BRIEFLY The Minnesota Senate Week in Review April 13, 1995 Tax bill passed The omnibus tax proposal bill won the approval of the Senate, 44-17, on Weds., Apr. 12. The Senate took up H.F. 602, amending it to incorporate the contents of the Senate's omnibus tax proposal. Sen. Douglas Johnson (DFL-Cook), the author of the Senate bill, said the proposal contains no increases in sales tax and freezes property taxes for 1996 at the 1995 levels. "This bill continues our efforts to not allow any sales tax increases this year," he said. "We're also telling the property owners of this state that they are not going to pay one dime more [in property taxes] in 1996 than they pay in 1995." An amendment removing the property tax freeze provisions from the bill was offered by Sen. William Belanger (IR- Bloomington). "The public is not buying into this," he said. "They see this as just a gimmick." But the bill's author defended the freeze. "When we say we're not going to raise income taxes or sales taxes, people believe that's not a gimmick," Johnson said. "When we say we want to prevent $270 million in property tax increases next year, that is no gimmick either." The Belanger amendment was defeated, 29-37. Sen. Gen Olson (IR-Minnetrista) presented an amendment to give each person a $31 tax credit on their 1995 income tax return. The proposal provides a $62 credit for married couples who file a joint tax return. Olson said the funding to support the tax credit would be provided by $91 million in additional revenue the governor has announced was available. "This tax credit is a chance for us to put something back in the pockets of the taxpayers," she said. Sen. Ember Reichgott Junge (DFL-New Hope) proposed an amendment to the Olson proposal, replacing it with language to set the property tax recognition shift applied to local school districts at 44 percent. Reichgott Junge said the additional $91 million offers an opportunity for the Legislature to ease the impact of the shift on local school districts. Setting the recognition shift at 44 percent requires an additional $66 million, she said, "This is a chance for us to give something back to our schools." Olson opposed the change. She said the amendment was not inconsistent with other options intended to give taxpayer a break. "But there has been continuous movement, up and down, in the shift the last several years," she said. "All we are doing is putting that money back in the bank and use it again the next time we would raise (the shift percentage)." Reichgott Junge's proposal to the Olson amendment was adopted, 54-8, and the provision was incorporated into the tax bill on a voice vote. A number of other amendments were offered for the Senate's consideration. Sen. James Metzen (DFL-South St. Paul) proposed to reduce the property tax rate applied to seasonal and recreational properties with an assessed value of under $72,000. Under the amendment the tax rate for assessed against those properties is reduced from 2.0 percent to 1.8 percent, effective for taxes payable in 1997. The proposal lowers the amount of property tax revenue generated from seasonal properties by about $9 million a year, Metzen said. The funds lost in the rate reduction will be made up by cuts in other areas, he said. "The effects of this reduction will not be shifted onto other property taxes," Metzen said. Sen. Linda Runbeck (IR-Circle Pines), questioned the delay and offered an amendment calling for the reduction to take effect in 1996. Her proposal was narrowly rejected, 31-33. The Metzen amendment was then adopted on a 43-22 vote. Members also rejected an amedment, offered by Sen. Sheila Kiscaden (IR-Rochester), to increase the cigarette tax by 25 cents per pack. The amendment also decreases the health care provider tax from two percent to one percent. The amendment was rejected on a 44-17 roll call vote. Members adopted an amendment authorizing $1 million to be used for the state wide telecommunications network. According to the amendment's author, Sen. Lawrence Pogemiller (DFL-Mpls.), money for the amendment will be taken from the appropriation for the Board of Government Innovation and Cooperation. Members rejected 12 additional amendments before granting the bill final passage. Workers comp bill advances The Commerce and Consumer Protection Committee heard and approved S.F. 1020, a workers compensation bill, at the Thurs., Apr. 6, meeting. The bill, authored by Sen. Steven Novak (DFL-New Brighton), permits small employers to form groups and self-insure with a mutual group. The measure also requires a 10 percent discount on workers compensation premiums for small employers who have not had an accident that resulted in a wage replacement benefit in the past three years. The bill allows for the creation of major workers' compensation procedures to be established through collective bargaining. It also changes workers comp benefits, replacing the current two-tier system with a single permanent partial reimbursements system. The bill limits temporary total benefits to 100 weeks, with a possible extension if the employee is medically disabled due to the injury. It also limits temporary partial benefits to 350 weeks. The measure also returns Minnesota to the prior-approval system of workers comp insurance rate regulation, providing that one statewide rate schedule for each job classification replaces competitive rating, and requires that rates proposed by the rating association must be approved by the commissioner of commerce before they can be used. The committee, chaired by Sen. Sam Solon (DFL-Duluth), approved S.F. 1020 and sent it to the Finance Committee. Transportation bill passed On a 49-17 vote, the Senate passed a $2.5 billion omnibus transportation funding package during the Weds., Apr. 12, floor session. Authored by Sen. Keith Langseth (DFL-Glyndon), S.F. 1536 contains $2.3 billion for the operations of the Dept. of Transportation (MnDOT) in FY 1996 and FY 1997. Of that appropriation, $1.3 billion is designated for state road construction and $754 million is earmarked for aid for county and municipal roads in the next biennium. The measure also provides $159 million to the Dept. of Public Safety for the next two fiscal years, and $69 million in support of the transit operations of the Metropolitan Council. Several members questioned the transit appropriations. Sen. Carol Flynn (DFL-Mpls.) said the Met Council faces a significant shortfall in the near future that is not addressed in the bill. Sen. Florian Chmielewski (DFL-Sturgeon Lake) said the amount of funding needed to maintain the state's highways is also lacking in the proposal. "Transit is in nearly as bad of shape as the roads of the state," he said. Langseth said the bill attempts to balance both needs given the fiscal constraints. "There is nothing new in here for highways from what there was two years ago nor is there an increase in transit," he said. Sen. Jane Ranum (DFL-Mpls.) proposed an amendment requiring MnDOT to submit its plans for a congestion pricing demonstration project to the Met Council once the plans are developed. The amendment also calls on the council to hold a public hearing on the plan and give its approval before the project can proceed. Sen. Terry Johnston (IR-Prior Lake) opposed the amendment, saying it gives more power to the Met Council and could delay the project. But Ranum said she was concerned about the power that has been given to MnDOT and that the council should be involved because the project would be conducted on interstates in the Metro Area. The amendment was approved on a 41-20 vote. The members also approved an amendment on a voice vote, offered by Sen. Dan Stevens (IR-Mora). The Stevens amendment calls on the Legislative Auditor to evaluate the cost- effectiveness of the standards, practices and procedures used by MnDOT in planning construction projects. Committee Capsule Commerce and Consumer Protection Tobacco sales regulation heard In addition to taking action on the workers comp bill, the Commerce and Consumer Protection Committee, chaired by Sen. Sam Solon (DFL-Duluth), also considered two bills aimed at strengthening enforcement of the state's law prohibiting the sale of tobacco to minors. First, the Senators heard S.F. 558, sponsored by Sen. Dallas Sams (DFL-Staples). The bill provides that a town board or governing body of a city may license and regulate the retail sale of tobacco and establish a license fee. If the town or city does not regulate it, the county board must do so. The bill establishes a progressive system of fines for selling tobacco to minors, and discounts the fines for businesses that have an employee training program on not selling to minors. Under the bill, the penalty for a fourth offense is a 7-day suspension of authority to sell tobacco. The measure also imposes maximum fines of $50 each for the employee who sells tobacco to a minor and the minor who purchases it. In addition, the bill requires the cities and counties to conduct annual, random, unannounced inspections to test dealer compliance. The committee then heard S.F. 703, sponsored by Sen. Ember Reichgott Junge (DFL-New Hope). The measure also gives local governments the authority to license tobacco sales. The inspection portion of the bill requires the local governments to conduct an unannounced compliance check of each location of a licensed tobacco dealer at least once yearly. The bill imposes a mandatory penalty of $250 or a 7-day suspension of tobacco selling authority for the first offense by a retailer that sells tobacco to minors. The penalty for a second offense is a $500 penalty or 7-day suspension, and for a third violation in a 24- month period, the bill requires a 3-month suspension of authority to sell tobacco. The bill also provides the opportunity for a hearing before a suspension is imposed. It also requires a mandatory $50 fine for the individual who sells tobacco to a minor. Sen. John Hottinger (DFL-Mankato), offered an amendment replacing the Sams bill with the language of Reichgott Junge's bill. The amendment failed on a 7-8 roll call vote. The committee then turned back to S.F. 558 as drafted. Members adopted four amendments before approving the measure. The first, offered by Sen. Len Price (DFL-Woodbury), requires employers to maintain a written record of training for each employee and make it available to inspectors on demand. An amendment offered by Sen. Edward Oliver (IR-Deephaven), specifies that the bill does not preempt local ordinances that are more restrictive. An amendment offered by Sen. Kevin Chandler (DFL- White Bear Lake), prohibits tobacco companies from providing display allowances to retailers. Under the amendment, retailers may still display tobacco products, but tobacco companies cannot pay them to do so. An amendment offered by Sen. John Hottinger (DFL-Mankato), requires that for a fourth offense, the penalty is a mandatory suspension of authority to sell tobacco, not to exceed 7 days. S.F. 558 now goes to the Senate floor. The panel next heard S.F. 1590, sponsored by Sen. Pat Piper (DFL-Austin), requiring health plans to pay for treatment of breast cancer with high-dose chemotherapy and autologous bone marrow transplantation. Piper said that currently, women whose doctors prescribe the treatment must take their health insurer to court to argue for the coverage, and that most people who seek the treatment are so severely ill that they don't have time to wage a court battle. Members voted to approve S.F. 1590 and send it to the Senate floor. The Senators also approved S.F. 1056, a bill allowing cities or towns to create trust or escrow accounts for proceeds from losses to insured real property occurring from fire or explosion. Under the measure, sponsored by Sen. Carl Kroening (DFL-Mpls.), the cities or towns may use escrowed funds to repair or demolish damaged or destroyed structures if the owners of the structures refuse to do so. When a loss occurs due to fire or explosion in a municipality that has elected to apply the act, the insurer must withhold 15 percent of the actual cash value of the insured real property or 15 percent of the final settlement, whichever is less, for deposit in the municipality's escrow account. The money is released to the property owner after the structure is repaired, replaced or removed, except to the extent that the escrowed amount is needed to complete the work. The money is also released if the property owner consents to payment of funds directly to the contractor doing the work. The bill was approved and sent to the full Senate. S.F. 1337, sponsored by Hottinger, also received the panel's approval. The bill prohibits the sale of drugs, medical devices, cosmetics, and food for children under two years of age by transient sales people. S.F. 1514, sponsored by Sen. Jerry Janezich (DFL-Chisholm), requires disclosures prior to the replacement of an existing annuity or life insurance contract. Under the bill, insurers must notify policyholders when a policy is to be replaced if the existing policy is to be lapsed, forfeited, surrendered, converted to reduced paid-up insurance, or reduced in value or benefits. The bill was approved and sent to the Senate floor. S.F. 1647, sponsored by Solon, permits the sale of long term care policies that have longer waiting periods before benefits are paid. Under current law, the waiting period before benefits are paid is limited to 90 calendar days. The bill extends this time to 24 months. The bill was approved and sent to the Senate floor. Crime Prevention "Minibus" bills advance The Crime Prevention Committee considered two bills made up of two larger bills and a number of so-called "rider bills." The committee discussed the provisions extensively at meetings held Thurs., Apr. 6. Chair Sen. Allan Spear (DFL-Mpls.) referred to the bills as "minibus" bills, as opposed to one large omnibus committee bill. Sen. Ellen Anderson (DFL-St. Paul) offered a bill as the vehcile for one of the compilation of provisions. S.F. 1564 expands the definitions of first- and second-degree manslaughter to include causing the death of another while committing malicious punishment of a child, or neglect or endangerment of a child. Six amendments, several of which were bills, were added to Anderson's bill. An author's amendment received considerable debate before being amended and approved by the committee. Anderson offered a provision that would have removed language exempting relatives or spouses from a felony offense for knowingly receiving profits from a prostitute. But some division members did not believe blood relatives or spouses should be included in the statute and rejected the amendment. Sen. Gene Merriam (DFL-Coon Rapids) then offered another amendment that clarifies the provision under certain circumstances. Another author's amendment directs a peace officer to forward information to the Health Department upon receiving a report of a wound caused by a firearm. Anderson also successfully offered an amendment to allow the sale of electronic incapacitation devices under certain provisions; the amendment also incorporated penalties for illegal use of the devices. The committee also adopted an amendment offered by Sen. Warren Limmer (IR-Maple Grove) providing monetary restitution to a victim's family or a victim assistance or community program. The bill, as amended, was advanced to the full Senate. Members also approved and advanced another bill with several attached amendments. S.F. 882, authored by Sen. Jane Ranum (DFL- Mpls.), makes several changes to laws dealing with patterned sex offenders. Among its provisions is a section allowing a maximum imprisonment penalty of 40 years if a jury or judge finds that a predatory offense was sexually motivated. The bill also requires an annual training course for prosecutors, public defenders and peace officers on the sentencing laws applicable to sex offenders. Limmer successfully offered an amendment that increases the penalty for indecent exposure from a misdemeanor to a gross misdemeanor if the act was committed in the presence of a person under 16 years. Another Limmer amendment expands the crime prohibiting surreptitious intrusions into a hotel sleeping room or tanning booth. Finally, the committee adopted an amendment, offered by Merriam, allowing persons who have served as a Minnesota peace officer, meet the current peace officer firearm training requirements and serve as an investigator in a felony prosecution office to carry a firearm. The amended bill advances to the Senate floor. Bills considered Members of the Crime Prevention Finance Division met again Thurs., Apr. 6, to continue the process of considering bills for inclusion in the omnibus appropriations bill. The division, chaired by Sen. Tracy Beckman (DFL-Bricelyn), is hearing bills and testimony but not taking formal action on any of the measures. S.F. 556, authored by Sen. Thomas Neuville (IR-Northfield), requires deductions from inmate wages paid by private industry to be the same as for deductions from inmate wages paid by the Dept. of Corrections. S.F. 1510, authored by Beckman, authorizes the commissioner of corrections to set about the process of establishing a minimum security correctional facility for men at Camp Ripley. S.F. 776, sponsored by Sen. Don Kramer (IR-Brooklyn Center), authorizes the commissioner of corrections to deduct room and board charges or other costs of confinement from inmates' salaries. Members amended the bill to reorder the priority of deductions made from inmates' wages. S.F. 1341, authored by Sen. Linda Runbeck (IR-Circle Pines), provides for the expansion of intervention services provided through the Institute of Child and Adolescent Sexual Health. The services are aimed at early intervention with children who exhibit signs of sexually aggressive behavior and who do not currently receive services. S.F. 758, carried by Sen. Jane Ranum (DFL-Mpls.), authorizes the Bureau of Criminal Apprehension to charge and collect fees for background checks run for reasons other than criminal justice. The bill also specifies that the fees are to be used to maintain and improve the quality of the criminal record system. Members also heard a proposal, offered by Sen. Allan Spear (DFL-Mpls.), for an appropriation to the Illusion Theatre for the development of plays, workshops and educational resources promoting increased awareness and prevention of sexual abuse, violence and sexual harassment. A proposal for privatizing the juvenile corrections system sparked considerable discussion. S.F. 1515, authored by Sen. Randy Kelly (DFL-St. Paul), calls for the transfer, by July 1, 1996, of all juveniles confined at Red Wing and Sauk Centre to either privately owned and operated residential facilities or, upon request of the county, back to the county originally having jurisdiction over the juvenile. Kelly said that the high recidivism rate of the most serious juvenile offenders has convinced him that the state must try a new approach to the problem of juvenile corrections. Privatization reviewed The Crime Prevention Finance Division examined several measures intended for the omnibus crime prevention bill at a meeting Fri., Apr. 7. Among those reviewed was S.F. 1515, a bill to privatize juvenile correction systems. Carried by Sen. Randy Kelly (DFL-St. Paul), the measure requires that juveniles at Red Wing and Sauk Centre be transferred to private residential treatment centers, or returned to the counties originally having jurisdiction over them, by July 1, 1996. Commissioner of Corrections Frank Wood opposed dismantling the two programs, calling the move "premature." Although acknowledging that privatization is an option, he called for thoughtful analysis of the situation. "We may end up closing Red Wing and Sauk Centre, and redirecting those resources," he said, "but a predisposition to privatization is wrong." Members questioned the cost effectiveness of current programs. Sen. Gary Laidig (IR-Stillwater) asked, "but could we do something different with less?" Sen. Allen Spear (DFL-Mpls.) pointed to the high rate of recidivism, 69 percent, and said, "if we can't do any better than this, why are we spending so much money on it? Maybe we should deploy our resources in different areas?" S.F. 1460, authored by Sen. Richard Cohen (DFL-St. Paul), establishes a Ramsey County program to identify and prosecute the most serious juvenile offenders. The one time appropriation is from the general fund and available until June 30, 1997. John Wodele, a deputy attorney with Ramsey County, testified in support of the measure. "We have to target our resources," Wodele said. "We want to focus on the guns and the gangs. We know that just a few individuals commit most of the crimes." Melinda Ellidge, a Ramsey County prosecutor, voiced strong support for the bill. "To have a specific unit track the most dangerous offenders would be extremely helpful," Ellidge said. She described the coordinated effort as a "preventative approach." Chair of the division, Sen. Tracy Beckman (DFL-Bricelyn) raised concerns about flushing offenders out of the Metro Area and into the rural regions. Wodele said that the likelihood of that occurring is very slim. "Gangs need a city network to operate," he said. Cohen told members that his bill is modeled after a Chicago program aimed at eradicating gangs. Local experts say Chicago's program has been highly effective, to the detriment of the Twin Cities, evidenced by growth of gang activity in the Metro Area. S.F. 1286, sponsored by Kelly, appropriates $4.3 million annually for peace officer standards and training. Besides changing the composition of the Peace Officer Standards and Training Board to include two members actively employed in peace officer education, the bill also requires Metropolitan State University and Minneapolis Community College to provide core law enforcement courses in an accelerated time period for Metro Area students. A bill establishing a child abuse helpline and a training program for interviewers of abused children, S.F. 650, was also considered for the omnibus crime bill. Authored by Sen. Ember Reichgott Junge (DFL-New Hope), the measure mandates the commissioner of human services to oversee both programs. Reichgott Junge said that there is no single source of information and advice for victims of child abuse. She pointed out that the designated person to handle such matters, particularly in rural regions, is frequently a source that victims or their families would hesitate to seek out. The statewide, toll-free helpline would be staffed 24 hours by professionals able to answer questions concerning the physical and sexual abuse of children. An amendment, offered by Sen. Roy Terwilliger (IR-Edina), concerning data access by law enforcement agencies, was adopted by the division. Under Terwilliger's amendment, the criminal justice policy group is responsible for developing the database plan, rather than the Bureau of Criminal Apprehension and the Dept. of Public Safety. Two bills, both authored by Spear, were heard by the division. S.F. 1205 mandates the Nonfelony Enforcement Advisory Committee to analyze penalty levels for low-level felony crimes, and makes a one-time appropriation for staffing the NEAC. S.F. 1153 earmarks monies for four judgeships, vetoed by the governor last year, while creating and funding five new positions. The measure also authorizes conversion of a vacant referee position into a judgeship. Members also considered a bill, S.F. 1054, authored by Sen. Jane Ranum (DFL-Mpls.), providing for year round school for juveniles in correctional facilities. The proposal, part of a comprehensive juvenile justice measure, sets forth the funding mechanism for the education component, requires the state to pay the costs of some of the educational programs, and establishes youth service centers and pilot projects. Members tried to get a handle on the actual cost of the proposal, but the bill did not come with a fiscal note, although Ranum said she had requested one. The measure was laid aside. Senators also considered a proposal, sponsored by Sen. Arlene Lesewski (IR-Marshall), authorizing interactive video arraignments. The bill, S.F. 287, was laid over for consideration for the omnibus crime finance bill. S.F. 1315, authored by Beckman, was also considered. The measure establishes the Bureau of Criminal Apprehension as an independent agency of the executive branch. Currently, the BCA is part of the Dept. of Public Safety. The proposal also transfers the criminal justice information system unit to the BCA. S.F. 1613, sponsored by Sen. Thomas Neuville (IR-Northfield), authorizes the creation of a nonprofit corporation to manage correctional work programs. The measure outlines the organization, duties and authority of the corporation and authorizes the sale of corporation goods and services to governmental entities and private enterprises. S.F. 1650, sponsored by Beckman, suspends the implementation of the extended jurisdiction juvenile system for one year. A proposal to revamp the sentencing guidelines was also considered. S.F. 470, authored by Sen. Gary Laidig (IR- Stillwater), implements the recommendations of the Sentencing Guidelines Commission for changes to the guidelines and the guidelines grid. Under the proposal, prison sentences are reduced for property and drug crimes while the sentences for selected crimes against persons are increased. Members did not take any action to advance the bills, but rather will consider the measures for inclusion in the omnibus proposal. Allocation process starts The Crime Prevention Finance Division began the process of making allocations at the Mon., Apr. 10, hearing. The panel, chaired by Sen. Tracy Beckman (DFL-Bricelyn), reviewed a spread sheet with preliminary budget allocations. Under the proposal, the appropriations for areas under the division's jurisdiction total $855.9 million. The total is $29.3 million under the governor's recommendation. The proposal provides funding for the courts, the Dept. of Public Safety, the Private Detective Board, the Peace Officer Standards and Training Board, public defenders, the Dept. of Corrections, the Corrections Ombudsman, and the Sentencing Guidelines Commission. The proposal also removes the Bureau of Criminal Apprehension from the Dept. of Public Safety and makes the BCA a separate agency. In addition, the proposal provides funding for a number of bills that had been considered by the division. S.F. 624, authored by Sen. Don Betzold (DFL-Fridley), provides for an appropriation to the Northwest Community Law Enforcement Project at North Hennepin Community College. S.F. 413, sponsored by Sen. Janet Johnson (DFL-North Branch), establishes a pilot program to test the effectiveness of electronic alcohol monitoring of DWI offenders. S.F. 549, carried by Beckman, provides funding for Drug Abuse Resistance Education (DARE) programs. S.F. 911, authored by Sen. John Marty (DFL-Roseville), alters provisions dealing with DWI license plate revocation. S.F. 434, sponsored by Sen. Randy Kelly (DFL-St. Paul), clarifies the scope of the witness and victim protection fund. S.F. 946, carried by Sen. Ellen Anderson (DFL-St. Paul), provides for a study relating to youth centers. S.F. 778, carried by Kelly, changes provisions relating to reimbursement for bullet proof vests. S.F. 1341, authored by Sen. Linda Runbeck (IR-Circle Pines), provides for an appropriation for the Child Sexual Health Institute for early intervention services for children exhibiting sexually aggressive behavior. S.F. 1460, authored by Sen. Richard Cohen (DFL-St. Paul), authorizes Ramsey County to establish a juvenile violence prevention task force. S.F. 1515, sponsored by Kelly, provides for a task force to study the privatization of the juvenile facilities at Red Wing and Sauk Centre. S.F. 1153, authored by Sen. Allan Spear (DFL- Mpls.), provides funding for seven new judgeships. S.F. 650, carried by Sen. Ember Reichgott Junge (DFL-New Hope), requires information to be gathered from crime victims for presentation at bail hearings and providing for a child abuse telephone helpline. S.F. 1205, carried by Spear, expands the duties of the Nonfelony Enforcement Advisory Committee. S.F. 435, authored by Kelly, expands the crime of witness tampering and provides for victim grants. S.F. 359, sponsored by Sen. James Metzen (DFL-St. Paul), provides for state reimbursement for bomb squads. S.F. 1286, carried by Kelly, makes changes in provisions relating to the Peace Office Standards and Training Board. S.F. 1054, sponsored by Sen. Jane Ranum (DFL-Mpls.), makes numerous changes in provisions relating to the juvenile justice system. S.F. 418, carried by Kelly, is the Safe Schools initiative and authorizes special projects and programs to combat truancy and provides for other crime prevention efforts in the schools. Finally, a proposal, sponsored by Spear, for an appropriation for the Illusion Theatre to develop anti-violence programs, is also included in the division's omnibus proposal. The total appropriation for the separate bills is $9.45 million. Several items in the proposal sparked division discussion. Sen. David Knutson (IR-Burnsville) questioned the separation of the BCA from the Dept. of Public Safety. Beckman said that the intention of the split is to increase productivity and improve morale in the agency. Kelly added that for all practical purposes the BCA has been functioning as a stand-alone agency for several years. Spear said that he was concerned about reductions in the increase for the public defenders. He pointed out that much of the increased burden placed upon the public defenders system is the result of legislation passed last year. "We need to fund last year's initiatives before taking on new ones," Spear said. Members also discussed the appropriations earmarked for the Dept. of Corrections is some detail. Under the proposal, no appropriations are made available for expansion at the juvenile facilities at Red Wing and Sauk Centre, nor are other program increases funded to the full extent recommended by the governor. Funding revamped Members of the Crime Prevention Finance Division met in the afternoon Tues., Apr. 11, to consider a revised funding proposal for the omnibus bill. The new proposal totals $860.2 million and is $25 million less than the governor's recommendations. The revised spread sheet restores funding for several programs. Under the revised proposal, an addition $500,000 is earmarked for legal aid, three positions are provided to aid the transition of the Bureau of Criminal Apprehension into an independent agency, a $4.6 million increase for public defenders recommended by the governor is restored, and a 3 percent cut to the base, annualization and jail rental categories of the Dept. of Corrections budget is implemented. The new proposal also decreases the funding for the Safe Schools initiative by $1 million. An earlier version of the proposal did not include the 3 percent base cut for the Dept. of Corrections and had, instead, decreased funding for facility caseload changes by $6.5 million. The new version leaves the funding for the facility caseload changes and allows the department to make the necessary reductions. In addition, the previous version did not fund the increase for the public defenders. However, Sen. Allan Spear argued that the division needed to fund the increase because of the increased burden placed on public defenders as a result of last year's legislation. Spear said that the new proposal does a good job of addressing the concerns of the committee members about various portions of the budget. Discussion at the afternoon hearing centered primarily on the proposal to separate the Bureau of Criminal Apprehension from the Dept. of Public Safety. Commissioner Michael Jordan, of the Dept. of Public Safety, testified against the proposal to separate the BCA. Jordan said that the separation flies in the face of the move to consolidate and streamline state government in order to improve efficiency. Beckman countered that the initiative is an attempt to remove politics from the agency and allow the BCA to continue to provide quality services. Sen. Gary Laidig (IR-Stillwater) questioned the lack of increased funding for BCA lab improvements. Laidig asked if perhaps some of the funding for the Safe School initiative couldn't be more properly located in the education funding budget. Spear responded that the division has traditionally taken a broad approach to crime prevention in funding programs such as Head Start and Success by Six. Spear said, "We have taken the position that getting a child started in life in a healthy way is the most successful crime prevention effort we can make." Members approved a motion to adopted the funding proposal outlined in the spreadsheet. Education PSEO changes approved Proposals changing the Post-Secondary Enrollment Options (PSEO) program were heard and approved by Education Funding Division, chaired by Sen. Lawrence Pogemiller (DFL-Mpls.), Weds. evening, Apr. 5. S.F. 1197 expands the eligibility for PSEO, allowing high school students enrolled at a non-public school to participate in the program. Sen. Tom Neuville (IR-Northfield), the bill's author, said allowing non-public school students to participate in the program is a matter of fairness. But the bill drew opposition from education groups who argued the proposal will divert money away from the public school system. The proposal was approved and will be incorporated into the omnibus funding bill. In response to concerns that students may be using PSEO to take easier courses than they could take at their own high school, the division also approved and added S.F. 1509, presented by Sen. Don Samuelson (DFL-Brainerd), to the omnibus bill. Under Samuelson's proposal, students are first required to complete the courses of an Advanced Placement or International Baccalaureate Program, if those programs are provided by the school district, before they participate in PSEO. Before approving the bill, the division considered two amendments. A requirement in the bill that students pay for the textbooks used in advanced secondary school programs was struck on a motion by Sen. Ember Reichgott Junge (DFL-New Hope). An amendment offered by Sen. Jerry Janezich (DFL-Chisholm), to place PSEO tuition on a sliding fee scale was rejected. The division also approved a bill setting up a program that allow Metropolitan Area districts to run all-day kindergarten. Under S.F. 1359, authored by Sen. Jane Ranum (DFL-Mpls.), Metro Area districts with high numbers of students that qualify for free or reduced lunches could qualify for grants to extend the length of the kindergarten program. The bill provides the $13 million needed for the project by applying an assessment on businesses operating at the Minneapolis-St. Paul International Airport that currently pay no municipal or school district property taxes. Sen. Steve Murphy (DFL-Red Wing) presented S.F. 1497, exempting the State High School League from paying sales tax on tickets to interscholastic tournaments. The bill requires that the amounts equal to what the tax generates to be set aside for support activities for students with disabilities or to expand activities for girls. The measure was approved and sent to the full Education Committee. The division approved and incorporated a number of other bills into the omnibus funding package. S.F. 142, presented by Sen. Dean Johnson (IR-Willmar), allows the school districts in Danube, Renville, and Belview, and another non-public school to enter into enhanced pairing agreements to discontinue one or more grades. Also approved was S.F. 1449, authored by Sen. Jim Vickerman (DFL-Tracy). The bill extends the availability of a $100,000 grant given last year to a group of Southwestern school districts that are planning for combination. S.F. 584, carried by Sen. Don Betzold (DFL-Fridley), allows the Osseo School District to levy up to $500,000 for instructional services for at-risk students. Two other proposals by Betzold, S.F. 585 and S.F. 586, were set aside. S.F. 585 continues the Osseo district's levy authority used to support programs for at-risk students and establishes a low-income concentration grant program. S.F. 586 provides a low-income concentration aid program. A proposal to create a homework help line was set aside for further consideration. S.F. 1443, presented by Sen. Kenric Scheevel (IR-Preston), sets an annual appropriation of $125,000 to establish the Minnesota Homework Helpline. The bill also calls for the appropriation to be matched by private funds. Scheevel's bill, S.F. 1450, to allow a district to hold a referendum to fund extra-curricular activities, was rejected by the division. Prior to the division's meeting, the full Education Committee, co-chaired by Pogemiller and Sen. LeRoy Stumpf (DFL- Thief River Falls), met briefly and approved S.F. 547, sponsored by Sen. Steven Morse (DFL-Dakota). The bill eliminates the Office of Environmental Education in the Dept. of Education and creates the Environmental Education Council. The council is to be housed in the Office of Strategic and Long Range Planning. The bill was re-referred to the Governmental Operations and Veterans Committee. Year-round school bills heard Several bills requesting grants to support year-round school operations were considered by the Education Funding Division, chaired by Sen. Lawrence Pogemiller (DFL-Mpls.), on Thurs. evening, Apr. 6. The division heard five proposals, each providing the means for school districts to operate throughout the year. Sen. Leonard Price (DFL-Woodbury) presented two bills offering revenue for year-round school programs. S.F. 1462 provides year-round school pilot program grants for both operations and facilities. S.F. 1375 establishes a flexible learning year revenue program and authorizes the sale of up to $5 million in bonds to support the program. S.F. 1483, authored by Sen. Janet Johnson (DFL-North Branch), provides an $83,000 grant to the Cambridge School District for a pilot year-round school program. Another proposal, S.F. 1643 carried by Sen. Kevin Chandler (DFL-White Bear Lake), creates the pilot Extend Program and includes a $750,000 appropriation for a grant to the White Bear Lake district under the program. All four proposals were discussed and then set aside for further consideration as part of the omnibus funding bill. Other bills aimed at improving the educational performance of targeted groups were considered. S.F. 1595, presented by Sen. Sandra Pappas (DFL-St. Paul), offers grants to provide academic and culturally-related programs in districts with a student population of more than 10 percent Mexican-American. The division approved the proposal as part of the omnibus bill. S.F. 924, also offered by Pappas, allows a $500,000 appropriation designated in FY 1995 for the Teachers of Color program to carry forward into the next fiscal year. The measure was adopted and added to the omnibus bill. Also approved for further consideration in the omnibus package was S.F. 1203. The bill, sponsored by Sen. Jane Krentz (DFL-May Township), calls for appropriations to upgrade the skills of and certify school interpreters. Pappas and Sen. Ellen Anderson (DFL-St. Paul) both offered bills calling for additional funds in support of the Adult Basic Education and Adult Graduation Aid programs. Pappas' bill, S.F. 1161, did not specify an a appropriation for either program. Anderson's proposal designated a biennial appropriation of $8.1 million in Adult Graduation Aid. The Pappas bill was accepted for further consideration. Two bills clarifying the High School Graduation Incentives program were also processed by the division. Under the program, students, who are at least age 16, may transfer to a private school if a public district has a contract with the private school for educational services. S.F. 1612, authored by Sen. Jerry Janezich (DFL-Chisholm), allows students of all ages to transfer to a private school. The bill also requires that 88 percent of the general education funding a district would receive for each student be given to the private school. The private school may also appeal to the State Board of Education when a school district rejects a contract proposal. S.F. 1294, offered by Pappas, transfers 88 percent of the education revenue to a private school that accepts students from a public system under the graduation incentives program. The division approved S.F. 1294, and adopted a portion of S.F. 1612, allowing schools to make an appeal to the State Board. The division also set aside S.F. 1095 for further consideration. The bill, presented by Sen. Jane Ranum (DFL- Mpls.), provides funds for school breakfast and lunch programs. Appropriation bill considered Sen. LeRoy Stumpf (DFL-Thief River Falls), chair of the Higher Education Funding Division, gave division and audience members a pep-talk recently regarding the division's task to develop an appropriation bill. At the Thurs., Apr. 6, meeting, Stumpf reiterated the grim realities and challenges facing higher education, but encouraged state leaders to work together to get through the coming biennia. Wrapping up its week of meetings, the division heard presentations on two bills to be considered for inclusion in the division's omnibus bill. S.F. 1225, authored by Sen. Sam Solon (DFL-Duluth), establishes a new nursing grant program under the Higher Education Coordinating Board. The new program consolidates several small grants available now. According to Susan Stout of the Minnesota Nursing Association, the program provides a dollar- to-dollar match with $50,000 in state funds. Currently, the state provides some $120,000 in small nursing grants, she said. Another bill, S.F. 1295, authorizes the Bureau of Mediation Services to transfer staff between bargaining units of the community colleges and the technical colleges. The bill, carried by Solon, stipulates a transfer can only occur if all parties agree to do so. Some Senators expressed concern about the cost implications of the provision, and representatives from Minnesota State Colleges and Universities said they needed more time to consider possible consequences. Stumpf said the provision should be looked at closely and then, repeating a theme heard throughout the session, called for a cooperative effort among all groups within higher education. Because of the "dramatic" cuts facing all aspects of the state's budget, everything in the higher education program is up for discussion, he said. Leaders must consider changes in contract bargaining, find efficiencies in programs, and examine administration levels, all with the students in mind, Stumpf said. "Keeping morale up out there is going to be difficult," he said. "We'll need very good cooperation among all parties to make it through the next couple years." Certificate program defeated A bill to establish an educational certificate aid program was rejected by the members of the Education Funding Division, chaired by Sen. Lawrence Pogemiller (DFL-Mpls.), Fri., Apr. 7. S.F. 1377 creates the certificate program for students of parents or guardians whose income is at or below 185 percent of the federal poverty guideline. Sponsored by Sen. Tom Neuville (IR-Northfield), the bill requires the Dept. of Education to provide qualifying parents or guardians with a certificate equal in amount to 80 percent of the general education formula allowance. Those certificates may then be applied toward a student's attendance at the public or private school of their choosing. Supporters of the bill, including private school officials and parents, argued the proposal serves those students who have the greatest needs to be successful and who should be allowed to make choices they may otherwise not have. Representatives of the various public school groups opposed the bill, saying the program would divert funds from the system and that using public funds to support private schools raises a question of constitutionality. The measure fell on a 3-10 roll call vote. The members also reviewed a number of other bills and voted to include two directly into the omnibus funding bill. S.F. 1625, presented by Sen. Dallas Sams (DFL-Staples), allows the Detroit Lakes School District to make a fund transfer. S.F. 1581, offered by Neuville, modifies a 1994 law providing a land transfer to the Faribault School District for a new elementary school site. S.F. 1047, carried by Sen. Ember Reichgott Junge (DFL-New Hope), creates an open and standing appropriation category to provide property tax abatement aid to school districts. The division, at the author's request, approved the measure as a grant program and added it to the omnibus bill. Sen. Dallas Sams (DFL-Staples) presented S.F. 1172, calling for a biennial appropriation of $23.3 million to support secondary vocational education programs. The members set the proposal aside for further consideration. The division heard but chose not to include the provisions of six other bills in the omnibus bill. Among those bills was S.F. 1174, authored by Sen. Steven Novak (DFL-New Brighton), allowing districts to withhold the records of a transferring student until any school property is returned, and S.F. 1559, carried by Sen. Charles Berg (DFL-Chokio), providing a grant to reduce the Milan School District's operating debt. Also, a proposal by Sen. David Knutson (IR-Burnsville), S.F. 712, to eliminate referendum levy equalization offset was not included. S.F. 1372, requesting funds for an asbestos sampling program in the West Central Cooperative Service Unit, was presented by Sen. Keith Langseth (DFL-Glyndon) but not included. Reichgott Junge's proposal, S.F. 1050, to increase the general education formula allowance was also not approved. S.F. 1480, authored by Sen. Sandra Pappas (DFL-St. Paul), proposes using an excise sales tax revenue to reduce class sizes. The measure, calling for a two-year delay on the scheduled reduction in the sales tax percentages paid by businesses to replace their capital equipment, was not approved. Transition system bill heard The Education Funding Division, chaired by Sen. Lawrence Pogemiller (DFL-Mpls.), reviewed and approved a bill, Sat., Apr. 8, creating a system to help students make the transition from education to employment. S.F. 1476, authored by Sen. Tracy Beckman (DFL-Bricelyn), establishes an statewide education and employment transition system. The system is to include strategies to improve career counseling, to incorporate work-based programs into the school curriculum, and to develop private sector partnerships with the education system. The bill creates the governor's Workforce Development Council and makes the council responsible for development and implementation of a transition system. The proposal also calls for grant programs for local education and employment transition partnerships and for the support of a youth employers grant program. The provisions of the bill were approved and added to the omnibus funding bill. The division also approved and added to the omnibus bill a related proposal brought forward by Beckman, to encumber money for participants in Youth Community Service Programs. S.F. 1281 requires the Higher Education Coordinating Board to hold $4,725 in a special account for each student who enrolls in the youth works service program. The measure allows students who have completed the program to draw the funds from the account and use it toward their post-secondary education costs. In other business, the members reviewed several proposal to fund interactive television (ITV) and other information delivery systems in schools. Four of the six bills the division heard were presented by Sen. LeRoy Stumpf (DFL-Thief River Falls). S.F. 245 allows districts involved in the cooperation and combination program to receive ITV revenue if they enter into an ITV lease before combining. S.F. 289 allows districts to use capital expenditure and staff development revenue to train teachers in computer use. S.F. 892 provides grant programs that allow districts to gain access to information delivery technologies, and to fund the costs of connecting districts to the Internet. S.F. 567 provides a grant to the North Central Minnesota Educational Consortium to set up an ITV network. Sen. Florian Chmielewski (DFL-Sturgeon Lake) presented S.F. 668, giving a grant to the Cromwell School District for ITV installation. S.F. 551, creating a technical support aid program and providing funds for schools to access the Internet, was offered by Sen. Jane Ranum (DFL-Mpls.). After reviewing all of the proposals, the division set the bills aside for further consideration as part of their funding decisions. Two other bills were approved by the members and added to the omnibus bill. S.F. 1466, sponsored by Sen. Linda Runbeck (IR-Circle Pines), permits schools to charge fees to provide an elective course that would not otherwise be offered because of low enrollment. The bill also lets schools use unlicensed teachers in elementary classrooms when a licensed teacher is using their preparation time and allows districts to negotiate a payment schedule, other than provided in law, with the Dept. of Education. The portions of the bill allowing districts to charge fees, and to negotiate a payment schedule were approved. S.F. 945, carried by Sen. Martha Robertson (IR-Minnetonka), appropriates funds for the Advanced Placement and International Baccalaureate programs. The measure was approved without a specific appropriation. Several other bills were considered but the members voted that they not be included in the omnibus bill. Among those bills was S.F. 796, authored by Sen. David Knutson (IR-Burnsville), eliminating the State Board of Education, and S.F. 1466, offered by Sen. Mark Ourada (IR-Buffalo), requiring the state board to report the costs of implementing the graduation rule to the Legislature before the rule can take effect. Robertson's bill, S.F. 788, allowing districts to levy for insurance costs was not approved, nor was S.F. 1580, presented by Sen. Cal Larson (IR-Fergus Falls), giving a levy to districts losing a technical college to the merging higher education system. Also not included were S.F. 1580, sponsored by Larson, defining the effect of the debt service equalization aid has on district projects, and S.F. 1340, authored by Sen. Sandra Pappas (DFL-St. Paul), including provisions to fully fund special education, allow fund transfers and offset certain property tax aids. Special ed bills discussed Several special education proposals were under consideration when the Education Funding Division, chaired by Sen. Lawrence Pogemiller (DFL-Mpls.), met Mon., Apr. 10. The members took up S.F. 917, presented by Sen. Jerry Janezich (DFL-Chisholm). The bill establishes the Options-Plus Pilot Program. The purpose of the program is to develop alternative ways to serve students with specific disabilities without formally enrolling them in a special education program. As part of the program, districts are to prepare a limited educational plan for participating students that identifies how their needs will be meet. The division set the measure aside for further consideration. A bill to establish a pilot program to provide early intervention services to children with emotional or behavioral disorders was also set aside for more consideration. S.F. 1610, authored by Sen. Kevin Chandler (DFL-White Bear Lake), provides a grant to the White Bear Lake School District for "Project Prevent," an early intervention program serving children with emotional or behavioral disorders. Sen. Jane Krentz (DFL-May Township) presented S.F. 1400. The bill allows a county representative to participate in preparing the education plan for a child with a disability, if the parents and school district consent and it has been determined that interagency services are appropriate. The measure also requires the Dept. of Education and the Dept. of Human Services to evaluate their rules pertaining to special education, and calls on both departments to jointly develop a training program for school district staff who work with children with disabilities. The bill was approved and added to the omnibus bill, while the funding provisions of the proposal were set aside for future consideration. S.F. 707, authored by Sen. Warren Limmer (IR-Maple Grove), was rejected by the division. The measure excludes students from enrolling in a school district if they had been previously expelled from another district for possession of a firearm. The bill also prevents students released from a correctional institution from returning to their school district, diverting them instead into an alternative learning program. Special education components of S.F. 817 were also added to the omnibus bill. The measure, authored by Sen. Kenric Scheevel (IR-Preston), gives the parties objecting to proposed changes to a child's special education plan 15 days to provide the other party with a statement identifying the specific remedies sought. In other business, the members approved Pogemiller's bill, proposing funds in support of the artists in education residency project, and the Partners: Arts and School for Students (PASS) Program. Included as part of S.F. 1649 is a biennial appropriation of $842,000, which the division set aside. Sen. Jane Ranum (DFL-Mpls.) presented S.F. 1418, proposing changes to teacher compensation mechanisms. The bill changes current training and experience revenue provisions to a teacher compensation revenue program. The revenue is to be used to pay teachers who gain additional skills needed by their school district to increase student achievement. The measure was set aside until language changing it into a grant program could be developed. Higher ed allocations considered Members of the Higher Education Funding Division, chaired by Sen. LeRoy Stumpf (DFL-Thief River Falls), began discussing provisions to the division's appropriation bill at a Mon., Apr. 10, meeting. The proposal includes three articles dealing with a new funding policy, reorganization of the Higher Education Coordinating Board, and changes to the financial aid policy. Several individual bills also may be added to the package. Stumpf, as in previous meetings, emphasized the tough decisions the division must make regarding the ever-tightening budgets for higher education programs. "The budget proposal is by no means adequate," he said, but it does limit severely adverse impacts on all programs. Stumpf presented another provision outlining changes and requirements for labor agreements and compensation planning. Most notably, the measure directs the Minnesota State Colleges and Universities (MnSCU) Board of Trustees and the University of Minnesota Board of Regents to increase the number of hours faculty spend on instructional activities when negotiating labor agreements. Another of the 10 measures calls for providing for the equivalent of at least a 40-hour work week for all full-time employees. The provision also allows immediate employee layoffs in a financial emergency situation, as declared by the respective board. Stumpf said the basis of the proposals is to deal with the public's perception of how higher education systems are run. But representatives of the systems' faculty groups testified against the provisions, saying labor management should have the prerogative to manage collective bargaining. Discussion will continue. The division also took testimony on Stumpf's alternative funding proposal introduced as S.F. 1234. The provision changes the way campuses are funded by basing funding on the number of diplomas, degrees or certificates handed out, instead of on how many students a campus has enrolled. The bill also offers a high school diploma warranty requiring a high school to pay for remedial courses if a graduate scores below a 10th-grade level in a college assessment test. Two provisions were added to provide for technical and policy task forces to implement the proposal and work out the details and concerns of the interested parties. Members scheduled continuing discussions on the proposals. Environment and Natural Resources Petroleum tank cleanup changes A bill relating to petroleum tank cleanup ate up more than four hours of discussion at Weds., Apr. 5, meetings of the Environment and Natural Resources Finance Division. The division, chaired by Sen. Steven Morse (DFL-Dakota), also considered seven other bills. S.F. 507, carried by Sen. Steven Novak (DFL-New Brighton), deals with a variety of statutes related to petroleum tank cleanup funds, site assessments and tank monitoring. Much of the division's debate focused on a section of the bill dealing with reimbursement costs. The provision, Novak explained, essentially singles out two contaminated sites, located in Ramsey County and the city of Minneapolis, to be eligible for state Petro Fund money for the cleanup of the land. In both cases, the responsible parties are unable to cover the cleanup costs and the land would remain undeveloped unless the state funds are accessed, Novak said. Because of changes in laws since the land was purchased, the property owners got handed the cleanup bill, he said. Sen. Janet Johnson (DFL-North Branch) successfully offered an amendment establishing an environmental lien on the property in the amount of the reimbursement, or the value of the property. The amended bill was advanced to the full committee. Another bill, S.F. 1253, was also advanced to the full committee. The bill, authored by Sen. Don Samuelson (DFL- Brainerd), also deals with the petroleum tank release cleanup program and establishes registration requirements for contractors and consultants. A provision establishing insurance coverage criteria was deleted. The division also considered S.F. 693, a bill authored by Sen. Steve Dille (IR-Dassel) changing the limits for participation in rural finance authority loans. The goal of the bill is to improve the livestock industry in the state, Dille said. The bill also addresses development of best management practices for feedlots, changes permit requirements for feedlots, and appropriates funds. The bill was laid over for consideration with the division's appropriation bill. Five other bills also were laid over for further consideration, including S.F. 1358 authored by Sen. Dan Stevens (IR-Mora). The bill appropriates $25,000 to the Dept. of Natural Resources to establish a recreational shooting range within Sand Dunes State Forest. S.F. 345, carried by Sen. LeRoy Stumpf (DFL-Thief River Falls), expands the wastewater infrastructure funding program to include basic assistance grants to municipalities. Stumpf also presented S.F. 1193, a bill appropriating funds to establish a task force to study interstate flood control projects. Sen. Pat Pariseau (IR-Farmington) offered S.F. 671, a bill providing $175,000 in emergency bonding to repair erosion damage to the Cannon Valley Trail near Cannon Falls. Morse presented S.F. 1201, a bill specifying that money recovered in lawsuits for the destruction or loss of natural resources resulting from a hazardous waste release must be used for repairing or replacement of natural resources. Finally, the division heard a presentation by Sen. Roger Moe (DFL-Erskine) regarding a tree plantation project overseen by the University of Minnesota-Crookston. The project includes study of a rapidly growing type of poplar tree. Moe requested the division consider an annual appropriation of $200,000 to continue the project. Final bills advanced In one of its last policy meetings of the session, the Environment and Natural Resources Committee processed some 14 bills at a Fri., Apr. 7, meeting. S.F. 507, carried by Sen. Steven Novak (DFL-New Brighton), deals with a variety of statutes related to petroleum tank cleanup funds, site assessments, tank monitoring, and reimbursement requirements. Sen. Pat Pariseau (IR-Farmington) successfully offered an amendment specifying that costs of a corrective action performance audit also are reimbursable. Another bill, S.F. 1253, also deals with the petroleum tank release cleanup program. The bill, authored by Sen. Don Samuelson (DFL-Brainerd), establishes registration requirements for contractors and consultants. Sen. Gary Laidig (IR-Stillwater) presented H.F. 1018, a bill conforming state regulation of chlorofluorocarbons (CFCs) to federal law. The bill adds dehumidifiers, ice makers, water coolers, heat pumps and commercial refrigeration systems to the list of items from which CFCs must be removed and disposed. The bill also clarifies training and certification requirements. Members discussed and advanced 11 other bills. Sen. Janet Johnson's (DFL-North Branch) bill, S.F. 1076, dealing with wind facilities, exempts large wind energy conversion systems from power plant siting requirements. H.F. 1101, carried by Sen. Dennis Frederickson (IR-New Ulm), is a housekeeping bill and makes several technical corrections to laws related to shoreland ordinances, permitting, dam repair, and other federal, state, and local provisions. Sen. Leonard Price (DFL-Woodbury) presented a bill, S.F. 897, related to surface and groundwater management in the Metro Area. The provisions of the bill include groundwater management planning provisions, standards and review. Price also carried H.F. 1055, a bill amending the Watershed Act. The measure contains a provision to raise the per diem for watershed district managers by $5 a day. The bill also addresses changes in advisory committees, watershed district plans, and simplification of procedures to maintain and improve drainage ditches in the Metro Area. Sen. Kevin Chandler (DFL-White Bear Lake) presented S.F. 1073, a bill specifying that a private property owner may recover costs associated with cleanup of a contaminated site if the person responsible for abandoning the hazardous waste did not do so. Sen. Bob Lessard (DFL-Int'l. Falls), chair of the committee, presented a bill, S.F. 1250, modifying the terms of payment for certain tax-forfeited timber. The bill changes the required down payment of 25 percent of the appraised value, to "no less than 15 percent." The committee also considered several bills providing for the sale of tax-forfeited lands, including S.F. 243, carried by Sen. Deanna Wiener (DFL-Eagan), authorizing the sale of land in Dakota County. S.F. 1444, authored by Sen. Samuel Solon (DFL- Duluth), authorizes the sale of tax-forfeited lands in St. Louis County. Sen. Mark Ourada (IR-Buffalo) presented S.F. 1112, a bill allowing the sale of county ditches from Sherburne County to the city of Elk River. S.F. 1583, authored by Sen. Roger Moe (DFL- Erskine), also allows the sale of acquired state land in Becker County to a private landowner. Finally, the committee approved S.F. 867, carried by Sen. John Hottinger (DFL-Mankato), a bill allowing drivers license information to be included as required identification on fish houses. Budget proposal outlined The Environment and Natural Resources Finance Division commenced its allocations hearings with an overview of all agency programs and budgets presented by Chair Steven Morse (DFL- Dakota). Morse began the Mon., Apr. 10, meeting by pointing out the main "problem areas." The division faced a preliminary budget some $800,000 over the targeted budget of $347.2 million, Morse said. The division also has to make decisions regarding the governor's proposal to eliminate the payment in lieu of taxes or PILT program, and the proposed $3 million reduction in the Conservation Fund, he said. Morse highlighted the differences between the division's proposal and the governor's proposal. One of the most notable changes is in the budget allocation for the Legislative Commission on Minnesota Resources (LCMR). The governor had reduced the budget for several projects choosing instead to fund the projects with capital bonding; the division's initiatives, however, reinstate the original $2.3 million in LCMR funding. The division budget also proposes a $1 million reduction in ethanol producer payments, directs the Dept. of Agriculture to cover indirect costs with fees, authorizes a Dept. of Natural Resources pilot project to study eco-region management, and directs the Pollution Control Agency and the DNR to consolidate administration functions. In coming meetings, Morse said, the division also must address Agriculture's Grain Inspection Program and proposed changes to the Petro Fund. Budget allocations continue Members of the Environment and Natural Resources Finance Division continued their review of the division appropriation and omnibus bills at meetings held Tues., Apr. 11. Division Chair Steven Morse (DFL-Dakota) gave a section-by-section overview of the policy document which contains a variety of Senate bills and agency biennial proposals. Members briefly discussed several of the provisions. Some members expressed concern about one of the amendments to the Agriculture Best Management Practices Loan Program providing for liens against a loan-holder's property. The bill also contains changes to statutes related to ethanol production. The proposal, introduced by Morse, sets a state production goal of 220 million gallons, establishes a producer payment program for credits up to a state limit of $30 million a year, and repeals the credit program in 2010. Another change outlined in the bill is related to permit fees, allowing the Pollution Control Agency to charge a fee based on the amount of pollutants in the discharge instead of based on the quantity of the discharge. Members also heard a presentation from Paul Burns of the Dept. of Agriculture regarding the Agricultural Land Preservation Program. Morse explained that the governor is proposing to move $3 million from the conservation fund to the general fund. Burns said the action could hurt the preservation program by discouraging counties from participating without state assistance. Dale Heimerman, also of the Dept. of Agriculture, gave an overview of the changes made to the Grain Inspection Program since January to deal with an anticipated budget shortfall. Program officials have laid off 15 full-time employees and plan to seek recommendations on operation methods, billing and accounting practices, and develop better forecasting methods, he said. The division will continue scrutiny of its budget proposal before advancing it to the full committee. Family Services Senior nutrition program approved At the Thurs., Apr. 6 meeting of the Family Services Committee, chaired by Sen. Pat Piper (DFL-Austin), two bills were forwarded. S.F. 576, authored by Sen. Janet Johnson (DFL-North Branch) was sent to the funding division. The bill appropriates $1 million in additional funds to senior nutrition programs. Alice Davis, president of the Minnesota Nutrition Directors Association, said that the programs, which include home-delivered meals and congregate dining, are very effective in improving seniors' health and well-being. Nutritional intervention, Davis explained, can greatly reduce illness and disease in seniors. Sen. Don Kramer (IR-Brooklyn Center) inquired whether private support by recipients can supplement the base amount, which totals $2 million for both programs. Davis said that by law they cannot charge for the meals and that age and disability are the only eligibility factors. Members also approved H.F. 694, carried by Sen. Sam Solon (DFL-Duluth). The bill amends the sliding fee child care program to allow a county to reduce its assistance allocations, provided the county continues service to families currently receiving assistance. The measure, which applies to St. Louis and Ramsey Counties, eliminates unfair maintenance of effort for counties, Solon said, and allows the counties to compete on a level playing field. An amendment was adopted that clarifies that the bill does not affect the local match required. The bill, as amended, goes to the floor. Finance Transportation funding okayed A $2.5 billion omnibus transportation funding package was approved, Tues., Apr. 11, and sent to the Senate floor by the Finance Committee, chaired by Sen. Gene Merriam (DFL-Coon Rapids). S.F. 1536 provides $1.148 billion in FY 1996 and another $1.157 bill in FY 1997 for the Dept. of Transportation (MnDOT). As part of the department's biennial budget, $1.3 billion is earmarked for state road construction and another $754 million is designated for distribution as aid to counties and municipalities. The bill, authored by Sen. Keith Langseth (DFL-Glyndon), also provides $165.5 million in the next biennium for the operations of the Dept. of Public Safety, and another $69 million in FY 1996 and FY 1997 for the Metropolitan Council Transit Organization. Langseth said about $1.45 billion appropriated in the bill comes from the Trunk Highway Fund. Only about $22 million of the amount provided will come from the state's general fund. The committee approved two amendments that Langseth offered. One amendment makes technical corrections to the measure while the other eliminates $2.8 million from the appropriation for the Dept. of Public Service and another $1.6 million that had been provided to the Supreme Court in the bill. Both of those appropriations are to be included as part of a crime prevention omnibus bill now under consideration. In reviewing S.F. 1536, the members discussed a provision allowing MnDOT to implement a congestion pricing project. The project is to determine the feasibility of charging fees for the use of an interstate. The bill provides the department with a waiver from rulemaking requirements as it prepares the guidelines for the project. Sen. Jane Ranum (DFL-Mpls.) questioned how the funds generated by the fees would be used and expressed concerns that by giving the department a waiver from rulemaking, the project would proceed without public input. She offered an amendment requiring that any fee proceeds be placed in the general fund, so that they would be available to support transit operations. The amendment was adopted, but the committee defeated her second proposal to remove the rulemaking exemption and sunset the project on June 30, 1997. Langseth then offered to amend the provision by setting June 30, 1997 as the sunset date of the project, and the members adopted the proposal before approving the bill. Budget bill presented The Finance State Government Division began review of its omnibus bill at a meeting Tues., Apr. 11. The division, chaired by Sen. Richard Cohen (DFL-St. Paul), examined a spread sheet detailing budget items for legislative, judicial and administrative expenses of state government. Cohen called members' attention to two Senate proposals that are significantly higher than the governor's recommendations. The first concerns the appropriation for the attorney general's office. The Senate total is $44.4 million compared to the governor's figure of $40.2 million. Cohen said that to remain even "slightly competitive" with private law firms, it is imperative to increase salary levels. The measure also includes a salary supplement for the secretary of state's office. The second item, funding for the State Board of Arts, is set at $15 million in the Senate proposal, compared to the governor's recommendation of $12.5 million. Cohen said that the state of Minnesota provides very little funding for the arts. "Comparatively speaking, we're near the end of the pack," Cohen said. Funding for several commissions is eliminated under the Senate proposal. Included in the cut are Legislative Commissions on the Economic Status of Women, Planning and Fiscal Policy, Waste Management, and the Water Commission. Sen. Gene Merriam (DFL-Coon Rapids) raised concerns about the increase of fees for charitable gambling organizations. "I'm opposed to doing this," Merriam said. "The biggest check they write is to the state." Cohen pointed out, however, that many organizations haven't incurred fee increases in several years. "You have to view this from a linear perspective," he said. Sen. Roy Terwilliger (IR-Edina) also questioned fee increases. "Fees can be taxes in disguise," he said. In light of the goal to freeze taxes, Terwilliger said that imposition of extra fees is inappropriate. Senate Counsel Peter Watson presented a quick preview of the bill, which members will take up at a later meeting. Governmental Operations and Veterans Collection enterprise advances A bill to create a state collection agency was amended and approved, Weds., Apr. 5, by the Governmental Operations and Veterans Committee, chaired by Sen. James Metzen (DFL-South St. Paul). Authored by Sen. Phil Riveness (DFL-Bloomington), S.F. 503 establishes the Minnesota Collection Enterprise, making it responsible for collecting debt owed to state agencies, as well as debts owed to the University of Minnesota and to local units of government. The organization is also allowed to impose a penalty for collection and use the tax collection remedies now in law to collect the debt. A number of amendments were added, including three from Sen. Linda Runbeck (IR-Circle Pines). The amendments require $35 million worth of accounts receivable be assigned to private collection agencies as a pilot project, dictate that employees of the enterprise in unclassified service, and sets the goal that 90 percent of the debt past-due by more than 120 days be collected. Two amendments offered by Sen. John Hottinger (DFL-Mankato) were added - permitting private agencies to collect any assessed penalties, and allowing a debtor to contest a penalty. An amendment from Sen. Roy Terwilliger (IR-Edina), was added, eliminating the requirement that private agencies have an audited financial statement before they are allowed to collect state accounts. Sen. Don Kramer (IR-Brooklyn Center) offered language that limits the enterprise to collecting only state agency accounts. The bill was approved and re-referred to the Judiciary Committee. In other action, two bills were approved and sent to the Senate floor. H.F. 1211, authored by Sen. Roger Moe (DFL- Erskine), exempts a bus manufacturer that is locating a plant in Crookston from public contractors performance bond requirements. H.F. 624, presented by Hottinger, permits, but does not require, public employees to take an unpaid leave of absence when they are candidates for public office. S.F. 1076 gives exemptions to large wind energy conversion systems from laws that now determine where power plants are located. The bill, carried by Sen. Janet Johnson (DFL-North Branch), also directs the Environmental Quality Board to adopt rules to governing the siting and construction of large systems. The measure was approved and re-referred to the Environment and Natural Resources Committee. The Minnesota Office of Volunteer Services receives additional duties under S.F. 1301, which the committee approved and re-referred to the Finance Committee. The proposal, offered by Sen. Sandra Pappas (DFL-St. Paul), requires the office to promote and facilitate citizen involvement in local government. S.F. 956, authored by Riveness, eliminates the Dept. of Public Service and transfers its duties to other agencies. The bill was re-referred to the Jobs, Energy and Community Development Committee without recommendation. Pension bills approved Modifications to individual, local and statewide pension plans were approved, Thurs. evening, Apr. 6, by the Governmental Operations and Veterans Committee. The committee, chaired by Sen. James Metzen (DFL-South St. Paul), took up three omnibus pension bills that had been assembled and approved by the Legislative Commission on Pensions and Retirement. H.F. 1040, authored by Sen. Steven Morse (DFL-Dakota), provides modifications to the statewide general employee pension plans, along with changes to the plans for public employees in Minneapolis, St. Paul and Duluth. The bill also contains changes to the benefits in the Public Safety Employee Plan and additional amortization aid for police and firefighter association programs. The committee approved an amendment, offered by Sen. LeRoy Stumpf (DFL-Thief River Falls), allowing the Minneapolis Employee Retirement Fund to be restructured if both the city council and school board agree. The amendment, Stumpf said, is offered as a way to begin addressing the shortfall in the fund. Another Stumpf amendment, to include individuals of the Higher Education Coordinating Board in the statewide plan for higher education, was also adopted. The bill was approved and re-referred to the Finance Committee. The members also approved H.F. 617, providing changes to the Individual Retirement Account Plan (IRAP). The bill, presented by Stumpf, combines the individual account plans of the State University, Community College and Technical College Systems into one plan, effective with the merger of the systems on July 1, 1995. The measure also features provisions adjusting the plans of individuals and small groups of employees, and allows suspension and forfeiture of benefits to survivors in cases of felonious death. The bill was approved and sent to the Senate floor. H.F. 493, carried by Sen. Lawrence Pogemiller (DFL-Mpls.), was also approved. The bill contains adjustments to a number of local plans including consolidation of the Crystal and New Hope Volunteer Firefighter Relief Association, and amends the St. Paul Teacher Retirement Association's post-retirement adjustment mechanisms. The panel adopted an author's amendment, enabling the new Minneapolis police chief to enroll in the Public Employee Retirement Association. The measure was sent to the floor. In other business, the members approved S.F. 1572 and sent it to the floor. Sen. Phil Riveness (DFL-Bloomington), the bill's author, said the proposal prohibits the State Board of Investment from investing public funds in certain assets. He said the bill formalizes the board's current practice, and will prevent the kind of speculation that caused the financial problems in Orange County, California. The members also recommended the confirmation of Wayne Sletten to the Minnesota Veterans Homes' board of directors. Sprinkler bill advances High-rise apartment buildings will be required to have automatic sprinkler systems under a bill approved, Fri., Apr. 7, by the Governmental Operations and Veterans Committee, chaired by Sen. James Metzen (DFL-South St. Paul). The measure now goes to the Senate floor. S.F. 529, authored by Sen. Carl Kroening (DFL-Mpls.), requires installation of automatic sprinklers in buildings where at least one floor used for habitation is more than 75 feet above the lowest level accessible by fire department vehicles. The bill gives owners until July 1, 1997 to prepare and submit a compliance schedule to the state fire marshall. The committee adopted an amendment offered by Sen. Roy Terwilliger (IR-Edina) adding electric generation and distribution facilities to the buildings that are exempted from the requirement. Sen. John Hottinger (DFL-Mankato) presented an amendment, that was also adopted, allowing public housing agencies and owners of publicly-subsidized housing to receive an extension to the compliance schedule requirement. At an earlier meeting, the members had narrowly adopted an amendment from Sen. Linda Runbeck (IR-Circle Pines) excluding residential high-rises from the sprinkler requirement. Sen. Dan Stevens (IR-Mora) moved to reconsider the amendment and after some discussion, the committee voted to reject the Runbeck amendment and not exempt residential high-rises. In other business, the committee amended and approved S.F. 166. The bill, authored by Metzen, limits the aggregate amount that state agencies may spend on professional and technical services contracts to 90 percent of what was spent in FY 1994 and FY 1995. The measure also requires that contracts be publicized before they are awarded and that state employees be given the first chance to perform the services required in the contract. Metzen offered an amendment to exempt private collection agencies from the contracting requirements. The amendment was adopted and the bill was approved. The measure was re-referred to the Finance Committee. S.F. 1034, sponsored by Sen. Deanna Wiener (DFL-Eagan), establishes a higher education consortium to develop courseware and identify new methods of delivery to make post-secondary education available using distance learning technologies. The bill was approved and re-referred to the Finance Committee. S.F. 1135, carried by Metzen, was also approved and re- referred to the Finance Committee. The measures gives the Minnesota Amateur Sports Commission the additional authority to promote construction of new ice arenas and allows counties to issue bonds to finance the construction of new arenas. The bill also appropriates $2.9 million from the state bond fund for the commission to use as grants to build new arenas or renovate existing facilities. Modifications to the Waste Management Act, contained in S.F. 462, were also approved. The bill, presented by Sen. Janet Johnson (DFL-North Branch), transfers the Metropolitan Council's solid waste management duties to the Office of Environmental Assistance. The bill also includes a process to revise the state's solid waste policy without the use of the state's rulemaking procedures. The members approved two amendments offered by Stevens. The first requires the board and the commissioner of the Pollution Control Agency to report on the governing board's impact on the agency's actions. The second amendment eliminates the provision to ban corrugated cardboard from being mixed in a municipality's solid waste. The bill, as amended, was re-referred to the Finance Committee. The members approved several other bills and sent them to the floor. S.F. 1402, authored by Sen. Ellen Anderson (DFL-St. Paul), allows state employees to submit suggestions to improve state government, using forms to be included in their pay envelopes. S.F. 1075, sponsored by Sen. Pat Piper (DFL-Austin) calls for individuals who use medical x-ray equipment to pass an exam before being certified by the Dept. of Health to operate the equipment. S.F. 1417 was amended before it was approved. The bill, presented by Sen. Jim Vickerman (DFL-Tracy), provides processes to license chemical dependency counselors and hearing instrument dispensers. The panel adopted amendments offered, by Terwilliger and Hottinger, to remove provisions allowing data exchanges and imposing penalties on actions taken by an unlicensed mental health practitioner. A bill, offered by Sen. Don Betzold (DFL-Fridley), modifying a number of programs operated by the Dept. of Health was also amended and approved. S.F. 425 allows the department to adopt rules governing the installation and maintenance of swimming pools and indoor arenas. The measure also allows the department to charge a permit fee for asbestos-related training courses. The members adopted Stevens' amendment requiring the department to establish a certification process for managers of food service operations. The committee also recommended the full Senate confirm the appointments of Bernard Melter as commissioner of the Dept. of Veteran Affairs, James Main to the Veterans Homes Board, Elaine Hansen as commissioner of the Dept. of Administration, and Bruce Johnson as commissioner of Employee Relations. Health Care Children's Dept. changes made Members of the Health Care Committee, chaired by Sen. Linda Berglin (DFL-Mpls.), reconvened the evening of Thurs., Apr. 6, to approve several bills. S.F. 1103, sponsored by Sen. Jane Ranum (DFL-Mpls.) was modified and sent to the Education Committee. The bill eliminates the Dept. of Education and replaces it with a Dept. of Children, Families and Learning to address the needs of children in a holistic and integrated way by bringing together a variety of services. Numerous departments affect children, Ranum explained, but the programs are not coordinated and therefore do not meet their potential in reaching kids most effectively. The coordination of adult services with the children's initiatives "looks at the whole child in the context of the family," said Ranum. Members continued the debate that has followed the bill throughout several committees: what programs should be transferred to the new department. Sen. Don Samuelson (DFL- Brainerd) proposed the deletion of the child care programs from the list of transferred programs. "It's a good enough first step" to implement the other programs and evaluate its success, he said. Sen. Harold "Skip" Finn (DFL-Cass Lake) also moved to delete Head Start from the department. Its success has been due to local involvement and community action agencies, and the transfer seriously undermines the purpose of the program, explained Finn. Sen. Pat Piper (DFL-Austin) encouraged the committee to reject both amendments, stating that a change in the direction of the education of children is desperately needed. The incorporation of varied programs focuses on the many aspects of learning, Piper said. The deletions were approved. Berglin offered an amendment that retains the authority to leverage federal funds with the Dept. of Human Services and gives the commissioner the authority to contract with the new department to obtain reimbursements. The amendment was approved. S.F. 1188, authored by Sen. Arlene Lesewski (IR-Marshall), was amended and sent to the floor. The bill encourages breast feeding by listing the benefits to both mother and child, permits a mother to breast feed in any location with impunity, and specifies recommendations relating to breast feeding for health care facilities to follow. "We need to send a message that this is a natural, healthy" act, said Lesewski. Sen. Sheila Kiscaden moved to delete the recommendations, stating that the legislature should steer clear of this type of directive. The deletion was approved. The committee also sent two bills to the floor. S.F. 47, the omnibus health and human services policy bill, authored by Samuelson, and S.F. 770, sponsored by Finn, a bill that examines pesticide poisoning, advance. Omnibus bill constructed Continuing development of the omnibus bill for Health Care and Family Services, the division met Thurs., Apr. 6. Chaired by Sen. Don Samuelson (DFL-Brainerd), the committee incorporated non-budgetary portions of two bills. S.F. 1535, authored by Sen. Edward Oliver (IR-Deephaven) makes changes to the TEFRA (Tax Equity and Fiscal Responsibility Act) program, and S.F. 1114, authored by Samuelson, modifies regional treatment centers and state-operated community services. The bill goes to the Health Care Committee. The committee also approved S.F. 770, authored by Sen. Harold "Skip" Finn (DFL-Cass Lake). The bill originally required a study and report by the Department of Health, in collaboration with several other entities, to determine the effects on public health from the spraying of zinc cadmium sulfide. The chemical was sprayed by the United States Army in Minnesota in the 1950s and 1960s. Finn offered an amendment, that was adopted, to simply require the department to review the National Academy of Science's report on adverse effects, instead of mandating another government study and report, he said. The bill also requires the attorney general to determine whether any recourse against the federal government exists. We were the federal government's guinea pigs, said Finn, and this bill will attempt to rectify past wrongs. Another bill of Finn's, S.F. 854, was modified and added to S.F. 770 as an amendment. As approved, the measure requires the commissioner of health to determine the extent of pesticide poisoning in Minnesota and offer remedies to the problem. The poisoning, particularly acute in rural areas, adversely affects migrant workers, Finn explained. The bill advances to the Health Care Committee. Allocations discussed At the Health Care and Family Services Funding Division meetings Tues., Apr. 11, chair Sen. Don Samuelson (DFL-Brainerd) and members reviewed proposed appropriations. The chair recommends a total FY 96-97 appropriation of $5 billion, $64 million less than the governor's proposal. Some of the differences between budgets include administrative cuts and no additional staffing in certain areas of the committee's plan, Samuelson explained. Limited funding of statewide systems also reduces the bottom line, he continued. Several riders, policy specifications for budget allocations, were added to S.F. 1110, the omnibus funding bill. Sen. Sheila Kiscaden (IR-Rochester) offered a proposal relating to nursing home eligibility. It reinstates a service allowance for high functioning "Class A" persons and gives counties the option of providing services, cash allowances, or vouchers. The proposal was adopted. Sen. Linda Berglin (DFL-Mpls.) offered an amendment modifying nursing home rates. It permits a higher pay rate only if a nursing home and hospital facility are physically attached, sets up a voluntary alternative payment system, and limits private pay rates. The limit encourages facilities to garner Medicare reimbursement instead of using state funding, Berglin explained, and only places administrative - not service -limits on facilities. Samuelson said it was preferable to proceed with a pilot project to evaluate its effectiveness and offered a similar amendment for consideration. The proposals differed in the extent to which the alternative system would be implemented, Berglin favoring an unlimited number on a contract basis, and Samuelson advocating 10 facilities at a later date. Berglin's amendment decreases property-related payments and increases the reductions in the second year. Tom Moss, of the Dept. of Human Services, said that both rate proposals will effect the underlying inflation rate. Berglin's amendment was adopted. Sen. Phil Riveness (DFL-Bloomington) questioned the savings of achieving managed care. "Why are we spending $35 million and saving nothing?" he asked. He proposed a rider to delay managed care and evaluate whether managed care for GAMC and the prepaid medical assistance project can be effective. Helen Yates of the department said that managed care is less costly and provides better access. Stopping the progress already made will be problematic, she said. The proposal failed. As an alternative, Riveness offered a ratable reduction on all MA and GAMC fee-for- service and managed care payments of .9 percent. The measure, raising approximately $20 million in state and federal funds, was adopted. Riveness also offered a rider to study pharmacy programs, including cost-effective intervention, a limit on prescriptions, pharmacy case management, and co-payments to reduce cost and misutilization. The measure was adopted. Sen. Dallas Sams (DFL-Staples) offered an amendment in response to the large disparity between Metro Area and rural capitated payment rates. The difference is highly unfair to Greater Minnesota, he said. The proposal transfers a certain factor of Hennepin County rates to the non-Metro Area. Berglin countered that one statewide rate destroys the current system of rates and does not make good sense. The Hennepin County rates reflect the rate of fees that are currently found in the Metro Area market, she explained. The amendment failed to gain approval. Discussion of appropriations will continue. Jobs, energy and community development TACIP bill heard A bill that abolishes the board for Telecommunications Access for Communications Impaired Persons (TACIP), was heard by the Jobs, Energy and Community Development Committee, Thurs., April 6. Members of the committee, chaired by Sen. Steven Novak (DFL-New Brighton), heard testimony from members of the TACIP board, as well as representatives from the deaf community. Sen. John Marty (DFL-Roseville), author of S.F. 910, explained the bill's intent. Marty stated that the current governance structure, which provides a telecommunications relay service for communications-impaired persons is bureaucratic and inefficient. The removal of the TACIP board, Marty suggested would create a more productive relay service and allow the deaf community more involvement in its management. The bill transfers the board's functions and duties to the Department of Public Service (DPS). The DPS must administer the program for communications-impaired persons and contract with a local consumer group to operate the state's telecommunications relay service. Proponents of the bill included Doug Bahl, president of the Minnesota Assn. of Deaf Citizens, Randy Doane, chairperson of the Minnesota Commission Serving the Deaf/Hard of Hearing, and Steve Hunter, of AFSCME, the union representing the relay service. Proponents briefed members on the ways in which the TACIP board hinders quality communication service by ignoring the needs of the deaf community. Opponents of the bill included, Bill Lamson, Linda Waslawski, and Jeremy Nyquist, of the TACIP board, and Mike Nowick of the Minnesota Telephone Assn. Opponents briefed members on the board's efforts to enforce federal service standards, minimize operating costs, and increase the performance of the relay service. The committee approved S.F. 910 for passage. The bill moves on to the funding division of the full committee. Members also approved S.F 1140, authored by Sen. Arlene Lesewski (IR-Marshall). The bill modifies provisions relating to rehabilitation programs and services. S.F 1140 moves on to the funding division of the full committee. Ten bills heard Members of the Jobs, Energy and Community Development Funding Division, chaired by Sen. Carl Kroening (DFL-Mpls), reviewed ten bills, Thurs., Apr. 6. No action was taken on any of the bills. S.F. 826, authored by Sen. Randy Kelly (DFL-St. Paul), appropriates $15 million to the Department of Trade and Economic Development for contaminated land cleanup programs. Kelly told members that contaminated land is one of the state's biggest impediments to economic development. S.F. 935, also authored by Kelly, appropriates money to the Minnesota Job Skills Partnership Board to create a customized job training program. Kelly told members that the program links the needs of St. Paul manufacturers desiring skilled workers, and area residents in need of employment. The program targets high school graduates and dislocated workers. The state will contract with community colleges to provide educational services. S.F. 1085, sponsored by Sen. Florian Chmielewski (DFL- Sturgeon Lake), appropriates money to regional development commissions to identify energy-efficient businesses. Chmielweski said the study of energy-efficient products and processes will result in economic growth and job creation for the state. S.F. 1133, authored by Sen. Don Betzold (DFL-Fridley), provides funding to the North Metro Business Development Commission for the purpose of expanding the commission's business retention and expansion program. The program connects small businesses with the resources necessary to find skilled employees, Betzold said. S.F. 1348, also authored by Betzold, provides grants to cities to remove multi-unit blighted rental property. Betzold told members that the bill allows cities to remove rundown apartments that are too costly to repair. The bill would ultimately allow cities to renovate communities with changing housing needs. S.F. 1142, introduced by Sen. Janet Johnson (DFL-North Branch), provides additional funding to the North West Company Fur Post Interpretive Center. The center, located in Pine City, has the highest visitor satisfaction rating in the state, Johnson said. Johnson explained that additional funding is needed to keep the center open longer in F.Y. 95 and 96. S.F. 1424, authored by Sen. Carl Kroening (DFL-Mpls.), funds the Minnesota Youthbuild program. The program provides youth with the opportunity to learn a trade or skill while still attending high school. Scott Furman, director of a Youthbuild initiative, told members that the strong work ethic most youth acquire while in the program has a positive effect on their attendance in school and on their attitude toward others. S.F. 1467, introduced by Sen. Richard Cohen (DFL-St. Paul), appropriates money to the Department of Trade and Economic Development to study the advantages of convention centers throughout the state. Cohen said the data obtained through this study would help legislators prepare for the 1996 bonding session. S.F. 1381, authored by Sen. Kevin Chandler (DFL-White Bear Lake), provides additional funding for vocational rehabilitation and employment support services for persons with mental illness. Jobs, Energy and Community Development Numerous bills approved The Jobs, Energy and Community Development Committee met Friday evening, Apr. 7, and approved numerous bills before the second legislative deadline. The committee, chaired by Sen. Steven Novak (DFL-New Brighton), first heard S.F. 927, authored by Sen. Pat Piper (DFL- Austin). The bill provides additional funding to the Phoenix Group, a nonprofit community organization that provides business opportunities in poor communities. Piper introduced an amendment that requires the organization to focus its efforts in neighborhoods with high levels of poverty and a lack of affordable housing. The bill was approved by members and referred to the funding division of the full committee. S.F. 255, sponsored by Sen. Paula Hanson (DFL-Ham Lake), calls for the registration of elevator workers who install or repair passenger elevators. The bill requires the registration of all elevator mechanics unless under the direct on-site supervision of a registered elevator mechanic. The bill was approved by the committee and re-referred to the Finance Committee. S.F. 375, authored by Sen. Bob Lessard (DFL-Intl. Falls), adds pumped hydropower to the list of alternative energy sources. The bill provides incentive payments to pumped hydropower facilities. The bill was approved by members and recommended for the Consent Calendar. S.F 629, sponsored by Sen. Don Betzold (DFL-Fridley), establishes a rental tax equity program in the city of Brooklyn Park. The program provides a tax credit to owners of old residential rental property who make needed repairs on their property. Betzold stated that the program will increase pride and reduce crime in blighted neighborhoods. The bill was approved by the committee and referred to the Committee on Taxes and Tax Laws. S.F. 910, authored by Sen. John Marty (DFL-Roseville), abolishes the board for Telecommunications Access for Communications Impaired Persons (TACIP), and transfers the board's functions and duties to the Dept. of Public Service (DPS). The bill requires that DPS contract with a local consumer group to operate a telecommunications relay service for communications-impaired-persons. The bill was approved by members and referred to the Senate floor. H.F. 528, sponsored by Sen. Deanna Wiener (DFL-Eagan), restricts eligibility for a communication device for communication-impaired persons in a residential care facility. Wiener stated that it is the responsibility of the residential care facility to provide communication-impaired occupants with a functional communications device. If the residential care facility does not honor this obligation, it is no longer the state's responsibility to provide the equipment. The committee recommended the bill for passage. It advances to the Senate Floor. Sen. Janet Johnson (DFL-North Branch), presented a number of bills to the committee. S.F. 890 adopts federal energy standards for air conditioners, certain gas-burning equipment, and faucets. The bill was approved and it advances to the Senate floor. S.F. 790 allows exemption from regulation for small electric utility franchises serving fewer than 200 customers. S.F. 791 clarifies that the Public Utilities Commission (PUC) may extend the deadline for a rate suspension by 20 days when necessary. S.F. 792 allows a longer review time for granting a petition for a hearing by the PUC. Members rolled S.F. 790, 791, and 792 into H.F. 358. The committee recommended the bill for passage. It advances to the Senate floor. S.F. 1186, authored by Novak, changes the age limitations under the family homeless prevention and assistance program. The bill allows the agency to make grants to develop family homeless prevention projects for persons under the age of 22. The bill was approved by members and referred to the funding division of the full committee. S.F. 1482, sponsored by Sen. Edward Oliver (IR-Deephaven), establishes a Metropolitan Revitalization Fund designed to support housing and urban development in metro areas. The bill authorizes a Job Opportunity Program which provides AFDC recipients with an opportunity to improve their job skills and obtain meaningful employment. The bill also provides for the removal of blighted housing and contaminated land cleanup in metro areas. Members recommended S.F. 1482 to pass. The bill advances to the Finance Committee. S.F. 1125, sponsored by Sen. Sandra Pappas (DFL-St. Paul), is a Dept. of Labor and Industry housekeeping bill that clarifies the state's authority regarding the Labor Education Advancement Grant Program, a program to facilitate the participation of minorities and women in apprenticeships in trades and other occupations. The bill goes next to the Senate floor. S.F. 705, sponsored by Sen. John Hottinger (DFL-Mankato), requires businesses that accept state aid to prove that they have created new, livable-wage or above jobs. Under the bill, large businesses that accept $25,000 or more in economic development grants, loans or benefit from tax increment financing must demonstrate that they have produced a net job increase within two years of receiving the aid. The jobs created must pay wages equal to a poverty-level income for a family of four. Currently, this wage is $7.28 per hour. Businesses that accept the aid but do not create any new jobs are disqualified from further assistance, and those that do not pay a livable wage must pay a local human service agency double the difference between the livable wage and the wage actually paid. The committee adopted an amendment to S.F. 705 offered by Sen. Carl Kroening (DFL-Mpls.), that specifies that IRRRB grants are subject to the bill's provisions. S.F. 705 now goes to the Taxes and Tax Laws Committee. S.F. 1303, allows non-profit corporations controlled by the Richfield Housing and Redevelopment Authority to sell non- subsidized revenue bonds to acquire and operate low- and moderate-cost housing projects. The measure, sponsored by Sen. Phil Riveness (DFL-Bloomington), goes next to the Taxes and Tax Laws Committee. S.F. 262 also received the panel's approval. The bill, sponsored by Novak, makes permanent a pilot program enacted in the 1993 session. The program provides grants to certain businesses that provide high-quality jobs for handicapped workers in an integrated situation. The bill now goes to the Jobs, Energy and Community Development Finance Division. S.F. 1051, authored by Sen. Dennis Frederickson (IR-New Ulm), requires cellular phone services to include a notice in each billing explaining to customers how to use 911 service from their cellular phones and informing them that if a call is placed to 911 from a cellular phone, 911 dispatchers cannot determine where the caller is located. After testimony from cellular phone services opposing the bill, the panel approved an author's amendment that requires the notice at the time of subscription and at least once annually thereafter. The bill was approved and sent to the Senate floor. H.F. 733, sponsored by Sen. Arlene Lesewski (IR-Marshall), provides for an individual contracting pipefitter license. The bill also sets forth bonding and insurance requirements for licensees. The bill now goes to the Senate floor. S.F. 1285, authored by Sen. Carl Kroening (DFL-Mpls.), appropriates $500,000 from the general fund for a grant to Hennepin County for the purpose of planning a multi- jurisdictional reinvestment program involving Hennepin County, the cities of Minneapolis, Brooklyn Center, and other interested local government jurisdictions. Participating entities are required to match the state's contribution. The program must include plans for housing rehabilitation and removal, industrial polluted land cleanup, environmental cleanup, community corridor connections, corridor planning, job creation, and creation of green space. Up to one-half of the appropriation may be used as a grant to the cities of Minneapolis and Brooklyn Center to provide capital for the construction of public infrastructure improvement to further economic development. Members voted to approve the bill and sent it to the Jobs, Energy and Community Development Finance Division. The panel next approved S.F. 1173, a bill placing conditions on the sale of local telephone companies. Under the measure, sponsored by Sen. Kevin Chandler (DFL-White Bear Lake), the selling company must give at least 90 days notice to its customers, provide information on the proposed buyer, and provide its customers with an opportunity to comment on the quality of service provided by the local exchange. The bill also requires the Public Utilities Commission to hold a public hearing about the proposed sale. The Senators approved two amendments to the bill. The first, offered by Chandler, clarifies the definition of a Class A telephone company in the bill as having annual revenues from regulated telecommunication operations of $100,000 or more. The second, offered by Sen. Steve Dille (IR-Dassel), changes the bill's effective date to assure that pending sales will not be affected. The bill was referred to the Senate floor. H.F. 354, sponsored by Novak, exempts small gas utility franchises from rate regulation for incidental utility service. The bill was approved and sent to the Senate floor. S.F. 1186, also sponsored by Novak, expands eligibility for the family rental housing assistance program to include families with up to 80 percent of state median income. It also authorizes the establishment of a rental housing assistance program for persons of low income or for persons with a mental illness. The measure also provides for accessibility rehabilitation loans for people who require hospital or skilled nursing care and who could live at home and use home care. The bill was approved and sent to the Senate floor. S.F. 1273, sponsored by Sen. Ellen Anderson (DFL-St. Paul), establishes the affordable home ownership investment account as a separate account in the housing development fund. The purpose of the account is to encourage private investment in affordable housing and encourage collaboration of nonprofit organizations and political subdivisions with each other and private lenders in providing full cycle lending services for home buyers. The bill was approved and sent to the committee's finance division. The Senators failed to approve S.F. 1588, sponsored by Sen. Linda Runbeck (IR-Circle Pines). The bill contains a resolution that acknowledges the importance of jobs, capital investment, legislation, and a healthy private business sector to the state's business development, and resolves that the legislature commits itself to strive for continuous improvement in the state's environment as a location for business development. Allocations discussed The Jobs, Energy and Community Development Finance Division met briefly following the full committee meeting Fri., Apr. 7 to discuss the allocations needs for this session. Sen. Carl Kroening (DFL-Mpls.), chair of the division, outlined the division's tasks for the next two weeks. Kroening said the division may allocate $311 million. The governor's recommendations total $329 million, plus $15 million for Dept. of Economic Security functions that the full committee removed from the Children's Dept. bill, and minus $8 million for programs already funded. The resulting $336 million must be cut by approximately $25 million, Kroening said, if the division is going to fund a large portion of the bills before it. Allocations talks continue The Jobs, Energy and Community Development Finance Division, chaired by Sen. Carl Kroening (DFL-Mpls.), met Mon., Apr. 10, and reviewed the appropriations portions of several bills. Members took no formal action on the bills. The division heard S.F. 262, sponsored by Sen. Steven Novak (DFL-New Brighton), a bill that makes permanent a pilot program that provides grants to businesses that provide high-quality jobs for handicapped persons. S.F. 903, sponsored by Sen. Phil Riveness (DFL-Bloomington), modifies the economic recovery grant program. The measure also requires a legislative audit of the program. S.F. 1273, sponsored by Sen. Ellen Anderson (DFL-St. Paul), establishes an affordable home ownership funding program to benefit people and families whose income 50 is percent of Metro Area median income or less. The bill contains blank appropriations for the housing trust fund, capacity building grants, lead abatement, mortgage foreclosure prevention, family homeless prevention and assistance, affordable rental investment, and transitional housing programs. S.F. 255, sponsored by Sen. Paula Hanson (DFL-Ham Lake), changes requirements for elevator work. The bill specifies that the wiring, installation, alteration, modernization, removal and repair of elevators may only be performed or supervised by a registered elevator mechanic. Proceeds from a fee for the permit are designated for the Dept. of Labor and Industry. The amount of the fee has not been determined. S.F. 1285, authored by Kroening, appropriates $500,000 from the general fund for a grant to Hennepin county for the purpose of planning a multi-jurisdictional reinvestment program involving the county, the cities of Minneapolis and Brooklyn Center, and other local jurisdictions. S.F. 1482, sponsored by Sen. Edward Oliver (IR-Deephaven), establishes the metropolitan revitalization fund. The bill appropriates $13 million from the general fund for an economic vitality and housing initiative to provide funds for affordable housing to ensure expansion and preservation of the economic base and to ensure employment opportunities. The bill also appropriates $3 million from the general fund for the community rehabilitation fund account for the purpose of fixing up blighted areas in first class cities in the Metropolitan Area. S.F. 927, sponsored by Sen. Pat Piper (DFL-Austin), appropriates $250,000 to provide low-cost housing to low-income families and individuals. It also appropriates $250,000 to provide business opportunities in low-income areas of a first class city. Community reinvestment bill heard Members of the Jobs, Energy and Community Development Funding Division, chaired by Sen. Carl Kroening (DFL-St. Paul) heard testimony on S.F. 1285, Tues, Apr. 11. The bill appropriates money for a multi-jurisdicitonal, collaborative reinvestment program involving the cities of Minneapolis and Brooklyn Center. The panel also heard testimony from the Defense Fund Conversion Program, the Minnesota Historical Society, and the University of Minnesota Biomedical Project. Hennepin County Commissioner Mike Opat, stated that S.F. 1285 funds a program designed to remove blighted housing, assist with stormwater runoff, and clean up polluted land in Hennepin county. Alice Raineville, a Minneapolis city council member explained that the initiative provides stability to the corridor of neighborhoods that border both Minneapolis and Brooklyn Center. "By renovating the infrastructure that already exists," Raineville stated, "we can meet the needs of both communities." She said that planning efforts for the program will cost approximately $500,000. No action was taken on the bill. Members also heard testimony on the Defense Fund Conversion Program involving Hennepin and Ramsey Counties. The initiative provides loans to dislocated employees of the defense industry. The program provides dislocated workers with the capital needed to convert hi-tech military enterprises into businesses that benefit the private sector. John Wood, of the Minnesota Historical Society, briefed members on the organization's need to reinvest in salaries paid to employees. Wood stated that the Historical Society has not accounted for inflationary increases in employee salaries in nearly eight years. He told members an early retirement program may be a solution to the organization's economic problems. By initiating an early retirement program, the society hopes to reduce salary expenses and preserve the careers of its long-term employees. Rich Schliecher, Bill Hoffman and Aundrea Nelson, of the University of Minnesota Medical School, briefed members on the insitution's desire to develop a first-rate biomedical facility. Schliecher stated that the school received a large gift from industry for this purpose. He told members that a partnership between the University, industry and the state would provide adequate funding to create the facility. Schliecher said, the biomedical center will attract graduate students as well as medical businesses to the state. Judiciary Collection enterprise advanced The Judiciary Committee, chaired by Sen. Carol Flynn (DFL- Mpls.), wrapped up its hearing schedule for the session with an evening hearing Thurs., Apr. 6. Members took action on a number of bills to clear the agenda before the second committee deadline. A bill setting up a separate unit to collect debt owed the state provided a focal point for committee discussion. S.F. 503, authored by Sen. Phil Riveness (DFL-Bloomington), establishes the Minnesota Collection Enterprise to carry out debt collection provisions of the bill pursuant to the commissioner of finance's authority with the commissioner of revenue for collection services. The measure gives the commissioner of finance authority to use tax collection remedies, currently used by the Dept. of Revenue, to enforce debts owed to the state. The bill also provides for imposing a collection penalty on debts, however the measure also outlines conditions under which the penalty may be canceled. Discussion on the bill centered on the amount of outstanding debt owed the state. Sen. Linda Berglin (DFL-Mpls.) and Sen. Sheila Kiscaden (IR-Rochester) both pointed out that other bills going through the Legislature, specifically the child support enforcement bill, also are designed to collect debt. In addition, Sen. Harold "Skip" Finn (DFL-Cass Lake), said that he was concerned about the penalty provisions in the measure. Riveness responded that he would gather more complete information about the amount of debt and that the provisions for cancellation of the penalty offered protections against placing an undue burden on individuals. The measure was approved and advanced to the Committee on Finance. Members also advanced a number of other bills to the full Senate. S.F. 164, authored by Sen. John Hottinger (DFL-Mankato), prohibits provisions that grant a health carrier a subrogation right, except where the covered person has been fully compensated from another source. S.F. 1407, also sponsored by Hottinger, permits optional voting systems for cooperatives that have other cooperatives as members. Hottinger said that the measure applies to three cooperatives in the state. A bill, authored by Sen. Sam Solon (DFL-Duluth), dealing with rent-to-own agreements also sparked considerable discussion. The measure, S.F. 836, was amended by Sen. Ember Reichgott Junge (DFL-New Hope), to further define "cash price" and regulate finance charges. Cash price is defined as the fair market value of the property and fair market value is the price at which retail sellers and retail buyers are buying the same or similar property for cash in the same area. Further the bill sets forth a number of provisions that are prohibited in rental agreements. In addition, the bill specifies that the finance charge on the cash price is not to exceed an annual percentage rate of 36 percent. S.F. 347, carried by Sen. Ted Mondale (DFL-St. Louis Park), regulates tenant screening practices. The measure requires landlords to notify a rental applicant if the landlord will use a tenant screening service in determining whether to rent to the individual. In addition, the bill requires that when reporting information on tenants from court files, the outcome must be accurately reported. The measure also specifies that a screening service may not make a tenant screening report that contains information on an unlawful detainer action more than four years before the report. S.F. 732, authored by Sen. Don Betzold (DFL- Fridley), revises Article 8 of the Uniform Commercial Code as proposed by the National Conference of Commissioners on Uniform State Laws. S.F. 1091, authored by Sen. Don Kramer (IR-Brooklyn Center), expands the authority of the commissioner of transportation to regulate providers of special transportation services. The bill also provides for administrative fees and penalties. S.F. 1204, authored by Betzold limits the vicarious liability of the owner of a rented vehicle to $250,000 for bodily injury to one person in any one accident, to $500,000 because of injury to two or more persons in any one accident, and $20,000 because of injury to or destruction of property in any one accident. Taxes and Tax Laws Property tax provisions heard The Taxes and Tax Laws Subcommittee on Property Tax met Thurs., Apr. 6, to continue the review of proposals for inclusion in the omnibus tax bill. The panel, chaired by Sen. John Hottinger (DFL-Mankato), heard the bills and took public testimony but did not take final action on the measures. S.F. 311, authored by Sen. Arlene Lesewski (IR-Marshall), allows Pipestone County to issue bonds in an amount not to exceed $598,000 to repair and renovate the county courthouse and annex. S.F. 920, carried by Sen. Steven Morse (DFL-Dakota), provides for a pilot conservation credit program in Houston County and provides for a property tax credit for the program's participants. S.F. 1064, sponsored by Sen. Pat Pariseau (IR- Farmington), adds an exemption from property tax for property used to provide aviation goods, services, or facilities if the property is located on leased land at an airport owned by a city of less than 50,000 in population. Two bills dealing with wind energy conversion systems were also considered. S.F. 902, authored by Sen. Janet Johnson (DFL- North Branch), provides for property taxation on the foundation or support structures of wind energy conversion systems that produce more than two megawatts of electricity and were installed on or after Jan. 1, 1995. S.F. 637, authored by Lesewski, provides for property taxation on the foundation or support pad of wind energy conversion sytems that produce more than one megawatt of power. In addition, S.F. 637, provides a five-year exemption for the devices in the system that convert wind energy to a form of usable energy for systems built after Jan. 1, 1991 and producing more than one megawatt of electricity. Finally, S.F. 637 exempts turbines, blades, transformers, and related equipment without any time limitation. S.F. 998, authored by Sen. Carol Flynn (DFL-Mpls.), provides a reduced class rate to new or expanded commercial-industrial properties located in transit zones. S.F. 1160, sponsored by Sen. William Belanger (IR-Bloomington), deletes a required adjustment to the city of Bloomington's fiscal disparities contribution. S.F. 1300, sponsored by Sen. Sandra Pappas (DFL-St. Paul), provides for the detachment of intermediate airport land from cities or school districts for property tax purposes. S.F. 1019, authored by Sen. Ted Mondale (DFL-St. Louis Park), known as the Metropolitan Livable Communities Act, sets up a Metropolitan Livable Communities Advisory Board and establishes a livable communities fund. Under the bill, the fund is to be used to clean up polluted lands and to expand and preserve life- cycle and affordable housing. The Metropolitan Council is authorized to levy a tax in the Metro Area for the fund while, at the same time, the Metropolitan Mosquito Control Commission is directed to reduce its levy. Tobacco tax hike okayed Members of the Taxes and Tax Laws Subcommittee on Income and Sales Tax met Mon., Apr. 10, to assemble the parts of the omnibus tax bill that fall under the subcommittee's jurisdiction. Members, chaired by Sen. Len Price (DFL-Woodbury), reviewed the four articles of the omnibus tax bill and considered two amendments. One of the amendments, offered by Sen. William Belanger (IR- Bloomington), sparked considerable discussion. The proposal calls for an increase of 40 cents per pack in the cigarette tax and a decrease--from 2 percent to 1/2 percent--of the health care provider tax. Belanger said the proposal had two aims; to reduce the burden on health care providers for funding MinnesotaCare and to channel the increased revenue from the tobacco tax into the health care access account. According to Belanger, the proposal is revenue neutral, yet assures a funding stream for MinnesotaCare. Sen. Linda Berglin (DFL-Mpls.), said that the reduction in the health care provider tax was too steep and that the funding for MinnesotaCare would be jeopardized under the amendment. Accordingly, Berglin moved that the amendment be divided into two parts. Members voted first to adopt the portion of the amendment increasing the cigarette tax. Sen. Edward Oliver (IR-Deephaven) moved to amend the remaining portion of the amendment. Oliver's amendment substitutes a 1 percent provider tax instead of the 1/2 percent provider tax. The Oliver amendment was adopted on a voice vote. The portion of the amendment dealing with the provider tax was then adopted on an 8- 3 roll call vote. A second amendment, offered by Sen. Dick Day (IR-Owatonna) on behalf of Sen. Steve Dille (IR-Dassel), failed to gain approval. The amendment allowed the city of Hutchinson to hold a referendum for the imposition of sales, liquor and food taxes to be used for city improvements. Provisions adopted by the subcommittee include language adapting Minnesota tax laws to newly enacted federal laws. In addition, the omnibus proposal includes several provisions changing the exemption of the excise tax on alternative fuels. The measure eliminates the exemption from gasoline tax for sales of compressed natural gas or propane used in vehicles and provides that the excise tax on gasoline also be imposed to gasoline blended with ethanol and agricultural alcohol gasoline. The measure also sets the tax rates for the special fuel excise tax. Under the proposal, rental cargo vans are exempted from the sales tax and 10 percent of the sales tax on construction materials for juvenile correctional facilities is to be refunded. The farm machinery sales tax exemption is extended until June 30, 1996. In addition, the measure excludes the Minneapolis Women's Club from liquor, lodging and restaurant taxes imposed for the convention center and authorizes the city of Winona to use half of the proceeds for the 1 percent lodging tax for improvements to the Julius C. Wilke Steamboat Center. The proposal also repeals the tax on 900 number phone calls Another article of the proposal deals with the Cambridge Bank settlement. The measure authorizes the commissioner of finance to issue up to $400 million in state bonds to fund the judgment in the Cambridge Bank case. In addition, the proposal specifies that up to 60 percent of the net proceeds of the state lottery are credited to the debt service fund along with unrestricted reimbursements of health care costs from the federal government and nonstate sources. The proposal specifies that the bonds are not public debt, and the full faith, credit and taxing powers of the state are not pledged for their payment. The proposal also establishes a revolving account for regional treatment programs and requires that unrestricted money received from the federal government and other nonstate sources for health care costs incurred at regional treatment centers and other state facilities be credited to a separate fund for the debt service. Finally, the proposal requires that if a debt subject to revenue recapture is based on an overpayment of assistance the claimant agency must notify the commissioner when the time period for collecting the debt has expired and must send annual notices to the debtor. Tax bill assembled The Taxes and Tax Laws Subcommittee on Property Tax met Mon., Apr. 10, to assemble the remaining portions of the omnibus tax bill. Members, chaired by Sen. John Hottinger (DFL-Mankato), considered articles dealing with property taxes, the property tax freeze, economic development and tax increment financing, property tax refunds, taconite taxes, and miscellaneous tax provisions. The subcommittee adopted the articles for inclusion in the omnibus tax bill. Debate centered primarily on the article dealing with property taxes. Sen. Steven Novak (DFL-New Brighton) offered an amendment to lower the tax rate for seasonal and recreational property. Novak said that the amendment was an attempt to address an inequity in that the tax rate for seasonal and recreational property was substantially higher than for nearby residential property. Sen. Douglas Johnson (DFL-Cook) argued against the amendment because the lowering of the rate for one classification would cause the burden to shift to another classification. Johnson said, "I am very sympathetic to the plight of seasonal and recreational property owners" but adoption of the amendment would make it harder to hold the line on tax increases. The amendment failed on a voice vote. Sen. William Belanger (IR-Bloomington) offered two amendments to the property tax article. The first specifies that if more than 25 percent of an area's tax capacity is seasonal and recreational property, the board of equalization meeting must be held on a Saturday. The amendment was adopted. The second amendment, lowering the penalty for delinquent taxes on seasonal and recreational property from 8 percent to 4 percent, failed to gain approval. Members also considered a lengthy amendment to the property tax freeze article. The amendment, offered by Johnson, was drafted in response to suggestions made by representatives of county governments. The amendment makes changes, within the context of the property tax freeze, that will result in savings to county governments and the taxpayers without severely affecting services provided by the counties. The amendment changes the date by which specific reports are due, alters provisions dealing with maintenance of efforts for child care and chemical dependency, changes some publications requirements, suspends county attorney and sheriffs salary and budget appeal processes, eliminates truth in taxation hearings, freezes local match requirements and delays new unfunded mandates including increases in tort liability. The last provision dealing with tort liability limits was deleted after considerable discussion. The remainder of the amendment was adopted on a voice vote. Omnibus tax bill approved Members of the Taxes and Tax Laws Committee, chaired by Sen. Douglas Johnson (DFL-Cook), devoted the Tues., Apr. 11, hearing to discussion of the omnibus tax bill. S.F. 1123, carried by Johnson, is the product of work by the committee's two subcommittees. The measure, which includes the property tax freeze approved by the Senate last week, emerged from the subcommittee process with an 40 cent per pack increase in the cigarette tax and a reduction in the health care provider tax earmarked for MinnesotaCare. After hearing an explanation of the bill, members began the process of considering amendments to the measure. One of the first amendments, offered by Sen. Steven Novak (DFL-New Brighton), removes the provisions increasing the tobacco tax and reducing the health care provider tax. Johnson, who had opposed the tobacco tax increase, strongly supported the amendment. The amendment was adopted on a voice vote. Novak also offered an amendment to reduce the tax rate on seasonal and recreational property. Johnson argued against the amendment saying that the reduction would cause a shift onto other property classifications. Novak countered that the reduction provides more equity in the property tax system. Members voted to adopt the amendment on a close voice vote. Later, Sen. Sandra Pappas (DFL-St. Paul), moved to reconsider the amendment. The motion was successful and the amendment was again before the panel. Johnson said that the amendment had severe financial implications for other classes of property and should not be adopted. A roll call vote was requested and the amendment failed to be adopted 5-10. Members also approved an amendment reducing the penalty, from 8 to 4 percent, on delinquent taxes for seasonal and recreational property. The amendment was offered by Sen. William Belanger (IR-Bloomington). Members also adopted a portion of an amendment offered by Sen. Steve Dille (IR-Dassel). The amendment specifies that veterinarian supplies used to treat agricultural production animals and horses are exempt from the sales tax. Sen. Gen Olson (IR-Minnetrista) offered an amendment to provide for a "taxpayers filing credit." Under the amendment, married couples filing a tax return would receive a $62 credit and a single person file a tax return would receive a $31 credit. Olson said the amendment was an attempt to return $91 million to the taxpayers. Olson said the funds were overlooked because of an accounting error and should be refunded to taxpayers. Johnson disputed the amount and said that at least $25 million of the total has been described as the amount of interest on the $220 million rainy day fund--that has not been established--available at the end of the biennium. The amendment failed on a 5-16 roll call vote. An amendment, offered by Dille, to allow the city of Hutchinson to impose a sales, liquor and restaurant tax to be used for civic improvements, also failed to gain approval. The bill was approved on a voice vote and sent to the full Senate. Transportation and Public Transit Final bills considered Members of the Transportation and Public Transit Committee, chaired by Sen. Florian Chmielewski (DFL-Sturgeon Lake), considered two bills at its last policy meeting of the session held Fri., Apr. 7. Members reconsidered and approved a bill that had been tabled in a previous meeting. The bill, authored by Sen. Arlene Lesewski (IR-Marshall), had contained several traffic provisions, but the author offered an amendment to delete most of the sections. The remaining provision, largely noncontroversial, removed a requirement for speed limit signs at the beginning and end of a highway construction zone. Members spent considerable time discussing an amendment offered by Sen. Paula Hanson (DFL-Ham Lake) exempting new or existing freeways from noise barrier requirements. The provision also directs the Dept. of Transportation to implement a noise abatement study contingent on the availability of funding. Sen. Jane Ranum (DFL-Mpls.) objected to the amendment, saying the provision was too vague and that the public was not notified. "This takes away the people's rights to participate in the hearing process," she said. "This is big government." Merritt Linzie of the DOT said the state has "maybe been too aggressive" in its noise barrier requirements. The department most likely will continue noise abatement measures on the noisiest individual projects, he said. He added that most states do not have noise standards on traffic. The committee approved the amendment and advanced the bill to the Senate floor. Members rejected a bill prohibiting a person from operating a commercial vehicle on a limited drivers license after revocation or suspension. S.F. 35, authored by Sen. Gene Merriam (DFL-Coon Rapids), does not allow driving a commercial vehicle for various time periods depending upon the offense. Most members agreed with the notion of zero-tolerance for drinking and driving, however many believed the provision was too strong since it could result in the loss of a job for first-time DUI offenses. The bill failed on a 9-2 roll-call vote. Monday, April 10 Helmet proposal defeated The floor session Mon., Apr. 10, was devoted to processing bills on the Special Orders Calendar. A bill designated a Special Order is explained by the author, amendments may be offered and the bill is given a third reading and placed on final passage. Bills on Special Orders speed up the process because they bypass the Committee of the Whole and do not have to be put on the Senate Calendar and lie over one day. The Senators granted final passage to 14 bills on Special Orders and one bill on the Consent Calendar. A bill, H.F. 568, authored by Sen. Terry Johnston (IR-Prior Lake), requiring adult motorcycle riders to wear protective eyewear sparked considerable debate when an amendment was offered to require all motorcycle riders to wear helmets. Current law requires motorcycle riders under the age of 18 to wear helmets. The amendment, offered by Sen. Sandra Pappas (DFL-St. Paul), removes the age limitation so that all riders would be required to wear helmets. Pappas said she sponsored the amendment because of "the tremendous cost of caring for individuals who were not wearing helmets and who have been injured in motorcycle accidents." Johnston argued against the amendment and said that "the [motorcycle] safety education efforts have eliminated more accidents and prevented more injuries than helmets ever did." In addition, Johnston said that the amendment derails the original bill and the eye safety issue would go unresolved. Sen. Joe Bertram, Sr. (DFL-Paynesville) also argued against the bill. "I am concerned that a lot of the groups that would like to testify didn't have an opportunity to speak on this bill," Bertram said. The amendment was defeated on a 9-55 roll call vote. The bill was then approved 66-0. Tuesday, April 11 Manager check bill passed Apartment building owners will be required to request criminal background checks on their managers and prospective managers under a bill passed Tues., Apr. 11, by the full Senate. A proposal to prevent health insurers from using genetic tests to make underwriting decisions was also granted final passage on Special Orders. S.F. 98 requires owners of residential rental buildings to request criminal background checks on the managers of their buildings. The bill, sponsored by Sen. Gene Merriam (DFL-Coon Rapids), also specifies that if those background checks reveal the managers have been convicted of a number of felony-level crimes, they are to be released. Merriam said the bill will take effect on Aug. 1, 1995 and apartment building owners will have up to one year to conduct the checks on current managers. Provisions for notification of an individual's rights are also included in the bill. Merriam said the proposal comes from a 1994 incident, where a New Brighton women was killed by the manager of her apartment building. "We're talking about people who are given keys and access to people's homes," he said. But several members raised concerns about the proposal. Sen. Sheila Kiscaden (IR-Rochester) said the bill takes a broad- brush approached by limiting employment opportunities of those who may have been convicted of a crime but are now rehabilitated. "Do we, as a society, believe people can be rehabilitated, and if so, do we believe that they should be barred from opportunities for further employment?" she said. Sen. Harold "Skip" Finn (DFL-Cass Lake) said instead of placing mandates on apartment owners, "we ought to approach it that landlords are going to be responsible." "We ought to open up the system and make [background checks] available to them," he said. Merriam said some apartment owners already conduct background checks. The bill, he added, attempts to strike a balance between the safety of tenants and placing a requirement on apartment owners. The measure was passed by a 60-4 roll call vote. S.F. 259, also sponsored by Merriam, regulates the use of genetic testing by insurers. The bill, he explained, provides that health insurers cannot require an individual to undergo genetic testing before being insured. The measure also requires life insurance companies to get written consent from an individual before the use of genetic testing can proceed as part of the underwriting process. Sen. Kevin Chandler (DFL-White Bear Lake) offered an amendment to prohibit life insurance companies from using genetic testing as the basis for underwriting policies in amounts up to $100,000. Chandler argued that companies could deny life insurance if the tests indicate the potential for a person to carry certain genetic diseases. "We shouldn't allow companies to deny insurance based on a probability," he said. Sen. Cal Larson (IR-Fergus Falls) was among those who spoke against the amendment. Larson argued the proposal would have the effect of driving up the costs for all insurers. But Merriam said, the amendment limits the amount of insurance that is exempt. "This is drawn at such a basic level, what we're saying is that (life insurance) is a basic right," he said. The amendment was rejected, 15-50. S.F. 259 was then passed, 62-2. Floor action Conference committee reports adopted and repassed, April 10, 1995 S.F. 335-Frederickson: Deficiency appropriations. Bills given final passage on Special Orders, April 10, 1995 S.F. 566-Vickerman: Allows the residential program operated by Independent School District No. 518 to remain open until June 1, 1996. 62-2 H.F. 1363-Vickerman: Modifies provisions relating to drug dispensing by allowing pharmacies to fill prescriptions from doctors in bordering states. 62-0 H.F. 568-Johnston: Requiring adult motorcycle riders to wear eye protection devices. 65-0 H.F. 670-Morse: Authorizes Winona County to negotiate and enter into a contract for deed with the Winona County Development Achievement Center. 64-0 H.F. 457-Solon: Department of Commerce omnibus banking bill. 65-0 H.F. 782-Solon: Providing for compliance with requirements of the Internal Revenue Code relating to the Western Lake Superior Sanitary District. 65-1 H.F. 150-Solon: Extends the maximum length of a temporary on-sale liquor license from three to four days and permits a municipality to issue three temporary on-sale licenses but places no limit on 3.2 beer licenses. 63-0 H.F. 228-Piper: Reinstates specific advisory councils. 58-5 H.F. 226-Piper: Requires the reports of malpractice insurance settlements made to the Board of Medical Practice to include the names of the provider against whom the claim was made and the circumstance of the settlement. 61-3 H.F. 715-Janezich: Provides for a damage award to an affected property owner when a town board adopts a recorded town road map. 63-0 H.F. 216-Janezich: Changes the definition of fleet, from 1,000 to 100, for vehicle registration purposes. 64-0 H.F. 612-Sams: Requires equal treatment of rpescription drug prescribers. 63-0 S.F. 1088-Krentz: Limits frivolous lawsuits filed by inmates of correctional institutions. 64-0 H.F. 544-Krentz: Requires the state court administrator to prepare a guide to informal probate. 61-0 Bills granted final passage on the Consent Calendar, April 10, 1995 H.F. 1065-Chmielewski: Modifies accounting and expenditure requirements for road and bridge fund tax money derived from unorganized townships in St. Louis County. 65-0 Bills granted concurrence and repassage April 11, 1995 S.F. 204-Chandler: Requires reporting on and analysis of federal mandates imposed on state agencies. 56-0 Bills granted final passage on the Consent Calendar April 11, 1995 S.F. 1112-Ourada: Authorizes Sherburne County to convey specific county ditches to the city of Elk River. 60-0 S.F. 375-Lessard: Adding pumped hydropower to the list of preferred alternative energy sources and provides for incentive payments to pumped hydropower facilities. 62-0 Bills granted final passage on Special Orders April 11, 1995 H.F. 859-Flynn: Authorizes the city of Minnepolis to determine the method for the sale of unclaimed property. 63-0 S.F. 1144-Flynn: Authorizes the Minneapolis City Council to delegate to the city engineer authority over traffic and parking and authorizing the council to delegate authority to contract for professional services. 63-0 S.F. 98-Merriam: Requires owners of residential rental buildings to request criminal background checks of managers and prohibiting owners from hiring or continuing to employ certain individuals as managers. 60-4 H.F. 957-Vickerman: A resolution memorializing the President and Congress to abandon the proposed sal of the western Area Power Administration. 64-0 S.F. 259-Merriam: Regulates the use of genetic testing by insurers. 62-2 S.F. 1343-Merriam: Provides for biennial license renewal for individual certified and licensed public accountants. 65-0 H.F. 823-Mondale: Authorizes Hennepin County to lease hospital or nursing home facilities under certain conditions. 65-0 H.F. 413-Samuelson: Designates and renames three highways. 64-0 Bills granted concurrence and repassage April 12, 1995 S.F. 1055-Piper: Exempts certain social workers from the requirement to obtain home care provider license and exempts some social workers employed in a hospital or nursing home from examination. 62-0 Bills granted final passage on the Consent Calendar April 12, 1995 H.F. 1091-Hottinger: Prohibits the sales of cosmetics, baby formula and over the counter drugs at flea markets and presecribes penalties. 63-0 H.F. 1307-Hottinger: Permits use of drivers license numbers as identification required on ice fishing shelters. 64-0 Bills granted final passage on Special Orders April 12, 1995 S.F. 1536-Langseth: Omnibus transportation and transit funding bill. 49-17 H.F. 602-Johnson: (amended to contain the provisions of S.F. 1123) Omnibus tax bill. Preview meetings scheduled for the week of April 17 - 21 Monday, April 17 No meetings scheduled. Tuesday, April 18 Crime Prevention Finance Division Chair: Sen. Tracy Beckman Time and place to be announced. Agenda: S.F. 1653-Beckman: Crime prevention budget bill. The Senate will meet at 12 noon. Wednesday, April 19 Commerce and Consumer Protection Committee Chair: Sen. Sam Solon 2 p.m. Room 112 Capitol Agenda: S.F. 410-Marty: Prescription Drug Fair Competition Act. Joint House and Senate Subcommittee on Claims Co-Chairs: Sen. Randy Kelly and Rep. Edgar Olson 6 p.m. Room 500S SOB Agenda: Injury claims against the Dept. of Corrections. Discussion on Dickman et. al. vs. Dept. of Corrections. Property claims against the Dept. of Corrections. Discussion on the MCF- Stillwater property room issue. Thursday, April 20 Rules and Administration Committee Chair: Sen. Roger Moe 8 a.m. Room 15 Capitol Agenda: H.F. 22-Stevens: Resolution for restoration of checks and balances between states and the federal government. Tax and Tax Laws Committee Chair: Sen. Douglas Johnson 4 p.m. Room 15 Capitol Agenda: S.F. 1376-Reichgott Junge: Board of Government Innovation and Cooperation pilot project for aid distribution councils. S.F. 1392-Pappas: Property tax reform commission. S.F. 1505-Novak: Adjusting property tax rates; limiting property tax rates to statutory rates. S.F. 1556-Hottinger: Constitutional amendment to dedicate sales tax for property tax relief; levy limits. S.F. 1557-Hottinger: Redirect state-paid property tax relief; reduce class rate on agricultural property; industrial property tax credit. S.F. 1568-Novak: Tax and budget reform proposal. Friday, April 21 No meetings scheduled. Compiled by: Senate Publications Room G95, State Office Building St. Paul, MN 55155 (612)296-0259 TDD 296-0250 ****Rough edit of April 13, 1995***