HF3106-HF3141STADIUM PROPOSAL HEARD, BIOFIBER, AND MORE

In this issue:

STEM CELL RESEARCH

MARCH 26, 2004VOLUME 21, NUMBER 8

2 March 26, 2004

CONTENTSHIGHLIGHTS

FEATURES

DEPARTMENTS/RESOURCES

Agriculture • 5Arts • 6Bonding • 6Consumers • 6Crime • 7Education • 7Employment • 9

Energy • 10Environment • 10Family • 12Game & Fish • 13Government • 14Health • 14Higher Education • 16

AT ISSUE: AGRICULTURE — Lawmakers heard information regardingemerging markets for biofiber products in the state. • 21

AT ISSUE: RECREATION — A proposal to build stadiums for both the Minne-sota Twins and Minnesota Vikings received its first committee hearing. • 22

It’s A Fact: Separation of powers • 4The 50 states: Renewing a rivalry • 20

Bill Introductions (HF3106 -HF3141) • 23Minnesota Index: The Great

Minnesota Get-Together • 24

On the cover: Visitors to the State Capitol enjoyed the bright spring weather March 22. The week wasa busy one at the Capitol with thousands of visitors rallying for or against a number of issues.

—Photo by Lisa Marie Sanders

Insurance • 16Local Government • 17Metro Affairs • 17Recreation • 17Safety • 18Transportation • 19

SESSIONWeekly

Session Weekly is a nonpartisanpublication of the Minnesota House ofRepresentatives Public InformationServices. During the 2003-2004 LegislativeSession, each issue reports daily House ac-tion between Thursdays of each week, listsbill introductions and upcoming commit-tee meeting schedules, and provides otherinformation. The publication is a service ofthe Minnesota House. No fee.

To subscribe, contact:Minnesota House of RepresentativesPublic Information Services175 State Office BuildingSt. Paul, MN 55155-1298(651) 296-2146 or1-800-657-3550TTY (651) 296-9896

DirectorBarry LaGrave

Editor/Assistant DirectorMichelle Kibiger

Assistant EditorMike Cook

Art & Production CoordinatorPaul Battaglia

WritersMiranda Bryant, Patty Janovec,Tom Lonergan, Mary Kay Watson,Nicole Wood

Chief PhotographerTom Olmscheid

PhotographersAndrew VonBank, Lisa Marie Sanders

Staff AssistantsChristy Novak, Aaron Hoffman

Session Weekly (ISSN 1049-8176) is publishedweekly during the legislative session by theMinnesota House of Representatives PublicInformation Services, 175 State Office Building,St. Paul, MN 55155-1298. Periodicals postagepaid at St. Paul, MN, and at additional mailingoffices. POSTMASTER: Send address changes toSession Weekly, Public InformationServices, Minnesota House of Representatives,175 State Office Building, St. Paul,MN 55155-1298.

Printed on recycled paper which is 50% recycled,30% post-consumer content.

Session Weekly 3

FIRST READING★ ★ ★

BY MIKE COOK

Scientists at the University of Minnesota areperforming research that some say couldbe a scientific breakthrough to combat dis-

ease, while others have expressed legal, ethi-cal, and moral issues over the work.

“The possibilities are only limited by ourimagination and the amount of scientific workwe are willing and able to perform,” said Dr.Frank Cerra, senior vice president for healthsciences at the university. He and Dr. JohnWagner, scientific director of clinical researchat the university’s Stem Cell Institute, pre-sented an overview of the university’s researchwith adult stem cells and its plans for embry-onic stem cell research to the House HigherEducation Finance Committee March 22.

Proponents say research is necessary to dis-cover ways to alleviate chronic problems suchas heart disease, Parkinson’s disease, and dia-betes. The university opposes using this typeof science for human cloning.

However, opponents caution that the uni-versity should stay within the bounds of fed-erally approved stem-cell research andotherwise proceed with caution in using thehuman tissue for experimentation.

Bills reflecting both sides of the issue havebeen introduced this year, but only one hasreceived a formal hearing.

Cerra said the university is a leader in cellu-lar biology research, and that it has recentlyhired many top stem cell researchers. A May2003 publication said the school has investedapproximately $15 million in the Stem CellInstitute, but Cerra indicated the investmenthas exceeded that number.

In February the university finalized policiesto allow researchers to use private dollars toexplore human embryo research beyond thosestem cell lines approved by the federal govern-ment in 2001.

Fewer than 10 narrow lines of embryonicstem cells are eligible for federal dollars, al-though none are optimal for clinical use, inpart, because they have a limited shelf life,Cerra said, and they were developed on mousecells so you can’t put them in humans.

Bane or breakthrough?Embryonic stem cell research creates optimism amongscientists, skepticism and caution among others

According to a university fact sheet, stem cells,generally derived from bone marrow, exist pri-marily to maintain and repair areas of the cellswhere they are found, but embryonic cells havethe potential to become any cell type in the body.

Embryonic stem cells come from 4- and5-day-old embryos that have never been andnever will be implanted in anyone, Cerra said.“These are not fetuses. They are not babies.They come from acluster of 50-100cells that are undif-ferentiated and areno larger than thecross-section of ahuman hair.”

Those used at theuniversity comefrom people usingthe services of a fer-tility clinic whochose to donate,rather than discardor save theembryos.

Research needsto be conducted inboth adult and em-bryonic areas, wit-nesses said, becausescientists do notknow which cellwill be best forclinical use andwhether lessonslearned from onesystem could be ap-plied to the other.

Wagner said thatultimately a combi-nation of embryonic stem cells and knowledgeof the human genome could offer apreemptive strike against many diseases.

“Right now, the embryonic stem cell re-mains the gold standard by which we compareeverything and it is for this reason we mustexplore both,” he said. “Over time there is hopewe will be able to figure out the right culture

conditions that will allow us to do it with adultstem cells. As of today this can only be donewith embryonic stem cells.”

Recent scientific discoveries also assist in thisarea, Wagner said.

“What we’ve learned over the past five yearsis how to better understand the genetics ofindividuals and how we might be able to usethat information not only to help patients witha variety of diseases, but also to predict theirfuture. Now we have information that will tellme what’s going to happen to each individualin this room that will predict their lifespan andwhat kind of diseases they might come across.”

Wagner said the university has already devel-oped the methodology for running a pre-

emptive strikeagainst a geneticpredisposition todisease. The institu-tion is now per-forming validationruns “so that we canbegin to do this forpatients by the endof 2004, early-2005.We believe that 2005will be a big mo-ment not only in theUniversity ofMinnesota’s history,but also the historyof medicine ingeneral.”

He said that hehas spoken with theFood and DrugAdminis t rat ionabout adult and em-bryonic stem cell re-search and they are“remarkably behindwhat we are doingbecause there is suchpublic pressure tomove this forward.”

Rep. GenePelowski, Jr. (DFL-Winona) noted that the fi-nancial gains to the university by its findingshave enormous potential.

Cerra said it is hard to give actual numbers,but a $1.5 million investment was made in genetechnology three years ago. “Within three yearswe recovered $20 million of new National Insti-tutes of Health grants we would not have had

PHOTO BY ANDREW VONBANK

Dr. John Wagner, scientific director of clinical researchat the University of Minnesota’s Stem Cell Institute, pre-sents an overview on the university’s research to theHouse Higher Education Finance Committee March 22.

4 March 26, 2004

Separation of powersLegislature questions its role and that of courts in deciding election contests

Photo courtesy of the Minnesota Historical Society

without that investment.” Other potential in-come would come from patentreceipts. He said a number of private companiesare willing to fund research at the institution.

Added Rep. Ron Latz (DFL-St. Louis Park),“If the university does not pursue this, otherswill and we will fall behind very quickly asother institutions leap ahead of us.”

However, not everyone supports funding forthe research.

The committee took no testimony follow-ing the overview, but a bill (HF2026/SF2129),sponsored by Rep. Tim Wilkin (R-Eagan) andSen. Thomas Neuville (R-Northfield), wouldprovide no state funding for a person or orga-nization doing human embryonic stem cellresearch, other than on federally approvedlines. Both await committee action.

Wilkin said he has not pursued the bill be-cause of an existing state law that forbids theuse of a living “human conceptus” for scien-tific research, which includes any human or-ganism, conceived either in the human bodyor produced in an artificial environment otherthan the human body, from fertilizationthrough the first 265 days thereafter.

However, Cerra said that the university’sgeneral counsel has been working with the lawsince its passage in 1973 and has the opinionthat the institution is well within its bounds.

Others against the research are groups andpeople who decry the use of embryos in researchand who purport that life begins at conception.

To aid the research, a bill (HF2049/SF2077),sponsored by Rep. Phyllis Kahn (DFL-Mpls)and Sen. Steve Kelley (DFL-Hopkins), wouldestablish a state policy for stem cell researchand provide for informed consent of patientsundergoing treatment for infertility. It awaitscommittee action in the House and awaits ac-tion by a second Senate committee.

“Treatment and lost productivity costs thiscountry billions of dollars every year and weare reaching almost epidemic proportions ofdiabetes diagnoses, especially in children,”Kelley said. “There is hope if we make the com-mitment to encourage stem cell research thatalso offers options to people undergoing in-fertility treatments. A specific state policyheads us in the right direction.”

The Minnesota House appointed a specialsubcommittee to examine fair campaignpractices and procedures for contesting elec-tions following the 1969 session. Two particu-larly bitter contests resulted in investigationsby the House Elections and ReapportionmentCommittee, and a resolution passed by theHouse requested that the committee appointa subcommittee to study election practicesand legal regulations in other states.

At the heart of members’ concerns was theseparation of powers between the legislativeand judicial branches,with regard to whoshould determine thelegality of campaignpractices. Up to thatpoint, according tothe subcommittee’sreport, the state reliedon a constitutionalprovision giving theHouse and the Senate jurisdiction over theirrespective contests.

There was also concern that when indi-viduals would contest an election, it couldtake months to resolve the dispute, longafter the election was certified and the leg-islative session began.

“Legislative election contests presentsome of the most difficult questions foranalysis of government,” said the report. “Atonce, delicate questions of constitutionallaw, legislative procedure, and political factmust be considered; and furthermore, itwill not be clear in any individual case whatconsiderations ought to prevail.”

The subcommittee’s report noted thatthe federal corrupt practices law, whichserved as an impetus for individual statesto develop their own laws regarding cam-paign practices and elections, was notablyambiguous with regard to who should over-see contested elections.

“It is unclear under the separation of pow-ers doctrine as to what extent elements of thisdetermination can be delegated to the courts,”the report said of the federal law.

A few proceedings were delegated to thecourts, such as appointing election officersand conducting recounts. In addition, an in-dividual who wished to contest a particularelection would file the appropriatepetition with the court, and then the court

Clarification

A story in the March 19 issue of Session Weeklysuggested a bill regarding credit cards may beincluded in the House Commerce, Jobs, andEconomic Development Policy’s omnibus bill.The committee has no plan for an omnibuspolicy bill this year, and the hearing on the billwas intended to be informational.We apologize for any inconvenience.

would determine who had received morevotes. The court could take evidence and sub-mit a transcript to the Legislature. The judgewas forbidden from making a finding orconclusion.

The actual certificate of election could not begranted until enough time had been allowed forappeal or that appeal had been waived. How-ever, in one of the contested 1969 cases, the sub-ject of contest was issued his election certificateprior to the court proceeding.

The subcommittee suggested the Legis-lature had twochoices with regardto the role of thecourts: further limitthe courts’ role andremove existing ju-risdiction or give thecourt the responsi-bility for factfindingand recommending

legislative action.A bill largely to that effect was introduced

during the 1969 session but did not pass.And the subcommittee report had quite abit to say about the potential problems withthe proposal.

“The foremost problem lies with the pro-vision for a report with recommendationfrom the court. First, to determine qualifica-tions of members of the Legislature is clearlyunconstitutional under separation of powers.If the report is intended to only be in sub-stance suggestive, then it must be borne inmind that our supreme court has consistentlyrefused to issue advisory opinions. Secondly,the recommendations are to be submitted bya panel of three district court judges who holdelective positions in the same district, whichvoted upon the candidates involved in thecontest. ... The district court judges wouldsurely avoid any possibility of sustaining un-necessary public antagonism.”

In 1971, courts were given authority todecide contested races and invalidate elec-tion certificates, with the caveat that thepower should in no way be construed as alimit on the Legislature’s constitutionalpower to judge election returns and the eli-gibility of members.

(M. KIBIGER)

The state canvassing board reviews electionreturns in 1970.

Session Weekly 5

M A R C H 1 8 - 2 5 , 2 0 0 4HIGHLIGHTS★ ★ ★

AGRICULTURE★

Ethanol plant ownershipDisclosure of a Minnesota farmers’ share in

ethanol plant ownership would no longer berequired under a proposal that was includedin the House Agriculture and Rural Develop-ment Finance Committee’s omnibus bill(HF2755).

Under HF1766, sponsored by Rep. GregoryDavids (R-Preston) and heard by the committeeMarch 18, ownership disclosure reports, requiredby the 2003 Legislature, would continue to befiled with the state Department of Agriculturebut would not be linked to the quarterly pay-ment of state ethanol production credits.

The Legislature enacted the requirementinto law last session in response to the sale ofa Marshall ethanol plant to a majority of non-state interests.

Ethanol producers, some of whom refusedto submit ownership disclosure to the state,wanted the requirement repealed.

“This is a reasonable compromise,” saidDavids.

The bill would provide for payment of the13 cents per gallon state credit to producersdenied payment for not meeting the owner-ship and reporting requirements. The quar-terly payment to a producer is capped at$750,000.

Paul Strandberg, a department project man-ager, said the bill was a compromise betweenthe state, corn growers, and ethanol plants. Hesaid one plant of the approximately dozenplants that receive the state production creditmissed payments for not complying with thelaw, which was effective with the first quar-terly payment in fiscal year 2004.

The plants would continue to provide own-ership information on an annual basis.

A number of ethanol plant representativestestified in support of the bill.

“Yes, we all like local ownership,” said BradNelson, a board member of the Exol plant inGlenville. “But economic factors and decisionsforce us to do things we don’t like to do. TheMarshall plant is still here. So is its tax baseand employment.”

A state requirement, which the bill wouldrepeal, links payment of the producer creditto ethanol plants with “greater than 40 per-cent farmer ownership.”

David Kolsrud, manager of Agri-Energy inLuverne, said his plant had no problem with thestate law. “It was not an issue in our situation,”he said, since the plant is “100 percent farmerowned. I hope the bill is not a beginning of apath away from local ownership of plants.”

A companion bill (SF1766), sponsored bySen. Jim Vickerman (DFL-Tracy), awaits com-mittee action.

Dairy farmer assistanceA new loan program to help dairy farmers

purchase breeding stock, make environmen-tal improvements, or upgrade facilities is in-cluded in the House Agriculture and RuralDevelopment Finance Committee’s omnibusbill (HF2755).

HF2894, sponsored by Rep. Greg Blaine (R-Little Falls), would establish the pilot loan pro-gram in the Department of Agriculture’s RuralFinance Authority.

“The bill is not size-oriented,” Blaine toldthe committee March 23. “It does not favorlarge farmers over small.”

The bill proposes to merge unused funds intwo authority loan programs to provide$1.2 million for a revolving loan account fordairy improvement and upgrades. The loanpool is financed by the state general fund.

Value-added agricultural product andmethane digester loans would continue to befunded by the same account as the proposeddairy upgrade loans.

Wayne Marzolf, interim agricultural financedirector, said authority financed shares of the10-year loans would be limited to a $50,000maximum. The state share would represent nomore than 45 percent of total loan principalup to $110,000.

Marzolf said a private lender would initiatethe loans. Interest on loans made before July1, 2006 must not exceed 4 percent, accordingto the bill.

Unlike other authority loan programs, ap-plicants for dairy upgrade loans would nothave to meet a net worth requirement. Theloan would be secured by a borrower’s per-sonal note. The initial application fee wouldbe $50.

“This fund should have $10 million in cash,”said Rep. Al Juhnke (DFL-Willmar). “Butthere’s not enough money this year.”

Bob Lefebvre, executive director of the Min-nesota Milk Producers Association, testified insupport of the bill. “This will not necessarilycure the industry,” he said. “We need a dairyinvestment fund.”

A companion bill (SF2730), sponsored bySen. Jim Vickerman (DFL-Tracy), awaits com-mittee action.

Funding farmersSeveral lending programs for farmers would

receive more state money, under a bill heardMarch 23 by the House Capital InvestmentCommittee.

Sponsored by Rep. Jeff Anderson (R-Austin), HF2267 would increase the maxi-mum dollar amount of state bonds for mostof the loan programs offered by the Minne-sota Rural Finance Authority.

Anderson said the authority has helpedmore than 2,000 small and beginning farmerssince its inception in 1986. Loan programsinclude those for beginning farmers, and thoseaddressing agricultural improvement, live-stock expansion, agricultural product stock, aswell as restructuring loans.

State general obligation bonds support theprograms. The state participates with locallenders when making the loans to eligiblefarmers.

In recent years, the maximum state participa-tion amount has been 45 percent of the princi-pal amount, or $125,000, whichever is less. Thebill would increase the state cap to $200,000.

Increasing the state participation levelwould make the program available to morefarmers, Anderson said.

Wayne Marzolf, interim finance director forthe Department of Agriculture, said the agencyis requesting $18 million in bonds for the nexttwo years. Applications are granted on a first-come, first-served basis. Officials expect farm-ers, through the proposed increase in stateparticipation, would request an additional$2.7 million in loans, he said.

If loan requests surpass projections, the de-partment will ask for an additional appropria-tion next year, Marzolf said. A larger amountis not being sought now, he said, because thereis a four-year limitation on the money.

Default rates among program participantsare low, Anderson said in response to a ques-tion from Rep. Rob Eastlund (R-Isanti). Thebanks, which are responsible for lending 55percent of the loan, do credit checks prior tolending money.

When a default does occur, the bank handlesthe paperwork and any subsequent sale of realestate to cover the outstanding debt, Marzolfsaid. In such cases, the state is not forgivingthe loans; rather, it is being paid in full.

The bill will be considered for inclusion in thecommittee’s omnibus bill. A Senate companion(SF2323), sponsored by Sen. David Hann(R-Eden Prairie), awaits committee action.

6 March 26, 2004

LLLLLADADADADADYYYYY INININININ WWWWWAITINGAITINGAITINGAITINGAITING

Helen Derechin, 7, of Minneapolis patientlywaits in the audience as her mother BeatriceRothweiler testifies before the House Gov-ernmental Operations and Veterans AffairsPolicy Committee March 24.

PHOTO BY ANDREW VONBANK

CONSUMERS★

ARTS★

BONDING★

Theater ownership, no bond payoffA transfer of the historic Paramount The-

ater in St. Cloud to the city would be facili-tated, under a bill heard March 23 by theHouse Capital Investment Committee.

The St. Cloud Housing and RedevelopmentAuthority currently owns the theater. However,the city desires to take over its ownership, butin doing so wants the state to waive $750,000in outstanding bond proceeds given to the the-ater by the 1998 Legislature.

HF3105, sponsored by Rep. Jim Knoblach(R-St. Cloud), would do just that.

The city determined that, due to the subsi-dies it provides to the theater, it would be moreeconomical for it to own the Paramount out-right, Knoblach said. However, state law re-quires that state bonds be paid off when abond-financed property is transferred.

Knoblach said he wants the amount to beforgiven entirely because the nature of thetheater’s operations would not change underthe transfer, and because the transfer is occur-ring between two civil entities.

“It’s a beautiful, wonderful theater,” he said,adding that $750,000 was a fraction of the$5 million renovation cost.

City Administrator Michael Williams saidthe city has been paying the improvement debt,as well as annual operating costs for the the-ater. The motive for taking over the theater’sownership is to “get our arms around” thosesubsidies, he added.

The housing and redevelopment authorityhas operated the theater since its renovationin 1997. The Paramount Art Resource Trust iscontracted by the city to handle the functionsand events at the Paramount, Williams said.

The bill will be considered for inclusion inthe committee’s omnibus bill. It has no Senatecompanion.

Historical site fundingThe House Jobs and Economic Development

Finance Committee considered a bill March 23that would appropriate more than half a milliondollars for the Minnesota Historical Society tokeep open several historical sites statewidethrough fiscal year 2005.

Sponsored by Rep. Marty Seifert(R-Marshall), HF2945 would allocate$588,000 for the operation of the Kelley Farm,James J. Hill House, Lower Sioux Agency, FortRidgely, Historic Forestville, the Forest HistoryCenter, and the Comstock House.

The committee included the request in its

omnibus bill March 25. The funds are not in thegovernor’s bonding recommendations.

With “only so many pancake feeds,” to raiselocal funds, Seifert said, donations can’t continueto keep funneling in for support of the sites.

The one-time funds would be a “Band-Aid”during these challenging budget cut times, saidNina Archabal, director of the Minnesota His-torical Society. Last year’s budget reductionsaffected 240 society employees, said Archabal,and without the funding additional cuts couldmean the reduction of historical sites.

Rep. Tony Sertich (DFL-Chisholm) asked thecommittee chair, Rep. Bob Gunther(R-Fairmont), how the request would be con-sidered by the committee when the governor hasrecommended a 3 percent cut to all state agen-cies as a way to alleviate the state’s budget short-fall.

The governor has recommended a 3 percentcut for the historical society, which gets abouttwo-thirds of its budget from the general fund.It is a quasi-state agency, governed by a sepa-rate board.

Gunther said, “We’re going to try to make itwork.”

A Senate companion (SF2922), sponsoredby Sen. John Hottinger (DFL-St. Peter), awaitscommittee action.

Foreclosure consultant penaltiesScam artists convicted for preying on people

threatened with home foreclosure would con-tinue to face fines and a prison sentence fol-lowing the March 19 failure of an amendment.

Offered by Rep. Eric Lipman (R-Lake Elmo)to the House Civil Law Committee, theamendment would have removed fromHF2095 provisions stating that violators couldbe fined up to $10,000 and sentenced to prisonfor up to one year.

“I think the criminal penalties go a step toofar,” Lipman said, adding that the high fine is dis-proportionate to other consumer protectionlaws.

Sponsored by Rep. Andrew Westerberg(R-Blaine), the bill would regulate foreclosureconsultants and equity purchasers and provideremedies for homeowners. It has been the sub-ject of considerable discussion before severalHouse committees. Lipman himself offered 10amendments to the bill, five successfully, andthree were ultimately withdrawn.

In a practice known as “equity stripping,”disreputable foreclosure consultants and eq-uity purchasers target people whose homes arein mortgage foreclosure. They promise to findfinancing to help people stay in their homes.In practice, they keep people waiting until theyhave no other option, thereby increasing thelikelihood that the homeowner will sign overtheir home and its equity.

Ultimately, the scammer owns the home,evicts the previous homeowner, and sells thehouse at a profit, keeping the equity. Commit-tee members and testifiers noted, however, thatnot all foreclosure consultants and equity pur-chasers are disreputable. Some do indeed helphomeowners keep their homes.

In disputed cases, homeowners are allowedto sue in civil court. The process, however, isvery difficult.

In a second approved amendment, languagein the bill was changed regarding how much ahomeowner could be awarded in a successfulcivil suit against a foreclosure consultant. Theoriginal bill would have allowed exemplary dam-ages (beyond those for actual damages, reason-able attorney fees and costs, and appropriateequitable relief) that were at least one-and-a-halftimes the amount the foreclosure consultantcharged the homeowner. The committee madethat amount the maximum award.

The bill now moves to the House floor. ItsSenate companion (SF2412), sponsored bySen. Ellen Anderson (DFL-St. Paul), awaitsaction on the Senate floor.

Session Weekly 7

CRIME★Sex offender registration, notification

Two bills requiring the registration andcommunity notification of two groups of elu-sive, high-risk sex offenders are being includedin the House Judiciary and Policy FinanceCommittee’s omnibus bill.

HF2231, sponsored by Rep. Morrie Lanning(R-Moorhead), aims to ensure that high-risksex offenders moving to Minnesota are sub-ject to risk assessment and community notifi-cation under the Interstate Compact for AdultOffender Supervision, an agreement for track-ing sex offenders between states.

Lanning said 106 registered sex offendershave moved to Minnesota from North Dakota,while only 72 have moved in the opposite di-rection. He suspected the reason was that Min-nesota often doesn’t assess the risk status ofsex offenders moving here and offenders canevade community notification procedures.

The bill requires the Bureau of CriminalApprehension to notify the Department ofCorrections when it learns from a local lawenforcement agency that an out-of-state sexoffender has registered; when another stateinforms the bureau that a sex offender is mov-ing to Minnesota; and when the bureau learnsthat a sex offender from out of state is in Min-nesota but has failed to register.

The notification must contain a finding onwhether the sex offender is subject to commu-nity notification in another state, and theperson’s risk level for re-offending.

Its Senate companion (SF2951), sponsoredby Sen. Thomas Neuville (R-Northfield),awaits committee action.

A separate bill, HF2104, would clarify howhomeless sex offenders must register theirwhereabouts with law enforcement. It is in re-sponse to a 2003 Minnesota Supreme Courtcase that found a homeless sex offender is notrequired to register unless the individual re-sides at a place where mail can be received.

Sponsored by Rep. Steve Strachan(R-Farmington), the bill would require that sexoffenders register with a law enforcementagency within 24 hours of becoming home-less, and continue to make in-person, weeklyreports. A description of the location wherethe person is staying must be provided, withas much specificity as possible.

A Senate companion (SF1911), sponsoredby Sen. Mike McGinn (R-Eagan), has been in-corporated into an omnibus bill (SF1863) andawaits further action.

Selling seized propertyRevenues earned from the sale of property

seized by law enforcement during drug bustsand other arrests would be shared with onemore agency, under a bill approved March 18by the House Judiciary Policy and FinanceCommittee.

HF2976, sponsored by Rep. Steve Strachan(R-Farmington), would allow the Departmentof Corrections Fugitive Apprehension Unit tosell property it seizes during the course of ar-rest. Many other law enforcement agencies arecurrently allowed to seize property used in acrime, and to later sell that property.

However, the bill is very narrowly written,said Cari Gerlicher, corrections investigationsmanager with the department. It would notallow the unit to seize real or rental proper-ties; motor vehicles used in prostitutioncrimes, in the fleeing of police officers, or indrive-by shootings; or any transportation con-veyances (motor vehicles, trailers, snowmo-biles, airplanes, and vessels, as well as attachedequipment) used in drug crimes.

The unit investigates those who have es-caped incarceration or have violated the termsof their release from prison.

Gerlicher said the bill is written narrowlybecause the special unit only pursues Depart-ment of Corrections fugitives. The unit can-not execute search warrants or proactivelyinvestigate crimes outside of its jurisdiction.

Asset seizure revenues benefit other law en-forcement agencies, and the fugitive unitwould also like to receive a portion of the pro-ceeds, she added.

Current law describes the units allowed toparticipate in seizure and forfeiture laws as theBureau of Criminal Apprehension, the Min-nesota State Patrol, county sheriff ’s office, theSuburban Hennepin Regional Park Districtpark rangers, the Department of Natural Re-sources Division of Enforcement, the Univer-sity of Minnesota Police Department, and cityand airport police departments.

The bill now goes to the House Rules andLegislative Administration Committee. A Sen-ate companion (SF2790), sponsored by Sen.Leo Foley (DFL-Coon Rapids), awaits com-mittee action.

Drug possession penaltyThose sentenced for first-time possession of

methamphetamine with the intent to manu-facture would no longer possibly be sent toprison for a minimum of two years, under anamendment approved March 23.

The House Judiciary Policy and FinanceCommittee approved the amendment, spon-sored by Rep. Michael Paymar (DFL-St. Paul),

removing the mandatory minimum sentenc-ing provision from HF1989. The bill itself issponsored by Rep. Doug Fuller (R-Bemidji).

Paymar said no other drug crimes require amandatory minimum sentence for a first of-fense. He indicated that such a provision doesnot allow offenders to make amends and turntheir lives around.

“I grew up in the ’60s and people do stupidthings when they’re young, and I don’t wantto see some 18- (or) 19-year-old whose donesome stupid thing end up in prison for twoyears because Doug Fuller wants to have somemessage going out that he’s tough on crime,”Paymar said. “Excuse me. I mean, let’s have alittle common sense here.”

Fuller said a methamphetamine task forcerecommended the mandatory minimum pro-vision. He added that he supports a manda-tory minimum prison sentence for thoseaccused of manufacturing, and that he recog-nizes a difference between possession andmanufacturing. However, the Paymar amend-ment doesn’t address the differences, he said.

A separate amendment, introduced byFuller and approved by the committee, re-moves criminal penalties for individuals andbusiness owners who exceed retail sales lim-its. The bill, if approved, would prohibit anyperson from selling, in a single transaction,more than three packages or nine grams ofmethamphetamine precursors. Most sub-stances used to “cook” methamphetamine —such as acetone, drain cleaners, batteries, salt,and cold medications containing Ephedrine —can be purchased at any retail store.

The bill originally would have made a vio-lation of the retail sales limit a misdemeanor,subject to 90 days in jail and a maximum$1,000 fine. Fuller said there are many “ma andpa” and convenience stores that would be bet-ter served through a methamphetamine edu-cation program than through jail terms.

HF1989 as amended will be considered forinclusion in the committee’s omnibus bill. Thebill’s Senate companion (SF1580), sponsoredby Sen. Julie Rosen (R-Fairmont), has beenincluded in an omnibus bill (SF1863) andawaits further action.

EDUCATION★

Budgetary adjustmentsProviding $4.5 million for improved

Internet and telecommunications access inrural school districts leads proposed generalfund supplemental budget adjustments for fis-cal year 2005 in the House Education FinanceCommittee’s omnibus finance bill.

The bill (HF3016), sponsored by

8 March 26, 2004

Rep. Alice Seagren (R-Bloomington), andapproved by the committee March 24, nowmoves to the House Taxes Committee. It has noSenate companion.

Proposed increases in education programs,effective July 1, 2004, include $1.5 million foronline learning, $1 million in school readinessfunds for children between 3- and 5 –years old,and $1 million to fund other pre-kindergar-ten programs, including those existing in theMinneapolis and St. Paul school districts.

Development of value-added performanceassessments to better measure student aca-demic growth between grades would receive$250,000, under the bill.

Local levy increases proposed in the bill allowfor a funding shift savings of $11.1 million. Com-bined with proposed cuts of $2.9 million in vari-ous education accounts that leaves a general fundincrease of $8.2 million for 2005.

The 2004-05 biennial appropriation forK-12 education, approved by the 2003 Legis-lature, was $11.8 billion.

Approximately $710,000 was included in thebill for several of Gov. Tim Pawlenty’s educationpilot projects, including school cooperative plan-ning grants and a scholars of distinction programfor high achieving students.

A governor’s proposal to link increasedteacher compensation to student academicprogress at three underperforming schoolscould receive a projected $1 million in the2006-07 biennium. Legislators will set the2006-07 budget in the 2005 session.

Operating budget cuts to the state Depart-ment of Education, other state education agen-cies, and two academies for deaf and blindstudents, proposed by the governor and in-cluded in the bill, would total $612,000.

The bill would retain a state-funded bestpractices grant of $250,000 for the New Vi-sions charter school in Minneapolis, whichassists children with brain injuries and devel-opmental delays. The governor’s proposaleliminates $1 million in best practices grants.

Several DFL committee members objectedto the bill’s inclusion of a proposal (HF1109)by Rep. Philip Krinkie (R-Shoreview) thatwould make it easier for school districts tocontract for non-instructional services withprivate sector companies.

“This forces (union-represented schoolemployees) to enter bargaining with a gun totheir head,” said Rep. Jim Davnie (DFL-Mpls).“This will have a very negative effect on theschool climate.” Krinkie previously refutedassertions that the proposal would encourage“union busting.”

The proposal was approved by the Housein the 2003 omnibus education finance bill,but removed in conference committee.

Pay based on student performanceAn experiment that would tie teacher pay

to increased student achievement is part of theHouse Education Finance committee’s omni-bus bill (HF3016) approved March 24.

HF2416, sponsored by Rep. Jeff Johnson (R-Plymouth), was heard March 18 and 19 by thecommittee. It would establish a five-year highperformance teacher reward pilot project inthree state selected underperforming charteror elementary schools to address the learningachievement gap between students from mi-nority and low-income populations, and whitestudents.

Also known as Gov. Tim Pawlenty’s “superteacher” initiative, the bill would allow perfor-mance pay to increase a school teacher’s an-nual salary up to $100,000.

“I’m not super fond of the super teachername,” said Johnson, who called the bill “bold,very controversial, and pretty exciting.”

Only public and charter grade schoolswhose students have had a recent history oflow achievement results, and have a high con-centration of poverty-level students would beeligible for the program.

CCCCCOMMUNITYOMMUNITYOMMUNITYOMMUNITYOMMUNITY REQUESTREQUESTREQUESTREQUESTREQUEST

Xang Vang, executive director of the Minne-apolis Hmong American Mutual AssistanceAssociation, told the House Jobs and Eco-nomic Development Finance CommitteeMarch 24 that funds are necessary this yearto make improvements to their communitycenter because of the expected number ofHmong refugees that may arrive in the statefrom camps in Thailand.

PHOTO BY TOM OLMSCHEID

Using those criteria, the Department ofEducation would select the lowest rankedschool from three different geographic areasin the state. Eligible schools would have to beapproved or designated by a school district.

The bill would require a selected school toadopt a “site-based management” approach thatcould include teachers forming a cooperative torun the school. The bill would also allow a schooldistrict or charter school board of directors toselect the school’s chief administrator.

“This is more like a super charter schoolbill,” said Jan Alswager, director of governmentrelations for Education Minnesota, the stateteachers’ union. She said public school teacherresponse to the initiative, announced by thegovernor in September 2003, has been “verynegative.”

Jim Bartholomew, government relationsdirector for the Minnesota Business Partner-ship, testified in support of the bill. “It couldattract quality teachers to schools that havestruggled,” he said. “The shift in decision mak-ing to the school level can lead to improvedstudent achievement.”

The bill would exempt a participating schoolfrom many state education statutes and rules,except those covering academic standards, con-fidentiality, discrimination, financial audits, ap-peals of student discipline, and the requirementto recite the Pledge of Allegiance.

A companion bill (SF2135), sponsored bySen. David Gaither (R-Plymouth), awaits com-mittee action.

Teacher track professionalsA new state licensing program that would

allow up to 300 qualified professionals per yearto teach in public schools was included in theomnibus education finance bill, which nowmoves to the House Taxes Committee.

Sponsored by Rep. Sondra Erickson(R-Princeton), HF1814 was heard March 22before the House Education Finance Commit-tee. The bill would create an alternative licens-ing path for persons with a bachelor’s degreeand five years of experience to teach in a sub-ject area related to their profession.

“I believe this will set a standard higher thanthe (post-secondary) educational institutionsnow set for teachers,” Erickson said. “Educa-tion Minnesota and the colleges of educationdo not support this, but that doesn’t botherme.”

The bill, one of Gov. Tim Pawlenty’s educa-tion initiatives for 2004, would create a teachertraining program for qualified professionals inthe Department of Education, rather than theBoard of Teaching.

An advisory group that would include board

Session Weekly 9

representatives and representatives from statecolleges and universities would develop criteriafor the alternative licensing program. The billwould require the state education commissionerto report to the Legislature’s higher educationcommittees by Jan. 15, 2005 on the training cri-teria established for the new program.

Rep. Bud Heidgerken (R-Freeport), a formerteacher, opposed the bill. “This is an attempt topretty much dismantle what we have in placeright now,” he said. “We do very well. I don’t seea lot of support for this among teachers.”

Prospective new teachers would be trained toteach in special education, as well as science,math, reading, English as a second language,communication arts and literature, business,world languages, and as a media specialist.

A companion bill (SF2109), sponsored bySen. David Hann (R-Eden Prairie), awaits ac-tion before a Senate committee.

EMPLOYMENT★

Teaching excellenceWhile 96 percent of the state’s public school

teachers are “highly qualified,” according to afederal definition, approximately 900 need tomeet that standard within the next two yearsfor the state to comply with the No Child LeftBehind Act.

HF3062, sponsored by Rep. Barb Sykora(R-Excelsior), would amend state law to accom-modate teacher evaluations to allow those teach-ing outside of their college degree subject area tomeet the federal “highly qualified” definition.

The bill was heard March 18 by the HouseEducation Policy Committee. The committee,which Sykora chairs, took no action, but theproposal is part of the education omnibus fi-nance bill (HF3016).

The process the bill would establish is calledHigh Objective Uniform State Standard ofEvaluation.

It would become an option for teachers todemonstrate their content knowledge, andcomply with the law, said Education Commis-sioner Cheri Pierson Yecke.

“Teachers are running out of time,” Yeckesaid. “There’s an expedited need for (this) pro-cess to be out there.”

The federal education law will require allteachers, other than those newly hired, to meetthe “highly qualified” definition by the end ofthe 2005-06 school year.

Teachers in rural districts — who are morelikely to be teaching core subjects other thanthose in their college degree field — have untilthe end of the 2006-07 school year to comply.

Those now teaching outside of their licensedsubject area have been issued variances by thestate Board of Teaching. State law provides forthe board to develop and administer teacherlicensing programs.

Yecke said the evaluation process proposed inthe bill is not teacher licensing and would beadministered by the Education Department.

George Maurer, board director, questioned theneed for putting the proposed evaluation pro-cess into state statute. He described the federalrequirements covering teacher qualifications as“very fluid.” A new licensing option the board isdeveloping, but has yet to adopt as a rule, “willmeet the (federal) definition,” he said.

The bill has no Senate companion.

Trust land aggregateGravel on state-owned school trust land

could mean more dollars for schools.A bill approved March 22 by the House Edu-

cation Finance Committee would appropriate$50,000 for several trust land site surveys todetermine their potential for revenue produc-ing construction aggregate leases.

Sponsored by Rep. Tony Cornish (R-GoodThunder), HF2467 was referred to the HouseEnvironment and Natural Resources FinanceCommittee.

The bill would help the Department ofNatural Resources, which manages 2.5 millionacres of school trust land, “find out more aboutaggregates,” Cornish said.

The department also manages 1 million acresof mineral rights on previously sold school trustland. The trust lands, located primarily in northcentral and northeastern Minnesota, have beengovernment-owned since statehood.

The $50,000 would come from one of the trustlands revenue accounts that finances the Perma-nent School Fund. Future proceeds from the saleof aggregate would be added to the fund.

About $20 million per year for schools isprovided through trust land timber sales,lakeshore leases, mineral rights, and interestearnings.

Expected loss of interest would cost the state$2,000 to provide the $50,000 for the site sur-veys, said Rep. Alice Seagren (R-Bloomington),the committee chair. Seagren said future sitesurveys for aggregate leases could be consid-ered for the 2006-07 biennium.

Department representatives testified beforethe House Education Policy Committee in Feb-ruary that additional aggregate leases could gen-erate more school revenue, because of growingdemand from Twin Cities metropolitan area roadand building construction projects.

Aggregate leases from lands that are part ofthe Hill Annex Mine State Park in Itasca Countycould mean an additional $1 million a year inrevenue, according to department officials.

The $50,000 would be available for the sitesurveys until Oct. 30, 2005.

A companion bill (SF2250), sponsored by

Sen. LeRoy Stumpf (DFL-Thief River Falls),awaits action in the Senate Finance Committee.

Budget reductionsThe House Jobs and Economic Develop-

ment Finance Committee approved its omni-bus finance bill March 25.

Sponsored by Rep. Bob Gunther(R-Fairmont), HF3090 cuts $1.1 million fromthe budgets of the agencies and departmentswithin the committee’s jurisdiction. The 2003Legislature appropriated $321.5 million forthose departments.

Along with across the board 3 percent cuts tostate agencies, as recommended by the governorin his supplemental budget, the bill also trans-fers $14.7 million from specific funds, such asthe 21st Century Minerals Fund, into thegeneral fund to help balance the state’s budget.

Rep. Bob Gunther (R-Fairmont), chair of thecommittee, said the transfer of $11.4 million, thetotal monies in the minerals fund, is because theyare “being unused.” The governor’s recommen-dation included a $5.7 million transfer.

Rep. Tony Sertich (DFL-Chisholm) failed toamend the omnibus bill with a provision thatwould have used the fund for value-added ironore or steel making facilities. Gunther said“with reluctance” he would have to oppose theamendment because he didn’t “have the au-thority” to change the allocation of the fundsfrom the account. Gunther said he is workingclosely with House leaders to restore half ofthe funds in the account.

The bill also transfers $800,000 from the realestate housing program and $400,000 from thestate investment fund, both non-general fundsources, to the general fund.

Cuts for the Department of Employmentand Economic Development total $599,000from the operating budget with funding cutsto programs including the Minnesota FilmBoard, WomenVenture, and the MetropolitanEconomic Development Association.

Conversely, the Minnesota Historical Soci-ety would receive a one-time $589,000 appro-priation for the continued operation of theKelley Farm, Hill House, Lower Sioux Agency,Fort Ridgely, Historic Forestville, the ForestHistory Center, and the Comstock Housethrough fiscal year 2005.

The bill’s Senate companion (SF2591), spon-sored by Sen. Dallas Sams (DFL-Staples), awaitsaction in the Senate Finance Committee.

The committee discussed a number of amend-ments while this issue was going to press. Checknext week’s issue for an update.

10 March 26, 2004

Health care benefitsEmployees of the Minnesota Humanities

Commission would be eligible for state healthcare benefits for two years, under a bill passed130-0 by the House March 22.

Sponsored by Rep. Lynne Osterman (R-NewHope), HF1710 allows for “state paid life in-surance and hospital, medical, and dental ben-efits” for qualifying employees. Others alreadyeligible for benefits include legislators, legis-lative employees, an appellate court judge oran officer or employee of the court, a salariedemployee of the Public Employees RetirementAssociation, and a full-time military orcivilian officer.

Osterman said the benefits, would be “at nocost to taxpayers” because associated costswould be paid for by the commission. It wouldfall in line with those given to Minnesota Tech-nology, Inc. employees as well as MinnesotaHistorical Society employees.

The bill now moves to the Senate where Sen.Ellen Anderson (DFL-St. Paul) is the sponsor.

Reference information disclosureA new law signed by Gov. Tim Pawlenty

March 19 will provide disclosure protectionto employers that share certain reference in-

formation with prospective em-ployers about current andformer employees.

Effective Aug. 1, 2004, the lawwill allow companies, withoutthe employee’s consent, to pass

along basic employment information such aswages and job description, as well as writtendisclosures of any instances of theft, harass-ment, violence, or other illegal conduct docu-mented in the employee’s record.

The law will establish a higher burden of prooffor employees who legally challenge a current orformer employer’s information disclosure. Em-ployees bringing suit must show clear and con-vincing evidence that the information was bothknowingly wrong and harmful to them.

Business representatives expressed supportfor the new law, sponsored by Rep. JimKnoblach (R-St. Cloud) and Sen. DavidKnutson (R-Burnsville), while labor unionrepresentatives opposed it.

The law will also require school districts toshare documented information about employeesexual misconduct or violence toward a student.

Such information is already public if an em-ployee was fired based on the misconduct. Un-der the new law, the information must be sharedeven if the school district employee resigned.

Similar legislation passed both houses of theLegislature in 2001, but did not make it past aconference committee.

HF480*/SF837/CH137

Signedbythe

governor★ ★ ★

ENERGY★

ENVIRONMENT★

Biomass facility tax exemptionA developing biomass plant planned for south

Minneapolis is seeking an exemption from per-sonal property taxes, typically given facilities thatgenerate certain levels of electricity.

The request is contained in a bill (HF2839),sponsored by Rep. Karen Clark (DFL-Mpls).The bill was heard by the House Taxes Com-mittee March 23 and will be considered forinclusion in the committee’s omnibus bill.

The facility, located near the intersection ofLake Street and Hiawatha Avenue, would useurban waste wood biomass to create about 30megawatts of electricity, plus excess heat used forheating and cooling the adjacent building, thefacility in development on the former Sears site.

According to Carl Nelson, project manager forthe Green Institute, which is developing theproject in cooperation with the Phillips Com-munity Energy Co-op, the facility would be lo-cated on a former incinerator site contaminatedwith asbestos. The project involves cleaning upthe contamination and developing the project,which will operate in a similar fashion to theDistrict Energy plant in St. Paul, he said.

Each new electric energy generating facilitydeveloped in the state since 1994 has receivedan exemption on personal property taxes. Suchitems considered personal property includetransformers and turbines.

The exemption does not include other taxes,such as commercial income or sales taxes.

Clark noted that this is the first power plantusing biomass material in an urban area. Inaddition, the committee chair, Rep. RonAbrams (R-Minnetonka), noted that otherbiomass facilities elsewhere in the state havereceived similar exemptions in the past.

According to nonpartisan House Researchdocuments, four specific biomass projects havebeen granted this exemption.

The bill’s Senate companion (SF2676),sponsored by Sen. Linda Berglin (DFL-Mpls),awaits action in the Senate Taxes Committee.

Electric energy facility taxesThe House Taxes Committee heard four

bills March 23 that provide exemptions forpersonal property taxes to new facilities thatgenerate electricity.

The bills will all be considered for inclusionin the committee’s omnibus bill. Said commit-tee chair, Rep. Ron Abrams (R-Minnetonka),his intention is to include the provisions, aswell as an overriding exemption allowance forall new electric generation facilities, providedthe affected local governments approve the

exemption. He suggested such an allowanceshould be accompanied by a sunset date to testits effectiveness.

Each new electric energy generating facilitydeveloped in the state since 1994 has receivedan exemption on personal property taxes. Suchitems considered personal property includetransformers and turbines. The exemptiondoes not include other taxes, such as commer-cial income or sales taxes.

Among the proposals heard are the follow-ing bills:• HF2001, sponsored by Rep. Michael Beard

(R-Shakopee), would exempt a simple-cycle, combustion-turbine facility inShakopee set to produce about 320 mega-watts of energy by the summer of 2005.

• HF2481, sponsored by Rep. John Dorn (DFL-Mankato), would extend an exemption fora proposed simple-cycle, combustion-tur-bine facility in Mankato granted in 2003 asa contingency had the nuclear energy con-cerns at Prairie Island not been resolved.The bill would specifically reduce the ca-pacity allowed for the facility to more than300 megawatts and would allow for expan-sion, with approval, down the road.

• HF2701, sponsored by Rep. Jerry Dempsey(R-Red Wing), would provide an exemp-tion for a simple-cycle, combustion-tur-bine facility in Cannon Falls to produceabout 290 megawatts of energy.

• HF2707, sponsored by Rep. Lynda Boudreau(R-Faribault), would provide for a simple-cycle, combustion-turbine facility inFaribault, set to exceed 150 megawatts ofelectricity.

Each of the bills also requires a local gov-ernment approval for the exemption. None hasany cost to the state associated with theexemption.

HF2001 has no Senate companion. Theother bills companions – SF1919, sponsoredby Sen. John Hottinger (DFL-St. Peter);SF2532, sponsored by Sen. Steve Murphy(DFL-Red Wing); and SF2564, sponsored bySen. Dick Day (R-Owatonna) – all await ac-tion in the Senate Taxes Committee.

Environment finance changesThe House Environment and Natural Re-

sources Finance Committee released its supple-mental budget recommendations March 24,which reflects several agencies budget reductionsproposed by Gov. Tim Pawlenty, and then some.

Approved March 25, the bill (HF1867), spon-sored by Rep. Dennis Ozment (R-Rosemount)would cut $3.6 million from the 2004-05

Session Weekly 11

environment finance budget. It now moves tothe House Ways and Means Committee.

Pawlenty recommended reductions of justover $3 million from those agencies to helpachieve fiscal balance, including a general fundreduction of approximately $2.3 million forthe Department of Natural Resources.

The House-proposed changes for the de-partment total just over $2.6 million. The com-mittee recommendation also differs in thatsome money from the natural resources fundwould pay for off-highway vehicle (HF2678)and snowmobile gas tax study (HF3002) ini-tiatives and some department expendituresrelating to Metropolitan regional parks grantswould be reduced.

The committee’s recommendation for Pol-lution Control Agency general fund reductionsmatches that of the governor at $281,000. TheHouse, however, would direct $70,000 fromthe environmental fund toward coordinatingwork on the state’s impaired waters (HF1166).

The House plan is in line with the governor’sbudget cuts for the following agencies:$132,000 from the Environmental AssistanceOffice, $127,000 from the Board of Water andSoil Resources, and $197,000 from the Min-nesota Zoological Garden.

The omnibus measure also contains por-tions of the following bills:• HF2353, sponsored by Rep. Kathy Tingelstad

(R-Andover), would make technicalchanges for the department facilities man-agement efforts;

• HF2660, sponsored by Rep. Larry Howes(R-Walker), would create a forest manage-ment fund in the state treasury for depos-iting timber sale receipts from certain landsadministered by the department’s forestrydivision and spending on forestry efforts;

• HF2855, another Howes bill, would grant thedepartment management discretion indealing with situations where several lakeswith functioning outlets drain into a bodyof water without an outlet, and it wouldextend the life of a Board of Water and SoilResources shoreland protection program;

• HF2678, sponsored by Rep. Tom Hackbarth(R-Cedar), would reverse some restrictionson off-highway vehicle use on certain typesof wetlands, give the department the op-tion to leave a state forest classified as man-aged, and create a vehicle safety and con-servation grant program;

• HF2467, sponsored by Rep. Tony Cornish(R-Good Thunder), would direct the de-partment to study construction aggregateson school trust fund lands;

• HF2040, sponsored by Rep. Mark Olson(R-Big Lake), would create a certificationprocess under the Pollution ControlAgency for emerging technologies in waste-water treatment;

• HF2405, another Tingelstad initiative, wouldextend the appropriation for certain Leg-islative Commission on MinnesotaResources initiatives; and

• HF1852, sponsored by Rep. Jim Knoblach(R-St. Cloud), would direct the commissionto examine funding inequities between re-gional parks in the Twin Cities metropolitanarea and those in Greater Minnesota.

Paying for mercury pollutionAbout 95 percent of vehicles in the United

States are recycled, and more than 75 percentof the materials in a vehicle, when measuredby the weight, are actually recycled in someway, according to a 2003 report prepared forthe Office of Environmental Assistance.

But certain switches in those recycled ve-hicles are one of the most mercury-ladenproducts in the recycling process, accordingto the office.

Lawmakers, recyclers, and the auto indus-try are now debating who should pay to re-move the mercury switches from vehiclesbefore crushing or shredding.

Current law says that a person may not crusha motor vehicle unless the person has first madea good faith effort to remove the switches.

Peder Larson, a lobbyist for Partnership for Mer-cury Free Vehicles, testifies before the House En-vironment and Natural Resources PolicyCommittee March 18 in support of a bill thatwould establish a mercury switch collection pro-gram by motor vehicle manufacturers.

As first proposed, HF2602, sponsored byRep. Ray Cox (R-Northfield), would have es-tablished a collection program funded bymanufacturers who have sold vehicles withsuch devices in Minnesota since 1980. Recy-clers would have been paid a $1 incentive feeper switch for proper disposal.

The House Environment and Natural Re-sources Policy Committee approved an amendedversion of the measure March 18 and sent it tothe House Environment and Natural ResourcesFinance Committee. That committee amendedthe provision to also require that the office re-port back to the Legislature in 2005 and 2006regarding collection rates for retrieving switches.

The key components to successful switchcollection programs are education, enforce-ment, and incentives, Cox said.

The switches look tiny, but the mercury addsup, he added.

When part of a vehicle is crushed, mercuryin the switches can mix with the metal. Dur-ing the recycling process, that residual mer-cury may be emitted from the smokestack andreleased into the environment. In other cases,the mercury remains on items sent to a land-fill and can leach into the groundwater.

Representatives from the Alliance for AutoManufacturers, which includes Ford MotorCompany and eight other companies, opposedthe plan, saying they had already voluntarilyphased out mercury switch use in 2003 and com-mitted financial resources to switch removal.

But auto dismantlers said they should notbe the ones to pick up the tab for the laborinvolved in switch removal.

As amended by Rep. Tom Hackbarth(R-Cedar), the bill would require recyclers toremove all mercury switches from vehicles be-fore they are crushed, rather than merely makea good faith effort.

The amendment also removed the programand incentives from the legislation.

Hackbarth said he was concerned about plac-ing any burdens on the industry that might con-tribute to a closure of the St. Paul Ford plant.

A Senate companion bill (SF1934), spon-sored by Sen. D. Scott Dibble (DFL-Mpls),awaits action by a second committee.

Cathode ray tube disposalMost older televisions, computer monitors,

and video display devices contain cathode raytubes that convert electronic signals into vi-sual images. From a waste management per-spective, cathode ray tube recycling isproblematic because the phosphorescent coat-ing around the tube contains lead that can bereleased into the environment when the com-ponents are crushed.

12 March 26, 2004

Among the many known health hazards oflead are brain, kidney, and reproductiveproblems.

Cathode ray tubes will be banned from solidwaste facilities in 2005, under current law.

A bill (HF882), sponsored by Rep. Ray Cox(R-Northfield), aims to create a statewide dis-posal system for the devices. The bill wouldrequire all manufacturers of video display de-vices sold in Minnesota to register with theOffice of Environmental Assistance and as-sume responsibility for a collection system byJuly 1, 2005.

The House Environment and Natural Re-sources Policy Committee heard testimony onthe measure March 18, but the committee chair,Rep. Tom Hackbarth (R-Cedar), deferred actionuntil more discussions could be held.

The bill proposes a safe and responsiblemanufacturer-operated disposal method with-out creating a government program, Cox said.He said in developing the legislation he wantedto avoid a system that would charge consum-ers an advance recovery fee.

“Electronics are a growing problem that havebeen handled at the end of the pipe,” said TedTroolin, St. Louis County Solid Waste Depart-ment director. “The bill would be an effectiveopportunity to keep them out of landfills.”

Proponents said product stewardship bymanufacturers is an important component ofa successful video display device recycling pro-gram, as is comprehensive statewide access forall citizens.

Jim Kordiak, a Solid Waste ManagementCoordinating Board member, presented anoverview of the state’s growing electronic wastemanagement problem.

Televisions and monitors can contain be-tween 3 pounds and 7 pounds of lead, he said

With analog television signals scheduled toend in 2006, digital signals will need convert-ers or new televisions. This and other techno-logical advances will make many componentsobsolete.

The presentation suggested Minnesota’swaste stream could be hit by an “e-waste tsu-nami” as these new technologies emerge andgain popularity.

Hackbarth said he does not yet agree withthe approach in the bill, particularly out ofconcerns over placing burdens on IBM, a largeMinnesota manufacturer of computer hard-ware. The industry should work on an accept-able plan, he said, because the issue will be backnext year.

A Senate companion (SF838), sponsored bySen. Linda Higgins (DFL-Mpls), awaitscommittee action.

Disposing of mineral byproductsTaconite companies are required by state law

to obtain permits from the Pollution ControlAgency to dispose of tailings, the byproductsof taconite production.

The tailings are environmentally problem-atic in several ways: the lack of vegetation toanchor the soil on which the tailings are de-posited can increase soil erosion, speed con-taminated runoff into ground and surfacewater, and decrease air quality with excessivedust during dry seasons.

Current law is very specific that the tailingsmay be disposed of in mine pits provided thecompany “demonstrates through an environ-mental impact statement and risk assessmentthat the deposition will not pose an unreason-able risk of pollution or degradation ofgroundwater.”

HF1836, sponsored by Rep. Tom Rukavina(DFL-Virginia), would expand the agency’spermit authority beyond taconite tailings toallow for the deposition of any mineral tail-ings, provided the same environmental stan-dards are met.

The House passed the bill March 22 by avote of 127-1. It now moves to the Senatewhere Sen. David Tomassoni (DFL-Chisholm)is the sponsor.

For more information regardingtestimony for and against theenvironment and natural resourcesomnibus finance bill, go to theSession Weekly EXTRA Page at:h t t p : / / w w w. h o u s e . m n / h i n f o /swx.asp.

FAMILY★

Banning gay marriageA proposal to ask Minnesota voters whether

the constitution should specifically prohibitgay marriage in the state was approved by theHouse 88-42 March 24.

Sponsored by Rep. Mary Liz Holberg(R-Lakeville), HF2798 proposes that voters beasked this question: “Shall the Minnesota Con-stitution be amended to provide that marriageor its legal equivalent is limited to only the unionof one man and one woman?” The bill wouldpreclude civil unions in Minnesota without anadditional constitutional amendment.

Holberg said that if there were any more im-portant issue in today’s society than definingmarriage, she can’t think of what it might be.

Noting that Minnesota already prohibits gaymarriage through a 1997 law, Holberg explainedwhy she’s sponsoring the marriage definition bill.In November the Massachusetts Supreme Court

Thousands of people in support of a potentialamendment to the Minnesota Constitution thatwould define marriage as a union between a manand a woman filled the steps of the State CapitolMarch 22. Attendees heard from Gov. TimPawlenty, legislators, congressional members, andmembers of the clergy who support the constitu-tional amendment.

directed that state’s legislature to provide forsame-sex marriages within 180 days. Therefore,it’s expected, she said, that valid marriage licenseswould be issued there beginning May 17.

Several cities subsequently began issuing mar-riage licenses to same-sex couples. San Franciscoalone issued about 4,000 licenses earlier this yearbefore a court injunction was imposed.

Bill supporters say it’s only a matter of timebefore a Minnesota same-sex couple marriesin another state and files a lawsuit demandingrecognition of that license here. That wouldbring the case before the Minnesota SupremeCourt, which Holberg believes is the impropervenue for such an issue.

“The people of Minnesota want to vote onthis issue,” Holberg said.

House Minority Leader Matt Entenza (DFL-St. Paul) said the real motive behind effortsthroughout the country to ban gay marriageis to divert attention from problems withhealth care, education, and unemployment.Using the constitution, as opposed to legisla-tion, for an issue of such magnitude is unprec-edented, he said.

“We should never use the constitution as ameans to advance a political agenda,” Entenzasaid.

Rep. Keith Ellison (DFL-Mpls) cited a 1958case in which a black man and his white wifewere arrested and sentenced to jail for being

About 3,000 people rallied in front of the StateCapitol March 25 against a proposed amendmentto the Minnesota Constitution that would definemarriage as a union between a man and woman.

Session Weekly 13

married to one another. The U.S. SupremeCourt later issued a ruling, declaring interfer-ence with a person’s right to choose his or herown partner to be unconstitutional.

“In 1958 it was about race; today it’s aboutsex,” Ellison said.

Rep. Karen Clark (DFL-Mpls), the House’sonly openly gay member, said civil marriageshould be kept separate from religious mar-riages. One is about rights and responsibili-ties and the other is about a sacred contract,she explained.

“We need to keep what is sacred, sacred andwhat is civil, civil,” Clark said.

The bill now goes to the Senate, where Sen.Michele Bachmann (R-Stillwater) is thesponsor.

Parenting classesDivorcing couples in dispute over custody

and visitation provisions would be requiredto attend at least eight hours of parentingclasses, under a bill approved March 19 by theHouse Civil Law Committee.

Under current practice, divorcing parentscontesting custody matters are required to at-tend classes for a minimum of four hours anda maximum of eight.

As introduced, HF2642, sponsored by Rep.Elaine Harder (R-Jackson), would have re-quired all divorcing parents to attendparenting classes for a minimum of 10 hours,even when custody and visitation issues are notcontested.

Such provisions drew objection fromtestifiers at the bill’s first presentation to thecommittee March 16. Action on the bill wasdeferred for fine-tuning, and Harder broughtit back with the eight-hour, contested-onlyprovisions that were ultimately adopted by thecommittee.

Nevertheless, members still expressed concern.Rep. Len Biernat (DFL-Mpls) unsuccessfully

introduced an amendment in keeping withcurrent practice: that of four- to eight-hourclasses.

Marilyn McKnight, owner of Erickson Me-diation Institute, said it often takes parentingclass participants several hours of classes toovercome their anger at being ordered to at-tend. Many, however, subsequently appreciatethe chance to learn about the emotional na-ture of divorce, legal proceedings, and meth-ods for parenting with a divorce.

Anita Miller, with the non-profit StorefrontGroup in Richfield, a human services organi-zation offering education for parents and chil-dren transitioning through divorce, said she

was pleased that the bill no longer containedprovisions mandating parenting classes for alldivorces. The group, and others that offer sucheducation, could not accommodate high par-ticipation volumes that would have resulted,she explained.

“Without funding behind this, this couldsink us,” she said.

The committee modified language to statethat parents must begin taking the classeswithin 30 days after the first filing of any pleain the divorce. The previous language wouldnot have allowed enough time for either thehusband or wife to respond to the divorce,therefore not allowing the courts to knowwhether the matter was being contested andparenting classes required.

The bill now moves to the House floor. ItsSenate companion (SF1846), sponsored bySen. Steve Dille (R-Dassel), awaits action onthe Senate floor.

Taxing in-home daycare facilitiesA bill heard by the House Taxes Committee

March 23 aims to clarify how in-home child-care facilities should be taxed. The bill(HF2200), sponsored by Rep. Doug Magnus(R-Slayton), will be considered for inclusionin the committee’s omnibus bill.

The bill would specifically provide thatsingle-family homes otherwise classified asresidential and agricultural homestead but alsoused to provide licensed child-care must beclassified as homestead property.

Magnus said the need for the bill arose from asituation in Pipestone County where the countyassessor classified in-home child-care providersas commercial enterprises. As a result, taxes forin-home child-care providers were increasingexponentially, particularly if they had made anyhome improvements that also specifically ben-efited the care they provided.

There is one caveat, under the bill, with re-gard to in-home business activities. Portionsof the property used for business purposes,such as a beauty shop or machine repair, wouldbe classified as commercial property.

According to Michelle Thole, president ofthe Minnesota Licensed Family Child-CareAssociation, the policy discourages individu-als from making improvements that both in-crease their home’s value and improve thequality of child-care services they provide. Shespecifically cited safety improvements.

She also expressed concern that placing ad-ditional financial burdens on in-home provid-ers in Greater Minnesota would reduce theoptions for parents, as providers decide toclose their operations.

“This reminds me of my first day in lawschool,” said Rep. Ron Abrams(R-Minnetonka), the committee chair. “Don’tleave your common sense outside of lawschool.”

Gary Grossinger, Stearns County assessor, tes-tified that in his experience, other counties arenot designating in-home daycare facilities ascommercial enterprises for tax purposes. He sug-gested Pipestone County is not a typical exampleof the application of the law statewide.

“We tend to use our own common sense,”he said.

The Senate companion (SF2117), sponsoredby Sen. Becky Lourey (DFL-Kerrick), awaitsaction in the Senate Taxes Committee.

GAME & FISH★

Fort Ripley game refugeUnder current law, the Department of Natu-

ral Resources makes annual payments to coun-ties in lieu of taxes for natural resourcesproperty, specifically public hunting areas andgame refuges, acquired by the state.

State trust fund lands and other state landsnot purchased for natural resources purposesdo not qualify.

Rep. Greg Blaine (R-Little Falls) is sponsor-ing a bill (HF2928) that would direct paymentsin lieu of taxes to Morrison County for 51,000acres at Fort Ripley that are used as a gamerefuge.

The House Environment and Natural Re-sources Finance Committee approved themeasure March 18 and sent it to the HouseTaxes Committee.

“The environmental attention paid to thisstate land is as great or greater than almost anyother game refuge in the state,” Blaine said.

Department attention is vital, Blaine said,because the land hosts a number of threatenedspecies.

Morrison County does not receive any pay-ments for the property because the land wasacquired by the state for military purposes, butit quickly became evident it was extremelyvaluable for conservation, Blaine said. Thataltered the state’s commitment to the countyin terms of financial support, he said.

Rep. Dennis Ozment (R-Rosemount) askedabout public access for hunting, as is requiredfor other lands in the payment program.

Camp Ripley has opened its boundaries formany deer hunts, including a well-known ar-chery hunt, Blaine said.

A Senate companion bill (SF2725), spon-sored by Sen. Paul Koering (R-Fort Ripley),awaits committee action.

14 March 26, 2004

GOVERNMENT★Spending reductions, income additions

The House State Government Finance Com-mittee approved its omnibus bill March 25, in-corporating supplemental budget actions.

Sponsored by Rep. Bill Haas (R-Champlin),HF2684 would reduce several state agencies bud-gets by 3 percent, as recommended by the gover-nor as well as raise general fund revenue by$7.8 million. In the bill, expenditures for the bi-ennium are cut $4.9 million, which in combina-tion with the additional revenue, is a net savingsto the general fund of about $12.8 million.

Constitutional offices will receive the acrossthe board 3 percent cut under the bill. Alsoforced to trim would be the Departments ofAdministration, Finance, Employee Relations,Military Affairs, and Veterans Affairs.

Under the bill, the Legislature would have$4 million of its carry forward funds trans-ferred for other general fund purposes. Thegovernor recommended a $7 million transfer.

HF2684 would appropriate $4.4 million tothe Department of Military Affairs for threeprograms — a re-enlistment bonus program,a National Guard Youth Camp, and tuition andtextbook reimbursement program. The youthcamp and tuition reimbursement funds arenot among the governor’s recommendations.

In addition to a transfer of $2.1 million inunclaimed prize money from the MinnesotaState Lottery going to the general fund, sale ofstate land is expected to boost state revenue.

The commissioner of administration is di-rected to sell at least $6.1 million of state landbefore June 30, 2005, with an additional$6.1 million by June 30, 2007. The commis-sioner may only provide notice of the sale ofpublic lands to state departments or agencies,the University of Minnesota, cities, counties,towns, school districts, or other public enti-ties as designated in the bill.

Other provisions in the bill include requir-ing state employees to reimburse the state forusing state vehicles in situations that could beconsidered a “taxable fringe benefit” and es-tablishing that the administration commis-sioner may lease a state-owned building in theCapitol Complex to operate a daycare and af-ter-school activity center.

The bill now goes to the House Ways andMeans Committee. Its Senate companion(SF2687), sponsored by Sen. Steve Kelley(DFL-Hopkins), awaits committee action.

Land ownershipA bill born out of the frustrations of one

legislator to determine how much land thestate owns was heard, but not acted upon, by

the House Capital Investment CommitteeMarch 23.

Rep. Maxine Penas (R-Badger) said she in-troduced HF2822 after receiving no satisfac-tory answers to her questions of how muchland the state owns, its locations, anddesignations.

Paul Pojar, an engineer with the Departmentof Natural Resources lands and minerals sec-tion, presented two maps to the committeeshowing state-owned lands by land type, aswell as land ownership by government entity.The latter included lands owned by the fed-eral government, tribal governments, the state,and counties.

In total, 8.3 million acres is labeled asstate-owned.

However, Penas said she wants more detail,including a specific inventory of land ownedby the University of Minnesota, the Minne-sota State Colleges and Universities system,and the Departments of Corrections, MilitaryAffairs, Administration, Human Services,Transportation, and Natural Resources.

“I think it’s pathetic in the days of (globalpositioning systems) and satellite photographyand satellite imaging that we do not have abetter handle on our lands,” Penas said.

The state should be good stewards of itsland, in particular because evasive species can“get loose” in vast tracts of land, she added.

However, Rep. Philip Krinkie(R-Shoreview), the committee chair, pointedout that the bill does not request an inventoryoutright. Instead it would prohibit the statefrom obtaining more land unless the acquisi-tion represented a zero net gain of state-ownedland. Furthermore, any state-owned land tobe disposed of must be placed back on the taxrolls, under the bill.

To achieve a zero net-gain in state land, aninventory must be performed, Penas said.

Committee discussion revealed that whileit may be easy to identify state-owned lands, itis difficult to pinpoint boundaries withoutcostly and time-consuming surveys.

“This is a very expensive proposition,” saidRep. Alice Hausman (DFL-St. Paul).

The bill was not officially referred to thecommittee, but Krinkie requested it for an in-formational hearing.

It lacks a Senate companion.

HEALTH★

Saving money on purchasesThe House Governmental Operations and

Veterans Affairs Policy Committee approveda bill March 24 that would authorize stateagencies to contract with national purchasingorganizations for a better price on goods.

Rep. Laura Brod (R-New Prague), the

sponsor of HF2905, said agencies would have “ef-ficiency, cooperation, and the best bang for thebuck” under the bill, which now moves to theHouse State Government Finance Committee.

Agency heads who use such contracts mustreport annual expenditures for goods acquiredto the commissioner of administration, underthe bill.

Gary Nytes, executive director of MinnesotaCooperative Services, said the organizationworks to “help agencies save money” throughlarge volume contacts allowing for goods tobe purchased at lower prices. The bill wouldallow the co-op to work more closely with theDepartment of Administration, Nytes said.

Rep. Bill Hilty (DFL-Finlayson) said specialpriority in contracts should be given to Min-nesota businesses, and he inquired as to howmany contracts involve offshore companies.

Hilty sponsors HF914 that would prohibitcorporations or their subsidiaries from doingwork with state agencies if the entity is incor-porated in a tax haven country and the UnitedStates is the principal market for public trad-ing of the corporation’s stock. That bill awaitsaction in the House Taxes Committee.

Mike Hajek, director of cooperative pur-chasing with the National Joint Powers Alli-ance, said the vast majority of contracts aregiven to local businesses.

A companion bill (SF1859), sponsored bySen. Dallas Sams (DFL-Staples), awaits actionon the Senate floor.

Health care fundsAlthough it spares health care and social

service providers from more cuts proposed byGov. Tim Pawlenty, the House Health andHuman Services Finance Committee’s supple-mental budget omnibus bill for fiscal year 2005is not without its critics.

Sponsored by Rep. Fran Bradley (R-Roch-ester), the committee chair, HF1681 was re-viewed for two days by committee membersand the public prior to its March 25 approval.The bill now moves to the House Ways andMeans Committee.

“We spend $37 million to prevent reduc-tions to pharmacies, hospitals, nursing homes,”and other care providers, Bradley said. He saidthe bill would direct approximately $17.6 mil-lion for “fixing priority needs” identified byhealth care agencies and provider groups thathave cut staff and services as a result of cutsenacted by the 2003 Legislature.

The bill would not implement a 1.5 percentcut in aid to hospitals, nursing homes, andother health care agencies, as proposed by the

Session Weekly 15

governor. But it does include a number of costcontainment measures, discussed previouslyin several committees, and specific programcuts.

“Cost containment is a reality,” Bradley said.“We cannot sustain the rate of growth,” par-ticularly in health care costs, he added.

The bill’s Senate companion (SF1915),sponsored by Sen. Michelle Fischbach(R-Paynesville), awaits committee action.

DFL committee members said the bill rep-resents a net cut of $64.7 million. They op-posed a proposed transfer of $70 million fromthe Health Care Access Fund to the state gen-eral fund. That is the largest of a number offunding shifts the bill proposes to restore someprogram and assistance cuts that took effectJuly 1, 2003.

The access fund supports MinnesotaCare,which assists low-income residents in obtain-ing health insurance.

Citing prior cuts in non-physician providedtreatment, Rep. Thomas Huntley (DFL-Duluth) said, “MinnesotaCare is only good forthose who are healthy.”

A number of health care providers and hu-man service agency representatives applaudedthe committee’s decision to not further cutprograms and assistance, but added that thebudget enacted last year would continue toharm a disproportionate share of those whorely on state supported health care and socialservices.

Jeff Spartz, representing the Minnesota HospitalAssociation, speaks to the House Health and Hu-man Services Finance Committee March 24 dur-ing public testimony on the committee’s omnibusfinance bill.

The bill includes an amendment by Rep.Brad Finstad (R-New Ulm) that would denyfederally funded family planning grants to“groups who provide abortion services.” Theamendment contains the language of HF436,sponsored by Rep. Mary Liz Holberg(R-Lakeville).

Rep. Joe Opatz (DFL-St. Cloud), who op-posed the amendment, said it would “lead tounplanned pregnancies and more abortions.This is a pro-abortion amendment.”

Reducing costs for careA bill aimed at reducing health care costs is

now the primary omnibus bill for the HouseHealth and Human Services FinanceCommittee.

Rep. Fran Bradley (R-Rochester), who chairsthe committee and sponsors HF1681, success-fully offered several amendments March 18,including one striking language that wouldhave placed limits on awards in medical mal-practice suits. In earlier hearings the proposedcap on damages for non-economic losses wasthe focus of intense discussion.

Bradley said he could not get the provisionpast the House Civil Law Committee. “I madea promise to you and all involved that I wouldabide by the decision of civil law,” he said.

Sections of the bill relating to best practiceswere also “skinnied down,” Bradley said. Re-moved was a provision that would have giventhe commissioner of health the power to“identify” best-practice guidelines and “moni-tor” the extent to which health care providersfollowed them.

In its place is language that would empowerthe commissioner to “facilitate access to bestpractice guidelines and quality of care mea-surement information.”

Among its provisions, the revised bill wouldask that the commissioners of human servicesand employee relations use best-practiceguidelines to develop “contracting strategies”and report their experiences to the Legislaturein 2006.

“The best thing government can do is to useour purchasing power,” said Rep. ThomasHuntley (DFL-Duluth). “We need to encour-age best practices.”

The bill, as revised, would also establish apriority for developing criteria for best prac-tices and quality of care for people with dia-betes and congestive heart failure.

Not everyone thinks the state should be in-volved in establishing best practice guidelines.

“We are very, very concerned on the part ofpatients we represent that the government wouldget into the practice of medicine,” said Dr. Will-iam Wenmark, president of NOW Care Medical

Centers. He said it is the job of medical special-ists to establish standards and offer continuingmedical education and accreditation.

“This is not the Betty Crocker cookbook ofMinnesota medicine,” he said.

Bradley said it was a “misrepresentation” tosay the state is practicing medicine. “All we’redoing is recognizing a partnership. All we’resaying is ‘Let’s be at the table as a purchaser.’”

“I would never welcome the government atthe table when I practice medicine,” Wenmarksaid.

A companion bill (SF1915), sponsored bySen. Michelle Fischbach (R-Paynesville),awaits committee action.

Savings accountsThe House Taxes Committee heard several

bills March 18 that would provide conformityto federal income tax changes, which allow healthsavings accounts, a tool that will allow individu-als to set aside funds for health-care costs.

The committee primarily discussedHF3058, sponsored by Rep. Ron Abrams(R-Minnetonka), which contains multiple fed-eral conformity issues, and will be consideredfor inclusion in the committee’s omnibus bill.

However, discussion at the hearing centeredaround the accounts provided in the 2003 fed-eral Medicare act, which proponents say pro-vide tax benefits and may help reducehealth-care costs. Other bills discussed at thehearing that deal specifically with health sav-ings accounts were HF1742, sponsored by Rep.Jim Knoblach (R-St. Cloud) and HF1976,sponsored by Rep. Tim Wilkin (R-Eagan).

Under Abrams’ bill, individuals could de-duct, for contributions to a health savings ac-count, up to $2,250 per year for coveringthemselves, and up to $4,500 for family cover-age from their federal income for tax purposes.

The rationale behind health savings ac-counts is that they would be combined with ahigh-deductible insurance plan, which typi-cally carries lower premium costs. Whencoupled with a high-deductible plan, the ac-counts would allow individuals to cover coststhat do not meet their deductible with pro-ceeds in the accounts. And if people don’t ex-pend all the funds in their accounts, thosefunds may roll over, gain interest, and be usedfor future expenditures.

Under the bill, high-deductible plans are de-fined as having deductibles of $1,000 for indi-vidual coverage and $2,000 for family coverage.

Previously, said Wilkin, individuals coulduse medical savings accounts in some cases,but they were much more restrictive and couldnot be carried over for future expenses.

Funds contributed to the accounts are

16 March 26, 2004

completely tax free, meaning they’re pre-tax go-ing in, not taxed when expended, and the fundsrolled from year to year incur no tax, Wilkin said.

Witnesses said the accounts will allow healthcare consumers better choice, because they canuse the accounts to purchase services both in-side and outside their provider network.

Said Rep. Fran Bradley (R-Rochester), chairof the House Health and Human ServicesFinance Committee, even with high-deduct-ible plans, amounts individuals will pay outof their own pockets will still be capped.

The Abrams bill has no Senate companion.The health savings account provision is esti-mated to cost $3.2 million in 2005 and 2006and $3.7 million thereafter.

Companion bills to the Knoblach and Wilkinbills await action in Senate committees.

HIGHER EDUCATION★

Supplemental budget decisionsThe bill approved by the House Higher Edu-

cation Finance Committee March 24 wouldrequire the Higher Education Services Officeto renegotiate the tuition reciprocity agree-ment with South Dakota and provide for in-terstate payments by Dec. 1, 2004.

Sponsored by Rep. Doug Stang (R-ColdSpring), HF2663, in part, reduces the adminis-trative and tuition reciprocity appropriations forthe current biennium to the office and makes anumber of other technical changes to agencyprograms. It now goes to the House Ways andMeans Committee. In total, it trims slightly morethan $7.2 million from the budget.

Members were previously told that there hasbeen no interstate payment between Minnesotaand South Dakota for a number of years. Theagreement calls for students to pay the higherresident tuition rate of the school they are at-tending or that of a comparable school in theirhome state. Interstate payments are a way for onestate to reimburse another if instructional costsborne by taxpayers are unequal.

Payments related to agreements with NorthDakota and Wisconsin are being made.

A September 2003 report by the Office ofthe Legislative Auditor said that because “Min-nesota serves more students and bears a dis-proportionate share of the costs under thisagreement, it would gain financially from areinstatement of interstate payments.”

“I’m troubled that they can’t send themoney they owe us,” said Rep. DennyMcNamara (R-Hastings). “A deal is a deal.”

Jack Rayburn, senior researcher for the of-fice, said five times in the past 10 years moreMinnesota students have attended South Da-kota schools and five times it has been the

other way around. “If we presume they oweus money, it’s wrong,” he said.

Another concern is that North Dakota andSouth Dakota want to increase their economiesand they could simply say they’ll charge residenttuition rates to Minnesotans and end the agree-ment with hopes that Minnesota students willremain in that state once they graduate.

Stang expressed a willingness to work withthe services office if officials were to bring for-ward some other kind of proposal before thebill gets to the House floor.

The bill calls for a $7.2 million biennial re-duction from the tuition reciprocity program,money that officials said is a program surplusthat they expect for the biennium. An annualreport is also required of the office with infor-mation on student participation, tuition rates,and interstate payments and obligations.

Additionally, $84,000 is taken from the of-fice as part of Gov. Tim Pawlenty’s budget-balancing proposal that calls for a 3 percentstate agency operating reduction. No reduc-tion implementation plans were offered.

Included in the bill is HF2337, sponsored byRep. Marty Seifert (R-Marshall), which wouldauthorize the Minnesota State Colleges and Uni-versities system to plan the development of ap-plied doctoral programs and degrees and reportto the Legislature by Jan. 15, 2007.

Pawlenty had initially recommended trans-ferring a $15 million surplus from the stategrant program to the general fund to balancethe budget. That recommendation was notincluded in the bill.

The Senate version (SF2695), sponsored bySen. Sandra Pappas (DFL-St. Paul), awaitscommittee action.

For more information regarding Dr.Norman E. Borlaug World Food PrizeDay, go to the Session WeeklyEXTRA Page at: http://www.house.mn/hinfo/swx.asp.

INSURANCE★

Maintaining coverageThe House Commerce, Jobs, and Economic

Development Policy Committee approved abill March 18 that would help people main-tain continuous health care coverage.

The bill will go next to the House floor.“This is a straightforward, common sense

bill,” said Rep. Thomas Pugh (DFL-South St.Paul), the sponsor of HF2214.

The bill would protect people whose continu-ation health coverage, for example under theConsolidated Omnibus Budget ReconciliationAct (COBRA), is about to expire. It would

require health insurers to inform people thattheir coverage under new policies the companyis offering might not be the same as it was undertheir group health plan and that they may be eli-gible for coverage from other private sources orfrom the Minnesota Comprehensive Health As-sociation (MCHA), which has no limitations onpre-existing conditions.

Cynthia Hart, a board member of the Min-nesota State Advisory Council on MentalHealth, said people are not necessarily awaretheir coverage may change when their continu-ation policy ends.

Hart said her daughter was on a COBRApolicy for several years, but the new policies of-fered by the insurer would not have given herthe same coverage because of pre-existing con-ditions. Hart said if she had not already knownabout the association, she would not have real-ized it was an option for her daughter.

During the March 10 meeting of the HouseHealth and Human Services Policy Commit-tee, questions were raised about the potentialcosts of this bill if more people were to getcoverage under the state’s association. No fis-cal note was presented.

“This is a good bill that will help peoplecontinue their health care coverage,” said BillConley, a lobbyist for the Mental Health As-sociation of Minnesota.

A companion bill (SF2138), sponsored bySen. Linda Scheid (DFL-Brooklyn Park),awaits action by the full Senate.

Transit study proposedThe House Jobs and Economic Develop-

ment Finance Committee approved a billMarch 25 that would require the commis-sioner of commerce to conduct a study to re-duce motor vehicle insurance premiums forpublic transit companies and taxi services.

Sponsored by Rep. Mark Buesgens (R-Jordan), HF2649 would require a task force,which must include representatives from theinsurance industry, taxi services, private tran-sit companies, and others, as appropriate, toconsider:• measures to increase competition in that in-

surance market,• the formulation of purchasing pools for that

type of insurance,• requiring the state to insure or self-insure

those vehicles at cost in the same mannerin which it insures or self-insures state-owned vehicles,

• granting private transit companies and taxiservices the right to join existing insurancepools or arrangements available to politi-cal subdivisions,

• providing coverage through the state autoplan, and

Session Weekly 17

• legislation to control costs by providing li-ability damage limits in civil lawsuits.

The bill now goes to the House floor.Buesgens amended the bill in committee to

include in the study that the task force modelitself after a Wisconsin program, the TransitMutual Insurance Corporation of Wisconsin.Created in 1986, the program combines thebuying power of its members into one um-brella policy, resulting in a reduced cost fortransit agencies.

Rep. John Dorn (DFL-Mankato) asked if theCommerce Department could do the insur-ance project without specific bill language, orwithout cost.

Buesgens said that while the departmentcould handle the responsibility, it is importantto indicate the legislative intent.

A Senate companion, SF2423, sponsored bySen. Satveer Chaudhary (DFL-Fridley), awaitsaction in the Senate Commerce Committee.

Conflict of interestA new law signed by Gov. Tim Pawlenty

March 19 provides conflict of interest excep-tions for officers of watershed districts and soiland water conservation districts.

Effective March 20, 2004, a statestatute that clarifies conflict of in-terest issues is amended to includethe two political subdivisions.

The law now provides that agoverning body of any port au-

thority, seaway port authority, economic devel-opment authority, watershed district, soil andwater conservation district, town, school district,hospital district, county or city “may contract forgoods and services with an interested officer ofthe governmental unit.” The vote must beunanimous.

Rep. Michael Beard (R-Shakopee) and Sen.Claire Robling (R-Jordan) sponsored the newlaw.

Beard said the change was needed so a wa-tershed district manager in his district couldbe reappointed to the watershed board. Themanager had resigned due to a personal con-flict of interest. The manager’s spouse was apartner in a law firm that had a contract withthe watershed district.

HF1980/SF1799*/CH139

LOCAL GOVERNMENT★

Signedbythe

governor★ ★ ★

Stillwater flood project extensionSometimes the timeline for completing

projects under the Department of NaturalResources flood hazard mitigation grant

program gets a little tight when state, federal,and local bureaucracies and matching dollarsare involved.

HF2350, sponsored by Rep. Eric Lipman(R-Lake Elmo), would extend the timeline fora Stillwater flood project approved by the Leg-islature in 1998. The initial state investmentwas $750,000, and the bill does not ask formore money.

The House Environment and Natural Re-sources Finance Committee approved themeasure March 18 and sent it to the HouseCapital Investment Committee.

The original grant agreement expiredJune 30, 2002. The bill would extend thatagreement until June 30, 2006.

The department commonly holds the last10 percent of the funding until proof ofcompletion is provided, Lipman said.

The city would like to finish the project butit ran into some glitches along the way, includ-ing being held up on the federal side of thefunding equation, Lipman said.

A Senate companion (SF2283), sponsoredby Sen. Michele Bachmann (R-Stillwater),awaits committee action.

METRO AFFAIRS★

Paying electronicallyThe Metropolitan Council can now make pay-

ments by electronic funds transfer, under a newlaw signed by Gov. Tim Pawlenty March 19.

Effective March 20, 2004, statelaw is amended to allow dis-bursement of council money byelectronic funds transfer in ad-dition to checks.

“This will provide (the coun-cil) a cost savings which each state agency has,”said Rep. Mark Buesgens (R-Jordan), prior toHouse approval of the bill.

He and Sen. Chuck Wiger (DFL-North St.Paul) sponsored the law.

The council, a regional planning and ser-vice agency, covers the counties of Anoka,Carver, Dakota, Hennepin, Ramsey, Scott, andWashington.

HF1822/SF1814*/CH140

Signedbythe

governor★ ★ ★

RECREATION★

More snowmobiling lanesTwo-way snowmobiling in ditches along

certain major state highways would be allowed,under a bill that passed the House 131-0March 24.

The bill now moves to the Senate, where Sen.Steve Murphy (DFL-Red Wing) is the sponsor.

HF532 is not a blanket approval of two-waysnowmobile traffic in all ditches, said the bill’ssponsor, Rep. Larry Howes (R-Walker). Des-ignation is subject to approval by the statetransportation commissioner.

Current law restricts snowmobile travelalong highways and roads to the same direc-tion as road traffic.

However, Howes said, there are cases whereit’s safer to allow-two way snowmobile traffic.He cited a portion of trail along a Pine Countyhighway that varies between private and pub-lic land and contains steep ditches. In such acase, he implied, it would be safer to move allsnowmobile traffic to the opposite ditch.

Rep. David Dill (DFL-Crane Lake) spoke infavor of the bill, stating that it’s important torural Minnesotan areas dependent onsnowmobiling tourism. Presented with manyobstacles, some snowmobilers are frustratingenforcement officials by illegally using ditchesfor two-way traffic.

A similar bill was approved at the commit-tee level in the House in 2003, but was strippedfrom an omnibus bill during the special ses-sion, Howes said.

All-terrain ambassadorsA bill that would roll back some restrictions

on off-highway vehicle use on certain types ofwetlands has progressed to a fourth Housecommittee.

The bill (HF2678), sponsored by Rep. TomHackbarth (R-Cedar), would remove type 8wetlands from any restrictions and allow forriding on frozen type 3, 4, and 5 wetlands.These new rules would apply on public landsand private lands where the rider has permis-sion from the landowner.

The House Environment and Natural Re-sources Finance Committee amended the billMarch 18 to include $100,000 for an off-high-way vehicle safety and conservation grant pro-gram and a one-time appropriation of $50,000to pay for a study of the amount of unrefundedgasoline tax attributable to all-terrain vehicleuse.

The bill, which has no Senate companion,was sent to the House Ways and Means Com-mittee. Its provisions are also included in theomnibus environment and natural resourcesfinance bill (HF1867).

The sum for the program includes $75,000from the all-terrain vehicle account, $20,000from the off-road vehicle account, and $5,000from the off-highway motorcycle account.

Under the bill, only statewide organizationsin existence for at least five years would qualifyfor grant program dollars.

The infrastructure isn’t in place to

18 March 26, 2004

SAFETY★

administer the grant program, said GeneLarimore, a member of a citizen advocacygroup known as the Jackpine Coalition.

And, he said, only the All-Terrain VehicleAssociation of Minnesota would qualify forfunds, even though all users pay into the ac-counts. The program would result in taxing190,000 all-terrain vehicle users and giving themoney to only 10,000, he said.

Another provision of the bill would give theDepartment of Natural Resources the optionto leave a state forest classified as managed.

Legislation in 2003 required the departmentto take an inventory of all state forests and by2007 change their designation from managed,meaning trails are open unless posted closed,to limited, meaning trails are closed unlessposted open.

“The users are headed for a very steep learn-ing curve,” DNR Deputy Commissioner MarkHolsten said of the pending trail changes.

The return to where the department has asystem of managed forests is a direct undoingof last year’s legislation and of the compro-mise between motor sports enthusiasts andconservation groups, said Matt Norton, Min-nesota Center for Environmental Advocacyforestry and wildlife advocate.

Several off-highway vehicle bills (SF1673,SF1711, SF1776) await action in the Senate En-vironment and Natural Resources Committee.

Lab cleanup costsCounties would receive funds to help

cleanup abandoned methamphetamine labsites under a bill heard by the House Jobs andEconomic Development Finance CommitteeMarch 23.

Sponsored by Rep. Bob Gunther(R-Fairmont), HF2923 would establish a$250,000 revolving loan for the cleanup ofclandestine lab sites that contain toxic chemi-cals known to contaminate ground water. Cur-rently counties are responsible for the costs,said Gunther, and the price tag averages $3,000to $5,000 per site. Loans would be awardedon a first-come, first-served basis.

The state contains approximately 800 to 900labs, Gunther said, and on average five poundsof toxic residue is left behind. Many propertyowners who rent their property for living quar-ters or storage are unaware of the presence ofa methamphetamine lab until after their prop-erty has been destroyed and the renters aregone. The property owners then face thecleanup costs. For some it is easier to abandonthe property to the county, though the

owners then lose the benefit of the property’spotential value.

The bill would permit the county to sellproperty once it has been repaired and placethe proceeds back into the loan fund estab-lished by the bill.

While HF2923 would help with the “un-funded burden on counties,” Gunther said, themeasure only covers one-sixth of the costscurrently being asked of counties and cities.

Other types of drug labs leave propertyowners in similar situations, said Rep. KarenClark (DFL-Mpls). She asked Gunther if hewould consider including covering the costsof “coke” or “crack” lab clean up.

Gunther said he would consider the additionupon receiving more information on the cost theproblem is currently causing counties.

The committee will consider the measurefor possible inclusion in an omnibus financebill. Funding for the loan is included in thegovernor’s bonding recommendations.

A Senate companion, SF2860, sponsored bySen. Dallas Sams (DFL-Staples), has beenincluded in an omnibus bill (SF1863).

Railroad crossingsA bill, intended to enhance vehicle safety

around railroad crossings, particularly wherethere may be a tendency for traffic to back up,was approved by the House Judiciary Policyand Finance Committee.

Sponsored by Rep. Doug Meslow (R-WhiteBear Lake), the bill (HF2217) would prohibita vehicle stopped at a railroad track due to anoncoming train from proceeding until trafficflow allows clearance of the track on the otherside by at least 10 feet. The bill would apply toall classes of vehicles, including buses. Currentlaw requires a 10-foot clearance only when avehicle is approaching a railroad crossing.

Meslow cited a case in White Bear Lakewhere a car was hit when it straddled the tracksas traffic was backed up. And John Apitz, a law-yer representing the Minnesota Regional Rail-road Association, cited a similar situation inElk River. The drivers were not killed in thesubsequent accidents in either case.

Members of the House Judiciary Policy andFinance Committee on March 18 expressedconcern about enforcement and the need forthe law.

Asked Rep. Rob Eastlund (R-Isanti), “Does itaccomplish anything to make it against the law?”

The fact that many drivers have inadvert-ently broken traffic laws, such as running a redlight, does not negate the need for such a law,Meslow said. “I think it’s important that thereare laws that set out what it is we’re supposedto do.”

Rep. Mary Murphy (DFL-Hermantown)noted that a driver whose vehicle is stuck strad-dling the track due to backed up traffic wouldrisk physical injury, a totaled car, and underthe bill, a ticket.

Rep. Cy Thao (DFL-St. Paul) questionedwhether signage at railroad tracks should berequired to enhance compliance.

Vague language in the bill, said Rep. EricLipman (R-Lake Elmo), represents an invita-tion to legal experts on both sides to fight andserves as a method for railroad companies tokick personal injury claims out of court.

The committee initially voted to reject thebill. Later, a motion by Rep. John Lesch (DFL-St. Paul) to revisit the matter was approved.Following testimony by Apitz, a second voteresulted in approval.

The bill now moves to the House floor. ASenate companion (SF1852), sponsored bySen. Mady Reiter (R-Shoreview), awaits actionby the full Senate.

Honoring fallen MinnesotansThe House passed a bill March 22 that

would require the Minnesota and U.S. flags inthe State Capitol area to be flown at half-staffupon the death of public safety personnelkilled in the line of duty. The vote was 130-0.

Sponsored by Rep. Ray Vandeveer (R-For-est Lake), HF2930 would require the flags tobe flown at half-staff for a period of time de-termined by the governor. “The bill is a way tohonor our police, firefighter, and emergencyservice personnel across the state,” he said.

Rep. Rebecca Otto (DFL-Marine on St.Croix) successfully offered an amendment thatadded Minnesota military personnel killed inthe line of duty to those being honored. “Theyare serving our country and working towardsour safety, as well,” she said.

The flag “represents American workers andAmerican people,” said Rep. Tom Rukavina(DFL-Virginia) in support of the bill. He askedfor Vandeveer’s support in legislation that wouldrequire the flags to be made in the United States.“I hope to be working with you in the future tosolve that problem,” Rukavina said.

Vandeveer said he wouldn’t be opposed toan amendment that would add that require-ment to the bill, but none was offered.

The bill now moves to the Senate where Sen.Mady Reiter (R-Shoreview) is the sponsor.

Officers moving vehiclesA bill that would essentially allow law en-

forcement officers to move any vehicle at thescene of an accident or incident in which pub-lic safety is a concern passed the House

Session Weekly 19

March 22. The vote was 131-0.HF2296, sponsored by Rep. Ron Erhardt

(R-Edina), expands the use of Class D driver’slicenses to licensed, on-duty peace officers foroperation of any vehicle or combination ofvehicles.

Erhardt cited a problem he was trying to solvein which police officers were dispatched to a caseinvolving the potential for explosion of old dy-namite in storage. The officers had to move ve-hicles at the scene. He did not give specifics onthe location or date of the incident.

The bill would limit liability for police of-ficers in operating or clearing vehicles duringthe course of their duties, Erhardt added.

The bill now goes to the Senate, where Sen.Steve Murphy (DFL-Red Wing) is the sponsor.

Victim protectionThe House passed a bill 129-0 on March 22

that would streamline the issuance of ordersfor protection and restraining orders for do-mestic violence victims.

The bill now goes to the governor.HF2491/SF2498* would make ex parte or-

ders for protection and temporary restrainingorders effective upon the signature of a courtreferee.

Rep. Michael Paymar (DFL-St. Paul), theHouse sponsor, said a problem exists in somecounties where orders must be forwarded to ajudge for a counter signature following thereferee’s signature. This delays the process forvictims seeking protection from their abusers,he said.

The bill received support, Paymar added,from the chief judges of Hennepin and Ramseycounties, as well as from domestic violenceprograms.

It passed the Senate 64-0 March 15. Its spon-sor there was Sen. Wesley Skoglund(DFL-Mpls).

For more information regarding abill about teenage drivers, go to theSession Weekly EXTRA Page at:h t t p : / / w w w. h o u s e . m n / h i n f o /swx.asp.

TAXES★

For more information regardingbills about filing paper tax returnsand sales tax at swap meets, go tothe Session Weekly EXTRA Page at:h t t p : / / w w w. h o u s e . m n / h i n f o /swx.asp.

TRANSPORTATION★

Funding provisionsTransportation and transit operations

would be cut 3 percent, and sales tax appro-priations for transit operations would be fro-zen at current levels, under an omnibus billapproved March 24.

The bill (HF3141), sponsored by Rep. Will-iam Kuisle (R-Rochester) and approved by theHouse Transportation Finance Committee, isin keeping with funding cuts proposed by Gov.Tim Pawlenty.

Proposed general fund cuts to transporta-tion budgets for the current 2004-05 fiscal bi-ennium are as follows: Metropolitan Counciltransit, $1.7 million; Department of PublicSafety, $118,000; and Department of Trans-portation, $15,000.

In addition, the amount appropriated frommotor vehicle sales taxes to transit operationswould be frozen at the projected 2004 collec-tion levels. This would be accomplishedthrough changing the current practice of ap-propriating a prescribed percentage of motorvehicle sales taxes to transit to that of a setdollar amount.

The freeze would result in a loss of $4 mil-lion to Metro Transit and $264,000 to GreaterMinnesota transit over the current biennium.

The freeze on motor vehicle sales tax appro-priations would be “the kiss of death” on tran-sit operations, said Nacho Diaz, MetropolitanCouncil director of metropolitan transporta-tion services. He added that other budget cutscombined with inflationary increases have al-ready created problems for transit operations.

The committee voted down two amend-ments from Rep. Alice Hausman (DFL-St. Paul) that would have left the current prac-tice of appropriating a percentage of motor ve-hicle sales tax appropriations in place.

However, the committee did approve otheramendments.

One, offered by Rep. Mary Liz Holberg(R-Lakeville), would allow the MetropolitanCouncil to spend on bus transit the moneyappropriated in 2004 for operation of the newHiawatha light rail transit system. The system’sopening has been stalled by the ongoing MetroTransit driver strike.

A second Holberg amendment would allowthe Metropolitan Council to spend on bustransit any appropriations dedicated to the liv-able communities programs through June 30,2007. Some members opposed the amend-ment, stating it was a policy change best takenup by the House Transportation Policy Com-mittee. Livable communities programs areaimed at creating affordable housing in theTwin Cities metropolitan area.

Diaz said he appreciated the flexibility theHolberg amendments would provide, but saidsuch measures would not solve the larger tran-sit budget crisis.

Most funding for transportation in the statecomes from the trunk highway fund, which issupported by gas tax revenues. The commit-tee proposed no adjustments to trunk high-way fund expenditures.

The bill now moves to the House TaxesCommittee. It has no Senate companion.

Chip Welling of St. Paul tells the House Transpor-tation Finance Committee March 24 about theneed for continued transit funding. The commit-tee was taking public testimony on its omnibusfinance bill.

Policy provisionsPlanning for a second metropolitan beltway

in the Twin Cities metropolitan area, rumblestrips on rural roads, and a pilot taxi project fordisabled riders are moving ahead after approvalMarch 24 of what became the House Transpor-tation Finance Committee policy omnibus bill.

A plan for a possible second beltway wouldbegin under HF2247, sponsored by Rep.Andrew Westerberg (R-Blaine), which haschanged considerably since the bill’s introduc-tion. It now calls for studying the possiblealignment of main highways to serve as asecond beltway outside of the current

20 March 26, 2004

Renewing a rivalryKansas bill would require intrastate universities to meet on the basketball court

Interstates 494 and 694 beltway.The Transportation Department would be

given $100,000 from the trunk highway fundin fiscal year 2005 to make the evaluation inconcert with the Metropolitan Council. A re-port detailing the feasibility of conducting acomprehensive study — including timetablesand right-of-way needs — would be due tothe Legislature by Jan. 15, 2005.

The committee essentially turned the billinto a larger policy omnibus bill by approvingseveral amendments. The bill’s chief sponsoris now Rep. William Kuisle (R-Rochester), thecommittee chair.

Of note was a provision requiring the instal-lation of rumble strips on the centerline of alltwo-lane highways during construction and re-construction in both urban and rural areas. Theamendment, sponsored by Rep. Al Juhnke (DFL-Willmar), would apply to all highway construc-tion contracts authorized after Aug. 1, 2004.

Juhnke said rumble strips are inexpensiveand can save lives by alerting drivers who in-advertently cross centerlines. Seventy-five per-cent of Minnesota’s traffic fatalities occur ontwo-lane roads in rural areas, he said.

A separate amendment, originally introducedas HF1744, would create a nine-month pilot taxisubsidy project for Metro Mobility patrons. Dis-abled patrons denied Metro Mobility bus servicedue to customer backlog would be given subsi-dies to use taxis for transportation.

The amendment was sponsored by Rep.Torrey Westrom (R-Elbow Lake), who said ear-lier that his efforts to get Metro Mobility to makeimprovements have been refused. The service isavailable to people with disabilities in the TwinCities metropolitan area.

School bus inspectionsMechanics, vehicle dealers, or school district

employees could perform state required an-nual inspections of school buses and vehiclesused in Head Start programs, under a billheard March 22 by the House EducationFinance Committee.

Sponsored by Rep. Randy Demmer(R-Hayfield), HF1620 would allow designatedpersons trained and certified by the Departmentof Public Safety to inspect school buses and HeadStart vehicles. The proposal is included in theeducation omnibus finance bill (HF3016).

Under current law, only members of theState Patrol may inspect and certify schoolbuses. A State Patrol representative said thereare 13 inspectors to annually inspect 13,000school buses statewide.

“We need to look at drivers more thanbuses,” said Capt. Ken Urquhart, commanderof commercial vehicle enforcement.

Urquhart referred to two incidents thisschool year in suburban districts where chil-dren had been run over by a school bus. Onekindergarten student was killed.

“There are some folks slipping through thecracks on us,” he said.

Urquhart said the bill would allow the stateto certify certain persons for school bus in-spections after completion of an eight-hourtraining course. A similar program for com-mercial truck fleets has trained 7,000 state cer-tified inspectors, he said.

People that may be certified under the billwould include a school bus owner; an employeeof the owner, school district, or nonpublic schoolthat owns buses; a school bus or Head Start ve-hicle dealer; or a mechanic.

Demmer said school districts could con-tinue to require that State Patrol personnelinspect buses.

Rep. Nora Slawik (DFL-Maplewood) ques-tioned whether businesses owning buses andcontracting with school districts would per-form stringent inspections. “Aren’t there anyissues with a bus owner inspecting its own,”she asked.

“Preventive maintenance is the key to safety,”Demmer said. “The one time a year, 10- to 15-minute inspection is not.”

Urquhart said the bill would still allow thestate to conduct unannounced inspections ofschool bus fleets.

The bill’s Senate companion (SF1550),sponsored by Sen. Steve Dille (R-Dassel),awaits committee action.

The amendment requires the MetropolitanCouncil, which operates Metro Mobility, to re-port to the Legislature on results of the pilotproject by Jan. 15, 2005. It also prohibits the re-newal of any Metro Mobility provider contractsfor 2006 and 2007 until the report is submitted.

A final amendment by Westrom directs theTransportation Department to develop a planfor a statewide 10-ton county and county state-aid highway system. The plan is designed to bol-ster the strength of highways to aid the truckingof forestry, agricultural, and industrial products.

The bill now moves to the House Ways andMeans Committee.

A companion to the original bill (SF2335),sponsored by Sen. Steve Murphy (DFL-RedWing), awaits committee action.

Minnesota politicians may have a stadium de-bate before this session is over, but Kansas legisla-tors are addressing an athletic issue of their own.

There, a bill has been introduced that wouldforce the University of Kansas and Wichita StateUniversity to play a men’s basketball game inboth the 2005-06 and 2006-07 seasons, once oneach team’s home court. The Division I schoolshave not played one another since 1993. Kansashas won 12 of the previous 14 meetings.

Rep. Todd Novascone (R-Wichita), who attendedneither school, is the sponsor of HF2755, a three-paragraph bill that he admits has little chance ofpassage. Novascone considers himself a WichitaState fan, but admits to also cheering for Kansas.

“I’m sick of them not playing each other,” hetold The Wichita Eagle. “Hopefully this will stir uptalk, and if we have a hearing I will certainly makemy case. It might turn into something.”

Or not.Documents presented at a Feb. 18 committee

hearing indicate that Wichita State officials believethe game could generate an additional $5,000 forits home game and the road game would have nomeasurable effect on school finances. However,University of Kansas officials indicate the proposalcould cost them several hundred thousand dol-lars in lost revenue. They cite the loss of revenuefrom a home game, and say that if they played a

more prominent opponent there could be greaterinterest, and possibly national television revenue.This season, two of the Jayhawks non-conferencegames were on ESPN or ESPN2.

Novascone admits this is not the most press-ing issue in the state when compared to thingslike education financing or the state deficit. “Butwhy shouldn’t they play each other? This wouldincrease tourism in Wichita and create a lot ofexcitement. It would just be a cool game.”

However, he said this bill has generated themost reaction to something during his four yearsin the Legislature. “I just wish everybody was thisinterested in school finance and taxes.”

(M. COOK)

Session Weekly 21

AT ISSUE: AGRICULTURE★ ★ ★

BY NICOLE WOOD

Minnesota is teeming with biomass thatcould be used in the production ofeverything from fiber to fuels, lawmak-

ers have been told this session by scientists, ag-ricultural producers, and economicdevelopment experts alike.

The term biomass can be applied to any or-ganic matter available on a renewable basis,whether it’s dedicated energy crops, agricul-tural residues, wood and wood wastes, grasses,or other materials.

The House Agriculture Policy and Jobs andEconomic Development Finance committeesmet jointly March 24 to examine the promiseand potential for agricultural bioscienceprojects, including a practical and immediateuse for biomass in the paper industry.

A panel of University of Minnesota professorsand a state economic development specialistshared some background on a current researchproject under the umbrella of a newly formedMinnesota Biofiber Consortium that grew outof two recent initiatives in the governor’s office:a biosciences council and a task force to exam-ine forestry industry competitiveness.

The group consists of representatives fromstate agencies, agricultural growers and pro-cessors, the university and other research or-ganizations, manufacturers, forestry industryrepresentatives, and economic developmentorganizations who have come together to“conceive and research ways to use agriculturalwastes, byproducts, and crops as feedstock forindustrial materials and products.”

“The future of biotechnology will bringforth projects to use plant materials in waysthat we cannot even imagine,” according toDentley Haugesag, Department of Employ-ment and Economic Development economicdevelopment specialist.

But his next statement was an attempt to reinin expectations for the first phase of consortiumresearch: “This is not one of those projects – atleast not at the outset.” Instead, he said, the ini-tial purpose will be to meet an immediate needfor resource material in the state’s existing paperand engineered wood industries.

A future for biofiberLawmakers examine interdisciplinary, inter-agency research intousing agricultural fiber in paper and engineered wood products

The consortium is not suggesting that theMinnesota forest industry is over-harvesting,said Jim Bowyer, a professor at the university’sDepartment of Wood and Paper Science. Hecited Department of Natural Resources figuresfrom 1998 that reflect net growth exceedingthe harvest rate by 41 percent.

However, Bowyer said, the forest industryis facing some unfavorable realities: the costof wood raw materials is among the highest inthe world, emerging global competitors areproducing fast-growth low-cost wood, theamount of forest land per capita is decreas-ing, and an age class imbalance in the aspenpopulation will limit timber availability tomills within five years.

The availability of biofiber could alleviate thisshort-term problem, Bowyer said, and lookingto nontraditional sources of raw material could

be a potential win-win situation for Minnesota’swood products industry and farmers.

Rep. Gregory Davids (R-Preston) askedwhether a conflict between the agriculturaland forest industries could develop if forestryprices drop.

Minnesota’s forest industry is actively sup-portive of the initiative, Bowyer said. The Sappipaper mill in Cloquet has offered the use oftheir plant to perform the research.

“This is a very conservative industry andnobody likes to let you play with their equip-ment,” Haugesag said. “But that’s exactly whatthey are going to do.”

Potential benefits to augmenting non-woodfiber in paper, structural, and non-structuralproducts beyond alleviating the short-termwood fiber pressures include developing newmarkets for growers, substituting importedpulp for locally grown pulp, and even export-ing those materials outside of the state, panelmembers explained.

The chemical and material demand for re-newable resources will increase fivefold by2020 and fivefold again by 2050, said ShriRamaswamy, a professor at the university’sDepartment of Wood and Paper Science.

Pilot papermaking projects have alreadyshown that a successful product can be madewith 20 percent to 25 percent biofiber,Ramaswamy said, as he passed around a sheetof paper containing 25 percent barley fiber and75 percent wood fiber.

Even University of Minnesota Regents havecaught on to the oncoming tide of biomassresearch.

Effective fall 2004, the Department of Woodand Paper Science at the university will be re-named the Department of Bio-based Products.

The change will reflect research that in-cludes the entire spectrum of biomass beyondwood, said Ramaswamy.

“What’s to keep this industry in the state?”asked Rep. Tim Mahoney (DFL-St. Paul).Mahoney said he would be concerned aboutinvesting a good deal of state money in futurebiofiber initiatives only to lose the manufac-turing to a different state or region.

“We have the trees and agricultural re-sources,” Ramaswamy said matter-of-factly.

“There are very few areas of the countrywith excess biomass,” said Bowyer. “Minnesotais simply an ideal place to try this.”

PHOTO BY TOM OLMSCHEID

Shri Ramaswamy, right, and Jim Bowyer, professorsat the University of Minnesota’s Department ofWood and Paper Science, discuss developments inbiotechnology during a joint hearing of the HouseAgriculture Policy and Jobs and Economic Develop-ment Finance committees March 24.

22 March 26, 2004

AT ISSUE: RECREATION★ ★ ★

construction and operation” of the stadiums,and, once the second stadium was completed,recommend to the governor and the Legislaturea reorganized authority to oversee maintenance,operation, and improvements of the stadiums.

Much of the debate was on the bill’s proposalthat the teams pay at least one-third of its sta-dium project costs, proposed local taxes — es-pecially a general sales tax on goods and servicestoward stadium operations in the host countiesand cities — and creation of “stadium tax incre-ments” as a potential funding mechanism.

The committee approved an amendment by

Rep. Karen Klinzing (R-Woodbury) that re-quires a local government’s proposal for a salestax increase be subject to legislative approval.

Dan McElroy, Gov. Tim Pawlenty’s chief ofstaff, said the stadium issue was “not as im-portant as education, health care, and the en-vironment,” but added that professional sportsbrought an “amenity value” to the state andTwin Cities region. “We need things thatpeople like to do to get them to live here.”

He said the state and the region was unlikelyto keep professional baseball and football fran-chises if the Twins and Vikings “have to stay inthe Metrodome.”

BY TOM LONERGAN

Much like a familiar spring storm, thestadium issue returned to the HouseLocal Government and Metropolitan

Affairs Committee March 23 with sharply con-trasting arguments, conflicting winds of opin-ion, and ultimately no recommendation.

Following nearly eight hours of debate, thecommittee referred HF3089, sponsored by Rep.Doug Stang (R-Cold Spring), without recom-mendation to the House Governmental Opera-tions and Veterans Affairs Policy Committee.

Stang said the stadium issue “has beenaround longer than many legislators.” This ses-sion marks the third time since 1997 fundingfor a baseball stadium has been considered.The Legislature passed a stadium bill in 2002,but it failed to result in a new baseball parkfor a handful of reasons.

The current bill would create a MinnesotaStadium Authority with responsibility for siteselection, lease negotiation, financing, owner-ship, and operation of stadiums for profes-sional baseball and football in the Twin Citiesmetropolitan area.

Minneapolis, assisted by Hennepin County,and St. Paul are offering potential sites for theproposed baseball stadium. Anoka County andBlaine are potential partners for a new foot-ball stadium.

The estimated cost of building two retract-able roofed stadiums could top $1 billion.

“(The bill) is going to change,” Stang said,while predicting it would eventually be “in shapefor the House to vote and pass on (to the Sen-ate).” A companion bill (SF2536), sponsored bySen. Steve Kelley (DFL-Hopkins), awaits com-mittee action.

The stadium authority would consist of sixmembers and a chair, all appointed by the gov-ernor. It would determine the “location, con-struction, financing, and long-term use of twonew stadiums primarily for the use of the Min-nesota Twins and the Minnesota Vikings.”

The authority would choose sites for the twostadiums from proposals submitted by franchiseowners and their proposed host communities,obtain title to “all land and air rights needed for

First pitchLike baseball players in spring training, the latest stadiumdebate is just warming up

The teams have played in that publiclyowned and financed stadium since 1982. Bothteams said they need greater revenue streamsthan can be provided in the stadium.

Reps. Ron Abrams (R-Minnetonka) andAnn Lenczewski (DFL-Bloomington) objectedto stadium backers’ economic impact projec-tions and the proposed authority’s ability toimpose local taxes.

“You don’t do it for economic development,”Abrams said. “(Stadiums) are not a net eco-nomic positive for any city in the country.” Hesaid when the bill reaches the tax committee,which he chairs, “I will bring an economist tocounter the hyped-up projections.”

Lenczewski said a proposed tax on lodging isopposed by hotel owners in Bloomington, whichshe said has more hotel rooms than Minneapo-lis and St. Paul combined.

A Hennepin County sales tax to finance thestadium, if proposed, would fall “dispropor-

tionately” onB l o o m i n g t o n ,Lenczewski added.

“Twenty-two per-cent of the state’spopulation lives inHennepin Countyand the bill says thosepeople should pay forthe stadium,” she said.

Tom Goldstein,publisher of a baseballliterary journal in St.Paul, suggested if thestate has “$300 mil-lion to go to theTwins,” it should ac-quire the team.

“If it’s a public as-set, take the necessaryaction to preserve it.”

The Rev. Ricky Rask of Minneapolis,founder of Fund Kids First, who opposes pub-lic funding of stadiums, reminded legislatorsthat recent polls and past local referendumshave shown little support for the proposal.

“The people you are elected to represent havesaid no time and time again,” she said. “At leastgive them the option of a referendum.”

Testifiers in favor of the bill included TwinCities business and labor representatives, St.Paul Mayor Randy Kelly, Hennepin CountyBoard Chair Randy Johnson, and Steve Novak,manager of governmental services for AnokaCounty.

PHOTO BY TOM OLMSCHEID

Minnesota Twins President Dave St. Peter, left, listens to the committeedebate as Sports Inc. President Jerry Bell, right, reads a portion of theproposed stadium bill during a March 23 meeting of the House LocalGovernment and Metropolitan Affairs Committee.

Session Weekly 23

M A R C H 2 2 - 2 5 , 2 0 0 4HOUSE FILES 3106 - 3141BILL INTRODUCTIONS

★ ★ ★

Monday, March 22

HF3106—Seifert (R)Transportation FinanceMotor vehicle sales tax revenue dedi-cated to the highway user tax distri-bution fund in specified increments.

HF3107—Urdahl (R)Health & Human Services FinanceDassel nursing facilities placed in geo-graphic group II.

HF3108—Westrom (R)TaxesLakes Area Economic DevelopmentAuthority authorized to levy a propertytax.

HF3109—Eken (DFL)Health & Human Services FinanceAlternative care program client premi-ums and income tax rates modified.

HF3110—Lanning (R)TaxesGeothermal equipment sales taxexemption provided.

HF3111—Otremba (DFL)Governmental Operations &Veterans Affairs PolicyPublic Employees Retirement Asso-ciation retirement annuity conver-sion to a disability benefit authorizedfor a specified member.

HF3112—Pugh (DFL)TaxesAdditional sales tax on alcoholic bev-erages replaced with an equivalentgross earnings tax.

HF3113—Kahn (DFL)Governmental Operations &Veterans Affairs PolicyMinneapolis police, fire, and munici-pal employees retirement plan fundingmodifications provided.

HF3114—Magnus (R)Transportation PolicyTown road sign replacement programestablished, and money appropriated.

HF3115—Westrom (R)TaxesBiomass electric generation facilityproperty tax exemption constructiondate requirement extended, and salestax exemption extended.

HF3116—Nornes (R)TaxesPopulation size increased for citiespermitted to hold land for economicdevelopment purposes for 15 years.

HF3117—Kahn (DFL)Commerce, Jobs &Economic Development PolicyUrban riverfronts model ordinancerequired.

HF3118—Simpson (R)Education PolicySchool start date modified, valuationand deferment of taxes provided forcertain homestead resorts, tax pay-ment date delayed, purchases fromresorts exempted from sales tax, andmoney appropriated.

HF3119—Wilkin (R)TaxesCaponi Art Park property tax defer-ment provisions modified.

HF3120—Dorman (R)TaxesLocal sales tax authority granted tocities meeting specified criteria.

HF3121—Mullery (DFL)Judiciary Policy & FinanceCities authorized to seek reimburse-ment from persons booked for pre-trial detention in a county jail whenthe county charges the city for thosecosts.

HF3122—Carlson (DFL)TaxesStructurally substandard buildingdefinition modified relating to taxincrement financing.

HF3123—Sertich (DFL)Commerce, Jobs &Economic Development PolicyUnemployment wage credits earnedexception extended relating to workin school food services.

HF3124—Hornstein (DFL)TaxesMotor vehicle sales tax revenuedeposits specified.

HF3125—Eken (DFL)Health & Human Services FinanceChildren’s services parental costs con-tributions provided, and income taxrates modified.

Wednesday, March 24

HF3126—Dempsey (R)TaxesElectric utility system pollution con-trol equipment property tax exemp-tion eliminated.

HF3127—Dempsey (R)TaxesElectric utilities real and personalproperty tax class rates increased.

HF3128—Nelson, C. (R)TaxesTax increment financing revenue usesauthorized from certain pre-1979 districts.

HF3129—Magnus (R)TaxesWind production energy reports duedate modified, wind production taxdistribution based on previous year’slocal tax rates, and township levy ad-justments authorized for productiontax in 2004.

HF3130—Hackbarth (R)Environment & NaturalResources PolicyTurtle seller’s license restrictionsmodified.

HF3131—Opatz (DFL)Governmental Operations &Veterans Affairs PolicyAge of eligibility to hold elective of-fice lowered to 18 through proposedconstitutional amendment.

HF3132—Kahn (DFL)Health & Human Services PolicyStem cell research state policy estab-lished, and criminal penaltiesimposed.

HF3133—Gunther (R)Jobs & EconomicDevelopment FinanceYouth job skills development state-wide demonstration project fundingprovided, and money appropriated.

HF3134—Kahn (DFL)Environment & NaturalResources PolicyPublic water works sale to privateentity prohibited.

Thursday, March 25

HF3135—Krinkie (R)TaxesTaxation and spending increase lim-its provided for state and local gov-ernment through proposedconstitutional amendment.

HF3136—Thao (DFL)Commerce, Jobs &Economic Development PolicyCouncil on Asian-Pacific Minneso-tans membership appointment addi-tional standards provided.

HF3137—Kuisle (R)Transportation FinanceState general levy increase providedto fund transit services, and publictransit fund established.

HF3138—Huntley (DFL)Higher Education FinanceLow-income nursing student schol-arship program established, andmoney appropriated.

HF3139—Westerberg (R)Governmental Operations &Veterans Affairs PolicyGambling establishments required toacknowledge that the statewide toll-free compulsive gambling telephonenumber is paid for with state funds.

HF3140—Abeler (R)Transportation FinanceNorthstar rail corridor final designand project management fundingprovided, bonds issued, and moneyappropriated.

HF3141—Kuisle (R)TaxesDepartment of Transportation, De-partment of Public Safety, and Met-ropolitan Council appropriationsreduced, motor vehicle tax revenuedeposits limited, and temporary bustransit expenditures authorized.

If you have Internetaccess, visit the

Legislature’s web page at:http://www.leg.mn

24 March 26, 2004

MINNESOTA HOUSE OF REPRESENTATIVESPUBLIC INFORMATION OFFICE

175 STATE OFFICE BUILDING

ST. PAUL, MINNESOTA 55155-1298

FOR MORE INFORMATION

For general information, call:House Information Office(651) 296-2146 or1-800-657-3550

To obtain a copy of a bill, call:Chief Clerk’s Office(651) 296-2314

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MINNESOTA HOUSE OF REPRESENTATIVESPUBLIC INFORMATION OFFICE

175 STATE OFFICE BUILDING

ST. PAUL, MINNESOTA 55155-1298

SPEAKER OF THE HOUSE: STEVE SVIGGUMMAJORITY LEADER: ERIK PAULSEN

MINORITY LEADER: MATT ENTENZA

Senate Information(651) 296-05041-888-234-1112

Senate Index(651) 296-5560

Great Minnesota Get-Together

First year of the Minnesota State Fair ........................................................................................1859Number of years since then the fair was not held ...................................................................... 5Year fair was first held in its current location ......................................................................... 1885Size of fairgrounds, in acres ............................................................................................................. 320Attendance in 2003 ................................................................................................................ 1,741,825

Record attendance (2001) ............................................................................................. 1,762,976Last year the fair received state money ...................................................................................1949Year the fair received legislative permission to create a foundation ...........................2001Percent of financing improvements, grounds maintenance, and fair production

provided through revenue from year-round operation of the fair ........................... 100Fair’s operating income in 2003, in millions ...........................................................................$27.5

Millions spent on expenses, including maintenance of the grounds ...................$26.8Estimated cost for fair officials to complete identified renovations in millions .......$100Millions allocated toward grandstand renovation prior to the 2003 State Fair ........ $5.5

Amount that was public money .................................................................................................. 0Year current grandstand was built ............................................................................................. 1909Millions needed to upgrade auto racing facilities, which fair board of managers chose

not to spend in 2002 .................................................................................................................. $4.5First year of auto racing at the fair ..............................................................................................1904

Last year .......................................................................................................................................... 2002Last year of horse racing at the fair ............................................................................................1949Year the first “big-name” entertainers performed in the Grandstand .......................... 1962Estimated tons of trash and barn waste handled by the sanitation crew in 2003 .... 200Approximate amount, in millions, that fair guests bought in food and beverages at the

2003 fair ............................................................................................................................................ $21Mini-donuts consumed during the 2003 fair ............................................................... 4,056,000

Chocolate chip cookies ................................................................................................... 3,195,480Ounces of French fries .................................................................................................... 3,244,200Individual cheese curds .................................................................................................. 2,600,000Corn dogs ................................................................................................................................ 515,900Ears of corn on the cob ...................................................................................................... 180,967Foot-long hot dogs .............................................................................................................. 183,764

Mileage equivalent if the hot dogs were lined up end-to-end ........................................... 35

Sources: Minnesota State Fair Web site (www.mnstatefair.org), Minnesota State Fair Foundation(www.msffoundation.org), news accounts

I N N E S O T AM I N D E X