A quorum was present.

Lesch was excused.

The Chief Clerk proceeded to read the Journal of the preceding day. Newton 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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PETITIONS AND COMMUNICATIONS

The following communication was received:

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 Acts of the 2010 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2010

Date Filed

2010

2373 185 11:15 a.m. March 9 March 9

2309 186 11:17 a.m. March 9 March 9

2352 187 11:20 a.m. March 9 March 9

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. 677, A bill for an act relating to health occupations; establishing a regulation system for technicians performing body art procedures and for body art establishments; adopting penalty fees; proposing coding for new law as Minnesota Statutes, chapter 146B.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [146B.01] DEFINITIONS.

Subdivision 1. Scope. The terms defined in this section apply to this chapter.

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Subd. 2. Aftercare. "Aftercare" means written instructions given to a client, specific to the procedure rendered, on caring for the body art and surrounding area. These instructions must include information on when to seek medical treatment.

Subd. 3. Antiseptic. "Antiseptic" means an agent that destroys disease-causing microorganisms on human skin or mucosa.

Subd. 4. Body art. "Body art" means physical body adornment using, but not limited to, the following techniques: body piercing, tattooing, micropigmentation, cosmetic tattooing, branding, scarification, suspension, subdermal implantation, microdermal, tongue bifurcation, and tissue removal. Body art does not include practices and procedures that are performed by a licensed medical or dental professional if the procedure is within the professional's scope of practice.

Subd. 5. Body art establishment. "Body art establishment" or "establishment" means any structure or venue, whether permanent, temporary, or mobile, where body art is performed. Mobile establishments include vehicle-mounted units, either motorized or trailered, and readily moveable without dissembling and where body art procedures are regularly performed in more than one geographic location.

Subd. 6. Body piercing. "Body piercing" means the penetration or puncturing of the skin by any method for the purpose of inserting jewelry or other objects in or through the body. Body piercing does not include the piercing of the outer perimeter or the lobe of the ear using a presterilized single-use stud-and-clasp ear-piercing system.

Subd. 7. Branding. "Branding" means an indelible mark burned into the skin using instruments of thermal cautery, radio hyfrecation, and strike branding.

Subd. 8. Commissioner. "Commissioner" means the commissioner of health.

Subd. 9. Contaminated waste. "Contaminated waste" means any liquid or semiliquid blood or other potentially infectious materials; contaminated items that would release blood or other potentially infectious materials in a liquid or semiliquid state if compressed; items that are caked with dried blood or other potentially infectious materials and are capable of releasing these materials during handling; and sharps and any wastes containing blood and other potentially infectious materials, as defined in Code of Federal Regulations, title 29, section 1910.1030, known as "Occupational Exposure to Bloodborne Pathogens."

Subd. 10. Department. "Department" means the Department of Health.

Subd. 11. Equipment. "Equipment" means all machinery, including fixtures, containers, vessels, tools, devices, implements, furniture, display and storage areas, sinks, and all other apparatus and appurtenances used in the operation of a body art establishment.

Subd. 12. Guest artist. "Guest artist" means an individual who performs body art procedures according to the requirements under section 146B.04.

Subd. 13. Hand sink. "Hand sink" means a sink equipped with hot and cold water held under pressure, used solely for washing hands, wrists, arms, or other portions of the body.

Subd. 14. Hot water. "Hot water" means water at a temperature of at least 110 degrees Fahrenheit.

Subd. 15. Jewelry. "Jewelry" means any personal ornament inserted into a newly pierced area.

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Subd. 16. Liquid chemical germicide. "Liquid chemical germicide" means a tuberculocidal disinfectant or sanitizer registered with the Environmental Protection Agency.

Subd. 17. Microdermal. "Microdermal" means a single-point perforation of any body part other than an earlobe for the purpose of inserting an anchor with a step either protruding from or flush with the skin.

Subd. 18. Micropigmentation or cosmetic tattooing. "Micropigmentation or cosmetic tattooing" means the use of tattoos for permanent makeup or to hide or neutralize skin discolorations.

Subd. 19. Operator. "Operator" means any person who controls, operates, or manages body art activities at a body art establishment and who is responsible for the establishment's compliance with these regulations, whether or not the person actually performs body art activities.

Subd. 20. Procedure area. "Procedure area" means the physical space or room used solely for conducting body art procedures.

Subd. 21. Procedure surface. "Procedure surface" means the surface area of furniture or accessories that may come into contact with the client's clothed or unclothed body during a body art procedure and the area of the client's skin where the body art procedure is to be performed and the surrounding area, or any other associated work area requiring sanitizing.

Subd. 22. Safe level. "Safe level" means not more than 50 colonies of microorganisms per four square inches of equipment or procedure surface.

Subd. 23. Scarification. "Scarification" means an indelible mark fixed on the body by the production of scars.

Subd. 24. Sharps. "Sharps" means any object, sterile or contaminated, that may purposefully or accidentally cut or penetrate the skin or mucosa including, but not limited to, presterilized single-use needles, scalpel blades, and razor blades.

Subd. 25. Sharps container. "Sharps container" means a closed, puncture-resistant, leak-proof container, labeled with the international biohazard symbol, that is used for handling, storage, transportation, and disposal.

Subd. 26. Single use. "Single use" means products or items intended for onetime use which are disposed of after use on a client. This definition includes, but is not limited to, cotton swabs or balls, tissues or paper products, paper or plastic cups, gauze and sanitary coverings, razors, piercing needles, tattoo needles, scalpel blades, stencils, ink cups, and protective gloves.

Subd. 27. Sterilization. "Sterilization" means a process resulting in the destruction of all forms of microbial life, including highly resistant bacterial spores.

Subd. 28. Subdermal implantation. "Subdermal implantation" means the implantation of an object entirely below the dermis.

Subd. 29. Supervision. "Supervision" means the presence of a technician licensed under this chapter while a body art procedure is being performed.

Subd. 30. Suspension. "Suspension" means the suspension of the body from affixed hooks placed through temporary piercings.

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Subd. 31. Tattooing. "Tattooing" means any method of placing indelible ink or other pigments into or under the skin or mucosa with needles or any other instruments used to puncture the skin, resulting in permanent coloration of the skin or mucosa.

Subd. 32. Technician. "Technician" means any individual who performs or practices body art procedures.

Subd. 33. Temporary body art establishment. "Temporary body art establishment" means any place or premise operating at a fixed location where an operator performs body art procedures for no more than 21 days in conjunction with a single event or celebration.

Subd. 34. Tissue removal. "Tissue removal" means an indelible mark or figure fixed on the body by the removal of dermis.

Subd. 35. Tongue bifurcation. "Tongue bifurcation" means the cutting of the tongue from the tip to the base, forking at the end.

Sec. 2. [146B.02] ESTABLISHMENT LICENSE PROCEDURES.

Subdivision 1. General. Beginning January 1, 2011, no person acting individually or jointly with any other person may maintain, own, or operate a body art establishment in the state without an establishment license issued by the commissioner in accordance with this chapter, except as permitted under subdivision 8 or 9.

Subd. 2. Requirements. (a) Each application for an initial establishment license and for renewal must be submitted to the commissioner on a form provided by the commissioner accompanied with the applicable fee required under section 146B.10. The application must contain:

(1) the name of the owner and operator of the establishment;

(2) the location of the establishment;

(3) verification of compliance with all applicable local and state codes;

(4) a description of the general nature of the business; and

(5) any other relevant information deemed necessary by the commissioner.

(b) Upon initial approval, the commissioner shall issue a provisional establishment license effective for one year from the date of issuance. Upon the approval of an application for renewal, the commissioner shall issue a new license effective for three years from the date of issuance.

Subd. 3. Inspection. (a) Within one year of the issuance of the provisional establishment license, and thereafter at least one time during each three-year licensure period, the commissioner shall conduct an inspection of the body art establishment and a review of any records necessary to ensure that the standards required under this chapter are met.

(b) If the establishment seeking licensure is new construction or if a licensed establishment is remodeling, the establishment must meet all local building and zoning codes.

(c) The commissioner shall have the authority to enter the premises to make the inspection. Refusal to permit an inspection constitutes valid grounds for licensure denial or revocation.

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Subd. 4. Location restricted. No person may perform a body art procedure at any location other than a body art establishment licensed under this chapter except as permitted under subdivisions 8 and 9.

Subd. 5. Transfer and display of license. A body art establishment license must be issued to a specific person and location and is not transferable. A license must be prominently displayed in a public area of the establishment.

Subd. 6. Establishment information. The following information must be kept on file for two years on the premises of the establishment and must be made available for inspection upon request by the commissioner:

(1) a description of all body art procedures performed by the establishment;

(2) copies of the spore tests conducted on each sterilizer; and

(3) the following information for each technician or guest artist employed or performing body art procedures in the establishment:

(i) name;

(ii) home address;

(iii) home telephone number;

(iv) date of birth;

(v) copy of an identification photo; and

(vi) license number or guest artist registration number.

Subd. 7. Establishments located in a private residence. If the body art establishment is located within a private residence, the space where the body art procedures are performed must be completely partitioned off and separate from the residential living, eating, and bathroom areas, and must meet the standards of this chapter. The space used for body procedures must be made available for inspection upon the request of the commissioner.

Subd. 8. Temporary events permit. (a) An owner or operator of a temporary body art establishment shall submit an application for a temporary events permit to the commissioner at least 14 days before the start of the event. The application must include the specific days and hours of operation. The owner or operator shall comply with the requirements of this chapter.

(b) The temporary events permit must be prominently displayed in a public area at the location.

(c) The temporary events permit, if approved, is valid for the specified dates and hours listed on the application. No temporary events permit shall be issued for longer than a 21-day period, and may not be renewed.

Subd. 9. Exception. (a) Any body art establishment located within a county or municipal jurisdiction that has enacted an ordinance that establishes licensure for body art establishments operating within the jurisdiction shall be exempt from this chapter if the provisions of the ordinance meet or exceed the provisions of this chapter. Any county or municipal jurisdiction that maintains an ordinance that meets this exception may limit the types of body art procedures that may be performed in body art establishments located within its jurisdiction.

(b) A body art establishment license under this chapter is not required if the establishment is licensed as a salon under chapter 155A.

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(c) Any individual performing body art procedures in an establishment that meets an exception under this subdivision must be licensed as a body art technician under this chapter.

Sec. 3. [146B.03] LICENSURE FOR BODY ART TECHNICIANS.

Subdivision 1. Licensure required. Effective January 1, 2011, no individual may perform body art procedures unless the individual holds a valid technician license issued by the commissioner under this chapter, except as provided in subdivision 3.

Subd. 2. Designation. No individual may use the title of "tattooist," "tattoo artist," "body piercer," "body piercing artist," "body art practitioner," "body art technician," or other letters, words, or titles in connection with that individual's name which in any way represents that the individual is engaged in the practice of tattooing or body piercing, or authorized to do so, unless the individual is licensed and authorized to perform body art procedures under this chapter.

Subd. 3. Exceptions. (a) The following individuals may perform body art procedures within the scope of their practice without a technician's license:

(1) a physician licensed under chapter 147;

(2) a nurse licensed under sections 148.171 to 148.285;

(3) a chiropractor licensed under chapter 148;

(4) an acupuncturist licensed under chapter 147B;

(5) a physician's assistant licensed under chapter 147A; or

(6) a dental professional licensed under chapter 150A.

(b) A guest artist under section 146B.04 may perform body art procedures in accordance with the requirements of section 146B.04.

Subd. 4. Licensure requirements. An applicant for licensure under this section shall submit to the commissioner on a form provided by the commissioner:

(1) proof that the applicant is over the age of 18;

(2) all fees required under section 146B.10;

(3) proof of completing a minimum of 200 hours of supervised experience;

(4) proof of having satisfactorily completed coursework approved by the commissioner on bloodborne pathogens, the prevention of disease transmission, infection control, cardiopulmonary resuscitation (CPR), first aid, and aseptic technique. Courses to be considered for approval by the commissioner may include, but are not limited to, those administered by one of the following:

(i) the American Red Cross;

(ii) United States Occupational Safety and Health Administration (OSHA); or

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(iii) the Alliance of Professional Tattooists; and

(5) any other relevant information requested by the commissioner.

Subd. 5. Action on licensure applications. The commissioner shall notify the applicant in writing of the action taken on the application. If licensure is denied, the applicant must be notified of the determination and the grounds for it, and the applicant may request a hearing under chapter 14 on the determination by filing a written statement with the commissioner within 30 days after receipt of the notice of denial. After the hearing, the commissioner shall notify the applicant in writing of the decision.

Subd. 6. Licensure term; renewal. (a) A technician's license is valid for two years from the date of issuance and may be renewed upon payment of the renewal fee established under section 146B.10.

(b) At renewal, a licensee must submit proof of continuing education approved by the commissioner in the areas identified in subdivision 4, clause (4).

Subd. 7. Temporary licensure. (a) The commissioner may issue a temporary license to an applicant who submits to the commissioner on a form provided by the commissioner:

(1) proof that the applicant is over the age of 18;

(2) all fees required under section 148B.10; and

(3) a letter from a licensed technician who has agreed to provide the supervision to meet the supervised experience requirement under subdivision 4, clause (3).

(b) Upon completion of the required supervised experience, the temporary licensee shall submit documentation of satisfactorily completing the requirements under subdivision 4, clauses (3) and (4), and the applicable fee under section 146B.10. The commissioner shall issue a new license in accordance with subdivision 4.

Subd. 8. License by reciprocity. The commissioner shall issue a technician's license to a person who holds a current license, certification, or registration from another state if the commissioner determines that the standards for licensure, certification, or registration in the other jurisdiction meets or exceeds the requirements for licensure stated in this chapter and a letter is received from that jurisdiction stating that the applicant is in good standing.

Subd. 9. Transfer and display of license. A license issued under this section is not transferable to another individual. A valid license must be displayed at the establishment site and available to the public upon request.

Subd. 10. Transition period. Until January 1, 2012, the supervised experience requirement under subdivision 4, clause (3), shall be waived by the commissioner if the applicant submits to the commissioner evidence satisfactory to the commissioner that the applicant has performed body art procedures for 2,080 hours within the last five years.

Sec. 4. [146B.04] TEMPORARY LICENSURE FOR GUEST ARTISTS.

Subdivision 1. General. Before an individual may work as a guest artist, the commissioner shall issue a temporary license to the guest artist. The guest artist shall submit an application to the commissioner on a form provided by the commissioner. The form must include:

(1) the name, home address, and date of birth of the guest artist;

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(2) the name of the licensed technician sponsoring the guest artist;

(3) proof of having satisfactorily completed coursework approved by the commissioner on bloodborne pathogens, the prevention of disease transmission, infection control, cardiopulmonary resuscitation (CPR), first aid, and aseptic technique;

(4) the starting and anticipated completion dates the guest artist will be working; and

(5) a copy of any current body art credential or licensure issued by another local or state jurisdiction.

Subd. 2. Guest artists. A guest artist may not conduct body art procedures for more than 30 days per calendar year per licensed establishment. If the guest artist exceeds this time period, the guest artist must apply for a technician's license under section 146B.03.

Sec. 5. [146B.05] GROUNDS FOR DENIAL OF AN ESTABLISHMENT LICENSE OR EMERGENCY CLOSURE.

Subdivision 1. General. If any of the following conditions exist, the owner or operator of a licensed establishment may be ordered by the commissioner to discontinue all operations of a licensed body art establishment or the commissioner may refuse to grant or renew, suspend, or revoke licensure:

(1) evidence of a sewage backup in an area of the body art establishment where body art activities are conducted;

(2) lack of potable, plumbed, or hot or cold water to the extent that handwashing or toilet facilities are not operational;

(3) lack of electricity or gas service to the extent that handwashing, lighting, or toilet facilities are not operational;

(4) significant damage to the body art establishment due to tornado, fire, flood, or another disaster;

(5) evidence of an infestation of rodents or other vermin;

(6) evidence of any individual performing a body art procedure without a license as required under this chapter;

(7) evidence of existence of a public health nuisance;

(8) use of instruments or jewelry that are not sterile;

(9) failure to maintain required records;

(10) failure to use gloves as required;

(11) failure to properly dispose of sharps, blood or body fluids, or items contaminated by blood or body fluids;

(12) failure to properly report complaints of potential bloodborne pathogen transmission to the commissioner; or

(13) evidence of a positive spore test on the sterilizer.

Subd. 2. Licensure or reopening requirements. Prior to license approval or renewal or the reopening of the establishment, the establishment shall submit to the commissioner satisfactory proof that the problem condition causing the need for the licensure action or emergency closure has been corrected or removed by the operator of the establishment. A body art establishment may not reopen without the written approval of the commissioner and a valid establishment license.

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Sec. 6. [146B.06] HEALTH AND SAFETY STANDARDS.

Subdivision 1. Establishment standards. (a) Except as permitted under subdivision 2, the body art establishment must meet the health and safety standards in this subdivision before a licensed technician may conduct body art procedures at the establishment.

(b) The procedure area must be separated from any other area that may cause potential contamination of work surfaces.

(c) For clients requesting privacy, at a minimum, a divider, curtain, or partition must be provided to separate multiple procedure areas.

(d) All procedure surfaces must be smooth, nonabsorbent, and easily cleanable.

(e) The establishment must have a readily accessible hand sink equipped with:

(1) potable hot and cold running water under pressure;

(2) liquid hand soap;

(3) single-use paper towels or a mechanical hand drier or blower; and

(4) a garbage can with a foot-operated lid or with no lid and a removable liner.

(f) All ceilings in the body art establishment must be in good condition.

(g) All walls and floors must be free of open holes or cracks and be washable and no carpeting may be in areas used for procedures other than tattooing. Carpeting may be in areas used exclusively for tattooing if the carpet is clean and unstained.

(h) All facilities within the establishment must be maintained in a clean and sanitary condition and in good working order.

(i) No animals may be present during a body art procedure, unless the animal is a service animal.

Subd. 2. Establishment exception. Any establishment that is operating as a body art establishment on August 1, 2010, may request an exemption from any of the health and safety standards required under subdivision 1 that would require remodeling in order to comply. The request for an exemption shall be submitted in writing to the commissioner, and shall not be considered final until notification is received from the commissioner that the exemption is approved.

Subd. 3. Standards for equipment, instruments, and supplies. (a) Equipment, instruments, and supplies must comply with the health and safety standards in this subdivision before a licensed technician may conduct body art procedures.

(b) Jewelry used as part of a body art procedure must be made of surgical implant-grade stainless steel, solid 14-karat or 18-karat white or yellow gold, niobium, titanium, or platinum, or a dense low-porosity plastic. Use of jewelry that is constructed of wood, bone, or other porous material is prohibited.

(c) Jewelry used as part of a body art procedure must be free of nicks, scratches, or irregular surfaces and must be properly sterilized before use.

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(d) Reusable instruments must be thoroughly washed to remove all organic matter, rinsed, and sterilized before and after use.

(e) Needles must be single-use needles and sterilized before use.

(f) Sterilization must be conducted using steam heat or chemical vapor.

(g) All sterilization units must be operated according to the manufacturer's specifications.

(h) At least once a month, but not to exceed 30 days between tests, a spore test must be conducted on each sterilizer used to ensure proper functioning. If a positive spore test result is received, the sterilizer at issue may not be used until a negative result is obtained.

(i) All inks and other pigments used in a body art procedure must be specifically manufactured for tattoo procedures.

(j) Immediately before applying a tattoo, the quantity of the ink needed must be transferred from the ink bottle and placed into single-use paper or plastic cups immediately before applying the tattoo. Upon completion of the tattoo, the single-use cups and their contents must be discarded.

(k) All tables, chairs, furniture, or other procedure surfaces that may be exposed to blood or body fluids during the body art procedure must be cleanable and must be sanitized after each client with a liquid chemical germicide.

(l) Single-use towels or wipes must be provided to the client. These towels must be dispensed in a manner that precludes contamination and disposed of in a washable garbage container with a foot-operated lid or with no lid and a removal liner.

(m) All bandages and surgical dressings used must be sterile or bulk-packaged clean and stored in a clean, closed container.

(n) All equipment and instruments must be maintained in good working order and in a clean and sanitary condition.

(o) All instruments and supplies must be stored clean and dry in covered containers.

(p) Single-use disposable barriers must be provided on all equipment that cannot be sterilized as part of the procedure as required under this section including, but not limited to, spray bottles, procedure light fixture handles, and tattoo machines.

Subd. 4. Standards for body art procedures. (a) All body art procedures must comply with the health and safety standards in this subdivision.

(b) The skin area subject to a body art procedure must be thoroughly cleaned with soap and water, rinsed thoroughly, and swabbed with an antiseptic solution. Only single-use towels or wipes may be used to clean the skin.

(c) Whenever it is necessary to shave the skin, a new disposable razor must be used for each client and disposed after use.

(d) No body art procedure may be performed on any area of the skin where there is an evident infection, irritation, or open wound.

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(e) Single-use nonabsorbent gloves of adequate size and quality to preserve dexterity must be used for touching clients, for handling sterile instruments, or for handling blood or body fluids. Nonlatex gloves must be used with clients or employees who request them or when petroleum products are used. Gloves must be changed if a glove becomes damaged or comes in contact with any nonclean surface or objects or with a third person. At a minimum, gloves must be discarded after the completion of a procedure on a client. Hands and wrists must be washed before putting on a clean pair of gloves and after removing a pair of gloves.

Subd. 5. Standards for technicians. (a) Technicians must comply with the health and safety standards in this subdivision.

(b) Technicians must scrub their hands and wrists thoroughly before and after performing a body art procedure, after contact with the client receiving the procedure, and after contact with potentially contaminated materials.

(d) A technician may not perform a body art procedure if the technician has any open sores visible or in a location that may come in contact with the client.

Subd. 6. Contamination standards. (a) Infectious waste and sharps must be managed according to sections 116.76 to 116.83 and must be disposed of by an approved infectious waste hauler at a site permitted to accept the waste, according to Minnesota Rules, parts 7035.9100 to 7035.9150. Sharps ready for disposal must be disposed of in an approved sharps container.

(b) Contaminated waste that may release liquid blood or body fluids when compressed or that may release dried blood or body fluids when handled must be placed in an approved red bag that is marked with the international biohazard symbol.

(c) Contaminated waste that does not release liquid blood or body fluids when compressed or handled may be placed in a covered receptacle and disposed of through normal approved disposal methods.

(d) Storage of contaminated waste onsite must not exceed the period specified by Code of Federal Regulations, title 29, section 1910.1030.

Sec. 7. [146B.07] PROFESSIONAL STANDARDS.

Subdivision 1. Standard practice. (a) A technician shall require proof of age before performing any body art procedure on a client. Proof of age must be established by one of the following methods:

(1) a valid driver's license or identification card issued by the state of Minnesota or another state that includes a photograph and date of birth of the individual;

(2) a valid military identification card issued by the United States Department of Defense;

(3) a valid passport;

(4) a resident alien card; or

(5) a tribal identification card.

(b) No technician shall perform a body art procedure on any individual under the age of 18 years unless the individual provides a notarized written consent of a parent or legal guardian or the individual's parent or legal guardian is present and a consent form is signed by a parent or legal guardian in the presence of the technician. The consent must include both the custodial and noncustodial parents, where applicable.

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(c) Before performing any body art procedure, the technician must provide the client with a disclosure and authorization form that indicates whether the client has:

(1) diabetes;

(2) a history of hemophilia;

(3) a history of skin diseases, skin lesions, or skin sensitivities to soap or disinfectants;

(4) a history of epilepsy, seizures, fainting, or narcolepsy;

(5) any condition that requires the client to take medications such as anticoagulants that thin the blood or interfere with blood clotting; or

(6) any other information that would aid the technician in the body art procedure process evaluation.

The technician shall ask the client to sign and date the disclosure and authorization form confirming that the information listed on the form was provided.

(d) No technician shall perform body art procedures on any individual who appears to be under the influence of alcohol, controlled substances as defined in section 152.01, subdivision 4, or hazardous substances as defined in rules adopted under chapter 182.

(e) No technician shall perform body art procedures while under the influence of alcohol, controlled substances as defined under section 152.01, subdivision 4, or hazardous substances as defined in the rules adopted under chapter 182.

(f) No technician shall administer anesthetic injections or other medications.

(g) Before performing any body art procedure, the technician shall offer and make available to the client personal draping, as appropriate.

Subd. 2. Informed consent. Before performing a body art procedure, the technician shall obtain from the client a signed and dated informed consent form. The consent form must disclose:

(1) that a tattoo is considered permanent and may only be removed with a surgical procedure and that any effective removal may leave scarring; and

(2) that a piercing may leave scarring.

Subd. 3. Client record maintenance. For each client, the body art establishment operator shall maintain proper records of each procedure. The records of the procedure must be kept for two years and must be available for inspection by the commissioner upon request. The record must include the following:

(1) the date of the procedure;

(2) the information on the required picture identification showing the name, age, and current address of the client;

(3) a copy of the release form signed and dated by the client required under subdivision 1, paragraph (c);

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(4) a description of the body art procedure performed;

(5) the name and license number of the technician performing the procedure;

(6) a copy of the consent form required under subdivision 2; and

(7) if the client is under the age of 18 years, a copy of the consent form signed by the parent or legal guardian as required under subdivision 1.

Subd. 4. Aftercare. A technician shall provide each client with verbal and written instructions for the care of the tattooed or pierced site upon the completion of the procedure. The written instructions must advise the client to consult a health care professional at the first sign of infection.

Subd. 5. State, county, and municipal public health regulations. An operator and technician shall comply with all applicable state, county, and municipal requirements regarding public health.

Subd. 6. Notification. The operator of the body art establishment shall immediately notify the commissioner or local health authority of any reports they receive of a potential bloodborne pathogen transmission.

Sec. 8. [146B.08] INVESTIGATION PROCESS AND GROUNDS FOR DISCIPLINARY ACTION.

Subdivision 1. Investigations of complaints. The commissioner may initiate an investigation upon receiving a signed complaint or other signed written communication that alleges or implies that an individual or establishment has violated this chapter. According to section 214.13, subdivision 6, in the receipt, investigation, and hearing of a complaint that alleges or implies an individual or establishment has violated this chapter, the commissioner shall follow the procedures in section 214.10.

Subd. 2. Rights of applicants and licensees. The rights of an applicant denied licensure are stated in section 146B.03, subdivision 5. A licensee may not be subjected to disciplinary action under this section without first having an opportunity for a contested case hearing under chapter 14.

Subd. 3. Grounds for disciplinary action by commissioner. The commissioner may take any of the disciplinary actions listed in subdivision 4 on proof that a technician or an operator of an establishment has:

(1) intentionally submitted false or misleading information to the commissioner;

(2) failed, within 30 days, to provide information in response to a written request by the commissioner;

(3) violated any provision of this chapter;

(4) failed to perform services with reasonable judgment, skill, or safety due to the use of alcohol or drugs, or other physical or mental impairment;

(5) aided or abetted another person in violating any provision of this chapter;

(6) been or is being disciplined by another jurisdiction, if any of the grounds for the discipline are the same or substantially equivalent to those under this chapter;

(7) not cooperated with the commissioner in an investigation conducted according to subdivision 1;

(8) advertised in a manner that is false or misleading;

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(9) engaged in conduct likely to deceive, defraud, or harm the public;

(10) demonstrated a willful or careless disregard for the health, welfare, or safety of a client;

(11) obtained money, property, or services from a client through the use of undue influence, harassment, duress, deception, or fraud;

(12) failed to refer a client to a health care professional for medical evaluation or care when appropriate; or

(13) been convicted of a felony-level criminal sexual conduct offense. "Conviction" means a plea of guilty, a verdict of guilty by a jury, or a finding of guilty by a court.

Subd. 4. Disciplinary actions. If the commissioner finds that a technician or an operator of an establishment should be disciplined according to subdivision 3, the commissioner may take any one or more of the following actions:

(1) refuse to grant or renew licensure;

(2) suspend licensure for a period not exceeding one year;

(3) revoke licensure;

(4) take any reasonable lesser action against an individual upon proof that the individual has violated this chapter; or

(5) impose, for each violation, a civil penalty not exceeding $10,000 that deprives the licensee of any economic advantage gained by the violation and that reimburses the department for costs of the investigation and proceedings resulting in disciplinary action, including the amount paid for services of the Office of Administrative Hearings, the amount paid for services of the Office of the Attorney General, attorney fees, court reporters, witnesses, reproduction of records, department staff time, and expenses incurred by department staff.

Subd. 5. Consequences of disciplinary actions. Upon the suspension or revocation of licensure, the technician or establishment shall cease to:

(1) perform body art procedures;

(2) use titles protected under this chapter; and

(3) represent to the public that the technician or establishment is licensed by the commissioner.

Subd. 6. Reinstatement requirements after disciplinary action. A technician who has had licensure suspended may petition on forms provided by the commissioner for reinstatement following the period of suspension specified by the commissioner. The requirements of section 146B.03 for renewing licensure must be met before licensure may be reinstated.

Sec. 9. [146B.09] COUNTY OR MUNICIPAL REGULATION.

Nothing in this chapter preempts or supersedes any county or municipal ordinance relating to land use, building and construction requirements, nuisance control, or the licensing of commercial enterprises in general.

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Sec. 10. [146B.10] FEES.

Subdivision 1. Biennial licensing fees. (a) The fee for the initial technician licensure and biennial licensure renewal is $.......

(b) The fee for temporary technician licensure is $......

(d) The fee for a provisional establishment license is $.......

(e) The fee for an establishment license is $.......

(f) The fee for a temporary body art establishment permit and renewal is $.......

Subd. 2. Penalty for late renewals. The penalty fee for late submission for renewal applications is $.......

Subd. 3. Deposit. Fees collected by the commissioner under this section must be deposited in the state government special revenue fund.

Sec. 11. Minnesota Statutes 2008, section 325F.814, subdivision 1, is amended to read:

Subdivision 1. Prohibition. No person may provide body piercing ~~services~~ for a person under the age of 18 without the notarized written consent of a parent or legal guardian or the parent or legal guardian is present and a consent form is signed by a parent or legal guardian in the presence of the person performing the body piercing. The consent must include both the custodial and noncustodial parents, where applicable. ~~The provider of the services must witness the execution and dating of the consent by the parent or legal guardian.~~

Sec. 12. Minnesota Statutes 2008, section 609.2246, subdivision 1, is amended to read:

Subdivision 1. Requirements. No person under the age of 18 may receive a tattoo unless the person provides a notarized written ~~parental~~ consent ~~to the tattoo~~ of a parent or legal guardian or the parent or legal guardian is present and a consent form is signed by a parent or legal guardian in the presence of the person performing the tattoo. The consent must include both the custodial and noncustodial parents, where applicable.

Sec. 13. EFFECTIVE DATE.

Sections 1 to 12 are effective August 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 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. 773, A bill for an act relating to insurance; clarifying the definition of health carrier; amending Minnesota Statutes 2008, section 62A.011, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [62A.0115] HEALTH PLAN COMPANIES.

The term "health plan company" or "health plan companies," when used in Minnesota Statutes, does not apply to an entity that offers, sells, issues, or renews only products expressly excluded from the definition of a health plan under section 62A.011, subdivision 3, clauses (2), (4), (8), and (9), except for sections 3.7394; 62A.021; 62J.80; 72A.139; 72A.20, or unless otherwise specified."

Delete the title and insert:

"A bill for an act relating to health; modifying certain definitions; proposing coding for new law in Minnesota Statutes, chapter 62A."

With the recommendation that when so amended the bill be re-referred to the Committee on Commerce and Labor without further recommendation.

The report was adopted.

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

H. F. No. 797, A bill for an act relating to agriculture; clarifying that horses and other equines are livestock and raising them is an agricultural pursuit; proposing coding for new law in Minnesota Statutes, chapter 17.

Reported the same back with the following amendments:

Page 1, line 12, delete everything after the period

Page 1, delete lines 13 to 15

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. 1157, A bill for an act relating to commerce; regulating franchise agreements between outdoor sport equipment dealers, manufacturers, and distributors; proposing coding for new law as Minnesota Statutes, chapter 80G.

Reported the same back with the following amendments:

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Delete everything after the enacting clause and insert:

"Section 1. [80G.01] DEFINITIONS.

Subdivision 1. Scope. For the purposes of sections 80G.01 to 80G.11, the terms defined in this section have the meanings given them.

Subd. 2. Dealership agreement. "Dealership agreement" means a written agreement of definite or indefinite duration between an outdoor sport equipment manufacturer and an outdoor sport equipment dealer or distributor that enables the dealer to purchase equipment from the manufacturer or dealer and provides for the rights and obligations of the parties with respect to the purchase or sale of outdoor sport equipment.

Subd. 3. Designated successor. "Designated successor" means one or more persons nominated by the dealer, in a written document filed by the dealer with the manufacturer or distributor at the time the dealership agreement is executed, to succeed the dealer in the event of the dealer's death or incapacity.

Subd. 4. Outdoor sport equipment. "Outdoor sport equipment" means snowmobiles as defined in section 84.81, subdivision 3; all-terrain vehicles as defined in section 84.92, subdivision 8; personal watercraft as defined in section 86B.005, subdivision 14a; watercraft as defined in section 86B.005, subdivision 18; and off-highway motorcycles, as defined in section 84.787, subdivision 7, and all attachments and repair parts for all of this equipment.

Subd. 5. Outdoor sport equipment dealer or dealer. "Outdoor sport equipment dealer" or "dealer" means a person engaged in acquiring outdoor sport equipment from a manufacturer and reselling the outdoor sport equipment at wholesale or retail.

Subd. 6. Outdoor sport equipment distributor or distributor. "Outdoor sport equipment distributor" means a person, other than a manufacturer, who offers for sale, sells, or distributes outdoor sport equipment to an outdoor sport equipment dealer or who maintains a factory representative, or who controls a person who offers for sale, sells, or distributes outdoor equipment to an outdoor sport equipment dealer. "Distributor" includes a wholesaler.

Subd. 7. Outdoor sport equipment manufacturer or manufacturer. "Outdoor sport equipment manufacturer" or "manufacturer" means a person engaged in the manufacture or assembly of outdoor sport equipment. The term also includes any successor in interest of the outdoor sport equipment manufacturer, including any purchaser of assets or stock, any surviving corporation resulting from a merger or liquidation, any receiver or assignee, or any trustee of the original outdoor sport equipment manufacturer.

Subd. 8. Person. "Person" means an individual, partnership, limited partnership, corporation, limited liability company, trustee of a trust, personal representative of an estate, or any other type of business entity.

Subd. 9. Proposed outdoor sport equipment dealer. "Proposed outdoor sport equipment dealer" or "proposed dealer" means a person who has an application for a new dealership agreement pending with a manufacturer or distributor. Proposed dealer does not include a person whose dealership agreement is being renewed or continued.

Sec. 2. [80G.02] DEALERSHIP AGREEMENT AND COMPLIANCE REQUIRED FOR SALE OR PURCHASE OF OUTDOOR SPORT EQUIPMENT.

A manufacturer or distributor shall not offer for sale to a new outdoor sport equipment dealer, and a new or proposed new outdoor sport equipment dealer shall not offer to purchase from a manufacturer, new outdoor sport equipment without first entering into a written dealership agreement and complying with all other applicable provisions of this chapter. The written agreement may provide for certain types of routine transactions to be done orally.

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Sec. 3. [80G.03] CONTENTS OF DEALERSHIP AGREEMENT.

Each dealership agreement must include, but is not limited to, all of the following:

(1) the territory or market area;

(2) the period of time covered by the dealership agreement;

(3) performance and marketing standards;

(4) notice provisions for termination, cancellation, or nonrenewal;

(5) obligations in the preparation and delivery of product and warranty service;

(6) disposition obligations upon termination, cancellation, or nonrenewal relating to inventory, equipment, furnishings, special tools, and required signs acquired within the 18 months immediately prior to the date of termination, cancellation, or nonrenewal; and

(7) dispute resolution procedures.

Sec. 4. [80G.04] SALE, TRANSFER, EXCHANGE OF DEALERSHIP; CONSENT; CRITERIA; PROHIBITED CONDUCT.

(a) A manufacturer or distributor shall not unreasonably withhold consent to the sale, transfer, or exchange of a dealership to a person who meets the criteria, if any, set forth in the dealership agreement.

(b) Failure by a manufacturer or distributor to respond within 60 days after receipt of a written request by the dealer to the manufacturer or distributor for consent to the sale, transfer, or exchange of a dealership is considered consent to the request.

Sec. 5. [80G.05] INABILITY OF DESIGNATED SUCCESSOR TO SUCCEED OUTDOOR SPORT EQUIPMENT DEALER.

If a designated successor is not able to succeed the outdoor sport equipment dealer because of the designated successor's death or legal incapacity, the dealer may, at any time after that death or incapacity, execute and deliver to the manufacturer or distributor a new document nominating a designated successor.

Sec. 6. [80G.06] DESIGNATED SUCCESSOR OF DECEASED OR INCAPACITATED SPORT EQUIPMENT DEALER; NOTICE OF INTENT; EXISTING DEALERSHIP AGREEMENT; PERSONAL AND FINANCIAL DATA; NOTICE OF REFUSAL TO APPROVE SUCCESSION.

(a) A designated successor of a deceased or incapacitated new sport equipment dealer may succeed the dealer in the ownership or operation of the dealership under the existing dealership agreement if the designated successor gives the manufacturer or distributor written notice of the designated successor's intention to succeed to the dealership within 60 days after the dealer's death or incapacity and agrees to be bound by all of the terms and conditions of the dealership agreement. A manufacturer or distributor may refuse to honor the existing dealer agreement with the designated successor for good cause or on the basis of criteria agreed to in the existing dealership agreement.

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(b) The manufacturer or distributor may request from a designated successor the personal and financial data necessary to determine whether the existing dealership agreement should be honored with the designated successor. Upon request, the designated successor shall supply the personal and financial data.

(c) Within 60 days after receiving the notice of the designated successor's intent to succeed the dealer in the ownership and operation of the dealership or within 60 days after receiving the requested personal and financial data, whichever occurs last, if a manufacturer or distributor believes that good cause or other criteria agreed to in the existing dealership agreement exist for refusing to honor the succession, the manufacturer or distributor may provide written notice to the designated successor of its refusal to approve the succession.

Sec. 7. [80G.07] CANCELLATION AND ALTERATION OF DEALERSHIPS.

Subdivision 1. Termination by manufacturer or distributor. (a) No manufacturer or distributor, directly or through any officer, agent, or employee, may terminate, cancel, or fail to renew a dealership agreement without good cause.

(b) The burden of proving good cause is on the manufacturer or distributor.

(1) failure by the dealer to comply substantially with essential and reasonable requirements imposed or sought to be imposed by the manufacturer or distributor, which requirements are not discriminatory as compared to requirements imposed by the manufacturer or distributor on other similarly situated dealers, either by the terms or in the manner of their enforcement;

(2) a substantial breach of the dealership agreement that the dealer has not cured within a reasonable time after notice of the breach by the manufacturer;

(3) without the consent of the outdoor sport equipment manufacturer, who shall not withhold consent unreasonably:

(i) the outdoor sport equipment dealer has transferred an interest in the outdoor sport equipment dealership;

(ii) there has been a withdrawal from the dealership of an individual proprietor, partner, major shareholder, or the manager of the dealership; or

(iii) there has been a substantial reduction in interest of a partner or major stockholder;

(4) the outdoor sport equipment dealer has filed a voluntary petition in bankruptcy or has had an involuntary petition in bankruptcy filed against it that has not been discharged within 30 days after the filing, there has been a closeout or other sale of a substantial part of the dealer's assets related to the outdoor sport equipment business, or there has been a commencement of dissolution or liquidation of the dealer;

(5) there has been a change without the prior written approval of the manufacturer, in the location of the dealer's principal place of business under the dealership agreement;

(6) the outdoor sport equipment dealer has defaulted under a chattel mortgage or other security agreement between the dealer and the outdoor sport equipment manufacturer, or there has been a revocation or discontinuance of a guarantee of the dealer's present or future obligations to the outdoor sport equipment manufacturer;

(7) the outdoor sport equipment dealer has abandoned the business;

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(8) the outdoor sport equipment dealer has pleaded guilty to or has been convicted of a felony affecting the relationship between the dealer and manufacturer;

(9) the outdoor sport equipment dealer has engaged in conduct that is injurious or detrimental to the dealer's customers or to the public welfare; or

(10) the outdoor sport equipment dealer, after receiving notice from the manufacturer of its requirements for reasonable market penetration based on the manufacturer's experience in other comparable marketing areas, fails to meet the manufacturer's market penetration requirements. In setting market penetration requirements, manufacturers shall take into consideration local economic conditions, local demographics, and other unique circumstances.

Subd. 2. Termination, cancellation, or nonrenewal by dealer. A dealer may terminate, cancel, or nonrenew a dealership agreement at any time, upon 180 days' written notice to the manufacturer or distributor, unless a shorter period is agreed upon by the parties. This prohibition does not apply to a failure to renew due to the death of the dealer or the death of an individual who is at least a 50 percent owner of the dealership.

Subd. 3. Recovery of costs, disbursements, and attorney fees. If the plaintiff is the prevailing party in a civil action brought against a manufacturer or distributor for violation of this section, the plaintiff must be awarded costs and disbursements and reasonable attorney fees.

Sec. 8. [80G.08] REPURCHASE OF INVENTORY REQUIRED.

(a) If a manufacturer or distributor terminates a dealership agreement as a result of any action, except for good cause under section 80G.07, or if the dealer terminates or cancels a dealership agreement under section 80G.07, subdivision 3, the manufacturer or distributor shall repurchase the inventory as provided in this section. The dealer may keep part or all of the inventory if it desires to do so, and the manufacturer agrees in writing. If the dealer has an outstanding debt to the manufacturer or distributor, then the repurchase amount may be adjusted by the manufacturer to take into account those unpaid debts.

(b) After written notice by the dealer to the manufacturer or distributor in person or by registered or certified mail or by a commercial delivery service, return receipt requested, provided by the dealer within 210 days after notice of termination under section 80G.07, subdivision 2, is received by the manufacturer or distributor, the manufacturer or distributor shall repurchase that inventory previously purchased from the manufacturer or distributor as provided in this section except as otherwise provided in paragraph (a).

(c) Upon payment within a reasonable time of the repurchase amount to the dealer, the title, if any, and the right of possession to the repurchased inventory transfers to the manufacturer or distributor.

(d) The repurchase amount for the inventory must be at least the amount the dealer paid for the inventory, and must include inventory acquired by that dealer from the manufacturer within the preceding 36 months; and all parts, including superseded parts, and outdoor support equipment accessories listed in current priced lists or catalogs in use by the manufacturer on the date of termination.

(e) For purposes of this section, "inventory" includes equipment, parts, signage, diagnostic equipment, and service-related equipment such as computer hardware and current software if it was required to be purchased from the manufacturer or distributor.

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Sec. 9. [80G.09] WARRANTIES.

Subdivision 1. Application. This section applies to all warranty claims submitted by a dealer to an outdoor sport equipment manufacturer in which the outdoor sport equipment dealer has complied with the policies and procedures contained in the outdoor sport equipment manufacturer's warranty.

Subd. 2. Prompt payment. Claims filed for payment under warranty agreements must be approved or disapproved within 30 days after receipt by the outdoor sport equipment manufacturer. Unless the outdoor sport equipment dealer agrees to a later date, approved claims for payment must be paid within 30 days after approval. When a claim is disapproved, the outdoor sport equipment manufacturer shall notify the dealer within ten business days of the disapproval stating the specific grounds on which the disapproval is based. Any claim not specifically disapproved within 30 days of receipt is deemed approved and must be paid within 30 days after the deemed approval.

Subd. 3. Posttermination claims. If, after termination of a dealership agreement, a dealer submits a warranty claim for warranty work performed before the effective date of the termination, the outdoor sport equipment manufacturer shall handle the claim as provided in subdivision 2.

Subd. 4. Compensation for warranty work. Warranty work performed by the dealer must be compensated in accordance with the reasonable and customary amount of time required to complete the work, expressed in hours and fractions of hours multiplied by the dealer's established customer hourly retail labor rate, which the dealer shall communicate to the outdoor sport equipment manufacturer before performing the warranty work. A manufacturer may require a dealer to have a technician participate in an annual update seminar either online or by participation at a regional seminar.

Subd. 5. Expenses. Expenses expressly excluded under the outdoor sport equipment manufacturer's warranty to the customer must not be included in claims and are not required to be paid on requests for compensation from the dealer for warranty work performed.

Subd. 6. Compensation for parts. Payment for all parts used by the dealer in performing warranty work must be paid to the dealer in the amount equal to the dealer's net price for the parts, plus a minimum of 35 percent to reimburse the dealer for reasonable costs of doing business in performing warranty service on the outdoor sport equipment manufacturer's behalf, including, but not limited to, freight and handling costs.

Subd. 7. Adjustment for errors. The outdoor sport equipment manufacturer may adjust for errors discovered during audit, and if necessary, adjust claims paid in error.

Subd. 8. Alternate terms and conditions. A dealer may choose to accept alternate reimbursement terms and conditions in lieu of the requirements of subdivisions 2 to 7, provided there is a written dealership agreement between the outdoor sport equipment manufacturer and the dealer providing for compensation to the dealer for warranty labor costs either as:

(1) a discount in the pricing of the equipment to the dealer; or

(2) a lump-sum payment to the dealer.

The discount or lump sum must be no less than five percent of the suggested retail price of the equipment. If the requirements of this subdivision are met and alternate terms and conditions are in place, subdivisions 2 to 7 do not apply and the alternate terms and conditions are enforceable.

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Subd. 9. Warranty work on units not sold by the dealer. Upon request of the manufacturer or distributor, the dealer shall perform warranty repair work on units that were not sold by the dealer. Compensation for that work must be on the same terms and conditions otherwise required in this section.

Sec. 10. [80G.10] STATUS OF INCONSISTENT AGREEMENTS.

A term of a dealership agreement either expressed or implied, including a choice of law provision that is inconsistent with sections 80G.01 to 80G.11 or that purports to waive an outdoor sport equipment manufacturer's or distributor's compliance with sections 80G.01 to 80G.11 is void and unenforceable and does not waive any rights provided to a person by sections 80G.01 to 80G.11.

Sec. 11. [80G.11] REMEDIES.

If either party to a dealership agreement violates any provision of sections 80G.01 to 80G.11, the other party may bring an action against the alleged violator in a court of competent jurisdiction for damages sustained by the allegedly wronged party as a consequence of the violation, and the allegedly wronged party may also be granted injunctive relief against any action or inaction prohibited under sections 80G.01 to 80G.11. The remedies in this section are in addition to any other remedies permitted by law.

Sec. 12. EFFECTIVE DATE.

Sections 1 to 11 are effective the day following final enactment."

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

The report was adopted.

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

H. F. No. 1217, A bill for an act relating to solid waste; expanding categories of persons allowed to possess legend and nonprescription drugs to include those disposing of them; modifying definitions; prohibiting flushing drugs into sewer system by health care facilities; amending Minnesota Statutes 2008, sections 151.37, subdivisions 6, 7; 151.44; proposing coding for new law in Minnesota Statutes, chapter 144.

Reported the same back with the following amendments:

Page 1, delete section 1

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 2, delete "solid waste" and insert "health"

Page 1, line 4, delete everything after the first semicolon

Correct the title numbers accordingly

With the recommendation that the bill be amended without further recommendation.

The report was adopted.

Journal of the House - 73rd Day - Thursday, March 11, 2010 - Top of Page 8458

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

H. F. No. 1395, A bill for an act relating to real property; modifying procedures relating to uses and conveyances of tax-forfeited property; amending Minnesota Statutes 2008, section 282.01, subdivisions 1, 1a, 1b, 1c, 1d, 2, 3, 4, 7, 7a, by adding subdivisions; repealing Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, 11; 383A.76.

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

The report was adopted.

Hilty from the Energy Finance and Policy Division to which was referred:

H. F. No. 1633, A bill for an act relating to energy; amending definition of large energy facility; amending Minnesota Statutes 2008, section 216B.2421, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 216B.243, is amended by adding a subdivision to read:

Subd. 10. Transmission line. A high-voltage transmission line longer than one mile with a capacity of 100 kilovolts or more that is located in a city of the first class in a zone within one mile of the transmission line in which population density exceeds 8,000 persons per square mile, and that runs parallel to and is within one-quarter mile of a below-grade bike and walking path that connects with other bike paths along a river, is subject to the provisions of this section.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to all high-voltage transmission lines that have not received a routing permit from the commission as of the effective date of this act."

Delete the title and insert:

"A bill for an act relating to utilities; regulating certain transmission lines; amending Minnesota Statutes 2008, section 216B.243, by adding a subdivision."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1746, A bill for an act relating to consumer protection; protecting customers from injuries resulting from use of inflatable play equipment used for commercial purposes; requiring the presence of trained supervisors and liability insurance; proposing coding for new law in Minnesota Statutes, chapter 184B.

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

The report was adopted.

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

H. F. No. 1780, A bill for an act relating to state government; requiring revisor of statutes to survey recipients of free state publications.

Reported the same back with the following amendments:

Page 1, line 7, delete everything before the first "the" and delete "shall" and insert "must"

Page 1, line 15, delete "shall" and insert "must" and delete "shall" and insert "must"

Page 1, after line 17, insert:

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

With the recommendation that when so amended the bill pass.

The report was adopted.

H. F. No. 2019, A bill for an act relating to energy; increasing the capacity of wind energy conversion systems over which counties have authority to issue site permits; amending Minnesota Statutes 2008, sections 216F.01, subdivisions 2, 3; 216F.02; 216F.08.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 216F.012, is amended to read:

216F.012 SIZE ELECTION.

(a) A wind energy conversion system of less than 25 megawatts of nameplate capacity as determined under section 216F.011 is a small wind energy conversion system if~~, by July 1, 2009,~~ the owner so elects in writing and submits a completed application for zoning approval and the written election to the county or counties in which the project is proposed to be located. The owner must notify the Public Utilities Commission of the election at the time the owner submits the election to the county.

(b) Notwithstanding paragraph (a), a wind energy conversion system with a nameplate capacity exceeding five megawatts that is proposed to be located wholly or partially within a wind access buffer adjacent to state lands that are part of the outdoor recreation system, as enumerated in section 86A.05, is a large wind energy conversion system. The Department of Natural Resources shall negotiate in good faith with a system owner regarding siting and may support the system owner in seeking a variance from the system setback requirements if it determines that a variance is in the public interest.

(c) The Public Utilities Commission shall issue an annual report to the chairs and ranking minority members of the house of representatives and senate committees with primary jurisdiction over energy policy and natural resource policy regarding any variances applied for and not granted for systems subject to paragraph (b).

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

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Delete the title and insert:

"A bill for an act relating to energy; allowing size election for certain wind energy conversion systems; amending Minnesota Statutes 2008, section 216F.012."

With the recommendation that when so amended the bill pass.

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. 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:

Page 1, line 23, after "members" insert ", who serve at the pleasure of their appointing authority"

With the recommendation that when so amended 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. 2567, A bill for an act relating to veterans; extending eligibility for gold star motor vehicle license plates to include children and siblings of persons who have died while serving in active military service; amending Minnesota Statutes 2009 Supplement, section 168.1253, subdivision 1.

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. 2600, A bill for an act relating to financial institutions; providing for the licensing and regulation of an individual engaged in the business of a mortgage loan origination or the mortgage loan business; proposing coding for new law as Minnesota Statutes, chapter 58A.

Reported the same back with the following amendments:

Page 1, after line 5, insert:

"ARTICLE 1

MINNESOTA S.A.F.E. MORTGAGE LICENSING ACT OF 2010"

Page 1, lines 8 and 9, delete "2009" and insert "2010"

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Page 6, after line 3, insert:

"Sec. 5. [58A.045] TERM OF LICENSE AND FEES.

Subdivision 1. Term. Licenses for mortgage loan originators issued under this chapter expire on December 31 and are renewable on January 1 of each year after that date.

Subd. 2. Fees. The following fees must be paid to the commissioner:

(1) for a mortgage loan originator license, $200; and

(2) for a renewal mortgage loan originator license, $100."

Page 17, line 19, delete "act" and insert "article"

Page 17, after line 19, insert:

"ARTICLE 2

CONFORMING AND TRANSITIONAL PROVISIONS

RELATING TO MINNESOTA STATUTES, CHAPTER 58

Section 1. Minnesota Statutes 2008, section 58.04, subdivision 1, is amended to read:

Subdivision 1. Residential mortgage originator licensing requirements. (a) No person shall act as a residential mortgage originator, or make residential mortgage loans without first obtaining a license from the commissioner according to the licensing procedures provided in this chapter.

(b) A licensee must be either a partnership, limited liability partnership, association, limited liability company, corporation, or other form of business organization, and must have and maintain at all times one of the following: approval as a mortgagee by either the federal Department of Housing and Urban Development or the Federal National Mortgage Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety bond ~~or irrevocable letter of credit~~ in the ~~amount of $50,000~~ amounts prescribed under section 58.08. ~~Net worth, net of intangibles, must be calculated in accordance with generally accepted accounting principles.~~

(1) a person who is not in the business of making residential mortgage loans and who makes no more than three such loans, with its own funds, during any 12-month period;

(2) a financial institution as defined in section 58.02, subdivision 10;

(3) an agency of the federal government, or of a state or municipal government;

(4) an employee or employer pension plan making loans only to its participants;

(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a specific order issued by a court of competent jurisdiction; or

(6) a person exempted by order of the commissioner.

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Sec. 2. Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2, is amended to read:

Subd. 2. Application contents. (a) The application must contain the name and complete business address or addresses of the license applicant. The license applicant must be a partnership, limited liability partnership, association, limited liability company, corporation, or other form of business organization, and the application must contain the names and complete business addresses of each partner, member, director, and principal officer. The application must also include a description of the activities of the license applicant, in the detail and for the periods the commissioner may require.

(b) A residential mortgage originator applicant must submit ~~one of the following:~~

(1) evidence which shows, to the commissioner's satisfaction, that either the federal Department of Housing and Urban Development or the Federal National Mortgage Association has approved the residential mortgage originator applicant as a mortgagee;

(2) a surety bond or irrevocable letter of credit in the amount of not less than $50,000 in a form approved by the commissioner, issued by an insurance company or bank authorized to do so in this state. The bond or irrevocable letter of credit must be available for the recovery of expenses, fines, and fees levied by the commissioner under this chapter and for losses incurred by borrowers. The bond or letter of credit must be submitted with the license application, and evidence of continued coverage must be submitted with each renewal. Any change in the bond or letter of credit must be submitted for approval by the commissioner within ten days of its execution; or

(3) a copy of the residential mortgage originator applicant's most recent audited financial statement, including balance sheet, statement of income or loss, statements of changes in shareholder equity, and statement of changes in financial position. Financial statements must be as of a date within 12 months of the date of application. a surety bond that meets the requirements of section 58.08, subdivision 1a.

(1) an affirmation under oath that the applicant:

(i) is in compliance with the requirements of section 58.125;

(ii) will maintain a perpetual roster of individuals employed as residential mortgage originators, including employees and independent contractors, which includes the dates that mandatory testing, initial education, and continuing education were completed. In addition, the roster must be made available to the commissioner on demand, within three business days of the commissioner's request;

~~(iii)~~ (ii) will advise the commissioner of any material changes to the information submitted in the most recent application within ten days of the change;

~~(iv)~~ (iii) will advise the commissioner in writing immediately of any bankruptcy petitions filed against or by the applicant or licensee;

~~(v)~~ (iv) will maintain at all times ~~either a net worth, net of intangibles, of at least $250,000 or~~ a surety bond ~~or irrevocable letter of credit~~ in the amount of at least ~~$50,000~~ $100,000;

~~(vi)~~ (v) complies with federal and state tax laws; and

~~(vii)~~ (vi) complies with sections 345.31 to 345.60, the Minnesota unclaimed property law;

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(2) information as to the mortgage lending, servicing, or brokering experience of the applicant and persons in control of the applicant;

(3) information as to criminal convictions, excluding traffic violations, of persons in control of the license applicant;

(4) whether a court of competent jurisdiction has found that the applicant or persons in control of the applicant have engaged in conduct evidencing gross negligence, fraud, misrepresentation, or deceit in performing an act for which a license is required under this chapter;

(5) whether the applicant or persons in control of the applicant have been the subject of: an order of suspension or revocation, cease and desist order, or injunctive order, or order barring involvement in an industry or profession issued by this or another state or federal regulatory agency or by the Secretary of Housing and Urban Development within the ten-year period immediately preceding submission of the application; and

(6) other information required by the commissioner.

Sec. 3. Minnesota Statutes 2008, section 58.08, is amended by adding a subdivision to read:

Subd. 1a. Residential mortgage originators. (a) An applicant for a residential mortgage originator license must file with the department a surety bond in the amount of $100,000, issued by an insurance company authorized to do so in this state. The bond must cover all mortgage loan originators who are employees or independent agents of the applicant. The bond must be available for the recovery of expenses, fines, and fees levied by the commissioner under this chapter and for losses incurred by borrowers as a result of a licensee's noncompliance with the requirements of this chapter, sections 325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to activities regulated by this chapter.

(b) The bond must be submitted with the originator's license application and evidence of continued coverage must be submitted with each renewal. Any change in the bond must be submitted for approval by the commissioner, within ten days of its execution. The bond or a substitute bond shall remain in effect during all periods of licensing.

(c) Upon filing of the mortgage call report as required by section 58A.17, a licensee shall maintain or increase its surety bond to reflect the total dollar amount of the closed residential mortgage loans originated in this state in the preceding year according to the table in this paragraph. A licensee may decrease its surety bond according to the table in this paragraph if the surety bond required is less than the amount of the surety bond on file with the department.

Dollar Amount of Closed Residential Mortgage Loans Surety Bond Required

$0 to $5,000,000 $100,000

$5,000,000.01 to $10,000,000 $125,000

$10,000,000.01 to $25,000,000 $150,000

Over $25,000,000 $200,000

For purposes of this subdivision, "mortgage loan originator" has the meaning given the term in section 58A.02, subdivision 7.

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Sec. 4. Minnesota Statutes 2008, section 58.09, is amended to read:

58.09 TERM OF LICENSE.

~~Initial~~ Licenses for residential mortgage originators and residential mortgage servicers issued under this chapter expire on ~~July 31, 2001,~~ December 31 and are renewable on ~~August 1, 2001, and on August 1~~ January 1 of each ~~odd-numbered~~ year after that date. A new licensee whose license expires less than 12 months from the date of issuance shall pay a fee equal to one-half the applicable initial license fee set forth in section 58.10, subdivision 1, clause (1) or (3).

Sec. 5. Minnesota Statutes 2008, section 58.10, subdivision 1, is amended to read:

Subdivision 1. Amounts. The following fees must be paid to the commissioner:

(1) for ~~an initial~~ a residential mortgage originator license, ~~$2,125~~ $1,000, $50 of which is credited to the consumer education account in the special revenue fund;

(2) for a renewal license, ~~$1,125~~ $500, $50 of which is credited to the consumer education account in the special revenue fund;

(3) for ~~an initial~~ a residential mortgage servicer's license, ~~$1,000~~ $500;

(4) for a renewal license, ~~$500~~ $250; and

(5) for a certificate of exemption, $100.

Sec. 6. Minnesota Statutes 2008, section 58.11, is amended to read:

58.11 LICENSE RENEWAL.

Subdivision 1. Term. Licenses are renewable on ~~August 1, 2001, and on August 1~~ January 1 of each ~~odd-numbered~~ year ~~after that date~~.

Subd. 2. Timely renewal. (a) A person whose application is properly and timely filed who has not received notice of denial of renewal is considered approved for renewal and the person may continue to transact business as a residential mortgage originator or servicer whether or not the renewed license has been received on or before ~~August~~ January 1 of the renewal year. Application for renewal of a license is considered timely filed if received by the commissioner by, or mailed with proper postage and postmarked by, ~~July~~ December 15 of the renewal year. An application for renewal is considered properly filed if made upon forms duly executed and sworn to, accompanied by fees prescribed by this chapter, and containing any information that the commissioner requires.

(b) A person who fails to make a timely application for renewal of a license and who has not received the renewal license as of ~~August~~ January 1 of the renewal year is unlicensed until the renewal license has been issued by the commissioner and is received by the person.

Subd. 3. Contents of renewal application. Application for the renewal of an existing license must contain the information specified in section 58.06, subdivision 2; however, only the requested information having changed from the most recent prior application need be submitted.

Subd. 4. Cancellation. A licensee ceasing an activity or activities regulated by this chapter and desiring to no longer be licensed shall so inform the commissioner in writing and, at the same time, surrender the license and all other symbols or indicia of licensure. The licensee shall include a plan for the withdrawal from regulated business, including a timetable for the disposition of the business.

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Sec. 7. ASSESSMENT.

The commissioner may levy a pro rata assessment on institutions licensed under Minnesota Statutes, chapter 58, to recover the costs to the Department of Commerce for administering the licensing and registration requirements of Minnesota Statutes, section 58A.10. The assessment amount must be determined by dividing those costs by the number of licensees.

The commissioner shall levy the assessments and notify each institution of the amount of the assessment being levied by September 30, 2010. The institution shall pay the assessment to the department no later than November 30, 2010. If an institution fails to pay its assessment by this date, its license may be suspended by the commissioner until it is paid in full.

This section expires December 1, 2010.

Sec. 8. RESIDENTIAL MORTGAGE ORIGINATORS AND SERVICERS; TRANSITIONAL LICENSE FEE AND TERMS.

A residential mortgage originator licensee and a residential mortgage service licensee operating under a valid license under Minnesota Statutes 2008, chapter 58, with an expiration date of July 31, 2011, shall pay a prorated renewal fee of $200 for a residential mortgage originator, and $100 for a residential mortgage servicer. The prorated license renewal fee must be paid by December 31, 2010, and such payment extends the license term until December 31, 2011.

Sec. 9. REPEALER.

Minnesota Statutes 2009 Supplement, section 58.126, is repealed.

Sec. 10. EFFECTIVE DATE.

This article is effective July 31, 2010."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, after the semicolon, insert "providing certain conforming and transitional provisions;"

Correct the title numbers accordingly

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.

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

H. F. No. 2610, A bill for an act relating to forfeiture; requiring officers to give forfeiture receipts upon seizure of property; implementing timelines for forfeiture notice and hearings; placing a cap on the value of property that may be forfeited administratively; authorizing petitions for remission and mitigation of seized property; requiring

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certification by prosecutor before property may be forfeited administratively; requiring forfeiture proceeds to be deposited in special trust accounts; directing Department of Public Safety to establish ethical guidelines related to forfeiture proceedings; requiring law enforcement to secure seized property; prohibiting sale of forfeited property to law enforcement officers, employees, and family members; amending Minnesota Statutes 2008, sections 609.531, subdivisions 4, 5, by adding subdivisions; 609.5311, subdivision 3; 609.5313; 609.5314, subdivisions 2, 3; 609.5315, subdivisions 1, 2, 5.

Reported the same back with the following amendments:

Page 2, line 26, delete "Whenever" and insert "Prior to the entry of a court order disposing with the forfeiture action,"

Page 2, line 27, delete "files" and insert "may file" and delete everything after "attorney"

Page 2, line 28, delete "property," and delete "forfeiture, the" and insert "forfeiture. The"

Page 2, line 29, delete the second "the" and delete "as"

Page 3, delete section 4 and insert:

"Sec. 4. Minnesota Statutes 2008, section 609.531, is amended by adding a subdivision to read:

Subd. 8. Forfeiture policies; statewide model policy required. (a) By December 1, 2010, the Peace Officer Standards and Training Board, after consulting with the Minnesota County Attorneys Association, the Minnesota Sheriffs' Association, the Minnesota Chiefs of Police Association, and the Minnesota Police and Peace Officers Association, shall develop a model policy that articulates best practices for forfeiture and is designed to encourage the uniform application of forfeiture laws statewide. At a minimum, the policy shall address the following:

(1) best practices in pursuing, seizing, and tracking forfeitures;

(2) type and frequency of training for law enforcement on forfeiture laws; and

(3) situations in which forfeitures should not be pursued.

(b) By December 1, 2010, the Minnesota County Attorneys Association, after consulting with the Peace Officer Standards and Training Board, the Minnesota Sheriffs' Association, the Minnesota Chiefs of Police Association, and the Minnesota Police and Peace Officers Association, shall develop a model policy that articulates best practices for forfeiture and is designed to encourage the uniform application of forfeiture laws statewide. At a minimum, the policy shall address the following:

(1) statutory role of prosecutors in forfeiture procedures;

(2) best practices for timely and fair resolution of forfeiture cases;

(3) type and frequency of training for prosecutors on forfeiture laws; and

(4) situations in which forfeitures should not be pursued.

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(c) By March 1, 2011, the chief law enforcement officer of every state and local law enforcement agency and every prosecution office in the state shall adopt and implement a written policy on forfeiture that is identical or substantially similar to the model policies developed under paragraphs (a) and (b). The written policy shall be made available to the public upon request.

EFFECTIVE DATE. This section is effective July 1, 2010."

Page 6, line 14, after the period, insert "If a related criminal proceeding is pending, the hearing shall not be held until the conclusion of the criminal proceedings. The district court administrator shall schedule the hearing as soon as practicable after adjudication in the criminal prosecution."

Page 8, delete section 11

Amend the title as follows:

Page 1, line 8, delete "ethical guidelines" and insert "model policy"

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Public Safety Policy and Oversight.

The report was adopted.

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

H. F. No. 2613, A bill for an act relating to real property; providing for mediation prior to commencement of mortgage foreclosure proceedings on homestead property; creating a homestead-lender mediation account; amending Minnesota Statutes 2008, sections 580.021, as amended; 580.022, subdivision 1; 580.23, by adding a subdivision; 582.30, subdivision 2; Minnesota Statutes 2009 Supplement, sections 357.18, subdivision 1; 508.82, subdivision 1; 508A.82, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 583.

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

The report was adopted.

Hilstrom from the Committee on Public Safety Policy and Oversight 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 Civil Justice.

The report was adopted.

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

H. F. No. 2668, A bill for an act relating to landlord and tenant; modifying certain procedures related to expungement in eviction cases; adding certain residential covenants; specifying procedures for handling applicant screening fees; providing certain rights to tenants of foreclosed properties; amending Minnesota Statutes 2008, sections 484.014, subdivision 3, by adding a subdivision; 504B.161, subdivision 1; 504B.173; 504B.178, subdivision 7; 504B.285, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 504B.285, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 504B.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 484.014, subdivision 3, is amended to read:

Subd. 3. Mandatory expungement. The court shall order expungement of an eviction case commenced solely on the grounds provided in section 504B.285, subdivision 1, clause (1), if the court finds that the defendant occupied real property that was subject to contract for deed cancellation or mortgage foreclosure and:

(1) the time for contract cancellation or foreclosure redemption has expired and the defendant vacated the property prior to commencement of the eviction action; or

(2) the defendant was a tenant during the contract cancellation or foreclosure redemption period and did not receive a notice under section 504B.285, subdivision ~~1, clause (1)~~ 1a or 1b, to vacate on a date prior to commencement of the eviction case.

Sec. 2. Minnesota Statutes 2008, section 484.014, is amended by adding a subdivision to read:

Subd. 5. Hearing on motion. (a) If the defendant moves for expungement when the eviction case is pending, the court must rule on the motion at the hearing on the eviction following the ruling on the eviction unless there is good cause to hear it at a later time.

(b) A motion to expunge under this subdivision is available exclusively for the eviction case that is pending.

(c) The court must make a written ruling on the expungement motion, indicating how the case satisfied the statutory requirements for expungement if the motion is granted or how the case failed to satisfy the statutory requirements for expungement if the motion is denied.

Sec. 3. Minnesota Statutes 2008, section 504B.111, is amended to read:

504B.111 WRITTEN LEASE REQUIRED; PENALTY.

(a) A landlord of a residential building with 12 or more residential units must have a written lease for each unit rented to a residential tenant. Notwithstanding any other state law or city ordinance to the contrary, a landlord may ask for the tenant's full name and date of birth on the lease and application. A landlord who fails to provide a lease, as required under this section, is guilty of a petty misdemeanor.

(b) A landlord of a residential building may not charge a late fee if the payment of rent is made after the date on which it is due unless the tenant and landlord have agreed in writing that a fee may be imposed. In no case may the late fee exceed ... percent of the rent payment. Any late fee charged or collected may not be considered to be either interest or liquidated damages. For the purposes of this paragraph, the "due date" does not include a date earlier than the date contained in the written or oral agreement to lease by which, if the rent is paid, the tenant earns a discount.

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Sec. 4. [504B.118] RECEIPT FOR RENT.

A landlord receiving rent or other payments from a tenant by cash must provide a written receipt for payment immediately upon receipt if the payment is made in person or within three business days if payment is made by other means.

Sec. 5. [504B.172] RECOVERY OF COSTS IN ACTION FOR BREACH OF COVENANTS.

Where a residential lease specifies circumstances that entitle a landlord, directly or through additional rent, to recover attorney fees and expenses in an action or summary proceeding, it shall be implied in law that a tenant is entitled to attorney fees and costs in an action or summary proceeding initiated by the tenant or in a successful defense of an action or summary proceeding commenced by the landlord against the tenant involving the same circumstances.

Sec. 6. Minnesota Statutes 2008, section 504B.173, is amended to read:

504B.173 APPLICANT SCREENING FEE.

Subdivision 1. ~~Limit on number of applicant screening fees~~ Limitations. A landlord ~~or the landlord's agent~~ may not:

(1) charge an applicant a screening fee when the landlord knows or should have known that no rental unit is available at that time or will be available within a reasonable future time;

(2) collect or hold a screening fee without giving the applicant a written receipt for the fee, which may be incorporated into the application form, upon request of the applicant; or

(3) use, cash, or deposit a screening fee until all prior applicants have either been screened and rejected, or offered the unit and declined to enter into a rental agreement.

For the purposes of this section, a "landlord" means any person having the right to rent or lease any real property and the person's agent.

Subd. 2. Return of applicant screening fee. If the landlord or the landlord's agent does not perform a personal reference check or does not obtain a consumer credit report or tenant screening report, the landlord or the landlord's agent shall return any amount of the screening fee that is not used for those purposes. (a) The landlord must return the entire screening fee if:

(1) the applicant is rejected for any reason not listed in the disclosure required under subdivision 3; or

(2) the prior applicant is offered the unit and agrees to enter into a rental agreement.

(b) If the landlord or the landlord's agent does not perform a personal reference check or does not obtain a consumer credit report or tenant screening report, the landlord must return any amount of the screening fee that is not used for those purposes.

(c) The screening fee may be returned by mail, may be destroyed upon the applicant's request if paid by check, or may be made available for the applicant to retrieve.

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Subd. 3. Disclosures to applicant. (a) If a landlord ~~or the landlord's agent, prior to taking~~ takes an application fee from a prospective tenant, the landlord must disclose ~~on the application form or orally~~ in writing prior to taking the application fee:

(1) the name, address, and telephone number of the tenant screening service the ~~owner~~ landlord will use, unless the ~~owner~~ landlord does not use a tenant screening service; and

(2) the criteria on which the decision to rent to the prospective tenant will be based.

(b) A landlord may include in the application form a requirement that the applicant declare whether the applicant does not meet any of the disclosed criteria.

(c) A landlord must notify the applicant within 14 days of rejecting a rental application which criteria the tenant failed to meet.

Subd. 4. Remedies. (a) In addition to any other remedies, a landlord who violates this section is liable to the applicant for the application fee plus a civil penalty of up to $100, civil court filing costs, and reasonable attorney fees incurred to enforce this remedy.

(b) A prospective tenant who provides materially false information on the application or omits material information requested is liable to the landlord for damages, plus a civil penalty of up to $500, civil court filing costs, and reasonable attorney fees.

Sec. 7. Minnesota Statutes 2008, section 504B.178, subdivision 7, is amended to read:

Subd. 7. Bad faith retention. The bad faith retention by a landlord of a deposit, the interest thereon, or any portion thereof, in violation of this section shall subject the landlord to punitive damages not to exceed ~~$200~~ $500 for each deposit in addition to the damages provided in subdivision 4. If the landlord has failed to comply with the provisions of subdivision 3 or 5, retention of a deposit shall be presumed to be in bad faith unless the landlord returns the deposit within two weeks after the commencement of any action for the recovery of the deposit.

Sec. 8. Minnesota Statutes 2008, section 504B.215, subdivision 4, is amended to read:

Subd. 4. Limitations; waiver prohibited; rights as additional. (a) The tenant rights under this section:

(1) do not extend to conditions caused by the willful, malicious, or negligent conduct of the tenant or of a person under the tenant's direction or control;

(2) may not be waived or modified; and

(3) are in addition to and do not limit other rights which may be available to the tenant in law or equity, including the right to damages and the right to restoration of possession of the premises under section 504B.291.

(b) A landlord who violates subdivision 2a is liable to the tenant for treble damages or $500, whichever is greater, plus reasonable attorney fees.

Sec. 9. Minnesota Statutes 2009 Supplement, section 504B.285, subdivision 1, is amended to read:

Subdivision 1. Grounds. The person entitled to the premises may recover possession by eviction when:

(1) any person holds over real property:

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(i) after a sale of the property on an execution or judgment; or

(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or after termination of contract to convey the property, provided that if the person holding the real property after the expiration of the time for redemption or termination was a tenant during the redemption or termination period under a lease of any duration and the lease began after the date the mortgage or contract for deed was executed but prior to the expiration of the time for redemption or termination, and the person has received:;

(A) at least two months' written notice to vacate no sooner than one month after the expiration of the time for redemption or termination, provided that the tenant pays the rent and abides by all terms of the lease; or

(B) at least two months' written notice to vacate no later than the date of the expiration of the time for redemption or termination, which notice shall also state that the sender will hold the tenant harmless for breaching the lease by vacating the premises if the mortgage is redeemed or the contract is reinstated;

(2) any person holds over real property after termination of the time for which it is demised or leased to that person or to the persons under whom that person holds possession, contrary to the conditions or covenants of the lease or agreement under which that person holds, or after any rent becomes due according to the terms of such lease or agreement; or

(3) any tenant at will holds over after the termination of the tenancy by notice to quit.

Sec. 10. Minnesota Statutes 2008, section 504B.285, is amended by adding a subdivision to read:

Subd. 1a. Grounds when the person holding over is a tenant in a foreclosed property. (a) For any eviction action commenced on or before December 31, 2012, where the person holding the real property after the expiration of the time for redemption on foreclosure of a mortgage was a tenant during the redemption period under a lease of any duration, and the lease began after the date the mortgage was executed but prior to the expiration of the time for redemption, the successor in interest must provide at least 90 days' written notice to vacate, given no sooner than the date of the expiration of the time for redemption or termination and effective no sooner than 90 days after the date of the expiration of the time for redemption, provided that the tenant pays the rent and abides by all terms of the lease.

(b) For any eviction action commenced on or before December 31, 2012, where the term of a bona fide lease extends more than 90 days beyond the date of the expiration of the time for redemption, the immediate successor in interest must allow the tenant to occupy the premises until the end of the remaining term of the lease and provide at least 90 days' written notice to vacate, effective no sooner than the date the lease expires, provided that the tenant pays the rent and abides by all terms of the lease, except if the immediate successor in interest or an immediate subsequent bona fide purchaser will occupy the unit as the primary residence, the immediate successor in interest must provide at least 90 days' written notice to vacate, given no earlier than the date of the expiration of the time for redemption, effective no sooner than 90 days after the date of the expiration of the time for redemption provided that the tenant pays the rent and abides by all terms of the lease, provided that the tenant pays the rent and abides by all terms of the lease.

For the purposes of this section, a bona fide lease means a lease where:

(1) the mortgagor or the child, spouse, or parent of the mortgagor under the contract is not the tenant;

(2) the lease or tenancy was the result of an arms-length transaction; and

(3) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property.

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(c) For any eviction action commenced on or before December 31, 2012, in the case of a tenancy subject to Section 8 of the United States Housing Act of 1937, as amended, where the term of the lease extends more than 90 days beyond the date of the expiration of the time for redemption, the immediate successor in interest must allow the tenant to occupy the premises until the end of the remaining term of the lease and provide at least 90 days' written notice to vacate, effective no sooner than the date the lease expires, provided that the tenant pays the rent and abides by all terms of the lease, except if the immediate successor in interest will occupy the unit as the primary residence, the immediate successor must provide at least 90 days' written notice to vacate, given no earlier than the date of the expiration of the time for redemption, effective no sooner than 90 days after the date of the expiration of the time for redemption, provided that the tenant pays the rent and abides by all terms of the lease.

Sec. 11. Minnesota Statutes 2008, section 504B.285, is amended by adding a subdivision to read:

Subd. 1b. Grounds when the person holding over is a tenant in a foreclosed property subject to a contract for deed. For any eviction action commenced on or before December 31, 2012, where the person holding the real property after the expiration of the time for termination of a contract to convey the property was a tenant during the termination period under a lease of any duration, and the lease began after the contract for deed was executed but prior to the expiration of the time for termination, the successor in interest must provide at least 60 days' written notice to vacate, given no sooner than the date of the expiration of the time for termination and effective no sooner than 60 days after the date of the expiration of the time for termination, provided that the tenant pays the rent and abides by all terms of the lease.

Sec. 12. Minnesota Statutes 2008, section 504B.285, is amended by adding a subdivision to read:

Subd. 1c. Grounds for evictions on or after January 1, 2013. For any eviction action commenced on or after January 1, 2013, the person entitled to the premises may recover possession by eviction when any person holds over real property after the expiration of the time for redemption on foreclosure of a mortgage, or after termination of contract to convey the property, provided that if the person holding the real property after the expiration of the time for redemption or termination was a tenant during the redemption or termination period under a lease of any duration, and the lease began after the date the mortgage or contract for deed was executed but prior to the expiration of the time for redemption or termination, the person holding the premises has received:

(1) at least two months' written notice to vacate no sooner than one month after the expiration of the time for redemption or termination, provided that the tenant pays the rent and abides by all terms of the lease; or

(2) at least two months' written notice to vacate no later than the date of the expiration of the time for redemption or termination, which notice shall also state that the sender will hold the tenant harmless for breaching the lease by vacating the premises if the mortgage is redeemed or the contract is reinstated.

Sec. 13. Minnesota Statutes 2008, section 504B.291, subdivision 1, is amended to read:

Subdivision 1. Action to recover. (a) A landlord may bring an eviction action for nonpayment of rent irrespective of whether the lease contains a right of reentry clause. Such an eviction action is equivalent to a demand for the rent. There shall be a rebuttable presumption that the rent has been paid if the tenant produces receipts or equivalent documents evidencing purchase of one or more money orders, bank checks, or cashier's checks, or a combination of money orders, bank checks, or cashier's checks totaling the amount of the rent, with a date or dates approximately corresponding with the date the rent was due. In such an action, unless the landlord has also sought to evict the tenant by alleging a material violation of the lease under section 504B.285, subdivision 5, the tenant may, at any time before possession has been delivered, redeem the tenancy and be restored to possession by paying to the landlord or bringing to court the amount of the rent that is in arrears, with interest, costs of the action, and an attorney's fee not to exceed $5, and by performing any other covenants of the lease.

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(b) If the tenant has paid to the landlord or brought into court the amount of rent in arrears but is unable to pay the interest, costs of the action, and attorney's fees required by paragraph (a), the court may permit the tenant to pay these amounts into court and be restored to possession within the same period of time, if any, for which the court stays the issuance of the order to vacate under section 504B.345.

(c) Prior to or after commencement of an action to recover possession for nonpayment of rent, the parties may agree only in writing that partial payment of rent in arrears which is accepted by the landlord prior to issuance of the order granting restitution of the premises pursuant to section 504B.345 may be applied to the balance due and does not waive the landlord's action to recover possession of the premises for nonpayment of rent.

(d) Rental payments under this subdivision must first be applied to rent claimed as due in the complaint from prior rental periods before applying any payment toward rent claimed in the complaint for the current rental period, unless the court finds that under the circumstances the claim for rent from prior rental periods has been waived."

Delete the title and insert:

"A bill for an act relating to landlord and tenant; modifying certain procedures relating to expungement; providing procedures relating to the charging and recovery of various fees; providing certain rights to tenants of foreclosed properties; amending Minnesota Statutes 2008, sections 484.014, subdivision 3, by adding a subdivision; 504B.111; 504B.173; 504B.178, subdivision 7; 504B.215, subdivision 4; 504B.285, by adding subdivisions; 504B.291, subdivision 1; Minnesota Statutes 2009 Supplement, section 504B.285, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 504B."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2707, A bill for an act relating to public safety; extending the duration of the continuance period allowed in a juvenile delinquency matter; amending Minnesota Statutes 2008, section 260B.198, subdivision 7.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 241.31, subdivision 1, is amended to read:

Subdivision 1. Establishment of program. Notwithstanding any provisions of Minnesota Statutes to the contrary, any city, county or town, or any nonprofit corporation approved by the commissioner of corrections, or any combination thereof may establish and operate a community corrections program for the purpose of providing housing, supervision, treatment, counseling or other correctional services;

(a) to persons convicted of crime in the courts of this state and placed on probation by such courts pursuant to section 609.135;

(b) to persons not yet convicted of a crime but under criminal accusation who voluntarily accept such treatment;

(c) to persons adjudicated a delinquent or who received a stay of adjudication of delinquency under chapter 260 or chapter 260B;

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(d) with the approval of the commissioner of corrections, to persons paroled under chapter 242; and

(e) with the approval of the commissioner of corrections, to persons paroled under section 243.05 or released under section 241.26.

Sec. 2. Minnesota Statutes 2008, section 242.32, subdivision 2, is amended to read:

Subd. 2. Secure placement of juvenile offenders. The commissioner shall license several small regional facilities providing secure capacity programming for juveniles who have been adjudicated delinquent, have received a stay of adjudication of delinquency, or have been convicted as extended jurisdiction juveniles and require secure placement. The programming shall be tailored to the types of juveniles being served, including their offense history, age, gender, cultural and ethnic heritage, mental health and chemical dependency problems, and other characteristics. Services offered shall include but not be limited to:

(1) intensive general educational programs, with an individual educational plan for each juvenile;

(2) specific educational components in the management of anger and nonviolent conflict resolution;

(3) treatment for chemical dependency;

(4) mental health screening, assessment, and treatment; and

(5) programming to educate offenders about sexuality and address issues specific to victims and perpetrators of sexual abuse.

The facilities shall collaborate with facilities providing nonsecure residential programming and with community-based aftercare programs.

Sec. 3. Minnesota Statutes 2008, section 260B.125, subdivision 4, is amended to read:

Subd. 4. Public safety. In determining whether the public safety is served by certifying the matter, the court shall consider the following factors:

(1) the seriousness of the alleged offense in terms of community protection, including the existence of any aggravating factors recognized by the Sentencing Guidelines, the use of a firearm, and the impact on any victim;

(2) the culpability of the child in committing the alleged offense, including the level of the child's participation in planning and carrying out the offense and the existence of any mitigating factors recognized by the Sentencing Guidelines;

(3) the child's prior record of delinquency, including adjudications of delinquency and delinquency petitions that resulted in stays of adjudication of delinquency;

(4) the child's programming history, including the child's past willingness to participate meaningfully in available programming;

(5) the adequacy of the punishment or programming available in the juvenile justice system; and

(6) the dispositional options available for the child.

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In considering these factors, the court shall give greater weight to the seriousness of the alleged offense and the child's prior record of delinquency, including adjudications of delinquency and delinquency petitions that resulted in stays of adjudication of delinquency, than to the other factors listed in this subdivision.

Sec. 4. Minnesota Statutes 2008, section 260B.157, subdivision 1, is amended to read:

Subdivision 1. Investigation. Upon request of the court the local social services agency or probation officer shall investigate the personal and family history and environment of any minor coming within the jurisdiction of the court under section 260B.101 and shall report its findings to the court. The court may order any minor coming within its jurisdiction to be examined by a duly qualified physician, psychiatrist, or psychologist appointed by the court.

The court shall order a chemical use assessment conducted when a child is (1) found to be delinquent for violating a provision of chapter 152, or for committing a felony-level violation of a provision of chapter 609 if the probation officer determines that alcohol or drug use was a contributing factor in the commission of the offense, or (2) alleged to be delinquent for violating a provision of chapter 152, if the child is being held in custody under a detention order. The assessor's qualifications and the assessment criteria shall comply with Minnesota Rules, parts 9530.6600 to 9530.6655. If funds under chapter 254B are to be used to pay for the recommended treatment, the assessment and placement must comply with all provisions of Minnesota Rules, parts 9530.6600 to 9530.6655 and 9530.7000 to 9530.7030. The commissioner of human services shall reimburse the court for the cost of the chemical use assessment, up to a maximum of $100.

The court shall order a children's mental health screening conducted when a child is found to be delinquent. The screening shall be conducted with a screening instrument approved by the commissioner of human services and shall be conducted by a mental health practitioner as defined in section 245.4871, subdivision 26, or a probation officer who is trained in the use of the screening instrument. If the screening indicates a need for assessment, the local social services agency, in consultation with the child's family, shall have a diagnostic assessment conducted, including a functional assessment, as defined in section 245.4871.

With the consent of the commissioner of corrections and agreement of the county to pay the costs thereof, the court may, by order, place a minor coming within its jurisdiction in an institution maintained by the commissioner for the detention, diagnosis, custody and treatment of persons adjudicated to be delinquent or who received a stay of adjudication of delinquency, in order that the condition of the minor be given due consideration in the disposition of the case. Any funds received under the provisions of this subdivision shall not cancel until the end of the fiscal year immediately following the fiscal year in which the funds were received. The funds are available for use by the commissioner of corrections during that period and are hereby appropriated annually to the commissioner of corrections as reimbursement of the costs of providing these services to the juvenile courts.

Sec. 5. Minnesota Statutes 2008, section 260B.198, subdivision 7, is amended to read:

Subd. 7. Continuance. When it is in the best interests of the child and public safety to do so and when the child has admitted the allegations contained in the petition before the judge or referee, or when a hearing has been held as provided for in section 260B.163 and the allegations contained in the petition have been duly proven but, in either case, before a finding of delinquency has been entered, the court may stay the adjudication of delinquency and continue the case for a period not to exceed 90 180 days on any one order. With the consent of the prosecutor, such a continuance may be ~~extended~~ renewed for ~~one additional successive~~ a period not to ~~exceed 90 days~~ extend beyond the child's 19th birthday and only after the court has reviewed the case and entered its order for an additional continuance without a finding of delinquency. During ~~this~~ either continuance the court may enter an order in accordance with the provisions of subdivision 1, ~~clause (1) or (2),~~ or enter an order to hold the child in detention for a period not to exceed 15 days on any one order for the purpose of completing any consideration, or any investigation or examination ordered in accordance with the provisions of section 260B.157. The court shall not stay adjudication on any felony offense if the child has previously received a stay of adjudication of delinquency by a court in any judicial district. This subdivision does not apply to an extended jurisdiction juvenile proceeding.

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Sec. 6. Minnesota Statutes 2008, section 299C.105, subdivision 1, is amended to read:

Subdivision 1. Required collection of biological specimen for DNA testing. (a) Sheriffs, peace officers, and community corrections agencies operating secure juvenile detention facilities shall take or cause to be taken biological specimens for the purpose of DNA analysis as defined in section 299C.155, of the following:

(1) persons who have appeared in court and have had a judicial probable cause determination on a charge of committing, or persons having been convicted of or attempting to commit, any of the following:

(i) murder under section 609.185, 609.19, or 609.195;

(ii) manslaughter under section 609.20 or 609.205;

(iii) assault under section 609.221, 609.222, or 609.223;

(iv) robbery under section 609.24 or aggravated robbery under section 609.245;

(v) kidnapping under section 609.25;

(vi) false imprisonment under section 609.255;

(vii) criminal sexual conduct under section 609.342, 609.343, 609.344, 609.345, 609.3451, subdivision 3, or 609.3453;

(viii) incest under section 609.365;

(ix) burglary under section 609.582, subdivision 1; or

(x) indecent exposure under section 617.23, subdivision 3;

(2) persons sentenced as patterned sex offenders under section 609.3455, subdivision 3a; or

(3) juveniles who have appeared in court and have had a judicial probable cause determination on a charge of committing, or juveniles having been adjudicated delinquent, or juveniles who have received a stay of adjudication of delinquency for committing or attempting to commit, any of the following:

(i) murder under section 609.185, 609.19, or 609.195;

(ii) manslaughter under section 609.20 or 609.205;

(iii) assault under section 609.221, 609.222, or 609.223;

(iv) robbery under section 609.24 or aggravated robbery under section 609.245;

(v) kidnapping under section 609.25;

(vi) false imprisonment under section 609.255;

(vii) criminal sexual conduct under section 609.342, 609.343, 609.344, 609.345, 609.3451, subdivision 3, or 609.3453;

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(viii) incest under section 609.365;

(ix) burglary under section 609.582, subdivision 1; or

(x) indecent exposure under section 617.23, subdivision 3.

(b) Unless the superintendent of the bureau requires a shorter period, within 72 hours the biological specimen required under paragraph (a) must be forwarded to the bureau in such a manner as may be prescribed by the superintendent.

(c) Prosecutors, courts, and probation officers shall attempt to ensure that the biological specimen is taken on a person described in paragraph (a).

Sec. 7. Minnesota Statutes 2008, section 299C.61, subdivision 8a, is amended to read:

Subd. 8a. Conviction. "Conviction" means a criminal conviction or an adjudication of delinquency or a stay of adjudication of delinquency for an offense that would be a crime if committed by an adult.

Sec. 8. Minnesota Statutes 2008, section 609.117, subdivision 1, is amended to read:

Subdivision 1. Upon sentencing. If an offender has not already done so, the court shall order an offender to provide a biological specimen for the purpose of DNA analysis as defined in section 299C.155 when:

(1) the court sentences a person charged with committing or attempting to commit a felony offense and the person is convicted of that offense or of any offense arising out of the same set of circumstances; or

(2) the juvenile court adjudicates a person a delinquent child who is petitioned for committing or attempting to commit a felony offense and is adjudicated delinquent for that offense or any offense arising out of the same set of circumstances finds that a child who was petitioned for committing or attempting to commit a felony offense did commit that offense or any offense arising out of the same set of circumstances.

The biological specimen or the results of the analysis shall be maintained by the Bureau of Criminal Apprehension as provided in section 299C.155.

Sec. 9. Minnesota Statutes 2009 Supplement, section 624.713, subdivision 1, is amended to read:

Subdivision 1. Ineligible persons. The following persons shall not be entitled to possess a pistol or semiautomatic military-style assault weapon or, except for clause (1), any other firearm:

(1) a person under the age of 18 years except that a person under 18 may carry or possess a pistol or semiautomatic military-style assault weapon (i) in the actual presence or under the direct supervision of the person's parent or guardian, (ii) for the purpose of military drill under the auspices of a legally recognized military organization and under competent supervision, (iii) for the purpose of instruction, competition, or target practice on a firing range approved by the chief of police or county sheriff in whose jurisdiction the range is located and under direct supervision; or (iv) if the person has successfully completed a course designed to teach marksmanship and safety with a pistol or semiautomatic military-style assault weapon and approved by the commissioner of natural resources;

(2) except as otherwise provided in clause (9), a person who has been convicted of, or adjudicated delinquent or received a stay of adjudication of delinquency or convicted as an extended jurisdiction juvenile for committing, in this state or elsewhere, a crime of violence. For purposes of this section, crime of violence includes crimes in other states or jurisdictions which would have been crimes of violence as herein defined if they had been committed in this state;

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(3) a person who is or has ever been committed in Minnesota or elsewhere by a judicial determination that the person is mentally ill, developmentally disabled, or mentally ill and dangerous to the public, as defined in section 253B.02, to a treatment facility, or who has ever been found incompetent to stand trial or not guilty by reason of mental illness, unless the person's ability to possess a firearm has been restored under subdivision 4;

(4) a person who has been convicted in Minnesota or elsewhere of a misdemeanor or gross misdemeanor violation of chapter 152, unless three years have elapsed since the date of conviction and, during that time, the person has not been convicted of any other such violation of chapter 152 or a similar law of another state; or a person who is or has ever been committed by a judicial determination for treatment for the habitual use of a controlled substance or marijuana, as defined in sections 152.01 and 152.02, unless the person's ability to possess a firearm has been restored under subdivision 4;

(5) a person who has been committed to a treatment facility in Minnesota or elsewhere by a judicial determination that the person is chemically dependent as defined in section 253B.02, unless the person has completed treatment or the person's ability to possess a firearm has been restored under subdivision 4. Property rights may not be abated but access may be restricted by the courts;

(6) a peace officer who is informally admitted to a treatment facility pursuant to section 253B.04 for chemical dependency, unless the officer possesses a certificate from the head of the treatment facility discharging or provisionally discharging the officer from the treatment facility. Property rights may not be abated but access may be restricted by the courts;

(7) a person, including a person under the jurisdiction of the juvenile court, who has been charged with committing a crime of violence and has been placed in a pretrial diversion program by the court before disposition, until the person has completed the diversion program and the charge of committing the crime of violence has been dismissed;

(8) except as otherwise provided in clause (9), a person who has been convicted in another state of committing an offense similar to the offense described in section 609.224, subdivision 3, against a family or household member or section 609.2242, subdivision 3, unless three years have elapsed since the date of conviction and, during that time, the person has not been convicted of any other violation of section 609.224, subdivision 3, or 609.2242, subdivision 3, or a similar law of another state;

(9) a person who has been convicted in this state or elsewhere of assaulting a family or household member and who was found by the court to have used a firearm in any way during commission of the assault is prohibited from possessing any type of firearm for the period determined by the sentencing court;

(10) a person who:

(i) has been convicted in any court of a crime punishable by imprisonment for a term exceeding one year;

(ii) is a fugitive from justice as a result of having fled from any state to avoid prosecution for a crime or to avoid giving testimony in any criminal proceeding;

(iii) is an unlawful user of any controlled substance as defined in chapter 152;

(iv) has been judicially committed to a treatment facility in Minnesota or elsewhere as a person who is mentally ill, developmentally disabled, or mentally ill and dangerous to the public, as defined in section 253B.02;

(v) is an alien who is illegally or unlawfully in the United States;

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(vi) has been discharged from the armed forces of the United States under dishonorable conditions; or

(vii) has renounced the person's citizenship having been a citizen of the United States; or

(11) a person who has been convicted of the following offenses at the gross misdemeanor level, unless three years have elapsed since the date of conviction and, during that time, the person has not been convicted of any other violation of these sections: section 609.229 (crimes committed for the benefit of a gang); 609.2231, subdivision 4 (assaults motivated by bias); 609.255 (false imprisonment); 609.378 (neglect or endangerment of a child); 609.582, subdivision 4 (burglary in the fourth degree); 609.665 (setting a spring gun); 609.71 (riot); or 609.749 (harassment and stalking). For purposes of this paragraph, the specified gross misdemeanor convictions include crimes committed in other states or jurisdictions which would have been gross misdemeanors if conviction occurred in this state.

A person who issues a certificate pursuant to this section in good faith is not liable for damages resulting or arising from the actions or misconduct with a firearm committed by the individual who is the subject of the certificate.

The prohibition in this subdivision relating to the possession of firearms other than pistols and semiautomatic military-style assault weapons does not apply retroactively to persons who are prohibited from possessing a pistol or semiautomatic military-style assault weapon under this subdivision before August 1, 1994.

The lifetime prohibition on possessing, receiving, shipping, or transporting firearms for persons convicted or adjudicated delinquent or received a stay of adjudication of delinquency of a crime of violence in clause (2), applies only to offenders who are discharged from sentence or court supervision for a crime of violence on or after August 1, 1993.

For purposes of this section, "judicial determination" means a court proceeding pursuant to sections 253B.07 to 253B.09 or a comparable law from another state.

Sec. 10. Minnesota Statutes 2008, section 624.713, subdivision 3, is amended to read:

Subd. 3. Notice. (a) When a person is convicted of, or adjudicated delinquent, received a stay of adjudication of delinquency, or convicted as an extended jurisdiction juvenile for committing, a crime of violence as defined in section 624.712, subdivision 5, the court shall inform the defendant that the defendant is prohibited from possessing a pistol or semiautomatic military-style assault weapon for the remainder of the person's lifetime, and that it is a felony offense to violate this prohibition. The failure of the court to provide this information to a defendant does not affect the applicability of the pistol or semiautomatic military-style assault weapon possession prohibition or the felony penalty to that defendant.

(b) When a person, including a person under the jurisdiction of the juvenile court, is charged with committing a crime of violence and is placed in a pretrial diversion program by the court before disposition, the court shall inform the defendant that: (1) the defendant is prohibited from possessing a pistol or semiautomatic military-style assault weapon until the person has completed the diversion program and the charge of committing a crime of violence has been dismissed; (2) it is a gross misdemeanor offense to violate this prohibition; and (3) if the defendant violates this condition of participation in the diversion program, the charge of committing a crime of violence may be prosecuted. The failure of the court to provide this information to a defendant does not affect the applicability of the pistol or semiautomatic military-style assault weapon possession prohibition or the gross misdemeanor penalty to that defendant."

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Delete the title and insert:

"A bill for an act relating to public safety; modifying certain provisions regarding juvenile delinquency to include stays of adjudication of delinquency; extending the duration of the continuance period allowed in a juvenile delinquency matter; amending Minnesota Statutes 2008, sections 241.31, subdivision 1; 242.32, subdivision 2; 260B.125, subdivision 4; 260B.157, subdivision 1; 260B.198, subdivision 7; 299C.105, subdivision 1; 299C.61, subdivision 8a; 609.117, subdivision 1; 624.713, subdivision 3; Minnesota Statutes 2009 Supplement, section 624.713, subdivision 1."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Public Safety Policy and Oversight.

The report was adopted.

Mullery from the Committee on Civil Justice 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.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, subdivisions 2, 8; 326B.988; proposing coding for new law in Minnesota Statutes, chapter 326B; repealing Minnesota Statutes 2008, sections 326B.952; 326B.96, subdivision 1; 326B.962; 326B.968; 326B.982; 326B.996; Minnesota Rules, parts 5225.1400; 5225.3100; 5225.3150; 5225.3200.

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

The report was adopted.

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

H. F. No. 2878, A bill for an act relating to natural resources; requiring rulemaking to amend Mississippi River management plan.

Reported the same back with the following amendments:

Page 1, delete section 1 and insert:

"Section 1. MISSISSIPPI RIVER MANAGEMENT PLAN.

Notwithstanding Minnesota Rules, part 6105.0870, subpart 7, development in the area commonly known as the historic village of Dayton shall conform to the general development standards of Minnesota Rules, parts 6120.2600 to 6120.3900, except that marinas shall not be allowed and the provisions and administrative procedures of Minnesota Rules, parts 6105.0010 to 6105.0070 and 6105.0150 to 6105.0250, shall still apply.