Journal of the House - 57th Day - Sunday, May 17, 2009

Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher

A quorum was present.

The Chief Clerk proceeded to read the Journal of the preceding day. Urdahl 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.

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6558

REPORTS OF CHIEF CLERK

S. F. No. 1623 and H. F. No. 1825, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Urdahl moved that S. F. No. 1623 be substituted for H. F. No. 1825 and that the House File be indefinitely postponed. The motion prevailed.

SECOND READING OF SENATE BILLS

S. F. No. 1623 was read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Falk; Greiling; Hausman; Lieder; Johnson; Mahoney; Atkins; Slocum; Benson; Hilty; Anzelc; Kahn; Murphy, E.; Hornstein; Hosch; Ward; Knuth; Lesch; Solberg; Davnie; Clark; Eken; Sailer; Bly; Carlson; Peterson; Otremba; Koenen; Mullery; Nelson; Lillie; Persell; Slawik and Haws introduced:

H. F. No. 2395, A bill for an act relating to state government; repealing unallotment authority; repealing Minnesota Statutes 2008, section 16A.152, subdivision 4.

The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.

Johnson and Atkins introduced:

H. F. No. 2396, A bill for an act relating to telecommunications; amending regulation of cable communications systems; providing regulation of state-authorized video service providers; amending Minnesota Statutes 2008, sections 238.02, by adding subdivisions; 238.03; proposing coding for new law in Minnesota Statutes, chapter 238.

The bill was read for the first time and referred to the Committee on Commerce and Labor.

Slawik introduced:

H. F. No. 2397, A bill for an act relating to education; requiring reports of financial and property losses involving theft in public schools; proposing coding for new law in Minnesota Statutes, chapter 123B.

The bill was read for the first time and referred to the Committee on K-12 Education Policy and Oversight.

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6559

Urdahl introduced:

H. F. No. 2398, A bill for an act relating to capital improvements; authorizing the issuance of state bonds; appropriating money for Bertram Chain of Lakes Regional Park.

The bill was read for the first time and referred to the Committee on Finance.

Mahoney, Urdahl, Mariani, Johnson and Dean introduced:

H. F. No. 2399, A bill for an act relating to capital improvements; authorizing the sale and issuance of state bonds; appropriating money for a grant to the city of St. Paul for a regional baseball facility.

The bill was read for the first time and referred to the Committee on Finance.

Morrow introduced:

H. F. No. 2400, A bill for an act relating to taxation; providing a property tax credit for agricultural property used in a farm operation that has incurred economic losses due to the H1N1 virus; proposing coding for new law in Minnesota Statutes, chapter 273.

The bill was read for the first time and referred to the Committee on Taxes.

Gunther; Torkelson; Urdahl; Marquart; Magnus; Kelly; Cornish; Anderson, P.; Hamilton and Davids introduced:

H. F. No. 2401, A bill for an act relating to agriculture; appropriating money for grants to certain pork producers.

The bill was read for the first time and referred to the Committee on Finance.

Gardner and Anzelc introduced:

H. F. No. 2402, A bill for an act relating to commerce; regulating the purchase, return, and collection for recycling of lead acid batteries; modifying certain charges; amending Minnesota Statutes 2008, sections 325E.115, subdivision 1; 325E.1151, subdivisions 1, 3, 4.

The bill was read for the first time and referred to the Committee on Commerce and Labor.

Dettmer; Reinert; Anderson, B.; Severson; Newton; Shimanski; Magnus; Hamilton; Lieder; Drazkowski and Seifert introduced:

H. F. No. 2403, A bill for an act relating to the legislature; proposing an amendment to the Minnesota Constitution, article IV, section 4; providing for temporary successors to members of the legislature called into active military service; providing for implementing statutory language; proposing coding for new law in Minnesota Statutes, chapter 3.

The bill was read for the first time and referred to the Committee on State and Local Government Operations Reform, Technology and Elections.

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6560

Brod, Emmer, Buesgens, Dean, Zellers, Gunther, Peppin, Shimanski, Dettmer, Drazkowski, Gottwalt, Sanders, Loon, Hamilton and Torkelson introduced:

H. F. No. 2404, A bill for an act relating to taxes; individual income; allowing an additional personal exemption and providing an alternate even rate tax; amending Minnesota Statutes 2008, section 290.01, subdivision 19b, as amended; proposing coding for new law in Minnesota Statutes, chapter 290.

The bill was read for the first time and referred to the Committee on Taxes.

Reinert; Dettmer; Newton; Severson; Anderson, B.; Lieder; Norton; Ruud; Jackson; Rosenthal and Sterner introduced:

H. F. No. 2405, A bill for an act relating to the legislature; proposing an amendment to the Minnesota Constitution, article IV, section 4; providing for temporary successors to members of the legislature called into active military service; providing for implementing statutory language; proposing coding for new law in Minnesota Statutes, chapter 3.

The bill was read for the first time and referred to the Committee on State and Local Government Operations Reform, Technology and Elections.

Sertich moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by the Speaker.

There being no objection, the order of business reverted to Petitions and Communications.

PETITIONS AND COMMUNICATIONS

The following communications were received:

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

May 14, 2009

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Kelliher:

Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State Chapter No. 79, House File No. 1362, the omnibus health and human services bill, with the exception of the following line item veto:

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6561

Page 373, line 11: A $381,081,000 appropriation for fiscal year 2011 for General Assistance Medical Care grants.

The rate of growth in health and human services spending is forecasted to grow by approximately 15 percent in the next biennium and approximately 30 percent in the following biennium, and that rate is unsustainable. In the 2010-2011 biennium, my budget recommendations for health and human services saved roughly $1.67 billion in the general fund. The budget adopted by the legislature in this bill saves substantially less — $613.4 million. I encourage legislators to continue working next session to slow the growth in the state's human services spending.

The impact of this item veto and related, anticipated unallotments will not occur immediately. As a result, the legislature will have an opportunity to address this change further if it chooses. Additionally, many individuals now eligible for GAMC may be eligible under the MinnesotaCare program.

Although I have approved this bill, significant concerns remain regarding provisions prohibiting a special transportation broker, as well as the provisions related to the automatic renewal of MinnesotaCare eligibility.

I am also disappointed in the county human services redesign provisions contained in the bill. They are timid and lack boldness. Counties can already do multi-county human services delivery, program by program, under current law. The bill's requirements for multiple binding agreements with the state simply add complexity and bureaucratic structure to the current process. I hope there will be legislative attention yet this session to improve upon the county human services redesign in the bill as well as other troubling provisions in the bill.

Sincerely,

Tim Pawlenty

Governor

MOTION TO OVERRIDE LINE ITEM VETO

Huntley moved that page 373, article 13, section 3, subdivision 6, line 11, of Chapter No. 79, H. F. No. 1362, be now reconsidered and repassed, the objections of the Governor notwithstanding, pursuant to Article IV, Section 23, of the Constitution of the state of Minnesota.

CALL OF THE HOUSE

On the motion of Sertich and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:

Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6562

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher

The bill was repassed, as amended by the Senate, and its title agreed to.

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6566

Madam Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 705, A bill for an act relating to health; promoting preventive health care by requiring high deductible health plans used with a health savings account to cover preventive care with no deductible as permitted by federal law; amending Minnesota Statutes 2008, section 62Q.65.

Colleen J. Pacheco, First Assistant Secretary of the Senate

Loeffler moved that the House refuse to concur in the Senate amendments to H. F. No. 705, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Madam Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 1276, A bill for an act relating to health and human services; relieving counties of certain mandates; making changes to residential treatment facilities; county payment of cremation, burial, and funeral expenses; child welfare provisions; health plan audits; nursing facilities; home health aides; inspections of day training and habilitation facilities; changing certain health care provisions relating to school districts, charter schools, and local governments; amending Minnesota Statutes 2008, sections 62Q.37, subdivision 3; 144A.04, subdivision 11, by adding a subdivision; 144A.43, by adding a subdivision; 144A.45, subdivision 1, by adding a subdivision; 245.4882, subdivision 1; 245.4885, subdivisions 1, 1a; 256.935, subdivision 1; 256.962, subdivisions 6, 7; 256B.0945, subdivisions 1, 4; 256F.13, subdivision 1; 260C.212, subdivisions 4a, 11; 261.035; 471.61, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 245B; repealing Minnesota Rules, part 4668.0110, subpart 5.

Colleen J. Pacheco, First Assistant Secretary of the Senate

Norton moved that the House refuse to concur in the Senate amendments to H. F. No. 1276, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Madam Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 1728, A bill for an act relating to human services; amending child care programs, program integrity, and adult supports including general assistance medical care and group residential housing; amending Minnesota Statutes 2008, sections 119B.011, subdivision 3; 119B.08, subdivision 2; 119B.09, subdivision 1; 119B.12, subdivision 1; 119B.13, subdivision 6; 119B.15; 119B.231, subdivision 3; 256.014, subdivision 1; 256.0471, subdivision 1, by adding a subdivision; 256D.01, subdivision 1b; 256D.44, subdivision 3; 256I.04, subdivisions 2a, 3; 256I.05, subdivision 1k.

Colleen J. Pacheco, First Assistant Secretary of the Senate

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6567

Loeffler moved that the House refuse to concur in the Senate amendments to H. F. No. 1728, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Madam Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 1853, A bill for an act relating to commerce; regulating various licenses, forms, coverages, disclosures, notices, marketing practices, and records; classifying certain data; removing certain state regulation of telephone solicitations; regulating the use of prerecorded or synthesized voice messages; regulating debt management services providers; permitting a deceased professional's surviving spouse to retain ownership of a professional firm under certain circumstances; amending Minnesota Statutes 2008, sections 13.716, by adding a subdivision; 45.011, subdivision 1; 45.0135, subdivision 7; 58.02, subdivision 17; 59B.01; 60A.08, by adding a subdivision; 60A.198, subdivisions 1, 3; 60A.201, subdivision 3; 60A.205, subdivision 1; 60A.2085, subdivisions 1, 3, 7, 8; 60A.23, subdivision 8; 60A.235; 60A.32; 61B.19, subdivision 4; 61B.28, subdivisions 4, 8; 62A.011, subdivision 3; 62A.136; 62A.17, by adding a subdivision; 62A.29, by adding a subdivision; 62A.3099, subdivision 18; 62A.31, subdivision 1, by adding a subdivision; 62A.315; 62A.316; 62L.02, subdivision 26; 62M.05, subdivision 3a; 65A.27, subdivision 1; 65B.133, subdivisions 2, 3, 4; 67A.191, subdivision 2; 72A.20, subdivisions 15, 26; 79A.04, subdivision 1, by adding a subdivision; 79A.06, by adding a subdivision; 79A.24, subdivision 1, by adding a subdivision; 82.31, subdivision 4; 82B.08, by adding a subdivision; 82B.20, subdivision 2; 319B.02, by adding a subdivision; 319B.07, subdivision 1; 319B.08; 319B.09, subdivision 1; 325E.27; 332A.02, subdivision 13, as amended; 332A.14, as amended; 471.98, subdivision 2; 471.982, subdivision 3; Laws 2009, chapter 37, article 4, sections 19, subdivision 13; 20; 23; 26, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 60A; 62A; 62Q; 72A; 80A; 82B; 325E; repealing Minnesota Statutes 2008, sections 60A.201, subdivision 4; 61B.19, subdivision 6; 70A.07; 79.56, subdivision 4.

Colleen J. Pacheco, First Assistant Secretary of the Senate

Atkins moved that the House refuse to concur in the Senate amendments to H. F. No. 1853, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Madam Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 1053, A bill for an act relating to elections; requiring certain public officials to provide additional data to the secretary of state for use in maintaining the voter registration system; providing for automatic voter registration of applicants for a driver's license, instruction permit, or identification card; changing certain notice requirements; amending Minnesota Statutes 2008, sections 201.121, subdivision 2; 201.13, by adding a subdivision; 201.14; 201.15, subdivisions 1, 2; 201.155; 201.161; 204C.08, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 201.

Colleen J. Pacheco, First Assistant Secretary of the Senate

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6568

CONCURRENCE AND REPASSAGE

Simon moved that the House concur in the Senate amendments to H. F. No. 1053 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 1053, A bill for an act relating to elections; requiring certain public officials to provide additional data to the secretary of state for use in maintaining the voter registration system; providing for automatic voter registration of applicants for a driver's license, instruction permit, or identification card; amending Minnesota Statutes 2008, sections 13.607, by adding a subdivision; 201.121, subdivision 2; 201.13, by adding a subdivision; 201.14; 201.15, subdivisions 1, 2; 201.155; 201.161; 204C.08, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 201.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 86 yeas and 48 nays as follows:

Those who voted in the affirmative were:

Abeler

Anderson, P.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davnie

Dean

Demmer

Dill

Dittrich

Doepke

Doty

Downey

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Spk. Kelliher

Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6573

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher

The bill was repassed, as amended by the Senate, and its title agreed to.

Madam Speaker:

I hereby announce that the Senate refuses to concur in the House amendments to the following Senate File:

S. F. No. 1009, A bill for an act relating to public safety; clarifying the prostitution penalty enhancement provision for repeat offenders; broadening the prostitution in a public place crime; making driving records relating to prostitution offenses public for repeat offenders and ensuring that they are available to law enforcement for first-time offenders; amending Minnesota Statutes 2008, sections 609.321, subdivision 12; 609.324, subdivisions 2, 3, 5.

The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:

Senators Torres Ray, Higgins and Ingebrigtsen.

Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.

Colleen J. Pacheco, First Assistant Secretary of the Senate

Lesch moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 3 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 1009. The motion prevailed.

Madam Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

S. F. No. 657.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.

Colleen J. Pacheco, First Assistant Secretary of the Senate

CONFERENCE COMMITTEE REPORT ON S. F. NO. 657

A bill for an act relating to energy; providing direction for the use of federal stimulus money for energy programs; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 216C.

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6574

May 15, 2009

The Honorable James P. Metzen

President of the Senate

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 657 report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and that S. F. No. 657 be further amended as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

DEFINITIONS; LEGISLATIVE NOTICE

Section 1. FEDERAL STIMULUS FUNDING.

Subdivision 1. Definitions. For the purposes of articles 1 to 6, the following terms have the meanings given them.

(a) "Act" means the American Recovery and Reinvestment Act of 2009, Public Law 111-5, unless the reference is to "this act," which refers to articles 1 to 7.

(b) "Commissioner" means the commissioner of commerce.

(1) energy efficiency and conservation block grants authorized under subtitle E of title V of the federal Energy Independence and Security Act of 2007, United States Code, title 42, section 17151, et seq.;

(2) the Weatherization Assistance Program authorized under part A of title IV of the federal Energy Conservation and Production Act, United States Code, title 42, section 6861, et seq.; and

(3) the State Energy Program authorized under part D of title III of the federal Energy Policy and Conservation Act, United States Code, title 42, section 6321, et seq.

(d) "Windows" or "energy-efficient windows" means new or replacement windows that are Energy Star qualified under federal guidelines or for windows for nonresidential structures it means windows of reasonably similar energy performance to Energy Star windows.

Subd. 2. Stimulus funding allocation. To the extent consistent with the act and other federal law and regulations, stimulus funding must be allocated and expended as provided under this act.

Subd. 3. Administrative costs. The commissioner may spend no more than five percent of the funds expended on programs under articles 2 to 4 for administrative costs of the programs.

Subd. 4. Contractors; bidding. Contracts funded in whole or in part under articles 2 to 4 must, to the extent practicable, ensure that bidding contractors are qualified and participate in available apprentice and training programs for all work performed. Bidding for contracts must, to the extent practicable, use the process established in Minnesota Statutes, section 16C.16, subdivisions 4, 5, 6, and 7, except that subdivision 12 does not apply.

Journal of the House - 57th Day - Sunday, May 17, 2009 - Top of Page 6575

Sec. 2. LEGISLATIVE NOTICE.

The commissioner shall notify the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy and finance when releasing a request for proposals or awarding a grant greater than $25,000 for a grant program authorized under articles 2 to 4.

ARTICLE 2

ENERGY EFFICIENCY

Section 1. WEATHERIZATION.

Subdivision 1. Priority. Priority must be given to serving the largest number of new weatherization clients consistent with federal eligibility requirements.

Subd. 2. Rental units. The commissioner shall attempt to increase the number of low-income rental units weatherized.

Subd. 3. Shelters. A shelter, as defined in Code of Federal Regulations, title 10, section 440.3, is eligible to receive weatherization assistance under this section.

Subd. 4. Income eligibility. Income eligibility limits for participants in the weatherization assistance program shall be the highest level allowed under federal law. The commissioner shall in a timely manner take all actions necessary to implement this requirement.

Subd. 5. Solar heat. An individual who receives assistance to provide solar heat through the Renewable Energy Equipment Program is eligible for weatherization assistance under this section, provided that the individual meets all other eligibility requirements for receiving weatherization assistance.

Subd. 6. Federal waiver. The commissioner shall apply for a waiver or otherwise seek authority from the United States Department of Energy to use funds under this section to weatherize abandoned and foreclosed residential properties acquired and rehabilitated with funds provided through the federal Neighborhood Stabilization Program.

Subd. 7. Payments authorized. Notwithstanding Minnesota Statutes, section 16A.15, subdivision 3, the commissioner may make payment to a weatherization service provider for allowable and eligible costs incurred for planning, capacity expansion, workforce mobilization, and training activities. Payment may be made for costs incurred on or after the effective date of an amendment to the weatherization service provider's contract that obligates the provider to comply with the requirements of the act.

Sec. 2. RESIDENTIAL ENERGY EFFICIENCY PROGRAMS.

The commissioner shall coordinate with the Minnesota Housing Finance Agency to use stimulus funds in conjunction with the Minnesota Housing Finance Agency's financing programs, including, but not limited to, loans, grants, and rebates, and additional programs the Minnesota Housing Finance Agency or other entities may develop to finance energy efficiency improvements in dwellings, including the purchase and installation of energy efficient windows. Financing programs for which there is market demand must be prioritized.

Sec. 3. INNOVATIVE ENERGY RESIDENTIAL EFFICIENCY PROGRAM.

Subdivision 1. Program. The commissioner shall make a grant to a city of the first class located in the service area of Minnesota Power for an innovative residential energy efficiency program that must coordinate its activities with the state energy program, local government unit, weatherization program, utility conservation improvement

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program, and private nonprofit funding sources. Stimulus funds must be matched $1 for every $4 of stimulus funds granted under this section and are available to the extent of the match. The program must include the following elements:

(1) provision of basic residential energy conservation measures;

(2) provision of more comprehensive residential energy conservation measures, including extensive retrofits and appliance upgrades;

(3) a plan to establish a revolving loan fund so that the program is sustainable over time; and

(4) innovative financing options allowing residents to finance energy efficiency improvements, at least in part, with energy savings.

Subd. 2. Report. By January 15, 2010, and October 30, 2010, the city must submit a report measuring and assessing the program's effectiveness and energy savings to the commissioner and the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy and finance.

Sec. 4. SMALL CITY ENERGY EFFICIENCY GRANT.

Subdivision 1. Program. The commissioner shall make a grant for an innovative residential energy efficiency program in a small rural city with a population under 4,000 located in the service area of Minnesota Power that is currently working with that utility, the county housing and redevelopment authority, and other state and local housing organizations to enhance energy efficiency for residents and businesses. Stimulus funds must be matched $1 for every $4 of stimulus funds granted under this section and are available to the extent of the match. The program must include the following elements:

(1) provision of basic residential energy conservation measures;

(2) provision of more comprehensive residential energy conservation measures, including extensive retrofits and appliance upgrades;

(3) a plan to establish a revolving loan fund so that the program is sustainable over time; and

(4) innovative financing options allowing residents to finance energy efficiency improvements, at least in part, with energy savings.

Sec. 5. OUTREACH ACTIVITIES TO INCREASE RESIDENTIAL PARTICIPATION IN ENERGY EFFICIENCY ACTIVITIES.

In order to maximize the number of new households participating in programs delivering residential energy conservation services under this act, the commissioner shall use stimulus funds to award grants on a competitive basis by September 1, 2009, to one or more organizations that are experienced in conducting outreach activities to partner with nonprofit and community organizations. Outreach activities must include, without limitation, households in low-income areas, small cities, and rural communities, and must reach all regions of the state. The methods used to contact households may include, but are not limited to, direct contact with households, advertising

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in traditional and nontraditional media, distribution of literature, presence at community events, partnering with community organizations, and other innovative measures. The commissioner may contract to coordinate outreach efforts with a community-based organization with demonstrated regional or statewide capacity, including an organization established under Minnesota Statutes, section 216C.385.

Sec. 6. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS TO LOCAL GOVERNMENTS.

The commissioner shall award grants to local units of government to enhance energy efficiency and reduce energy use. Energy efficiency and conservation block grant funds may be used for grants for activities including, but not limited to, planning, consultant services, energy audits, implementing energy-efficient building codes and inspection services, and energy efficiency renovations, including window replacement, street lighting, and the installation of renewable energy devices used in public buildings. Grants may only be made to local units of government not receiving direct federal energy efficiency and conservation block grant stimulus funding.

Sec. 7. LOCAL GOVERNMENT AND SCHOOL DISTRICT RENOVATIONS.

(a) The commissioner shall award grants to local governments and school districts to make energy efficiency improvements in existing local government and school district facilities. The use of stimulus funds must be coordinated with the local public building enhanced energy efficiency program under Minnesota Statutes, section 216C.43, or other available financing programs.

(b) The commissioner shall prioritize lighting upgrades, energy-efficient windows, energy recommissioning, and other cost-effective energy projects that are ready for immediate implementation.

(c) The commissioner may require a local government or school district, as a condition of receiving a grant, to commit to implement future activities, including but not limited to staff training, that are designed to create additional energy or operating savings to the local government.

(d) The commissioner shall coordinate with the Department of Education to prioritize school district projects for funding under this section, consistent with the principles of statewide geographic distribution of projects, optimized energy savings, and an improved learning environment for schoolchildren.

Sec. 8. STATE GOVERNMENT BUILDING RENOVATIONS.

(a) The commissioner shall use stimulus funds to renovate state government buildings to enhance energy efficiency. The commissioner and the commissioner of administration shall select, fund, and implement state government building renovation projects using federal stimulus money. Priority must be given to lighting upgrades, window repair and replacement with energy-efficient windows, energy recommissioning, and other cost-effective energy projects that are ready for immediate implementation.

(b) In addition to other uses, funds may be used to advance public building enhanced energy efficiency program projects under Minnesota Statutes, section 16B.322, and for grants for a portion of costs incurred by state agencies in implementing energy efficiency improvements not part of that program.

(c) Funds may be used to develop a system and procedures to set energy-reduction goals for state buildings, to automate utility bill data and analysis, to develop a system for reporting monthly energy use relative to these state building energy-reduction goals, and to install individual metering devices for separate buildings.

(d) The Department of Administration may require a state agency, as a condition of receiving stimulus funds under this section, to commit to implement future energy-savings activities, including but not limited to staff training, that are designed to create additional energy or operating savings to the state agency.

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(e) By January 15, 2011, and annually thereafter, the commissioner, in consultation with the commissioner of administration, must issue a report to the chairs and ranking minority members of the senate and house of representatives committees having jurisdiction over energy policy and finance on the activities and energy savings under this section.

Sec. 9. Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision to read:

Subd. 4a. Financing agreement. The commissioner of administration may, in connection with a financing agreement, covenant in a master lease-purchase agreement that the state will abide by the terms and provisions that are customary in net lease or lease-purchase transactions including, but not limited to, covenants providing that the state:

(1) will maintain insurance as required under the terms of the lease agreement;

(2) is responsible to the lessor for any public liability or property damage claims or costs related to the selection, use, or maintenance of the leased equipment, to the extent of insurance or self-insurance maintained by the lessee, and for costs and expenses incurred by the lessor as a result of any default by the lessee;

(3) authorizes the lessor to exercise the rights of a secured party with respect to the equipment subject to the lease in the event of default by the lessee and, in addition, for the present recovery of lease rentals due during the current term of the lease as liquidated damages.

Sec. 10. Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision to read:

Subd. 4b. Master lease-purchase agreements not debt. A tax-exempt lease-purchase agreement related to a financing agreement does not constitute or create a general or moral obligation or indebtedness of the state in excess of the money from time to time appropriated or otherwise available for the payment of rent coming due under the lease, and the state has no continuing obligation to appropriate money for the payment of rent or other obligations under the lease. Rent due under a master lease-purchase agreement during a current lease term for which money has been appropriated is a current expense of the state.

Sec. 11. Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision to read:

Subd. 4c. Budget offset. The commissioner of finance shall reduce the operating budgets of state agencies that use the master lease-purchase program under a financial agreement. The amount of the reduction is the amount sufficient to make the actual master lease payments.

Sec. 12. ENERGY TECHNOLOGY TRANSFER CENTER.

The commissioner shall award a grant to a nonprofit organization with extensive experience in the delivery of energy-efficient programs and technical analysis to develop an energy technology transfer center in this state.

Sec. 13. NATIONAL ENERGY EFFICIENCY CENTER.

(a) The commissioner shall develop a plan for a national energy efficiency center in this state to test energy efficiency equipment and systems to measure actual energy savings performance, to provide an ongoing assessment of energy efficiency best practices, and to coordinate with appropriate public and private entities to disseminate information and provide training on technology developments and best practices. In developing a plan, the commissioner shall collaborate with stakeholders, including but not limited to, the Center for Energy and the Environment, the Minnesota Center for Engineering and Manufacturing Excellence, and the Minnesota Technical Assistance Program at the University of Minnesota.

(b) The commissioner shall apply for a grant to create a national energy efficiency center in Minnesota if the federal Department of Energy or other entity makes funding available for that purpose.

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ARTICLE 3

RENEWABLE ENERGY

Section 1. DEFINITIONS.

For the purposes of articles 3 and 4:

(1) "renewable energy" or "renewable energy system" means an energy technology that generates electricity or thermal energy from the following sources:

(i) solar;

(ii) wind;

(iii) hydroelectric with a capacity of less than 100 megawatts;

(iv) hydrothermal;

(v) hydrogen, provided that after January 1, 2010, the hydrogen must be generated from the resources listed in this item;

(vi) biomass, which includes, without limitation, landfill gas; rotating woody crops; crop residues; an anaerobic digester system; biomass gasification; the predominantly organic components of wastewater effluent, sludge, or related by-products from publicly owned treatment works, but not including incineration of (A) wastewater sludge or related by-products from publicly owned treatment works; (B) mixed municipal solid waste; or (C) refuse-derived fuel from mixed municipal solid waste;

(vii) a district energy system fueled primarily by biomass;

(2) "solar energy" has the meaning given to "qualifying solar energy project" in section 216B.2411, subdivision 2, paragraph (d);

(3) "solar electric" has the meaning given to "qualifying solar electric project" in section 216B.2411, subdivision 2, paragraph (f), except that the 100-kilowatt peak generating capacity limit does not apply; and

(4) "solar thermal" has the meaning given to "qualifying solar thermal project" in section 216B.2411, subdivision 2, paragraph (e).

Sec. 2. RENEWABLE ELECTRIC GENERATION AND GEOTHERMAL FACILITY REBATES.

(a) The commissioner shall award rebates to qualifying facilities that generate electricity from renewable energy or provide heating and cooling from a geothermal system and that:

(1) begin operation after July 1, 2009; and

(2) provide electricity or heating and cooling to:

(i) a homeowner's primary residence; or

(ii) a business with 20 or fewer full-time employees.

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(b) The owner of a qualifying facility may apply to the commissioner for a rebate of the lesser of $10,000 for homeowners or $25,000 for businesses or 35 percent of the cost of the qualifying facility, including installation costs.

(c) The commissioner shall award rebates only from funds appropriated for that purpose and to the extent of those appropriations. Rebates must be made to eligible applicants in the order of the time of receipt of a complete application.

(d) For purposes of this section, "qualifying facility" means an electric generation facility with a capacity of less than 40 kilowatts that generates electricity from a renewable energy source or a geothermal system that provides heating and cooling.

Sec. 3. SOLAR REBATE PROGRAM.

The commissioner shall award rebates to homeowners and businesses that install solar energy projects.

Sec. 4. SOLAR CITIES PROGRAM.

The commissioner shall award grants to local units of government for the installation of large and small-scale solar electric or thermal projects, including innovative energy storage technology, in a geographically-concentrated area. The project must leverage funds from the federal Department of Energy to demonstrate the impacts of these projects on the electric grid, and the costs and benefits to ratepayers. The commissioner may develop matching requirements for these solar projects in order to maximize job creation and renewable energy development.

Sec. 5.