SESSION WEEKLY A NONPARTISAN PUBLICATION MINNESOTA HOUSE OF REPRESENTATIVES • PUBLIC INFORMATION SERVICES VOLUME 26, NUMBER 19 • MAY 15, 2009

So l i t t l e t i m e , s o m u c h t o d o Mo r e c o m p r o m i s e , m o r e r e d u c t i o n s Go v e r n m e n t in Mi n n e s o t a Cu t s , r e d u c t i o n s a n d h o l d i n g s t e a d y HF2377 - HF2388 SESSION WEEKLY

Session Weekly is a nonpartisan publication of Minnesota House of Representatives Public Information Services. During the 2009-2010 Legislative Session, each issue reports House action between Thursdays of each week, lists bill introductions and provides other information. No fee. To subscribe, contact: Minnesota House of Representatives c o n t e n t s Public Information Services 175 State Office Building 100 Rev. Dr. Martin Luther King Jr. Blvd. HIGHLIGHTS St. Paul, MN 55155-1298 Agriculture • 6 Environment • 9 Industry • 13 651-296-2146 or 800-657-3550 or the Bonding • 6 Family • 10 Insurance • 13 Minnesota Relay service at 711 or Budget • 6 Government • 10 Law • 14 800-627-3529 (TTY) www.house.mn/hinfo/subscribesw.asp Business • 7 Health • 11 Local Government • 14 Consumers • 8 Housing • 12 Safety • 14 Crime • 8 Human Services • 12 Taxes • 15 Director Employment • 8 Humanities • 13 Transportation • 16 Barry LaGrave Editor/Assistant Director Lee Ann Schutz Assistant Editor BILL INTRODUCTIONS (HF2377-HF2388) • 23 Mike Cook Art & Production Coordinator Paul Battaglia FEATURES

Writers Fi r s t Re a d i n g : Is push for transparency clouding session end game? • 3-4 Kris Berggren, Nick Busse, Susan Hegarty, Sonja Hegman, Patty Ostberg At Is s u e : So little time with so much left to do • 4-5 Chief Photographer At Is s u e : E-12 education bill funding held steady • 17 Tom Olmscheid Photographers At Is s u e : Cuts in health and human service finance bill called ‘painful’ • 18 Nicki Gordon, Andrew VonBank At Is s u e : Funding for higher education approved •19 Staff Assistants Christy Novak, Joan Bosard At Is s u e : Budget cuts for state government laid out • 20

At Is s u e : Public safety bill backs courts and corrections • 21 Session Weekly (ISSN 1049-8176) is published weekly during the legislative session by Mi n n e s o t a In d e x : Minnesota Government • 24 Minnesota House of Representatives Public Information Services, 175 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155-1298. Periodicals postage paid at St. Paul, Minn., and additional offices. POSTMASTER: Send address changes to Session Weekly, House Public Information Services, 175 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155-1298.

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On the cover: Kyle Rueben, a freshman at Bloomington Kennedy High School, is silhouetted in a plastic window as he adds another piece to the cardboard shack he will share with other students May 8 during an overnight “Box City Vigil” on the front lawn of the Capitol. The vigil is to bring attention to teenage homelessness. ­— Photo by: Tom Olmscheid FIRST READING

between deciding targets in public and public discussion of targets that are decided elsewhere. Letting the sunshine in He supports public access to legislative activity, Is the push to transparency clouding the session end game? and said it’s traditional, and well within the rights of House and Senate leaders, to set targets privately. But the commission does give the DFL the bully pulpit advantage for now. By Kr i s Be r g g r e n “The Democrats are certainly using it to advocate for their position. I think they egislative Commission on Planning and Fiscal have at times used the commission as a Policy staff don’t have windows in their basement bit of a hammer over the administration quarters of the State Office Building, but the without opportunity for full rebuttal by the L administration,” Kohls said. “But nobody’s group they serve has tried to shed some daylight on going to take the politics out of St. Paul.” traditionally secretive — and dependably contentious What is the LCPFP for? — end-of-session deal making. The commission was established in 1987 as a vehicle to research and analyze all manner of things fiscal, including economic trends, Budget targets for conference committees “I think it’s all about sunshine,” said Rep. the governor’s budget and state revenue and have conventionally been hashed out by the Steve Simon (DFL-St. Louis Park), one of nine expenditures projections and proposals. The governor and legislative leaders behind closed House members appointed to the commission House speaker and Senate majority leader doors. They would then be handed to conference along with nine senators. “It’s all about bringing alternate the chair responsibilities every committees to work out the details. a mysterious backroom process more into the biennium. However, it’s not used in the same As the session winds to a close, the open. As legislators, it’s always good to be as way every year — and rarely as publicly as this negotiations have once again moved behind the public and transparent as possible, whether it’s year. doors of the governor’s office. But there is little discussing targets or federal stimulus funds, “It ebbs and flows in its use,” said Greg argument that this year, DFL leaders sought or getting on the record the positions of the Hubinger, the commission’s 15-year director. to create more transparency about arriving House, Senate and governor.” “It depends on what they want to do with it.” at a balanced budget. The previously obscure Republicans have criticized DFL leaders “It ebbs more than flows,” observed Bill commission held weekly, sometimes daily for what they say is lack of clarity about the Marx, the nonpartisan House chief fiscal televised hearings, where members hammered nature of the commission’s public discussions analyst, who’s been kept on his toes with First Reading continued on page 4 agency heads with questions and House, Senate this year. Commission member Rep. Paul the commission’s requests for reams of and executive positions were aired. Kohls (R-Victoria) said there’s a difference First Reading continued on next page

p h o t o b y t o m o l m s c h e i d Senate Assistant Majority Leader Tarryl Clark, from left, Senate Majority Leader Larry Pogemiller, House Speaker Margaret Anderson Kelliher and House Majority Leader Tony Sertich listen as Finance Commissioner Tom Hanson and State Budget Director Jim Schowalter answer question during a May 14 meeting of the Legislative Commission on Planning and Fiscal Policy. The middle chair was reserved for Gov. Tim Pawlenty, who members hoped would attend to present details about a potential unallotment plan.

May 15, 2009 Session Weekly 3 First Reading continued from page 3 information about federal stimulus and stabilization funds, and comparisons of So little time with so much left to do legislative and executive branch proposals. Sometimes the commission is used as a forum to work out sticky fiscal situations, And negotiations continue such as this year’s airing of how to incorporate The end-of-session rhetoric was Pawlenty said. “Unfortunately, they have funds from the American Recovery and cranked up a notch May 14 when Gov. done just that and now I’ll fix it.” Reinvestment Act of 2009 with its finicky Tim Pawlenty announced he would House Speaker Margaret Anderson conditions, or the first Northwest Airlines not call a special session or permit a Kelliher (DFL-Mpls) responded with bailout in 1991. In 2002, it commissioned government shutdown if legislators do a letter to Pawlenty inviting him to reports on statutory appropriations, funds, not finish their work by May 18. meet with the Legislative Commission accounts and budget rules that were adopted Ten major finance bills reached the on Planning and Fiscal Policy that as budgeting policy guidelines for the governor’s desk by May 13, and the night to discuss his proposal. She said Legislature. governor said he would sign all of them, Minnesotans deserve to know how he The commission has never been charged but with line-item vetoes. However, he plans to proceed with his unallotment with setting conference committee budget indicated they leave a $3 billion funding strategy. Pawlenty did not appear. targets, Marx said. Its responsibilities gap. “On the face it looks extreme, but described in law are broad enough it would In addition to the line-item we need to see the details,” said House be possible to argue that setting conference vetoes, Pawlenty said he would use Majority Leader Tony Sertich (DFL- targets is within its purview. his unallotment authority beginning Chisholm). “No one has ever represented that this is a July 1 to resolve the state’s projected Members are expected to meet bill-passing, deal-making panel,” Simon said. $4.6 billion deficit. May 15, and possibly through the “To those who are disappointed (with the lack “A key principle is that the DFL- weekend, to further discuss a negotiated of public target-setting) I would say it was controlled Legislature shouldn’t spend end-of-session agreement. never advertised as such.” more money than the state has available,” — M. Co o k a n d L. Sc h u t z Is it worth it? Everyone likes transparency, they say, but as the session slogs toward adjournment some To do list: Status of major omnibus finance bills Capitol veterans say the traditional top-down way of dealing with the big numbers might House Senate Governor’s be more productive. Others are a bit cynical, Action Action Action suggesting the openness is more show than Agriculture and Veterans Affairs tell. HF1122*/SF1779 Passed 5/13 Passed 5/13 Presented 5/13 Seasoned lobbyists say the conference E-12 Education process seemed more effective when targets HF2*/SF1328 Passed 5/13 Passed 5/13 Presented 5/13 were agreed upon ahead of time. Economic Development “Leadership isn’t getting to ‘yes,’ which HF1169/SF2081* Passed 5/5 Passed 5/5 VETO 5/7 isn’t allowing the process to work,” said Economic Development Minneapolis Public Schools lobbyist Jim HF2088*/SF1926 Passed 5/8 Passed 5/8 Presented 5/11 Grathwol. He compares conferencing without Environment and Energy a target to sailing without a rudder. “You HF2123*/SF2099 Passed 5/4 Passed 5/5 Line-item veto 5/7 can’t negotiate without that direction from Health and Human Services leadership.” He said the difference is marked HF1362*/SF695 Passed 5/11 Passed 5/11 Presented 5/11 compared with a decade ago. Higher Education At least one conference committee chair SF2083* Passed 5/13 Passed 5/13 Presented 5/13 concurs. “The short timeline works against Public Finance an open process,” said Rep. Mindy Greiling HF1298*/SF1257 Passed 5/12 Passed 5/12 Presented 5/13 (DFL-Roseville), adding that “the jury’s out” Public Safety on whether the push to openness has been HF1162/SF802* Passed 5/12 Passed 5/11 Presented 5/12 productive. State Government “There’s been a lot of public show and HF1781/SF2082* Passed 5/13 Passed 5/13 Presented 5/13 posturing,” said Greiling, who co-chairs the Taxes E-12 education finance conference committee HF2323*/SF2074 with Sen. LeRoy Stumpf (DFL-Plummer). “In Taxes the traditional conference committee of yore, HF885*/SF681 Passed 5/8 Passed 5/8 VETO 5/8 before the current leadership, there was a week Transportation or more of public offer-trading. Then it was HF1309*/SF1276 Passed 5/4 Passed 5/4 Signed 5/7 First Reading continued on page 23

4 Session Weekly May 15, 2009 So little time with so much left to do Constitutional deadline to adjourn is midnight May 18.

“It’s clear that this comes down to a series of choices. We’ve acted on the input Minnesotans have given us, and what they have told us is ‘please, be responsible. Craft a balanced plan, to solve the budget deficit – this historic budget shortfall.’ That’s what we’ve done, and now we await a further conversation with the governor.” — Speaker of the House Margaret Anderson Kelliher Press briefing May 13 XII I “House Republicans will not override a governor’s XI veto. It’s that simple. Minnesotans are demand- ing that government down-size, right-size and II economize to grow jobs without whacking taxpayers with tax increases. … If they (DFL) come to the table with the intent of serious X reform, I would be optimistic about the road to an on-time adjournment.” — House Minority Leader Marty Seifert Press release May 11 XI

III “In other words, your spending exceeds current projected revenues

by approximately $3 billion. Your

approach puts me in the position of

evaluating your bills without having a viable plan from you to pay for them.” VIII

— Gov. Tim Pawlenty

Letter to Speaker of the House and V Senate Majority Leader May 13 VII VI IIII “My hope is to end the Legislature on time with a complete budget, but as the Boy Scouts say, we should always be prepared. … If this bill was to pass it would allow for base funding for one year to make sure those core services are maintained while we reconcile our state budget. I bring it before you as an option of very last resort. I think it is good to have all our bases covered as we head into our last week of session.” — House Majority Leader Tony Sertich House floor debate May 13

May 15, 2009 Session Weekly 5 HIGHLIGHTS M a y 7 - 14, 2009

nailed down how the bills would be paid for, Universities, $54.6 million to the Department Dear Readers: especially if there is no agreement with the of Transportation, $51.5 million to the The Legislature is constitutionally required governor on a biennial budget. University of Minnesota and $22.6 million to adjourn by midnight, May 18. As Session “I think it is worthy of the legislative to the Metropolitan Council. Weekly goes to press, there are several out- standing issues yet to be resolved, and the support. I’m inclined to vote for the bill. I “This bill places a high priority on higher House will likely meet through the weekend would suggest that the governor should hold education,” Hausman said. “It is our strong to finish its business. on to it for every hour he has, and work like belief that higher ed is the engine that drives We plan to publish the final issue of Session heck and get a deal on how much money we the state’s economy.” Weekly for 2009 once all bills have been acted have to spend.” The bill also would provide asset upon by the governor. This session wrap-up One of the smaller General Fund spending preservation in almost every state agency, issue will give readers a complete look at action taken during the session. categories, the governor’s funding request was Hausman said, and provides money for For daily updates as session comes to a close, $266.4 million, and coming into conference shovel- and paint-ready projects. visit the Session Daily Web site at www.house. committee, the House proposal was $248.39 However, some members were not happy mn/hinfo/sdaily.asp million; the Senate $251.9 million. The with the bill. — Se s s i o n We e k l y s t a ff compromised language appropriates “This is the most glaring example of how approximately $250.5 million in spending we refuse to acknowledge the situation we’re during the 2010-2011 biennium. in,” said Rep. Tom Emmer (R-Delano). “We’re The conference committee eliminated spending money without any regard to the Editor’s note: The following Highlights are coverage of select bills heard in House commit- a controversial provision that would have consequences.” tees and other House activities held May 7-14. established a new veterans mental health He and House Minority Leader Marty Designations used in Highlight summaries: facility in Kandiyohi County. An amendment Seifert (R-Marshall) said that it was not fair HF-House File; SF-Senate File; CH-Chapter; and successfully offered by Juhnke calls for the to put disaster relief in the bill. *- the bill version considered by the House or veterans affairs commissioner to consider “We all support flood relief and disaster the bill language signed by the governor. possible options for treatment of veterans assistance. That should have been in its own suffering from brain injury, posttraumatic bill,” Seifert said. “When we’re looking for a stress disorder, or like ailments and report balanced diet on how to balance this budget, it back to the Legislature by Jan. 15, 2010. should be about bread and butter, not pork.” AGRICULTURE More than $1 million to help make the Rep. Larry Howes (R-Walker), a member homes reach Medicare certification was of the bill’s conference committee, said he ‘Our bill’ gets bipartisan support removed from the bill by conferees. understood Hausman’s dilemma to keep the The glitch over which finance bill should Acknowledging this year’s conference bill small, yet because everything in the bill hold funding for the state’s five veterans committee process, which he termed an is “paint and shovel ready,” he called it an homes was worked out, and the omnibus “experiment to do the negotiating in the “excellent bill.” agriculture and veterans finance conference room,” rather than having leadership and the Other provisions include: committee wrapped up its work. governor bargain behind closed doors, Juhnke • $17.2 million for the Department of Em- After being passed 133-0 by the House May said, “I think it was a neat process, and one ployment and Economic Development for 13 and 62-5 later that day by the Senate, it I’ve not seen in my 13 years here.” redevelopment grants and a Mankato Civic awaits action by the governor. — L. Sc h u t z Center expansion, among others; “Today, I would say we have ‘our bill.’ We • $9.1 million for state and local matches for had two goals with the bill: preserve jobs and Bonding federal assistance for the Department of protect core services,” said Rep. Al Juhnke Public Safety; (DFL-Willmar), who sponsors the bill with • $2.7 million for reconstruction and repair Sen. Jim Vickerman (DFL-Tracy). Disaster relief, shovel-ready projects of trunk highways and bridges; and HF1122*/SF1779 would cover 2010- A governor’s signature separates $54 • $2.1 million for Minnesota Historical So- 2011 biennial funding for the Veterans million in flood mitigation from areas where ciety asset preservation. Affairs, Military Affairs and Agriculture the dollars are needed. — S. He g m a n departments, the Board of Animal Health “This money is going to go a long way to and the Agricultural Utilization Research protect the Red River Valley from future Budget Institute. flooding,” said Rep. Paul Marquart (DFL- After reaching agreement on most of the bill Dilworth). “Those dollars will be saved many May 1, committee negotiations were stalled times over in reduced damages in the future.” ‘Lights-on bill’ in place, just in case after it was learned provisions in the House Sponsored by Rep. Alice Hausman (DFL-St. Viewed as a “just in case” scenario by some bill to fund the state’s five veterans homes were Paul) and Sen. Keith Langseth (DFL-Glyndon), members and a “let’s give up bill” by others, not in the Senate proposal, but in the Senate HF855*/SF781 was passed 109-25 by the House the so-called lights-on bill to keep govern- health and human services finance bill. and 59-8 by the Senate, both on May 13. Gov. ment operating if there is no budget agreement Rep. Paul Kohls (R-Victoria) said he was Tim Pawlenty said May 14 that he will likely awaits action by the governor. “conflicted” about his vote. He was among line-item veto several provisions in the bill. The bill, SF2141, would keep government Republicans who criticized the DFL for The $343.5 million bill would provide going if no biennial budget agreement is reached passing spending bills, without having $78.8 million to Minnesota State Colleges and before the end of the fiscal year, June 30.

6 Session Weekly May 15, 2009 St a t e h o o d Da y

p h o t o b y t o m o l m s c h e i d The chandelier is lighted above the Capitol Rotunda for the annual recognition of Statehood Day. Minnesota became the country’s 32nd state on May 11, 1858.

It was fast-tracked through the Senate and be enacted, and it would leave a $3 billion Pawlenty May 11 and effective the next day, is approved 45-19 on May 11 and moved onto the revenue gap. sponsored by Rep. Al Juhnke (DFL-Willmar) House floor, where it was amended and passed If the bill is enacted, federal economic and Sen. Dan Sparks (DFL-Austin). 88-46 two days later. It was repassed by the stimulus money received, but not allocated, The modified regulations include: Senate and now awaits action by the governor. would come under the purview of the • expanding the definition of a competitive House Majority Leader Tony Sertich (DFL- Legislative Coordinating Commission for area for four-line business phone lines, Chisholm), who sponsors the bill with Senate receipt and distribution. formerly limited to an exchange in the

Majority Leader Larry Pogemiller (DFL- — L. Sc h u t z Twin Cities metropolitan area, St. Cloud or Mpls), called it “an option of last resort.” Duluth, to include all of Minnesota; If no budget resolution is reached by May 18, Business • regulating telecommunications carriers the constitutional deadline for adjournment, in the same way as telephone companies the bill would cap state agency spending during with respect to promotions and bundled fiscal year 2010 at the current spending levels. Competition for telecom providers services, such as removing 90-day and Telecommunications “My hope is to end the Legislature on time Signed nine-month limits on some aspects of customers in Greater with a complete budget, but as the Boy Scouts by promotions; and Minnesota, where technology say, we should always be prepared,” Sertich the • eliminating tariff rules that no longer serve said. “If there is not agreement, no services governor needs are growing and capacity the industry or its customers. would shut down in our state. If this bill is expansion is seen as an The regional telecommunications industry passed, it would keep core government service important factor in economic says the law is a positive step that eliminates running for one year. … I think this is a good development, may now benefit from more “artificial constraints” on promotional safety measure to have.” competition that includes regional practices and provides flexibility to House Minority Leader Marty Seifert companies. telecommunications companies while leaving (R-Marshall) said the bill is a sign of failure, A new law eliminates what many regiona l and consumer protections against predatory a “let’s give up bill” and “lazy budgeting.” mid-sized telephone and telecommunications pricing in place. He said the bill makes no revenue provisions companies consider outdated regulations “I come from an old-fashioned traditional for spending bills that have been, and could affecting their ability to compete with larger phone company which has adapted to a companies. The law, signed by Gov. Tim

May 15, 2009 Session Weekly 7 fast-paced competitive environment,” No charges on lost cell phone Office of Justice Programs. HickoryTech Regulatory Affairs Manager Lost your cell phone? No need Passed 131-0 by the House May 8, it now Signed Carrie Rice said during a committee to worry about being liable for awaits Senate action. by hearing. charges the finder may rack up. “This is part of an overall effort to stop sex the HF1149/SF926*/CH57 trafficking in the state of Minnesota,” Paymar governor Effective Aug. 1, 2009, a — K. Be r g g r e n customer will not be liable said. “Sex trafficking is not limited to foreign for charges resulting from nationals. Girls and women are regularly Consumers unauthorized use of their cell phone, if the trafficked every day in the state of Minnesota. wireless provider has been notified that the The average age of a trafficked individual is phone is lost or stolen. The customer will 12 years old.” Unfair ticket sales prohibited have to agree, however, to suspend use of the The bill creates a first- and second-degree A new law aims to create a Signed wireless device. sex trafficking offense that is similar to ticket for those who unfairly by The law, signed May 9 by Gov. Tim first- and second-degree sexual or domestic sell tickets. the Pawlenty, is sponsored by Rep. John Lesch assaults. It calls for a 20-year felony for sex governor Signed May 11 by Gov. (DFL-St. Paul) and Sen. Ellen Anderson (DFL- trafficking a minor and 15 years for sex Tim Pawlenty, it creates a St. Paul). trafficking any other person. misdemeanor offense for unfair HF854/SF298*/CH54 It also contains a provision for a ticket sales. The law initially would have —L. Sc h u t z 25-year sentence for a first-degree case with placed restrictions on reselling tickets over aggravating factors, such as repeat offenders, the Internet. Warning called ‘overreach’ victims suffering bodily harm during the offense Sponsored by Rep. Joe Atkins (DFL-Inver One man’s efforts toward commission, more than one victim involved, or Vetoed Grove Heights) and Sen. Ron Latz (DFL-St. consumers understanding the the time the victim was held in debt bondage or by Louis Park), the law requires the initial seller potential danger of a certain forced labor was more than 180 days. of tickets to make available for sale all tickets the Rep. Melissa Hortman (DFL-Brooklyn governor mulch met Gov. Tim Pawlenty’s under its control, and that it be done under veto pen May 8. Park) successfully amended the bill with the terms directed by the event provider. After it was determined that language of HF1213, which she sponsors. It The new law, effective Aug. 1, 2009, requires Terry Hall’s chocolate Labrador retriever died clarifies the definition of prostitution so it the initial ticket seller to receive permission from ingesting cocoa bean shell mulch, Hall is the same for a gross misdemeanor and a from the event or venue provider before began his campaign of consumer awareness. misdemeanor, and makes clarifying changes initial ticket sales can be diverted to any other This resulted in a bill, sponsored by Rep. to “prostitution in a public place” by using manner, or under any other terms. Frank Hornstein (DFL-Mpls) and Sen. D. language consistent with other prostitution The law also states that anyone with the Scott Dibble (DFL-Mpls) that would require statutes. intent to defraud or offer for sale altered or a posted notice wherever the product is sold — M. Co o k counterfeit tickets will be charged with a warning that ingestion of the mulch could be misdemeanor. poisonous to pets. Employment HF819*/SF759/CH61 In his veto message, Pawlenty called the — L. Sc h u t z bill “an example of legislative overreach.” He cited research showing few incidents of cocoa Accurate unemployment numbers Kids’ cups, baby bottles made safer bean mulch ingestion incidents and wrote that Minnesota’s 8.2 percent March unemployment Health-conscious parents of rate is clearly bad news for the state, but according Signed many items are harmful to pets, and retailers babies and young children can to House Majority Leader Tony Sertich (DFL- by are not generally required to post warnings at cross one product off their no- the point of purchase for those products. Chisholm), the state’s unemployment numbers the are even worse than they look. governor buy list. Baby bottles and sippy “A better approach would be to require cups containing the chemical manufacturers to post warning labels on the Sertich said there are actually more Bisphenol-A, or BPA, will be off products themselves, where necessary and accurate, comprehensive employment Minnesota store shelves within two years. appropriate,” Pawlenty wrote. He also added numbers available to the state from the federal A new law, sponsored by Rep. Karen that the bill language is not clear regarding government. He sponsors HF925 that would Clark (DFL-Mpls) and Sen. Sandy Rummel the extent a business would be liable for not ask state officials to use these numbers in their (DFL-White Bear Lake) and signed by properly displaying the warning sign. official estimates. Gov. Tim Pawlenty May 7, bans Minnesota HF1306/SF122*/CH47 Passed 117-12 by the House on May 11, the manufacturers from selling cups and bottles bill would force state officials to use the most — L. Sc h u t z intended for use by children age 3 or younger comprehensive set of statistical measures that contain BPA after Jan. 1, 2010, and available, known as “U6,” when calculating retailers from selling them after Jan. 1, 2011. Crime unemployment. The law is effective May 8, 2009. The U6 calculations would factor in certain Numerous peer-reviewed research studies Tougher sex trafficker penalties groups of people that the state’s current have found BPA to be a carcinogen and The penalties for sex traffickers could method, known as U3, does not. This includes endocrine disruptor. The chemical is widely become more severe. people who are unemployed and no longer used in consumer products such as eyeglasses, Sponsored by Rep. Michael Paymar (DFL- actively seeking work because of impediments sports helmets, electronic toys and lining for St. Paul) and Sen. Sandy Pappas (DFL-St. like transportation issues or a lack of child beverage or liquid cans. Paul), HF1505*/SF1514 comes from a report care, and also part-time workers who want HF326/SF247*/CH40 from a sex trafficking taskforce funded by the to work full-time.

— K. Be r g g r e n 8 Session Weekly May 15, 2009 For example, whereas the U.S. Rep. Lyndon Carlson, Sr. (DFL-Crystal) — St. Paul’s hopes of building a new ice arena unemployment rate for April was 8.9 percent explained that it is an executive-branch downtown. under the U3 calculations, the U6 calculations initiative to retain “top-notch people” The bill, HF2088, represents the Legislature’s put it at 15.8 percent. responsible for investing state pension funds. second attempt at funding jobs, housing and “I think this would be good for public policy Others argued that no matter what the cultural heritage programs for the 2010-11 discussion, to know how many Minnesotans current economic climate, lawmakers ought biennium. The House passed it 86-43 on May are unemployed and what their barriers are to respect the executive branch’s negotiation 8 after the Senate passed it 47-13 earlier in the to employment,” Sertich said. process. day. It now awaits gubernatorial action. Sertich said the data is already collected “Obviously, the whole situation we’re in Pawlenty vetoed the first funding bill, by the U.S. Bureau of Labor Statistics, and right now is very different from what it was SF2081, over a provision that would have that the state’s Department of Employment last summer,” said Rep. Morrie Lanning forgiven the bulk of a state loan to St. Paul and Economic Development would merely (R-Moorhead). “Nonetheless, we entered into for construction of the Xcel Energy Center. have to adapt its models for calculating good faith negotiations. … Those contracts In a statement, the governor said he objected unemployment. were approved, and those contracts are now to the provision that would have allowed Rep. Bob Gunther (R-Fairmont) expressed before us for ratification.” the city to move forward on a proposed new concern that the U6 calculations would make — N. Bu s s e indoor ice arena across the street from the Minnesota look bad when compared to other Xcel, on the basis that St. Paul “should not states; however, Sertich said DEED would still Better workforce training threaten to reduce police and fire services collect the U3 data, allowing for an “apples- Representatives from state while requesting that a loan be forgiven in Signed to-apples” comparison between states. colleges and universities, order to build an ice rink.” by The bill now awaits action by the full Senate, workforce centers, school Rep. Tom Rukavina (DFL-Virginia), where Sen. D. Scott Dibble (DFL-Mpls) is the the who sponsors the new bill with Sen. David governor districts and other organizations sponsor. will soon be asked to put their Tomassoni (DFL-Chisholm), said the new — N. Bu s s e heads together to figure out a funding package is identical to the first, with better way to educate low-skilled workers in the exception of the loan forgiveness and two State contracts ratification Minnesota. other minor provisions. Public employees’ salaries came into Signed May 12 by Gov. Tim Pawlenty, a Overall, the bill would cut funding for question before the House voted to ratify a new law directs the Governor’s Workforce several agencies and programs, including: number of state labor contracts. Development Council to consult with • 16.6 percent to the Board of the Arts; Passed by the House 103-29 on May 12, several state agencies and establish four • 6.2 percent to the Minnesota Historical HF1218/SF1036* would ratify contracts local collaborative projects to “plan and Society; negotiated by Minnesota Management and coordinate employment, training, and • 3.9 percent to the Department of Employ- Budget and various state employee bargaining education programs and services.” ment and Economic Development; units. Affected groups include Minnesota Rep. Larry Haws (DFL-St. Cloud), who • 3.5 percent for Housing Finance Agency State Colleges and Universities faculty and sponsors the law with Sen. Tarryl Clark (DFL- programs; and staff, the State Board of Investment and the St. Cloud), said the projects will be located in • 3.5 percent to Explore Minnesota Tourism. Minnesota Nurses Association. The Senate four different geographic areas and will focus The bill would prevent deeper cuts to job passed the measure 49-16 on May 7. The bill on adults in need of workforce training. He programs by temporarily increasing a fee awaits gubernatorial action. said the law puts an emphasis on having adult paid by employers into the state’s workforce Sponsored by Rep. Leon Lillie (DFL-North basic educators play a greater role in workforce development fund. The fee hike would raise St. Paul) and Senate President James Metzen development. $15.5 million over the next biennium. (DFL-South St. Paul), the bill deals mostly “This gives them a place at the table,” he The bill also includes a number of proposed with contracts that Lillie said were “left said. policy changes, including: establishing ice hanging” after the 2008 legislative session Each collaborative will be required to hockey as the official state sport; strengthening because of arbitration and other factors. include, at a minimum, representatives of: prevailing wage enforcement; requiring “These are the governor’s negotiated Minnesota State Colleges and Universities; public employers to purchase uniforms and contracts,” Lillie explained, trying to stave local adult basic education; workforce centers; equipment made in the United States; and off criticism of the bill. Nevertheless, some local school districts; community action establishing an Economic Development members argued the agreed-to salaries do not agencies; and public housing agencies. Strategy Working Group. reflect the current economic downturn. Each local collaborative will have to — N. Bu s s e Referring to a provision that would implement its plan for at least one year authorize a 10 percent raise for State Board and then report to the council on progress Environment of Investment employees, Rep. Mark Buesgens made. The council will then report to the (R-Jordan) called it “unconscionable” to raise Legislature. state workers’ salaries at a time of record The law is effective May 13, 2009. Most of omnibus bill gets signed The omnibus environment and unemployment. HF1850/SF1569*/CH65 Signed energy finance bill made it past “We are not a rubber-stamp organization, — N. Bu s s e by the governor mostly intact. members; we’re here to do the right thing. And the The law to fund parks, if you consider voting for a 10 percent increase Jobs and housing governor museums, zoos and renewable for state employees when the rest of the state of Gov. Tim Pawlenty will have the choice to energy initiatives, as well as Minnesota is hurting, then I don’t think you sign off on an economic development funding implement new rules for debt settlement understand the idea of the whole concept.” package that would dash — for now, at least

May 15, 2009 Session Weekly 9 managers, was signed May 7 by Gov. Tim leaves the control now with the guardian against the state by various persons who Pawlenty minus a provision regarding surface or conservator as opposed to the ward cannot proceed against the state under the water assessments. or the protected person. It strikes a little State Tort Claims Act.”

Pawlenty vetoed a $15 million biennial more nuanced balance, but the guardian/ — M. Co o k appropriation from the environmental fund conservator still retains those rights. That’s targeted for surface water assessment and the primary change in law.” Rulemaking by e-mail monitoring. His budget recommendation — M. Co o k A few simple changes to Signed calls for the activity to be funded from the statute will allow state agencies by Clean Water Fund, using the newly dedicated Government to give rulemaking notices via sales tax, which is a result of a constitutional the governor e-mail instead of regular mail. amendment passed last November to fund Signed May 12 by Gov. Tim outdoor and arts programming. Claims bill gets House approval Pawlenty, a new law allows state He said the environmental fund will More than $66,000 could be paid by the agencies to save time, money and effort by be nearly insolvent in the “not too distant state for injuries and errors. using e-mail to give notices when: future,” and funding through the Clean Water Sponsored by Rep. Lyle Koenen (DFL-Clara • the Office of the Revisor of Statutes is pro- Fund will provide long-term fiscal stability for City) and Sen. Ron Latz (DFL-St. Louis Park), posing style and form revisions of rules; the program. the annual claims bill calls for payments • a state agency is holding a public hearing Sponsored by Rep. Jean Wagenius (DFL- of $53,964.23 from the General Fund and on proposed rules; Mpls) and Sen. Ellen Anderson (DFL-St. Paul), $13,517 from the Department of Employment • a state agency is proposing to adopt rules most of the law takes effect July 1, 2009. and Economic Development. without holding a public hearing; HF2123*/SF2099/CH37 Approved 118-14 by the House May 12, • a state agency is using an expedited process HF1193*/SF1011 awaits Senate action. — L. Sc h u t z to adopt proposed rules; and The bulk of the General Fund money • a state agency is proposing to repeal obsolete Family ($52,552.23) would be for Department of rules. Corrections claims involving 16 individuals “This is the 21st century; I know of no injured while doing community service or opposition to the bill,” said Rep. Gene Changes protecting wards sentence-to-service work or inmates injured Pelowski, Jr. (DFL-Winona), who sponsors the A bill of rights for wards and protected while performing assigned duties in a state law with Sen. Ann Rest (DFL-New Hope). persons could be placed in state statute. prison. Their claims range from $750 to The law takes effect Aug. 1, 2009. That is just one of the provisions in a bill $8,733.52. Approximately $5,000 of the total is HF1857/SF532*/CH71 that makes changes related to guardians and to settle sentence-to-service and community — N. Bu s s e conservators. work service claims under $500 and other Sponsored by Rep. Paul Thissen (DFL-Mpls) claims already paid by the department. Electronic meetings for agencies and Sen. Mee Moua (DFL-St. Paul), HF804*/ Mary Egge of Forest Lake would receive State boards and agencies might be allowed SF951 was approved 131-0 by the House May $1,412 from the General Fund for her 2005 to meet electronically instead of in person 8 and awaits action by the full Senate. property tax refund that she claimed to have — as long as the public still has access to the “We have 22,000 Minnesotans under mailed, but the department never received. meetings. guardianship or conservatorship, and that is “There had been some vandals in the area Sponsored by Rep. Sheldon Johnson going to increase as we go forward,” Thissen said. that had damaged her mailbox and the form (DFL-St. Paul) and Sen. Mee Moua (DFL- He noted the bill also addresses accountability disappeared,” Koenen said. “She had a witness St. Paul), HF456/SF764* is designed to save and transparency in the system. that testified she had actually put the form in state agencies money by letting them meet via Thissen said the bill: the mail. The department did an audit to make telephone or other electronic means. Passed • establishes conflict of interest rules for attor- sure the numbers were correct.” 90-40 by the House on May 8, and 49-0 by the neys that represent guardians and wards; DEED is to pay its share to a Nancy Senate on May 12, the bill now awaits action • puts more eyes on these transactions with Teklenburg of Solway, who suffered economic by Gov. Tim Pawlenty. an ombudsman being more involved, along loss because of a departmental error in Johnson said the bill would be especially useful with more interested persons; and handling an unemployment claim. to members of state boards or commissions who • creates the bill of rights that would contain She received nearly a year of severance pay live in Greater Minnesota and have difficulty provisions in current law, but put them in after being laid off from a job in the private commuting to regular meetings. one place. sector. Nearly a year later she notified the “The whole intent is to provide more Among the 14 listed rights that must be department her severance pay was complete openness and more flexibility for people to enforced by the court are: treatment with dignity and she could begin her year of unemployment participate,” Johnson said. and respect; due consideration of personal eligibility. “The department sent her the first Although the bill states that the electronic desires, medical preferences and religious check but didn’t reset the clock, so once her meetings must be accessible to the public, beliefs; personal privacy; and timely and first check had come she reached the point and that at least one member of the board or appropriate health care “that does not violate of one year and the payments discontinued,” agency must be present at the regular meeting known conscientious, religious, or moral beliefs Koenen said. location, opponents worry this might limit or of the ward or protected person.” The payment recommendations come from discourage public participation. Thissen said there was concern about the Joint House/Senate Subcommittee on “In a society where we are moving away communication and visitation among Claims, which, according to its Web site, “was from any face-to-face personal contact, this is persons. established in 1976 to hear and recommend not the right answer,” said Rep. Tom Emmer “The language that we’ve worked out to the legislature whether or not to pay claims (R-Delano), who successfully offered an

10 Session Weekly May 15, 2009 Go v e r n o r ’s announcement

p h o t o b y t o m o l m s c h e i d Surrounded by 18 Republican legislators at a May 14 news conference, Gov. Tim Pawlenty announces that he will not call a special session if the state’s budget is not balanced by the May 18 constitutional deadline. Pawlenty said he would balance the budget with line-item vetoes and by using his constitutional power to unallot. amendment that would require state entities Health study carries risk, patients under civil to post a public notice on their Web site at least commitment may not understand what they 10 days prior to a meeting. are signing up for, he said. Rep. Mark Buesgens (R-Jordan) said the Prohibiting drug trial participation Mary Weiss testified in a House committee bill might open the door to abuse of per People under state civil that her son, Dan Markingson, committed Signed diem payments. He unsuccessfully offered an commitment will be prohibited suicide when participating in a 2004 drug by from participating in a amendment that would have prevented those the trial. She voiced concerns to his case manager who choose to participate in meetings via governor psychiatric clinical drug trial about his deteriorating condition, but was electronic means from collecting per diem. while the order is in effect, unsuccessful in pulling him out of the drug “Joe Smith could be phoning it in, marking under a new law signed May 11 trial. “I have promised Dan that I will fight it as attendance to a meeting, sit on the phone by Gov. Tim Pawlenty. for the rights of the mentally ill until the day for a half an hour in his skivvies eating donuts The law, sponsored by Rep. Karla Bigham I die,” she said. “This bill will protect those and drinking coffee, and end up with $54 for (DFL-Cottage Grove) and Sen. Don Betzold in the future.” attendance at the meeting,” Buesgens said. (DFL-Fridley), will allow a patient to HF388/SF431*/CH58

House Majority Leader Tony Sertich (DFL- participate if the treating psychiatrist submits — P. Os t b e r g Chisholm) spoke against the amendment, an affidavit citing its benefit to the person. arguing that it would unfairly penalize board However, the treating psychiatrist must not Primarily rural for medical and agency members from rural areas who be the psychiatrist conducting the drug trial. Technical clarification for Signed have a harder time attending meetings. The law is effective Aug. 1, 2009. what constitutes a rural area in by — N. Bu s s e Many psychiatric drug trials already emergency medical variances is the say patients at risk of suicide or of hurting included in a new law signed others should not be recruited, Dr. Carl governor If you have Internet access, visit the Legislature’s May 12 by Gov. Tim Pawlenty. Elliott, professor at the Center for Bioethics Web page at: www.leg.mn Sponsored by Rep. Dave Olin at the University of Minnesota, told a House (DFL-Thief River Falls) and Sen. Gary Kubly committee. While participation in a drug (DFL-Granite Falls), the new law adds

May 15, 2009 Session Weekly 11 “primarily” to help define rural service areas. Paul Kohls (R-Victoria) was unsuccessful with the warranty discovery, but not more than It takes effect Aug. 1, 2009. his amendment to award attorney fees to the 12 years from when the warranty took effect. Olin said that the city of Cannon Falls builder if they are victorious in court. However, Bunn said, one subdivision in law applied for an ambulance hardship variance, — M. Co o k has a 10-year maximum, and some courts but was declined because its area overlaps into used that shorter time frame, thereby catching the metropolitan counties even though its Subsidized housing changes homeowners in the middle. area is primarily rural. The technical change A clarification to existing law could help Bunn said that a 2007 court decision went would help similar cities when applying for cities enforce subsidized housing contracts. against the original intent by saying all claims variances, he said. HF1670/SF1033*, sponsored by Rep. Carlos must be within 10 years, the stated warranty HF842/SF675*/CH70 Mariani (DFL-St. Paul) and Sen. John Marty on many home repairs, even though 12 years — P. Os t b e r g (DFL-Roseville), would clarify that cities have was always the intent of the 2004 state law. the right to enforce agreements with property Rep. Mark Buesgens (R-Jordan) owners who try to raise rents in publicly unsuccessfully tried to remove pending cases Housing subsidized housing. from the change. “It clarifies the right of cities to enforce a Countered Bunn: “If we don’t clear it up and Warranty enforcement contract with a housing owner or developer have it apply to those pending as well, we still Moving into their dream home has become where there has been a direct subsidy have legal confusion out there in our court a nightmare for some Minnesotans. provided, like a loan, bonds, tax subsidies, system.” They have found issues like mold or water etc. … in exchange for a promise to keep rents — M. Co o k intrusion that is accompanied by a price tag affordable,” Mariani explained. of tens or hundreds of thousands of dollars to Mariani said the bill is a response to a Human services repair. situation in a Twin Cities suburb where a In some cases, a builder is unwilling to fix developer “substantially” raised rents to the problem, forcing the homeowner to spend subsidized housing. Creating lifetime communities Partnerships labeled many more thousands of dollars to go through Speaking in support of the bill, Rep. Mark Signed “communities for a lifetime,” the legal process to enforce a new home or Buesgens (R-Jordan) said it is fair to expect by built with the aging population home improvement warranty. owners to abide by the contracts. the Rep. Marsha Swails (DFL-Woodbury) “If a developer’s going to feed at the public governor as their focus, may be designated and Sen. Kathy Saltzman (DFL-Woodbury) trough, then that developer shouldn’t be in the future. sponsor HF211*/SF170 that would make surprised that they’re going to be under some A new law, signed May 11 homeowners who successfully sue a builder or restrictions,” Buesgens said. by Gov. Tim Pawlenty, lays out plans for contractor for a warranty violation eligible to Passed 97-32 by the House on May 8, it now the Board on Aging to develop a process for receive reasonable attorney fees and any other returns to the Senate, where a different version requesting the designation of “communities costs related to the suit. Approved 80-51 May passed 57-8 on April 27. for a lifetime.” It takes effect Aug. 1, 2009. Sponsored by Rep. Paul Thissen (DFL-Mpls) 11 by the House, it was defeated 32-31 by the — N. Bu s s e Senate two days later. and Sen. Kathy Sheran (DFL-Mankato), the law defines the communities as partnerships of Supporters said that builders, contractors Statute of repose clarification small cities, counties, municipalities, charter and their insurance companies often drag Clarifying and updating a 2004 law cities and towns that extends supportive services out a case, hoping a homeowner will exhaust could have major implications for some to those age 65 and older to help them continue their financial resources and settle for less homeowners. to be contributing, civically engaged residents. than needed to repair their home. Sponsored by Rep. Julie Bunn (DFL-Lake “This would allow people to stay in their “Through no fault of their own, there are Elmo) and Sen. Sandy Rummel (DFL-White communities and have access to an array of many people who have purchased houses Bear Lake), HF412*/SF470 would clarify the services,” Thissen said. “We are facing this hoping to have a place where they can grow law’s intent regarding when a lawsuit for a coming age wave and it’s important we start their lives with their children, with their warranty violation must be brought. thinking about it.” neighbors, and instead something horrible Approved 77-54 by the House May 11, it was Under the law, “communities for a lifetime” happens,” Swails said. “The only problem that amended and passed 45-18 two days later by the would have to offer opportunities such as: the homeowners did was trust that the place Senate. The House passed the amended bill 79- • the ability to participate in the paid work- that they would be living was safe, was free of 46 May 14. It awaits action by the governor. force with flexible schedules and hours; things that would cause health problems and A statute of repose remains in the bill • recreation and wellness activities; free of defects.” so that no one can make a claim after 12 • a variety of affordable, accessible housing Swails said there are “hundreds” of cases years, but there are two different statutes of options; pending in Washington County courts limitations. • community-wide mobility and access to regarding home warranty enforcement. She “If the breach is discovered in years zero public transportation, including door-to- also said there are more than 360 places in through 10, the homeowner still has up to door assistance and weekend and evening state statute where a prevailing party can two years of statute of limitations to file the access; and receive attorney fees. claim once they’ve discovered and reported • an array of home and community-based Rep. Tom Emmer (R-Delano) said it is the breach,” Bunn said. “If they discover the services to support seniors’ options to not fair “to stack the deck on one side.” problem after year 10, they only now get one remain in an independent living setting. He unsuccessfully offered an amendment year to file the claim.” The board is to report to the Legislature by prohibiting attorney fees if a “good-faith The 2004 law requires a lawsuit to be Feb. 28, 2010, with recommendations on the effort” was made to fix the problem. Rep. brought within two years of the breach of

12 Session Weekly May 15, 2009 process designation and funding sources to Industry guidelines for brokers and life insurance implement the communities. providers. HF936*/SF839/CH60 Under the law, a broker or provider will need

— P. Os t b e r g Paying subcontractors promptly to be licensed by the state where the person Subcontractors and suppliers selling the policy resides. Also, a licensed Signed working on residential jobs now insurance producer in good standing will Humanities by have the same assurance as the be allowed to operate as a viatical settlement governor those working for commercial broker. The law also lays out grounds for a Conferencing legacy contractors that they’ll be paid license to be suspended, revoked or refusal Discussion on the state’s legacy is expected to in a timely manner. to issue or renew the license of the provider, be completed in conference committee during On May 12, Gov. Tim Pawlenty signed a law, broker or agent. the final days of the legislative session. sponsored by Rep. Larry Howes (R-Walker) The law is effective Aug. 1, 2009; but HF1231*/SF1651, sponsored by Rep. Mary and Sen. Linda Scheid (DFL-Brooklyn a viatical settlement provider, broker or Murphy (DFL-Hermantown) and Sen. Park), which strikes language excluding investment agent doing business in Minnesota Richard Cohen (DFL-St. Paul), would provide residential subcontractors and suppliers from could continue pending application approval that new sales tax revenues be deposited in four an existing law requiring prompt payment. by the commerce commissioner as long as the dedicated funds, under the legacy amendment Prime contractors or subcontractors who hire application is filed by Dec 31, 2009. adopted onto the state’s constitution last other subcontractors or suppliers must pay HF1719/SF1539*/CH62

November. It increases the state’s sales tax those they hire within 10 days from the date — L. Sc h u t z from 6.5 percent to 6.875 percent. payment is requested. The law also stipulates The four newly created funds will go toward interest to be paid on late payments. It takes Nonprofit insurer provisions wildlife habitat, clean water, parks and trails, effect Aug. 1, 2009. Certain organizations insuring Signed and arts and culture. Residential properties are single-family nonprofits and political by The bill is the result of weeks of testimony homes or multi-family buildings with up to subdivisions are not subject to about the potential impact of the money over four dwelling units, or developments with up the governor federal taxes. Gov. Tim Pawlenty the next 25 years, especially in the face of an to 13 attached units. signed a law May 9 that will economic downturn, Murphy said. It also HF1056*/SF638/CH66 extend the tax exemption provides a plan to guide the distribution of — K. Be r g g r e n enjoyed by these nonprofit insurers. the legacy amendment money over the 25-year Effective Aug. 1, 2009, the law makes life of the tax. The tax goes into effect July 1, Insurance provisions for these organizations, specifically 2009, and funding would become available at Nonprofit Insurance Trust, to incorporate. the beginning of 2010. Rep. Patti Fritz (DFL-Faribault) and Sen. Differences in fiscal years 2010-2011 Church benefits board as trustee Dan Sparks (DFL-Austin) sponsor the law. include: Some churches have benefits Signed HF1789/SF1611*/CH53 • $59.7 million in the House versus $75.7 boards organized to administer by — L. Sc h u t z or fund a retirement or other million in the Senate from the Outdoors the Heritage Fund to the Department of Natural benefits plan for employees of a governor STOLI changes become law Resources split among prairies; wetlands; specific church or an association A new law prohibits certain forests; and fish, game and wildlife habitat; of churches. Signed contractual arrangements and • $40.19 million in the House versus $33.9 A new law, signed May 7 by Gov. Tim by other activities relating to the million in the Senate from the Clean Wa- Pawlenty and effective the next day, expands the purchasing of a life insurance ter Fund to the Pollution Control Agency a board’s authority to act as a trustee over a governor policy that is essentially a wager for grants, drinking water protection, lawful trust. on someone’s life. Minnesota River Water Quality testing and Sponsored by Rep. Steve Simon (DFL-St. Effective with policies issued beginning May wastewater treatment monitoring; Louis Park) and Sen. Gary Kubly (DFL- 10, 2009, the law codifies insurable interests • $31.9 million in the House versus $36.3 Granite Falls), the law applies to trusts no and prohibits procurement of a policy on the million in the Senate from the Parks and matter when they were created. life of another individual unless the benefits Trails Fund to the DNR for grants and the HF1823/SF1754*/CH43 are payable to the insured, representatives of the state parks and trails legacy; — L. Sc h u t z insured’s estate or a person who had an insurable • $25.37 million in the House versus $43.9 interest at the time the policy was issued. million in the Senate from the Clean Water Sale of life insurance policies “We want to protect life insurance interests, Fund to the Public Facilities Authority for Sometimes people who Signed and not turn it into a financial investment,” grants among small community wastewater purchase a life insurance policy by said Rep. Kate Knuth (DFL-New Brighton), treatment technical assistance and con- sell it to a third party before the the who sponsors the law with Sen. Linda Scheid struction and phosphorus reduction; and governor policy matures. Called a viatical (DFL-Brooklyn Park). • $20.9 million in the House versus $25 settlement, a new law sponsored In a traditional life settlement, a person million in the Senate from the Arts and by Rep. Joe Atkins (DFL-Inver who owns a life insurance policy but no longer Cultural Heritage Fund to the Minnesota Grove Heights) and Sen. Chris Gerlach needs it sells the policy for an amount less than Historical Society for grants, assistance to (R-Apple Valley), modifies statutes regulating the death benefit. local historical societies and the Minnesota the practice. Under stranger-oriented or -initiated life History Educational Network. Signed by Gov. Tim Pawlenty May 12, insurance, a third-party investor or hedge — S. He g m a n the law lays out definitions and licensing fund with no relationship to an individual

May 15, 2009 Session Weekly 13 initiates the policy purchase by paying the Law practicing deputy sheriffs Emmer said of the provision, which he said premiums and later buying the policies, Deputy sheriffs would be allowed to would reduce government accountability. thereby profiting upon the death of the practice law. Sponsored by Rep. John Lesch Nelson countered that removing the insured. These are often directed toward (DFL-St. Paul) and Sen. Ellen Anderson newspaper publishing requirement will save senior citizens because the sooner the person (DFL-St. Paul), HF348*/SF297 would remove counties money. dies, the more the speculator profits. a prohibition of a deputy sheriff practicing The bill now goes to the Senate, where Sen. This is in violation of the insurable interest law, provided the deputy has the appointing Ann Rest (DFL-New Hope) is the sponsor. law designed to ensure that a person buying a life sheriff’s approval. — N. Bu s s e insurance policy has an economic interest in the Approved 127-4 by the House May 8, it continued life — not death — of the insured. awaits Senate action. Safety The law calls for a four-year prohibition “This was brought to me by several deputy on buying STOLI, with the stipulation that sheriffs who did go to law school and wanted Fallen Firefighters Memorial Day an investor could not buy those policies if to practice outside their jurisdiction for cases Peace officers and members of the armed there were signs of STOLI during that time. that didn’t affect them in their deputy sheriff forces who lose their lives in the line of duty It also provides for a four-year rebuttable job,” Lesch said. are honored on certain days of the year; presumption in civil cases. “That should be An assistant St. Paul city attorney, Lesch said now, firefighters might have their own day of enough to stop STOLI,” Scheid said. he has sometimes performed criminal defense remembrance. A way for a representative of an insured attorney cases in another jurisdiction. Rep. Mike Obermueller (DFL-Eagan) and individual’s estate to recovery policy benefits — M. Co o k Sen. Jim Carlson (DFL-Eagan) sponsor HF422/ paid resulting from a STOLI agreement is also SF237* that would designate the first Sunday in the law. Local Government in October as Fallen Firefighters Memorial HF704/SF166*/CH52 Day. The bill specifies that Minnesota and U.S. — M. Co o k flags on the Capitol grounds must be flown at Mandate relief bill passed half-staff on that day. Law Local governments most likely will receive The House passed the bill 133-0 on May 12 less money from Legislature this session; without debate. Having been passed 62-0 by however, they would also have fewer state the Senate on March 9, the bill is now headed Property interest disclaimers mandates to pay for, under a bill passed by for Gov. Tim Pawlenty’s desk. A new law combines disclaimer the House May 11. Signed Obermueller said there are 187 known statutes to ease use for Sponsored by Rep. Michael Nelson (DFL- by firefighter line-of-duty deaths since the practitioners and the public. the Brooklyn Park), HF1849 would provide establishment of the state’s first fire department governor Sponsored by Rep. Melissa mandate relief to local governments by in Minneapolis in 1881. Hortman (DFL-Brooklyn Park) eliminating a variety of statutory requirements. “This bill is a great opportunity to honor and Sen. Linda Scheid (DFL- The House voted 108-21 to approve the the men and women who have lost their lives Brooklyn Park), supporters said it most measure, which would make a number of as well as those who are currently serving us,” frequently would be used for tax purposes. changes, including: Obermueller said. Signed by Gov. Tim Pawlenty May 12, it • requiring that any state agency rule changes — N. Bu s s e takes effect Jan. 1, 2010. that affect local governments take effect on There are two disclaimers currently on state one of two set effective dates; No laser pointing at planes books: one that handles them during lifetime • allowing local governments to use best-value Knowingly pointing a laser at and another for those that inherit property contracting practices more than just twice Signed an aircraft could result in a after someone dies. a year, as currently proscribed by law; by prison sentence. The law also updates some rules in the • allowing county commissioners to reduce the Signed May 12 by Gov. Tim disclaimer area. their own salaries at any time; governor Pawlenty, a new law would make A primary change is clarification that • allowing townships to recover the full cost the action a gross misdemeanor someone can disclaim an interest even if it of employing “fence viewers” to help settle in Minnesota, punishable by up to a year in is not within the nine-month limit normally private land disputes; prison and a $3,000 fine. It takes effect Aug. required for tax purposes. • eliminating minimum salary requirements 1, 2009. Other changes include: allowing disclaimers for sheriffs; and Federal law is designed to secure larger air of future interests, allowing disclaimers of • striking a cap on booking fees charged to carriers, leaving a loophole and forcing states jointly held property, allowing a trustee to jailed individuals and allowing counties to or local municipalities to prohibit discharging disclaim property that might be scheduled to recover the actual costs of booking. a laser into the cockpit of an aircraft. be distributed to a trust, allowing disclaimers “We’re passing a lot of cuts in the last few Jim Englin, a state patrol pilot, told at least of powers of appointment and other powers days here to local governments; this is a way two House committees that patrol pilots someone might hold over another’s trust and of trying to relieve some of the mandates they suffered three laser illumination events in eliminates the recording of disclaimers in have to save some costs,” Nelson said. 2008. Arrests were made in two cases, but district court. Rep. Tom Emmer (R-Delano) criticized a charges were never brought forth. Any disclaimer involving real estate would provision that would ease requirements on When the laser hits an aircraft windshield, still need to comply with real estate recording local governments to publish information on it turns the plexiglass opaque, blinding the statutes and recoding requirements. contracts up for bid in local newspapers. pilot. Englin said it is like a bright flash bulb HF2082/SF1810*/CH67 “We’re again making advantages for going off directly in your eyes. — M. Co o k government at the expense of the taxpayer,” Lasers that run on AAA batteries can be

14 Session Weekly May 15, 2009 purchased at many office supply stores or big box mandates and provides local agencies with • commercial retailers cannot sell a toy de- retailers. Some have a range of up to 10 miles. needed assistance in emergency times. signed for children under age 12 that has The law exempts search and rescue situations The law increases from 12 to 24 hours been recalled for safety reasons; when the person on the ground is indicating the time an officer may arrest a person who • public employers cannot consider an appli- their location. the officer has probable cause to believe cant’s criminal background history prior Rep. Rick Hansen (DFL-South St. Paul) and committed domestic abuse, expands the to an interview; Senate President James Metzen (DFL-South ability of judicial districts to create domestic • the state’s trespass law is expanded to in- St. Paul) sponsor the law. fatality review teams and requires prosecutors clude crossing into or entering any public HF1097/SF1408*/CH73 to notify victims of criminal sexual conduct or private area lawfully cordoned off by a

— M. Co o k about civil protection orders. peace officer; and A court is permitted to order a sentence • a working group is created to review Policy bill signed into law beyond what is specified in the sentencing changes to the state’s laws and policies on Predatory offenders will be guidelines grid based on an aggravating factor DWI offenders. Signed unable to use electronic devices arising from the same course of conduct; a HF1301*/SF993/CH59 by state policy to eliminate racial, gender and to sexually solicit children, and — M. Co o k the ethnic fairness barriers in the courts is set governor people required to register as a predatory offender will be forth; the authority to appoint a referee to act Taxes prohibited from accessing in conciliation court is expanded; and a license social networking Web sites, instant messaging reinstatement diversion pilot program can be Tax committee blur and chat room programs. created for specified persons charged with The tax conference committee has been These are provisions of the omnibus driving after a suspension or revocation. working late into the night, seen one tax bill public safety policy law signed May 12 by the Other provisions include: receive a governor’s veto and has put together governor. Most of the law is effective July 1, • businesses that sell over-the-counter meth- a non-controversial policy bill. With time 2009, or Aug. 1, 2009. amphetamine precursor drugs must retain running out on the session, its work still isn’t Sponsored by Rep. Debra Hilstrom (DFL- a sale log for three years and make it avail- done. Brooklyn Center) and Sen. Mee Moua (DFL- able for inspection by law enforcement at HF885*/SF681, sponsored by Rep. Ann St. Paul), the law also eases state agency all reasonable times; Lenczewski (DFL-Bloomington) and Sen.

Su i c i d e Pr e v e n t i o n

p h o t o b y t o m o l m s c h e i d Stephanie Campbell, Molly Schloesser and Anna Holicky from Le Center High School, clockwise from top left, Amber Palmquist from Cleveland High School and Melissa Warner, Stephanie St. John, Youth Board Advisor Klea Brewton-Fitzgerald, Elizabeth Koble and Heidi Juncewski from Mankato West High School add thoughts and feelings of those that may attempt suicide to a banner to be attached to a “Community of Caring Pole” that was part of the Yellow Ribbon Suicide Prevention Rally in the Rotunda May 12.

May 15, 2009 Session Weekly 15 Transportation

Housekeeping bill becomes law A new law modifies and Signed updates a number of Department by of Transportation provisions, the governor while providing some technical and clarifying changes. It clarifies, but does not change, some language regarding truck size and weight regulations. A MnDOT representative previously said one of the truck weight statutes has been problematic since the 1970s. Beginning with trailers manufactured after Jan. 11, 2011, towed implements of husbandry that have brakes, must also have “break-away brakes,” so that the implement automatically brakes if it becomes detached from the vehicle towing it. MnDOT gives waivers for intrastate drivers p h o t o b y a n d r e w v o n b a n k who have certain medical conditions, such Rep. Tom Emmer and Rep. Ann Lenczewski debate a tax bill May 8 on the House floor. as diabetes. A three-year bar currently exists against giving these drivers a waiver if their Tom Bakk (DFL-Cook), which would have HF1298*/SF1257, an omnibus public license is suspended, canceled or revoked for any raised $1 billion in taxes in the 2010-2011 finance bill, also sponsored by Lenczewski reason. Under the law, the three-year waiting biennium was vetoed by Gov. Tim Pawlenty and Bakk, awaits gubernatorial action. It period only applies in cases of driving privilege May 8, less than six hours after receiving was amended and passed 54-12 by the Senate removal due to driving-related behavior. legislative approval. May 13 and repassed 125-7 by the House later Vehicles operating under a forest products Supporters said the bill was an attempt to that day. The Senate added as many technical permit will be permitted to operate a vehicle or save cuts to schools, hospitals and nursing policy and non-controversial tax provisions as combination of vehicles on unpaved roads when homes by creating a new tax bracket for the possible, Lenczewski said. taking the most direct route to a paved highway state’s top earners, increasing alcohol taxes It also includes as much federal tax without route designation by MnDOT. and adding a tax for excessive interest rates. conformity as the state can afford that Sponsored by Rep. Terry Morrow (DFL-St. The anticipated revenue raised is $500 Congress has adopted since HF95, the House’s Peter) and Sen. Jim Carlson (DFL-Eagan), million less than in HF2323*/SF2074, the federal conformity bill, was signed into law it was signed May 12 by Gov. Tim Pawlenty. omnibus tax bill, also sponsored by Lenczewski earlier in the session, Lenczewski said. Most of the law takes effect Aug. 1, 2009. and Bakk. It is currently still in a conference Other inclusions are: disaster relief HF1816*/SF1876/CH64 committee. The governor’s budget proposes provisions for a St. Charles fire; home — M. Co o k using $1 billion in accounting shifts, and construction assistance for the flood-ravaged tobacco appropriation bonds that would have Red River Valley; and an emergency debt Possible lowered speed limit to be repaid over 20 years. situation is provided for cities and counties Beginning Aug. 1, 2009, speed Signed Of the $1 billion expected to be raised in that may lose local government aid, market limits on some roads could by HF885, $585.7 million would go into an account value homestead credit and county program drop by as much as 20 mph. for E-12 education; $287.5 million for nursing aid due to unallotment. the governor A new law will change the homes and long-term care; $141.1 million for “This is the lifeboat, if you will, of the tax speed limit to 35 mph along rural hospitals and $4.6 million for tax compliance. conference committee,” said House Minority residential districts where visible A May 12 motion by Rep. Kurt Zellers Leader Marty Seifert (R-Marshall), a tax bill homes are spaced 300 feet or less for a distance (R-Maple Grove) to override the governor’s conferee. “I appreciate that all of the really of at least one-quarter mile along those roads, veto was tabled by House Majority Leader controversial items were taken out. And I if adopted by the local road authority. Tony Sertich (DFL-Chisholm), who called the appreciate that members who had problems The change comes from a speed limit study motion a “stunt” and “premature.” with certain things were allowed to have input. task force formed by the Department of “We’re making progress,” Sertich said of I would urge a yes vote, and I never imagined I Transportation. It addresses areas that used talks with the governor. “I guess I look at the would say that on a tax bill this year.” to be primarily rural and are still posted at 55 glass as half full. I would see a veto override — S. He g m a n mph. Because these areas are now developed, as an option of last resort.” the speed is deemed to be too fast. “We’re not gonna wait until the wee hours Sponsored by Rep. Peggy Scott (R-Andover) of the last night of the last day to come down To find out who represents you at the Capitol . . . and Sen. Lisa Fobbe (DFL-Zimmerman), the here and roll the dice,” Zellers countered. “If Call House Public Information Services law also narrows the definition of a “residential we’re going to vote to override, let’s do it here at 651-296-2146 or 800-657-3550 roadway” and clarifies that an “urban district” and now. If we don’t have the votes to override, let’s get back to the budget.” Highlights continued on page 23

16 Session Weekly May 15, 2009 AT ISSUE: E-12 Education

E-12 education bill that might have been Funding held steady with no shifts proposed, but no Minnesota Miracle

By Kr i s Be r g g r e n the governor’s recommendations and other o shifts. No cuts. No new Minnesota Miracle reforms he approves. These include significant charter school changes and $750,000 each to — yet. the Reading Corps and the Math and Science That’s the good and bad news regarding the Teacher Centers, to be funded by reducing N the education department budget by about 3 E-12 education finance bill, HF2, as far as its sponsor, percent, or $1.5 million. House K-12 Education Finance Division Chairwoman Other reforms include new testing and accountability measures that provide better Rep. Mindy Greiling (DFL-Roseville), is concerned. feedback for classroom teachers and more information about student performance. Significant and hard-won special education changes and mandate reductions are included, As amended by the conference committee, governor has steadily opposed, cuts to schools as is a provision allowing school districts to the bill that funds school districts and could still be forthcoming. create site-governed schools, whereby teachers charter schools, early learning programs, “That’s the whole problem,” she said. and parents create charter-like schools within special education services and the Education districts. Department — and comprises nearly 40 NMM out A highly disputed alternative path to percent of the state’s budget — was passed Greiling is “bitterly disappointed” that graduation would be created for students May 13 by the House 85-49 and the Senate, the education funding reform proposal who cannot pass the Graduation Required 49-16. It awaits action by the governor. known as the New Minnesota Miracle was Assessment for Diploma math test while the Greiling is grateful the bill would hold not adopted. These provisions would have role of high stakes testing is evaluated over the education funding steady at $13.7 billion for relieved property taxpayers of roughly $800 next five years. the 2010-2011 biennium, and $14.14 billion the million to $1 billion in levies in favor of state A Quality Rating and Improvement System following biennium, as originally proposed by aid; created several measures to make funding for child care facilities and a study of state the House. It also adopts the Senate’s position more equitable among all school districts; services for young children, to be developed to exclude House accounting shifts that would and increased basic per pupil revenue from by the departments of education and human have delayed $1.8 billion in state aid payments $5,124 to $7,500. It featured an “innovation services, is also included. to school districts. revenue” provision that would have included Republicans expressed concern that the bill two of the governor’s priorities: taking Late-night deal nixed doesn’t increase money for schools as Gov. Q comp statewide and a “Pay for Progress” Tim Pawlenty proposes. Shared services, an idea the House, Senate incentive that would give districts more and governor all like, turned out to be “the “We know there’s not enough money in money depending on students’ test scores. here,” responded Greiling, who co-chaired straw that broke the camel’s back,” Greiling None were intended to take effect until said at a May 13 conference committee hear- the conference committee with Sen. LeRoy 2014. Stumpf (DFL-Plummer). “Schools are cutting ing, referring to a near-deal reached after because we haven’t kept up with inflation conferees paired up to negotiate various provi- since 1991.” She quoted a letter from the Reforms don’t satisfy all sions in the wee hours the previous day. Minnesota Rural Education Association: Although Rep. Pat Garofalo (R-Farmington) That bill would have included key “This conference report is the best case budget supported the House position as a conference Senate positions such as pre-kindergarten scenario schools are looking at in this historic committee member, he didn’t sign the “scholarship allowances” for low-income budget deficit session.” report. parents and a consolidated levy that the Senate Although the bill includes use of $500 “There’s a big gap between where this advocated, in exchange for the House’s New million in federal stabilization funds from bill is and where it could be,” he said. “It Minnesota Miracle. Funding would have the American Recovery and Reinvestment lacks mandate relief, cuts $185 million from come from home school mandate reduction, Act of 2009 — more than the $275.6 million the governor’s education budget and lacks cuts to agencies, state academies and the the House had proposed — Greiling said she reform.” education department, plus the governor’s Greiling said the bill does include some of fears that without new tax revenue, which the E-12 continued on page 22

May 15, 2009 Session Weekly 17 AT ISSUE: Health & Human Services

More compromise, more reductions Cuts in health and human services finance bill called ‘painful’

By Pa t t y Os t b e r g programs, but it does not cut primary care ep. Thomas Huntley (DFL-Duluth) said there providers such as pediatricians, family practice physicians and general internal medicine. are “500 million reasons to vote against it,” “There was tremendous pressure on us to referencing the monetary cuts in the omnibus protect hospitals,” Huntley said, noting the 3 R percent cut to hospitals is 1/17th of what the health and human services finance bill conference governor wanted. Many of them are “in the committee report. Passed 80-51 by the House May 11, red,” and the governor’s proposal would have put more of them in the red, he added. and 47-18 by the Senate, it now goes to the governor. Specialists would be cut by about 5 percent Sen. Linda Berglin (DFL-Mpls) is the Senate sponsor. in the bill. While the cuts will hurt, it’s a push to help change the way the state provides medical care and move things toward managing chronic diseases through primary care providers, Huntley said. When combined with a 7 percent ($600 Rep. Paul Kohls (R-Victoria) said the Other spending reductions include delayed million) target below the forecast for the report is deceiving because the cuts are rebasing for nursing homes; a 2.58 percent biennium, and an estimated $90 million loss actually reductions from previously proposed cut to long-term care facilities; reducing for health care providers in federal money, increases. He said the bill increases spending public assistance dental services; and limiting Huntley said HF1362*/SF695 adds up to a by approximately 20 percent from the current personal care attendant hours to 310 per more than a $1 billion hit. He said Gov. Tim biennium. month/per individual. Pawlenty sought a $1.5 billion cut that would A personal care attendant recipient must have cost providers $3.5 billion. Cuts and investments need help with at least one activity of daily “Every one of these cuts is painful and will The report calls for a 3 percent cut to living to qualify for public assistance. The hurt somebody,” Huntley said. “We tried to providers of Medical Assistance and other governor’s proposal required at least two minimize the damage best we could.” activities of daily living to be needed for services. Activities of daily living include helping dress, groom, bathe and toileting. The disability community services comprise about 29 percent of the state health and human services budget, and were cut by that percent, Huntley said. Money would be invested to meet the federal Children’s Health Insurance Program Reauthorization Act of 2009 that could result in an additional $20 million to increase the number of children on public health insurance by easing the enrollment process, said Huntley. It would add an additional 22,000 children to MinnesotaCare, but they are children that already qualify but for some reason are not on the program, he said. Another $4 million would be invested to meet provisions of, and receive funding from,

p h o t o b y a n d r e w v o n b a n k the federal Health Information Technology Co-chairs Rep. Thomas Huntley and Sen. Linda Berglin confer during the May 12 omnibus health and human services finance conference committee meeting. Health & Human continued on page 22

18 Session Weekly May 15, 2009 AT ISSUE: Higher Education

level dental practitioners called “dental therapists,” with the goal of increasing access Higher ed funding approved to dental care especially in rural areas. The Federal stabilization funds used to spare deep cuts provisions, which were not in the House version of the bill, also spell out educational and licensure requirements. House language that would have prohibited By Ni c k Bu s s e MnSCU from filling vacant administrative and managerial positions, and from raising tate funding for higher education would administrator salaries, was removed in order receive a 2 percent total cut, under a bill to reach a compromise with the Senate. awaiting action by Gov. Tim Pawlenty. Similarly, House provisions directing the S university not to create new administrative positions or increase administrative salaries were also removed. Also deleted was a House Sponsored by Rep. Tom Rukavina (DFL- opposed, was taken out in conference committee. proposal to have the Legislature, rather than Virginia) and Sen. Sandy Pappas (DFL-St. Instead, the program, which focuses on low- the governor, appoint members to the MnSCU Paul), SF2083 would fund the Office of Higher income students who achieve good grades in Board of Trustees. Education, the University of Minnesota and high school, will receive a 54 percent reduction A Rukavina proposal to force college the Minnesota State Colleges and Universities from its forecasted biennial base. bookstores to offer clothing made in the system for the 2010-11 biennium. Rukavina reiterated his warning that state United States, “to the extent possible,” is As amended by a conference committee, higher education programs will face a dire included in the language. Institutions are also the bill includes budget reductions of financial situation in the 2012-13 biennium, required to report back to the Legislature on 0.2 percent for OHE and 2 percent each for the when federal stimulus funds will no longer be their efforts to comply with the provision. university and for MnSCU. The cuts would available to soften the impact of budget cuts. A controversial provision that would likely have been much deeper were it not for “If we don’t do something to raise revenue, prohibit the university from offering alcoholic federal stabilization funds, which the bill uses there are going to be huge layoffs and programs beverages for sale at a sports arena or stadium to plug much of the biennial budget gap. are going to be affected … and tuition could unless it offers them throughout the entire “I think we came back with a really be increased dramatically.” stadium, and not just in premium seating good higher education bill, under the areas, is also in the bill. circumstances,” Rukavina said on the House A provision that would ban the use of state Compromises on policy funds for research involving human cloning floor May 13. A Senate proposal adopted in conference also made the final cut. The House voted 103-31 to pass the bill as committee would create a new class of mid- amended by conference; the Senate passed it 54-12 earlier in the day. Under the conference report, tuition increases would be capped at no more than 3 percent per year at MnSCU institutions — an increase over the House’s original proposal of 2 percent per year. The bill also suggests a no more than $300 per year increase at the university. Senate conferees opposed the tuition caps, arguing they amounted to micromanaging, but Rukavina insisted on keeping them in the bill as a way to help students in trying economic times. Student financial aid would get a boost under the bill, which would raise the four- year tuition maximum in the state grant program as well as the maximum allowance for living and miscellaneous expenses. Work- study would also get a $5 million boost — something Rukavina said hasn’t happened in more than a decade. A House proposal to repeal the Achieve p h o t o b y t o m o l m s c h e i d scholarship program, which Senate conferees The omnibus higher education finance conference committee meets May 12.

May 15, 2009 Session Weekly 19 AT ISSUE: State Government

Budget cuts for state government Conference committee removes some controversy from finance bill

By Ni c k Bu s s e according to the DFL majority,” said Rep. ccording to its sponsor, the state government Mark Buesgens (R-Jordan), noting that the 3 percent budget cuts for the Legislature and finance bill now awaiting action by Gov. Tim governor’s office are less than the cuts to other Pawlenty has one important virtue: it has “the agencies. A Rep. Keith Downey (R-Edina), the bill’s benefits of being a really dull bill.” lone House Republican conferee, expressed support for the bill, arguing it represented a good compromise that funded some important information technology initiatives “When the bill went out of here (to for the 2010-2011 biennium. and accountability measures. conference committee), it had some Under the bill, the Legislature and the “I do think that in a really tough budget controversial positions such as domestic governor’s office would receive 3 percent cuts year, we did find a way … to really advance partner benefits, cuts to gubernatorial from their forecasted base funding. The Office some strategic initiatives,” Downey said. appointees — and those have all been removed of the State Auditor would not see any funding The bill includes funding, in whole or in part, from the bill,” said Rep. Phyllis Kahn (DFL- reduction, while the Office of the Secretary of for completion of an integrated tax system for Mpls). State and the Office of the Attorney General the Revenue Department, replacement of the What remains in the conference report on would be reduced 5 percent and 4.5 percent, state’s accounting and procurement system, SF2082*/HF1781, sponsored by Kahn and respectively. Most executive agencies funded and preliminary planning to consolidate Sen. Don Betzold (DFL-Fridley) is a series of in the bill would get 5 percent cuts. the state’s data centers. It also includes a budget cuts and new measures to strengthen The funding provided for in the bill governor’s initiative to establish a statewide accountability in state government. accounts for approximately 2.8 percent of electronic licensing system for commercial The bill would fund the Legislature, the the total state budget; however, at least one and professional licenses, and raises certain state’s constitutional offices and several state lawmaker said the cuts in the bill should have business fees to fund it. agencies, including Minnesota Management been deeper. A number of provisions designed to and Budget and the Department of Revenue “We’re not going to share in the pain, strengthen accountability in state government are included in the bill. A provision sponsored by Rep. Ryan Winkler (DFL-Golden Valley) would clarify that knowingly misappropriating state funds is a gross misdemeanor and grounds for job termination; currently, statutes are unclear on whether misusing state funds is actually a crime. Legislation sponsored by Winkler and Downey that would strengthen the state’s internal financial controls has been included in the bill. The provisions would require Minnesota Management and Budget to take responsibility for internal controls across the executive branch, and also direct the Legislative Audit Commission to make recommendations on improving internal controls. A provision that would have created a new financial controls council for the state was not included in the conference report.

p h o t o b y a n d r e w v o n b a n k Provisions sponsored by Rep. Steve Simon Sen. Don Betzold and Rep. Phyllis Kahn share a light moment during a May 1 meeting of the omnibus state government finance conference committee. State Government continued on page 22

20 Session Weekly May 15, 2009 AT ISSUE: Public Safety

Courts and corrections backing Public safety finance bill awaits gubernatorial action

“We did not fund the department to the By Mi k e Co o k level that the governor had recommended. We actually increased base funding to the onferees’ final judgment on the omnibus public Department of Corrections by $3.6 million. I safety finance bill was to reduce funding for don’t know of any other department or agency many areas and allow fee increases for some in the state of Minnesota that got increases,” C Paymar said. court activity. The governor’s proposal includes a more than $20 million deficiency request that conferees believe should have been in the annual budget deficiency request put forth Now it’s time for Gov. Tim Pawlenty to Sponsored by Paymar and Sen. Linda earlier this session by the governor. render his verdict. Higgins (DFL-Mpls), HF1657/SF802* was To help with department efficiencies, the “We had to make over $61 million in passed 85-45 by the House May 12, one day bill calls for a 1 percent per diem decrease, or cuts. We tried to be very strategic in our after the Senate did the same 36-30. 89 cents per day per prisoner. approach, and I think we accomplished that “It’s not a perfect bill, but it’s, I think, one “We offered them a whole list of suggestions goal while preserving public safety,” said Rep. we can go forward with in the state,” Higgins that we think the department can implement to Michael Paymar (DFL-St. Paul). “We also said. reduce their costs, but we also said they cannot, have significant and extensive reforms that Coming in at $2.02 billion, including $1.81 in this process, lay off correctional officers or we are recommending to the Department billion from the General Fund, the bill cuts a reduce treatment beds,” Paymar said. of Corrections, as well as the Department of wide swath of areas including courts, human A Corrections Strategic Management and Public Safety and the courts.” The conference rights, victim services and public safety. Operations Advisory Task Force is established committee removed many provisions Pawlenty However, Paymar said the Corrections to look at ways the department can improve found objectionable. Department would get a base bump. efficiencies. One efficiency in the bill is a 20 percent reduction in the department’s car fleet — more than 750 now — by Jan. 1, 2010. The bill calls for the elimination of the short-term offender program that allows offenders with less than six months remaining on their sentence to serve that time in a local jail. This would take effect with those sentenced on or after July 1, 2009. Pawlenty included this in his budget proposal. “It’ll be a savings to the counties,” Paymar said.

Courts All courts face a biennial funding decrease, but some of that is to be offset by $41.6 million in fee increases. “We cut the courts by only 0.85 percent,” Paymar said. “I don’t believe we’ll have to have any layoffs of public defenders. I have not heard any criticism from the courts about this bill. I think we met their expectations, and exceeded them in many respects.” Some Republicans, including House Minority p h o t o b y a n d r e w v o n b a n k Leader Marty Seifert (R-Marshall) and Rep. Paul Co-chairs Rep. Michael Paymar and Sen. Linda Higgins listen to testimony May 1 during a meeting of the omnibus public safety finance conference committee. Public Safety continued on page 22

May 15, 2009 Session Weekly 21 E-12 continued from page 17 such as information technology with other appealed to the governor more than the one districts, who would be paid a percentage he’ll see. recommendation to cap and freeze integration of any savings. The House version proposed However, when a shared services amendment revenue. a Web site, coordinated by the Office of was added to a different conference committee A compromise shared services provision the State Auditor, to congregate ideas and report, that issue was taken off the table would have been included. The original Senate resources from school districts and regional and the education agreement disintegrated. version would have required school districts cooperatives already sharing services. to use a consultant to find savings through Greiling suggested that bill would have cooperative purchasing and sharing services

Health & Human continued from page 18 omnibus health and human services finance supports some of the most vulnerable in the bill. “(It is) what we need to do if we don’t get state. for Economic and Clinical Health Act that some additional revenue to balance the budget,” Mary Krinkie, vice president of the is designed to help the state convert health Berglin said. The cuts would come from up Minnesota Hospital Association, said an records to electronic form. to 25 percent additional rate reductions to additional cut would make a dramatic In an effort to get a jump start on a second long-term care facilities, nursing homes and difference in the types of services hospitals proposal should the governor veto the first, inpatient hospital reimbursement rates. would be able to provide. Hospitals would the omnibus health and human services Making severe cuts to hospitals could cause have cut services such as mental health, finance conference committee took more some of them to go out of business. It’s like dialysis and obstetric services, limit hours and public testimony May 12-13 on more potential a dangerous game of Jenga, said Cathy Barr, operations for emergency rooms, and reduce human services cuts. chief executive officer for Bethesda Hospital in services to the 60 nursing homes attached to Huntley and Berglin presented a proposal St. Paul. “If you take Bethesda out of the stack, hospitals in the state, she said. to cut an additional $400 million from the what will happen?” The specialty hospital — As s i s t a n t Ed i t o r Mi k e Co o k contributed t o t h i s s t o r y .

State Government continued from page 20 • requiring municipalities to consider using • establishing a central Geospatial Informa- the state’s cooperative purchasing venture tion Office within the Department of Ad- (DFL-St. Louis Park) that would establish for contracts larger than $25,000; ministration that consolidates a number a false claims act for Minnesota are also • officially changing the name of the Depart- of existing state geographic information included. The act would impose penalties ment of Finance to the Department of services; and on those who make false claims against the Management and Budget, which may also • requiring occupants of state-owned state, allow the state to recover damages, and be referred to as Minnesota Management buildings to try to turn off building lights establish protections for whistleblowers. and Budget; between midnight and dawn during Other policy provisions include: • requiring the creation of a Web site with bird migration seasons (the “bird-safe • granting preferences to certain veteran- a searchable database of information buildings” provision). owned small businesses in regard to bids on state contracts, expenditures and on state contracts; appropriations;

Public Safety continued from page 21 Other court provisions include an increase Other bill provisions of the attorney registration fee to $75 to help • ensures that victim’s services programs Kohls (R-Victoria), wondered how the fee total fund public defenders, the public defender administered by the Office of Justice Pro- came about when the House proposal was $28 co-pay is increased from $28 to $75 (can be grams must not be reduced by more than 3 million and the Senate’s $34 million. waived by the court), referees can serve as percent from current biennium funding; “You don’t come back with compromises judges of conciliation court in all judicial • counties could develop a revocation center that are bigger than either of the first two districts, a transfer of money from local drug pilot project that could house offenders bargaining positions,” Seifert said. “Of course abuse prevention programs to juvenile drug facing probation revocation, rather than the court system wants it because the courts court programs and an annual 10 percent sending them to prison; get the money.” interest rate must be put on a judgment or an • places a 90-day incarceration cap on a first- Paymar countered that when the Republicans award over $50,000. time supervised release violator following were in charge in 2003, Pawlenty signed $98 Sen. Ron Latz (DFL-St. Louis Park) noted a revocation of supervised release; and million in public safety fees into law. it is often beneficial for the defendant to hold • by Jan. 1, 2010, the Public Safety Department He said court representatives said they their money in an account earning greater is to reduce its non-investigative car fleet “could live with” the fees, and that the interest instead of paying their debt. “We by at least 5 percent. This excludes the state Minnesota Bar Association did not express believe through this measure that we will patrol. opposition. “While nobody likes to raise fees, reduce some of the delays that defendants we felt like in these economic times that this currently use in paying the judgment,” was the right thing to do.” Paymar said.

22 Session Weekly May 15, 2009 First Reading continued from page 4 “I listen a lot more than I talk. It’s fascinating last minute to strike the right deal,” Simon said. to see the interplay between leaders of the “At least when it happens the sides are better crystal clear who wanted what.” executive branch and legislative branch,” informed and better understand each other.” However, the lead House conferee on Simon said.”My philosophy after three terms Kohls said the commission is a tool that the agriculture and veterans finance bill is that the House and Senate do not collaborate has its place. “We had some good discussion conference committee had praises for the enough. This was a way to do so consistently, about whether we should go down the path openness, calling it an “experiment to do the starting early in the session.” we’re going down or approach it from a 180- negotiating in the room,” said Rep. Al Juhnke He said that shouldn’t bolster the case made degree angle,” he said. “I’ve certainly used (DFL-Willmar). “I think it was a neat process, by opponents that DFL leaders have had more the commission as a way to advocate for a and one I’ve not seen in my 13 years here.” than enough time to agree on targets. structural framework for how we get out of Kohls and Simon say their participation has “There’s a natural incentive to wait until the here.” been meaningful.

Highlights continued from page 16 have a supplemental child restraint law. Current lower the requirement to age 5. law, crafted 26 years ago before booster seats It would be a petty misdemeanor with the can be on a city street or town road. were developed, states a child passenger restraint driver fined up to $50. The fine would be It was signed May 9 by Gov. Tim Pawlenty. system is required for children under age 4. waived if the driver proves within 14 days that HF1421/SF1467*/CH56 Hortman said that an improperly fitted the operator has purchased a system for use. — M. Co o k adult safety belt could cause the lap belt to An amendment successfully offered by Rep. ride up over the stomach and the shoulder Mary Kiffmeyer (R-Big Lake), and amended Booster seat requirements belt to cut across the neck. If the shoulder by Rep. Tony Cornish (R-Good Thunder), A plan to keep some of the state’s youngest strap is uncomfortable, children often place states that “a peace officer may provide to the residents safer awaits gubernatorial action. it behind their backs, further defeating the violator information on obtaining a free or Sponsored by Rep. Melissa Hortman safety benefits of the system. low-cost child passenger restraint system.” (DFL-Brooklyn Park) and Sen. Jim Carlson Supporters said a backless booster seat, which Approval of the law could also garner (DFL-Eagan), HF267/SF99* would require raises a child so the belt properly goes across the approximately $140,000 in federal funds. that youth be in a restraint system until their shoulders and hips, costs less than $20. The National Highway Traffic Safety eighth birthday or they reach 4 feet 9 inches Hortman said the height requirement Administration awards incentive funds for tall. Amended and passed 85-42 by the House comes from a Centers for Disease Control child passenger safety activities to states that May 11, the Senate repassed the bill 39-13 the and Prevention growth chart. House enact a qualifying child restraint law. next day. Minority Leader Marty Seifert (R-Marshall) — M. Co o k Minnesota is one of six states that does not unsuccessfully offered an amendment to

M AY 8 - 14, 2009 BILL INTRODUCTIONS House files 2377 - 2388

Friday, May 8 HF2380-Jackson (DFL) HF2383-Champion (DFL) HF2386-Hortman (DFL) Rules & Legislative Administration Finance Health Care & Human Services HF2377-Sertich (DFL) Miscellaneous oversights, inconsis- Community arts education grant Policy & Oversight Finance tencies, ambiguities, unintended re- program established; program ad- Complex regional pain syndrome Iron Range Resources and Rehabilita- sults and technical errors corrected. m i n i s tere d by t he M i n ne s ot a B oa rd of education and research program act. tion Board funding provided for asset Arts and regional arts councils. preservation at Iron World. HF2381-Atkins (DFL) Public Safety Policy & Oversight HF2384-Scott (R) Thursday, May 14 Gang affiliation data retention re- Health Care & Human Services HF2387-Laine (DFL) Monday, May 11 quired. Policy & Oversight Early Childhood Finance & Policy Nonpublic assistance IV-D services Division HF2378-Kalin (DFL) provisions modified. Finance Wednesday, May 13 Head Start school readiness service agreements authorized. Rush City; water and sewer funding HF2385-Torkelson (R) HF2382-Huntley (DFL) provided. Finance Finance HF2388-Loon (R) Minnesota River Basin; flood hazard Duluth; Clyde Park improvements Taxes HF2379-Ruud (DFL) mitigation funding provided for and Duluth Children’s Museum Filing requirement waived for Health Care & Human Services Area II. Policy & funding provided. minimal tax owed as a result of late Oversight adoption of federal changes. Prosthetic device coverage required.

May 15, 2009 Session Weekly 23 Mi n n e s o t a Ho u s e o f Re p r e s e n t a t i v e s

Pu b l i c In f o r m a t i o n Se r v i c e s

175 St a t e Of f i c e Building

100 Re v . Dr. Ma r t i n Lu t h e r Ki n g Jr. Bl v d .

St. Pa u l , MN 55155-1298

Sp e a k e r o f t h e Ho u s e : Ma r g a r e t An d e r s o n Ke l l i h e r

Ma j o r i t y Le a d e r : An t h o n y “To n y ” Se r t i c h

Minority Le a d e r : Ma r t y Se i f e r t

Fo r Mo r e In f o r m a t i o n i n n e s o t a n d e x M I For general information, call House Public Information Services at Government in Minnesota 651-296-2146 or 800-657-3550. Full-time government employees in 2007...... 233,946 To have a copy of Session Weekly State employees...... 64,793 mailed to you, subscribe online at: www. Local government employees...... 169,153 house.mn/hinfo/subscribesw.asp or call: Part-time government employees in 2007...... 121,716 651-296-2146 or 800-657-3550. State employees...... 29,995 If you enjoy Session Weekly, please consider Local government employees...... 91,721 helping to defray production and mailing State General Fund revenues in fiscal year 2008, in billions...... $18.9 costs with a biennial voluntary donation of State General Fund expenditures in fiscal year 2008, in billions...... $17 $20 or more. Counties in Minnesota...... 87 Make your check payable to Minnesota Fiscal year 2008 revenues, in billions...... $5.7 House of Representatives, and mail it to: Fiscal year 2008 expenditures, in billions...... $5.8 House Public Information Services Cities in Minnesota...... 855 175 State Office Building Fiscal year 2008 revenues, in billions...... $4.3 100 Rev. Dr. Martin Luther King Jr. Blvd. Fiscal year 2008 expenditures, in billions...... $4.1 St. Paul, MN 55155-1298 Towns in Minnesota...... 1,787 Session Weekly online is available at: Fiscal year 2007 revenues, in millions...... $242.3 www.house.mn/sessionweekly Fiscal year 2007 expenditures, in millions...... $242.8 School districts in Minnesota...... 340 Subscribe to Session Daily e-mail Other special taxing districts, including hospital, sanitary and watershed districts and alerts at: www.house.mn/list/join. housing redevelopment authorities...... 295 asp?listname=sessiondaily. Price of government in Minnesota, in fiscal year 2009, as percentage of Check your local listings to watch televi- personal income...... 15.5 sion coverage of House committees, floor Percentage in fiscal year 2006...... 16.5 sessions and select press conferences. Percentage in fiscal year 2003...... 15.4 To obtain a copy of a bill, call the Legislative branch employees (permanent), in fiscal year 2009...... 617 Chief Clerk’s Office at 651-296-2314. House members, staff...... 134, 119 Senate members, staff...... 67, 149 To learn about bill introductions or Joint legislative staff...... 148 the status of a specific bill, call the — N. Bu s s e House Index Office at 651-296-6646. The House of Representatives can be found on Sources: U.S. Census Bureau, 2007 Census of Government Employment; House Research the Web at: www.house.mn. Department, Minnesota Government in Brief, January 2009; Office of the State Auditor, various reports; Minnesota Management and Budget, Price of Government and February 2009 Forecast People who are deaf and hard of hearing General Fund balance analysis. may ask questions or leave messages by calling the Minnesota Relay service at 711 or 800-627-3529 (TTY).