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1 Minnesota House of Representatives Public Information Services Office

Director Barry LaGrave Editor/Assistant Director Michelle Kibiger and LeeAnn Schutz Assistant Editor Mike Cook Art & Production Coordinator Paul Battaglia Writers Miranda Bryant Patty Janovec Tom Lonergan Mary Kay Watson Nicole Wood Chief Photographer Tom Olmscheid Photographers Lisa M. Sanders Andrew VonBank Office Manager Nicole Wood Staff Assistants Christy Novak Arron Hoffman

New Laws 2004 was published by the Minnesota House of Representatives Public Information Services Office as a service of the Minnesota Legislature. Staff members col- lected, wrote, verified, and coordinated the information to produce the publication. The 2004 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 Tom Olmscheid

2 Introduction

The 83rd Session of the Minnesota Legislature recon- While the bonding bill did not pass, a number of other vened on Feb. 2, 2004, and adjourned at 7:38 a.m. May 16, measures did become law. 2004, after meeting all night. The Senate adjourned sine In 2004, 1,554 bills were introduced in the House and die just before 7 a.m. May 16, but the House reconvened to 1,497 in the Senate. The biennium numbers were 3,212 and finish its business. The end came one day before the con- 3,073 respectively. Of the 163 bills sent to the governor, four stitutional deadline for lawmakers to finish their work. bills were vetoed in full, and a portion of one other bill was A total of 52 legislative days were used in 2004. Legisla- line-item vetoed. No vetoes were overridden. tors used 111 of the 120 legislative days in the biennium The 2004 session list of accomplishments includes new that lawmakers can meet as specified by the Minnesota academic standards in science and social studies; a lower- Constitution. By comparison, 116 days were used in the ing of the drunken driving threshold from 0.10 to 0. 08; 2001-02 biennium. A legislative day is counted when a modifying wetlands restrictions for off-highway vehicles; quorum of either the House or Senate is present to conduct a statewide ban on the use of phosphorus fertilizers on business as a body. residential lawns; changes in the operation of the state One of the top priorities for both bodies in 2004 was lottery; and honoring Minnesota soldiers and public safety finding a way to resolve the state’s projected $160 million personnel in the state killed in the line of duty. budget deficit. Both sides exchanged offers in the final New Laws 2004 is divided into five major parts: days – and hours – of session, but no consensus could be First, beginning on page 9, the Highlights section is reached. Gov. Tim Pawlenty announced that he would not written in an easy-to-read style for those who want a quick call a special session and eliminated the potential shortfall overview of legislation approved in 2004. through executive action. Second, the Vetoed Bills section lists all the bills that were That plan consisted of transferring $110 million in vetoed and line-item vetoed by the governor, and synopses federal receipts from the Health Care Access Fund to of his reasons for doing so. the general fund, delaying or freezing the sale of bonds Third, the Dead Bills section describes some of the bills for previously authorized capital improvement projects discussed in 2003 and/or 2004, but not passed by both ($18 million), reducing state agency budgets by 3 percent the House and Senate. The ideas behind these bills may ($17 million), using money saved from no bonding bill resurface in future sessions. ($8 million), and diverting Department of Revenue agency Fourth, the Summary section gives a technical overview cuts to increased tax compliance ($7 million). of each approved bill as it appeared when it was sent to A bonding bill is also traditionally approved in even year the governor. Also included is a listing of all sections of sessions. However, no bill was passed in 2004. Minnesota Statutes that the bill affects. Pawlenty recommended a $757.3 million package, but And fifth, the Index section provides a list of bills by the House-approved measure was approximately $80 mil- Chapter number, House file number, Senate file number, lion less. The Senate amended its $949 million bonding bill title, effective date, and finally, by keywords. bill language onto the House file, but it failed to receive Copies of a bill are available by calling the House Chief the necessary three-fifths vote for approval. Clerk’s Office (651) 296-2314, or the Senate Information While the Senate measure included $2 million for the Office (651) 296-0504. Ask for the bill by Chapter number, Northstar commuter rail line between Minneapolis and or by the House or Senate file number. Big Lake , the House bill did not contain $37.5 million that Bills are also available on the Legislature’s Web site the governor wanted for the project. On Aug. 3, Pawlenty (http://www.leg.mn). announced a $22.5 million plan to keep the project moving For further information, contact the House Public Infor- forward. The plan includes $2.5 million that the Metro- mation Services Office at (651) 296-2146, 1-800-657-3550 politan Council will earn from interest on a transit fund or (651) 296-9896 (TTY). The Senate Information Office to leverage an additional $10 million in matching federal can be reached at (651) 296-0504 or 1-888-234-1112. funds. The federal funds were to be lost if not utilized by the state before Sept. 30, 2004. An additional $10 million is to come from a corridor authority.

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

Topics

Agriculture ...... 9 Housing ...... 32 Banking ...... 10 Humanities ...... 32 Business ...... 10 Human Services ...... 33 Consumers ...... 11 Industry ...... 36 Crime ...... 13 Insurance ...... 36 Education ...... 16 Law ...... 37 Elections ...... 18 Local Government ...... 38 Employment ...... 19 Metro Affairs ...... 42 Energy ...... 20 Military ...... 43 Environment ...... 21 Recreation ...... 44 Family ...... 24 Retirement ...... 44 Gambling ...... 24 Safety ...... 45 Game & Fish ...... 25 Tourism ...... 47 Government ...... 26 Transportation ...... 48 Greater Minnesota ...... 28 Veterans ...... 51 Health ...... 28 Selected fees adopted in 2004 ...... 52

Vetoed Bills ...... 55 Dead Bills ...... 57 Summary ...... 85 Committees of Origin Resolution ...... 87 Health & Human Services Finance ...... 97 Floor ...... 87 Health & Human Services Policy ...... 98 Agriculture Policy ...... 87 Jobs & Economic Development Finance .100 Civil Law ...... 88 Judiciary Policy and Finance ...... 101 Commerce, Jobs & Local Government ...... 101 Economic Development Policy ...... 90 Regulated Industries ...... 103 Educaton Finance ...... 92 State Government Finance ...... 104 Education Policy ...... 93 Transportation Finance ...... 104 Environment & Natural Resources Policy ... 93 Transportation Policy ...... 105 Governmental Operations & Ways and Means ...... 106 Veterans Affairs Policy ...... 95 Indexes ...... 108 House and Senate Members ...... 127

New Laws 2004 by: Topic ...... 7 House File ...... 110 Title ...... 85 Senate File ...... 112 Chapter ...... 108 Effective Date ...... 114

Highlights Subject Index ...... 117

5 6 Highlights by Topic

AGRICULTURE Permitting mineral byproducts ...... 23 LAW ...... 37 Updating kosher codes ...... 9 DNR provisions potpourri ...... 23 Conflicts of laws among states ...... 37 Filing farm liens ...... 9 FAMILY Purchase money mortgages ...... 37 Focusing on farming ...... 9 Parenting education ...... 24 Roadwork contract restrictions ...... 37 Conciliation court collections ...... 37 BANKING GAMBLING Business practices ...... 10 Tending trust funds ...... 38 State lottery changes ...... 24 Bond maximums ...... 38 Accepting deposits ...... 10 Charitable provisions ...... 25 BUSINESS LOCAL GOVERNMENT ...... 38 GAME & FISH Seeking water source ...... 38 Towing, selling vehicles ...... 10 Doves, ducks, and deer ...... 25 Code revisions ...... 11 Tort protection ...... 38 Real estate licensing ...... 11 GOVERNMENT Electronic payments, receipts ...... 38 Functional change ...... 11 Department changes ...... 26 Banking day definition ...... 38 Reform changes ...... 11 Pension funds ...... 26 Conflict of interest ...... 39 Promoting propane safety ...... 26 Annual town audits ...... 39 CONSUMERS Making DNR rules ...... 26 Developer fees ...... 39 Phone company billing, regulation ...... 11 Technology dollars ...... 27 Attorney fees ...... 39 Utility subsidies, wind generators ...... 11 Funding updates ...... 27 Payroll processing ...... 39 Telecom reforms ...... 12 Fund oversight ...... 27 Publishing public notices ...... 39 Warranty coverage ...... 13 Claims bill ...... 27 Filling two seats ...... 40 Foreclosure consultant penalties ...... 13 Protecting privacy ...... 28 Airport closures ...... 40 CRIME Dislocated worker program ...... 28 Storm sewer charges ...... 40 Graffiti ramifications ...... 13 GREATER MINNESOTA ...... 28 Town audits ...... 41 Employee safety ...... 13 Interim zoning ordinances ...... 41 Iron Range Resources leader ...... 28 Orders for protection ...... 14 Conducting county business ...... 41 Drunken driving limit ...... 14 HEALTH ...... 28 Reverse auction, court surcharge ...... 41 Vehicle forfeitures ...... 14 Terminology change ...... 28 Direct deposit ...... 42 Service animal protection ...... 14 Adverse event reporting ...... 29 Keeping up appearances ...... 42 Paying for help, no porn ...... 15 Moratorium exception methods ...... 29 Personnel board of appeals ...... 42 Prison guard safety ...... 15 Transfer rules ...... 29 Closing public meetings ...... 42 Fewer prison levels ...... 15 Drug rebates, kickbacks ...... 29 METRO AFFAIRS ...... 42 Compact update ...... 15 Insurance safety net ...... 30 Paying electronically ...... 42 Facility expansion ...... 30 Affordable housing ...... 43 EDUCATION Hospital construction ...... 30 Academic standards, other provisions ...... 16 Survey changes ...... 30 MILITARY ...... 43 Academic standards ...... 16 Provider regulations ...... 31 Benefits revisions ...... 43 Academic Excellence ...... 16 Dispensing drugs ...... 31 Selective Service registration ...... 43 Safety ...... 17 Radioactive materials fees ...... 31 Other provisions ...... 17 RECREATION ...... 44 Licensure provisions ...... 32 Serving Minnesota ...... 17 Snowmobiling both ways ...... 44 Provider contracting ...... 32 Transition committee membership ...... 17 Regulatory board provisions ...... 32 RETIREMENT ...... 44 Trust land money ...... 17 Pension changes ...... 44 HOUSING ...... 32 ELECTIONS Pension funds ...... 44 Proof of a paid mortgage ...... 32 District boundary adjustment ...... 18 Fund investment ...... 45 Campaign sign size, numbers ...... 18 HUMANITIES ...... 32 SAFETY ...... 45 Campaign concerns ...... 18 State observance ...... 32 Pinpointing 911 callers ...... 45 Voting times ...... 18 Acquiring abandoned property ...... 33 Dangerous but regulated ...... 45 HAVA conformance ...... 18 HUMAN SERVICES ...... 33 Personal protection orders ...... 45 EMPLOYMENT Licensing, other provisions ...... 33 Permitted to drive ...... 45 Affirmative action changes ...... 19 Human services ...... 34 Honoring fallen Minnesotans ...... 46 State employment, local compensation ...... 19 Child care, ...... 34 One call says it all ...... 46 Regulating debt collectors ...... 19 Minnesota Family Investment Program ...... 34 Railroad track clearance ...... 46 Reference information disclosure ...... 19 Long-term care ...... 34 Statewide Radio Board ...... 47 Disabled worker study ...... 20 Health care ...... 34 Preventing fraud ...... 47 DEED changes ...... 20 Health care cost containment ...... 34 TOURISM ...... 47 ENERGY Miscellaneous ...... 35 Promoting Minnesota ...... 47 Meeting electronically ...... 35 Ridding PCBs from equipment ...... 20 Nursing home enhancement ...... 35 TRANSPORTATION ...... 48 Regulating utility performance ...... 20 Local airport costs ...... 48 Pilot project extended ...... 36 ENVIRONMENT Bridge review ...... 48 Regulating petroleum tanks ...... 21 INDUSTRY ...... 36 Garbage truck weight ...... 48 Non-oxygenated fuel exemptions ...... 36 Encouraging ethanol ...... 21 Trucking trailers ...... 49 Nugget race ...... 21 INSURANCE ...... 36 Preservation designation ...... 49 From exotic to invasive ...... 21 Cancellation notice ...... 36 Behind the wheel ...... 49 Phosphorus fertilizers banned ...... 22 Care provider coverage ...... 36 Transportation housekeeping ...... 50 Soil science ...... 22 Reserve calculations ...... 36 Longer bus ...... 50 Diluting pollution ...... 22 Insuring home child-care property ...... 37 Safer, longer-lasting land surveys ...... 50 Land swaps and sales ...... 23 Solvency calculation ...... 37 Light rail operations ...... 50 Selling state timber ...... 23

7 Highlights ��� ���� � � � �

VETERANS ...... 51 Passing student information ...... 63 Revamping reciprocity agreements ...... 73 Information sharing ...... 51 Holding students back ...... 63 Doctoral degrees ...... 74 Veterans tuition and nursing homes ...... 51 Encouraging abstinence ...... 63 Riot penalties ...... 74 Leasing land ...... 51 Funding community education ...... 63 HUMAN SERVICES ...... 74 Determining transition revenue ...... 63 Immigrant assistance ...... 74 Working together ...... 64 VETOED BILLS Referendum questions, levy restoration ...... 64 HUMANITIES ...... 75 CONSUMERS ...... 55 Paying to ride ...... 64 Library grants ...... 75 Local liquor bill ...... 55 Healthy schools ...... 64 INDUSTRY ...... 75 Magnet school funding ...... 65 Production tax exemption ...... 75 DEVELOPMENT ...... 55 Trust land aggregate ...... 65 RFP exception vetoed ...... 55 School funding geographic differential ...... 65 INSURANCE ...... 75 GOVERNMENT ...... 56 Educating preschoolers ...... 65 Transit insurance study ...... 75 Buying for less ...... 56 ELECTIONS ...... 65 LAW ...... 75 SAFETY ...... 56 Voting for felons ...... 65 Initiative and referendum ...... 75 Property protection ...... 56 Uniform election dates ...... 66 Jail booking fees ...... 76 EMPLOYMENT ...... 66 LOCAL GOVERNMENT ...... 76 DEAD BILLS No omnibus bill ...... 66 Comprehensive plan dispute ...... 76 When to negotiate ...... 66 Public finance bill ...... 76 AGRICULTURE ...... 57 Workers’ compensation changes ...... 67 Defining property taxes payable ...... 77 Shearing extension services ...... 57 Spending local revenue ...... 77 Protecting drain tiles ...... 57 ENERGY ...... 67 Employee compensation levels ...... 77 Bonding for biomass ...... 67 BONDING ...... 57 PRT funding ...... 77 Biomass facility tax exemption ...... 67 Taking by eminent domain ...... 78 Capital projects ...... 57 Reviewing renewable energy ...... 67 Corrections ...... 57 METRO AFFAIRS ...... 78 Education ...... 57 ENVIRONMENT ...... 68 MAC chair salary ...... 78 Higher Education ...... 57 Avoiding “e-waste” ...... 68 Alternative transportation ...... 78 Natural Resources ...... 57 FAMILY ...... 68 RECREATION ...... 78 Political subdivisions ...... 58 Banning gay marriage ...... 68 Stadium financing ...... 78 Transportation ...... 58 Child support changes ...... 68 Football on campus ...... 79 Other areas ...... 58 Taxing in-home daycare facilities ...... 68 Bemidji hockey arena ...... 79 BUSINESS ...... 58 GAMBLING ...... 69 RETIREMENT ...... 79 Protecting viability ...... 58 Simulcasting and a card room ...... 69 Pension funding ...... 79 Information disclosure ...... 58 Tribal casino plan ...... 69 Tobacco sales penalties ...... 59 Card club table increase ...... 70 SAFETY ...... 79 Dispatchers as essential employees ...... 79 CHILDREN ...... 59 GAME & FISH ...... 70 No light-changing mechanisms ...... 80 Liability protection ...... 59 Managing Lake Mille Lacs ...... 70 Lab cleanup costs ...... 80 CONSUMERS ...... 59 Heritage fund halted ...... 70 Specialty response team ...... 80 Shooting ranges out to pasture ...... 70 Authorizing credit cards ...... 59 TAXES ...... 80 No attorney fees ...... 59 GOVERNMENT ...... 71 No omnibus bill ...... 80 CRIME ...... 60 Funding state government ...... 71 Credit for long-term care insurance ...... 81 Fewer legislators ...... 71 Paying the ultimate price ...... 60 Standards for tax preparers ...... 81 Sanction for sharing knowledge ...... 71 Falsely reporting misconduct ...... 60 Cigarette tax increase ...... 81 Murder involving child abuse ...... 60 GREATER MINNESOTA ...... 71 Tax haven countries ...... 82 Sex offender registration, notification ...... 60 Increasing speed limits ...... 71 Donated meals ...... 82 DEVELOPMENT ...... 60 HEALTH ...... 72 Biotechnology zone credits ...... 82 International development zone ...... 60 Health care funding, cost containment ...... 72 TECHNOLOGY ...... 83 EDUCATION ...... 61 Drug tax elimination ...... 72 Genomics research funding ...... 83 Pharmacy access ...... 72 Funding online learners ...... 83 Teaching excellence ...... 61 Cost changes ...... 72 Online access for all ...... 83 Pay based on student performance ...... 61 Medical records access ...... 73 Rewards for success ...... 62 TRANSPORTATION ...... 84 No school, no license ...... 62 HIGHER EDUCATION ...... 73 School bus inspections ...... 84 Teacher training ...... 62 Omnibus bill ...... 73 Bus line funding ...... 84 Personnel assignments ...... 62 Uniform standards ...... 73 Gas tax alternatives ...... 84

8 IGHLIGHTS H★ ★ ★

Selected 2004 laws Editor’s note: Highlights, the first section in New Laws 2004, is written as a general overview of major legislation approved during the 2004 regular session. The new laws are categorized alpha- betically under topics, such as Agriculture, Banking, and Bonding. Appropriations bills are discussed under the topics to which they apply. For easy reference, House file (HF) numbers, Senate file (SF) numbers, and Chapter (CH) numbers appear at the end of each highlight. An asterisk after either the House file or the Senate file indicates the version of the bill sent to the governor. Stories on major appropriations laws include references to article and section numbers wherever possible. Effective dates are included in most of the stories. The Highlights Subject Index, begin-

ning on page 117, is useful for finding PHOTO BY ANDREW VONBANK information on specific subjects. A new law establishes the standard for sanctioning kosher foods as being Jewish religious requirements rather than orthodox Hebrew requirements. as New York, New Jersey, and Maryland. Proponents have said the system is a con- Rep. Frank Hornstein (DFL-Mpls) and Sen. venient way for buyers of farm products to Richard Cohen (DFL-St. Paul) sponsored the know if they need to write a check to both legislation. the producer and the lender. The new law AGRICULTURE HF2864*/SF2756/CH232 will conform to changes made at the federal ★ level in 2002, including provisions that make electronic filing possible. Updating kosher codes Another provision will change the wording A new law will update the way kosher dietary Filing farm liens in state law to specifically list 42 farm products laws are referenced in Minnesota statutes. A new law updates and modifies the process to be included in the notification system. Effective Aug. 1, 2004, sections of Minnesota under which legal claims on farm products as The new law directs $62,000 to the office to food law related to foods labeled as kosher security for payment of a debt are filed with pay for the program. A $10 surcharge will be will state that the item must be prepared “as the Office of the Secretary of State. applied to every filing between July 1, 2004, prescribed by a rabbinic authority, with the The goal is to boost the efficiency of the cen- and June 30, 2005, to help with the costs of the name and institutional affiliation and de- tral notification system operated by the office updated system. nominational affiliation, if any, of the rabbinic into a statewide, computerized agricultural lien The effective dates of the new law vary, with authority identified.” Current law indicates it filing system. most policy provisions effective Aug. 1, 2004, must be prepared “in accordance with ortho- Currently, agricultural liens are filed at the Sec- with qualifications including the need for U.S. dox Hebrew religious requirements.” retary of State’s Office in St. Paul or at the various Department of Agriculture approval of the new Proponents of the new law said the orthodox county recorders’ offices around the state. system. Hebrew reference designated one movement The new law will phase out the role of county Sen. Ann Rest (DFL-New Hope) is the Senate out of the orthodox, conservative, and reform recorders in the system but still give recorders sponsor. movements within the Jewish religion to make the option to operate as satellite offices. HF2442/SF2437*/CH191 kosher process decisions for all. When the central notification system was Opponents said that changing the law would first proposed more than a decade ago, it was take away from easily identified and respected met with a good deal of controversy, according standards set by the Orthodox Union kosher to the House sponsor Rep. Howard Swenson Focusing on farming certification. (R-Nicollet). However, he said, users have come A new law aims to make farm loan programs Further support for the legislation came to appreciate its value and a number of them more accessible, protect the state’s livestock from some kosher consumers who worried came to the table to work on the changes, in- industry, and boost dairy farmers’ abilities to the designation might not hold up under court cluding farm organizations, producers, lenders, upgrade facilities. scrutiny. Similar laws have been challenged as county recorders, and buyers from the feed and The new law, most of which is effective violating the establishment clause in states such grain associations. Aug. 1, 2004, will expand farmers’ access to a

9 Highlights ��� ���� � � � �

number of Rural Finance Authority loan pro- to be held at a convenient time for city or town BUSINESS grams, lift some requirements in ethanol plant residents before a pesticide application takes ★ ownership disclosure reports, make it more place. difficult to bring a nuisance lawsuit against a Rep. Howard Swenson (R-Nicollet) and Towing, selling vehicles farm owner, and increase trespassing penal- Sen. Jim Vickerman (DFL-Tracy) sponsored Effective Aug. 1, 2004, auto repair shops will ties on farms that raise domestic animals for the legislation. be allowed to tow privately owned vehicles that commercial productions. Trespassers on land HF2461/SF2428*/CH254 have been abandoned on their property. posted as a “bio-secure area” could be subject Under the new law, a vehicle repair or service to a gross misdemeanor penalty. business can impound a vehicle five business The law sets a state livestock production days after notifying the vehicle owner by certi- policy “to promote livestock production on BANKING fied mail that the vehicle will be removed. The family farms under a broad range of manage- ★ owner, or agent of the owner, of a service or repair facility is exempted from civil liability to ment systems that are environmentally sound Business practices and meet all legal requirements of all jurisdic- the unauthorized vehicle owner resulting from A new law will include credit unions under tions, including federal, state, county, town, removal of the vehicle by a towing service. state law liability exemptions for safe deposit city, and watershed district requirements.” The The law is needed, proponents say, because companies. policy further says state agencies that deal with some owners never bother to retrieve their ve- Credit unions are authorized to offer safe family farms shall, when appropriate, promote hicle after receiving an estimate, but the repair deposit boxes to its members. The new law adds environmental protection and water qual- shop cannot have the vehicle towed. credit unions to a list of financial institutions ity improvement through certain production Under current law, the sheriff’s office in the that can choose to have their safe deposit box management activities. given county can sell the abandoned vehicle activities regulated by the state. Another provision will exempt sellers of cer- at an auction on the business grounds, but the State statute is also amended to allow the tain home-grown-home-canned pickles, fruits, repair shop must pay for the public notice, and National Credit Union Administration to and vegetables from state licensure require- in some cases no one bids on the vehicle. insure time deposits. ments, provided they receive less than $5,000 Current law also allows for the towing and Furthermore, the new law allows a law per year in sales from the products and meet disposal of vehicles that have been abandoned enforcement agency to recover its expenses if certain labeling and signage requirements. on public roadways, in parking lots, and on it successfully collects on a dishonored check. Under the new law, electronic documents private nonresidential property that has been The law enforcement agency can recover up to and signatures will be an approved part of properly posted. However, it does not allow for a $30 service charge per each dishonored check grain transactions, effective July 1, 2004. auto repair shops to have vehicles towed. it collects. Current law banning foreign ownership of The new law provides that vehicles towed Sponsors of the new law, which takes effect farms is amended to allow holders of nonim- from repair shop grounds can be sold at auc- Aug. 1, 2004, are Rep. Doug Stang (R-Cold migrant treaty investment visas to own dairy tion by the sheriff’s office, as are cars aban- Spring) and Sen. Dan Sparks (DFL-Austin). farms of up to 1,500 acres. Such visa holders doned in public roadways and parking lots. HF2551*/SF2418/CH174 will be included in the definition of a “perma- Rep. Thomas Pugh (DFL-South St. Paul) nent resident alien of the United States.” and Sen. Linda Scheid (DFL-Brooklyn Park) To qualify, a person would have to live on the are the sponsors. farm at least 10 months in a 12-month period, Accepting deposits HF1972/SF1639*/CH224 and eligibility will be limited to three years if A new law will conform state banking stat- the visa holder does not actively pursue nation- utes to federal regulations for certain financial alized citizenship. Proponents of this measure services. are hoping to attract farmers from Belgium and Industrial loan and thrift companies make the Netherlands to boost the state’s declining loans, and some accept deposits in various dairy industry. ways, but their powers, structure, and forms After some ethanol plant owners balked at of regulatory oversight differ. For example, the link between state producer payments and in Minnesota, the Department of Commerce ownership disclosure forms put in place by oversees loan and thrift institutions. the 2003 Legislature, the new law lifts the re- Effective Aug. 1, 2004, the law alters a re- quirements and authorizes any producer who PHOTO BY TOM OLMSCHEID quirement for an industrial loan and thrift A new law permits the towing of privately owned failed to receive payments because they did not company to obtain deposit-taking powers from vehicles that have been abandoned at auto repair comply with the reporting requirements to be the department. It states that owners of loan shops. These vehicles can also be sold at auction, paid in full. and thrift companies must qualify to own a as are cars abandoned on public roadways and parking lots. Other general policy changes include up- federal savings association under federal law dating the law governing county agricultural in order to be authorized to accept deposits. societies and guidelines for county fair state Minnesota was one of only three states yet to aid, modifying certain license and practice re- conform. quirements for veterinary medicine professors Rep. Doug Stang (R-Cold Spring) and Sen. at the University of Minnesota, and requiring Dan Sparks (DFL-Austin) sponsored the law. mosquito control public notification meetings HF2216/SF2265*/CH253

10 ��� Highlights ���� � � � �

Code revisions Functional change A one-year increase of fees for filing docu- A new law makes changes to the Uniform Under a new law, business services at the ments related to limited partnerships is called Commercial Code, effective Aug. 1, 2004. Office of the Secretary of State will change in for in the law. Raising the fee will help offset The code is a set of laws regulating commer- several ways. The measure is effective retroac- the $75,000 cost to changes that the Office of dial transactions, in particular those involving tive to Jan. 1, 2004, unless otherwise noted. the Secretary of State will have to make to ac- the sale of goods and secured transactions. It Sponsored by Rep. Paul Kohls (R-Victoria) commodate the reforms. encourages uniformity of commercial laws in and Sen. David Knutson (R-Burnsville), the law Special rules governing foreign limited every state and is enacted on a state-by-state creates a modest savings for the office, while partnerships are also changed under the new basis. also making the business filing process more law, which has various effective dates. The permanent editorial board for the efficient through online options. HF1824/SF1803*/CH199 Uniform Commercial Code, which consists The law requires that a postcard be sent to of 12 members nationwide, was established to corporations as a reminder to file the annual consider changes to the code and respond to registration, and that failing to do so would CONSUMERS changes in commercial practice. result in dissolution. It also provides that later ★ Major changes are contained in two articles. filing of a registration returns the corporation The change in Article 1 broadens the definition to good standing as of the date of dissolution, Phone company billing, regulation of “good faith.” validates contracts, and restores assets and A new law aims to promote accurate tele- The changes in Article 7 allows for electronic rights to the corporation. A $25 fee is provided phone company billing statements and also will documentation of title for goods that are in for late filers. extend some alternative regulatory require- the custody of a commercial warehousing More than 400 filings are performed per ments phone companies operate under in the or transportation business. The adjustments week online for Uniform Commercial Code state. reflect changes in the industry. filings. The law reduces the fee from $20 to $15 Telephone companies may elect to operate Rep. Thomas Pugh (DFL-South St. Paul) and for those filing online. The same fee structure in Minnesota under an agreement known as an Sen. Don Betzold (DFL-Fridley) sponsored the applies for responding to requests for informa- alternative form of regulation that provides for law. tion from the filing office. setting minimum consumer protection stan- HF1983*/SF1805/CH162 Other provisions in the law include: dards such as price controls, service standards, • the elimination of a requirement that a and infrastructure investment, in exchange for county auditor send the office a copy of each certain other operating flexibility. auctioneer’s license address change, and one- A provision of the new law, effective May 20, Real estate licensing 2004, will change the way such plans may be A new law makes a number of changes to half of the $20 license fee that was previously deposited in the state’s general fund, extended or renewed. real estate licensing statutes, including those Under the consumer protection reach of the dealing with residential mortgage originators, • a transfer of the duties of overseeing notaries public from the commerce commissioner to new law, local carriers will be required to ob- and incorporates rules now in use into statute. tain express prior authorization from custom- The changes are effective Aug. 1, 2004. the office, and • the Department of Finance is instructed to ers before including charges from third-party For example, the law establishes penalties for service providers on bills. a lender that unreasonably delays processing a add the costs of assuming and operating the notary function to the base budget of the Sec- Examples of third-party billing include loan application beyond the expiration date of charges for Internet service, pagers, voicemail, an interest rate or discount point agreement. retary of State’s office. HF1798/SF1836*/CH251 or even club memberships. Examples of delays include not returning Effective Aug. 1. 2004, if the company cannot phone calls, the addition of new requirements produce evidence to the contrary, consumers for processing or approving the loan, and not will be eligible for a refund of bogus charges approving the loan in a reasonable period of Reform changes back six months from the date of the claim. time. A new law enacts and modifies the Uniform Rep. Michael Beard (R-Shakopee) and Sen. It also modifies a provision that prohibits Limited Partnership Act of 2001. Dallas Sams (DFL-Staples) sponsored the the waiver of the rescission period relating to One portion of the act modernizes corporate legislation. the purchaser’s right to cancel. and nonprofit laws, said Rep. Eric Lipman HF979/SF1115*/CH214 Under the law, a quicker way to cancel a resi- (R-Lake Elmo), who sponsored the law with dential purchase agreement is established. In Sen. John Hottinger (DFL-St. Peter). addition, either party could use the procedure, The law provides transitional provisions; Utility subsidies, wind generators instead of just the seller, as in previous law. makes conforming changes; and regulates the A new law aims to direct low-income electric Additionally, the law rearranges the portion organization, structure, and governance of rate discounts toward the neediest households of state statute regulating real estate agents to business corporations, nonprofit corporations, and lighten reporting requirements for smaller incorporate Commerce Department rules into and limited liability companies. utilities. the statutes. Changes include provisions and governing The new law specifies that utility affordabil- Rep. Laura Brod (R-New Prague) and Sen. of certificate of limited partnership, general ity programs “must be designed to target par- Linda Scheid (DFL-Brooklyn Park) sponsored partners, contributions and distributions in ticipating customers with the lowest incomes the law. regards to partners, rights of transferees and and highest energy costs in order to lower the HF2439/SF2379*/CH203 creditors.

11 Highlights ��� ���� � � � �

revised rate will apply to deposits held as of Jan. 1. 2005, and thereafter. Another provision will require wireless tele- communications service providers to notify consumers under contract 30 days in advance of any substantive changes to the contract that could increase charges. This provision has a sunset date of Aug. 1, 2007, in order to give regulators and the industry an opportunity to examine whether the requirements are effec- tive or cumbersome. This provision is effective July 1, 2004, and applies to any contracts entered into on or after May 1, 2004. However, this article is currently subject to a temporary restraining order from the U.S. District Court and cannot take effect until a final ruling is issued. The new law also sets guidelines for small telephone companies to expand local calling PHOTO BY TOM OLMSCHEID areas, and it declares that the Public Utilities A new law will allow school districts to own, operate, and manage wind energy conversion systems. Commission must apply the same criteria and School boards operating such systems will be required to integrate wind energy conversion system standards to all eligible telecommunications lessons into the district curriculum. carriers seeking continued federal universal service funding to support maintenance or percentage of income they devote to energy Telecom reforms upgrades to facilities used to help keep local bills, increase their payments, and lower costs A new law bundles consumer protection phone service affordable for all residents. associated with collection activities on their initiatives and industry regulatory reforms into The commission is charged, under the accounts.” what the House sponsor, Rep. Torrey Westrom new law, with developing by Jan. 15, 2005, a “Low income” describes a customer who (R-Elbow Lake), has described as a sign of means for reimbursement of small consumer is receiving assistance from the federal low- things to come in the area of telecommunica- complaints with a monetary component and income home energy assistance program. tions regulation. a strategy for increasing the number of plans Under this provision, effective July 1, 2004, Under the new law, local telephone and offering flat-rate statewide calling, making the the program must include a 50 percent electric telecommunications carriers who provide plans available to all Minnesota customers and rate discount on the first 300 kilowatt hours directory assistance for a fee will be required reducing the costs of the plans. consumed in a billing period for low-income to immediately credit a customer who is given The new law includes a number of technical customers who are age 62 or older or dis- the wrong information. changes designed to modernize the section of stat- abled. The new law modifies the interest rate on utes governing cable communications systems. Another provision, effective Aug. 1, 2004, utility deposits to fluctuate with the yield on Sen. Steve Kelley (DFL-Hopkins) co-spon- modifies the timeline under which the Depart- United States Treasury securities, rather than sored the legislation. ment of Commerce requires certain municipal remain set in statute at a flat percent. The HF2151*/SF2774/CH261 gas and electric utilities and rural electric co- operatives to file Conservation Improvement Plan reports documenting energy savings or improved efficiency. A third section, effective May 20, 2004, will allow school districts to own, operate, and manage wind energy conversion systems. The new law will cap the school district share of the installed capacity of the wind energy con- version system at 3.3 megawatts of nameplate capacity, in other words what the equipment is capable of producing. School boards operat- ing such systems will be required to integrate wind energy conversion system lessons into the district curriculum. Rep. Torrey Westrom (R-Elbow Lake) and Sen. Ellen Anderson (DFL-St. Paul) sponsored the legislation. HF1830/SF1753*/CH216 PHOTO BY ANDREW VONBANK Wireless telecommunications providers will be required, under a new law, to notify consumers under contract 30 days in advance of substantive changes to the contract that could increase charges.

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Warranty coverage purchaser who engages in a fraudulent or Buyers of new homes will find stricter rules deceitful practice may be fined up to $10,000 governing defects covered by warranties, under and imprisoned for up to one year. The law a new law. specifies prohibited practices for foreclosure Sponsored by Rep. Larry Howes (R-Walker) consultants and foreclosure purchasers, such and Sen. Don Betzold (DFL-Fridley), the law as making statements or engaging in conduct is in response to a December 2001 Minnesota that is false, deceptive or misleading. Examples court ruling stating that homeowners do not include misstating the value of the residence have to file a warranty claim for defects within in foreclosure and the amount of proceeds the warranty period. This created a loophole the foreclosed homeowner will receive after a making it difficult for homebuilders to get li- foreclosure sale.

ability insurance. Additionally, the law provides information PHOTO BY TOM OLMSCHEID For example, Steve Noble, president of Noble to the homeowner to better understand the A new law will allow individuals whose properties Custom Homes in St. Cloud, told a House transaction. It also gives a homeowner the right are vandalized by graffiti to collect up to three committee that he has never had a claim filed to rescind a contract with a foreclosure consul- times the actual property damages from the against him, yet was dropped by his insurance tant three days after the contract is signed or offender in civil court company due to the situation created by the five days after with a foreclosure purchaser. liable for their children’s graffiti. The group court ruling. After much searching, he found Most provisions are effective Aug. 1, 2004, said attorney’s fees and the $1,000 fine punish an insurance company that would insure him, and expire Dec. 31, 2009. parents for activities beyond their knowledge but his rates increased $30,000 per year. The law also permits money in the Afford- or control. And, the association said, criminal Under state law, in every sale of a completed able Rental Investment Fund to be used “to courts should maintain jurisdiction in order- dwelling, and in every contract for sale of a finance the acquisition, rehabilitation, and debt ing clean-up duties. dwelling to be completed, the vendor is to restructuring of existing supportive housing Sponsors of the new law are Rep. Jim Davnie warrant three things to the buyer, including properties.” Supportive housing, according to (DFL-Mpls) and Sen. Linda Berglin (DFL- a 10-year warranty that “the dwelling shall be the law, “means affordable rental housing with Mpls). free from major construction defects due to linkages to services necessary for individuals, HF339/SF40*/CH149 noncompliance with building standards.” youth, and families with children to maintain The law, effective Aug. 1, 2004, says that an housing stability.” This provision is effective action occurring in the ninth or 10th year of July 1, 2004. the warranty date must be brought within two Rep. Andrew Westerberg (R-Blaine) and Sen. years of the discovery of the breach, and that Ellen Anderson (DFL-St. Paul) sponsored the Employee safety under no circumstances may action be brought law. A new law treats crimes against probation more than 12 years after the effective warranty HF2095*/SF2412/CH263 officers as seriously as crimes against jail and date. prison employees. HF730*/SF289/CH196 The new law will subject anyone who assaults or inflicts demonstrable bodily harm against a CRIME corrections employee or probation officer to a ★ felony charge, and a possible maximum penalty Foreclosure consultant penalties Graffiti ramifications of two years in prison and a $4,000 fine. Scam artists convicted of preying on people A new law aims to reduce the amount of graf- Effective Aug. 1, 2004, the new law also threatened with home foreclosure could face fiti on Minnesota walls, fences, and train cars. declares as a crime the throwing of bodily stiff fines and a prison sentence under a new Effective Aug. 1, 2004, the law will allow fluids or feces at a law enforcement officer or law. individuals whose properties are vandalized by probation officer. The law regulates foreclosure consultants graffiti to collect up to three times the actual A person convicted of throwing bodily fluids and foreclosure purchasers, as well as provides property damages from the offender in civil or feces at a law enforcement officer faces a remedies for homeowners. court. Courts may order offenders to clean up maximum penalty of three years in prison and In a practice known as “equity stripping,” the graffiti as an alternative to paying damages. a $6,000 fine. The same crime against a proba- disreputable foreclosure consultants and If the offender is a minor, the law holds parents tion officers or jail or prison employee carries foreclosure purchasers prey on people whose liable for up to $1,000 in damages. The court is a maximum penalty of two years in prison and homes are in mortgage foreclosure by promis- further permitted to award attorney fees and a $4,000 fine. ing to find financing to help them stay in their costs to a prevailing plaintiff. Rep. Sheldon Johnson (DFL-St. Paul), the homes. In practice, they keep people waiting Supporters say the law will bring more House sponsor, said the legislation recognizes until there are no other options, thereby in- offenders to justice because of the lower stan- the increasing public safety concerns that law creasing the likelihood the homeowner will dards of evidence required in civil courtrooms. enforcement agents encounter in the course of sign over their homes and the home’s equity. Graffiti vandalism is punishable in criminal their work. Johnson works in the corrections Ultimately, the scammer owns the home, evicts courts, but police must obtain an eyewitness field. the previous homeowner, and sells the house or a confession. The Senate sponsor is Sen. Mee Moua at a profit, keeping the equity. The Minnesota Defense Lawyers’ Association (DFL-St. Paul). Any foreclosure consultant or foreclosure opposed the provision that makes parents HF2352/SF2387*/CH184

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Orders for protection The law changes the level from 0.10 to 0.08 tested and the person’s alcohol concentration. By A new law allows orders for protection for beginning Aug. 1, 2005. The date is a compro- Jan. 15, 2007, the commissioner shall provide domestic violence victims when their abusers mise between bills passed by the House and a summary to the Legislature. are about to be released from jail or prison. Senate. Senators wanted to enact the legisla- Rep. Steve Strachan (R-Farmington) and Previously, protection orders could only be tion on Aug. 1, 2004, and the House proposed Sen. Leo Foley (DFL-Coon Rapids) are the extended for three reasons: violation of a past Sept. 1, 2007. sponsors. order, fear of physical harm, or actual acts of The lower level will put Minnesota in com- HF97/SF58*/CH283 harassment or stalking. Orders are valid for a pliance with federal regulations. In addition, set period of time, which is often one year, and the state will not risk losing an estimated on occasion two years. $100 million in federal transportation funds Vehicle forfeitures However, courts cannot extend orders by not making the change. Minnesota was the A new law makes several changes to the indefinitely. And they were limited in extend- 49th state to enact the lower blood-alcohol state’s driving while intoxicated (DWI) vehicle ing or granting orders when the abuser was limit, just ahead of Delaware. forfeiture law. released from jail or prison because the victim A Department of Public Safety report estimates Brought forward by a DWI task force, the couldn’t establish that there had been contact that 14 lives will be saved annually with a lower county attorneys association, and a number necessitating protection. limit in the state. It is estimated that drunken of others, the law makes it easier for the state The new law is effective April 27, 2004. driving incidents in Minnesota cost the public to take away vehicles from repeat drunken Supporters of the law are the Minnesota $1.8 billion annually, $1.1 billion of which is paid drivers by no longer requiring that the driver Coalition for Battered Women, the Domestic by someone other than the drunk driver. be the registered owner of the vehicle subject Abuse Project in Minneapolis, the St. Paul An additional provision provides that if a to forfeiture. It is effective Aug. 1, 2004. Domestic Abuse Intervention Project, and the person is convicted of drunken driving with a Supporters said the legislation would keep Watch Project in Minneapolis. blood-alcohol content level of 0.08 or 0.09, is drunken drivers from dodging the law by Sponsors of the new law are Rep. Steve a first-time impaired driving offender, and has driving a vehicle registered to a friend or fam- Smith (R-Mound) and Sen. Don Betzold no other impaired driving offenses in the next ily member or the previous owner. Under the (DFL-Fridley). 10 years, their record will be expunged. Under law, the registered owner would lose the vehicle HF1944*/SF1797/CH164 current law, all DWI convictions must be kept unless it could proven that the owner did not on a driving record for at least 15 years. know the violator to whom they lent the vehicle Further, the chief law enforcement of- was going to break the law. ficer of an agency is to report to the public Opponents said it casts too wide of a net and Drunken driving limit safety commissioner certain information risks taking valuable property from people not Minnesotans choosing to drink and drive relating to alcohol concentration tests con- involved in a crime. will face a lower blood-alcohol content thresh- ducted by the agency between Aug. 1, 2005 and Additionally, if a driver fails to appear for old to be considered too drunk to be behind July 31, 2006, including the initial reason for any of the scheduled court appearances related the wheel, beginning next summer. interaction between an officer and the person to DWI and doesn’t turn themselves in within 48 hours after having missed the court ap- pearance, they are subject to vehicle forfeiture, under the law. Minnesota’s vehicle forfeiture law applies to people who have committed a drunken driving offense with two or more aggravating factors, such as having two prior drunk driving arrests or convictions, or one prior DWI incident if the current violation involves a blood-alcohol content level of 0.20 or greater, or having a child under age 16 in the vehicle. Rep. Doug Fuller (R-Bemidji) and Sen. Leo Foley (DFL-Coon Rapids) sponsored the law. HF392/SF388*/CH235

Service animal protection Individuals whose dogs harm service ani- mals, commonly used by people with disabili- ties, can, under a new law, be charged with a misdemeanor and ordered to pay restitution. Effective Aug. 1, 2004, the law will protect PHOTO BY TOM OLMSCHEID service animals trained to work or perform A new law lowers the blood-alcohol content threshold for drunken driving from 0.10 to 0.08, beginning tasks for an individual with a disability. Dog Aug. 1, 2005.

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Paying for help, no porn Fewer prison levels Sex offenders imprisoned in Minnesota will A new law restructures the correctional fa- be charged a co-payment for their treatment cility classification system by which prisoners and they will no longer have access to pornog- are classified in order to determine prisoner raphy, under a new law. assignments. Effective Aug. 1, 2004, the sex offender The Department of Corrections previously treatment fee will be based on a schedule utilized a six-level system for classifying its approved by the Department of Corrections adult male prisoners among eight prisons. Ef- commissioner. Revenues are to be provided fective Aug. 1, 2004, the system is reduced to to the treatment provider to pay for the cost five levels. of treatment. The fee will be based on an of- Under current practice, new prisoners are fenders ability to pay. sent to the St. Cloud prison for a classification The law also prohibits those civilly com- level. As their security level decreases for time mitted as sexual psychopathic personalities served and good behavior, they may be moved or sexually dangerous persons from receiving between maximum-, high-, medium-, and or possessing pornographic material while low-level security facilities. The law merges receiving treatment in a state-operated facility. Level 5 and Level 4 prisoners into one Level 4 Pornography is prohibited in state prisons. so that the state would have more options for Rep. Judy Soderstrom (R-Mora) and Sen. housing prisoners at Stillwater, St. Cloud, and Wes Skoglund (DFL-Mpls) are the sponsors. Rush City. HF921/SF906*/CH134 The change will not allow any prisoner to move to a lesser medium-security facility any sooner than otherwise would be allowed. The new law will also provide cost savings, Prison guard safety because fewer inmate transfers will be required A new law, that its sponsors say is necessary as prisoners move their way down from higher for the safety of the state’s correctional em- custody levels. ployees, makes it easier for corrections officials Rep Steve Smith (R-Mound) and Sen. Wes to draw blood samples from uncooperative Skoglund (DFL-Mpls) sponsored the law. inmates who have exposed guards to their HF2455*/SF2499/CH156 bodily fluids. PHOTO BY ANDREW VONBANK State law provides that a blood sample can Individuals whose dogs harm service animals, be taken from an inmate to test for bloodborne commonly used by people with disabilities, can, pathogens, such as Hepatitis B, Hepatitis C, or Compact update under a new law, be charged with a misdemeanor A new law makes changes to the Interstate and ordered to pay restitution. HIV, if a corrections employee is subjected to a significant exposure. If an inmate refuses, a Compact for Adult Offender Supervision that owners can be charged with a crime for inten- court may be petitioned to receive permission addresses issues of arrest and incarceration of tionally or negligently permitting a dog to run to do a blood draw. However, that can some- former prisoners from out of state who violate uncontrolled off personal property, or failing times take up to six months, which can be conditions of their parole or probation in to keep the dog properly confined and con- psychologically tough on an employee because Minnesota. trolled, if that dog injures a service animal. of the uncertainty of disease contraction. Sponsored by Rep. Steve Smith (R-Mound) Supporters of the new law said training a Effective May 28, 2004, the new law creates and Sen. Wes Skoglund (DFL-Mpls), the law service animal could cost tens of thousands of an expedited method to obtain a blood draw updates the compact that dates back to the dollars, and that owners should be compen- if certain requirements are met. 1930s, and continues the provisions that were sated when their animal is injured and can no For example, facility administrators must to sunset July 1, 2004 to July 1, 2006. longer perform its duties. first attempt to gain the sample voluntarily; The compact is the mechanism used by all Groups supporting the new law include the a doctor must determine that a significant 50 states, Puerto Rico and the Virgin Islands Minnesota Guide Dog Users, the American exposure has occurred; and, after reviewing for the transfer and supervision of offenders Council for the Blind of Minnesota, and the a blood sample provided by the corrections between states. A nationwide effort to update Minnesota Council on Disability. employee, the doctor must determine that a the compact was launched two years ago. Twenty-seven states, including Minnesota, sample is needed from an inmate to determine Effective April 15, 2004, the new law allows have laws providing service animal dogs with the proper course of treatment. the state to issue warrants for the arrest of protection against harm by humans. But until The law also requires that the corrections offenders found in Minnesota without first now, no law addressed injuries to a service commissioner and facility administrators receiving approval from the offenders’ states animal imposed by another canine. notify inmates of the policy and procedures. of origin. The offender could be held for up to Sponsors of the new law are Rep. Paul Kohls Rep. Steve Smith (R-Mound) and Sen. Leo 12 days while a hearing is arranged to deter- (R-Victoria) and Sen. Chuck Wiger (DFL- Foley (DFL-Coon Rapids) sponsored the law. mine if the person would be sentenced again North St. Paul). HF2339/SF2640*/CH252 to prison. HF1817/SF1614*/CH159 HF2651*/SF2347/CH155

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EDUCATION education committees by June 15, 2005. for more than 10 cumulative days in a year and, ★ This section is effective May 27, 2004. with parental or guardian permission, suggest (Art. 2, Secs. 2-3, 33; Art. 6, Secs. 1-4) arrangements for a mental health screening Academic standards, other provisions for the student. The meeting is to determine if A new law contains a number of K-12 Academic Excellence the student should be screened, assessed, diag- education policy stipulations, including new The release of annual school performance nosed, or treated for a mental health disorder. academic standards in science and social report cards data is restricted. Under the law, The district would not be required to pay for studies. such information is considered nonpublic until the screening. (Art. 2, Sec. 8) Other provisions in the new law relate to not later than 10 days after an appeal process Under the federal No Child Left Behind the use of epinephrine injectors, mental health concludes. State law provides for a school or Act, all public school teachers teaching core screening, earnings for school board members, district to appeal to the Education Department academic subjects are required to demonstrate colors used by crossing guards and on school its designation as a high- or low-performing their content knowledge by the 2005-2006 patrol flags, school bus safety, and the diving school. The department is required to post school year. The High Objective Uniform State depth for pools used by high school diving student performance data, known as adequate Standard of Evaluation option allows licensed teams. yearly progress determinations, and school teachers who currently do not satisfy the defi- Rep. Alice Seagren (R-Bloomington) and performance report cards on its Web site an- nition of highly qualified teacher to earn points Sen. Steve Kelley (DFL-Hopkins) sponsored nually no later than Sept. 1. This section is by demonstrating their content knowledge and the measure. effective May 27, 2004. (Art. 2, Sec. 5) thereby become highly qualified teachers. The The following are highlights of the law, ef- Students may use prescription non- law indicates which categories of Minnesota fective July 1, 2004, unless otherwise noted. syringe injectors of epinephrine with parental teachers already satisfy the highly qualified HF1793*/SF1774/CH294 permission, proper labeling of the injectors, teacher definition and establishes an option and a health professional’s assessment that to allow other teachers to comply with this Academic standards the student can safely possess and use the federal requirement. This section is effective After a nearly yearlong debate and discussion injector. Epinephrine is a form of adrenaline May 27, 2004. (Art. 2, Sec. 10) among parents, school district administrators, that relieves temporary shortness of breath, School board members who are also em- teachers, and others, new education standards chest tightness, and wheezing due to bron- ployed by the district may earn a maximum in science and social studies were approved. chial asthma. It reverses the symptoms of an $8,000 per fiscal year, up from $5,000. The The social studies standards cover U.S. and anaphylactic reaction, which can be caused provision is aimed at helping rural areas where, world history, geography, economics, govern- by food, insect stings, medication, or latex. for example, a retired teacher could be a school ment, and citizenship. The science standards (Art. 2, Secs. 6-7) board member and still be employed by the cover the physical, life, earth, and space sci- School districts are to make a reasonable district as a substitute teacher, substitute bus ences, as well as science history and nature. attempt to convene a meeting with parents or driver, part-time library aide, or part-time Health and physical education are added as guardians when a student has been prohibited coach. In rural areas, fewer persons are avail- state-required academic standards, with the from attending classes for disciplinary reasons able to fill these roles. (Art. 2, Sec. 12) details to be developed by local school districts. This is effective with the 2005-06 school year. Health and physical education are stricken from the list of elective credits. Statewide tests based on the science stan- dards, required by federal law, will be admin- istered beginning in the 2007-08 school year. Science tests must be given once in grades 3, 4, or 5, and 6 through 9, and a life sciences test must be given once when a student is in grades 10-12. No federal or state test is required for social studies. Tests in language arts and mathematics, based on standards adopted by the 2003 Leg- islature, will be required for grades 3 through 8 and at the high school level in 2005-06. The Minnesota comprehensive assessments are the student performance tests the state requires for schools to comply with the federal No Child Left Behind Act. A study on implementing a computer-based adaptive test to replace the comprehensive PHOTO BY TOM OLMSCHEID assessments is called for in the law. Results New academic standards in science and social studies are established, under a new law. The law also are due to the respective House and Senate adds locally developed health and physical education standards to the list of required academic standards.

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A charter school is required to submit a Other provisions management and operations of a nonprofit school calendar to the Department of Edu- Effective May 27, 2004, each district must organization, including individuals with cation in its first three years of operation as maintain and report general fund expen- expertise in public relations, finance, and a condition of receiving state aid payments. ditures, excluding capital expenditures and development. (Art. 2, Sec. 14) pupil transportation, by site. Expenditures A separate provision makes some technical for regular instruction, secondary vocational corrections to library appropriations for fiscal Safety instruction, and school administration must years 2004 and 2005, which Seagren said would State law is amended so that school safety be reported to the Department of Educa- adjust the payment schedule so that libraries patrol members are authorized to wear fluores- tion on a per building basis. Costs for special don’t lose money. cent yellow, fluorescent yellow-green, or blaze education instruction, instructional support Sen. Steve Kelley (DFL-Hopkins) also spon- orange vests, sashes or ponchos. School safety services, and pupil support services provided sored the legislation. patrol flags can be either blaze orange with a within a specific building must be attributed HF2191/SF2141*/CH286 yellow octagon saying “STOP” in black letters to that building. Salary expenditures must or fluorescent yellow or yellow-green with an reflect actual staff salaries at the building, not octagon of sharply contrasting color saying based on a districtwide average. All other gen- Transition committee membership “STOP” in black letters. The color change has eral fund expenditures may be reported on a A mental health representative must be placed already been going on for a few years to match districtwide basis. The department must show on transition committees that help secondary roadside school zone signs, and national safety school building expenditures by school site on and postsecondary aged youth with disabilities studies have said the bright yellow-green is the department’s Web site. (Art. 1, Sec. 3) adjust to adult life, under a new law. easier for drivers to see. (Art. 1, Secs. 1-2) Legally separated parents may indicate Effective April 27, 2004, the law amends state Students in grades 7-10, who are transported which district a child lives in, under the law, statute requiring a school district or special edu- by school bus and have not received school when the parents share joint physical custody cation cooperative to form community transi- bus safety training, must receive training or but live in different districts. This authority tion teams for special needs students in grade bus safety instructional materials by the end was already permitted for divorced parents. nine or an equivalent age, and their families. of the sixth week of school. Students taking This affects general education aid paid to a Community transition interagency com- driver’s training must learn the laws about district. Parents remain responsible for trans- mittees identify services and programs for operating a vehicle in the vicinity of a school porting the child to the border of the resident secondary and postsecondary special educa- bus. A district and a nonpublic school with school district when the child resides in the tion students, and develop an implementation students transported by school bus at public nonresident district. (Art. 1, Sec. 8) plan to meet the transition needs of individuals expense must conduct a bus evacuation drill The definition of interagency intervention with disabilities. at least once per year. (Art. 2, Sec. 13) is amended so that disabled children from The committees also include representa- The law also contains a number of provi- birth to age 21 are eligible to receive services tives of special education, other education sions related to school buses. Among them, and programs under state and federal special and training agencies, adults with disabilities the new law: excludes leased school vehicles education law. Previous law was from age 3 to who have received transition services, parents, from certain tax and license fees, redefines the age 21. (Art. 3, Sec. 1) business or industry, as well as county social state definition of school buses to match new service and health agencies. national standards, authorizes buses to have Districts or special education cooperatives more than one stop arm, prohibits the use must follow transition committee procedures of multi-piece rims and tube-type tires on Serving Minnesota determined by the state Education Depart- buses built after Oct. 31, 2004, and permits a A new law adjusts the size and makeup of ment and annually report to the department bus equipped with a crossing control arm to the governing board for the Minnesota Com- on transition services provided to individuals have an automatic recycling interrupt switch mission on National and Community Service, with disabilities. for temporary disabling of the arm. (Art. 2, also known as ServeMinnesota. Sponsors of the new law are Rep. Alice Secs. 16-30) The group administers the federal Ameri- Seagren (R-Bloomington) and Sen. Jane State law says that any pool built prior to Corps program, as well as other community Ranum (DFL-Mpls). 1987 and used by a high school diving program service and grant programs in the areas of HF2502/SF2609*/CH166 in 2000-01 may be used for supervised com- education, human services, public safety, and petitive diving. However, previous law required the environment. schools to use a pool that complies with Health Rep. Alice Seagren (R-Bloomington), the Department standards for competitive diving House sponsor, said the commission has Trust land money pools if one exists within the district. Effective changed from a state entity to a nonprofit, and Congress will again be asked to consider May 27, 2004, schools and school districts are the new law is necessary to conform the com- federal compensation for school trust lands strongly encouraged to use diving pools that mission membership to federal guidelines. that became part of the federal Boundary meet the standards. (Art. 2, Sec. 15) Effective May 31, 2004, the new law adjusts Waters Canoe Area Wilderness more than the commission membership from 18 to 25 25 years ago. voting members, and lays out a plan for mem- A resolution, signed by Gov. Tim Pawlenty, bership to include individuals experienced in will be sent to the state’s congressional delega- youth education, development, and training, tion in Washington, D.C., and the supervisor of as well as those who have a background in the Superior National Forest, which includes

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the wilderness area. Campaign sign size, numbers material violated current law, impose a civil The resolution urges the state’s congressional A new law will allow noncommercial signs of penalty of up to $5,000, or refer the complaint delegation to initiate a federal land trade with any size and in any number to be posted from to the appropriate county attorney. A decision the state, a payment for the school trust acreage Aug. 1 of a state general election year until must be made within 14 days of a hearing. — declared part of the federal wilderness area 10 days after Election Day. Ramsey County Attorney Susan Gaertner in 1978 — or a combination of the two. During the 2002 campaign, Rep. Peter told a House committee that there is less time The Legislature also asks Congress to in- Adolphson (R-Minnetonka) was informed that for county attorneys to respond to more urgent crease a $12 user reservation fee in the wilder- several Eden Prairie residents had complained concerns because they must investigate every ness area by $3, which could mean potential that he had more than one sign on a resident’s complaint. Additionally, she said constituents revenue of about $90,000 annually for the property. He and Sen. David Hann (R-Eden have voiced concerns over how long it takes state’s Permanent School Fund. Prairie) sponsored the new law. the county to deal with a complaint. The fund provides about $20 million a year Existing law states that municipalities can HF2058/SF1907*/CH277 for public school districts from lease and fee enact an ordinance regulating the size of revenues generated on 3.5 million acres of noncommercial signs, but statutes say noth- state-held school trust and mineral rights ing about the number of signs. At the time Voting times lands. The Department of Natural Resources Adolphson said the cities of Eden Prairie and If an election is held to consider moving a manages the school trust lands that Minnesota Minnetonka interpreted the law to also mean county seat, a new law states that the polls must has held since statehood. one sign per candidate. be open from 7 a.m. to 8 p.m. The uncompensated 87,000 acres of school Effective Aug. 1, 2004, the new law designates The law took effect April 15, 2004 in time for trust land in the federally protected area re- that in any municipality, regardless of whether a June 29 Pine County election where residents mains a sore point with state legislators. the municipality has an ordinance that regu- voted down a plan to move the county seat An environmental group that supported an lates the size or number of commercial signs, from Pine City to Hinckley. increase in the wilderness area’s reservation noncommercial signs of any size and in any Previous law required polls to be open from fee said a $10 million federal payment for the number can be posted during the designated 8 a.m. to 5 p.m. Supporters said that a number trust lands was discussed between federal and time period. of voters would have been disenfranchised state officials in 1997, but no agreement was HF307*/SF497/CH142 because of their inability to vote during that reached. time frame. Rep. Barb Sykora (R-Excelsior) and Sen. Rep. Judy Soderstrom (R-Mora) and Sen. Steve Kelley (DFL-Hopkins) sponsored the Campaign concerns Becky Lourey (DFL-Kerrick) were the sponsors. resolution. Complaints filed regarding violations of HF3005*/SF2840/CH158 HF2242/SF2222*/R1 the state’s Fair Campaign Practices Act and of campaign finance reporting requirements in local elections will be handled by a different entity, under a new law. ELECTIONS Sponsored by Rep. Doug Meslow (R-White HAVA conformance ★ Bear Lake) and Sen. Linda Higgins (DFL- A new law makes changes to Minnesota’s District boundary adjustment Mpls), the law repeals a mandate that county election laws in response to the federal Help America Vote Act (HAVA). Residents in two Edina apartment buildings attorneys investigate every complaint filed. Ef- Signed into law by President Bush in 2002, will no longer find their neighbors across the fective July 1, 2004, the Office of Administrative the act provides funds to states to replace hall voting in a different House district, under Hearings will handle those duties. punch card voting systems, establishes a a new law. Upon review of a complaint, an administra- commission to assist in the administration of Census lines drawn in 2002 went through tive law judge must make one of three deter- federal elections and programs, and establishes the middle of two large apartment buildings. minations: the complaint is frivolous, there is elections standards for states and local units of Effective April 30, 2004, the law adjusts the no probable cause to believe that the alleged government with responsibility for the admin- boundary between House districts 41A and violation occurred and dismiss the complaint, istration of federal elections. 41B to follow a census block line. or there is probable cause to believe the viola- A 2003 state law created an account to receive Problems arose during the 2002 election tion has occurred and the judge must schedule federal funds given to the state for election when some building residents, most of whom a hearing. purposes. The account also contains $6.5 mil- are elderly, felt disenfranchised when they went Judges will be forced to act quickly. The lion allocated by the 2003 Legislature to match to the wrong place to vote after talking with law states: “Within one business day after the some federal dollars. The money can be used neighbors about where their polling place was complaint was filed with the office, when prac- for a number of purposes, including, the de- located. ticable, but never longer than three business velopment and administration of a complaint Rep. Ron Erhardt (R-Edina) and Sen. Geoff days, the administrative law judge must make process, improving polling place accessibility, Michel (R-Edina) are the sponsors. a preliminary determination.” modifying the statewide voter registration HF2482/SF2300*/CH170 If necessary, a hearing will be conducted by a panel of three judges that may dismiss the com- system, and training local election officials. plaint, issue a reprimand, find that a statement Much of the new law focuses on policy is- made in a paid advertisement or campaign sues and putting into state law what is required under HAVA, so that two standards do not

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exist, and thereby eliminating a potential situ- streamline paperwork and reporting for the alternatives to compensation limit, including ation where a voter could meet requirements Department of Employee Relations. elimination of the limit. to vote in state and local races, but not federal The law also defines the term “goal unit” The law is effective Aug. 1, 2004. contests. for the purposes of affirmative action as “the HF2874/SF2703*/CH207 Included in the law is detailed information group of jobs in an agency or agency subdivi- about voter registration. It encompasses many sion to one of the federal Equal Employment different systems, including the permanent reg- Opportunity occupation categories applicable istration and the verification of registration. to state employment.” Regulating debt collectors For example, to comply with HAVA a small HF2609*/SF2376/CH287 A new law changes the regulation of in- number of persons would be required to pro- dividual debt collectors from licensing to vide identification in order to vote. This would registration. only be the case if a first-time voter in a federal Rep. Doug Stang (R-Cold Spring), the House election mails in a voter registration card and a State employment, local compensation sponsor, said the law would streamline the process, while maintaining current consumer county auditor cannot verify the information. A statewide 1995 Department of Employee protections. He said the licensing process is The auditor is to notify the person, and offer Relations pilot project reauthorized by the supposed to take several weeks but has been four ways to complete the registration. If this Legislature several times is now permanent, backlogged two months or longer. Changing is not done prior to Election Day, the normal under a new law. from licensing to registration would allow debt proof of residency used for Election Day Sponsored by Rep. Dennis Ozment (R-Rose- collectors to go to work immediately. registration must be provided to an election mount) and Sen. Jane Ranum (DFL-Mpls), the According to the Department of Commerce, administration official at the polling place. new law eliminates the traditional system un- a collection agency is “a business that collects, Election Day registration is not changed. der which only a limited number of applicants for others, bills or other indebtedness from Rep. Lynda Boudreau (R-Faribault) and who score highest on exams are considered debtors who have not paid an account to a Sen. Linda Higgins (DFL-Mpls) were the for state jobs and establishes a hiring process creditor.” Collection agencies hire individuals sponsors. whereby applicants are placed in a central da- to work as debt collectors. HF1006*/SF986/CH293 tabase that will allow state agencies to conduct Agencies and those they hire must now be a computer-based screening of applicants. licensed by the department. Under the new The law also contains some veterans prefer- law, the department will still provide oversight; ence provisions. only the type of regulation changes. Collection EMPLOYMENT A five-point system is replaced, and the law agencies will continue to be licensed, but indi- ★ provides that applicants meeting the qualifica- vidual collectors will be registered. Those who Affirmative action changes tions and claim a disabled veteran’s preference violate state law will face the same sanctions A new law makes changes to the state’s af- shall be listed in the applicant pool ahead of all they do now. firmative action provisions to become more in other applicants. Those claiming non-disabled Under the law, effective Jan. 1, 2005, col- line with federal law. veteran’s preference are to be listed in the appli- lection agencies will still be responsible for Effective Aug. 1, 2004, the new law calls cant pool after those claiming disabled veterans the actions of debt collectors who work for for the employee relations commissioner to preference and ahead of non-veterans. them. establish goals for each of the federal Equal State statute that requires local governments The Senate sponsor is Sen. Dan Sparks Employment Opportunity categories appli- to give veterans preference is rewritten in the (DFL-Austin). cable to state employment. law. Now written into the local government law HF2187*/SF2650/CH208 Factors the commissioner must consider in is the substance of what had previously been setting affirmative action goals are the percent- in state law whereby non-disabled veterans age of members of each protected class in the received a five-point credit and disabled vet- recruiting area population who have necessary erans received a 10-point credit. In each case, Reference information disclosure skills, and the availability for promotion or the veteran must pass the competitive open A new law will provide disclosure protec- transfer of current employees who are mem- examination without the addition of credit tion to employers that share certain reference bers of protected classes. points. information with prospective employers about Additionally, the law provides for factors that A veteran who is currently receiving, or is current and former employees. the commissioner may consider when setting eligible to receive a monthly veteran’s pension Effective Aug. 1, 2004, the law will allow affirmative action goals: the extent of unem- based exclusively on length of service cannot companies, without the employee’s consent, ployment of members of protected classes in use the veteran’s preference credit. to pass along basic employment information the recruiting area population, the existence of The law also requires the Legislative Coor- such as wages and job description, as well as training programs in needed skill areas offered dinating Commission to study the impacts of written disclosures of any instances of theft, by employing agencies and other institutions, the compensation limit on local units of gov- harassment, violence, or other illegal conduct and the expected number of available positions ernment and report back to the Legislature by documented in the employee’s record. to be filled. Jan. 15, 2005. The study must look at local gov- The law will establish a higher burden of Rep. Paul Thissen (DFL-Mpls), who spon- ernment compensation limits and comparative proof for employees who legally challenge a sored the law with Sen. Chuck Wiger (DFL- salary data in other states, the impacts of the current or former employer’s information North St. Paul), said it is an attempt to local government compensation limit on sal- disclosure. Employees bringing suit must ary structures, recruitment, and retention; and

19 Highlights ��� ���� � � � �

show clear and convincing evidence that the by Rep. Tony Sertich (DFL-Chisholm) and Sen. hazardous waste generator fees to the Pollution information was both knowingly wrong and LeRoy Stumpf (DFL-Thief River Falls). Control Agency for disposal of equipment that harmful to them. HF2035/SF1946*/CH188 has reached the end of the line. Business representatives expressed support But some in the industry have said dupli- for the new law, sponsored by Rep. Jim Kno- cative state and federal standards created a blach (R-St. Cloud) and Sen. David Knutson DEED changes disincentive to get rid of the equipment in (R-Burnsville), while labor union representa- An initiative from the Department of Em- advance due to the cost of compliance with tives opposed it. ployment and Economic Development, dealing those double requirements. The law will also require school districts with housekeeping and technical changes to Effective Aug. 1, 2004, the new law will waive to share documented information about em- unemployment compensation, is now law. state hazardous waste fees on PCB waste as- ployee sexual misconduct or violence toward One section of the law defines what quali- sociated with oil-filled electronic equipment a student. fies as a “good reason” for quitting a job for voluntarily disposed of or retro-filled prior to Such information is already public if an the purpose of receiving unemployment the end of its service life. employee was fired based on the misconduct. compensation. Waste generators and the agency will have to Under the new law, the information must be The only good reason for quitting specifi- execute voluntary PCB phase-out agreements shared even if the school district employee cally defined under the new law is sexual ha- containing specific goals and a schedule for resigned. rassment. Any other reason is now evaluated implementation. Similar legislation passed both houses of the based on the facts of a case and on whether a The new law will not waive emergency fees Legislature in 2001, but did not make it past a “reasonable person” would quit in that situa- or the fees on equipment being taken out of conference committee. tion. This section takes effect Aug. 1, 2004. service at the end of its normal life span. HF480*/SF837/CH137 Other provisions in the law include: Rep. Dean Simpson (R-New York Mills) and • permitting the department to send notices, Sen. John Marty (DFL-Roseville) sponsored determinations, and decisions to applicants the legislation. Disabled worker study and employers by electronic mail if a recipient HF2500/SF2422*/CH176 A one-year project to study extended em- requests (effective July 1, 2005); ployment of people with severe disabilities will • adding services performed by a member of be conducted in Thief River Falls, under a new a limited liability company member to the Regulating utility performance law. definition of employment, regardless of how A new law, effective Aug. 1, 2004, will repeal Running from July 1, 2004 to June 30, 2005, much of the company the member owns the sunset on performance-based natural gas the study will provide for an on-site industrial (effective Jan. 1, 2005); and utility regulation and modify the way in which employment model for individuals with severe • a requirement that new employers and those the Public Utilities Commission approves disabilities. going out of business register and notify the utility applications to move from a more tra- It will be monitored by the Department of department electronically (effective July 1, ditional form of regulation. Employment and Economic Development 2005). Rep. Torrey Westrom (R-Elbow Lake), the and implemented by the Occupational De- Rep. Tony Sertich (DFL-Chisholm) and Sen. House sponsor, said the concept was formal- velopment Center, a nonprofit company. The Ellen Anderson (DFL-St. Paul) sponsored the ized into state law in 1997 and though no gas project will provide the state with information legislation. utility has used it yet, utilities would like the to clarify the distinction between center-based HF2235*/SF2243/CH183 ability to try it in the future in the hope of in- and community employment subprograms. creasing their earnings and saving consumers The center’s Custom Products division will money. Sen. Ellen Anderson (DFL-St. Paul) is provide employment. The company must pay the Senate sponsor. minimum wage or better to all employees with ENERGY ★ Some utility analysts have criticized the tra- severe disabilities and provide benefits equal to ditional regulatory approach, known as “cost- those provided to non-disabled employees. All Ridding PCBs from equipment of-service” regulation, for focusing on setting work teams will be integrated and the project A new law aims to proactively provide elec- a rate of return for the utilities without pro- must maintain a minimum 60 percent ratio of tric utilities with an incentive to voluntarily viding incentives for quality service, improved disabled persons. phase out equipment containing polychlori- efficiency, and infrastructure reinvestment. The Employment and Economic Develop- nated biphenyls (PCBs). Under previous law, “Performance-based ment Department must complete a program PCBs are a class of man-made compounds regulation plans are intended to provide the evaluation by Oct. 1, 2005. that, up until serious health and environmental utility with increased earnings for efficient The law will also provide $2.4 million in concerns arose in the 1970s, were commonly performance and decreased earnings for inef- federal matching vocational rehabilitation used as insulators in electrical equipment. ficient performance.” funds to the Centers for Independent Living, They are still sometimes found today in the Under the new law, the intentions remain whose funding was cut 30 percent by the 2003 oil that is placed in transformers and other the same but one provision will change the Legislature. The centers provide job training electric utility equipment that has not reached expectation for the performance-based plan to moderately disabled people. The funding the end of its service life, an average of 30 years “to provide quality service at rates that can would be effective for fiscal year 2005. according to industry estimates. reasonably and reliably be expected to be lower Effective May 14, 2004, the law is sponsored Under current law, the industry pays than rates would be under current regulation

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and to reduce the cost of regulation” to instead Encouraging ethanol There is a bit of an environmental tradeoff call for the rates to be “materially” lower. Effective May 20, 2004, a new law will exempt to the new law, proponents said. Two fur- One of the criteria the commission could use from a mandatory environmental impact state- naces under an existing operating permit for a in approving an application from a utility to be ment an ethanol plant that produces less than 10 million-ton taconite plant at the Hoyt Lakes regulated under a performance-based plan re- 125 million gallons annually and is located site could have been fired up again. Instead quires the plan to be compatible with increased outside of the seven-county Twin Cities met- the existing furnaces will be permanently shut competition in the natural gas industry. The ropolitan area. down. Preliminary estimates show that the new law will strike that criterion from the list The Environmental Quality Board writes nugget process replacing them would be as of requirements the applicants must meet. rules for the environmental review of develop- clean or cleaner than what was emitted under The commission will be required to report ment projects in Minnesota. Under its most the old taconite process. back to the Legislature on the success of the basic definition, the process starts with an The new law also directs the agency to “strive program by Jan. 1, 2012. environmental assessment worksheet to de- in the permitting process to assure the lowest HF1743/SF2182*/CH138 termine whether the size, scope, and location mercury emissions reasonably possible.” of the project would change the environment Rep. David Dill (DFL-Crane Lake) and Sen. enough to trigger a large-scale environmental Thomas Bakk (DFL-Cook) sponsored the impact statement. A full environmental impact legislation. ENVIRONMENT statement is mandatory for certain projects. HF2986*/SF3022/CH220 ★ Some lawmakers have criticized the environ- mental permit process in Minnesota, saying it Regulating petroleum tanks is costlier and more time-consuming than in From exotic to invasive A new law will modify the Pollution Con- competing states. A new law revises statutory terminology re- trol Agency’s field citation practices to make Proponents were concerned an ethanol plant lating to aquatic invasive species and puts more aboveground storage tanks subject to the same proposed for the southern part of the state teeth behind criminal penalties for those who regulations as underground storage tanks with would instead be built in Iowa. disregard laws designed to keep Minnesota respect to environmental considerations such Rep. Bob Gunther (R-Fairmont) and Sen. waters free from infestations. as spill, overfill, and corrosion protections and Julie Rosen (R-Fairmont) sponsored the Effective June 1, 2004, the new law defines leak detection methods. legislation. invasive species as nonnative species that can Effective Aug. 1, 2004, the new law also will HF2633*/SF2621/CH217 naturalize and either “causes or may cause shorten the compliance grace period facility economic and environmental harm or harm operators have to meet the regulations and to human health; or threatens or may threaten raise the penalties for certain violations. Nugget race natural resources or the use of natural re- The agency has the regulatory authority to A new law aims to ensure that the process of sources in the state.” issue red tags to facility operators for failure to producing high-quality iron nuggets from iron The new law addresses the issue of trans- comply with state and federal requirements. ore moves from demonstration to production ferring nets and other implements between The tag is attached to the top of the tank’s fill in Minnesota before another state steals the infested and non-infested waters, as designated pipe, and it signifies that petroleum product economic thunder of being the first to produce by the Department of Natural Resources. In deliveries are prohibited until the violation is a better quality nugget. most cases, resetting between the two is corrected. Effective May 20, 2004, the new law will prohibited. Under the new law, which was forwarded exempt from certain environmental review One provision of the new law sets tagging at the prompting of the Minnesota Petroleum the first iron nugget production facility in the requirements for nets used in non-infested Marketers Association, facility owners will have state and require the Pollution Control Agency waters by commercial anglers who fish both 60 days to correct a violation before a citation and other state agencies with permit granting infested and non-infested waters. However, is issued, unless there is a discharge associated authority to provide public notice for neces- there is an exception for waters infested solely with the violation or it is a repeat violation sary permits within four months of receiving with Eurasian water milfoil. Nets used for from a previous inspection. Currently, the a complete application. commercial fishing and turtle, frog or crayfish grace period is 90 days. The goal is to get the Mesabi Nugget produc- harvesting in milfoil-infested waters may be Another provision will raise from $250 to tion plant up and running on the site of the transferred but have to be dried for a minimum $500 the penalty for violating rules relating to former LTV plant in Hoyt Lakes. A full-scale of 10 days or frozen for a minimum of two days upgrading existing underground storage tank production facility was proposed at the site of to kill any invasive organisms before use in systems, up to a maximum of $2,000 per tank the successful demonstration plant in Silver non-infested waters. Commercial anglers also system, and raise from $100 to $250 the penalty Bay, but the reality of a two- to three-year en- are required to notify the department before for violating underground storage tank system vironmental review process for a facility along making such a transfer. general operating requirements. the Lake Superior shore prompted a change in Another provision changes the penalty from Rep. Joe Hoppe (R-Chaska) and Sen. Thomas plans. a misdemeanor to a gross misdemeanor for Bakk (DFL-Cook) sponsored the law. The legislation was impelled by concerns anyone who refuses to obey an order to remove HF2365/SF2299*/CH169 that Indiana would entice the facility operators invasive species from watercraft. to leave Minnesota with the promise of quicker, Among other civil penalty provisions, the cheaper environmental permits. new law sets in statute a $50 penalty for failing

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to drain water from watercraft and equipment three years indicates that the level of avail- of such features could eliminate for homeown- before leaving designated zebra mussel, spiny able phosphorus in the soil is insufficient to ers the possibility of installing a trench system water flea, or other invasive plankton-infested support healthy turf growth; and require a more expensive mound system. waters. • the property owner is first establishing turf But there has been some confusion in the Rep. Denny McNamara (R-Hastings) and via seed or sod procedures, and only during field about redoximorphic features that may Sen. Wes Skoglund (DFL-Mpls) sponsored the the first growing season; or have been from centuries ago, proponents legislation. • the fertilizer containing phosphorus is used argued. HF2363*/SF2211/CH243 on a golf course under the direction of a Effective Aug. 1, 2004, the new law will re- person licensed, certified, or approved by quire the agency rulemaking process to address an organization with an ongoing training the following: program approved by the department. • a definition of redoximorphic features and Phosphorus fertilizers banned Under the new law, phosphorus fertilizers other criteria that can be used by system A statewide ban on the use of phosphorus applied under these exceptions must not designers and inspectors, fertilizers on established residential lawns will exceed rates recommended by the University of • direction on the interpretation of observed be enacted, under a new law. Minnesota and approved by the department. soil features that may be redoximorphic and The purpose of the law, sponsored by Rep. HF2005*/SF1999/CH179 their relation to zones of seasonal satura- Denny McNamara (R-Hastings) and Sen. Dan tion, and Sparks (DFL-Austin), is to protect Minnesota’s • procedures on how to resolve professional dis- lakes and rivers from an overabundance of agreements on seasonally saturated soils. phosphorus that can cause algae bloom. Soil science Under the law, new rules must be in place The 2002 Legislature approved a similar ban A new law gives the Pollution Control by March 31, 2006. for the seven-county Twin Cities metropolitan Agency some direction on the interpretation Rep. Kathy Tingelstad (R-Andover) and Sen. area that took effect Jan. 1, 2004. Some coun- of soil features as the agency adopts new rules Michael Jungbauer (R-East Bethel) sponsored ties outside of the metropolitan area also have for water table analysis. the legislation. adopted their own phosphorus restrictions, The committee process through which the HF2000*/SF1900/CH249 and proponents said variations in regulations legislation passed gave lawmakers new famil- concerning lawn fertilizers were becoming iarity with the term “redoximorphic.” difficult for homeowners to decipher. Redoximorphic features are formed in satu- The new law will take effect Jan. 1, 2005, rated soil by iron and manganese oxidation and Diluting pollution and will apply to fertilizer to be used for turf other chemical processes. The features, often A new law will give residential septic sys- purchased at retail after Aug. 1, 2004. identified by gray mottled soil, indicate the tem owners some options beyond the typical The new law provides for exceptions when: level of the water table or presence of water at mound or trench filtration configurations • a tissue, soil, or other test by a laboratory or one time. when soil conditions call for a different method approved by the Department of Under current agency rules for individual approach. Agriculture and performed within the last sewage treatment system design, the presence Effective May 30, 2004, the law creates a 10-year pilot program for state certification and approval of new septic system technologies that could be a better fit for some. One new type of residential system, known as a biodigester and water reclamation system, collects and separates blackwater — sewage from toilets and garbage disposals — from other wastewater, known as greywater, and then allows the water to be mechanically or biologically recycled or returned to surface and groundwater supplies. The new law establishes a pilot process with the Department of Health and Pollu- tion Control Agency to get approval for these new technologies; the goal is to make those technologies more easily accepted and used by consumers to protect the environment. Proponents hold out great hope for the technology to be used successfully along lake- shores. Under the new law, the alternative systems

PHOTO BY TOM OLMSCHEID must meet state and federal wastewater treat- A statewide ban on the use of phosphorus fertilizers on established residential lawns is enacted, under ment standards. Manufacturers are obli- a new law. The purpose is to protect Minnesota’s lakes and rivers from an overabundance of phosphorus gated to achieve certification by the Pollution that can cause algae bloom.

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Control Agency, a process for which the agency purposes; direct the DNR to meet fiduciary Permitting mineral byproducts could charge them up to $4,000. requirements to the Permanent School Fund; A new law will expand Pollution Control Manufacturers also are required to provide and eliminate a restriction that bars state em- Agency authority to grant permits to minerals appropriate training to install, maintain, op- ployees from participating in public land sales, processing facilities for the disposal of mineral erate, and monitor the systems. The agency, provided they are not otherwise involved in the tailings under environmental guidelines simi- together with the Health Department and sale process or a department employee. lar to taconite tailing deposition permits. local regulatory authority, will require inde- Another provision will require county Taconite companies are required by state law pendently verified annual monitoring and approval before the department creates a sci- to obtain permits from the agency to dispose of maintenance reports from system owners. entific and natural area. tailings, which are the byproducts of taconite Rep. Mark Olson (R-Big Lake) and Upon approval by the Lake County Board, production. The tailings can be environmen- Sen. Dallas Sams (DFL-Staples) sponsored the the city of Beaver Bay is allowed to alter a par- tally problematic because the lack of vegeta- legislation. cel of land from a gravel pit to a low-income tion to anchor the soil on which the tailings HF2040*/SF2090/CH248 housing property without the land reverting are deposited can increase soil erosion, speed back to tax-forfeit status. contaminated runoff into ground and surface Rep. Larry Howes (R-Walker) and Sen. Tom water, and decrease air quality with excessive Saxhaug (DFL-Grand Rapids) sponsored the dust during dry seasons. Land swaps and sales legislation. Current law allows for tailings to be dis- A new omnibus lands law provides for a HF2334*/SF2204/CH262 posed of in mine pits provided the company number of publicly owned land transactions “demonstrates through an environmental and modifies some of the guidelines governing impact statement and risk assessment that the those deals. deposition will not pose an unreasonable risk Legislative approval of land deals is granted, Selling state timber of pollution or degradation of groundwater.” effective July 1, 2004, in the following desig- A new law modifies state timber sales in The new law, effective Aug. 1, 2004, will al- nated areas. order to fulfill recommendations from the low for the deposition of any mineral tailings, Additions to state-managed areas: governor’s task force on the competitiveness provided the same environmental standards • Beltrami Island State Forest, Lee Wildlife of Minnesota’s timber industry. are met. Management Area, Red Lake Wildlife Effective July 1, 2004, the new law creates Rep. Tom Rukavina (DFL-Virginia) and Management Area, and Saw-Whet Wildlife a forest management investment fund in the Sen. David Tomassoni (DFL-Chisholm) Management Area, all in Beltrami County; state treasury into which timber sale receipts sponsored the legislation. • Crow Wing State Park in Cass, Crow Wing, from certain lands administered by the Depart- HF1836*/SF1693/CH157 and Morrison counties; ment of Natural Resources Division of Forestry • George H. Crosby Manitou State Park in will be deposited and rededicated to forestry Lake County; efforts. • Itasca State Park in Becker, Clearwater, and Proponents said the fund would provide DNR provisions potpourri Hubbard counties; a minimal level of stability for funding basic A new law that started its legislative life- • Maplewood State Park in Otter Tail County; forest management and allow the department cycle as a Department of Natural Resources and to carry balances between legislative funding housekeeping bill ended up carrying one of • Monson Lake State Park in Swift County cycles, which is helpful due to the seasonal the more high profile environmental issues of Deletions from state forests: nature of the activities. the legislative session: an easing of restrictions • Foot Hills State Forest in Cass County; Effective Aug. 1, 2004, the new law adds the on wetlands travel for off-highway vehicles. • George Washington State Forest in College of Natural Resources and the Natural The new law removes restrictions put in Itasca County; Resources Research Institute, both at the Uni- place by the 2003 Legislature against riding • Paul Bunyan State Forest in Hubbard County; versity of Minnesota, to the membership list on types 3, 4, 5, and 8 wetlands, with certain and of an existing Forest Interagency Information caveats. Under the new law, a person may not • Mississippi Recreational River Land Use Cooperative. operate the vehicles in a manner to: “indicate District in Wright County. Other provisions effective Aug. 1, 2004, will a willful, wanton, or reckless disregard for the Furthermore, public and private sales, remove a 6,000-cord limit that is currently in safety of persons or property” or “carelessly conveyances, or exchanges of various types place for timber sales on state lands at regular upset the natural and ecological balance of a of land — consolidated conservation, tax- auction sales; allow the department to enter wetland or public waters wetland.” forfeited, school trust fund, or state surplus into agreements with weight scale owners or The restrictions against all-terrain vehicle — are authorized in the following counties: operators to guarantee that state timber is use in state parks, scientific and natural areas, Aitkin, Beltrami, Chisago, Cook, Crow Wing, properly measured; and modify the authority and wildlife management areas remain, with Hennepin, Itasca, Lake of the Woods, Mille of county administrators to allow them to ac- the addition of calcareous fens to the forbidden Lacs, Olmsted, Rock, Roseau, and St. Louis. cept a bank letter of credit in place of a down areas, but the new law grants the department Other provisions, effective Aug. 1, 2004, de- payment from purchasers for certain sales. authority to issue up to a 10-year permit to lineate land authority between the Department Rep. Doug Lindgren (R-Bagley) and Sen. exempt private landowners or leaseholders of Natural Resources (DNR) and Department Tom Saxhaug (DFL-Grand Rapids) sponsored from the restrictions when the only reasonable of Administration; encourage sale by landown- the legislation. access to their property is across state land. ers of low-value land needed for conservation HF2383*/SF2583/CH241 The new law specifies a number of chang-

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es to department accounting procedures, public lands or trails is removed and an adult to help couples learn skills, such as communi- including: supervision clause is added that would place cation, cooperation, and conflict resolution, • A facilities management account is created in the adult “in a position to manage, direct, and that had they known earlier might have saved the state treasury for the department to better oversee,” according to prior testimony from their marriage. It is hoped that this will spare track the costs of providing its various orga- department officials, but the adult would not children as much anguish and emotional nizational units with buildings, maintenance, necessarily have to ride along. trauma as possible and not drag them into the and other infrastructure expenses; The new law clarifies that a person under the dispute. Judges will still be permitted to excuse • Fees collected for tours in Forestville State Park age of 14 with a safety certificate is still pro- individuals from taking the classes. will be deposited in the state parks working hibited from crossing a highway or operating The law also provides for the creation of the capital account; the machine on a street or highway. Minnesota Healthy Marriage and Responsible • Revenue generated by state park service Another provision clarifies that 16- and Fatherhood Initiative. According to the law, it contracts will be deposited in the Natural 17-year-olds are now eligible to take the adult is designed to “develop a community-based Resources Fund and credited to the state snowmobile safety course offered by the collaborative project that will test and evalu- park account; and department. Also along the lines of training, ate a comprehensive strategy for promoting • Revenue generated by a Minneapolis Parks safety course certificates issued in other states marriage and responsible fatherhood among and Recreation Board lease for athletic fields will be accepted as long as the department unmarried urban parents who are expecting and a golf course at the upper bluff of Fort deems the course to be substantially similar or have recently had a child.” Snelling State Park will be deposited in the to Minnesota requirements. Among the objectives of the initiative are to Natural Resources Fund and credited to The new law clarifies that the department encourage stable family formation, increase the state park account. Under the new law, may test motorboats and marine engines at paternity establishment and enhance related the upper bluff money will be required to idle. Previous law only prescribed pass-by child support performance indicators, pro- be tracked separately and appropriated as tests at certain distances. Another provision mote responsible fathering, and enhance the necessary to pay expenses relating to the lease, prohibits the use of altered mufflers or muffler well-being of children. including historic building and landscape bypass equipment. The law appropriates $100,000 from the maintenance. Provisions in a game and fish law enacted general fund to the Department of Human The new law also will provide free public this year that prohibits the taking of albino deer Services for the initiative. The money will parking for a rest area at Tettegouche State Park and set guidelines for live bait retailer licenses be repaid from a $5 increase in the marriage along the North Shore’s Highway 61 and at a are repealed. license fee. part of the Red River State Recreation Area in Most of the new law is effective July 1, 2004, Rep. Elaine Harder (R-Jackson) and East Grand Forks. with the exceptions of the marine engine noise Sen. Steve Dille (R-Dassel) sponsored the Among the other department activities measurement and the repealer provisions, law. covered in the new law are electronic licensing, which both took effect May 30, 2004. HF2642*/SF1846/CH273 snowmobile safety training and youth supervi- Rep. Dennis Ozment (R-Rosemount) and sion, and motorboat noise regulation. Sen. John Marty (DFL-Roseville) sponsored Electronic licensing is a relatively new sys- the legislation. tem, and the new law will clarify license filing HF2212*/SF2216/CH255 GAMBLING fee collections between the department and ★ approved agents and clean up language cur- State lottery changes rently on the books that refers to it as a pilot A new law makes several changes to the program. FAMILY operation of the Minnesota State Lottery. The new law grants the department author- ★ Sponsored by Rep. Tim Wilkin (R-Eagan) ity to refund license fees to the families of Parenting education and Sen. Ann Rest (DFL-New Hope), the law hunters and anglers who die, or to those who Parents going through a divorce will be re- gives the governor responsibility for appoint- get called to active military service before they quired to participate in a minimum number of ing the state lottery director; requires the can enjoy the open season. parent education programs in the areas of child lottery director to submit a budget in compli- Another licensing provision will allow custody, support, or parenting time proceed- ance with the rules, format, and instructions charter boat operators to issue one-day fishing ings, under a new law that is in response to a established by the commissioner of finance; licenses. Minnesota Supreme Court recommendation. and creates a Lottery Organization Task Force The law attempts to address some confusion Effective July 1, 2004, divorcing couples who to study and make recommendations on the over restrictions and supervision requirements are disputing child custody will be required to future organization and profitability of the for young snowmobilers. Previous law stated attend at least eight hours of parenting classes lottery. that without a snowmobile safety certificate, within 30 days after the first filing of any plea in The law is in response to a February 2004 a person under the age of 14 may operate their divorce. Under previous practice, divorc- legislative auditor’s evaluation of the lottery. on public land, public easements, or water ing parents contesting child custody matters The report found concerns in a number of or grant-in-aid trails only if accompanied by were required to attend between four and eight areas, including promotional spending, the an adult on the same or an accompanying hours of classes. amount of leased space, and staffing levels. vehicle. The goal is to get parents involved in par- The seven-member task force will be com- Under the new law, the language specifying enting education as soon as possible during prised of the commissioners of finance and divorce proceedings. The classes are designed

24 ��� Highlights ���� � � � �

natural resources, a House member, a Senate member, the lottery director, and two guber- natorial appointees by Feb. 1, 2005. The law, effective May 20, 2004, also lowers the operating expenses for fiscal years 2004 and 2005 to $27.4 million from $43.5 million. The expenses must not come from a direct function of lottery sales, which include the cost of lottery prizes, monies paid to lottery retailers as sales commissions or other compensation, costs to produce and deliver scratch game tickets, and amounts paid to an outside vendor to operate and maintain an online gambling system. HF2199/SF2181*/CH233

Charitable provisions A new law makes several changes to chari- table gambling, including raising the total win- nings of a bingo prize from $2,500 to $2,800, PHOTO BY TOM OLMSCHEID unless a cover-all game is played, in which case A mourning dove hunting season is established for the first time since 1947, under a new law. the limit increases from $3,500 to $3,800. event, if a parent or guardian accompanies doves, will begin at 9 a.m. rather than noon, Rep. Carl Jacobson (R-Vadnais Heights) and the person. as is current practice. Sen. Jim Vickerman (DFL-Tracy) sponsored • The number of days in a calendar year on Youth-directed provisions include allow- the law. which an organization may conduct law- ing turkey hunters under the age of 16 to be It also makes changes to the Minnesota ful gambling on premises other than those accompanied by unlicensed, unarmed adults Gambling Control Board. Added to over- for which the organization has a premises and sanctioning Minnesota residents under the sight responsibilities include adopting rules permit is increased to four and one event age of 18 to take up to 25 turtles for nonprofit for tipboard games with multiple seals and up to 12 consecutive days in connection turtle racing, as long as the turtles are greater cumulative or carryover tipboard prizes. with a county fair, state fair, church festival than four inches in length. The Department of Other provisions include: or civic celebration. Previous law was one Natural Resources discontinued issuing new • Veterans’ posts can spend up to $1,500 per day or one event. turtle seller’s licenses in 2002, and the new law person to send as many as two veterans to • Gambling organizations may not report cash allows a turtle seller’s license to be transferred Washington, D.C. for the May 29 dedication shortages in any fiscal year that exceed three- to the child of the licensee. of the National World War II Memorial. The tenths of 1 percent of the gross receipts from Other provisions will protect albino deer, measure places a cap on the total amount lawful gambling. Previous law allowed for allow people with extreme visual impairments from each organization at $6,000. Originally four-tenths of 1 percent. to use a muzzleloader with a scope during the the provision was HF1835 sponsored by Most of the law is effective May 1, 2004, deer season, and allow for turkey hunting by Rep. Marty Seifert (R-Marshall). except for the cash shortages section, which archery in the last two weeks of the spring • A person under age 18 may play bingo on one takes effect July 1, 2004. season. occasion at an event sponsored by a licensed HF2521*/SF2435/CH172 The department also is authorized to es- organization as part of an annual community tablish a quality deer management pilot zone in Kittson, Lake of the Woods, Marshall, Pen- nington, and Roseau counties in which the GAME & FISH antler size of deer is further considered. ★ The new law amends a restriction put in Doves, ducks, and deer place last year to prohibit the spread of chronic A new law reinstates a mourning dove hunt- wasting disease by disallowing the importation ing season in Minnesota and gets tougher on of intact hunter-harvested carcasses. Hunters scofflaws who disregard game and fish regula- from outside Minnesota now will be allowed tions. to transport the carcasses on a straight shot Effective Aug. 1, 2004, the law allows for a through the state. The provision also further

PHOTO BY ANDREW VONBANK three-year license revocation for those who fail clarifies that the importation restrictions are A new law makes several changes to the operation to pay court-ordered fines for game and fish on carcasses from known chronic wasting of the Minnesota State Lottery, including the violations. disease endemic areas identified by the Board creation of a Lottery Organization Task Force to Under the new law, on the opening day of of Animal Health. study and make recommendations on the future duck season the shooting hours for migratory The department is prescribed to report organization and profitability of the lottery. game birds, except woodcock and mourning on the effect of the new season on the state’s

25 Highlights ��� ���� � � � �

mourning dove population; the impacts of the an actuarial consulting firm to conduct annual Murphy (DFL-Red Wing) sponsored the legis- change in shooting hours, including the har- actuarial valuations. lation. vest success, on local waterfowl populations; It requires the contract to require comple- Proponents of the legislation argued for the and ways to improve wildlife habitat within tion of specified actuarial valuations, experi- program’s validity. The program has produced the right-of-ways of public roads. ence data collection, and cost analyses for a certified employee training program, Min- And the law calls for the department to certain proposed legislation. An annual report nesota propane consumer guide, and safety coordinate lead tackle awareness and public to the Legislature summarizing the annual tips for fish house heating and propane use at education efforts and promote the availability actuarial valuations is required. construction sites, Howes said. of fishing tackle that does not contain lead, Terms of a contract with an actuary re- HF2653/SF2455*/CH222 such as lead free jigs and sinkers. tained are limited to five years in the new law. Rep. Joe Hoppe (R-Chaska) and Sen. Tom Contractual terms can’t limit the Legislature’s Saxhaug (DFL-Grand Rapids) sponsored the ability to rely on results of the actuary’s work, legislation. the language specifies. Making DNR rules HF2368*/SF2203/CH215 The new law took effect May 20, 2004. A new law will modify the Department of HF890/SF806*/CH223 Natural Resources rulemaking process for a number of duties. State law recognizes an agency rule as “every GOVERNMENT Promoting propane safety agency statement of general applicability and ★ A new law, effective Aug. 1, 2004, will allow future effect, including amendments, suspen- Department changes the Propane Education and Research Council sions, and repeals of rules, adopted to imple- A new law makes comprehensive housekeep- to plan for the future by removing an Aug. 1, ment or make specific the law enforced or ing and technical changes to the Department of 2009, sunset date from statute. administered by that agency or to govern its Employment and Economic Development. The Legislature approved the formation of organization or procedure.” Rep. Lynne Osterman (R-New Hope), the the council in 2001. According to state law, The Legislature grants authority to agencies House sponsor, said the change eliminates the purpose of the group, including propane to adopt rules, and agencies must follow certain duplications such as the name of the agency, producers and propane retail marketers, is to procedures before formally proposing the rules moves archaic functions outside of new agency establish, support, or conduct research, train- and forwarding them for possible public notice scope, updates the statues that related to pre- ing, and education programs concerning the or administrative law judge review. vious departmental reorganizations, updates safe and efficient use of propane. The new law addresses department rulemak- statutes to current federal law, and repeals Rep. Larry Howes (R-Walker) and Sen. Steve ing exemptions in the following select areas: outdates law and rules. The Legislature abolished the Department of Economic Security effective July 1, 2003, and transferred its duties to the new Department of Employment and Economic Development, which was previously called the Department of Trade and Economic Development. A department merger update said the con- solidation of offices provides a single, cohesive agency to provide workforce and economic development services. In addition, it allows them to consolidate the offices in the same physical space, thereby eliminating millions in future lease payments. The law is effective May 19, 2004. Sen. Julie Rosen (R-Fairmont) is the Senate sponsor. HF2386*/SF2350/CH206

Pension funds A new law addresses actuarial valuations and other services related to major public pension plans. Sponsored by Rep. Steve Smith (R-Mound) PHOTO BY ANDREW VONBANK and Sen. Don Betzold (DFL-Fridley), it orders A new law removes a sunset date for the Propane Education and Research Council. The council the chief administrative officers of a number of establishes, supports, or conducts research, training, and education programs concerning the safe public pension plans to jointly contract with and efficient use of propane.

26 ��� Highlights ���� � � � �

name designations for lakes and other geo- The changes are necessary to ensure that, as of the general revenue fund. The commissioner graphic features; designations of recreational time passes, a program doesn’t suddenly run is to work with House and Senate fiscal staff to areas, scientific and natural areas, and wildlife out of money. For example, if more people are determine the categorization of the accounts management areas; and declarations of certain taking part in a program than expected the and other review standards. areas as infested with forest pests. appropriation may be increased. Conversely, if Knoblach said that many of the state’s 1,600 Effective May 20, 2004, the new law will fewer people are participating the appropria- special revenue funds “are not reviewed as clarify that the department’s current practice of tion put into law in 2003 is decreased. often as they should.” making determinations in areas such as those Supporters say the law is important because Additionally, the budget submitted by the mentioned above under the commissioner’s people expecting aid from a program may not governor to the Legislature is to be divided by written order is acceptable. The new law pro- receive it when the money runs out and the tables, but the new law requires how it is to be vides that the written orders must be published department cannot disburse benefits. divided. According to the law, “The tables must in the State Register. One item in the law raises the bonding separately show any adjustments to the base Other provisions allow for the department authority for the Public Facilities Authority required by current law or policies of the com- to set certain fees by rule rather than running to help finance local wastewater treatment missioner of finance. For forecasted programs, them past the Legislature to be placed in law. facilities and other infrastructure, and allows the tables must also show the amount of the The new law does not, however, change hunt- for various interest rate swaps to lower interest forecast adjustments, based on the most recent ing or fishing fees or other major categories set costs when the bonds are issued. This provision forecast prepared by the commissioner. … For by the Legislature. was also in the House bonding bill that failed all programs, the tables must show the amount The legislation, sponsored by Rep. Tom to become law. of appropriation changes recommended by Hackbarth (R-Cedar) and Sen. Dennis Fred- Rep. Jim Knoblach (R-St. Cloud), who the governor, after adjustments to the base erickson (R-New Ulm), was brought forward sponsored the law with Sen. Richard Cohen and forecast adjustments, and the total recom- at the behest of the department. (DFL-St. Paul), said the changes were all in mendation of the governor for that year.” HF2433/SF2472*/CH221 House omnibus bills. The law is effective Aug. 1, 2004. HF2867*/SF2732/CH272 HF2446*/SF2558/CH284

Technology dollars A new law cancels the balance of an expired Fund oversight Claims bill fund and transfers $117,000 from the state’s Better management and organization of A new law authorizes payment of $107,287 general fund to the commissioner of admin- state funds and accounts is expected to be the to settle 10 claims against the state, while istration to complete technical projects for the result of a new law. the governor again prohibited payment for Minnesota Board of Nursing and the Land Sponsored by Rep. Jim Knoblach (R- another. Management Information Center. St. Cloud) and Sen. Richard Cohen (DFL- Each year, a joint House-Senate Subcom- Rep. Bill Haas (R-Champlin), who sponsored St. Paul), the law requires the finance com- mittee on Claims meets to determine which the law with Sen. Jane Ranum (DFL-Mpls), missioner to eliminate certain accounts on the petitions will be funded. All state agencies said the law, “releases that money to them so basis of several factors, including: are eligible to receive funding to cover the that they can complete their computerization • receipts and transfers into the account aver- claims. and start moving forward with the new systems age less than $1,000 per year in the last four Sponsored by Rep. Bruce Anderson and the new programs that they are institut- years; (R-Buffalo Township) and Sen. Wes Skoglund ing.” The nursing board brought the issue to • year end balances in the past four years average (DFL-Mpls), the law appropriates $67,815 to him. less than $1,000; and the corrections commissioner for the payment The law, effective May 1, 2004, specifically • the account has been in existence for at least for eight claims from persons injured while says the money, is for “completing small agency four years. performing community service or sentenc- infrastructure and electronic government Any balance remaining in an account must ing-to-service work for correctional purposes service projects funded through the technol- be transferred to the state’s general fund unless or while a person is incarcerated. ogy enterprise fund and underway but not some other disposition is specified in law. The Nearly $39,472 will be paid by the Depart- completed” when the technology fund was Legislature must be informed of any account ment of Natural Resources for two claims repealed in 2003. eliminations. including revenue loss from a moratorium The appropriation is available until Beginning with fiscal year 2005, one-quarter on raising sunken logs from lake bottoms, June 30, 2005. of the state’s special revenue accounts are to and reimbursement of fines paid during the HF2340/SF2241*/CH238 be reviewed by the commissioner, and sub- settlement of a land dispute. sequently each year following one-quarter For the second straight year, Gov. Tim must be evaluated until all funds have been Pawlenty line-item vetoed a $27,000 appro- examined. priation to resolve a land dispute with the Bode Funding updates The review must categorize the accounts by family in Nicollet. The family’s claim in 2003 Effective July 1, 2004, allocations made type and include a legislative and financial his- was $26,000. in 2003 have been changed in the areas of tory of each account, and the rationale for its The family and the Natural Resources De- K-12 education, early childhood and family existence. Additionally, the review must explain partment have been at odds for more than education, and health and human services. why the account should not be considered part 20 years. The department has twice removed a

27 Highlights ��� ���� � � � �

drain tiling system in a dispute over a wetlands Other select provisions, effective The law also includes more specific descrip- designation on the family farm. Aug. 1, 2004, for the most part, allow for the tions for long-term and short-term training, The family installed the tile to drain the wet- release of certain private individual data to with greater emphasis on providing focused land after a local panel ruled the land did not welfare system personnel and Department of short-term training. qualify as a wetland. The department contested Revenue tax refund and tax credit program Under the law, the employment and eco- that the owners didn’t have the right to tile, administrators, allow for the release of infor- nomic development commissioner in consul- and the disagreement went through the court mation by mental health providers to law en- tation with the board, must enter into contracts system. Ultimately, the Minnesota Supreme forcement officers in emergency situations, and with local workforce investment boards and Court ruled in favor of the department that ensure that Department of Natural Resources other eligible organizations. The law also calls the area of the farm in dispute is a wetland. information on the location of endangered for the establishment of performance stan- The law would have given the family money plants and animals is protected. dards and it requires a report to the Legislature for costs incurred from the appealing of court Two other components of the new law, ef- by March 1 of each year on whether grant decisions. fective May 30, 2004, clarify that written police recipients are meeting standards for dealing Had the family accepted the payment, an reports must be released to the victim and the with substantial layoffs and plant closings. administrative law judge would have then de- victim’s attorney, and allow for public entities Another provision, effective Jan. 24, 2003, termined if the land in question is a wetland. to conduct closed meetings to receive security allows for an injury or illness resulting from That judgment would be final. briefings if disclosure of the information dis- a vaccine required for an employee’s job, as a Pawlenty’s 2004 veto states, “The legal claims cussed would pose a danger to public safety, result of a federal declaration under the Public regarding the designation of the Bode’s land related financial issues are discussed at an open Health Service Act, to be compensable under as a public wetland are final court orders. meeting, and the meetings are recorded. workers compensation law. Allowing one claimant a special privilege to Rep. Dick Borrell (R-Waverly) and Sen. HF2799*/SF2646/CH257 circumvent the results of final court decisions Wes Skoglund (DFL-Mpls) sponsored the sets a dangerous precedent.” legislation. The law is effective July 1, 2004. HF2087*/SF1889/CH290 GREATER MINNESOTA HF2255*/SF2038/CH271 ★ Iron Range Resources leader Dislocated worker program A new law, effective April 3, 2004, clarifies Protecting privacy A new law makes several changes to the in state law that the governor is to appoint a A new omnibus data practices law makes a dislocated worker program that helps those commissioner to the Iron Range Resources and number of changes to the classification and who become unemployed through plant clos- Rehabilitation Agency. protection of information concerning public ings, substantial layoffs, and changing market The agency was formed in 1941 to oversee employees, welfare, recipients, mental health demands. and encourage economic development on the patients, domestic abuse victims, and endan- The law is effective Aug. 1, 2004, unless Iron Range. gered species. otherwise noted. Commissioner Sandy Layman told a House Currently, portions of personnel records Sponsored by Rep. Bob Gunther (R-Fair- committee that statutory clean-up work in for state employees, including name, job title, mont) and Sen. Ellen Anderson (DFL-St. Paul), 1997 erroneously eliminated the provision and salary, are considered public. The new law the law makes modifications to services and that establishes her post. A 2002 legislative classifies the city and county of residence of the allocation of grant funds, tightens eligibil- audit suggested the agency should advise the public employees as private data. ity requirements, and calls for a report to the Legislature to streamline the statutory language Along similar lines, the new law aims to Legislature. surrounding the agency and its board. The new provide public employees of correctional and The law limits legislative recommendations law will be a first step in that effort. secure treatment facilities with greater protec- required from the Job Skills Partnership Board Rep. Maxine Penas (R-Badger) and Sen. Tom tion from those who may seek personnel data to programs under the board’s oversight. Saxhaug (DFL-Grand Rapids) sponsored the with harmful intentions. Recommendations to be submitted to the legislation. The following data disclosure for those Legislature by Jan. 15 of each odd-numbered HF2105*/SF2632/CH150 employees is limited: the place where previ- year are regarding workforce development ous education or training occurred; place of programs, modifications or eliminations of prior employment; payroll timesheets or other existing workforce programs under the board’s comparable data that may disclose future work oversight, and any potential new programs. HEALTH assignments; the location of an employee dur- Funding levels and sources must be included ★ ing non-work hours, including a home address in the recommendations. Terminology change or telephone number; and the location of an Funds granted by the board, under the law, A new law provides a state statute clarifica- employee’s immediate family members is not must “reflect recent trends in the number of tion for the way some assisted living facilities to be disclosed to facility patients, corrections permanently separated individuals applying are termed. inmates, or other individuals who facility ad- for unemployment benefits in a given work- Rep. Brad Finstad (R-New Ulm), who spon- ministrators “reasonably believe will use the force service area.” Each quarter the board sored the law with Sen. Mee Moua (DFL-St. information to harass, intimidate, or assault is to evaluate and adjust its obligations Paul), said the law is a technical fix. any of these employees.” accordingly.

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He said the state addresses assisted living on the construction of new hospitals in the the gift the donor or the donor’s spouse was facilities as “housing with services,” which is state, and most exceptions must currently receiving long-term care services, was advised causing some problems with terminology com- obtain legislative approval. by a medical professional of the need for long- monly used for long-term care insurance. Effective Aug. 1, 2004, the new law will term care services, or was a medical assistance Effective Aug. 1, 2004, a registered housing establish a process by which the health com- applicant or recipient. with services establishment “that holds, or missioner must issue findings and recommen- The criteria are that the donor made one or contracts with an individual or entity that dations to the Legislature when hospitals seek more gifts to the same organization more than holds, a home care license and all other licenses, an exception. 180 days prior to the date of the gift in ques- permits, registrations, or other governmental Under the new law, hospitals will be required tion, and the gift was made to an organization approvals legally required for delivery of the to pay for the cost of the review and answer for which the donor had provided volunteer services the establishment offers or provides a number of questions designed to establish services, acknowledged in writing, prior to the to its residents, constitutes an ‘assisted living whether the exception is in the public’s best date of the gift. facility’ or ‘assisted living residence.’” interest. The law is effective upon publication of a HF1936/SF1671*/CH185 Proponents said the legislation is intended notice in the State Register of receipt of federal to take moratorium exception approval out of approval for the 72-month lookback period. the political process and give the department HF2581/SF2112*/CH266 the third-party ability to review applications. Adverse event reporting Opponents questioned whether the new The duties of the Department of Health process could ultimately stymie competition and health facilities in the reporting of adverse in the health care arena. Drug rebates, kickbacks health care events are clarified under a new Rep. Dan Severson (R-Sauk Rapids) and Sen. In recent years, pharmaceutical companies law. Michelle Fischbach (R-Paynesville) sponsored blocked consumer access to discounts or other Effective Aug. 1, 2004, the law makes some the legislation. reductions in price, such as rebates, claiming technical changes to an act passed in 2003 that HF2085*/SF1835/CH231 that the state’s version of the Medicare anti- requires the reporting of 27 events that should kickback law prohibited these practices. never happen in hospitals, such as surgery on Effective July 1, 2004, a new law says there is the wrong body part or person, patient death or nothing in state law that would prevent access disability related to medical devices or drugs, Transfer rules to discounts, price reductions or free supplies or patient protection errors such as discharging A new law would change provisions related of a prescription drug, medical supply or an infant to the wrong person. to charitable contributions in the event the medical equipment, provided the discount or Under the law, medical errors that now federal government approves the state’s request price reduction is given in connection with the involve children will be reported; the boards to extend the look-back period for transfer of purchase of the drug or equipment prescribed; of practice for physicians, nurses, physicians assets at less than fair market value from 38 to it complies with state and federal requirements assistants, pharmacists, and podiatrists will be 72 months. applicable to state and federal public health mandated reporters of adverse events; mem- Rep. Fran Bradley (R-Rochester), who spon- care plan enrollees; the discount does not bers and employees of the boards of medical sored the legislation with Sen. Linda Higgins exceed the amount paid directly by the indi- practice, chiropractic examiners, pharmacy, (DFL-Mpls), said the idea for the change came vidual; and the supply or samples are provided and podiatric medicine are exempted from from people at the United Way who found by a physician or pharmacist, as provided by liability for making certain reports or for that donors were becoming more reluctant the federal Prescription Drug Marketing Act. maintaining certain records; and the protec- to contribute. “They were fearful of the look- The law also deals with kickbacks for pre- tion of the confidentiality of investigative back period that may grow as much as five or scription drugs. documents held by the Department of Health six years for transfers that could be counted as Under the new language, “No benefit, re- is addressed. medical assistance,” Bradley said. ward, remuneration, or incentive for continued Rep. Lynda Boudreau (R-Faribault) and Sen. The intent of the 2003 Legislature was to product use may be provided to an individual Steve Kelley (DFL-Hopkins) sponsored the close loopholes that allowed people to transfer or an individual’s family by a pharmaceuti- law. assets, which resulted in taxpayers footing the cal manufacturer, medical supply or device HF2537/SF2365*/CH186 bill for their nursing home care. Asset transfer manufacturer, or pharmacy benefit manager.” can be a common practice where individuals Exceptions include ancillary products neces- reduce their assets so they may qualify for sary for the treatment of the medical condition, publicly funded health care to help cover costs, for which the drug or equipment was supplied, Moratorium exception methods particularly in long-term care situations. and “a trinket or memento of insignificant A new law will lay the framework for the Transfers made for charitable causes that value.” process through which hospitals seeking meet certain criteria would be exempt, and the Rep. Fran Bradley (R-Rochester), who exceptions to the state hospital moratorium law clarifies how to prove a contribution was sponsored the law with Sen. Sheila Kiscaden submit the request to lawmakers and agency indeed charitable. (IP-Rochester), said some companies had officials. Under the law, two criteria shall establish allegedly provided cell phones to people for Under current law, hospitals are prohibited that a gift is a charitable contribution made using their products. from increasing or redistributing bed capacity. for a purpose other than maintaining medi- HF2207*/SF2150/CH280 The 1984 Legislature placed this moratorium cal assistance eligibility unless at the time of

29 Highlights ��� ���� � � � �

Insurance safety net 50 percent of the cost of employee coverage Hospital construction A new law makes some changes to the during the months the seasonal employee is A new law adds to the list of hospital con- guidelines governing an insurance safety net unemployed. struction moratorium exceptions. program in Minnesota. Effective Aug. 1, 2004, the new law requires Rep. Loren Solberg (DFL-Grand Rapids), The Minnesota Comprehensive Health pharmacies to provide patients, for each pre- who sponsored the law with Sen. Tom Saxhaug Association was established by the 1976 Leg- scription dispensed where part or all of the cost (DFL-Grand Rapids), said the Itasca County islature to cover Minnesotans who fall into a is covered by an employer-sponsored plan or Hospital requested an exception to the mora- high-risk pool of health insurance for a variety health plan company, the patient’s co-payment torium to add 14 beds that would be used for of reasons. Eligibility requires that a person amount and the usual or customary price of rehabilitation services. must have been turned down for insurance the prescription or the amount the pharmacy A construction moratorium was imposed because of a pre-existing condition. This could will be paid by the insurance plan. by the state several years ago to help control include self-employed people, people who The new law makes effective July 1, 2004, a health care costs, but 16 other exemptions had have exhausted COBRA benefits, and people separate new law (HF1896/SF1716*/CH187) previously been enacted in law. who work for an employer who does not offer providing for hospital construction mora- According to state statute: “The following insurance benefits. torium exceptions in Itasca and Hennepin construction or modification may not be com- According to the association, premiums counties. menced: (1) any erection, building, alteration, charged to policyholders are generally higher Rep. Tim Wilkin (R-Eagan) and Sen. reconstruction, modernization, improvement, than rates for comparable policies in the mar- Sheila Kiscaden (IP-Rochester) sponsored the extension, lease, or other acquisition by or ketplace. The program is not related to the legislation. on behalf of a hospital that increases the bed MinnesotaCare plan for uninsured residents HF2762*/SF2613/CH268 capacity of a hospital, relocates hospital beds who meet certain income requirements. from one physical facility, complex, or site to The new law increases the governing another, or otherwise results in an increase or board from nine members to 11 members Facility expansion redistribution of hospital beds within the state; and amends some of the requirements to The Comforcare Good Samaritan Center and (2) the establishment of a new hospital.” serve on the board. This provision is effective nursing facility in Austin will be permitted to The law takes effect Aug. 1, 2004. Aug. 1, 2004. construct a new 60-bed facility, under a new HF1896/SF1716*/CH187 Another provision, also effective law. Aug. 1, 2004, authorizes the association to Rep. Jeff Anderson (R-Austin), who spon- establish an enrollee incentive based on par- sored the law with Sen. Dan Sparks (DFL-Aus- ticipation in a chronic disease and case man- Survey changes tin), said the center is landlocked and unable A new law makes changes to the federally agement program. to renovate, under current law. Hormel Foods Under the new law, as of Jan. 1, 2006, the required nursing facility survey process, in- Corporation donated 11 acres to the facility to cluding joint training and the requirement of association is no longer required to offer an build a “campus style continuum of care for extended basic Medicare supplement plan an annual quality improvement report. seniors in Austin,” because the county currently Every nursing home in Minnesota must have along with its four other types of individual doesn’t have a facility like the one proposed. plans. a state license from the Department of Health The new law authorizes the city to license to operate. Department staff, known as survey- The Commerce Department is ordered to and certify the new facility under the following analyze and report back to the Legislature by ors, regularly inspect homes for compliance. circumstances: Effective Aug. 1, 2004, the law modifies the Jan. 15, 2005, the eligibility standards used for • 45 of the new beds are transferred from a enrollment for coverage under the association survey processes for nursing homes and at- 45-bed facility in Austin under common tempts to improve communications between in terms of the use of presumptive conditions ownership that is closed and 15 of the new for automatic eligibility. inspectors and nursing home operators. beds are transferred from a 182-bed facility Changes include additional requirements The new law touches on a few general health in Albert Lea under common ownership; coverage matters, as well. for provider and surveyor training. Under the • the human services commissioner is autho- law, training would be done jointly so that Effective Jan. 1, 2004, the new law provides rized to negotiate budget-neutral planned conformity to federal legislation authorizing providers and surveyors learn together on new nursing facility closures, and money is avail- regulations. the use of health savings accounts and allows able from planned closures of facilities under the sale of high deductible health plans in The health commissioner is required to common ownership to make implementa- establish a quality improvement program for Minnesota. tion of the bill budget-neutral to the state; Effective July 1, 2004, children born to the facility survey and complaint process. Ac- • bed capacity at the Albert Lea facility shall be cording to the law, “The commissioner must women who are enrolled in the prepaid Medi- reduced to 167 beds following the transfer; cal Assistance program will be retroactively regularly consult with consumers, consumer and advocates, and representatives of the nursing enrolled to the month of birth in the same • 20 beds at the new facility shall be used for a managed care plan as the mother, unless the home industry and representatives of nursing special care unit for persons with Alzheimer’s home employees in implementing the pro- child is excluded by other qualifying criteria. disease or related dementias. A separate provision allows for health gram.” An annual quality improvement report The law is effective Aug. 1, 2004. must be submitted to the Legislature beginning care purchasing alliances to include sea- HF2027*/SF2020/CH218 sonal employees. The alliance may require an Dec. 15, 2004. employer-member contribution of at least Among items the report must include are:

30 ��� Highlights ���� � � � �

proposal for education programs in relation to certain drugs. Under prior law, practitioners licensed by states bordering Minnesota had authority to fill prescriptions for Schedule II, III and IV controlled substances. The new law allows prescriptions to be written in Minnesota by a practitioner licensed by any state to dispense these classes of drugs. The education program, under the law, will be “a competency-based education and assess- ment program for professionals authorized to prescribe, dispense, or administer legend drugs.” The boards are to report its findings to the Legislature by Jan. 30, 2005. Substances considered to be Schedule II include: amphetamine, coca leaves, codeine, methadone, morphine, and various forms of opium. Schedule III drugs can contain mixtures of substances that include: benzphet- amine, clortermine, mazindol, phendimetra-

PHOTO BY TOM OLMSCHEID zine, and more. Schedule IV include: anabolic A new law makes changes to the federally required nursing facility survey process, including training substances, barbital, butorphanol, carisopro- requirements and the requirement of an annual quality improvement report, to improve communications dol, chloral betaine, and chloral hydrate. between inspectors and nursing home operators. Rep. Fran Bradley (R-Rochester) and Sen. Sheila Kiscaden (IP-Rochester) sponsored the the number and outcomes of independent • disclosure to patients regarding the financial law, effective Aug. 1, 2004. dispute resolutions, the number and outcomes interest of health care providers in these HF2391*/SF2192/CH242 of appeals, and the techniques of surveyors in facilities; and the investigations. It also must identify and ex- • the health commissioner is given the right to plain inconsistencies and patterns across state inspect the books, audits, and records of a regions, including analyses and recommenda- hospital or outpatient surgical center if there Radioactive materials fees tions for identified quality improvement areas, is reason to believe a report is incomplete or A new law, effective May 30, 2004, modifies and provide an action plan to address those false. Current law gives inspection authority the license application fees, annual license fees, areas. “as reasonably necessary.” and other fees relating to proper registration Additionally, the commissioner is required Supporters say benefits of the law include of radioactive materials used in the health care to provide facilities with draft statements of giving policymakers better data on trends industry. deficiencies at the time of the survey exit pro- and facility ownership, allowing the state to While the United States Nuclear Regulatory cess. Furthermore, when citations are posted determine if low-income Minnesotans have Commission keeps tab on nuclear power plants on the agency Web site, the facility’s response access to needed services, and creating equal and large sources of radioactive material, the must also be posted. accountability across the health care system. Minnesota Department of Health has the lead Rep. Char Samuelson (R-New Brighton) The law represents a compromise among on regulating radioactive or nuclear material and Sen. Dallas Sams (DFL-Staples) are the Minnesota’s health care providers. After some used in hospital and health care settings. sponsors. initial concerns with the original proposal, The department is responsible for setting HF2246*/SF2103/CH247 the Minnesota Nurses Association, Minnesota fees, issuing licenses, and performing inspec- Medical Association, and Minnesota Hospitals tions of institutions. Association worked together and support the Another provision of the law authorizes an law. agreement between the state and the Nuclear Provider regulations Rep. Lynda Boudreau (R-Faribault) and Regulatory Commission that allows the governor to delegate responsibilities to the Health Depart- A new law aims to improve how diagnostic Sen. Linda Higgins (DFL-Mpls) sponsored the ment to handle these oversight responsibilities. imaging facilities and outpatient surgery cen- legislation. A separate provision clarifies that the effective ters are regulated. HF2127/SF2080*/CH198 date for a new law exempting hospitals in Itasca Among the highlights of the law, effective and Hennepin counties from the state hospital Aug. 1, 2004, are: construction moratorium is July 1, 2004. • additional licensure requirements for di- Dispensing drugs Rep. Fran Bradley (R-Rochester) and Sen. agnostic imaging facilities and outpatient A new law modifies the authority to dispense Sheila Kiscaden (IP-Rochester) sponsored the surgery centers; controlled substances and requires certain legislation. • facilities are required to comply with adverse health-related licensing boards to work with HF2970/SF2869*/CH236 reporting requirements; the University of Minnesota to develop a

31 Highlights ��� ���� � � � �

Licensure provisions provider access by telephone, fax, voicemail, board within 60 days of obtaining information A new law makes changes to licensure pro- or electronically, 24-hours-a-day, seven-days- about misconduct by a first responder that they visions for speech pathologists, audiologists, a-week, if prior authorization is required. reasonably believe constitutes grounds for dis- occupational therapy professionals, dentists The law also requires health plan compa- ciplinary action. No time line was established and other public health occupations. nies, before requiring a provider to sign an in prior law. The law is effective Aug. 1, 2004, unless initial contract, to make available a copy of the Rep. Duke Powell (R-Burnsville) and Sen. otherwise noted. proposed contract, and make available to the Gary Kubly (DFL-Granite Falls) sponsored the Several additional regulations, in the law, provider a method or process that allows the law. include: allowing for use of speech language provider to determine total expected payment The law is effective Aug. 1, 2004, except for pathologist assistants, allowing physician’s amounts for each health care service. Changes the deletion of an age reference for an ambu- assistants to provide radiography; adding in contract terms must be disclosed to the pro- lance service personnel longevity award, which oriental massage to acupuncturists’ scope of vider at least 90 days before their effective date, is retroactive to Jan. 1, 2003. practice; and requiring that graduates from with the exception of amendments required by HF1702/SF1748*/CH144 nursing education programs in Canada show law or governmental regulatory authority. This proof of licensure in that country or the United is effective for provider contracts issued, re- States, while graduates from other countries newed, or amended on or after July 1, 2006. must submit verification of graduation from Another provision completes the process HOUSING a nursing program and be approved by the of getting rid of so-called network shadow ★ Board of Behavioral Health and Therapy. contracts, effective for provider contracts Proof of a paid mortgage The new law also directs the health com- issued, renewed, or amended on or after A new law will ensure that homeowners who missioner to encourage health-care providers July 1, 2006. It prohibits a health plan company are paying off mortgages receive certificates of to use thimerosal-free vaccines when available. from requiring a provider to participate in a satisfaction — despite any multiple refinancing Two health agencies and vaccine manufactur- new or different plan, product, or arrangement efforts. ers have recommended against using thimero- within a category of coverage that results in a The law addresses a problem stemming from sal as a precautionary measure. Thimerosal is a different reimbursement rate, without provider today’s climate in which finance companies mercury-containing preservative used in some consent. frequently change names and homeowners vaccines. Doses used in vaccines may cause Rep. Steve Smith (R-Mound) and Sen. Dallas refinance mortgages multiple times in search minor reactions like redness or swelling at the Sams (DFL-Staples) sponsored the law. of lower interest rates. As frequently happens, injection site. HF606*/SF394/CH246 transferring documents are not filed with the A specified plan for the implementation and county records office. This makes it difficult to development of a statewide public health data clear the mortgage. management system is to be prepared by the Regulatory board provisions Effective Aug. 1, 2004, the law will require health commissioner in consultation with local A new law modifies provisions related to that the satisfaction certificate list the name public health representatives. The plan, which the Emergency Medical Services Regulatory of the broker, the mortgage provider and must provide a cost-effective, reliable way to Board. the property owner, as well as the date of the collect, utilize and disseminate public health, The law is technical in nature, and its de- mortgage, the date of the recording of the and the costs to do such, must be presented to velopment included input from the board, the document, and the volume and page number the Legislature by Jan. 15, 2005. Department of Health and all providers. It has or document number of the mortgage in the Another provision, effective May 30, 2004, zero fiscal effect. real property records where the mortgage is includes language pertaining to Minnesota Among the responsibilities of the 19-mem- recorded. National Guard members or other military ber board are: licensing ambulance services, Sponsors of the new law are Rep. Thomas reservists. It clarifies that renewal of a profes- certifying emergency personnel, approving Pugh (DFL-South St. Paul) and Sen. Thomas sional credential by a professional ordered to medical services training programs, and fund- Neuville (R-Northfield). active military duty is governed by current state ing the Comprehensive Advanced Life Support HF1805/SF1621*/CH153 statute. Program training for rural emergency room Rep. Jim Abeler (R-Anoka) and Sen. Sheila teams. Kiscaden (IP-Rochester) sponsored the law. Included in the law is a change in the HF2175*/SF2351/CH279 makeup of the board. It still must include a HUMANITIES state resident; however, that person no longer ★ has to be at least 65 years of age. Supporters State observance indicated that they were having a hard time A new law declares October 16 as Dr. Nor- Provider contracting finding enough applicants who meet the man E. Borlaug World Food Prize Day in honor A new law sets requirements for contracting requirement. of his contributions to humanity through work between health plan companies and health care Other portions of the law include modifica- in agriculture. providers, modifies prior authorization proce- tions of eligibility to be a training instructor for Borlaug, one of only four living Nobel Peace dures, and expands the provision regulating first responder refresher training programs and Prize winners in the United States, is credited shadow contracting. the salary limits for qualified ambulance ser- with saving millions of lives by averting fam- Effective July 1, 2004, health plan companies vice personnel. The new law also clarifies that ine and alleviating hunger and malnutrition and others must provide a system for prompt an ambulance service licensee is to report to the through his invention of a high yielding, disease

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health and safety reasons, or to protect other museum property, if there is no written loan agreement to the contrary. The law requires museums to keep accurate records of all property on loan, including the name and address of the owner, and the begin- ning and ending dates of the loan period. Property loaned to a museum with an expi- ration date will be deemed abandoned under the law, when there has been no written contact between the owner and the museum for seven years after the expiration date. If no expiration date was established, the law will deem the property abandoned when there has not been written contact between the museum and the owner for seven years after the museum took possession of the property. The law requires a museum to provide no- tice to the owner if it wishes to acquire title to abandoned property, including further notice of abandoned property by publication and on the organization’s Web site. If the museum receives a timely written PHOTO BY ANDREW VONBANK claim for the property from the owner, it must A new law declares Oct. 16 as Dr. Norman E. Borlaug World Food Prize Day in honor of his contributions return it. If the notice produces no timely writ- to humanity through work in agriculture. A University of Minnesota graduate, Borlaug continues, at ten claim to the property, the museum becomes age 90, to fight hunger by helping farmers in several countries increase their production. the owner. resistant variety of wheat available in more than of property made to museums and historical HF1645*/SF1559/CH213 20 nations. He won the prize in 1970. societies. A University of Minnesota graduate, Borlaug It will also allow the organizations to apply continues to fight hunger at age 90 by helping conservation measures to loaned property for farmers in several countries increase their HUMAN SERVICES production. ★ Sponsored by Rep. Alice Hausman (DFL-St. Licensing, other provisions Paul) and Sen. Ellen Anderson (DFL-St. Paul), A new law makes a variety of technical and the new law says that public schools may offer substantive changes to Department of Human instruction and programs in observance of his Services licensing and policy provisions, and contributions. It takes effect Aug. 1, 2004. provides for modifications in the areas of cor- The celebratory date was chosen because it rections, child care, long-term care, and health coincides with the United Nations World Food care costs. Day, said Hausman. The law includes more than two-dozen HF2878*/SF2537/CH148 other bills that were introduced in the House. Among the topics addressed are: adult foster care licensure, disease management, nursing Acquiring abandoned property facility rate adjustment, electronic recordkeep- ing, fetal alcohol syndrome, at-home infant The Minnesota Museum Property Act will be care, military child care, foster adoptive care, added to state statutes, effective Aug. 1, 2004. cleft palate language, ovarian cancer screening, Sponsored by Rep. Dean Urdahl (R-Grove creation of a birth defects information system, City) and - (DFL-Mpls), the law establishes pool depths, and a lead paint study. procedures for museums to acquire ownership Rep. Jim Abeler (R-Anoka) and Sen. Sheila of loaned items that have been abandoned, Kiscaden (IP-Rochester) sponsored the law. whether the owner is known or unknown. The following are some of the specific pro- Museums accumulate unclaimed and visions in the new law, effective Aug. 1, 2004, undocumented objects when people do not PHOTO BY TOM OLMSCHEID unless otherwise noted. claim them after loaning them for exhibits, Procedures are established, under a new law, for HF2277*/SF2179/CH288 identification, or evaluation. museums to acquire ownership of loaned items that have been abandoned, whether the owner The law will regulate the acquisition of title is known or unknown. to undocumented property, as well as loans

33 Highlights ��� ���� � � � �

Human services the family is approved to receive assistance company using audit procedures comparable • The law provides new licensing standards for and reaches the top of the waiting list, but is to or more stringent than the commissioner’s residential-based family adult day services, temporarily ineligible. (Art. 4, Sec. 61) audit procedures, the commissioner can ac- which were previously licensed under adult cept, in whole or in part, the results, instead foster care licensing standards. Among the Long-term care of performing the audit themselves. A health standards addressed are policy and pro- • Coverage of skilled nursing facility and hos- plan company is defined as a nonprofit health gram information requirements, admission pice services for dual eligibles is clarified. The service plan corporation, health maintenance screening and evaluation, service delivery law specifies that Medical Assistance covers organization, a community integrated ser- plans, staffing, training, and residential skilled nursing facility services for persons vice network, or a managed care organiza- requirements. Counties will continue to eligible for both Medical Assistance and tion. (Art. 6, Sec. 8) oversee these services, but will now do so Medicare who have waived the Medicare • A purchasing alliance is permitted to redefine according to more applicable standards. skilled nursing facility room and board eligible employees to include seasonal em- (Art. 1, Sec. 27) benefit and enrolled in the Medicare hospice ployees, thereby allowing them to get health program. (Art. 5, Sec. 3) insurance in the months they do not work. Child care, • For rate years beginning on or after (Art. 6, Sec. 9) Minnesota Family Investment Program July 1, 2004, nursing facilities located in areas • High schools are permitted to use certain • The law allows families in which a parent designated to be metropolitan areas by the non-conforming pools for one-meter board provides care for the family’s infant under federal Office of Management and Budget diving, provided the pool was built prior to age 1 to receive a subsidy in lieu of assistance will be considered metro in order to deter- 1987 and was used by a high school diving if the family is eligible for or is receiving as- mine rate increases and to establish facility program in the 2000-01 season. Parents are sistance under the Basic Sliding Fee program. reimbursement rates for the nursing facility required to be informed of the variance and A family is limited to a lifetime total of 12 reimbursement system that was updated by risks it presents. The prohibition of the use of months under the program, and a maximum the 2002 Legislature. This section is effec- such a pool if another pool that meets state rate of assistance is provided. This is effective tive July 1, 2004, and applies only if the new requirements is located within the school July 1, 2004. (Art. 4, Sec. 12) designation results in a higher level of facility district is deleted. (Art. 6, Sec. 10) • Before a county can authorize payment for reimbursement. (Art. 5, Sec. 8) • On July 1 each fiscal year, beginning in 2004, care provided, the county must authorize • The human services commissioner is required a portion of general fund dollars allocated a provider. Under the new law, a provider to issue requests for proposals for collabora- to the health commissioner for fetal alco- must be reauthorized every two years and tive service models between counties and hol spectrum disorder administration and a provider must also be reauthorized when managed care organizations to integrate grants must be transferred to a statewide another person over age 13 joins the house- elderly waiver services and additional nursing organization that focuses on prevention hold, a current household member turns 13, services into the prepaid medical assistance of, and intervention with, the disorder. The or there is reason to believe that a household program. Statewide coverage under the amounts are $340,000 in 2004, $990,049 in member has a factor that prevents authoriza- program of elderly waiver services is prohib- 2005, and $1.19 million annually thereaf- tion. (Art. 4, Sec. 16) ited before July 1, 2006. The commissioner ter. The organization may retain $60,000 • A county must request information about a is required to phase-in implementation. for administrative costs. The organization provider from the Bureau of Criminal Ap- (Art. 5, Sec. 9) must report to the commissioner by Jan. 15 prehension, the juvenile courts, and social of each year on the services and programs service agencies to determine if a provider Health care funded by the appropriation. This is effective may be authorized. There are 13 conditions • The health commissioner is to establish and July 1, 2004. (Art. 6, Sec. 27) in law that prevent someone from being a maintain an information system containing provider. Conditions are established so a pro- data on the cause, treatment, prevention, and Health care cost containment vider authorized in one county can provide cure of birth defects. The new law provides for • In an effort to reduce health care costs and care for a family in another county without reporting requirements and for transfers of improve quality, state agencies are required the second county performing a background information to other government agencies or to encourage the adoption of best practices check. (Art. 4, Sec. 17) research entities in certain instances. A cross- guidelines and participate in best practices • The diversionary work program is added to reference is provided in the Data Practices measurement activities by health care the list of programs from which a person Act to ensure that information collected for providers and health plan companies. The who has been found guilty of wrong- the system is private and may only be used health commissioner is to facilitate access fully obtaining assistance is disqualified. for the system. These sections are effective to best practices guidelines and quality of (Art. 4, Sec. 26) upon receipt of a federal grant to establish care measurement information to provid- • Counties are required to reserve a family’s the system. (Art. 6, Secs. 1, 11-15) ers, purchasers, and consumers. A report is position under the child care assistance fund • Health plan companies are required to provide due to the Legislature Jan. 15, 2005, on the if a family has been receiving child care assis- for ovarian cancer screening for women status of best practices and quality of care tance but has temporarily become ineligible who are defined as at-risk, such as those initiatives and any recommendations for due to increased income from active military with a history of the disease in their family. statutory changes. (Art. 7, Sec. 2) service. A military family’s position is also (Art. 6, Secs. 2-3) • A health care provider, upon request, shall pro- reserved on the Basic Sliding Fee waiting • If a nationally recognized independent organi- vide a consumer with a good faith estimate list under the child care assistance fund if zation has conducted an audit of a health plan of the reimbursement the provider expects

34 ��� Highlights ���� � � � �

to receive from the health plan company in of personal finances, meeting with visitors, but the change would help facilitate the busi- which the consumer is enrolled. An estimate participating in groups, corresponding with ness of the council, he said. must also be provided, upon request, if the others, and making telephone calls. (Art. 3, The conditions required for the electronic consumer is not enrolled in a health plan. The Sec. 18) means to be used include: quote does not constitute a legally binding • State law is amended to permit a tribal child • members of the council participating in the estimate of service costs. (Art. 7, Sec. 3) welfare case manager who is certified by meeting and regular meeting location can • Disease management initiatives are to be a federally recognized tribal government hear one another and can hear all discussion implemented to improve patient care and in Minnesota and who meets applicable and testimony; health outcomes and reduce health care costs standards to provide child welfare targeted • at least one member of the council is physically by managing care for people with chronic case management services. Case managers present at the regular meeting location; conditions. A report is due the Legislature are individuals employed and authorized • all votes are conducted by roll call, so each by Jan. 15, 2005. (Art. 7, Sec. 6) by the certified child welfare targeted case member’s vote on each issue can be identified • An Electronic Health Record Planning and management provider to provide case man- and recorded; and Implementation work group is to be con- agement services. Previously, a case manager • the council must give notice of the regular vened to provide a report to the Legislature by was required to have a bachelor’s degree plus meeting and if members may be participating Dec. 31, 2004, including recommendations one year of experience as a supervised social by electronic means. on the role of the state in the development, worker. (Art. 3, Sec. 27) The law is effective July 1, 2004. financing, promotion, and implementa- • A social services agency must consider place- HF2691*/SF2639/CH195 tion of an electronic health records system. ment without delay — instead of as soon as (Art. 7, Sec. 7) possible — after identifying a child’s need for placement in foster care. Social service agen- Miscellaneous cies are required to make a comprehensive Nursing home enhancement • Health plan coverage for cleft lip and cleft pal- search to find both paternal and maternal Facility closures, medical assistance prop- ate treatment is extended up to the limiting relatives before placing a child for adoption. erty-related rate adjustment requests, and the age of coverage. Under current law, coverage Furthermore, a decision by a relative not to creation of a new nursing facility reimburse- of expenses is limited to dependants up to be a placement resource at the start of a child ment system are three components of a new age 18, but the law allows coverage up to age protection case shall not affect the relative’s law. 19 and to age 25 for certain students. This is later consideration for placement of the child. Effective May 14, 2004, the human services effective Jan. 1, 2005. (Art. 3, Secs. 3-4) (Art. 3, Sec. 30) commissioner is allowed to negotiate planned • State law is expanded to include possession of • The health commissioner is to develop and closures for nursing facilities beginning contraband items (such as firearms, weap- evaluate the best strategies to reduce the July 1, 2004, provided there is no cost to the state. ons, explosives, or controlled substances) number of children endangered by lead paint. Between Aug. 1, 2001, and June 30, 2003, in secure treatment facilities as a violation. The study is to address how to promote and the Department of Human Services was au- Previous law limited the violation to intro- encourage primary prevention, how to ensure thorized to approve planned closures of up duction of contraband. (Art. 3, Sec. 6) that all at-risk children are treated, whether to 5,140 nursing facility beds and approve • Case management services may continue to lower the state mandatory intervention planned closure rate adjustments to beds re- to be provided for someone with a serious level, how to provide incentives and funding maining in operation. emotional disturbance who is over the age to property owners for lead hazard preven- Additionally, the state is permitted to go of 18, effective July 1, 2004. By law, a county tion and reduction, and ways to provide forward with the development of a new nurs- shall provide case management services for resources for local jurisdictions to conduct ing facility reimbursement system that will children with a severe emotional disturbance outreach. Study results and recommenda- include quality indicators for the system. A upon request or consent of the family. tions are to be submitted to the Legislature by recommendation is to be brought forward by (Art. 3, Sec. 10) Jan. 15, 2005. (Art. 3, Sec. 31) Jan. 15, 2005, with potential implementation • A savings account is to be created for patients of a new system by Oct. 1, 2006. receiving treatment in a secure treatment Furthermore, a request for a medical as- facility. The money, to come from a portion sistance property-related rate adjustment and of the patient’s share of care costs, will be Meeting electronically the documentation of construction costs must available to help the patient with obtaining A new law permits the Minnesota State currently be submitted to the commissioner housing and other personal needs when they Council on Disability to meet by telephone within 60 days after the construction comple- are transitioned back into the community. or other electronic means under specific tion date to be considered eligible. The new (Art. 3, Sec. 11) conditions. law says the commissioner “shall provide a • Effective May 30, 2004, certain statutory Rep. Fran Bradley (R-Rochester), who rate notice reflecting the allowable costs within rights for patients in the Minnesota Sex Of- sponsored the law with Sen. Linda Higgins 60 days after receiving all the necessary infor- fender Program may be limited to maintain a (DFL-Mpls), said it is in response to a logistics mation to compute the rate adjustment.” therapeutic environment or facility security, issue. He said there have been times where it Rep. Char Samuelson (R-New Brighton) and or to protect the safety of patients, staff, and has been hard for the sufficient number of Sen. Linda Berglin (DFL-Mpls) sponsored the the public. Among the rights are: personal members to attend the meeting in order to law. privacy, private communications, retention achieve a quorum. There are still many rules HF1754/SF1604*/CH194 and use of personal property, management that must be followed to ensure public access

35 Highlights ��� ���� � � � �

Pilot project extended meeting the 10 percent by volume mark on Care provider coverage An amendment to current law extends the those pumps operating with a blending switch. A new law raises the limits for nursing homes sunset date of a five-year pilot project of sup- The new law will provide certain exemptions and long-term care facilities in the Minnesota portive housing and managed care by one year for those retailers. Joint Underwriting Association. to June 30, 2007. Another provision will require the sticker Effective May 19, 2004, the law allows the The program was established by law in 2000 informing customers of the approved non- association to issue malpractice insurance and “is to determine whether the integrated oxygenated fuel uses to be placed on the pump policies to long-term care providers who are delivery of employment services, support- at least two feet above the ground. members of an activated class with limits up to ive services, housing, and health care into a Under current law, gasoline stations in $2 million per claimant under one policy and single, flexible program will: reduce public Anoka, Carver, Chisago, Dakota, Hennepin, $4 million for all claimants under one policy in expenditures on homeless families with minor Isanti, Ramsey, Scott, Washington, and Wright a single year. The latter can only occur if the as- children, homeless noncustodial parents, and counties must notify the Department of Com- sociation finds the higher limits are needed for other homeless individuals; increase the em- merce of the intent to sell non-oxygenated fuel the applicant to conduct its business. Previous ployment rates of these persons; and provide between Oct. 1 and Jan. 31 and then report the levels were $1 million and $3 million. Nursing a new alternative to providing services to this number of gallons sold during that period. home providers, who brought the proposal hard-to-serve population.” Under the new law, any retail gas station in the forward, expressed a desire to set the limits Rep. Jim Abeler (R-Anoka), the House spon- state selling non-oxygenated premium gasoline higher based on needs. sor, said that Blue Earth and Ramsey counties will have to submit a report summarizing the “Prudent business practice or mere desire to have “a tremendous project bringing people to annual sales volume every two years. have higher limits is not a sufficient standard the services.” Another provision will raise the petroleum for the association to issue such policies,” under Sen. John Hottinger (DFL-St. Peter) inspection fee from 85 cents to $1 for every the new law. also sponsored the law, which is effective 1,000 gallons. The additional fee will be di- Regulated by the Department of Commerce, Aug. 1, 2004 rected to the department’s petroleum quality the association provides liability insurance HF2052*/SF2196/CH204 inspection program. coverage for persons unable to attain it through Rep. Dan Dorman (R-Albert Lea) and ordinary means where coverage is required by Sen. Becky Lourey (DFL-Kerrick) sponsored law or is necessary for the conduct of business the legislation. and serves a public purpose. All property and INDUSTRY HF2098/SF2453*/CH189 casualty insurance companies in the state are ★ required by state law to be members. Non-oxygenated fuel exemptions Rep. Laura Brod (R-New Prague) and Sen. A new law will make some changes to the Dan Sparks (DFL-Austin) sponsored the law. guidelines for retail gas stations selling both INSURANCE HF2017*/SF1944/CH212 oxygenated and non-oxygenated fuels, raise ★ petroleum inspection fees to further support a Cancellation notice petroleum quality inspection program, modify A new law refines certain notice requirements Reserve calculations non-oxygenated fuel sales reporting require- for fire insurance and amends provisions regu- A new law changes the way real estate title ments to get a better sense of how much is sold lating township mutual combination policies. insurance companies calculate their required on an annual statewide basis, and alter Depart- For an insurance policy, the law clarifies reserves. ment of Commerce Weights and Measurement language in regard to notices if the policy is Effective Aug. 1, 2004, reserves will again Division requirements for liquefied petroleum declined within the first 60 days. Addition- be based on premiums and fees paid to the gas measurements. ally, the law clarifies some statutory language company. The 2001 Legislature changed the The former three provisions are effec- in reference to town fire mutual insurances. method of calculating title insurance from the tive Aug. 1, 2004, and the latter took effect Consumer or insurance company rights are traditional method of basing it on premiums May 14, 2004. not changed, under the law. paid to basing it on the risk to which the com- The statutory definition of oxygenated In the event of a midterm cancellation, pany was exposed. gasoline is gasoline that has been blended with “notice must be mailed to the insured at least Rep. Thomas Pugh (DFL-South St. Paul), agriculturally derived denatured ethanol or 30 days before the effective cancellation date.” who sponsored the law with Sen. Geoff Mi- with another oxygenate approved by the U.S. Current law indicates the insured must receive chel (R-Edina), said the problem with basing Environmental Protection Agency. a 30-day notice. reserves on risks covered is that the risk is not State law now requires that all gasoline sold “In the event of a nonrenewal, notice must known until later, so the reserves may need in Minnesota must contain at least 10 percent be mailed to the insured at least 60 days before adjustment. Basing reserves on premiums is denatured ethanol by volume, with the excep- the effective date of renewal,” according to the easier to compute and simpler to monitor. tion of gas sold for use in collector vehicles law. Under current law, a 60-day notice must The formula was developed with the review or vehicles eligible to be licensed as collector be sent to the insured. of the Department of Commerce. vehicles, off-road vehicles, motorcycles, boats, Rep. Laura Brod (R-New Prague) and Sen. Title insurance provides protection for peo- snowmobiles, or small engines. Dallas Sams (DFL-Staples) sponsored the new ple buying property from unforeseen claims on But some station owners who sell both types law, which takes effect Aug. 1, 2004. that property. A title company reviews the title of gasoline said they were struggling a bit HF2777/SF2620*/CH202

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history or a property and issues a commitment LAW with a prior right to the designated property. listing encumbrances and exceptions. ★ This section is effective Jan. 1, 2005. In exchange for a premium, usually a one- Rep. Paul Kohls (R-Victoria) and Sen. time payment, the company assumes the risk Conflicts of laws among states Linda Scheid (DFL-Brooklyn Park) are the that the title is exactly as stated in the policy. If, A new law designates rules to be considered sponsors. at a later time, someone comes forward with a in Minnesota court cases in which more than HF2419*/SF2393/CH234 prior claim on the property, the title company one state’s statute of limitations would apply covers the purchaser’s losses. The reserve as- and if the case involves applying the law from one or more other states. sures that funds are available for this. Roadwork contract restrictions HF2139*/SF2257/CH227 Under the law, if a claim in Minnesota is based on the law and limitation period of A new law eases statutory restrictions placed another state or more than one state, the on county and town officers who oversee road- work contracts. Insuring home child-care property Minnesota conflicts of law rules would decide Current law prohibits final payments on A new law attempts to protect certain home which state’s limitation period to follow. contract work for counties and town roads day care providers from discriminatory insur- Also, if another state’s limitation period until the engineer or person in charge of the ance underwriting practices. is substantially different from Minnesota’s work has certified to the county or town board Effective Jan. 1, 2005, and applicable to cov- making it hard for either a plaintiff to sue, or a that the work has actually been completed. erage applied for, issued, or renewed on or after defendant to defend, the Minnesota limitation Town clerks and county auditors who make that date, the new law prohibits insurers from period would apply. final payments before the performance certifi- refusing to renew or declining to offer or write The law applies to claims after the cate is filed could be subject to a misdemeanor homeowner’s insurance policies solely because Aug. 1, 2004 effective date, or brought up in penalty. the property also houses day care services for a civil matter more than one year after the Effective Aug. 1, 2004, the new law limits five or fewer children. effective date. the application of that provision to contracts Rep. Michael Nelson (DFL-Brooklyn Park) Rep. Paul Kohls (R-Victoria) and Sen. Ann for road construction or improvement and and Sen. Ann Rest (DFL-New Hope) sponsored Rest (DFL-New Hope) sponsored the law. exempts those contracts under $35,000 in the law. HF2444*/SF1976/CH211 counties or towns under 2,500 in population HF2801/SF1922*/CH239 and under $50,000 in larger municipalities. The new law also repeals the misdemeanor Purchase money mortgages penalty. Proponents said the repeal was nec- Solvency calculation A new law clarifies what the lending and title essary because town clerks were being held A new law will change how the solvency of industries had already assumed was law. responsible for the actions of town boards. health plans is calculated. It says if any part of a loan is used to acquire Rep. Laura Brod (R-New Prague) and Requested by the Department of Com- real property, the entire loan will be deemed Sen. Chuck Wiger (DFL-North St. Paul) spon- merce, and based on model legislation from a purchase money mortgage; therefore, if the sored the legislation. the National Association of Insurance Com- loan includes funds for additional improve- HF1691*/SF1798/CH209 missioners, the law puts in place a way to ments to the real property or closing costs, the regulate the solvency of health plans through a total loan will be considered a purchase money method called risk-based capital. It is the same mortgage. Under the law, the lien position of the lender way property and casualty companies and life Conciliation court collections insurance companies are currently regulated, is protected for the total mortgage, not just the A new law aims to speed up the collection and similar to the way banks are regulated. real property that is being purchased. This sec- process for the winners of small claims court The law also repeals the old method of tion is effective Aug. 1, 2004. cases. regulating the capital and allows the depart- A purchase money mortgage is a mortgage Minnesota’s conciliation court system is de- ment and the National Association of Security that secures a loan made to a homebuyer for signed for relatively smaller cases in which the Dealers to share data when working on joint the purpose of buying a home. This is in con- participants do not need to hire an attorney. fraud investigations. trast to a refinancing loan, a home equity loan The maximum recoverable amount is $7,500. Rep. Tim Wilkin (R-Eagan) and Sen. Dan or other mortgage loans where the borrower Conciliation courts are not responsible to Sparks (DFL-Austin) are the sponsors. does not use the borrowed funds to buy the collect the judgment. Most of the law is effective Aug. 1, 2004, property being mortgaged. Currently, a judgment winner in conciliation although some securities regulation technical The law also includes a technical measure court must wait 30 days to obtain the appropri- changes are effective May 30, 2004. that allows a sheriff, in the event of a foreclo- ate form on which the debtor — the person HF2258*/SF2587/CH285 sure, to verify a creditor’s right to redeem in on the losing side of the case — lists assets, the order of priority of various creditors. There liabilities, and earnings. The debtor has 10 days was concern by the Minnesota Sheriffs’ Asso- to return the form or they will be considered ciation about who has priority rights when, or in contempt of court. if a redemption occurs. The language is there to Under the new law, effective Aug. 1, 2004, make sure the sheriff knows who has the right the winner may obtain the form immediately to redeem, and would prevent someone with- upon the judgment declaration and begin the out that right from coming in before someone

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collection process. The new law does not It also ensures that a company posting the Tort protection alter the 20-day “stay period” during which bond does not liquidate assets to avoid pay- Community action groups that offer af- a participant in the trial may appeal or move ment of a judgment following an appeal. fordable housing will be provided tort liability to vacate the judgment by providing valid Supporters say companies could be forced immunity as a cost saving measure, under a evidence for missing the first trial. out of business if faced with high damage new law. Rep. Len Biernat (DFL-Mpls) and Sen. amounts that are sometimes awarded in class Community action agencies are insured Wes Skoglund (DFL-Mpls) sponsored the action cases. The law will help companies that under the Minnesota Counties Insurance legislation. lose the first round of a court fight save mil- Trust. The law will help reduce the agencies’ HF2288*/SF2500/CH226 lions, even billions, of dollars. insurance costs by allowing municipal liability The law, effective May 14, 2004, and applies protection be extended to them. to all cases pending on, or filed after, that Effective May 14, 2004, the law amends the Tending trust funds date, except for any case where a judgment is definition of “municipality” in the existing Minnesota communities often respond to under appeal or is the subject of a petition for statute providing immunity from tort liability tragic events by setting up memorial trust discretionary review as of that date. by adding the language: “a limited partnership funds. A new law aims to create better legal Rep. Mary Liz Holberg (R-Lakeville), who in which a community action agency is the sole structure governing those funds and also re- sponsored the law with Sen. Don Betzold general partner.” vises state law relating to trustee appointments (DFL-Fridley), said 29 other states have Inclusion in the law will not affect the com- and other technical provisions concerning limits. munity action agency’s ability to receive federal guardians and conservators. HF1425*/SF1414/CH190 funding for affordable housing. Effective Aug. 1, 2004, memorial funds will Rep. Kathy Tingelstad (R-Andover) and be subject to the Minnesota Uniform Custodial Sen. Satveer Chaudhary (DFL-Fridley) spon- Act, which assures the money is used for the LOCAL GOVERNMENT sored the new law. benefit of the intended individuals. Previously, ★ HF2987/SF2065*/CH193 state law did not address the manner in which memorial funds were set up or administered. Seeking water source Also effective Aug. 1, 2004, with qualifica- A new law will give the cities of Crystal, Electronic payments, receipts tions, a trustee is allowed to enter into a bind- Golden Valley, and New Hope the go-ahead A new law permits township governments ing settlement without court supervision over to explore making a long-term investment in to pay bills and accept payments via electronic several matters including: a reliable water source. funds transfer. • approval of the trustee’s accounting, The three municipalities have been operat- Effective April 7, 2004, the new law provides • resignation of a trustee, ing under a joint water commission since the townships the same authority cities and coun- • determination of a trustee’s compensation, 1960s that currently purchases treated water ties were granted by the 2001 Legislature to • transfer of the trust’s location, and from the city of Minneapolis. process business transactions electronically. • termination of a noncharitable trust with a The commission is seeking other options Township governments can make payments fair market value under $50,000 if the cost after experiencing rate increases of 179 percent by electronic or wire funds transfer, and accept of administering the trust would defeat or since 1997, according to city managers. payments by credit or debit card, and other substantially impair the trust purpose. Effective May 20, 2004, the new law will give the forms of electronic or wire funds transfer. Currently, a trustee or person may petition commission authority to proceed with a plan that The law is expected to help town govern- the district court over various matters of a could include drilling an independent ground- ments reduce service costs. trust. The new law adds provisions specifying water supply from the Prairie du Chien/Jordan Sponsors of the new law are Rep. Loren reasons a trustee may be removed by the court aquifer and building a treatment system. Solberg (DFL-Grand Rapids) and Sen. David from the process, such as breach of trust, lack of Legislative approval is necessary before any Tomassoni (DFL-Chisholm). cooperation among co-trustees, and a request permit requests to draw more than 2 million HF2033/SF1958*/CH152 agreed upon by all beneficiaries. gallons per day average in a 30-day period Additionally, the new law makes some tech- are processed by the Department of Natural nical updates to an overhaul of statutes govern- Resources. ing guardianship of children and incapacitated Proponents noted that the three could drill Banking day definition adults passed by the 2003 Legislature. individually without coming to the Legislature, A new law clarifies the definition of a bank- Rep. Chris DeLaForest (R-Andover) and Sen. even though the combined daily use would hit ing day in relation to government money. David Knutson (R-Burnsville) sponsored the that threshold. Current law says that an entity, such as a legislation. Opponents questioned the regional con- city, county or school district, must designate HF1803/SF1745*/CH146 sequences to the aquifer and whether the ad- a financial institution to be the depository of ditional draw would be sustainable. its public funds, and it must require security Ultimately, the decision to grant the permit for deposited funds greater than the amount Bond maximums rests with the department. insured by the Federal Deposit Insurance A new law caps the amount of a judgment Rep. Lynne Osterman (R-New Hope) and Corporation. at not more than $150 million of the amount Sen. Steve Kelley (DFL-Hopkins) sponsored However, it was unclear if that security of appeal bonds that defendants in civil cases the legislation. requirement meant at all times or just the end pay while appealing damage awards. HF1897*/SF1740/CH230 of the banking day. The law clarifies statute so

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that a banking day coincides with the defini- town from $500,000 to $670,500. Threshold only such city with an authority. tion set forth by the Federal Reserve Board, amounts tied to the audit requirement will be The Minneapolis authority no longer con- meaning that at the end of the day the bank annually adjusted for inflation after 2004. ducts evidentiary hearings due to budget cuts must have the collateralized portion covered, Since towns were added in 1992 to the and the city’s desire to more quickly resolve not throughout the day, which supporters say financial reporting law, the threshold amount citizen complaints. would be difficult, if not impossible, to track. has been $500,000. The new law changes statute language to Among those expressing support were the Rep. William Kuisle (R-Rochester), who provide that an officer’s legal costs be paid if Minnesota School Boards Association, League sponsored the law with Sen. David Senjem there is “a finding that the complaint is sus- of Minnesota Cities, Association of Minnesota (R-Rochester), said the law would help small tained by the authority,” but subsequently not Counties, and the major banking organizations local governments cut paperwork and poten- upheld by a higher legal authority. in the state. tially save money. An annual audit, which is Attorney costs and fees are paid to the Min- The law, sponsored by Rep. Dan Dorman (R- often contracted for, costs the affected local neapolis Police Federation, the union that rep- Albert Lea) and Senate President James Metzen government an estimated $2,000, Kuisle said. resents officers in disciplinary and misconduct (DFL-South St. Paul), is effective retroactive to HF1843/SF2903*/CH161 allegations. The union requested the technical the beginning of a government entity’s 2003 change in state law to comply with a city ordi- fiscal year. nance change. An internal opinion was given to the state Developer fees Sponsors of the new law are Rep. Len Biernat auditor from the attorney general’s office in A new law will require a connection between (DFL-Mpls) and Sen. Lawrence Pogemiller September 2003. The auditor’s office then said fees a municipality charges a developer and the (DFL-Mpls). this problem needed to be fixed or audit excep- local government’s development-related public HF2275/SF2231*/CH200 tions would be given for fiscal year 2003. costs. HF2118/SF2063*/CH151 Sponsored by Rep. Carla Nelson (R-Rochester) and Sen. Betsy Wergin (R-Princeton), the law Payroll processing takes effect Aug. 1, 2004. Cities in Minnesota are authorized to use an Conflict of interest It will amend state law that allows a mu- electronic time recording system for payrolls, A new law provides conflict of interest excep- nicipality to charge development fees and under a new law. tions for officers of watershed districts and soil require that land in a proposed commercial or Effective April 27, 2004, the new law amends and water conservation districts. housing development be dedicated for public a statute that governs the process by which Effective March 20, 2004, a state statute that infrastructure, conservation, or recreation statutory cities pay wages for city employees, clarifies conflict of interest issues is amended purposes. as well as claims for goods and services. to include the two political subdivisions. Language will be added to existing law that, The law allows a city to use electronic time The law now provides that a governing body “there must be an essential nexus between the recording systems “if the governing body of of any port authority, seaway port authority, fees or dedication...and the municipal purpose the city adopts policies to ensure that the time- economic development authority, watershed sought to be achieved by the fee or dedication.” keeping and payroll methods used are accurate district, soil and water conservation district, Such fees, under the law, could not be used and reliable.” town, school district, hospital district, county by a municipality for “ongoing operation or Rep. Mark Buesgens (R-Jordan), who spon- or city “may contract for goods and services maintenance.” sored the law with Sen. Sharon Marko (DFL- with an interested officer of the governmental In the event of a fee dispute, the law will al- Cottage Grove), said the measure will allow unit.” The vote must be unanimous. low a developer’s application with a municipal- cities better “efficiency in payroll processing.” Rep. Michael Beard (R-Shakopee) and Sen. ity to proceed pending a decision on an appeal. HF2906*/SF2871/CH165 Claire Robling (R-Jordan) sponsored the new The developer must pay the fee, which the law. municipality must put in an escrow account. Beard said the change was needed so a wa- HF2103*/SF2273/CH178 Publishing public notices tershed district manager in his district could A new law updates and revises the laws be reappointed to the watershed board. The governing publication of political subdivisions’ manager had resigned due to a personal con- public notices. flict of interest. The manager’s spouse was a Attorney fees Sponsored by Rep. Peter Adolphson partner in a law firm that had a contract with Minneapolis police officers will continue to (R-Minnetonka) and Sen. Jim Vickerman the watershed district. have attorney fees paid if a misconduct com- (DFL-Tracy), the new law will take effect HF1980/SF1799*/CH139 plaint filed against an officer is not upheld, Aug. 1, 2004. under a new law effective Aug. 1, 2004. It updates and revises 17 sections in state The law changes an existing statute that pro- statute that govern the publication of political Annual town audits vides a police officer’s attorney fees be paid by subdivisions’ public notices. Political subdivi- A new law will affect annual financial audit the city if a citizen’s complaint is not upheld at sions include counties, municipalities and requirements for 2004 for towns with popula- an evidentiary hearing before a Civilian Review school districts, as well as local and district tions of more than 2,500. Authority. commissions, boards, or authorities. Effective Aug. 1, 2004, the law increases Under state law, a home rule charter or State law requires a political subdivision to the minimum annual gross revenue amount statutory city, town, or county can establish a contract with a designated qualified newspa- that triggers a state required audit for a small Civilian Review Authority. Minneapolis is the per for publication of public notices, meeting

39 Highlights ��� ���� � � � �

minutes, and other legal documents. to more than two successive terms on a charter ing the airport closure within 90 days of the The law will require a qualified newspaper commission. closure notice. Before the public hearing, the that maintains a Web site to post official State law allows voters in cities governed by commissioner would be required to evaluate notices on the site at no additional cost. The charters to petition a district court to appoint the impact of the airport closure on the state Web posting must be maintained for the a charter commission to amend a city’s charter airport system and make the evaluation avail- notice’s full publication period. A failure to or draft a new one. A charter is a governing able to the municipality and the public prior post a government’s official notice on a Web foundation document for a city, similar to a to the hearing. site would not affect the validity of the public state constitution. Rep. Michael Beard (R-Shakopee) and Sen. notice. A city council can also request a district Michael Jungbauer (R-East Bethel) are the The new law will allow more public no- court to appoint a charter commission, or the sponsors. tice information to be disseminated elec- court can appoint a commission on its own if HF2737*/SF2178/CH250 tronically or by alternative means in certain it determines it is in a city’s best interest. circumstances. HF1392*/SF1334/CH197 Solicitations for bids, requests for informa- Storm sewer charges tion, and requests for proposals can be posted A new law gives the city of Minneapolis a on a political subdivision’s Web site, under different way to calculate storm sewer charges the new law, or in a recognized industry trade Airport closures for multiple unit apartment buildings. journal, as long as the posting is in the same A new law prohibits local governments from Effective dates of the law vary. A provision format and follows the same length of publica- closing municipal airports unless certain mea- that will include Minneapolis and other cities tion time required in a qualified newspaper. sures are followed. “of the first class” in a state statute covering Financial statements will be added to the The impetus for the law is to ensure that storm and sanitary sewer authorizations takes list of materials that can be summarized in a what happened in Chicago is not repeated in effect Aug. 1, 2004. The remainder of the new published public notice, as long as the full text Minnesota. In March 2003, Mayor Richard law will be effective Jan. 1, 2006. of the summary is available for public inspec- Daley sent bulldozers in under the cover of Sponsors of the new law are Rep. Frank tion by standard or electronic mail. darkness to tear up a runway at Meigs Field Hornstein (DFL-Mpls) and Sen. Chuck Wiger When a summary of proceedings is pub- which was used by private pilots near down- (DFL-North St. Paul). lished, the new law will require a notice that town Chicago. Done without public notice Hornstein said the law will allow Minneapo- a full version of the proceedings is available and over the objections of the state aeronautics lis to correct a problem with the way it charges without cost at the political subdivision’s office division, Daley said the order was meant to large multiple family buildings for sewer and or by standard or electronic mail. protect the city’s residents against possible ter- water services. Basing the charges on water The new law repeals a grandfathered provi- rorism threats at the airport. Skeptics said the consumed, as required by existing law, is not sion that allows newspapers designated as a mayor’s actions were a “land grab” to facilitate equitable for owners of multiple unit build- local government’s official publication prior construction of a nature preserve and park. ings, he said. A representative of the Minnesota to May 20, 1965, to retain that status, even if Effective Aug. 1, 2004, the law lays out several Multi-family Housing Association said that the newspaper no longer meets state-qualified steps that must be taken before a Minnesota apartment building owners were paying more requirements. county, city, town, or joint powers board can than their proportional share for storm sewer Additionally, a bi-monthly newspaper is close one of its airports. Excluded from the service. deemed as qualified to publish government law are six reliever airports operated by the The new law will allow Minneapolis four public notices. Metropolitan Airports Commission. options to calculate storm sewer charges HF2270*/SF2067/CH182 First, the local government unit must notify “adjusted for reasonable calculation of storm the state transportation commissioner of its water runoff.” intent to close the airport. Notice must be A city official said the change would not Filling two seats provided before or immediately upon cessation mean a new fee for property owners. Members of a city council could be prohib- of airport operations. HF1935/SF1626*/CH141 ited from serving on the city’s charter commis- Second, the govern- sion, under a new law effective Aug. 1, 2004. ment unit will not be Sponsored by Rep. Ray Vandeveer allowed to abandon, (R-Forest Lake) and Sen. Michele Bachmann significantly alter, (R-Stillwater), the new law changes state demolish, or convey statute governing charter commissions. It al- the airport property lows a commission-drafted charter or charter for a 180-day period amendments – subject to approval by voter following notice of referendum – to propose that members of closure. Violations a city’s governing body cannot serve on the would bring a fine of charter commission. Only a person holding a $1,000 a day. judicial office is disqualified from serving on a Third, the govern- ment unit would be charter commission, under existing law. PHOTO BY ANDREW VONBANK The new law also removes from statute a required to conduct a A new law prohibits local governments from closing municipal airports unless restriction that a person cannot be appointed public hearing regard- certain measures are followed, including a public hearing.

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Town audits The threshold for some cities and towns to have a financial audit is increased, under a new law. Previous law stated that in cities or towns where the offices of clerk and treasurer are combined, and the city or town has annual revenue for all governmental and enterprise funds exceeding $100,000, an annual financial audit must be performed by the state auditor or a public accountant in accordance with procedures prescribed by the state auditor. Effective Aug. 1, 2004, the amount is in- creased to $150,000 for 2004 and is adjusted for inflation in subsequent years using the annual implicit price deflator for state and local expen- ditures as published by the U.S. Department of Commerce. The law is expected to save money for smaller communities. Rep. Tom Rukavina (DFL-Virginia), who PHOTO BY ANDREW VONBANK sponsored the law with Sen. David Tomassoni The length of a municipal interim ordinance will be restricted to 18 months in most cases, under a (DFL-Chisholm), said the mayor of McKinley, new law. Local governing bodies can adopt an ordinance while considering proposed commercial or an 80-resident city in his district, said they were residential developments. looking to save money by combining their clerk for metropolitan agency or federal approvals, An agency is required to consult with the and treasurer positions. Combining the posi- court orders, or other processes required by Department of Finance to help evaluate the tions would force them under state statute to state or federal law. Under the new law, a one- fiscal implications on local governments. perform an annual audit because their annual year extension is possible if a municipality has Rep. Peter Adolphson (R-Minnetonka) and revenue exceeds $100,000 annually, something not adopted a comprehensive plan at the time Sen. D. Scott Dibble (DFL-Mpls) sponsored they did not have to do with separate positions. it enacted an interim ordinance. the legislation. The audit was estimated to cost $5,000 to A municipality’s ability to regulate noncon- HF2431/SF2343*/CH274 $6,000, which would have negated the combi- forming business use or land occupancy is also nation of the positions. changed by the law. HF1883/SF1697*/CH281 Improvement, restoration, and replacement Reverse auction, court surcharge — but not expansion — of a nonconformity Municipalities may use the Internet to seek will be allowed to continue provided the im- vendor bids and purchase supplies, materials, provement began within a year from the time Interim zoning ordinances and equipment using an electronic purchasing the nonconforming use was discontinued. The length of a municipal interim ordinance process called reverse auction, under a new Rep. Mark Buesgens (R-Jordan) and Sen. Jim — which local governing bodies can adopt law. Vickerman (DFL-Tracy) sponsored the law. while considering proposed commercial or It gives municipalities the option to buy HF2021/SF2274*/CH258 residential developments — will be restricted supplies, materials, and equipment using a to 12 months in most cases, under a new law. procedure in which vendors compete in an Effective Aug. 1, 2004, the law changes state interactive environment to provide the lowest statute that allowed for up to 30 months for an Conducting county business selling price. Proponents said the law would interim ordinance, which could be adopted by A new law is designed to get counties out of help reduce purchasing costs and increase a municipality’s governing body for “protecting the banking business by making it permissive efficiency the planning process and the health, safety and rather than mandatory for county recorders to Conversely, municipalities could also use welfare of its citizens.” Previous law allowed an accept security deposits to guarantee payment the process to sell unused supplies, materi- interim ordinance to regulate, restrict or pro- of charges. als, or obsolete equipment at the highest hibit any use, development or subdivision for Under the new law, which changes the word purchase price. The provision was effective a year, with an 18-month extension option. “shall” to “may” regarding the deposit accep- May 30, 2004. The law also permits an extended interim tance, any accepted deposit must be placed in Also effective on that date, the law allows city ordinance, up to 30 months total, to allow a a security fund with the county treasurer. managers in council-manager cities to make city to amend its master plan for a municipal The new law, effective Aug. 1, 2004, also con- purchases or let contracts unilaterally if the airport expansion if, before Aug. 1, 2004, the tains what was described as just a nugget out of amount is $20,000 or less. Previous law set the Minnesota Department of Transportation a rulemaking reform task force. This provision maximum amount to purchases not exceeding requested the city to review the plan. requires state agencies to delve deeper into the $15,000 The governing body of a municipality may fiscal impacts of proposed rules on local units Additionally, the Second Judicial District extend interim ordinances by up to 120 days of government before adopting the rules. is permitted to add a $1 surcharge to district

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court fines for felonies, and gross and petty the costs of repairs back against the property. approval, which was June 16, 2004. misdemeanors. The resulting revenue will be The new law adds unpaid utilities and exterior HF1941*/SF2122/CH210 used to fund a petty misdemeanor diversion painting to the list of assessable repairs. program. These provisions are effective the day Opponents said exterior painting is not after the Ramsey County Board authorizes the a public health or safety issue on par with surcharge or Aug. 1, 2004, whichever is later. the current allowable assessments. Under Closing public meetings Rep. Morrie Lanning (R-Moorhead) and the law, the painting provision is repealed A new law allows public bodies to negotiate Sen. D. Scott Dibble (DFL-Mpls) sponsored July 1, 2006. property sales and acquisitions in private. the legislation. A separate provision provides authority for The law, effective May 31, 2004, amends the HF1717/SF1790*/CH278 the city of Hoyt Lakes and the town of White state’s Open Meeting Law to allow a public to operate a shared industrial park without the body, in a closed meeting, to determine the challenge of two separate zoning ordinances. asking price and strategy for the sale of real or The park will operate under Hoyt Lakes zoning personal property, to review confidential or Direct deposit nonpublic appraisal data, and to develop or The 2003 Legislature passed a law requiring rules, under the new law. A third provision directs fees from public use consider property offers or counter offers. the direct deposit of state employee paychecks Under previous law, a public body could only with no option to opt-out. of state-owned ski and golf facilities at the Gi- ants Ridge Recreation Area into an Iron Range close a meeting to discuss labor negotiations or A new law authorizes, but does not require, to evaluate the performance of an individual a municipality to do the same for employees Resources and Rehabilitation Board account within the state enterprise fund. Under the subject to its authority. being paid by its payroll system. The law is Rep. Mary Liz Holberg (R-Lakeville), who expected to be a cost-saving measure for new law, those funds are earmarked for costs associated with operations and improvements sponsored the law with Sen. Steve Kelley (DFL- municipalities. Hopkins), said negotiating property purchases A municipality is defined in statute as “a at the recreation area and other finance costs. Sen. D. Scott Dibble (DFL-Mpls) also spon- in public had been a problem for the Lakeville home rule charter or statutory city, county, School District because, when they would town, school district, political subdivision, or sored the legislation. The measure became effective after it received local approval on identify property to purchase the price would agency of local government.” increase. The initial Senate bill had a provision June 26, 2004. HF2378*/SF2285/CH275 Before holding a closed meeting for this whereby an employee could request a payroll purpose, the public body must identify on the check, and the municipality would be re- record the particular real or personal property quired to process the compensation by check Personnel board of appeals it will consider in the closed meeting. within 30 days of receiving the request. It also An agreement on the actual purchase or sale, would have allowed that for state employees. State law permits counties to establish a board of appeals to deal with personnel matters. based on an offer considered at a closed meet- This provision was not in the House bill that ing, must be approved by the public body at an was amended onto the Senate file in the final A new law allows Anoka County to do just that; however, it differs in that it limits the open meeting with a required notice period and 90 minutes of session and ultimately signed public disclosure of the purchase or sale price. by the governor. three-member board’s scope to disciplinary matters; removes the county board from review Proceedings of the closed meeting must be Rep. Jim Knoblach (R-St. Cloud) and tape recorded, with the recording to be released Sen. Dave Kleis (R-St. Cloud) sponsored the of appeals board decisions; provides that the decision can be appealed directly to the Court to the public after the property discussed in the law. closed meeting has been purchased or sold, or HF1995/SF1787*/CH292 of Appeals; and states that the county is the party to an appeal or other litigation, not the the governing body decides to drop the matter. appeals board. The tape must be preserved for eight years from There exists a precedent in statute, as some the date of the closed meeting. Keeping up appearances counties, including Hennepin, Ramsey, and St. A list of members and all other persons pres- A new law aims to keep city taxpayers from Louis, have provisions tailored to their specific ent at the closed meeting must be made avail- shouldering the burden of deadbeat land- needs. able to the public after the closed meeting. lords and unkempt properties by expanding Anoka County employees do not have civil HF2093/SF2114*/CH276 the list of unpaid special charges for which a service status, including an appeals process city may collect a service charge as a special similar to that of other counties. The county assessment. internally created a procedure to deal with METRO AFFAIRS The legislation was brought to the House grievances, but discovered areas in the ap- ★ sponsor, Rep. Dan Dorman (R-Albert Lea), peals process that needed improvement. The by former representative Andy Dawkins, who county attorney’s office recommended that Paying electronically now works for the city of St. Paul as the direc- special legislation be sought because a statutory The Metropolitan Council can now make tor of neighborhood housing and property change would be the best way to ensure that payments by electronic funds transfer. improvement. the process would be fair to the employer and Effective March 20, 2004, state law is Currently, if a landlord shirks maintenance employee in disciplinary matters. amended to allow disbursement of council duties and ignores city notices of code viola- Rep. Chris DeLaForest (R-Andover) and money by electronic funds transfer in addition tions, a city can ask a judge to appoint an Sen. Leo Foley (DFL-Coon Rapids) sponsored to checks. administrator to oversee repairs and assess the law. It became effective the day after local “This will provide (the council) a cost

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savings which each state agency has,” said Rep. Under the law, effective May 13, 2004, the prohibited from asking an applicant if they are Mark Buesgens (R-Jordan), who sponsored amount is equal to the sum of a municipality’s members of the National Guard or reserves the law with Sen. Chuck Wiger (DFL-North proportionate share of the $1 million Met- or requiring an applicant to make an oral or St. Paul). ropolitan Council levy which is credited to written statement concerning their military The council, a regional planning and ser- the local housing incentives account plus the status. The provision does not apply to public vice agency, covers the counties of Anoka, municipality’s proportionate share of the employers asking a question or requesting Carver, Dakota, Hennepin, Ramsey, Scott, and amount levied for the livable communities a statement for the purpose of determining Washington. demonstration account. Proportionate shares whether a veterans preference applies. HF1822/SF1814*/CH140 are determined by the percentage of the total Additional language is added whereby metropolitan levy for each purpose payable in school districts must pay military members the each municipality in the previous year. difference between their basic active military By Aug. 1 of each year, the council must salary and the salary the member would be Affordable housing notify each municipality of its affordable and paid as a district employee. However, school A new law modifies the formula used to life-cycle amount for the following calendar districts are authorized to limit the actual pay- determine a municipality’s “affordable and year determined by this method. ment amount to the amount of saving accruing life-cycle housing opportunities amount,” The law caps any increase in amounts for from the person’s position after paying for a which was enacted as part of the Livable Com- calendar years 2003 to 2007 at 20 percent of substitute. Thus, for new teacher, for example, munities Act in 1995. It also modifies the basis the increase caused by the new formula. the amount paid is likely to be considerably by which nonparticipating municipalities may Since 1996, according to the council, the less than the salary loss incurred during the elect to participate in the program adminis- program has assisted participating communi- person’s military mobilization. Payments may tered by the Metropolitan Council. ties in building or rehabilitating 1,300 homes, not extend beyond four years from when the Life-cycle housing, according to the council, as well as nearly 1,000 new or rehabilitated employee reports for active duty. Districts are “refers to varied housing options that meet rental housing units. also required to maintain health and dental people’s preferences and circumstances at all HF2448/SF2177*/CH259 benefits until the employee is covered by armed of life’s stages and, in particular, options other forces coverage. than the predominant larger-lot, detached, The groundwork for a Global War on Ter- single-family home. For example, smaller rorism bonus for veterans is also included in homes, apartments, town homes, condomini- MILITARY the new law. It requires the commissioner of ums, senior housing for independent living ★ veterans affairs, by Jan. 15, 2005, to provide or (housing) with a range of assisted-living to the Legislature the information needed Benefits revisions services.” to implement a bonus to veterans, including A new law makes several changes related The funding formula — based on new service eligibility dates, service medals, and a to military personnel, part of which follows a residential market values under the old law fiscal note. gubernatorial reorganization order. — determines the minimum expenditure a Rep. Dean Urdahl (R-Grove City) and Sen. Provisions are effective July 1, 2004, unless local government must annually spend on Jim Vickerman (DFL-Tracy) sponsored the otherwise noted. affordable and life-cycle housing to qualify law. The order transfers from the education com- for grants that support newly constructed HF2166*/SF2260/CH256 and rehabilitated housing and other livable missioner to the veterans affairs commissioner communities program funds. The law aims to the authority for certifying higher education reduce local expenditures. programs for federal funding eligibility and Rep. Ron Abrams (R-Minnetonka), who administering the veterans training program. Selective Service registration The maximum authorized support level for sponsored the law with Sen. Linda Higgins Some Minnesota men will automatically be the tuition and textbook reimbursement for (DFL-Mpls), said the reason for the change registered with Selective Service by applying for eligible members of the Minnesota National is that nobody predicted the increase in resi- a driver’s license, under a new law. Guard is raised from 75 percent and 50 per- dential market values since 1995 and that to Effective Aug. 1, 2004, an application for cent to 100 percent, in most cases. (However, remain in the affordable housing program a new or renewed driver’s license, learner’s the funding itself was not increased for fiscal municipalities now need to allocate greater permit, or Minnesota identification card by a year 2005 and, thus, the actual support level is resources, meaning the formula works as a male under the age of 26 constitutes consent to unlikely to be increased for the 2005/06 school disincentive to participate. register with Selective Service. The Department year.) According to the council, the minimum of Public Safety will be required to electroni- The new law also specifies that counties must amount for Twin Cities metropolitan area cally transmit pertinent information on such reserve a family’s position under the child care communities was $16 million in 2003. It was applicants to the federal government. assistance fund if a family has been receiving $531,000 in 1996. Supporters said the change The law will assist men who forget to reg- child care assistance but is temporarily ineli- would help communities that do not have ister, or those who don’t have time to do so gible for assistance due to increased income housing and redevelopment authorities or separately, supporters say. from active military service. authorities that do not levy enough, which Information about those between ages Employment protections are established creates an impediment to their possible future 16 and 18 who are applying for a Minne- for those in the Armed Forces Reserves or involvement in the Livable Communities Act. sota driver’s license would be forwarded to National Guard. Under the law, employers are

43 Highlights ��� ���� � � � �

and Sen. Don Betzold (DFL-Fridley), the law covers a number of areas, including: member- ship issues, salary definitions, allowable service credit, qualified part-time teacher provisions, retirement plan contributions and transfers, death and survivor benefits and refunds, health care savings plan, and the Minneapolis Police Department pension fund. The law has various effective dates. Much of the discussion revolved around the financial status of the Minneapolis Police Re- lief Association and the Minneapolis Teachers Retirement Fund Association funds. While the funds continue to struggle, several legislators said the law doesn’t go far enough to address the problems. The law eliminates service pension levels that apply when the police association is below 90 percent funded. It also increases benefits under the Minneapolis police plan for persons PHOTO BY TOM OLMSCHEID with more than 20 years of service by one unit, Under a new law, an application for a new or renewed driver’s license, learner’s permit, or Minnesota extends the target date for amortizing the un- identification card by a male under the age of 26 constitutes consent to register with Selective Service. The Department of Public Safety will be required to electronically transmit pertinent information on funded liability of the police pension fund from such applicants to the federal government. 2010 to 2020, and provides that once a pension benefit is properly paid in accordance with this Selective Service upon the applicant’s 18th RECREATION law to any member, the dollar amount of that birthday, under the law. ★ pension benefit shall not be reduced. This sec- Under the federal Military Selective Service Snowmobiling both ways tion is effective the day after local approval. Act, men between the ages of 18 and 25 are A conference committee removed language A new law effective Aug. 1, 2004, allows required to register with the federal govern- that would have addressed issues with the two-way snowmobiling along major state ment. While Selective Service in itself is not teacher’s fund. highways. a military draft, it does provide a system for HF890/SF676*/CH267 drafting the number of men needed should Current law restricts snowmobile travel the president reinstate the draft during a war along highways and roads to the same direction or national emergency. as road traffic. Pension funds Failure to register is punishable by a maxi- Sponsored by Rep. Larry Howes (R-Walker) A new law orders the chief administrative mum sentence of five years in prison and a and Sen. Tom Saxhaug (DFL-Grand Rapids), officers of the Minnesota State Retirement $250,000 fine. the new law will not allow the practice in an System, the Public Employees Retirement As- Those who must register include parolees, area without approval from the transportation sociation, the Teachers Retirement Association, refugees, and applicants for asylum. In addi- commissioner, who must first consider the the Duluth Teachers Retirement Fund Asso- tion, men with disabilities that would disqualify safety of motorists and snowmobilers. ciation, the Minneapolis Teachers Retirement them from military service must register, even Though there are some safety concerns over Fund Association, the Minneapolis Employees if assistance must be solicited from a friend broadly allowing the two-way riding, propo- Retirement Fund, and the St. Paul Teachers or relative to do so. Lastly, members of the nents testified that the practice could actu- Retirement Fund Association to jointly con- National Guard or Reserves not on full-time ally improve safety under certain conditions, tract with an actuarial consulting firm to con- active duty must register. particularly poorly lit roads and in areas that duct annual actuarial valuations and related Those exempt from registration include contain steep ditches on one side. services for many major Minnesota public women, non-immigrant aliens who were HF532*/SF522/CH244 pension plans. lawfully admitted, and active-duty military It requires the contract to require comple- personnel. Men unable to register due to hospi- tion of specified actuarial valuations, experi- talization, institutionalization, or incarceration ence data collection, and cost analyses for must do so within 30 days after their release. RETIREMENT certain proposed legislation. An annual report Rep. Jim Rhodes (R-St. Louis Park) and Sen. ★ to the Legislature is required. Mee Moua (DFL-St. Paul) sponsored the law. Pension changes The law is effective May 20, 2004. HF1216/SF1192*/CH192 A new law makes changes to public employ- ee’s pensions by addressing several benefits and Rep. Steve Smith (R-Mound) and Sen. Don plans. Betzold (DFL-Fridley) sponsored the law. Sponsored by Rep. Steve Smith (R-Mound) HF890/SF806*/CH223

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Fund investment A separate provision, effective Aug. 1, 2004, register with the local animal control authority. A new law permits the State Board of requires peace officers to invalidate the license Under the new law, microchip implantation is Investment to invest Metropolitan Council of a driver who refuses to take a breath, blood required if a regulated animal is sedated and postretirement health funds if requested by or urine test for intoxication. Previously of- it does not already have one. Failing to meet the regional agency. ficers had the option to confiscate the license. these requirements could result in a misde- Sponsored by Rep Mark Buesgens (R-Jor- HF622/SF653*/CH282 meanor charge. dan) and Sen. Chuck Wiger (DFL-North St. Also under the new law, if an animal dies, Paul), the new law is effective May 11, 2004. breeders who run USDA-licensed facilities Buesgens said the law, requested by the Met- Dangerous but regulated could replace it in perpetuity, but pet owners ropolitan Council, will allow the council the A new law aims to smooth some ruffled could replace the animal only once. option to request investment — through the feathers between owners of exotic animals and The new law will provide a significant num- state agency — of council funds held in reserve their neighbors. ber of exemptions, including accredited zoos, for the payment of potential and estimated Sponsored by Rep. Steve Strachan (R-Farm- sanctuaries, circuses, rodeos, and county fairs. postretirement health benefits. ington) and Sen. Don Betzold (DFL-Fridley), Proponents said that reducing or regulating A Metropolitan Council representative said the new law will impose registration require- the pool of private ownership would decrease the law will allow a potential higher rate of ments on owners of bears; large cats, such as the risk of injuries and diseases that could be return over time because the council funds lions and tigers; and nonhuman primates, transmitted to people. But the law was met with would be part of a larger state investment including chimpanzees, and gorillas. significant opposition from breeders who said board funding pool. Currently in the state, certain non-domes- the restrictions could put them out of business. The council is a regional planning agency ticated animals are controlled by local ordi- HF1593/SF1530*/CH264 serving the seven-county Twin Cities metro- nances, and breeding facilities are required to politan area. meet U.S. Department of Agriculture (USDA) HF1821/SF1815*/CH175 animal welfare guidelines for fence specifica- Personal protection orders tions, nutrition, and veterinary care. A new law will allow victims of domestic But, Strachan said, dangerous wild animals violence to receive orders for protection and re- are not regulated at all by the state, and the straining orders more quickly in some cases. SAFETY Effective Aug. 1, 2004, the law will make ★ USDA does not regulate ownership of them as pets. He said the law is a matter of public ex parte orders for protection and temporary Pinpointing 911 callers safety. restraining orders effective upon the signature A new law aims to improve 911 emergency Effective Jan. 1, 2005, the new law will of a court referee. Currently, the process is services by requiring new multi-line phone require owners of dangerous animals to delayed in some counties where orders must systems to pinpoint the exact location of be forwarded for a judge’s counter signature callers. following the referee’s signature. Sponsored by Rep. Steve Strachan (R-Farm- The law received support, according to ington) and Sen. Dallas Sams (DFL-Staples), House sponsor Rep. Michael Paymar (DFL-St. the new law will address the various require- Paul), from the chief judges of Hennepin and ments for residential, hotel, school, and busi- Ramsey counties and from domestic violence ness telephone systems. programs. Strachan said the bill may resolve a problem Sen. Wes Skoglund (DFL-Mpls) is the 911 systems have had locating callers. Multi- Senate sponsor. line phone systems that require the user to HF2491/SF2498*/CH145 dial “9” for an outside line will often show the emergency operator the address of a business headquarters or a phone line switching loca- tion, rather than the location where the call Permitted to drive originated. A new law limits the ability of most teenagers Under the new law, most of which went into to gain a driver’s license following accidents or effect May 30, 2004, operators of a multi-line drunken driving incidents. telephone system purchased after Dec. 31, Effective May 8, 2004, a young person 2004, are required to design and maintain whose provisional license is revoked due to the system to provide a call back number and a drunken driving crime or a crash-related emergency response location. moving violation cannot regain a license until The new law lays out the procedures for age 18. Furthermore, that person must com- multi-line system operators to seek exemp- plete a formal driving instruction course, docu- ment three months’ experience in operating tions from these requirements. It authorizes PHOTO BY ANDREW VONBANK a motor vehicle, and pass the driver’s license the transfer of nearly $3.5 million from the A new law imposes registration requirements state government special revenue fund to the on owners of bears; large cats, such as lions written examination. Department of Public Safety to be used for 911 and tigers; and nonhuman primates, including Also under the new law, any person under emergency telecommunications activities. chimpanzees, and gorillas. age 18 who is driving without a permit or

45 Highlights ��� ���� � � � �

license and convicted of a DWI-related crime The bill also orders the flags be flown at or a crash-related moving violation cannot half-staff upon the death of Minnesota military be given a provisional license or instructional personnel killed in the line of duty. permit. In order to obtain a regular license, this In each case, the governor will determine person must pass a written test, obtain a learn- the length of time the flags will be flown at er’s permit and hold it for at least six months, half-staff. and then pass a behind-the-wheel test. Rep. Ray Vandeveer (R-Forest Lake) and Sen. The new law is referred to as “Vanessa’s Law” Mady Reiter (R-Shoreview) sponsored the law, in memory of Vanessa Weiss, who was killed in which is effective Aug. 1, 2004. May 2003 just days before her 16th birthday. HF2930*/SF2733/CH173 She was a passenger in a vehicle being driven by an unlicensed 15-year-old who lost control of the vehicle. Vanessa’s mother, Mary Weiss of St. Louis Park, blamed the accident on exces- One call says it all sive speed, inattentive driving, and youthful A new law aims to ensure that excavating inexperience. around public utilities is done in a safe manner Rep. Greg Blaine (R-Little Falls) and Sen. Betsy by making some changes to the responsibilities Wergin (R-Princeton) sponsored the law. excavators and utilities have under the Gopher HF2555/SF2851*/CH177 State One Call system. Gopher State One Call is a notification center designed to protect personal safety and pocketbooks in the excavation process. Honoring fallen Minnesotans The 1987 Legislature mandated the formation Minnesota and American flags in the State of a centralized statewide information center Capitol area will be required to be flown at half- on the advice of a pipeline safety commission staff upon the death of public safety personnel formed after a serious 1986 pipeline accident in killed in the line of duty, under a new law. the Twin Cities metropolitan area. Under current law, homeowners and con- PHOTO BY TOM OLMSCHEID tractors are required to notify the nonprofit A new law makes several changes to the One Call statewide call center of any intended excava- Excavation Notice System, including the addition tions within 48 hours. An excavation means of the procedure an excavator must follow to give notice of excavation in an emergency. “an activity that moves, removes, or otherwise disturbs the soil by use of a motor, engine, hydraulic or pneumatically powered tool, or Railroad track clearance machine-powered equipment of any kind, or A new law will enhance vehicle safety around by explosives.” railroad crossings, particularly where there Operators collect certain data from callers, may be a tendency for traffic to back up. including when, where, and how long the dig Effective Aug. 1, 2004, the law prohibits all will be, and inform utilities with buried lines vehicles when stopped at railroad tracks from of the intentions to dig. The utilities are noti- crossing the tracks “until the roadway is clear of fied of excavation plans and mark with paint traffic so that the vehicle can proceed without or flags the approximate location of their lines. stopping until the rear of the vehicle is at least Participating utilities include gas, electric, cable 10 feet past the farthest railroad track.” television, sewer, telephone, and water line Violators would be subject to misdemeanor operators. The utilities pay for the service, and penalties. participation is mandatory under state law. State law already requires vehicles to stop According to the organization’s Web site, its 10 feet from the nearest track, except in the case operators handle more than 5 million com- of motor vehicles carrying passengers for hire, munications per year. school buses, Head Start buses, or any other Effective Aug. 1, 2004, the new law will vehicle required to stop at railroad crossings, make some technical changes to the blueprint when the stopping distance is between 15 feet requirements excavators follow during the bid and 50 feet. process and modify the timeline for call center Rep. Doug Meslow (R-White Bear Lake), notification in both emergency and non-emer- who sponsored the law with Sen. Mady Reiter gency situations. (R-Shoreview), said the law is necessary to keep PHOTO BY TOM OLMSCHEID Rep. Ray Cox (R-Northfield) and Sen. Dan vehicles from stopping atop tracks when traffic Minnesota and American flags in the State Capitol Sparks (DFL-Austin) sponsored the legislation. area will be flown at half-staff upon public safety is backed up. HF995*/SF1268/CH163 personnel or Minnesota military personnel being Some opponents said the law is killed in the line of duty, under a new law.

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Preventing fraud A new law authorizes the commerce com- missioner to establish a law enforcement agency known as the Division of Insurance Fraud Prevention. Rep. Gregory Davids (R-Preston), who sponsored the law with Sen. Linda Scheid (DFL-Brooklyn Park), said it “will go a long way to help combat insurance fraud that often results in higher premiums for all Minnesota insurance policyholders.” Comprised of appointed peace officers, the division will serve several functions: • review notices and reports of insurance fraud submitted by authorized insurers, their em- ployees, and agents or producers; • respond to notifications or complaints of suspected insurance fraud generated by other law enforcement agencies, state or federal governmental units, or other persons; • initiate inquires and conduct investigations PHOTO BY TOM OLMSCHEID when the division has reason to believe that Drivers stopped at railroad tracks are prohibited, under a new law, from crossing the tracks until the back of their vehicle can clear the furthest track by at least 10 feet. insurance fraud has been or is being com- mitted; and unnecessary because it’s common sense not to phase and continue the planning and operation • report incidents of alleged insurance fraud stop on railroad tracks. of the system’s second phase into such regions disclosed by its investigations to appropri- The fact that many drivers have inadver- as St. Cloud and Rochester. ate law enforcement agencies, including the tently broken traffic laws, such as running a red The law allows two counties, or a city and attorney general and county attorneys. light, for instance, does not negate the need for one or more counties in a region, to establish Insurance companies will fund the division such a law, Meslow said. a regional radio board to operate and maintain based on the company’s assets, with the pay- HF2217*/SF1852/CH229 regional and local improvements to the state- ment ranging from $200 to $2,000 per year. wide radio system. Concerns were expressed that insurance com- If requested, the state board, by a two-thirds panies would pass the costs on to policyholders. Statewide Radio Board vote, can direct the Metropolitan Council to Davids said although the initial effect would be A new law will create a Statewide Radio issue revenue bonds to finance phase develop- left to consumers, savings would eventually be Board with authority over the backbone in- ment of the radio system. seen through fraud prevention measures by the frastructure of a developing statewide public The Metropolitan Radio Board was estab- agency. safety radio communications system. lished by the 1995 Legislature to set standards Also under the law, duties of the statewide Effective May 18, 2004, the law will also for the construction and operation of a high- auto theft prevention program currently in continue for two years the Metropolitan Radio frequency (800MHz) digital public radio the Department of Public Safety, will be trans- Board, which has built and operated the Twin system covering Twin Cities metropolitan area ferred to the Department of Commerce. Cities regional piece of the system. counties. HF2640*/SF2607/CH269 The Public Safety Radio System Planning By July 1, 2006, the board will transfer its re- Committee will become the 21-member State- sponsibilities to the state board. The law repeals wide Radio Board, under the new law, to be a June 30, 2004 metropolitan board expiration TOURISM chaired by the public safety commissioner. date to allow more time for the transition. ★ The board — to include five state agency The radio system’s first phase started op- commissioners, the State Patrol chief, and erating in 2002. The system cost of about Promoting Minnesota local and county elected and public safety of- $36 million was funded through the Metro- A new office within the executive branch ficials — will have overall responsibility for the politan Council, state-issued bonds, the trunk called Explore Minnesota Tourism is created, statewide communications system to be known highway fund, and a portion of 911-emergency under a new law. as the Allied Radio Matrix for Emergency line fees paid by all telephone users. Tourism functions are currently adminis- Response. Rep. Mary Liz Holberg (R-Lakeville) and tered within the Department of Employment As the system continues to develop, the Sen. Jane Ranum (DFL-Mpls) sponsored the and Economic Development, but the transfer law will allow the Metropolitan Radio Board law. of duties to a new agency would help “increase — which represents nine counties in the Twin HF2136/SF1973*/CH201 the awareness of tourism in Minnesota,” ac- Cities metropolitan area — to add local and cording to John Edman, deputy commissioner regional enhancements to the system’s first of the Minnesota Office of Tourism.

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consistency with long-term comprehensive development plans. Organizations representing county govern- ments want the law changed, according to Rep. Peter Adolphson (R-Minnetonka), who sponsored the law with Sen. Ann Rest (DFL- New Hope). Adolphson characterized the new law as “mandate relief.” Dennis Berg, an Anoka County commissioner, said that many re- gional development commissions haven’t been reviewing bridge repairs and replacements. Eliminating the law wouldn’t damage the in- tegrity of the process, which still requires local government unit approval, he added. Current law, according to nonpartisan House Research Department staff, was enacted in 1976 when the state transportation fund was created. At the time, the state had no process for reviewing bridge projects funded by state grants, and lawmakers wanted to ensure ad- equate local review. Since then, such projects have been reviewed pro forma by regional development commissions without substantial PHOTO ILLUSTRATION BY TOM OLMSCHEID impact. A new law creates an office within the executive branch called Explore Minnesota Tourism to increase the awareness of tourism in the state. HF1851*/SF1954/CH180 The move is projected to have no net fiscal TRANSPORTATION impact to the state. ★ Rep. Gregory Davids (R-Preston), who Garbage truck weight sponsored the law with Sen. Thomas Bakk Local airport costs Under a new law, seasonal weight limits do (DFL-Cook), said the current configuration The minimum local source share of federally not apply to certain garbage trucks that collect no longer meets the needs of the industry. funded airport construction or improvements municipal mixed solid waste. Edman said Minnesota is being outspent will be reduced under a new law. Effective May 19, 2004, the law allows trucks on tourism marketing by neighboring states. Effective March 11, 2004, the airport project to continue making their routes despite any With more people leaving the state to travel cost share required of a municipality, political posted weight restrictions until July 1, 2005, than people coming here from elsewhere, it is subdivision, or public corporation is decreased provided the trucks do not exceed 14,000 time to look at other funding mechanisms for from 10 percent to 5 percent. pounds per axle. promoting Minnesota travel. He said for every Federal and state funding will cover the Some heavy vehicles are already exempt dollar the state spends, it gets $4.60 back in remaining 95 percent of project costs for from temporary annual weight restrictions, taxes. By giving Explore Minnesota Tourism construction, improvement, maintenance, or including school buses and recycling trucks. the flexibility to pursue public-private part- operation of an airport. The provision’s expiration date coincides nerships, the law would make the office more Rep. Michael Beard (R-Shakopee) and with completion of a study on road wear and effective at generating marketing dollars. Sen. Keith Langseth (DFL-Glyndon) sponsored Under the law, the governor will continue to the law. appoint the director, as well as a 28-member HF1794*/SF1615/CH136 council to oversee the tourism office. Effective July 1, 2004, the law also permits the director to sell reports, publications, or Bridge review related publicity or promotional material of The review of bridge replacements and the office. repairs will be streamlined under a new law. HF2044/SF2009*/CH171 Effective Aug. 1, 2004, the law repeals a statute that requires review by the appropriate

regional development commission or the Met- PHOTO BY TOM OLMSCHEID ropolitan Council of all bridge replacements A new law allows garbage trucks that collect and repairs that are funded by grants from municipal mixed solid waste to continue making Minnesota state transportation bonds. The their routes despite any posted weight restrictions reviews were originally envisioned to ensure until July 1, 2005, provided the trucks do not exceed 14,000 pounds per axle.

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weight restrictions, being conducted by the Minnesota Department of Transportation and the Center for Transportation Studies at the University of Minnesota. The law allows law enforcement to impose a civil penalty on garbage and recycling truck drivers violating weight restrictions. Garbage companies favor the law, but city engineers and county representatives are in opposition, fearing that the new law could exacerbate the condition of county roads, which reportedly have $195 million in preser- vation and maintenance needs throughout the state. They also said that the garbage hauling industry has increased truck sizes to increase profits and is now asking the Legislature for an exemption. Rep. Ron Erhardt (R-Edina) and Sen. William Belanger Jr. (R-Bloomington) sponsored the new law. HF722*/SF457/CH205

PHOTO BY TOM OLMSCHEID Trucking trailers A new law allows manufacturers of trailers used for cargo, horses, and livestock to purchase an annual Cargo, horse, and livestock trailers can be permit allowing them to hitch two empty, new trailers to a vehicle for transportation to a dealer. The trailers can only be moved in a three-vehicle combination on specified routes. more easily transported from manufacturer to dealer, and Minnesota statutes are amended day in the week or 70 hours in eight days if the standards because they are located in scenic to accommodate federal motor carrier regula- carrier operates every day. or historically or environmentally sensitive tions, under a new law. Rep. Peter Nelson (R-Lindstrom) and Sen. areas. Effective May 20, 2004, the law allows manu- Mark Ourada (R-Buffalo) are the sponsors. Rep. Ron Erhardt (R-Edina) and Sen. Ann facturers of trailers used for cargo, horses, and HF2671*/SF2930/CH225 Rest (DFL-New Hope) sponsored the law. livestock to purchase a $120 annual permit HF1898*/SF1953/CH181 allowing them to hitch two empty, new trail- ers to a vehicle for transportation only to the Preservation designation dealer. The trailers may not exceed 28.5 feet A new law streamlines the designation of in length and can only be moved in a three- natural preservation routes on county state-aid Behind the wheel vehicle combination on routes where such a highways. A new law makes substantial changes to the configuration is allowed. Effective Aug. 1, 2004, a section of law is re- hours that truck drivers may work. Law proponents said that manufacturers moved that required all requests by counties for The new rules add an hour to allowed driv- desire to bring empty horse trailers to the the designation of natural preservation routes ing times, but also increases required off-duty dealership two at a time. to be reviewed by an advisory committee. The rest times. Furthermore, more non-driving Other components of the law are in keeping committee consisted of a representative from activities have been added to the definition of with federal motor carrier regulations. the Department of Natural Resources, a county driving. One provision requires truck drivers commissioner, a representative of an environ- The changes, effective April 30, 2004, were transporting hazardous materials to immedi- mental organization, and three members of mandated by an update of federal law in ately telephone the state hazardous materials the public. January. emergency reporting line in three situations: The repeal leaves intact the remaining por- Earlier this year, trucking companies when a hazardous materials accident occurs, tion of the statute that regulates the designa- throughout the nation objected to the new when hazardous materials are unintentionally tion of natural preservation routes. It states federal rules, fearing that the changes would released from a package, or when a shipment that in order for the state to designate the drive up costs. containing a hazardous material not previously route, the county board with jurisdiction over However, the Federal Motor Carrier Safety declared is discovered. the road must receive a petition requesting the Administration, on its Web site, states that the Another section amends a statute that road’s designation. The county board must act new hours-of-service rule will save 75 lives exempts drivers from hours-of-service rules on the petition request within 60 days. and prevent 1,326 fatigue-related injuries and following assistance to an emergency relief According to the nonpartisan House 6,900 incidents of property damage every year. effort. It increases from 24 to 34 hours the Research Department, natural preservation Prevention of such incidents would save the mandatory time off if the driver has been on routes are highways within the county state-aid American economy $628 million a year. duty for more than 60 hours in seven days if highway system that may be built to different the employing carrier does not operate every The cause of driver fatigue is the length of a

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However, a variance existed for the Twin Cities metropolitan area. The resident, who operates a bus company, bought an articulated bus in another state and drove it to Minnesota, only to later find out that the bus violated state law. The law is effective Aug. 1, 2004. HF1838*/SF1948/CH240

Safer, longer-lasting land surveys A new law, effective Aug. 1, 2004, aims to reduce the costs of relocating survey markers due to road construction and improve safety for survey crews. Sponsored by Rep. Scott Newman (R-Hutchinson) and Sen. Yvonne Prettner Solon (DFL-Duluth), the new law will make some technical changes to the land surveying marker preservation statute and require that the markers or monuments be placed in such a way as to not be disturbed by routine street PHOTO BY TOM OLMSCHEID or highway maintenance. In response to recent federal changes, a new law makes changes to the hours that truck drivers may work. It adds an hour to allowed driving times, but also increases required off-duty rest times. Under the new law, durable monuments Furthermore, more non-driving activities have been added to the definition of driving. along paved highways must have a supplemen- tal marker placed over the durable monument driver’s workday, not just the amount of time long as the contracts do not jeopardize federal that is visible at the road surface and not vul- he or she spends on the road, according to the funding. nerable to routine snow plowing activities. If federal agency. Effective May 30, 2004, until July 1, 2005, the it’s not practical or safe to set a corner marker Sponsors of the law are Rep. Michael transportation commissioner may not close or in a highway surface, the new law will allow for Beard (R-Shakopee) and Sen. Mark Ourada substantially reduce operations of any trunk a durable metal marker to be set on the section (R-Buffalo). highway or interstate highway safety rest area or quarter-section line. HF1978*/SF1910/CH167 that was open at the beginning of 2004. The new law also will remove a requirement The new law also preserves a number of that when county boards require plats to be advisory committees to the department that approved by a surveyor, that surveyor must Transportation housekeeping would otherwise have expired, including the maintain a full-time office in the county. A new law forwards a collection of trans- county state-aid advisory board, the county The previous requirement was not in portation policy changes surrounding weight state-aid screening board, and the municipal conformance with the actual practice of the restrictions, Department of Transportation state-aid advisory board. This section is effec- counties, where approximately one-third have contract procedures and highway rest areas. tive retroactive to July 1, 2003. full-time surveyors but the other two-thirds do The provisions are effective Aug. 1, 2004, Rep. Chris DeLaForest (R-Andover) and Sen. not, Newman said. unless otherwise noted. Julianne Ortman (R-Chanhassen) sponsored The new law also will allow for licensed land The law allows the department to require the legislation. surveyors other than the county surveyor to that bidders for trunk highway contracts over HF2479/SF2263*/CH295 approve the plats before they are recorded with $5 million submit bids electronically. the county. Another provision allows vehicles carrying The legislation was forwarded at the request forest products to operate on highways without Longer bus of the Department of Transportation. regard to certain load restrictions if the vehicle A new law will help an Amboy resident who HF2107/SF1653*/CH154 is equipped with six axles and brakes and was pulled over for driving a bus that exceeded does not exceed 90,000 pounds gross weight the state motor carrier length limit. (98,000 pounds during winter-weight increase Sponsored by Rep. Tony Cornish (R-Good periods). The trucks must still comply with Light rail operations Thunder) and Sen. Julie Rosen (R-Fairmont), seasonal load restrictions, posted bridge load A new law aims to improve safety and im- the law allows a passenger motor carrier opera- limits, and other road postings. pede fare swindlers along the new Hiawatha tor to drive an articulated bus — an accordion- The new law grants the department author- light-rail line. style motor vehicle — up to 61 feet in length ity to enter into agreements for public or pri- First, it attempts to prevent traffic jams that without a permit. Previous law required a vate sponsorship of highway safety rest areas by could be caused at downtown light rail vehicle permit for any bus more than 45 feet in length. transportation and tourism-related entities as track crossings by providing that all vehicles

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institution, or, if a person is enrolled at a public institution outside the state, the cost of a com- parable program at the university. The previously authorized support level was 80 percent of these costs. Despite the increase in support, citizen-soldier-students are not likely to see any actual increase from current aid amounts for the coming school year, since the Legislature did not increase total funding for the tuition reimbursement program. The tuition reimbursement program cov- ers up to 208 quarter credits or 144 semester credits of coursework. Col. Dennis Lord, executive director of the Minnesota National Guard, said surrounding states currently offer 100 percent reimburse- ment and Minnesota is competing with them PHOTO BY TOM OLMSCHEID for recruitment. Vehicles required by federal law to stop at railroad crossings regardless of the presence of a train, The new law also makes several updates such as school buses, are allowed to pass through light rail track crossings at the intersection of two and clarifications to provisions concerning or more public streets if the intersection is controlled by a traffic signal. veterans’ homes, effective Aug. 1, 2004. required by federal law to stop at railroad cross- veterans affairs commissioner to “request data The law clarifies the role of the executive ings regardless of the presence of a train, such only for the purposes of locating and notifying director and requirements related to quality as school and passenger buses, will be allowed individual veterans of health hazards, includ- assurance and allow profits from wood shops to pass through the intersection if a train is not ing, but not limited to, hearing loss, chemical, at a veterans home can be used to benefit the approaching. This applies only to crossings at biological, and radiation exposure, Gulf War residents of a home. The provision already the intersection of two or more public streets Syndrome, and other injuries as they become existed for canteens and coffee shops. if the intersection is controlled by a traffic sig- recognized as a result of their service in the Rep. Char Samuelson (R-New Brighton) and nal and the intersection is marked with signs armed forces of the United States.” Sen. Rod Skoe (DFL-Clearbrook) sponsored indicating the requirements to drivers. The shared information will be used to help the law. Without this provision, proponents said notify those veterans, their dependents and HF1141/SF1080*/CH219 traffic could become backed up at light-rail survivors of veterans, of potential benefits to crossings in downtown Minneapolis, and rear- which they may be entitled, such as eligibility end accidents could ensue. for health-care assistance for post-traumatic Second, the legislation allows law enforce- stress disorders and chemical dependency Leasing land ment agents and Metropolitan Transit police to treatment or physical injuries. A new law permits the Minnesota Veterans ticket passengers who attempt to ride the train Under the law, the data is limited to the Homes Board to lease land on its Hastings without paying for or presenting the proper taxpayer’s identity, which includes their name, campus to Dakota County for up to 60 years fare. mailing address, and taxpayer identification for the construction of permanent supportive A portion of rail line that will eventually run number. housing for veterans and county residents. between downtown Minneapolis and the Mall Rep. Laura Brod (R-New Prague) and Sen. The measure is necessary because the board of America opened June 26. Dan Sparks (DFL-Austin) sponsored the law. currently has only a 20-year leasing authority. Effective May 27, 2004, Rep. Mary Liz HF973/SF1015*/CH135 The lease will cost the county $1 per year over Holberg (R-Lakeville) and Sen. Chuck Wiger the 60-year term. (DFL-North St. Paul) sponsored the law. Plans are for 30 units for veterans and HF2078*/SF1904/CH245 Veterans tuition and nursing homes 30 units for county residents. Currently, there A new law amends the tuition and textbook is a 200-bed facility for veterans on the 128- reimbursement grant program and updates acre campus. VETERANS laws governing the Minnesota veterans’ The county plans to fund the facility through ★ homes. low-interest loans. The program is meant to be Effective July 1, 2004, members of the self-sufficient: neither the state nor the veterans Information sharing Minnesota National Guard may receive up to will be asked for financial support. Plans are A new law will allow the Department of 100 percent reimbursement for books and not yet finalized. Revenue to disclose certain veterans’ taxpayer tuition for lower division programs in the The law is sponsored by Rep. Denny Mc- identification information to the Department College of Liberal Arts at the University of Namara (R-Hastings) and Sen. Sharon Marko of Veterans Affairs to help notify those veterans Minnesota. However, if the Guard member is (DFL-Cottage Grove). of military-related health hazards that might a medical student, the authorized reimburse- HF2688/SF2626*/CH160 affect them. ment level is 100 percent of the cost of tuition Effective Feb. 27, 2004, the law allows the for the program at another Minnesota public

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