Additional Nuclear Storage Approved

Prepared by

MINNESOTA HOUSE OF REPRESENTATIVES PUBLIC INFORMATION SERVICES

175 STATE OFFICE BUILDING ST. PAUL, MINNESOTA 55155-1298 (651) 296-2146

1 Minnesota House of Representatives Public Information Services Office

Director Barry LaGrave Editor/Assistant Director Michelle Kibiger Assistant Editor Mike Cook Art & Production Coordinator Paul Battaglia Writers Miranda Bryant Patty Janovec Jeff Jones Tom Lonergan Chief Photographer Tom Olmscheid Photographers Kristine Larsen Andrew VonBank Office Manager Nicole Wood Staff Assistants Christy Novak Joe Rude

New Laws 2003 was published by the Minnesota House of Representatives Public Information Services Office as a service of the Minnesota Legislature. Staff members collected, wrote, verified, and coordinated the information to produce the publication. The 2003 edition is a culmination of effort involving many other individuals and departments: the House Research Department, the House Fiscal Analysis Department, the Office of the Chief Clerk, the House Index Department, and the Office of the Revisor of Statutes.

Cover design by Paul Battaglia Photograph by Andrew VonBank

2 Introduction

The 83rd Session of the Minnesota Legislature convened Overall, the list of accomplishments from the on Jan. 7, 2003, and adjourned at midnight May 19, 2003, 2003 session includes a change in the way aid to local gov- the last day lawmakers could meet as specified by the Min- ernments is calculated; a number of benefit adjustments nesota Constitution. to the state’s health care, public assistance, long-term care, A total of 59 legislative days were used — one day short and child-care programs; 2 a.m. bar closing; a 24-hour of half the biennial allotment of 120 legislative days. (A waiting period for abortions; a change in the way hand- legislative day is counted when a quorum of either the gun permits are issued; and the replacement of the Profile House or Senate is present to conduct business as a body.) of Learning with a new set of academic standards for the The task of resolving a $4.5 billion projected budget deficit state’s public school students. took longer than expected, and for the eighth time since 1994 New Laws 2003 is divided into five major parts: (and 43rd time in state history) a special session was needed. First, the Highlights section beginning on page 9 is writ- Both bodies approved only two omnibus bills — the higher ten in an easy-to-read style for those who want a quick education finance bill and the environment and natural re- overview of legislation approved in 2003. sources, agriculture, economic development, and housing Second, the Vetoed Bills section lists all the bills that finance bill — before the constitutional deadline. were vetoed and line-item vetoed by the governor and syn- Gov. Tim Pawlenty did not waste any time, calling leg- opses of his reasons for doing so. islators back to work at 11 a.m. May 20. The state govern- Third, the Bills in Limbo section describes some of the ment finance bill and judiciary finance bill were passed bills discussed in 2003, but not passed by both the House that day. and Senate. Because this is the first year of the two-year However, a number of other agreements were yet to be spending cycle, these bills remain alive, or viable, for con- resolved, and negotiators kept to their task through the sideration next year. Memorial Day weekend in hopes of ending the session Fourth, the Summary section gives a technical summary soon thereafter. The tax and transportation bills were ap- of each approved bill as it appeared on the bill when it proved May 27, but the health and human services bill, a was sent to the governor. Also included is a listing of all major sticking point throughout the session, was not sections of Minnesota Statutes that the bill affects. passed until two days later. And fifth, the Index section provides a list of bills by The House adjourned the special session around 9 p.m. Chapter number, House file number, Senate file number, May 29, and the Senate about one hour later. Pawlenty bill title, effective date, and finally, by keywords. Many in- took his time to sign all bills passed in special session — dexes are included to make it as easy as possible for people signing the final five on June 12, two weeks after receiving to find what they need. them. By law, the governor has 14 days (Sundays are not If you wish to obtain a copy of a bill, call the House included, but holidays are) to act on special session bills Chief Clerk’s Office (651) 296-2314, or the Senate Infor- once they are received. mation Office (651) 296-0504. Ask for the bill by Chap- In 2003, 1,658 bills were introduced in the House and ter number, or by the House or Senate file number. 1,576 in the Senate. During the special session, the House Bills are also available on the Legislature’s World Wide introduced another 70 bills and the Senate introduced an Web site (http://www.leg.mn). Click here to search for additional 47. Of the 156 bills sent to the governor during bills on the site. both the regular and special sessions, two bills were ve- For further information, contact the House Public toed in full, and a portion of one other bill was line-item Information Services Office at (651) 296-2146 or vetoed. No vetoes were overridden during 2003. 1-800-657-3550. To reach the Senate Information Office call (651) 296-0504 or 1-888-234-1112.

3 4 Contents Introduction ...... 3 Highlights ...... 9

Topics

Agriculture ...... 9 Health ...... 37 Arts ...... 10 Higher Education ...... 42 Banking ...... 10 Housing ...... 44 Bonding ...... 10 Human Services ...... 45 Budget ...... 12 Humanities ...... 48 Business ...... 15 Immigration ...... 48 Children ...... 16 Industry ...... 48 Consumers...... 17 Insurance ...... 49 Crime ...... 19 Law ...... 50 Development ...... 21 Local Government ...... 53 Education ...... 22 Metro Affairs ...... 56 Elections ...... 25 Military ...... 57 Employment ...... 27 Recreation ...... 57 Energy ...... 28 Retirement...... 58 Environment ...... 29 Safety ...... 58 Ethics ...... 31 Taxes ...... 61 Family ...... 31 Technology ...... 63 Gambling ...... 31 Tourism ...... 63 Game & Fish ...... 32 Transportation ...... 64 Government ...... 32 Veterans ...... 66 Greater Minnesota ...... 36 Selected fees adopted in 2003 ...... 68

Vetoed Bills ...... 73 Bills in Limbo ...... 75 Summary...... 100 Committees of Origin Agriculture Policy ...... 100 Health & Human Services Policy ...... 109 Civil Law ...... 102 Jobs & Economic Development Finance ... 111 Commerce, Jobs & Judiciary Policy and Finance ...... 111 Economic Development Policy ...... 103 Regulated Industries...... 113 Education Policy...... 106 Taxes ...... 113 Environment & Natural Resources Policy 106 Transportation Policy ...... 114 Governmental Operations & Ways and Means ...... 115 Veterans Affairs Policy ...... 107 Health & Human Services Finance ...... 109 Special Session ...... 115

Indexes ...... 122 House and Senate Members ...... 140

New Laws 2003 by: Topic ...... 7 House File ...... 124 Title ...... 97 Senate File ...... 126 Chapter ...... 122 Effective Date ...... 128

Highlights Subject Index ...... 131

5 6 Highlights by Topic

AGRICULTURE New academic standards ...... 24 HIGHER EDUCATION Policy provisions ...... 9 Pledging allegiance ...... 24 Funding college, grants ...... 42 In honor of Gov. Freeman ...... 9 Changing a department name ...... 25 University, MnSCU funding, policies ...... 42 Regulating warranty work ...... 10 ELECTIONS Mayo Medical Foundation ...... 43 BANKING Political party designations ...... 25 State grant changes ...... 43 Hours, policy changes ...... 10 Federal conformity ...... 26 Other policy issues ...... 43 BONDING Ballot question deadline ...... 26 HOUSING Township special elections ...... 26 $231 million law signed ...... 10 Security deposits ...... 44 Arts...... 11 EMPLOYMENT Condemnation hearings ...... 44 Education Department ...... 11 Dollars for the unemployed ...... 27 Redefining a displaced person ...... 44 Flooding aid ...... 11 Unnecessary agency licensing ...... 27 MHFA housekeeping ...... 45 Parks and recreation ...... 11 License renewal ...... 27 Housing corporations created ...... 45 Manufactured home titles ...... 45 Other projects ...... 12 ENERGY BUDGET Additional nuclear storage approved ...... 28 HUMAN SERVICES ‘Hogs, frogs, and jobs’ ...... 12 Saving money ...... 29 Benefits adjusted, work programs begun ...... 45 DNR, PCA, Agriculture ...... 12 Welfare changes ...... 46 ENVIRONMENT Long-term care ...... 46 Jobs and housing ...... 12 Limiting arsenic in fertilizers ...... 29 Other agencies ...... 12 Health care ...... 46 Solid waste plans ...... 29 Child-care assistance ...... 47 Revising road construction permits ...... 13 Drainage authority alternatives ...... 29 Developing ATV trails ...... 13 Prescription drugs ...... 47 Land transactions approved ...... 29 Continuing care, mental health initiatives . 47 Increasing fees ...... 13 Sprinklin’ in the rain ...... 30 No mourning dove hunt ...... 13 Managed care, programming projects ...... 47 Management change ...... 30 Transfers approved ...... 48 Retaining airline jobs ...... 13 Soil and water policies ...... 30 Supporting ethanol ...... 13 Simplifying legal requirements ...... 48 Chronic wasting disease control ...... 14 FAMILY INDUSTRY Reviewing feedlots ...... 14 Parental history ...... 31 Extended testing time ...... 48 Workforce issues ...... 14 Custody changes ...... 31 Maintaining closed mines ...... 48 Emergency housing ...... 14 GAMBLING INSURANCE Flooding reconstruction ...... 14 Linking bingo games ...... 31 Health insurance purchasing alliances ...... 49 Further study required ...... 14 GOVERNMENT Notifying homeowners of cancellation ...... 49 2003 adjustments ...... 14 Funding state departments, offices ...... 32 Insurance guaranty changes ...... 49 BUSINESS Appropriations ...... 32 Terrorism coverage ...... 49 Later bar closing time ...... 15 New policies, studies ...... 32 LAW Clarifying disclosure requirements ...... 15 Cost saving measures ...... 32 Courts, corrections, safety funding ...... 50 New investors ...... 15 Gambling issues, fees ...... 33 Court system ...... 50 Timber sales modernized ...... 16 Contracts for services ...... 33 Probation changes ...... 50 CHILDREN Lobbyists ...... 33 Corrections ...... 50 Substitute teachers ...... 16 Insurance changes ...... 33 Public safety ...... 51 Other provisions ...... 34 DNA collection ...... 51 CONSUMERS Public and private data ...... 34 Fair phone competition ...... 17 New crimes, penalties ...... 51 State treasurer duties ...... 34 Public defense ...... 52 Phone bill assistance ...... 17 Cost disclosure ...... 35 Correcting burial errors ...... 18 Public safety officer benefits ...... 52 Claims bill vetoed, revived ...... 35 Joint and several liability ...... 52 Membership travel contracts ...... 18 Capitol planning board clarifications ...... 35 Clearing obsolete law ...... 18 Broadcast immunity ...... 52 GREATER MINNESOTA Reporting crimes ...... 52 CRIME Creating lake districts ...... 36 Guardians for vulnerable Minnesotans ...... 53 Identity theft ...... 19 Watershed district billing authority...... 36 Property-related adjustments ...... 53 Victims rights laws ...... 19 Statements allowed ...... 19 HEALTH LOCAL GOVERNMENT Death certificate issuance ...... 20 Abortion consent and procedure ...... 37 Recuperating emergency costs ...... 53 Obtaining search warrants ...... 20 Reporting medical errors ...... 37 Official newspaper designation ...... 54 Fighting financial crimes ...... 20 Assuring long-term care coverage ...... 37 Conflict of interest change ...... 54 Background check information ...... 20 Alzheimer’s training ...... 38 Title examiner employment ...... 54 Breath-test accuracy ...... 20 Defining commitment examiners ...... 38 Controlling the cash ...... 55 Public safety radio compliance ...... 20 Allowing prescriptions ...... 38 Seeking office as employees ...... 55 Arson penalties ...... 21 Medical assistance choice ...... 39 Job descriptions ...... 55 Administering immunizations ...... 39 Clarifying interpretation ...... 55 DEVELOPMENT Disposing of bodies ...... 39 Met Council governance of Rockford ...... 55 Merger complete, department renamed ...... 21 Title protection ...... 40 Paying for parks ...... 21 METRO AFFAIRS Expanded job duties ...... 40 Met Council, legislative changes ...... 56 EDUCATION Regulating social work licenses ...... 40 School funding ...... 22 Regulation reviews ...... 40 MILITARY Appropriations ...... 22 Contract ratification ...... 41 Tuition reimbursement extended ...... 57 Early childhood family support ...... 23 Auditing nursing homes ...... 41 Earning full pay ...... 57 Charter schools ...... 23 Reducing costs ...... 41 RECREATION Health and safety ...... 23 Professional board powers ...... 42 Younger referees ...... 57 Vehicles, and vehicle safety...... 23 Youth officials ...... 57 Local projects, issues ...... 23 Other provisions ...... 24

7 SAFETY BILLS IN LIMBO GAME & FISH Handgun permit law ...... 58 Designating fair game and fish ...... 85 Hazardous duty expansion ...... 59 BUSINESS GREATER MINNESOTA Tougher penalties for OSHA violations ...... 59 Tobacco sales penalties ...... 75 Increasing rural speed limits ...... 86 Wireless space ...... 59 Bills considered, not passed ...... 75 HEALTH Expanding state fair police ...... 59 CHILDREN Redefining lighted vehicle lamps ...... 59 Data collection stalled ...... 86 Statute of limitations for abuse ...... 75 Limiting family planning grants ...... 87 Exemptions to seatbelt law ...... 60 Enhancing abuse penalty ...... 76 Emergency vehicle blue lights ...... 60 Health, dental coverage ...... 87 CONSUMERS HIGHER EDUCATION TAXES Credit card skimming ...... 76 Aid formulas, new taxing districts ...... 61 Allocating state grant dollars ...... 87 Local government aid ...... 61 CRIME Opt in plan for student fees stalls ...... 87 Other intergovernmental aids ...... 61 First-degree murder ...... 76 Studying abroad ...... 88 Property taxes ...... 61 Vehicle forfeiture woes ...... 76 State grant eligibility ...... 88 Tax-free zones ...... 61 Paying for treatment ...... 76 No grants for summer classes ...... 88 Biotechnology and health science zones .. 62 Security camera installers ...... 77 No voluntarism requirement ...... 88 Sales and use tax ...... 62 DEVELOPMENT INSURANCE Special taxes ...... 62 Labor contracts ...... 77 Ensuring coverage exists ...... 89 Local economic development ...... 62 EDUCATION LAW Other provisions ...... 62 Promoting abstinence ...... 77 Seatbelt ‘gag’ rule remains ...... 89 Common provisions ...... 63 Fighting an expulsion ...... 77 LOCAL GOVERNMENT TRANSPORTATION LOCAL GOVERNMENT History curriculum concerns ...... 78 Abolishing rail authorities ...... 90 Funding for roads, transit ...... 64 Charter school creation ...... 78 Opting out of mandates ...... 90 Transportation, public safety funding ...... 64 Small school aid ...... 78 Additional funds, advance construction .... 64 Earlier school year start ...... 79 RECREATION Transit funding, improvements ...... 64 Coaching contract ...... 79 Shooting ranges under fire ...... 90 Alcohol enforcement procedures ...... 65 Special education scholarships ...... 79 Overseeing Metrodome operations ...... 90 HOV lanes ...... 65 Student survey consent ...... 79 SAFETY Special license plates ...... 65 American Indian scholarship office ...... 80 Status check ID stalls ...... 91 Evaluating insurance coverage ...... 65 Mandate opt out ...... 80 Crib safety...... 91 Other policy provisions ...... 65 Contracting services ...... 80 Focusing emergency response ...... 92 Further study required ...... 66 Charter school plan stalls ...... 81 Sprinkler plan is doused ...... 92 Replacing displaced railroad land ...... 66 Fiscal impact notes ...... 81 State highway transfers ...... 66 TAXES ELECTIONS Cigarette tax proposal falters ...... 92 VETERANS Distorted photographs ...... 81 Vehicle tax break ...... 93 Historic Victory Memorial Drive ...... 66 Contributing campaign funds ...... 81 Tax haven countries ...... 93 Limiting records ...... 66 Political phone surveys ...... 82 Market value issues ...... 93 Hmong memorial ...... 67 EMPLOYMENT Delayed payment ...... 94 Program eligibility ...... 67 Job references ...... 82 Small resort assistance ...... 94 Salary and wage freeze ...... 82 TECHNOLOGY LINE-ITEM VETOES Operators as essential employees ...... 82 Nanotechnology institute ...... 94 Limiting contract negotiations ...... 83 AGRICULTURE Electronic library access ...... 94 Surcharge for student learning ...... 94 Pesticide fund transfer rejected ...... 73 FAMILY Child support changes stall ...... 83 TRANSPORTATION VETOED BILLS Surrogate pregnancies ...... 83 Gas tax, local sales tax options ...... 95 GAMBLING License fee revenue ...... 95 ENVIRONMENT Don’t bet on a racino…yet ...... 84 Wetlands dispute vetoed ...... 73 Another tribal casino ...... 84 GOVERNMENT Sports boards ...... 84 State agency rulemaking, local costs ...... 73 Authorizing sports fantasy games ...... 85 Don’t bet on it ...... 85

8 IGHLIGHTS H★ ★ ★

to retain ownership by becoming a permanent compliance with more than a dozen federal regu- Selected 2003 laws resident alien or a citizen of the United States lations regarding pesticide chemicals; food, Editor’s note: Highlights, the first within five years. drugs, color additives, fair packaging and label- section in New Laws 2003, is written for Effective Aug. 1, 2003, all gasoline sold or ing, as well as product rules covering dairy those who want a general overview of offered for sale in the state will be required to grades, fruits, vegetables, meat, poultry, and fish. major legislation that was approved dur- contain at least 10 percent denatured ethanol Rep. Howard Swenson (R-Nicollet) and Sen. ing the 2003 regular and special sessions. by volume. Besides the slight increase in the Steve Murphy (DFL-Red Wing) are the The new laws are categorized alpha- oxygenate blend to 10 percent, the law will re- sponsors. betically under topics, such as Agricul- quire that denatured ethanol must be the oxy- HF1213/SF990*/CH107 ture, Banking, and Bonding. Where bills genate used as the fuel additive. fall under more than one topic, cross The law will also set annual production references are cited. Appropriations bills goals for ethanol of up to 480 million gallons are discussed under the topics to which in 2008 and subsequent years. Existing pro- In honor of Gov. Freeman they apply. duction among the state’s 14 ethanol plants is A new office building for the state Agricul- For easy reference, House file (HF) an estimated 375 million gallons. ture and Health departments, expected to numbers, Senate file (SF) numbers, and State law governing produce grown by or- open in fall 2005, will be named in honor of Chapter (CH) numbers appear at the ganic farming methods will be updated to the late Orville L. Freeman, under a new law. end of each highlight. An asterisk after match the federal definition of “organic pro- Freeman died Feb. 20 at age 84. either the House file or the Senate file duction.” A 14-member organic advisory task He was the state’s 29th governor, serving indicates the version of the bill sent to the force will be created to advise the state agri- from 1955-61, and he served in two presiden- governor. Stories on major appropria- culture commissioner. tial administrations as the U.S. Secretary of tions laws include references to article The group will meet twice a year prior to Agriculture from 1961 to 1969. In 1954, Free- and section numbers wherever possible. June 30, 2005, to advise the Agriculture De- man was the first gubernatorial candidate to Effective dates are included in most of the partment on “expanding, improving, and de- be elected from the Democratic-Farmer- stories. veloping production and marketing of the Labor Party. The Highlights Subject Index begin- organic products of Minnesota agriculture.” Site preparation for the new $77.2 million ning on page 131 also is useful for finding In addition, the Agriculture Department building, to be located just off the main State information on specific subjects. will be required to provide comparable data Capitol complex, began in April. on price, yield, and profitability of organic The 342,000-square foot, five-story build- farms versus conventional farms, and infor- ing will house 1,000 state employees and be mation “on the positive and negative impacts connected to a new $60 million Agriculture of organic production on the environment and Health Laboratory Building by a skyway ★ AGRICULTURE and human health.” across Columbus Street. The law will also bring the state into Policy provisions The Agriculture Department currently Organic food growers will get new rules and promotional help, a mandatory ethanol content for gasoline will be set, and a number of state agriculture rules will be updated to match federal regulations, under a new law. However, conference committee members removed House-adopted provisions that would have amended state law to allow immi- grant holders of investment visas to purchase dairy farms in the state. Originally proposed in HF447, sponsored by Rep. Greg Blaine (R-Little Falls), the immi- grant farmer proposal would have eased the state’s restrictions on farmland ownership by legal aliens and non-American corporations. The state Agriculture Department supported the legislation to recruit dairy farmers, primarily from the Netherlands, who face land-use and livestock herd restrictions in their home country, and are interested in relocating to the United States. As amended by the conference committee, PHOTO BY ANDREW VONBANK the law will allow a few holders of E-2 invest- A new office building for the state Agriculture and Health departments will be named in honor of the late Orville L. Freeman, under a new law. Ground was broken for the building in June 2003. It is expected to ment visas who already own farms in the state open in the fall of 2005.

9 Highlights NEW LAWS 2003 leases an office building in St. Paul. The Health Funding college, grants prohibition against advertising on ATMs Department will move more than 700 employ- (See Higher Education, page 42) the location of other ATMs owned by the ees from a building on the University of bank. Pesticide fund transfer rejected Minnesota’s Minneapolis campus and other • Permits state bank board members to be non- Twin Cities metropolitan area locations. (See Vetoed Bills, page 73) residents of the state, provided they live within Rep. Dean Urdahl (R-Grove City), and Sen. a certain distance of the bank’s main office. D. Scott Dibble (DFL-Mpls) sponsored the ARTS • Allows a financial institution to post unrated law, which is effective Aug. 1, 2003. ★ general obligation securities of a local gov- HF1374*/SF1263/CH67 $231 million law signed: ernment as collateral against funds depos- Arts ited by that local government. (See Bonding, page 11) The sponsors were Rep. Greg Davids Regulating warranty work (R-Preston) and Sen. Dan Sparks (DFL- Warranty work performed by independent Austin). farm equipment dealers on behalf of farm HF1039/SF1069*/CH51 equipment manufacturers will now be regu- ★ BANKING lated, under a new law. Hours, policy changes Effective Aug. 1, 2003, the law requires State-regulated banks will be allowed to ★ BONDING manufacturers to reimburse dealer’s labor close early on Christmas Eve and New Year’s expenses at a reasonable rate, and to reimburse Eve, and bank employees may get loans with- $231 million law signed for parts at a rate 15 percent higher than the out special approval from the bank’s board of A number of bonding projects vetoed in dealer’s net price. In addition, manufacturers directors, under a new law. 2002 by Gov. Jesse Ventura fared better one must approve or deny dealers’ reimbursement The new law makes a variety of changes, year later under a new administration and are claims within 30 days, and pay claims that have some technical or clarifying in nature, to laws now law. been approved within 30 days. governing financial institutions, as well as to Rep. Jim Knoblach (R-St. Cloud) sponsored Historically, most farm equipment manu- laws regulating annuity contracts provided by the measure, which he described as “déjà vu facturers offer warranties on equipment sold insurance companies. all over again.” to farmers through authorized dealers. The Among other things, the new law: Included in the $230.9 million bonding new law stemmed from claims that some • Reduces the required frequency of financial package are allocations to the University of manufacturers do not reimburse dealers ad- examinations from 18 months to 24 months Minnesota, Minnesota State Colleges and equately for repairs performed under war- for financial institutions. Universities (MnSCU) system, and Depart- ranty, nor do they possess written warranty • Eliminates the requirement that banks open- ment of Natural Resources. Among other law reimbursement policies or agreements. ing new sites or relocating notify by mail components are transportation funding and Fifteen states, including North Dakota and other banks in the area, and instead allow continued flood assistance for Roseau. South Dakota, have farm equipment warranty them to declare the same in a legal notice in More than $108 million of the total goes laws. Minnesota has a similar law for warranty a qualified newspaper within the city. toward higher education, including $59.7 mil- work on lawn and garden equipment, all- • Eliminates the requirement that the board of lion for MnSCU and $48.7 million for the terrain vehicles, boats, snowmobiles, and li- directors of a bank approve loans to its di- University of Minnesota. (Art. 1, Secs. 2, 3) censed motor vehicles. rectors, officers, and employees. Such loans Among the projects funded are: Three implement dealers in Caledonia, would remain subject to other existing ap- • $24.7 million for the Translational Research Fergus Falls, and Madison, as well as the Farm proval provisions, however. Facility at the university’s Twin Cities cam- Equipment Dealers Association based in • Eliminates the prohibition against advertis- pus, but the appropriation must be matched Owatonna, endorsed the measure during tes- ing bank ownership of particular ATMs on with at least $12.3 million from non-state timony before House committees. the ATM itself, as well as eliminates the sources; The law also modifies the definition of farm • $10 million to convert Centennial Hall at St. implements to include heavy and utility Cloud State University from library to class- equipment. room use; Rep. Greg Davids (R-Preston) and Sen. Dal- • $10 million to acquire property near MnSCU las Sams (DFL-Staples) sponsored the law. campuses; HF547*/SF674/CH78 • $9.2 million for Southwest Minnesota State University library improvements; ‘Hogs, frogs, and jobs’ • $8.6 million for a social science building (See Budget, page 12) renovation at the University of Minnesota’s New investors Morris campus, requiring $400,000 from non-state sources; (See Business, page 15) PHOTO BY TOM OLMSCHEID State-regulated banks will be allowed to close • $8.4 million for Minnesota State University, Limiting arsenic in fertilizers early on Christmas Eve and New Year’s Eve, and Mankato to continue an athletic facility up- (See Environment, page 29) bank employees may get loans without special grade; and approval from the bank’s board of directors, under a new law.

10 NEW Highlights LAWS 2003

wastewater and municipal utility services, drinking water systems, and other infra- structure damaged by the flooding; • $1 million to help with road and bridge repair and replacement; • $500,000 to Roseau to relocate the flood damaged city hall, auditorium, library, museum, and police department out of the Roseau River flood plain; and • $400,000 to repair a structure on state High- way 220 north of Climax that was damaged. (Art. 2, Secs. 1-5) Parks and recreation The Department of Natural Resources will receive nearly $10.8 million, for a number of projects, including: • $2.7 million to complete renovation of the Como Park Conservatory in St. Paul, including renovation of the fern room and construction of a bonsai collection space, PHOTO BY TOM OLMSCHEID Included among the $48.7 million worth of bonding provisions for the University of Minnesota is an orchid growing and display house, and a $8 million for the renovation of Jones Hall on the Minneapolis campus. children’s activity zone; • $2.7 million to acquire land for wetlands or • $1.5 million for a renovation to provide addi- from library buildings or sites with handi- restore wetlands drained or filled as a result tional laboratory space at the Veterinary cap accessibility problems. of the repair, maintenance, or rehabilitation Diagnostic Laboratory on the University of The arts school and community center of existing public roads; Minnesota’s St. Paul campus. funds must also be met with non-state sources. •$1 million for acquisition of private lands In addition, renovations will be made at (Art. 1, Sec. 4) within the boundaries state park and recre- three of the University of Minnesota’s student Flooding aid ation areas; housing facilities to improve fire protection The law will continue to aid communities • $500,000 to construct the National Eagle Cen- systems. that were affected by the 2002 flooding in and ter in Wabasha, which requires $1 million in Sen. Keith Langseth (DFL-Glyndon) spon- around Roseau in northwestern Minnesota. non-state sources; and sored the Senate version. The law is effective Among the provisions are the following: • $475,000 to develop the Goodhue Pioneer June 13, 2003. • $3 million for flood hazard mitigation grants; Trail in southeastern Minnesota. (Art. 1, 2003 Special Session: HF8*/SFnone/CH20 • $1.12 million to help restore storm sewers, Secs. 5, 6) Arts One of the more contentious parts of the law is $25 million to help design, construct, furnish, and equip a new Guthrie Theater. At least three times the bonded amount must be committed to the project through non-state sources to get the bonding funds. The law also allocates $5 million to the Children’s Theatre for an expansion project. The theater must provide an equal amount from non-state sources to the project. Both theaters are in Minneapolis. (Art. 1, Sec. 8) Education Department The Department of Education’s allocation of $11.5 million is broken down as follows: • $5.5 million to build the Trollwood Perform- ing Arts School in Moorhead, • $5 million to acquire land and construct the Paul and Sheila Wellstone Center for Com- munity Building in St. Paul that will be a PHOTO BY ANDREW VONBANK welcoming center for new immigrants, and Included in the $230.9 million bonding law is $5 million to the Children’s Theatre for an expansion project. • $1 million to remove architectural barriers The Minneapolis theater must provide an equal amount from non-state sources to the project.

11 Highlights NEW LAWS 2003

The Minnesota Amateur Sports Commis- monitoring and regulation enforcement. A sion will receive $5 million to build an event ★ BUDGET $4.7 million appropriation to the agency will center at the National Sports Center in Blaine. support a clean water partnership initiative ‘Hogs, frogs, and jobs’ The law specifically designates that the money directed toward local governments. Another A new law will dedicate nearly $636 million not be used in supporting activities of the $4.6 million will fund the agency’s county from the state general fund toward the envi- National Youth Golf Center that was appro- feedlot administration grant program. The law ronment, agriculture, jobs and economic de- priated money in 1998 and was a point of con- consolidates a number of accounts and funds velopment, and emergency housing services tention during this year’s legislative session that support agency activities into the environ- over the next two years. over use of the prior funds allotted. (Art. 1, mental fund and the remediation fund. (Art. Total spending reaches more than $1 billion Sec. 7) 1, Sec. 2) when additional funding sources such as lot- The overall Agriculture Department bud- Other projects tery proceeds, license and permit fees, and fed- get for the 2004-05 biennium will be an esti- • $20 million to the Minnesota Department of eral dollars are added to the equation. mated $146 million, including anticipated Transportation for a local road improve- Gov. Tim Pawlenty line-item vetoed one federal funding, and additional licensing and ment loan program; item in the measure – a $400,000 biennial ap- fee revenues. (Art. 3, Sec. 2) • $3.5 million, to be matched by non-state propriation from the agricultural fund to the funds, for freight access improvements at Agricultural Utilization Research Institute. Jobs and housing the Winona harbor, including commercial (See related story, page 73.) The overall budget for jobs and housing in harbor dredging, overpass construction, Rep. Dennis Ozment (R-Rosemount) and the new law weighs in at $326.4 million. (Art. street widening, signal installation, and in- Sen. Steve Murphy (DFL-Red Wing) spon- 10, Sec. 1) tersection reconstruction; sored the legislation. Funding provisions are The jobs and economic development fi- • $1 million for Greater Minnesota transit effective July 1, 2003. nance budget provides for the new Depart- facilities; Here are some highlights. ment of Employment and Economic • $1 million to the Metropolitan Council for HF967/SF905*/CH128 Development (formerly the departments of the design of the Northwest Busway Corri- Economic Security and Trade and Economic DNR, PCA, Agriculture dor; and Development), Housing Finance Agency, La- More than half of the overall spending – nearly • $200,000 to the Minnesota Historical Society bor and Industry Department, Public Service $586 million – will be directed toward the De- for a grant to Jackson County to construct, Department, and the Minnesota Historical partment of Natural Resources (DNR) for re- furnish, and equip a new site for historic Society. sponsibilities including management of wildlife, Fort Belmont. (Art.1, Secs. 9, 10, 13) A partnership promoting biotechnology minerals, forestry, state parks, and game and fish and medical genomic research between the law enforcement. (Art. 1, Sec. 5) Funding for roads, transit University of Minnesota and Rochester’s The law will allocate $221 million to the Pol- (See Transportation, page 64) Mayo Clinic will be given $2 million. The ini- lution Control Agency for land, water, and air tiative, offered by the governor, will also have the clinic and the university each contributing $500,000. (Art. 10, Sec. 2) The historical society will receive $900,000 more than was proposed by the House budget, slightly lessening the agency’s 2004-05 budget biennium cut proposed by the House to $9.6 million. Overall, the society receives about $44.6 million in the law. The cuts, according to the historical society, will result in employee layoffs and scaled back services. (Art. 10, Sec. 8) The Minnesota Film and TV Board will receive $350,000 in the 2004-05 biennium. The House proposal would have eliminated the agency’s funding altogether. (Art. 10, Sec. 2) Other agencies The Office of Environmental Assistance will receive $52 million. Of that amount, $25 million is earmarked for grants to counties for recycling programs and solid waste management. (Art. 1, Sec. 3) Smaller biennial budget amounts include PHOTO BY ANDREW VONBANK $36 million for the Minnesota Zoological The omnibus bonding law allocates $2.7 million to complete renovation of the Como Park Conservatory Board and $31 million for the Board of Water in St. Paul, including renovation of the fern room and construction of a bonsai collection space, an orchid growing and display house, and a children’s activity zone. and Soil Resources. (Art. 1, Secs. 4, 7) Funding for the Science Museum of

12 NEW Highlights LAWS 2003

separate motorcycle state park permit will be created. (Art. 1, Secs. 45, 44) Various hunting, angling, and commercial fishing fees will also increase. Additionally, the law will raise water appropriation permit fees, eliminate the senior discount for certain state park camping, and enable the Minnesota Zoo to charge an entry fee for elementary school children on orga- nized field trips. (Art. 2, Sec. 53; Art. 1, Secs. 43, 46) The law increases many agriculture-related fees, including those covering food handlers, processors, inspections, and seeds and will establish a new set of fees to fund an expanded nursery and horticulture inspection program. (Arts. 3-8) No mourning dove hunt A House provision that would have authorized a mourning dove hunting season and a stamp earmarked for habitat improvement was removed in conference committee. PHOTO BY ANDREW VONBANK Mourning dove hunts have been banned in the Funding for the Science Museum of Minnesota is set at $1.5 million for the 2004-05 biennium, under a new state since 1947. (See related story, page 86.) law. The House and the governor had recommended eliminating museum funding beginning in fiscal year 2005. Retaining airline jobs Commercial airlines with corporate head- Minnesota will be set at $1.5 million over the watershed that drains into the defined metro- quarters in Minnesota will temporarily be ex- biennium. The House and the governor had politan area. (Art. 1, Sec. 113) empt from paying Petroleum Tank Release recommended eliminating museum funding Developing ATV trails Cleanup Fund fees until July 1, 2005, provided beginning in fiscal year 2005. (Art. 1, Sec. 8) The law directs the DNR to establish a con- the company directs the savings toward mini- The Minnesota Conservation Corps will tinuous 70-mile trail for off-highway vehicles mizing job losses. Beneficiaries will be North- receive just under $1.7 million as it transitions with four rest areas by April 1, 2007, and com- west, Sun Country, and Mesaba airlines. (Art. from the DNR to a private nonprofit entity. plete a formal trail system. 1, Sec. 172) (Art. 1, Sec. 6) The Environmental Quality Board is in- Supporting ethanol The law also includes $8.3 million for the structed to develop new environmental stan- The law provides $44.4 million for ethanol Board of Animal Health and $3.2 million for dards for motorized trail use, and certain state producer payments. Payments during fiscal the Agricultural Utilization Research Institute. forest motorized trails are temporarily ex- 2004 and 2005 will be based on a rate of The governor had recommended merging the empted from environmental review. 13 cents per gallon, 7 cents a gallon lower than two entities into the Agriculture Department. Other provisions will require all off-high- the previous rate. However, both agencies will remain way vehicles to be registered with the state and The law maintains the 13 cents per gallon independent. (Art. 3, Secs. 3-4) direct money toward local law enforcement rate for ethanol payments into the 2006-07 A number of environmental projects will be agencies for enforcement and public educa- biennium, but will keep the 20-cent-a-gallon funded through a $32.7 million appropriation tion expenditures. Qualified clubs will also be rate in statute. to the Legislative Commission on Minnesota eligible for safety and conservation education Resources. (Art. 1, Sec. 9) grant money. Revising road construction permits The law specifies guidelines for off-highway The law takes a conciliatory path toward vehicle operation in ditches and spells out environmental permit requirements for road other restricted areas. Enforcement efforts will construction projescts. One provision will ad- be bolstered with the establishment of a civil just the watershed district rulemaking process citation for operators who cause environmen- to allow for comment and appeal from trans- tal damage or break the law. portation authorities, rather than providing And the law will activate a damage account exemptions from permit requirements as a until July 1, 2005, to pay for the restoration of House transportation committee had property damaged by off-highway vehicles. proposed. (Art. 1, Secs. 18-34) PHOTO BY ANDREW VONBANK Another provision will allow one of the two Increasing fees acres under the 2:1 wetland replacement ratio No state parks will be closed under a new law, as Certain state park permit fees will be raised, some people feared during much of the 2003 for roadwork in the seven-county Twin Cities including the annual permit from $20 to $25 session. However, the law does increase certain metropolitan area to be placed in a major and the daily permit from $4 to $7, and a state park permit fees by $3 and $5.

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Environmental Qual- Statistics show that more than 1,000 people ity Board to study and are turned away from homeless shelters each evaluate environmen- day, due to lack of space. Officials estimate the tal review information cuts may result in programs not being able to and the public input support services for hundreds of others. process regarding Flooding reconstruction proposed feedlots of Roseau and surrounding areas will receive less than 1,000 animal $7.9 million to address flood damage through units, and report its a combination of direct appropriations and findings to the Legis- bond sales. (Art. 1, Sec. 5; Art 10, Secs. 2, 4) lature by Jan. 15, 2004. (See related story, page 11.) (Art. 3, Sec. 46) Further study required Workforce issues The bill will order studies on a number of The workforce de- issues, including: velopment fund will • state park funding (Art. 1, Sec. 9); PHOTO BY TOM OLMSCHEID gain more revenue, • motorized trail use on state lands (Art. 1, A new law provides $44.4 million for ethanol producer payments in 2004-05. through a two-year Sec. 168); The law also includes so-called catch-up increase in the special • impaired waters program (Art. 1, Sec. 2); payments for ethanol plants to eventually re- assessment rate employers pay to the fund. The • solid waste management funding (Art. 1, Sec. 3); cover $20 million cut by the governor from fund provides for the training of laid-off and • phosphorus in the wastewater stream (Art. 1, the program during fiscal year 2003 and re- unemployed workers, and did so in 2002 at Sec. 9); and duced payments during the upcoming bien- the amount of $66 million. • workforce service areas. (Art. 13, Sec. 38) nium. (Art. 3, Sec. 38) Under previous law, all employers paid the assessment for the first $22,000 earned annu- Chronic wasting disease control ally by each one of their employees. The pre- The law will earmark more than $800,000 vious rate levied seven-hundredths of during the next two years for a mandatory 1 percent per year on all taxable wages. surveillance program, administered by the As written in the new law, the rate will rise Board of Animal Health, to control chronic to one-tenth of 1 percent for two years, effec- wasting disease in cervidae animals, primarily tive Jan. 1, 2004, with additional discretion for deer and elk. (Art. 3, Sec. 3) the state to raise the rate to one-twelfth of Owners of captive deer or elk herds will be 1 percent in 2004 and 2005. The rate will fall required to register with the board and pay a back to seven-hundredths of 1 percent in 2006. fee of $10 per animal, up to a maximum of (Art. 12, Sec. 5) $100 annually. (Art. 3, Sec. 10) Minnesota Technology Inc., an economic The law will also give the DNR the option development organization serving Greater to seize and destroy live cervidae possessed in Minnesota, will be forced to transform from violation of the law. (Art. 3, Sec. 12) a state agency to a nonprofit, stand-alone en- Reviewing feedlots tity through an appropriation giving $3 mil- The law removes new and expanded live- lion in 2004, but nothing thereafter. The Senate stock feedlots between 300 and 1,000 animal plan called for giving it $11.6 million in the units from petition-generated environmental 2004-05 biennium. The House number was review if certain compliance and public dis- $2 million in 2004 only, and at zero thereafter. closure requirements are met. (Art. 3, Sec. 40) (Art. 10, Sec. 3) For example, 1,000 mature cows, weighing Apprentices enrolled in official apprenticeship less than 1,000 pounds each, would account job-training programs will be charged $30 per for 1,000 animal units, under state feedlot year, under the law. In addition to a $350,000 PHOTO BY KRISTINE LARSEN rules. And 1,000 pigs, weighing between allocation from the workforce development pro- Homeless shelters, transitional housing, and 55 pounds and 300 pounds would account for gram, the revenues will fund employees at the homeless prevention programs will receive 300 animal units. Labor and Industry Department overseeing the $14.1 million in the 2004-05 biennium, under a A Senate proposal requiring that a landowner apprentice program. The governor proposed new law. proposing a new feedlot or expanding an exist- cutting the staff. (Art. 11, Sec. 7) ing one provide notice to neighboring property Emergency housing 2003 adjustments owners not less than 20 business days before a Homeless shelters, transitional housing, Several spending adjustments and transfers feedlot permit will be issued is in the law. Previ- and homeless prevention programs will re- to the fiscal year 2003 budget were enacted ous law provided notice for not less than 10 busi- ceive $14.1 million in the 2004-05 biennium. under a new law. The adjustments were nec- ness days. (Art. 3, Sec. 39) (Art. 10, Secs. 4, 10) essary following the unallotments made by The law will also require the state

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Gov. Tim Pawlenty in February, according to provisions are effective July 1, 2003, as pro- the law’s sponsors. ★ BUSINESS vided in the omnibus transportation finance Effective June 13, 2003, the law cancels law. (See related story, page 64.) $110 million in general fund money, originally Later bar closing time The remainder of the law is effective part of an appropriation for road projects in Closing time in Minnesota’s drinking estab- May 29, 2003. 2000, and appropriates the same amount from lishments could be 2 a.m., brewpubs could sell HF719*/SF143/CH126 bond proceeds in the trunk highway fund. take-out jugs of their own beer, and more li- In addition, it authorizes the transfer of quor licenses for hotels and restaurants can $15 million from the state airports fund to ease be authorized by cities, under a new law. Clarifying disclosure requirements general fund shortfalls. The airports fund col- Supporters said the law would help draw Clearing up something done in a 2002 law lects revenue from aircraft registrations and convention business throughout the state and is the goal of a new law relating to automobile special aircraft fuel taxes, and funds are dis- keep people from crossing into Wisconsin and dealers. bursed for improvements to airport facilities. South Dakota to take advantage of later bar Under previous law, all advertising done by The fund currently has a surplus, though a closing times in those states. a motor vehicle dealer must disclose that the number of projects to use the funds are Opponents said it will create an extra bur- vehicle is being offered by a dealer in the fol- planned. The law will require the commis- den on law enforcement and may encourage lowing ways: using the dealership name, the sioner of finance to repay the airports fund excessive drinking. In addition, they said it may term “dealer,” or the abbreviation “DLR.” A by July 1, 2007. have the effect of drawing folks across the newspaper classified advertisement also Several other adjustments are also made, par- state’s border with North Dakota, which has a needed to include the dealer’s license number. ticularly in the areas of K-12 education finance 1 a.m. bar closing time. The new law, which is effective Aug. 1, 2003, and health and human services. Many of those Providing for several major changes in state is mostly a technical change in that the license program budgets are forecasted – meaning they regulation of alcoholic beverage sales, the law number is only necessary if the dealer’s true are based on an estimated number of recipients. will also: name or properly filed commercial assumed Some of the forecasts underestimated the use of • allow the sale of Minnesota produced wine at name is not included in the advertisement. those programs, and the appropriations need to the state fair, a first in the annual summer Said Rep. Larry Howes (R-Walker), House be adjusted accordingly. event’s 140-year history; sponsor of the new law, “There was some con- In addition, the law limits the appropria- • remove bowling centers, hotels, and restau- cern on the part of dealers that with the elections and transfers included in the bill so that rants from state liquor license limits; and tronic age someone could use that number for they do not occur more than once. • allow, for the first time, an on-sale liquor other purposes” if it were so easily accessible. The law also removes the 2003 expiration license to be issued to a racetrack – Elko No incidents have occurred yet, that he knows for the governor’s residence council and al- Speedway. of, he said. lows certain funds to be carried forward into Additional liquor licenses for 11 Minnesota Sen. Steve Murphy (DFL-Red Wing) was the 2004 to cover costs associated with employee cities will also be provided bythe law. Senate sponsor. layoffs. Rep. Michael Beard (R-Shakopee), who spon- HF741*/SF718/CH94 Sponsors were Rep. Jim Knoblach sored the law with Sen. Sandra Pappas (DFL- (R-St. Cloud) and Sen. Richard Cohen St. Paul), said the law preserves state restrictions on the number of on-sale licenses (DFL-St. Paul). New investors 2003 Special Session: HF3*/SF19/CH18 a city may issue to bars or taverns serving drinks only. State law has long restricted the A new law will allow certain member-owned cooperatives in an effort to encourage capital Claims bill vetoed, revived number of liquor licenses a city can issue investment. (See Government, page 35) based on population and a city’s classification. Cities authorized to issue additional on-sale Sponsored by Rep. Howard Swenson Funding college, grants liquor licenses (and the number of licenses) (R-Nicollet) and Sen. Rod Skoe (DFL- (See Higher Education, page 42) under the law include: Blaine, 15; Maple Grove, Clearbrook), the law will allow all forms of Woodbury, 12; St. Michael, Sartell, five; co-ops in Minnesota to take on investor- Pesticide fund transfer rejected members in addition to the traditional patron- (See Vetoed Bills, page 73) Waconia, Hastings, St. Joseph, three; Stillwater, two; Duluth and Thief River Falls, one. members. Investor-members may not neces- Fiscal impact notes A conference committee adopted the Sen- sarily purchase products from the co-op but (See Bills in Limbo, page 81) ate provisions lifting on-sale license limits for join the cooperative to earn a profit on an in- hotels and restaurants, and allowing brewpub vestment and to provide capital funds for co- Gas tax, local sales tax options operative expansion. (See Bills in Limbo, page 95) restaurants that make their own beer to sell 64-ounce containers called growlers. An off- The law is based on a law passed in Wyoming License fee revenue sale license for take-home brewpub beer during 2002, said Swenson, who added he was (See Bills in Limbo, page 95) would cap sales at 50 percent of the brewer’s asked to carry similar legislation by the Minne- production, or 1,000 barrels, whichever is less. sota Association of Cooperatives. In allowing for The 2 a.m. closing time provisions were ini- investor-members, the law largely combines por- tially contained in HF1493, sponsored by Rep. tions of the traditional cooperative statute with Dan Dorman (R-Albert Lea). Those portions of limited liability statute. The new law will take effect Aug. 1, 2003. HF984*/SF679/CH105

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Timber sales modernized Unnecessary agency licensing Focusing emergency response The Department of Natural Resources and the (See Employment, page 27) (See Bills in Limbo, page 92) logging community are hoping a new law will Sprinklin’ in the rain Tax haven countries simplify and standardize timber transactions. (See Environment, page 30) (See Bills in Limbo, page 93) Effective Aug. 1, 2003, the new law will update statutory language governing timber Cost disclosure Delayed payment sales, much of which has not been changed (See Government, page 35) (See Bills in Limbo, page 94) since 1925. For example, the new law will consolidate references to timber areas, sale areas, Manufactured home titles Small resort assistance or permit areas under one new term: forestry (See Housing, page 45) (See Bills in Limbo, page 94) administrative area. Maintaining closed mines Under prior law, the state had the right to (See Industry, page 48) take cut timber if the permit holder had not properly marked the wood. The new law will Official newspaper designation ★ CHILDREN instead designate the offense as trespassing. (See Local Government, page 54) Substitute teachers Another provision of the new law is de- Conflict of interest change Licensed child-care providers were granted signed to help the logging community, particu- (See Local Government, page 54) larly smaller outfits, with bond requirements more flexibility in filling-in for absent teach- by offering a “performance deposit” option Tougher penalties for OSHA violations ers, under a new law. that will entail a smaller bond amount. (See Safety, page 59) The law will allow “experienced aides” to Rep. Doug Lindgren (R-Bagley) and Sen. continue filling in for classroom teachers with- Exemptions to seatbelt law out supervision for up to one-quarter of a Tom Saxhaug (DFL-Grand Rapids) sponsored (See Safety, page 60) the legislation. center’s daily hours. Centers must notify par- HF859*/SF888/CH73 Aid formulas, new taxing districts ents that they use experienced aides and post (See Taxes, page 61) notice in the classroom where the aide works. Experienced aides must be at least 20 years Policy provisions Tobacco sales penalties (See Agriculture, page 9) old, be certified in first aid and cardio- (See Bills in Limbo, page 75) pulmonary resuscitation (CPR), and have two Regulating warranty work Authorizing sports fantasy games years or more of child-care experience includ- (See Agriculture, page 10) (See Bills in Limbo, page 85) ing at least four months at that child-care cen- Hours, policy changes ter. They are not required to be full-time Don’t bet on it employees or certified teachers. (See Banking, page 10) (See Bills in Limbo, page 85) The practice is already allowed under simi- ‘Hogs, frogs, and jobs’ lar legislation signed into law in 1999. Effec- (See Budget, page 12) tive Aug. 1, 2003, the new law removes a Fair phone competition (See Consumers, page 17) Phone bill assistance (See Consumers, page 17) Correcting burial errors (See Consumers, page 18) Membership travel contracts (See Consumers, page 18) Clearing obsolete law (See Consumers, page 18) Fighting financial crimes (See Crime, page 20) Background check information (See Crime, page 20) Merger complete, department renamed (See Development, page 21) Dollars for the unemployed PHOTO BY TOM OLMSCHEID A new law will allow experienced aides to fill in for classroom teachers without supervision for up to one- (See Employment, page 27) quarter of a center’s daily hours. Centers must notify parents that they use experienced aides and post notice in the classroom where the aide works.

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June 30, 2003 sunset date for that program, Child support changes stall Phone bill assistance allowing it to continue indefinitely. (See Bills in Limbo, page 83) A state program that provides a monthly House sponsor Rep. Barb Sykora (R-Excel- telephone service credit to eligible households Surrogate pregnancies sior) said child-care providers have been will change its participation rules, under a new (See Bills in Limbo, page 83) pleased with the practice. Since they are already law. employees of the center, experienced aides are Crib safety Sponsored by Rep. Joe Hoppe (R-Chaska) familiar with the students they supervise, she (See Bills in Limbo, page 91) and Sen. Steve Kelley (DFL-Hopkins), the new said. “So when they fill in for a teacher on a law will require that residents participating in day when they need a substitute it really works the state’s telephone assistance plan program out better than a substitute might,” Sykora said meet federal Lifeline telephone service dis- on the House floor. ★ CONSUMERS count eligibility requirements to receive a Changes suggested by opponents of the greater monthly credit on their phone bill. 1999 law were incorporated into this year’s Fair phone competition The law will “reduce the number of people version and some of those former opponents A new law will allow so-called “hard wire” on the state program,” Hoppe said. testified in favor of the bill in House telephone companies to offer service promo- Of the approximately 35,000 people in the committees. tional packages similar to those offered by less- state program, 25,000 also participate in the Sen. Claire Robling (R-Jordan) sponsored regulated wireless companies. federal Lifeline program, he said. Telephone the legislation in the Senate. Sponsored by Rep. Bob Gunther companies providing local service annually HF419*/SF796/CH57 (R-Fairmont) and Sen. James Metzen (DFL- advise phone customers of the program. South St. Paul), the new law will permit a tele- The law will drop the state requirements for Victims rights laws phone company to offer “bundled” service the program, which are income-based and (See Crime, page 19) packages and to establish package prices, limited to households with a disabled or eld- terms, and conditions, provided that the fol- erly (at least 65 years old) member. School funding lowing conditions are met: To continue in the program, a state resident (See Education, page 22) • each telecommunications service subject to will have to meet income-based federal pro- Parental history state Public Utilities Commission regula- gram requirements, including participation in (See Family, page 31) tion is available on a stand-alone basis; either Medicaid, food stamps, supplemental • the packaged rate or price does not exceed the security income, federal public housing assis- Custody changes sum of the unpackaged prices of each indi- tance, or low-income home energy assistance. (See Family, page 31) vidual component offered in the promotion; The state plan, regulated by the Department Medical assistance choice and of Commerce, is funded by a monthly charge (See Health, page 39) • the company lists all regulated and unregu- of 5 cents on each wire line (not wireless) in lated services included in the package. the state. The Public Utilities Commission has Benefits adjusted, work plans begun The new law will also amend state statute the authority to charge up to 10 cents per line. (See Human Services, page 45) to limit a customer from receiving the ben- According to the Human Services Depart- Managed care, programming projects efits of a service promotion package to nine ment Web site, residents who now participate (See Human Services, page 47) months. State law currently provides that no in both the state program and the federal Life- single promotion may be effective for longer line program can receive up to a $9.50 phone Guardians for vulnerable Minnesotans than 90 days at a time. bill credit per month. State program only par- (See Law, page 53) The law will allow primarily older compa- ticipants are capped at about $7 a month. The Younger referees nies whose core business remains wired con- new law will not affect the $9.50 credit. nected phones to “promote what they have and (See Recreation, page 57) A department official who had testified in create competition,” Gunther said. committee hearings said shifting the eligibil- Youth officials It will also amend existing law to relieve a ity requirements to the federal guidelines (See Recreation, page 57) telephone company from filing cost informa- could lead to more people being served in the tion with the state regarding a service promo- Tobacco sales penalties program at the higher monthly credit. The fed- tion package. eral Lifeline credit is not limited to elderly (See Bills in Limbo, page 75) Furthermore, the commission, state Com- participants, as the state program is. Statute of limitations for abuse merce Department, or attorney general’s of- The new law will also relieve the department (See Bills in Limbo, page 75) fice will be allowed to request company of conducting an annual review of eligible information if needed to determine whether a participants in the state program, an admin- Enhancing abuse penalty promotion meets legal requirements. istrative savings of $315,000, Hoppe said. (See Bills in Limbo, page 76) The scheduled Jan. 1, 2006 expiration date The measure takes effect Aug. 1, 2003. First-degree murder of state law governing experiments in alter- HF1115/SF1260*/CH79 (See Bills in Limbo, page 76) native regulation for phone companies will be repealed. Charter school creation The new law takes effect June 1, 2003. (See Bills in Limbo, page 78) HF671*/SF660/CH97

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Correcting burial errors Cemeteries that have interred bodies in the wrong burial spaces will be required to correct their mistakes, under a new law. The new law requires cemetery operators who have been informed or become aware of a wrongful burial to exhume the burial container and place it in the proper location. Ex- penses will be the responsibility of the cemetery. Rep. Connie Ruth (R-Owatonna), who sponsored the new law with Sen. Dick Day (R-Owatonna), said she agreed to carry the legislation after a constituent told how a cemetery inadvertently buried a body in the plot adjacent to the location where her granddaughter had been buried earlier. The family had purchased that plot and other vacant spots surrounding the granddaughter’s burial space for future inter- ment of deceased family members. When the mistake was realized, the family PHOTO BY TOM OLMSCHEID of the recently buried was asked to allow the Under a new law, travel clubs are prohibited from offering enticements that result in the club member disinterment of that burial container. The fam- paying more than would have been paid without membership. ily refused; a lawsuit ensued. prohibits certain practices that may involve Regulating warranty work Effective May 16, 2003, the new law allows misrepresentations of features of the travel. (See Agriculture, page 10) both families in any given case to avoid un- Supporters who testified before the House Hours, policy changes earthing a wrongfully buried body by agree- Commerce, Jobs and Economic Development ing to leave the situation as is. Policy Committee told how they were offered (See Banking, page 10) HF1234*/SF1252/CH48 free trips, only to find memberships to a travel Identity theft bureau system were required. The price for a (See Crime, page 19) one-year membership started at $8,000, but dropped to $1,058, according to a White Bear Allowing prescriptions Lake woman. (See Health, page 38) The law sponsors were Rep. Doug Meslow Administering immunizations (R-White Bear Lake) and Sen. Charles Wiger (See Health, page 39) (DFL-North St. Paul). HF501/SF420*/CH125 Security deposits (See Housing, page 44) PHOTO BY ANDREW VONBANK A new law requires cemetery operators who have Manufactured home titles become aware of a wrongful burial to exhume the (See Housing, page 45) burial container and place it in the proper location Clearing obsolete law at their expense. Both families in any given case A new law will expunge from state books an Health insurance purchasing alliances can avoid unearthing a wrongfully buried body by antiquated law designed to protect consumers (See Insurance, page 49) agreeing to leave the situation as is. from dishonest wagon canvas salesmen. Notifying homeowners of cancellation Effective Aug. 1, 2003, the new law will re- (See Insurance, page 49) peal a 1913 law requiring that all cotton can- Membership travel contracts vas manufacturers label canvases – used for Terrorism coverage Travel clubs offering fraudulent and ficti- awnings, wagon covers, tents, grain and hay (See Insurance, page 49) tious free and reduced vacations will find it covers, stable or tent tops – with their correct harder to do business in Minnesota, under a weight. Property-related adjustments new law. The law is one of several provisions intro- (See Law, page 53) The new law is targeted at non-legitimate duced over the course of the past several ses- Credit card skimming travel clubs. Unaffected would be major credit sions to eliminate obsolete laws from the (See Bills in Limbo, page 76) card issued services and agencies such as the state’s books. American Automobile Association, better Rep. Marty Seifert (R-Marshall) and Sen. Ensuring coverage exists known as AAA. Sharon Marko (DFL-Cottage Grove) were the (See Bills in Limbo, page 89) Effective Aug. 1, 2003, the law requires that sponsors. Vehicle tax break certain items be disclosed to consumers, pro- HF95*/SF291/CH4 (See Bills in Limbo, page 93) vides the right for them to cancel, and

18 NEW Highlights LAWS 2003

and prosecutors do not have the resources to preparing for a case or while in the courtroom. ★ CRIME deal with any but the biggest instances of mail No copies or transcripts may be made of the theft, according to supporters of the law. Min- tapes, and any person granted access to the Identity theft nesota prosecutors will be able to file mail theft tape must sign an agreement that they are Effective Aug. 1, 2003, a new law will allow charges in either the county where the theft aware of the laws regarding such tapes. Once local law enforcement agencies to take reports occurred or the county where the victim lives a case is finished, tapes must be returned to of identity theft from people living or work- or works in order to give them more flexibil- the prosecuting attorney. ing within their jurisdiction even if the crime ity in prosecuting the crime. A separate provision of the law provides that occurred somewhere else. Previously, depart- Any of the ID theft crimes in the law can be costs incurred for the examination of sexual ments typically did not take reports for crimes combined for the purposes of charging an of- assault victims must be borne by the county that occurred in other jurisdictions, in part fender who committed multiple instances of where the offense occurred whether or not the because it would skew crime statistics. The law theft within a six-month period. crime was reported to law enforcement. The will also let prosecutors bring charges against House Majority Leader Erik Paulsen law clarifies exactly what costs must be cov- identity thieves in either the county where the (R-Eden Prairie) and Sen. Leo Foley (DFL- ered and that counties may seek reimburse- theft occurred or the county where the victim Coon Rapids) sponsored the legislation. ment from a victim’s insurance company only lives. HF821/SF980*/CH106 with the victim’s permission. Reports filed in a county other than where Crime victims will be allowed to attend plea the crime took place will not count toward that agreement hearings under the law. It also al- county’s property crime statistics. lows them to express orally or in writing any The law also creates the crime of mail theft objections they have to the agreement reached. in Minnesota. It imposes a felony sentence of Victims rights laws Prosecutors would have to inform victims of up to three years in prison and a fine up to Several changes will be made to Minnesota’s their right to do this. Prior law only allowed $5,000 for stealing or opening mail addressed victims’ rights laws, under a new law. The this right in sentencing hearings. to someone else. changes include the way certain videotaped The law also clarifies the definition of pri- The provision (originally HF463) is in- proceedings are handled, what judicial hear- mary and secondary residences as they apply tended to crack down on an increasingly com- ings victims may attend, and who bears the to predatory offenders. mon practice where thieves obtain and use costs of certain medical examinations. Rep. Eric Lipman (R-Lake Elmo) and Sen. private information contained in letters sto- Videotaped interviews of child abuse vic- Mee Moua (DFL-St. Paul) sponsored the len from mailboxes or post offices. That in- tims will be more closely regulated under the legislation. formation can include photographs, ID cards, law, which takes effect Aug. 1, 2003 and ap- HF1278/SF964*/CH116 bank or credit card numbers, medical infor- plies to crimes committed on or after that date. mation, and social security numbers. Under the law, such tapes may only be used While already a federal crime, federal courts by prosecutors and defense attorneys while

Statements allowed Effective Aug. 1, 2003, a new law will allow Minnesota’s forensic scientists to submit reports regarding the handling of evidence in a criminal proceeding, rather than having to testify in person in the courtroom. Under the new law, courts can accept reports about who handled particular pieces of evidence without requiring scientists to verify those reports in person. Currently, forensic scientists from the state Bureau of Criminal Apprehension must appear in court to testify that a chain of custody report is accurate. Chain of custody reports detail when, where, and by whom pieces of evidence were handled. Rep. Eric Lipman (R-Lake Elmo), the House sponsor, said that such reports are relatively administrative matters that rarely become important in a criminal case. Much more important, he said, are reports detailing a scientist’s analysis of the evidence, which do not require scientists to appear in court. The law will now treat both types of reports PHOTO BY TOM OLMSCHEID the same way. Defense attorneys who wish to A new law creates the crime of mail theft in Minnesota. It imposes a felony sentence of up to three years challenge or question the reports can still in prison and a fine up to $5,000 for stealing or opening mail addressed to someone else.

19 Highlights NEW LAWS 2003 subpoena scientists up to 10 days before a trial. Fighting financial crimes was carried out if that information is gleaned Sen. Satveer Chaudhary (DFL-Fridley) was A new law will authorize the continuation from state databases. the Senate sponsor. of the state’s financial crimes task force estab- Though federal law says the specifics of a crime HF909/SF942*/CH29 lished in 2001. in a national database cannot be disclosed, such The task force, which was established to fa- a crime could still disqualify someone from a cilitate investigation of financial crimes that property management position. often cross jurisdictional boundaries, was set Rep. Paul Kohls (R-Victoria) and Sen. John Death certificate issuance to expire on June 30, 2003. It will now be con- Marty (DFL-Roseville) sponsored the Independent, contracted, and board- tinued indefinitely. legislation. certified forensic pathologists with the Min- Rep. Doug Meslow (R-White Bear Lake), HF731/SF926*/CH89 nesota Department of Corrections are permit- House sponsor of the law, said the task force ted to issue death certificates, effective has been working well in achieving cross- Aug. 1, 2003. jurisdictional cooperation. He also noted that Pathologists were previously called into the U.S. attorney for Minnesota is dedicating Breath-test accuracy criminal investigations to do the investigative $1 million in extraordinary restitution funds A new law will more clearly specify when work, but were unable to issue a death certifi- to help sustain operations of the task force. the results of a breath-test on a suspected cate, leaving the job to a local coroner. Coro- The new law maintains the previous struc- drunken driver are sufficiently accurate. ners were hesitant to sign the certificates ture of the task force, but will allow the cre- Effective Aug.1, 2003, the new law provides because they did not actually perform the ation of regional offices, if funds are available, that two separate breath tests registering a death investigations themselves. and will allow federal law enforcement agen- blood-alcohol concentration within 0.02 per- No person, other than the county coroner, cies to join. In addition, it would expand the cent of one another are acceptable. If there is medical examiner, or judge exercising probate scope of the task force beyond such crimes as a greater discrepancy, the test is considered jurisdiction were previously permitted by law credit card fraud, counterfeit identification, deficient and another must be administered. to sign a death certificate. Internet fraud, and forged checks to include: In addition, the law will provide that two The law also states that a Department of • investment fraud, deficient tests constitute a refusal on the part Corrections’ contracted, board-certified fo- • insurance fraud, of the offender. rensic pathologist must issue the certificate of • vehicle insurance fraud, Breath tests will be administered as follows: death in all deaths that involve inmates in cor- • financial institution fraud, • a drunken driver provides the first sample by rections custody. • fraud related to state or federal programs, blowing into a breathalyzer or similar in- Rep. Doug Fuller (R-Bemidji) and Sen. Wes • tax fraud, and strument used to measure blood-alcohol Skoglund (DFL-Mpls) sponsored the law. • mail and wire fraud. content; HF920/SF907*/CH27 Sen. Wes Skoglund (DFL-Mpls) sponsored • the instrument analyzes the percentage of the law in the Senate. It is effective July 1, 2003. alcohol in the blood; and HF1226/SF515*/CH36 • the driver provides a second sample. The combination of the two samples is used Obtaining search warrants to determine the level of alcohol in the suspected drunken driver’s system. A new law will change the way search war- Background check information According to the state Bureau of Criminal rants are granted in Minnesota. A new law brings Minnesota into compli- Apprehension, some drunken driving offend- Effective Aug. 1, 2003, the new law will elimi- ance with federal requirements about the in- ers deliberately attempt to throw off the re- nate a restriction that search warrants can only formation that can be disclosed after criminal sults of breath tests by providing a strong be issued to officers with jurisdiction in the background checks on property managers. breath on the first sample and a weak breath area where the search is to be conducted. It will Effective May 24, 2003, the law will narrow on the second. allow any officer to apply for a search warrant the information that can be given to property Rep. Steve Strachan (R-Farmington) and in any jurisdiction as long as they notify a lo- owners as a result of the background checks Sen. Don Betzold (DFL-Fridley) were the cal police chief before conducting the search. done on potential property managers. sponsors. If the search is to take place in an area with no According to Minnesota law, all potential HF1035/SF1158*/CH96 police chief, the officer must notify the local managers must undergo a criminal back- county sheriff. ground check administered by the state Bu- Judges issuing search warrants will still have reau of Criminal Apprehension. While the to have jurisdiction over the area to be bureau must check state and national crimi- Public safety radio compliance searched. nal history databases and report if there are Volunteers assigned to carry police radios Rep. Steve Strachan (R-Farmington) and any relevant crimes, the new law prohibits giv- with them or in their cars in order to help out Sen. Mike McGinn (R-Eagan) sponsored the ing property owners specific information law enforcement officials will no longer be vio- legislation. about past crimes gained from federal sources. lating Minnesota law under a new law effec- HF522/SF256*/CH86 It still requires the bureau to give owners a tive Aug. 1, 2003. description of the crime, the date and juris- The law changes a statute that made it ille- diction of conviction, and the date a sentence gal for people not licensed by the state Bureau

20 NEW Highlights LAWS 2003 of Criminal Apprehension to receive police property valued at less than $300 in a non- will now be called the Department of Employ- radio communications. Supporters say it gives public place. Arsons committed at higher loss ment and Economic Development (DEED). local police and sheriffs another tool in pro- values or in public buildings are covered under The Department of Economic Security pri- viding security at events that take place in their higher-degree arson offenses in state law. marily dealt with workforce and employment area. Fuller said prosecutors who want another issues. It disbursed unemployment benefits House sponsor Rep. David Dill (DFL-Crane tool to punish low-level arsonists brought him and maintained the state’s unemployment Lake) told legislators that a volunteer in his the measure. State courts and corrections of- trust fund, which collects taxes from employ- district was ticketed for having a police radio ficials said the changes are not likely to result ers to provide unemployment benefits to Min- at a community event. It’s not uncommon for in many new cases or prisoners because of the nesotans who lose their jobs. In addition, the law enforcement to use volunteer security per- small number of cases it will affect. department operated the Minnesota sonnel at events that require extra security, but HF385*/SF355/CH82 Workforce Centers around the state that pro- giving the volunteers radios violated a state law vide help with searching for jobs, preparing dating back to 1935. Courts, corrections, safety funding resumes, and other employment issues. “Realizing that we are talking about thou- (See Law, page 50) In contrast, the Department of Trade and sands and thousands of volunteers that are Economic Development served primarily as a Reporting crimes routinely using radios to help us respond to manager for economic development programs ambulance calls and fire calls and helping at (See Law, page 52) in the state, including the state Office of Tour- community events…we thought it would be Tobacco sales penalties ism. Much of the department’s funding was appropriate to streamline the regulations,” Dill (See Bills in Limbo, page 75) distributed through various programs in the said. form of grants to businesses, employers, and The new law permits people to carry emer- Enhancing abuse penalty other organizations. gency radio equipment with the written per- (See Bills in Limbo, page 76) Specifically, the department provides ser- mission of their local sheriff or police chief Credit card skimming vices to existing and developing businesses, instead of having to apply to the state Bureau (See Bills in Limbo, page 76) promotes trade and markets for Minnesota of Criminal Apprehension. products, helps employers train workers or A conference committee removed a House First-degree murder create higher paying jobs, and promotes Min- provision (originally HF784) that would have (See Bills in Limbo, page 76) nesota as a tourist destination. made it a felony to knowingly disrupt emer- Vehicle forfeiture woes The department has also provided some job gency communications among police, (See Bills in Limbo, page 76) training services, in conjunction with the Eco- firefighters, or emergency medical workers. nomic Security Department. The provision is now contained in the omni- Paying for treatment The core functions of both the former depart- bus judiciary finance law. (See Bills in Limbo, page 76) ments will be maintained in the new department. Sen. Tom Bakk (DFL-Cook) sponsored the Security camera installers Its organizational chart focuses on the five fol- legislation in the Senate. (See Bills in Limbo, page 77) lowing areas: business and community develop- HF808/SF351*/CH121 ment; workforce partnerships, including the Sports boards workforce center system; workforce services, in- (See Bills in Limbo, page 84) cluding State Services for the Blind; unemploy- Authorizing sports fantasy games ment insurance; and tourism. Arson penalties Prior to settling on the new name for the (See Bills in Limbo, page 85) Minor cases of arson that cause personal merged department, leaders debated calling it injury could result in higher criminal penal- Don’t bet on it the Department of Economic and Workforce ties, under a new law effective Aug. 1, 2003. (See Bills in Limbo, page 85) Development (DEWD) and the Workforce Sponsored by Rep. Doug Fuller (R-Bemidji) and Economic Development Department and Sen. Wes Skoglund (DFL-Mpls), the law (WEDD). will upgrade the crime of fifth-degree arson The new law, effective July 1, 2003, was to a gross misdemeanor if it results in bodily sponsored by Rep. Bob Gunther (R-Fairmont) harm, including causing illness or impairing and Sen. Dallas Sams (DFL-Staples). a person’s physical condition. The penalty for ★ DEVELOPMENT 2003 Special Session: HF25/SF28*/CH4 such an offense will be up to a year in prison and a fine of $3,000. Merger complete, department renamed Under prior law, fifth-degree arson was a mis- A 2001 law dictated that the state departments demeanor offense, punishable by up to 90 days of Economic Security and Trade and Economic Paying for parks in jail and up to a $700 fine. A separate provi- Development would merge. Though difficult sion of the law will increase the maximum fine budget times temporarily delayed the move, the Developers may find counties requiring for that offense to $1,000, a technical correction merger was recommended in Gov. Tim them to pay for or build parks, trails, and open to adjust the penalty so it is in line with other Pawlenty’s budget and is now complete. spaces when constructing housing subdivi- misdemeanor offenses. The offense applies in And the first item of business: naming the sions, under a new law. cases where someone intentionally burns any new department. A new law provides that it State statute already allows cities and

21 Highlights NEW LAWS 2003 townships to require parkland or in-lieu-of Capitol planning board clarifications In addition, a provision in the new law is fees of developers. The law simply allows the (See Government, page 35) repealed by another law passed during the same authority to counties, said the House 2003 session. (See related story, page 25.) Redefining a displaced person sponsor, Rep. Peter Nelson (R-Lindstrom). The following is a look at some of the pro- Sen. Betsy Wergin (R-Princeton) is the Senate (See Housing, page 44) visions in the new law, effective July 1, 2003, sponsor. Aid formulas, new taxing districts unless otherwise noted. While no discussion was initiated on the (See Taxes, page 61) 2003 Special Session: HF51*/SFnone/CH9 House floor, the law received considerable input during debate before the House Local Common provisions Appropriations Government and Metropolitan Affairs Com- (See Taxes, page 63) The law sets the following state education mittee April 9. Labor contracts appropriations: People once thought that requiring recre- (See Bills in Limbo, page 77) • general education funding at $9.95 billion; ational spaces of developers in cities and town- • special education funding at $1.27 billion; ships was sufficient, said Larry Haws, a Stearns Nanotechnology institute • early childhood programs at $92.4 million; County commissioner. However, he said, most (See Bills in Limbo, page 94) • adult education programs at $71.9 million; townships don’t have parks departments to and oversee such amenities. • state Education Department and academies “This is a good way to put the counties in at $81.5 million. the park-planning business,” Haws said. The latter category includes $47.3 million The law will have growth paying for its fair ★ EDUCATION for the renamed Department of Education, share, said Scott County Administrator David which administers K-12 funds, policies, and Unmacht, adding that a general property tax School funding regulations. Another $20.9 million is allocated increase is not the solitary solution to more Minnesota’s public school districts and to state academies for the blind and deaf. (Art. parks. charter schools will be supported by nearly 10, Secs. 10, 11) Members expressed concern about the pro- $11.9 billion in state general fund money for One-time transition revenue included in the vision increasing the cost of the average new 2004-05, under a new law. law, totaling about $35.7 million, is expected home by $1,200. Haws said while that may be Education finance represents more than to help schools match their existing classroom true for cities, which are already affected by 40 percent of state general fund spending. spending. Nearly two-thirds of the transition the provision, the cost of the average home in Overall, the spending plan does not differ mark- state aid is for fiscal 2004. Beginning in fiscal a county, dealt with in the new law, would only edly from the administration’s education budget year 2005, school districts are required to levy increase by $300. recommendations proposed in February. a share of their transition revenue on referen- Specifically, the law will permit a county by Rep. Alice Seagren (R-Bloomington), who dum market value to maintain the 2004 tran- ordinance to require dedication of some por- sponsored the law with Sen. Steve Kelley (DFL- sition revenue amount. Beginning in fiscal tion of a proposed subdivision for public use Hopkins), said the cuts represent a 2 percent year 2008, districts must ask their voters to as parks, recreational facilities, playgrounds, reduction overall. Most cuts will not affect core approve keeping the transition revenue as part trails, wetlands, or open space, or to accept K-12 instruction funding, she said, but are of their locally approved operating referen- cash in lieu of such a dedication. It takes effect applied to compensatory, and special educa- dum. (Art. 1, Secs. 30, 31) Aug. 1, 2003. tion revenue, and funding for English lan- Locally generated property tax revenue, the Any county desiring to invoke such author- guage learning students, among other areas. other major source of education funding, is ity must first adopt a capital improvement expected to provide an program and a parks and open space plan, or additional estimated have a component in its comprehensive plans $2.56 billion for school for parks, trails, and open spaces. districts during the The in-lieu-of fees must be fair, reasonable, next two years. and proportionate to need, under the law. The law provides no Money received must be used to acquire, im- increase in levy au- prove, or develop parks and similar facilities, thority overall for dis- and not for parks operations or maintenance. tricts to seek In addition, counties cannot force a devel- additional revenue oper to waive his right to challenge the valid- from property taxpay- ity of the fee or land dedication. ers, without voter ap- HF657/SF484*/CH95 proval, but school districts may still seek $231 million law signed additional funds (See Bonding, page 10) through a referendum. Some suburban dis- ‘Hogs, frogs, and jobs’ PHOTO BY TOM OLMSCHEID A framework and funding mechanism for online learning programs was a tricts that have reached (See Budget, page 12) part of the omnibus education law passed in 2003. their maximum amount of referendum

22 NEW Highlights LAWS 2003 authority have the authority to seek small in- program description and service delivery area, code, and changes to correct swimming pool flationary increases in operating revenue and a program design that ensures fair and hazards, excluding depth correction. It also through tax referenda. equitable access for all populations of the ser- specifies what health and safety revenue must School districts with lower total property vice area. (Art. 7, Sec. 1) not be used for. Both sections were effective value will receive more state referendum Early childhood programs are encouraged May 31, 2003. (Art. 4, Secs. 5, 7) equalization aid, and equity revenue for low- to prioritize resources for children from birth revenue districts will also increase. (Art. 1, to age three if funding is not sufficient for all Vehicles, and vehicle safety Secs. 36-38) youth. (Art. 7, Sec. 3) The law modifies school bus safety training House and Senate conferees shifted monies Early childhood and family education rev- requirements. Students in kindergarten within the proposed K-12 education spend- enue to school districts in fiscal year 2005 is through 10th grade must receive school bus ing proposals to soften cuts in several areas, reduced to $96 multiplied by the greater of 150 safety training, and ninth and 10th graders including early childhood education, summer or the number of people under age 5 in the must receive instruction in the laws and school programs, and training and experience district. In fiscal years 2002-2004, the amount proper procedures when operating a vehicle revenue for districts with experienced and/or was $120. It was $113.50 in fiscal years 2000 near a school bus. (Art. 1, Sec. 6) highly educated teachers. and 2001. (Art. 7, Sec. 6) A type III school bus, defined in statute as The conferees restored $5 million of an Local early intervention committees are “passenger cars, station wagons, vans, and $8 million cut the House had initially ap- added to school district school readiness ad- buses having a maximum manufacturer’s proved in state funding of federally supported visory councils. (Art. 7, Sec. 8) rated seating capacity of ten or fewer people, Head Start programs and also eliminated a re- including the driver, and a gross vehicle weight quirement that a percentage of future state Charter schools rating of 10,000 pounds or less,” is now ex- grants for Head Start be considered for “in- The law permits a nonprofit corporation to empt from the requirement of having to stop novative programming.” The final agreement sponsor one or more charter schools if the at railroad crossings. Additionally, a vehicle also provides $4 million more in state aid than charter school has operated for at least three newer than 12 years old may be used as a type the $30.8 million the governor had proposed years under a different sponsor and if the non- III school bus, instead of the previous limit of for early childhood and family education pro- profit corporation has existed for at least 25 10 years. The latter is effective May 31, 2003. grams. (Art. 7, Sec. 11) years. (Art. 2, Sec. 22) (Art. 1, Secs. 44, 46-47) The governor’s recommendation to fund If a teacher makes a written request for an English language learning students for only extended leave of absence to teach at a charter Local projects, issues five years is in the law. The House had pro- school, the district must grant the leave. Un- A number of local levies or actions are per- posed a seven-year program with funding be- der the new law, the leave cannot exceed a to- mitted under the law, including the following: ing phased out in the last three years. The tal of five years. Previously, the length was • The Southland School District in Mower amount of state aid per pupil for English lan- based upon the teacher request. However, County may levy up to $66,000 of its re- guage learners will increase, but will be based school boards are given discretion to extend maining disabled access levy authority over on a more narrowly defined formula. (Art. 1, the leave. This section is effective May 31, 2003. five or fewer years, effective May 31, 2003. Secs. 13, 14) (Art. 2, Sec. 25) (Art. 4, Sec. 27) Approximately $102 million is included for The maximum charter school building lease • For taxes payable in 2004 only, the Elgin- extended day school programs, which include aid is reduced from $1,500 per pupil to $1,200. Millville School District in Wabasha County after-school classes for students in academic Charter schools with lease aid amounts above is permitted to levy up to $8,000 for handi- need, and summer school. The new “extended the cap are grandfathered in at their current capped access and safety improvements. (Art. time revenue” was not proposed by the gover- building lease aid amount. This is effective for 4, Sec. 28) nor. (Art. 1, Sec. 53) revenue for fiscal year 2004. (Art. 2, Sec. 28) • A school bus storage facility may be leased by To garner more funds, school districts are A charter school in its first year of operation the Sartell School District in Stearns County, permitted to seek additional revenue through during fiscal year 2004 or 2005 is not eligible for which is given permission to levy up to advertising, sponsorships, and offering build- charter school start-up aid. (Art. 2, Sec. 51) $107,000 for taxes payable in 2004, 2005, ing naming rights. (Art. 2, Sec. 12) and 2006. The district can levy for the amount Health and safety only if it sells its current bus storage site to Early childhood family support Health and safety projects with estimated costs the city of Sartell. Furthermore, the district is The law removes a requirement that 11 per- of $500,000 or more per site, approved after prohibited from using this levy as part of a cent of state Head Start dollars be used for Feb. 1, 2003, are excluded from eligibility for lease purchase agreement to replace its cur- grants for innovative programming designed health and safety revenue. However, they may be rent bus storage facility. (Art. 4, Sec. 29) either to target resources to particular at-risk eligible for alternative facilities bonding and levy • The Ulen-Hitterdal School District in Clay groups of children or to provide services in revenue, according to state statute. County is permitted to include in its health addition to those allowed under federal regu- The law both narrows and more specifically and safety revenue for fiscal year 2005 costs lations. Additionally, each grantee must sub- defines the list of acceptable uses of health and for the demolition of a portion of its high mit a work plan to the education safety revenue: indoor quality mold abate- school. This is effective May 31, 2003. (Art. 4, commissioner for approval. The plan is to in- ment, upgrades or replacement of mechani- Sec. 30) clude the estimated number of low-income cal ventilation systems to meet standards, • Effective May 31, 2003, the Duluth School children and families it will be able to serve, a changes to meet Department of Health food District may reduce from five to three the

23 Highlights NEW LAWS 2003

number of at-large school board members. course to 1:40. (Art. 2, Sec. 20) Behind law, the state will add tests based on (Art. 2, Sec. 54) The Minnesota State High School League is the standards in the fourth and sixth grades • A three-year pilot project is established for the allowed to adopt policies on corporate spon- for the 2005-06 school year. Students must still Rochester School District and up to three sorships and similar agreements. This is effec- pass the statewide basic skills tests to gradu- other districts or cooperative units selected tive May 31, 2003. (Art. 2, Sec. 39) ate from high school. by the education commissioner to deter- Effective May 31, 2003, a school board may The law requires the commissioner to pro- mine what impact waiving specific state spe- elect to participate in a two-year pilot project pose standards in science and social studies cial education requirements has on the qual- to evaluate parent involvement policies and to the Legislature by Feb. 1, 2004. The social ity and cost effectiveness of the instructional strategies in the district and in school sites, studies subject area includes history, geogra- services provided to and the educational with the goal of improving the academic phy, economics, government/citizenship, and outcomes of eligible students in the partici- achievement of all students within the district, world history. pating districts. This is effective May 31, including at-risk students. (Art. 2, Sec. 50) Rep. Paul Marquart (DFL-Dilworth), a 2003. (Art. 3, Sec. 18) member of the conference committee, said the • Money is provided to the Albert Lea law includes “safeguards that will insulate the ($375,000), Mesabi East ($250,000), and standards from the ebb and flow of this legis- Roseau ($50,000) school districts for declin- New academic standards lative body. ing pupil aid to compensate for large plant After five years of vigorous political debate “It’s not going to be a moving target,” he closings and floods; $117,000 is allocated to about the Profile of Learning, a new law provides said. “Hopefully we can take the politics out the Yellow Medicine East district for tor- the framework for a new set of academic stan- of this.” nado impact declining enrollment aid; and dards for the state’s public school students. HF302*/SF481/CH129 $100,000 is allocated to the Warroad School Effective May 22, 2003, the new law estab- District to operate the Angle Inlet school, a lishes new grade-level academic standards in one-room schoolhouse. (Art. 1, Sec. 53) five required subject areas: language arts, mathematics, science, social studies, and the Other provisions creative arts. Pledging allegiance The state’s Board of Teaching will collect an “This bill returns authority to the school Reciting the Pledge of Allegiance at least additional $10 per license in fees from teach- district,” said Rep. Barb Sykora (R-Excelsior), once a week is required in the state’s public ers beginning in fiscal year 2004. Teachers and who sponsored the law with Sen. Steve Kelley and charter schools beginning this fall, under administrators’ licenses will cost $57. (Art. 10, (DFL-Hopkins). Rep. Tony Kielkucki (R- a new law. Sec. 5) Lester Prairie) carried the original Profile re- Effective Aug. 1, 2003, the law will allow The board can also issue a lifetime quali- peal bill (HF6) that passed the House Feb. 17. school boards or a charter school board of fied short-call substitute teaching license to “We are not mandating everything. It doesn’t directors to annually waive the requirement. qualified individuals. A person holding such tell teachers how to teach, demand perfor- The law will require school districts or char- a license is exempt from having to complete mance packages, or have a grading system that ter schools to include a statement in a student continuing education clock hours. This takes no one could understand.” handbook or school policy guide that anyone effect with the 2003-04 school year. (Art. 10, Sykora referred to a number of issues that may elect not to recite the pledge for “any per- Sec. 4) parents, school administrators, teachers, and sonal reasons,” and “that students must re- The statutory requirement that school other critics of the complex profile require- spect another person’s right to make that boards and teachers agree to a collective bar- ments consistently raised since the graduation choice.” That provision will not be effective gaining agreement by Jan. 15 or face a finan- requirements were first implemented by the until the 2004-05 school year. cial penalty is waived for the 2004-05 state in 1998. The law will also allow for the pledge to be biennium, just as it was for the 2002-03 bien- The law authorizes the proposed English recited by a teacher in the classroom or over a nium. (Art. 2, Sec. 48) and math K-12 grade level standards that have school’s public address system by a person A primary is required if there are more than been developed in recent months by Depart- two candidates for a specific school board ment of Education Commissioner Cheri position or if there are more than twice as Pierson Yecke to become the new academic many candidates as will be elected to an at- standards in those two subject areas. large board. This is effective May 31, 2003 for School districts must determine the arts the St. Cloud School District and Jan. 1, 2004 standards that Senate negotiators added to the for all other districts. (Art. 2, Sec. 43) compromise bill. A framework and a funding mechanism for New standards in these three subject areas online learning programs are established under will be implemented for the 2003-04 school the law. Students can enroll in a maximum of year. New statewide English and math tests, 12 semester-long courses online and complete based on the standards for students in grades PHOTO BY TOM OLMSCHEID course work at a different grade level than their three through eight and at the high school level, Reciting the Pledge of Allegiance at least once a own. Teachers with a state license could assemble will not be implemented until the 2005-06 week will be required in the state’s public and charter schools, under a new law. The law permits and deliver online course instruction. The law, school year. effective for the 2003-04 school year and later, school boards or a charter school board of directors To comply with the federal No Child Left to annually waive the requirement. limits the teacher-to-student ratio for an online

24 NEW Highlights LAWS 2003 designated by the school principal. $231 million law signed State grant eligibility School districts that don’t waive the pledge (See Bonding, page 10) (See Bills in Limbo, page 88) requirement, according to the law, must in- 2003 adjustments No grants for summer classes struct students in proper flag etiquette, correct flag display, and respect regarding the flag, (See Budget, page 14) (See Bills in Limbo, page 88) “and in patriotic exercises.” Substitute teachers No voluntarism requirement Rep. Bruce Anderson (R-Buffalo Township) (See Children, page 16) (See Bills in Limbo, page 88) and Sen. Steve Murphy (DFL-Red Wing) are the sponsors. Political party designations Opting out of mandates HF6/SF287*/CH120 (See Elections, page 25) (See Bills in Limbo, page 90) Linking bingo games Surcharge for student learning (See Gambling, page 31) (See Bills in Limbo, page 94)

Changing a department name Funding college, grants The state agency responsible for K-12 pub- (See Higher Education, page 42) lic schools will be known by a former name Promoting abstinence ★ ELECTIONS under a new law. (See Bills in Limbo, page 77) Effective Aug. 1, 2003 the department reverts Political party designations Fighting expulsions to the name Department of Education. A new law repeals a provision in the omni- (See Bills in Limbo, page 77) In 1995, the Legislature changed the bus K-12 law relating to major and minor department’s name to the Department of Chil- History curriculum concerns political parties. dren, Families and Learning as part of a state (See Bills in Limbo, page 78) Rep. Ron Abrams (R-Minnetonka), the agency reorganization led by Gov. Arne House sponsor, said the state could face pos- Carlson’s administration. Charter school creation sible lawsuits regarding the constitutionality Gov. Tim Pawlenty recommended that the (See Bills in Limbo, page 78) of the K-12 measure if the language were not name revert to the Department of Education Small school aid removed. in his Feb. 6 State of the State address. (See Bills in Limbo, page 78) In the omnibus law, a majority party was The name change is expected to cost defined in several sections: $39,000. Department officials testified in Earlier school year start • a political party that maintains a party orga- House committees that the cost would be ab- (See Bills in Limbo, page 79) nization in the state, political division, or sorbed in the department’s budget. Coaching contracts precinct in question and that has presented Legal documents must reflect the name (See Bills in Limbo, page 79) at least one candidate for election to the change immediately, according to department office of governor and lieutenant governor, officials, and the sign outside the department’s Special education scholarships secretary of state, state auditor, attorney leased office building in Roseville will also be (See Bills in Limbo, page 79) general or changed. Existing stationary will be used un- Student survey consent • a political party that maintains a party orga- til supplies are exhausted. (See Bills in Limbo, page 79) nization in the state, political subdivision, or Rep. Randy Demmer (R-Hayfield) and Sen. precinct in question and whose members Geoff Michel (R-Edina) were the law’s American Indian scholarship office present to the secretary of state a petition for sponsors. (See Bills in Limbo, page 80) a place on the state partisan primary ballot, HF517/SF296*/CH130 Mandate opt out which petition contains signatures of a number of the party members equal to at least (See Bills in Limbo, page 80) 5 percent of the total number of individuals Contracting services who voted in the preceding state general (See Bills in Limbo, page 80) election. The minor party would have had to meet Charter school creation the same definitions as the major party, but (See Bills in Limbo, page 81) also must adopt a state constitution, desig- Fiscal impact notes nated a state party chair, held a state conven- (See Bills in Limbo, page 81) tion in the last two years, filed with the secretary of state no later than Dec. 31 follow- Allocating state grant dollars PHOTO BY ANDREW VONBANK ing the most recent state general election a (See Bills in Limbo, page 87) certification that the party has met the fore- Under a new law, the Department of Children, Families and Learning will revert to the name Opt-in plan for student fees going requirements. Department of Education. In 1995, the Legislature (See Bills in Limbo, page 87) Additionally, a minor party, in order to be changed the department’s name to the considered in all elections statewide, must have Department of Children, Families and Learning as Studying abroad presented at least one candidate for election part of a state agency reorganization by Gov. Arne (See Bills in Limbo, page 88) to the office of governor and lieutenant Carlson’s administration.

25 Highlights NEW LAWS 2003 governor, secretary of state, state auditor, at- Ballot question deadline Rep. Tony Kielkucki (R-Lester Prairie), who torney general, presidential elector, or Ballot questions must be submitted by a sponsored the law with Sen. Dallas Sams U.S. senator who received votes in each county deadline prior to an election in order to be (DFL-Staples), said townships have had that in the aggregate equal at least 1 percent considered for placement on a ballot, under a trouble getting vacancies filled. of the total number of individuals who voted new law. Under previous law, a town board was di- in the election, as opposed to 5 percent re- Sponsored by Rep. Tony Kielkucki (R-Lester rected to fill a vacancy through an appoint- quired for major party designation. Prairie) and Sen. Jim Vickerman (DFL-Tracy), ment process, with a special election necessary Concerns were raised by the Independence the law clarifies timelines that petition orga- if members failed to agree. The new law, which Party of Minnesota as to whether the addition nizers must meet in order for their proposals takes effect Aug. 1, 2003, provides procedures of election provisions to the K-12 law violated to be considered. for holding the election. It requires the super- the single subject rule, which governs what a Kent Sulem, an attorney for Minnesota As- visors and town clerk, or two of them together single law passed by the Legislature may ad- sociation of Townships, told a House commit- with at least 12 other town officials, to file a dress. If a political party were to pursue the tee that petitions have been received as late as statement in the town clerk’s office. The state- argument of the additional language violat- one week before an election in the past. Be- ment must include the reason why the elec- ing the single subject rule, the K-12 law could cause of a lengthy process to put the questions tion is called and that the interests of the town have been repealed in a court of law. on a ballot, officials were unable to comply. require the election. According to the party Web site, the law Previous election law didn’t specifically state The law also states that an election may be would have also delayed political funds to that a petition must be submitted by a dead- called by petition of 20 percent of the voters Nov. 1, making it more difficult for political line, so there wasn’t anything to show a resi- at the last general election. parties with less funding to campaign. There dent why a question couldn’t be accepted, HF361*/SF329/CH56 were also concerns about language that would Sulem acknowledged. require a party to have a presidential candi- Effective Aug. 1, 2003, the new law doesn’t Seeking office as employees date to maintain major party status. require a city to schedule a special election (See Local Government, page 55) The law, effective June 13, 2003, was also when a submission is made, however Minne- Met Council, legislative changes sponsored by Sen. John Marty (DFL- sota statute does call for a special election if (See Metro Affairs, page 56) Roseville). 20 percent of the voters at the last municipal 2003 Special Session: HF67*/SFnone/CH17 general election signed the petition and the Distorted photographs question hasn’t been submitted in the previ- (See Bills in Limbo, page 81) ous six months. HF504*/SF384/CH75 Contributing campaign funds Federal conformity (See Bills in Limbo, page 81) Minnesota election laws must be adjusted Political phone surveys to comply with the federal Help America Vote (See Bills in Limbo, page 82) Act signed into law by President Bush in 2002. Township special elections A law passed during the 2003 special session Townships will be required to hold a spe- makes those modifications. cial election if they are unable to fill a vacancy Among other things, the federal law helps of an elected town official by appointment, establish election standards for states and lo- under a new law. cal units of government. Sponsored by Rep. Jim Rhodes (R-St. Louis Park) and Sen. Linda Scheid (DFL-Brooklyn Park), the law creates an account for the state to receive $6.5 million in federal dollars under the act. An additional $14 million could be added to the fund, if the state provides $700,000 in matching funds. The appropriated money can be used in a variety of ways, including: training election officials such as judges and county administrators, educating voters, and buying voting systems. The law also establishes a procedure to review complaints regarding voting system standards, computerized statewide registration lists and equipment, voter registration requirements, and other features of state implementation. PHOTO BY TOM OLMSCHEID The law is effective retroactively to the full Under previous law, a town board was directed to fill a vacancy through an appointment process, with extent permitted by the Help America Vote Act. a special election necessary if members failed to agree. A new law provides procedures for holding the 2003 Special Session: HF16*/SF8/CH7 election.

26 NEW Highlights LAWS 2003

Unnecessary agency licensing arose from vague language written in law sev- ★ EMPLOYMENT Rarely utilized state statutes requiring the eral years ago and renewal times were different among professions. In an attempt to clarify Dollars for the unemployed licensing of entertainment agencies employing musicians will be repealed through a new the renewal process, the law also creates set The long-term solvency of the state unem- law. standards for renewing a lapsed license. ployment insurance trust fund will be ad- Under existing law, entertainment agencies Under the law, an individual may reinstate dressed, under a new law. employing three or more artists or groups of an expired license upon satisfying all prior The law was previously passed by the House. artists were to be licensed by the state Depart- continuing education requirements, by pay- Additional action was required because it ment of s Artists were defined as musical art- ing all the renewal fees due for the current re- hadn’t been approved by both the Senate and ists, musical organizations, musical directors, newal period and those that the license was House prior to the end of the regular legisla- composers, lyricists, and arrangers. expired, and by paying a delayed renewal fee tive session on May 19. The annual license fee was $250 with an in an amount set by the board. The continu- Effective May 31, 2003, the new law calls for additional $25 filing fee. Also required was ing education must be completed within four changing the formula by which employers pay submittal of a $10,000 bond to the secretary years immediately prior to reinstatement. into the state unemployment insurance trust of state. In applying for a license, the appli- Hours that had previously been used to re- fund in hopes of keeping it solvent. So many cant allows the Labor and Industry Depart- new the license cannot be used again for re- people have been collecting unemployment in ment to investigate the applicant’s “character newal or for a certificate to be reinstated. Minnesota that in April the state was forced and responsibility,” as well as the location at Exceptions are made for those with a seri- to borrow $200 million from the federal gov- which the entertainment agency aims to do ous illness, injury, or other extenuating cir- ernment to continue paying benefits to laid- business. cumstances, and include those who have been off and unemployed workers. According to April 3 testimony by the de- called to active duty in the military service for Under current law, the base tax rate paid by partment before the House Commerce, Jobs, a time exceeding 120 consecutive days. all taxpaying employers fluctuates between and Economic Development Policy Commit- The law is effective May 24, 2003. one-tenth and six-tenths of 1 percent of tax- tee, the statutes had been rendered obsolete HF677*/SF638/CH85 able wages, depending on how much money due to the fact that no more than three enter- is in the unemployment insurance trust fund. tainment agencies had been licensed in the ‘Hogs, frogs, and jobs’ When the fund is low, a higher rate is collected. state at any one time. Furthermore, the depart- (See Budget, page 12) The exact amount to be paid in any given year ment had little authority to enforce the is based on the fund balance on June 30 of Merger complete, department renamed statutes. each year. (See Development, page 21) Grace Schwab, legislative liaison for the de- Effective Jan. 1, 2005, the law will continue partment, said the entertainment agency stat- adjusting the rate employers pay but would Title protection ues were adopted in 1984, despite the fact that determine the fund balance by comparing the (See Health, page 40) no one seems to know their purpose. “For all balance on March 31 of any year to the per- practical purposes we don’t even license,” she Contract ratification centage of total wages paid to employees in the said. (See Health, page 41) previous year. According to nonpartisan The new law takes effect Aug. 1, 2003. House research staff, this has the effect of com- Professional board powers The law was sponsored by Rep. Chris paring the balance to the fund’s exposure. The (See Health, page 42) Gerlach (R-Apple Valley) and Sen. Michele more being paid in wages, the more the fund Bachmann (R-Stillwater). Benefits adjusted, work plans begun may need to pay out in benefits if unemploy- HF1132/SF1099*/CH131 (See Human Services, page 45) ment rates rise. The rate would fluctuate between one-tenth Extended testing time and four-tenths of 1 percent of taxable wages. (See Industry, page 48) Employers who traditionally lay off their License renewal Health insurance purchasing alliances employees — such as those in the construc- A new law will require architects, engineers, (See Insurance, page 49) tion trades — would pay a slightly higher rate, surveyors, landscape architects, geoscientists, Job descriptions under the bill. The employees themselves, how- and interior designers to renew their licenses (See Local Government, page 55) ever, wouldn’t see a lower benefit amount in every other year. the event of a layoff. Under the law, all licenses and certificates Earning full pay Last year the state paid out more than other than in-training certificates, issued by (See Military, page 57) $1 billion in unemployment benefits to laid- the Board of Architecture, Engineering, Land Younger referees off and unemployed workers. Surveying, Landscape Architecture, Geo- Rep. Bob Gunther (R-Fairmont) and science, and Interior Design expire at midnight (See Recreation, page 57) Sen. Ellen Anderson (DFL-St. Paul) are the on June 30 of each even-numbered calendar Youth officials sponsors. year if not renewed. (See Recreation, page 57) 2003 Special Session: HF12/SF18*/CH3 Rep. Sondra Erickson (R-Princeton), who sponsored the legislation with Sen. Linda Tougher penalties for OSHA violations Scheid (DFL-Brooklyn Park), said problems (See Safety, page 59)

27 Highlights NEW LAWS 2003

Coaching contracts additional nuclear waste storage for both Prai- utility’s rate structure, is now $8.5 million (See Bills in Limbo, page 79) rie Island and the Monticello nuclear plants annually. (Art. 2, Sec. 1) should Xcel Energy request the storage to al- The utility will be required, under the law, Job references low the plants to operate beyond their current to contribute an additional $7.5 million each (See Bills in Limbo, page 82) federal licenses. The license for the Monticello year, if the commission determines that Xcel Salary and wage freeze plant, which has sufficient pool storage to op- Energy is not making a good faith effort to (See Bills in Limbo, page 82) erate through the end of the current license move spent fuel from the state. period and does not have any existing dry cask In addition, up to $6 million of the renew- Operators as essential employees storage, expires in 2010. License extensions able energy funds each year must be directed (See Bills in Limbo, page 82) will first have to be approved by the federal to production incentives for certain facilities, Limiting contract negotiations Nuclear Regulatory Commission. including small wind energy facilities and on- (See Bills in Limbo, page 83) Whatever rulings the commission makes farm biogas reactors. will not take effect until June 1 following the Five percent of the utility’s spending on re- Health, dental coverage legislative session subsequent to the newable energy research, estimated at (See Bills in Limbo, page 87) commission’s action. If the decision is not $1.5 million to $2 million annually, will be al- overturned or amended by the Legislature located to the University of Minnesota Initia- during that session, it will stand as ordered. tive for Renewable Energy and the In addition, the law ratifies the agreement be- Environment. (Art. 2, Sec. 5) ★ ENERGY tween Xcel Energy and the Mdewakanton Da- Utilities must also report biennially on their kota Tribal Council, which governs the American progress toward meeting renewable energy Additional nuclear storage approved Indian communities near the Prairie Island objectives established in 2001. Under that law, Effective May 30, 2003, a new law will allow plant. The settlement provides that the utility give each utility must make a good faith effort to more nuclear waste to be stored at the Prairie the tribe up to $2.5 million per year to help the generate 10 percent of its electricity from re- Island nuclear plant subject to federal license tribe purchase land for members to relocate away newable sources by 2015. A key component limits for dry cask storage. The law also pro- from the plant. It may be placed in trust, under of the law makes Xcel Energy’s renewable en- vides renewable energy objectives, authorizes the law, but the governor reserves the right to ergy objective a requirement contingent on a an innovative energy project in Greater Min- oppose any individual application to place land few provisions, rather than allowing a good nesota, and makes other energy-related ad- in trust. (Art. 1, Sec. 3) faith effort to suffice, as it would under previ- justments to state law. The law proposes that Xcel Energy increase ous law. The federal license for the dry cask storage funding of a renewable development account Under the new law, hydrogen will become a facility at Prairie Island, which is located out- for wind, biomass, and hydrogen-based energy part of the list of renewable energy sources. side of the plant, allows for up to 48 casks. The development to $16 million annually during Among sources already included are wind power, Legislature approved 17 casks in 1994. the Prairie Island plant’s continued operation. solar power, biomass, and landfill gas. (Art. 2, The law authorizes additional storage casks The fund, which is financed through the Secs. 2, 3, 6) to allow Prairie Is- In conjunction land to operate to with including hy- 2013 and 2014, the drogen as a re- respective expira- newable energy tion dates for op- source, the law eration of its two provides for licensed nuclear re- $10 million in un- actors. Xcel Energy obligated renew- has said the plant able funds for could not operate research and other beyond 2007 with- activities, at the out additional stor- University of age. The last of the Minnesota, re- current 17 casks garding hydrogen were filled in 2002. and renewables. A pool inside the At least $3 million plant stores spent must go to one of nuclear fuel rods the university’s following their re- rural campuses. moval from a reac- (Art. 2, Sec. 18) tor. (Art. 1, Sec. 2) Also, the law

The Public PHOTO BY TOM OLMSCHEID will direct three Utilities Commis- A new law permits additional nuclear waste storage casks at the Prairie Island nuclear plant. The last of the current state departments sion will decide, 17 casks were filled in 2002. Officials expect that the additional casks will allow the plant to be operational until to work together under the law, on 2013 and 2014, the expiration dates for operation of its two licensed nuclear reactors. in developing

28 NEW Highlights LAWS 2003 energy innovation zones and to provide tax and the amount of the rate rebate from the industry, and administrators were required to breaks and other incentives for companies to utility company. renew their plans with the state every five years. develop fuel cells and other hydrogen infra- The new law will not require that contracts The systems are relatively stable now and structure. (Art. 2, Sec. 19) be fixed at 15 years; a lesser number of years changing filing requirements to every 10 years The law includes “clean energy technology” will be allowed. will allow solid waste staff to spend more time as a potential energy source that utilities such Forty-seven states in the nation have simi- implementing programs than updating plans, as Xcel Energy can use to meet a state renew- lar laws, with the maximum contract length said supporters of the new law. able fuels objective. Xcel is required to pro- varying from 10 to 25 years. The new law will modify Office of Environ- vide 2 percent of its electricity from clean Rep. Lynn Wardlow (R-Eagan) and Sen. mental Assistance planning rules that solid energy technology, provided the Public Utili- Steve Kelley (DFL-Hopkins) were the waste administrators have said do not reflect ties Commission makes certain findings. sponsors. the demographic, regional, and geographic The new law also provides incentives for the 2003 Special Session: HF34/SF27/CH10 differences between counties. development of a plant using this clean coal Rep. Denny McNamara (R-Hastings) and technology in an energy facility on the Iron Sen. Tom Saxhaug (DFL-Grand Rapids) were Range in northern Minnesota. (Art. 4, Sec. 1) the sponsors. As defined, clean energy technology “utilizes HF1054/SF1001*/CH13 coal as a primary fuel in a highly efficient com- ★ ENVIRONMENT bined cycle configuration with significantly Limiting arsenic in fertilizers reduced sulfur dioxide, nitrogen oxide, par- Effective Aug. 1, 2003, fertilizers containing ticulate, and mercury emissions.” The provi- certain levels of arsenic will be illegal in Min- Drainage authority alternatives sion allowing the technology will expire in nesota under a new law. A new law aims to provide drainage authori- 2012. (Art. 2, Sec. 4) The state’s agriculture commissioner will be ties with some alternatives to expensive bridge In regard to general energy policies in the prohibited from licensing or registering any repairs. new law, the Legislative Electric Energy Task fertilizer containing more than 500 parts per Most county boards in the state also serve Force is directed to study sources of future million by weight of arsenic for sale or use in as local drainage authorities, with the respon- electric energy resources and report to the full Minnesota, under the new law. sibility to maintain and replace ditches and Legislature regarding related opportunities. Fertilizer must be registered with the state bridges. The initial report will be due Jan. 15, 2005. before it is sold. Effective May 24, 2003, the new law will al- (Art. 3, Secs. 6-7) Arsenic is a very poisonous chemical ele- low drainage authorities to compensate land- Another measure in the bill prohibits dis- ment, compounds of which are used in insec- owners for permanent removal of a private connection of power during extreme heat and ticides. Rep. Dan Dorman (R-Albert Lea), the bridge if it would be less expensive than re- cold weather. (Art. 3, Secs 1-3) House sponsor, said the legislation was mod- pairing the bridge. This option is available only Rep. Torrey Westrom (R-Elbow Lake) and eled after a similar proposal in Maine directed if landowners agree to the situation and waive Sen. Steve Murphy (DFL-Red Wing) were the at fertilizers containing tailings, which are any rights to future reconstruction. sponsors. mining waste byproducts. The legislation was prompted after esti- 2003 Special Session: HF9*/SF21/CH11 On a national level, public health and envi- mates to replace a particular Nicollet County ronmental groups have cited a brand of fer- bridge over a drainage ditch on private land tilizer called Ironite, saying it contains high came in two to three times higher than the es- Saving money levels of arsenic. According to those advocates, timated $35,000 for landowner compensation Ironite is produced from the mine tailings of A new law will make it easier for schools and and removal. The drainage authority pursued a proposed Superfund environmental municipalities to enter into long-term energy legislative intervention after the attorney clean-up site in Arizona and sold to consum- savings plans. general issued an opinion against the compen- ers as a lawn and garden fertilizer. The com- Effective May 31, 2003, the law will extend sation option. pany that produces Ironite maintains that the the maximum length of a guaranteed energy Rep. Howard Swenson (R-Nicollet) and fertilizer is safe. savings contract from 10 to 15 years. Under a Senate Majority Leader John Hottinger (DFL- Sen. D. Scott Dibble (DFL-Mpls) is the Sen- 1983 law, school districts and municipalities St. Peter) sponsored the measure. ate sponsor. can enter into agreements for energy efficiency HF1257*/SF1195/CH84 HF258*/SF680/CH33 improvements, such as new lighting and heat- ing and cooling systems. The upgrades are paid from the energy cost savings over a period of time; no upfront cash payment is re- Solid waste plans Land transactions approved quired. The entity receives the full benefit of Solid waste managers in 80 Greater Minne- A new law will authorize a number of state lower energy costs after the upgrades have sota counties and the Western Lake Superior land transactions, re-establish a state miner- been paid. Sanitary District will be granted some admin- als commission, and modify the boundaries Extending the maximum contract length istrative relief, under a new law effective along a Minneapolis whitewater trail. could make it easier for entities to purchase Aug. 1, 2003. The omnibus lands law will grant legisla- back-up generators, which often can’t be paid When integrated solid waste planning be- tive approval of land sales, exchanges, or ac- off in 10 years due to the cost of the machine gan in the mid-1980s, it was an evolving quisitions in the following designated areas:

29 Highlights NEW LAWS 2003

• Fort Snelling State Park between Minneapolis state-supported resource to promote research Sibley County. and St. Paul; and diversification of mining assets. (Sec. 5) Local residents are interested in expanded • Lake Bemidji State Park in north central Most provisions are effective Aug. 1, 2003, recreational opportunities, such as horseback Minnesota; with the exception of the DNR goose manage- riding trails, but DNR budget reductions have • Tettegouche State Park on the Lake Superior ment change and certain transactions in Cass, rolled back staff from two to one in the area north shore; Crow Wing, and St. Louis counties, which are and park officials are unable to visit the area • Iron Range Off-Highway Vehicle Recreation effective June 13, 2003. as often as they would like, according to de- Area in northeastern Minnesota; An omnibus lands bill passed the House partment testimony. • Paul Bunyan State Forest near Park Rapids in during the regular session, but did not make The new law is effective May 3, 2003, but Sibley northwestern Minnesota; it out of the Senate. That bill contained sev- County must submit a resolution authorizing • Savanna State Forest near Jacobson, west of eral provisions relating to state-owned Perma- the land conveyance. If Sibley County declines Duluth; nent School Fund lands within the Boundary to take over the area, the city of Henderson may • Waukenabo State Forest in Aitkin County; Waters Canoe Area Wilderness, including a assume responsibility after submitting a request and possible federal land exchange and fee-for- in the form of a resolution. • Big Bog State Recreation Area near Upper land-use authorization, that were dropped in The new law specifies that the land will re- Red Lake in north-central Minnesota. the special session legislation. vert to state ownership if the county or city Land is deleted in the following areas: Rep. Larry Howes (R-Walker) and Sen. Tom does not keep it open to the general public, • Tettegouche State Park; Saxhaug (DFL-Grand Rapids) sponsored the but it does authorize the new owners to charge • Foot Hills State Forest in north-central new law. a fee for use of the land or certain services. Minnesota; 2003 Special Session: HF13*/SF9/CH13 Rep. Laura Brod (R-New Prague) and Sen. • Kabetogama State Forest in northeastern Thomas Neuville (R-Northfield) sponsored Minnesota; the measure. • Mississippi Headwaters State Forest near Lake Sprinklin’ in the rain HF850*/SF841/CH24 Itasca; A new law aims to reduce water bills and • Red Lake State Forest in north-central unnecessary irrigation. Minnesota near Red Lake; and All new landscape irrigation systems in- • Red Lake Wildlife Management Area. stalled after July 1, 2003, must have mecha- Soil and water policies (Secs. 7-12) nisms to prevent sprinklers from operating The laws governing Minnesota’s 91 soil and The new law will also establish boundaries during rainstorms and at times when the water conservation districts were first drafted for Greenleaf State Park in Meeker County, but ground is saturated to a pre-programmed in 1937 in response to Dust Bowl environ- specifies that the Department of Natural Re- level, under the new law. The systems are in- mental conditions. A new law will update those sources (DNR) may not use the general land tended to sense when sprinkling and irriga- policy statements to reflect modern land and acquisition account to pay for the land. tion is unnecessary and inhibit or interrupt water management concepts. (Sec. 6) And the new law authorizes, under the watering mechanisms. Effective Aug. 1, 2003, the new law also will certain conditions, various private and public The average cost of the rainfall sensor is $30 change the petition process to establish, con- land sales, conveyances, and exchanges in for a residential system, according to testimony solidate, divide, or terminate conservation Aitkin, Beltrami, Cass, Crow Wing, Itasca, from landscape professionals. districts. Koochiching, Lake, Lake of the Woods, Similar legislation passed the House and Previously, the statute read that “improper Norman, Scott, St. Louis, and Wadena coun- Senate in 1999 but was vetoed by then-Gov. land use practices have caused serious wind and ties. (Secs. 14-33) Jesse Ventura, who called it an unenforceable water erosion of the land of this state, the runoff Also under the new law, language authoriz- government mandate. of polluting materials, increased costs to maining a whitewater trail on the Mississippi River The legislation was introduced again at the tain agricultural productivity, increased energy in Minneapolis is modified to be less restric- behest of landscape industry representatives costs and increased flood damage.” tive in its boundary designation. Previously, who said they wanted to “level the playing The new law will strike that introduction the statute limited kayakers and others to an field” in competitive bidding situations, ac- and replace it with what proponents describe area below the Stone Arch Bridge, and the new cording to House sponsor Rep. Dennis as more positive language. law will clarify that the trail follows a larger Ozment (R-Rosemount). “Maintaining and conserving the quality of route near St. Anthony Falls. (Sec. 3) Sen. John Marty (DFL-Roseville) is the Sen- soil and water for the environmental and eco- In response to a dispute between the DNR ate sponsor. nomic benefits they produce, preventing deg- and the Minnesota Waterfowl Association over HF335*/SF781/CH44 radation and restoring degraded soil and the documentation of grant money expendi- water resources of this state contribute greatly tures, the new law alters the way the depart- to the health, safety, economic well-being, and ment administers technical agreements with general welfare of this state and its citizens,” private farmland owners and local govern- Management change reads the new language. ments relating to Canadian geese hunting and A new law will allow the Department of The new law does not refer to “enhancing” management. (Sec. 13) Natural Resources (DNR) to turn over own- the quality of soil and water and it does not Finally, the new law will re-establish the ership and management of a portion of the grant districts levy authority, as the House Minerals Coordinating Commission as a Minnesota Valley State Recreation Area to version of the bill did upon introduction.

30 NEW Highlights LAWS 2003

Rep. Ray Cox (R-Northfield) and Sen. Steve Since 1994, the state has required birth fami- they traveled for a few weeks for a vacation, Murphy (DFL-Red Wing) sponsored the lies to provide prospective adoptive parents the courts considered that a break and they measure. with detailed social and medical histories of would no longer qualify for the law’s provi- HF414*/SF392/CH104 their families. That information is collected on sions. The new law clarifies that the six-month a particular form developed by the Depart- or one-year time period need not be Policy provisions ment of Human Services that is designed not consecutive. (See Agriculture, page 9) to reveal any personally identifiable informa- The law is effective Aug. 1, 2003. tion about the biological parents or birth HF457/SF356*/CH7 ‘Hogs, frogs, and jobs’ families. (See Budget, page 12) The new law states that when an adopted Substitute teachers Timber sales modernized person or adoptive parent requests the birth (See Children, page 16) family’s social and medical history adoption (See Business, page 16) Correcting burial errors agencies must provide the information col- Paying for parks lected on that form. (See Consumers, page 18) (See Development, page 21) In addition, agencies will have to use the School funding Additional nuclear storage same form when requesting information from (See Education, page 22) (See Energy, page 28) birth parents who had not previously given it. Rep. Lynne Osterman (R-New Hope), an Abortion consent measure Claims bill vetoed, revived adoptee herself, told a House committee that (See Health, page 37) (See Government, page 35) she has had a very difficult time tracking down Medical assistance choice Creating lake districts important medical information from her birth (See Health, page 39) (See Greater Minnesota, page 36) parents. She said a lack of uniform reporting requirements compound the problem. MHFA housekeeping Watershed district billing authority The information can be useful in determin- (See Housing, page 39) (See Greater Minnesota, page 36) ing the best medical treatments for a given in- Benefits adjusted, work plans begun Controlling the cash dividual based on family medical history. (See Human Services, page 45) (See Local Government, page 55) Rep. Stephanie Olsen (R-Brooklyn Park) and Sen. David Knutson (R-Burnsville) spon- Managed care, programming projects Handgun permit law sored the legislation. (See Human Services, page 47) (See Safety, page 58) HF653/SF727*/CH68 Guardians for vulnerable Minnesotans Pesticide fund transfer rejected (See Law, page 53) (See Vetoed Bills, page 73) Common provisions Wetlands dispute vetoed Custody changes (See Taxes, page 63) A new law will allow parents to give up cus- (See Vetoed Bills, page 73) Enhancing abuse penalty tody of a child to someone outside their fam- Designating fair game (See Bills in Limbo, page 76) ily, as long as certain parties all agree to the (See Bills in Limbo, page 85) change. Student survey consent Sponsored by Rep. Mary Liz Holberg (See Bills in Limbo, page 79) (R-Lakeville) and Sen. Richard Cohen (DFL- Child support changes stall ★ ETHICS St. Paul), the new law will change a law that currently only allows parents to give custody (See Bills in Limbo, page 83) Conflict of interest change of a child to another family member. Both Surrogate pregnancies (See Local Government, page 54) parents must agree with the decision. (See Bills in Limbo, page 83) The law also corrects a “misunderstanding” Seeking office as employees between the Legislature and the courts over a Limiting family planning grants (See Local Government, page 55) law allowing de facto custody of children. Un- (See Bills in Limbo, page 87) Distorted photographs der a law passed in 2002, individuals or Crib safety (See Bills in Limbo, page 81) couples who have cared for a child for one year (See Bills in Limbo, page 91) or more without a parent’s active participation can take custody of that child. For chil- FAMILY dren under age 3, the time limit is six months. ★ Courts applying the 2002 law held that the ★ GAMBLING time a child spent with the third party custo- Parental history dian must be consecutive. Holberg said this Linking bingo games Effective Aug. 1, 2003, a new law will make was not the intent of the law. She said there A new law will allow multiple bingo sites to it easier for Minnesota’s adoptees and their are instances where children lived the entire be linked electronically, potentially allowing parents to get social and medical background six-month or one-year time period specified participants to win a larger pool of money. information from biological parents. under the law with their grandparents, but if Currently, single site bingo jackpots are

31 Highlights NEW LAWS 2003 capped at $200 per game, but supporters say Total appropriations for the program is the prize could increase to $8,000 to $9,000 if ★ GOVERNMENT $52.7 million including $15.5 million from the several halls link together. special revenue fund for public safety answer- Those provisions were amended onto the Funding state departments, offices ing points. legislation, which House sponsor Rep. Carl The omnibus state government finance law In addition, the Public Safety Radio Plan- Jacobson (R-Vadnais Heights) described on allocates more than $550.9 million in general ning Commission will study and make recom- the House floor as “clarifying language and fund dollars for state agencies in the 2004-05 mendations by Jan. 15, 2004 on the feasibility definitions” for the Minnesota Gambling biennium. of consolidating public safety answering Control Board. Sen. Jim Vickerman (DFL- The total amount in the law calls for nearly points. Minimum standards for answering Tracy) was the Senate sponsor. $637.6 million in spending, including various points and possible funding sources for con- The most significant change to current law special funds. solidation are also to be recommended. (Art. is allowing rent paid by an organization for Rep. Bill Haas (R-Champlin) and Sen. Jane 1, Sec. 29) space leased for gambling to be based on a Ranum (DFL-Mpls) were the sponsors of the percentage of gross profit. measure. Cost saving measures The new law also makes changes in existing The following are highlights of the law, ef- A main theme in Gov. Tim Pawlenty’s bud- law that authorizes school districts and fective July 1, 2003, unless otherwise noted. get documents was the need for state govern- booster groups to conduct raffles to support 2003 Special Session: HF1*/SF1/CH1 ment to do more with fewer resources. The law high school programs. Raffle sponsors must features a number of provisions to encourage now sell all tickets for the same price, and only Appropriations that idea. to people age 18 and older. Raffle sponsors The law represents a 10 percent to 15 per- The state’s finance commissioner may re- must also report the amount of gross receipts cent reduction from the 2002-03 biennium for quire direct deposit for all state employees paid received, the total expenses for the raffles, the most state departments and constitutional by the state payroll system. In addition, recipi- total prizes awarded, and an accounting of the offices. ents of payments from the state treasury may expenditures from the gross receipts of the Among other reductions is a 9.6 percent cut be required to supply bank routing informa- raffles to the gambling control board if a raffle for the Legislature, including a House reduction so payments can be made electronically. exceeds $12,000 in gross receipts in a calen- tion of 8.5 percent and a Senate cut of 9 per- Previously, only those receiving more than 10 dar year, or $5,000 in a single raffle. cent. Reductions to the Legislative payments or those receiving in excess of The law takes effect Aug. 1, 2003. Coordinating Commission equal about $10,000 annually had to supply the informa- HF1244*/SF1153/CH110 15 percent, including the elimination of the tion. (Art. 2, Secs. 35-36) Subcommittee on Geographic Information Funding state departments Systems. In addition, legislative television (See Government, page 32) funding is now appropriated to the commission. (Art. 1, Sec. 2) Don’t bet on a racino…yet Under the law, the Lawful Gambling Con- (See Bills in Limbo, page 84) trol Board and Minnesota Racing Commis- Another tribal casino sion will become self-supporting through (See Bills in Limbo, page 84) charged fees. Each is given some money in fiscal year 2004 to begin the conversion, but the Sports boards organizations must repay those funds and (See Bills in Limbo, page 84) support themselves in 2005. (Art. 1, Secs. 21- Authorizing sports fantasy games 22 and Art. 2, Secs. 69-71) (See Bills in Limbo, page 85) New policies, studies Don’t bet on it Along with the appropriations, the law con- (See Bills in Limbo, page 85) tains a number of policy provisions. For example, the commissioner of finance is directed to reduce general fund appropriations to the executive branch state agencies by GAME & FISH $17.6 million. The amount cannot exceed ★ $2.5 million to the Minnesota State Colleges ‘Hogs, frogs, and jobs’ and Universities system, and any cuts to the (See Budget, page 12) constitutional officers must be the same percentage of each officer’s general fund appro- Designating fair game priation. (Art. 1, Sec. 30) PHOTO BY ANDREW VONBANK (See Bills in Limbo, page 85) Under the law, 911 emergency telecommu- The cost for art in newly constructed or renovated nications services will be transferred from the state buildings is capped at the lesser of $100,000 or 1 percent of the project’s total cost, under new Department of Public Safety to the Depart- law. Previous law contained just the 1 percent ment of Administration and the fee will be threshold. increased by 7 cents, from 33 cents to 40 cents.

32 NEW Highlights LAWS 2003

Art in newly constructed or renovated state without a license from the buildings is capped at the lesser of $100,000 Minnesota Lawful Gambling or 1 percent of the project’s total cost. Previ- Control Board. (Art. 2, Secs. ous law contained just the 1 percent thresh- 87, 91, 94, 96, 98) old. The amount available for administration The law also provides that of the program is limited to 10 percent of the beginning Jan. 1, 2004, a li- total amount available for art, under the law. censed organization may (Art. 2, Sec. 40) not put into play a pull-tab The state’s central duplication and printing or tipboard deal that pro- agency is eliminated. PrintComm closed late vides for a prize payout of last year, but reopened after a judge ordered greater than 85 percent of the move. It was losing money each month of the ideal gross of the deal. operation. (Art. 2, Sec. 44) (Art. 2, Sec. 100) The use of reverse auction is expanded to All unclaimed prize include engineering design and computer ser- money from the Minnesota PHOTO BY TOM OLMSCHEID vices. Previously, the electronic bidding pro- State Lottery will now go to The omnibus state government finance law provides $195,000 each cess where bidders can see what competitors the state’s general fund. Pre- year for equipment grants to Minnesota Public Radio, Inc. to help are offering and then lower their price in or- viously, 42 cents of each stations in Greater Minnesota. der to win the contract was used for some dollar went back into the • the law repeals an existing legal provision that goods, such as computer paper and metal for general fund, 30 cents went to the lottery’s before a contract is approved it must be license plates. (Art. 2, Sec. 56) prize pool, and 28 cents went to the environ- determined that no agency has previously The commissioner of administration must ment and natural resources fund. (Art. 2, Sec. performed or contracted for tasks that would determine whether it is cost-effective for agen- 101) be substantially duplicated by the contract; cies to develop and use shared information In the wake of additional gaming facility and and communications technology systems for bills heard by the Legislature in 2003, a provi- • an agency must provide a summary of work the delivery of electronic government services. sion in the law calls for the state lottery direc- done under a contract, including an ap- (Art. 2, Sec. 58) tor to contract with an independent entity to praisal of timeliness, quality, cost, and over- The commissioner of employee relations must perform an economic analysis of the effects a all performance. (Art. 2, Secs. 45-55) evaluate whether joining a multi-state or multi- new facility would have on existing tribal gam- agency drug purchasing program would save ing facilities located in or within Lobbyists money and improve operations of drug benefit 100 miles of the metropolitan area. This would For lobbyists, the law changes the legal defi- programs administered by the department and only occur if the Legislature authorizes the nition of a lobbyist to include a person who is other state agencies. (Art. 2, Sec. 61) lottery to operate a gaming facility in the met- engaged for pay or other consideration of ropolitan area. (Art. 2, Sec. 129) more than $3,000 from all sources for the pur- Gambling issues, fees pose of attempting to influence legislative or In addition to increasing a number of fees re- Contracts for services administrative action. The new law also ex- lating to gambling distributors, pull-tab manu- The law contains a number of provisions cludes certain types of individuals from that facturers, and bingo hall licenses, the law relating to practices of hiring outside contrac- definition, such as those who voluntarily lobby increases the value of raffle prizes that can be tors for state-level professional and technical for a campaign. On Jan. 15, 2004 a one-time awarded by an organization, such as a school, services, including: fee will be charged to lobbyists for each group • a contract may be extended a lobbyist is representing. The Board of Cam- for up to 10 years if it is paign Finance and Public Disclosure must determined the contractor consult with specified groups to develop an will incur upfront costs that equitable fee schedule to recover the board’s cannot be recovered within regulatory costs. (Art. 2, Secs. 18, 24, 134) a two-year period and will The law also states a lobbyist must file a reg- provide cost savings to the istration form with the board within five days state that will be amortized of being engaged by a new individual, asso- over the life of the contract; ciation, political subdivision, or higher edu- • new rules are in place re- cation system. (Art. 2, Sec. 21) quiring the administration commissioner to approve a Insurance changes contract, before implemen- The law prohibits government-owned or tation, in most cases; controlled insurers from doing business in • the attorney general must PHOTO BY ANDREW VONBANK Minnesota. An exception is made if a All unclaimed lottery prize money will go into the state’s general fund, periodically review and company’s sole business in Minnesota in- under a new law. Previously, 42 cents of each dollar went into the evaluate a sample of state volves providing workers’ compensation to a general fund, 30 cents went to the lottery’s prize pool, and 28 cents agency contracts to ensure business located in the insurer’s home state went to the environment and natural resources fund. compliance;

33 Highlights NEW LAWS 2003 whose employees may be eligible for legal publication requirements and conse- Effective Jan. 1, 2004, the state Department Minnesota’s workers’ compensation benefits quences of any potential changes. Among the of Veterans Affairs will have to more closely because they could get injured while working issues expected to be discussed are the pub- guard veterans’ discharge information under in Minnesota. This exception only holds true lishing of legal notices on a city Web site with the law. Any information relating to discharges if the employer’s operations in the state are for just a summary put in the local newspaper. from military service could only be released less than 30 consecutive days and the employer (Art. 2, Sec. 131) to the veteran themselves, their families, or a has no other significant contacts in the state. legal guardian. (See related story, page 66.) Those in Minnesota’s insurance industry Public and private data (Art. 2, Sec. 15) said that North Dakota’s selling of insurance A new law will make a number of changes While much of the law restricts the dissemi- raised concern. An official there said offering to the way Minnesota governments collect and nation of information, some of its provisions the coverage was necessary because a reciproc- use some of the wide variety of data they col- will expand governments’ authority to pass ity agreement that state has with a number of lect from the public. The changes are included along data. states covers employees in an event of an inci- in a larger law making administrative changes For example, it will allow county health, dent, but not in Minnesota where there is no to the state Department of Administration. welfare, human services, corrections, and vet- reciprocity agreement. As a result employees Most provisions take effect Aug. 1, 2003, with erans’ service providers to share basic contact of North Dakota companies working in this exceptions noted below. information about the people they serve state were considered uninsured, and those Effective May 31, 2003, names, addresses, among themselves without the consent of the companies could not obtain competitive Min- e-mail addresses, and telephone numbers subject. (Art. 2, Sec. 9) nesota coverage for incidental exposures. (Art. people submit in order to receive communi- Names and addresses of people receiving 4, Sec. 1) cations from the state lottery will be classified government assistance to rehabilitate housing Additionally, the law orders a study to re- as private data, to be used only by the lottery. will be made public. Current law applies only view the availability and cost to ambulance (Art. 2, Sec. 18) to people receiving aid to purchase housing. services of vehicle and malpractice insurance Another provision will protect data col- The law states that if the recipient were a part- and factors influencing those costs. A recom- lected by state Web sites. Information actively nership or a corporation, the names and ad- mendation on ways to ensure availability of submitted by Web site users or passively col- dresses of the partners or corporate officers affordable insurance is due to the Legislature lected from users’ computers will be classified become public data along with the value of the by Jan. 10, 2004. (Art. 4, Sec. 2) as nonpublic information to be used only for assistance they received. (Art. 2, Sec. 10) evaluating the effectiveness of its Web services The law will also raise requirements gov- Other provisions or for preventing people from “hacking” or erning when a state agency and higher educa- The law calls for the sale of at least tampering with those sites. tion institution must use the designer selection $5.5 million worth of state land with the pro- Users must also be warned before state Web board process for projects. Previously this proceeds deposited in the state’s general fund. sites place a “cookie” on their computer. Cook- cess was required for projects estimated to cost Money is provided, as a loan, to the Adminis- ies are used to track users’ preferences and to $750,000 or more or carry fees of $60,000 or tration Department for the costs associated customize the content of a site accordingly. more. The new law raises that threshold to a with selling the land. (Art.1, Sec. 31) Refusing to accept a cookie will not prohibit $2 million project cost and $200,000 in fees. The governor is permitted to employ legal someone from using a Web site, according to (Art. 1, Sec. 4) counsel other than the attorney general if he the law. (Art. 2, Sec. 4) To address the use of outside vendors for or she believes it is in the public’s interest to Information on the state archeologist’s “Un- professional and technical services, a provi- do so because the attorney general is in any platted Burial Site and Earthworks in Minne- sion in the law requires an annual report to way interested adversely to the state. (Art. 2, sota” Web site will be reclassified as security identify which contracts were awarded with- Sec. 17) information, meaning its dissemination to the out following the normal solicitation process Administrative law judges and compensa- public could jeopardize the security of those because officials determined only one source tion judges in the Office of Administrative archeological sites. (Art. 2, Sec. 17) could provide the services. The agency Hearings will be required to retire at age 70. Though crime prevention maps and infor- involved must also explain why only one (Art. 2, Sec. 30) mation about members of block clubs are source was available. (Art. 1, Sec. 7) The Office of Administrative Hearings no classified in the same manner, the new law will The data practices portions of the law were longer must maintain a workers’ compensa- make the location of National Night Out originally part of HF739, sponsored by Rep. Dick tion settlement division office in Detroit Lakes. events public data at the request of a commu- Borrell (R-Waverly). The entire measure, spon- Offices are now in the Twin Cities metropoli- nity group that wanted to be able to legally sored by Rep. Philip Krinkie (R-Shoreview) and tan area and Duluth. (Art. 2, Sec. 121) publicize the community crime prevention Sen. Sharon Marko (DFL-Cottage Grove), was The Department of Public Safety must seek event. (Art. 2, Sec. 7) re-introduced during the 2003 special session grant funding to study the state’s emergency Data about nonpublic school students will and passed by both bodies. medical service preparedness and its relation- also become private under the law. It will pro- 2003 Special Session: HF29/SF10*/CH8 ship to the department’s overall homeland se- hibit public school districts from releasing curity planning. If no grants are awarded there contact information about home-schooled will be no study. (Art. 2, Sec. 124) students and their parents without permission State treasurer duties Local government representatives are to from the parents. The section will also apply The transfer of duties of the former state meet with newspaper representatives and re- to students attending nonpublic schools. treasurer position to the Department of Fi- port to the Legislature by Jan. 15, 2004 on (Art. 2, Sec. 5) nance is now law.

34 NEW Highlights LAWS 2003

The office was officially abolished in Janu- each category of affected parties. • $38,843 to the Department of Revenue for ary 2003 by a constitutional amendment. An example under the new law, said House reimbursement to Forest Pharmaceuticals, Since then the office was handling the sponsor Rep. Marty Seifert (R-Marshall) is, “If Inc., of St. Louis, Mo., for overpayment of treasurer’s duties per an executive reorgani- a Department of Health rule comes down in MinnesotaCare taxes; zation order. the rulemaking process and they are going to • $33,190 for the Office of the Attorney General Sponsored by Rep. Jim Rhodes (R-St. Louis mandate something to our nursing homes, to settle a claim that was not fully covered by Park) and Sen. Geoff Michel (R-Edina), the they have to spell that out in the Statement of the Client Security Board; and law clarifies the duties and makes several other Need and Reasonableness, or if we have the • $54,559 to the Department of Corrections for changes to the Department of Finance. It is Department of Agriculture mandating a rule various inmate medical claims. effective May 28, 2003. on farmers, they are to identify the probable Rep. Bruce Anderson (R-Buffalo Township) For example, previous law mandated that costs that will be borne by the farmer.” and Sen. Wes Skoglund (DFL-Mpls) the department submit a report to the Legis- Administrative rules enacted by state agen- sponsored the legislation. lature regarding the revenue the state collects cies have the full force of law. 2003 Special Session: HF57*/SFnone/CH15 from fees by January of each odd-numbered Sen. Don Betzold (DFL-Fridley) was the year. However, that deadline was missed in Senate sponsor. 2003. HF64/SF61*/CH3 The law changes the deadline to Nov. 30 of Capitol planning board clarifications each even numbered year. That way the Legis- The Capitol Area Architectural and Plan- lature has information to determine whether ning Board is designated by law to preserve fees should be raised or lowered prior to Claims bill vetoed, revived and enhance the dignity, beauty, and architec- session. A new law will authorize the payment of tural integrity of the State Capitol complex. Other changes include: $162,950 in various claims against the state. A new law provides clarifying language with • requiring the department’s state budget for- Each year, a joint House-Senate Subcom- regard to the board, which occasionally occurs mat to include actual expenditures and re- mittee on Claims meets to determine which when duplicative language is found in legis- ceipts for the most recent fiscal year, instead petitions will be funded. All state agencies are lation. The law simply removes redundant and of the two most recent fiscal years; eligible to receive funding to cover the claims. obsolete language, and simplifies grammar • providing that an agency need not charge Gov. Tim Pawlenty vetoed a claims bill and syntax without changing the meaning of interest on a debt if the finance commis- (HF679/SF552*/CH88) passed at the end of legal requirements governing the board. sioner approves the agency determination the regular session that contained a provision Among the 10-member board’s duties are: that costs of charging interest exceed the authorizing an additional $26,000 to reim- • to protect, enhance, and increase the open benefit; burse a Nicollet family. The claim arose after spaces within the capitol area when consid- • allowing state employees to have funds de- the Department of Natural Resources (DNR) ered necessary and desirable to improve the posited directly into more than one financial removed a drain tiling system in a dispute over public enjoyment of them; institution; and a wetlands restoration order. In his veto mes- • to develop proper approaches to the capitol • permitting the finance commissioner to re- sage, Pawlenty said the bill would set a “ter- area for pedestrians, the highway system, quire direct deposit of pay for all state rible precedent for wetlands protection.” (See and mass transit system so that the area employees. related story, page 73.) achieves its maximum importance and HF943*/SF997/CH112 However, the legislation, minus the offend- accessibility; and ing provision, was later revived in the special • to establish flexible framework for growth of session and signed into law. It is effective the capitol buildings in keeping with the June 9, 2003. spirit of the original design. Cost disclosure An environment-related provision retained Board members consist of the lieutenant Effective July 1, 2003, a new law adjusts state in the new law includes a $33,858 payment to governor, four gubernatorial appointees, one agency requirements dealing with administra- Craig Waddell of Remer, Minn., for losses due person chosen by the House, one chosen by tive rules. to a state-imposed moratorium against rais- the Senate, and three chosen by the mayor of When a state agency proposes a rule change, ing sunken logs. The 2001 Legislature reversed St. Paul with the advice and consent of the city the Statement of Need and Reasonableness a law passed the previous year that allowed the council. Of the trio, one must be a resident of must specify the portion of the total costs of commercial recovery of sunken logs after the the planning council district that includes the the rule that will be borne by identifiable cat- DNR and lake associations expressed con- capitol area. A three-member advisory com- egories of affected parties, such as separate cerns that the practice might cause environ- mittee oversees the projects of the board. classes of governmental units, businesses, or mental damage. Gov. Tim Pawlenty recommended moving individuals. The costs of not adopting the pro- Other sections of the new law approve the the board into the Department of Adminis- posed rule must also be specified. following: tration “to seek efficiencies while maintaining Under prior law, the Statement of Need and • $2,500 for the Department of Transportation core services.” The department provides some Reasonableness was required to identify the to pay Daniel and Florence Piekarski of Little support services to the board, and many of the total costs associated with a proposed rule Falls, for the costs of converting to a munici- board’s authorities have functional relation- change, but there was no requirement that the pal water system because of contaminated ships with the divisions of the State Building agency list the portion of total costs affecting groundwater; Construction and Plant Management within

35 Highlights NEW LAWS 2003 the department. that Wisconsin requires a majority of prop- There was fear the board would become ★ GREATER MINNESOTA erty owner signatures. political if the move were made, said Nancy HF582/SF857*/CH91 Stark, the board’s executive secretary. Ulti- Creating lake districts mately, the board was left as a nonpartisan A larger percentage of lake property owners stand-alone organization. will have to sign petitions of consent in order to Rep. Dan Severson (R-Sauk Rapids) and form special lake improvement districts to ini- Watershed district billing authority Sen. Don Betzold (DFL-Fridley) were the tiate water quality improvement projects, under A new law will allow the Clearwater River sponsors of the new law, which is effective a new law effective May 24, 2003. Watershed District to charge for disposing of Aug. 1, 2003. Lake improvement districts may be formed sewage and other waste. HF827/SF768*/CH17 in defined geographic areas for the purpose The Clearwater River Watershed District of improving water quality. The districts can encompasses the drainage area of the In honor of Gov. Freeman be formed through three methods: initiation Clearwater River in central Minnesota, some (See Agriculture, page 9) by a county board acting alone or in conjunc- 160 square miles, including parts of Meeker, tion with another county; by the Department Stearns, and Wright counties. 2003 adjustments of Natural Resources commissioner, should Effective Aug. 1, 2003, the new law will give (See Budget, page 14) the petition be rejected by the county board; the watershed district authority to charge us- Statements allowed and by a petition to the county board. Previ- ers for sewer maintenance expenses on a (See Crime, page 19) ously, only 26 percent of the relevant prop- monthly or quarterly basis. Previously, the erty owners needed to sign a petition for the watershed district had to use their assessment Death certificate issuance provision to be valid. authority. (See Crime, page 20) Sponsored by Rep. Mark Olson (R-Big The new law also will allow overdue charges Merger complete, department renamed Lake) and Sen. Dallas Sams (DFL-Staples), the to be sent to and collected by the county. new law increases the minimum required (See Development, page 21) Rep. Mark Olson (R-Big Lake) and Sen. property owner signatures to 51 percent. Steve Dille (R-Dassel) sponsored the measure. Changing a department name The former percentage was “far from the HF837*/SF1054/CH83 (See Education, page 25) majority needed,” Olson said on the House floor. Securing a majority from the start, he Unnecessary agency licensing Regulating warranty work added, would better assure the success of a lake (See Employment, page 27) (See Agriculture, page 10) improvement district. Contract ratification Wisconsin, which enacted lake improve- $231 million law signed (See Health, page 41) ment district legislation in the 1970s around (See Bonding, page 10) the same time as Minnesota, counts 200 lake Insurance guaranty changes ‘Hogs, frogs, and jobs’ improvement districts, according to Olson. (See Budget, page 12) (See Insurance, page 49) Minnesota claims only 14. The difference is Clarifying interpretation (See Local Government, page 55) Met Council, legislative changes (See Metro Affairs, page 56) Earning full pay (See Military, page 57) Wetlands dispute vetoed (See Vetoed Bills, page 73) State agency rulemaking, local costs (See Vetoed Bills, page 73) Salary and wage freeze (See Bills in Limbo, page 82) Limiting contract negotiations (See Bills in Limbo, page 83) Don’t bet on a racino…yet (See Bills in Limbo, page 84)

Health, dental coverage PHOTO BY TOM OLMSCHEID (See Bills in Limbo, page 87) A larger percentage of lake property owners will have to sign petitions of consent in order to form special lake improvement districts to initiate water quality improvement projects, under a new law.

36 NEW Highlights LAWS 2003

School funding Women seeking an abortion will be re- Effective Aug. 1, 2003, the law will give the (See Education, page 22) quired to certify in writing that they have re- Minnesota Department of Health authority to ceived this information and that they have had collect information and create a database of Solid waste plans ample time to review the information. Once those events in order to find ways to prevent (See Environment, page 29) the doctor receives that written certification, them in the future. Drainage authority alternatives the woman will have given informed consent, It identifies six categories of reportable (See Environment, page 29) under the law. events: The state Department of Health must also • surgical, including surgery performed on the Land transactions approved provide printed and Internet-based informa- wrong body part or leaving a foreign object (See Environment, page 29) tion on the following: in a patient; Management change • names and contact information for organiza- • product, including a malfunctioning device (See Environment, page 30) tions providing pregnancy, childbirth, child- or contaminated medications; rearing and adoption services; • patient protection, including discharging ba- Seeking office as employees • anatomical and physiological characteristics bies to the wrong person or patients going (See Local Government, page 55) of the unborn child in two-week increments; unaccounted for more than four hours; State highway transfers • descriptions of abortion methods used and • case management, including administering a (See Transportation, page 66) the medical risks associated with them; and wrong blood type or other medical errors; • nervous system development characteristics • environmental, including burns, electric Wetlands dispute vetoed of an unborn child of 20 weeks or more and shock, or falls; and (See Vetoed Bills, page 73) information regarding response to pain. • criminal, including care by someone imper- Another tribal casino The new law would apply to all abortions, sonating a doctor, kidnapping, or sexual (See Bills in Limbo, page 84) with the exception of those performed on an assault. emergency basis, the conditions of which are The information will include data about the Increasing rural speed limits laid out in the law. hospital reporting it, but no personally iden- (See Bills in Limbo, page 86) Physicians who perform abortions will also tifiable information about patients involved. Nanotechnology institute have to submit annual reports indicating how The information will not be admissible in many of their patients received the informa- court cases, including malpractice suits or (See Bills in Limbo, page 94) tion, how they received it, and how many went settlements. on to have an abortion. During testimony in a House committee, The new law also provides civil remedies when Dr. Gordon Mosser, executive director of the an abortion was performed or attempted Institute for Clinical Systems Improvement, without complying with the provisions of the law. said the root cause of harm in hospitals is not ★ HEALTH The law states that if it is challenged, the state the errors themselves but the systems that al- Supreme Court will have original jurisdiction in low those errors to happen. As an example, he Abortion consent and procedure the matter. Should the court strike down one part told of a pharmacist dispensing the wrong Effective July 1, 2003, a new law will govern of the law, the rest will remain in effect. medication to a patient because a clerk tran- what women must do to provide informed Rep. Marty Seifert (R-Marshall) and Sen. scribed the doctor’s written prescription in- consent to obtain an abortion and what in- Steve Dille (R-Dassel) sponsored the law. Ini- correctly. While the clerk caused the error, formation physicians must provide to facili- tially, the measure was sponsored by Rep. hospitals and pharmacies would be wise to tate that consent. Mary Liz Holberg (R-Lakeville) and Sen. Jim switch to an electronic prescription system, The law also appropriates $488,000 in Vickerman (DFL-Tracy). eliminating at least one point of possible er- 2004-05 to implement requirements of the law. HF94/SF187*/CH14 ror, he said. It will require Minnesota abortion provid- HF1001/SF1019*/CH99 ers to supply women with specific kinds of information at least 24 hours before perform- ing abortions. Reporting medical errors That information includes: A new law will create a statewide reporting • risks associated with the abortion procedure; system for medical errors and other adverse Assuring long-term care coverage • the probable age of the fetus at the time of the health care events. A new law will give state protection to hold- abortion; Rep. Lynda Boudreau (R-Faribault), who ers of long-term care insurance in the event • the medical risks associated with carrying a sponsored the legislation with Sen. Steve Kelley their insurer becomes bankrupt. child to term; (DFL-Hopkins), said the law is needed be- Effective April 24, 2003, the new law puts • possible availability of Medical Assistance cause Minnesota’s hospitals are not as safe as long-term care insurance in the same category benefits for prenatal, childbirth, and neona- they should be as health and life insurance. Under Minnesota tal costs; Rep. Thomas Huntley (DFL-Duluth) said law, if a company providing those types of in- • financial responsibility of the child’s father; anywhere from 50,000 to 98,000 Americans surance goes bankrupt, the state protects its and die each year because of mistakes made in clients by ensuring up to $300,000 in claims • probable anatomical and physiological char- hospitals, making it a leading cause of death under the Minnesota Life and Health Insur- acteristics of the child. in the nation. ance Guaranty Association.

37 Highlights NEW LAWS 2003

The association is funded by money collected from the insurance companies whose policies it protects. Rep. Greg Davids (R-Preston), House sponsor of the law, said he offered it to clear up potential confusion caused because long-term care was not explicitly covered under that protection. Long-term care insurance covers costs associated with nursing home care and home health care costs. Only a small percentage of Minnesotans currently have the insurance, Davids said. Many legislators have said they want to find ways to increase the use of long- term care insurance to help reduce state health care costs for the elderly. Sen. Ellen Anderson (DFL-St. Paul) was the Senate sponsor. HF51*/SF537/CH19

PHOTO BY TOM OLMSCHEID Organizations that provide care for people with Alzheimer’s disease will have to ensure their staff is trained to work with Alzheimer’s patients, under a new law. Alzheimer’s training Organizations that provide care for people chemical dependency treatment in a confined In addition, the law allows emergency room with Alzheimer’s disease will have to ensure facility for individuals. nurses to sign 72-hour holds for a mentally their staff is trained to work with Alzheimer’s Under the new law, an examiner may be ill person. Previously, such an action required patients, under a new law. someone who either practices diagnosis or a law enforcement officer’s approval, which Effective Aug. 1, 2003, direct care staff and assessment or actively treats mental illness. often delayed the action or pulled officers away supervisors working in nursing homes, home Previously, an examiner was more limited to from other more pressing duties. care, and adult day care facilities will have to those who diagnose disorders, including a li- Sen. Leo Foley (DFL-Coon Rapids) spon- be trained in caring for people with dementia, censed physician or psychologist, and state sored the Senate version. according to the law. That training will include statute did not specify that treatment profes- HF678/SF578*/CH22 an explanation of Alzheimer’s disease and re- sionals could serve as examiners. lated disorders, assistance with activities of Said House sponsor, Rep. Chris DeLaForest daily living, problem solving with challenging (R-Andover), the prior definition was “unnec- behaviors, and appropriate communication essarily excluding qualified people from serv- Allowing prescriptions skills. ing as examiners.” A new law will increase the types of medi- Each organization will have to provide con- cations Minnesota’s sumers with a written description of the na- optometrists may ture and frequency of their staff’s training. prescribe to their pa- Supporters said the law is a matter of con- tients. sumer protection for patients and their fami- The law extends lies, because some organizations have to optometrists some advertised Alzheimer’s disease services they are of the prescribing au- not qualified to deliver. thority currently re- Rep. Jim Abeler (R-Anoka) and Sen. Linda served for Higgins (DFL-Mpls) were the sponsors. ophthalmologists, HF410/SF433*/CH37 who hold medical degrees. Optometrists, who are not medical doctors but hold de- Defining commitment examiners grees in optometry, A new law will make changes to definitions traditionally special- associated with civil commitment proceedings, ize in prescribing PHOTO BY ANDREW VON BANK effective Aug. 1, 2003. glasses and contact A new law increases the types of medications Minnesota optometrists may Civil commitment proceedings involve le- prescribe to their patients. In 1993, legislators gave them authority to prescribe lenses. In 1993, legis- gal actions, typically initiated by family mem- topical medications such as eye drops to patients. The new law allows them lators gave them au- bers or guardians, to obtain mental health or to also prescribe certain oral medications. thority to prescribe

38 NEW Highlights LAWS 2003 topical medications such as eye drops to pa- by state law. Under the Prepaid Medical Assis- whether the new board should also regulate tients. Effective Aug. 1, 2003, the new law al- tance Program, the state pays private sector those professions. lows them to prescribe certain oral health plans a flat rate for each enrollee and Language in the law allows people renew- medications, as well. the plans pay the health care costs based on ing an occupational therapy license to avoid a House sponsor, Rep. Bud Nornes (R-Fergus fees worked out with the providers. late-fee if they have held an equivalent license Falls) framed the legislation as a way to re- Rep. Marty Seifert (R-Marshall) and Sen. in another state or jurisdiction. Normally, a duce medical costs and allow greater access to Dennis Frederickson (R-New Ulm) sponsored $25 late fee is applied if an occupational care by providing more places for patients to the law. therapy license is not renewed within four receive their necessary prescriptions. HF151*/SF396/CH101 years after expiration. In his view, too many patients are sent to Occupational therapists use purposeful ac- expensive medical doctors for prescriptions tivity to maximize the health and indepen- optometrists could easily write themselves, he dence of people with physical or mental illness said. In a House committee, representatives of Administering immunizations or disabilities. the Minnesota Optometric Association said Minnesota pharmacists will be allowed to HF692*/SF574/CH118 oral medications to deal with eye conditions administer two common immunizations, fall within optometrists’ realm of expertise and under a new law. most states already grant such authority. Effective July 1, 2003, pharmacists with A compromise contained in the law limits proper permission and training will be al- Disposing of bodies the scope of the new authority to less power- lowed to give influenza and pneumococcal A new law will add a fourth method for lawful oral medications. Optometrists still can- vaccines to adults. Pharmacists administering fully disposing of a dead human body, effec- not prescribe medications containing strong the immunizations will have to do so under tive Aug. 1, 2003. narcotics, like Tylenol III, according to the law. agreement with a licensed physician. Under existing law, a body must be “decently The compromise came about because op- According to testimony from pharmacist buried, entombed, or cremated” within ponents said the legislation further blurs the groups, they have long been involved in promot- 72 hours after death, with some exceptions. line between optometrists and ophthalmolo- ing and educating people about the value of im- The new law adds alkaline hydrolysis as an ac- gists and could result in prescription of drugs munizations. In addition, the industry indicated ceptable form of disposition for human bod- that help eye conditions but also have harm- there have been increases in immunization rates ies after death. ful effects on other parts of the body. Some in the 36 other states that currently allow phar- Alkaline hydrolysis is a fairly recent tech- suggested optometrists ultimately want to en- macists to immunize patients. nology that uses high temperature, pressure, ter the lucrative laser eye surgery market. Additionally, new pharmacists are already and pH levels to break remains down to a ster- Sen. D. Scott Dibble (DFL-Mpls) sponsored trained in administering vaccinations as part ile liquid and leftover bone fragments. The the legislation in the Senate. of graduate school curriculum, according to benefits of the process, according to scientific HF373/SF418*/CH62 testimony. studies, are that it sterilizes any bacteria or dis- Rep. Jim Abeler (R-Anoka), who sponsored ease that may have existed in the organism and the law with Sen. Linda Higgins (DFL-Mpls), its environmental impacts are much less than Medical assistance choice said the goal of the law is Effective July 1, 2003, a new law will give to be able to immunize certain adoptive families a choice between two more senior citizens, but it types of state medical assistance for their allows pharmacists to vac- adopted children. The act removes the author- cinate anyone over age 18. ity for the Department of Human Services to Any vaccinations per- require children eligible for adoption assis- formed will have to be re- tance to receive medical assistance services ported to a patient’s through prepaid health plans. primary physician. The law will allow adopted children eligible An additional provision for government subsidized health care because of the law establishes a of medical or rehabilitative needs to continue board of licensed profes- to access the same doctors or therapists they sional counselors to had prior to adoption through the fee-for-ser- implement and oversee a vice system. In addition, existing law already new licensure and over- allows for families to receive adoption assis- sight procedure for pro- tance, regardless of their financial situation, fessional counselors. That for non-medical costs related to adopting spe- board will also regulate cial needs children. Parents will be able to vol- alcohol and drug untarily enroll their children in the prepaid councelors, effective July system. 1, 2004. Boards regulating Under the fee-for-service system, the De- marriage and family PHOTO BY TOM OLMSCHEID partment of Human Services directly reim- therapists must report to Pharmacists with proper permission and training will be allowed to give burses health care providers at rates specified the Legislature regarding influenza and pneumococcal vaccines to adults, under a new law.

39 Highlights NEW LAWS 2003 those associated with incineration. under law rather than just registered, as is The law extends the time permitted for the The alkaline hydrolysis process is often less current practice. Most provisions are effective governor to enter into agreement with the expensive and also reduces the volume of the Aug. 1, 2003. Nuclear Regulatory Commission for state material by more than 90 percent. Rep. Jim Abeler (R-Anoka) and Sen. Dallas regulation of nuclear non-power plant mate- It has been most commonly used in dispos- Sams (DFL-Staples) were the sponsors. rials until Aug. 1, 2006. Rep. Judy Soderstrom ing of animal remains, particularly those from HF346/SF333*/CH87 (R-Mora), who sponsored the law with Sen. animals carrying serious diseases. Sheila Kiscaden (IP-Rochester), said the mea- Rep. Duke Powell (R-Burnsville) and Sen. sure “will improve the response time for inci- David Senjem (R-Rochester) were the Expanded job duties dents and will consolidate the regulation of sponsors. A new law will extend the authority of most radioactive materials in the state.” HF1384/SF1071*/CH32 Minnesota’s physician assistants and advanced Originally introduced as HF1332/SF1066 practice registered nurses. by Rep. Jim Abeler (R-Anoka) and Kiscaden, Effective Aug. 1, 2003, the new law will per- the social work section of the law changes the mit physicians to delegate two new tasks to the temporary permit to practice social work to a Title protection two groups of assistants. Physician assistants temporary license; provides for state statute The title of “nurse” will receive official pro- and advanced practice registered nurses will relating to license reinstatement, inactive sta- tection under Minnesota law through a new be allowed to certify a person’s physical dis- tus, and emeritus status of licenses; and law passed by the 2003 Legislature. ability for the purposes of obtaining a disabled changes the fee schedule for a social work li- Even though “licensed practical nurse” and parking permit and to admit patients for cense. The Senate Finance Committee “registered nurse” are already protected titles 72-hour emergency mental health treatment. amended it onto the nuclear bill. under state law, supporters of the legislation Physician assistants are qualified to prac- Under the law, the Board of Social Work said most people associate the generic term tice medicine under a practicing physician’s may issue a temporary license to an applicant nurse with a certain level of training and ex- supervision. Their scope of practice is deter- who, among other things, is not licensed in the pertise and should be protected from people mined by an agreement with that physician. jurisdiction, but has applied for a license, has who claim to be nurses without that training. Advanced practice registered nurses are li- given permission for the completion of a back- Proponents of the new law say that under censed registered nurses who are certified as a ground check, and has a degree from a social current law some organizations providing clinical nurse specialist, nurse anesthetist, work program accredited by the federal Coun- health-related services have been able to ad- nurse-midwife, or nurse practitioner. cil on Social Work Education. A license may vertise they have nurses on their staff to gain In order to receive a disabled parking per- also be granted to someone who is licensed in an image of credibility when those individu- mit in Minnesota, a person must get a signed another state and has applied for a Minnesota als are not actually trained nurses. certification that they have a physical disabil- license. Thirty-seven states currently protect the ity making such a permit necessary. The per- The law also extends the deadline for a re- title. son signing the certification must state port on a study of social work examination However, opponents contend the law is un- whether the disability is permanent or tem- failures from Sept. 1, 2003 to Sept. 1, 2004. The necessary because the state already protects porary and for how long the permit should be report must compare failure rates of those official nursing titles. They expressed concern valid if the disability is temporary. Previously, born in foreign countries and for whom En- that hospital staff providing care to patients only a physician or chiropractor could sign glish is not their first language versus appli- who are perceived to be nurses would be sub- such a certification. cants from other populations taking the ject to discipline under the law. The 72-hour mental health services typically examination, the underlying cause of such People or organizations violating the law by affect a person brought to a hospital or treat- disparity, and recommendations of possible claiming to be nurses will be informed of the ment facility by law enforcement remedies. law and told to desist before any formal ac- officers. Under the law, physicians, physician The nuclear materials provision is effective tion will be taken. assistants, or advanced practice registered May 28, 2003, and the social worker licensure A separate provision of the law will allow nurses trained in diagnosing mental illness provisions take effect Aug. 1, 2003. graduates of foreign nursing schools to work may assess a person to determine if they pose HF1140*/SF1215/CH111 in nursing facilities if they have completed a a danger to themselves or others requiring competency evaluation and a medication emergency treatment. training program. Rep. Jim Abeler (R-Anoka) and Sen. Regulation reviews It also extends the existence of some groups Michelle Fischbach (R-Paynesville) sponsored The commissioner of health will closely ex- that advise the state Board of Medical Prac- the legislation. amine laws and regulations governing the fast- tices on certain issues. Those councils include HF279*/SF229/CH108 growing home healthcare industry, according the Acupuncture Advisory Council, the Res- to a new law. piratory Care Practitioner Advisory Council, The law requires the commissioner to set and the Advisory Council on Licensed Tradi- up a working group to summarize federal tional Midwifery. Those provisions are effec- Regulating social work licenses regulations that burden the state and its home tive July 1, 2003. A bill that started out related to nuclear care providers. The group, comprised of home The law also allows for speech-language materials also dealt with social worker licen- care providers and other interested parties, will pathologists and audiologists to be licensed sure by the time it became law. share its findings with the Legislature, other

40 NEW Highlights LAWS 2003 states, and organizations that advocate for using the coverage. county nursing homes to hire a certified pub- states. Rep. Dennis Ozment (R-Rosemount) said lic accountant to perform audits on their House sponsor Rep. Char Samuelson the change would discriminate against hetero- books. Under previous law, the state auditor (R-New Brighton) said federal requirements sexual couples living together, but are not was required to audit the county nursing putting rigid timeframes on submitting client married. homes. information and governing when supervisory The law allows individuals the ability to use County and municipal hospitals were pre- visits can take place hamper providers’ ability sick or bereavement time for the death, illness, viously granted that authority. In addition, all to do high quality work. or disability of a regular member of the counties will be allowed to use a private ac- Once the findings are made, the law directs employee’s immediate household during the counting firm to perform their audits under the commissioner to work with federal regu- contract period. the omnibus state government finance law. lators and Minnesota’s congressional delega- Bargaining units agreed to domestic part- The new law will give counties and county tion to make changes in federal law giving ner benefits in 2001 contracts, but the Legis- nursing home boards flexibility in perform- more flexibility to states. lature previously warned that the contracts ing audits and managing auditing expenses. The working group is also charged with would not be ratified if the benefits were in- In addition, the state auditor indicated in its studying whether home care licensing proce- cluded. State employees then reverted back to budget documents that the office will try to dures are appropriate and whether separate prior contracts. Organizations such as the perform fewer audits to help contain costs. The federal licenses are necessary. A report on the Minnesota Nurses Association had been office budget was cut 15 percent, consistent issue is due to the Legislature by January 2005. working without a contract or raises since with all constitutional offices. The working group provisions are effective 2001. Rep. Bud Nornes (R-Fergus Falls) and Sen. May 17, 2003. House Speaker Steve Sviggum (R-Kenyon) Cal Larson (R-Fergus Falls) were the sponsors. The Senate amended sections of a separate and Senate Majority Leader John Hottinger HF585/SF479*/CH53 bill (originally HF491) into the legislation. (DFL-St. Peter) were the sponsors. Those sections, which are effective July 1, 2003, HF330/SF293*/CH11 ease some nursing home regulatory standards including: Reducing costs • exempting nursing homes from checking on Hennepin County Medical Center’s health incontinent residents at least every two hours Auditing nursing homes management organization stands to save a if a different interval is specified in a A new law will give county nursing homes the substantial amount of money, under a law. physician’s plan of care, same ability that county and municipal hospi- Effective Aug. 1, 2003, the new law adds the • allowing nursing homes formerly required to tals have with regard to conducting audits. hospital’s health maintenance organization participate in state-mandated quality im- Effective Aug. 1, 2003, the new law allows (HMO) to special provisions applicable to provement programs to develop their own improvement plan instead, and • requiring the human services commissioner to share information about exceptions made for one nursing home with other nursing homes. Sen. Sheila Kiscaden (IP-Rochester) sponsored the legislation in the Senate. HF1251*/SF1266/CH55

Contract ratification After nearly two years of being in limbo, state employee contracts were ratified minus a contentious clause. Effective April 10, 2003, the new law that ratifies the contracts covers the period from July 1, 2001 to June 30, 2003. Some bargaining units were working under interim contracts that allowed for same sex domestic partner benefits, but those benefits PHOTO BY TOM OLMSCHEID are removed in the law. State employee contracts that had been in limbo for nearly two years are now law. Some bargaining units During debate on the House floor, Rep. were working under interim 2003 contracts that allowed for same sex dependent benefits, but in the Karen Clark (DFL-Mpls) unsuccessfully pro- ratified agreement those benefits are removed. The law does allow same-sex domestic partners the posed an amendment that would reinstate the ability to use sick or bereavement time for the death of a regular member of the employee’s immediate household. domestic partner benefits for the 77 families

41 Highlights NEW LAWS 2003 several other county entities for purchasing has specific instances that are cause for Limiting family planning grants goods, materials, supplies, equipment, and discipline. (See Bills in Limbo, page 87) contracted services. The law also outlines other penalties al- Health, dental coverage In 2002, Hennepin County was exempted lowed legally. from the Uniform Municipal Contracting Law The boards affected by the law, include the (See Bills in Limbo, page 87) and other purchasing statutes and authorized following: Cigarette tax proposal falters to make large purchases on behalf of • chiropractic examiners, (See Bills in Limbo, page 92) Hennepin County Medical Center and other • dentistry, clinics by contracting with a private or public • nursing home administrators, cooperative purchasing organization, if the • dietetics and nutrition, purchasing organization’s purchases, rentals, • physical therapy, HIGHER EDUCATION or leases have been made through a competi- • podiatry, ★ tive process. The 2003 Legislature maintained • pharmacy, Funding college, grants this provision with regard to service contracts • veterinary medicine, and The omnibus higher education law provides and added the county’s health maintenance • optometry. less funding for 2004-05 than the University organization (HMO) to the provision. How- The new law helps bring these boards more of Minnesota and the Minnesota State Col- ever, the county board may use any means to into line with the disciplinary proceedings al- leges and Universities (MnSCU) system were purchase incidental goods and services. ready in place for other health-related allocated in the previous biennium, but more In addition, the new law allows the professions. for the state grant program. Hennepin County Board to meet in closed Rep. Laura Brod (R-New Prague) and Sen. Totaling nearly $2.56 billion, the law pro- session on behalf of the HMO to discuss and Wes Skoglund (DFL-Mpls) were the sponsors. vides nearly $1.11 billion for MnSCU and act on specific products or services that are in HF1044*/SF127/CH66 slightly more than $1.1 billion for the univer- direct competition with other providers of sity. For MnSCU, the dollars are $189 million goods or services in the public or private sec- In honor of Gov. Freeman less than received in the past biennium, and tor. The closed session could occur only if dis- (See Agriculture, page 10) $196 million less for the university. However, closure of such information would clearly ‘Hogs, frogs, and jobs’ the MnSCU number is $15 million more than harm the HMO’s competitive position. (See Budget, page 12) recommended by Gov. Tim Pawlenty for fis- Exempting the organization from the con- cal years 2004-05 and the university alloca- tracting and purchasing rules will save 2003 adjustments tion is about $13 million higher. Hennepin County Medical Center $8 million (See Budget, page 14) Rep. Doug Stang (R-Cold Spring) and Sen. a year, said Rep. Ron Abrams (R-Minnetonka), School funding Sandra Pappas (DFL-St. Paul) sponsored the the House sponsor. legislation. (See Education, page 22) Rep. Thomas Huntley (DFL-Duluth) said The following is a look at some of the spe- the law helps a “fine” facility that is currently Funding college, grants cific provisions in the new law, which is effec- losing a lot of money every year. (See Higher Education, page 42) tive July 1, 2003. Removed from the original proposal was a HF772/SF675*/CH133 provision that would have allowed the hospi- Benefits adjusted, work plans begun (See Human Services, page 45) tal to change its governance structure. The University, MnSCU funding, policies measure was protested by some members of Managed care, programming projects Of the dollars for the MnSCU system, the House Local Government and Metropoli- (See Human Services, page 47) $560.9 million is allocated in the first year and tan Affairs Committee, Abrams said, and sub- $547.7 million in the second year. (Art. 1, Sec. 3) sequently deleted. Transfers approved The university will receive $549.4 million in Sen. Ann Rest (DFL-New Hope) was the (See Human Services, page 48) fiscal year 2004 and $552.2 million the follow- Senate sponsor. Health insurance purchasing alliances ing year. (Art. 1, Sec. 4) HF845/SF770*/CH98 (See Insurance, page 49) The law also calls for some administrative changes for the MnSCU system, including that Notifying homeowners of cancellation the chancellor, vice-chancellor, or institution (See Insurance, page 49) president may now have a deferred compensation plan in their contract. It also Professional board powers Aid formulas, new taxing districts (See Taxes, page 61) provides a broader array of deferred compen- A new law will allow a number of health- sation investment options for MnSCU em- related profession boards to impose civil pen- Common provisions ployees, consistent with federal law and alties and require that costs associated with (See Taxes, page 63) options now being offered. (Art. 4, Secs. 1-2) investigations in disciplinary proceedings be The MnSCU Board of Trustees may use reimbursed. Promoting abstinence (See Bills in Limbo, page 77) specified state or local contracting or purchas- Effective Aug. 1, 2003, the new law will al- ing authority in state law, such as reverse auc- low boards to impose up to $10,000 in civil Data collection stalled tion. (Art. 4, Sec. 4) penalties for violations of board regulations (See Bills in Limbo, page 86) The law clarifies the board’s authority to that require disciplinary action. Each board grant easements over land under its

42 NEW Highlights LAWS 2003

will be limited to the tuition and fee maxi- mums established in law for two-year institutions. (Art. 2, Secs. 11, 14) • A student must also now apply within 14 days of the start of a term to receive dollars for that term. Previously students had until the end of the academic year to apply for grants. (Art. 2, Sec. 13) • The child-care grant maximum is reduced from $2,600 to $2,200 per academic year. It was increased from $2,000 to $2,600 two years prior. (Art. 2, Sec. 15) The cap on revenue bond authority for the Student Educational Loan Fund is increased from $550 million to $850 million. Money from the sale of the revenue bonds is used to make loans to students. (Art. 3, Sec. 3) The office must transfer $30 million from the student loan fund to the budget reserve PHOTO BY ANDREW VONBANK account in the state’s general fund by the end Of the $175 million the Higher Education Services Office will receive in each fiscal year of the 2004-05 biennium, nearly $140.6 million of it is dedicated to the state grant program. The omnibus higher of fiscal year 2003. The money must be re- education law also makes a number of changes regarding state grants, including a reduction in length turned by June 30, 2007. (Art. 1, Sec. 6) A sub- of eligibility, application deadlines, and the maximum amount students can receive in child-care grants. sequent law voids this provision and transfers $30 million from the Student Educational jurisdiction. Additionally, the board may now Services Office will receive in each fiscal year Loan Fund with no repayment provision. accept federal money for the improvement of (an 11 percent biennial increase), nearly property under its control. (Art. 4, Secs. 7, 8) $140.6 million of it is dedicated to the state Other policy issues Fond du Lac Community and Tribal Col- grant program. By shifting dollars from work- The director of the Higher Education Services lege in Cloquet may offer a four-year degree study and child-care grants (which the office Office will be appointed by the governor, effec- in elementary education. The school also un- can now no longer do), $133 million was avail- tive Dec. 30, 2003 or when a vacancy occurs, successfully sought the ability to offer a four- able for fiscal year 2003, but it was not enough. whichever is sooner. In addition, a gubernato- year degree in sustainable development. The office had to cut off applications in Janu- rial appointee is added to the Higher Education Previous law limited community colleges to ary 2003 in order to fund what was previously Advisory Council. (Art. 2, Secs. 3, 6) two-year degrees. (Art. 2, Sec. 18) allocated. Each postsecondary institution must pro- Two students will be added to the Regent The law also makes a number of changes vide information about meningitis to all new Candidate Advisory Council, which recom- regarding state grants. students living in on-campus housing, includ- mends candidates to the Legislature for the • The new law removes the asset disregard for ing the availability and effectiveness of any university’s governing body. (Art. 3, Sec. 25) program eligibility. Since 1998-99, up to vaccine. (Art. 2, Sec. 2) $25,000 in savings and other assets could be The expiration of the Minnesota Agricul- Mayo Medical Foundation subtracted from the federal calculation of ture Education Leadership Council is ex- The foundation will receive $2.78 million, net worth before determining a family con- tended five years, until June 30, 2008. The under the law. This equates to a 12.3 percent tribution. (Art. 2, Sec. 8) council, created in 1997 to review and encour- ($492,000) reduction when compared to fis- • The calculation of a state grant award is now age effective agriculture education programs cal years 2002-03. based on the average tuition and fees charged in schools and to operate the Minnesota Cen- This funding level provides $1.06 million by the institution rather than the actual tu- ter for Agricultural Education, is housed in the for the Mayo Family Practice and Graduate ition and fees. (Art. 2, Sec. 9) University of Minnesota’s College of Agricul- Residency Program, $1.03 million for the • To help prevent a program deficit, the office tural, Food and Environmental Sciences. (Art. Mayo Medical School, and $692,000 for the must prorate grant awards by equally 2, Sec. 1) St. Cloud Hospital-Mayo Family Practice Resi- reducing the amounts through an additional The law requests that the Minnesota Asso- dency Program. The state provides supple- surcharge to the applicant’s assigned family ciation of Colleges and Teacher Education col- mental funding to Minnesota students responsibility and an additional percentage lect data from its member institutions to enrolled in these programs, which help pre- added to the student responsibility. The dol- measure the involvement of its teacher edu- pare doctors to practice primary care in rural lar amounts in each category must be equal. cation programs and faculty with the state’s areas. (Art. 1, Sec. 5) (Art. 2, Sec. 10) K-12 schools. The data must include at least • Eligibility for the state grant program and the extent to which faculty are licensed to teach State grant changes child-care grant program is reduced from 10 at the K-12 level, teaching experience of that Money for the state grant program will in- to eight equivalent semesters. It was increased faculty within the previous five years, and de- crease in 2004-05, under the law. to 10 semesters two years ago. Students in scriptions of college and faculty collabora- Of the $175 million the Higher Education two-year programs at four-year institutions tions with K-12 teachers and students. The

43 Highlights NEW LAWS 2003 report is due to the Legislature by Feb. 15, 2004. Condemnation hearings Redefining a displaced person (Art. 1, Sec. 8) Timelines regulating hearings for landlords Effective Aug. 1, 2003, federal guidelines whose rental property faces condemnation defining a displaced person will be used in will be relaxed slightly, under a new law. eminent domain proceedings, under a new $231 million law signed The law came at the behest of the city of law. (See Bonding, page 10) Minneapolis, which recently finished a pilot Eminent domain defines the power to take project. The project aimed to improve com- private property for public use, typically by a Funding state departments pliance with the tenant remedy act by utiliz- public entity, but also sometimes by private (See Government, page 32) ing civil action prior to criminal procedures entities to exercise functions of a public na- Tuition reimbursement extended against a landlord. ture. It is typically used at the local level in road (See Military, page 57) Only six properties were condemned due to construction and redevelopment projects. lack of maintenance during the one-year The removed provisions defined displaced American Indian scholarship office project, down from 144 properties the year people as those who move because of an (See Bills in Limbo, page 80) prior, according to city attorney Erik Nilsson, acquisition undertaken by the authority ac- Allocating state grant dollars testifying at a February House committee quiring the property or anyone involved in a (See Bills in Limbo, page 87) meeting. The city strives to rectify potential rehabilitation as a result of the acquisition. The condemnation situations because tenants are new requirements will more clearly define that Opt-in plan for student fees forced to move from condemned rental units. a displaced person moves as a result of writ- (See Bills in Limbo, page 87) Prior law required that a hearing for the ten notice that their property is being acquired. Studying abroad landlord be scheduled within five to 10 days It will also prohibit someone unlawfully oc- (See Bills in Limbo, page 88) of a housing violation notice. Effective Aug. 1, cupying a residence to obtain relocation ex- 2003, the new law will allow between seven and istence from qualifying as a displaced person. State grant eligibility 14 days. The additional timeline will allow the According to House sponsor, Rep. Lynne (See Bills in Limbo, page 88) city flexibility to better accommodate the Osterman (R-New Hope), the new law arose No grants for summer classes procedures. from a situation where several residents liv- (See Bills in Limbo, page 88) The extended hearing timeline will apply to ing along a road under construction ap- all relevant situations throughout the state. proached the city to see if it might be interested No voluntarism requirement The sponsors are Rep. Len Biernat (DFL- in acquiring their properties, though they were (See Bills in Limbo, page 88) Mpls) and Sen. Wes Skoglund (DFL-Mpls). not affected directly by the construction HF264/SF230*/CH114 project. In a voluntary acquisition,

★ HOUSING Security deposits Landlords will not have to pay as much interest to tenants when returning their security deposits, under a new law. According to long-standing law, landlords must accumulate interest on the rental deposits and give that interest to the tenant, along with whatever portion of the deposit is return- able, when the tenant moves. The interest rate was set at 3 percent until May 1, 2004, and at 4 percent thereafter. The new law, however, reduces the interest rate to 1 percent, effective Aug. 1, 2003. The change reflects the market in which interest earnings are on average between zero and 1 percent. The payable interest amount has been al- tered numerous times to reflect market changes since the law was enacted in 1973. The current rate of 3 percent was set in 1996, and has remained at 3 percent during three subsequent reviews. The sponsors were Rep. Arlon Lindner (R-Corcoran) and Sen. James Metzen (DFL- PHOTO BY ANDREW VONBANK South St. Paul). Timelines regulating hearings for landlords whose rental property faces condemnation will be relaxed HF438/SF645*/CH52 slightly. Under the new law, a hearing for the landlord must be scheduled within seven to 14 days of a housing violation notice. Previously, the timeline was five to 10 days.

44 NEW Highlights LAWS 2003 homeowners would typically not be eligible Housing corporations created manufactured home is considered as an im- for relocation costs, but some homeowners Affordable housing efforts in St. Cloud and provement to the real property and is then sued the city for those benefits. other Minnesota cities will be enhanced, un- treated like any other type of home. A new cer- The legal actions and settlement costs added der a new law. tificate of title can be obtained if the home nearly $300,000 to the transaction for the city. Effective May 17, 2003, the new law will al- must be moved again. The new law is intended to remedy such situ- low housing and redevelopment authorities to Sen. James Metzen (DFL-South St. Paul) ations, she said. form corporations for developing, preserving, sponsored the law in that body. In addition, the new law will bring and rehabilitating housing projects. Such en- HF894*/SF878/CH90 Minnesota’s displaced person regulations into tities could also become members of existing line with the federal requirements. Historically, corporations. ‘Hogs, frogs, and jobs’ the state and federal requirements have been Previously, housing and redevelopment au- (See Budget, page 12) similar. thorities were prohibited by law from form- Background check information Sen. David Gaither (R-Plymouth) was the ing corporations or limited liability (See Crime, page 20) Senate sponsor. partnerships. Without being a member of a HF754*/SF688/CH117 corporation, housing authorities found it dif- Benefits adjusted, work plans begun ficult to gain federal assistance and sell low- (See Human Services, page 45) income housing tax credits to raise funds for low-income housing projects. Notifying homeowners of cancellation (See Insurance, page 49) MHFA housekeeping Proponents of the new law said the sale of A new law makes a number of policy low-income housing tax credits will promote Property-related adjustments changes to the programs and operations of the private sector investment and therefore reduce (See Law, page 53) the need of affordable housing initiatives on Minnesota Housing Finance Agency. Aid formulas, new taxing districts “By implementing these changes the hous- state taxpayer dollars. The new law will also (See Taxes, page 61) ing finance agency will be better able to uti- help housing authorities gain acceptance in the lize state funds and provide more financial community, supporters said. Ensuring coverage exists opportunities to potential homebuyers,” said The sponsors of the new law were Rep. Dan (See Bills in Limbo, page 89) Rep. Lynne Osterman (R-New Hope), the Severson (R-Sauk Rapids) and Sen. Ann Rest Sprinkler plan doused House sponsor. (DFL-New Hope). (See Bills in Limbo, page 92) The agency was created in 1971. According HF1143/SF891*/CH50 to its Web site, it has assisted more than Market value issues 400,000 households to either purchase a home (See Bills in Limbo, page 93) for the first time or fix up existing homes. It Manufactured home titles also helps build and improve affordable apart- A problem associated with obtaining loans ments, single-family homes, shelters, and tran- to purchase a manufactured home has been sitional and supportive housing. It also rectified, under a new law. HUMAN SERVICES partners with community organizations to ★ Rep. Tom Pugh (DFL-South St. Paul), the revitalize older neighborhoods. Benefits adjusted, work programs begun House sponsor, said on the House floor that Among changes in the new law, effective the law came about “as a result of a problem The health and human services finance law Aug. 1, 2003 unless otherwise noted, are: in the manufactured home industry, whereby that appropriates about $8.7 billion in 2004- • the agency may make loans to refinance the U.S. Bank, a major lender in that industry, 05 for the state’s health care, public assistance, existing indebtedness of owners of rental found a problem with state statute relating to long-term care, and child-care programs, as property that is secured by federally assisted titles of manufactured homes. Because of that well as the departments of Health and Human housing in order to obtain the owner’s agree- title problem they indicated that they would Services, includes a number of adjustments to ment to participate in a federally assisted not lend on manufactured home purchases.” benefit levels. Nearly $7.5 billion of the law’s rental housing program, The issue was that by definition a manu- appropriation comes from the state’s general • authorizes demolition and new construction factured home could be considered real or fund. under the Minnesota urban and rural home- personal property. Lenders want it made clear The law represents a reduction of about steading program if new construction is less to buyers that if someone gets a loan for a $960 million from anticipated 2004-05 fund- expensive than rehabilitation, manufactured home it is considered to be real ing levels, including $805 million in projected • increases the agency’s debt ceiling from property and that they cannot then easily general fund spending. Though funding in the $2.4 billion to $3 billion, and move it somewhere else. bill is higher than in 2002-03, with the state • permits the agency, effective July 1, 2003, to Under the law, effective May 24, 2003, the facing a $4.2 billion projected deficit, a num- transfer money in a debt service reserve fund title for a manufactured home is to be surren- ber of programs were cut to accommodate to other agency funds periodically instead of dered to the Department of Public Safety for increased health care costs within existing rev- only at the end of the year. cancellation if the home is affixed to real prop- enue streams. Sen. Tom Saxhaug (DFL-Grand Rapids) erty and financed by a mortgage on the real The law provides for a new welfare struc- was the Senate sponsor. property. When the title is submitted, the ture that will focus first on finding employ- HF1059*/SF1034/CH61 ment for applicants. In addition, it

45 Highlights NEW LAWS 2003 consolidates a number of health care and such requirements, though the law does allow the state to specify which foods may be welfare-related grant programs. It will con- for a year of transition time. That work plan purchased with federal Food Stamp Program tinue programs for nursing home and elderly would extend beyond the initial four-month benefits. (Art. 1, Sec. 104) care, as well as programs for mental health and period, throughout the duration of the Families already receiving MFIP cash ben- the mentally disabled, but spending will be fo- 60-month time limit for state welfare benefits. efits will not receive increased cash benefits as cused more toward those who can still be Employment plans must be reviewed at least a result of the birth of an additional child, served in a non-institutional setting or are at every three months to determine whether ac- under the law, with a few exceptions. In addi- risk to be placed in an institution. tivities or hourly requirements should be ad- tion, cases will be closed for families after the The law also transfers remaining tobacco justed. (Art. 1, Sec. 78) seventh occurrence of noncompliance with endowment funds – slightly more than $1 bil- The measure grew out of a successful pilot program requirements and they will lose ben- lion — in order to balance the budget. It also program in Dakota County, where 75 percent efits. (Art. 1, Secs. 37, 62) makes the following appropriations: of participants no longer needed state welfare • more than $3 billion in the biennium for all benefits after five months, compared to the Long-term care basic health care grants; 30 percent who made a successful transition In an attempt to maintain services for indi- • nearly $3 billion for continuing care grants, from the traditional program, according to the viduals, surcharges for each licensed bed in a including long-term care, mental health, and Department of Human Services. nursing home facility will increase from $990 chemical dependency grants; Under the law, employable is defined as be- to $2,815, beginning July 15, 2003, and a new • nearly $240 million for economic support ing able to fill existing positions in the labor surcharge of $1,040 per bed in an intermedi- grants from the general fund, augmented by market, without regard to whether those po- ate care facility for the mentally retarded will another $406 million in federal program sitions are readily available. (Art. 1, Sec. 13) be established, also beginning July 15, 2003. funds; and The new law also requires individuals The law also gives the commissioner the abil- • about $194 million for child-care assistance, deemed to possess employable skills to search ity to lower the surcharge if necessary. formerly administered by the Department for a job for at least 30 hours per week for six (Art. 2, Sec. 13) of Children, Families and Learning. (Art. weeks, and they must accept any reasonable Alternative care programs were reduced by 13C, Secs. 2, 3) offer of employment. (Art. 1, Sec. 78) 1 percent in the law, which could result in Appropriations in the law are effective Post-secondary education training is avail- lower provider rates. The fee schedule for al- July 1, 2003. Other provisions take effect as able, under the work plans, but individuals ternative care services will also be modified, highlighted below. The following are selected must work at least 20 hours per week in under the law. Individuals with income less provisions included in the new law, sponsored unsubsidized employment to be eligible. In than 100 percent of the federal poverty guide- by Rep. Fran Bradley (R-Rochester) and Sen. addition, individuals may have their work re- lines, or an annual income of $18,400 for a Linda Berglin (DFL-Mpls). quirements reduced if they seek to attend an family of four in 2003, with assets of less than 2003 Special Session: HF6*/SFnone/CH14 intensive training course that lasts no more $10,000, will pay no fee. All other individuals than 12 weeks when full-time attendance is will pay fees of 5 percent to 30 percent of the Welfare changes required. (Art. 1, Sec. 80) cost of services, depending on their income Several adjustments will be made in the Once completing a post-secondary pro- and assets. The programs serve lower income state’s welfare benefits programs in an effort gram, the individual has six weeks to look for elderly people who remain in their own homes, to focus more resources toward finding em- a job. Previously they had three months. though they are at-risk for needing nursing ployment for beneficiaries and facilitating (Art. 1, Sec. 81) home placement. employment through child-care and transpor- The new law also establishes a consolidated A number of grant programs for senior ser- tation assistance. grant program to provide benefits for those vices, particularly the ones dealing with infor- When people are first evaluated for eligibil- who qualify for certain federal social security mation and other support, will be maintained. ity for welfare benefits, they will enter a four- benefits, such as short-term shelter or utility However, funding for Seniors Agenda for In- month program, called a diversionary work payments, transportation to obtain or keep dependent Living program grants and the se- program, where they will meet with job coun- jobs, and other supported work. Families al- nior nutrition, foster grandparents, retired selors to determine if they are employable. The ready receiving welfare benefits or work pro- senior volunteer, and senior companion pro- counselors are also directed to help families gram services will receive priority under the grams will be reduced. The home sharing obtain any services to support employment, measure. (Art. 1, Sec. 94) grant program and the health care consumer such as child care and transportation, and they Counties are required to develop diversion- assistance grant programs are eliminated.(Art. would be eligible for certain cash benefits ary work programs sometime between July 1, 13C, Sec. 2) while training or looking for a job. (Art. 1, Secs. 2003 and July 1, 2004. The law also includes a provision directing 12, 102) The new law also reduces the point at which the commissioner of human services to study All this will be prior to receiving benefits people will no longer be eligible for welfare whether certain changes to the system, includ- through the Minnesota Family Investment benefits from 120 percent of federal poverty ing incentives to purchase long-term care in- Program (MFIP), the state’s welfare system. In guidelines for annual income to 115 percent, surance, would improve services and choices addition, food support and health care ben- a reduction from $22,080 to $21,160 for a fam- available to individuals. (Art. 2, Sec. 55) efits are available at any time, for eligible par- ily of four in 2003. (Art. 1, Sec. 39) ticipants. In addition, the new law will allow the De- Health care All individuals will be required to have work partment of Human Services to obtain a In addition, the new law makes numerous plans, including those previously exempt from waiver from the federal government to allow changes to eligibility and other criteria for state

46 NEW Highlights LAWS 2003 health care programs. The state has three 275 percent of federal poverty guidelines to reduced, adjusted, or reorganized under the primary programs: General Assistance Medi- 200 percent and for children from 170 percent law, including state-operated services. Treat- cal Care (GAMC) provides state-funded of the guidelines to 150 percent, effective ment services for adult mental health will be health care primarily to low-income Minne- Feb. 1, 2004. (Art. 12, Secs. 19, 20) restructured under the bill. And certain men- sotans ineligible for other state and federal Parents will no longer be eligible for tal health screenings for children, particularly health care programs; MinnesotaCare is the MinnesotaCare when the family income ex- those exposed to violent or threatening envi- state’s subsidized health care program for low- ceeds $50,000. Effective Feb. 1, 2004, parents’ ronments, will receive additional funding. and moderate-income families; and Medical eligibility will end when income exceeds (Art. 13C, Sec. 2) Assistance (MA) is the state’s Medicaid pro- $50,000 or 275 percent of federal poverty Home and community-based services will gram and is funded by state and federal dol- guidelines, whichever is lower. (Art. 12, Sec. 73) be focused on individuals who officials deter- lars. mine to be at the most risk for institutional Effective Oct. 1, 2003, General Assistance Child-care assistance placement, according to the law. As part of that Medical Care enrollees, with incomes that do Sliding fee child-care assistance will also philosophy, flexibility may be built into pro- not exceeding 75 percent of the federal pov- change under the law. grams to facilitate treatment in an individual’s erty guidelines, or $6,735 for a single person, It will make families earning no more than home setting. The services affected by this will continue to receive the full program ben- 175 percent of federal poverty guidelines, or policy include: efit set, while enrollees with incomes greater $32,200 for a family of four, eligible for child- • waivers for mental retardation and related than 75 percent but not exceeding 175 percent care assistance at program entrance. Once a fam- conditions, community alternatives for dis- of the guidelines, or $15,715 for a single per- ily reaches 250 percent of guidelines, or abled individuals, and those with traumatic son, will receive inpatient hospital and related $46,000 for a family of four, it must exit the pro- brain injuries; physician benefits. The program spend-down gram. Previously, people were eligible up to • day training and rehabilitation services; provisions and retroactive coverage are elimi- 75 percent of state median income, or • consumer support grants; and nated, under the new law. These changes are $52,915 for a family of four. (Art. 9, Sec. 14) • mental health and chemical health treatment, expected to result in a $104 million savings to A new parent fee schedule is established including residential facilities. the general fund over the biennium. (Art. 12, under the law, based on a percentage of the Eligibility for some programs has been ad- Sec. 72) family’s adjusted gross annual income for justed, and others require families with in- MinnesotaCare enrollees who are single those between 75 percent and 250 percent of comes above the poverty level to pay fees for adults or members of households without federal poverty guidelines. (Art. 9, Sec. 36) certain health care and related services. children will receive the full MinnesotaCare The new law eliminates the at-home infant benefit set if their incomes do not exceed child-care program, which provided aid to 75 percent of federal poverty guidelines, ef- families who would otherwise be eligible for fective Oct. 1, 2003. Single adults and house- child-care assistance, but the child’s parent Managed care, programming projects holds without children with incomes greater provided the child’s care. (Art. 9, Sec. 38) Beginning Aug. 1, 2003, a new law autho- than 75 percent but not exceeding Payments to child-care providers will re- rizes a number of pilot projects to assist indi- 175 percent of poverty guidelines will receive main at 2003 levels for the next two years, viduals with developmental disabilities and a limited package of benefits and will be sub- under the law, and legal non-licensed provid- continuing care needs. ject to a $5,000 annual cap on services. These ers will be reimbursed at a rate equal to The law authorizes the Department of Hu- changes are expected to result in a $108 mil- 80 percent of the rate paid to family child-care man Services to develop managed care options lion savings to the health care access fund over providers. (Art. 9, Secs. 34, 23) for people with mental retardation and related the biennium. (Art. 12, Secs. 68, 69) conditions, including such services as day The law establishes co-payments for certain Prescription drugs training, habilitation, alternative active treat- MA and GAMC services, such as eyeglasses, A new drug discount program will be es- ment, and intermediate care facilities for the prescriptions, and non-preventive care, and it tablished beginning July 1, 2005. mentally retarded. Certain grant variances also modifies adult dental coverage under The program will allow any individual mak- may also be allowed. those programs and MinnesotaCare. (Art. 12, ing up to 250 percent of federal poverty guide- Under the option, facilities may receive a Secs. 34, 37, 69, and 72) lines to be eligible for the discount program, capped Medical Assistance benefit for each Undocumented immigrants will not receive which is based largely on a manufacturer/ person served by the programs. Capped ben- any ongoing general medical assistance pro- pharmacy rebate system. No age requirement efits involve a method of payment for health gram benefits under the law, but they will be is part of the plan. services in which an individual or institution eligible for emergency Medical Assistance. In addition, the Board on Aging will work is paid a set amount for each person served Pregnant women, who are undocumented, with the Department of Human Services to per month, regardless of the number of ser- will continue to be eligible for MA coverage develop a referral program to help people ap- vices provided during that time period. of prenatal services. (Art. 12, Sec. 69) They will ply for free or discounted prescription drugs House sponsor Rep. Paul Kohls also no longer be eligible for MinnesotaCare through pharmaceutical companies offering (R-Victoria) said the measure was brought to benefits. (Art. 12, Sec. 74) That program pro- such programs. (Art. 12, Sec. 11) him by operators of a continuing care facility vides state-subsidized health care to low- and for developmentally disabled adults in his dis- moderate-income people. Continuing care, mental health initiatives trict. The goal of the plan was to eliminate re- In addition, Medical Assistance benefits for A number of programs for individuals with strictions on use of the funds for the project pregnant women will be reduced from mental and physical disabilities will either be so that service providers could adjust services

47 Highlights NEW LAWS 2003 and determine which methods are more ben- In addition, the new law divides sections into A power-limited technician is defined as a eficial and efficient. shorter sections and subdivisions in order to give person licensed and possessing the experience Individuals may opt-in to the projects; par- each separate item its own headnote, providing and knowledge to install, repair, or supervise ticipation is not mandatory. better breaking points and introductory infor- the installation or repair of electrical wiring The law limits participation in the projects mation for users of the statutes. for technology systems. The idea behind the for the first two years to nonprofit long-term Rep. Jim Abeler (R-Anoka) and Sen. Sheila license is that companies would not need to care systems providing specified services to Kiscaden (IP-Rochester) were the sponsors. send licensed electricians to work on low- people to no more than 120 people with de- HF774/SF790*/CH15 powered electrical systems, such as burglar velopmental disabilities in Carver, Hennepin, alarms, landscape lighting, stereos, and tele- and Scott counties. 2003 adjustments communications systems. Sen. Julianne Ortman (R-Chanhassen) (See Budget, page 14) The most significant change in the new law sponsored the Senate version. is an increased time for testing to acquire the Phone bill assistance HF1026*/SF962/CH47 license because the number of applicants was (See Consumers, page 17) significantly greater than anticipated, accord- Paying for treatment ing to House Majority Leader Erik Paulsen (See Bills in Limbo, page 76) (R-Eden Prairie), the House sponsor. “In fact, Transfers approved the demand has greatly outpaced the ability Charter school creation to schedule the exams,” he said. A new law increases the amount of money (See Bills in Limbo, page 78) transferred between the state and counties to Previous law allowed for the licensing of pay for nursing homes in order to bring in an individuals that achieved a minimal score of additional $1.5 million in federal matching 70 percent on the alarm and communication funds. HUMANITIES examination by April 30, 2003. The new law The law was effective April 8, 2003, with ★ allows for licensing of individuals who apply to take the exam by June 30, 2003 and receive portions effective retroactive to Jan.1, 2003, in School funding the 70 percent score by Sept. 30, 2003. order to allow for the transfer to be counted (See Education, page 22) toward the first quarter. The transfers occur Paulsen said there is no fiscal note associ- quarterly. County-owned and operated nurs- History curriculum concerns ated with the law, but, “If we do not act there ing homes pay a certain amount of money per (See Bills in Limbo, page 78) will literally be a $196,000 loss to the state for those folks who have sent in their fee and about licensed bed to the state Medicaid agency. Studying abroad 4,000 applicants will not be able to meet the In addition, the law provides nursing homes (See Bills in Limbo, page 88) with an extra rate adjustment per licensed bed, test requirements (needed to get a license).” based on the amount of Medicare payments Electronic library access He said the money would need to be returned the county receives. (See Bills in Limbo, page 94) and applicants would not be able to perform The law appropriated an additional duties without the license. Surcharge for student learning Sen. Sheila Kiscaden (IP-Rochester) also $1.5 million from the general fund for 2003 (See Bills in Limbo, page 94) in order to capture the federal funds. sponsored the law. The law was sponsored by Rep. Fran Brad- HF645*/SF937/CH58 ley (R-Rochester) and Sen. Linda Berglin (DFL-Mpls). HF1158*/SF993/CH9 ★ IMMIGRATION Maintaining closed mines Mining plants closing due to bankruptcy Hmong memorial and other factors will be required to complete (See Veterans, page 67) specific maintenance duties to keep the plant Simplifying legal requirements Status check ID stalls salable, under a new law. Effective May 26, 2003, the law was amended A new law substantially reorganizes state (See Bills in Limbo, page 91) on the House floor to remove a clause pro- laws relating to human services licensing and tested by the mining industry that would have background studies in an effort to make them required state approval of any mine’s plan to easier to use. liquidate assets that would have diminished Effective April 18, 2003, the new law rear- INDUSTRY ★ the ability to effectively operate the mine and ranges provisions in the state’s Human Ser- its facilities at a later date. vices Licensing Act. The new law takes existing Extended testing time Rep. Tom Rukavina (DFL-Virginia), who laws and places them in a more logical man- A handful of licensing procedure changes sponsored the law with Sen. David Tomassoni ner so that users of the law may find relevant for people working on certain electrical sys- (DFL-Chisholm), offered the amendment to provisions more easily. The new law does not tems is now law. eliminate opposition to the legislation. make any substantive changes to current laws Effective May 20, 2003, the law makes mi- The new law is designed to strengthen leg- related to human services licensing and back- nor technical changes to a 2002 law that cre- islation passed in 1993 specifying that plant ground studies. ated a power-limited technician license. owners must perform maintenance for two