BRIEFLY The Minnesota Senate Week in Review For the week of January 30 - February 3 Elections bills gain The highlight of the Thurs., Feb. 2, floor session was the consideration of bills on the General Orders Calendar. Bills on General Orders are considered by the Senate acting as one large committee known as the Committee of the Whole. Each bill on General Orders has had two readings and has been reported out of one or more standing committees. Bills on General Orders may be debated and amendments may be offered. S.F. 35, authored by Sen. John Marty (DFL-Roseville), makes several changes in procedures for voter registration and absentee voting. The bill eliminates the witness requirement in voter registration, allows absentee voting for convenience, allows absentee ballots to be delivered to health care facilities and allows military personnel and individuals unexpectedly hospitalized to vote via fax machine. An amendment, offered by Sen. Dennis Frederickson (IR-New Ulm), deletes the provision allowing voting via fax machine. The amendment was defeated on a 25-36 roll call vote. Frederickson offered a second amendment, deleting a provision allowing a person to collect ballots from a health care facility, that was also defeated. Sen. Sheila Kiscaden (IR-Rochester) asked that the bill be temporarily progressed in order to have time to draft an amendment and no further action was taken. S.F. 141, authored by Sen. Dallas Sams (DFL-Staples), makes a number of changes in laws relating to school board elections. The measure changes the allocation of some election expenses, provides for the retention of election materials, clarifies terms of office and election frequency in some cities, authorizes the use of more than one combined polling place in school board elections and provides for dissolution of some election districts. The measure was given preliminary passage on a voice vote. A bill dealing with lawful gambling also gained preliminary passage. S.F. 46, authored by Sen. James Metzen (DFL-South St. Paul), increases the percentage of gross profit that may be expended for allowable expenses. The bill specifies that the percentage for expenses for bingo is increased from 60 to 65 percent and that for other types of lawful gambling the percentage is increased from 50 to 55 percent. Welfare amendments okayed Responding to public concerns, Sen. Don Samuelson (DFL- Brainerd) introduced several amendments to his welfare reform bill, S.F. 1. Samuelson addressed several provisions, including the requirement of teen mothers to live at home in order to receive AFDC (Aid to Families with Dependent Children). The Family Services Committee, chaired by Sen. Pat Piper (DFL- Austin), has heard public testimony regarding the provisions over the past several weeks. The author's amendments were considered and approved by the committee Thurs., Jan. 26. Samuelson presented an amendment permitting more exceptions to the teen parent requirement. In mandating teen mothers to live at home, many people in previous meetings had testified to the damaging effects that may occur. The amendment expands the definition of a living arrangement to include any non-public situation providing supervision, counseling, guidance, and independent living skills training. Sen. Sheila Kiscaden (IR-Rochester) requested clarification of permitted living situations by adding adult supervision "in a family-like setting" to the amendment. Another amendment modifies the obligation to seek full-time employment as specified under the Minnesota Family Investment Program (MFIP). Under the family support agreement in the MFIP overall plan, a caregiver may be expected to seek and accept full-time employment. The amendment defines full-time as 30 hours per week, or 20 hours per week if the caregiver is single with a child under six years old. The amendment also requires a caregiver enrolled in MFIP who voluntarily quits employment to notify the case manager within 10 days. In addition, the amendment specifies that a caregiver's job search is limited to three months to find a job related to their overall employment goal. After three months, the participant must accept any suitable employment. Piper expressed concern about the parameters of "suitable" employment, which includes jobs providing low wages and no child care. Samuelson clarified that child care would be available through the MFIP program. Samuelson offered another an amendment permitting AFDC recipients to withhold rent to uphold the recipient's rights when faced with problems with the landlord or housing. Another addition to the bill is the classification of a participant working in a temporary public service job for more than 67 days as a public employee. The provision is "trying to be flexible for local governments," Samuelson said. Regarding STRIDE participants, Samuelson presented an amendment specifying educational requirements. A recipient selected for a high school equivalency program must make satisfactory progress, and work at least 64 hours per month. For individuals participating in full-time post-secondary education, the amendment has no work requirement. The amendments were incorporated into S.F. 1. New TV show to air Senate Media Services, in cooperation with Greater Minnesota public broadcasting stations, is producing Capitol Report Live, a new interactive television program. On the new program, state lawmakers from Greater Minnesota will answer questions concerning rural issues. The program will air live every Tuesday evening, beginning February 7th, from 9 p.m. until 10 p.m. The channels are KWCM 10 (Appleton), KSMQ 25 (Austin), KAWE 9 (Bemidji), KAWB 22 (Brainerd), and WDSE 8 (Duluth). Viewers will be able to ask questions via fax, telephone and internet e-mail. The telephone number is 1-800-657-3635. The internet e-mail address is studio@lakes.senate.leg.state.mn.us and the fax number is 1-800-366-2588. Committee Capsule Agriculture and Rural Development Ed goals reviewed The Agriculture and Rural Development Committee, chaired by Sen. Joe Bertram, Sr. (DFL-Paynesville) listened to presentations from both the Minnesota Education in Agriculture Leadership Council, and the Commission on Agriculture Policy Mon., Jan. 30. Edgar Persons, from the University of Minnesota's Agriculture Dept., outlined the objectives of the Minnesota Education in Agriculture Leadership Council. "Our intent is to take a broad look at agriculture and education in the state," said Persons, "to go beyond the notion of Ag in the Classroom.". With its 1992 publication, The Status of Education In and About Agriculture, the council provided the first overview of not only what students are learning about agriculture, but also how they are learning it. The study cites trends in agricultural education, from elementary school through adult education. "It's difficult to get your arms around what is happening in agricultural education," said Sen. Arlene Lesewski (IR-Marshall), "and it's important to have this coordination and leadership. I commend the council for what they have done thus far." The 12 member council of gubernatorial appointees is the product of 1990 legislation. Funds totaling $50,000 were allocated through the K-12 education bill for the biennium. "If there isn't a bill for this council, then it just disappears at year's end?" asked Bertram. "That is correct," Persons confirmed. Harlan Anderson, a farmer from Cokato, represented the Commission on Agriculture Policy. Compiled from informal discussions with farmers, educators, and concerned citizens around the state, Anderson said that the goal of the commission was to determine common problems faced by the agricultural sector and suggest methods to remedy trouble spots. The group came up with 19 recommendations. A prevalent sentiment that the commission identified concerns the clean up of the Minnesota River. Agricultural groups said that they have been treated unfairly. "What we've been doing, farmers have been doing for many years," said Anderson, "but nobody ever told us we were doing wrong. The economies of agriculture don't permit overnight changes," Anderson continued. The group is asking for three to five more years to voluntarily address the reduction of nonpoint source pollution of the Minnesota River watershed. After this period, the project is to be turned over to state regulatory units, including the Pollution Control Agency, for further clean-up. Sen. Charles Berg (DFL-Chokio) objected to a recommendation that corporate farm laws should be abolished and replaced with limitations on the size of livestock units per site. Berg is a proponent of livestock expansion. The commission also recommended freezing the present level of gross real estate taxes on bare farmland, and increasing income taxes to fund education in rural areas. Township and county taxes are not included in the freeze. Sen. Dan Stevens (IR-Mora) said, "buildings and land don't require services, people do." Agriculture overview Committee members listened to lobbyists, farmers, and interested citizens voice comments and concerns about the 1995 federal farm bill. Sen. Joe Bertram, Sr. (DFL-Paynesville) apologized to members on behalf of Bob Bergland, former U.S. Secretary of Agriculture, whose planned visit was postponed. Rather than cancel the meeting, Bertram opened the time to discussion surrounding the federal farm bill. Recently returned from Washington D.C., Gerald Lacey, a farmer from Western Minnesota and president of the National Barley Growers Association said, "I see more unity on the federal level than I see in the state." He urged farmers to present a united front and to work with environmentalists. "The big guns in Washington are the environmentalists," said Lacey. "We need to work with them and educate them." Myron Halvorson, a farmer and vice-president of the Minnesota Agri-Growers Council said that there are two main concerns that must be addressed: property tax reform, and private property rights. "These are the grassroots issues which are important to farmers," Halvorson said. "We don't represent Democrats or Republicans--we represent farmers." Halvorson said that there has been a significant change in the government's attitude toward farmers, and that overlapping of agencies and their policies and duties has negatively impacted farmers nationwide. "We are tired of being harassed by state and federal agencies," Halvorson said. "Many agencies could be done away with and the environment would not suffer for their absence," Halvorson continued. "As we look to the 1995 farm bill debate, the only certain factor is that there'll be less dollars," said Al Christopherson, a farmer from Kandyohi County and president of the Minnesota Farm Bureau, "and it's completely uncertain where those dollars will go." Christopherson echoed concerns about property tax reform, and added wetland issues to the agenda. "If there is an area that will get farmers to sit up and take notice," he said, "it is wetlands." Bruce Kleven, a lawyer and farmer from Chippewa County, spoke on behalf of the Minnesota Wheat, Barley and Sugar Beet Growers. Besides looking for continued funding for scab research, growers want roads and bridges "at least maintained," said Kleven. He added that workers comp reform is also a growing concern for sugar beet growers. Lastly, Tom Cochran, executive director of the Agri-Growth Council echoed Lacey's thoughts about working with environmentalists. "Comments from environmentalists are extremely complimentary toward agriculture," Cochran said, "and it used to be that you couldn't use the two words in the same sentence." Crime Prevention Foster home licensing The first two bills to be heard by the Crime Prevention Committee, chaired by Allan Spear (DFL-Minneapolis), were laid over after more than two hours of discussion Thurs., Jan. 26. Sen. Don Betzold (DFL-Fridley) presented S.F. 64, a bill which would require the Department of Corrections to notify municipalities 30 days before licensing a foster home for juvenile delinquents. An amendment was added that would require a license applicant to meet with the municipality and would allow the municipality to submit written comments to the commissioner of corrections. The bill would not prohibit the DOC from issuing a license. The bill is in response to concerns from the Coon Rapids City Council about a home licensed for foster care of six youths, Betzold said. The council was notified only because the DOC was seeking approval for up to 12 girls which required a special use permit from the city. Coon Rapids Mayor William Thompson who testified at the meeting said the council would like to be notified of any application for a foster home license if a neighborhood will be affected. It is not that the city does not want such foster homes in the community, Thompson said, but he would like the DOC to meet with local officials before licensing. Local officials often have to react to neighbors who may oppose a foster home. "We're not saying they (juveniles) don't belong in our community, but we would like to try to find a location to work for the best," he said. "These kids are maybe not getting the best experience because the neighborhood is up in arms." William Guelker, of the DOC, said he didn't object to simply notifying the municipality but he thought the requirement to "meet and confer" with local officials went too far. He believed cities have been notified of foster care licensing since current statute requires an applicant receive approval from the local zoning and planning board. Guelker cautioned the committee against making the rules too cumbersome and consequently discouraging people from operating foster homes. "I'm concerned a number of these well-meaning people may just choose not to go through the process," he said. He added that DOC officials simply respond to applications for foster care licensing and are not involved with locating sites. "We would not be able to place a foster home somewhere else in the community," he said. Sen. Gene Merriam (DFL-Coon Rapids) agreed that the amendment asking the DOC to meet with local officials implied a municipality could change the location of a foster home. Public policy has been that any group of six people or less can live in any neighborhood, he said. Sens. Tracy Beckman (DFL-Bricelyn) and Jane Ranum (DFL- Minneapolis) also were concerned about affecting the operation of foster homes for non-delinquent juveniles. Beckman, who is a foster parent, said he would not want to possibly get involved in a public hearing-type process. "It's hard enough to get foster care," Beckman said. "If these kids are that big a thorn in the side of a community, we have to start looking at our communities. This would be going in the opposite direction." Sen. Randy Kelly (DFL-St. Paul) moved and the committee unanimously voted to withdraw the amendment. The bill then was laid over until a later meeting. In other business, the committee considered a bill that clarifies laws regarding eligibility for stays of adjudication. Sen. David Knutson (IR-Burnsville) presented S.F. 39 restricting the controlled substance possession crimes a person can be found guilty of while still being eligible for stays of adjudication. The bill also restricts eligibility for deferment or dismissal to first-time controlled substance offenders. Proponent of the bill, First Assistant Washington County Attorney Richard Hodsdon said the bill clarifies current legislation that allows some offenders to be put into diversionary programs instead of serving a sentence. The bill ensures individuals involved in sales of drugs or repeat offenders are exempted from diversion programs, he said. Hodsdon said the original legislation was designed to keep some drug criminals out of the prisons, however over the years more individuals with prior drug crime convictions were benefitting from the law. John Stuart of the state public defender's office disagreed with the proposed bill, saying the goal of legislation should be to find creative ways to deal with repeat drug offenders and to reduce the number of offenders going to prison. Scott Swanson, also of the state public defender's office, disagreed as well, and said the bill would further tighten drug- related crimes while the nation is moving toward more diversionary methods. Sen. Ellen Anderson (DFL-St. Paul) was concerned the bill takes away a judge's discretion. Others expressed concern on how the bill would affect jail capacity. The bill was set aside for further discussion. Program budgets heard At the Weds., Feb. 1, meeting, members of the Crime Prevention Finance Division heard budget reviews from the Ombudsman for Corrections, Private Detectives and Protective Agent Services Board, and the Board of Peace Officer Standards and Training (POST). Patricia Seleen, ombudsman for corrections, is requesting an additional $63,000 for the next biennium to pay for another field investigator and cover overhead costs associated with hiring two investigators last year. The annual budget for the program is $530,000 and Seleen heads a staff of 10. Members also discussed the budget of the Private Detectives and Protective Agent Services Board which is anticipating revenues of $90,000 for each of FY 96 and FY 97, and expenditures of $102,000 and $115,000 for those years respectively. Executive Director of the POST Board John Laux is requesting a deficiency allocation of more than $80,000 for FY 95 to cover litigation costs. Discussion of the budgets will continue. The budget review of the Sentencing Guidelines Commission is expected to be heard at a future meeting. Education New education agency proposed The Education Funding Division, chaired by Sen. Lawrence Pogemiller (DFL-Mpls.), reviewed a proposal to abolish the Dept. of Education and replace it with another at the Tues., Jan. 31, hearing. In the budget proposal, the governor recommended abolishing the Dept. of Education and replacing it with the Dept. of Children and Education Services, effective on July 1, 1996. In addition to carrying out the responsibilities of the Dept. of Education, other service programs aimed at children and families currently provided by other state agencies would be rolled into the new agency. The purpose for establishing the new department, Minnesota Planning Director Linda Kohl said, is to improve the delivery of children and family services by placing the state's programs into one organization. She said the current organizational system is seen as a barrier to the efficient delivery of those services. Kohl said the new agency would be responsible for three functions - providing family and community services, basic education, and career preparation programs. To perform those functions, the governor is recommending the transfer of more than 30 programs to the new department. Among those programs are Head Start and other early childhood education initiatives, child care funding programs, several health-related services, violence prevention efforts, and youth and training employment initiatives. In general, most of the funding provided through those programs is now awarded as grants, Kohl said. By shifting the programs from several agencies to one, distributing the funds could be better coordinated at both the state and local levels, she said. Several Senators expressed concerns that not all of the state-funded programs that serve children and families, such as Aid For Dependent Children (AFDC), were included among those that would be shifted to the new department. Maria Gomez, commissioner of the Dept. of Human Services, said two issues may prevent those programs from being included. "Unlike the other programs, AFDC is awarded as an individual entitlement," she said, "It must be uniform in how it is handled, and it couldn't be tailored by local communities to fit their programs." She added that the uncertain status of welfare reform at the state and national levels also was an issue. The division was also given a brief overview of the Dept. of Education's 1994 Performance Report. The report, required by a state law adopted in 1993, is to be linked to the agency's budget document and provide information about the agency's performance in carrying out its mission. The report, presented by Deputy Commissioner John Mercer and Bob Wedl, assistant commissioner, sparked discussion on the nature of the Dept. of Education's mission. Additional discussion of the report is expected at coming meetings. Graduation rule discussed The State Board of Education's efforts to adopt and implement a statewide graduation requirements rule was reviewed by the Education Funding Division, chaired by Sen. Lawrence Pogemiller (DFL-Mpls.), Thurs. morning, Feb. 2. Current state rules require students to attend a specified number of courses and for a certain number of hours in order to graduate, state board member Tom Lindquist, explained. A state board proposal would change the requirement. Expectations are that students entering ninth grade in the fall of 1996 will be the first class that will be required to meet new graduation requirements. The conditions that applied when the older rules were first adopted have changed, said Lindquist. Because today's students will be working in a global economy, he said the schools must do a better job of preparing them to do so. "We need to focus on results rather than seat time," he said. "The new rules will provide a safety net, that all students will graduate with the skills they need to be productive members of society. They will also establish higher academic standards that students will need to achieve." Iris McGinnis, the director of assessment for the Dept. of Education, likened the graduation rule to a jigsaw puzzle. She said under the older requirements, schools districts were given individual pieces and told to have their students assemble them into a complete picture. With the new requirements, she said the graduations standards represent whole pictures and that the districts will create the jigsaw puzzle their students will need to assemble in order to graduate. McGinnis said that 60 graduation standards have been developed and in order for a student to graduate from high school, they will be required to meet 23 of those standards. She added that all students will be required to show that they have mastered seven basic skills. She said the requirements will create an educational system where the focus is on the schools and their efforts to teach students, and will serve as a way for the state to pull back on the mandates it has placed on school districts. McGinnis said the rules also reflect a national effort to update the assumptions that were used to determine how curriculum is prepared and delivered. "The curriculum we use today is basically the same we have used since 1920," she said, "All we have done since then is add more information. We need to adapt to changed conditions and teach our students how to apply the information we provide." In 1993, the Legislature appropriated $10 million to the department to test how the graduation requirements would be implemented using 14 pilot sites. Reports on that work were presented by Dave Greve of the Annandale School District, Don Karlgaard from the Brainerd Schools District, and Linda Calendar from Anoka-Hennepin. The governor has recommended a $15 million appropriation for further development and implementation of the graduation rule. The division is expected to discuss the requirements as it continues budget discussions. Students react to budget Students representing each post-secondary education system presented their views on how proposed budgets will affect higher education to members of the Higher Education Division at its Weds., Feb. 1, meeting. The students showed statistics on higher education spending rates to support their request that Legislators increase funds to post-secondary institutions and depend less on yearly tuition increases. Andrea Ruesch of the Minnesota State University Student Association said the state has decreased higher education spending from 15.5 percent in 1987 to 11.5 percent in the next biennium as proposed by the governor. She said that represents a decline in investment in one of Minnesota's valuable resources and the future of the state. Sen. Lawrence Pogemiller (DFL-Minneapolis) asked if the students thought closing an institution and laying off staff would be a viable alternative to increasing tuition. Ruesch and the others agreed that tough choices exist but creative ways should be considered in order to continue to provide quality higher education. Ruesch said much depends on the effectiveness of the merger of the state universities and community and technical colleges. In other business, the committee, chaired by LeRoy Stumpf (DFL-Thief River Falls), heard a report from the Department of Finance on the higher education budget. Detailed discussion will continue. Environment and Natural Resources LCMR budget advances At a Thurs., Jan. 26, meeting, members of the Environment and Natural Resources Finance Division unanimously approved a bill that appropriates more than $33 million for 86 projects related to environment management, education and preservation. The funds, overseen by the Legislative Commission on Minnesota Resources (LCMR), allow municipalities and organizations to apply for grants to fund various environment- related projects. The grants are provided mostly through state lottery proceeds and the cigarette tax, according to author of the bill, Sen. Steven Morse (DFL-Dakota). The program is designed to give local control over various environmental issues while meeting state, regional and local environmental goals. Sen. Phil Riveness (DFL-Bloomington) asked if there are any restrictions in the application process that considers how critical the projects are, and whether a state agency may be able to or should fund a particular project. He suggested the LCMR look at a project as something that would not be done but for the availability of the grants. A section of the bill that divides any excess appropriations to various project areas was struck. The bill advances to the full Environment and Natural Resources Committee. Ethanol payments discussed A bill that changes provisions of the state subsidies for ethanol production was heard during a Tues., Jan. 31, meeting of the Environment and Natural Resources Finance Division. Sen. Steven Morse (DFL-Dakota) presented S.F. 106, a bill that phases out the blenders' credit and increases producers' credits. Morse said the bill benefits Minnesota producers instead of subsidizing out-of-state producers as the blenders' credit does. The bill supports the state's goal that ethanol production plants in the state produce 100 percent of the ethanol needed for blending with gasoline, he said. It also limits how much the state will subsidize a producer in both funding and quantity. The latest the program will run is the year 2010 and the state will not subsidize more than $30 million in a fiscal year, Morse said. The subsidy cap of $30 million is increased from the current $10 million, he said, to help producers in long-range planning. Members debated the merits of subsidizing the state's ethanol industry and whether more restrictions to subsidies should be included in the bill. The bill had advanced to the division from the Agriculture and Rural Development Committee; discussion will continue. Ethics and Campaign Reform Three bills to floor The Ethics and Campaign Reform Committee made quick work out of three bills relating to elections at its meeting Tues., Jan. 31. The committee, chaired by Sen. John Marty (DFL-Roseville) approved Senate Files 168, 181, and 3, sending them onto the full Senate. The first, S.F. 168, authored by Sen. Sam Solon (DFL- Duluth), allows minors to participate in simulated elections. "The bill is permissive," Solon said, "and does not mandate participation." Deputy Secretary of State Elaine Voss testified in support of the bill, saying that it is an educational program that increases awareness, particularly in the age group that shows the least amount of voter participation: 18-24. "We're loosing a whole generation of voters," Voss said, "and this is an educationally sound program, that will stimulate voting." Two bills sponsored by Sen. Richard Cohen (DFL-St. Paul) were also referred to the floor. S.F. 181, a bill that allows time off to vote in state legislative elections, was unanimously approved by members. S.F. 3, a bill that allows persons who are not registered members of either major political party to participate in elections as judges, was also sent to the floor. "The bill opens up the process significantly," Cohen said, "by allowing somebody who is not a Democrat or Republican to serve as an election judge." Finance Performance reports discussed A new process to indicate state agencies' performance was reviewed by the Senate Finance Committee, chaired by Sen. Gene Merriam (DFL-Coon Rapids), at the Tues., Jan. 31, hearing. Legislative Auditor James Nobles presented the committee with an overview of Performance Reporting, an effort that was required of state agencies by legislation adopted in 1993. The intent of that legislation, Nobles said, is to separate an agency's performance from the biennial budgeting process. In doing so, agencies are required to identify their mission, the goals of the programs they operate and manage, and the objectives that agencies intend to achieve through their programs. Nobles said 21 agencies are required to complete a performance report each year. The reports are submitted to the legislative auditor, who then comments on their content. One of the primary purposes for developing the reports, Nobles said, is to provide legislators with basic information about the programs that they are being asked to support through the budget process. He said that, by identifying specific program measurements, lawmakers and the public will be able to determine if a program actually does what it was intended to do. He said many agencies have been frustrated by the process, and are having difficulty in identifying measurable objectives for their programs. "And many agencies are skeptical," he said. "They are waiting to see if [the Legislature] actually uses the reports in the budget process." Some members commented that the report is just one of many that agencies issue, and they questioned the value of the information. Nobles agreed that agencies do provide ample amounts of information. "You don't need more data and more reports," he said, "What you need is better data and better reports." The committee also heard a brief report from Assistant Commissioner Judy Johnson and Kurt Richberg of the Dept. of Finance, who told the members that the department has developed and is testing a computer software system that will assist state agencies with their performance reports. Richberg said the software will maintain a database of all information, matched with program goals and objectives, from each of the agencies. That information, he said, is expected to be available through Internet in the early fall of 1995. In other business, the committee also approved S.F. 188, authored by Sen. Don Samuelson (DFL-Brainerd), allowing an appropriation made by the Legislature in 1992 to be used to relocate athletic fields near the new Brainerd college campus. A provision in the 1992 capital budget bill prohibited the use of state funds to relocate the athletic fields as part of a project to build a joint technical and community college campus in Brainerd. Samuelson said that when funding was approved for the project in the 1994 bonding bill, the intent was to repeal the provision, but in the final version of the bill, the repealer was omitted. With construction of the new campus now begun, he said passage of the bill will allow the contractors to complete site preparation work while they still on the site. Sen. LeRoy Stumpf (DFL-Thief River Falls) offered an amendment, modifying portions of the language contained in the 1994 bonding bill, allowing the Community College System additional flexibility in how they may use the appropriations they were given to plan and design several projects. The Stumpf amendment was adopted and S.F. 188 was approved. The measure now goes to the Senate floor. Agency budget review begins The State Government Division of the Senate Finance Committee, chaired by Sen. Richard Cohen (DFL-St. Paul), began its review of the governor's recommendations for the budgets of state agencies at the Weds., Feb. 1, meeting. The division began its review of the budget proposals with presentations from the State Board of Investment, the Office of the State Treasurer, and the Office of the State Auditor. Howard Becker, executive director of the State Board of Investment, told the division the governor is recommending the board receive a general fund appropriation of $407,000 for fiscal year (FY) 1996 and 1997. The board's total budget request is just more than $4 million for the biennium and Becker explained that most of the revenue the board receives comes from assessments billed against the statewide retirement and non- general fund accounts for the investments it manages. Becker explained that the state board is responsible for investment management of various public employee retirement and trust funds, and cash accounts. The total assets managed by the board amount to more than $23 billion. State Treasurer Mike McGrath presented a budget request of $4.95 million for the coming biennium to the division. McGrath said the State Treasurer's Office is responsible for monitoring and verification of all money that goes in and out of state government, as well as monitoring the receipt and disbursement of state funding. He said one of the challenges facing the office is monitoring electronic banking transactions, particular in how welfare payments are disbursed. McGrath said there are proposals to permit recipients to use automatic teller machines to get their payments. The division also began their review of the budget proposal from the Office of the State Auditor. Judy Dutcher, State Auditor, joined by Deputy Commissioners Deno Howard and Paul Almirall, presented a budget request of $14.2 million for the coming biennium and outlined the agency's responsibilities. The responsibility of the State Auditor, Howard said, is to serve as the state's "watchdog," monitoring how county and local governments are using their funds. "When we do an audit," she said, "We feel that we are there on behalf of the taxpayers to see how their dollars are being used." Howard also discussed the office's responsibility to investigate allegations of theft or fraud involving public funds, the oversight they provide to the state's police and fire relief associations, as well as research and informational duties. The division will continue to review the State Auditor's budget request at a later meeting. Gaming Regulation Lottery overview The Gaming Regulation Committee, chaired by Sen. Charles Berg (DFL-Chokio), reviewed the status of the state lottery Tues., Jan. 31. George Anderson, director of the Minnesota State Lottery, briefed members on details surrounding the operation. "Our hope here today is to highlight for you what was in 1994, and falling short of having a crystal ball, show you where we're going in 1995." According to Anderson, fiscal year 1994 lottery sales reached $331.5 million, due in large part to two record powerball jackpots. Of that figure, almost $81 million was returned to the state, 60 percent going to the general fund, and the remaining 40 percent allocated to the environment and natural resources trust fund. Sen. Bob Lessard (DFL-Int'l. Falls) told members that citizens in his district are concerned about the projects that lottery proceeds pay for. "People are tired of seeing this money put into the general fund, when it was intended to go for game and wildlife programs," Lessard said. He alerted members that he will offer an amendment to recoup half of the 6.5 percent that is presently allocated to the in-lieu-of-sales tax portion. "We're talking about somewhere around $10 million dollars a year that should be going to fish and game programs," Lessard added. Highlighting merits of the lottery, which is self- supporting, Anderson said that it collects monies owed to the state by withholding prize dollars from winners who have outstanding debts. Specifically, $150,654 was collected in back taxes and child support. Anderson said that the projected budget for next year is $41 million dollars, and pointed out that the self-imposed figure is less than the $44 million dollars that it is allowed. "It is a matter of fiscal prudence," he said, "which lets us cover the increasing cost of doing business, absorb any mandated salary increases, and respond to new legislation--such as funding the study of compulsive gambling," Anderson said. Turning to the issue of video gaming, Senators asked questions surrounding the security of the endeavor, the costs and the benefits. Berg asked how long it would take to get video gaming on-line, in the event that a test period and area were to be designated. "It would depend on the number of counties involved," Anderson said, "but somewhere between six to eight months." Sen. Kenric Scheevel (IR-Preston) raised questions about the security breeches, especially with the prevalence of creative computer hackers. Anderson said that there are numerous checks in place to insure the machine's safety and the game's integrity. "It is a priority to maintain public confidence at all times," Anderson said. The confirmation hearings of appointees to the Gambling Control Board were postponed until further notice. Governmental Operations and Veterans Rule-making process discussed Two views of the process used to develop state rules were presented to the Senate Governmental Operations and Veterans Committee, chaired by Sen. James Metzen (DFL-South St. Paul) and the House Governmental Operations Committee, chaired by Rep. Phyllis Kahn (DFL-Mpls.), during a joint meeting of the two legislative panels, Fri., Jan. 27. In recent sessions, several proposals have been introduced to alter the state's rule-making process. The members of the committees learned that new proposals are being prepared for introduction this session. One expert recommended wholesale changes to the process. "The Minnesota system is one of the most technical, rock-strewn, complicated schemes for rule-making in the entire country," said Arthur Bonfield, an administrative law professor at the University of Iowa. Bonfield said that the system that the state uses for establishing its rules is "over-judicialized." He argued that because all rule-making hearings are required to be on-the- record, public comment on the proposed rules is impeded. "You tend to want to conduct hearings like judicial hearings when they should be more like legislative hearings," he said. He said the current rule-making process seems to place more reliance on the views of "technocrats," state agency officials who specialize in an area of expertise. While arguing that state rules must have input from experts, it is the wishes of the "body politic," the general public as represented by its elected officials, that should determine if a rule is adopted. State rules most often delineate how agencies will implement the programs and policies that are directed by legislative action. There are practical reasons why legislatures should leave some policy-making abilities up to agencies through rule- making, Bonfield said. "You don't have the time and staff to make all the decisions," he said, "and you don't have the expertise for specificity." He said that when lawmakers require agencies to adopt rules needed to implement specific programs, they should clearly specify the objectives the program is intended to meet. Melvin Goldberg, a professor at the William Mitchell College of Law, told the members that he agreed the Minnesota rule-making process was unique. But he argued that wholesale changes to the system are not necessarily needed. "The current system is much more reflective of legislative intent," he said, "It does indeed provide an opportunity for everyone to see a rule before it takes effect and to comment on it." Having served as an administrative law judge for a number of rule-making hearings, Goldberg said the process does encourage public input. "An interesting thing occurs at a rule hearing," he said, "The public does come forth and has exchanges with agency staff about the rules. What happens at these hearings gives the public a greater sense that there is openness in government processes." Goldberg encouraged legislators to consider avoiding changes to the process that may inadvertently increase the potential for litigation in how rules are established. "There is a better chance for catching mistakes in our system by allowing on-the- record hearings to take place," Goldberg said. Further discussion of proposals to change the rule-making process is expected later this session. Innovation reports given The work of a state board charged with improving local government service delivery was reviewed by the Governmental Operations and Veterans Committee, chaired by Sen. James Metzen (DFL-South St. Paul), at their hearing Tues., Jan. 31. The committee heard a report on the activities of the Board of Government Innovation and Cooperation from Jim Gelbmann, the board's executive director. He said that the main purposes of the board are to provide incentives to help local governments to be innovative and cooperative in the delivery of their services and to remove state-imposed barriers that local governments may face in providing services. The board, created by the Legislature two years ago, represents "a bold initiative," Gelbmann said. "It showed that the state was willing to enter into partnerships with local governments in an effort to improve the quality of services," he said. Since its inception, Gelbmann said the board has awarded more than $3.2 million in grants to local governments for pilot projects that alter how those local governments do business. The state's involvement has been crucial, he said. "It is unfair for local governments to assume all of the risks for trying to implement new ideas," Gelbmann said. "By providing some incentives, the state assumes part of the responsibility for those new ideas." Two projects that were funded by the board were featured at the hearing. Wilkin County Commissioner Audrey Krebs told of their county-wide project involving county government, the nine cities and two school districts in her county. She said the county received a $25,000 grant for a program involving high school students who provide public services that local governments cannot afford. Krebs said the students, who earn academic credit for their efforts, have provided programs for children, worked with elderly residents, helped run a crisis intervention line, and identified wells that need to be sealed. Five students involved in the program - Dana Miranowski, Jared Miller, Amy Byars, Heather Zimmerman and Jodi Harrington - told the members of their particular projects. Roberta Anderson, Norwood city administrator, said her city has begun efforts to combine their public services with those offered by the adjoining community of Young America. The effort was awarded a $48,000 grant to support the planning that has begun. Anderson said this effort is being guided by a steering committee and several issue area committees who are addressing the concerns that caused earlier merger efforts to fail. She said the grant is being used to help cover the costs for legal and planning assistance throughout the process. The incentives program is an important part of the board's work, Gelbmann said, but he felt their most important responsibility is to help local governments get around procedural barriers by granting waivers to rules. Cheri Merritt of the Hennepin County Elderly and Disabled Assistance Division told the committee of a waiver the county received from an income reporting requirement. Under Medical Assistance rules, individuals are required to report any changes to their income every six months. She said the waiver exempts individuals on fixed incomes from having to file a report, which simplifies the process for those individuals. Ellen Larson, Lake of the Woods County Auditor, told of two waivers her county received. The first allows the county auditor and county treasurer to eliminate duplication of delinquent taxes information. The other waiver, she said, exempts the county from having to publish its financial report in two newspapers, and specifies that competitive bidding be used in designating which is the legal newspaper. Because the county only has two papers, the waiver requires that when the statement is run, the other paper contain an advertisement noting the publication. The waiver saved the county about $5,000 in costs, Larson said. Customer service profiled The Governmental Operations and Veterans Committee, chaired by Sen. James Metzen (DFL-South St. Paul), completed its review of state government innovation, Weds., Feb. 2, with a report on the efforts of the Dept. of Revenue to improve customer services. Assistant Commissioner Dwight Lahti told the committee the Dept. of Revenue has been talking about service levels for some time. "We began to find that we were talking about service out of one corner of our mouths," he said, "but the results of our outcomes were not indicating that we were doing customer service." He said several efforts have begun over the past five years that are improving how the agency serves its customers. Stan Marchio, a Taxpayer Service Representative, said that before 1994, only about 47 percent of all calls being made by people with questions about their state income taxes were actually being answered. He said the department started asking customers what they wanted and found that most are calling to request tax forms, check on the status of their refund, or ask a specific question. Marchio said that by implementing a voice mail system, callers could automatically order forms or check on refunds. Additional agency staff from the department's audit division were then trained to handle the other calls during peak periods of the year. "We were able to get our response rate up to 89 percent," he said. Additional changes, based on customer suggestions, have been made such as clarifying details on the tax forms and by extending the availability of service representatives by adding evening and weekend hours, Marchio said. Diane Nelsen of the department's Audit Division explained efforts to instill a customer focus in the division. She said a customer survey was first conducted in 1991, despite the resistance from the auditors in the agency. "We found that people are more reasonable than we expected," she said, "and that we thought the audits were educational for taxpayers. But the results showed we were much weaker in that area than we thought." As a result, she said more effort is being placed on providing service to the customers throughout the audit process. Lahti also discussed the on-site inspections of the agency's customer service efforts performed by individuals from outside the department. "We are not in pursuit of any award," he said, "That takes some of the pressure off during these inspections." He added that the atmosphere in the department has changed because of their efforts. "Five years ago you would never hear anyone even whisper the word "customer"," he said. "Today you hear it throughout the department." "We still have a long ways to go," he concluded, "This doesn't happen overnight, and it has taken some time to get the notion of customer into the organization, but it is happening." Health Care Medical Practice Board bill heard Responding to the need for mostly technical changes regarding the Board of Medical Practice, Sen. Pat Piper (DFL- Austin) explained S.F. 95, a housekeeping bill, in the Health Care Committee Thurs., Jan. 26. The bill contains several provisions, including changes in the licensing requirements for foreign applicants and allowing the board to approve the cancellation of credentials. Provisions also add to the grounds for disciplinary actions, allow the board to suspend credentials and to require a mental or physical examination of regulated persons. In addition, the bill extends civil immunity and makes changes in the registration of physical therapists. Sen. Jim Vickerman (DFL-Tracy) expressed concern about the licensing requirements for foreign applicants, saying that the changes may exclude foreign doctors from practicing. The proposed changes require that a foreign medical graduate must complete a two year accredited graduate training program in the United States, U.S. territories or Canada, or must complete one year of the training program and must have practiced for five years without disciplinary action in the U.S., U.S. terrritories or Canada. Sen. Sheila Kiscaden (IR-Rochester) concurred with Vickerman, stating that the bill defines a qualified physician too narrowly, and is "not in the best interest of rural health access." Leonard Boche, director of the Medical Practices Board, explained that the requirements are a response to situations in which a physician's qualifications cannot be judged and training and disciplinary actions cannot be verified. "There is a very delicate balance" between assuring minimum requirements and the need for providing service in rural areas, Boche acknowledged, but "this is the only mechanism we have to determine minimum standards." The bill was laid over. The committee, chaired by Sen. Linda Berglin (DFL-Mpls.) also heard the Department of Health's presentation on the anesthesia practices study. Mary Kennedy explained that services are provided by both an anesthesiologist and a certified registered nurse anesthetist, generally in a team care approach. The study found that the team approach is the most cost effective and provides the highest quality of service, as shown by the very low patient risk factor. Governor's budget presented The Health Care Committee, chaired by Sen. Linda Berglin (DFL-Mpls.), heard the governor's budget recommendations for the Dept. of Health and Human Services on Weds., Feb. 1. The Dept. of Health recommendations for the upcoming biennium total $76 million from the general fund and $32 million from the state government special revenue fund. The agency's plan includes improvements to health quality assurance, health protection, support services, and the development of health systems. Elizabeth Quam, assistant commissioner of the Dept. of Health, outlined the proposals within the department. Quam described plans for a home care licensure program increase and the health facilities licensure program. The program increase of $115,000 in 1996 and $125,000 in 1997 would allow for compliance activities without a fee increase. Quam explained that home care providers are "the fastest growing segment in the health care industry," and that currently the department administers the licensing for 55 percent more providers than projected. The increase is needed in order to offer appropriate assistance and inspections in a field where there are many inexperienced providers, Quam said. The requested funds for health care facility license fees decreased by $2.7 million for 1996 and $3.7 million for 1997. The decrease is in response to a 1993 fee increase used to recover a deficit. Quam explained that the deficit has been reduced, and that the requested funds will support regulatory activity through new staff positions. Christine Rice of the Health Protection Program explained the role of the program to members, noting that the program oversees disease prevention, environmental health and public health. Among the governor's recommendations in the program are a fee increase in the food, beverage and lodging inspection program, generating $175,000 annually. Rice said that the new fee schedule would better reflect the risk assessments and time devoted to a particular facility. Rice also noted that the Health Protection Program, which monitors infectious diseases in the state, is discussing payment options for the meningitis vaccinations given recently in Mankato, but no policy has been determined. Committee members heard recommendations for the Dept. of Human Services, outlined by Shirley Patterson. Patterson described the Life Skills Self Sufficiency Initiative, which provides a variety of social and long term support services. The purpose of the initiative is to improve access, increase consumer choice and allow more tailoring to individual needs and abilities, Patterson said. The initiative includes an increased appropriation of $335,000 in 1996 to test and implement alternative quality assurance approaches for persons requiring ongoing care. The approaches will include peer review models, client feedback, local quality assurance and service planning approaches. Patterson explained that the recommendations also include an appropriation of $2 million to establish developmental disabilities pilots to streamline requirements, shift purchasing of services to the local level, and provide increased consumer choice in nontraditional services. The pilots focus on integration and the establishment of a single set of standards and procedures for developmental disability services, said Patterson. Berglin expressed concern about the cost of the programs and the expected outcomes. Discussion will continue. Health budget discussed Convening to consider the governor's budget recommendations, the Health Care and Family Services Finance Division met Weds., Feb. 1. Biennial budget recommendations total $190.9 million annually for the Dept. of Health. Ann Barry of the Dept. of Health outlined the agency's strategies, focusing on assessment of the health of populations, policy development and planning, and assurance that appropriate activities are carried out. Tom Maloy, director of the department's finance and administration area, explained that currently 54 percent of the department's $190.6 million resources come from the federal government. The department allocates 53 percent of its total expenditures to grants, Maloy said. Elizabeth Quam, assistant commissioner, outlined the proposals within the health systems development area. Within the area are three services in which recommendations are made by the governor, including the family health activities. Quam noted that 87 percent of the family health activity resources are allocated to special project grants. Currently a grant is requested for $300,000 for a women's health initiative to promote and improve the health status of women through health advocacy, research and dissemination of information. Another request is a transfer of services to a newly created Dept. of Children and Education Services. Quam said that the transfer would improve coordination and integration of services for children and their families. Regarding community health services, an increase of $590,000 over the next two years is recommended for reengineering the state's records system. The development of a computer network system enhances efficiency and customer service, Quam said. The health care delivery policy activity exists to monitor the rate of growth of health care spending, and improve the quality and access of health care services. Recommendations within this activity include the suspension of the regulated all- payer option (RAPO) fee schedule development. The suspension reduces expenditures by $348,000 annually. RAPO provides a standardized uniform reimbursement system to control spending for all health care services outside Community Integrated Service Networks (CISN) and ISNs. Quam explained that since few Minnesotans are likely to participate in RAPO in the near future and statewide cost containment goals are currently being met, that the rate setting component should be suspended. Jobs, Energy and Community Development Wind equipment tax exemption The Thurs., Jan. 26, meeting of the Jobs, Energy and Community Development Subcommittee on Energy and Public Utilities provided an opportunity to air the arguments on both sides of the controversy surrounding the property tax exemption for wind conversion equipment. No bill was before the Senators. The subcommittee, chaired by Sen. Janet Johnson (DFL-North Branch), heard first from Tim Seck of Kenetech Windpower, Inc. Seck testified that the company is not in a position to absorb tax on the existing 25 megawatt Buffalo Ridge wind conversion plant near Lake Benton in Lincoln County. Seck said that Kenetech's bid for the plant assumed that no taxes would be applied to the plant because of the 1991 law that exempted such facilities from taxation. He also said that under the current agreement, his company, not NSP or rate payers, would be responsible for paying any taxes assessed on the plant. Seck said that the bidding process for NSP's current request for 100 additional megawatts is complicated by the uncertainty about whether the exemption will be continued. Mary Peterson, Lincoln County Commissioner, and Jack Keers, Pipestone County Commissioner, testified in favor of taxing parts of the equipment. Peterson pointed out that Lincoln County provides services such as roads, emergency services and services of the county engineer to the existing plant and should receive some tax revenue from it. Peterson outlined a proposal under which, for the first five years, the tax would be based on the pads or foundations on which wind conversion equipment is placed, and from the sixth year on, the tax would be based on the pad or foundation and the towers. Keers testified that taxing only a portion of the present and future wind plants would have an impact on taxes in the rest of the county and could affect the county's ability to attract economic development. Representatives from the New World Power Corporation, the Sustainable Resources Center, the American Wind Energy Association, and the Institute for Local Self Reliance also testified on wind energy-related matters. Housing issues discussed The issue of providing affordable housing provided the focus for the Tues., Jan. 31, meeting of the Jobs, Energy and Community Development Subcommittee on Economic Development and Housing. The panel, chaired by Sen. Ellen Anderson (DFL-St. Paul), heard an overview, by Commissioner Kit Hadley, of the Minnesota Housing Finance Agency and heard summaries of two reports dealing with affordable housing. Hadley said that the two main objectives of the agency are to enable Minnesotans to have decent affordable housing and to aid in building communities. Hadley said that the agency is one of the top five financial institutions in the state and that for the 1994-95 biennium, the agency's Affordable Housing Plan includes funding for nearly 50 programs totaling $911.6 million. The agency is governed by a seven member board of directors and is organized in two major program divisions and three major support divisions. The program divisions are Single Family and Multi-Family. Hadley also pointed out that although the agency is a state agency, most of the funds used to operation the agency and to provide loans come from sources other than state appropriations. Hadley also provided an outline of the governor's housing initiative. The initiative provides for an addition $15 million to be used in four existing programs to meet the housing needs associated with economic development. The initiative earmarks $4 million for the Homeownership Assistance Fund; $7.8 million for the Affordable Rental Investment Fund; $3 million for the Community Rehabilitation Fund; and, $200,000 for the Capacity Building Grant Program. Hadley said that job creation in Greater Minnesota is handicapped by the lack of affordable housing in Greater Minnesota. Hadley also said that the agency is emphasizing the creation of affordable housing in the suburbs and Greater Minnesota and emphasizing the rehabilitation of housing stock in the central cities in an effort to lessen the concentration of low income housing in the central cities. Members also heard brief summaries of two reports relating to low-income and affordable housing in suburban areas. Barbara Lukermann, of the Humphrey Institute, outlined conclusions in a recent land use practices and low-income housing study. Lukermann said that the report concluded that the communities studied did not deliberately discriminate against people needing low-income housing but that the communities did not go out of their way to provide low and moderate income housing. The study also found that families base housing location choices on several factors, such as family relationships, in addition to availability of housing stock. Lukermann said that zoning and regulatory policies, while not deliberately discriminatory, do restrict access to housing. Other factors that may act as barriers include high property taxes, tight municipal budgets, demographics, higher land prices and concern over maintaining quality, said Lukermann. Mayor Joy Tierney, of Plymouth, along with Bob Renner and Cindy Thomas representing the Municipal Legislative Commission, presented a summary of another study on affordable housing. According to Thomas the debate over suburban low and moderate income housing has not examined what's driving the need for affordable housing. In addition, Thomas said that the debate has also failed to examine the differing kinds of needs for housing and the resulting mass transit needs. Tierney said that the major barrier in her community was the cost of land. Discussion of affordable housing issues will continue. Utility rate bills advance Three bills were advanced during the Weds., Feb. 1, meeting of the Jobs, Energy and Community Development Committee. The committee, chaired by Sen. Steven Novak (DFL-New Brighton), approved all three measures. Most of the debate centered on a provision in S.F. 65, authored by Sen. Randy Kelly (DFL-St. Paul). The bill eliminates the sunset on the authority for the approval of area development rate plans for new and expanding business customers in a defined development area. In addition, the measure expands the definition of utility to include gas utilities, includes the Iron Range Resources and Rehabilitation Board under the definition of authority and allows a utility to recover the costs of the area development discount rate in the setting of general rates by the Public Utilities Commission. Debate focused on the provision allowing the utility to recover the costs of the discount from all ratepayers. For the five years the program has been in operation, recovery of costs was limited to the customers who benefitted from the plans. Sen. Janet Johnson (DFL-North Branch) and Sen. Ellen Anderson (DFL-St. Paul) said that they were concerned that residential customers would end up bearing the burden of the discount. Ken Stabler, representing NSP, said that over the course of the last year the plan would have only added 2 cents to the average residential bill. However, Johnson said that the potential for increasing the burden on residential customers could come in the future. After considerable debate, Sen. Kevin Chandler (DFL-White Bear Lake), offered an amendment that prohibits the recovery of costs from residential customers. The amendment was adopted. The bill was approved and sent to the Senate floor. S.F. 44, authored by Novak, extends the deadline for a report from the Legislative Electric Energy Task Force from Feb. 1, 1995 to Sept. 15, 1995. Novak said that the report is required by the Prairie Island legislation enacted last year, but because the task force had not yet hired an executive director, it was necessary to delay the report. The bill was approved and recommended for the Consent Calendar. The third measure gaining committee approval was S.F. 213, abolishing the sunset provisions related to competitive rates for electric utilities. The measure, sponsored by Sen. Douglas Johnson (DFL-Cook), makes permanent the PUC's authority to approve plans for competitive electric utility rates when a regulated utility is trying to retain a large customer. Sen. Janet Johnson questioned whether the approval of competitive rates was effectively preventing the development of cogeneration. Scott Bracket, of the Dept. of Public Service, agreed that the development of cogeneration might be delayed but said that the it would still be development. The bill was approved and sent to the full Senate. Cold Weather Rule discussed The Jobs, Energy and Community Development Subcommittee on Energy and Public Utilities met Thurs., Feb. 2, to hear testimony regarding Minnesota's Cold Weather Rule. The rule provides protection against utilities' shutting off customers main heat source during the winter. The panel, chaired by Sen. Janet Johnson (DFL-North Branch), heard testimony from representatives of consumers and utilities. Pam Marshall, representing the Energy Cents Coalition, testified that protection against utility shut-offs should be the first priority. Instead, she said, the Cold Weather Rule, places the entire burden of applying for protection on the customer. Marshall pointed to Wisconsin's Cold Weather Rule legislation as a model that Minnesota should emulate in protecting low income customers from utility disconnections. Deb Smith, representing the Public Utilities Commission, said that the goal of the rule is provide options to protect households from shut-offs of their primary heat source. She also pointed out that the rule only applies to regulated utilities in Minnesota. According to Smith, there are four types of protection a customer may apply for: the setting up of payment plans, a 10 percent plan, an inability to pay plan and a reconnection plan. In order to participate in the 10 percent plan and the inability to pay plan, customers must agree to participate in a budget counseling program. In addition, customers may also designate a third party to help in applying for protection. Smith said that the PUC has recently participated in the initiation of low income rates to make utility costs more affordable for low income users. Finally, Smith said that most of the 5,000 customers who were disconnected had not applied for protection under the Cold Weather Rule. Several representatives of utility companies that are not covered by the Cold Weather Rule also testified before the subcommittee. Most testified that, although they were not covered by the rule, they had taken steps to initiate budget plans or other plans to help customers avoid disconnections. Judiciary Human rights A proposal to extend the statute of limitations for filing a unfair discriminatory practice claim was presented to the Senate Judiciary Committee, chaired by Sen. Carol Flynn (DFL-Mpls.), Mon., Jan. 30. The committee, meeting for the first time this session, also approved three other bills and sent them to the Senate floor for further consideration. Under the provisions of S.F. 57, sponsored by Sen. John Marty (DFL-Roseville), an individual who may have been subject to an unfair discriminatory practice would have up to two years from when that practice occurred to file a claim under the state's Human Rights Act. Current law limits the filing of claims to up to one year from when the unfair practice allegedly occurred. The bill, Marty told the committee, would also prohibit an employer from asking a prospective employee for information about any complaints or charges of unfair discrimination that have been filed. The measure also limits the discovery and admission of certain evidence in sexual harassment claims, requiring that evidence is admissible only after a substantial showing is made that the evidence is material and relevant. Marty said the statute of limitations change allows those who feel they have been subject to discrimination more time to file a claim than the law now provides. In some instances, employees may feel that they cannot file a claim, out of fear that doing so would cost them their job, Marty said. Other times, he added, individuals are unable to file a claim for some time after the incident has taken place because it was a traumatic experience. "Extending the statute of limitations would give them a chance to have their day in court," Marty said. Robert Reinhart of the Minnesota Employment Law Council expressed his group's opposition to the bill and to extending the statute of limitations in particular. "Because of the unique nature of these complaints, employers need to know about the claims on the condition of their work places as quickly as possible," he said, adding that extending the statute of limitations is inconsistent with the intent of the rest of the human rights laws. Ken Nikoli of the Dept. of Human Rights also expressed concerns on the Marty proposal. He told the committee that extending the statute of limitations may open the door for an increase in the number of claims filed. He said the department would need additional resources to handle the added load. The committee set aside the proposal until their Feb. 6 meeting. In other action, the committee approved S.F. 75, authored by Sen. Don Betzold (DFL-Fridley), clarifying that a mechanics' lien, filed against registered land by a contractor seeking payment for improvements made to that property, is to be filed with the county's registrar of titles. Betzold said the bill is based on a recent Appellate Court ruling that overturned a lower court decision awarding a payment to a contractor for their work on a property. While the contractor followed state law by filing a lien for payment against the certificate of title with the county recorder, the court ruled that because there was a certificate of title, and not an abstract title, the lien should have been filed with registrar of titles. By specifying where mechanic's liens are to be filed, Betzold said this situation should not occur again. The bill was approved and sent to the Consent Calendar. S.F. 77, clarifying the time limits for court action to be taken under the new motor vehicle warranties law, was also approved and sent to the Senate floor. Current law allows a consumer who purchases a new vehicle from a dealer to file a complaint against the dealer in the event of a problem with the vehicle. Betzold, the bill's author, said the consumer can seek to settle the complaint with the dealer through arbitration, but if that settlement is unsatisfactory to either party, they may seek to have the settlement removed in court. Betzold said the bill specifies that if the consumer prevailed in the settlement, the dealer has 30 days from the date of the decision to file a claim in court seeking to have the settlement overturned. If the the consumer does not prevail, the consumer has six months to file a claim. After some discussion, the bill was amended to specify which of the parties would be aggrieved by the decision. The committee adopted the amendment and approved the bill. In other action, the committee also approved S.F. 74, sponsored by Sen. Ember Reichgott Junge (DFL-New Hope), sending it to the Consent Calendar. The measure, Reichgott Junge explained, makes technical corrections to several laws that were adopted in 1994. Information policy discussed The Joint Judiciary and Crime Prevention Subcommittee on Privacy met Weds., Feb. 1, to hear two reports dealing with information policy. The first report, required by legislation that was enacted in 1993, was an update on the Children's Information Management Redesign Project. Eileen McCormack, project director, began by outlining the general information resource needs that had to be met in order to integrate children's services data. However, the panel, co-chaired by Sen. Harold "Skip" Finn (DFL-Cass Lake) and Sen. Jane Ranum (DFL-Mpls.), questioned whether the report was actually the report required by the legislation. Sen. Gene Merriam (DFL-Coon Rapids), said that the draft report simply restated the problem that the legislation had already identified. Sen. Sheila Kiscaden (IR-Rochester) agreed and said "There is no sense of what has been accomplished and what the timelines are in this report." Kiscaden also said, "This report is not a list of what we need to have for a database; it is a list of reasons why we don't have a database." The subcommittee then heard an Information Policy Training and Professional Development Plan, presented by Kent Eklund, of the Cincinnatus Group. The plan was requested by the Dept. of Administrations Information Policy Office, in order to determine the training needs of state and local government employees in the implementation of laws relating to public information policy. According to Eklund, the report has two major recommendations: initiate a comprehensive data practices training and professional development plan and appoint a legislative study commission to review and modify data practices laws. Metropolitan and Local Government Overviews continue The Coalition of Greater Minnesota Cities and the Association of Metropolitan Municipalities presented overviews to the Metropolitan and Local Government Committee Thurs., Jan. 26. The committee, chaired by Sen. Jim Vickerman (DFL-Tracy), listened while representatives of each group outlined their agendas for the 1995 Legislative Session. Diane Koebele, of Flaherty & Koebele, highlighted the goals and policies of the Association. Besides opposing cuts in Local Government Aid and Homestead and Agricultural Credit Aid, the Association wants limits placed on MPCA water permit fees, annexation reform and changes in the municipal board process. Mayor Larry Buboltz of Detroit Lakes said that certain issues and cuts in financial aid that may go unnoticed in larger regions can present big problems in rural Minnesota due to the small size of communities. Pointing to annexation difficulties he said, "it pits friends against friends, neighbors against neighbors." Buboltz said that reductions in funding are hard felt in a community like Detroit Lakes. "For us, that $59,000 cut means that we have to close our library, or we can't hire the extra police that we take on during the summer." Sen. Martha Robertson (IR-Minnetonka) acknowledged that cities will be facing financial challenges as a result of fiscal policy tightening, but she pointed out that it is not just one city being affected. "Every city gets some money from LGA and HACA," Robertson said, "and everybody lost some this year." Instead, Robertson urged cities to look forward with a positive and creative attitude. "Fear doesn't help get us anywhere." Sen. Keith Langseth (DFL-Glyndon) said that every entity has to look at the big picture, not just its specific corner. "The pie was shrunk, and everybody's going to have to take a little bit less," he said. "Hopefully as a state, we'll all be winners," said Sen. Deanna Wiener (DFL-Eagan). Roger Peterson, executive director of the Association of Metropolitan Municipalities, briefly outlined the organization's priorities. Along with opposition to LGA and HACA cuts, urban revitalization and transportation top the list of 1995 concerns. Saying that transportation issues are paramount, Peterson said, "we can't just keep adding more ribbons of highways or twenty years from now we'll be scratching our heads wondering how we're going to get to the Capitol to do our business." Sen. John Hottinger (DFL-Mankato) said that while examining what monies have been shifted or cut, it is essential for everyone to be flexible. "We need to be willing to look at new approaches," Hottinger said. Rules and Administration Mileage policy change adopted The Rules and Administration Committee, chaired by Sen. Roger Moe (DFL-Erskine), met Thurs., Feb. 2, to consider several matters. Members adopted a change to the policy on mileage that would allow members who live more than 50 miles from the Capitol to be reimbursed for commuting expenses between their homes and the Capitol rather than being reimbursed for the expense of an apartment in St. Paul. The committee also approved a resolution authorizing Senate Counsel to take any steps necessary to represent the interests of the Senate in any court actions involving the allocation of space in the Capitol. Moe said that negotiations with the governor and the other body were nearly complete and that the resolution might not be needed but that the committee needed to adopt the resolution in the event it was needed. Finally, members approved changes to the employee roster for both temporary and permanent employees. Taxes and Tax Laws Budget overview heard The Taxes and Tax Laws Committee devoted the entire Tues., Jan. 31, meeting to discussion of the governor's proposed budget for the next biennium. The panel, chaired by Sen. Douglas Johnson (DFL-Cook), heard presentations from Finance Commissioner Laura King and Revenue Commissioner Matt Smith. King emphasized that the budget proposal contains no state taxes increases and no non-property local tax increases. She said that the proposal also contains a $17 million net reduction in fees and other revenues. King also emphasized that the proposal advances the governor's priorities in the areas of K-12 education, corrections and children and families. King said, "We have taken a lot of steam from state spending," and that spending will increase at a slower rate than in the past. However, King said there will be increases in education finance, criminal justice, human development and higher education to reflect the high priority given those areas. King and Smith also detailed the plan to eliminate and combine numerous aids and credits into County Homestead Block Grants. The budget proposal outlines a mechanism by which local government Aid Distribution Councils would allocate the block grants to the various levels of government. Committee members questioned the equity of the proposal, citing the disparate sizes and powers of various local government entities. Members raised questions about the effect of federal actions on the state budget. King said that there were two major areas of uncertainty in the budget proposal: the impact of federal actions on the state and the exact size of the Cambridge bank settlement. The federal actions that could affect the budget include not only the balanced budget amendment and welfare reform but the anticipated raise in interest rates, King said. Johnson, in his remarks, also pointed out that the current budget proposal will result in a budget deficit in the 1998-99 biennium and called for a bipartisan effort to address the root causes of the problems in the next biennial budget. Transportation and Public Transit Bills advanced The Transportation and Public Transit Committee, chaired by Sen. Florian Chmielewski (DFL-Sturgeon Lake) convened Tues., Jan. 31, and heard presentations of four bills. Sen. Joe Bertram (DFL-Paynesville) authored S.F. 33, a bill that allows some people applying for drivers licenses to wear headwear in photographs. The bill permits people with hair loss due to illness or injury to wear headwear, such as wigs or turbans, in a drivers license or identification card, as long as the headwear does not obscure the face. The bill advanced to the Senate. Bertram also presented a bill that makes it unlawful to erect or maintain a driveway headwall in a highway right-of-way, except as allowed by permit. The bill specifically addresses permanent walls constructed around culverts in drainage ditches. According to Bertram, some headwalls are considered a hazard if a vehicle would run off the road and into a ditch. After some discussion, the bill was set aside. Sen. Jim Vickerman (DFL-Tracy) sponsored S.F. 42, a bill that removes the sunset provision on a law that defines a recreational vehicle combination as a pickup truck attached to a camper-trailer, which tows a trailer carrying a watercraft. The sunset provision was included in the original statute to allow for review, Vickerman said. The bill advances to the Senate. Sen. Mark Ourada (IR-Buffalo) offered a bill designating a bridge near Elk River connecting Highway 101 in Wright County to Highway 169 in Sherburne County over the Mississippi River as the Betty Adkins Bridge. According to Ourada, the communities had sought replacement of the bridge for several years, and eventually raised $100,000 to fund the project. Adkins, a state senator at the time, had supported the community effort for the project. Some members questioned the naming of a bridge after a person who is still alive, and others wondered if there were political aspects to be considered. After amending the bill to ensure the cost of the name plaque is paid for by the communities, it was advanced to the Senate. Future of telecommuting discussed Members of the Transportation and Public Transit Committee heard a presentation on encouraging telecommuting as a way to reduce traffic congestion and transit costs, increase the quality of the environment, and restructure a community's economic base. At the Weds., Feb. 1, meeting, President of Tele-Commuters Resources Inc. John Sanger presented a report on developing a telecommuting deployment strategy in Minnesota. The role of telecommuting touches on a variety of issues facing many communities, Sanger said, including environment, economics, and quality of life. Currently, some 20 percent of the state's work force conducts their work in their home using home computers, modems and fax machines at least some of the time; 17 percent telecommute at least two days a week. Sanger said to encourage more telecommuters, communities need to lower the zoning restrictions present in most cities that prohibit businesses in residential areas. The committee, chaired by Sen. Florian Chmielewski (DFL- Sturgeon Lake) also heard testimony from the administration of the Annual Alternative Fuel Permit Program supporting restructuring of the permitting process. Jack Wildes of the Motor and Vehicle Services Division explained that some of the users of alternative fuel, such as propane or natural gas, are complaining about the law. He said 1994 legislation changed the fee structure and makes some user fees excessive, especially for individuals who use alternative fuel pickup trucks or vans. Wildes also said enforcement of the permits is difficult. David and Diana Leivestad, who have been in the alternative fuel business since the 1970s, suggested changing the law so it wouldn't negatively target individual users of alternative fuel vehicles. A system that charged by mileage would be more fair than the flat rate permit fees, Diana Leivestad said. Preview - Meetings scheduled for the week of February 6 - 10 Monday, February 6 The Senate will meet at 11 a.m. Agriculture and Rural Development Committee Chair: Sen. Joe Bertram, Sr. 12 noon Room 107 Capitol Agenda: The PCA, DNR, and the Department of Agriculture will discuss department policy and procedures on agriculture-related areas of oversight. Judiciary Committee Chair: Sen. Carol Flynn 12 noon Room 15 Capitol Agenda: S.F. 57-Marty: Statute of limitations for certain human rights act violations. S.F. 7-Cohen: Raising tort liability limits for claims against Metro Council transit operations. S.F. 230-Kelly: Increasing limits of tort liability on governmental units. Crime Prevention Committee Chair: Sen. Allan Spear 2 p.m. Room 15 Capitol Agenda: Report on the Violence Prevention Advisory Task Force. Presentation on a survey of Minnesota prison inmates entitled "Risk and Protective Factors in Adolescence." Legislative Commission on Waste Management Co-Chairs: Sen. Janet Johnson and Rep. Jean Wagenius 6 p.m. Room 10 SOB Agenda: 1995 Waste Management Act amendments, testimony and LCWM recommendations. Legislative Water Commission Chair: Sen. Leonard Price 6 p.m. Room 5 SOB Agenda: Report on the proposed Lewis and Clark Rural Water Project. Continuation of briefings and discussion on 1995 legislative initiatives related to water. LCW administrative items. Tuesday, February 7 Governmental Operations and Veterans Committee Chair: Sen. James Metzen 8 a.m. Room 15 Capitol Agenda: Discussion on veterans issues, Jeffrey Olson, deputy commissioner, MN Department of Veterans' Affairs; Richard Zierdt, executive director, Veterans' Home Board; James Connolly, state commander, VFW; Les Orton, state adjutant/quartermaster, VFW; Lyle Foltz, department adjutant, Americal Legion; Roy Hansen, department adjutant, Disabled American Veterans; and Bob Conner, department adjutant, Military Order of the Purple Heart. Health Care Committee Chair: Sen. Linda Berglin 10 a.m. Room 15 Capitol Agenda: Continuation of discussion and testimony on the governor's health care budget recommendations, Department of Human Services. Higher Education Division Chair: Sen. LeRoy Stumpf 10 a.m. Room 112 Capitol Agenda: Presentation on the budget, Minnesota State Colleges and Universities (MNSCU). Jobs, Energy and Community Development Subcommittee on Energy and Public Utilities Chair: Sen. Janet Johnson 10 a.m. Room 107 Capitol Agenda: Discussion on Conservation Improvement Programs (CIP). Environment and Natural Resources Finance Division Chair: Sen. Steven Morse 12 noon Room 123 Capitol Agenda: Overview of the budget for the Department of Agriculture, Elton Redalen, commissioner, Department of Agriculture; William L. Oemichen, deputy commissioner, Department of Agriculture. Environment and Natural Resources Committee Chair: Sen. Bob Lessard 2 p.m. Room 107 Capitol Agenda: S.F. 102-Morse: LCMR recommendations. Presentation on the PCA strategic plan. Presentation on the U.S./Asia partnership, former Sen. Don Moe; Minnesota DTED. Legislative Oversight Commission on Health Care Access Co-Chairs: Sen. Linda Berglin and Rep. Lee Greenfield 2:30 p.m. Room 10 SOB Agenda: Discussion of a staff position for the commission and a contract for the 24-hour coverage study. Report on small employer coverage and the Robert Wood Johnson survey, Department of Health. Report and overview of the ISN RAPO implementation plan, Department of Health. Overview of standard benefit recommendations, Department of Health. Report on Community Rating Study, Department of Commerce. Finance State Government Division Chair: Sen. Richard Cohen 4 p.m. Room 318 Capitol Agenda: Discussion and explanation of budget books, Department of Finance. Overview of budgets for the Gambling Control Board, Lottery Board, and the Racing Commission. Taxes and Tax Laws Subcommittee on Property Taxes Chair: Sen. John Hottinger 4 p.m. Room 15 Capitol Agenda: Discussion on local government response to the governor's budget proposals. Legislative Commission on Children, Youth and Their Families Chair: Sen. Jane Ranum 6:30 p.m. Room 107 Capitol Agenda: Discussion on proposed changes to the Community Social Services Act, Education Code, Community Health Act, and the Community Corrections Act to encourage collaboration as a means of providing a continuum of services to children and families. Wednesday, February 8 Governmental Operations and Veterans Committee Chair: Sen. James Metzen 8 a.m. Room 15 Capitol Agenda: S.F.23-Hanson: Resolution to the U.S. government regarding the tenth amendment. S.F. 55-Bertram: Compensation to national guard members for service at funerals for veterans. S.F. 134-Metzen: Alternate member of Advisory Council on Gambling. Education Funding Division Chair: Lawrence Pogemiller 10 a.m. Room 112 Capitol Agenda: Governor's budget recommendations. Discussion on working document. Health Care Committee Chair: Sen. Linda Berglin 10 a.m. Room 15 Capitol Agenda: Report on the Medical Assistance Committee, Department of Human Services. S.F. 95-Piper: Board of Medical Practice housekeeping bill. S.F. 242-Berglin: Trusts. S.F. 147-Sams: Variance criteria for developmental achievement centers (DACs). Jobs, Energy and Community Development Committee Chair: Sen. Steven Novak 10 a.m. Room 107 Capitol Agenda: To be announced. Agriculture and Rural Development Committee Chair: Sen. Joe Bertram, Sr. 12 noon Room 107 Capitol Agenda: Discussion on the 1995 federal farm bill, Bob Bergland, former U.S. Secretary of Agriculture - rescheduled from Feb. 1. Commerce and Consumer Protection Committee Chair: Sen. Sam Solon 12 noon Room 112 Capitol Agenda: Overview of the Department of Commerce and issues of interest to the committee, Jim Ulland, commissioner, Department of Commerce. Briefing on Minnesota's options under the new federal interstate banking act. Review of HMO reserves. Piper Jaffray investment issues. Judiciary and Crime Prevention Joint Subcommittee on Privacy Chair: Sen. Jane Ranum and Sen. Harold "Skip" Finn 12 noon Room 15 Capitol Agenda: Continuation of discussion on the Minnesota Health Data Institute, Dale Schaller, director. S.F. 56-Finn: A bill relating to taxation, providing that certain information is reclassifed as public information. S.F. 112-Betzold: Relating to child abuse reporting; records retention; requiring a specified period for records of cases in which no maltreatment is found. Crime Prevention Finance Division Chair: Sen. Tracy Beckman 2 p.m. Room 15 Capitol Agenda: Overview of the budget for the Sentencing Guidelines Commission and the Board of Public Defense. Metropolitan and Local Government Committee Chair: Sen. Jim Vickerman 2 p.m. Room 107 Capitol Agenda: Overview by the Metropolitan Mosquito Control Commission. Finance State Government Division Chair: Sen. Richard Cohen 4 p.m. Room 318 Capitol Agenda: Overview of the budget for the office of Attorney General. Legislative Commission on Minnesota Resources Chair: Rep. Phyllis Kahn 7:30 p.m. Room 5 SOB Agenda: Consideration of a workprogram amendment to allow the use of classified part-time staff extensions for DNR park and trail workprograms. Consideration of a workprogram amendment for additional allocations from Critical Habitat Match, Jay Rendall, DNR. Review of the DNR bonding workprogram update, Bill Becker, DNR. Status of LCMR appropriation recommendations, LCMR staff. Thursday, February 9 The Senate will meet at 9 a.m. Health Care and Family Services Finance Division Chair: Sen. Don Samuelson 10 a.m. Room 15 Capitol Agenda: Continuation of budget reviews started at the Feb. 2 meeting - if necessary. Performance review, Department of Human Services. Overview of the governor's budget, Department of Human Services. Higher Education Division Chair: Sen. LeRoy Stumpf 10 a.m. Room 112 Capitol Agenda: Presentation on the budget, University of Minnesota. Jobs, Energy and Community Development Subcommittee on Employment Chair: Sen. Kevin Chandler 10 a.m. Room 107 Capitol Agenda: Workers' compensation. Crime Prevention Committee Chair: Sen. Allan Spear 2 p.m. Room 15 Capitol Agenda: S.F. 160-Reichgott Junge: Work release for mothers of special needs children. S.F. 163-Piper: Crime Victim and Witness Advisory Council extension. Progress report on implementation of the 1994 "Grant Hussey" legislation. Finance State Government Division Chair: Sen. Richard Cohen 4 p.m. Room 318 Capitol Agenda: Overview of the budget for the offices of Governor and Secretary of State. Health Care and Family Services Finance Division Chair: Sen. Don Samuelson 4 p.m. Room 112 Capitol Agenda: Continuation of the budget overview, Department of Human Services. Friday, February 10 Transportation and Public Transit Finance Division Chair: Sen. Keith Langseth 8 a.m. Room 112 Capitol Agenda: Overview of the budget for the Department of Public Safety. Legislative Commission to Review Administrative Rules Chair: Sen. John Hottinger 1:30 p.m. Room 15 Capitol Agenda: Public hearing - Administrative penalty orders for asbestos removal violations, Polution Control Agency. Staff presentation and discussion on the LCRAR budget for 1995-96. Staff presentation and discussion on the LCRAR biennial report.  Compiled by: Senate Publications Room G95, State Office Building St. Paul, MN 55155 (612) 296-0259 TDD 296-0250 ***Rough edit of February 3, 1995***