Journal of the House - 70th Day - Thursday, March 4, 2010

A quorum was present.

Magnus was excused.

The Chief Clerk proceeded to read the Journal of the preceding day. Abeler moved that further reading of the Journal be dispensed with and that the Journal be approved as corrected by the Chief Clerk. The motion prevailed.

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REPORTS OF CHIEF CLERK

S. F. No. 2259 and H. F. No. 2797, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Hilty moved that S. F. No. 2259 be substituted for H. F. No. 2797 and that the House File be indefinitely postponed. The motion prevailed.

PETITIONS AND COMMUNICATIONS

The following communications were received:

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

March 1, 2010

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Kelliher:

Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State the following House File:

H. F. No. 927, relating to labor and industry; modifying construction codes and licensing; requiring rulemaking.

Sincerely,

Tim Pawlenty

Governor

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The Honorable James P. Metzen

President of the Senate

I have the honor to inform you that the following enrolled Act of the 2010 Session of the State Legislature has been received from the Office of the Governor and is deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

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S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2010

Date Filed

2010

927 183 1:24 p.m. March 1 March 1

Sincerely,

Mark Ritchie

Secretary of State

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Thissen from the Committee on Health Care and Human Services Policy and Oversight to which was referred:

H. F. No. 1503, A bill for an act relating to health occupations; establishing licensure for massage therapists; establishing fees; requiring rulemaking; providing penalties; amending Minnesota Statutes 2008, sections 116J.70, subdivision 2a; 214.01, subdivision 2; proposing coding for new law as Minnesota Statutes, chapter 147F.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

MASSAGE THERAPY REGISTRATION

Section 1. [148.981] CITATION.

Sections 148.981 to 148.989 may be cited as the "Minnesota Massage Therapy Act."

Sec. 2. [148.982] DEFINITIONS.

Subdivision 1. Applicability. The definitions in this section apply to this chapter.

Subd. 2. Advertise. "Advertise" means to publish, display, or disseminate information, and includes, but is not limited to, the issuance of any card, sign, direct mail, Internet posting or the causing or permitting in one's name for any sign or marking on or in a building, vehicle, or structure or in a newspaper, magazine, any listing in any directory under a classification or heading that includes the words "massage," "massage therapist," "therapeutic massage," or "massage therapeutic," or commercials broadcast by any means.

Subd. 3. Advisory council. "Advisory council" means the Registered Massage Therapist Advisory Council established under section 148.9861.

Subd. 4. Applicant. "Applicant" means an individual applying for massage therapy registration or registration renewal.

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Subd. 5. Approved continuing education program. "Approved continuing education program" means a continuing education program that meets the continuing education requirements in section 148.9881 and is approved by the board.

Subd. 6. Approved massage therapy program. "Approved massage therapy program" means a university, college, or other postsecondary education program leading to eligibility for state registration in massage therapy that meets the requirements of section 148.988.

Subd. 7. Board. "Board" means the Minnesota Board of Nursing.

Subd. 8. Client. "Client" means a recipient of massage therapy services.

Subd. 9. Contact hour. "Contact hour" means an instructional session of at least 50 consecutive minutes, excluding coffee breaks, registration, meals without a speaker, and social activities.

Subd. 10. Credential. "Credential" means a license, registration, or certification.

Subd. 11. Competency exam. "Competency exam" means a massage therapy competency assessment that is approved by the board and is psychometrically valid, based on a job task analysis, and administered by a national testing organization.

Subd. 12. Health care provider. "Health care provider" means a person who is credentialed to practice the following: medicine as defined in section 147.081, chiropractic as defined in section 148.01, podiatry as defined in section 153.01, dentistry as defined in section 150A.05, physical therapy as defined in section 148.65, advanced practice nursing as defined in section 148.171, or other state-credentialed providers.

Subd. 13. Massage or massage therapy. "Massage" or "massage therapy" means a health care service involving systematic and structured touch and palpation, pressure and movement of the muscles, tendons, ligaments, and fascia, in order to reduce muscle tension, relieve soft tissue pain, improve circulation, increase flexibility, increase activity of the parasympathetic branch of the autonomic nervous system, or to promote general wellness, by use of the techniques and applications described in section 148.983.

Subd. 14. Massage therapist. "Massage therapist" means a health care professional registered under this chapter for the practice of massage therapy.

Subd. 15. Municipality. "Municipality" means a county, town, city, or other municipal corporation or political subdivision of this state.

Subd. 16. Physical agent modality. "Physical agent modality" means modalities that use the properties of light, water, temperature, sound, and electricity to produce a response in soft tissue.

Subd. 17. Practice of massage therapy. "Practice of massage therapy" means to engage professionally for compensation or as a volunteer in massage therapy or the instruction of professional technique coursework.

Subd. 18. Professional organization. "Professional organization" means an organization that represents massage therapists, was established before the year 2000, offers professional liability insurance as a benefit of membership, has an established code of professional ethics, and is board-approved.

Subd. 19. State. "State" means any state in the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, Guam, Canadian province, or foreign country, except "this state" means the state of Minnesota.

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Sec. 3. [148.983] MASSAGE THERAPY.

(a) The practice of massage therapy by a registered massage therapist includes the following:

(1) use of any or all of the following techniques using the hands, forearms, or elbows or handheld mechanical or electrical devices that mimic or enhance the actions of the human hands: effleurage or gliding; petrissage or kneading; vibration and jostling; friction; tapotement or percussion; compression; fascial manipulation; passive stretching within the normal anatomical range of motion; and

(2) application and use of any of the following: oils, lotions, gels, rubbing alcohol, or powders for the purpose of lubricating skin to be massaged; essential oils, or creams, with the exception of prescription-requiring medicinal creams; hot or cold stones; salt glows and wraps; and ice.

(b) The practice of massage therapy does not include any of the following:

(i) diagnosing any illness or disease; or

(ii) changing recommendations of a state-credentialed health care provider without consulting that health care provider prior to altering a course of recommended massage therapy;

(2) prescription of drugs or medicines;

(3) intentional adjusting, manipulating, or mobilizing any articulations of the body or spine, including by means of a high velocity, low amplitude thrusting force or as described in section 146.23 or 148.01; or

(4) application of physical agent modalities, injection therapy, or moxabustion.

Sec. 4. [148.984] LIMITATIONS ON PRACTICE.

Subdivision 1. Referrals. If a medical condition is beyond the scope of practice established by this chapter or by rules of the board for a registered massage therapist, the massage therapist must refer the client to a health care provider as defined in this chapter.

Subd. 2. Prohibited from practicing. A person whose registration under this chapter has been restricted, revoked, or application denied by the board, is restricted from practicing massage therapy in this state, up to and including being prohibited from practice.

Subd. 3. Penalty. A person who violates this section and section 148.983 is guilty of a misdemeanor and subject to section 214.11.

Sec. 5. [148.985] PROTECTED TITLES AND RESTRICTIONS ON USE.

Subdivision 1. Designation. An individual regulated by this chapter is designated as a "registered massage therapist" or "RMT."

Subd. 2. Title protection. No individual may use the title "registered massage therapist," or use, in connection with the individual's name, the letters "RMT," or any other titles, words, letters, abbreviations, or insignia indicating or implying that the individual is registered or eligible for registration by this state as a registered massage therapist unless the individual has been registered as a massage therapist according to this chapter.

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Subd. 3. Identification of practitioners. (a) A massage therapist registered in Minnesota shall be identified as a "registered massage therapist." If not written in full, this must be designated as RMT. A student attending a massage therapy training program and providing massage therapy services to the public as part of the student's training must be identified as a "Student Massage Therapist." This abbreviated designation is "Student MT."

(b) The board may adopt rules for the implementation of this section, including the identification of terms or references that may be used only by registered massage therapists as necessary to protect the public.

(c) A practitioner who is credentialed by another state, or who holds certification from organizations, agencies, or educational providers is not prohibited from using those terms, letters, or any figures, signs, or insignia to indicate that credential in advertising, provided the state and the credentialing body are clearly identified in the advertisement.

(d) A practitioner who is licensed in another state may advertise as being a licensed practitioner provided the state and the licensing agency are clearly identified in the advertisement.

Subd. 4. Other health care providers. Nothing in this chapter may be construed to prohibit, nor restrict the practice of, nor require massage therapy registration of any of the following:

(1) a person holding a credential granted by this state, who utilizes massage therapy techniques within the scope of that credential, provided the practitioner does not imply that they are registered under this chapter; or

(2) the natural health procedures, practices, and treatments in section 146A.01, subdivision 4, provided that those services are not advertised, designated, or implied to be from a registered massage therapist or other terms or abbreviations protected under this chapter.

Subd. 5. Penalty. A person who violates this section is guilty of a misdemeanor and subject to section 214.11.

Sec. 6. [148.986] POWERS OF BOARD.

The board, acting with the advice of the Registered Massage Therapist Advisory Council, shall issue registrations to duly qualified applicants and shall exercise the following powers and duties:

(1) adopt rules necessary to effect the provisions of sections 148.982 to 148.989;

(2) conduct a competency exam that an applicant may use as the basis for establishing competence to be registered under section 148.987;

(3) cause the prosecution of all registrants or applicants for violating sections 148.982 to 148.989 and have power to incur any associated expense;

(4) impose discipline as described in section 148.9884;

(5) maintain a record of names and addresses of massage therapists registered by this chapter;

(6) keep a permanent record of all its proceedings; and

(7) employ and establish the duties of personnel necessary to carry on its work.

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Sec. 7. [148.9861] REGISTERED MASSAGE THERAPIST ADVISORY COUNCIL.

Subdivision 1. Creation; membership. (a) The Registered Massage Therapist Advisory Council is created and is composed of seven members appointed by the board. All members must have been residents of this state for at least three years prior to appointment. The advisory council consists of:

(1) three public members, as defined in section 214.02; and

(2) four members who, except for initial appointees, are registered massage therapists.

(b) Initial appointees shall possess the qualifications necessary to become registered massage therapists and must do so as soon as applications for registration are available. A person may not be appointed to serve more than two consecutive full terms.

Subd. 2. Administration. The advisory council shall be organized and administered under section 15.059. The council shall not expire.

Subd. 3. Duties. The advisory council shall advise the board regarding:

(1) standards of practice and a code of ethics for registered massage therapists;

(2) distribution of information regarding massage therapist standards;

(3) enforcement of sections 148.982 to 148.989;

(4) applications and make recommendations of applicants for registration or registration renewal;

(5) complaints and recommendations regarding disciplinary matters and proceedings according to sections 214.10, 214.103, and 214.13, subdivisions 6 and 7;

(6) competency exams and approval of continuing education programs; and

(7) perform other duties authorized for advisory councils under chapter 214, or as directed by the board.

Sec. 8. [148.987] REGISTRATION REQUIREMENTS.

Subdivision 1. Registration. To be eligible for registration under this chapter, an applicant must:

(1) pay fees under section 148.989;

(2) submit to procedures specified by the board for obtaining a criminal background check. The applicant shall pay fees associated with obtaining the criminal background check. The background check shall include records of the Minnesota Bureau of Criminal Apprehension and the Federal Bureau of Investigation and the results shall be forwarded directly to the board; and

(3) file a written application on a form provided by the board that includes:

(i) the applicant's name, Social Security number, home address and telephone number, business address and telephone number, and business setting;

(ii) provide proof, as required by the board, of:

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(A) having obtained a high school diploma or its equivalent;

(B) being 18 years of age or older;

(D) current professional liability insurance coverage, with a minimum of $1,000,000 of coverage per occurrence;

(iii) unless registered under subdivision 3 or 4, evidence satisfactory to the board of the successful completion of an approved education program;

(iv) unless registered under subdivision 3 or 4, evidence satisfactory to the board of having passed a board-approved competency exam;

(v) a description of any continuing education programming in which the applicant claims or advertises competence;

(vi) a list of credentials or memberships held in other states or from private credentialing or professional organizations;

(vii) a description of any other state or municipality's refusal to credential the applicant;

(viii) a description of all professional disciplinary actions initiated against the applicant in any jurisdiction;

(ix) any history of drug or alcohol abuse, and any misdemeanor or felony conviction;

(x) additional information as requested by the board;

(xi) the applicant's signature on a statement that the information in the application is true and correct to the best of the applicant's knowledge; and

(xii) the applicant's signature on a waiver authorizing the board to obtain access to the applicant's records in this state or any other state in which the applicant has completed an education program approved by the board or engaged in the practice of massage therapy.

Subd. 2. Registration prohibited. The board may deny an application for registration if the applicant:

(1) has been convicted in this state of any of the following crimes, or in another state of equivalent crimes:

(i) prostitution as defined under section 609.321, 609.324, and 609.3242;

(ii) sexual attack as defined under section 611A.21;

(iii) criminal sexual conduct under sections 609.342 to 609.3451, or 609.3453; or

(iv) is a registered sex offender under section 243.166;

(2) has had the ability to practice the natural health procedures, practices, and treatments in chapter 146A revoked, suspended, or limited with conditions under the provisions of chapter 146A, if the board determines the denial is necessary to protect the public; or

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(3) is charged or under investigation for complaints that would constitute a violation of the laws or rules established for the practice of massage therapy in this or any other state, the applicant shall not be registered until the complaints have been resolved in the applicant's favor. If a complaint is resolved in favor of the complainant, the application for registration may be denied.

Subd. 3. Registration by endorsement. (a) To be eligible for registration by endorsement, the applicant shall:

(1) meet the requirements for registration in subdivision 1, clauses (1), (2), and (3), items (i), (ii), and (v) to (xii); and

(2) provide proof of a current and unrestricted credential for the practice of massage therapy in another state that has credentialing requirements at least equivalent to the requirements under this chapter. Proof shall include records as required by rules of the board.

(b) In the event that a disciplinary proceeding or unresolved complaint is pending for a complaint regarding an action of the applicant that would constitute a violation of sections 148.982 to 148.989, or rules adopted by the board, the applicant shall not be registered in this state until the proceeding or complaint has been resolved in the applicant's favor. If a complaint is resolved in favor of the complainant, the application for licensure may be denied.

(c) Registrations issued by endorsement shall expire on the same schedule and be renewed by the same procedures as registrations issued under subdivision 1.

(d) An applicant for registration by endorsement may apply to the board for a temporary permit under subdivision 5.

Subd. 4. Registration by grandfathering. (a) To be eligible for registration by grandfathering, the applicant shall:

(1) meet the requirements for registration in subdivision 1, clauses (1), (2), and (3), items (i), (ii), and (v) to (xii); and

(2) provide proof specified by the board demonstrating the applicant has met at least one of the following qualifications:

(i) successful completion of at least 500 hours of supervised classroom and hands-on instruction relating to massage therapy which may be established by an official transcript, certificate of completion, or other record as approved by the board;

(ii) successful completion of one of the board-approved competency exams which shall be established by submitting records as required by the board;

(iii) employment for at least the previous two years prior to the effective date of sections 148.981 to 148.989 in the practice of massage therapy which shall be established by Internal Revenue Service income tax return forms, business records, or other records as approved by the board; or

(iv) active membership in a professional organization for at least two years prior to the effective date of sections 148.981 to 148.989 which shall be established by a letter verifying the applicant's initial membership date and current standing sent directly to the board from the professional organization, or other records as approved by the board.

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(b) Registrations issued by grandfathering shall expire on the same schedule and be renewed by the same procedures as registrations issued under subdivision 1.

(c) Registration by grandfathering is effective for one year after the first date the board has made applications available.

(d) An applicant for registration by grandfathering may apply to the board for a temporary permit under subdivision 5.

Subd. 5. Temporary permit. The board may issue a temporary permit to practice as a registered massage therapist to an applicant eligible for registration under this section if the application for registration is complete, all applicable requirements in this section have been met, and the fee required in section 148.989 has been paid. The temporary permit is valid until the board makes a decision on the massage therapist's application for registration.

Sec. 9. [148.9871] EXPIRATION AND RENEWAL.

Subdivision 1. Registration expiration. Registrations issued under section 148.987 expire annually.

Subd. 2. Renewal. To be eligible for registration renewal a registrant must:

(1) annually, or as determined by the board, complete a renewal application on a form provided by the board;

(2) submit the renewal fee;

(3) provide evidence every two years of a total of 12 contact hours of approved continuing education in section 148.9881; and

(4) submit any additional information requested by the board to clarify information presented in the renewal application. The information must be submitted within 30 days after the board's request, or the renewal request is nullified.

Subd. 3. Change of address. A registrant who changes addresses must inform the board within 30 days, in writing, of the change of address. Notices or other correspondence mailed to or served on a registrant at the registrant's current address on file shall be considered received by the registrant.

Subd. 4. Registration renewal notice. At least 60 days before the registration renewal date, the board shall send out a renewal notice to the last known address of the registrant on file. The notice must include a renewal application and a notice of fees required for renewal. The notice must inform the registrant that registration will expire without further action by the board if an application for registration renewal is not received before the deadline for renewal. The registrant's failure to receive this notice shall not relieve the registrant of the obligation to meet the deadline and other requirements for registration renewal. Failure to receive this notice is not grounds for challenging expiration of registered status.

Subd. 5. Renewal deadline. The renewal application and fee must be postmarked on or before October 1 of the year of renewal or as determined by the board. If the postmark is illegible, the application shall be considered timely if received by the third working day after the deadline.

Subd. 6. Inactive status and return to active status. (a) A registration may be placed in inactive status upon application to the board by the registrant and upon payment of an inactive status fee.

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(b) A registrant seeking restoration to active from inactive status must pay the current renewal fees and all unpaid back inactive fees. The registrant must meet the criteria for renewal specified in subdivision 7, including continuing education hours equivalent to one hour for each month of inactive status, prior to submitting an application to regain registered status. If the inactive status extends beyond five years, a qualifying score on a competency exam is required.

Subd. 7. Registration following lapse of registration status for two years or less. For an individual whose registration status has lapsed for two years or less, to regain registration status, the individual must:

(1) apply for registration renewal according to subdivision 2;

(2) document compliance with the continuing education requirements in section 148.9881 since the registrant's initial registration or last renewal; and

(3) submit the fees required in section 148.989 for the period not registered, including the fee for late renewal.

Subd. 8. Cancellation due to nonrenewal. The board shall not renew, reissue, reinstate, or restore a registration that has lapsed and has not been renewed within two years. A registrant whose registration is canceled for nonrenewal must obtain a new registration by applying for registration and fulfilling all requirements then in existence for initial registration as a massage therapist.

Subd. 9. Cancellation of registration in good standing. (a) A registrant holding active registration as a massage therapist in this state may, upon approval of the board, be granted registration cancellation if the board is not investigating the person as a result of a complaint or information received or if the board has not begun disciplinary proceedings against the registrant. This action by the board shall be reported as a cancellation of registration in good standing.

(b) A registrant who receives board approval for registration cancellation is not entitled to a refund of any registration fees paid for the registration period in which cancellation of the registration occurred.

(c) To obtain registration after cancellation, a registrant must obtain a new registration by applying for registration and fulfilling the requirements then in existence for obtaining initial registration as a massage therapist.

Sec. 10. [148.988] MASSAGE THERAPY PROGRAM.

Subdivision 1. Initial approval. An institution desiring to conduct a massage therapy program from which graduates will be eligible for registration under section 148.987 shall apply to the board, pay fees under section 148.989, and submit evidence that the institution is:

(1) teaching or prepared to teach a program of at least 500 contact hours of combined massage therapy theory and practice training;

(2) licensed by the Minnesota Office of Higher Education or equivalent agency in another state;

(3) accredited by an agency recognized by the United States Secretary of Education for accrediting such programs or institutions:

(i) schools without accreditation must meet the requirements of clauses (1) and (2), must be in the accreditation application process, and must gain accreditation within two years of the effective date of sections 148.981 to 148.989 or within two years of commencing operations as a massage therapy program, whichever is later; and

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(ii) an applicant for registration who graduates from a program prior to the program becoming accredited must pass an approved competency exam; and

(4) prepared to meet other standards established by law and by the board.

Subd. 2. Continuing approval. An approved program shall annually make application to continue approval based on the conditions of subdivision 1.

Subd. 3. Loss of approval. If the board determines that an approved massage therapy program is not maintaining the standards required by applicable law and rules, notice in writing specifying the defect shall be given to the program. If a program fails to correct these conditions to the satisfaction of the board within a reasonable time set in the notice of defect, approval of the program may be revoked and the program shall be removed from the list of approved massage therapy programs.

Subd. 4. Reinstatement of approval. The board may reinstate approval of a massage therapy program upon submission of satisfactory evidence that its program of theory and practice, state licensure, and accreditation meets the standards required by law and rules then in effect.

Sec. 11. [148.9881] CONTINUING EDUCATION.

Subdivision 1. Number of required contact hours. A registered massage therapist shall complete during every two-year period at least the equivalent of 12 contact hours of continuing education in programs approved by the board.

Subd. 2. Approved programs. The board may approve continuing education programs that have been taught, sponsored, or approved by:

(1) an approved credentialing or professional organization;

(2) state licensed health care facility;

(3) an accredited college or university; or

(4) a board-approved school.

Subd. 3. Approval of continuing education programs. The board may also approve continuing education programs that do not meet the requirements of subdivision 2 but pay fees under section 148.989 and meet all of the following criteria:

(1) the program content directly relates to the practice of massage therapy;

(2) each member of the program faculty is knowledgeable in the subject matter as demonstrated by a degree from an accredited education program, verifiable experience in the field of massage therapy, special training in the subject matter, or experience teaching in the subject area;

(3) the program lasts at least 50 minutes per contact hour;

(4) there are specific, measurable, written objectives, consistent with the program, describing the expected outcomes for the participants; and

(5) the program sponsor has a mechanism to verify participation and maintains attendance records for three years.

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Subd. 4. Accumulation of contact hours. A registrant may not apply contact hours acquired in one two-year reporting period to a future continuing education reporting period.

Subd. 5. Verification of continuing education. The board shall periodically select a random sample of registrants and require those registrants to supply the board with evidence of having completed the continuing education to which they attested.

Subd. 6. Continuing education topics. Continuing education program topics may include, but are not limited to, techniques, modalities, and theory directly relating to the practice of massage therapy, business practices, pathology, prevention of spreading disease and medical errors, treatment contraindications, anatomy and physiology, areas of professional ethics, research literacy, or other coursework as approved by the board.

Subd. 7. Continuing education exemptions. The board may exempt any person holding a registration under section 148.987 from some or all of the requirements of subdivision 1 upon application showing evidence satisfactory to the board of inability to comply with the requirements because of physical or mental condition or because of other unusual or extenuating circumstances. No person may be exempted from the requirements of subdivision 1 more than once in any five-year period.

Sec. 12. [148.9882] BOARD ACTION ON APPLICATIONS.

(a) The board shall act on each application for registration according to paragraphs (b) to (d).

(b) The board or advisory council shall determine if the applicant meets the requirements for registration or renewal under sections 148.987 and 148.9871. The board or advisory council may investigate information provided by an applicant to determine whether the information is accurate and complete, including requesting additional information or documentation.

(c) The board shall notify each applicant in writing of action taken on the application, the grounds for denying registration if registration is denied, and the applicant's right to review under paragraph (d).

(d) An applicant denied registration may make a written request to the board, within 30 days of the board's notice, to appear before the advisory council and for the advisory council to review the board's decision to deny the applicant's registration. After reviewing the denial, the advisory council shall make a recommendation to the board as to whether the denial shall be affirmed. An applicant is allowed only one request for review per registration period.

Sec. 13. [148.9883] GROUNDS FOR DISCIPLINARY ACTION; MALTREATMENT OF MINORS.

Subdivision 1. Grounds listed. The board may deny, revoke, suspend, limit, or condition the registration of a massage therapist registered or applying for registration as a massage therapist or may otherwise discipline a registrant as described in section 148.9884. The fact that massage therapy may be a less customary approach to health care shall not constitute the basis for disciplinary action per se. The following are grounds for disciplinary action:

(1) failure to demonstrate the qualifications or satisfy the requirements for registration as a massage therapist contained in sections 148.982 to 148.989, or rules of the board. A person applying for registration has the burden of demonstrating the required qualifications or satisfy the requirements;

(2) engaging in false, fraudulent, deceptive, or misleading advertising, including, but not limited to:

(i) advertising, representing, or presenting as a "Registered Massage Therapist" or any abbreviation or derivative of this to indicate this title, when the registration is not valid or current for any reason;

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(ii) advertising, representing, or presenting as a "Licensed Massage Therapist" or any abbreviation or derivative of this to indicate this title, unless the practitioner currently holds a valid state license in another state and clearly indicates what state the credential is held in;

(iii) advertising to offer a service that would constitute a violation of sections 148.981 to 148.989 or rules adopted by the board shall be considered grounds for discipline, regardless of whether actual injury to a client is established; and

(iv) using fraud, deceit, or misrepresentation when communicating with the general public, health care providers, or other business professionals;

(3) falsified information in a massage therapy registration or renewal application or attempting to obtain registration, registration renewal, or reinstatement by fraud, deception, or misrepresentation, or aided and abetted any of these acts;

(4) engaging in conduct with a client that is sexual or may reasonably be interpreted by the client as sexual, or in any verbal behavior that is seductive or sexually demeaning to a client, or engaging in sexual exploitation of a client, without regard to who initiates the behaviors;

(5) failure to refer a client to a general health care provider when the services required by the client are beyond the level of competence of the massage therapist or beyond the scope of practice of massage therapy in section 148.983;

(6) committing an act of gross malpractice, negligence, or incompetency, or failing to practice massage therapy with the level of care, skill, and treatment that is recognized by a reasonably prudent massage therapist as being acceptable under similar conditions and circumstances, regardless of whether actual injury to the client occurs;

(7) actual or potential inability to practice massage therapy with reasonable skill and safety to clients by reason of illness, as a result of any mental or physical condition, or use of alcohol, drugs, chemicals, or any other material, regardless of whether actual injury to the client occurs;

(8) being adjudicated as mentally incompetent, mentally ill, a chemically dependent person, or a person dangerous to the public by a court of competent jurisdiction, within or without this state may be considered as evidence of the inability to practice massage therapy;

(9) being the subject of disciplinary action as a massage therapist by another state or jurisdiction and the board or advisory council determines that the cause of the disciplinary action would be a violation under this state's laws or rules if the violation occurred in this state;

(10) failure to notify the board of having had a credential revoked, suspended, or any other disciplinary action taken including restrictions on the right to practice, or an application for credential refused, revoked, suspended, or otherwise disciplined by authorities of another state, territory, or country; or surrendered or voluntarily terminated a credential during a board investigation of a complaint, as part of a disciplinary order, or while under a disciplinary order;

(11) being convicted of or pled guilty or nolo contendere to a felony or other crime, an element of which is dishonesty or fraud, or proven to have engaged in acts or practice showing that the applicant or registrant is incompetent or has engaged in conduct reflecting adversely on the applicant's or registrant's ability or fitness to engage in the practice of massage therapy;

(12) practicing or offering to practice beyond the scope of the practice of massage therapy;

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>(13) improperly managing client records and information including, but not limited to, failure to maintain adequate client records, comply with a client's request made under sections 144.291 to 144.298, furnish a client record or report required by law;

(14) revealing a privileged communication from or relating to a client except when otherwise required or permitted by law;

(15) providing massage therapy services that are in any way linked to the financial gain of a referral source;

(16) obtaining money, property, or services from a client, other than reasonable fees for services provided to the client, through the use of undue influence, harassment, duress, deception, or fraud;

(17) engaging in abusive or fraudulent billing practices, including violations of federal Medicare and Medicaid laws or state medical assistance laws;

(18) failure to consult the client's health care provider who recommended a course of massage therapy treatment if the treatment needs to be altered from the original written recommendations to conform with standards in the massage therapy field or the practitioner's level of training or experience;

(19) failure to cooperate with an investigation of the board or its representative, including responding fully and promptly to any question raised by or on behalf of the board relating to the subject of the investigation, executing all releases requested by the board, providing copies of client records, requested by the board to assist it in its investigation, and appearing at conferences or hearings scheduled by the board or its staff;

(20) interfering with an investigation or disciplinary proceeding, including by willful misrepresentation of facts or by the use of threats or harassment to prevent a person from providing evidence in a disciplinary proceeding or any legal action;

(21) violating a law, rule, order, or agreement for corrective action that the board issued or is otherwise authorized or empowered to enforce;

(22) failure to report to the board other massage therapists who commit violations of this chapter; or

(23) failure to notify the board, in writing, of the entry of a final judgment by a court of competent jurisdiction against the registrant for malpractice of massage therapy or any settlement by the registrant in response to charges or allegations of malpractice of massage therapy.

The notice in clause (23) must be provided to the board within 60 days after the entry of the judgment or settlement and, in the case of a judgment, must contain the name of the court, the case number, and the names of all parties to the action.

Subd. 2. Maltreatment of minors. Nothing in sections 148.981 to 148.989 shall restrict the ability of a local or state agency to take action regarding the maltreatment of minors under section 609.378 or 626.556. A parent who obtains massage therapy services for the parent's minor child is not relieved of the duty to seek necessary medical care consistent with the requirements of sections 609.378 and 626.556. A registered massage therapist who is providing services to a child who is not receiving necessary medical care must make a report under section 626.556. A registered massage therapist is a mandated reporter under section 626.556, subdivision 3.

Subd. 3. Evidence. In disciplinary actions alleging a violation of subdivision 1, a copy of the judgment or proceeding under the seal of the court administrator or of the administrative agency that entered the judgment or proceeding is admissible into evidence without further authentication and constitutes prima facie evidence of the violation.

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Subd. 4. Examination; access to medical data. (a) The board may take the following actions if it has probable cause to believe that grounds for disciplinary action exist under subdivision 1, clause (7) or (8):

(1) direct the applicant or massage therapist to submit to a mental or physical examination or chemical dependency evaluation. For the purpose of this subdivision, when a massage therapist registered under sections 148.987 to 148.9871 is directed in writing by the board to submit to a mental or physical examination or chemical dependency evaluation, that person is considered to have consented and to have waived all objections to admissibility on the grounds of privilege. Failure of the applicant or massage therapist to submit to an examination when directed constitutes an admission of the allegations against the applicant or massage therapist, unless the failure was due to circumstances beyond the person's control, and the board may enter a default and final order without taking testimony or allowing evidence to be presented. A massage therapist affected under this paragraph shall, at reasonable intervals, be given an opportunity to demonstrate that the competent practice of massage therapy can be resumed with reasonable skill and safety to clients. Neither the record of proceedings nor the order entered by the board in a proceeding under this paragraph may be used against a massage therapist in any other proceeding; and

(2) notwithstanding sections 13.384, 144.651, and 595.02, or any other law limiting access to medical or other health data, obtain medical data and health records relating to a registered massage therapist or applicant for registration without that person's consent. The medical data may be requested from a provider as defined in section 144.291, subdivision 2, paragraph (h), an insurance company, or a government agency. A provider, insurance company, or government agency shall comply with any written request of the board under this subdivision and is not liable in any action for damages for releasing the data requested by the board if the data are released according to a written request under this subdivision unless the information is false and the provider giving the information knew, or had reason to believe, the information was false. Information obtained under this subdivision is classified as private data on individuals as defined in section 13.02.

Sec. 14. [148.9884] FORMS OF DISCIPLINARY ACTION; AUTOMATIC SUSPENSION; TEMPORARY SUSPENSION; REISSUANCE.

Subdivision 1. Forms of disciplinary action. When the board finds that grounds for disciplinary action exist under section 148.9883, the board may take one or more of the following actions:

(1) deny the registration or registration renewal;

(2) revoke the registration;

(3) suspend the registration;

(4) impose limitations on the massage therapist's practice of massage therapy including, but not limited to, limitation of scope of practice or the requirement of practice under supervision;

(5) impose conditions on the retention of the registration including, but not limited to, the imposition of retraining or rehabilitation requirements or the conditioning of continued practice on demonstration of knowledge or skills by appropriate examination, monitoring, or other review;

(6) impose a civil penalty not exceeding $10,000 for each separate violation, the amount of the civil penalty to be fixed as to deprive the massage therapist of any economic advantage gained by reason of the violation charged, to reimburse the board for the cost of counsel, investigation, and proceeding, and to discourage repeated violations;

(7) order the massage therapist to provide unremunerated service;

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(8) censure or reprimand the massage therapist; or

(9) any other action justified by the facts in the case.

Subd. 2. Automatic suspension. (a) Unless the board orders otherwise, a registration to practice massage therapy is automatically suspended if:

(1) a guardian of a massage therapist is appointed by court order under chapter 524;

(2) the massage therapist is committed by court order under chapter 253B; or

(3) the massage therapist is determined to be mentally incompetent, mentally ill, chemically dependent, or a person dangerous to the public by a court of competent jurisdiction within or without this state.

(b) The registration remains suspended until the massage therapist is restored to capacity by a court and, upon petition by the massage therapist, the suspension is terminated by the board after a hearing or upon agreement between the board and the massage therapist.

Subd. 3. Temporary suspension of registration. In addition to any other remedy provided by law, the board may, through its advisory council, designated board member, or representative under section 214.10, subdivision 2, temporarily suspend the registration of a massage therapist without a hearing if the board finds that there is probable cause to believe the massage therapist has violated a law or rule the board is empowered to enforce and continued practice by the massage therapist would create a serious risk of harm to others. The suspension shall take effect upon written notice to the massage therapist, serviced by first-class mail, specifying the law or rule violated. The suspension shall remain in effect until the board issues a temporary stay of suspension or a final order in the matter after a hearing or upon agreement between the board and the massage therapist. At the time the board issues the suspension notice, the board shall schedule a disciplinary hearing to be held under chapter 14. The massage therapist shall be provided with at least 20 days' notice of any hearing held under this subdivision. The hearing shall be scheduled to begin no later than 30 days after the issuance of the suspension order.

Subd. 4. Reissuance. The board may reinstate and reissue a registration for massage therapy, but as a condition may impose any disciplinary or corrective measure that it might originally have imposed. A person whose registration has been revoked, suspended, or limited may have the registration reinstated and a new registration issued when, in the discretion of the board, the action is warranted, provided that the person is required by the board to pay the costs of the proceedings resulting in the revocation, suspension, or limitation of the registration and reinstatement of the registration, and to pay the fee for the current registration period. The cost of proceedings shall include, but not be limited to, the cost paid by the board to the Office of Administrative Hearings and the Office of the Attorney General for legal and investigative services, the costs of a court reporter and witnesses, reproduction of records, board staff time, travel, and expenses, and board members' per diem reimbursements, travel costs, and expenses.

Sec. 15. [148.9885] REPORTING OBLIGATIONS.

Subdivision 1. Permission to report. A person who has knowledge of any conduct constituting grounds for discipline under section 148.9883 may report the alleged violation to the board.

Subd. 2. Institutions. Any hospital, clinic, prepaid medical plan, or other health care institution or organization located in this state shall report to the board any action taken by the institution or organization or any of its administrators or committees to revoke, suspend, limit, or condition a massage therapist's privilege to practice in the institution, or as part of the organization, any denial of privileges, any dismissal from employment, or any other disciplinary action. The institution or organization shall also report the resignation of any massage therapist before

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the conclusion of any disciplinary proceeding, or before commencement of formal charges, but after the massage therapist has knowledge that formal charges are contemplated or in preparation. The reporting described by this subdivision is required only if the action pertains to grounds for disciplinary action under section 148.9883.

Subd. 3. Credentialed professionals. A person credentialed by a health-related licensing board as defined in section 214.01, subdivision 2, shall report to the board personal knowledge of any conduct the person reasonably believes constitutes grounds for disciplinary action under sections 148.9883 to 148.9884 by any massage therapist including conduct indicating that the massage therapist may be incompetent, may have engaged in unprofessional or unethical conduct, or may be mentally or physically unable to engage safely in the practice of massage therapy.

Subd. 4. Insurers. Four times each year, by the first day of February, May, August, and November, each insurer authorized to sell insurance described in section 60A.06, subdivision 1, clause (13), and providing professional liability insurance to registered massage therapists shall submit to the board a report concerning any registered massage therapist against whom a malpractice award has been made or who has been a party to a settlement. The report must contain at least the following information:

(1) the total number of settlements or awards;

(2) the date settlement or award was made;

(3) the allegations contained in the claim or complaint leading to the settlement or award;

(4) the dollar amount of each malpractice settlement or award and whether that amount was paid as a result of a settlement or of an award; and

(5) the name and address of the practice of the massage therapist against whom an award was made or with whom a settlement was made.

An insurer shall also report to the board any information the insurer possesses that tends to substantiate a charge that a massage therapist may have engaged in conduct violating section 148.9883.

Subd. 5. Courts. The court administrator of district court or another court of competent jurisdiction shall report to the board any judgment or other determination of the court that adjudges or includes a finding that a massage therapist is a person who is mentally ill, mentally incompetent, chemically dependent, dangerous to the public, guilty of a felony or gross misdemeanor, guilty of a violation of federal or state narcotics laws or controlled substances act, guilty of operating a motor vehicle while under the influence of alcohol or a controlled substance, or guilty of an abuse or fraud under Medicare or Medicaid, appoints a guardian of the massage therapist under chapter 524, or commits a massage therapist under chapter 253B.

Subd. 6. Deadlines; forms. Reports required by subdivisions 2 to 5 must be submitted no later than 30 days after the occurrence of the reportable event or transaction. The board may provide forms for the submission of reports required by this section, may require that the reports be submitted on the forms provided, and may adopt rules necessary to assure prompt and accurate reporting. The advisory panel shall review all reports, including those submitted after the deadline, and make recommendations to the board.

Sec. 16. [148.9886] IMMUNITY.

Subdivision 1. Reporting. A person, health care facility, business, or organization is immune from civil liability or criminal prosecution for submitting in good faith a report to the board under section 148.9885 or for otherwise reporting in good faith to the board violations or alleged violations of section 148.9883. The reports are investigative data as defined in chapter 13.

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Subd. 2. Investigation. (a) Members of the advisory council, board, and persons employed by the board or engaged in the investigation of violations and in the preparation and management of charges of violations of section 148.9883 on behalf of the advisory council, board, or persons participating in the investigation or testifying regarding charges of violations are immune from civil liability and criminal prosecution for any actions, transactions, or publications in the execution of, or relating to, their duties under section 148.9885.

(b) Members of the advisory council, board, and persons employed by the board or engaged in maintaining records and making reports regarding adverse health care events are immune from civil liability and criminal prosecution for any actions, transactions, or publications in the execution of or relating to their duties under sections 148.982 to 148.989.

Sec. 17. [148.9887] MASSAGE THERAPIST COOPERATION.

A massage therapist who is the subject of an investigation by or on behalf of the board shall cooperate fully with the investigation. Cooperation includes responding fully and promptly to all questions raised by or on behalf of the board relating to the subject of the investigation and providing copies of client or other records in the massage therapist's possession, requested by the advisory council or board, to assist the advisory council or board's investigation, and to appear at conferences and hearings scheduled by the advisory council or board. The board shall pay for copies requested. If the advisory council or board does not have a written consent from a client permitting access to the client's records, the massage therapist or employer of the massage therapist at the time of the alleged violation shall delete any data in the record that identifies the client before providing it to the advisory council or board. The board shall maintain any records obtained under this section as investigative data under chapter 13. The massage therapist shall not be excused from giving testimony or producing any documents, books, records, or correspondence on the grounds of self-incrimination, but the testimony or evidence may not be used against the massage therapist in any criminal case.

Sec. 18. [148.9888] DISCIPLINARY RECORD ON JUDICIAL REVIEW.

Upon judicial review of any board disciplinary action taken under section 148.9884, the reviewing court shall seal the administrative record, except for the board's final decision, and shall not make the administrative record available to the public.

Sec. 19. [148.9889] EFFECT ON MUNICIPAL ORDINANCES.

Subdivision 1. License authority. The provisions of sections 148.981 to 148.989 preempt the licensure and regulation of a registered massage therapist by a municipality, including, without limitation, conducting a criminal background investigation and examination of a massage therapist or applicant for a municipal credential to practice massage therapy.

Subd. 2. Business license or permit. The provisions of this chapter do not prohibit a municipality from requiring a massage therapist to obtain a license or permit to transact business within the jurisdiction of the municipality, if the license or permit is required of other persons, regardless of occupation or profession, who transact business within the jurisdiction of the municipality. A massage therapist working under a business license or permit must follow the requirement in section 325F.816.

Subd. 3. Prosecuting authority. The provisions of this chapter do not prohibit any municipality of this state from prosecuting:

(1) an unregistered person engaged in the practice of massage therapy; or

(2) a registered massage therapist who is engaged in unlawful conduct.

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Sec. 20. [148.989] FEES.

Subdivision 1. Fees. Fees are as follows:

(1) initial registration with application, $272;

(2) annual registration renewal, $172;

(3) initial school approval with accreditation, $300;

(4) initial school approval without accreditation, $450;

(5) school approval renewal, $175;

(6) continuing education program approval, $40;

(7) duplicate registration certificate, $30;

(8) late fee, $40;

(9) inactive status and inactive to active status reactivation, $100;

(10) temporary permit, $50; and

(11) returned check, $35.

Subd. 2. Proration of fees. The board may prorate the initial registration fee. All registrants are required to pay the full fee upon registration renewal.

Subd. 3. Penalty fee for late renewals. An application for registration renewal submitted after the deadline must be accompanied by a late fee in addition to the required fees.

Subd. 4. Nonrefundable fees. All of the fees in subdivision 1 are nonrefundable.

Subd. 5. Deposit. Fees collected by the board under this section shall be deposited into the state government special revenue fund.

Sec. 21. EFFECTIVE DATE.

This article is effective August 1, 2010.

ARTICLE 2

CONFORMING AMENDMENTS

Section 1. Minnesota Statutes 2008, section 116J.70, subdivision 2a, is amended to read:

Subd. 2a. License; exceptions. "Business license" or "license" does not include the following:

(1) any occupational license or registration issued by a licensing board listed in section 214.01 or any occupational registration issued by the commissioner of health pursuant to section 214.13;

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(2) any license issued by a county, home rule charter city, statutory city, township, or other political subdivision;

(3) any license required to practice the following occupation regulated by the following sections:

(i) abstracters regulated pursuant to chapter 386;

(ii) accountants regulated pursuant to chapter 326A;

(iii) adjusters regulated pursuant to chapter 72B;

(iv) architects regulated pursuant to chapter 326;

(v) assessors regulated pursuant to chapter 270;

(vi) athletic trainers regulated pursuant to chapter 148;

(vii) attorneys regulated pursuant to chapter 481;

(viii) auctioneers regulated pursuant to chapter 330;

(ix) barbers and cosmetologists regulated pursuant to chapter 154;

(x) boiler operators regulated pursuant to chapter 183;

(xi) chiropractors regulated pursuant to chapter 148;

(xii) collection agencies regulated pursuant to chapter 332;

(xiii) dentists, registered dental assistants, and dental hygienists regulated pursuant to chapter 150A;

(xiv) detectives regulated pursuant to chapter 326;

(xv) electricians regulated pursuant to chapter 326;

(xvi) mortuary science practitioners regulated pursuant to chapter 149A;

(xvii) engineers regulated pursuant to chapter 326;

(xviii) insurance brokers and salespersons regulated pursuant to chapter 60A;

(xix) certified interior designers regulated pursuant to chapter 326;

(xx) midwives regulated pursuant to chapter 147D;

(xxi) nursing home administrators regulated pursuant to chapter 144A;

(xxii) optometrists regulated pursuant to chapter 148;

(xxiii) osteopathic physicians regulated pursuant to chapter 147;

(xxiv) pharmacists regulated pursuant to chapter 151;

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(xxv) physical therapists regulated pursuant to chapter 148;

(xxvi) physician assistants regulated pursuant to chapter 147A;

(xxvii) physicians and surgeons regulated pursuant to chapter 147;

(xxviii) plumbers regulated pursuant to chapter 326;

(xxix) podiatrists regulated pursuant to chapter 153;

(xxx) practical nurses regulated pursuant to chapter 148;

(xxxi) professional fund-raisers regulated pursuant to chapter 309;

(xxxii) psychologists regulated pursuant to chapter 148;

(xxxiii) real estate brokers, salespersons, and others regulated pursuant to chapters 82 and 83;

(xxxiv) registered nurses regulated pursuant to chapter 148;

(xxxv) securities brokers, dealers, agents, and investment advisers regulated pursuant to chapter 80A;

(xxxvi) steamfitters regulated pursuant to chapter 326;

(xxxvii) teachers and supervisory and support personnel regulated pursuant to chapter 125;

(xxxviii) veterinarians regulated pursuant to chapter 156;

(xxxix) water conditioning contractors and installers regulated pursuant to chapter 326;

(xl) water well contractors regulated pursuant to chapter 103I;

(xli) water and waste treatment operators regulated pursuant to chapter 115;

(xlii) motor carriers regulated pursuant to chapter 221;

(xliii) professional firms regulated under chapter 319B;

(xliv) real estate appraisers regulated pursuant to chapter 82B;

(xlv) residential building contractors, residential remodelers, residential roofers, manufactured home installers, and specialty contractors regulated pursuant to chapter 326;

(xlvi) licensed professional counselors regulated pursuant to chapter 148B; or

(xlvii) registered massage therapists regulated pursuant to chapter 148;

(4) any driver's license required pursuant to chapter 171;

(5) any aircraft license required pursuant to chapter 360;

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(6) any watercraft license required pursuant to chapter 86B;

(7) any license, permit, registration, certification, or other approval pertaining to a regulatory or management program related to the protection, conservation, or use of or interference with the resources of land, air, or water, which is required to be obtained from a state agency or instrumentality; and

(8) any pollution control rule or standard established by the Pollution Control Agency or any health rule or standard established by the commissioner of health or any licensing rule or standard established by the commissioner of human services.

Sec. 2. [325F.816] MUNICIPAL OR CITY BUSINESS LICENSE; MASSAGE.

An individual who is issued a municipal or city business license to practice massage is prohibited from advertising as a licensed massage therapist unless the individual has received a professional credential from another state; is current in licensure; and remains in good standing under the credentialing state's requirements.

Sec. 3. REPEALER.

Minnesota Rules, part 2500.5000, is repealed."

Delete the title and insert:

"A bill for an act relating to health occupations; providing registration for massage therapists; amending Minnesota Statutes 2008, section 116J.70, subdivision 2a; proposing coding for new law in Minnesota Statutes, chapters 148; 325F; repealing Minnesota Rules, part 2500.5000."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Commerce and Labor.

The report was adopted.

Mullery from the Committee on Civil Justice to which was referred:

H. F. No. 1692, A bill for an act relating to dispute resolution; providing for arbitration of disputes; adopting the Uniform Arbitration Act; amending Minnesota Statutes 2008, sections 80C.146, subdivision 2; 122A.40, subdivision 15; 122A.41, subdivision 13; 179.09; 325E.37, subdivision 5; 325F.665, subdivision 6; 469.1762; 572A.02, subdivision 1; proposing coding for new law as Minnesota Statutes, chapter 572B; repealing Minnesota Statutes 2008, sections 572.08; 572.09; 572.10; 572.11; 572.12; 572.13; 572.14; 572.15; 572.16; 572.17; 572.18; 572.19; 572.20; 572.21; 572.22; 572.23; 572.24; 572.25; 572.26; 572.27; 572.28; 572.29; 572.30.

Reported the same back with the following amendments:

Page 2, lines 18, 19, 21, and 22, delete "2009" and insert "2010"

Page 8, line 7, delete "shall" and insert "may"

Page 9, line 15, before the comma, insert "to provide testimony at the arbitration hearing"

Page 9, line 33, delete "in" and insert "under the laws and rules of civil procedure of"

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Page 15, line 18, after "repealed" insert "effective August 1, 2012"

Page 15, line 20, delete "32" and insert "31" and delete "2009" and insert "2010"

With the recommendation that when so amended the bill pass.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 2037, A bill for an act relating to state government; moving appropriations of general fund dedicated revenues to other funds; amending Minnesota Statutes 2008, sections 8.15, subdivision 3; 13.03, subdivision 10; 16C.23, subdivision 6; 103B.101, subdivision 9; 116J.551, subdivision 1; 190.32; 260C.331, subdivision 6; 270.97; 299C.48; 299E.02; 446A.086, subdivision 2; 469.177, subdivision 11; 611.20, subdivision 3; Laws 1994, chapter 531, section 1.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 3.9741, subdivision 2, is amended to read:

Subd. 2. Postsecondary Education Board. The legislative auditor may enter into an interagency agreement with the Board of Trustees of the Minnesota State Colleges and Universities to conduct financial audits, in addition to audits conducted under section 3.972, subdivision 2. All payments received for audits requested by the board shall be ~~added to the appropriation for~~ deposited in the special revenue fund and appropriated to the legislative auditor to pay audit expenses.

Sec. 2. Minnesota Statutes 2008, section 8.15, subdivision 3, is amended to read:

Subd. 3. Agreements. (a) To facilitate the delivery of legal services, the attorney general may:

(1) enter into agreements with executive branch agencies, political subdivisions, or quasi-state agencies to provide legal services for the benefit of the citizens of Minnesota; and

(2) in addition to funds otherwise appropriated by the legislature, accept and spend funds received under any agreement authorized in clause (1) for the purpose set forth in clause (1), subject to a report of receipts to the chairs of the senate Finance Committee and the house of representatives Ways and Means Committee by October 15 each year.

(b) When entering into an agreement for legal services, the attorney general must notify the committees responsible for funding the Office of the Attorney General. When the attorney general enters into an agreement with a state agency, the attorney general must also notify the committees responsible for funding that agency.

Funds received under this subdivision must be deposited in ~~the general~~ an account in the special revenue fund and are appropriated to the attorney general for the purposes set forth in this subdivision.

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Sec. 3. Minnesota Statutes 2008, section 13.03, subdivision 10, is amended to read:

Subd. 10. Costs for providing copies of data. Money may be collected by a responsible authority in a state agency for the actual cost to the agency of providing copies or electronic transmittal of government data ~~is appropriated to the agency and added to the appropriations from which the costs were paid~~. When funds collected for purposes in this subdivision are of a magnitude sufficient to warrant a separate account in the state treasury, those funds shall be deposited in a fund other than the general fund and are appropriated to the agency.

Sec. 4. Minnesota Statutes 2008, section 16C.23, subdivision 6, is amended to read:

Subd. 6. State surplus property. The commissioner may do any of the following to dispose of state surplus property:

(1) transfer it to or between state agencies;

(2) transfer it to a governmental unit or nonprofit organization in Minnesota; or

(3) sell it and charge a fee to cover expenses incurred by the commissioner in the disposal of the surplus property.

The proceeds of the sale less the fee must be deposited in an account in a fund other than the general fund and are appropriated to the agency for whose account the sale was made, to be used and expended by that agency to purchase similar state property.

Sec. 5. Minnesota Statutes 2008, section 103B.101, subdivision 9, is amended to read:

Subd. 9. Powers and duties. In addition to the powers and duties prescribed elsewhere, the board shall:

(1) coordinate the water and soil resources planning activities of counties, soil and water conservation districts, watershed districts, watershed management organizations, and any other local units of government through its various authorities for approval of local plans, administration of state grants, and by other means as may be appropriate;

(2) facilitate communication and coordination among state agencies in cooperation with the Environmental Quality Board, and between state and local units of government, in order to make the expertise and resources of state agencies involved in water and soil resources management available to the local units of government to the greatest extent possible;

(3) coordinate state and local interests with respect to the study in southwestern Minnesota under United States Code, title 16, section 1009;

(4) develop information and education programs designed to increase awareness of local water and soil resources problems and awareness of opportunities for local government involvement in preventing or solving them;

(5) provide a forum for the discussion of local issues and opportunities relating to water and soil resources management;

(6) adopt an annual budget and work program that integrate the various functions and responsibilities assigned to it by law; and

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(7) report to the governor and the legislature by October 15 of each even-numbered year with an assessment of board programs and recommendations for any program changes and board membership changes necessary to improve state and local efforts in water and soil resources management.

The board may accept grants, gifts, donations, or contributions in money, services, materials, or otherwise from the United States, a state agency, or other source to achieve an authorized purpose. The board may enter into a contract or agreement necessary or appropriate to accomplish the transfer. The board may receive and expend money to acquire conservation easements, as defined in chapter 84C, on behalf of the state and federal government consistent with the Camp Ripley's Army Compatible Use Buffer Project.

Any money received is hereby deposited in an account in a fund other than the general fund and appropriated and dedicated for the purpose for which it is granted.

Sec. 6. Minnesota Statutes 2008, section 103I.681, subdivision 11, is amended to read:

Subd. 11. Permit fee schedule. (a) The commissioner of natural resources shall adopt a permit fee schedule under chapter 14. The schedule may provide minimum fees for various classes of permits, and additional fees, which may be imposed subsequent to the application, based on the cost of receiving, processing, analyzing, and issuing the permit, and the actual inspecting and monitoring of the activities authorized by the permit, including costs of consulting services.

(b) A fee may not be imposed on a state or federal governmental agency applying for a permit.

(c) The fee schedule may provide for the refund of a fee, in whole or in part, under circumstances prescribed by the commissioner of natural resources. Fees received must be deposited in the state treasury and credited to ~~the general~~ an account in the natural resources fund. Permit fees received are appropriated annually from the ~~general~~ natural resources fund to the commissioner of natural resources for the costs of inspecting and monitoring the activities authorized by the permit, including costs of consulting services.

Sec. 7. Minnesota Statutes 2008, section 116J.551, subdivision 1, is amended to read:

Subdivision 1. Grant account. A contaminated site cleanup and development grant account is created in the ~~general~~ special revenue fund. Money in the account may be used, as appropriated by law, to make grants as provided in section 116J.554 and to pay for the commissioner's costs in reviewing applications and making grants. Notwithstanding section 16A.28, money appropriated to the account for this program from any source is available until spent.

Sec. 8. Minnesota Statutes 2008, section 190.32, is amended to read:

190.32 FEDERAL REIMBURSEMENT RECEIPTS.

The Department of Military Affairs may deposit federal reimbursement receipts into ~~the general fund~~ an account in the special revenue fund, maintenance of military training facilities. These receipts are for services, supplies, and materials initially purchased by the Camp Ripley maintenance account.

Sec. 9. Minnesota Statutes 2008, section 260C.331, subdivision 6, is amended to read:

Subd. 6. Guardian ad litem fees. (a) In proceedings in which the court appoints a guardian ad litem pursuant to section 260C.163, subdivision 5, clause (a), the court may inquire into the ability of the parents to pay for the guardian ad litem's services and, after giving the parents a reasonable opportunity to be heard, may order the parents to pay guardian fees.

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(b) In each fiscal year, the commissioner of management and budget shall deposit guardian ad litem reimbursements in the ~~general~~ special revenue fund and credit them to a separate account with the trial courts. The balance of this account is appropriated to the trial courts and does not cancel but is available until expended. Expenditures by the state court administrator's office from this account must be based on the amount of the guardian ad litem reimbursements received by the state from the courts in each judicial district.

Sec. 10. Minnesota Statutes 2009 Supplement, section 270.97, is amended to read:

270.97 DEPOSIT OF REVENUES.

The commissioner shall deposit all revenues derived from the tax, interest, and penalties received from the county in the contaminated site cleanup and development account in the ~~general~~ special revenue fund and is annually appropriated to the commissioner of the Department of Employment and Economic Development, for the purposes of section 116J.551.

Sec. 11. Minnesota Statutes 2008, section 299C.48, is amended to read:

299C.48 CONNECTION BY AUTHORIZED AGENCY; FEE, APPROPRIATION.

(a) An agency authorized under section 299C.46, subdivision 3, may connect with and participate in the criminal justice data communications network upon approval of the commissioner of public safety; provided, that the agency shall first agree to pay installation charges as may be necessary for connection and monthly operational charges as may be established by the commissioner of public safety. Before participation by a criminal justice agency may be approved, the agency must have executed an agreement with the commissioner providing for security of network facilities and restrictions on access to data supplied to and received through the network.

(b) In addition to any fee otherwise authorized, the commissioner of public safety shall impose a fee for providing secure dial-up or Internet access for criminal justice agencies and noncriminal justice agencies. The following monthly fees apply:

(1) criminal justice agency accessing via Internet, $15;

(2) criminal justice agency accessing via dial-up, $35;

(3) noncriminal justice agency accessing via Internet, $35; and

(4) noncriminal justice agency accessing via dial-up, $35.

(c) The installation and monthly operational charges collected by the commissioner of public safety under paragraphs (a) and (b) must be deposited in an account in the special revenue fund and are annually appropriated to the commissioner to administer sections 299C.46 to 299C.50.

Sec. 12. Minnesota Statutes 2008, section 299E.02, is amended to read:

299E.02 CONTRACT SERVICES; APPROPRIATION.

Fees charged for contracted security services provided by the Capitol Complex Security Division of the Department of Public Safety must be deposited in an account in the special revenue fund and are annually appropriated to the commissioner of public safety to administer and provide these services.

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Sec. 13. Minnesota Statutes 2008, section 446A.086, subdivision 2, is amended to read:

Subd. 2. Application. (a) This section provides a state guarantee of the payment of principal and interest on debt obligations if:

(1) the obligations are issued after June 30, 2000;

(2) application to the Public Facilities Authority is made before issuance; and

(3) the obligations are covered by an agreement meeting the requirements of subdivision 3.

(b) Applications to be covered by the provisions of this section must be made in a form and contain the information prescribed by the authority. Applications are subject to either a fee of $500 for each bond issue requested by a county or governmental unit or the applicable fees under section 446A.087.

(c) Application fees paid under this section must be deposited in a separate credit enhancement bond guarantee account in the ~~general~~ special revenue fund. Money in the credit enhancement bond guarantee account is appropriated to the authority for purposes of administering this section.

(d) Neither the authority nor the commissioner is required to promulgate administrative rules under this section and the procedures and requirements established by the authority or commissioner under this section are not subject to chapter 14.

Sec. 14. Minnesota Statutes 2008, section 469.177, subdivision 11, is amended to read:

Subd. 11. Deduction for enforcement costs; appropriation. (a) The county treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to an authority or municipality. The county treasurer shall pay the amount deducted to the commissioner of management and budget for deposit in ~~the state general~~ an account in the special revenue fund.

(b) The amounts deducted and paid under paragraph (a) are appropriated to the state auditor for the cost of (1) the financial reporting of tax increment financing information and (2) the cost of examining and auditing of authorities' use of tax increment financing as provided under section 469.1771, subdivision 1. Notwithstanding section 16A.28 or any other law to the contrary, this appropriation does not cancel and remains available until spent.

(c) For taxes payable in 2002 and thereafter, the commissioner of revenue shall increase the percent in paragraph (a) to a percent equal to the product of the percent in paragraph (a) and the amount that the statewide tax increment levy for taxes payable in 2002 would have been without the class rate changes in this act and the elimination of the general education levy in this act divided by the statewide tax increment levy for taxes payable in 2002.

Sec. 15. Minnesota Statutes 2008, section 609.3241, is amended to read:

609.3241 PENALTY ASSESSMENT AUTHORIZED.

When a court sentences an adult convicted of violating section 609.322 or 609.324, while acting other than as a prostitute, the court shall impose an assessment of not less than $250 and not more than $500 for a violation of section 609.324, subdivision 2, or a misdemeanor violation of section 609.324, subdivision 3; otherwise the court shall impose an assessment of not less than $500 and not more than $1,000. The mandatory minimum portion of the assessment is to be used for the purposes described in section 626.558, subdivision 2a, and is in addition to the surcharge required by section 357.021, subdivision 6. Any portion of the assessment imposed in excess of the mandatory minimum amount shall be ~~forwarded to the general~~ deposited in an account in the special revenue fund

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and is appropriated annually to the commissioner of public safety. The commissioner, with the assistance of the General Crime Victims Advisory Council, shall use money received under this section for grants to agencies that provide assistance to individuals who have stopped or wish to stop engaging in prostitution. Grant money may be used to provide these individuals with medical care, child care, temporary housing, and educational expenses.

Sec. 16. Minnesota Statutes 2008, section 611.20, subdivision 3, is amended to read:

Subd. 3. Reimbursement. In each fiscal year, the commissioner of management and budget shall deposit the payments in the ~~general~~ special revenue fund and credit them to a separate account with the Board of Public Defense. The amount credited to this account is appropriated to the Board of Public Defense.

The balance of this account does not cancel but is available until expended. Expenditures by the board from this account for each judicial district public defense office must be based on the amount of the payments received by the state from the courts in each judicial district. A district public defender's office that receives money under this subdivision shall use the money to supplement office overhead payments to part-time attorneys providing public defense services in the district. By January 15 of each year, the Board of Public Defense shall report to the chairs and ranking minority members of the senate and house of representatives divisions having jurisdiction over criminal justice funding on the amount appropriated under this subdivision, the number of cases handled by each district public defender's office, the number of cases in which reimbursements were ordered, the average amount of reimbursement ordered, and the average amount of money received by part-time attorneys under this subdivision.

Sec. 17. Laws 1994, chapter 531, section 1, is amended to read:

Section 1. SALE OF WILDLIFE LANDS.

Notwithstanding Minnesota Statutes, sections 84.027, subdivision 10; 92.45; 94.09 to 94.165; 97A.135; 103F.535, or any other law, the commissioner of administration may sell lands located in the Gordy Yaeger wildlife management area in Olmsted county. The consideration for the lands described in sections 2 and 3 shall be $950 per acre. The conveyances shall be by ~~guitclaim~~ quitclaim deed in a form approved by the attorney general and shall reserve to the state all minerals and mineral rights. The proceeds received from the sales are to be deposited in an account in the ~~general~~ natural resources fund and are appropriated to the commissioner of natural resources for acquisition of replacement wildlife management area lands. These sales are pursuant to the recommendation of the Gordy Yaeger wildlife management area advisory committee.

Sec. 18. EFFECTIVE DATE.

Sections 1 to 17 are effective July 1, 2010."

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Atkins from the Committee on Commerce and Labor to which was referred:

H. F. No. 2060, A bill for an act relating to commerce; regulating public adjusters; modifying the notice of cancellation and prohibited practices; regulating insurance claims for residential roofing goods and services; amending Minnesota Statutes 2008, section 72B.135, subdivisions 2, 4; proposing coding for new law in Minnesota Statutes, chapter 325E.

Reported the same back with the following amendments:

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Page 1, delete section 1

Page 3, after line 15, insert:

"Sec. 3. [326B.811] RESIDENTIAL ROOFING CONTRACT; RIGHT TO CANCEL.

Subdivision 1. Required. A person who has entered into a written contract with a residential roofer to provide goods and services to be paid by the insured from the proceeds of a property or casualty insurance policy has the right to cancel the contract within 72 hours after the insured has been notified by the insurer that the claim has been denied. Cancellation is evidenced by the insured giving written notice of cancellation to the residential roofer at the address stated in the contract. Notice of cancellation, if given by mail, is effective upon deposit in a mailbox, properly addressed to the residential roofer and postage prepaid. Notice of cancellation need not take a particular form and is sufficient if it indicates, by any form of written expression, the intention of the insured not to be bound by the contract.

Subd. 2. Writing required; notice of right to cancel; notice of cancellation. (a) Before entering a contract referred to in subdivision 1, the residential roofer must:

(1) furnish the insured with a statement in boldface type of a minimum size of ten points, in substantially the following form:

"You may cancel this contract at any time within 72 hours after you have been notified that your insurer has denied your claim to pay for the goods and services to be provided under this contract. See attached notice of cancellation form for an explanation of this right."; and

(2) furnish each insured a fully completed form in duplicate, captioned, "NOTICE OF CANCELLATION," which shall be attached to the contract and easily detachable, and which shall contain in boldface type of a minimum size of ten points the following information and statements:

"NOTICE OF CANCELLATION

If your insurer denies your claim to pay for goods and services to be provided under this contract, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to (name of residential roofer) at (address of residential roofer's place of business) at any time within 72 hours after you have been notified that your claim has been denied. If you cancel, any payments made by you under the contract will be returned within ten business days following receipt by the residential roofer of your cancellation notice.

I HEREBY CANCEL THIS TRANSACTION.

…………………………………………………

(date)

…………………………………………………

(Insured's signature)"

Subd. 3. Return of payments; compensation. Within ten days after a contract referred to in subdivision 1 has been canceled, the residential roofer must tender to the insured any payments made by the insured and any note or other evidence of indebtedness. However, if the residential roofer has performed any emergency services, the residential roofer is entitled to compensation for such services."

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Renumber the sections in sequence

Amend the title as follows:

Page 1, line 2, delete everything after the first semicolon

Page 1, line 3, delete everything before "regulating" and after "regulating" insert "contract cancellations and"

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass.

The report was adopted.

Atkins from the Committee on Commerce and Labor to which was referred:

H. F. No. 2062, A bill for an act relating to poverty; establishing the Ladder Out of Poverty Task Force; providing for its membership and duties; providing legislative appointments.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. LADDER OUT OF POVERTY TASK FORCE.

Subdivision 1. Purpose. The final report of the Commission to End Poverty by 2020 set forth the following strategies regarding the building and maintaining of wealth and assets:

(1) establish public policies to encourage Minnesotans to accumulate and maintain assets;

(2) ban predatory financial practices that erode or deplete existing assets; and

(3) increase financial literacy to reduce vulnerability to predatory practices and enhance the ability to acquire assets and build wealth, and achieve and maintain self-sufficiency.

The purpose of the Ladder Out of Poverty Task Force ("the task force") created in this section is to implement and build on the strategies set forth by the Legislative Commission to End Poverty by 2020 to help poor and near-poor Minnesotans, including older women, who are among the poorest of Minnesotans, have accounted for a larger share of subprime loans, and are particularly vulnerable to predatory lending and financial hardship, to avert or escape poverty.

Achieving this purpose will require strong collaboration and coordination among the public, private, nonprofit, academic, and philanthropic sectors.

Subd. 2. Creation. (a) The task force consists of the following members:

(1) four senators, including two members of the majority party and two members of the minority party, appointed by the Subcommittee on Committees of the Committee on Rules and Administration of the senate;

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(2) four members of the house of representatives, including two members of the majority party, appointed by the speaker of the house, and two members of the minority party, appointed by the minority leader;

(3) the commissioner of the Minnesota Department of Commerce or the commissioner's designee; and

(4) the attorney general or the attorney general's designee.

(b) The task force shall ensure that representatives of the following have the opportunity to meet with and present views to the task force: credit unions; independent community banks; state and federal financial institutions; community action agencies; faith-based financial counseling agencies; faith-based social justice organizations; legal services organizations representing low-income persons; nonprofit organizations providing free tax preparation services as part of the volunteer income tax assistance program; relevant state and local agencies; University of Minnesota faculty involved in personal and family financial education; philanthropic organizations that have as one of their missions combating predatory lending; organizations representing older Minnesotans; and organizations representing the interests of women, Latinos and Latinas, African-Americans, Asian-Americans, American Indians, and immigrants.

Subd. 3. Duties. (a) At a minimum, the task force must identify specific policies, strategies, and actions to:

(1) increase opportunities for poor and near-poor families and individuals to acquire assets and create and build wealth;

(2) expand the utilization of Family Assets for Independence in Minnesota (FAIM) or other culturally specific individual development account programs;

(3) reduce or eliminate predatory financial practices in Minnesota through regulatory actions, legislative enactments, and the development and deployment of alternative, nonpredatory financial products;

(4) provide incentives or assistance to private sector financial institutions to offer additional programs and services that provide alternatives to and education about predatory financial products;

(5) provide financial literacy information to low-income families and individuals at the time the recipient has the ability, opportunity, and motivation to receive, understand, and act on the information provided; and

(6) identify incentives and mechanisms to increase community engagement in combating poverty and helping poor and near-poor families and individuals to acquire assets and create and build wealth.

(b) By June 1, 2012, the task force must provide written recommendations and any draft legislation necessary to implement the recommendations to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over commerce and consumer protection.

Subd. 4. Administrative provisions. (a) The director of the Legislative Coordinating Commission, or a designee of the director, must convene the initial meeting of the task force by September 15, 2010. The members of the task force must elect a chair or cochairs from the legislative members at the initial meeting.

(b) Members of the task force serve without compensation or payment of expenses.

(c) The task force expires June 1, 2012, or upon the submission of the report required under subdivision 3, whichever is earlier.

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(d) The task force may accept gifts and grants, which are accepted on behalf of the state and constitute donations to the state. The funds must be deposited in an account in the special revenue fund and are appropriated to the Legislative Coordinating Committee for purposes of the task force.

(e) The Legislative Coordinating Commission shall provide fiscal services to the task force as needed under this subdivision.

Subd. 5. Deadline for appointments and designations. The appointments and designations authorized under this section must be completed no later than August 15, 2010.

EFFECTIVE DATE. This section is effective the day following final enactment."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on State and Local Government Operations Reform, Technology and Elections.

The report was adopted.

Hilstrom from the Committee on Public Safety Policy and Oversight to which was referred:

H. F. No. 2463, A bill for an act relating to public safety; establishing a pilot project for alcohol and controlled substance monitoring for certain persons with revoked driver's licenses in Crow Wing County.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Finance.

The report was adopted.

Atkins from the Committee on Commerce and Labor to which was referred:

H. F. No. 2599, A bill for an act relating to commerce; prohibiting the use of live check solicitations; proposing coding for new law in Minnesota Statutes, chapter 325F.

Reported the same back with the following amendments:

Page 1, line 8, after the period, insert "For purposes of this section, "live check" does not include a live check issued by a lender or financial institution, as defined in section 47.605, subdivision 1."

Page 1, line 12, delete everything after the period

Page 1, delete line 13

With the recommendation that when so amended the bill pass.

The report was adopted.

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Mullery from the Committee on Civil Justice to which was referred:

H. F. No. 2612, A bill for an act relating to civil commitment; clarifying civil commitment venue; amending Minnesota Statutes 2008, sections 253B.02, by adding a subdivision; 253B.045, subdivision 2; 253B.05, subdivision 3; 253B.064, subdivision 1; 253B.07, subdivisions 1, 2, 2d; 253B.185, subdivision 1; 253B.20, subdivision 4; 253B.23, subdivision 1, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 253B.10, subdivision 3.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Otremba from the Committee on Agriculture, Rural Economies and Veterans Affairs to which was referred:

H. F. No. 2621, A bill for an act relating to veterans; eliminating a residency requirement for purposes of eligibility for higher educational benefits for the surviving spouse and children of a deceased veteran who dies as a result of military service; amending Minnesota Statutes 2008, section 197.75, subdivision 1.

Reported the same back with the following amendments:

Page 1, line 11, reinstate the stricken language

Page 1, line 12, reinstate the stricken language and delete the new language and after "armed forces" insert "or at any time during the person's military service or at the time of death,"

Page 1, line 13, reinstate the stricken language and delete the new language

Page 1, line 14, strike "Veterans Administration." and insert "Department of Veterans Affairs. Deceased veteran also includes a veteran who has died as a result of the person's military service and whose surviving spouse or child was a Minnesota resident at any time during the veteran's military service or at the time of the veteran's death."

Page 1, line 16, after "natural" insert ", step"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Finance.

The report was adopted.

Atkins from the Committee on Commerce and Labor to which was referred:

H. F. No. 2629, A bill for an act relating to telecommunications; reducing the plurality necessary in a local election for a municipality to own and operate a telephone exchange; amending Minnesota Statutes 2008, section 237.19.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. MUNICIPALITY OPERATION OF TELEPHONE EXCHANGE.

For the purpose of this section, "county" means a county that, as of January 1, 2010, has passed a county sales tax for the purpose, among other things, of funding the construction of a countywide high-speed communications infrastructure network, and has received federal funding from the Rural Utilities Service Broadband Initiatives

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Program for some of its construction costs of the telephone exchange. Notwithstanding Minnesota Statutes, section 237.19, a county may construct a new telephone exchange within its own borders where an exchange already exists, upon authorization of a majority of those voting thereon voting in favor of the undertaking at a general election or special election called for that purpose. Except as provided in this section, Minnesota Statutes, section 237.19, applies to a county.

EFFECTIVE DATE. This section is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to telecommunications; modifying the voting requirements necessary to authorize local government construction of certain telephone exchanges."

With the recommendation that when so amended the bill pass.

The report was adopted.

Atkins from the Committee on Commerce and Labor to which was referred:

H. F. No. 2639, A bill for an act relating to public safety; authorizing wireless telecommunications service providers to provide call locations for emergencies; amending Minnesota Statutes 2008, section 626A.01, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 626A.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Public Safety Policy and Oversight.

The report was adopted.

Otremba from the Committee on Agriculture, Rural Economies and Veterans Affairs to which was referred:

H. F. No. 2672, A bill for an act relating to veterans; clarifying the transit fee exemption provisions related to veterans with service-connected disabilities; amending Minnesota Statutes 2009 Supplement, sections 174.24, subdivision 7; 473.408, subdivision 10.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Finance.

The report was adopted.

Mullery from the Committee on Civil Justice to which was referred:

H. F. No. 2819, A bill for an act relating to juvenile records; modifying provisions governing public access to certain juvenile records; limiting release of records with informed consent; amending Minnesota Statutes 2008, section 260B.171, subdivision 5.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Public Safety Policy and Oversight.

The report was adopted.

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Mullery from the Committee on Civil Justice to which was referred:

H. F. No. 2825, A bill for an act relating to property held in trust; clarifying status of certain distributions; changing certain relationship and inheritance provisions; providing for emergency and temporary conservators; amending Minnesota Statutes 2008, sections 501B.64, subdivision 3; 524.1-201; 524.2-114; Minnesota Statutes 2009 Supplement, section 524.5-409; proposing coding for new law in Minnesota Statutes, chapter 524.

Reported the same back with the following amendments:

Page 6, line 8, delete "6" and insert "4" and delete "7" and insert "5"

Page 8, line 21, delete "parents" and insert "parent"

Page 9, line 2, delete "this" and after "section" insert "524.2-120"

Page 13, after line 3, insert:

"Sec. 13. EFFECTIVE DATE.

Sections 1 and 11 are effective the day following final enactment. Sections 2 to 10 are effective August 1, 2010, and apply to the rights of successors of decedents dying on or after August 1, 2010, and to any instruments executed before August 1, 2010, unless there is a clear indication of contrary intent in the instrument."

With the recommendation that when so amended the bill pass.

The report was adopted.

Eken from the Committee on Environment Policy and Oversight to which was referred:

H. F. No. 2838, A bill for an act relating to natural resources; authorizing the acquisition of certain lands for Lake Vermilion State Park; incorporating lands from an existing state park into Lake Vermilion State Park; repealing Minnesota Statutes 2008, section 85.012, subdivision 53a.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Finance.

The report was adopted.

Atkins from the Committee on Commerce and Labor to which was referred:

H. F. No. 2855, A bill for an act relating to labor and industry; modifying boiler provisions; amending and imposing civil and criminal penalties; amending Minnesota Statutes 2008, sections 326B.94, as amended; 326B.954; 326B.956; 326B.958; 326B.96; 326B.961, as added if enacted; 326B.964; 326B.966; 326B.97; 326B.98; 326B.986, subdivision 10; 326B.99; 326B.994, subdivision 3; 326B.998; Minnesota Statutes 2009 Supplement, sections 326B.972; 326B.986, subdivision 8; 326B.988; proposing coding for new law in Minnesota Statutes, chapter 326B; repealing Minnesota Statutes 2008, sections 326B.952; 326B.962; 326B.968; 326B.982; 326B.996; Minnesota Statutes 2009 Supplement, section 326B.986, subdivision 2; Minnesota Rules, parts 5225.1400; 5225.3100; 5225.3150; 5225.3200.

Reported the same back with the following amendments:

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Page 2, line 5, after "licensing." insert "Every individual who operates a boat must hold a current master's license issued by the commissioner, unless the individual holds a valid, current Charter Boat Captain's license issued by the United States Coast Guard."

Page 8, line 13, delete "until all defects are corrected and the correction is" and insert "if the inspector determines that the boiler or pressure vessel is unsafe. The boiler or pressure vessel shall not be operated until these unsafe defects have been corrected and"

Page 8, line 14, delete "reinspection of the boiler or pressure vessel" and insert "the inspector"

Page 9, delete section 6

Page 14, after line 14, insert:

"Sec. 12. Minnesota Statutes 2009 Supplement, section 326B.986, subdivision 2, is amended to read:

Subd. 2. Fee amounts; master's. The license and application fee for an initial master's license is $70, ~~or $40 if the applicant possesses a valid, unlimited, current United States Coast Guard master's license~~. The renewal fee for a master's license is $20 for one year or $40 for two years. If the renewal fee is paid later than 30 days after expiration, then a late fee of $15 will be added to the renewal fee."

Page 16, line 19, after "argon" insert ", nitrous oxide"

Page 16, line 21, after "device" insert ". The owner of the vessel shall perform annual visual inspections and planned maintenance on these vessels to ensure vessel integrity"

Page 16, line 23, delete "and"

Page 16, line 24, after "heating" insert "or other hot liquid" and delete the period and insert "; and"

Page 16, after line 24, insert:

"(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or less."

Page 16, line 26, after "license" insert "and annual inspection by the department"

Page 18, line 25, delete "original"

Page 18, line 26, delete "manufacturer's"

Page 19, line 5, after the first semicolon, insert "326B.96, subdivision 1;"

Page 19, line 6, delete everything after "326B.996,"

Page 19, line 7, delete "2,"

Renumber the sections in sequence and correct the internal references

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Civil Justice.

The report was adopted.

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Carlson from the Committee on Finance to which was referred:

H. F. No. 2859, A bill for an act relating to human services; modifying a nursing facility rate provision; amending Minnesota Statutes 2008, section 256B.431, subdivision 35.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 256B.431, subdivision 35, is amended to read:

Subd. 35. Exclusion of raw food cost adjustment. For rate years beginning on or after July 1, 2001, in calculating a nursing facility's operating cost per diem for the purposes of ~~constructing~~ comparing to an array, ~~determining~~ a median, or ~~otherwise performing a~~ other statistical measure of nursing facility payment rates to be used to determine future rate ~~increases~~ adjustments under this section, section 256B.434, or any other section, the commissioner shall exclude adjustments for raw food costs under subdivision 2b, paragraph (h), that are related to providing special diets based on religious beliefs. "

With the recommendation that when so amended the bill pass.

The report was adopted.

Hilstrom from the Committee on Public Safety Policy and Oversight to which was referred:

H. F. No. 2881, A bill for an act relating to public safety; authorizing certain qualified persons with medical training or supervision to take blood samples from DWI offenders; providing legal immunity; amending Minnesota Statutes 2008, section 169A.51, subdivision 7.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Civil Justice.

The report was adopted.

Pelowski from the Committee on State and Local Government Operations Reform, Technology and Elections to which was referred:

H. F. No. 2899, A bill for an act relating to data practices; providing an administrative remedy for certain data practices and open meetings law violations; providing civil penalties; appropriating money; proposing coding for new law in Minnesota Statutes, chapters 13; 13D; repealing Minnesota Statutes 2008, sections 13.08, subdivision 4; 13D.06.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 13.072, subdivision 2, is amended to read:

Subd. 2. Effect. Opinions issued by the commissioner under this section are not binding on the government entity or members of a body subject to chapter 13D whose data or performance of duties is the subject of the opinion, but an opinion described in subdivision 1, paragraph (a), must be given deference by a court or other

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tribunal in a proceeding involving the data. The commissioner shall arrange for public dissemination of opinions issued under this section. This section does not preclude a person from bringing any other action under this chapter or other law in addition to or instead of requesting a written opinion. A government entity, members of a body subject to chapter 13D, or person that acts in conformity with a written opinion of the commissioner issued to the government entity, members, or person or to another party is not liable for compensatory or exemplary damages or awards of attorneys fees in actions for violations arising under section 13.08 or 13.085, or for a penalty under section 13.09 or for fines, awards of attorney fees, or any other penalty under chapter 13D. A member of a body subject to chapter 13D is not subject to forfeiture of office if the member was acting in reliance on an opinion.

Sec. 2. Minnesota Statutes 2008, section 13.08, subdivision 4, is amended to read:

Subd. 4. Action to compel compliance. (a) Actions to compel compliance may be brought either under section 13.085 or this subdivision. For actions under this subdivision, in addition to the remedies provided in subdivisions 1 to 3 or any other law, any aggrieved person seeking to enforce the person's rights under this chapter or obtain access to data may bring an action in district court to compel compliance with this chapter and may recover costs and disbursements, including reasonable attorney's fees, as determined by the court. If the court determines that an action brought under this subdivision is frivolous and without merit and a basis in fact, it may award reasonable costs and attorney fees to the responsible authority. If the court issues an order to compel compliance under this subdivision, the court may impose a civil penalty of up to $1,000 against the government entity. This penalty is payable to the state general fund and is in addition to damages under subdivision 1. The matter shall be heard as soon as possible. In an action involving a request for government data under section 13.03 or 13.04, the court may inspect in camera the government data in dispute, but shall conduct its hearing in public and in a manner that protects the security of data classified as not public. If the court issues an order to compel compliance under this subdivision, the court shall forward a copy of the order to the commissioner of administration.

(b) In determining whether to assess a civil penalty under this subdivision, the court or other tribunal shall consider whether the government entity has substantially complied with general data practices under this chapter, including but not limited to, whether the government entity has:

(1) designated a responsible authority under section 13.02, subdivision 16;

(2) designated a data practices compliance official under section 13.05, subdivision 13;

(3) prepared the public document that names the responsible authority and describes the records and data on individuals that are maintained by the government entity under section 13.05, subdivision 1;

(4) developed public access procedures under section 13.03, subdivision 2; procedures to guarantee the rights of data subjects under section 13.05, subdivision 8; and procedures to ensure that data on individuals are accurate and complete and to safeguard the data's security under section 13.05, subdivision 5;

(5) acted in conformity with an opinion issued under section 13.072 that was sought by a government entity or another person; or

(6) provided ongoing training to government entity personnel who respond to requests under this chapter.

(c) The court shall award reasonable attorney fees to a prevailing plaintiff who has brought an action under this subdivision if the government entity that is the defendant in the action was also the subject of a written opinion issued under section 13.072 and the court finds that the opinion is directly related to the cause of action being litigated and that the government entity did not act in conformity with the opinion.

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Sec. 3. [13.085] ADMINISTRATIVE REMEDY.

Subdivision 1. Definition. As used in this section, "office" means the Office of Administrative Hearings.

Subd. 2. Complaints. (a) A complaint alleging a violation of this chapter for which an order to compel compliance is requested may be filed with the office. An action to compel compliance does not include procedures pursuant to section 13.04, subdivision 4 or 4a. An action may not be filed under this section in matters involving requests for educational data classified under section 13.32.

(b) The complaint must be filed with the office within two years after the occurrence of the act or failure to act that is the subject of the complaint, except that if the act or failure to act involves concealment or misrepresentation that could not be discovered during that period, the complaint may be filed with the office within one year after the concealment or misrepresentation is discovered.

(c) The complaint must be made in writing, submitted under oath, and detail the factual basis for the claim that a violation of law has occurred. The office may prescribe a standard form for the complaint. The complaint must be accompanied by a filing fee of $1,000 or a bond to guarantee the payment of this fee.

(d) Upon receipt of a filed complaint, the office must immediately notify the respondent and, if known, the applicable responsible authority, if the responsible authority is not otherwise named as the respondent. The office must provide the respondent with a copy of the complaint by the most expeditious means available. Notice to a responsible authority must be delivered by certified mail. The office must also notify, to the extent practicable, any individual or entity that is the subject of all or part of the data in dispute.

(e) The office must notify the commissioner of administration of an action filed under this section. Proceedings under this section must be dismissed if a request for an opinion from the commissioner was accepted on the matter under section 13.072 before the complaint was filed, and the complainant's filing fee must be refunded.

(f) The respondent must file a response to the complaint within 15 business days of receipt of the notice. For good cause shown, the office may extend the time for filing a response.

Subd. 3. Probable cause review. (a) The chief administrative law judge must assign an administrative law judge to review each complaint. Within 20 business days after a response is filed, or the respondent's time to file the response, including any extension, has expired, the administrative law judge must make a preliminary determination for its disposition as follows:

(1) If the administrative law judge determines that the complaint and any timely reply of the respondent agency do not present sufficient facts to believe that a violation of this chapter has occurred, the complaint must be dismissed.

(2) If the administrative law judge determines that the complaint and any timely reply of the respondent agency do present sufficient facts to believe that a violation of this chapter has occurred, the judge must schedule a hearing as provided in subdivision 4.

(b) The office must notify all parties of the determination made under paragraph (a). The notice must provide as follows:

(1) If the complaint is scheduled for a hearing, the notice must identify the time and place of the hearing and inform all parties that they may submit evidence, affidavits, documentation, and argument for consideration by the administrative law judge.

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(2) If the complaint is dismissed for failure to present sufficient facts to believe that a violation of this chapter has occurred, the notice must inform the parties of the right of the complainant to seek reconsideration of the decision on the record by the chief administrative law judge, as provided in paragraph (c).

(c) A petition for reconsideration may be filed no later than five business days after a complaint is dismissed for failure to present sufficient facts to believe that a violation of this chapter has occurred. The chief administrative law judge must review the petition and make a final ruling within ten business days after its receipt. If the chief administrative law judge determines that the assigned administrative law judge made a clear material error, the chief administrative law judge must schedule the matter for a hearing as provided in subdivision 4.

Subd. 4. Hearing; procedure. (a) A hearing on a complaint must be held within 30 business days after the parties are notified that a hearing will be held. An oral hearing to resolve questions of law may be waived upon consent of all parties and the presiding administrative law judge. For good cause shown, the judge may delay the date of a hearing by no more than ten business days. The judge may continue a hearing to enable the parties to submit additional evidence or testimony.

(b) The administrative law judge must consider any evidence and argument submitted until the hearing record is closed, including affidavits and documentation.

(c) All hearings, and any records relating to the hearing, must be open to the public, except that the judge may inspect in camera any government data in dispute and shall otherwise conduct the hearing and maintain records in a manner that protects the security of data classified or alleged to be classified as not public. A hearing may be conducted by conference telephone call or interactive audio/video system, at the discretion of the presiding judge, and upon consent of all parties.

Subd. 5. Disposition. (a) Following a hearing, the judge must determine whether the violation alleged in the complaint occurred and must make at least one of the following dispositions. The judge may:

(1) dismiss the complaint;

(2) find that an act or failure to act constituted a violation of this chapter;

(3) impose a civil penalty against the respondent of up to $300;

(4) issue an order compelling the respondent to comply with a provision of law that has been violated, and may establish a deadline for production of data, if necessary; and

(5) refer the complaint to the appropriate prosecuting authority for consideration of criminal charges.

(b) In determining whether to assess a civil penalty, the office shall consider the factors described in section 13.08, subdivision 4.

(c) The judge must render a decision on a complaint within ten business days after the hearing record closes. The chief administrative law judge shall provide for public dissemination of orders issued under this section. If the judge determines that a government entity has violated a provision of law and issues an order to compel compliance, the office shall forward a copy of the order to the commissioner of administration. Any order issued pursuant to this section is enforceable through the district court for the district in which the respondent is located.

(d) A party aggrieved by a final decision on a complaint filed under this section is entitled to judicial review as provided in sections 14.63 to 14.69. Proceedings on a complaint are not a contested case within the meaning of chapter 14 and are not otherwise governed by chapter 14.

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(e) A decision of the office under this section is not controlling in any subsequent action brought in district court alleging the same violation and seeking damages.

(f) A government entity or person that releases not public data pursuant to an order under this section is immune from civil and criminal liability for that release. A government entity or person that acts in conformity with an order issued under this section to the government entity or to any other person is not liable for compensatory or exemplary damage or awards of attorney fees for acting in conformity with that order in actions under this section or section 13.08, or for a penalty under section 13.09.

Subd. 6. Costs; attorney fees. (a) A rebuttable presumption shall exist that a complainant who substantially prevails on the merits in an action brought under this section is entitled to an award of reasonable attorney fees, not to exceed $5,000. An award of attorney fees may be denied if the judge determines that the violation is merely technical or that there is a genuine uncertainty about the meaning of the governing law.

(b) Reasonable attorney fees, not to exceed $5,000, must be awarded to a substantially prevailing complainant if the government entity that is the respondent in the action was also the subject of a written opinion issued under section 13.072 and the administrative law judge finds that the opinion is directly related to the matter in dispute and that the government entity did not act in conformity with the opinion.

(c) The office shall refund the filing fee of a substantially prevailing complainant in full, less $50, and the office's costs in conducting the matter shall be billed to the respondent, not to exceed $1,000.

(d) A complainant who does not substantially prevail on the merits is entitled to a refund of the filing fee, less any costs incurred by the office in conducting the matter.

(e) If the administrative law judge determines that a complaint is frivolous, or brought for purposes of harassment, the judge must order that the complainant pay the respondent's reasonable attorney fees, not to exceed $5,000. The complainant is not entitled to a refund of the filing fee.

(f) The court shall award the complainant costs and attorney fees incurred in bringing an action in district court to enforce an order of the office under this chapter.

Subd. 7. Special account; appropriation. Proceeds collected by the office from filing fees and bonds submitted under this section shall be deposited into a special account and are appropriated to the office for use in administering the requirements of this section.

Sec. 4. EFFECTIVE DATE.

This act is effective August 1, 2010, and applies to actions commenced on or after that date."

Delete the title and insert:

"A bill for an act relating to data practices; providing an administrative remedy for certain data practices law violations; providing civil penalties; appropriating money; amending Minnesota Statutes 2008, sections 13.072, subdivision 2; 13.08, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 13."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Civil Justice.

The report was adopted.

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Thissen from the Committee on Health Care and Human Services Policy and Oversight to which was referred:

H. F. No. 2938, A bill for an act relating to human services; modifying programs and licensure provisions for services to persons with disabilities; amending Minnesota Statutes 2008, section 326B.43, subdivision 2; Minnesota Statutes 2009 Supplement, sections 245A.03, subdivision 7; 245A.11, subdivisions 7a, 7b; 256D.44, subdivision 5; Laws 2009, chapter 79, article 8, sections 81; 84.

Reported the same back with the following amendments:

Page 1, lines 20 and 22, reinstate the stricken language and delete the new language

Page 1, line 24, reinstate the stricken language and delete the new language and strike "or"

Page 2, line 3, strike the period and insert "; or"

Page 2, delete lines 4 to 7, and insert:

"(6) foster care licenses under section 245A.11, subdivision 7a."

Page 2, lines 8, 14, and 33, reinstate the stricken language and delete the new language

Page 3, delete section 2

Page 9, delete line 6 and insert "~~building of six or more units.~~ In a multiunit building of six or more units, the maximum number of units that may be used by"

Page 9, line 7, reinstate everything before "~~The~~"

Page 9, line 8, reinstate the stricken "This paragraph expires"

Page 9, line 9, reinstate the stricken language and strike "2011" and insert "2012"

Page 12, delete section 7

Renumber the sections in sequence

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Civil Justice.

The report was adopted.

Eken from the Committee on Environment Policy and Oversight to which was referred:

H. F. No. 2954, A bill for an act relating to natural resources; providing for general burning permits; modifying authority to establish forestry services fees; modifying timber sales provisions; eliminating certain pilot projects and reports; amending Minnesota Statutes 2008, sections 88.17, subdivisions 1, 3; 88.79, subdivision 2; 90.041, by adding a subdivision; 90.14; repealing Minnesota Statutes 2008, section 90.172; Minnesota Statutes 2009 Supplement, section 88.795.

Reported the same back with the following amendments:

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Page 3, after line 29, insert:

"Sec. 4. Minnesota Statutes 2009 Supplement, section 88.795, is amended to read:

88.795 FOREST MANAGEMENT LEASE PILOT PROJECT.

(a) Notwithstanding the permit procedures of chapter 90, the commissioner of natural resources may lease ~~up to 10,000 acres of~~ state-owned forest lands for forest management purposes for a term not to exceed 21 years. No person or entity may lease more than ~~3,000~~ 20,000 acres. The lease shall provide:

(1) that the lessee must comply with timber harvesting and forest management guidelines developed under section 89A.05 and landscape-level plans under section 89A.06 that have been adopted by the Minnesota Forest Resources Council, and in effect at the time of any management activity; and

(2) for public access for hunting, fishing, and motorized and nonmotorized recreation to the leased land that is the same as would be available under state management.

(b) For the purposes of this section, the term "state-owned forest lands" may include school trust lands as defined in section 92.025 or university land granted to the state by Acts of Congress.

(c) By December 15, 2009, the commissioner of natural resources shall provide a report to the house of representatives and senate natural resources policy and finance committees and divisions on the pilot project. The report will detail a plan for the implementation of the pilot project with a starting date that is no later than July 1, 2010.

(d) Upon implementation of the pilot project, the commissioner shall provide an annual report to the house of representatives and senate natural resources policy and finance committees and divisions on the progress of the project, including the acres leased, a breakdown of the types of forest land, and amounts harvested by species. The report shall include a net revenue analysis comparing the lease revenue with the estimated net revenue that would be obtained through state management and silvicultural practices cost savings the state realizes through leasing.

(e) Nothing in this section supersedes the duties of the commissioner of natural resources to properly manage forest lands under the authority of the commissioner, as defined in section 89.001, subdivision 13."

Page 4, after line 2, insert:

"Sec. 6. Minnesota Statutes 2008, section 90.121, is amended to read:

90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000 CORDS.

(a) The commissioner may sell the timber on any tract of state land in lots not exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under section 90.101, and related laws, subject to the following special exceptions and limitations:

(1) the commissioner shall offer all tracts authorized for sale by this section separately from the sale of tracts of state timber made pursuant to section 90.101;

(2) no bidder may be awarded more than 25 percent of the total tracts offered at the first round of bidding unless fewer than four tracts are offered, in which case not more than one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered for private sale as authorized by section 90.101, subdivision 1, to persons eligible under this section at the appraised value; and

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(3) no sale may be made to a person having more than 20 30 employees.