 
104.32  which the participating providers may determine in a timely 
104.33  manner whether or not a person is covered by the health plan 
104.34  company. 
104.35     (h) A health plan company shall establish procedures for 
104.36  resolution of administrative, payment, or other disputes between 
105.1   providers and the health plan company. 
105.2      (i) A contract between a health plan company and a provider 
105.3   must not contain definitions or other provisions that conflict 
105.4   with the definitions or provisions contained in the managed care 
105.5   plan or this section. 
105.6      Sec. 16.  [62U.16] [UNIFORM ENROLLEE COST-SHARING.] 
105.7      Subdivision 1.  [COPAYMENTS.] Copayments in managed care 
105.8   plans must not be unfair, unjust, or inequitable, as provided in 
105.9   section 62A.02.  No managed care plan may provide for copayments 
105.10  in excess of 50 percent, except for noncovered benefits.  
105.11  Noncovered benefits include covered services that the enrollee 
105.12  elects without prior approval to receive out-of-network or from 
105.13  a broader network and nonformulary prescription drugs.  
105.14  Copayments may be expressed as percentages or flat fees as 
105.15  provided in Minnesota Rules, part 4685.0801.  The 25 percent 
105.16  copayment limitation of Minnesota Rules, part 4685.0700, subpart 
105.17  3, item A, subitem (3), unit (b); and part 4685.0801, subparts 1 
105.18  and 2, do not apply to a managed care plan that complies with 
105.19  this subdivision.  
105.20     Subd. 2.  [DEDUCTIBLES.] (a) Deductibles included in 
105.21  managed care plans must not exceed: 
105.22     (1) for group health plans, $5,000 per individual per year 
105.23  and $10,000 per family per year; or 
105.24     (2) for individual health plans, $10,000 per person per 
105.25  year and $20,000 per family per year.  
105.26     (b) Covered charges must count toward the deductible for 
105.27  individual health plans whether incurred from participating or 
105.28  nonparticipating providers. 
105.29     Subd. 3.  [ANNUAL OUT-OF-POCKET MAXIMUMS.] A managed care 
105.30  plan must provide for an out-of-pocket maximum on enrollee 
105.31  cost-sharing not to exceed $8,000 per person per year on group 
105.32  health plans and $15,000 per person per year on individual 
105.33  health plans.  Covered charges must count toward the 
105.34  out-of-pocket maximum whether incurred from participating or 
105.35  nonparticipating providers. 
105.36     Subd. 4.  [LIFETIME MAXIMUM BENEFITS.] A managed care plan 
106.1   must not provide for a lifetime maximum benefit limit less than 
106.2   the amount required under section 62E.12 for coverage issued by 
106.3   the Minnesota comprehensive health association.  If a managed 
106.4   care plan includes a lifetime maximum benefit limit, the 
106.5   benefits that were provided to the enrollee when the managed 
106.6   care plan did not have a lifetime maximum benefit limit may not 
106.7   be counted toward that limit. 
106.8      Subd. 5.  [EXCEPTIONS.] (a) Subdivisions 1 and 2 do not 
106.9   apply to the extent that another law requires lower enrollee 
106.10  cost-sharing for specific services than that specified in 
106.11  subdivisions 1 and 2 or to preventive services as defined in 
106.12  Minnesota Rules, part 4685.0801, subpart 8. 
106.13     (b) This section does not apply to the two small employer 
106.14  plans described in section 62L.05 or to plans described in 
106.15  section 62L.055. 
106.16     Sec. 17.  [REPEALER.] 
106.17     (a) Minnesota Statutes 2000, sections 62D.09, subdivision 
106.18  3; and 62D.12, subdivision 19, are repealed. 
106.19     (b) Minnesota Rules, parts 4685.0801, subpart 7; 4685.1010; 
106.20  4685.1300; 4685.1900; 4685.2000; and 4685.2200, subpart 3, are 
106.21  repealed. 
106.22     (c) Minnesota Statutes, sections 62D.123, subdivisions 2, 
106.23  3, and 4; and 62D.124, are repealed effective January 1, 2004. 
106.24     (d) Minnesota Rules, parts 4685.1105; 4685.1110; 4685.1115; 
106.25  4685.1120; 4685.1125; and 4685.1130, are repealed effective 
106.26  January 1, 2004. 
106.27     Sec. 18.  [EFFECTIVE DATE.] 
106.28     Sections 1 to 12, 16, and 17 are effective January 1, 2003, 
106.29  and apply to managed care plans issued or renewed on or after 
106.30  that date.  Sections 13 to 15 are effective January 1, 2004, and 
106.31  apply to managed care plans issued or renewed on or after that 
106.32  date. 
106.33                             ARTICLE 6 
106.34     RELATED AND CONFORMING CHANGES IN MANAGED CARE REGULATION
106.35     Section 1.  Minnesota Statutes 2000, section 62A.021, 
106.36  subdivision 1, is amended to read: 
107.1      Subdivision 1.  [LOSS RATIO STANDARDS.] (a) Notwithstanding 
107.2   section 62A.02, subdivision 3, relating to loss ratios, health 
107.3   care policies or certificates shall not be delivered or issued 
107.4   for delivery to an individual or to a small employer as defined 
107.5   in section 62L.02, unless the policies or certificates can be 
107.6   expected, as estimated for the entire period for which rates are 
107.7   computed to provide coverage, to return to Minnesota 
107.8   policyholders and certificate holders in the form of aggregate 
107.9   benefits not including anticipated refunds or credits, provided 
107.10  under the policies or certificates, (1) at least 75 percent of 
107.11  the aggregate amount of premiums earned in the case of policies 
107.12  issued in the small employer market, as defined in section 
107.13  62L.02, subdivision 27, calculated on an aggregate basis; and 
107.14  (2) at least 65 percent of the aggregate amount of premiums 
107.15  earned in the case of each policy form or certificate form 
107.16  issued in the individual market; calculated on the basis of 
107.17  incurred claims experience or incurred health care expenses 
107.18  where coverage is provided by a health maintenance organization 
107.19  on a service rather than reimbursement basis and earned premiums 
107.20  for the period and according to accepted actuarial principles 
107.21  and practices.  Assessments by the reinsurance association 
107.22  created in chapter 62L and all types of taxes, surcharges, or 
107.23  assessments created by Laws 1992, chapter 549, or created on or 
107.24  after April 23, 1992, are included in the calculation of 
107.25  incurred claims experience or incurred health care expenses.  
107.26  The applicable percentage for policies and certificates issued 
107.27  in the small employer market, as defined in section 62L.02, 
107.28  increases by one percentage point on July 1 of each year, 
107.29  beginning on July 1, 1994, until an 82 percent loss ratio is 
107.30  reached on July 1, 2000.  The applicable percentage for policy 
107.31  forms and certificate forms issued in the individual market 
107.32  increases by one percentage point on July 1 of each year, 
107.33  beginning on July 1, 1994, until a 72 percent loss ratio is 
107.34  reached on July 1, 2000.  A health carrier that enters a market 
107.35  after July 1, 1993, does not start at the beginning of the 
107.36  phase-in schedule and must instead comply with the loss ratio 
108.1   requirements applicable to other health carriers in that market 
108.2   for each time period.  Premiums earned and claims incurred in 
108.3   markets other than the small employer and individual markets are 
108.4   not relevant for purposes of this section. 
108.5      (b) All filings of rates and rating schedules shall 
108.6   demonstrate that actual expected claims in relation to premiums 
108.7   comply with the requirements of this section when combined with 
108.8   actual experience to date.  Filings of rate revisions shall also 
108.9   demonstrate that the anticipated loss ratio over the entire 
108.10  future period for which the revised rates are computed to 
108.11  provide coverage can be expected to meet the appropriate loss 
108.12  ratio standards, and aggregate loss ratio from inception of the 
108.13  policy form or certificate form shall equal or exceed the 
108.14  appropriate loss ratio standards. 
108.15     (c) A health carrier that issues health care policies and 
108.16  certificates to individuals or to small employers, as defined in 
108.17  section 62L.02, in this state shall file annually its rates, 
108.18  rating schedule, and supporting documentation including ratios 
108.19  of incurred losses to earned premiums by policy form or 
108.20  certificate form duration for approval by the commissioner 
108.21  according to the filing requirements and procedures prescribed 
108.22  by the commissioner.  The supporting documentation shall also 
108.23  demonstrate in accordance with actuarial standards of practice 
108.24  using reasonable assumptions that the appropriate loss ratio 
108.25  standards can be expected to be met over the entire period for 
108.26  which rates are computed.  The demonstration shall exclude 
108.27  active life reserves.  If the data submitted does not confirm 
108.28  that the health carrier has satisfied the loss ratio 
108.29  requirements of this section, the commissioner shall notify the 
108.30  health carrier in writing of the deficiency.  The health carrier 
108.31  shall have 30 days from the date of the commissioner's notice to 
108.32  file amended rates that comply with this section.  If the health 
108.33  carrier fails to file amended rates within the prescribed time, 
108.34  the commissioner shall order that the health carrier's filed 
108.35  rates for the nonconforming policy form or certificate form be 
108.36  reduced to an amount that would have resulted in a loss ratio 
109.1   that complied with this section had it been in effect for the 
109.2   reporting period of the supplement.  The health carrier's 
109.3   failure to file amended rates within the specified time or the 
109.4   issuance of the commissioner's order amending the rates does not 
109.5   preclude the health carrier from filing an amendment of its 
109.6   rates at a later time.  The commissioner shall annually make the 
109.7   submitted data available to the public at a cost not to exceed 
109.8   the cost of copying.  The data must be compiled in a form useful 
109.9   for consumers who wish to compare premium charges and loss 
109.10  ratios. 
109.11     (d) Each sale of a policy or certificate that does not 
109.12  comply with the loss ratio requirements of this section is an 
109.13  unfair or deceptive act or practice in the business of insurance 
109.14  and is subject to the penalties in sections 72A.17 to 72A.32. 
109.15     (e)(1) For purposes of this section, health care policies 
109.16  issued as a result of solicitations of individuals through the 
109.17  mail or mass media advertising, including both print and 
109.18  broadcast advertising, shall be treated as individual policies. 
109.19     (2) For purposes of this section, (i) "health care policy" 
109.20  or "health care certificate" is a health plan as defined in 
109.21  section 62A.011; and (ii) "health carrier" has the meaning given 
109.22  in section 62A.011 and includes all health carriers delivering 
109.23  or issuing for delivery health care policies or certificates in 
109.24  this state or offering these policies or certificates to 
109.25  residents of this state.  
109.26     (f) The loss ratio phase-in as described in paragraph (a) 
109.27  does not apply to individual policies and small employer 
109.28  policies issued by a health plan company that is assessed less 
109.29  than three percent of the total annual amount assessed by the 
109.30  Minnesota comprehensive health association.  These policies must 
109.31  meet a 68 percent loss ratio for individual policies, a 71 
109.32  percent loss ratio for small employer policies with fewer than 
109.33  ten employees, and a 75 percent loss ratio for all other small 
109.34  employer policies. 
109.35     (g) The ~~commissioners~~ commissioner of commerce ~~and health~~ 
109.36  shall ~~each~~ annually issue a public report listing, by health 
110.1   plan company, the actual loss ratios experienced in the 
110.2   individual and small employer markets in this state ~~by the~~ 
110.3   ~~health plan companies that the commissioners respectively~~ 
110.4   ~~regulate.  The commissioners shall coordinate release of these~~ 
110.5   ~~reports so as to release them as a joint report or as separate~~ 
110.6   ~~reports issued the same day~~.  The report ~~or reports~~ shall be 
110.7   released no later than June 1 for loss ratios experienced for 
110.8   the preceding calendar year.  Health plan companies shall 
110.9   provide to the ~~commissioners~~ commissioner any information 
110.10  requested by the ~~commissioners~~ commissioner for purposes of this 
110.11  paragraph. 
110.12     Sec. 2.  Minnesota Statutes 2000, section 62A.105, is 
110.13  amended to read: 
110.14     62A.105 [COVERAGES; TRANSFERS TO SUBSTANTIALLY SIMILAR 
110.15  PRODUCTS.] 
110.16     Subdivision 1.  [SCOPE.] No individual policy of accident 
110.17  and sickness regulated under this chapter or ~~subscriber contract~~ 
110.18  ~~regulated under chapter 62C~~ individual health plan shall be 
110.19  issued, renewed, or continued to provide coverage to a Minnesota 
110.20  resident unless it satisfies the requirements of subdivision 2. 
110.21     Subd. 2.  [REQUIREMENT.] If an issuer of policies or plans 
110.22  referred to in subdivision 1 ceases to offer a particular policy 
110.23  or ~~subscriber contract~~ plan to the general public or otherwise 
110.24  stops adding new insureds to the group of covered persons, the 
110.25  issuer shall allow any covered person to transfer to another 
110.26  substantially similar policy or ~~contract~~ plan currently being 
110.27  sold by the issuer.  The issuer shall permit the transfer 
110.28  without any preexisting condition limitation, waiting period, or 
110.29  other restriction of any type other than those which applied to 
110.30  the insured under the prior policy or ~~contract~~ plan.  This 
110.31  section does not apply to persons who were covered under an 
110.32  individual policy or ~~contract~~ plan prior to July 1, 1994. 
110.33     Sec. 3.  Minnesota Statutes 2000, section 62A.615, is 
110.34  amended to read: 
110.35     62A.615 [PREEXISTING CONDITIONS DISCLOSED AT TIME OF 
110.36  APPLICATION.] 
111.1      No ~~insurer~~ health plan company may cancel or rescind a 
111.2   ~~health insurance~~ policy of accident and sickness insurance or a 
111.3   health plan for a preexisting condition of which the application 
111.4   or other information provided by the insured reasonably gave the 
111.5   ~~insurer~~ health plan company notice.  No ~~insurer~~ health plan 
111.6   company may restrict coverage for a preexisting condition of 
111.7   which the application or other information provided by the 
111.8   insured reasonably gave the ~~insurer~~ health plan company notice 
111.9   unless the coverage is restricted at the time the policy or plan 
111.10  is issued and the restriction is disclosed in writing to the 
111.11  insured at the time the policy or plan is issued. 
111.12     Sec. 4.  Minnesota Statutes 2000, section 62D.02, 
111.13  subdivision 3, is amended to read: 
111.14     Subd. 3.  [~~COMMISSIONER OF HEALTH OR~~ COMMISSIONER.] 
111.15  ~~"Commissioner of health" or~~ "Commissioner" means the state 
111.16  commissioner of ~~health~~ commerce or a designee. 
111.17     Sec. 5.  Minnesota Statutes 2000, section 62D.02, 
111.18  subdivision 8, is amended to read: 
111.19     Subd. 8.  [HEALTH MAINTENANCE CONTRACT.] "Health 
111.20  maintenance contract" means any contract whereby a health 
111.21  maintenance organization agrees to provide comprehensive health 
111.22  maintenance services to enrollees, provided that the contract 
111.23  may contain reasonable enrollee copayment provisions.  An 
111.24  individual or group health maintenance contract may contain the 
111.25  copayment and deductible provisions specified in this 
111.26  subdivision.  Copayment and deductible provisions in group 
111.27  contracts shall not discriminate on the basis of age, sex, race, 
111.28  length of enrollment in the plan, or economic status; and during 
111.29  every open enrollment period in which all offered health benefit 
111.30  plans, including those subject to the jurisdiction of the 
111.31  ~~commissioners of commerce or health~~ commissioner, fully 
111.32  participate without any underwriting restrictions, copayment and 
111.33  deductible provisions shall not discriminate on the basis of 
111.34  preexisting health status.  ~~In no event shall the sum of the~~ 
111.35  ~~annual copayments and deductible exceed the maximum~~ 
111.36  ~~out-of-pocket expenses allowable for a number three qualified~~ 
112.1   ~~plan under section 62E.06, nor shall that sum exceed $5,000 per~~ 
112.2   ~~family.  The annual deductible must not exceed $1,000 per~~ 
112.3   ~~person.  The annual deductible must not apply to preventive~~ 
112.4   ~~health services as described in Minnesota Rules, part 4685.0801,~~ 
112.5   ~~subpart 8.~~  Where sections 62D.01 to 62D.30 permit a health 
112.6   maintenance organization to contain reasonable copayment 
112.7   provisions for preexisting health status, these provisions may 
112.8   vary with respect to length of enrollment in the plan.  Any 
112.9   contract may provide for health care services in addition to 
112.10  those set forth in subdivision 7. 
112.11     Sec. 6.  Minnesota Statutes 2000, section 62D.12, 
112.12  subdivision 1, is amended to read: 
112.13     Subdivision 1.  [FALSE REPRESENTATIONS.] No health 
112.14  maintenance organization or representative thereof may cause or 
112.15  knowingly permit the use of advertising or solicitation which is 
112.16  untrue or misleading, or any form of evidence of coverage which 
112.17  is deceptive.  Each health maintenance organization shall be 
112.18  subject to sections 72A.17 to 72A.32, relating to the regulation 
112.19  of trade practices, except ~~(a)~~ to the extent that the nature of 
112.20  a health maintenance organization renders such sections clearly 
112.21  inappropriate ~~and (b) that enforcement shall be by the~~ 
112.22  ~~commissioner of health and not by the commissioner of commerce~~.  
112.23  Every health maintenance organization shall be subject to 
112.24  sections 8.31 and 325F.69. 
112.25     Sec. 7.  Minnesota Statutes 2000, section 62D.15, 
112.26  subdivision 1, is amended to read: 
112.27     Subdivision 1.  [GROUNDS FOR SUSPENSION OR REVOCATION.] The 
112.28  commissioner ~~of health~~ may suspend or revoke any certificate of 
112.29  authority issued to a health maintenance organization under 
112.30  sections 62D.01 to 62D.30 if the commissioner finds that: 
112.31     ~~(a)~~ (1) the health maintenance organization is operating 
112.32  significantly in contravention of its basic organizational 
112.33  document, its health maintenance contract, or in a manner 
112.34  contrary to that described in and reasonably inferred from any 
112.35  other information submitted under section 62D.03, unless 
112.36  amendments to such submissions have been filed with and approved 
113.1   by the commissioner ~~of health~~; 
113.2      ~~(b)~~ (2) the health maintenance organization issues 
113.3   evidences of coverage which do not comply with the requirements 
113.4   of section 62D.07; 
113.5      ~~(c)~~ (3) the health maintenance organization is unable to 
113.6   fulfill its obligations to furnish comprehensive health 
113.7   maintenance services as required under its health maintenance 
113.8   contract; 
113.9      ~~(d)~~ (4) the health maintenance organization is no longer 
113.10  financially responsible and may reasonably be expected to be 
113.11  unable to meet its obligations to enrollees or prospective 
113.12  enrollees; 
113.13     ~~(e)~~ (5) the health maintenance organization has failed to 
113.14  implement a mechanism affording the enrollees an opportunity to 
113.15  participate in matters of policy and operation under section 
113.16  62D.06; 
113.17     ~~(f)~~ (6) the health maintenance organization has failed to 
113.18  implement the complaint system required by section 62D.11 in a 
113.19  manner designed to reasonably resolve valid complaints; 
113.20     ~~(g)~~ (7) the health maintenance organization, or any person 
113.21  acting with its sanction, has advertised or merchandised its 
113.22  services in an untrue, misrepresentative, misleading, deceptive, 
113.23  or unfair manner; 
113.24     ~~(h)~~ (8) the continued operation of the health maintenance 
113.25  organization would be hazardous to its enrollees; ~~or~~ 
113.26     ~~(i)~~ (9) the health maintenance organization has otherwise 
113.27  failed to substantially comply with sections 62D.01 to 62D.30 or 
113.28  with any other statute or administrative rule applicable to 
113.29  health maintenance organizations, or has submitted false 
113.30  information in any report required hereunder; 
113.31     (10) any situation described in section 60A.052, 
113.32  subdivision 1, exists; 
113.33     (11) the provider network in the managed care service area 
113.34  is inadequate in terms of the number, location, and field of 
113.35  specialty of its providers; or 
113.36     (12) the health services provided or arranged are 
114.1   substantially inappropriate, untimely, or otherwise inconsistent 
114.2   with current professional knowledge and accepted standards of 
114.3   practice. 
114.4      Sec. 8.  Minnesota Statutes 2000, section 62D.24, is 
114.5   amended to read: 
114.6      62D.24 [~~STATE~~ COMMISSIONER OF ~~HEALTH'S~~ COMMERCE'S AUTHORITY 
114.7   TO CONTRACT.] 
114.8      The commissioner of ~~health~~ commerce, in carrying out the 
114.9   obligations under sections 62D.01 to 62D.30, may contract with 
114.10  the commissioner of ~~commerce~~ health or other qualified persons 
114.11  to make recommendations concerning the determinations required 
114.12  to be made.  Such recommendations may be accepted in full or in 
114.13  part by the commissioner of ~~health~~ commerce. 
114.14     Sec. 9.  Minnesota Statutes 2000, section 62E.05, 
114.15  subdivision 2, is amended to read: 
114.16     Subd. 2.  [ANNUAL REPORT.] (a) All health plan companies, 
114.17  as defined in section 62Q.01, shall annually report to the 
114.18  commissioner ~~responsible for their regulation~~.  The following 
114.19  information shall be reported to the ~~appropriate~~ commissioner on 
114.20  February 1 of each year: 
114.21     (1) the number of individuals and groups who received 
114.22  coverage in the prior year through the qualified plans; and 
114.23     (2) the number of individuals and groups who received 
114.24  coverage in the prior year through each of the unqualified plans 
114.25  sold by the company. 
114.26     (b) The state of Minnesota or any of its departments, 
114.27  agencies, programs, instrumentalities, or political 
114.28  subdivisions, shall report in writing to the association and to 
114.29  the commissioner of commerce no later than September 15 of each 
114.30  year regarding the number of persons and the amount of premiums, 
114.31  deductibles, copayments, or coinsurance that it paid for on 
114.32  behalf of enrollees in the comprehensive health association.  
114.33  This report must contain only summary information and must not 
114.34  include any individually identifiable data.  The report must 
114.35  cover the 12-month period ending the preceding June 30. 
114.36     Sec. 10.  Minnesota Statutes 2000, section 62E.11, 
115.1   subdivision 13, is amended to read: 
115.2      Subd. 13.  [STATE FUNDING; EFFECT ON PREMIUM RATES OF 
115.3   MEMBERS.] In approving the premium rates as required in sections 
115.4   62A.65, subdivision 3; and 62L.08, subdivision 8, the 
115.5   ~~commissioners of health and~~ commissioner of commerce shall 
115.6   ensure that any appropriation to reduce the annual assessment 
115.7   made on the contributing members to cover the costs of the 
115.8   Minnesota comprehensive health insurance plan as required under 
115.9   this section is reflected in the premium rates charged by each 
115.10  contributing member. 
115.11     Sec. 11.  Minnesota Statutes 2000, section 62E.14, 
115.12  subdivision 6, is amended to read: 
115.13     Subd. 6.  [TERMINATION OF INDIVIDUAL POLICY OR CONTRACT.] A 
115.14  Minnesota resident who holds an individual health maintenance 
115.15  contract, individual nonprofit health service corporation 
115.16  contract, or an individual insurance policy previously approved 
115.17  by the ~~commissioners of health or~~ commissioner of commerce, may 
115.18  enroll in the comprehensive health insurance plan with a waiver 
115.19  of the preexisting condition as described in subdivision 3, 
115.20  without interruption in coverage, provided (1) no replacement 
115.21  coverage that meets the requirements of section 62D.121 was 
115.22  offered by the contributing member, and (2) the policy or 
115.23  contract has been terminated for reasons other than (a) 
115.24  nonpayment of premium; (b) failure to make copayments required 
115.25  by the health care plan; (c) moving out of the area served; or 
115.26  (d) a materially false statement or misrepresentation by the 
115.27  enrollee in the application for membership; and, provided 
115.28  further, that the option to enroll in the plan is exercised 
115.29  within 30 days of termination of the existing policy or contract.
115.30     Coverage allowed under this section is effective when the 
115.31  contract or policy is terminated and the enrollee has completed 
115.32  the proper application and paid the required premium or fee. 
115.33     Expenses incurred from the preexisting conditions of 
115.34  individuals enrolled in the state plan under this subdivision 
115.35  must be paid by the contributing member canceling coverage as 
115.36  set forth in section 62E.11, subdivision 10. 
116.1      The application must include evidence of termination of the 
116.2   existing policy or certificate as required in subdivision 1. 
116.3      Sec. 12.  Minnesota Statutes 2000, section 62J.041, 
116.4   subdivision 4, is amended to read: 
116.5      Subd. 4.  [MONITORING OF RESERVES.] (a) The ~~commissioners~~ 
116.6   ~~of health and~~ commissioner of commerce shall monitor health plan 
116.7   company reserves and net worth as established under chapters 
116.8   60A, 62C, 62D, 62H, and 64B~~, with respect to the health plan~~ 
116.9   ~~companies that each commissioner respectively regulates~~ to 
116.10  assess the degree to which savings resulting from the 
116.11  establishment of cost containment goals are passed on to 
116.12  consumers in the form of lower premium rates.  
116.13     (b) Health plan companies shall fully reflect in the 
116.14  premium rates the savings generated by the cost containment 
116.15  goals.  No premium rate, currently reviewed by the ~~departments~~ 
116.16  ~~of health or~~ commissioner of commerce, may be approved for those 
116.17  health plan companies unless the health plan company establishes 
116.18  to the satisfaction of the commissioner of commerce ~~or the~~ 
116.19  ~~commissioner of health, as appropriate,~~ that the proposed new 
116.20  rate would comply with this paragraph. 
116.21     (c) Health plan companies, except those licensed under 
116.22  chapter 60A to sell accident and sickness insurance under 
116.23  chapter 62A, shall annually before the end of the fourth fiscal 
116.24  quarter provide to the commissioner of ~~health or~~ commerce~~, as~~ 
116.25  ~~applicable,~~ a projection of the level of reserves the company 
116.26  expects to attain during each quarter of the following fiscal 
116.27  year.  These health plan companies shall submit with required 
116.28  quarterly financial statements a calculation of the actual 
116.29  reserve level attained by the company at the end of each quarter 
116.30  including identification of the sources of any significant 
116.31  changes in the reserve level and an updated projection of the 
116.32  level of reserves the health plan company expects to attain by 
116.33  the end of the fiscal year.  In cases where the health plan 
116.34  company has been given a certificate to operate a new health 
116.35  maintenance organization under chapter 62D, or been licensed as 
116.36  a community integrated service network under chapter 62N, or 
117.1   formed an affiliation with one of these organizations, the 
117.2   health plan company shall also submit with its quarterly 
117.3   financial statement, total enrollment at the beginning and end 
117.4   of the quarter and enrollment changes within each service area 
117.5   of the new organization.  The reserve calculations shall be 
117.6   maintained by the ~~commissioners~~ commissioner of commerce as 
117.7   trade secret information, except to the extent that such 
117.8   information is also required to be filed by another provision of 
117.9   state law and is not treated as trade secret information under 
117.10  such other provisions. 
117.11     (d) Health plan companies in paragraph (c) whose reserves 
117.12  are less than the required minimum or more than the required 
117.13  maximum at the end of the fiscal year shall submit a plan of 
117.14  corrective action to the commissioner of ~~health or~~ commerce 
117.15  under subdivision 7. 
117.16     (e) The commissioner of commerce~~, in consultation with the~~ 
117.17  ~~commissioner of health,~~ shall report to the legislature no later 
117.18  than January 15, 1995, as to whether the concept of a reserve 
117.19  corridor or other mechanism for purposes of monitoring reserves 
117.20  is adaptable for use with indemnity health insurers that do 
117.21  business in multiple states and that must comply with their 
117.22  domiciliary state's reserves requirements. 
117.23     Sec. 13.  Minnesota Statutes 2000, section 62J.701, is 
117.24  amended to read: 
117.25     62J.701 [GOVERNMENTAL PROGRAMS.] 
117.26     Beginning January 1, 1999, the provisions in paragraphs (a) 
117.27  to (d) apply. 
117.28     (a) For purposes of sections 62J.695 to 62J.80, the 
117.29  requirements and other provisions that apply to health plan 
117.30  companies also apply to governmental programs. 
117.31     (b) For purposes of this section, "governmental programs" 
117.32  means the medical assistance program, the MinnesotaCare program, 
117.33  the general assistance medical care program, the state employee 
117.34  group insurance program, the public employees insurance program 
117.35  under section 43A.316, and coverage provided by political 
117.36  subdivisions under section 471.617. 
118.1      (c) Notwithstanding paragraph (a), section 62J.72 does not 
118.2   apply to the fee-for-service programs under medical assistance, 
118.3   MinnesotaCare, and general assistance medical care. 
118.4      (d) If a state commissioner or local unit of government 
118.5   contracts with a health plan company or a third-party 
118.6   administrator, the contract may assign any obligations under 
118.7   paragraph (a) to the health plan company or third-party 
118.8   administrator.  Nothing in this paragraph shall be construed to 
118.9   remove or diminish any enforcement responsibilities of the 
118.10  ~~commissioners of health or~~ commissioner of commerce provided in 
118.11  sections 62J.695 to 62J.80. 
118.12     Sec. 14.  Minnesota Statutes 2000, section 62J.74, 
118.13  subdivision 1, is amended to read: 
118.14     Subdivision 1.  [AUTHORITY.] The ~~commissioners~~ commissioner 
118.15  of ~~health and~~ commerce shall ~~each~~ periodically review contracts 
118.16  and arrangements among health care providing entities and health 
118.17  plan companies ~~they regulate~~ to determine compliance with 
118.18  sections 62J.70 to 62J.73.  Any person may submit a contract or 
118.19  arrangement to the ~~relevant~~ commissioner for review if the 
118.20  person believes sections 62J.70 to 62J.73 have been violated.  
118.21  Any provision of a contract or arrangement found by the ~~relevant~~ 
118.22  commissioner to violate this section is null and void, and the 
118.23  ~~relevant~~ commissioner may assess civil penalties against the 
118.24  health plan company in an amount not to exceed $2,500 for each 
118.25  day the contract or arrangement is in effect, and may use the 
118.26  enforcement procedures otherwise available to the commissioner.  
118.27  All due process rights afforded under chapter 14 apply to this 
118.28  section.  
118.29     Sec. 15.  Minnesota Statutes 2000, section 62J.74, 
118.30  subdivision 2, is amended to read: 
118.31     Subd. 2.  [ASSISTANCE TO LICENSING BOARDS.] A 
118.32  health-related licensing board as defined under section 214.01, 
118.33  subdivision 2, shall submit a contract or arrangement to the 
118.34  ~~relevant~~ commissioner of commerce for review if the board 
118.35  believes sections 62J.70 to 62J.73 have been violated.  If the 
118.36  commissioner determines that any provision of a contract or 
119.1   arrangement violates those sections, the board may take 
119.2   disciplinary action against any person who is licensed or 
119.3   regulated by the board who entered into the contract arrangement.
119.4      Sec. 16.  Minnesota Statutes 2000, section 62J.75, is 
119.5   amended to read: 
119.6      62J.75 [CONSUMER ADVISORY BOARD.] 
119.7      (a) The consumer advisory board consists of 18 members 
119.8   appointed in accordance with paragraph (b).  All members must be 
119.9   public, consumer members who: 
119.10     (1) do not have and never had a material interest in either 
119.11  the provision of health care services or in an activity directly 
119.12  related to the provision of health care services, such as health 
119.13  insurance sales or health plan administration; 
119.14     (2) are not registered lobbyists; and 
119.15     (3) are not currently responsible for or directly involved 
119.16  in the purchasing of health insurance for a business or 
119.17  organization. 
119.18     (b) The governor, the speaker of the house of 
119.19  representatives, and the subcommittee on committees of the 
119.20  committee on rules and administration of the senate shall each 
119.21  appoint six members.  Members may be compensated in accordance 
119.22  with section 15.059, subdivision 3, except that members shall 
119.23  not receive per diem compensation or reimbursements for child 
119.24  care expenses. 
119.25     (c) The board shall advise the ~~commissioners of health and~~ 
119.26  commissioner of commerce on the following: 
119.27     (1) the needs of health care consumers and how to better 
119.28  serve and educate the consumers on health care concerns and 
119.29  recommend solutions to identified problems; and 
119.30     (2) consumer protection issues in the self-insured market, 
119.31  including, but not limited to, public education needs. 
119.32     The board also may make recommendations to the legislature 
119.33  on these issues. 
119.34     (d) The board and this section expire June 30, 2001. 
119.35     Sec. 17.  Minnesota Statutes 2000, section 62L.02, 
119.36  subdivision 8, is amended to read: 
120.1      Subd. 8.  [COMMISSIONER.] "Commissioner" means the 
120.2   commissioner of commerce ~~for health carriers subject to the~~ 
120.3   ~~jurisdiction of the department of commerce or the commissioner~~ 
120.4   ~~of health for health carriers subject to the jurisdiction of the~~ 
120.5   ~~department of health,~~ or the ~~relevant~~ commissioner's designated 
120.6   representative.  ~~For purposes of sections 62L.13 to 62L.22,~~ 
120.7   ~~"commissioner" means the commissioner of commerce or that~~ 
120.8   ~~commissioner's designated representative.~~ 
120.9      Sec. 18.  Minnesota Statutes 2000, section 62L.05, 
120.10  subdivision 12, is amended to read: 
120.11     Subd. 12.  [DEMONSTRATION PROJECTS.] Nothing in this 
120.12  chapter prohibits a health maintenance organization from 
120.13  offering a demonstration project authorized under section 62D.30.
120.14  The commissioner ~~of health~~ may approve a demonstration project 
120.15  which offers benefits that do not meet the requirements of a 
120.16  small employer plan if the commissioner finds that the 
120.17  requirements of section 62D.30 are otherwise met. 
120.18     Sec. 19.  Minnesota Statutes 2000, section 62L.08, 
120.19  subdivision 10, is amended to read: 
120.20     Subd. 10.  [RATING REPORT.] Beginning January 1, 1995, and 
120.21  annually thereafter, the ~~commissioners~~ commissioner of ~~health~~ 
120.22  ~~and~~ commerce shall provide a ~~joint~~ report to the legislature on 
120.23  the effect of the rating restrictions required by this section 
120.24  and the appropriateness of proceeding with additional rate 
120.25  reform.  Each report must include an analysis of the 
120.26  availability of health care coverage due to the rating reform, 
120.27  the equitable and appropriate distribution of risk and 
120.28  associated costs, the effect on the self-insurance market, and 
120.29  any resulting or anticipated change in health plan design and 
120.30  market share and availability of health carriers. 
120.31     Sec. 20.  Minnesota Statutes 2000, section 62L.08, 
120.32  subdivision 11, is amended to read: 
120.33     Subd. 11.  [LOSS RATIO STANDARDS.] Notwithstanding section 
120.34  62A.02, subdivision 3, relating to loss ratios, each policy or 
120.35  contract form used with respect to a health benefit plan 
120.36  offered, or issued in the small employer market, is subject, 
121.1   beginning July 1, 1993, to section 62A.021.  ~~The commissioner of~~ 
121.2   ~~health has, with respect to carriers under that commissioner's~~ 
121.3   ~~jurisdiction, all of the powers of the commissioner of commerce~~ 
121.4   ~~under that section.~~ 
121.5      Sec. 21.  Minnesota Statutes 2000, section 62L.09, 
121.6   subdivision 3, is amended to read: 
121.7      Subd. 3.  [REENTRY PROHIBITION.] (a) Except as otherwise 
121.8   provided in paragraph (b), a health carrier that ceases to do 
121.9   business in the small employer market after July 1, 1993, is 
121.10  prohibited from writing new business in the small employer 
121.11  market in this state for a period of five years from the date of 
121.12  notice to the commissioner.  This subdivision applies to any 
121.13  health maintenance organization that ceases to do business in 
121.14  the small employer market in one service area with respect to 
121.15  that service area only.  Nothing in this subdivision prohibits 
121.16  an affiliated health maintenance organization from continuing to 
121.17  do business in the small employer market in that same service 
121.18  area.  
121.19     (b) The commissioner of commerce ~~or the commissioner of~~ 
121.20  ~~health~~ may permit a health carrier that ceases to do business in 
121.21  the small employer market in this state after July 1, 1993, to 
121.22  begin writing new business in the small employer market if: 
121.23     (1) since the carrier ceased doing business in the small 
121.24  employer market, legislative action has occurred that has 
121.25  significantly changed the effect on the carrier of its decision 
121.26  to cease doing business in the small employer market; and 
121.27     (2) the commissioner deems it appropriate. 
121.28     Sec. 22.  Minnesota Statutes 2000, section 62L.10, 
121.29  subdivision 4, is amended to read: 
121.30     Subd. 4.  [REVIEW OF PREMIUM RATES.] The commissioner shall 
121.31  regulate premium rates charged or proposed to be charged by all 
121.32  health carriers in the small employer market under section 
121.33  62A.02.  ~~The commissioner of health has, with respect to~~ 
121.34  ~~carriers under that commissioner's jurisdiction, all of the~~ 
121.35  ~~powers of the commissioner of commerce under that section.~~ 
121.36     Sec. 23.  Minnesota Statutes 2000, section 62L.11, 
122.1   subdivision 2, is amended to read: 
122.2      Subd. 2.  [ENFORCEMENT POWERS.] The ~~commissioners~~ 
122.3   commissioner of ~~health and~~ commerce ~~each~~ has for purposes of 
122.4   this chapter all of ~~each~~ the commissioner's ~~respective~~ powers 
122.5   under other chapters that are applicable to ~~their respective~~ the 
122.6   commissioner's duties under this chapter.  
122.7      Sec. 24.  Minnesota Statutes 2000, section 62M.11, is 
122.8   amended to read: 
122.9      62M.11 [COMPLAINTS TO COMMERCE ~~OR HEALTH~~.] 
122.10     Notwithstanding the provisions of sections 62M.01 to 
122.11  62M.16, an enrollee may file a complaint regarding a 
122.12  determination not to certify directly to the commissioner 
122.13  ~~responsible for regulating the utilization review~~ 
122.14  ~~organization~~ of commerce. 
122.15     Sec. 25.  Minnesota Statutes 2000, section 62M.16, is 
122.16  amended to read: 
122.17     62M.16 [RULEMAKING.] 
122.18     If it is determined that rules are reasonable and necessary 
122.19  to accomplish the purpose of sections 62M.01 to 62M.16, the 
122.20  rules must be adopted ~~through a joint rulemaking process~~ by ~~both~~ 
122.21  the ~~department~~ commissioner of commerce ~~and the department of~~ 
122.22  ~~health~~. 
122.23     Sec. 26.  Minnesota Statutes 2000, section 62N.02, 
122.24  subdivision 4, is amended to read: 
122.25     Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
122.26  commissioner of ~~health~~ commerce or the commissioner's designated 
122.27  representative. 
122.28     Sec. 27.  Minnesota Statutes 2000, section 62N.26, is 
122.29  amended to read: 
122.30     62N.26 [SHARED SERVICES COOPERATIVE.] 
122.31     The commissioner of ~~health~~ commerce shall establish, or 
122.32  assist in establishing, a shared services cooperative organized 
122.33  under chapter 308A to make available administrative and legal 
122.34  services, technical assistance, provider contracting and billing 
122.35  services, and other services to those community integrated 
122.36  service networks that choose to participate in the cooperative.  
123.1   The commissioner shall provide, to the extent funds are 
123.2   appropriated, start-up loans sufficient to maintain the shared 
123.3   services cooperative until its operations can be maintained by 
123.4   fees and contributions.  The cooperative must not be staffed, 
123.5   administered, or supervised by the commissioner of ~~health~~ 
123.6   commerce.  The cooperative shall make use of existing resources 
123.7   that are already available in the community, to the extent 
123.8   possible. 
123.9      Sec. 28.  Minnesota Statutes 2000, section 62Q.01, 
123.10  subdivision 2, is amended to read: 
123.11     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
123.12  commissioner of ~~health for purposes of regulating health~~ 
123.13  ~~maintenance organizations, and community integrated service~~ 
123.14  ~~networks, or the commissioner of~~ commerce ~~for purposes of~~ 
123.15  ~~regulating all other health plan companies.  For all other~~ 
123.16  ~~purposes, "commissioner" means the commissioner of health~~. 
123.17     Sec. 29.  Minnesota Statutes 2000, section 62Q.03, 
123.18  subdivision 5a, is amended to read: 
123.19     Subd. 5a.  [PUBLIC PROGRAMS.] (a) A separate risk 
123.20  adjustment system must be developed for state-run public 
123.21  programs, including medical assistance, general assistance 
123.22  medical care, and MinnesotaCare.  The system must be developed 
123.23  in accordance with the general risk adjustment methodologies 
123.24  described in this section, must include factors in addition to 
123.25  age and sex adjustment, and may include additional demographic 
123.26  factors, different targeted conditions, and/or different payment 
123.27  amounts for conditions.  The risk adjustment system for public 
123.28  programs must attempt to reflect the special needs related to 
123.29  poverty, cultural, or language barriers and other needs of the 
123.30  public program population. 
123.31     (b) The commissioners of health and human services shall 
123.32  jointly convene a public programs risk adjustment work group 
123.33  responsible for advising the commissioners in the design of the 
123.34  public programs risk adjustment system.  The public programs 
123.35  risk adjustment work group is governed by section 15.059 for 
123.36  purposes of membership terms, expiration, and removal of 
124.1   members.  The work group shall meet at the discretion of the 
124.2   commissioners of health and human services.  The commissioner of 
124.3   health shall work with the risk adjustment association to ensure 
124.4   coordination between the risk adjustment systems for the public 
124.5   and private sectors.  The commissioner of human services shall 
124.6   seek any needed federal approvals necessary for the inclusion of 
124.7   the medical assistance program in the public programs risk 
124.8   adjustment system.  
124.9      (c) The public programs risk adjustment work group must be 
124.10  representative of the persons served by publicly paid health 
124.11  programs and providers and health plans that meet their needs.  
124.12  To the greatest extent possible, the appointing authorities 
124.13  shall attempt to select representatives that have historically 
124.14  served a significant number of persons in publicly paid health 
124.15  programs or the uninsured.  Membership of the work group shall 
124.16  be as follows: 
124.17     (1) one provider member appointed by the Minnesota Medical 
124.18  Association; 
124.19     (2) two provider members appointed by the Minnesota 
124.20  Hospital Association, at least one of whom must represent a 
124.21  major disproportionate share hospital; 
124.22     (3) five members appointed by the Minnesota Council of 
124.23  HMOs, one of whom must represent an HMO with fewer than 50,000 
124.24  enrollees located outside the metropolitan area and one of whom 
124.25  must represent an HMO with at least 50 percent of total 
124.26  membership enrolled through a public program; 
124.27     (4) two representatives of counties appointed by the 
124.28  Association of Minnesota Counties; 
124.29     (5) three representatives of organizations representing the 
124.30  interests of families, children, childless adults, and elderly 
124.31  persons served by the various publicly paid health programs 
124.32  appointed by the governor; 
124.33     (6) two representatives of persons with mental health, 
124.34  developmental or physical disabilities, chemical dependency, or 
124.35  chronic illness appointed by the governor; and 
124.36     (7) three public members appointed by the governor, at 
125.1   least one of whom must represent a community health board.  The 
125.2   risk adjustment association may appoint a representative, if a 
125.3   representative is not otherwise appointed by an appointing 
125.4   authority. 
125.5      (d) The commissioners of health and human services, with 
125.6   the advice of the public programs risk adjustment work group, 
125.7   shall develop a work plan and time frame and shall coordinate 
125.8   their efforts with the private sector risk adjustment 
125.9   association's activities and other state initiatives related to 
125.10  public program managed care reimbursement. 
125.11     (e) Before including risk adjustment in a contract for the 
125.12  prepaid medical assistance program, the prepaid general 
125.13  assistance medical care program, or the MinnesotaCare program, 
125.14  the commissioner of human services shall provide to the 
125.15  contractor an analysis of the expected impact on the contractor 
125.16  of the implementation of risk adjustment.  This analysis may be 
125.17  limited by the available data and resources, as determined by 
125.18  the commissioner of human services, and shall not be binding on 
125.19  future contract periods.  This paragraph shall not apply if the 
125.20  contractor has not supplied information to the commissioner of 
125.21  human services related to the risk adjustment analysis. 
125.22     (f) The commissioner of human services shall report to the 
125.23  public program risk adjustment work group on the methodology the 
125.24  department will use for risk adjustment prior to implementation 
125.25  of the risk adjustment payment methodology.  Upon completion of 
125.26  the report to the work group, the commissioner of human services 
125.27  shall phase in risk adjustment according to the following 
125.28  schedule: 
125.29     (1) for the first contract year, no more than ten percent 
125.30  of reimbursements shall be risk adjusted; and 
125.31     (2) for the second contract year, no more than 30 percent 
125.32  of reimbursements shall be risk adjusted. 
125.33     Sec. 30.  Minnesota Statutes 2000, section 62Q.07, is 
125.34  amended to read: 
125.35     62Q.07 [ACTION PLANS.] 
125.36     Subdivision 1.  [ACTION PLANS REQUIRED.] (a) To increase 
126.1   public awareness and accountability of health plan companies, 
126.2   all health plan companies that issue or renew a ~~health plan, as~~ 
126.3   ~~defined in section 62Q.01~~ managed care plan, as defined in 
126.4   section 62U.01, must annually file with the ~~applicable~~ 
126.5   commissioner an action plan that satisfies the requirements of 
126.6   this section beginning July 1, 1994, as a condition of doing 
126.7   business in Minnesota.  ~~For purposes of this subdivision,~~ 
126.8   ~~"health plan" includes the coverages described in section~~ 
126.9   ~~62A.011, subdivision 3, clause (10).~~  Each health plan company 
126.10  must also file its action plan with the information 
126.11  clearinghouse.  Action plans are required solely to provide 
126.12  information to consumers, purchasers, and the larger community 
126.13  as a first step toward greater accountability of health plan 
126.14  companies.  The sole function of the commissioner in relation to 
126.15  the action plans is to ensure that each health plan company 
126.16  files a complete action plan, that the action plan is truthful 
126.17  and not misleading, and that the action plan is reviewed by 
126.18  appropriate community agencies. 
126.19     (b) If ~~a~~ the commissioner ~~responsible for regulating a~~ 
126.20  ~~health plan company required to file an action plan under this~~ 
126.21  ~~section~~ has reason to believe an action plan is false or 
126.22  misleading, the commissioner may conduct an investigation to 
126.23  determine whether the action plan is truthful and not 
126.24  misleading, and may require the health plan company to submit 
126.25  any information that the commissioner reasonably deems necessary 
126.26  to complete the investigation.  If the commissioner determines 
126.27  that an action plan is false or misleading, the commissioner may 
126.28  require the health plan company to file an amended plan or may 
126.29  take any action authorized under chapter 72A. 
126.30     Subd. 2.  [CONTENTS OF ACTION PLANS.] ~~(a) An action plan~~ 
126.31  ~~must include a detailed description of all of the health plan~~ 
126.32  ~~company's methods and procedures, standards, qualifications,~~ 
126.33  ~~criteria, and credentialing requirements for designating the~~ 
126.34  ~~providers who are eligible to participate in the health plan~~ 
126.35  ~~company's provider network, including any limitations on the~~ 
126.36  ~~numbers of providers to be included in the network.  This~~ 
127.1   ~~description must be updated by the health plan company and filed~~ 
127.2   ~~with the applicable agency on a quarterly basis.~~  
127.3      ~~(b) An action plan must include the number of full-time~~ 
127.4   ~~equivalent physicians, by specialty, nonphysician providers, and~~ 
127.5   ~~allied health providers used to provide services.  The action~~ 
127.6   ~~plan must also describe how the health plan company intends to~~ 
127.7   ~~encourage the use of nonphysician providers, midlevel~~ 
127.8   ~~practitioners, and allied health professionals, through at least~~ 
127.9   ~~consumer education, physician education, and referral and~~ 
127.10  ~~advisement systems.  The annual action plan must also include~~ 
127.11  ~~data that is broken down by type of provider, reflecting actual~~ 
127.12  ~~utilization of midlevel practitioners and allied professionals~~ 
127.13  ~~by enrollees of the health plan company during the previous~~ 
127.14  ~~year.  Until July 1, 1995, a health plan company may use~~ 
127.15  ~~estimates if actual data is not available.  For purposes of this~~ 
127.16  ~~paragraph, "provider" has the meaning given in section 62J.03,~~ 
127.17  ~~subdivision 8.~~  
127.18     ~~(c) An action plan must include a description of the health~~ 
127.19  ~~plan company's policy on determining the number and the type of~~ 
127.20  ~~providers that are necessary to deliver cost-effective health~~ 
127.21  ~~care to its enrollees.  The action plan must also include the~~ 
127.22  ~~health plan company's strategy, including provider recruitment~~ 
127.23  ~~and retention activities, for ensuring that sufficient providers~~ 
127.24  ~~are available to its enrollees.~~ 
127.25     ~~(d) An action plan must include a description of actions~~ 
127.26  ~~taken or planned by the health plan company to ensure that~~ 
127.27  ~~information from report cards, outcome studies, and complaints~~ 
127.28  ~~is used internally to improve quality of the services provided~~ 
127.29  ~~by the health plan company.~~ 
127.30     ~~(e)~~ An action plan must include a detailed description of 
127.31  the health plan company's policies and procedures for enrolling 
127.32  and serving high risk and special needs populations.  This 
127.33  description must also include the barriers that are present for 
127.34  the high risk and special needs population and how the health 
127.35  plan company is addressing these barriers in order to provide 
127.36  greater access to these populations.  "High risk and special 
128.1   needs populations" includes, but is not limited to, recipients 
128.2   of medical assistance, general assistance medical care, and 
128.3   MinnesotaCare; persons with chronic conditions or disabilities; 
128.4   individuals within certain racial, cultural, and ethnic 
128.5   communities; individuals and families with low income; 
128.6   adolescents; the elderly; individuals with limited or no English 
128.7   language proficiency; persons with high-cost preexisting 
128.8   conditions; homeless persons; chemically dependent persons; 
128.9   persons with serious and persistent mental illness; children 
128.10  with severe emotional disturbance; and persons who are at high 
128.11  risk of requiring treatment.  For purposes of this paragraph, 
128.12  "provider" has the meaning given in section 62J.03, subdivision 
128.13  8. 
128.14     ~~(f) An action plan must include a general description of~~ 
128.15  ~~any action the health plan company has taken and those it~~ 
128.16  ~~intends to take to offer health coverage options to rural~~ 
128.17  ~~communities and other communities not currently served by the~~ 
128.18  ~~health plan company.~~ 
128.19     ~~(g) A health plan company other than a large managed care~~ 
128.20  ~~plan company may satisfy any of the requirements of the action~~ 
128.21  ~~plan in paragraphs (a) to (f) by stating that it has no~~ 
128.22  ~~policies, procedures, practices, or requirements, either written~~ 
128.23  ~~or unwritten, or formal or informal, and has undertaken no~~ 
128.24  ~~activities or plans on the issues required to be addressed in~~ 
128.25  ~~the action plan, provided that the statement is truthful and not~~ 
128.26  ~~misleading.  For purposes of this paragraph, "large managed care~~ 
128.27  ~~plan company" means a health maintenance organization or other~~ 
128.28  ~~health plan company that employs or contracts with health care~~ 
128.29  ~~providers, that has more than 50,000 enrollees in this state.~~  
128.30  ~~If a health plan company employs or contracts with providers for~~ 
128.31  ~~some of its health plans and does not do so for other health~~ 
128.32  ~~plans that it offers, the health plan company is a large managed~~ 
128.33  ~~care plan company if it has more than 50,000 enrollees in this~~ 
128.34  ~~state in health plans for which it does employ or contract with~~ 
128.35  ~~providers.~~ 
128.36     Sec. 31.  Minnesota Statutes 2000, section 62Q.106, is 
129.1   amended to read: 
129.2      62Q.106 [DISPUTE RESOLUTION BY COMMISSIONER.] 
129.3      A complainant may at any time submit a complaint to the 
129.4   ~~appropriate~~ commissioner to investigate.  After investigating a 
129.5   complaint, or reviewing a company's decision, the ~~appropriate~~ 
129.6   commissioner may order a remedy as authorized under chapter 45, 
129.7   60A, or 62D.  
129.8      Sec. 32.  Minnesota Statutes 2000, section 62Q.22, 
129.9   subdivision 2, is amended to read: 
129.10     Subd. 2.  [REGISTRATION.] A community health clinic that 
129.11  offers a prepaid option under this section must register on an 
129.12  annual basis with the commissioner ~~of health~~. 
129.13     Sec. 33.  Minnesota Statutes 2000, section 62Q.22, 
129.14  subdivision 6, is amended to read: 
129.15     Subd. 6.  [INFORMATION TO BE PROVIDED.] (a) A community 
129.16  health clinic must provide an individual or family who purchases 
129.17  a prepaid option a clear and concise written statement that 
129.18  includes the following information: 
129.19     (1) the health care services that the prepaid option 
129.20  covers; 
129.21     (2) any exclusions or limitations on the health care 
129.22  services offered, including any preexisting condition 
129.23  limitations, cost-sharing arrangements, or prior authorization 
129.24  requirements; 
129.25     (3) where the health care services may be obtained; 
129.26     (4) a description of the clinic's method for resolving 
129.27  patient complaints, including a description of how a patient can 
129.28  file a complaint with the ~~department of health~~ commissioner of 
129.29  commerce; and 
129.30     (5) a description of the conditions under which the prepaid 
129.31  option may be canceled or terminated. 
129.32     (b) The commissioner of ~~health~~ commerce must approve a copy 
129.33  of the written statement before the community health clinic may 
129.34  offer the prepaid option described in this section.  
129.35     Sec. 34.  Minnesota Statutes 2000, section 62Q.22, 
129.36  subdivision 7, is amended to read: 
130.1      Subd. 7.  [COMPLAINT PROCESS.] (a) A community health 
130.2   clinic that offers a prepaid option under this section must 
130.3   establish a complaint resolution process.  As an alternative to 
130.4   establishing its own process, a community health clinic may use 
130.5   the complaint process of another organization.  
130.6      (b) A community health clinic must make reasonable efforts 
130.7   to resolve complaints and to inform complainants in writing of 
130.8   the clinic's decision within 60 days of receiving the complaint. 
130.9      (c) A community health clinic that offers a prepaid option 
130.10  under this section must report all complaints that are not 
130.11  resolved within 60 days to the commissioner ~~of health~~. 
130.12     Sec. 35.  Minnesota Statutes 2000, section 62Q.32, is 
130.13  amended to read: 
130.14     62Q.32 [LOCAL OMBUDSPERSON.] 
130.15     County board or community health service agencies may 
130.16  establish an office of ombudsperson to provide a system of 
130.17  consumer advocacy for persons receiving health care services 
130.18  through a health plan company.  The ombudsperson's functions may 
130.19  include, but are not limited to~~:~~ 
130.20     ~~(a)~~, mediation or advocacy on behalf of a person accessing 
130.21  the complaint and appeal procedures to ensure that necessary 
130.22  medical services are provided by the health plan company~~; and~~ 
130.23     ~~(b) investigation of the quality of services provided to a~~ 
130.24  ~~person and determine the extent to which quality assurance~~ 
130.25  ~~mechanisms are needed or any other system change may be needed.~~  
130.26  ~~The commissioner of health shall make recommendations for~~ 
130.27  ~~funding these functions including the amount of funding needed~~ 
130.28  ~~and a plan for distribution.  The commissioner shall submit~~ 
130.29  ~~these recommendations to the legislative commission on health~~ 
130.30  ~~care access by January 15, 1996~~. 
130.31     Sec. 36.  Minnesota Statutes 2000, section 62Q.33, 
130.32  subdivision 2, is amended to read: 
130.33     Subd. 2.  [REPORT ON SYSTEM DEVELOPMENT.] The commissioner 
130.34  of health, in consultation with the state community health 
130.35  services advisory committee and the commissioner of human 
130.36  services, and representatives of local health departments, 
131.1   county government, a municipal government acting as a local 
131.2   board of health, area Indian health services, health care 
131.3   providers, and citizens concerned about public health, shall 
131.4   coordinate the process for defining implementation and financing 
131.5   responsibilities of the local government core public health 
131.6   functions.  The commissioner of health shall submit 
131.7   recommendations and an initial and final report on local 
131.8   government core public health functions according to the 
131.9   timeline established in subdivision 5. 
131.10     Sec. 37.  Minnesota Statutes 2000, section 62Q.49, 
131.11  subdivision 2, is amended to read: 
131.12     Subd. 2.  [DISCLOSURE REQUIRED.] (a) All health plans 
131.13  included in subdivision 1 must clearly specify how the cost of 
131.14  health care used to calculate any copayments, coinsurance, or 
131.15  lifetime benefits will be affected by the arrangements described 
131.16  in subdivision 1. 
131.17     (b) Any summary or other marketing material used in 
131.18  connection with marketing of a health plan that is subject to 
131.19  this section must prominently disclose and clearly explain the 
131.20  provisions required under paragraph (a), if the summary or other 
131.21  marketing material refers to copayments, coinsurance, or maximum 
131.22  lifetime benefits. 
131.23     (c) A health plan that is subject to paragraph (a) must not 
131.24  be used in this state if the commissioner of commerce ~~or health,~~ 
131.25  ~~as appropriate,~~ has determined that it does not comply with this 
131.26  section. 
131.27     Sec. 38.  Minnesota Statutes 2000, section 62Q.51, 
131.28  subdivision 3, is amended to read: 
131.29     Subd. 3.  [RATE APPROVAL.] The premium rates and cost 
131.30  sharing requirements for each option must be submitted to the 
131.31  commissioner ~~of health or the commissioner~~ of commerce as 
131.32  required by law.  A health plan that includes lower enrollee 
131.33  cost sharing for services provided by network providers than for 
131.34  services provided by out-of-network providers, or lower enrollee 
131.35  cost sharing for services provided with prior authorization or 
131.36  second opinion than for services provided without prior 
132.1   authorization or second opinion, qualifies as a point-of-service 
132.2   option. 
132.3      Sec. 39.  Minnesota Statutes 2000, section 62Q.525, 
132.4   subdivision 3, is amended to read: 
132.5      Subd. 3.  [REQUIRED COVERAGE.] (a) Every type of coverage 
132.6   included in subdivision 1 that provides coverage for drugs may 
132.7   not exclude coverage of a drug for the treatment of cancer on 
132.8   the ground that the drug has not been approved by the federal 
132.9   Food and Drug Administration for the treatment of cancer if the 
132.10  drug is recognized for treatment of cancer in one of the 
132.11  standard reference compendia or in one article in the medical 
132.12  literature, as defined in subdivision 2.  
132.13     (b) Coverage of a drug required by this subdivision 
132.14  includes coverage of medically necessary services directly 
132.15  related to and required for appropriate administration of the 
132.16  drug.  
132.17     (c) Coverage required by this subdivision does not include 
132.18  coverage of a drug not listed on the formulary of the coverage 
132.19  included in subdivision 1. 
132.20     (d) Coverage of a drug required under this subdivision must 
132.21  not be subject to any copayment, coinsurance, deductible, or 
132.22  other enrollee cost-sharing greater than the coverage included 
132.23  in subdivision 1 applies to other drugs. 
132.24     (e) The commissioner of commerce ~~or health, as appropriate,~~ 
132.25  may direct a person that issues coverage included in subdivision 
132.26  1 to make payments required by this section.  
132.27     Sec. 40.  Minnesota Statutes 2000, section 62Q.68, 
132.28  subdivision 1, is amended to read: 
132.29     Subdivision 1.  [APPLICATION.] For purposes of sections 
132.30  62Q.68 to 62Q.72, the terms defined in this section have the 
132.31  meanings given them.  For purposes of sections 62Q.69 and 
132.32  62Q.70, the term "health plan company" does not, except with 
132.33  respect to managed care plans, as defined in section 62U.01, 
132.34  include an insurance company licensed under chapter 60A to 
132.35  offer, sell, or issue a policy of accident and sickness 
132.36  insurance as defined in section 62A.01 or a nonprofit health 
133.1   service plan corporation regulated under chapter 62C that only 
133.2   provides dental coverage or vision coverage. 
133.3      Sec. 41.  Minnesota Statutes 2000, section 62Q.69, 
133.4   subdivision 2, is amended to read: 
133.5      Subd. 2.  [PROCEDURES FOR FILING A COMPLAINT.] (a) A 
133.6   complainant may submit a complaint to a health plan company 
133.7   either by telephone or in writing.  If a complaint is submitted 
133.8   orally and the resolution of the complaint, as determined by the 
133.9   complainant, is partially or wholly adverse to the complainant, 
133.10  or the oral complaint is not resolved to the satisfaction of the 
133.11  complainant, by the health plan company within ten days of 
133.12  receiving the complaint, the health plan company must inform the 
133.13  complainant that the complaint may be submitted in writing.  The 
133.14  health plan company must also offer to provide the complainant 
133.15  with any assistance needed to submit a written complaint, 
133.16  including an offer to complete the complaint form for a 
133.17  complaint that was previously submitted orally and promptly mail 
133.18  the completed form to the complainant for the complainant's 
133.19  signature.  At the complainant's request, the health plan 
133.20  company must provide the assistance requested by the 
133.21  complainant.  The complaint form must include the following 
133.22  information: 
133.23     (1) the telephone number of the office of health care 
133.24  consumer assistance, advocacy, and information, and the health 
133.25  plan company member services or other departments or persons 
133.26  equipped to advise complainants on complaint resolution; 
133.27     (2) the address to which the form must be sent; 
133.28     (3) a description of the health plan company's internal 
133.29  complaint procedure and the applicable time limits; and 
133.30     (4) the toll-free telephone number of ~~either~~ the 
133.31  commissioner of ~~health or~~ commerce and notification that the 
133.32  complainant has the right to submit the complaint at any time to 
133.33  the ~~appropriate~~ commissioner for investigation. 
133.34     (b) Upon receipt of a written complaint, the health plan 
133.35  company must notify the complainant within ten business days 
133.36  that the complaint was received, unless the complaint is 
134.1   resolved to the satisfaction of the complainant within the ten 
134.2   business days. 
134.3      (c) Each health plan company must provide, in the member 
134.4   handbook, subscriber contract, or certification of coverage, a 
134.5   clear and concise description of how to submit a complaint and a 
134.6   statement that, upon request, assistance in submitting a written 
134.7   complaint is available from the health plan company. 
134.8      Sec. 42.  Minnesota Statutes 2000, section 62Q.69, 
134.9   subdivision 3, is amended to read: 
134.10     Subd. 3.  [NOTIFICATION OF COMPLAINT DECISIONS.] (a) The 
134.11  health plan company must notify the complainant in writing of 
134.12  its decision and the reasons for it as soon as practical but in 
134.13  no case later than 30 days after receipt of a written complaint. 
134.14  If the health plan company cannot make a decision within 30 days 
134.15  due to circumstances outside the control of the health plan 
134.16  company, the health plan company may take up to 14 additional 
134.17  days to notify the complainant of its decision.  If the health 
134.18  plan company takes any additional days beyond the initial 30-day 
134.19  period to make its decision, it must inform the complainant, in 
134.20  advance, of the extension and the reasons for the extension.  
134.21     (b) If the decision is partially or wholly adverse to the 
134.22  complainant, the notification must inform the complainant of the 
134.23  right to appeal the decision to the health plan company's 
134.24  internal appeal process described in section 62Q.70 and the 
134.25  procedure for initiating an appeal.  
134.26     (c) The notification must also inform the complainant of 
134.27  the right to submit the complaint at any time to ~~either~~ the 
134.28  commissioner of ~~health or~~ commerce for investigation and the 
134.29  toll-free telephone number of the ~~appropriate~~ commissioner. 
134.30     Sec. 43.  Minnesota Statutes 2000, section 62Q.71, is 
134.31  amended to read: 
134.32     62Q.71 [NOTICE TO ENROLLEES.] 
134.33     Each health plan company shall provide to enrollees a clear 
134.34  and concise description of its complaint resolution procedure, 
134.35  if applicable under section 62Q.68, subdivision 1, and the 
134.36  procedure used for utilization review as defined under chapter 
135.1   62M as part of the member handbook, subscriber contract, or 
135.2   certificate of coverage.  If the health plan company does not 
135.3   issue a member handbook, the health plan company may provide the 
135.4   description in another written document.  The description must 
135.5   specifically inform enrollees:  
135.6      (1) how to submit a complaint to the health plan company; 
135.7      (2) if the health plan includes utilization review 
135.8   requirements, how to notify the utilization review organization 
135.9   in a timely manner and how to obtain certification for health 
135.10  care services; 
135.11     (3) how to request an appeal either through the procedures 
135.12  described in sections 62Q.69 and 62Q.70 or through the 
135.13  procedures described in chapter 62M; 
135.14     (4) of the right to file a complaint with ~~either~~ the 
135.15  commissioner of ~~health or~~ commerce at any time during the 
135.16  complaint and appeal process; 
135.17     (5) of the toll-free telephone number of the ~~appropriate~~ 
135.18  commissioner; and 
135.19     (6) ~~of the telephone number of the office of consumer~~ 
135.20  ~~assistance, advocacy, and information; and~~ 
135.21     ~~(7)~~ of the right to obtain an external review under section 
135.22  62Q.73 and a description of when and how that right may be 
135.23  exercised. 
135.24     Sec. 44.  Minnesota Statutes 2000, section 62Q.72, is 
135.25  amended to read: 
135.26     62Q.72 [RECORDKEEPING; REPORTING.] 
135.27     Subdivision 1.  [RECORDKEEPING.] Each health plan company 
135.28  shall maintain records of all enrollee complaints and their 
135.29  resolutions.  These records shall be retained for five years and 
135.30  shall be made available to the ~~appropriate~~ commissioner upon 
135.31  request.  An insurance company licensed under chapter 60A may 
135.32  instead comply with section 72A.20, subdivision 30, except with 
135.33  respect to managed care plans, as defined in section 62U.01. 
135.34     Subd. 2.  [REPORTING.] Each health plan company shall 
135.35  submit to the ~~appropriate~~ commissioner, as part of the company's 
135.36  annual filing, data on the number and type of complaints that 
136.1   are not resolved within 30 days, or, except with respect to 
136.2   managed care plans, as defined in section 62U.01, 30 business 
136.3   days as provided under section 72A.201, subdivision 4, clause 
136.4   (3), for insurance companies licensed under chapter 60A.  The 
136.5   commissioner shall also make this information available to the 
136.6   public upon request. 
136.7      Sec. 45.  Minnesota Statutes 2000, section 62Q.73, 
136.8   subdivision 3, is amended to read: 
136.9      Subd. 3.  [RIGHT TO EXTERNAL REVIEW.] (a) Any enrollee or 
136.10  anyone acting on behalf of an enrollee who has received an 
136.11  adverse determination may submit a written request for an 
136.12  external review of the adverse determination, if applicable 
136.13  under section 62Q.68, subdivision 1, or 62M.06, to the 
136.14  ~~commissioner of health if the request involves a health plan~~ 
136.15  ~~company regulated by that commissioner or to the~~ commissioner of 
136.16  commerce ~~if the request involves a health plan company regulated~~ 
136.17  ~~by that commissioner~~.  The written request must be accompanied 
136.18  by a filing fee of $25.  The fee may be waived by the 
136.19  commissioner of ~~health or~~ commerce in cases of financial 
136.20  hardship. 
136.21     (b) Nothing in this section requires the commissioner of 
136.22  ~~health or~~ commerce to independently investigate an adverse 
136.23  determination referred for independent external review. 
136.24     (c) If an enrollee requests an external review, the health 
136.25  plan company must participate in the external review.  The cost 
136.26  of the external review in excess of the filing fee described in 
136.27  paragraph (a) shall be borne by the health plan company.  
136.28     Sec. 46.  Minnesota Statutes 2000, section 62Q.73, 
136.29  subdivision 4, is amended to read: 
136.30     Subd. 4.  [CONTRACT.] Pursuant to a request for proposal, 
136.31  the commissioner of administration, in consultation with 
136.32  the ~~commissioners of health and~~ commissioner of commerce, shall 
136.33  contract with an organization or business entity to provide 
136.34  independent external reviews of all adverse determinations 
136.35  submitted for external review.  The contract shall ensure that 
136.36  the fees for services rendered in connection with the reviews be 
137.1   reasonable. 
137.2      Sec. 47.  Minnesota Statutes 2000, section 62Q.73, 
137.3   subdivision 5, is amended to read: 
137.4      Subd. 5.  [CRITERIA.] (a) The request for proposal must 
137.5   require that the entity demonstrate: 
137.6      (1) no conflicts of interest in that it is not owned, a 
137.7   subsidiary of, or affiliated with a health plan company or 
137.8   utilization review organization; 
137.9      (2) an expertise in dispute resolution; 
137.10     (3) an expertise in health-related law; 
137.11     (4) an ability to conduct reviews using a variety of 
137.12  alternative dispute resolution procedures depending upon the 
137.13  nature of the dispute; 
137.14     (5) an ability to provide data to the ~~commissioners of~~ 
137.15  ~~health and~~ commissioner of commerce on reviews conducted; and 
137.16     (6) an ability to ensure confidentiality of medical records 
137.17  and other enrollee information. 
137.18     (b) The commissioner of administration shall take into 
137.19  consideration, in awarding the contract according to subdivision 
137.20  4, any national accreditation standards that pertain to an 
137.21  external review entity. 
137.22     Sec. 48.  Minnesota Statutes 2000, section 62Q.73, 
137.23  subdivision 6, is amended to read: 
137.24     Subd. 6.  [PROCESS.] (a) Upon receiving a request for an 
137.25  external review, the external review entity must provide 
137.26  immediate notice of the review to the enrollee and to the health 
137.27  plan company.  Within ten business days of receiving notice of 
137.28  the review, the health plan company and the enrollee must 
137.29  provide the external review entity with any information that 
137.30  they wish to be considered.  Each party shall be provided an 
137.31  opportunity to present its version of the facts and arguments.  
137.32  An enrollee may be assisted or represented by a person of the 
137.33  enrollee's choice. 
137.34     (b) As part of the external review process, any aspect of 
137.35  an external review involving a medical determination must be 
137.36  performed by a health care professional with expertise in the 
138.1   medical issue being reviewed. 
138.2      (c) An external review shall be made as soon as practical 
138.3   but in no case later than 40 days after receiving the request 
138.4   for an external review and must promptly send written notice of 
138.5   the decision and the reasons for it to the enrollee, the health 
138.6   plan company, and the commissioner ~~who is responsible for~~ 
138.7   ~~regulating the health plan company~~. 
138.8      Sec. 49.  Minnesota Statutes 2000, section 62R.04, 
138.9   subdivision 5, is amended to read: 
138.10     Subd. 5.  [COMMISSIONER.] Unless otherwise specified, 
138.11  "commissioner" means the commissioner ~~of health for a health~~ 
138.12  ~~care network cooperative licensed under chapter 62D or 62N and~~ 
138.13  ~~the commissioner~~ of commerce ~~for a health care network~~ 
138.14  ~~cooperative licensed under chapter 62C~~. 
138.15     Sec. 50.  Minnesota Statutes 2000, section 62R.06, 
138.16  subdivision 1, is amended to read: 
138.17     Subdivision 1.  [PROVIDER CONTRACTS.] A health provider 
138.18  cooperative and its licensed members may execute marketing and 
138.19  service contracts requiring the provider members to provide some 
138.20  or all of their health care services through the provider 
138.21  cooperative to the enrollees, members, subscribers, or insureds, 
138.22  of a health care network cooperative, community integrated 
138.23  service network, nonprofit health service plan, health 
138.24  maintenance organization, accident and health insurance company, 
138.25  or any other purchaser, including the state of Minnesota and its 
138.26  agencies, instruments, or units of local government.  Each 
138.27  purchasing entity is authorized to execute contracts for the 
138.28  purchase of health care services from a health provider 
138.29  cooperative in accordance with this section.  A contract between 
138.30  a provider cooperative and a purchaser may provide for payment 
138.31  by the purchaser to the health provider cooperative on a 
138.32  capitated or similar risk-sharing basis, by fee-for-service 
138.33  arrangements, or by other financial arrangements authorized 
138.34  under state law.  Each contract between a provider cooperative 
138.35  and a purchaser shall be filed by the provider network 
138.36  cooperative with the commissioner of ~~health~~ commerce and is 
139.1   subject to the provisions of section 62D.19. 
139.2      Sec. 51.  Minnesota Statutes 2000, section 62T.01, 
139.3   subdivision 4, is amended to read: 
139.4      Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
139.5   commissioner of ~~health~~ commerce. 
139.6      Sec. 52.  Minnesota Statutes 2000, section 256B.692, 
139.7   subdivision 2, is amended to read: 
139.8      Subd. 2.  [DUTIES OF THE COMMISSIONER OF ~~HEALTH~~ COMMERCE.] 
139.9   (a) Notwithstanding chapters 62D and 62N, a county that elects 
139.10  to purchase medical assistance and general assistance medical 
139.11  care in return for a fixed sum without regard to the frequency 
139.12  or extent of services furnished to any particular enrollee is 
139.13  not required to obtain a certificate of authority under chapter 
139.14  62D or 62N.  The county board of commissioners is the governing 
139.15  body of a county-based purchasing program.  In a multicounty 
139.16  arrangement, the governing body is a joint powers board 
139.17  established under section 471.59.  
139.18     (b) A county that elects to purchase medical assistance and 
139.19  general assistance medical care services under this section must 
139.20  satisfy the commissioner of ~~health~~ commerce that the 
139.21  requirements for assurance of consumer protection, provider 
139.22  protection, and fiscal solvency of chapter 62D, applicable to 
139.23  health maintenance organizations, or chapter 62N, applicable to 
139.24  community integrated service networks, will be met.  
139.25     (c) A county must also assure the commissioner of ~~health~~ 
139.26  commerce that the requirements of sections 62J.041; 62J.48; 
139.27  62J.71 to 62J.73; 62M.01 to 62M.16; all applicable provisions of 
139.28  chapter 62Q, including sections 62Q.07; 62Q.075; 62Q.1055; 
139.29  62Q.106; 62Q.12; 62Q.135; 62Q.14; 62Q.145; 62Q.19; 62Q.23, 
139.30  paragraph (c); 62Q.43; 62Q.47; 62Q.50; 62Q.52 to 62Q.56; 62Q.58; 
139.31  62Q.64; 62Q.68 to 62Q.72; and 72A.201 will be met.  
139.32     (d) All enforcement and rulemaking powers available under 
139.33  chapters 62D, 62J, 62M, 62N, and 62Q are hereby granted to the 
139.34  commissioner of ~~health~~ commerce with respect to counties that 
139.35  purchase medical assistance and general assistance medical care 
139.36  services under this section.  
140.1      (e) The commissioner, in consultation with county 
140.2   government, shall develop administrative and financial reporting 
140.3   requirements for county-based purchasing programs relating to 
140.4   sections 62D.041, 62D.042, 62D.045, 62D.08, 62N.28, 62N.29, and 
140.5   62N.31, and other sections as necessary, that are specific to 
140.6   county administrative, accounting, and reporting systems and 
140.7   consistent with other statutory requirements of counties.  
140.8      Sec. 53.  Minnesota Statutes 2000, section 256B.692, 
140.9   subdivision 7, is amended to read: 
140.10     Subd. 7.  [DISPUTE RESOLUTION.] In the event the 
140.11  commissioner rejects a proposal under subdivision 6, the county 
140.12  board may request the recommendation of a three-person mediation 
140.13  panel.  The commissioner shall resolve all disputes after taking 
140.14  into account the recommendations of the mediation panel.  The 
140.15  panel shall be composed of one designee of the president of the 
140.16  association of Minnesota counties, one designee of the 
140.17  commissioner of human services, and one designee of the 
140.18  commissioner of ~~health~~ commerce. 
140.19     Sec. 54.  [TRANSFER OF REGULATORY AUTHORITY; CERTAIN 
140.20  HEALTH-RELATED ORGANIZATIONS.] 
140.21     (a) Regulatory authority for health maintenance 
140.22  organizations operating under Minnesota Statutes, chapter 62D; 
140.23  community integrated service networks, as defined in Minnesota 
140.24  Statutes, section 62N.02, subdivision 4a; health care 
140.25  cooperatives operating under Minnesota Statutes, chapter 62R; 
140.26  and health care purchasing alliances and accountable provider 
140.27  networks operating under Minnesota Statutes, chapter 62T; is 
140.28  transferred from the commissioner of health to the commissioner 
140.29  of commerce, effective January 1, 2002. 
140.30     (b) Minnesota Statutes, section 15.039, applies to the 
140.31  transfer provided in paragraph (a). 
140.32     Sec. 55.  [REVISOR INSTRUCTION.] 
140.33     (a) The revisor of statutes shall change the term 
140.34  "commissioner of health" and similar references to "commissioner 
140.35  of commerce" and change the term "department of health" and 
140.36  similar references to "department of commerce" in Minnesota 
141.1   Statutes, chapters 62D, but not section 62D.02, subdivision 12; 
141.2   62E; and 62N. 
141.3      (b) The revisor of statutes shall recode Minnesota 
141.4   Statutes, section 62Q.095, subdivision 5, as a new subdivision 
141.5   of Minnesota Statutes, section 62Q.10. 
141.6      Sec. 56.  [STUDY AND REPORT.] 
141.7      The commissioner of health shall study and report to the 
141.8   legislature, no later than January 1, 2004, on premium cost, 
141.9   subscriber liability, and health outcomes under different types 
141.10  of health plan regulation by the state.  The commissioner shall 
141.11  use data available to the commissioner under Minnesota Statutes, 
141.12  section 62J.38, and otherwise.  The reports must be submitted to 
141.13  the legislature in compliance with Minnesota Statutes, section 
141.14  3.195. 
141.15     Sec. 57.  [REPEALER.] 
141.16     Minnesota Statutes 2000, sections 62Q.095, subdivisions 1, 
141.17  2, 3, 4, and 6; and 62Q.45, are repealed. 
141.18     Sec. 58.  [EFFECTIVE DATE.] 
141.19     Sections 1 to 57 are effective January 1, 2002.  Amendments 
141.20  involving transfer of regulatory authority to the commissioner 
141.21  of commerce are effective on that date.  Amendments affecting 
141.22  coverage are effective that date and apply to coverage issued or 
141.23  renewed on or after that date.  
141.24                             ARTICLE 7 
141.25                    MINIMUM BENEFITS CONFORMITY 
141.26     Section 1.  Minnesota Statutes 2000, section 62A.041, 
141.27  subdivision 1, is amended to read: 
141.28     Subdivision 1.  [DISCRIMINATION PROHIBITED AGAINST 
141.29  UNMARRIED WOMEN.] Each group policy of accident and health 
141.30  insurance and each group health ~~maintenance contract~~ plan shall 
141.31  provide the same coverage for maternity benefits to unmarried 
141.32  women and minor female dependents that it provides to married 
141.33  women including the wives of employees choosing dependent family 
141.34  coverage.  If an unmarried insured or an unmarried enrollee is a 
141.35  parent of a dependent child, each group policy and each group 
141.36  ~~contract~~ health plan shall provide the same coverage for that 
142.1   child as that provided for the child of a married employee 
142.2   choosing dependent family coverage if the insured or the 
142.3   enrollee elects dependent family coverage. 
142.4      Each individual policy of accident and health insurance and 
142.5   each individual health ~~maintenance contract~~ plan shall provide 
142.6   the same coverage for maternity benefits to unmarried women and 
142.7   minor female dependents as that provided for married women.  If 
142.8   an unmarried insured or an unmarried enrollee is a parent of a 
142.9   dependent child, each individual policy and each individual 
142.10  ~~contract~~ health plan shall also provide the same coverage for 
142.11  that child as that provided for the child of a married insured 
142.12  or a married enrollee choosing dependent family coverage if the 
142.13  insured or the enrollee elects dependent family coverage. 
142.14     Sec. 2.  Minnesota Statutes 2000, section 62A.041, 
142.15  subdivision 2, is amended to read: 
142.16     Subd. 2.  [LIMITATION ON COVERAGE PROHIBITED.] Each group 
142.17  policy of accident and health insurance, except for policies 
142.18  which only provide coverage for specified diseases, or each 
142.19  group ~~subscriber contract of accident and health insurance or~~ 
142.20  ~~health maintenance contract, issued or renewed after August 1,~~ 
142.21  ~~1987,~~ health plan shall include maternity benefits in the same 
142.22  manner as any other illness covered under the policy or ~~contract~~ 
142.23  health plan.  
142.24     Sec. 3.  Minnesota Statutes 2000, section 62A.042, is 
142.25  amended to read: 
142.26     62A.042 [FAMILY COVERAGE; COVERAGE OF NEWBORN INFANTS AND 
142.27  CLEFT LIP AND CLEFT PALATE.] 
142.28     Subdivision 1.  [INDIVIDUAL FAMILY POLICIES.] (a) No policy 
142.29  of individual accident and sickness insurance which provides for 
142.30  insurance for more than one person under section 62A.03, 
142.31  subdivision 1, clause (3), and no individual health ~~maintenance~~ 
142.32  ~~contract~~ plan which provides for coverage for more than one 
142.33  person ~~under chapter 62D~~, shall be renewed to insure or cover 
142.34  any person in this state or be delivered or issued for delivery 
142.35  to any person in this state unless the policy or ~~contract~~ health 
142.36  plan includes as insured or covered members of the family any 
143.1   newborn infants immediately from the moment of birth and 
143.2   thereafter which ~~insurance or contract~~ policy or health plan 
143.3   shall provide coverage for illness, injury, congenital 
143.4   malformation, or premature birth.  For purposes of this 
143.5   paragraph, "newborn infants" includes grandchildren who are 
143.6   financially dependent upon a covered grandparent and who reside 
143.7   with that covered grandparent continuously from birth.  No 
143.8   policy or ~~contract~~ health plan covered by this section may 
143.9   require notification to a health carrier as a condition for this 
143.10  dependent coverage.  However, if the policy or ~~contract~~ health 
143.11  plan mandates an additional premium for each dependent, the 
143.12  health carrier shall be entitled to all premiums that would have 
143.13  been collected had the health carrier been aware of the 
143.14  additional dependent.  The health carrier may withhold payment 
143.15  of any health benefits for the new dependent until it has been 
143.16  compensated with the applicable premium which would have been 
143.17  owed if the health carrier had been informed of the additional 
143.18  dependent immediately. 
143.19     (b) The coverage under paragraph (a) includes benefits for 
143.20  inpatient or outpatient expenses arising from medical and dental 
143.21  treatment up to age 18, including orthodontic and oral surgery 
143.22  treatment, involved in the management of birth defects known as 
143.23  cleft lip and cleft palate.  If orthodontic services are 
143.24  eligible for coverage under a dental insurance plan and another 
143.25  policy or ~~contract~~ health plan, the dental plan shall be primary 
143.26  and the other policy or ~~contract~~ health plan shall be secondary 
143.27  in regard to the coverage required under paragraph (a).  Payment 
143.28  for dental or orthodontic treatment not related to the 
143.29  management of the congenital condition of cleft lip and cleft 
143.30  palate shall not be covered under this provision.  
143.31     Subd. 2.  [GROUP POLICIES.] (a) No group accident and 
143.32  sickness insurance policy and no group health ~~maintenance~~ 
143.33  ~~contract~~ plan which ~~provide~~ provides for coverage of family 
143.34  members or other dependents of an employee or other member of 
143.35  the covered group shall be renewed to cover members of a group 
143.36  located in this state or delivered or issued for delivery to any 
144.1   person in this state unless the policy or ~~contract~~ health plan 
144.2   includes as insured or covered family members or dependents any 
144.3   newborn infants immediately from the moment of birth and 
144.4   thereafter which ~~insurance or contract~~ policy or health plan 
144.5   shall provide coverage for illness, injury, congenital 
144.6   malformation, or premature birth.  For purposes of this 
144.7   paragraph, "newborn infants" includes grandchildren who are 
144.8   financially dependent upon a covered grandparent and who reside 
144.9   with that covered grandparent continuously from birth.  No 
144.10  policy or ~~contract~~ health plan covered by this section may 
144.11  require notification to a health carrier as a condition for this 
144.12  dependent coverage.  However, if the policy or ~~contract~~ health 
144.13  plan mandates an additional premium for each dependent, the 
144.14  health carrier shall be entitled to all premiums that would have 
144.15  been collected had the health carrier been aware of the 
144.16  additional dependent.  The health carrier may reduce the health 
144.17  benefits owed to the insured, certificate holder, member, or 
144.18  subscriber by the amount of past due premiums applicable to the 
144.19  additional dependent. 
144.20     (b) The coverage under paragraph (a) includes benefits for 
144.21  inpatient or outpatient expenses arising from medical and dental 
144.22  treatment up to age 18, including orthodontic and oral surgery 
144.23  treatment, involved in the management of birth defects known as 
144.24  cleft lip and cleft palate.  If orthodontic services are 
144.25  eligible for coverage under a dental insurance plan and another 
144.26  policy or ~~contract~~ health plan, the dental plan shall be primary 
144.27  and the other policy or ~~contract~~ health plan shall be secondary 
144.28  in regard to the coverage required under paragraph (a).  Payment 
144.29  for dental or orthodontic treatment not related to the 
144.30  management of the congenital condition of cleft lip and cleft 
144.31  palate shall not be covered under this provision. 
144.32     Sec. 4.  Minnesota Statutes 2000, section 62A.043, 
144.33  subdivision 1, is amended to read: 
144.34     Subdivision 1.  The provisions of this section ~~shall~~ apply 
144.35  to all individual or group policies or ~~subscriber contracts~~ 
144.36  health plans providing payment for care in this state~~, which~~ 
145.1   ~~policies or contracts are issued or renewed after August 1, 1976~~ 
145.2   ~~by an accident and health insurance company regulated under this~~ 
145.3   ~~chapter, or a nonprofit health service plan corporation~~ 
145.4   ~~regulated under chapter 62C~~. 
145.5      Sec. 5.  Minnesota Statutes 2000, section 62A.14, is 
145.6   amended to read: 
145.7      62A.14 [HANDICAPPED CHILDREN.] 
145.8      Subdivision 1.  [INDIVIDUAL FAMILY POLICIES.] An individual 
145.9   hospital or medical expense insurance policy delivered or issued 
145.10  for delivery in this state more than 120 days after May 16, 
145.11  1969, or an individual ~~health maintenance contract~~ health plan 
145.12  delivered or issued for delivery in this state after August 1, 
145.13  1984, which provides that coverage of a dependent child shall 
145.14  terminate upon attainment of the limiting age for dependent 
145.15  children specified in the policy or ~~contract~~ health plan shall 
145.16  also provide in substance that attainment of such limiting age 
145.17  shall not operate to terminate the coverage of such child while 
145.18  the child is and continues to be both (a) incapable of 
145.19  self-sustaining employment by reason of mental retardation, 
145.20  mental illness or disorder, or physical handicap and (b) chiefly 
145.21  dependent upon the policyholder for support and maintenance, 
145.22  provided proof of such incapacity and dependency is furnished to 
145.23  the ~~insurer or~~ health ~~maintenance organization~~ carrier by the 
145.24  policyholder or enrollee within 31 days of the child's 
145.25  attainment of the limiting age and subsequently as may be 
145.26  required by the ~~insurer or organization~~ health carrier but not 
145.27  more frequently than annually after the two-year period 
145.28  following the child's attainment of the limiting age.  
145.29     Subd. 2.  [GROUP POLICIES.] A group hospital or medical 
145.30  expense insurance policy delivered or issued for delivery in 
145.31  this state more than 120 days after May 16, 1969, or a group 
145.32  health ~~maintenance contract~~ plan delivered or issued for 
145.33  delivery in this state after August 1, 1984, which provides that 
145.34  coverage of a dependent child of an employee or other member of 
145.35  the covered group shall terminate upon attainment of the 
145.36  limiting age for dependent children specified in the policy 
146.1   or ~~contract~~ health plan shall also provide in substance that 
146.2   attainment of such limiting age shall not operate to terminate 
146.3   the coverage of such child while the child is and continues to 
146.4   be both (a) incapable of self-sustaining employment by reason of 
146.5   mental retardation, mental illness or disorder, or physical 
146.6   handicap and (b) chiefly dependent upon the employee or member 
146.7   for support and maintenance, provided proof of such incapacity 
146.8   and dependency is furnished to the ~~insurer or organization~~ 
146.9   health carrier by the employee or member within 31 days of the 
146.10  child's attainment of the limiting age and subsequently as may 
146.11  be required by the ~~insurer or organization~~ health carrier but 
146.12  not more frequently than annually after the two-year period 
146.13  following the child's attainment of the limiting age. 
146.14     Sec. 6.  Minnesota Statutes 2000, section 62A.149, 
146.15  subdivision 1, is amended to read: 
146.16     Subdivision 1.  With the exception of managed care plans as 
146.17  defined in section 62U.01, the provisions of this section apply 
146.18  to all group policies of accident and health insurance and group 
146.19  subscriber contracts offered by nonprofit health service plan 
146.20  corporations regulated under chapter 62C, and to a plan or 
146.21  policy that is individually underwritten or provided for a 
146.22  specific individual and family members as a nongroup policy 
146.23  unless the individual elects in writing to refuse benefits under 
146.24  this subdivision in exchange for an appropriate reduction in 
146.25  premiums or subscriber charges under the policy or plan, when 
146.26  the policies or subscriber contracts are issued or delivered in 
146.27  Minnesota or provide benefits to Minnesota residents enrolled 
146.28  thereunder. 
146.29     This section does not apply to policies designed primarily 
146.30  to provide coverage payable on a per diem, fixed indemnity or 
146.31  nonexpense incurred basis or policies that provide accident only 
146.32  coverage.  
146.33     Every insurance policy or subscriber contract included 
146.34  within the provisions of this subdivision, upon issuance or 
146.35  renewal, shall provide for payment of benefits for the treatment 
146.36  of alcoholism, chemical dependency or drug addiction to any 
147.1   Minnesota resident entitled to coverage thereunder on the same 
147.2   basis as coverage for other benefits when treatment is rendered 
147.3   in 
147.4      (1) a licensed hospital, 
147.5      (2) a residential treatment program as licensed by the 
147.6   state of Minnesota pursuant to diagnosis or recommendation by a 
147.7   doctor of medicine, 
147.8      (3) a nonresidential treatment program approved or licensed 
147.9   by the state of Minnesota. 
147.10     Sec. 7.  Minnesota Statutes 2000, section 62A.15, 
147.11  subdivision 1, is amended to read: 
147.12     Subdivision 1.  [APPLICABILITY.] The provisions of this 
147.13  section apply to all group policies or ~~subscriber contracts~~ 
147.14  individual or group health plans providing payment for care in 
147.15  this state~~, which are issued by accident and health insurance~~ 
147.16  ~~companies regulated under this chapter and nonprofit health~~ 
147.17  ~~service plan corporations regulated under chapter 62C~~. 
147.18     Sec. 8.  Minnesota Statutes 2000, section 62A.152, 
147.19  subdivision 1, is amended to read: 
147.20     Subdivision 1.  [SCOPE.] With the exception of managed care 
147.21  plans as defined in section 62U.01, the provisions of this 
147.22  section apply (a) to all group policies or subscriber contracts 
147.23  which provide benefits for at least 100 certificate holders who 
147.24  are residents of this state or groups of which more than 90 
147.25  percent are residents of this state and are issued, delivered, 
147.26  or renewed by accident and health insurance companies regulated 
147.27  under this chapter, or by nonprofit health service plan 
147.28  corporations regulated under chapter 62C and (b), unless waived 
147.29  by the commissioner to the extent applicable to holders who are 
147.30  both nonresidents and employed outside this state, to all group 
147.31  policies or subscriber contracts which are issued, delivered, or 
147.32  renewed within this state by accident and health insurance 
147.33  companies regulated under this chapter, or by nonprofit health 
147.34  service plan corporations regulated under chapter 62C. 
147.35     Sec. 9.  Minnesota Statutes 2000, section 62A.153, is 
147.36  amended to read: 
148.1      62A.153 [OUTPATIENT MEDICAL AND SURGICAL SERVICES.] 
148.2      No policy or plan of health, medical, hospitalization, or 
148.3   accident and sickness insurance regulated under this chapter, or 
148.4   ~~subscriber contract provided by a nonprofit health service plan~~ 
148.5   ~~corporation regulated under chapter 62C~~ health plan that 
148.6   provides coverage for services in a hospital shall be issued, 
148.7   renewed, continued, delivered, issued for delivery or executed 
148.8   in this state, or approved for issuance or renewal in this state 
148.9   ~~by the commissioner of commerce~~ unless the policy, plan, or 
148.10  ~~contract~~ health plan specifically provides coverage for a health 
148.11  care treatment or surgery on an outpatient basis at a facility 
148.12  equipped to perform these services, whether or not the facility 
148.13  is part of a hospital.  Coverage shall be on the same basis as 
148.14  coverage provided for the same health care treatment or service 
148.15  in a hospital. 
148.16     Sec. 10.  Minnesota Statutes 2000, section 62A.20, is 
148.17  amended to read: 
148.18     62A.20 [CONTINUATION COVERAGE OF CURRENT SPOUSE AND 
148.19  CHILDREN.] 
148.20     Subdivision 1.  [REQUIREMENT.] Every policy of accident and 
148.21  health insurance providing coverage of hospital or medical 
148.22  expense on either an expense-incurred basis or other than an 
148.23  expense-incurred basis, or health plan, which in addition to 
148.24  covering the insured also provides coverage to the spouse and 
148.25  dependent children of the insured shall contain: 
148.26     (1) a provision which permits the spouse and dependent 
148.27  children to elect to continue coverage when the insured becomes 
148.28  enrolled for benefits under Title XVIII of the Social Security 
148.29  Act (Medicare); and 
148.30     (2) a provision which permits the dependent children to 
148.31  continue coverage when they cease to be dependent children under 
148.32  the generally applicable requirement of the plan. 
148.33     Subd. 2.  [CONTINUATION PRIVILEGE.] The coverage described 
148.34  in subdivision 1 may be continued until the earlier of the 
148.35  following dates: 
148.36     (1) the date coverage would otherwise terminate under the 
149.1   policy or health plan; 
149.2      (2) 36 months after continuation by the spouse or dependent 
149.3   was elected; or 
149.4      (3) the spouse or dependent children become covered under 
149.5   another group health plan. 
149.6      If coverage is provided under a group policy or group 
149.7   health plan, any required premium contributions for the coverage 
149.8   shall be paid by the insured on a monthly basis to the group 
149.9   policyholder for remittance to the ~~insurer~~ health carrier.  In 
149.10  no event shall the amount of premium charged exceed 102 percent 
149.11  of the cost to the plan for such period of coverage for other 
149.12  similarly situated spouse and dependent children to whom 
149.13  subdivision 1 is not applicable, without regard to whether such 
149.14  cost is paid by the employer or employee. 
149.15     Sec. 11.  Minnesota Statutes 2000, section 62A.21, is 
149.16  amended to read: 
149.17     62A.21 [CONTINUATION AND CONVERSION PRIVILEGES FOR INSURED 
149.18  FORMER SPOUSES AND CHILDREN.] 
149.19     Subdivision 1.  No policy of accident and health insurance 
149.20  providing coverage of hospital or medical expense on either an 
149.21  expense incurred basis or other than an expense incurred basis, 
149.22  or health plan, which in addition to covering the insured also 
149.23  provides coverage to the spouse of the insured, shall contain a 
149.24  provision for termination of coverage for a spouse covered under 
149.25  the policy or health plan solely as a result of a break in the 
149.26  marital relationship. 
149.27     Subd. 2a.  [CONTINUATION PRIVILEGE.] Every policy or health 
149.28  plan described in subdivision 1 shall contain a provision which 
149.29  permits continuation of coverage under the policy or health plan 
149.30  for the insured's former spouse and dependent children upon 
149.31  entry of a valid decree of dissolution of marriage.  The 
149.32  coverage shall be continued until the earlier of the following 
149.33  dates: 
149.34     (a) the date the insured's former spouse becomes covered 
149.35  under any other group health plan; or 
149.36     (b) the date coverage would otherwise terminate under the 
150.1   policy or health plan. 
150.2      If the coverage is provided under a group policy or group 
150.3   health plan, any required premium contributions for the coverage 
150.4   shall be paid by the insured on a monthly basis to the group 
150.5   policyholder for remittance to the ~~insurer~~ health carrier.  The 
150.6   policy or health plan must require the group policyholder to, 
150.7   upon request, provide the insured with written verification from 
150.8   the ~~insurer~~ health carrier of the cost of this coverage promptly 
150.9   at the time of eligibility for this coverage and at any time 
150.10  during the continuation period.  In no event shall the amount of 
150.11  premium charged exceed 102 percent of the cost to the plan for 
150.12  such period of coverage for other similarly situated spouses and 
150.13  dependent children with respect to whom the marital relationship 
150.14  has not dissolved, without regard to whether such cost is paid 
150.15  by the employer or employee. 
150.16     Subd. 2b.  [CONVERSION PRIVILEGE.] Every policy or health 
150.17  plan described in subdivision 1 shall contain a provision 
150.18  allowing a former spouse and dependent children of an insured, 
150.19  without providing evidence of insurability, to obtain from 
150.20  the ~~insurer~~ health carrier at the expiration of any continuation 
150.21  of coverage required under subdivision 2a or sections 62A.146 
150.22  and 62A.20, conversion coverage providing at least the minimum 
150.23  benefits of a qualified plan as prescribed by section 62E.06 and 
150.24  the option of a number three qualified plan, a number two 
150.25  qualified plan, a number one qualified plan as provided by 
150.26  section 62E.06, subdivisions 1 to 3, provided application is 
150.27  made to the ~~insurer~~ health carrier within 30 days following 
150.28  notice of the expiration of the continued coverage and upon 
150.29  payment of the appropriate premium.  The individual policy or 
150.30  individual health plan shall be renewable at the option of the 
150.31  covered person as long as the covered person is not covered 
150.32  under another qualified plan as defined in section 62E.02, 
150.33  subdivision 4.  Any revisions in the table of rate for the 
150.34  individual policy or individual health plan shall apply to the 
150.35  covered person's original age at entry and shall apply equally 
150.36  to all similar policies or health plans issued by the 
151.1   ~~insurer~~ health carrier. 
151.2      A policy or health plan providing reduced benefits at a 
151.3   reduced premium rate may be accepted by the covered person in 
151.4   lieu of the optional coverage otherwise required by this 
151.5   subdivision. 
151.6      ~~Subd. 3.  Subdivision 1 applies to every policy of accident~~ 
151.7   ~~and health insurance which is delivered, issued for delivery,~~ 
151.8   ~~renewed or amended on or after July 19, 1977.~~ 
151.9      ~~Subdivisions 2a and 2b apply to every policy of accident~~ 
151.10  ~~and health insurance which is delivered, issued for delivery,~~ 
151.11  ~~renewed, or amended on or after August 1, 1981.~~  
151.12     Sec. 12.  Minnesota Statutes 2000, section 62A.616, is 
151.13  amended to read: 
151.14     62A.616 [COVERAGE FOR NURSING HOME CARE FOR TERMINALLY ILL 
151.15  AND OTHER SERVICES.] 
151.16     ~~An insurer~~ A health carrier may offer a health plan that 
151.17  covers nursing home care for the terminally ill, personal care 
151.18  attendants, and hospice care.  For the purposes of this section, 
151.19  "terminally ill" means a diagnosis certified by a physician that 
151.20  a person has less than six months to live. 
151.21     Sec. 13.  Minnesota Statutes 2000, section 62A.65, 
151.22  subdivision 5, is amended to read: 
151.23     Subd. 5.  [PORTABILITY AND CONVERSION OF COVERAGE.] (a) No 
151.24  individual health plan may be offered, sold, issued, or with 
151.25  respect to children age 18 or under renewed, to a Minnesota 
151.26  resident that contains a preexisting condition limitation, 
151.27  preexisting condition exclusion, or exclusionary rider, unless 
151.28  the limitation or exclusion is permitted under this subdivision 
151.29  and under chapter 62L, provided that, except for children age 18 
151.30  or under, underwriting restrictions may be retained on 
151.31  individual contracts that are issued without evidence of 
151.32  insurability as a replacement for prior individual coverage that 
151.33  was sold before May 17, 1993.  The individual may be subjected 
151.34  to an 18-month preexisting condition limitation, unless the 
151.35  individual has maintained continuous coverage as defined in 
151.36  section 62L.02.  The individual must not be subjected to an 
152.1   exclusionary rider.  An individual who has maintained continuous 
152.2   coverage may be subjected to a one-time preexisting condition 
152.3   limitation of up to 12 months, with credit for time covered 
152.4   under qualifying coverage as defined in section 62L.02, at the 
152.5   time that the individual first is covered under an individual 
152.6   health plan by any health carrier.  Credit must be given for all 
152.7   qualifying coverage with respect to all preexisting conditions, 
152.8   regardless of whether the conditions were preexisting with 
152.9   respect to any previous qualifying coverage.  The individual 
152.10  must not be subjected to an exclusionary rider.  Thereafter, the 
152.11  individual must not be subject to any preexisting condition 
152.12  limitation, preexisting condition exclusion, or exclusionary 
152.13  rider under an individual health plan by any health carrier, 
152.14  except an unexpired portion of a limitation under prior 
152.15  coverage, so long as the individual maintains continuous 
152.16  coverage as defined in section 62L.02. 
152.17     (b) A health carrier must offer an individual health plan 
152.18  to any individual previously covered under a group health plan 
152.19  issued by that health carrier, regardless of the size of the 
152.20  group, so long as the individual maintained continuous coverage 
152.21  as defined in section 62L.02.  If the individual has available 
152.22  any continuation coverage provided under sections 62A.146; 
152.23  62A.148; 62A.17, subdivisions 1 and 2; 62A.20; or 62A.21~~;~~ 
152.24  ~~62C.142; 62D.101; or 62D.105~~, or continuation coverage provided 
152.25  under federal law, the health carrier need not offer coverage 
152.26  under this paragraph until the individual has exhausted the 
152.27  continuation coverage.  The offer must not be subject to 
152.28  underwriting, except as permitted under this paragraph.  A 
152.29  health plan issued under this paragraph must be a qualified plan 
152.30  as defined in section 62E.02 and must not contain any 
152.31  preexisting condition limitation, preexisting condition 
152.32  exclusion, or exclusionary rider, except for any unexpired 
152.33  limitation or exclusion under the previous coverage.  The 
152.34  individual health plan must cover pregnancy on the same basis as 
152.35  any other covered illness under the individual health plan.  The 
152.36  initial premium rate for the individual health plan must comply 
153.1   with subdivision 3.  The premium rate upon renewal must comply 
153.2   with subdivision 2.  In no event shall the premium rate exceed 
153.3   90 percent of the premium charged for comparable individual 
153.4   coverage by the Minnesota comprehensive health association, and 
153.5   the premium rate must be less than that amount if necessary to 
153.6   otherwise comply with this section.  An individual health plan 
153.7   offered under this paragraph to a person satisfies the health 
153.8   carrier's obligation to offer conversion coverage under section 
153.9   62E.16, with respect to that person.  Coverage issued under this 
153.10  paragraph must provide that it cannot be canceled or nonrenewed 
153.11  as a result of the health carrier's subsequent decision to leave 
153.12  the individual, small employer, or other group market.  Section 
153.13  72A.20, subdivision 28, applies to this paragraph. 
153.14     Sec. 14.  Minnesota Statutes 2000, section 62D.12, 
153.15  subdivision 1a, is amended to read: 
153.16     Subd. 1a.  [SWING-OUT PRODUCTS.] Notwithstanding 
153.17  subdivision 1, nothing in sections ~~62A.049,~~ 62A.60~~,~~ and 72A.201, 
153.18  subdivision 4a, applies to a commercial health policy issued 
153.19  under this chapter as a companion to a health maintenance 
153.20  contract. 
153.21     Sec. 15.  Minnesota Statutes 2000, section 62E.16, is 
153.22  amended to read: 
153.23     62E.16 [POLICY CONVERSION RIGHTS.] 
153.24     Every program of self-insurance, policy of group accident 
153.25  and health insurance or contract of coverage by a health 
153.26  maintenance organization written or renewed in this state, shall 
153.27  include, in addition to the provisions required by section 
153.28  62A.17, the right to convert to an individual coverage qualified 
153.29  plan without the addition of underwriting restrictions after the 
153.30  individual insured has exhausted any continuation coverage 
153.31  provided under section 62A.146; 62A.148; 62A.17, subdivisions 1 
153.32  and 2; 62A.20; or 62A.21~~; 62C.142; 62D.101; or 62D.105~~, or 
153.33  continuation coverage provided under federal law, if any 
153.34  continuation coverage is available to the individual, and then 
153.35  leaves the group regardless of the reason for leaving the group 
153.36  or if an employer member of a group ceases to remit payment so 
154.1   as to terminate coverage for its employees, or upon cancellation 
154.2   or termination of the coverage for the group except where 
154.3   uninterrupted and continuous group coverage is otherwise 
154.4   provided to the group.  If the health maintenance organization 
154.5   has canceled coverage for the group because of a loss of 
154.6   providers in a service area, the health maintenance organization 
154.7   shall arrange for other health maintenance or indemnity 
154.8   conversion options that shall be offered to enrollees without 
154.9   the addition of underwriting restrictions.  The required 
154.10  conversion contract must treat pregnancy the same as any other 
154.11  covered illness under the conversion contract.  The person may 
154.12  exercise this right to conversion within 30 days of exhausting 
154.13  any continuation coverage provided under section 62A.146; 
154.14  62A.148; 62A.17, subdivisions 1 and 2; 62A.20; or 62A.21, or 
154.15  continuation coverage provided under federal law, and then 
154.16  leaving the group or within 30 days following receipt of due 
154.17  notice of cancellation or termination of coverage of the group 
154.18  or of the employer member of the group and upon payment of 
154.19  premiums from the date of termination or cancellation.  Due 
154.20  notice of cancellation or termination of coverage for a group or 
154.21  of the employer member of the group shall be provided to each 
154.22  employee having coverage in the group by the insurer, 
154.23  self-insurer or health maintenance organization canceling or 
154.24  terminating the coverage except where reasonable evidence 
154.25  indicates that uninterrupted and continuous group coverage is 
154.26  otherwise provided to the group.  Every employer having a policy 
154.27  of group accident and health insurance, group subscriber or 
154.28  contract of coverage by a health maintenance organization shall, 
154.29  upon request, provide the insurer or health maintenance 
154.30  organization a list of the names and addresses of covered 
154.31  employees.  Plans of health coverage shall also include a 
154.32  provision which, upon the death of the individual in whose name 
154.33  the contract was issued, permits every other individual then 
154.34  covered under the contract to elect, within the period specified 
154.35  in the contract, to continue coverage under the same or a 
154.36  different contract without the addition of underwriting 
155.1   restrictions until the individual would have ceased to have been 
155.2   entitled to coverage had the individual in whose name the 
155.3   contract was issued lived.  An individual conversion contract 
155.4   issued by a health maintenance organization shall not be deemed 
155.5   to be an individual enrollment contract for the purposes of 
155.6   section 62D.10.  An individual health plan offered under section 
155.7   62A.65, subdivision 5, paragraph (b), to a person satisfies the 
155.8   health carrier's obligation to offer conversion coverage under 
155.9   this section with respect to that person. 
155.10     Sec. 16.  Minnesota Statutes 2000, section 62L.12, 
155.11  subdivision 2, is amended to read: 
155.12     Subd. 2.  [EXCEPTIONS.] (a) A health carrier may sell, 
155.13  issue, or renew individual conversion policies to eligible 
155.14  employees otherwise eligible for conversion coverage under 
155.15  section 62D.104 as a result of leaving a health maintenance 
155.16  organization's service area. 
155.17     (b) A health carrier may sell, issue, or renew individual 
155.18  conversion policies to eligible employees otherwise eligible for 
155.19  conversion coverage as a result of the expiration of any 
155.20  continuation of group coverage required under sections 62A.146, 
155.21  62A.17, and 62A.21~~, 62C.142, 62D.101, and 62D.105~~. 
155.22     (c) A health carrier may sell, issue, or renew conversion 
155.23  policies under section 62E.16 to eligible employees. 
155.24     (d) A health carrier may sell, issue, or renew individual 
155.25  continuation policies to eligible employees as required. 
155.26     (e) A health carrier may sell, issue, or renew individual 
155.27  health plans if the coverage is appropriate due to an unexpired 
155.28  preexisting condition limitation or exclusion applicable to the 
155.29  person under the employer's group health plan or due to the 
155.30  person's need for health care services not covered under the 
155.31  employer's group health plan. 
155.32     (f) A health carrier may sell, issue, or renew an 
155.33  individual health plan, if the individual has elected to buy the 
155.34  individual health plan not as part of a general plan to 
155.35  substitute individual health plans for a group health plan nor 
155.36  as a result of any violation of subdivision 3 or 4. 
156.1      (g) Nothing in this subdivision relieves a health carrier 
156.2   of any obligation to provide continuation or conversion coverage 
156.3   otherwise required under federal or state law. 
156.4      (h) Nothing in this chapter restricts the offer, sale, 
156.5   issuance, or renewal of coverage issued as a supplement to 
156.6   Medicare under sections 62A.31 to 62A.44, or policies or 
156.7   contracts that supplement Medicare issued by health maintenance 
156.8   organizations, or those contracts governed by section 1833 or 
156.9   1876 of the federal Social Security Act, United States Code, 
156.10  title 42, section 1395 et seq., as amended. 
156.11     (i) Nothing in this chapter restricts the offer, sale, 
156.12  issuance, or renewal of individual health plans necessary to 
156.13  comply with a court order. 
156.14     Sec. 17.  Minnesota Statutes 2000, section 257.34, 
156.15  subdivision 1, is amended to read: 
156.16     Subdivision 1.  [ACKNOWLEDGMENT BY PARENTS.] The mother and 
156.17  father of a child born to a mother who was not married to the 
156.18  child's father when the child was conceived nor when the child 
156.19  was born may, in a writing signed by both of them before a 
156.20  notary public, declare and acknowledge under oath that they are 
156.21  the biological parents of the child.  The declaration may 
156.22  provide that any such child born to the mother at any time 
156.23  before or up to ten months after the date of execution of the 
156.24  declaration is the biological child of the signatories.  
156.25  Execution of the declaration shall: 
156.26     (a) have the same consequences as an acknowledgment by the 
156.27  signatories of parentage of the child for the purposes of 
156.28  ~~sections~~ section 62A.041 ~~and 62C.14, subdivision 5a~~; 
156.29     (b) be conclusive evidence that the signatories are parents 
156.30  of the child for the purposes of sections 176.111, 197.75, and 
156.31  197.752; 
156.32     (c) create a presumption that the signatory is the 
156.33  biological father of the child for the purposes of sections 
156.34  257.51 to 257.74; 
156.35     (d) when timely filed with the department of health as 
156.36  provided in section 259.52, qualify as an affidavit stating the 
157.1   intention of the signatories to retain parental rights as 
157.2   provided in section 259.52 if it contains the information 
157.3   required by section 259.52 or rules promulgated thereunder; 
157.4      (e) have the same consequences as a writing declaring 
157.5   paternity of the child for the purposes of section 524.2-109; 
157.6   and 
157.7      (f) be conclusive evidence that the signatories are parents 
157.8   of the child for the purposes of chapter 573. 
157.9      Sec. 18.  [REPEALER.] 
157.10     Minnesota Statutes 2000, sections 62A.049; 62A.21, 
157.11  subdivision 3; 62C.14, subdivisions 5, 5a, 5b, and 14; 62C.142; 
157.12  62D.101; and 62D.105, are repealed. 
157.13     Sec. 19.  [EFFECTIVE DATE.] 
157.14     Sections 1 to 18 are effective January 1, 2002, and apply 
157.15  to coverage issued on or after that date. 
157.16                             ARTICLE 8
157.17                    PUBLIC SERVICE CONSOLIDATION 
157.18     Section 1.  [CONSOLIDATION OF STATE REGULATION OF 
157.19  COMMERCE.] 
157.20     In order to make state government more efficient and 
157.21  effective and to accomplish more efficient and effective 
157.22  regulation of commerce in Minnesota, all of the powers, rights, 
157.23  responsibilities, and duties that remain in the department of 
157.24  public service after reorganization order No. 181 are 
157.25  transferred to the department of commerce under Minnesota 
157.26  Statutes, section 15.039.  This transfer is governed in all 
157.27  respects by Minnesota Statutes, section 15.039.  The department 
157.28  of public service is abolished. 
157.29     Sec. 2.  Minnesota Statutes 2000, section 3C.12, 
157.30  subdivision 2, is amended to read: 
157.31     Subd. 2.  [FREE DISTRIBUTION.] The revisor shall distribute 
157.32  without charge copies of each edition of Minnesota Statutes, 
157.33  supplements to Minnesota Statutes, and Laws of Minnesota to the 
157.34  persons or bodies listed in this subdivision.  Before 
157.35  distributing the copies, the revisor shall inform these persons 
157.36  or bodies of the cost of the publication and the availability of 
158.1   statutes and session laws on the Internet, and shall ask whether 
158.2   their work requires the full number of copies authorized by this 
158.3   subdivision.  Unless a smaller number is needed, the revisor 
158.4   shall distribute:  
158.5      (a) 30 copies to the supreme court; 
158.6      (b) 30 copies to the court of appeals; 
158.7      (c) one copy to each judge of a district court; 
158.8      (d) one copy to the court administrator of each district 
158.9   court for use in each courtroom of the district court; 
158.10     (e) one copy to each judge, district attorney, clerk of 
158.11  court of the United States, and deputy clerk of each division of 
158.12  the United States district court in Minnesota; 
158.13     (f) 100 copies to the office of the attorney general; 
158.14     (g) ten copies each to the governor's office, the 
158.15  departments of agriculture, ~~commerce,~~ corrections, children, 
158.16  families, and learning, finance, health, transportation, labor 
158.17  and industry, economic security, natural resources, public 
158.18  safety, ~~public service,~~ human services, revenue, and the 
158.19  pollution control agency; 
158.20     (h) two copies each to the lieutenant governor and the 
158.21  state treasurer; 
158.22     (i) 20 copies each to the ~~department~~ departments of 
158.23  administration and commerce, state auditor, and legislative 
158.24  auditor; 
158.25     (j) one copy each to other state departments, agencies, 
158.26  boards, and commissions not specifically named in this 
158.27  subdivision; 
158.28     (k) one copy to each member of the legislature; 
158.29     (l) 150 copies for the use of the senate and 200 copies for 
158.30  the use of the house of representatives; 
158.31     (m) 50 copies to the revisor of statutes from which the 
158.32  revisor shall send the appropriate number to the Library of 
158.33  Congress for copyright and depository purposes; 
158.34     (n) four copies to the secretary of the senate; 
158.35     (o) four copies to the chief clerk of the house of 
158.36  representatives; 
159.1      (p) 100 copies to the state law library; 
159.2      (q) 100 copies to the law school of the University of 
159.3   Minnesota; 
159.4      (r) five copies each to the Minnesota historical society 
159.5   and the secretary of state; 
159.6      (s) one copy each to the public library of the largest 
159.7   municipality of each county if the library is not otherwise 
159.8   eligible to receive a free copy under this section or section 
159.9   15.18; and 
159.10     (t) one copy to each county library maintained pursuant to 
159.11  chapter 134, except in counties containing cities of the first 
159.12  class.  If a county has not established a county library 
159.13  pursuant to chapter 134, the copy shall be provided to any 
159.14  public library in the county. 
159.15     Sec. 3.  Minnesota Statutes 2000, section 13.679, is 
159.16  amended to read: 
159.17     13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 
159.18     Subdivision 1.  [TENANT.] Data collected by the ~~department~~ 
159.19  ~~of public service~~ commissioner of commerce that reveals the 
159.20  identity of a tenant who makes a complaint regarding energy 
159.21  efficiency standards for rental housing are private data on 
159.22  individuals.  
159.23     Subd. 2.  [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 
159.24  CUSTOMER.] (a) The following are private data on individuals:  
159.25  data collected by the ~~department of public service~~ commissioner 
159.26  of commerce or the public utilities commission, including the 
159.27  names or any other data that would reveal the identity of either 
159.28  an employee or customer of a telephone company or public utility 
159.29  who files a complaint or provides information regarding a 
159.30  violation or suspected violation by the telephone company or 
159.31  public utility of any federal or state law or rule; except this 
159.32  data may be released as needed to law enforcement authorities. 
159.33     (b) The following are private data on individuals:  data 
159.34  collected by the commission or the ~~department of public service~~ 
159.35  commissioner of commerce on individual public utility or 
159.36  telephone company customers or prospective customers, including 
160.1   copies of tax forms, needed to administer federal or state 
160.2   programs that provide relief from telephone company bills, 
160.3   public utility bills, or cold weather disconnection.  The 
160.4   determination of eligibility of the customers or prospective 
160.5   customers may be released to public utilities or telephone 
160.6   companies to administer the programs.  
160.7      Sec. 4.  Minnesota Statutes 2000, section 15.01, is amended 
160.8   to read: 
160.9      15.01 [DEPARTMENTS OF THE STATE.] 
160.10     The following agencies are designated as the departments of 
160.11  the state government:  the department of administration; the 
160.12  department of agriculture; the department of commerce; the 
160.13  department of corrections; the department of children, families, 
160.14  and learning; the department of economic security; the 
160.15  department of trade and economic development; the department of 
160.16  finance; the department of health; the department of human 
160.17  rights; the department of labor and industry; the department of 
160.18  military affairs; the department of natural resources; the 
160.19  department of employee relations; the department of public 
160.20  safety; ~~the department of public service;~~ the department of 
160.21  human services; the department of revenue; the department of 
160.22  transportation; the department of veterans affairs; and their 
160.23  successor departments. 
160.24     Sec. 5.  Minnesota Statutes 2000, section 15.06, 
160.25  subdivision 1, is amended to read: 
160.26     Subdivision 1.  [APPLICABILITY.] This section applies to 
160.27  the following departments or agencies:  the departments of 
160.28  administration, agriculture, commerce, corrections, economic 
160.29  security, children, families, and learning, employee relations, 
160.30  trade and economic development, finance, health, human rights, 
160.31  labor and industry, natural resources, public safety, ~~public~~ 
160.32  ~~service,~~ human services, revenue, transportation, and veterans 
160.33  affairs; the housing finance and pollution control agencies; the 
160.34  office of commissioner of iron range resources and 
160.35  rehabilitation; the bureau of mediation services; and their 
160.36  successor departments and agencies.  The heads of the foregoing 
161.1   departments or agencies are "commissioners." 
161.2      Sec. 6.  Minnesota Statutes 2000, section 15A.0815, 
161.3   subdivision 2, is amended to read: 
161.4      Subd. 2.  [GROUP I SALARY LIMITS.] The salaries for 
161.5   positions in this subdivision may not exceed 95 percent of the 
161.6   salary of the governor:  
161.7      Commissioner of administration; 
161.8      Commissioner of agriculture; 
161.9      Commissioner of children, families, and learning; 
161.10     Commissioner of commerce; 
161.11     Commissioner of corrections; 
161.12     Commissioner of economic security; 
161.13     Commissioner of employee relations; 
161.14     Commissioner of finance; 
161.15     Commissioner of health; 
161.16     Executive director, higher education services office; 
161.17     Commissioner, housing finance agency; 
161.18     Commissioner of human rights; 
161.19     Commissioner of human services; 
161.20     Executive director, state board of investment; 
161.21     Commissioner of labor and industry; 
161.22     Commissioner of natural resources; 
161.23     Director of office of strategic and long-range planning; 
161.24     Commissioner, pollution control agency; 
161.25     Commissioner of public safety; 
161.26     ~~Commissioner, department of public service;~~ 
161.27     Commissioner of revenue; 
161.28     Commissioner of trade and economic development; 
161.29     Commissioner of transportation; and 
161.30     Commissioner of veterans affairs. 
161.31     Sec. 7.  Minnesota Statutes 2000, section 16B.32, 
161.32  subdivision 2, is amended to read: 
161.33     Subd. 2.  [ENERGY CONSERVATION GOALS; EFFICIENCY PROGRAM.] 
161.34  (a) The commissioner of administration in consultation with 
161.35  the ~~department of public service~~ commissioner of commerce, in 
161.36  cooperation with one or more public utilities or comprehensive 
162.1   energy services providers, may conduct a shared-savings program 
162.2   involving energy conservation expenditures on state-owned 
162.3   buildings.  The public utility or energy services provider shall 
162.4   contract with appropriate state agencies to implement energy 
162.5   efficiency improvements in the selected buildings.  A contract 
162.6   must require the public utility or energy services provider to 
162.7   include all energy efficiency improvements in selected buildings 
162.8   that are calculated to achieve a cost payback within ten years.  
162.9   The contract must require that the public utility or energy 
162.10  services provider be repaid solely from energy cost savings and 
162.11  only to the extent of energy cost savings.  Repayments must be 
162.12  interest-free.  The goal of the program in this paragraph is to 
162.13  demonstrate that through effective energy conservation the total 
162.14  energy consumption per square foot of state-owned and wholly 
162.15  state-leased buildings could be reduced by at least 25 percent 
162.16  from consumption in the base year of 1990.  All agencies 
162.17  participating in the program must report to the commissioner of 
162.18  administration their monthly energy usage, building schedules, 
162.19  inventory of energy-consuming equipment, and other information 
162.20  as needed by the commissioner to manage and evaluate the program.
162.21     (b) The commissioner may exclude from the program of 
162.22  paragraph (a) a building in which energy conservation measures 
162.23  are carried out.  "Energy conservation measures" means measures 
162.24  that are applied to a state building that improve energy 
162.25  efficiency and have a simple return of investment in ten years 
162.26  or within the remaining period of a lease, whichever time is 
162.27  shorter, and involves energy conservation, conservation 
162.28  facilities, renewable energy sources, improvements in operations 
162.29  and maintenance efficiencies, or retrofit activities. 
162.30     (c) This subdivision expires January 1, 2001. 
162.31     Sec. 8.  Minnesota Statutes 2000, section 16B.335, 
162.32  subdivision 4, is amended to read: 
162.33     Subd. 4.  [ENERGY CONSERVATION.] A recipient to whom a 
162.34  direct appropriation is made for a capital improvement project 
162.35  shall ensure that the project complies with the applicable 
162.36  energy conservation standards contained in law, including 
163.1   sections 216C.19 to 216C.20, and rules adopted thereunder.  The 
163.2   recipient may ~~use the energy planning and intervention and~~ 
163.3   ~~energy technologies units of the department of public service to~~ 
163.4   obtain information and technical assistance from the state 
163.5   energy office in the department of commerce on energy 
163.6   conservation and alternative energy development relating to the 
163.7   planning and construction of the capital improvement project. 
163.8      Sec. 9.  Minnesota Statutes 2000, section 16B.56, 
163.9   subdivision 1, is amended to read: 
163.10     Subdivision 1.  [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 
163.11  [ESTABLISHMENT.] To conserve energy and alleviate traffic 
163.12  congestion around state offices, the commissioner shall, in 
163.13  cooperation with ~~the commissioner of public service,~~ the 
163.14  commissioner of transportation, the state energy office in the 
163.15  department of commerce, and interested nonprofit agencies, 
163.16  establish and operate an employee transportation program using 
163.17  commuter vans with a capacity of not less than seven nor more 
163.18  than 16 passengers.  Commuter vans may be used by state 
163.19  employees and others to travel between their homes and their 
163.20  work locations.  However, only state employee drivers may use 
163.21  the van for personal purposes after working hours, not including 
163.22  partisan political activity.  The commissioner shall acquire or 
163.23  lease commuter vans, or otherwise contract for the provision of 
163.24  commuter vans, and shall make the vans available for the use of 
163.25  state employees and others in accordance with standards and 
163.26  procedures adopted by the commissioner.  The commissioner shall 
163.27  promote the maximum participation of state employees and others 
163.28  in the use of the vans.  
163.29     (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 
163.30  standards and procedures under this section without regard to 
163.31  chapter 14.  The commissioner shall provide for the recovery by 
163.32  the state of vehicle acquisition, lease, operation, and 
163.33  insurance costs through efficient and convenient assignment of 
163.34  vans, and for the billing of costs and collection of fees.  A 
163.35  state employee using a van for personal use shall pay, pursuant 
163.36  to the standards and procedures adopted by the commissioner, for 
164.1   operating and routine maintenance costs incurred as a result of 
164.2   the personal use.  Fees collected under this subdivision shall 
164.3   be deposited in the accounts from which the costs of operating, 
164.4   maintaining, and leasing or amortization for the specific 
164.5   vehicle are paid.  
164.6      Sec. 10.  Minnesota Statutes 2000, section 16B.76, 
164.7   subdivision 1, is amended to read: 
164.8      Subdivision 1.  [MEMBERSHIP.] (a) The construction codes 
164.9   advisory council consists of the following members: 
164.10     (1) the commissioner of administration or the 
164.11  commissioner's designee representing the department's building 
164.12  codes and standards division; 
164.13     (2) the commissioner of health or the commissioner's 
164.14  designee representing an environmental health section of the 
164.15  department; 
164.16     (3) the commissioner of public safety or the commissioner's 
164.17  designee representing the department's state fire marshal 
164.18  division; 
164.19     (4) the commissioner of ~~public service~~ commerce or the 
164.20  commissioner's designee representing the department's ~~energy~~ 
164.21  ~~regulation and resource management division~~ state energy office; 
164.22  and 
164.23     (5) one member representing each of the following 
164.24  occupations or entities, appointed by the commissioner of 
164.25  administration: 
164.26     (i) a certified building official; 
164.27     (ii) a fire service representative; 
164.28     (iii) a licensed architect; 
164.29     (iv) a licensed engineer; 
164.30     (v) a building owners and managers representative; 
164.31     (vi) a licensed residential building contractor; 
164.32     (vii) a commercial building contractor; 
164.33     (viii) a heating and ventilation contractor; 
164.34     (ix) a plumbing contractor; 
164.35     (x) a representative of a construction and building trades 
164.36  union; and 
165.1      (xi) a local unit of government representative. 
165.2      (b) For members who are not state officials or employees, 
165.3   terms, compensation, removal, and the filling of vacancies are 
165.4   governed by section 15.059.  The council shall select one of its 
165.5   members to serve as chair. 
165.6      (c) The council expires June 30, 2001. 
165.7      Sec. 11.  Minnesota Statutes 2000, section 17.86, 
165.8   subdivision 3, is amended to read: 
165.9      Subd. 3.  [INFORMATION.] The University of Minnesota 
165.10  extension service, in cooperation with the commissioners of 
165.11  agriculture, children, families, and learning, natural 
165.12  resources, and ~~public service~~ commerce, shall serve as the 
165.13  principal agency for publishing and circulating information 
165.14  derived from research under subdivision 2 among the various 
165.15  municipalities and individual property owners in the state.  
165.16  Where practical, the extension service and the state energy 
165.17  office in the department of ~~public service~~ commerce shall secure 
165.18  the advice and assistance of various energy utilities interested 
165.19  and concerned with conservation.  The commissioner of 
165.20  agriculture shall establish an information source for requests 
165.21  for nursery stock, to match needs of municipalities with stocks 
165.22  of trees available for planting from private and governmental 
165.23  sources.  
165.24     Sec. 12.  Minnesota Statutes 2000, section 18.024, 
165.25  subdivision 1, is amended to read: 
165.26     Subdivision 1.  [WOOD UTILIZATION.] The departments of 
165.27  agriculture and natural resources, after consultation with the 
165.28  Minnesota shade tree advisory committee and the ~~commissioner of~~ 
165.29  ~~public service~~ state energy office in the department of 
165.30  commerce, shall investigate, evaluate, and make recommendations 
165.31  to the legislature concerning the potential uses of wood from 
165.32  community trees removed due to disease or other disorders.  
165.33  These recommendations shall include maximum resource recovery 
165.34  through recycling, use as an alternative energy source, or use 
165.35  in construction or the manufacture of new products.  Wood 
165.36  utilization or disposal systems as defined in section 18.023 
166.1   must be included to ensure maximum utilization of diseased shade 
166.2   trees with designs and procedures to ensure public safety and to 
166.3   assure compliance with approved disease control programs. 
166.4      Sec. 13.  Minnesota Statutes 2000, section 43A.08, 
166.5   subdivision 1a, is amended to read: 
166.6      Subd. 1a.  [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 
166.7   authorities for the following agencies may designate additional 
166.8   unclassified positions according to this subdivision:  the 
166.9   departments of administration; agriculture; commerce; 
166.10  corrections; economic security; children, families, and 
166.11  learning; employee relations; trade and economic development; 
166.12  finance; health; human rights; labor and industry; natural 
166.13  resources; public safety; ~~public service;~~ human services; 
166.14  revenue; transportation; and veterans affairs; the housing 
166.15  finance and pollution control agencies; the state lottery; the 
166.16  state board of investment; the office of administrative 
166.17  hearings; the office of environmental assistance; the offices of 
166.18  the attorney general, secretary of state, state auditor, and 
166.19  state treasurer; the Minnesota state colleges and universities; 
166.20  the higher education services office; the Perpich center for 
166.21  arts education; and the Minnesota zoological board. 
166.22     A position designated by an appointing authority according 
166.23  to this subdivision must meet the following standards and 
166.24  criteria:  
166.25     (1) the designation of the position would not be contrary 
166.26  to other law relating specifically to that agency; 
166.27     (2) the person occupying the position would report directly 
166.28  to the agency head or deputy agency head and would be designated 
166.29  as part of the agency head's management team; 
166.30     (3) the duties of the position would involve significant 
166.31  discretion and substantial involvement in the development, 
166.32  interpretation, and implementation of agency policy; 
166.33     (4) the duties of the position would not require primarily 
166.34  personnel, accounting, or other technical expertise where 
166.35  continuity in the position would be important; 
166.36     (5) there would be a need for the person occupying the 
167.1   position to be accountable to, loyal to, and compatible with, 
167.2   the governor and the agency head, the employing statutory board 
167.3   or commission, or the employing constitutional officer; 
167.4      (6) the position would be at the level of division or 
167.5   bureau director or assistant to the agency head; and 
167.6      (7) the commissioner has approved the designation as being 
167.7   consistent with the standards and criteria in this subdivision. 
167.8      Sec. 14.  Minnesota Statutes 2000, section 45.012, is 
167.9   amended to read: 
167.10     45.012 [COMMISSIONER.] 
167.11     (a) The department of commerce is under the supervision and 
167.12  control of the commissioner of commerce.  The commissioner is 
167.13  appointed by the governor in the manner provided by section 
167.14  15.06.  
167.15     (b) Data that is received by the commissioner or the 
167.16  commissioner's designee by virtue of membership or participation 
167.17  in an association, group, or organization that is not otherwise 
167.18  subject to chapter 13 is confidential or protected nonpublic 
167.19  data but may be shared with the department employees as the 
167.20  commissioner considers appropriate.  The commissioner may 
167.21  release the data to any person, agency, or the public if the 
167.22  commissioner determines that the access will aid the law 
167.23  enforcement process, promote public health or safety, or dispel 
167.24  widespread rumor or unrest.  
167.25     (c) It is part of the department's mission that within the 
167.26  department's resources the commissioner shall endeavor to: 
167.27     (1) prevent the waste or unnecessary spending of public 
167.28  money; 
167.29     (2) use innovative fiscal and human resource practices to 
167.30  manage the state's resources and operate the department as 
167.31  efficiently as possible; 
167.32     (3) coordinate the department's activities wherever 
167.33  appropriate with the activities of other governmental agencies; 
167.34     (4) use technology where appropriate to increase agency 
167.35  productivity, improve customer service, increase public access 
167.36  to information about government, and increase public 
168.1   participation in the business of government; 
168.2      (5) utilize constructive and cooperative labor-management 
168.3   practices to the extent otherwise required by chapters 43A and 
168.4   179A; 
168.5      (6) report to the legislature on the performance of agency 
168.6   operations and the accomplishment of agency goals in the 
168.7   agency's biennial budget according to section 16A.10, 
168.8   subdivision 1; and 
168.9      (7) recommend to the legislature appropriate changes in law 
168.10  necessary to carry out the mission and improve the performance 
168.11  of the department. 
168.12     (d) The commissioner also has all the powers and 
168.13  responsibilities and shall perform all the duties previously 
168.14  assigned to the commissioner of public service and the 
168.15  department of public service under chapters 216, 216A, 216B, 
168.16  216C, 237, 238, 239, and other statutes prior to the date of 
168.17  final enactment of this act, except in the case where those 
168.18  powers, responsibilities, or duties have been specifically 
168.19  otherwise assigned by law. 
168.20     Sec. 15.  Minnesota Statutes 2000, section 103F.325, 
168.21  subdivision 2, is amended to read: 
168.22     Subd. 2.  [REVIEW AND HEARING.] (a) The commissioner shall 
168.23  make the proposed management plan available to affected local 
168.24  governmental bodies, shoreland owners, conservation and outdoor 
168.25  recreation groups, the commissioner of trade and economic 
168.26  development, the commissioner of ~~public service~~ commerce, the 
168.27  governor, and the general public.  The commissioners of trade 
168.28  and economic development ~~and of public service~~, the state energy 
168.29  office in the department of commerce, and the governor shall 
168.30  review the proposed management plan in accordance with the 
168.31  criteria in section 86A.09, subdivision 3, and submit any 
168.32  written comments to the commissioner within 60 days after 
168.33  receipt of the proposed management plan.  
168.34     (b) By 60 days after making the information available, the 
168.35  commissioner shall conduct a public hearing on the proposed 
168.36  management plan in the county seat of each county that contains 
169.1   a portion of the designated system area, in the manner provided 
169.2   in chapter 14.  
169.3      Sec. 16.  Minnesota Statutes 2000, section 103F.325, 
169.4   subdivision 3, is amended to read: 
169.5      Subd. 3.  [POST HEARING REVIEW.] Upon receipt of the 
169.6   administrative law judge's report, the commissioner shall 
169.7   immediately forward the proposed management plan and the 
169.8   administrative law judge's report to the commissioners of trade 
169.9   and economic development and of ~~public service~~ commerce for 
169.10  review under section 86A.09, subdivision 3, except that the 
169.11  review by the commissioners must be completed or be deemed 
169.12  completed within 30 days after receiving the administrative law 
169.13  judge's report, and the review by the governor must be completed 
169.14  or be deemed completed within 15 days after receipt.  
169.15     Sec. 17.  Minnesota Statutes 2000, section 115A.15, 
169.16  subdivision 5, is amended to read: 
169.17     Subd. 5.  [REPORTS.] (a) By January 1 of each odd-numbered 
169.18  year, the commissioner of administration shall submit a report 
169.19  to the governor and to the environment and natural resources 
169.20  committees of the senate and house of representatives, the 
169.21  finance division of the senate committee on environment and 
169.22  natural resources, and the house of representatives committee on 
169.23  environment and natural resources finance summarizing past 
169.24  activities and proposed goals of the program for the following 
169.25  biennium.  The report shall include at least: 
169.26     (1) a summary list of product and commodity purchases that 
169.27  contain recycled materials; 
169.28     (2) the results of any performance tests conducted on 
169.29  recycled products and agencies' experience with recycled 
169.30  products used; 
169.31     (3) a list of all organizations participating in and using 
169.32  the cooperative purchasing program; and 
169.33     (4) a list of products and commodities purchased for their 
169.34  recyclability and of recycled products reviewed for purchase. 
169.35     (b) By July 1 of each even-numbered year, the director of 
169.36  the office of environmental assistance and the commissioner of 
170.1   ~~public service~~ commerce through the state energy office shall 
170.2   submit recommendations to the commissioner regarding the 
170.3   operation of the program. 
170.4      Sec. 18.  Minnesota Statutes 2000, section 116O.06, 
170.5   subdivision 2, is amended to read: 
170.6      Subd. 2.  [EQUITY INVESTMENTS.] The corporation may acquire 
170.7   an interest in a product or a private business entity, except 
170.8   that the corporation may not acquire an interest in a business 
170.9   entity engaged in a trade or industry whose profits are directly 
170.10  regulated by the commissioner of commerce or the ~~department of~~ 
170.11  ~~public service~~ public utilities commission.  The corporation may 
170.12  enter into joint venture agreements with other private 
170.13  corporations to promote economic development and job creation.  
170.14     Sec. 19.  Minnesota Statutes 2000, section 123B.65, 
170.15  subdivision 1, is amended to read: 
170.16     Subdivision 1.  [DEFINITIONS.] The definitions in this 
170.17  subdivision apply to this section. 
170.18     (a) "Energy conservation measure" means a training program 
170.19  or facility alteration designed to reduce energy consumption or 
170.20  operating costs and includes: 
170.21     (1) insulation of the building structure and systems within 
170.22  the building; 
170.23     (2) storm windows and doors, caulking or weatherstripping, 
170.24  multiglazed windows and doors, heat absorbing or heat reflective 
170.25  glazed and coated window and door systems, additional glazing, 
170.26  reductions in glass area, and other window and door system 
170.27  modifications that reduce energy consumption; 
170.28     (3) automatic energy control systems; 
170.29     (4) heating, ventilating, or air conditioning system 
170.30  modifications or replacements; 
170.31     (5) replacement or modifications of lighting fixtures to 
170.32  increase the energy efficiency of the lighting system without 
170.33  increasing the overall illumination of a facility, unless such 
170.34  increase in illumination is necessary to conform to the 
170.35  applicable state or local building code for the lighting system 
170.36  after the proposed modifications are made; 
171.1      (6) energy recovery systems; 
171.2      (7) cogeneration systems that produce steam or forms of 
171.3   energy such as heat, as well as electricity, for use primarily 
171.4   within a building or complex of buildings; 
171.5      (8) energy conservation measures that provide long-term 
171.6   operating cost reductions.  
171.7      (b) "Guaranteed energy savings contract" means a contract 
171.8   for the evaluation and recommendations of energy conservation 
171.9   measures, and for one or more energy conservation measures.  The 
171.10  contract must provide that all payments, except obligations on 
171.11  termination of the contract before its expiration, are to be 
171.12  made over time, but not to exceed 15 years from the date of 
171.13  final installation, and the savings are guaranteed to the extent 
171.14  necessary to make payments for the systems. 
171.15     (c) "Qualified provider" means a person or business 
171.16  experienced in the design, implementation, and installation of 
171.17  energy conservation measures.  A qualified provider to whom the 
171.18  contract is awarded shall give a sufficient bond to the school 
171.19  district for its faithful performance. 
171.20     (d) "Commissioner" means the commissioner of ~~public service~~ 
171.21  commerce through the state energy office. 
171.22     Sec. 20.  Minnesota Statutes 2000, section 123B.65, 
171.23  subdivision 3, is amended to read: 
171.24     Subd. 3.  [EVALUATION BY COMMISSIONER.] Upon request of the 
171.25  board, the commissioner ~~of public service~~ shall review the 
171.26  report required in subdivision 2 and provide an evaluation to 
171.27  the board on the proposed contract within 15 working days of 
171.28  receiving the report.  In evaluating the proposed contract, the 
171.29  commissioner shall determine whether the detailed calculations 
171.30  of the costs and of the energy and operating savings are 
171.31  accurate and reasonable.  The commissioner may request 
171.32  additional information about a proposed contract as the 
171.33  commissioner deems necessary.  If the commissioner requests 
171.34  additional information, the commissioner shall not be required 
171.35  to submit an evaluation to the board within fewer than ten 
171.36  working days of receiving the requested information.  
172.1      Sec. 21.  Minnesota Statutes 2000, section 123B.65, 
172.2   subdivision 5, is amended to read: 
172.3      Subd. 5.  [PAYMENT OF REVIEW EXPENSES.] The commissioner ~~of~~ 
172.4   ~~public service~~ may charge a district requesting services under 
172.5   subdivisions 3 and 4 actual costs incurred by the department 
172.6   of ~~public service~~ commerce while conducting the review, or 
172.7   one-half percent of the total identified project cost, whichever 
172.8   is less.  Before conducting the review, the commissioner shall 
172.9   notify a district requesting review services that expenses will 
172.10  be charged to the district.  The commissioner shall bill the 
172.11  district upon completion of the contract review.  Money 
172.12  collected by the commissioner under this subdivision must be 
172.13  deposited in the general fund.  A district may include the cost 
172.14  of a review by the commissioner under subdivision 3 in a 
172.15  contract made pursuant to this section. 
172.16     Sec. 22.  Minnesota Statutes 2000, section 161.45, 
172.17  subdivision 1, is amended to read: 
172.18     Subdivision 1.  [RULES.] Electric transmission, telephone 
172.19  or telegraph lines, pole lines, community antenna television 
172.20  lines, railways, ditches, sewers, water, heat or gas mains, gas 
172.21  and other pipe lines, flumes, or other structures which, under 
172.22  the laws of this state or the ordinance of any city, may be 
172.23  constructed, placed, or maintained across or along any trunk 
172.24  highway, or the roadway thereof, by any person, persons, 
172.25  corporation, or any subdivision of the state, may be so 
172.26  maintained or hereafter constructed only in accordance with such 
172.27  rules as may be prescribed by the commissioner who shall have 
172.28  power to prescribe and enforce reasonable rules with reference 
172.29  to the placing and maintaining along, across, or in any such 
172.30  trunk highway of any of the utilities hereinbefore set forth.  
172.31  Nothing herein shall restrict the actions of public authorities 
172.32  in extraordinary emergencies nor restrict the power and 
172.33  authority of the ~~department of public service~~ commissioner of 
172.34  commerce as provided for in other provisions of law.  Provided, 
172.35  however, that in the event any local subdivision of government 
172.36  has enacted ordinances relating to the method of installation or 
173.1   requiring underground installation of such community antenna 
173.2   television lines, the permit granted by the commissioner of 
173.3   transportation shall require compliance with such local 
173.4   ordinance. 
173.5      Sec. 23.  Minnesota Statutes 2000, section 168.61, 
173.6   subdivision 1, is amended to read: 
173.7      Subdivision 1.  [DEFINITION.] The term "intercity bus" as 
173.8   used in sections 168.61 to 168.65 means a motor bus as defined 
173.9   in section 168.011, subdivision 9, which is owned or operated by 
173.10  either a resident or nonresident of Minnesota in interstate 
173.11  commerce under authority of the Interstate Commerce Commission 
173.12  or in combined interstate and intrastate commerce under 
173.13  authority of the Interstate Commerce Commission and the 
173.14  department of ~~public service~~ transportation of Minnesota, as a 
173.15  result of which operation such bus operates both within and 
173.16  without the territorial limits of the state of Minnesota.  
173.17     Sec. 24.  Minnesota Statutes 2000, section 169.073, is 
173.18  amended to read: 
173.19     169.073 [PROHIBITED LIGHT OR SIGNAL.] 
173.20     (a) No person or corporation shall place, maintain or 
173.21  display any red light or red sign, signal, or lighting device or 
173.22  maintain it in view of any highway or any line of railroad on or 
173.23  over which trains are operated in such a way as to interfere 
173.24  with the effectiveness or efficiency of any highway 
173.25  traffic-control device or signals or devices used in the 
173.26  operation of a railroad.  Upon written notice from the 
173.27  commissioner of transportation, a person or corporation 
173.28  maintaining or owning or displaying a prohibited light shall 
173.29  promptly remove it, or change the color of it to some other 
173.30  color than red.  Where a prohibited light or sign interferes 
173.31  with the effectiveness or efficiency of the signals or devices 
173.32  used in the operation of a railroad, the department of ~~public~~ 
173.33  ~~service~~ transportation may cause the removal of it and the 
173.34  department may issue notices and orders for its removal.  The 
173.35  department shall proceed as provided in sections 216.13, 216.14, 
173.36  216.15, 216.16, and 216.17, with a right of appeal to the 
174.1   aggrieved party in accordance with chapter 14. 
174.2      (b) No person or corporation shall maintain or display any 
174.3   light after written notice from the commissioner of 
174.4   transportation or the department of public service that the 
174.5   light constitutes a traffic hazard and that it has ordered the 
174.6   removal thereof. 
174.7      Sec. 25.  Minnesota Statutes 2000, section 174.03, 
174.8   subdivision 7, is amended to read: 
174.9      Subd. 7.  [ENERGY CONSERVATION.] The commissioner, in 
174.10  cooperation with the commissioner of ~~public service~~ commerce 
174.11  through the state energy office, shall evaluate all modes of 
174.12  transportation in terms of their levels of energy consumption.  
174.13  The commissioner of ~~public service~~ commerce shall provide the 
174.14  commissioner with projections of the future availability of 
174.15  energy resources for transportation.  The commissioner shall use 
174.16  the results of this evaluation and the projections to evaluate 
174.17  alternative programs and facilities to be included in the 
174.18  statewide plan and to otherwise promote the more efficient use 
174.19  of energy resources for transportation purposes. 
174.20     Sec. 26.  Minnesota Statutes 2000, section 181.30, is 
174.21  amended to read: 
174.22     181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 
174.23     Any officer of any railroad company in the state violating 
174.24  any of the provisions of section 181.29 shall be guilty of a 
174.25  misdemeanor; and, upon conviction, punished by a fine of not 
174.26  less than $100, and not more than $700, for each offense, or by 
174.27  imprisonment in the county jail not more than 60 days, or both 
174.28  fine and imprisonment, at the discretion of the court.  It shall 
174.29  be the duty of the state department of ~~public~~ 
174.30  ~~service~~ transportation, upon complaint properly filed with it 
174.31  alleging a violation of section 181.29, to make a full 
174.32  investigation in relation thereto, and for such purpose it shall 
174.33  have the power to administer oaths, interrogate witnesses, take 
174.34  testimony and require the production of books and papers, and if 
174.35  such report shall show a violation of the provisions of section 
174.36  181.29, the department of ~~public service~~ transportation shall, 
175.1   through the attorney general, begin the prosecution of all 
175.2   parties against whom evidence of such violation is found; but 
175.3   section 181.29 shall not be construed to prevent any other 
175.4   person from beginning prosecution for the violation of the 
175.5   provisions thereof.  
175.6      Sec. 27.  Minnesota Statutes 2000, section 216A.01, is 
175.7   amended to read: 
175.8      216A.01 [~~ESTABLISHMENT OF~~ DEPARTMENT AND COMMISSION; POWERS 
175.9   AND DUTIES.] 
175.10     ~~There are hereby created and established the department of~~ 
175.11  ~~public service, and the public utilities commission.~~  The 
175.12  department of ~~public service~~ commerce shall have and possess all 
175.13  of the rights and powers and perform all of the duties vested in 
175.14  it by this chapter.  The public utilities commission shall have 
175.15  and possess all of the rights and powers and perform all of the 
175.16  duties vested in it by this chapter, and those formerly vested 
175.17  by law in the railroad and warehouse commission. 
175.18     Sec. 28.  Minnesota Statutes 2000, section 216A.035, is 
175.19  amended to read: 
175.20     216A.035 [CONFLICT OF INTEREST.] 
175.21     (a) No person, while a member of the public utilities 
175.22  commission, while acting as executive secretary of the 
175.23  commission, or while employed in a professional capacity by the 
175.24  commission, shall receive any income, other than dividends or 
175.25  other earnings from a mutual fund or trust if these earnings do 
175.26  not constitute a significant portion of the person's income, 
175.27  directly or indirectly from any public utility or other 
175.28  organization subject to regulation by the commission. 
175.29     (b) No person is eligible to be appointed as a member of 
175.30  the commission if the person has been employed with an entity, 
175.31  or an affiliated company of an entity, that is subject to rate 
175.32  regulation by the commission within one year from the date when 
175.33  the person's term on the commission will begin. 
175.34     (c) No person who is an employee of the ~~public service~~ 
175.35  department of commerce shall participate in any manner in any 
175.36  decision or action of the commission where that person has a 
176.1   direct or indirect financial interest.  Each commissioner or 
176.2   employee of the ~~public service~~ department who is in the general 
176.3   professional, supervisory, or technical units established in 
176.4   section 179A.10 or who is a professional, supervisory, or 
176.5   technical employee defined as confidential in section 179A.03, 
176.6   subdivision 4, or who is a management classification employee 
176.7   and whose duties are related to public ~~utilities or~~ 
176.8   ~~transportation~~ utility, telephone company, or telecommunications 
176.9   company regulation shall report to the campaign finance and 
176.10  public disclosure board annually before April 15 any interest in 
176.11  an industry or business regulated by the commission.  Each 
176.12  commissioner shall file a statement of economic interest as 
176.13  required by section 10A.09 with the campaign finance and public 
176.14  disclosure board and the public utilities commission before 
176.15  taking office.  The statement of economic interest must state 
176.16  any interest that the commissioner has in an industry or 
176.17  business regulated by the commission. 
176.18     (d) A professional employee of the commission or department 
176.19  must immediately disclose to the commission or to the 
176.20  commissioner of the department, respectively, any communication, 
176.21  direct or indirect, with a person who is a party to a pending 
176.22  proceeding before the commission regarding future benefits, 
176.23  compensation, or employment to be received from that person. 
176.24     Sec. 29.  Minnesota Statutes 2000, section 216A.036, is 
176.25  amended to read: 
176.26     216A.036 [EMPLOYMENT RESTRICTIONS.] 
176.27     (a) A person who serves as (1) a commissioner of the public 
176.28  utilities commission, (2) commissioner of ~~the department of~~ 
176.29  ~~public service~~ commerce, or (3) deputy commissioner of ~~the~~ 
176.30  ~~department~~ commerce, shall not, while employed with or within 
176.31  one year after leaving the commission, or department, accept 
176.32  employment with, receive compensation directly or indirectly 
176.33  from, or enter into a contractual relationship with an entity, 
176.34  or an affiliated company of an entity, that is subject to rate 
176.35  regulation by the commission. 
176.36     (b) An entity or an affiliated company of an entity that is 
177.1   subject to rate regulation by the commission, or a person acting 
177.2   on behalf of the entity, shall not negotiate or offer to employ 
177.3   or compensate a commissioner of the public utilities commission, 
177.4   the commissioner of ~~public service~~ commerce, or the deputy 
177.5   commissioner of commerce, while the person is so employed or 
177.6   within one year after the person leaves that employment. 
177.7      (c) For the purposes of this section, "affiliated company" 
177.8   means a company that controls, is controlled by, or is under 
177.9   common control with an entity subject to rate regulation by the 
177.10  commission. 
177.11     (d) A person who violates this section is subject to a 
177.12  civil penalty not to exceed $10,000 for each violation.  The 
177.13  attorney general may bring an action in district court to 
177.14  collect the penalties provided in this section.  
177.15     Sec. 30.  Minnesota Statutes 2000, section 216A.05, 
177.16  subdivision 1, is amended to read: 
177.17     Subdivision 1.  [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 
177.18  The functions of the commission shall be legislative and 
177.19  quasi-judicial in nature.  It may make such investigations and 
177.20  determinations, hold such hearings, prescribe such rules and 
177.21  issue such orders with respect to the control and conduct of the 
177.22  businesses coming within its jurisdiction as the legislature 
177.23  itself might make but only as it shall from time to time 
177.24  authorize.  It may adjudicate all proceedings brought before it 
177.25  in which the violation of any law or rule administered by the 
177.26  department of commerce is alleged. 
177.27     Sec. 31.  Minnesota Statutes 2000, section 216A.07, 
177.28  subdivision 1, is amended to read: 
177.29     Subdivision 1.  [~~ADMINISTRATIVE~~ COMMISSIONER DUTIES.] The 
177.30  commissioner ~~shall be the executive and administrative head of~~ 
177.31  ~~the public service department and shall have and possess~~ of 
177.32  commerce has all the rights and powers and shall perform all the 
177.33  duties ~~relating to the administrative function of the department~~ 
177.34  ~~as~~ set forth in this chapter.  The commissioner may: 
177.35     (1) prepare all forms or blanks for the purpose of 
177.36  obtaining information which the commissioner may deem necessary 
178.1   or useful in the proper exercise of the authority and duties of 
178.2   the commissioner in connection with regulated businesses; 
178.3      (2) prescribe the time and manner within which forms or 
178.4   blanks shall be filed with the department; 
178.5      (3) inspect at all reasonable times, and copy the books, 
178.6   records, memoranda and correspondence or other documents and 
178.7   records of any person relating to any regulated business; and 
178.8      (4) cause the deposition to be taken of any person 
178.9   concerning the business and affairs of any business regulated by 
178.10  the department.  Information sought through said deposition 
178.11  shall be for a lawfully authorized purpose and shall be relevant 
178.12  and material to the investigation or hearing before the 
178.13  commission.  Information obtained from said deposition shall be 
178.14  used by the department only for a lawfully authorized purpose 
178.15  and pursuant to powers and responsibilities conferred upon the 
178.16  department.  Said deposition is to be taken in the manner 
178.17  prescribed by law for taking depositions in civil actions in the 
178.18  district court. 
178.19     Sec. 32.  Minnesota Statutes 2000, section 216A.08, is 
178.20  amended to read: 
178.21     216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 
178.22  DEPARTMENT.] 
178.23     All valid rules, orders, and directives heretofore 
178.24  enforced, issued, or promulgated by the public service 
178.25  department under authority of chapter 216, 216A, 216B, 216C, 
178.26  218, 219, 221, ~~or~~ 222, 237, 238, or 239 shall remain and 
178.27  continue in force and effect until repealed, modified, or 
178.28  superseded by duly authorized rules, orders, or directives of 
178.29  the public utilities commission ~~or~~, the commissioner of 
178.30  transportation, or the commissioner of commerce. 
178.31     Sec. 33.  Minnesota Statutes 2000, section 216A.085, 
178.32  subdivision 3, is amended to read: 
178.33     Subd. 3.  [STAFFING.] The intervention office shall be 
178.34  under the control and supervision of the commissioner of ~~the~~ 
178.35  ~~department of public service~~ commerce.  The commissioner may 
178.36  hire staff or contract for outside services as needed to carry 
179.1   out the purposes of this section.  The attorney general shall 
179.2   act as counsel in all intervention proceedings.  
179.3      Sec. 34.  Minnesota Statutes 2000, section 216B.02, 
179.4   subdivision 1, is amended to read: 
179.5      Subdivision 1.  [SCOPE.] For the purposes of ~~Laws 1974,~~ 
179.6   ~~chapter 429~~ this chapter the terms defined in this section have 
179.7   the meanings given them. 
179.8      Sec. 35.  Minnesota Statutes 2000, section 216B.02, 
179.9   subdivision 7, is amended to read: 
179.10     Subd. 7.  [COMMISSION.] "Commission" means the public 
179.11  utilities commission ~~of the department of public service~~. 
179.12     Sec. 36.  Minnesota Statutes 2000, section 216B.02, 
179.13  subdivision 8, is amended to read: 
179.14     Subd. 8.  [DEPARTMENT.] "Department" means the department 
179.15  of ~~public service~~ commerce of the state of Minnesota. 
179.16     Sec. 37.  Minnesota Statutes 2000, section 216B.16, 
179.17  subdivision 1, is amended to read: 
179.18     Subdivision 1.  [NOTICE.] Unless the commission otherwise 
179.19  orders, no public utility shall change a rate which has been 
179.20  duly established under this chapter, except upon 60 days' notice 
179.21  to the commission.  The notice shall include statements of 
179.22  facts, expert opinions, substantiating documents, and exhibits, 
179.23  supporting the change requested, and state the change proposed 
179.24  to be made in the rates then in force and the time when the 
179.25  modified rates will go into effect.  If the filing utility does 
179.26  not have an approved conservation improvement plan on file with 
179.27  the department ~~of public service~~, it shall also include in its 
179.28  notice an energy conservation plan pursuant to section 
179.29  216B.241.  The filing utility shall give written notice, as 
179.30  approved by the commission, of the proposed change to the 
179.31  governing body of each municipality and county in the area 
179.32  affected.  All proposed changes shall be shown by filing new 
179.33  schedules or shall be plainly indicated upon schedules on file 
179.34  and in force at the time. 
179.35     Sec. 38.  Minnesota Statutes 2000, section 216B.16, 
179.36  subdivision 2, is amended to read: 
180.1      Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
180.2   DETERMINATION DEFINED.] (a) Whenever there is filed with the 
180.3   commission a schedule modifying or resulting in a change in any 
180.4   rates then in force as provided in subdivision 1, the commission 
180.5   may suspend the operation of the schedule by filing with the 
180.6   schedule of rates and delivering to the affected utility a 
180.7   statement in writing of its reasons for the suspension at any 
180.8   time before the rates become effective.  The suspension shall 
180.9   not be for a longer period than ten months beyond the initial 
180.10  filing date except as provided in this subdivision or 
180.11  subdivision 1a.  
180.12     (b) During the suspension the commission shall determine 
180.13  whether all questions of the reasonableness of the rates 
180.14  requested raised by persons deemed interested or by the 
180.15  ~~administrative division of the~~ department ~~of public service~~ can 
180.16  be resolved to the satisfaction of the commission.  If the 
180.17  commission finds that all significant issues raised have not 
180.18  been resolved to its satisfaction, or upon petition by ten 
180.19  percent of the affected customers or 250 affected customers, 
180.20  whichever is less, it shall refer the matter to the office of 
180.21  administrative hearings with instructions for a public hearing 
180.22  as a contested case pursuant to chapter 14, except as otherwise 
180.23  provided in this section. 
180.24     (c) The commission may order that the issues presented by 
180.25  the proposed rate changes be bifurcated into two separate 
180.26  hearings as follows:  (1) determination of the utility's revenue 
180.27  requirements and (2) determination of the rate design.  Upon 
180.28  issuance of both administrative law judge reports, the issues 
180.29  shall again be joined for consideration and final determination 
180.30  by the commission. 
180.31     (d) All prehearing discovery activities of state agency 
180.32  intervenors shall be consolidated and conducted by the 
180.33  department of ~~public service~~ commerce. 
180.34     (e) If the commission does not make a final determination 
180.35  concerning a schedule of rates within ten months after the 
180.36  initial filing date, the schedule shall be deemed to have been 
181.1   approved by the commission; except if: 
181.2      (1) an extension of the procedural schedule has been 
181.3   granted under subdivision 1a, in which case the schedule of 
181.4   rates is deemed to have been approved by the commission on the 
181.5   last day of the extended period of suspension; or 
181.6      (2) a settlement has been submitted to and rejected by the 
181.7   commission and the commission does not make a final 
181.8   determination concerning the schedule of rates, the schedule of 
181.9   rates is deemed to have been approved 60 days after the initial 
181.10  or, if applicable, the extended period of suspension. 
181.11     (f) If the commission finds that it has insufficient time 
181.12  during the suspension period to make a final determination of a 
181.13  case involving changes in general rates because of the need to 
181.14  make a final determination of another previously filed case 
181.15  involving changes in general rates under this section or section 
181.16  237.075, the commission may extend the suspension period to the 
181.17  extent necessary to allow itself 20 working days to make the 
181.18  final determination after it has made a final determination in 
181.19  the previously filed case.  An extension of the suspension 
181.20  period under this paragraph does not alter the setting of 
181.21  interim rates under subdivision 3. 
181.22     (g) For the purposes of this section, "final determination" 
181.23  means the initial decision of the commission and not any order 
181.24  which may be entered by the commission in response to a petition 
181.25  for rehearing or other further relief.  The commission may 
181.26  further suspend rates until it determines all those petitions. 
181.27     Sec. 39.  Minnesota Statutes 2000, section 216B.16, 
181.28  subdivision 6b, is amended to read: 
181.29     Subd. 6b.  [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 
181.30  otherwise provided in this subdivision, all investments and 
181.31  expenses of a public utility as defined in section 216B.241, 
181.32  subdivision 1, paragraph (e), incurred in connection with energy 
181.33  conservation improvements shall be recognized and included by 
181.34  the commission in the determination of just and reasonable rates 
181.35  as if the investments and expenses were directly made or 
181.36  incurred by the utility in furnishing utility service. 
182.1      (b) After December 31, 1999, investments and expenses for 
182.2   energy conservation improvements shall not be included by the 
182.3   commission in the determination of just and reasonable electric 
182.4   and gas rates for retail electric and gas service provided to 
182.5   large electric customer facilities that have been exempted by 
182.6   the commissioner of the department ~~of public service~~ pursuant to 
182.7   section 216B.241, subdivision 1a, paragraph (b).  However, no 
182.8   public utility shall be prevented from recovering its investment 
182.9   in energy conservation improvements from all customers that were 
182.10  made on or before December 31, 1999, in compliance with the 
182.11  requirements of section 216B.241.  
182.12     (c) The commission may permit a public utility to file rate 
182.13  schedules providing for annual recovery of the costs of energy 
182.14  conservation improvements.  These rate schedules may be 
182.15  applicable to less than all the customers in a class of retail 
182.16  customers if necessary to reflect the differing minimum spending 
182.17  requirements of section 216B.241, subdivision 1a.  After 
182.18  December 31, 1999, the commission shall allow a public utility, 
182.19  without requiring a general rate filing under this section, to 
182.20  reduce the electric and gas rates applicable to large electric 
182.21  customer facilities that have been exempted by the commissioner 
182.22  of the department ~~of public service~~ pursuant to section 
182.23  216B.241, subdivision 1a, paragraph (b), by an amount that 
182.24  reflects the elimination of energy conservation improvement 
182.25  investments or expenditures for those facilities required on or 
182.26  before December 31, 1999.  In the event that the commission has 
182.27  set electric or gas rates based on the use of an accounting 
182.28  methodology that results in the cost of conservation 
182.29  improvements being recovered from utility customers over a 
182.30  period of years, the rate reduction may occur in a series of 
182.31  steps to coincide with the recovery of balances due to the 
182.32  utility for conservation improvements made by the utility on or 
182.33  before December 31, 1999.  
182.34     Sec. 40.  Minnesota Statutes 2000, section 216B.16, 
182.35  subdivision 15, is amended to read: 
182.36     Subd. 15.  [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 
183.1   commission may consider ability to pay as a factor in setting 
183.2   utility rates and may establish programs for low-income 
183.3   residential ratepayers in order to ensure affordable, reliable, 
183.4   and continuous service to low-income utility customers.  The 
183.5   commission shall order a pilot program for at least one 
183.6   utility.  In ordering pilot programs, the commission shall 
183.7   consider the following: 
183.8      (1) the potential for low-income programs to provide 
183.9   savings to the utility for all collection costs including but 
183.10  not limited to:  costs of disconnecting and reconnecting 
183.11  residential ratepayers' service, all activities related to the 
183.12  utilities' attempt to collect past due bills, utility working 
183.13  capital costs, and any other administrative costs related to 
183.14  inability to pay programs and initiatives; 
183.15     (2) the potential for leveraging federal low-income energy 
183.16  dollars to the state; and 
183.17     (3) the impact of energy costs as a percentage of the total 
183.18  income of a low-income residential customer. 
183.19     (b) In determining the structure of the pilot utility 
183.20  program, the commission shall: 
183.21     (1) consult with advocates for and representatives of 
183.22  low-income utility customers, administrators of energy 
183.23  assistance and conservation programs, and utility 
183.24  representatives; 
183.25     (2) coordinate eligibility for the program with the state 
183.26  and federal energy assistance program and low-income residential 
183.27  energy programs, including weatherization programs; and 
183.28     (3) evaluate comprehensive low-income programs offered by 
183.29  utilities in other states. 
183.30     (c) The commission shall implement at least one pilot 
183.31  project by January 1, 1995, and shall allow a utility required 
183.32  to implement a pilot project to recover the net costs of the 
183.33  project in the utility's rates. 
183.34     ~~(d) The commission, in conjunction with the commissioner of~~ 
183.35  ~~the department of public service and the commissioner of~~ 
183.36  ~~economic security, shall review low-income rate programs and~~ 
184.1   ~~shall report to the legislature by January 1, 1998.  The report~~ 
184.2   ~~must include:~~ 
184.3      ~~(1) the increase in federal energy assistance money~~ 
184.4   ~~leveraged by the state as a result of this program;~~ 
184.5      ~~(2) the effect of the program on low-income customer's~~ 
184.6   ~~ability to pay energy costs;~~ 
184.7      ~~(3) the effect of the program on utility customer bad debt~~ 
184.8   ~~and arrearages;~~ 
184.9      ~~(4) the effect of the program on the costs and numbers of~~ 
184.10  ~~utility disconnections and reconnections and other costs~~ 
184.11  ~~incurred by the utility in association with inability to pay~~ 
184.12  ~~programs;~~ 
184.13     ~~(5) the ability of the utility to recover the costs of the~~ 
184.14  ~~low-income program without a general rate change;~~ 
184.15     ~~(6) how other ratepayers have been affected by this~~ 
184.16  ~~program;~~ 
184.17     ~~(7) recommendations for continuing, eliminating, or~~ 
184.18  ~~expanding the low-income pilot program; and~~ 
184.19     ~~(8) how general revenue funds may be utilized in~~ 
184.20  ~~conjunction with low-income programs.~~ 
184.21     Sec. 41.  Minnesota Statutes 2000, section 216B.162, 
184.22  subdivision 7, is amended to read: 
184.23     Subd. 7.  [COMMISSION DETERMINATION.] (a) Except as 
184.24  provided under subdivision 6, competitive rates offered by 
184.25  electric utilities under this section must be filed with the 
184.26  commission and must be approved, modified, or rejected by the 
184.27  commission within 90 days.  The utility's filing must include 
184.28  statements of fact demonstrating that the proposed rates meet 
184.29  the standards of this subdivision.  The filing must be served on 
184.30  the department ~~of public service~~ and the office of the attorney 
184.31  general at the same time as it is served on the commission. 
184.32     (b) In reviewing a specific rate proposal, the commission 
184.33  shall determine: 
184.34     (1) that the rate meets the terms and conditions in 
184.35  subdivision 4, unless the commission determines that waiver of 
184.36  one or more terms and conditions would be in the public 
185.1   interest; 
185.2      (2) that the consumer can obtain its energy requirements 
185.3   from an energy supplier not rate-regulated by the commission 
185.4   under section 216B.16; 
185.5      (3) that the customer is not likely to take service from 
185.6   the electric utility seeking to offer the competitive rate if 
185.7   the customer was charged the electric utility's standard 
185.8   tariffed rate; and 
185.9      (4) that after consideration of environmental and 
185.10  socioeconomic impacts it is in the best interest of all other 
185.11  customers to offer the competitive rate to the customer subject 
185.12  to effective competition. 
185.13     (c) If the commission approves the competitive rate, it 
185.14  becomes effective as agreed to by the electric utility and the 
185.15  customer.  If the competitive rate is modified by the 
185.16  commission, the commission shall issue an order modifying the 
185.17  competitive rate subject to the approval of the electric utility 
185.18  and the customer.  Each party has ten days in which to reject 
185.19  the proposed modification.  If no party rejects the proposed 
185.20  modification, the commissioner's order becomes final.  If either 
185.21  party rejects the commission's proposed modification, the 
185.22  electric utility, on its behalf or on the behalf of the 
185.23  customer, may submit to the commission a modified version of the 
185.24  commission's proposal.  The commission shall accept or reject 
185.25  the modified version within 30 days.  If the commission rejects 
185.26  the competitive rate, it shall issue an order indicating the 
185.27  reasons for the rejection. 
185.28     Sec. 42.  Minnesota Statutes 2000, section 216B.162, 
185.29  subdivision 11, is amended to read: 
185.30     Subd. 11.  [COMMISSION DETERMINATION.] (a) Proposals for 
185.31  discretionary rate reductions offered by utilities must be filed 
185.32  with the commission, with copies of the filing served upon the 
185.33  department ~~of public service~~ and the office of attorney general 
185.34  at the same time it is served upon the commission.  The 
185.35  commission shall review the proposals according to procedures 
185.36  developed under section 216B.05, subdivision 2a.  The commission 
186.1   shall not approve discretionary rate reductions offered by 
186.2   public utilities that do not have an accepted resource plan on 
186.3   file with the commission.  The commission shall not approve 
186.4   discretionary rate reductions unless the utility has made the 
186.5   customer aware of all cost-effective opportunities for energy 
186.6   efficiency improvements offered by the utility. 
186.7      (b) Public utilities that provide service under 
186.8   discretionary rate reductions shall not, through increased 
186.9   revenue requirements or through prospective rate design changes, 
186.10  recover any revenues foregone due to the discretionary rate 
186.11  reductions, nor shall the commission grant such recovery. 
186.12     Sec. 43.  Minnesota Statutes 2000, section 216B.1675, 
186.13  subdivision 9, is amended to read: 
186.14     Subd. 9.  [COMMISSION FINDINGS.] The commission shall issue 
186.15  findings concerning the appropriateness of the proposed plan.  
186.16  The commission may approve, reject, or modify the plan in a 
186.17  manner which meets the requirements of this section.  An 
186.18  approved or modified plan becomes effective unless the plan is 
186.19  withdrawn by the utility within 30 days of a final appealable 
186.20  order.  If the utility withdraws an approved or modified plan, 
186.21  all of the administrative costs related to the plan that are 
186.22  charged by the commission or the department ~~of public service~~ to 
186.23  the utility may not be recovered from ratepayers in current or 
186.24  subsequent rates.  A utility that withdraws an approved or 
186.25  modified plan may not file another plan under this section for a 
186.26  period of one year following the withdrawal of the plan. 
186.27     Sec. 44.  Minnesota Statutes 2000, section 216B.241, 
186.28  subdivision 1a, is amended to read: 
186.29     Subd. 1a.  [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 
186.30  PUBLIC UTILITY.] (a) For purposes of this subdivision and 
186.31  subdivision 2, "public utility" has the meaning given it in 
186.32  section 216B.02, subdivision 4.  Each public utility shall spend 
186.33  and invest for energy conservation improvements under this 
186.34  subdivision and subdivision 2 the following amounts: 
186.35     (1) for a utility that furnishes gas service, 0.5 percent 
186.36  of its gross operating revenues from service provided in the 
187.1   state; 
187.2      (2) for a utility that furnishes electric service, 1.5 
187.3   percent of its gross operating revenues from service provided in 
187.4   the state; and 
187.5      (3) for a utility that furnishes electric service and that 
187.6   operates a nuclear-powered electric generating plant within the 
187.7   state, two percent of its gross operating revenues from service 
187.8   provided in the state. 
187.9      For purposes of this paragraph (a), "gross operating 
187.10  revenues" do not include revenues from large electric customer 
187.11  facilities exempted by the commissioner of the department ~~of~~ 
187.12  ~~public service~~ pursuant to paragraph (b). 
187.13     (b) The owner of a large electric customer facility may 
187.14  petition the commissioner of the department ~~of public service~~ to 
187.15  exempt both electric and gas utilities serving the large energy 
187.16  customer facility from the investment and expenditure 
187.17  requirements of paragraph (a) with respect to retail revenues 
187.18  attributable to the facility.  At a minimum, the petition must 
187.19  be supported by evidence relating to competitive or economic 
187.20  pressures on the customer and a showing by the customer of 
187.21  reasonable efforts to identify, evaluate, and implement 
187.22  cost-effective conservation improvements at the facility.  If a 
187.23  petition is filed on or before October 1 of any year, the order 
187.24  of the commissioner to exempt revenues attributable to the 
187.25  facility can be effective no earlier than January 1 of the 
187.26  following year.  The commissioner shall not grant an exemption 
187.27  if the commissioner determines that granting the exemption is 
187.28  contrary to the public interest.  The commissioner may, after 
187.29  investigation, rescind any exemption granted under this 
187.30  paragraph upon a determination that cost-effective energy 
187.31  conservation improvements are available at the large electric 
187.32  customer facility.  For the purposes of this paragraph, 
187.33  "cost-effective" means that the projected total cost of the 
187.34  energy conservation improvement at the large electric customer 
187.35  facility is less than the projected present value of the energy 
187.36  and demand savings resulting from the energy conservation 
188.1   improvement.  For the purposes of investigations by the 
188.2   commissioner under this paragraph, the owner of any large 
188.3   electric customer facility shall, upon request, provide the 
188.4   commissioner with updated information comparable to that 
188.5   originally supplied in or with the owner's original petition 
188.6   under this paragraph. 
188.7      (c) The commissioner may require investments or spending 
188.8   greater than the amounts required under this subdivision for a 
188.9   public utility whose most recent advance forecast required under 
188.10  section 216B.2422 or 216C.17 projects a peak demand deficit of 
188.11  100 megawatts or greater within five years under mid-range 
188.12  forecast assumptions.  
188.13     (d) A public utility or owner of a large electric customer 
188.14  facility may appeal a decision of the commissioner under 
188.15  paragraph (b) or (c) to the commission under subdivision 2.  In 
188.16  reviewing a decision of the commissioner under paragraph (b) or 
188.17  (c), the commission shall rescind the decision if it finds that 
188.18  the required investments or spending will: 
188.19     (1) not result in cost-effective energy conservation 
188.20  improvements; or 
188.21     (2) otherwise not be in the public interest. 
188.22     (e) Each utility shall determine what portion of the amount 
188.23  it sets aside for conservation improvement will be used for 
188.24  conservation improvements under subdivision 2 and what portion 
188.25  it will contribute to the energy and conservation account 
188.26  established in subdivision 2a.  A public utility may propose to 
188.27  the commissioner to designate that all or a portion of funds 
188.28  contributed to the account established in subdivision 2a be used 
188.29  for research and development projects.  Contributions must be 
188.30  remitted to the commissioner ~~of public service~~ by February 1 of 
188.31  each year.  Nothing in this subdivision prohibits a public 
188.32  utility from spending or investing for energy conservation 
188.33  improvement more than required in this subdivision. 
188.34     Sec. 45.  Minnesota Statutes 2000, section 216B.241, 
188.35  subdivision 1b, is amended to read: 
188.36     Subd. 1b.  [CONSERVATION IMPROVEMENT BY COOPERATIVE 
189.1   ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 
189.2      (1) a cooperative electric association that generates and 
189.3   transmits electricity to associations that provide electricity 
189.4   at retail including a cooperative electric association not 
189.5   located in this state that serves associations or others in the 
189.6   state; 
189.7      (2) a municipality that provides electric service to retail 
189.8   customers; and 
189.9      (3) a municipality with gross operating revenues in excess 
189.10  of $5,000,000 from sales of natural gas to retail customers.  
189.11     (b) Each cooperative electric association and municipality 
189.12  subject to this subdivision shall spend and invest for energy 
189.13  conservation improvements under this subdivision the following 
189.14  amounts: 
189.15     (1) for a municipality, 0.5 percent of its gross operating 
189.16  revenues from the sale of gas and one percent of its gross 
189.17  operating revenues from the sale of electricity not purchased 
189.18  from a public utility governed by subdivision 1a or a 
189.19  cooperative electric association governed by this subdivision, 
189.20  excluding gross operating revenues from electric and gas service 
189.21  provided in the state to large electric customer facilities; and 
189.22     (2) for a cooperative electric association, 1.5 percent of 
189.23  its gross operating revenues from service provided in the state, 
189.24  excluding gross operating revenues from service provided in the 
189.25  state to large electric customer facilities indirectly through a 
189.26  distribution cooperative electric association. 
189.27     (c) Each municipality and cooperative association subject 
189.28  to this subdivision shall identify and implement energy 
189.29  conservation improvement spending and investments that are 
189.30  appropriate for the municipality or association, except that a 
189.31  municipality or association may not spend or invest for energy 
189.32  conservation improvements that directly benefit a large electric 
189.33  customer facility.  Each municipality and cooperative electric 
189.34  association subject to this subdivision may spend and invest 
189.35  annually up to 15 percent of the total amount required to be 
189.36  spent and invested on energy conservation improvements under 
190.1   this subdivision on research and development projects that meet 
190.2   the definition of energy conservation improvement in subdivision 
190.3   1 and that are funded directly by the municipality or 
190.4   cooperative electric association.  Load management may be used 
190.5   to meet the requirements of this subdivision if it reduces the 
190.6   demand for or increases the efficiency of electric services.  A 
190.7   generation and transmission cooperative electric association may 
190.8   include as spending and investment required under this 
190.9   subdivision conservation improvement spending and investment by 
190.10  cooperative electric associations that provide electric service 
190.11  at retail to consumers and that are served by the generation and 
190.12  transmission association. 
190.13     (d) By February 1 of each year, each municipality or 
190.14  cooperative shall report to the commissioner its energy 
190.15  conservation improvement spending and investments with a brief 
190.16  analysis of effectiveness in reducing consumption of electricity 
190.17  or gas.  The commissioner shall review each report and make 
190.18  recommendations, where appropriate, to the municipality or 
190.19  association to increase the effectiveness of conservation 
190.20  improvement activities.  The commissioner shall also review each 
190.21  report for whether a portion of the money spent on residential 
190.22  conservation improvement programs is devoted to programs that 
190.23  directly address the needs of renters and low-income persons 
190.24  unless an insufficient number of appropriate programs are 
190.25  available.  For the purposes of this subdivision and subdivision 
190.26  2, "low-income" means an income of less than 185 percent of the 
190.27  federal poverty level. 
190.28     (e) As part of its spending for conservation improvement, a 
190.29  municipality or association may contribute to the energy and 
190.30  conservation account.  A municipality or association may propose 
190.31  to the commissioner to designate that all or a portion of funds 
190.32  contributed to the account be used for research and development 
190.33  projects.  Any amount contributed must be remitted to the 
190.34  commissioner ~~of public service~~ by February 1 of each year. 
190.35     Sec. 46.  Minnesota Statutes 2000, section 216B.241, 
190.36  subdivision 2b, is amended to read: 
191.1      Subd. 2b.  [RECOVERY OF EXPENSES.] The commission shall 
191.2   allow a utility to recover expenses resulting from a 
191.3   conservation improvement program required by the department and 
191.4   contributions to the energy and conservation account, unless the 
191.5   recovery would be inconsistent with a financial incentive 
191.6   proposal approved by the commission.  In addition, a utility may 
191.7   file annually, or the public utilities commission may require 
191.8   the utility to file, and the commission may approve, rate 
191.9   schedules containing provisions for the automatic adjustment of 
191.10  charges for utility service in direct relation to changes in the 
191.11  expenses of the utility for real and personal property taxes, 
191.12  fees, and permits, the amounts of which the utility cannot 
191.13  control.  A public utility is eligible to file for adjustment 
191.14  for real and personal property taxes, fees, and permits under 
191.15  this subdivision only if, in the year previous to the year in 
191.16  which it files for adjustment, it has spent or invested at least 
191.17  1.75 percent of its gross revenues from provision of electric 
191.18  service, excluding gross operating revenues from electric 
191.19  service provided in the state to large electric customer 
191.20  facilities for which the commissioner ~~of public service~~ has 
191.21  issued an exemption under subdivision 1a, paragraph (b), and 0.6 
191.22  percent of its gross revenues from provision of gas service, 
191.23  excluding gross operating revenues from gas services provided in 
191.24  the state to large electric customer facilities for which the 
191.25  commissioner ~~of public service~~ has issued an exemption under 
191.26  subdivision 1a, paragraph (b), for that year for energy 
191.27  conservation improvements under this section. 
191.28     Sec. 47.  Minnesota Statutes 2000, section 216C.01, 
191.29  subdivision 1, is amended to read: 
191.30     Subdivision 1.  [APPLICABILITY.] The definitions in this 
191.31  section apply to ~~sections 216C.02, 216C.05, 216C.07 to 216C.19,~~ 
191.32  ~~216C.20 to 216C.35, and 216C.373 to 216C.381~~ this chapter. 
191.33     Sec. 48.  Minnesota Statutes 2000, section 216C.01, 
191.34  subdivision 2, is amended to read: 
191.35     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
191.36  commissioner of ~~the department of public service~~ commerce. 
192.1      Sec. 49.  Minnesota Statutes 2000, section 216C.01, 
192.2   subdivision 3, is amended to read: 
192.3      Subd. 3.  [DEPARTMENT.] "Department" means the department 
192.4   of ~~public service~~ commerce. 
192.5      Sec. 50.  Minnesota Statutes 2000, section 216C.051, 
192.6   subdivision 6, is amended to read: 
192.7      Subd. 6.  [ASSESSMENT; APPROPRIATION.] On request by the 
192.8   cochairs of the legislative task force and after approval of the 
192.9   legislative coordinating commission, the commissioner of ~~the~~ 
192.10  ~~department of public service~~ commerce shall assess from electric 
192.11  utilities, in addition to assessments made under section 
192.12  216B.62, the amount requested for the operation of the task 
192.13  force not to exceed $700,000.  This authority to assess 
192.14  continues until the commissioner has assessed a total of 
192.15  $700,000.  The amount assessed under this section is 
192.16  appropriated to the director of the legislative coordinating 
192.17  commission for those purposes, and is available until expended. 
192.18     Sec. 51.  Minnesota Statutes 2000, section 216C.37, 
192.19  subdivision 1, is amended to read: 
192.20     Subdivision 1.  [DEFINITIONS.] In this section:  
192.21     (a) "Commissioner" means the commissioner of ~~public service~~ 
192.22  commerce. 
192.23     (b) "Energy conservation investments" means all capital 
192.24  expenditures that are associated with conservation measures 
192.25  identified in an energy project study, and that have a ten-year 
192.26  or less payback period.  
192.27     (c) "Municipality" means any county, statutory or home rule 
192.28  charter city, town, school district, or any combination of those 
192.29  units operating under an agreement to jointly undertake projects 
192.30  authorized in this section.  
192.31     (d) "Energy project study" means a study of one or more 
192.32  energy-related capital improvement projects analyzed in 
192.33  sufficient detail to support a financing application.  At a 
192.34  minimum, it must include one year of energy consumption and cost 
192.35  data, a description of existing conditions, a description of 
192.36  proposed conditions, a detailed description of the costs of the 
193.1   project, and calculations sufficient to document the proposed 
193.2   energy savings. 
193.3      Sec. 52.  Minnesota Statutes 2000, section 216C.40, 
193.4   subdivision 4, is amended to read: 
193.5      Subd. 4.  [CONDITION PRECEDENT.] The duties of the 
193.6   department under this section are conditional on the 
193.7   commissioner ~~of public service~~ finding that there will be at 
193.8   least one public utility that will be subject to the assessment 
193.9   created by Laws 1993, chapter 254, section 7. 
193.10     Sec. 53.  Minnesota Statutes 2000, section 237.02, is 
193.11  amended to read: 
193.12     237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
193.13  DEFINITIONS.] 
193.14     The department of ~~public service~~ commerce and the public 
193.15  utilities commission~~, now existing under the laws of this state,~~ 
193.16  are hereby vested with the same jurisdiction and supervisory 
193.17  power over telephone and telecommunications companies doing 
193.18  business in this state as ~~it now has~~ the commission's 
193.19  predecessor, the railroad and warehouse commission, had over 
193.20  railroad and express companies.  The definitions set forth 
193.21  in ~~section~~ sections 216A.02 ~~shall apply~~ and 216B.02 also apply 
193.22  to this chapter. 
193.23     Sec. 54.  Minnesota Statutes 2000, section 237.075, 
193.24  subdivision 2, is amended to read: 
193.25     Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
193.26  DETERMINATION DEFINED.] (a) Whenever there is filed with the 
193.27  commission as provided in subdivision 1 a schedule modifying or 
193.28  resulting in a change in any rate then in force, the commission 
193.29  may suspend the operation of the schedule by filing with the 
193.30  schedule of rates and delivering to the affected telephone 
193.31  company a statement in writing of its reasons for the suspension 
193.32  at any time before the rates become effective.  The suspension 
193.33  shall not be for a longer period than ten months beyond the 
193.34  initial filing date except as provided in paragraph (b).  During 
193.35  the suspension the commission shall determine whether all 
193.36  questions of the reasonableness of the rates requested raised by 
194.1   persons deemed interested or by the ~~administrative division of~~ 
194.2   ~~the~~ department ~~of public service~~ can be resolved to the 
194.3   satisfaction of the commission.  If the commission finds that 
194.4   all significant issues raised have not been resolved to its 
194.5   satisfaction, or upon petition by ten percent of the affected 
194.6   customers or 250 affected customers, whichever is less, it shall 
194.7   refer the matter to the office of administrative hearings with 
194.8   instructions for a public hearing as a contested case pursuant 
194.9   to chapter 14, except as otherwise provided in this section.  
194.10  The commission may order that the issues presented by the 
194.11  proposed rate changes be bifurcated into two separate hearings 
194.12  as follows:  (1) determination of the telephone company's 
194.13  revenue requirements and (2) determination of the rate design.  
194.14  Upon issuance of both administrative law judge reports, the 
194.15  issues shall again be joined for consideration and final 
194.16  determination by the commission.  All prehearing discovery 
194.17  activities of state agency intervenors shall be consolidated and 
194.18  conducted by the department of ~~public service~~ commerce.  If the 
194.19  commission does not make a final determination concerning a 
194.20  schedule of rates within ten months after the initial filing 
194.21  date, the schedule shall be deemed to have been approved by the 
194.22  commission; except if a settlement has been submitted to and 
194.23  rejected by the commission, the schedule is deemed to have been 
194.24  approved 12 months after the initial filing. 
194.25     (b) If the commission finds that it has insufficient time 
194.26  during the suspension period to make a final determination of a 
194.27  case involving changes in general rates because of the need to 
194.28  make final determinations of other previously filed cases 
194.29  involving changes in general rates under this section or section 
194.30  216B.16, the commission may extend the suspension period to the 
194.31  extent necessary to allow itself 20 working days to make the 
194.32  final determination after it has made final determinations in 
194.33  the previously filed cases.  An extension of the suspension 
194.34  period under this paragraph does not alter the setting of 
194.35  interim rates under subdivision 3. 
194.36     (c) For the purposes of this section, "final determination" 
195.1   means the initial decision of the commission and not any order 
195.2   which may be entered by the commission in response to a petition 
195.3   for rehearing or other further relief.  The commission may 
195.4   further suspend rates until it determines all those petitions. 
195.5      Sec. 55.  Minnesota Statutes 2000, section 237.075, 
195.6   subdivision 9, is amended to read: 
195.7      Subd. 9.  [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 
195.8   INDEPENDENT.] For the purposes of this section, "telephone 
195.9   company" shall not include a cooperative telephone association 
195.10  organized under the provisions of chapter 308A, an independent 
195.11  telephone company, or a municipal, unless the cooperative 
195.12  telephone association, independent telephone company, or 
195.13  municipal makes the election provided in this subdivision. 
195.14     A cooperative telephone association may elect to become 
195.15  subject to rate regulation by the commission pursuant to this 
195.16  section.  The election shall be (a) approved by the board of 
195.17  directors of the association in accordance with the procedures 
195.18  for amending the articles of incorporation contained in section 
195.19  308A.135, excluding the filing requirements; or (b) approved by 
195.20  a majority of members or stockholders voting by mail ballot 
195.21  initiated by petition of no fewer than five percent of the 
195.22  members or stockholders of the association.  The ballot to be 
195.23  used for the election shall be approved by the board of 
195.24  directors and the department ~~of public service~~.  The department 
195.25  shall mail the ballots to the association's members who shall 
195.26  return the ballots to the department.  The department will keep 
195.27  the ballots sealed until a date agreed upon by the department 
195.28  and the board of directors.  On this date, representatives of 
195.29  the department and the association shall count the ballots.  If 
195.30  a majority of the association's members who vote elect to become 
195.31  subject to rate regulation by the commission, the election shall 
195.32  be effective 30 days after the date the ballots are counted.  
195.33  For purposes of this section, the term "member or stockholder"  
195.34  shall mean either the member or stockholder of record or the 
195.35  spouse of the member or stockholder unless the association has 
195.36  been notified otherwise in writing.  
196.1      A municipal may elect to become subject to rate regulation 
196.2   by the commission pursuant to this section.  The election shall 
196.3   be (a) approved by resolution of the governing body of the 
196.4   municipality; or (b) approved by a majority of the customers of 
196.5   the municipal voting by mail ballot initiated by petition of no 
196.6   fewer than 20 percent of the customers of the municipal.  The 
196.7   ballot to be used for the election shall be approved by the 
196.8   governing body of the municipality and the department ~~of public~~ 
196.9   ~~service~~.  The department shall mail the ballots to the 
196.10  municipal's customers who shall return the ballots to the 
196.11  department.  The department will keep the ballots sealed until a 
196.12  date agreed upon by the department and the governing body of the 
196.13  municipality.  On this date, representatives of the department 
196.14  and the municipal shall count the ballots.  If a majority of the 
196.15  customers of the municipal who vote elect to become subject to 
196.16  rate regulation by the commission, the election shall be 
196.17  effective 30 days after the date the ballots are counted.  For 
196.18  purposes of this section, the term "customer" shall mean either 
196.19  the person in whose name the telephone service is registered or 
196.20  the spouse of the person unless the municipal utility has been 
196.21  notified otherwise in writing.  
196.22     An independent telephone company may elect to become 
196.23  subject to rate regulation by the commission pursuant to this 
196.24  section.  The election shall be (a) approved by the board of 
196.25  directors of the company in accordance with the procedures for 
196.26  amending the articles of incorporation contained in sections 
196.27  302A.133 to 302A.139, excluding the filing requirements; or (b) 
196.28  approved by a majority of subscribers voting by mail ballot 
196.29  initiated by petition of no fewer than five percent of the 
196.30  subscribers of the company.  The ballot to be used for the 
196.31  election shall be approved by the board of directors and the 
196.32  department ~~of public service~~.  The department shall mail the 
196.33  ballots to the company's subscribers who shall return the 
196.34  ballots to the department.  The department will keep the ballots 
196.35  sealed until a date agreed upon by the department and the board 
196.36  of directors.  On this date, representatives of the department 
197.1   and the company shall count the ballots.  If a majority of the 
197.2   company's subscribers who vote elect to become subject to rate 
197.3   regulation by the commission, the election shall be effective 30 
197.4   days after the date the ballots are counted.  For purposes of 
197.5   this section the term "subscriber" shall mean either the person 
197.6   in whose name the telephone service is registered or the spouse 
197.7   of the person unless the independent telephone company has been 
197.8   notified otherwise in writing.  
197.9      Sec. 56.  Minnesota Statutes 2000, section 237.082, is 
197.10  amended to read: 
197.11     237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 
197.12  SPEED AND SERVICE.] 
197.13     When setting rates, adopting rules, or issuing orders 
197.14  related to telecommunication matters that affect deployment of 
197.15  the infrastructure, the commission may apply the goals of: 
197.16     (1) achieving economically efficient investment in: 
197.17     (i) higher speed telecommunication services; and 
197.18     (ii) greater capacity for voice, video, and data 
197.19  transmission; and 
197.20     (2) just and reasonable rates. 
197.21     The department ~~of public service~~ may apply the same goals 
197.22  in its regulation of and recommendations regarding 
197.23  telecommunication services. 
197.24     Sec. 57.  Minnesota Statutes 2000, section 237.21, is 
197.25  amended to read: 
197.26     237.21 [VALUATION OF TELEPHONE PROPERTY.] 
197.27     In determining the value of any telephone property for rate 
197.28  making purposes, no valuation shall be allowed upon the value of 
197.29  any franchise granted by the state or any municipality where no 
197.30  payment was or is being made to the state or municipality on 
197.31  account thereof.  The requirement as to reasonableness of rates 
197.32  shall apply to each exchange unit as well as to telephone plants 
197.33  as a whole.  Provided, that in the case of a company operating a 
197.34  telephone system consisting of more than one exchange in the 
197.35  state, reasonableness of rates, as measured by earnings, shall 
197.36  be determined by a reasonable return from the total operations 
198.1   of the system within the state rather than by the return from 
198.2   individual exchanges or services.  No telephone rates or charges 
198.3   shall be allowed or approved by the commission under any 
198.4   circumstances, which are inadequate and which are intended to or 
198.5   naturally tend to destroy competition or produce a monopoly in 
198.6   telephone service in the locality affected.  
198.7      ~~Laws 1953, chapter 25, shall have no effect on proceedings~~ 
198.8   ~~pending before the courts or the department of public service at~~ 
198.9   ~~the time of its enactment.~~  
198.10     Sec. 58.  Minnesota Statutes 2000, section 237.30, is 
198.11  amended to read: 
198.12     237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 
198.13     The sum of $25,000 is hereby appropriated out of any moneys 
198.14  in the state treasury not otherwise appropriated, to establish 
198.15  and provide a revolving fund to be known as the Minnesota 
198.16  Telephone Investigation Fund for the use of the department of 
198.17  ~~public service~~ commerce and of the attorney general in 
198.18  investigations, valuations, and revaluations under section 
198.19  237.295.  All sums paid by the telephone companies to reimburse 
198.20  the department ~~of public service~~ for its expenses pursuant to 
198.21  section 237.295 shall be credited to the revolving fund and 
198.22  shall be deposited in a separate bank account and not commingled 
198.23  with any other state funds or moneys, but any balance in excess 
198.24  of $25,000 in the revolving fund at the end of each fiscal year 
198.25  shall be paid into the state treasury and credited to the 
198.26  general fund.  The sum of $25,000 herein appropriated and all 
198.27  subsequent credits to said revolving fund shall be paid upon the 
198.28  warrant of the commissioner of finance upon application of the 
198.29  department or of the attorney general to an aggregate amount of 
198.30  not more than one-half of such sums to each of them, which 
198.31  proportion shall be constantly maintained in all credits and 
198.32  withdrawals from the revolving fund. 
198.33     Sec. 59.  Minnesota Statutes 2000, section 237.462, 
198.34  subdivision 6, is amended to read: 
198.35     Subd. 6.  [EXPEDITED PROCEEDING.] (a) The commission may 
198.36  order an expedited proceeding under section 237.61 and this 
199.1   subdivision, in lieu of a contested case under chapter 14, to 
199.2   develop an evidentiary record in any proceeding that involves 
199.3   contested issues of material fact either upon request of a party 
199.4   or upon the commission's own motion if the complaint alleges a 
199.5   violation described in subdivision 1, clauses (1) to (4).  The 
199.6   commission may order an expedited proceeding under this 
199.7   subdivision if the commission finds an expedited proceeding is 
199.8   in the public interest, regardless of whether all parties agree 
199.9   to the expedited proceeding.  In determining whether to grant an 
199.10  expedited proceeding, the commission may consider any evidence 
199.11  of impairment of the provision of telecommunications service to 
199.12  subscribers in the state or impairment of the provision of any 
199.13  service or network element subject to the jurisdiction of the 
199.14  commission.  
199.15     (b) Any request for an expedited proceeding under this 
199.16  subdivision must be noted in the title of the first filing by a 
199.17  party.  The filing shall also state the specific circumstances 
199.18  that the party believes warrant an expedited proceeding under 
199.19  this subdivision.  
199.20     (c) A complaint requesting an expedited proceeding, unless 
199.21  filed by the department ~~of public service~~ or the attorney 
199.22  general, must set forth the actions and the dates of the actions 
199.23  taken by the party filing the complaint to attempt to resolve 
199.24  the alleged violations with the party against whom the complaint 
199.25  is filed, including any requests that the party against whom the 
199.26  complaint is filed correct the conduct giving rise to the 
199.27  violations alleged in the complaint.  If no such actions were 
199.28  taken by the complainant, the complaint shall set forth the 
199.29  reasons why no such actions were taken.  The commission may 
199.30  order an expedited proceeding even if the filing complaint fails 
199.31  to meet this requirement if the commission determines that it 
199.32  would be in the public interest to go forward with the expedited 
199.33  proceeding without information in the complaint on attempts to 
199.34  resolve the dispute. 
199.35     (d) The complaining party shall serve the complaint along 
199.36  with any written discovery requests by hand delivery and 
200.1   facsimile on the party against whom the complaint is filed, the 
200.2   department ~~of public service~~, and the office of the attorney 
200.3   general on the same day the complaint is filed with the 
200.4   commission. 
200.5      (e) The party responding to a complaint that includes a 
200.6   request for an expedited proceeding under this subdivision shall 
200.7   file an answer within 15 days after receiving the complaint.  
200.8   The responding party shall state in the answer the party's 
200.9   position on the request for an expedited proceeding.  The 
200.10  responding party shall serve with the answer any objections to 
200.11  any written discovery requests as well as any written discovery 
200.12  requests the responding party wishes to serve on the complaining 
200.13  party.  Except for stating any objections, the responding party 
200.14  is not required to answer any written discovery requests under 
200.15  this subdivision until a time established at a prehearing 
200.16  conference.  The responding party shall serve a copy of the 
200.17  answer and any discovery requests and objections on the 
200.18  complaining party, the department ~~of public service~~, and office 
200.19  of the attorney general by hand delivery and facsimile on the 
200.20  same day as the answer is filed with the commission. 
200.21     (f) Within 15 days of receiving the answer to a complaint 
200.22  in a proceeding in which a party has requested an expedited 
200.23  hearing, the commission shall determine whether the filing 
200.24  warrants an expedited proceeding.  If the commission decides to 
200.25  grant a request by a party or if the commission orders an 
200.26  expedited proceeding on its own motion, the commission shall 
200.27  conduct within seven days of the decision a prehearing 
200.28  conference to schedule the evidentiary hearing.  During the 
200.29  prehearing conference, the commission shall establish a 
200.30  discovery schedule that requires all discovery to be completed 
200.31  no later than three days before the start of the hearing.  An 
200.32  evidentiary hearing under this subdivision must commence no 
200.33  later than 45 days after the commission's decision to order an 
200.34  expedited proceeding.  A quorum of the commission shall preside 
200.35  at any evidentiary hearing under this subdivision unless all the 
200.36  parties to the proceeding agree otherwise.  
201.1      (g) All pleadings submitted under this subdivision must be 
201.2   verified and all oral statements of fact made in a hearing or 
201.3   deposition under this subdivision must be made under oath or 
201.4   affirmation. 
201.5      (h) The commission shall issue a written decision and final 
201.6   order on the complaint within 15 days after the close of the 
201.7   evidentiary hearing under this subdivision.  On the day of 
201.8   issuance, the commission shall notify the parties by facsimile 
201.9   that a final order has been issued and shall provide each party 
201.10  with a copy of the final order. 
201.11     (i) The commission may extend any time periods under this 
201.12  subdivision if all parties to the proceeding agree to the 
201.13  extension or if the commission finds the extension is necessary 
201.14  to ensure a just resolution of the complaint. 
201.15     (j) Except as otherwise provided in this subdivision, an 
201.16  expedited proceeding under this subdivision shall be governed by 
201.17  the following procedural rules: 
201.18     (1) the parties shall have the discovery rights provided in 
201.19  Minnesota Rules, parts 1400.6700 to 1400.7000; 
201.20     (2) the parties shall have the right to cross-examine 
201.21  witnesses as provided in section 14.60, subdivision 3; 
201.22     (3) the admissibility of evidence and development of record 
201.23  for decision shall be governed by section 14.60 and Minnesota 
201.24  Rules, part 1400.7300; and 
201.25     (4) the commission may apply other procedures or standards 
201.26  included in the rules of the office of administrative hearings, 
201.27  as necessary to ensure the fair and expeditious resolution of 
201.28  disputes under this section. 
201.29     Sec. 60.  Minnesota Statutes 2000, section 237.51, 
201.30  subdivision 1, is amended to read: 
201.31     Subdivision 1.  [CREATION.] The ~~department of public~~ 
201.32  ~~service~~ commissioner of commerce shall administer through 
201.33  interagency agreement with the ~~department~~ commissioner of human 
201.34  services a program to distribute communication devices to 
201.35  eligible communication-impaired persons and contract with a 
201.36  local consumer group that serves communication-impaired persons 
202.1   to create and maintain a telecommunication relay service.  For 
202.2   purposes of sections 237.51 to 237.56, the department of ~~public~~ 
202.3   ~~service~~ commerce and any organization with which it contracts 
202.4   pursuant to this section or section 237.54, subdivision 2, are 
202.5   not telephone companies or telecommunications carriers as 
202.6   defined in section 237.01. 
202.7      Sec. 61.  Minnesota Statutes 2000, section 237.51, 
202.8   subdivision 5, is amended to read: 
202.9      Subd. 5.  [~~DEPARTMENT OF PUBLIC SERVICE~~ COMMISSIONER OF 
202.10  COMMERCE DUTIES.] In addition to any duties specified elsewhere 
202.11  in sections 237.51 to 237.56, the ~~department of public service~~ 
202.12  commissioner of commerce shall: 
202.13     (1) prepare the reports required by section 237.55; 
202.14     (2) administer the fund created in section 237.52; and 
202.15     (3) adopt rules under chapter 14 to implement the 
202.16  provisions of sections 237.50 to 237.56. 
202.17     Sec. 62.  Minnesota Statutes 2000, section 237.51, 
202.18  subdivision 5a, is amended to read: 
202.19     Subd. 5a.  [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 
202.20  addition to any duties specified elsewhere in sections 237.51 to 
202.21  237.56, the ~~department~~ commissioner of human services shall: 
202.22     (1) define economic hardship, special needs, and household 
202.23  criteria so as to determine the priority of eligible applicants 
202.24  for initial distribution of devices and to determine 
202.25  circumstances necessitating provision of more than one 
202.26  communication device per household; 
202.27     (2) establish a method to verify eligibility requirements; 
202.28     (3) establish specifications for communication devices to 
202.29  be purchased under section 237.53, subdivision 3; and 
202.30     (4) inform the public and specifically the community of 
202.31  communication-impaired persons of the program.  
202.32     (b) The ~~department~~ commissioner may establish an advisory 
202.33  board to advise the department in carrying out the duties 
202.34  specified in this section and to advise the ~~department of public~~ 
202.35  ~~service~~ commissioner of commerce in carrying out ~~its~~ duties 
202.36  under section 237.54.  If so established, the advisory board 
203.1   must include, at a minimum, the following communication-impaired 
203.2   persons: 
203.3      (1) at least one member who is deaf; 
203.4      (2) at least one member who is speech impaired; 
203.5      (3) at least one member who is mobility impaired; and 
203.6      (4) at least one member who is hard-of-hearing. 
203.7      The membership terms, compensation, and removal of members 
203.8   and the filling of membership vacancies are governed by section 
203.9   15.059.  Advisory board meetings shall be held at the discretion 
203.10  of the commissioner. 
203.11     Sec. 63.  Minnesota Statutes 2000, section 237.52, 
203.12  subdivision 2, is amended to read: 
203.13     Subd. 2.  [ASSESSMENT.] The ~~department of public~~ 
203.14  ~~service~~ commissioner of commerce shall annually recommend to the 
203.15  commission an adequate and appropriate surcharge and budget to 
203.16  implement sections 237.50 to 237.56.  The public utilities 
203.17  commission shall review the budget for reasonableness and may 
203.18  modify the budget to the extent it is unreasonable.  The 
203.19  commission shall annually determine the funding mechanism to be 
203.20  used within 60 days of receipt of the recommendation of the 
203.21  department and shall order the imposition of surcharges 
203.22  effective on the earliest practicable date.  The commission 
203.23  shall establish a monthly charge no greater than 20 cents for 
203.24  each customer access line, including trunk equivalents as 
203.25  designated by the commission pursuant to section 403.11, 
203.26  subdivision 1. 
203.27     Sec. 64.  Minnesota Statutes 2000, section 237.52, 
203.28  subdivision 4, is amended to read: 
203.29     Subd. 4.  [APPROPRIATION.] Money in the fund is 
203.30  appropriated to the ~~department of public service~~ commissioner of 
203.31  commerce to implement sections 237.51 to 237.56. 
203.32     Sec. 65.  Minnesota Statutes 2000, section 237.52, 
203.33  subdivision 5, is amended to read: 
203.34     Subd. 5.  [EXPENDITURES.] Money in the fund may only be 
203.35  used for: 
203.36     (1) expenses of the department of ~~public service~~ commerce, 
204.1   including personnel cost, public relations, advisory board 
204.2   members' expenses, preparation of reports, and other reasonable 
204.3   expenses not to exceed ten percent of total program 
204.4   expenditures; 
204.5      (2) reimbursing the commissioner of human services for 
204.6   purchases made or services provided pursuant to section 237.53; 
204.7      (3) reimbursing telephone companies for purchases made or 
204.8   services provided under section 237.53, subdivision 5; and 
204.9      (4) contracting for establishment and operation of the 
204.10  telecommunication relay service required by section 237.54. 
204.11     All costs directly associated with the establishment of the 
204.12  program, the purchase and distribution of communication devices, 
204.13  and the establishment and operation of the telecommunication 
204.14  relay service are either reimbursable or directly payable from 
204.15  the fund after authorization by the ~~department of public service~~ 
204.16  commissioner of commerce.  The ~~department of public~~ 
204.17  ~~service~~ commissioner of commerce shall contract with the message 
204.18  relay service operator to indemnify the local exchange carriers 
204.19  of the relay service for any fines imposed by the Federal 
204.20  Communications Commission related to the failure of the relay 
204.21  service to comply with federal service standards.  
204.22  Notwithstanding section 16A.41, the ~~department of public service~~ 
204.23  commissioner may advance money to the contractor of the 
204.24  telecommunication relay service if the contractor establishes to 
204.25  the ~~department's~~ commissioner's satisfaction that the advance 
204.26  payment is necessary for the operation of the service.  The 
204.27  advance payment may be used only for working capital reserve for 
204.28  the operation of the service.  The advance payment must be 
204.29  offset or repaid by the end of the contract fiscal year together 
204.30  with interest accrued from the date of payment.  
204.31     Sec. 66.  Minnesota Statutes 2000, section 237.54, 
204.32  subdivision 2, is amended to read: 
204.33     Subd. 2.  [OPERATION.] The ~~department of public~~ 
204.34  ~~service~~ commissioner of commerce shall contract with a local 
204.35  consumer organization that serves communication-impaired persons 
204.36  for operation and maintenance of the telecommunication relay 
205.1   system.  The ~~department~~ commissioner may contract with other 
205.2   than a local consumer organization if no local consumer 
205.3   organization is available to enter into or perform a reasonable 
205.4   contract or the only available consumer organization fails to 
205.5   comply with terms of a contract.  The operator of the system 
205.6   shall keep all messages confidential, shall train personnel in 
205.7   the unique needs of communication-impaired people, and shall 
205.8   inform communication-impaired persons and the public of the 
205.9   availability and use of the system.  The operator shall not 
205.10  relay a message unless it originates or terminates through a 
205.11  communication device for the deaf or a Brailling device for use 
205.12  with a telephone. 
205.13     Sec. 67.  Minnesota Statutes 2000, section 237.55, is 
205.14  amended to read: 
205.15     237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 
205.16     The ~~department of public service~~ commissioner of commerce 
205.17  must prepare a report for presentation to the commission by 
205.18  January 31 of each year.  Each report must review the 
205.19  accessibility of the telephone system to communication-impaired 
205.20  persons, review the ability of non-communication-impaired 
205.21  persons to communicate with communication-impaired persons via 
205.22  the telephone system, describe services provided, account for 
205.23  money received and disbursed annually for each aspect of the 
205.24  program to date, and include predicted future operation. 
205.25     Sec. 68.  Minnesota Statutes 2000, section 237.59, 
205.26  subdivision 2, is amended to read: 
205.27     Subd. 2.  [PETITION.] (a) A telephone company, or the 
205.28  commission on its own motion, may petition to have a service of 
205.29  that telephone company classified as subject to effective 
205.30  competition or emerging competition.  The petition must be 
205.31  served on the commission, the department ~~of public service~~, the 
205.32  office of the attorney general, and any other person designated 
205.33  by the commission.  The petition must contain at least: 
205.34     (1) a list of the known alternative providers of the 
205.35  service available to the company's customers; and 
205.36     (2) a description of affiliate relationships with any other 
206.1   provider of the service in the company's market. 
206.2      (b) At the time the company first offers a service, it 
206.3   shall also file a petition with the commission for a 
206.4   determination as to how the service should be classified.  In 
206.5   the event that no interested party or the commission objects to 
206.6   the company's proposed classification within 20 days of the 
206.7   filing of the petition, the company's proposed classification of 
206.8   the service is deemed approved.  If an objection is filed, the 
206.9   commission shall determine the appropriate classification after 
206.10  a hearing conducted pursuant to section 237.61.  In either 
206.11  event, the company may offer the new service to its customers 
206.12  ten days after the company files the price list and incremental 
206.13  cost study as provided in section 237.60, subdivision 2, 
206.14  paragraph (f). 
206.15     (c) A new service may be classified as subject to effective 
206.16  competition or emerging competition pursuant to the criteria set 
206.17  forth in subdivision 5.  A new service must be regulated under 
206.18  the emerging competition provisions if it is not integrally 
206.19  related to the provision of adequate local service or access to 
206.20  the telephone network or to the privacy, health, or safety of 
206.21  the company's customers, whether or not it meets the criteria 
206.22  set forth in subdivision 5. 
206.23     Sec. 69.  Minnesota Statutes 2000, section 237.768, is 
206.24  amended to read: 
206.25     237.768 [PERIODIC FINANCIAL REPORT.] 
206.26     In addition to the reports required under section 237.766, 
206.27  an alternative regulation plan may require a telephone company 
206.28  to file with the department an annual report of financial 
206.29  matters for the previous calendar year on or before May 1 of 
206.30  each year on report forms furnished by the department ~~of public~~ 
206.31  ~~service~~ in the same manner as is required of other telephone 
206.32  companies on August 1, 1995.  In addition, any company subject 
206.33  to a plan shall file with the commission and department a copy 
206.34  of any filings it has made to the Federal Communications 
206.35  Commission regarding the provisions of video programming 
206.36  provided through a video dial tone facility in Minnesota.  An 
207.1   alternative regulation plan may require a telephone company to 
207.2   maintain its accounts in accordance with the system of accounts 
207.3   prescribed for the company by the commission under section 
207.4   237.10. 
207.5      Sec. 70.  Minnesota Statutes 2000, section 239.01, is 
207.6   amended to read: 
207.7      239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 
207.8      The weights and measures division, referred to in this 
207.9   chapter as the division, is created under the jurisdiction of 
207.10  the department of ~~public service~~ commerce.  The division has 
207.11  supervision and control over all weights, weighing devices, and 
207.12  measures in the state. 
207.13     Sec. 71.  Minnesota Statutes 2000, section 239.10, is 
207.14  amended to read: 
207.15     239.10 [ANNUAL INSPECTION.] 
207.16     Subdivision 1.  [LIGHT CAPACITY SCALES; RETAIL 
207.17  ESTABLISHMENTS.] The director shall inspect light capacity 
207.18  scales in retail establishments such as grocery stores, other 
207.19  retail food establishments, or hardware stores, not more often 
207.20  than 36 months except when the owner requests an inspection, 
207.21  when the scale is inspected as part of an investigation, or when 
207.22  the scale has been repaired. 
207.23     Subd. 2.  [PACKAGED FOOD COMMODITIES.] The director shall 
207.24  inspect packaged food commodities in grocery stores and other 
207.25  retail food establishments not more often than 36 months except 
207.26  when the owner requests an inspection or when packages are 
207.27  inspected as part of an investigation. 
207.28     Subd. 3.  [OTHER WEIGHTS AND MEASURES.] The director shall 
207.29  inspect all weights and measures, except those specified in 
207.30  subdivisions 1 and 2, annually, or as often as deemed possible 
207.31  within budget and staff limitations. 
207.32     Sec. 72.  Minnesota Statutes 2000, section 325E.11, is 
207.33  amended to read: 
207.34     325E.11 [COLLECTION FACILITIES; NOTICE.] 
207.35     (a) Any person selling at retail or offering motor oil or 
207.36  motor oil filters for retail sale in this state shall: 
208.1      (1) post a notice indicating the nearest location where 
208.2   used motor oil and used motor oil filters may be returned at no 
208.3   cost for recycling or reuse, post a toll-free telephone number 
208.4   that may be called by the public to determine a convenient 
208.5   location, or post a listing of locations where used motor oil 
208.6   and used motor oil filters may be returned at no cost for 
208.7   recycling or reuse; or 
208.8      (2) if the person is subject to section 325E.112, 
208.9   subdivision 1, paragraph (b), post a notice informing customers 
208.10  purchasing motor oil or motor oil filters of the location of the 
208.11  used motor oil and used motor oil filter collection site 
208.12  established by the retailer in accordance with section 325E.112, 
208.13  subdivision 1, paragraph (b), where used motor oil and used 
208.14  motor oil filters may be returned at no cost. 
208.15     (b) A notice under paragraph (a) shall be posted on or 
208.16  adjacent to the motor oil and motor oil filter displays, be at 
208.17  least 8-1/2 inches by 11 inches in size, contain the universal 
208.18  recycling symbol with the following language: 
208.19     (1) "It is illegal to put used oil and used motor oil 
208.20  filters in the garbage."; 
208.21     (2) "Recycle your used oil and used motor oil filters."; 
208.22  and 
208.23     (3)(i) "There is a free collection site here for your used 
208.24  oil and used motor oil filters."; 
208.25     (ii) "There is a free collection site for used oil and used 
208.26  motor oil filters located at (name of business and street 
208.27  address)."; 
208.28     (iii) "For the location of a free collection site for used 
208.29  oil and used motor oil filters call (toll-free phone number)."; 
208.30  or 
208.31     (iv) "Here is a list of free collection sites for used oil 
208.32  and used motor oil filters." 
208.33     (c) The division of weights and measures ~~under~~ in the 
208.34  department of ~~public service~~ commerce shall enforce compliance 
208.35  with this section as provided in section 239.54.  The pollution 
208.36  control agency shall enforce compliance with this section under 
209.1   sections 115.071 and 116.072 in coordination with the division 
209.2   of weights and measures. 
209.3      Sec. 73.  Minnesota Statutes 2000, section 325E.115, 
209.4   subdivision 2, is amended to read: 
209.5      Subd. 2.  [COMPLIANCE; MANAGEMENT.] The division of weights 
209.6   and measures ~~under~~ in the department of ~~public service~~ commerce 
209.7   shall enforce compliance of subdivision 1 as provided in section 
209.8   239.54.  The commissioner of the pollution control agency shall 
209.9   inform persons governed by subdivision 1 of requirements for 
209.10  managing lead acid batteries.  
209.11     Sec. 74.  Minnesota Statutes 2000, section 326.243, is 
209.12  amended to read: 
209.13     326.243 [SAFETY STANDARDS.] 
209.14     All electrical wiring, apparatus and equipment for electric 
209.15  light, heat and power, alarm and communication systems shall 
209.16  comply with the rules of the department of ~~public service, the~~ 
209.17  ~~commissioner of~~ commerce~~,~~ or the department of labor and 
209.18  industry, as applicable, and be installed in conformity with 
209.19  accepted standards of construction for safety to life and 
209.20  property.  For the purposes of this chapter, the rules and 
209.21  safety standards stated at the time the work is done in the then 
209.22  most recently published edition of the National Electrical Code 
209.23  as adopted by the National Fire Protection Association, Inc. and 
209.24  approved by the American National Standards Institute, and the 
209.25  National Electrical Safety Code as published by the Institute of 
209.26  Electrical and Electronics Engineers, Inc. and approved by the 
209.27  American National Standards Institute, shall be prima facie 
209.28  evidence of accepted standards of construction for safety to 
209.29  life and property; provided further, that in the event a 
209.30  Minnesota Building Code is formulated pursuant to section 
209.31  16B.61, containing approved methods of electrical construction 
209.32  for safety to life and property, compliance with said methods of 
209.33  electrical construction of said Minnesota Building Code shall 
209.34  also constitute compliance with this section, and provided 
209.35  further, that nothing herein contained shall prohibit any 
209.36  political subdivision from making and enforcing more stringent 
210.1   requirements than set forth herein and such requirements shall 
210.2   be complied with by all licensed electricians working within the 
210.3   jurisdiction of such political subdivisions.  
210.4      Sec. 75.  Minnesota Statutes 2000, section 484.50, is 
210.5   amended to read: 
210.6      484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 
210.7      A party wishing to have an appeal from an order of the 
210.8   ~~department of public service~~ public utilities commission, an 
210.9   election contest, a lien foreclosure, or a civil cause or 
210.10  proceeding of a kind commenced or appealed by a party in the 
210.11  court, tried in the city of Virginia shall, in the summons, 
210.12  notice of appeal in a matter, or other jurisdictional instrument 
210.13  issued, in addition to the usual provisions, print, stamp, or 
210.14  write thereon the words, "to be tried at the city of Virginia," 
210.15  and a party wishing a matter commenced or appealed by a party in 
210.16  the court tried at the city of Hibbing shall, in the summons, 
210.17  notice of appeal in a matter, or other jurisdictional instrument 
210.18  issued, in addition to the usual provisions, print, stamp, or 
210.19  write thereon the words, "to be tried at the city of Hibbing," 
210.20  and in a case where a summons, notice of appeal in a matter, or 
210.21  other jurisdictional instrument contains a specification, the 
210.22  case shall be tried at the city of Virginia, or the city of 
210.23  Hibbing, as the case may be, unless the defendant shall have the 
210.24  place of trial fixed in the manner specified in this section. 
210.25     If the place of trial designated is not the proper place of 
210.26  trial, as specified in sections 484.44 to 484.52, the cause 
210.27  shall nevertheless be tried in a place, unless the defendant, in 
210.28  an answer in addition to the other allegations of defense, shall 
210.29  plead the location of the defendant's residence, and demand that 
210.30  the action be tried at the place of holding the court nearest 
210.31  the defendant's residence, as provided in this section; and in a 
210.32  case where the answer of the defendant pleads the place of 
210.33  residence and makes a demand of place of trial, the plaintiff, 
210.34  in reply, may admit or deny the allegations of residence, and if 
210.35  the allegations of residence are not expressly denied, the case 
210.36  shall be tried at the place demanded by the defendant, and if 
211.1   the allegations of residence are denied, the place of trial 
211.2   shall be determined by the court on motion. 
211.3      If there are several defendants, residing at different 
211.4   places in a county, the trial shall be at the place in which the 
211.5   majority of the defendants unite in demanding, or if the numbers 
211.6   are equal, at the place nearest the residence of the majority of 
211.7   the defendants. 
211.8      The venue of an action may be changed from one of these 
211.9   places to another, by order of the court, in the following cases:
211.10     (1) Upon written consent of the parties; 
211.11     (2) When it appears, on motion, that a party has been made 
211.12  a defendant for the purpose of preventing a change of venue as 
211.13  provided in this section; 
211.14     (3) When an impartial trial cannot be held in the place 
211.15  where the action is pending; or 
211.16     (4) When the convenience of witnesses and the ends of 
211.17  justice would be promoted by the change. 
211.18     Application for a change under clause (2), (3), or (4), 
211.19  shall be made by motion which shall be returnable and heard at 
211.20  the place of commencement of the action. 
211.21     Sec. 76.  [REPEALER.] 
211.22     Minnesota Statutes 2000, sections 216A.06; and 237.69, 
211.23  subdivision 3, are repealed. 
211.24     Sec. 77.  [INSTRUCTION TO REVISOR.] 
211.25     The revisor of statutes shall change the words "public 
211.26  service" to the word "commerce" in the following sections of 
211.27  Minnesota Statutes:  13.68; 13.681; 17A.04, subdivisions 6, 7, 
211.28  and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 
211.29  subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 
211.30  216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 
211.31  subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 
211.32  7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 
211.33  308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 
211.34  469.164, subdivision 2. 
211.35     Sec. 78.  [EFFECTIVE DATE.] 
211.36     This article is effective July 1, 2001. 
212.1                              ARTICLE 9 
212.2                      ELECTRICAL ACT AMENDMENTS 
212.3      Section 1.  Minnesota Statutes 2000, section 326.01, 
212.4   subdivision 5, is amended to read: 
212.5      Subd. 5.  [ELECTRICAL CONTRACTOR.] The term "~~electrical~~ 
212.6   contractor" means a person, partnership, or corporation 
212.7   operating a business that undertakes or offers to undertake to 
212.8   plan for, lay out, or install or to make additions, alterations, 
212.9   or repairs in the installation of electrical wiring, apparatus, 
212.10  or equipment for light, heat, power, and other purposes with or 
212.11  without compensation who is licensed as such by the board of 
212.12  electricity.  ~~An electrical~~ A contractor's license does not of 
212.13  itself qualify its holder to perform or supervise the electrical 
212.14  work authorized by holding any class of electrician's or other 
212.15  personal electrical license. 
212.16     Sec. 2.  Minnesota Statutes 2000, section 326.01, 
212.17  subdivision 6g, is amended to read: 
212.18     Subd. 6g.  [PERSONAL SUPERVISION.] The term "personal 
212.19  supervision" means that a person licensed ~~electrician~~ to perform 
212.20  electrical work oversees and directs the electrical work 
212.21  performed by an unlicensed person such that: 
212.22     (1) the licensed ~~electrician~~ person actually reviews the 
212.23  electrical work performed by the unlicensed person; 
212.24     (2) the licensed ~~electrician~~ person is immediately 
212.25  available to the unlicensed person at all times for assistance 
212.26  and direction; and 
212.27     (3) the licensed ~~electrician~~ person is able to and does 
212.28  determine that all electrical work performed by the unlicensed 
212.29  person is performed in compliance with section 326.243. 
212.30     The licensed ~~electrician~~ person is responsible for the 
212.31  compliance with section 326.243 of all electrical work performed 
212.32  by the unlicensed person.  
212.33     Sec. 3.  Minnesota Statutes 2000, section 326.01, is 
212.34  amended by adding a subdivision to read: 
212.35     Subd. 6i.  [DEMARCATION.] "Demarcation" means listed 
212.36  equipment as identified in Minnesota Rules, part 3800.3619, such 
213.1   as a transformer, uninterruptable power supply (UPS), battery, 
213.2   control panel, or other device that isolates technology circuits 
213.3   or systems from nontechnology circuits or systems, including 
213.4   plug or cord and plug connection. 
213.5      Sec. 4.  Minnesota Statutes 2000, section 326.01, is 
213.6   amended by adding a subdivision to read: 
213.7      Subd. 6j.  [RESIDENTIAL DWELLING.] A "residential dwelling" 
213.8   is an individual dwelling of a one-family, two-family, or 
213.9   multifamily dwelling as defined in the National Electrical Code 
213.10  pursuant to section 326.243, including its garage or accessory 
213.11  building. 
213.12     Sec. 5.  Minnesota Statutes 2000, section 326.01, is 
213.13  amended by adding a subdivision to read: 
213.14     Subd. 6k.  [POWER LIMITED TECHNICIAN.] The term "power 
213.15  limited technician" means a person having the necessary 
213.16  qualifications, training, experience, and technical knowledge to 
213.17  install, alter, repair, plan, lay out, and supervise the 
213.18  installing, altering, and repairing of electrical wiring, 
213.19  apparatus, and equipment for technology circuits or systems who 
213.20  is licensed as such by the board of electricity. 
213.21     Sec. 6.  Minnesota Statutes 2000, section 326.01, is 
213.22  amended by adding a subdivision to read: 
213.23     Subd. 6l.  [TECHNOLOGY CIRCUITS OR SYSTEMS.] "Technology 
213.24  circuits or systems" means class 2 or class 3 circuits or 
213.25  systems for, but not limited to, remote-control, signaling, 
213.26  control, alarm, and audio signal, including associated 
213.27  components as covered by National Electrical Code articles 640, 
213.28  645, 725, 760, 770, and 780 and which are isolated from circuits 
213.29  or systems other than class 2 or class 3 by a demarcation; 
213.30  antenna and communication circuits or systems as covered by 
213.31  chapter 8 of the National Electrical Code; and circuitry and 
213.32  equipment for outdoor landscape lighting systems that are 
213.33  supplied by the secondary circuit of an isolating power supply 
213.34  operating at 30 volts or less as covered by National Electrical 
213.35  Code article 411.  The planning, laying out, installing, 
213.36  altering, and repairing of technology circuits or systems must 
214.1   be performed in accordance with the applicable requirements of 
214.2   the National Electrical Code pursuant to section 326.243. 
214.3      Sec. 7.  Minnesota Statutes 2000, section 326.241, 
214.4   subdivision 1, is amended to read: 
214.5      Subdivision 1.  [COMPOSITION.] The board of electricity 
214.6   shall consist of 11 members, residents of the state, appointed 
214.7   by the governor of whom ~~at least~~ two shall be representatives of 
214.8   the electrical suppliers in the rural areas of the state, two 
214.9   shall be master electricians, who shall be contractors, two 
214.10  journeyman electricians, one registered consulting electrical 
214.11  engineer, two ~~licensed alarm and communication~~ power limited 
214.12  technicians, who shall be technology system 
214.13  contractors primarily engaged in the business of installing 
214.14  ~~alarm and communication~~ technology circuits or systems, and two 
214.15  public members as defined by section 214.02.  Membership terms, 
214.16  compensation of members, removal of members, the filling of 
214.17  membership vacancies, and fiscal year and reporting requirements 
214.18  shall be as provided in sections 214.07 to 214.09.  The 
214.19  provision of staff, administrative services and office space; 
214.20  the review and processing of complaints; the setting of board 
214.21  fees; and other provisions relating to board operations shall be 
214.22  as provided in chapter 214. 
214.23     Sec. 8.  Minnesota Statutes 2000, section 326.242, 
214.24  subdivision 1, is amended to read: 
214.25     Subdivision 1.  [MASTER ELECTRICIAN.] Except as otherwise 
214.26  provided by law, no person shall install, alter, repair, plan, 
214.27  lay out, or supervise the installing, altering, or repairing of 
214.28  electrical wiring, apparatus, or equipment for light, heat, 
214.29  power, or other purposes unless the person is:  (a) licensed by 
214.30  the board as a master electrician and (b)(i) the electrical work 
214.31  is for a licensed ~~electrical~~ contractor and the person is an 
214.32  employee, partner, or officer of, or is the licensed ~~electrical~~ 
214.33  contractor, or (ii) the electrical work is performed for the 
214.34  person's employer on electric wiring, apparatus, equipment, or 
214.35  facilities owned or leased by the employer which is located 
214.36  within the limits of property which is owned or leased and 
215.1   operated and maintained by the employer.  
215.2      (1) An applicant for a Class A master electrician's license 
215.3   shall (a) be a graduate of a four-year electrical course in an 
215.4   accredited college or university; or (b) shall have had at least 
215.5   one year's experience, acceptable to the board, as a licensed 
215.6   journeyman; or (c) shall have had at least five years' 
215.7   experience, acceptable to the board, in planning for, laying 
215.8   out, supervising and installing wiring, apparatus, or equipment 
215.9   for electrical light, heat and power.  
215.10     (2) As of August 1, 1985, no new Class B master 
215.11  electrician's licenses shall be issued.  An individual who has a 
215.12  Class B master electrician's license as of August 1, 1985 may 
215.13  retain the license and exercise the privileges it grants, which 
215.14  include electrical work limited to single phase systems, not 
215.15  over 200 amperes in capacity, on farmsteads or single-family 
215.16  dwellings located in towns or municipalities with fewer than 
215.17  2,500 inhabitants. 
215.18     Sec. 9.  Minnesota Statutes 2000, section 326.242, 
215.19  subdivision 2, is amended to read: 
215.20     Subd. 2.  [JOURNEYMAN ELECTRICIAN.] (a) Except as otherwise 
215.21  provided by law, no person shall install, alter, repair, or 
215.22  supervise the installing, altering, or repairing of electrical 
215.23  wiring, apparatus, or equipment for light, heat, power, or other 
215.24  purposes unless: 
215.25     (1) the person is licensed by the board as a journeyman 
215.26  electrician; and 
215.27     (2) the electrical work is: 
215.28     (i) for ~~an electrical~~ a contractor and the person is an 
215.29  employee, partner, or officer of the licensed ~~electrical~~ 
215.30  contractor; or 
215.31     (ii) performed under the supervision of a master 
215.32  electrician also employed by the person's employer on electrical 
215.33  wiring, apparatus, equipment, or facilities owned or leased by 
215.34  the employer that is located within the limits of property owned 
215.35  or leased, operated, and maintained by the employer. 
215.36     (b) An applicant for a Class A journeyman electrician's 
216.1   license shall have had at least four years of experience, 
216.2   acceptable to the board, in wiring for, installing, and 
216.3   repairing electrical wiring, apparatus, or equipment, provided 
216.4   however, that the board may by rule provide for the allowance of 
216.5   one year of experience credit for successful completion of a 
216.6   two-year post high school electrical course approved by the 
216.7   board. 
216.8      (c) As of August 1, 1985, no new Class B journeyman 
216.9   electrician's licenses shall be issued.  An individual who holds 
216.10  a Class B journeyman electrician's license as of August 1, 1985 
216.11  may retain the license and exercise the privileges it grants, 
216.12  which include electrical work limited to single phase systems, 
216.13  not over 200 amperes in capacity, on farmsteads or on 
216.14  single-family dwellings located in towns or municipalities with 
216.15  fewer than 2,500 inhabitants. 
216.16     Sec. 10.  Minnesota Statutes 2000, section 326.242, 
216.17  subdivision 3, is amended to read: 
216.18     Subd. 3.  [CLASS A INSTALLER.] Notwithstanding the 
216.19  provisions of subdivisions 1, 2, and 6, any person holding a 
216.20  class A installer license may lay out and install and supervise 
216.21  the laying out and installing of electrical wiring, apparatus, 
216.22  or equipment for major electrical home appliances on the load 
216.23  side of the main service on farmsteads and in any town or 
216.24  municipality with fewer than 1,500 inhabitants, which is not 
216.25  contiguous to a city of the first class and does not contain an 
216.26  established business of ~~an electrical~~ a contractor. 
216.27     Sec. 11.  Minnesota Statutes 2000, section 326.242, is 
216.28  amended by adding a subdivision to read: 
216.29     Subd. 3d.  [POWER LIMITED TECHNICIAN.] (a) Except as 
216.30  otherwise provided by law, no person shall install, alter, 
216.31  repair, plan, lay out, or supervise the installing, altering, or 
216.32  repairing of electrical wiring, apparatus, or equipment for 
216.33  technology circuits or systems unless: 
216.34     (l) the person is licensed by the board as a power limited 
216.35  technician; and 
216.36     (2) the electrical work is: 
217.1      (i) for a licensed contractor and the person is an 
217.2   employee, partner, or officer of, or is the licensed contractor; 
217.3   or 
217.4      (ii) performed under the supervision of a master 
217.5   electrician or power limited technician also employed by the 
217.6   person's employer on technology circuits, systems, apparatus, 
217.7   equipment, or facilities owned or leased by the employer that is 
217.8   located within the limits of property owned or leased, operated, 
217.9   and maintained by the employer. 
217.10     (b) An applicant for a power limited technician's license 
217.11  shall (i) be a graduate of a four-year electrical course in an 
217.12  accredited college or university; or (ii) have had at least 18 
217.13  months experience, acceptable to the board, in planning for, 
217.14  laying out, supervising and installing wiring, apparatus, or 
217.15  equipment for power limited systems, provided however, that the 
217.16  board may by rule provide for the allowance of up to six months 
217.17  (1,000 hours) of experience credit for successful completion of 
217.18  a two-year post high school electrical course or other technical 
217.19  training approved by the board. 
217.20     (c) The board may initially set experience requirements 
217.21  without rulemaking, but must adopt rules before July 1, 2002. 
217.22     (d) Licensees must attain eight hours of continuing 
217.23  education acceptable to the board every renewal period. 
217.24     (e) A person who has achieved a minimal score of 70 percent 
217.25  on an alarm and communication examination administered by the 
217.26  board before December 31, 2001, may obtain a power limited 
217.27  technician license without further examination by submitting an 
217.28  application and a license fee of $30. 
217.29     (f) A company holding an alarm and communication license as 
217.30  of July 1, 2001, may designate one person who may obtain a power 
217.31  limited technician license without passing an examination 
217.32  administered by the board by submitting an application and 
217.33  license fee of $30. 
217.34     Sec. 12.  Minnesota Statutes 2000, section 326.242, 
217.35  subdivision 5, is amended to read: 
217.36     Subd. 5.  [UNLICENSED PERSONS.] (a) An unlicensed person 
218.1   shall not perform electrical work unless the work is performed 
218.2   under the personal supervision of ~~an electrician~~ a person 
218.3   actually licensed to perform such work and the licensed 
218.4   electrician and unlicensed ~~person~~ persons are employed by the 
218.5   same employer.  Licensed ~~electricians~~ persons shall not permit 
218.6   unlicensed persons to perform electrical work except under the 
218.7   personal supervision of ~~an electrician~~ a person actually 
218.8   licensed to perform such work.  Unlicensed persons shall not 
218.9   supervise the performance of electrical work or make assignments 
218.10  of electrical work to unlicensed persons.  ~~Licensed electricians~~ 
218.11  Except for technology circuit or system work, licensed persons 
218.12  shall supervise no more than two unlicensed persons.  For 
218.13  technology circuit or system work, licensed persons shall 
218.14  supervise no more than five unlicensed persons. 
218.15     (b) Notwithstanding any other provision of this section, no 
218.16  person other than a master electrician or power limited 
218.17  technician shall plan or lay out electrical wiring, apparatus, 
218.18  or equipment for light, heat, power, or other purposes, except 
218.19  circuits or systems exempted from personal licensing by section 
218.20  326.242, subdivision 12, paragraph (b). 
218.21     (c) ~~Electrical~~ Contractors employing unlicensed persons 
218.22  performing electrical work shall maintain records establishing 
218.23  compliance with this subdivision, which shall designate all 
218.24  unlicensed persons performing electrical work and shall permit 
218.25  the board to examine and copy all such records as provided for 
218.26  in section 326.244, subdivision 6. 
218.27     Sec. 13.  Minnesota Statutes 2000, section 326.242, 
218.28  subdivision 6, is amended to read: 
218.29     Subd. 6.  [~~ELECTRICAL~~ CONTRACTOR'S LICENSE REQUIRED.] 
218.30  Except as otherwise provided by law, no person other than an 
218.31  employee, partner, or officer of a licensed ~~electrical~~ 
218.32  contractor, as defined by section 326.01, subdivision 5, shall 
218.33  undertake or offer to undertake to plan for, lay out, supervise 
218.34  or install or to make additions, alterations, or repairs in the 
218.35  installation of electrical wiring, apparatus, and equipment for 
218.36  light, heat, power, and other purposes with or without 
219.1   compensation unless the person obtains ~~an electrical~~ a 
219.2   contractor's license.  ~~An electrical~~ A contractor's license does 
219.3   not of itself qualify its holder to perform or supervise the 
219.4   electrical work authorized by holding any class of ~~electrician's~~ 
219.5   personal electrical license.  
219.6      Sec. 14.  Minnesota Statutes 2000, section 326.242, 
219.7   subdivision 6a, is amended to read: 
219.8      Subd. 6a.  [BOND REQUIRED.] Each ~~electrical~~ contractor 
219.9   shall give and maintain bond to the state in the penal sum of 
219.10  $5,000 conditioned upon the faithful and lawful performance of 
219.11  all work entered upon by the contractor within the state of 
219.12  Minnesota and such bond shall be for the benefit of persons 
219.13  injured or suffering financial loss by reason of failure of such 
219.14  performance.  The bond shall be filed with the board and shall 
219.15  be in lieu of all other license bonds to any political 
219.16  subdivision.  Such bond shall be written by a corporate surety 
219.17  licensed to do business in the state of Minnesota.  
219.18     Sec. 15.  Minnesota Statutes 2000, section 326.242, 
219.19  subdivision 6b, is amended to read: 
219.20     Subd. 6b.  [INSURANCE REQUIRED.] Each ~~electrical~~ contractor 
219.21  shall have and maintain in effect general liability insurance, 
219.22  which includes premises and operations insurance and products 
219.23  and completed operations insurance, with limits of at least 
219.24  $100,000 per occurrence, $300,000 aggregate limit for bodily 
219.25  injury, and property damage insurance with limits of at least 
219.26  $25,000 or a policy with a single limit for bodily injury and 
219.27  property damage of $300,000 per occurrence and $300,000 
219.28  aggregate limits.  Such insurance shall be written by an insurer 
219.29  licensed to do business in the state of Minnesota and each 
219.30  ~~electrical~~ contractor shall maintain on file with the board a 
219.31  certificate evidencing such insurance which provides that such 
219.32  insurance shall not be canceled without the insurer first giving 
219.33  15 days written notice to the board of such cancellation.  
219.34     Sec. 16.  Minnesota Statutes 2000, section 326.242, 
219.35  subdivision 6c, is amended to read: 
219.36     Subd. 6c.  [EMPLOYMENT OF MASTER ELECTRICIAN OR POWER 
220.1   LIMITED TECHNICIAN.] (a) No ~~electrical~~ contractor shall engage 
220.2   in business of electrical contracting unless the ~~electrical~~ 
220.3   contractor employs a licensed Class A master or Class B master 
220.4   electrician, or power limited technician, who shall be 
220.5   responsible for the performance of all electrical work in 
220.6   accordance with the requirements of sections 326.241 to 326.248 
220.7   or any rule or order adopted or issued under these sections.  
220.8   The classes of work for which the licensed ~~electrical~~ contractor 
220.9   is authorized shall be limited to those for which such Class A 
220.10  master electrician, or Class B master electrician, or power 
220.11  limited technician employed by the ~~electrical~~ contractor is 
220.12  licensed.  
220.13     (b) When ~~an electrical~~ a contractor's license is held by an 
220.14  individual, partnership, limited liability company, or 
220.15  corporation and the individual, one of the partners, one of the 
220.16  members, or an officer of the corporation, respectively, is not 
220.17  the responsible master electrician or power limited technician 
220.18  of record, all requests for inspection shall be signed by the 
220.19  responsible master electrician or power limited technician of 
220.20  record.  The designated responsible master electrician or power 
220.21  limited technician of record shall be employed by the 
220.22  individual, partnership, limited liability company, or 
220.23  corporation which is applying for ~~an electrical~~ a contractor's 
220.24  license and shall not be employed in any capacity as a licensed 
220.25  electrician or licensed technician by any other ~~electrical~~ 
220.26  contractor or employer designated in subdivision 12. 
220.27     (c) All applications for ~~electrical~~ contractor's licenses 
220.28  and all renewals shall include a verified statement that the 
220.29  applicant or licensee has complied with this subdivision. 
220.30     Sec. 17.  Minnesota Statutes 2000, section 326.242, 
220.31  subdivision 7, is amended to read: 
220.32     Subd. 7.  [EXAMINATION.] In addition to the requirements 
220.33  imposed herein and except as herein otherwise provided, as a 
220.34  precondition to issuance of ~~an electrician's~~ a personal license, 
220.35  each applicant must pass a written or oral examination given by 
220.36  the board to insure the competence of each applicant for 
221.1   license.  An oral examination shall be administered only to an 
221.2   applicant who furnishes a written statement from a certified 
221.3   teacher or other professional, trained in the area of reading 
221.4   disabilities stating that the applicant has a specific reading 
221.5   disability which would prevent the applicant from performing 
221.6   satisfactorily on a written test.  The oral examination shall be 
221.7   structured so that an applicant who passes the examination will 
221.8   not impair the applicant's own safety or that of others while 
221.9   acting as ~~an electrician~~ a licensed person.  No person failing 
221.10  an examination may retake it for six months thereafter, but 
221.11  within such six months the person may take an examination for a 
221.12  lesser grade of license.  Any licensee failing to renew a 
221.13  license for two years or more after its expiration shall be 
221.14  required to retake the examination before being issued a new 
221.15  license. 
221.16     ~~An applicant for journeyman's or special electrician's~~ 
221.17  ~~license who shall furnish evidence satisfactory to the board of~~ 
221.18  ~~having the requisite experience, upon written application,~~ 
221.19  ~~payment of the examination fee and fulfillment of all other~~ 
221.20  ~~requirements stated herein, may work as a journeyman or special~~ 
221.21  ~~electrician until the examination next following and the~~ 
221.22  ~~announcement of the results of such latter examination by the~~ 
221.23  ~~board.~~ 
221.24     An applicant for a personal license shall submit to the 
221.25  board an application and examination fee at the time of 
221.26  application.  Upon approval of the application, the board shall 
221.27  schedule the applicant for the next available examination, which 
221.28  shall be held within 60 days.  The applicant shall be allowed 
221.29  one opportunity to reschedule an examination without being 
221.30  required to submit another application and examination fee.  
221.31  Additionally, an applicant who fails an examination, or whose 
221.32  application has been disapproved, must submit another 
221.33  application and examination fee. 
221.34     Sec. 18.  Minnesota Statutes 2000, section 326.242, 
221.35  subdivision 8, is amended to read: 
221.36     Subd. 8.  [LICENSE AND RENEWAL FEES.] All licenses issued 
222.1   hereunder shall expire in a manner as provided by the board.  
222.2   Fees, as set by the board, shall be payable for examination, 
222.3   issuance and renewal of the following: 
222.4      (1) For examination: 
222.5      Class A Master. 
222.6      Class B Master. 
222.7      Class A Journeyman, Class B Journeyman, Installer, Alarm 
222.8   and Communications Contractor, Power Limited Technician, or 
222.9   Special Electrician. 
222.10     (2) For issuance of original license and renewal: 
222.11     Class A Master. 
222.12     Class B Master. 
222.13     Power Limited Technician. 
222.14     Class A Journeyman, Class B Journeyman, Installer, or 
222.15  Special Electrician. 
222.16     Electrical contractor. 
222.17     Alarm and Communication System Contractor. 
222.18     Technology Systems Contractor. 
222.19     Sec. 19.  Minnesota Statutes 2000, section 326.242, 
222.20  subdivision 10, is amended to read: 
222.21     Subd. 10.  [CONTINUATION OF BUSINESS BY ESTATES.] Upon the 
222.22  death of a master who is ~~an electrical~~ a contractor the board 
222.23  may permit the decedent's representative to carry on the 
222.24  business of the decedent for a period not in excess of six 
222.25  months, for the purpose of completing work under contract or 
222.26  otherwise to comply with sections 326.241 to 326.248.  The 
222.27  representative shall give such bond as the board may require 
222.28  conditioned upon the faithful and lawful performance of such 
222.29  work and such bond shall be for the benefit of persons injured 
222.30  or suffering financial loss by reason of failure of such 
222.31  performance.  Such bond shall be written by a corporate surety 
222.32  licensed to do business in the state of Minnesota.  Such 
222.33  representative shall also comply with all public liability and 
222.34  property damage insurance requirements imposed by this chapter 
222.35  upon a licensed ~~electrical~~ contractor. 
222.36     Sec. 20.  Minnesota Statutes 2000, section 326.242, 
223.1   subdivision 12, is amended to read: 
223.2      Subd. 12.  [EXEMPTIONS FROM LICENSING.] (a) A maintenance 
223.3   electrician who is supervised by the responsible master 
223.4   electrician for ~~an electrical~~ a contractor who has contracted 
223.5   with the maintenance electrician's employer to provide services 
223.6   for which ~~an electrical~~ a contractor's license is required or by 
223.7   a master electrician or an electrical engineer registered with 
223.8   the board and who is an employee of an employer and is engaged 
223.9   in the maintenance, and repair of electrical equipment, 
223.10  apparatus, and facilities owned or leased by the employer, and 
223.11  performed within the limits of property which is owned or leased 
223.12  and operated and maintained by said employer, shall not be 
223.13  required to hold or obtain a license under sections 326.241 to 
223.14  326.248; or 
223.15     (b) Employees of a licensed ~~alarm and communication~~ 
223.16  electrical or technology systems contractor or other employer 
223.17  where provided with supervision by a master electrician in 
223.18  accordance with subdivision 1, or power limited technician in 
223.19  accordance with subdivision 3d, paragraph (a), clause (1), are 
223.20  not required to hold a license under sections 326.241 to 326.248 
223.21  ~~while performing work authorized to be conducted by an alarm and~~ 
223.22  ~~communication contractor~~ for the planning, laying out, 
223.23  installing, altering, and repairing of technology circuits or 
223.24  systems except planning, laying out, or installing: 
223.25     (i) class 2 or class 3 remote control circuits that control 
223.26  circuits or systems other than class 2 or class 3 for the 
223.27  purpose of environmental control, temperature control, 
223.28  refrigeration, and process control, except circuits that 
223.29  interconnect these systems with systems exempted by this 
223.30  paragraph; 
223.31     (ii) class 2 or class 3 circuits in electrical cabinets, 
223.32  enclosures, or devices containing physically unprotected 
223.33  circuits other than class 2 or class 3; or 
223.34     (iii) technology circuits and systems in hazardous 
223.35  classified locations as covered by chapter 5 of the National 
223.36  Electrical Code; or 
224.1      (c) Companies and their employees that plan, lay out, 
224.2   install, alter, or repair class 2 and class 3 remote control 
224.3   wiring associated with plug or cord and plug connected 
224.4   appliances or systems other than security or fire alarm systems 
224.5   installed in a residential dwelling are not required to hold a 
224.6   license under sections 326.241 to 326.248; or 
224.7      ~~(c)~~ (d) Employees of any electric, communications, or 
224.8   railway utility, cable communications company as defined in 
224.9   section 238.02, or a telephone company as defined under section 
224.10  237.01 or its employees, or of any independent contractor 
224.11  performing work on behalf of any such utility, cable 
224.12  communications company, or telephone company, shall not be 
224.13  required to hold a license under sections 326.241 to 326.248: 
224.14     1.  While performing work on installations, materials, or 
224.15  equipment which are owned or leased, and operated and maintained 
224.16  by such utility, cable communications company, or telephone 
224.17  company in the exercise of its utility, antenna, or telephone 
224.18  function, and which 
224.19     (i) are used exclusively for the generation, 
224.20  transformation, distribution, transmission, or metering of 
224.21  electric current, or the operation of railway signals, or the 
224.22  transmission of intelligence and do not have as a principal 
224.23  function the consumption or use of electric current or provided 
224.24  service by or for the benefit of any person other than such 
224.25  utility, cable communications, or telephone company, and 
224.26     (ii) are generally accessible only to employees of such 
224.27  utility, cable communications, or telephone company or persons 
224.28  acting under its control or direction, and 
224.29     (iii) are not on the load side of the ~~meter~~ service point 
224.30  or point of entrance; or 
224.31     2.  While performing work on installations, materials, or 
224.32  equipment which are a part of the street lighting operations of 
224.33  such utility; or 
224.34     3.  While installing or performing work on outdoor area 
224.35  lights which are directly connected to a utility's distribution 
224.36  system and located upon the utility's distribution poles, and 
225.1   which are generally accessible only to employees of such utility 
225.2   or persons acting under its control or direction; or 
225.3      (d) An owner shall not be required to hold or obtain a 
225.4   license under sections 326.241 to 326.248. 
225.5      Sec. 21.  Minnesota Statutes 2000, section 326.2421, 
225.6   subdivision 2, is amended to read: 
225.7      Subd. 2.  [EXEMPTION.] ~~Except as provided in subdivision 3,~~ 
225.8   No person or company exempt under subdivision 1 or licensed 
225.9   pursuant to ~~subdivision 3~~ section 326.242, subdivisions 4 or 6, 
225.10  may be required to obtain any authorization, permit, franchise, 
225.11  or license from, or pay any fee, franchise tax, or other 
225.12  assessment to, any agency, department, board, or political 
225.13  subdivision of the state as a condition for performing any work 
225.14  described herein.  ~~The requirements of this section shall not~~ 
225.15  ~~apply to telephone companies as defined under section 237.01 nor~~ 
225.16  ~~to their employees, that are only engaged in the laying out,~~ 
225.17  ~~installation, and repair of telephone systems.~~ 
225.18     Sec. 22.  Minnesota Statutes 2000, section 326.2421, 
225.19  subdivision 9, is amended to read: 
225.20     Subd. 9.  [LIMITATION.] Nothing in this section prohibits a 
225.21  unit of local government from charging a franchise fee to the 
225.22  operator of a cable communications ~~system~~ company as defined in 
225.23  section 238.02. 
225.24     Sec. 23.  Minnesota Statutes 2000, section 326.243, is 
225.25  amended to read: 
225.26     326.243 [SAFETY STANDARDS.] 
225.27     All electrical wiring, apparatus and equipment for electric 
225.28  light, heat and power, ~~alarm and communication~~ technology 
225.29  circuits or systems shall comply with the rules of the 
225.30  department of public service, the commissioner of commerce, or 
225.31  the department of labor and industry, as applicable, and be 
225.32  installed in conformity with accepted standards of construction 
225.33  for safety to life and property.  For the purposes of this 
225.34  chapter, the rules and safety standards stated at the time the 
225.35  work is done in the then most recently published edition of the 
225.36  National Electrical Code as adopted by the National Fire 
226.1   Protection Association, Inc. and approved by the American 
226.2   National Standards Institute, and the National Electrical Safety 
226.3   Code as published by the Institute of Electrical and Electronics 
226.4   Engineers, Inc. and approved by the American National Standards 
226.5   Institute, shall be prima facie evidence of accepted standards 
226.6   of construction for safety to life and property; provided 
226.7   further, that in the event a Minnesota Building Code is 
226.8   formulated pursuant to section 16B.61, containing approved 
226.9   methods of electrical construction for safety to life and 
226.10  property, compliance with said methods of electrical 
226.11  construction of said Minnesota Building Code shall also 
226.12  constitute compliance with this section, and provided further, 
226.13  that nothing herein contained shall prohibit any political 
226.14  subdivision from making and enforcing more stringent 
226.15  requirements than set forth herein and such requirements shall 
226.16  be complied with by all licensed electricians working within the 
226.17  jurisdiction of such political subdivisions.  
226.18     Sec. 24.  Minnesota Statutes 2000, section 326.244, 
226.19  subdivision 1a, is amended to read: 
226.20     Subd. 1a.  [~~ALARM AND COMMUNICATION~~ TECHNOLOGY SYSTEMS.] (a)
226.21  The installation of ~~fire alarm systems as defined in article 760~~ 
226.22  ~~of the National Electrical Code,~~ the following technology 
226.23  circuits or systems except minor work performed by a contractor, 
226.24  must be inspected as provided in this section for compliance 
226.25  with the applicable provisions of ~~articles 725, 760, 770, 800,~~ 
226.26  ~~810, and 820 of the most recent edition of~~ the National 
226.27  Electrical Code and the applicable provisions of the National 
226.28  Electrical Safety Code, as those codes were approved by the 
226.29  American National Standards Institute: 
226.30     (i) remote control circuits controlling class 2 or class 3 
226.31  remote control circuits that control circuits or systems other 
226.32  than class 2 or class 3 for the purpose of environmental 
226.33  control, temperature control, refrigeration, and process 
226.34  control, except circuits that interconnect these systems 
226.35  exempted by section 326.242, subdivision 12, paragraph (b), 
226.36  other than fire alarm; class 2 or class 3 circuits in electrical 
227.1   cabinets, enclosures, or devices containing physically 
227.2   unprotected circuits other than class 2 or class 3; or 
227.3   technology circuits and systems in hazardous classified 
227.4   locations as covered by chapter 5 of the National Electrical 
227.5   Code; 
227.6      (ii) fire alarm systems as defined in article 760 of the 
227.7   National Electrical Code; 
227.8      (iii) critical health and medical facilities, including, 
227.9   but not limited to, anesthesia and resuscitative alarm and 
227.10  alerting systems, medical monitoring, and nurse call systems; 
227.11     (iv) process control systems used for automated production 
227.12  or process functions in manufacturing plants; and 
227.13     (v) physical security systems within detention facilities. 
227.14     (c) For the purposes of this subdivision "minor work" means 
227.15  the adjustment or repair and replacement of worn or defective 
227.16  parts of ~~an alarm or communication~~ a technology circuit or 
227.17  system.  Minor work may be inspected under this section at the 
227.18  request of the owner of the property or the person doing the 
227.19  work. 
227.20     (d) Notwithstanding this subdivision, if an electrical 
227.21  inspector ~~in the course of doing another inspection in a~~ 
227.22  ~~building~~ observes that ~~an alarm and communication~~ a contractor, 
227.23  employer, or owner has not complied with accepted standards when 
227.24  the work was performed, as provided in the most recent editions 
227.25  of the National Electrical Code and the National Electrical 
227.26  Safety Code as approved by the American National Standards 
227.27  Institute, the inspector may order the contractor, employer, or 
227.28  owner who has performed the work to file a request for 
227.29  electrical inspection, pay an inspection fee, and make any 
227.30  necessary repairs to comply with applicable standards and 
227.31  require that the work be inspected. 
227.32     Sec. 25.  Minnesota Statutes 2000, section 326.244, 
227.33  subdivision 2, is amended to read: 
227.34     Subd. 2.  [PROCEDURE.] (a) At or before commencement of any 
227.35  installation required to be inspected by the board, the 
227.36  ~~electrical~~ contractor, installer, special electrician, or owner 
228.1   making the installation shall submit to the board a request for 
228.2   inspection, in a form prescribed by the board, together with the 
228.3   fees required for the installation.  
228.4      (b) The fees required are a handling fee and an inspection 
228.5   fee.  The handling fee shall be set by the board in an amount 
228.6   sufficient to pay the cost of printing and handling the form 
228.7   requesting an inspection.  The inspection fee shall be set by 
228.8   the board in an amount sufficient to pay the actual costs of the 
228.9   inspection and the board's costs in administering the 
228.10  inspection.  All fees shall be set pursuant to the procedure of 
228.11  sections 14.001 to 14.69.  
228.12     (c) If the inspector finds that the installation is not in 
228.13  compliance with accepted standards of construction for safety to 
228.14  life and property as required by section 326.243, the inspector 
228.15  shall by written order condemn the installation or noncomplying 
228.16  portion thereof, or order service to the installation 
228.17  disconnected, and shall send a copy of the order to the board.  
228.18  If the installation or the noncomplying part will seriously and 
228.19  proximately endanger human life and property, the order of the 
228.20  inspector, when approved by the inspector's superior, shall 
228.21  require immediate condemnation or disconnection.  In all other 
228.22  cases, the order of the inspector shall permit a reasonable 
228.23  opportunity for the installation to be brought into compliance 
228.24  with accepted standards of construction for safety to life and 
228.25  property prior to the effective time established for 
228.26  condemnation or disconnection. 
228.27     (d) Copies of each condemnation or disconnection order 
228.28  shall be served personally or by mail upon the property owner, 
228.29  and the ~~electrical~~ contractor, installer, or special electrician 
228.30  making the installation, and other persons as the board by rule 
228.31  may direct.  An aggrieved party may appeal any condemnation or 
228.32  disconnection order by filing with the board a notice of appeal 
228.33  within ten days after (1) service upon the aggrieved party of 
228.34  the condemnation or disconnection order, if this service is 
228.35  required, or (2) filing of the order with the board, whichever 
228.36  is later.  The appeal shall proceed and the order of the 
229.1   inspector shall have the effect the order, by its terms, and the 
229.2   rules of the board provides.  The board shall adopt rules 
229.3   providing procedures for the conduct of appeals, including 
229.4   provisions for the stay of enforcement of the order of the 
229.5   inspector pending such appeal when justified by the 
229.6   circumstances. 
229.7      Sec. 26.  Minnesota Statutes 2000, section 326.244, 
229.8   subdivision 5, is amended to read: 
229.9      Subd. 5.  [EXEMPTIONS FROM INSPECTIONS.] Installations, 
229.10  materials, or equipment shall not be subject to inspection under 
229.11  sections 326.241 to 326.248: 
229.12     (1) when owned or leased, operated and maintained by any 
229.13  employer whose maintenance electricians are exempt from 
229.14  licensing under sections 326.241 to 326.248, while performing 
229.15  electrical maintenance work only as defined by board rule; 
229.16     (2) when owned or leased, and operated and maintained by 
229.17  any electric, communications or railway utility or telephone 
229.18  company in the exercise of its utility or telephone function; 
229.19  and 
229.20     (i) are used exclusively for the generations, 
229.21  transformation, distribution, transmission, or metering of 
229.22  electric current, or the operation of railway signals, or the 
229.23  transmission of intelligence, and do not have as a principal 
229.24  function the consumption or use of electric current by or for 
229.25  the benefit of any person other than such utility or telephone 
229.26  company; and 
229.27     (ii) are generally accessible only to employees of such 
229.28  utility or telephone company or persons acting under its control 
229.29  or direction; and 
229.30     (iii) are not on the load side of the ~~meter~~ service point 
229.31  or point of entrance; 
229.32     (3) when used in the street lighting operations of an 
229.33  electric utility; 
229.34     (4) when used as outdoor area lights which are owned and 
229.35  operated by an electric utility and which are connected directly 
229.36  to its distribution system and located upon the utility's 
230.1   distribution poles, and which are generally accessible only to 
230.2   employees of such utility or persons acting under its control or 
230.3   direction; 
230.4      (5) ~~when the installation, material, and equipment are~~ 
230.5   ~~alarm or communication systems laid out, installed, or~~ 
230.6   ~~maintained within residential units not larger than a duplex;~~ 
230.7      ~~(6)~~ when the installation, material, and equipment are in 
230.8   facilities subject to the jurisdiction of the federal Mine 
230.9   Safety and Health Act; or 
230.10     ~~(7)~~ (6) when the installation, material, and equipment is 
230.11  part of an elevator installation for which the elevator 
230.12  contractor, licensed under section 326.242, is required to 
230.13  obtain a permit from the authority having jurisdiction as 
230.14  provided by section 16B.747, and the inspection has been or will 
230.15  be performed by an elevator inspector certified by the 
230.16  department of administration and licensed by the board of 
230.17  electricity.  This exemption shall apply only to installations, 
230.18  material, and equipment permitted or required to be connected on 
230.19  the load side of the disconnecting means required for elevator 
230.20  equipment under National Electric Code Article 620, and elevator 
230.21  communications and alarm systems within the machine room, car, 
230.22  hoistway, or elevator lobby. 
230.23     Sec. 27.  Minnesota Statutes 2000, section 326.244, 
230.24  subdivision 6, is amended to read: 
230.25     Subd. 6.  [SITE INSPECTIONS.] The board may, without 
230.26  advance notice, inspect any site at which electrical work is 
230.27  being performed or has been performed or where records 
230.28  concerning the performance of electrical work are kept for 
230.29  purposes of ensuring compliance with sections 326.241 to 326.248 
230.30  or any rule or order adopted or issued under these sections.  
230.31  With respect to electrical work performed at or records kept in 
230.32  an occupied private dwelling, all inspections permitted by this 
230.33  subdivision shall occur during normal business hours and shall 
230.34  be preceded by advance notice, which need not be in writing.  
230.35  The board shall have the authority to examine and copy all 
230.36  records concerning the performance of electrical work and to 
231.1   question in private all persons employed by ~~an electrical~~ a 
231.2   contractor or on the site.  No person shall retaliate in any 
231.3   manner against any employee or person who is questioned by, 
231.4   cooperates with, or provides information to the board, its 
231.5   complaint committee, or the attorney general. 
231.6      Sec. 28.  [TERMS FOR POWER LIMITED CONTRACTORS AND POWER 
231.7   LIMITED TECHNICIANS.] 
231.8      The term of one of the power limited contractors appointed 
231.9   under Minnesota Statutes, section 326.241, subdivision 1, shall 
231.10  expire after two years.  That person's successor shall be 
231.11  appointed for a four-year term. 
231.12     Sec. 29.  [INSTRUCTION TO REVISOR.] 
231.13     The revisor shall delete the term "alarm and communication,"
231.14  "alarm and communication system contractor," or "alarm and 
231.15  communication contractor" from Minnesota Statutes, sections 
231.16  299M.03, 326.242, 326.243, and 326.244 and the citation to 
231.17  section 326.2421 from Minnesota Statutes, section 299M.03. 
231.18     Sec. 30.  [REPEALER.] 
231.19     (a) Minnesota Statutes, section 326.01, subdivision 6d; 
231.20  326.2421, subdivisions 3, 4, 6, and 8, are repealed. 
231.21     (b) Minnesota Rules, part 3800.3500, subpart 12, is 
231.22  repealed.