Saint Paul, Minnesota, Tuesday, April 2, 1996
Index to today'sJournal
On this day in 1849, Alexander Ramsey received his commissionas Governor of the new Minnesota Territory. Ramsey was the thirdperson offered the post. The first nominee was rejected by theSenate on a party-line vote and the second nominee declined toserve. The House of Representatives convened at 10:00 a.m. and wascalled to order by Irv Anderson, Speaker of the House. Prayer was offered by the Reverend Gerald P. Coleman, Dean ofthe Chapel, Concordia College, St. Paul, Minnesota. The roll was called and the following members were present: The Chief Clerk proceeded to read the Journal of the precedingday. Perlt moved that further reading of the Journal be suspendedand that the Journal be approved as corrected by the Chief Clerk. The motion prevailed.Abrams Farrell Knight Ness SkoglundAnderson, B. Finseth Knoblach Olson, E. SmithAnderson, R. Frerichs Koppendrayer Olson, M. SolbergBakk Garcia Kraus Onnen StanekBertram Girard Krinkie Opatz SviggumBettermann Goodno Larsen Orenstein Swenson, D.Bishop Greenfield Leighton Orfield Swenson, H.Boudreau Greiling Leppik Osskopp SykoraBradley Gunther Lieder Osthoff TomassoniBroecker Haas Lindner Ostrom TompkinsBrown Hackbarth Long Otremba TrimbleCarlson, L. Harder Lourey Ozment TumaCarlson, S. Hasskamp Luther Paulsen TunheimCarruthers Hausman Lynch Pawlenty Van DellenClark Holsten Macklin Pellow Van EngenCommers Huntley Mahon Pelowski VickermanCooper Jaros Mares Perlt WageniusDaggett Jefferson Mariani Peterson WarkentinDauner Jennings Marko Pugh WeaverDavids Johnson, A. McCollum Rest WejcmanDawkins Johnson, R. McElroy Rhodes WenzelDehler Johnson, V. McGuire Rice WinterDelmont Kahn Milbert Rostberg WolfDempsey Kalis Molnau Rukavina WorkeDorn Kelley Mulder Sarna WorkmanEntenza Kelso Munger Schumacher Sp.Anderson,IErhardt Kinkel Murphy Seagren
A quorum was present.
S. F. No. 2175 and H. F. No. 2484, which had been referred tothe Chief Clerk for comparison, were examined and found to beidentical with certain exceptions.
Pugh moved that the rules be so far suspended that S. F. No.2175 be substituted for H. F. No. 2484 and that the House File beindefinitely postponed. The motion prevailed.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9720S. F. No. 2515 and H. F. No. 2728, which had been referred tothe Chief Clerk for comparison, were examined and found to beidentical with certain exceptions.
Mahon moved that the rules be so far suspended that S. F. No.2515 be substituted for H. F. No. 2728 and that the House File beindefinitely postponed. The motion prevailed.
The Speaker announced the appointment of the following membersof the House to a Conference Committee on H. F. No. 219:
Anderson, R.; Murphy; Otremba; Tompkins and Bradley.
The following communications were received:
OFFICE OF THE GOVERNOR
March 28, 1996
Ms. Joan Anderson Growe
Secretary of State
The State of Minnesota
Dear Ms. Growe:
It is my honor to inform you that I have allowed House File No.14, Resolution No. 4, to be filed without my signature.
H. F. No. 14, urging the United Nations to admit the Republicof China as a full member.
Warmest regards,
Arne H. Carlson
Governor
OFFICE OF THE SECRETARY OF STATE
The Honorable Irv Anderson
Speaker of the House of Representatives
The Honorable Allan H. Spear
President of the Senate
I have the honor to inform you that the following enrolled Actof the 1996 Session of the State Legislature has been receivedfrom the Office of the Governor and is deposited in the Office ofthe Secretary of State for preservation, pursuant to the StateConstitution, Article IV, Section 23:
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9721Time andS.F. H.F. Session Laws Date ApprovedDate Filed
No. No. Chapter No. 1996 1996
14Resolution No. 4** March 28
Sincerely,
Joan Anderson Growe
Secretary of State
**[NOTE: House File No. 14, Resolution No. 4, was filed withoutthe Governor's signature.]
S. F. Nos. 2175 and 2515 were read for the second time.
The following House Advisories were introduced:
Farrell; Swenson, D.; Macklin; Smith and Murphy introduced:
H. A. No. 38, A proposal to study probation pilot projects andtheir fiscal impact.
The advisory was referred to the Committee on JudiciaryFinance.
Farrell; Orfield; Pelowski; Johnson, V., and Trimbleintroduced:
H. A. No. 39, A proposal to study computer warranties andservices of retailers and others.
The advisory was referred to the Committee on Commerce, Tourismand Consumer Affairs.
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce that the Senate accedes to the request of theHouse for the appointment of a Conference Committee on theamendments adopted by the Senate to the following House File:
H. F. No. 3012, A bill for an act relating to metropolitangovernment; modifying a certain levy limitation for themetropolitan council; allowing for distribution of funds from thetax base revitalization account to development authorities;authorizing the metropolitan council to issue bonds; requiring atransfer between certain accounts of the council; amendingMinnesota Statutes 1994, section 473.167, subdivision 2a;Minnesota Statutes 1995 Supplement,
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9722sections 473.167, subdivisions 2 and 3; and 473.252; Laws 1989,chapter 279, section 7, subdivision 6; repealing MinnesotaStatutes 1994, section 473.167, subdivision 5; Minnesota Statutes1995 Supplement, section 473.167, subdivision 3a.
The Senate has appointed as such committee:
Mr. Mondale; Mrs. Pariseau; Mr. Murphy; Ms. Flynn and Mr.Day.
Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adoptedthe report of the Conference Committee on:
H. F. No. 3243, A bill for an act relating to the organizationand operation of state government; appropriating money foreconomic development and other purposes; providing forassessments against utilities; amending Minnesota Statutes 1994,sections 116G.151; 138.664, by adding a subdivision; 138.763,subdivision 1; 168.33, subdivision 2; and 469.303; MinnesotaStatutes 1995 Supplement, sections 79.561, subdivision 3; 138.01,by adding a subdivision; Laws 1994, chapter 573, sections 1,subdivisions 6 and 7; 4; and 5, subdivisions 1 and 2; Laws 1995,chapters 231, article 1, section 33; and 224, sections 2,subdivision 2; and 5, subdivision 3; proposing coding for new lawin Minnesota Statutes, chapter 116J; repealing Minnesota Statutes1994, sections 116J.873, subdivisions 1, 2, and 4; 138.662,subdivision 5; and 268.9783, subdivision 8; Minnesota Statutes1995 Supplement, section 116J.873, subdivisions 3 and 5.
The Senate has repassed said bill in accordance with therecommendation and report of the Conference Committee. SaidHouse File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the followingHouse File, herewith returned, as amended by the Senate, in whichamendment the concurrence of the House is respectfullyrequested:
H. F. No. 2318, A bill for an act relating to lawful gambling;regulating expenditures and reports; providing enforcementpowers; removing the restriction on compensation to persons whoparticipate in the conduct of lawful gambling; amending MinnesotaStatutes 1994, sections 349.151, subdivision 4; 349.166,subdivisions 2 and 3; 349.18, subdivision 1; and 349.19,subdivision 3; repealing Minnesota Statutes 1994, section349.168, subdivision 3.
Patrick E. Flahaven, Secretary of the Senate
Dorn moved that the House refuse to concur in the Senateamendments to H. F. No. 2318, that the Speaker appoint aConference Committee of 3 members of the House, and that theHouse requests that a like committee be appointed by the Senateto confer on the disagreeing votes of the two houses. The motionprevailed.
Mr. Speaker:
I hereby announce the adoption by the Senate of the followingSenate Concurrent Resolution, herewith transmitted:
Senate Concurrent Resolution No. 15, A senate concurrentresolution relating to the delivery of bills to the governorafter final adjournment.
Patrick E. Flahaven, Secretary of the Senate
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9723Carruthers moved that the rules be so far suspended that SenateConcurrent Resolution No. 15 be now considered and be placed uponits adoption. The motion prevailed.
Senate Concurrent Resolution No. 15, A senate concurrentresolution relating to the delivery of bills to the governorafter final adjournment.
Whereas, the Minnesota Constitution, Article IV, Section 23,authorizes the presentation to the Governor after sine dieadjournment of bills that passed in the last three days of theSession; Now, Therefore,
Be It Resolved by the Senate of the State of Minnesota, theHouse of Representatives concurring, that upon adjournment sinedie of the 79th regular session of the Legislature, bills shallbe presented to the Governor as follows:
(a) The Speaker of the House of Representatives, the ChiefClerk of the House of Representatives, the President of theSenate, and the Secretary of the Senate shall certify and signeach bill in the same manner and upon the same certification aseach bill is signed for presentation to the Governor prior toadjournment sine die, and each of those officers shall continuein his designated capacity during the three days following thedate of final adjournment.
(b) The Chief Clerk of the House of Representatives and theSecretary of the Senate, in accordance with the rules of therespective bodies and under the supervision and direction of thestanding Committee on Rules and Legislative Administration andthe standing Committee on Rules and Administration, shallcarefully enroll each bill and present them to the Governor inthe same manner as each bill is enrolled and presented to theGovernor prior to the adjournment of the Legislature sine die.
(c) The Revisor of Statutes shall continue to assist in all ofthe functions relating to enrollment of bills of the House ofRepresentatives and of the Senate under the supervision of theChief Clerk of the House of Representatives and the Secretary ofthe Senate in the same manner that the assistance was renderedprior to the adjournment of the Legislature sine die.
Be It Further Resolved that the Secretary of the Senate isdirected to deliver copies of this resolution to the Governor andthe Secretary of State.
Carruthers moved that Senate Concurrent Resolution No. 15 benow adopted. The motion prevailed and Senate ConcurrentResolution No. 15 was adopted.
Mr. Speaker:
I hereby announce the passage by the Senate of the followingSenate File, herewith transmitted:
S. F. No. 918, A bill for an act relating to state government;proposing an amendment to the Minnesota Constitution, article V,sections 1, 3, and 4; article VIII, section 2; article XI,sections 7 and 8; abolishing the office of state treasurer;transferring or repealing the powers, responsibilities, andduties of the state treasurer; amending Minnesota Statutes 1994,sections 9.011, subdivision 1; and 11A.03.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the followingSenate Files, herewith transmitted:
S. F. No. 2884, A bill for an act relating to taxation;updating to changes in federal law; allowing an extension to fileindividual income tax returns and property tax refunds fornational guard and reserve members who are called to active duty;providing filing extensions for individuals who perform servicesfor the peacekeeping efforts in Bosnia
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9724and Herzegovina, Croatia, and Macedonia; amending MinnesotaStatutes 1994, section 289A.39, subdivision 1; Minnesota Statutes1995 Supplement, sections 289A.02, subdivision 7; 290.01,subdivisions 19 and 31; and 291.005, subdivision 1; Laws 1995,chapter 264, article 10, section 15.
S. F. No. 1887, A bill for an act relating to human services;directing the department of human services to determine and paycertain compensation of the appeals panel along with allowablefees and costs of patient's counsel; extending the state'sauthority to obtain a lien when covering medical care for aperson; adding provisions to notice required for monetary claims;amending Minnesota Statutes 1994, sections 253B.19, subdivision1; 256.015, subdivision 4; and 256B.042, subdivisions 1 and 4;Minnesota Statutes 1995 Supplement, sections 256.015,subdivisions 1 and 2; 256B.042, subdivision 2; and 256D.045.
Patrick E. Flahaven, Secretary of the Senate
On the motion of Carruthers and on the demand of 10 members, acall of the House was ordered. The following members answered totheir names:
Abrams Finseth Koppendrayer Olson, M. SolbergAnderson, B. Frerichs Kraus Onnen StanekBakk Garcia Krinkie Opatz SviggumBertram Girard Larsen Orenstein Swenson, D.Bettermann Goodno Leighton Orfield Swenson, H.Boudreau Greenfield Leppik Osskopp SykoraBradley Greiling Lieder Osthoff TomassoniBroecker Gunther Lindner Ostrom TompkinsBrown Haas Long Otremba TrimbleCarlson, L. Hackbarth Lourey Ozment TumaCarlson, S. Harder Lynch Paulsen TunheimCarruthers Hasskamp Macklin Pawlenty Van DellenClark Hausman Mahon Pellow Van EngenCommers Holsten Mares Pelowski VickermanCooper Huntley Mariani Perlt WageniusDaggett Jaros Marko Peterson WarkentinDauner Jefferson McCollum Pugh WeaverDavids Johnson, A. McElroy Rest WejcmanDawkins Johnson, R. McGuire Rhodes WenzelDehler Johnson, V. Milbert Rostberg WinterDelmont Kahn Molnau Rukavina WolfDempsey Kelley Mulder Sarna WorkeDorn Kelso Munger Schumacher WorkmanEntenza Kinkel Murphy Seagren Sp.Anderson,IErhardt Knight Ness Skoglund Farrell Knoblach Olson, E. SmithCarruthers moved that further proceedings of the roll call be suspended andthat the Sergeant at Arms be instructed to bring in theabsentees. The motion prevailed and it was so ordered.
The following Conference Committee Report was received:
A bill for an act relating to transportation; allowingcommissioner of transportation to act as agent to accept federalmoney for nonpublic organizations for transportation purposes;increasing maximum lump sum utility adjustment amount allowed forrelocating utility facility; eliminating percentage limit forfunding transportation research projects and providing forfederal research funds and research partnerships; allowingcounties more authority in disbursing certain state-aid highwayfunds; exempting charter buses from certain requirements of truckweight enforcement operations; regulating erection of highwaysigns identifying entrance into municipality; eliminatingrequirement to have permit identifying number affixed to highwaybillboard; providing for use and maintenance of hydrants locatedwithin right-of-way of public roads; eliminating legislativeroute No. 331 from trunk highway system and turning it back tothe jurisdiction of Fillmore county; making technicalcorrections; amending Minnesota Statutes 1994, sections 161.085;161.36, subdivisions 1, 2, 3, and 4; 161.46, subdivision 3;161.53; 162.08, subdivisions 4 and 7; 162.14, subdivision 6;169.85; 173.02, subdivision 6; 173.07, subdivision 1; 174.04; and222.37, subdivision 1; proposing coding for new law in MinnesotaStatutes, chapter 173; repealing Minnesota Statutes 1994,sections 161.086; 161.115, subdivision 262.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9725March 30, 1996
The Honorable Irv Anderson
Speaker of the House of Representatives
The Honorable Allan H. Spear
President of the Senate
We, the undersigned conferees for H. F. No. 1404, report thatwe have agreed upon the items in dispute and recommend asfollows:
That the Senate recede from its amendments and that H. F. No.1404 be further amended as follows:
Delete everything after the enacting clause and insert:
Section 1. [TRANSPORTATION AND OTHER AGENCIESAPPROPRIATIONS.]
The sums in the columns headed "APPROPRIATIONS" areappropriated from the general fund, or another named fund, to theagencies and for the purposes specified, and are added toappropriations for the fiscal years ending June 30, 1996, andJune 30, 1997, in Laws 1995, chapter 265, or other named law.
1996 1997
General Fund $.,...,-0-,...$ 12,140,000
Highway User Tax Distribution Fund .,...,-0-,...160,000
Trunk Highway Fund 9,687,00076,154,000
County State Aid Fund .,...,-0-,...100,000
Sec. 2. DEPARTMENT OF TRANSPORTATION 9,687,00074,073,000
(a) State Road Construction
9,687,000 62,926,000
The appropriations for fiscal years1996 and 1997 are from the trunkhighway fund for state roadconstruction and are added to theappropriations in Laws 1995, chapter265, article 2, section 2,subdivision 7, clause (a).
(b) Design Engineering andConstruction Engineering
9,137,000
This appropriation for fiscal year1997 is from the trunk highway fundfor design engineering andconstruction engineering and is addedto the appropriations in Laws 1995,chapter 265, article 2, section 2,subdivision 7, clauses (d) and (e),as needed.
For the purpose of Laws 1995, chapter254, article 1, section 93, paragraph(a), "contracts for highwayconstruction or maintenance" includescontracts for design engineering andconstruction engineering.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 97261996 1997
(c) Greater Minnesota TransitAssistance
1,500,000
This appropriation for fiscal year1997 is for greater Minnesota transitassistance and is added to theappropriation in Laws 1995, chapter265, article 2, section 2,subdivision 3, clause (a). Anyunencumbered balance in that clausefor fiscal year 1996 does not cancelbut is available for the secondyear.
(d) General Management
200,000
$200,000 is appropriated from thegeneral fund for the purpose ofconvening a telecommuting communitydialogue process to gatherinformation on existingtelecommunication systems, conductpublic opinion polls via theInternet, and develop recommendationson improving the integration andcoordination of telecommunicationsystems. The department shall reportfindings and recommendations to thelegislature by February 15, 1997. This appropriation is available onreceipt by the commissioner of$100,000 of matching contributions ofmoney from nonstate sources.
(e) Shingobee Road
100,000
$100,000 is appropriated from thetown road account in the countystate-aid highway fund before theapportionment otherwise required tobe made under Minnesota Statutes,section 162.081, subdivisions 2 and3, for the purpose of making a grantto the town of Shingobee in Casscounty to improve the Ah-Gwah-Chingcutoff road. The appropriation isavailable if the commissionerdetermines that the Shingobee townboard has made a commitment toestablish the road as a town roadupon completion of theimprovement.
(f) Stone Arch Bridge
110,000
The appropriation is for the repairof the Stone Arch Bridge.
(g) Driver Education Programs
100,000
This appropriation is for a grant tothe Minnesota highway safety centerat St. Cloud State University fordriver education programs.
Sec. 3. METROPOLITAN COUNCIL 10,000,000
This appropriation for fiscal year1997 is for metropolitan transitoperations and is added to theappropriation in Laws 1995,chapter 265, article 2, section 3.
Notwithstanding the limit on spendingfor metro mobility in Laws 1995,chapter 265, article 2, section 3,the metropolitan council may spend upto $1,600,000 of this appropriationfor metro mobility.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 97271996 1997
Of this appropriation, the councilmay spend up to $625,000 in fiscalyear 1997 to implement the high-speedbus demonstration project authorizedin Laws 1995, chapter 265, article 2,section 3.
The council shall not increase itstransit fares before July 1, 1997.
Sec. 4. DEPARTMENT OF PUBLIC SAFETY 4,481,000
Summary by Fund
General..,-0-,... 230,000
Trunk Highway..,-0-,...4,091,000
Highway User Tax
Distribution Fund ..,-0-,...160,000
(a) State Patrol
3,261,000
Of this appropriation, $150,000 isfrom the trunk highway fund for fouradditional radio communicationoperators.
Of this appropriation, $3,111,000 isfrom the trunk highway fund for 40additional state patrol troopers.
No part of this appropriation may bespent for salary supplements.
(b) Driver and Vehicle Services
336,000
$14,000 from the highway user taxdistribution fund and $65,000 fromthe trunk highway fund are for costsrelated to the implementation ofMinnesota Statutes, section168.042.
$113,000 is from the highway user taxdistribution fund and is added to theappropriations in Laws 1995, chapter265, article 2, section 5,subdivision 4. This appropriation isfor costs related to driver's licenseand motor vehicle registrationrecords and is available only to theextent required to comply with a laweffective during fiscal year 1997that substantially changes the dataprivacy status of these records.
$111,000 is from the general fund toimplement Minnesota Statutes, section171.07, subdivision 11.
$33,000 is from the highway user taxdistribution fund for programmingcosts related to registration taxrefunds for rental motor vehicles.
(c) Administration and RelatedServices
884,000
This appropriation for fiscal year1997 is added to the appropriationsin Laws 1995, chapter 265, article 2,section 5, subdivision 2.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9728This appropriation is for agencycritical operations systems. Of thisappropriation, $765,000 is from thetrunk highway fund.
(d) Critical Habitat Matching
The commissioner of public safetyshall determine whether the feescollected under Minnesota Statutes,section 168.1296, for criticalhabitat license plates have beensufficient to cover the costs ofhandling and manufacturing thelicense plates during the bienniumending June 30, 1997. If the feeshave been deficient, the amount ofthe deficiency is appropriated fromthe Minnesota critical habitatprivate sector matching account inthe reinvest in Minnesota resourcesfund for transfer to the highway usertax distribution fund.
Sec. 5. Minnesota Statutes 1994, section 162.02, subdivision7, is amended to read:
Subd. 7. [ESTABLISHMENT IN NEW LOCATION OR OVER ESTABLISHEDROADS.] The county board of any county may establish and locateany county state-aid highway on new location where there is noexisting road, or it may establish and locate the highway upon orover any established road or street or a specified portionthereof within its limits; provided, that. Except asprovided in subdivision 8a, no county state-aid highway shallbe established or located within the corporate limits of any citywithout the approval of the governing body of the city, exceptthat when a county state-aid highway is relocated the approval ofthe plans by the governing body shall be deemed to be a transferof the previous location of the highway to the jurisdiction ofthe city. The approval shall be in the manner and form requiredby the commissioner.
Sec. 6. Minnesota Statutes 1994, section 162.02, subdivision8, is amended to read:
Subd. 8. [APPROVAL BY CITY.] Except as provided insubdivision 8a, no portion of the county state-aid highwaysystem lying within the corporate limits of any city shall beconstructed, reconstructed, or improved nor the grade thereofchanged without the prior approval of the plans by the governingbody of such city and the approval shall be in the manner andform required by the commissioner.
Sec. 7. Minnesota Statutes 1994, section 162.02, is amended byadding a subdivision to read:
Subd. 8a. [DISPUTE RESOLUTION BOARD.] If a city hasfailed to approve establishment, construction, reconstruction, orimprovement of a county state-aid highway within its corporatelimits under subdivision 7 or 8, the county board may, byresolution, request the commissioner to appoint a disputeresolution board consisting of one county commissioner, onecounty engineer, one city council member or city mayor, one cityengineer, and one representative of the department oftransportation. The board shall review the proposed change andmake a recommendation to the commissioner. Notwithstanding anyother law, the commissioner may approve the establishment,construction, reconstruction, or improvement of a countystate-aid highway recommended by the board.
Sec. 8. Minnesota Statutes 1994, section 162.07, subdivision1, is amended to read:
Subdivision 1. [FORMULA.] After deducting for administrativecosts and for the disaster account and research account and statepark roads as heretofore provided, the remainder of the total sumprovided for in section 162.06, subdivision 1, shall beidentified as the apportionment sum and shall be apportioned bythe commissioner to the several counties on the basis of theneeds of the counties as determined in accordance with thefollowing formula:
(1) An amount equal to ten percent of the apportionment sumshall be apportioned equally among the 87 counties.
(2) An amount equal to ten percent of the apportionment sumshall be apportioned among the several counties so that eachcounty shall receive of such amount the percentage that its motorvehicle registration for the calendar year preceding the one lastpast, determined by residence of registrants, bears to the totalstatewide motor vehicle registration.
(3) An amount equal to 30 percent of the apportionment sumshall be apportioned among the several counties so that eachcounty shall receive of such amount the percentage that its totalmiles lane-miles of approved county state-aidhighways bears to the total miles lane-miles ofapproved statewide county state-aid highways.
(4) An amount equal to 50 percent of the apportionment sumshall be apportioned among the several counties so that eachcounty shall receive of such amount the percentage that its moneyneeds bears to the sum of the money needs of all of theindividual counties; provided, that the percentage of such amountthat each county is to receive shall be adjusted so that eachcounty shall receive in 1958 a total apportionment at least tenpercent greater than its total 1956 apportionments from the stateroad and bridge fund; and provided further that those countieswhose money needs are thus adjusted shall never receive apercentage of the apportionment sum less than the percentage thatsuch county received in 1958.
Sec. 9. Minnesota Statutes 1994, section 162.07, subdivision5, is amended to read:
Subd. 5. [SCREENING BOARD.] On or before September 1 of eachyear the county engineer of each county shall forward to thecommissioner, on forms prepared by the commissioner, allinformation relating to the mileage, in lane-miles, of thecounty state-aid highway system in the county, and the moneyneeds of the county that the commissioner deems necessary inorder to apportion the county state-aid highway fund inaccordance with the formula heretofore set forth. Upon receiptof the information the commissioner shall appoint a boardconsisting of nine the following countyengineers. The board shall be so selected that each countyengineer appointed shall be from a different state highwayconstruction district:
(1) two county engineers from the metropolitan highwayconstruction district;
(2) one county engineer from each nonmetropolitan highwaydistrict; and
(3) one additional county engineer from each county with apopulation of 175,000 or more.
No county engineer shall be appointed under clause (1) or(2) so as to serve consecutively for more than twofour years. The board shall investigate and review theinformation submitted by each county and shall on or before thefirst day of November of each year submit its findings andrecommendations in writing as to each county's mileagelane-mileage and money needs to the commissioner on a formprepared by the commissioner. Final determination of themileage lane-mileage of each system and the moneyneeds of each county shall be made by the commissioner.
Sec. 10. Minnesota Statutes 1994, section 162.07, subdivision6, is amended to read:
Subd. 6. [ESTIMATES TO BE MADE IF INFORMATION NOT PROVIDED.]In the event that any county shall fail to submit the informationprovided for herein, the commissioner shall estimate themileage lane-mileage and the money needs of thecounty. The estimate shall be used in determining theapportionment formula. The commissioner may withhold payment ofthe amount apportioned to the county until the information issubmitted.
Sec. 11. Minnesota Statutes 1994, section 169.14, subdivision2, is amended to read:
Subd. 2. [SPEED LIMITS.] (a) Where no special hazard existsthe following speeds shall be lawful, but any speeds in excess ofsuch limits shall be prima facie evidence that the speed is notreasonable or prudent and that it is unlawful; except that thespeed limit within any municipality shall be a maximum limit andany speed in excess thereof shall be unlawful:
(1) 30 miles per hour in an urban district;
(2) 65 miles per hour in other locations during thedaytime on freeways and expressways, as defined insection 160.02, subdivision 16, outside the limits of anyurbanized area with a population of greater than 50,000 asdefined by order of the commissioner of transportation;
(3) 55 miles per hour in such other locations duringthe nighttime other than those specified in thissection;
(4) ten miles per hour in alleys; and
(5) 25 miles per hour in residential roadways if adopted by theroad authority having jurisdiction over the residentialroadway.
(b) A speed limit adopted under paragraph (a), clause (5), isnot effective unless the road authority has erected signsdesignating the speed limit and indicating the beginning and endof the residential roadway on which the speed limit applies.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9730 (c) "Daytime" means from a half hour before sunrise to ahalf hour after sunset, except at any time when due to weather orother conditions there is not sufficient light to render clearlydiscernible persons and vehicles at a distance of 500 feet. "Nighttime" means at any other hour or at any time when due toweather or other conditions there is not sufficient light torender clearly discernible persons and vehicles at a distance of500 feet.
Sec. 12. Minnesota Statutes 1994, section 169.14, is amendedby adding a subdivision to read:
Subd. 4a. [ESTABLISHMENT OF SPEEDS ON INTERSTATEHIGHWAYS.] Notwithstanding subdivision 4, the commissioner mayby order designate a maximum lawful speed for interstate highwaysoutside the limits of any urbanized area with a population ofgreater than 50,000 as defined by order of the commissioner, withor without an engineering and traffic investigation. The ordermay apply to all such interstate highways or to specificinterstate highways identified in the order.
Sec. 13. Minnesota Statutes 1994, section 169.983, is amendedto read:
169.983 [SPEEDING VIOLATIONS; CREDIT CARD PAYMENT OF FINES.]
The officer who issues a citation for a violation by a personwho does not reside in Minnesota of section 169.14or 169.141 shall give the defendant the option to pleadguilty to the violation upon issuance of the citation and to paythe fine to the issuing officer with a credit card.
The commissioner of public safety shall adopt rules toimplement this section, including specifying the types of creditcards that may be used.
Sec. 14. Minnesota Statutes 1994, section 169.99, subdivision1b, is amended to read:
Subd. 1b. [SPEED.] The uniform traffic ticket must provide ablank or space wherein an officer who issues a citation for aviolation of section 169.141 169.14, subdivision 2,paragraph (a), clause (3), must specify whether the speed wasgreater than ten miles per hour in excess of the lawfulspeed designated under that section.
Sec. 15. Minnesota Statutes 1994, section 171.12, subdivision6, is amended to read:
Subd. 6. [CERTAIN CONVICTIONS NOT RECORDED.] The departmentshall not keep on the record of a driver any conviction for aviolation of section 169.141 169.14, subdivision 2,paragraph (a), clause (3), unless the violation consisted ofa speed greater than ten miles per hour in excess of the lawfulspeed designated under that section.
Sec. 16. Minnesota Statutes 1995 Supplement, section 296.02,subdivision 1b, is amended to read:
Subd. 1b. [RATES IMPOSED.] The gasoline excise tax is imposedat the following rates:
(a) From June 1, 1996, to March 31, 1997:
(1) E85 is taxed at the rate of 14.2 15.6 centsper gallon;
(2) M85 is taxed at the rate of 11.4 12.5 centsper gallon; and
(3) all other gasoline is taxed at the rate of 2022 cents per gallon.
(b) From April 1, 1997, to March 31, 1998:
(1) E85 is taxed at the rate of 17 cents per gallon;
(2) M85 is taxed at the rate of 13.7 cents per gallon;and
(3) all other gasoline is taxed at the rate of 24 cents pergallon.
(c) On and after April 1, 1998:
(1) E85 is taxed at the rate of 17.7 cents pergallon;
(2) M85 is taxed at the rate of 14.3 cents per gallon;and
(3) all other gasoline is taxed at the rate of 25 cents pergallon.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9731Sec. 17. Minnesota Statutes 1995 Supplement, section 296.025,subdivision 1b, is amended to read:
Subd. 1b. [TAX RATES.] The special fuel excise tax is imposedat the following rates:
(a) From June 1, 1996, to March 31, 1997:
(1) Liquefied petroleum gas or propane is taxed at the rate of15 16.5 cents per gallon.
(2) Liquefied natural gas is taxed at the rate of 1213.2 cents per gallon.
(3) Compressed natural gas is taxed at the rate of$1.739 $1.913 per thousand cubic feet; or 2022 cents per gasoline equivalent, as defined by theNational Conference on Weights and Measures, which is 5.66 poundsof natural gas.
(4) All other special fuel is taxed at the same rate as thegasoline excise tax.
(b) From April 1, 1997, to March 31, 1998:
(1) Liquefied petroleum gas or propane is taxed at the rateof 18 cents per gallon.
(2) Liquefied natural gas is taxed at the rate of 14.4 centsper gallon.
(3) Compressed natural gas is taxed at the rate of $2.087per thousand cubic feet; or 24 cents per gasoline equivalent, asdefined by the National Conference on Weights and Measures, whichis 5.66 pounds of natural gas.
(4) All other special fuel is taxed at the same rate as thegasoline excise tax.
(c) On and after April 1, 1998:
(1) Liquified petroleum gas or propane is taxed at the rateof 18.7 cents per gallon.
(2) Liquified natural gas is taxed at the rate of 15 centsper gallon.
(3) Compressed natural gas is taxed at the rate of $2.174per thousand cubic feet; or 25 cents per gasoline equivalent, asdefined by the National Conference on Weights and Measures, whichis 5.66 pounds of natural gas.
(4) All other special fuel is taxed at the same rate as thegasoline excise tax.
Sec. 18. Minnesota Statutes 1994, section 297B.09, subdivision1, is amended to read:
Subdivision 1. [GENERAL FUND SHARE.] (a) Moneycollected and received under this chapter must be deposited inthe state treasury and credited to the general fund. Theamounts collected and received shall be credited as provided inthis subdivision, and transferred from the general fund on July15 and February 15 of each fiscal year. The commissioner offinance must make each transfer based upon the actual receipts ofthe preceding six calendar months and include the interest earnedduring that six-month period. The commissioner of finance mayestablish a quarterly or other schedule providing for morefrequent payments to the transit assistance fund if thecommissioner determines it is necessary or desirable to providefor the cash flow needs of the recipients of money from thetransit assistance fund.
(b) Twenty-five percent of the money collected and receivedunder this chapter after June 30, 1990, and before July 1, 1991,must be transferred to the highway user tax distribution fund andthe transit assistance fund for apportionment as follows: 75percent must be transferred to the highway user tax distributionfund for apportionment in the same manner and for the samepurposes as other money in that fund, and the remaining 25percent of the money must be transferred to the transitassistance fund to be appropriated to the commissioner oftransportation for transit assistance within the state and to themetropolitan council.
(c) The distributions under this subdivision to the highwayuser tax distribution fund until June 30, 1991, and to the trunkhighway fund thereafter, must be reduced by the amount necessaryto fund the appropriation under section 41A.09, subdivision 1.For the fiscal years ending June 30, 1988, and June 30, 1989, thecommissioner of finance, before making the transfers required onJuly 15 and January 15 of each year, shall estimate the amountrequired to fund the appropriation under section 41A.09,subdivision 1, for the six-month period for which the transfer isbeing
made. The commissioner shall then reduce the amount transferredto the highway user tax distribution fund by the amount of thatestimate. The commissioner shall reduce the estimate for anysix-month period by the amount by which the estimate for theprevious six-month period exceeded the amount needed to fund theappropriation under section 41A.09, subdivision 1, for thatprevious six-month period. If at any time during a six-monthperiod in those fiscal years the amount of reduction in thetransfer to the highway user tax distribution fund isinsufficient to fund the appropriation under section 41A.09,subdivision 1, for that period, the commissioner shall transferto the general fund from the highway user tax distribution fundan additional amount sufficient to fund the appropriation forthat period, but the additional amount so transferred to thegeneral fund in a six-month period may not exceed the amounttransferred to the highway user tax distribution fund for thatsix-month period. The legislature shall appropriate notless than 30 percent of the amount collected to the commissionerof transportation and to the metropolitan council for transitassistance.
Sec. 19. [CONSTITUTIONAL AMENDMENT PROPOSED.]
An amendment is proposed to the Minnesota Constitution,article XIV. If the amendment is adopted article XIV will beamended by adding a section to read:
Sec. 12. The legislature may levy a sales or excise tax onthe purchase price of new and used motor vehicles. Not less than30 percent of the net proceeds from this tax must be dedicatedexclusively to assisting public transit in the state.
Sec. 20. [SUBMISSION TO VOTERS.]
The constitutional amendment proposed in section 19 must besubmitted to the people at the 1996 general election. Thequestion submitted must be:
"Shall the Minnesota Constitution be amended to require thatat least 30 percent of the net proceeds from a sales tax leviedon the purchase price of new and used motor vehicles be dedicatedexclusively to assisting public transit in the state?
Yes .......
No ........"
Sec. 21. [DRIVER'S LICENSE FEES; DEPOSIT IN GENERAL FUND.]
Notwithstanding Minnesota Statutes, section 171.26, up to$100,000 in revenues received under Minnesota Statutes, chapter171, in fiscal year 1997 shall be deposited in the general fund. This deposit is in addition to any deposit of revenue in thegeneral fund under Minnesota Statutes, section 171.07,subdivision 11.
Sec. 22. [REPEALER.]
Minnesota Statutes 1994, section 169.141, is repealed. Anyorder issued under that section is void.
Sec. 23. [EFFECTIVE DATE.]
(a) Any provision making an appropriation for fiscal year1996 is effective the day following final enactment.
(b) Section 21 is effective July 1, 1996.
(c) Sections 16 and 17 are effective June 1, 1996. Section16 applies to all gasoline in distributor storage on thatdate.
(d) Sections 11 to 15 and 22 are effective May 1,1996.
Section 1. The sums in the column under "APPROPRIATIONS" areappropriated from the trunk highway fund to the state agencies orofficials indicated, to be spent to acquire and to better publicland and buildings and other public improvements of a capitalnature, as specified in this article.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9733APPROPRIATIONS
Sec. 2. FACILITY PROJECTS 21,639,000
This appropriation is from the trunkhighway fund to the commissioner oftransportation for the purposesspecified in paragraphs (a) and(b).
(a) Trunk Highway Facility Projects 20,454,000
(1) For construction documents,construction, furnishing, andequipping of Bemidji headquartersbuilding to replace the existingfacility. The new facility willhouse the district staff, supportservices, design, construction,right-of-way, materials engineering,maintenance, radio shop, inventorycenter, vehicle maintenance, vehiclestorage, bridge maintenance, and
building services 9,000,000
(2) Repair, replace, construct, ordevelop additions to chemical andsalt storage buildings at 29department of transportation
locations statewide 1,000,000
(3) For schematic design, designdevelopment, construction documents,construction, furnishing, andequipping of an addition
to the Rochester district office and state patrol center 1,260,000
(4) Construct, furnish, and equip anew equipment storage
building on a new site in Pipestone to replace the existingfacility 520,000
(5) Construct, furnish, and equip anew equipment storage building on anew site in Deer Lake to combine andreplace
existing operations at Togo and Effie 644,000
(6) Construct, furnish, and equip anew equipment storage building
on a new site in Rushford to replace the existing facility 663,000
(7) For construction documents,construction, furnishing, andequipping of an addition to thecentral services building at Fort
Snelling for heated storage 855,000
(8) Schematic design, designdevelopment, and constructiondocuments for projects at Duluth, St.Cloud, Jordan, Fort
Snelling, Golden Valley, and a new record building 677,000
(9) Design, construction, equipping,and furnishing of an addition
to the Garrison truck station and related improvements 206,000
(10) For construction documents,construction, furnishing, and
equipping of an addition to the Hastings truck station 1,362,000
(11) Construct, furnish, and equip anew equipment storage building
on a new site in Gaylord to replace the existing facility 680,000
(12) Remove asbestos from variousdepartment of transportation
buildings statewide 200,000
(13) Construct, furnish, and equip anew equipment storage building on anew site in Hibbing to replace theexisting facility. Minnesota
Statutes, section 16B.33, does not apply to this project 1,237,000
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9734(14) Design, construction, equipping,and furnishing of an addition
to the Long Prairie truck station and related improvements 215,000
(15) Design, construction, equipping,and furnishing of an addition
to the Forest Lake truck station and related improvements 451,000
(16) Design, construction, equipping,and furnishing of an addition
to the Erskine truck station and related improvements 300,000
(17) Design, construction, equipping,and furnishing of an addition
to the Dilworth truck station and related improvements 514,000
(18) Construct, furnish, and equipclass II safety rest areas in
Fillmore county, Cook county, and Kanabec county 120,000
(19) Construct pole-type storagebuildings at department of
transportation locations throughout the state 350,000
(20) Land acquisition at FortSnelling next to the central servicescomplex when it is made available assurplus property by the
federal government 200,000
(21) Clauses (1) to (19) are exemptfrom the requirements of MinnesotaStatutes, section 16B.335.
(b) Public Safety Project 1,185,000
$1,185,000 is appropriated from thetrunk highway fund for capitalimprovements to license examstations, grounds, and facilities atArden Hills, Eagan, and Plymouth.
Sec. 3. [DESIGN-BUILD METHOD OF CONSTRUCTION.]
Beginning with the capital budget projects approved by lawin 1996, the commissioner of administration or the commissionerof transportation may use a design-build method of projectdevelopment and construction for projects to construct newvehicle and equipment storage or maintenance facilities."Design-build method of project development and construction"means a project delivery system in which a single contractor isresponsible for both the design and the construction of theproject. The commissioner of administration or the commissionerof transportation may select the projects that will beconstructed using the design-build method. Minnesota Statutes,section 16B.33, does not apply to the projects selected. Thecommissioners are requested to report to the legislature on theuse of the design-build method, including comparative costanalysis, quality of product obtained, advantages anddisadvantages of using this method, and the commissioners'recommendations for further use of thedesign-build method.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 to 3 are effective July 1, 1996.
Section 1. Minnesota Statutes 1994, section 115A.9651,subdivision 1, is amended to read:
Subdivision 1. [PROHIBITION.] (a) Except as provided inparagraph (d), no person may distribute for sale or use inthis state any ink, dye, pigment, paint, or fungicidemanufactured after September 1, 1994, into which lead, cadmium,mercury, or hexavalent chromium has been intentionallyintroduced.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9735(b) For the purposes of this subdivision, "intentionallyintroduce" means to deliberately use a metal listed in paragraph(a) as an element during manufacture or distribution of an itemlisted in paragraph (a). Intentional introduction does notinclude the incidental presence of any of the prohibitedelements.
(c) The concentration of a listed metal in an item listed inparagraph (a) may not exceed 100 parts per million.
(d) The prohibition on the use of lead in substancesutilized in marking road, street, highway, and bridge pavementsdoes not take effect until July 1, 1998.
Sec. 2. Minnesota Statutes 1994, section 160.83, is amended byadding a subdivision to read:
Subd. 5. [LIABILITY.] A rustic road may bemaintained at a level less than the minimum standards requiredfor state-aid highways, roads, and streets, but must bemaintained at the level required to serve anticipated trafficvolumes. Where a road has been designated by resolution as arustic road and speed limits have been posted under subdivision1, the road authority with jurisdiction over the road, and itsofficers and employees, are exempt from liability for any tortclaim for injury to person or property arising from travel on therustic road related to its maintenance, design, or conditionif:
(1) the maintenance, design, or condition is consistent withthe anticipated use as described in subdivision 2; and
(2) the maintenance, design, or condition is not grosslynegligent.
Nothing in this subdivision exempts a road authority fromits duty to maintain bridges under chapter 165 or otherapplicable law.
Sec. 3. Minnesota Statutes 1994, section 160.85, is amended byadding a subdivision to read:
Subd. 3a. [INFORMATION MEETING.] Before approving ordenying a development agreement, the commissioner shall hold apublic information meeting in any municipality or county in whichany portion of the proposed toll facility runs. The commissionershall determine the time and place of the informationmeeting.
Sec. 4. Minnesota Statutes 1994, section 161.085, is amendedto read:
161.085 [APPROPRIATION FROM TURNBACK ACCOUNTS.]
Moneys in the county turnback account and the municipalturnback account are hereby appropriated annually to thecommissioner of transportation for the purposes of carrying outthe terms of sections 161.081 to 161.086161.084.
Sec. 5. [161.139] [HIGHWAY DESIGNATION COSTS.]
The commissioner shall not adopt a design or erect a sign tomark or memorialize a highway or bridge, pursuant to designationby the legislature on or after January 1, 1996, unless thecommissioner is assured of the availability of funds fromnonstate sources sufficient to pay all costs related todesigning, erecting, and maintaining the signs.
Sec. 6. Minnesota Statutes 1994, section 161.14, is amended byadding a subdivision to read:
Subd. 32. [VICTORY DRIVE.] Marked trunk highway No.22, from its intersection with marked trunk highways Nos. 14 and60 in the city of Mankato to its intersection with marked trunkhighway No. 30 in the city of Mapleton, is designated "VictoryDrive." The commissioner of transportation shall adopt asuitable design for marking this highway and shall erectappropriate signs at locations the commissioner determines. Thepeople of the community, having resolved to support andfinancially back the marking of this highway, shall reimburse thedepartment for costs incurred in marking and memorializing thishighway.
Sec. 7. Minnesota Statutes 1994, section 161.14, is amended byadding a subdivision to read:
Subd. 33. [VETERANS MEMORIAL HIGHWAY.] Marked trunkhighway No. 15, from its intersection with marked trunk highwayNo. 60 to its intersection with the Iowa border, is designated"Veterans Memorial Highway." The commissioner of transportationshall adopt a suitable design for marking this highway and shallerect appropriate signs at locations the commissioner determines. The people of the community, having resolved to support andfinancially back the marking of this highway, shall reimburse thedepartment for costs incurred in marking and memorializing thishighway.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9736Sec. 8. Minnesota Statutes 1994, section 161.14, is amended byadding a subdivision to read:
Subd. 34. [DALE WAYRYNEN MEMORIAL HIGHWAY.] Thatsegment of marked trunk highway No. 210 located within Aitkincounty is designated "Dale Wayrynen Memorial Highway." Thecommissioner of transportation shall erect appropriate signsafter adopting a marking design for the signs, which suitablycommemorates Dale Wayrynen, posthumous recipient of theCongressional Medal of Honor, for heroism displayed during theVietnam War. The people of the community, having resolved tosupport and financially back the marking of this highway, shallreimburse the department for costs incurred in marking andmemorializing this highway.
Sec. 9. Minnesota Statutes 1994, section 161.36, subdivision1, is amended to read:
Subdivision 1. [COMMISSIONER TO COOPERATE WITH THE U.S.GOVERNMENT.] The commissioner may cooperate with the governmentof the United States and any agency or department thereof in theconstruction, improvement, enhancement, and maintenance ofroads and bridges transportation in the state ofMinnesota and may comply with the provisions of the laws of theUnited States and any rules and regulations madethereunder for the expenditure of federal moneys upon suchroads and bridges.
Sec. 10. Minnesota Statutes 1994, section 161.36, subdivision2, is amended to read:
Subd. 2. [FEDERAL AID, ACCEPTANCE; COMMISSIONER AS AGENT.] Thecommissioner may accept federal moneys and other moneys, eitherpublic or private, for and in behalf of the state of Minnesota orany governmental subdivision thereof, or any nonpublicorganization, for the construction, improvement,enhancement, or maintenance of roads and bridgestransportation upon such terms and conditions as are ormay be prescribed by the laws of the United States and anyrules or regulations made thereunder, and is authorized toact as an agent of any that governmentalsubdivision of the state of Minnesota or nonpublicorganization upon the its request of suchsubdivision in accepting the moneys in its behalf for roador bridge transportation purposes, in acquiringright-of-way therefor, and in contracting for the construction,improvement, enhancement, or maintenance of roads orbridges transportation financed either in whole or inpart by federal moneys. The governing body of any suchsubdivision or nonpublic organization is authorized todesignate the commissioner as its agent for such purposes and toenter into an agreement with the commissioner prescribing theterms and conditions of the agency in accordance herewith andwith federal laws, rules and regulations.
Sec. 11. Minnesota Statutes 1994, section 161.36, subdivision3, is amended to read:
Subd. 3. [COMMISSIONER AS AGENT IN CERTAIN CASES.] Thecommissioner may act as the agent of any political subdivision ofthe state, or any nonpublic organization, as providedherein, for the construction of roads and bridgestransportation toward the construction of which no federalaid is available in the event that the construction adjoins, isconnected, or in the judgment of the commissioner can be best andmost economically performed in connection with construction uponwhich federal aid is available and upon which the commissioner isthen acting as agent.
Sec. 12. Minnesota Statutes 1994, section 161.36, subdivision4, is amended to read:
Subd. 4. [STATE LAWS TO GOVERN.] All contracts for theconstruction, improvement, enhancement, or maintenance ofroads or bridges transportation made by thecommissioner as the agent of any governmental subdivision, orany nonpublic organization, shall be made pursuant to thelaws of the state of Minnesota governing the making ofcontracts for the construction, improvement, enhancement,and maintenance of roads and bridges transportationon the trunk highway system of the state; provided, where theconstruction, improvement, enhancement, or maintenance ofany road or bridge transportation is financedwholly with federal moneys, the commissioner as the agent ofany the governmental subdivision or nonpublicorganization may let contracts in the manner prescribed bythe federal authorities acting under the laws of the UnitedStates and any rules or regulations made thereunder,notwithstanding any state law to the contrary.
Sec. 13. Minnesota Statutes 1994, section 161.46, subdivision3, is amended to read:
Subd. 3. [LUMP SUM SETTLEMENTS.] The commissioner may enterinto agreements with a utility for the relocation of utilityfacilities providing for the payment by the state of a lump sumbased on the estimated cost of relocation when the lump sum soagreed upon does not exceed $25,000 $100,000.
Sec. 14. Minnesota Statutes 1994, section 161.53, is amendedto read:
161.53 [RESEARCH ACTIVITIES.]
The commissioner may set aside for transportationresearch in each fiscal year up to one twopercent of the total amount of all funds appropriated to thecommissioner other than county state-aid and municipal state-aidhighway funds for transportation research including public andprivate research partnerships. The commissioner shall spendthis money for (1) research to improve the design, construction,maintenance, management, and environmental compatibility oftransportation systems; (2) research on transportation policiesthat enhance energy efficiency and economic development; (3)programs for implementing and monitoring research results; and(4) development of transportation education and outreachactivities. Of all funds appropriated to the commissioner otherthan state-aid funds, the commissioner shall spend 0.1 percent,but not exceeding $800,000 in any fiscal year, for research andrelated activities performed by the center for transportationstudies of the University of Minnesota. The center shallestablish a technology transfer and training center for Minnesotatransportation professionals.
Sec. 15. Minnesota Statutes 1994, section 162.08, subdivision4, is amended to read:
Subd. 4. [PURPOSES; OTHER USES OF MUNICIPAL ACCOUNTALLOCATION.] (a) Except as provided in subdivision3, money so apportioned and allocated to each county shallbe used for aid in the establishment, location, construction,reconstruction, improvement, and maintenance of the countystate-aid highway system within each county, including theexpense of sidewalks, commissioner-approved signals andsafety devices on county state-aid highways, and systems thatpermit an emergency vehicle operator to activate a green trafficsignal for the emergency vehicle; provided, that in the event ofhardship, or in the event that the county state-aid highwaysystem of any county is improved to the standards set forth inthe commissioner's rules, a portion of the money apportionedother than the money allocated for expenditures within citieshaving a population of less than 5,000, may be used on otherroads within the county with the consent and in accordance withthe commissioner's rules.
(b) If the portion of the county state-aid highwaysystem lying within cities having a population of less than 5,000is improved to the standard set forth in the commissioner'srules, a portion of the money credited to the municipal accountmay be used on other county highways or other streets lyingwithin such cities. Upon the authorization of the commissioner,a county may expend accumulated municipal account funds on countystate-aid highways within the county outside of cities having apopulation of less than 5,000. The commissioner shall authorizethe expenditure if:
(a) (1) the county submits a written request tothe commissioner and holds a hearing within 30 days of therequest to receive and consider any objections by the governingbodies of cities within the county having a population of lessthan 5,000; and
(b) (2) no written objection is filed with thecommissioner by any such city within 14 days of that hearing asprovided in this subdivision.
The county shall notify all of the cities of the public hearingby certified mail and shall notify the commissioner in writing ofthe results of the hearing and any objections to the use of thefunds as requested by the county.
(c) If, within 14 days of the hearing under paragraph(b), a city having a population of less than 5,000 files awritten objection with the commissioner identifying a specificcounty state-aid highway within the city which is requested forimprovement, the commissioner shall investigate the nature of therequested improvement. Notwithstanding paragraph (b)clause (b) (2), the commissioner may authorize theexpenditure requested by the county if:
(1) the identified highway is not deficient in meeting minimumstate-aid street standards; or
(2) the county shows evidence that the identified highway hasbeen programmed for construction in the county's five-yearcapital improvement budget in a manner consistent with thecounty's transportation plan; or
(3) there are conditions created by or within the city andbeyond the control of the county that prohibit programming orconstructing the identified highway.
(d) Notwithstanding any contrary provisions of paragraph (b)or (c), accumulated balances in excess of two years of municipalaccount apportionments may be spent on projects located outsideof municipalities under 5,000 population when approved solely byresolution of the county board.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9738 (e) Authorization by the commissioner for use ofmunicipal account funds on county state-aid highways outside ofcities having a population of less than 5,000 shall be applicableonly to the county's accumulated and current year allocation. Future municipal account allocations shall be used as directed bylaw unless subsequent requests are made by the county andapproved by the commissioner, or approved by resolution of thecounty board, as applicable, in accordance with theapplicable provisions of this section.
Sec. 16. Minnesota Statutes 1994, section 162.08, subdivision7, is amended to read:
Subd. 7. [ADVANCES OTHER THAN TO MUNICIPAL ACCOUNT.] Anycounty may make advances from any available funds for the purposeof expediting the construction, reconstruction, improvement andmaintenance of its county state-aid highway system. Totaladvances, together with any advances to the municipal account, asprovided in subdivisions 5 and 6, shall never exceed 40 percentof the county's last apportionment preceding the firstadvance. Advances made by any county as provided herein,other than advances made to the municipal account, shall berepaid out of subsequent apportionments to the county'smaintenance or construction account in accordance with thecommissioner's rules.
Sec. 17. Minnesota Statutes 1994, section 162.14, subdivision6, is amended to read:
Subd. 6. [ADVANCES.] Any such city, except cities of thefirst class, may make advances from any funds available to itfor the purpose of expediting the construction, reconstruction,improvement, or maintenance of its municipal state-aid streetsystem; provided that such advances shall not exceed the city'stotal estimated apportionment for the three years following theyear the advance is made. Advances made by any such city shallbe repaid out of subsequent apportionments made to such city inaccordance with the commissioner's rules.
Sec. 18. Minnesota Statutes 1994, section 168.013, subdivision3, is amended to read:
Subd. 3. [APPLICATION; CANCELLATION; EXCESSIVE GROSS WEIGHTSFORBIDDEN.] The applicant for all licenses based on gross weightshall state in writing upon oath, the unloaded weight of themotor vehicle, trailer or semitrailer and the maximum load theapplicant proposes to carry thereon, the sum of which shallconstitute the gross weight upon which the license tax shall bepaid, but in no case shall the declared gross weight upon whichthe tax is paid be less than 1-1/4 times the declared unloadedweight of the motor vehicle, trailer or semitrailer to beregistered, except recreational vehicles taxed under subdivision1g, school buses taxed under subdivision 18 and tow trucks ortowing vehicles defined in section 169.01, subdivision 52. Thegross weight of a tow truck or towing vehicle is the actualweight of the tow truck or towing vehicle fully equipped, butdoes not include the weight of a wrecked or disabled vehicletowed or drawn by the tow truck or towing vehicle.
The gross weight of no motor vehicle, trailer or semitrailershall exceed the gross weight upon which the license tax has beenpaid by more than four percent or 1,000 pounds, whichever isgreater.
The gross weight of the motor vehicle, trailer or semitrailerfor which the license tax is paid shall be indicated by adistinctive character on the license plate or plates except asprovided in subdivision 12 and the plate or plates shall be keptclean and clearly visible at all times.
The owner, driver, or user of a motor vehicle, trailer orsemitrailer upon conviction for transporting a gross weight inexcess of the gross weight for which it was registered or foroperating a vehicle with an axle weight exceeding the maximumlawful axle load weight shall be guilty of a misdemeanor and besubject to increased registration or reregistration according tothe following schedule:
(1) The owner, driver or user of a motor vehicle, trailer orsemitrailer upon conviction for transporting a gross weight inexcess of the gross weight for which it is registered by morethan four percent or 1,000 pounds, whichever is greater, but lessthan 25 percent or for operating or using a motor vehicle,trailer or semitrailer with an axle weight exceeding the maximumlawful axle load as provided in section 169.825 by more than fourpercent or 1,000 pounds, whichever is greater, but less than 25percent, in addition to any penalty imposed for the misdemeanorshall apply to the registrar to increase the authorized grossweight to be carried on the vehicle to a weight equal to orgreater than the gross weight the owner, driver, or user wasconvicted of carrying, the increase computed for the balance ofthe calendar year on the basis of 1/12 of the annual tax for eachmonth remaining in the calendar year beginning with the first dayof the month in which the violation occurred. If the additionalregistration tax computed upon that weight, plus the tax alreadypaid, amounts to more than the regular tax for the maximum grossweight permitted for the vehicle under section 169.825, thatadditional amount shall nevertheless be paid into the highwayfund, but the additional tax thus paid shall not permit thevehicle to be operated with a gross weight in excess of themaximum
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9739legal weight as provided by section 169.825. Unless the ownerwithin 30 days after a conviction shall apply to increase theauthorized weight and pay the additional tax as provided in thissection, the registrar shall revoke the registration on thevehicle and demand the return of the registration card and platesissued on that registration.
(2) The owner or driver or user of a motor vehicle, trailer orsemitrailer upon conviction for transporting a gross weight inexcess of the gross weight for which the motor vehicle, traileror semitrailer was registered by 25 percent or more, or foroperating or using a vehicle or trailer with an axle weightexceeding the maximum lawful axle load as provided in section169.825 by 25 percent or more, in addition to any penalty imposedfor the misdemeanor, shall have the reciprocity privileges on thevehicle involved if the vehicle is being operated underreciprocity canceled by the registrar, or if the vehicle is notbeing operated under reciprocity, the certificate of registrationon the vehicle operated shall be canceled by the registrar andthe registrar shall demand the return of the registrationcertificate and registration plates. The registrar may notcancel the registration or reciprocity privileges for any vehiclefound in violation of seasonal load restrictions imposed undersection 169.87 unless the axle weight exceeds the year-roundweight limit for the highway on which the violation occurred. The registrar may investigate any allegation of gross weightviolations and demand that the operator show cause why all futureoperating privileges in the state should not be revoked unlessthe additional tax assessed is paid.
(3) Clause (1) does not apply to the first haul ofunprocessed or raw farm products or unfinished forest products,when the registered gross weight is not exceeded by more than tenpercent. For purposes of this clause, "first haul" means (1) thefirst, continuous transportation of unprocessed or raw farmproducts from the place of production or on-farm storage site toany other location within 50 miles of the place of production oron-farm storage site, or (2) the first, continuous transportationof unfinished forest products from the place of production to theplace of first unloading.
(4) When the registration on a motor vehicle, trailer orsemitrailer is revoked by the registrar according to provisionsof this section, the vehicle shall not be operated on thehighways of the state until it is registered or reregistered, asthe case may be, and new plates issued, and the registration feeshall be the annual tax for the total gross weight of the vehicleat the time of violation. The reregistration pursuant to thissubdivision of any vehicle operating under reciprocity agreementspursuant to section 168.181 or 168.187 shall be at the fullannual registration fee without regard to the percentage ofvehicle miles traveled in this state.
Sec. 19. Minnesota Statutes 1994, section 169.07, is amendedto read:
169.07 [UNAUTHORIZED SIGNS.]
No person shall place, maintain, or display upon or in view ofany highway any unauthorized sign, signal, marking, or devicewhich purports to be or is an imitation of or resembles anofficial traffic-control device or railroad sign or signal, orwhich attempts to direct the movement of traffic, or which hidesfrom view or interferes with the effectiveness of any officialtraffic-control device or any railroad sign or signal, and noperson shall place or maintain, nor shall any public authoritypermit, upon any highway any traffic sign or signal bearingthereon any commercial advertising. This shall not be deemed toprohibit (1) the erection upon private property adjacent tohighways of signs giving useful directional information and of atype that cannot be mistaken for official signs, or (2) thetemporary placement by auctioneers licensed or exempt fromlicensing under section 330.01, for a period of not more thaneight consecutive hours, on or adjacent to the right-of-way of ahighway not more than four signs directing motorists to thelocation of an auction. The signs must conform to standardsfor size, content, placement, and location for such signspromulgated by the commissioner of transportation. The rules mayrequire a permit for each such sign but no fee may be charged forthe permit.
Every such prohibited sign, signal, or marking is herebydeclared to be a public nuisance, and the authority havingjurisdiction over the highways is hereby empowered to remove thesame, or cause it to be removed, without notice.
Sec. 20. Minnesota Statutes 1994, section 169.82, subdivision3, is amended to read:
Subd. 3. [HITCHES; CHAINS; CABLES.] (a) Every traileror semitrailer must be hitched to the towing motor vehicle by adevice approved by the commissioner of public safety.
(b) Every trailer and semitrailer must be equipped with safetychains or cables permanently attached to the trailerexcept in cases where the coupling device is a regulation fifthwheel and kingpin assembly approved by the commissioner of publicsafety. In towing, the chains or cables must becarried through a ring on the towbar and attached to thetowing attached to the vehicles near the points of bumperattachments to the chassis of each vehicle, and must be ofsufficient strength to control the trailer in the event offailure of the towing device. The length of chain or cablemust be no more than necessary to permit free turning of thevehicles.
(c) This subdivision does not apply to towed implements ofhusbandry.
No person may be charged with a violation of this sectionsolely by reason of violating a maximum speed prescribed insection 169.145 or 169.67.
Sec. 21. Minnesota Statutes 1994, section 169.85, is amendedto read:
169.85 [WEIGHING; PENALTY.]
The driver of a vehicle which has been lawfully stopped may berequired by a peace officer to submit the vehicle and load to aweighing by means of portable or stationary scales, and the peaceofficer may require that the vehicle be driven to the nearestavailable scales if the distance to the scales is no further thanfive miles, or if the distance from the point where the vehicleis stopped to the vehicle's destination is not increased by morethan ten miles as a result of proceeding to the nearest availablescales. Official traffic control devices as authorized bysection 169.06 may be used to direct the driver to the nearestscale. When a truck weight enforcement operation is conducted bymeans of portable or stationary scales and signs giving notice ofthe operation are posted within the highway right-of-way andadjacent to the roadway within two miles of the operation, thedriver of a truck or combination of vehicles registered for orweighing in excess of 12,000 pounds, and the driver of acharter bus, except a bus registered in Minnesota, shallproceed to the scale site and submit the vehicle to weighing andinspection.
Upon weighing a vehicle and load, as provided in this section,an officer may require the driver to stop the vehicle in asuitable place and remain standing until a portion of the load isremoved that is sufficient to reduce the gross weight of thevehicle to the limit permitted under section 169.825. A suitableplace is a location where loading or tampering with the load isnot prohibited by federal, state, or local law, rule orordinance. A driver may be required to unload a vehicle only ifthe weighing officer determines that (a) on routes subject to theprovisions of section 169.825, the weight on an axle exceeds thelawful gross weight prescribed by section 169.825, by 2,000pounds or more, or the weight on a group of two or moreconsecutive axles in cases where the distance between the centersof the first and last axles of the group under consideration isten feet or less exceeds the lawful gross weight prescribed bysection 169.825, by 4,000 pounds or more; or (b) on routesdesignated by the commissioner in section 169.832, subdivision11, the overall weight of the vehicle or the weight on an axle orgroup of consecutive axles exceeds the maximum lawful grossweights prescribed by section 169.825; or (c) the weight isunlawful on an axle or group of consecutive axles on a roadrestricted in accordance with section 169.87. Material unloadedmust be cared for by the owner or driver of the vehicle at therisk of the owner or driver.
A driver of a vehicle who fails or refuses to stop and submitthe vehicle and load to a weighing as required in this section,or who fails or refuses, when directed by an officer upon aweighing of the vehicle, to stop the vehicle and otherwise complywith the provisions of this section, is guilty of amisdemeanor.
Sec. 22. Minnesota Statutes 1995 Supplement, section 169.862,is amended to read:
169.862 [PERMITS FOR WIDE LOADS OF BALED AGRICULTURALPRODUCTS.]
The commissioner of transportation with respect to highwaysunder the commissioner's jurisdiction, and local authorities withrespect to highways under their jurisdiction, may issue an annualpermit to enable a vehicle carrying round bales of hay, straw, orcornstalks, with a total outside width of the vehicle or the loadnot exceeding 11-1/2 feet, to be operated on public streets andhighways. The commissioner of transportation and localauthorities may issue an annual permit to enable a vehicle,having a maximum width of 102 inches, carrying a first haul ofsquare bales of straw, each bale having a minimum size of fourfeet by four feet by eight feet, with a total outside width ofthe load not exceeding 12 feet, to be operated on public streetsand highways between August 1 and December March 1within 35 miles of the border between this state and the state ofNorth Dakota. The commissioner of transportation and localauthorities may issue an annual permit to enable a vehiclecarrying square bales of hay, each with an outside dimension ofnot less than three feet by four feet by seven feet, with a totalheight of the loaded vehicle not exceeding 15 feet, to beoperated on those public streets and highways designated in thepermit. Permits issued under this section are governed by theapplicable provisions of section 169.86 except as otherwiseprovided herein and, in addition, carry the followingrestrictions:
(a) The vehicles may not be operated between sunset andsunrise, when visibility is impaired by weather, fog, or otherconditions rendering persons and vehicles not clearly visible ata distance of 500 feet, or on Sunday from noon until sunset, oron the days the following holidays are observed: New Year's Day,Memorial Day, Independence Day, Labor Day, Thanksgiving Day, andChristmas Day.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9741(b) The vehicles may not be operated on interstate highways.
(c) The vehicles may not be operated on a trunk highway with apavement less than 24 feet wide.
(d) A vehicle operated under the permit must be equipped with aretractable or removable mirror on the left side so located thatit will reflect to the driver a clear view of the highway for adistance of at least 200 feet to the rear of the vehicle.
(e) A vehicle operated under the permit must display red,orange, or yellow flags, 18 inches square, as markers at thefront and rear and on both sides of the load. The load must besecurely bound to the transporting vehicle.
(f) Farm vehicles not for hire carrying round baled hay lessthan 20 miles are exempt from the requirement to obtain a permit. All other requirements of this section apply to vehiclestransporting round baled hay.
The fee for the permit is $24.
Sec. 23. Minnesota Statutes 1994, section 169.871, is amendedby adding a subdivision to read:
Subd. 1b. [CIVIL PENALTY FOR FIRST TWO VIOLATIONS.]Notwithstanding subdivision 1, clauses (a) to (e), a civilpenalty under subdivision 1 for a violation in a motor vehicle inthe course of a first haul as defined in section 168.013,subdivision 3, clause (3), of a weight limit imposed undersections 169.825, 169.832 to 169.851, and 169.87 that is notpreceded by two or more violations of the gross weight limits inthose sections in that motor vehicle within the previous 12months, may not exceed $150.
Sec. 24. Minnesota Statutes 1995 Supplement, section 171.04,subdivision 1, is amended to read:
Subdivision 1. [PERSONS NOT ELIGIBLE.] The department shallnot issue a driver's license hereunder:
(1) To any person who is under the age of 16 years; to anyperson under 18 years unless such person shall have successfullycompleted a course in driver education, including both classroomand behind-the-wheel instruction, approved by the state board ofeducation for courses offered through the public schools, or, inthe case of a course offered by a private, commercial drivereducation school or institute, by the department of publicsafety; except when such person has completed a course of drivereducation in another state or has a previously issued validlicense from another state or country; nor to any person under 18years unless the application of license is approved by eitherparent when both reside in the same household as the minorapplicant, otherwise the parent or spouse of the parent havingcustody or with whom the minor is living in the event there is nocourt order for custody, or guardian having the custody of suchminor, or in the event a person under the age of 18 has no livingfather, mother or guardian, the license shall not be issued tosuch person unless the application therefor is approved by theperson's employer. Driver education courses offered in anypublic school shall be open for enrollment to persons between theages of 15 and 18 years residing in the school district orattending school therein. Any public school offering drivereducation courses may charge an enrollment fee for the drivereducation course which shall not exceed the actual cost thereofto the public school and the school district. The approvalrequired herein shall contain a verification of the age of theapplicant;
(2) To any person who is under the age of 18 years unlessthe person has applied for, been issued, and possessed theappropriate instruction permit for a minimum of sixmonths;
(3) To any person whose license has been suspendedduring the period of suspension except that a suspended licensemay be reinstated during the period of suspension upon thelicensee furnishing proof of financial responsibility in the samemanner as provided in the Minnesota no-fault automobile insuranceact;
(3) (4) To any person whose license has beenrevoked except upon furnishing proof of financial responsibilityin the same manner as provided in the Minnesota no-faultautomobile insurance act and if otherwise qualified;
(4) (5) To any person who is a drug dependentperson as defined in section 254A.02, subdivision 5;
(5) (6) To any person who has been adjudgedlegally incompetent by reason of mental illness, mentaldeficiency, or inebriation, and has not been restored tocapacity, unless the department is satisfied that such person iscompetent to operate a motor vehicle with safety to persons orproperty;
(6) (7) To any person who is required by thischapter to take an examination, unless such person shall havesuccessfully passed such examination;
(7) (8) To any person who is required under theprovisions of the Minnesota no-fault automobile insurance act ofthis state to deposit proof of financial responsibility and whohas not deposited such proof;
(8) (9) To any person when the commissioner hasgood cause to believe that the operation of a motor vehicle onthe highways by such person would be inimical to public safety orwelfare;
(9) (10) To any person when, in the opinion ofthe commissioner, such person is afflicted with or suffering fromsuch physical or mental disability or disease as will affect suchperson in a manner to prevent the person from exercisingreasonable and ordinary control over a motor vehicle whileoperating the same upon the highways; nor to a person who isunable to read and understand official signs regulating, warning,and directing traffic;
(10) (11) To a child for whom a court has ordereddenial of driving privileges under section 260.191,subdivision 1, or 260.195, subdivision 3a, until the period ofdenial is completed; or
(11) (12) To any person whose license has beencanceled, during the period of cancellation.
Sec. 25. Minnesota Statutes 1994, section 171.05, is amendedby adding a subdivision to read:
Subd. 2a. [PERMIT FOR SIX MONTHS.] An applicant whohas applied for and received an instruction permit pursuant tosubdivision 2 must possess the instruction permit for not lessthan six months before qualifying for a driver's license.
Sec. 26. Minnesota Statutes 1994, section 173.02, subdivision6, is amended to read:
Subd. 6. [VARIOUS SIGNS AND NOTICES DEFINED.] Directional andother official signs and notices shall mean:
(a) "Official signs and notices" mean signs and notices erectedand maintained by public officers or public agencies within theirterritorial jurisdiction and pursuant to and in accordance withdirection or authorization contained in federal or state law forthe purposes of carrying out an official duty or responsibility. Historical markers authorized by state law and erected by stateor local governmental agencies or nonprofit historical societiesand, star city signs erected under section173.085, and municipal identification entrance signs erectedin accordance with section 173.025 may be considered officialsigns.
(b) "Public utility signs" mean warning signs, notices, ormarkers which are customarily erected and maintained by publiclyor privately owned public utilities, as essential to theiroperations.
(c) "Service club and religious notices" mean signs andnotices, not exceeding eight square feet in advertising area,whose erection is authorized by law, relating to meetings andlocation of nonprofit service clubs or charitable associations,or religious services.
(d) "Directional signs" means signs containing directionalinformation about public places owned or operated by federal,state, or local governments or their agencies, publicly orprivately owned natural phenomena, historic, cultural,scientific, educational, and religious sites, and areas ofnatural scenic beauty or naturally suited for outdoor recreation,deemed to be in the interest of the traveling public. To qualifyfor directional signs, privately owned attractions must benationally or regionally known, and of outstanding interest tothe traveling public.
(e) All definitions in this subdivision are intended to be inconformity with the national standards for directional and otherofficial signs.
Sec. 27. [173.025] [MUNICIPAL IDENTIFICATION SIGNS.]
A local road authority may erect a municipal identificationentrance sign within the right-of-way of a trunk highway with thewritten permission of the commissioner. Municipal identificationentrance signs erected without the written permission of thecommissioner are prohibited.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9743Sec. 28. Minnesota Statutes 1994, section 173.07, subdivision1, is amended to read:
Subdivision 1. [FORMS; CONTENT; IDENTIFYING NUMBER.]Application for permits or renewals thereof for the placement andmaintenance of advertising devices within scenic areas shall beon forms prescribed by the commissioner and shall contain suchinformation as the commissioner may require. No advertisingdevice shall be placed without the consent of the owner oroccupant of the land, and adequate proof of such consent shall besubmitted to the commissioner at the time application is made forsuch permits or renewals. There shall be furnished with eachpermit an identifying number which shall be affixed by the permitholder to the advertising device in accordance with rules of thecommissioner of transportation.
Sec. 29. Minnesota Statutes 1994, section 174.04, is amendedto read:
174.04 [FINANCIAL ASSISTANCE; APPLICATIONS; DISBURSEMENT.]
Subdivision 1. [REVIEW OF APPLICATION.] Any state agency whichreceives an application from a regional development commission,metropolitan council, public transit commission, airportcommission, port authority or other political subdivision of thestate, or any nonpublic organization, for financialassistance for transportation planning, capital expenditures oroperations to any state or federal agency, shall first submit theapplication to the commissioner of transportation. Thecommissioner shall review the application to determine whether itcontains matters that substantially affect the statewidetransportation plan and priorities. If the application does notcontain such matters, the commissioner shall within 15 days afterreceipt return the application to the applicant politicalsubdivision or nonpublic organization for forwarding tothe appropriate agency. If the application contains suchmatters, the commissioner shall review and comment on theapplication as being consistent with the plan and priorities. The commissioner shall return the application together withcomments within 45 days after receipt to the applicant politicalsubdivision or nonpublic organization for forwarding withthe commissioner's comments to the appropriate agency.
Subd. 2. [DESIGNATED AGENT.] A regional developmentcommission, metropolitan council, public transit commission,airport commission, port authority, or any other politicalsubdivision of the state, or any nonpublic organization,may designate the commissioner as its agent to receive anddisburse funds by entering into an agreement with thecommissioner prescribing the terms and conditions of the receiptand expenditure of the funds in accordance with federal and statelaws, rules, and regulations.
Subd. 3. [EXCEPTIONS.] The provisions of this section shallnot be construed as altering or amending in any way the fundingprocedures specified in section 161.36, 360.016 or 360.0161.
Sec. 30. Minnesota Statutes 1994, section 221.031, is amendedby adding a subdivision to read:
Subd. 10. [CONDUCTING PHYSICAL EXAMINATION.] (a) Aphysical examination certificate, as required by Code of FederalRegulations, title 49, sections 391.41 to 391.49, is sufficientto satisfy the requirements set forth in those regulations ifissued by a doctor of medicine, doctor of osteopathy, doctor ofchiropractic, or advanced practice nurse duly licensed in thisstate. Any health care provider performing a physicalexamination for the purpose stated in this subdivision is allowedto perform only those procedures within the provider's scope ofpractice as provided in chapters 147 and 148 and rulespromulgated thereto.
(b) A motor carrier may specify that the certificatereferred to in paragraph (a) be issued by a specific health careprovider as a condition to employment as a driver.
Sec. 31. Minnesota Statutes 1995 Supplement, section 221.0355,subdivision 5, is amended to read:
Subd. 5. [HAZARDOUS WASTE TRANSPORTERS.] (a) A carrier withits principal place of business in Minnesota or who designatesMinnesota as its base state shall file a disclosure statementwith and obtain a permit from the commissioner that specificallyauthorizes the transportation of hazardous waste beforetransporting a hazardous waste in Minnesota. A carrier thatdesignates another participating state as its base state shallfile a disclosure statement with and obtain a permit from thatstate that specifically authorizes the transportation ofhazardous waste before transporting a hazardous waste inMinnesota. A registration is valid for one year from the date anotice of registration form is issued and a permit is valid forthree years from the date issued or until a carrier fails torenew its registration, whichever occurs first.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9744(b) A disclosure statement must include the informationcontained in part III of the uniform application. A person whohas direct management responsibility for a carrier's hazardouswaste transportation operations shall submit a full set of theperson's fingerprints, with the carrier's disclosure statement,for identification purposes and to enable the commissioner todetermine whether the person has a criminal record. Thecommissioner shall send the person's fingerprints to the FederalBureau of Investigation and shall request the bureau to conduct acheck of the person's criminal record. The commissioner shallnot issue a notice of registration or permit to a hazardous wastetransporter who has not made a full and accurate disclosure ofthe required information or paid the fees required by thissubdivision. Making a materially false or misleading statementin a disclosure statement is prohibited.
(c) The commissioner shall assess a carrier the actual costsincurred by the commissioner for conducting the uniform program'srequired investigation of the information contained in adisclosure statement.
(d) A permit under this subdivision becomes a license undersection 221.035, subdivision 1, on August 1, 19961997, and is subject to the provisions of section 221.035until it expires.
Sec. 32. Minnesota Statutes 1995 Supplement, section 221.0355,subdivision 15, is amended to read:
Subd. 15. [HAZARDOUS WASTE LICENSES.] (a) From October 1,1994, until August 1, 1996 1997, the commissionershall not register hazardous material transporters under section221.0335 or license hazardous waste transporters under section221.035. A person who is licensed under section 221.035 need notobtain a permit under subdivision 4 or 5 for the transportationof hazardous waste in Minnesota, until the person's license hasexpired. A carrier wishing to transport hazardous waste inanother participating state shall obtain a permit under theuniform program authorizing the transportation.
(b) The commissioner may refund fees paid under section221.035, minus a proportional amount calculated on a monthlybasis for each month that a hazardous waste transporter licensewas valid, to a person who was issued a hazardous wastetransporter license after May 5, 1994, who applied for a permitauthorizing the transportation of hazardous waste undersubdivisions 4 and 5 before October 1, 1994, and who wassubsequently issued that permit under the uniform program.
Sec. 33. Minnesota Statutes 1994, section 222.37, subdivision1, is amended to read:
Subdivision 1. [USE REQUIREMENTS.] Any water power, telegraph,telephone, pneumatic tube, pipeline, community antennatelevision, cable communications or electric light, heat,or power company, or fire department may use publicroads for the purpose of constructing, using, operating, andmaintaining lines, subways, canals, or conduits,hydrants, or dry hydrants, for their business, but suchlines shall be so located as in no way to interfere with thesafety and convenience of ordinary travel along or over the same;and, in the construction and maintenance of such line, subway,canal, or conduit, hydrants, or dry hydrants, thecompany shall be subject to all reasonable regulations imposed bythe governing body of any county, town or city in which suchpublic road may be. If the governing body does not require thecompany to obtain a permit, a company shall notify the governingbody of any county, town, or city having jurisdiction over apublic road prior to the construction or major repair, involvingextensive excavation on the road right-of-way, of the company'sequipment along, over, or under the public road, unless thegoverning body waives the notice requirement. A waiver of thenotice requirement must be renewed on an annual basis. Foremergency repair a company shall notify the governing body assoon as practical after the repair is made. Nothing herein shallbe construed to grant to any person any rights for themaintenance of a telegraph, telephone, pneumatic tube, communityantenna television system, cable communications system, or light,heat, or power system, or hydrant system within thecorporate limits of any city until such person shall haveobtained the right to maintain such system within such city orfor a period beyond that for which the right to operate suchsystem is granted by such city.
Sec. 34. Laws 1994, chapter 589, section 8, is amended toread:
Sec. 8. [REPEALER.]
Minnesota Statutes 1992, section 221.033, subdivision 4, isrepealed. Section 5 is repealed effective August 1, 19961997.
Sec. 35. [REPEALER.]
Minnesota Statutes 1994, sections 161.086; and 161.115,subdivision 262, are repealed.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9745Sec. 36. [EFFECTIVE DATE.]
Sections 24 and 25 are effective February 1, 1997. Sections5 to 8 are effective the day following final enactment. Section14 is effective July 1, 1996.
Section 1. Minnesota Statutes 1994, section 168.042,subdivision 8, is amended to read:
Subd. 8. [REISSUANCE OF REGISTRATION PLATES.] (a) Thecommissioner shall rescind the impoundment order of a personsubject to an order under this section, other than theviolator, if a:
(1) the violator had a valid driver's license on the date ofthe violation and the person subject to an impoundmentorder under this section, other than the violator, files withthe commissioner an acceptable sworn statement containing thefollowing information:
(1) (i) that the person is the registered ownerof the vehicle from which the plates have been impounded underthis section;
(2) (ii) that the person is the current owner andpossessor of the vehicle used in the violation;
(3) (iii) the date on which the violator obtainedthe vehicle from the registered owner;
(4) (iv) the residence addresses of theregistered owner and the violator on the date the violatorobtained the vehicle from the registered owner;
(5) (v) that the person was not a passenger inthe vehicle at the time of the violation; and
(6) (vi) that the person knows that the violatormay not drive, operate, or be in physical control of a vehiclewithout a valid driver's license; or
(2) the violator did not have a valid driver's license onthe date of the violation and the person made a report to lawenforcement before the violation stating that the vehicle hadbeen taken from the person's possession or was being used withoutpermission.
(b) The commissioner may not rescind the impoundment ordernor reissue registration plates to a registered owner if theowner knew or had reason to know that the violator did not have avalid driver's license on the date the violator obtained thevehicle from the owner. A person who has failed to make areport as provided in paragraph (a), clause (2), may be issuedspecial registration plates under subdivision 12 for a period ofone year from the effective date of the impoundment order. Atthe next registration renewal following this period, the personmay apply for regular registration plates.
(c) If the order is rescinded, the owner shall receive newregistration plates at no cost, if the plates were seizedand destroyed.
Sec. 2. Minnesota Statutes 1994, section 168.042, is amendedby adding a subdivision to read:
Subd. 13a. [ACQUIRING ANOTHER VEHICLE.] If duringthe effective period of the plate impoundment the violatorapplies to the commissioner for registration plates for anyvehicle, the commissioner shall not issue registration platesunless the violator qualifies for special registration platesunder subdivision 12 and unless the plates issued are specialplates as described in subdivision 12.
Sec. 3. Minnesota Statutes 1994, section 168.12, subdivision2, is amended to read:
Subd. 2. [AMATEUR RADIO STATION LICENSEE; SPECIAL LICENSEPLATES.] Any applicant who is an owner or joint owner of apassenger automobile, van or pickup truck, or a self-propelledrecreational vehicle, and a resident of this state, and who holdsan official amateur radio station license, or a citizens radioservice class D license, in good standing, issued by the FederalCommunications Commission shall upon compliance with all laws ofthis state relating
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9746to registration and the licensing of motor vehicles and drivers,be furnished with license plates for the motor vehicle, asprescribed by law, upon which, in lieu of the numbers requiredfor identification under subdivision 1, shall be inscribed theofficial amateur call letters of the applicant, as assigned bythe Federal Communications Commission., and the words"AMATEUR RADIO." The applicant shall pay in addition to theregistration tax required by law, the sum of $10 for the speciallicense plates, and at the time of delivery of the speciallicense plates the applicant shall surrender to the registrar thecurrent license plates issued for the motor vehicle. Thisprovision for the issue of special license plates shall applyonly if the applicant's vehicle is already registered inMinnesota so that the applicant has valid regular Minnesotaplates issued for that vehicle under which to operate it duringthe time that it will take to have the necessary special licenseplates made. If owning or jointly owning more than one motorvehicle of the type specified in this subdivision, the applicantmay apply for special plates for each of not more than twovehicles, and, if each application complies with thissubdivision, the registrar shall furnish the applicant with thespecial plates, inscribed with the official amateur call lettersand other distinguishing information as the registrar considersnecessary, for each of the two vehicles. And the registrar maymake reasonable rules governing the use of the special licenseplates as will assure the full compliance by the owner and holderof the special plates, with all existing laws governing theregistration of motor vehicles, the transfer and the usethereof.
Despite any contrary provision of subdivision 1, the speciallicense plates issued under this subdivision may be transferredto another motor vehicle upon the payment of a fee of $5. Theregistrar must be notified of the transfer and may prescribe aform for the notification.
Fees collected under this subdivision must be paid into thestate treasury and credited to the highway user tax distributionfund.
Sec. 4. Minnesota Statutes 1994, section 168.123, subdivision1, is amended to read:
Subdivision 1. [GENERAL REQUIREMENTS; FEES.] (a) On paymentof a fee of $10 for each set of two plates, or for a single platein the case of a motorcycle plate, payment of the registrationtax required by law, and compliance with other laws relating tothe registration and licensing of a passenger automobile, pickuptruck, van, self-propelled recreational equipment, or motorcycle,as applicable, the registrar shall issue:
(1) special license plates to an applicant who served inthe active military service in a branch of the armed forces ofthe United States or of a nation or society allied with theUnited States in conducting a foreign war, was discharged underhonorable conditions, and is an owner or joint owner of amotor vehicle included within the definition of apassenger automobile or which is, pickup truck, van,or self-propelled recreational equipment, on payment of afee of $10 for each set of two plates, payment of theregistration tax required by law, and compliance with other lawsrelating to registration and licensing of motor vehicles anddrivers; or
(2) a special motorcycle license plate as described insubdivision 2, paragraph (a), or another special license platedesigned by the commissioner of public safety to an applicant whois a Vietnam veteran who served after July 1, 1961, and beforeJuly 1, 1978, and who served in the active military service in abranch of the armed forces of the United States in conducting aforeign war, was discharged under honorable conditions, and is anowner or joint owner of a motorcycle. Plates issued under thisclause must be the same size as standard motorcycle licenseplates.
(b) The additional fee of $10 is payable for each set ofplates, is payable only when the plates are issued, and is notpayable in a year in which tabs or stickers are issued instead ofnumber plates. An applicant must not be issued more than twosets of plates for vehicles listed in paragraph (a) andowned or jointly owned by the applicant.
(c) The veteran shall have a certified copy of theveteran's discharge papers, indicating character of discharge, atthe time of application. If an applicant served in the activemilitary service in a branch of the armed forces of a nation orsociety allied with the United States in conducting a foreign warand is unable to obtain a record of that service and dischargestatus, the commissioner of veterans affairs may certify theapplicant as qualified for the veterans' license plates providedunder this section.
Sec. 5. Minnesota Statutes 1994, section 168.123, subdivision4, is amended to read:
Subd. 4. [PLATE TRANSFERS.] (a) On payment of a fee of$5, plates issued under this section subdivision 1,paragraph (a), clause (1), may be transferred to anothermotor vehicle passenger automobile, pickup truck, van,or self-propelled recreational equipment owned or jointlyowned by the person to whom the plates were issued.
(b) On payment of a fee of $5, a plate issued undersubdivision 1, paragraph (a), clause (2), may be transferred toanother motorcycle owned or jointly owned by the person to whomthe plate was issued.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9747Sec. 6. [168.1291] [SPECIAL LICENSE PLATES; DESIGN.]
Subdivision 1. [DEFINITION.] For purposes of thissection "special license plates" means license plates issuedunder sections 168.12, subdivisions 2b to 2e; 168.123; 168.129;168.1292; and 168.1296.
Subd. 2. [DESIGN OF SPECIAL LICENSE PLATES.] Thecommissioner shall design a single special license plate thatwill contain a unique number and a space for a unique symbol. Thecommissioner shall design a unique symbol related to the purposeof each special license plate. Any provision of sections 168.12,subdivisions 2b to 2e; 168.123; 168.129; 168.1292; and 168.1296that requires the placement of a specified letter or letters on aspecial license plate applies to those license plates only to theextent that the commissioner includes the letter or letters inthe design. Where a law authorizing a special license platecontains a specific requirement for graphic design of thatlicense plate, that requirement applies to the appropriate uniquesymbol the commissioner designs.
Subd. 3. [ISSUANCE OF SPECIAL LICENSE PLATES WITHUNIQUE SYMBOLS.] Notwithstanding section 168.12, subdivisions2b to 2e; 168.123; 168.129; 168.1292; or 168.1296, beginning withspecial license plates issued in calendar year 1996 thecommissioner shall issue each class of special license platespermanently marked with specific designs under those laws onlyuntil the commissioner's supply of those license plates isexhausted. Thereafter the commissioner shall issue under thoselaws only the license plate authorized under subdivision 2, withthe appropriate unique symbol attached.
Subd. 4. [FEES.] Notwithstanding section 168.12,subdivisions 2b to 2e; 168.123; 168.129; 168.1292; or 168.1296,the commissioner shall charge a fee of $10 for each set oflicense plates issued under this section.
Subd. 5. [APPLICATION.] This section does not applyto a special motorcycle license plate designed by the registrarunder section 168.123, subdivision 1, clause (2).
Sec. 7. [168.1292] [OLYMPIC LICENSE PLATES.]
Subdivision 1. [GENERAL REQUIREMENTS AND PROCEDURES.]The registrar shall issue special Olympic license plates to anapplicant who:
(1) is an owner or joint owner of a passenger automobile,pickup truck, or van;
(2) pays a fee of $10 to cover the costs of handling andmanufacturing the plates;
(3) pays the registration tax required under section168.013;
(4) pays the fees required under this chapter;
(5) contributes $15 annually to the Minnesota amateur sportscommission; and
(6) complies with laws and rules governing registration andlicensing of vehicles and drivers.
Subd. 2. [DESIGN.] After consultation with theUnited States Olympic Committee, the registrar shall design thespecial Olympic plates.
In consultation with the registrar, the Minnesota amateursports commission annually shall indicate the number of platesthe commission anticipates will be needed.
Subd. 3. [PLATE TRANSFERS.] Notwithstanding section168.12, subdivision 1, on payment of a transfer fee of $5, platesissued under this section may be transferred to another passengervehicle, pickup truck, or van owned or jointly owned by theperson to whom the special plates were issued.
Subd. 4. [FEES CREDITED.] The fees collected underthis section must be deposited in the state treasury and creditedto the highway user tax distribution fund.
Subd. 5. [CONTRIBUTIONS.] The registrar shall issuea set of Olympic license plates under this section only to aperson who presents at the time of applying for registration areceipt from the Minnesota amateur sports commission thatdemonstrates that the applicant has contributed at least $15 tothe commission within 90 days prior to the date of theapplication. After the issuance of that set of Olympic licenseplates, the collection of subsequent contributions during thelife of that set of license plates is the responsibility of thecommission.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9748Sec. 8. Minnesota Statutes 1995 Supplement, section 168.1296,subdivision 1, is amended to read:
Subdivision 1. [GENERAL REQUIREMENTS AND PROCEDURES.] Theregistrar shall issue special critical habitat license plates toan applicant who:
(1) is an owner or joint owner of a passenger automobile,pickup truck, or van;
(2) pays a fee determined by the registrar of $10to cover the costs of handling and manufacturing the plates;
(3) pays the registration tax required under section168.013;
(4) pays the fees required under this chapter;
(5) contributes at least $30 annually to the Minnesota criticalhabitat private sector matching account established in section84.943; and
(6) complies with laws and rules governing registration andlicensing of vehicles and drivers.
Sec. 9. Minnesota Statutes 1994, section 168.15, is amended toread:
168.15 [RIGHTS AS TO REGISTRATION CERTIFICATES AND NUMBERPLATES.]
Subdivision 1. [TRANSFER OF OWNERSHIP.] Except asprovided in subdivision 3, upon the transfer of ownership,destruction, theft, dismantling as such, or the permanent removalby the owner thereof from this state of any motor vehicleregistered in accordance with the provisions of this chapter, theright of the owner of such vehicle to use the registrationcertificate and number plates assigned such vehicle shall expire,and such certificate and any existing plates shall be, by suchowner, forthwith returned, with transportation prepaid, to theregistrar with a signed notice of the date and manner oftermination of ownership, giving the name and post officeaddress, with street and number, if in a city, of the person towhom transferred. No fee may be charged for a return of platesunder this section. When the ownership of a motor vehicle shallbe transferred to another who shall forthwith register the samein the other's name, the registrar may permit the manual deliveryof such plates to the new owner of such vehicle. When seeking tobecome the owner by gift, trade, or purchase of any vehicle forwhich a registration certificate has been theretofore issuedunder the provisions of this chapter, a person shall join withthe registered owner in transmitting with the application theregistration certificate, with the assignment and notice of saleduly executed upon the reverse side thereof, or, in case of lossof such certificate, with such proof of loss by sworn statement,in writing, as shall be satisfactory to the registrar. Upon thetransfer of any motor vehicle by a manufacturer or dealer, foruse within the state, whether by sale, lease, or otherwise, suchmanufacturer or dealer shall, within seven days after suchtransfer, file with the registrar a notice or report containingthe date of such transfer, a description of such motor vehicles,and the name, street and number of residence, if in a city, andthe post office address of the transferee, and shall transmittherewith the transferee's application for registrationthereof.
Subd. 2. [TRANSFER OF ENGINE.] Upon the transfer of anyautomobile engine or motor, except a new engine or motor,transferred with intent that the same be installed in a newautomobile, and whether such transfer be made by a manufactureror dealer, or otherwise, and whether by sale, lease or otherwise,the transferor shall, within two days after such transfer, filewith the registrar a notice or report containing the date of suchtransfer and a description, together with the maker's number ofthe engine or motor, and the name and post office address of thepurchaser, lessee, or other transferee.
Subd. 3. [VEHICLES OF LESSORS; TRANSFERS.]Notwithstanding subdivision 1, a motor vehicle lessor licensedunder section 168.27, subdivision 2, 3, or 4, may transferlicense plates issued to one rental motor vehicle owned by thelessor to another rental motor vehicle, owned by the lessor andnot previously registered in Minnesota or another jurisdiction,if within ten days of the transfer the lessor registers thevehicle to which the license plates were transferred. Uponregistration, the lessor must pay all taxes and fees due on theregistration of the vehicle to which the license plates weretransferred, plus a transfer fee of $15. The fee must bedeposited in the highway user tax distribution fund. Forpurposes of this subdivision, "rental motor vehicle" means avehicle used for rentals or leases of 30 days or less.
Sec. 10. Minnesota Statutes 1995 Supplement, section 168.16,is amended to read:
168.16 [REFUNDS; APPROPRIATION.]
After the tax upon any motor vehicle shall have been paid forany year, refund shall be made for errors made in computing thetax or fees and for the error on the part of an owner who may inerror have registered a motor vehicle that was not before, nor atthe time of registration, nor at any time thereafter during thecurrent past year, subject to
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9749tax in this state as provided by section 168.012. Unlessotherwise provided in this chapter, a claim for a refund of anoverpayment of registration tax must be filed within 3-1/2 yearsfrom the date of payment. The refundment shall be made from anyfund in possession of the registrar and shall be deducted fromthe registrar's monthly report to the commissioner of finance. Adetailed report of the refundment shall accompany the report. Theformer owner of a transferred vehicle by an assignment in writingendorsed upon the registration certificate and delivered to theregistrar within the time provided herein may sell and assign tothe new owner thereof the right to have the tax paid by theformer owner accredited to the owner who duly registers thevehicle. Any owner at the time of such occurrence, whose vehicleshall be is permanently destroyed, or sold to thefederal government, the state, or political subdivision thereof,and any owner who sells a rental motor vehicle and transfersthe license plates issued to that motor vehicle under section168.15, subdivision 3, shall upon filing a verified claim beentitled to a refund of the unused portion of the tax paid uponthe vehicle, computed as follows:
(1) if the vehicle is registered under the calendar year systemof registration, the refund is computed pro rata by the month,1/12 of the annual tax paid for each month of the year remainingafter the month in which the plates and certificate were returnedto the registrar;
(2) in the case of a vehicle registered under the monthlyseries system of registration, the amount of the refund is equalto the sum of the amounts of the license fee attributable tothose months remaining in the licensing period after the month inwhich the plates and certificate were returned to theregistrar.
There is hereby appropriated to the persons entitled to arefund, from the fund or account in the state treasury to whichthe money was credited, an amount sufficient to make the refundand payment. Refunds under this section to licensed motorvehicle lessors must be made annually in a manner the registrardetermines.
Sec. 11. Minnesota Statutes 1994, section 168.33, is amendedby adding a subdivision to read:
Subd. 8. [TEMPORARY DISABILITY PERMIT AND FEE.] Theregistrar shall allow deputy registrars to implement and followprocedures for processing applications and accepting andremitting fee payments for 30-day temporary disability permitsissued under section 169.345, subdivision 3, paragraph (c), thatare identical or substantially similar to the procedures requiredby rule for motor vehicle registration and titlingtransactions.
Sec. 12. Minnesota Statutes 1994, section 169.121, subdivision3, is amended to read:
Subd. 3. [CRIMINAL PENALTIES.] (a) As used in thissubdivision:
(1) "prior impaired driving conviction" means a priorconviction under this section; section 84.91, subdivision 1,paragraph (a); 86B.331, subdivision 1, paragraph (a); 169.129;360.0752; 609.21, subdivision 1, clauses (2) to (4); 609.21,subdivision 2, clauses (2) to (4); 609.21, subdivision 2a,clauses (2) to (4); 609.21, subdivision 3, clauses (2) to (4);609.21, subdivision 4, clauses (2) to (4); or an ordinance fromthis state, or a statute or ordinance from another state inconformity with any of them. A prior impaired driving convictionalso includes a prior juvenile adjudication that would have beena prior impaired driving conviction if committed by an adult;and
(2) "prior license revocation" means a driver's licensesuspension, revocation, or cancellation under this section;section 169.123; 171.04; 171.14; 171.16; 171.17; or 171.18because of an alcohol-related incident; 609.21, subdivision 1,clauses (2) to (4); 609.21, subdivision 2, clauses (2) to (4);609.21, subdivision 2a, clauses (2) to (4); 609.21,subdivision 3, clauses (2) to (4); or 609.21, subdivision 4,clauses (2) to (4); or an ordinance from this state, or astatute or ordinance from another state in conformity with any ofthem.
(b) A person who violates subdivision 1 or 1a, or an ordinancein conformity with either of them, is guilty of a misdemeanor.
(c) A person is guilty of a gross misdemeanor under any of thefollowing circumstances:
(1) the person violates subdivision 1 within five years of aprior impaired driving conviction, or within ten years of thefirst of two or more prior impaired driving convictions;
(2) the person violates subdivision 1a within five years of aprior license revocation, or within ten years of the first of twoor more prior license revocations;
(3) the person violates section 169.26 while in violation ofsubdivision 1; or
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9750(4) the person violates subdivision 1 or 1a while a child underthe age of 16 is in the vehicle, if the child is more than 36months younger than the violator.
(d) The attorney in the jurisdiction in which the violationoccurred who is responsible for prosecution of misdemeanorviolations of this section shall also be responsible forprosecution of gross misdemeanor violations of this section.
(e) The court must impose consecutive sentences when itsentences a person for a violation of this section or section169.29 arising out of separate behavioral incidents. The courtalso must impose a consecutive sentence when it sentences aperson for a violation of this section or section 169.129 and theperson, at the time of sentencing, is on probation for, orserving, an executed sentence for a violation of this section orsection 169.29 and the prior sentence involved a separatebehavioral incident. The court also may order that the sentenceimposed for a violation of this section or section 169.29 shallrun consecutively to a previously imposed misdemeanor, grossmisdemeanor or felony sentence for a violation other than thissection or section 169.129.
(f) When an attorney responsible for prosecuting grossmisdemeanors under this section requests criminal historyinformation relating to prior impaired driving convictions from acourt, the court must furnish the information without charge.
(g) A violation of subdivision 1a may be prosecuted either inthe jurisdiction where the arresting officer observed thedefendant driving, operating, or in control of the motor vehicleor in the jurisdiction where the refusal occurred.
Sec. 13. [APPROPRIATION TO PAY INITIAL COSTS OF OLYMPICPLATES.]
(a) The Minnesota amateur sports commission shall pay thecommissioner an amount determined by the commissioner to equalthe administrative, handling, and manufacturing costs of thefirst production of Olympic license plates. Production oflicense plates must begin after the commissioner receivespayment.
(b) The amount determined by the commissioner underparagraph (a) is appropriated to the commissioner of publicsafety to pay the costs of the first production of Olympiclicense plates. The sum is available until spent.
(c) The amount paid by the Minnesota amateur sportscommission to the commissioner under paragraph (a) isappropriated to the Minnesota amateur sports commission from thehighway user tax distribution fund. This appropriation isavailable to the extent that Olympic license plates are sold andreceipts are credited to the highway user tax distributionfund.
Sec. 14. [REPORT.]
The commissioner of public safety shall report to thelegislature by January 15, 1999, on the fiscal impact ofsections 9 and 10. The report must include the total amount paidin refunds and collected in fees under those sections.
Sec. 15. [EFFECTIVE DATE.]
Section 8 is effective the day following finalenactment.
Sections 9 and 10 are effective January 1, 1997, and arerepealed June 30, 1999.
Section 1. Minnesota Statutes 1995 Supplement, section275.065, subdivision 3, is amended to read:
Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The countyauditor shall prepare and the county treasurer shall deliverafter November 10 and on or before November 24 each year, byfirst class mail to each taxpayer at the address listed on thecounty's current year's assessment roll, a notice of proposedproperty taxes and, in the case of a town, final propertytaxes.
(b) The commissioner of revenue shall prescribe the form of thenotice.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9751(c) The notice must inform taxpayers that it contains theamount of property taxes each taxing authority other than a townproposes to collect for taxes payable the following year and, fora town, the amount of its final levy. It must clearly state thateach taxing authority, including regional library districtsestablished under section 134.201, and including the metropolitantaxing districts as defined in paragraph (i), but excluding allother special taxing districts and towns, will hold a publicmeeting to receive public testimony on the proposed budget andproposed or final property tax levy, or, in case of a schooldistrict, on the current budget and proposed property tax levy. It must clearly state the time and place of each taxingauthority's meeting and an address where comments will bereceived by mail.
(d) The notice must state for each parcel:
(1) the market value of the property as determined undersection 273.11, and used for computing property taxes payable inthe following year and for taxes payable in the current year;and, in the case of residential property, whether the property isclassified as homestead or nonhomestead. The notice must clearlyinform taxpayers of the years to which the market values applyand that the values are final values;
(2) by county, city or town, school district excess referendalevy, remaining school district levy, regional library district,if in existence, the total of the metropolitan special taxingdistricts as defined in paragraph (i) and the sum of theremaining special taxing districts, and as a total of the taxingauthorities, including all special taxing districts, the proposedor, for a town, final net tax on the property for taxes payablethe following year and the actual tax for taxes payable thecurrent year. For the purposes of this subdivision, "schooldistrict excess referenda levy" means school district taxes foroperating purposes approved at referendums, including those taxesbased on net tax capacity as well as those based on market value. "School district excess referenda levy" does not include schooldistrict taxes for capital expenditures approved at referendumsor school district taxes to pay for the debt service on bondsapproved at referenda. In the case of the city of Minneapolis,the levy for the Minneapolis library board and the levy forMinneapolis park and recreation shall be listed separately fromthe remaining amount of the city's levy. In the case of a parcelwhere tax increment or the fiscal disparities areawide taxapplies, the proposed tax levy on the captured value or theproposed tax levy on the tax capacity subject to the areawide taxmust each be stated separately and not included in the sum of thespecial taxing districts; and
(3) the increase or decrease in the amounts in clause (2) fromtaxes payable in the current year to proposed or, for a town,final taxes payable the following year, expressed as a dollaramount and as a percentage.
(e) The notice must clearly state that the proposed or finaltaxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposedtaxes are certified, including bond referenda, school districtlevy referenda, and levy limit increase referenda;
(3) amounts necessary to pay cleanup or other costs due to anatural disaster occurring after the date the proposed taxes arecertified;
(4) amounts necessary to pay tort judgments against the taxingauthority that become final after the date the proposed taxes arecertified; and
(5) the contamination tax imposed on properties which receivedmarket value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the countyauditor to prepare or the county treasurer to deliver the noticeas required in this section does not invalidate the proposed orfinal tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this sectionlists the property as nonhomestead and the homeowner providessatisfactory documentation to the county assessor that theproperty is owned and has been used as the owner's homesteadprior to June 1 of that year, the assessor shall reclassify theproperty to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as aresidence for lease or rental periods of 30 days or more, thetaxpayer must either:
(1) mail or deliver a copy of the notice of proposed propertytaxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on thepremises of the property.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9752The notice must be mailed or posted by the taxpayer by November27 or within three days of receipt of the notice, whichever islater. A taxpayer may notify the county treasurer of the addressof the taxpayer, agent, caretaker, or manager of the premises towhich the notice must be mailed in order to fulfill therequirements of this paragraph.
(i) For purposes of this subdivision, subdivisions 5a and 6,"metropolitan special taxing districts" means the followingtaxing districts in the seven-county metropolitan area that levya property tax for any of the specified purposes listed below:
(1) metropolitan council under section 473.132, 473.167,473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
(2) metropolitan airports commission under section 473.667,473.671, or 473.672; and
(3) metropolitan mosquito control commission under section473.711.
(j) For taxes levied in 1996, payable in 1997 only, in thecase of a statutory or home rule charter city or town thatexercises the local levy option provided in section 473.388,subdivision 7, the notice of its proposed taxes may include astatement of the amount by which its proposed tax increase fortaxes payable in 1997 is attributable to its exercise of thatoption, together with a statement that the levy of themetropolitan council was decreased by a similar amount because ofthe exercise of that option.
For purposes of this section, any levies made by the regionalrail authorities in the county of Anoka, Carver, Dakota,Hennepin, Ramsey, Scott, or Washington under chapter 398A shallbe included with the appropriate county's levy and shall bediscussed at that county's public hearing.
Sec. 2. Minnesota Statutes 1995 Supplement, section 275.065,subdivision 6, is amended to read:
Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.]Between November 29 and December 20, the governing bodies of thecity, county, metropolitan special taxing districts as defined insubdivision 3, paragraph (i), and regional library districtsshall each hold a public hearing to discuss and seek publiccomment on its final budget and property tax levy for taxespayable in the following year, and the governing body of theschool district shall hold a public hearing to review its currentbudget and proposed property tax levy for taxes payable in thefollowing year. The metropolitan special taxing districts shallbe required to hold only a single joint public hearing, thelocation of which will be determined by the affected metropolitanagencies.
At a subsequent hearing, each county, school district, city,and metropolitan special taxing district may amend its proposedproperty tax levy and must adopt a final property tax levy. Eachcounty, city, and metropolitan special taxing district may alsoamend its proposed budget and must adopt a final budget at thesubsequent hearing. A school district is not required to adoptits final budget at the subsequent hearing. The subsequenthearing of a taxing authority must be held on a date subsequentto the date of the taxing authority's initial public hearing, orsubsequent to the date of its continuation hearing if acontinuation hearing is held. The subsequent hearing may be heldat a regularly scheduled board or council meeting or at a specialmeeting scheduled for the purposes of the subsequent hearing. The subsequent hearing of a taxing authority does not have to becoordinated by the county auditor to prevent a conflict with aninitial hearing, a continuation hearing, or a subsequent hearingof any other taxing authority. All subsequent hearings must beheld prior to five working days after December 20 of the levyyear.
The time and place of the subsequent hearing must be announcedat the initial public hearing or at the continuation hearing.
The property tax levy certified under section 275.07 by a city,county, metropolitan special taxing district, regional librarydistrict, or school district must not exceed the proposed levydetermined under subdivision 1, except by an amount up to the sumof the following amounts:
(1) the amount of a school district levy whose voters approveda referendum to increase taxes under section 124.82, subdivision3, 124A.03, subdivision 2, 124B.03, subdivision 2, or 136C.411,after the proposed levy was certified;
(2) the amount of a city or county levy approved by the votersafter the proposed levy was certified;
(3) the amount of a levy to pay principal and interest on bondsissued or approved by the voters under section 475.58 after theproposed levy was certified;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9753(4) the amount of a levy to pay costs due to a natural disasteroccurring after the proposed levy was certified, if that amountis approved by the commissioner of revenue under subdivision6a;
(5) the amount of a levy to pay tort judgments against a taxingauthority that become final after the proposed levy wascertified, if the amount is approved by the commissioner ofrevenue under subdivision 6a;
(6) the amount of an increase in levy limits certified to thetaxing authority by the commissioner of children, families, andlearning or the commissioner of revenue after the proposedlevy was certified; and
(7) the amount required under section 124.755.
At the hearing under this subdivision, the percentage increasein property taxes proposed by the taxing authority, if any, andthe specific purposes for which property tax revenues are beingincreased must be discussed.
During the discussion, the governing body shall hear commentsregarding a proposed increase and explain the reasons for theproposed increase. The public shall be allowed to speak and toask questions. At the subsequent hearing held as provided inthis subdivision, the governing body, other than the governingbody of a school district, shall adopt its final property taxlevy prior to adopting its final budget.
If the hearing is not completed on its scheduled date, thetaxing authority must announce, prior to adjournment of thehearing, the date, time, and place for the continuation of thehearing. The continued hearing must be held at least fivebusiness days but no more than 14 business days after theoriginal hearing.
The hearing must be held after 5:00 p.m. if scheduled on a dayother than Saturday. No hearing may be held on a Sunday. Thegoverning body of a county shall hold a hearing on the secondTuesday in December each year, and may hold additional hearingson other dates before December 20 if necessary for theconvenience of county residents. If the county needs acontinuation of its hearing, the continued hearing shall be heldon the third Tuesday in December. If the third Tuesday inDecember falls on December 21, the county's continuation hearingshall be held on Monday, December 20. The county auditor shallprovide for the coordination of hearing dates for all cities andschool districts within the county.
The metropolitan special taxing districts shall hold a jointpublic hearing on the first Monday of December. A continuationhearing, if necessary, shall be held on the second Monday ofDecember.
By August 10, each school board and the board of the regionallibrary district shall certify to the county auditors of thecounties in which the school district or regional librarydistrict is located the dates on which it elects to hold itshearings and any continuations. If a school board or regionallibrary district does not certify the dates by August 10, theauditor will assign the hearing date. The dates elected orassigned must not conflict with the hearing dates of the countyor the metropolitan special taxing districts. By August 20, thecounty auditor shall notify the clerks of the cities within thecounty of the dates on which school districts and regionallibrary districts have elected to hold their hearings. At thetime a city certifies its proposed levy under subdivision 1 itshall certify the dates on which it elects to hold its hearingsand any continuations. The city must not select dates thatconflict with the county hearing dates, metropolitan specialtaxing district dates, or with those elected by or assigned tothe school districts or regional library district in which thecity is located.
The county hearing dates and the city, metropolitan specialtaxing district, regional library district, and school districthearing dates must be designated on the notices required undersubdivision 3. The continuation dates need not be stated on thenotices.
This subdivision does not apply to towns and special taxingdistricts other than regional library districts and metropolitanspecial taxing districts.
Notwithstanding the requirements of this section, the employeris required to meet and negotiate over employee compensation asprovided for in chapter 179A.
Sec. 3. Minnesota Statutes 1994, section 473.388, subdivision5, is amended to read:
Subd. 5. [OTHER ASSISTANCE.] A city or town receivingassistance or levying a transit tax under this section mayalso receive assistance from the council under section 473.384. In applying for assistance under that section an applicant mustdescribe the portion of the its available localtransit funds or local transit taxes which are notobligated to subsidize its replacement transitservice and which the applicant proposes to use to subsidizeadditional service. An applicant which has exhausted itsavailable local transit funds or local transit taxes mayuse any other local subsidy funds to complete the required localshare.
Sec. 4. Minnesota Statutes 1994, section 473.388, is amendedby adding a subdivision to read:
Subd. 7. [LOCAL LEVY OPTION.] (a) A statutory orhome rule charter city or town that is eligible for assistanceunder this section, in lieu of receiving the assistance, may levya tax for payment of the operating and capital expenditures fortransit and other related activities and to provide for paymentof obligations issued by the municipality for such purposes,provided that the tax must be sufficient to maintain the level oftransit service provided in the municipality in the previousyear.
(b) The transit tax revenues derived by the municipality maynot exceed:
(1) for the first transit levy year and any subsequenttransit levy year immediately following a year in which themunicipality declines to make the levy, the maximum availablelocal transit funds for the municipality for taxes payable in thecurrent year under section 473.446, calculated as if thepercentage of transit tax revenues for the municipality were 88percent instead of 90 percent, and multiplied by themunicipality's market value adjustment ratio; and
(2) for taxes levied in any year that immediately follows ayear in which the municipality elects to levy under thissubdivision, the maximum transit tax that the municipality mayhave levied in the previous year under this subdivision,multiplied by the municipality's market value adjustmentratio.
The commissioner of revenue shall certify the municipality'slevy limitation under this subdivision to the municipality byJune 1 of the levy year. The tax must be accumulated and kept ina separate fund to be known as the "replacement transitfund."
(c) To enable the municipality to receive revenues describedin clauses (2) and (3) of the definition of "tax revenues" insubdivision 4, that would otherwise be lost if the municipality'stransit tax levy was not treated as a successor levy to that madeby the council under section 473.446:
(1) in the first transit levy year and any subsequenttransit levy year immediately following a year in which themunicipality declined to make the levy, 88 percent of thecouncil's nondebt spread levy for the current taxes payable yearshall be treated as levied by the municipality, and not thecouncil, for purposes of section 473F.08, subdivision 3, for thepurpose of determining its local tax rate for the preceding year;and
(2) 88 percent of the revenues described in clause (3) ofthe definition of "tax revenues" in subdivision 4, payable in thefirst transit levy year, or payable in any subsequent transitlevy year following a year in which a municipality declined tomake the levy, shall be permanently transferred from the councilto the municipality. If a municipality levies a tax under thissubdivision in one year, but declines to levy in a subsequentyear, the aid transferred under this clause shall be transferredback to the council.
(d) Any transit taxes levied under this subdivision are notsubject to, or counted towards, any limit hereafter imposed bylaw on the levy of taxes upon taxable property within anymunicipality unless the law specifically includes the transittax.
(e) This subdivision is consistent with the transit redesignplan. Eligible municipalities opting to levy the transit taxunder this subdivision shall continue to meet the regionalperformance standards established by the council.
(f) Within the designated Americans with Disabilities Actarea, metro mobility remains the obligation of the state.
(g) For purposes of this subdivision, "transit levy year" isany year in which the municipality elects to levy under thissubdivision.
(h) A municipality may not levy taxes under this subdivisionin any year unless it notifies the council and the commissionerof revenue of its intent to levy before July 1 of the levy year. The notification must include the amount of the municipality'sproposed transit tax for the current levy year.
Sec. 5. Minnesota Statutes 1995 Supplement, section 473.446,subdivision 1, is amended to read:
Subdivision 1. [TAXATION WITHIN TRANSIT TAXING DISTRICT.] Forthe purposes of sections 473.405 to 473.449 and the metropolitantransit system, except as otherwise provided in this subdivisionand subdivision 1b, the council shall levy each year uponall taxable property within the metropolitan transit taxingdistrict, defined in subdivision 2, a transit tax consistingof:
(a) an amount which shall be used for payment of the expensesof operating transit and paratransit service and to provide forpayment of obligations issued by the council under section473.436, subdivision 6;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9755(b) an additional amount, if any, the council determines to benecessary to provide for the full and timely payment of itscertificates of indebtedness and other obligations outstanding onJuly 1, 1985, to which property taxes under this section havebeen pledged; and
(c) an additional amount necessary to provide full and timelypayment of certificates of indebtedness, bonds, includingrefunding bonds or other obligations issued or to be issued undersection 473.39 by the council for purposes of acquisition andbetterment of property and other improvements of a capital natureand to which the council has specifically pledged tax leviesunder this clause.
The property tax levied by the council for general purposesunder clause paragraph (a) must not exceed thefollowing amount for the years specified:
(1) for taxes payable in 1995, the council's property tax levylimitation for general transit purposes is equal to the formerregional transit board's property tax levy limitation for generaltransit purposes under this subdivision, for taxes payable in1994, multiplied by an index for market valuation changes equalto the total market valuation of all taxable property locatedwithin the metropolitan transit taxing district for the currenttaxes payable year divided by the total market valuation of alltaxable property located within the metropolitan transit taxingdistrict for the previous taxes payable year; and
(2) for taxes payable in 1996 and subsequent years, the productof (i) the council's property tax levy limitation for generaltransit purposes for the previous year determined under thissubdivision before reduction by the amount levied by anymunicipality in the previous year under section 473.388,subdivision 7, multiplied by (ii) an index for marketvaluation changes equal to the total market valuation of alltaxable property located within the metropolitan transit taxingdistrict for the current taxes payable year divided by the totalmarket valuation of all taxable property located within themetropolitan transit taxing district for the previous taxespayable year, minus the amount levied by any municipality inthe current levy year under section 473.388, subdivision7.
The portion of the property tax levy for transit districtoperating purposes attributable to a municipality that hasexercised a local levy option under section 473.388, subdivision7, is the amount as determined under subdivision 1b. The portionof the property tax levy for transit district operating purposesattributable to the remaining municipalities within the transitdistrict is found by subtracting the portions attributable to themunicipalities that have exercised a local levy option undersection 473.388, subdivision 7.
For the taxes payable year 1995, the index for market valuationchanges shall be multiplied by an amount equal to the sum of theregional transit board's property tax levy limitation for thetaxes payable year 1994 and $160,665. The $160,665 increaseshall be a permanent adjustment to the levy limit base used indetermining the regional transit board's property tax levylimitation for general purposes for subsequent taxes payableyears.
For the purpose of determining the council's property tax levylimitation for general transit purposes under this subdivision,"total market valuation" means the total market valuation of alltaxable property within the metropolitan transit taxing districtwithout valuation adjustments for fiscal disparities (chapter473F), tax increment financing (sections 469.174 to 469.179), andhigh voltage transmission lines (section 273.425).
The county auditor shall reduce the tax levied pursuant to thissubdivision section and section 473.388 on allproperty within statutory and home rule charter cities and townsthat receive full-peak service and limited off-peak service by anamount equal to the tax levy that would be produced by applying arate of 0.510 percent of net tax capacity on the property. Thecounty auditor shall reduce the tax levied pursuant to thissubdivision section and section 473.388 on allproperty within statutory and home rule charter cities and townsthat receive limited peak service by an amount equal to the taxlevy that would be produced by applying a rate of 0.765 percentof net tax capacity on the property. The amounts so computed bythe county auditor shall be submitted to the commissioner ofrevenue as part of the abstracts of tax lists required to befiled with the commissioner under section 275.29. Any prior yearadjustments shall also be certified in the abstracts of taxlists. The commissioner shall review the certifications todetermine their accuracy and may make changes in thecertification as necessary or return a certification to thecounty auditor for corrections. The commissioner shall pay tothe council and to the municipalities levying under section473.388, subdivision 7, the amounts certified by the countyauditors on the dates provided in section 273.1398,apportioned between the council and the municipality in the sameproportion as the total transit levy is apportioned within themunicipality. There is annually appropriated from thegeneral fund in the state treasury to the department of revenuethe amounts necessary to make these payments.
For the purposes of this subdivision, "full-peak and limitedoff-peak service" means peak period regular route service, plusweekday midday regular route service at intervals longer than 60minutes on the route with the greatest frequency; and "limitedpeak period service" means peak period regular route serviceonly.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9756For the purposes of property taxes payable in the followingyear, the council shall annually determine which cities and townsqualify for the 0.510 percent or 0.765 percent tax capacity ratereduction and shall certify this list to the county auditor ofthe county wherein such cities and towns are located on or beforeSeptember 15. No changes may be made to the annual list afterSeptember 15.
Sec. 6. Minnesota Statutes 1994, section 473.446, is amendedby adding a subdivision to read:
Subd. 1b. [DEDUCTION OF LOCAL TRANSIT LEVY FOR ELIGIBLEMUNICIPALITIES.] (a) The maximum the council may levy forgeneral purposes under subdivision 1, paragraph (a), upon taxableproperty within a municipality levying taxes under section473.388, subdivision 7, is the combined transit tax levied withinthe municipality in the previous year under subdivision 1 andsection 473.388, subdivision 7, multiplied by the municipality'smarket value adjustment ratio, minus the amount to be levied bythe municipality under section 473.388, subdivision 7, for thecurrent levy year.
(b) For purposes of this subdivision:
(1) "municipality" means a municipality levying taxes undersection 473.388, subdivision 7, for replacementtransit service;
(2) "market value adjustment ratio" means the index formarket valuation changes described in this section, as applied toindividual municipalities; and
(3) "tax revenues" has the meaning given the term in section473.388, subdivision 4.
Sec. 7. Minnesota Statutes 1995 Supplement, section 473.446,subdivision 8, is amended to read:
Subd. 8. [STATE REVIEW.] The commissioner of revenue shallcertify the council's levy limitation under this section to thecouncil by August 1 of the levy year. The council must certifyits proposed property tax levy under this section to thecommissioner of revenue by September 1 of the levy year. Thecommissioner of revenue shall annually determine whether theproperty tax for transit purposes certified by the council forlevy following the adoption of its proposed budget is within thelevy limitation imposed by subdivision subdivisions1 and 1b. The commissioner shall also annually determinewhether the transit tax imposed on all taxable property withinthe metropolitan transit area but outside of the metropolitantransit taxing district is within the levy limitation imposed bysubdivision 1a. The determination must be completed prior toSeptember 10 of each year. If current information regardingmarket valuation in any county is not transmitted to thecommissioner in a timely manner, the commissioner may estimatethe current market valuation within that county for purposes ofmaking the calculations.
Sec. 8. [473.4465] [REPLACEMENT TRANSIT SERVICE PROPERTY TAXRELIEF.]
Any year in which the legislature appropriates funds to thecouncil for transit property tax relief, the council shallallocate a proportionate amount of the appropriation for propertytax relief in municipalities levying for replacement transitservice under section 473.388, subdivision 7.
Sec. 9. [APPLICATION.]
This article applies in the counties of Anoka, Carver,Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 10. [EFFECTIVE DATE.]
Sections 1 to 7 are effective for taxes levied in 1996,payable in 1997 and subsequent years. Section 8 is effectiveJuly 1, 1997.
Section 1. Minnesota Statutes 1995 Supplement, section 13.69,subdivision 1, is amended to read:
Subdivision 1. [CLASSIFICATIONS.] (a) The following governmentdata of the department of public safety are private data:
(1) medical data on driving instructors, licensed drivers, andapplicants for parking certificates and special license platesissued to physically handicapped persons;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9757 (2) other data on holders of a disability certificate undersection 169.345, except that data that are not medical data maybe released to law enforcement agencies; and
(3) social security numbers in driver's license and motorvehicle registration records, except that social security numbersmust be provided to the department of revenue for purposes of taxadministration and the department of labor and industry forpurposes of workers' compensation administration andenforcement.; and
(4) data on persons listed as designated parents undersection 171.07, subdivision 11, except that the data must bereleased to:
(i) law enforcement agencies for the purpose of verifyingthat an individual is a designated parent; or
(ii) law enforcement agencies who state that the licenseholder is unable to communicate at that time and that theinformation is necessary for notifying the designated parent ofthe need to care for a child of the license holder.
(b) The following government data of the department of publicsafety are confidential data: data concerning an individual'sdriving ability when that data is received from a member of theindividual's family.
Sec. 2. Minnesota Statutes 1994, section 171.07, is amended byadding a subdivision to read:
Subd. 11. [DESIGNATED PARENT.] (a) Upon the writtenrequest of the applicant on a form developed by the department,which contains the information specified in paragraph (b), andupon payment of an additional fee of $3.50, the department shallissue a driver's license or Minnesota identification card bearinga symbol or other appropriate identifier indicating that thelicense holder has appointed an individual to serve as adesignated parent under chapter 257A.
(b) The form shall provide as follows:
"...(Name of parent(s))... appoints ...(name of designatedparent)... to provide care for ...(name of child or children)...when requested by the parent(s) or when the parent(s) is unableto care for the child (children) and unable to request thedesignated parent's assistance.
The designated parent will care for the child (children)named in this form for (choose one of the following):
(indicate a specified period of time that is less than oneyear); or
(indicate that care is to be provided for one year).
The designated parent has the powers and duties to makedecisions and meet the child's (children's) needs in the areaschecked or specified below:
education . . . . .
health care . . . . .
religion . . . . .
day care . . . . .
recreation . . . . .
other . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9758The designated parent (choose one of the following):
is . . .
is not . . .
authorized to make decisions about financial issues andcontrol financial resources provided for the child (children) bythe parent.
This designated parent agreement is effective for four yearsfollowing the date it is signed by the parent(s), designatedparent, any child age 14 or older, and any alternate designatedparent. However, the agreement may be canceled by a parent, adesignated parent, or an alternate designated parent at any timebefore that date, upon notice to the other parties to theagreement.
(Parent(s) signature(s) and Minnesota driver's license(s) orMinnesota identification card number(s))
(Designated parent signature, Minnesota driver's license orMinnesota identification card number, address, and telephonenumber)
(Alternate designated parent signature, Minnesota driver'slicense or Minnesota identification card number, address, andtelephone number)
(Child age 14 or older signature .....)
(Date .....)
(Notarization .....)"
(c) The department shall maintain a computerized recordssystem of all persons listed as designated parents by driver'slicense and identification card applicants. This data shall bereleased to appropriate law enforcement agencies under section13.69. Upon a parent's request and payment of a fee of $3.50,the department shall revise its list of designated parents andalternates to reflect a change in the appointment of a designatedparent.
(d) At the request of the license or card holder, thedepartment shall cancel the designated parent indication withoutadditional charge. However, this paragraph does not prohibit afee that may be applicable for a duplicate or replacement licenseor card, renewal of a license, or other service applicable to adriver's license or identification card.
(e) Notwithstanding sections 13.08, subdivision 1, and13.69, the department and department employees are conclusivelypresumed to be acting in good faith when employees rely onstatements made, in person or by telephone, by persons purportingto be law enforcement and subsequently release informationdescribed in paragraph (b). When acting in good faith, thedepartment and department personnel are immune from civilliability and not subject to suit for damages resulting from therelease of this information.
(f) The department and its employees:
(1) have no duty to inquire or otherwise determine whether aform submitted under this subdivision contains the signatures ofall parents who have legal custody of a child; and
(2) are immune from all civil liability and not subject tosuit for damages resulting from a claim that any parent withlegal custody of a child has not signed the form.
(g) Of the fees received by the department under thissubdivision:
(1) Up to $111,000 received in fiscal year 1997 and up to$61,000 received in subsequent fiscal years must be deposited inthe general fund.
(2) All other fees must be deposited in the trunk highwayfund.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9759Sec. 3. Minnesota Statutes 1994, section 171.26, is amended toread:
171.26 [MONEY CREDITED TO FUNDS.]
All money received under this chapter must be paid into thestate treasury and credited to the trunk highway fund, except asprovided in sections 171.06, subdivision 2a; 171.07,subdivision 11, paragraph (g); 171.12, subdivision 8;and 171.29, subdivision 2, paragraph (b).
Sec. 4. [257A.01] [DESIGNATED PARENT AGREEMENT.]
Subdivision 1. [DESIGNATION IN AGREEMENT.] A parentwho has legal custody of a child may execute a designated parentagreement that names an adult to serve as a designated parent tocare for the parent's minor child for a period of time specifiedin the designated parent agreement, but not to exceed oneyear.
Subd. 2. [CONSENTS AND NOTICE REQUIRED.] Theagreement must be executed by all parents with physical custodyof the child. The agreement becomes operative when none of theparents with physical custody is able to care for the child. Assoon as practicable after executing an agreement, a copy of theagreement must be given to any noncustodial parent of the childand to every child age 14 or older to whom the agreementapplies.
Sec. 5. [257A.02] [DESIGNATED PARENT; ALTERNATE.]
An individual acting as a designated parent is exempt inthat role from any statute or administrative rule requiring afoster care license, unless the child was placed in the home ofthe designated parent by a child-placing agency pursuant to avoluntary placement agreement or court order, but must providethe notice required by section 257A.09 if applicable. A parentwho has named a guardian by will for the parent's children mayname that guardian or another individual as a designated parentfor the child. A parent who has legal custody of more than onechild may appoint the same or a different designated parent foreach child.
A parent may appoint an alternate designated parent whowould serve if the designated parent is unwilling or unable toserve. All the provisions of this chapter dealing with adesignated parent apply to an alternate designated parent.
Sec. 6. [257A.03] [POWERS AND DUTIES OF DESIGNATED PARENT.]
Subdivision 1. [GENERAL.] A designated parent hasall the powers regarding the care, custody, and financialinterests of a minor child specified in the designated parentagreement, except as otherwise provided in this section. Adesignated parent does not have the power to consent to marriageor adoption of the child.
Subd. 2. [NOTICE TO NONCUSTODIAL PARENT; VISITATION.]As soon as practicable after assuming care of a child, thedesignated parent shall notify any noncustodial parent that thedesignated parent has assumed care of the child. Court-orderedvisitation rights of a noncustodial parent continue while thechild is in the care of the designated parent, unless otherwisemodified by the court. A designated parent agreement does notaffect the right of a parent without physical custody to bring acustody motion under chapter 518.
Subd. 3. [CHILD SUPPORT.] A preexisting childsupport order is not suspended or terminated during the time achild is cared for by a designated parent, unless otherwiseprovided by court order. A designated parent has a cause ofaction for child support against an absent parent under section256.87, subdivision 5.
Sec. 7. [257A.04] [DURATION.]
Subdivision 1. [IN GENERAL.] Unless canceled earlierunder section 257A.07 by a parent or the designated parent, adesignated parent agreement is effective for four years, afterwhich date a new agreement may be entered. The new agreement mayname the same or a different designated parent. A designatedparent agreement automatically terminates as to any child whenthat child reaches age 18 or is lawfully married.
Subd. 2. [DEATH OF A PARENT.] If a parent dies whilea designated parent agreement is in effect, and there is noliving parent able to care for the child, the designated parentshall care for the child until a guardian appointed by will isable to take custody of the child or until a court orderotherwise provides for the care of the child. However, thedesignated parent may cancel the agreement at any time undersection 257A.07.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9760Sec. 8. [257A.05] [FORM.]
Subdivision 1. [WRITING.] A designated parentagreement must be made in writing and all signatures mustbe notarized.
Subd. 2. [DESIGNATED PARENT INDICATION ON DRIVER'SLICENSE.] A parent who wishes to have a designated parentindication placed on the parent's driver's license oridentification card under section 171.07, subdivision 11, mustsubmit a copy of the notarized designated parent agreement to thedepartment of public safety and pay any required fee.
Sec. 9. [257A.06] [MULTIPLE AGREEMENTS.]
If more than one otherwise valid designated parent agreementexists regarding the same child, the priority among agreements isdetermined as follows:
(1) an agreement that has been submitted to the departmentof public safety has priority over any other agreement;
(2) if one or more agreements have been submitted to thedepartment of public safety under section 171.07, subdivision 11,the agreement with the most recent date that has been submittedto the department controls; and
(3) if multiple agreements exist, none of which has beensubmitted to the department of public safety, the agreement withthe most recent date controls.
Sec. 10. [257A.07] [CANCELLATION.]
Subdivision 1. [HOW AND BY WHOM.] A parent maycancel a designated parent agreement at any time. The parentshall notify the designated parent of the cancellation. If thedesignated parent is caring for the child at the time ofcancellation, the child must be returned to the parentimmediately upon the parent's request.
A designated parent may decline to serve at any time, andthe parent must cancel the agreement immediately upon request bythe designated parent. If a designated parent is caring for achild when the designated parent cancels the agreement, theparent must take physical custody of the child immediately. Ifthe parent is unable to resume physical custody at thattime:
(1) the parent may name a new designated parent to care forthe child who shall immediately take custody of the child;or
(2) if that is not possible, the designated parent shallcontact the local social service agency, which shall assess theneeds and circumstances of the child, including the likelihood ofthe noncustodial parent taking custody, and the need forplacement and court action on behalf of the child, ifnecessary.
Subd. 2. [NOTICE TO DEPARTMENT OF PUBLIC SAFETY.] Aparent who has had a designated parent indication placed on theparent's driver's license or identification card under section171.07, subdivision 11, has the responsibility to notify thedepartment of public safety in writing whenever a designatedparent agreement is canceled or a new designated parent oralternate is chosen.
Sec. 11. [257A.08] [EXTENDING PERIOD OF CARE.]
If a parent is unable to resume caring for a child uponexpiration of the period of care indicated in the designatedparent agreement, the period of care may be extended for a lengthof time agreed by the parent and designated parent, but not toexceed one year. If a parent cannot be contacted or is unable tocommunicate a decision about the child's care when the agreedperiod of care expires, the designated parent may:
(1) petition the juvenile court to authorize continued careby the designated parent until the parent is able to resume thechild's care, or for one year, whichever is sooner; or
(2) contact the local social service agency, which shallassess the needs and circumstances of the child, including thelikelihood of the noncustodial parent taking custody of thechild, and the need for placement and court action on behalf ofthe child, if necessary.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9761Sec. 12. [257A.09] [NOTICE TO LOCAL SOCIAL SERVICE AGENCY;INVESTIGATION.]
If a child has been in the home of a designated parent for30 days, the designated parent shall promptly notify the localsocial service agency, any adult siblings of the child, and anyliving paternal or maternal grandparents, ofthe following:
(1) the child's name, home address, and the name and homeaddress of the child's parents;
(2) that the child is in the home under a designated parentagreement; and
(3) the length of time the child is expected to remain inthe designated parent's home.
The local social service agency may visit the child and thehome and may continue to visit and supervise the home and thechild or take other appropriate action to assure that the welfareof the child is fully protected.
Sec. 13. [257A.10] [LOCAL SOCIAL SERVICE AGENCYEVALUATION.]
When a local social service agency assumes responsibilityfor a child pursuant to a voluntary placement agreement or byorder of the court, and the parent requests that placement bewith a designated parent, the local social service agency mustevaluate the appropriateness of the child's placement with thedesignated parent. If placement with the designated parent isdeemed to be in the child's best interest, the designated parentmust comply with licensure requirements under Minnesota Statutes,chapter 245A, in order to provide foster care for thechild.
Sec. 14. Minnesota Statutes 1994, section 260.173, subdivision2, is amended to read:
Subd. 2. Notwithstanding the provisions of subdivision 1, ifthe child had been taken into custody pursuant to section260.165, subdivision 1, clause (a) or clause (c)(2), and is notalleged to be delinquent, the child shall be detained in theleast restrictive setting consistent with the child's health andwelfare and in closest proximity to the child's family aspossible. Placement may be with a child's relative, adesignated parent under chapter 257A, or in a shelter carefacility.
Sec. 15. Minnesota Statutes 1994, section 524.5-505, isamended to read:
524.5-505 [DELEGATION OF POWERS BY PARENT OR GUARDIAN.]
A parent or a guardian of a minor or incapacitated person, by aproperly executed power of attorney, may delegate to anotherperson, for a period not exceeding six months, any powersregarding care, custody, or property of the minor or ward, exceptthe power to consent to marriage or adoption of a minor ward. A parent of a minor child may delegate those powers for aperiod not exceeding one year by a designated parent agreementunder chapter 257A.
Sec. 16. [EFFECTIVE DATE.]
Sections 1 to 15 are effective July 1, 1996."
Delete the title and insert:
"A bill for an act relating to the organization and operationof state government; appropriating money to the department oftransportation and other agencies; increasing motor fuel tax;proposing a constitutional amendment to require at least 30percent of motor vehicle sales tax revenues be dedicatedexclusively to transit assistance; providing for speed limits andrecording of speeding violations; authorizing special licenseplates; providing for designated parent agreements; authorizingcertain tax levies for replacement transit service; amendingMinnesota Statutes 1994, sections 115A.9651, subdivision 1;160.83, by adding a subdivision; 160.85, by adding a subdivision;161.085; 161.14, by adding subdivisions; 161.36, subdivisions 1,2, 3, and 4; 161.46, subdivision 3; 161.53; 162.02, subdivisions7, 8, and by adding a subdivision; 162.07, subdivisions 1, 5, and6; 162.08, subdivisions 4 and 7; 162.14, subdivision 6; 168.013,subdivision 3; 168.042, subdivision 8, and by adding asubdivision; 168.12, subdivision 2; 168.123, subdivisions 1 and4; 168.15; 168.33, by adding a subdivision; 169.07; 169.121,subdivision 3; 169.14, subdivision 2, and by adding asubdivision; 169.82, subdivision 3; 169.85; 169.871, by adding asubdivision; 169.983; 169.99, subdivision 1b; 171.05, by adding asubdivision; 171.07, by adding a subdivision; 171.12, subdivision6; 171.26; 173.02, subdivision 6; 173.07, subdivision 1; 174.04;221.031, by adding a subdivision; 222.37, subdivision 1; 260.173,subdivision 2; 297B.09, subdivision 1; 473.388, subdivision 5,and by adding a subdivision; 473.446, by adding a
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9762subdivision; and 524.5-505; Minnesota Statutes 1995 Supplement,sections 13.69, subdivision 1; 168.1296, subdivision 1; 168.16;169.862; 171.04, subdivision 1; 221.0355, subdivisions 5 and 15;275.065, subdivisions 3 and 6; 296.02, subdivision 1b; 296.025,subdivision 1b; and 473.446, subdivisions 1 and 8; Laws 1994,chapter 589, section 8; proposing coding for new law in MinnesotaStatutes, chapters 161; 168; 173; and 473; proposing coding fornew law as Minnesota Statutes, chapter 257A; repealing MinnesotaStatutes 1994, sections 161.086; 161.115, subdivision 262; and169.141."
We request adoption of this report and repassage of thebill.
House Conferees: Bernard L. "Bernie" Lieder, Edwina Garcia andTom Osthoff.
Senate Conferees: Keith Langseth, Jim Vickerman and Paula E.Hanson.
Lieder moved that the report of the Conference Committee on H.F. No. 1404 be adopted and that the bill be repassed as amendedby the Conference Committee.
A roll call was requested and properly seconded.
The question was taken on the Lieder motion and the roll wascalled.
Carruthers moved that those not voting be excused from voting. The motion prevailed.
There were 35 yeas and 96 nays as follows:
Those who voted in the affirmative were:
Anderson, R. Dawkins Lieder Peterson WenzelBakk Dehler Lourey Rukavina WinterBertram Dorn Munger Solberg Sp.Anderson,IBrown Garcia Murphy Swenson, D. Carruthers Huntley Ness Swenson, H. Cooper Jaros Olson, E. Tomassoni Dauner Johnson, R. Osthoff Tunheim Davids Johnson, V. Ostrom VickermanThose who voted in the negative were:
Abrams Greenfield Larsen Opatz SmithAnderson, B. Greiling Leighton Orenstein StanekBettermann Gunther Leppik Orfield SviggumBoudreau Haas Lindner Osskopp SykoraBradley Hackbarth Long Otremba TompkinsBroecker Harder Luther Ozment TrimbleCarlson, L. Hasskamp Lynch Paulsen TumaCarlson, S. Hausman Macklin Pawlenty Van DellenClark Holsten Mahon Pellow Van EngenCommers Jefferson Mares Pelowski WageniusDaggett Johnson, A. Mariani Perlt WarkentinDelmont Kahn Marko Pugh WeaverDempsey Kelley McCollum Rest WejcmanEntenza Kelso McElroy Rhodes WolfErhardt Kinkel McGuire Rice WorkeFarrell Knight Milbert Rostberg Workman Finseth Knoblach Molnau Sarna Frerichs Koppendrayer Mulder Schumacher Girard Kraus Olson, M. Seagren Goodno Krinkie Onnen SkoglundThe motion did not prevail.
Farrell moved that the House refuse to adopt the ConferenceCommittee report on H. F. No. 1404, and that the bill be returnedto the Conference Committee.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9763A roll call was requested and properly seconded.
The question was taken on the Farrell motion and the roll wascalled.
Carruthers moved that those not voting be excused from voting. The motion prevailed.
There were 71 yeas and 63 nays as follows:
Those who voted in the affirmative were:
Anderson, R. Finseth Kelso Ness SkoglundBakk Garcia Kinkel Opatz SolbergBertram Greenfield Leighton Orenstein Swenson, H.Brown Greiling Lieder Orfield TomassoniCarlson, L. Hasskamp Long Osthoff TrimbleCarruthers Huntley Lourey Ostrom TunheimClark Jaros Luther Otremba VickermanCooper Jefferson Mahon Pelowski WejcmanDauner Jennings Mariani Peterson WenzelDavids Johnson, A. Marko Pugh WinterDawkins Johnson, R. McCollum Rest Sp.Anderson,IDelmont Johnson, V. McGuire Rice Dorn Kahn Milbert Rukavina Entenza Kalis Munger Sarna Farrell Kelley Murphy SchumacherThose who voted in the negative were:
Abrams Frerichs Krinkie Osskopp SykoraAnderson, B. Girard Larsen Ozment TompkinsBettermann Goodno Leppik Paulsen TumaBishop Gunther Lindner Pawlenty Van DellenBoudreau Haas Lynch Pellow Van EngenBradley Hackbarth Macklin Perlt WageniusBroecker Harder Mares Rhodes WarkentinCarlson, S. Hausman McElroy Rostberg WeaverCommers Holsten Molnau Seagren WolfDaggett Knight Mulder Smith WorkeDehler Knoblach Olson, E. Stanek Workman Dempsey Koppendrayer Olson, M. Sviggum Erhardt Kraus Onnen Swenson, D.The motion prevailed and H. F. No. 1404 was returned to Conference.
The Speaker announced the appointment of the following membersof the House to a Conference Committee on H. F. No. 2318:
Dorn, Perlt and Dehler.
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce that the Senate accedes to the request of theHouse for the appointment of a Conference Committee on theamendments adopted by the Senate to the following House File:
H. F. No. 219, A bill for an act relating to insurance; healthplans; requiring coverage for treatment of Lyme disease;requiring a study; amending Minnesota Statutes 1994, section62A.136; proposing coding for new law in Minnesota Statutes,chapter 62A.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9764The Senate has appointed as such committee:
Mr. Samuelson; Ms. Piper; Messrs. Vickerman, Stevens andOliver.
Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adoptedthe report of the Conference Committee on:
H. F. No. 2204, A bill for an act relating to civil actions;creating a nuisance action by individuals and neighborhoodorganizations; proposing coding for new law in MinnesotaStatutes, chapter 617.
The Senate has repassed said bill in accordance with therecommendation and report of the Conference Committee. SaidHouse File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the followingHouse File, herewith returned, as amended by the Senate, in whichamendment the concurrence of the House is respectfullyrequested:
H. F. No. 1648, A bill for an act relating to civil actions;providing for civil damages for bias offenses; proposing codingfor new law in Minnesota Statutes, chapter 611A; repealingMinnesota Statutes 1994, section 548.06.
Patrick E. Flahaven, Secretary of the Senate
Pugh moved that the House refuse to concur in the Senateamendments to H. F. No. 1648, that the Speaker appoint aConference Committee of 3 members of the House, and that theHouse requests that a like committee be appointed by the Senateto confer on the disagreeing votes of the two houses. The motionprevailed.
The following Conference Committee Report was received:
A bill for an act relating to local government; requiring asustainable development planning guide and a model ordinance tobe developed for local government use by the office of strategicand long-range planning; adopting principles of sustainabledevelopment; requiring reports; proposing coding for new law inMinnesota Statutes, chapter 4A.
April 1, 1996
The Honorable Irv Anderson
Speaker of the House of Representatives
The Honorable Allan H. Spear
President of the Senate
We, the undersigned conferees for H. F. No. 1800, report thatwe have agreed upon the items in dispute and recommend asfollows:
That the Senate recede from its amendments and that H. F. No.1800 be further amended as follows:
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9765Delete everything after the enacting clause and insert:
"Section 1. [4A.08] [SUSTAINABLE DEVELOPMENT FOR LOCALGOVERNMENT.]
Subdivision 1. [DEFINITIONS.] (a) "Local unit ofgovernment" means a county, statutory or home rule charter city,town, or watershed district.
(b) "Sustainable development" means development thatmaintains or enhances economic opportunity and communitywell-being while protecting and restoring the natural environmentupon which people and economies depend. Sustainable developmentmeets the needs of the present without compromising the abilityof future generations to meet their own needs.
Subd. 2. [PLANNING GUIDE.] The office of strategicand long-range planning must develop and publish a planning guidefor local units of government to plan for sustainabledevelopment, based on the principles of sustainable developmentadopted by the environmental quality board with advice of thegovernor's round table on sustainable development. The officemust make the planning guide available to local units ofgovernment within the state.
Subd. 3. [MODEL ORDINANCE.] The office of strategicand long-range planning, in consultation with appropriate andaffected parties, must prepare a model ordinance to guidesustainable development.
Subd. 4. [SPECIFICITY AND DISTRIBUTION.] The modelordinance must specify the technical and administrativeprocedures to guide sustainable development. When adopted by alocal unit of government, the model ordinance is the minimumregulation to guide sustainable development that may be adopted. Upon completion, the office of strategic and long-range planningmust notify local units of government that the model ordinance isavailable, and must distribute it to interested localunits.
Subd. 5. [PERIODIC REVIEW.] At least once every fiveyears, the planning office must review the model ordinance andits use with local units of government to ensure its continuedapplicability and relevance.
Sec. 2. [AGENCIES' REPORTS TO BOARD.]
Each state department, agency, and board shall report to theenvironmental quality board by October 15, 1996, how the missionand programs of the department, agency, or board reflect andimplement the state sustainable development principles, or howthe mission and programs could be changed to do so.
Sec. 3. [REPORT TO LEGISLATURE.]
The environmental quality board shall report to thelegislature by January 15, 1997, on the state agencies' review oftheir missions and programs in relation to the principles ofsustainable development.
Sec. 4. [EFFECTIVE DATE.]
This act is effective the day after final enactment."
Delete the title and insert:
"A bill for an act relating to local government; requiring asustainable development planning guide and a model ordinance tobe developed for local government use by the office of strategicand long-range planning; directing the environmental qualityboard to adopt principles of sustainable development; requiringreports; proposing coding for new law in Minnesota Statutes,chapter 4A."
We request adoption of this report and repassage of thebill.
House Conferees: Dee Long, Myron Orfield and Peg Larsen.
Senate Conferees: Janet B. Johnson, Steven Morse and Gary W.Laidig.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9766Long moved that the report of the Conference Committee on H. F.No. 1800 be adopted and that the bill be repassed as amended bythe Conference Committee. The motion prevailed.
H. F. No. 1800, A bill for an act relating to local government;requiring a sustainable development planning guide and a modelordinance to be developed for local government use by the officeof strategic and long-range planning; adopting principles ofsustainable development; requiring reports; proposing coding fornew law in Minnesota Statutes, chapter 4A.
The bill was read for the third time, as amended by Conference,and placed upon its repassage.
The question was taken on the repassage of the bill and theroll was called.
Carruthers moved that those not voting be excused from voting. The motion prevailed.
There were 86 yeas and 47 nays as follows:
Those who voted in the affirmative were:
Anderson, R. Garcia Kinkel Ness SchumacherBakk Girard Kraus Olson, E. SkoglundBertram Greenfield Larsen Opatz SolbergBrown Greiling Leighton Orenstein Swenson, D.Carlson, L. Gunther Leppik Orfield TomassoniCarlson, S. Hasskamp Lieder Osthoff TrimbleCarruthers Hausman Long Ostrom TunheimClark Huntley Lourey Otremba Van EngenCooper Jaros Luther Ozment WageniusDauner Jefferson Mahon Pelowski WejcmanDavids Jennings Mariani Perlt WenzelDawkins Johnson, A. Marko Peterson WinterDehler Johnson, R. McCollum Pugh WorkeDelmont Johnson, V. McElroy Rest Sp.Anderson,IDempsey Kahn McGuire Rhodes Dorn Kalis Milbert Rice Entenza Kelley Munger Rukavina Farrell Kelso Murphy SarnaThose who voted in the negative were:
Abrams Finseth Krinkie Pawlenty TumaAnderson, B. Frerichs Lindner Pellow Van DellenBettermann Goodno Lynch Rostberg VickermanBishop Haas Macklin Seagren WarkentinBoudreau Hackbarth Mares Smith WeaverBradley Harder Molnau Stanek WolfBroecker Holsten Mulder Sviggum Workman Commers Knight Olson, M. Swenson, H. Daggett Knoblach Onnen Sykora Erhardt Koppendrayer Paulsen TompkinsThe bill was repassed, as amended by Conference, and its title agreedto.
Carruthers moved that the House recess subject to the call ofthe Chair. The motion prevailed.
The House reconvened and was called to order by the Speaker.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9767On the motion of Ostrom and on the demand of 10 members, a callof the House was ordered. The following members answered totheir names:
Anderson, B. Erhardt Kelso Munger SkoglundAnderson, R. Farrell Kinkel Olson, E. SmithBakk Finseth Knight Olson, M. SolbergBertram Frerichs Knoblach Onnen SviggumBoudreau Garcia Kraus Opatz SykoraBroecker Greenfield Krinkie Orenstein TumaBrown Greiling Larsen Osskopp TunheimCarlson, S. Gunther Leighton Ostrom Van EngenCarruthers Haas Lieder Paulsen VickermanCommers Hackbarth Lindner Pawlenty WageniusCooper Harder Long Pellow WarkentinDaggett Hasskamp Macklin Pelowski WejcmanDauner Hausman Mahon Perlt WenzelDavids Holsten Mares Peterson WinterDehler Huntley Marko Pugh WolfDelmont Johnson, R. McElroy Rest WorkeDempsey Johnson, V. McGuire Rhodes WorkmanDorn Kahn Molnau Rostberg Sp.Anderson,IEntenza Kelley Mulder SarnaCarruthers moved that further proceedings of the roll call be suspended andthat the Sergeant at Arms be instructed to bring in theabsentees. The motion prevailed and it was so ordered.
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce that the Senate has concurred in and adoptedthe report of the Conference Committee on:
H. F. No. 1800, A bill for an act relating to local government;requiring a sustainable development planning guide and a modelordinance to be developed for local government use by the officeof strategic and long-range planning; adopting principles ofsustainable development; requiring reports; proposing coding fornew law in Minnesota Statutes, chapter 4A.
The Senate has repassed said bill in accordance with therecommendation and report of the Conference Committee. SaidHouse File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate accedes to the request of theHouse for the appointment of a Conference Committee on theamendments adopted by the Senate to the following House File:
H. F. No. 2318, A bill for an act relating to lawful gambling;regulating expenditures and reports; providing enforcementpowers; removing the restriction on compensation to persons whoparticipate in the conduct of lawful gambling; amending MinnesotaStatutes 1994, sections 349.151, subdivision 4; 349.166,subdivisions 2 and 3; 349.18, subdivision 1; and 349.19,subdivision 3; repealing Minnesota Statutes 1994, section349.168, subdivision 3.
The Senate has appointed as such committee:
Messrs. Berg, Janezich and Neuville.
Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9768Mr. Speaker:
I hereby announce the passage by the Senate of the followingSenate File, herewith transmitted:
S. F. No. 2886, A bill for an act relating to state finance;setting the amount of the budget reserve; reducing the propertytax recognition shift; providing for adjustments toappropriations following forecasts of general fund revenues andexpenditures; appropriating money; amending Minnesota Statutes1995 Supplement, sections 16A.152, subdivision 2; and 121.904,subdivision 4a; repealing 1996 House File No. 2156, article 14,section 4.
Patrick E. Flahaven, Secretary of the Senate
Pursuant to Article IV, Section 19, of the Constitution of thestate of Minnesota, Rest moved that the rule therein be suspendedand an urgency be declared so that S. F. No. 2886 be given itsfirst, second and third readings and be placed upon its finalpassage.
A roll call was requested and properly seconded.
The question was taken on the Rest motion and the roll wascalled. There were 130 yeas and 2 nays as follows:
Those who voted in the affirmative were:
Abrams Farrell Knoblach Olson, M. SviggumAnderson, B. Finseth Koppendrayer Onnen Swenson, D.Anderson, R. Frerichs Kraus Opatz Swenson, H.Bakk Garcia Larsen Orenstein SykoraBertram Girard Leighton Orfield TomassoniBettermann Goodno Leppik Osskopp TompkinsBishop Greenfield Lieder Ostrom TrimbleBoudreau Greiling Lindner Otremba TumaBradley Gunther Long Ozment TunheimBroecker Haas Lourey Paulsen Van DellenBrown Hackbarth Luther Pawlenty Van EngenCarlson, L. Harder Lynch Pellow VickermanCarlson, S. Hasskamp Macklin Pelowski WageniusCarruthers Hausman Mahon Perlt WarkentinClark Holsten Mares Peterson WeaverCommers Huntley Mariani Pugh WejcmanCooper Jaros Marko Rest WenzelDaggett Jefferson McCollum Rhodes WinterDauner Jennings McElroy Rostberg WolfDavids Johnson, A. McGuire Rukavina WorkeDawkins Johnson, R. Milbert Sarna WorkmanDehler Johnson, V. Molnau Schumacher Sp.Anderson,IDelmont Kahn Mulder Seagren Dempsey Kalis Munger Skoglund Dorn Kelley Murphy Smith Entenza Kelso Ness Solberg Erhardt Kinkel Olson, E. StanekThose who voted in the negative were:
Knight KrinkieThe motion prevailed.
Rest moved that the Rules of the House be so far suspended thatS. F. No. 2886 be given its first, second and third readings andbe placed upon its final passage. The motion prevailed.
S. F. No. 2886 was read for the first time.
S. F. No. 2886 was read for the second time.
S. F. No. 2886 was read for the third time.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9769Rest moved to lay S. F. No. 2886 on the table. The motionprevailed and S. F. No. 2886 was laid on the table.
Pursuant to rule 1.10, Solberg requested immediateconsideration of H. F. No. 2102.
H. F. No. 2102 was reported to the House.
Rest moved to amend H. F. No. 2102, the first engrossment, asfollows:
Delete everything after the enacting clause and insert:
Section 1. Minnesota Statutes 1994, section 10A.31,subdivision 3a, is amended to read:
Subd. 3a. [QUALIFICATION OF POLITICAL PARTIES.] A majorpolitical party as defined in section 10A.01, subdivision 12,qualifies for inclusion on the income tax form and property taxrefund return as provided in subdivision 3, provided that itqualifies as a major political party by July 1 of the taxableyear.
A minor political party as defined in section 10A.01,subdivision 13 qualifies for inclusion on the income tax form andproperty tax refund return as provided in subdivision 3, providedthat
(1) (a) if a petition is filed, it is filed by June 1 of thetaxable year; or
(b) if the party ran a candidate for statewide office, thatoffice must have been the office of governor and lieutenantgovernor, secretary of state, state auditor, state treasurer, orattorney general; and
(2) the secretary of state certifies to the commissioner ofrevenue by July 1, 1984, and by July 1 of every odd-numbered yearthereafter the parties which qualify as minor political partiesunder this subdivision.
A minor party shall be certified only if the secretary of statedetermines that the party satisfies the following conditions:
(a) the party meets the requirements of section 10A.01,subdivision 13, and in the last applicable election ran acandidate for the statewide offices listed in clause (1)(b) ofthis subdivision;
(b) it is a political party, not a principal campaigncommittee;
(c) it has held a state convention in the last two years,adopted a state constitution, and elected state officers; and
(d) an officer of the party has filed with the secretary ofstate a certification that the party held a state convention inthe last two years, adopted a state constitution, and electedstate officers.
Sec. 2. Minnesota Statutes 1994, section 165.08, subdivision5, is amended to read:
Subd. 5. [EXEMPTIONS.] Notwithstanding any other provision oflaw to the contrary, the properties, moneys, and other assets ofany joint and independent international authority or commissioncreated under subdivision 1, all revenues or other income of anysuch authority or commission, and all bonds, certificates ofindebtedness, or other obligations issued by any such authorityor commission, and the interest thereon, shall be exempt fromall taxation, licenses, fees, or charges of any kind imposed bythe state or by any county, municipality, political subdivision,taxing district, or other public agency or body of the state.
Sec. 3. Minnesota Statutes 1994, section 290.01, subdivision4a, is amended to read:
Subd. 4a. [FINANCIAL INSTITUTION.] (a) "Financial institution"means:
(1) a holding company;
(2) any regulated financial corporation; or
(3) any other corporation organized under the laws of theUnited States or organized under the laws of this state or anyother state or country that is carrying on the business of afinancial institution.
(b) "Holding company" means any corporation registered underthe Federal Bank Holding Company Act of 1956, as amended, orregistered as a savings and loan holding company under theFederal National Housing Act, as amended.
(c) "Regulated financial corporation" means an institution, thedeposits or accounts of which are insured under the FederalDeposit Insurance Act or by the Federal Savings and LoanInsurance Corporation, any institution which is a member of aFederal Home Loan Bank, any other bank or thrift institutionincorporated or organized under the laws of any state or anyforeign country which is engaged in the business of receivingdeposits, any corporation organized under the provisions ofUnited States Code, title 12, sections 611 to 631 (Edge ActCorporations), and any agency of a foreign depository as definedin United States Code, title 12, section 3101.
(d) "Business of a financial institution" means:
(1) the business that a regulated financial corporation maybe authorized to do under state or federal law or the businessthat its subsidiary is authorized to do by the proper regulatoryauthorities;
(2) the business that any corporation organized underthe authority of the United States or organized under the laws ofthis state or any other state or country does or has authority todo which is substantially similar to the business which acorporation may be created to do under chapters 46 to 55 or anybusiness which a corporation or its subsidiary isauthorized to do by those laws; or
(3) (2) the business that any corporationorganized under the authority of the United States or organizedunder the laws of this state or any other state or country doesor has authority to do if the corporation derives more than 50percent of its gross income from lending activities (includingdiscounting obligations) in substantial competition with thebusinesses described in clauses clause (1) and(2). For purposes of this clause, the computation of thegross income of a corporation does not include income fromnonrecurring, extraordinary items.
Sec. 4. Minnesota Statutes 1994, section 290.06, subdivision2c, is amended to read:
Subd. 2c. [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, ANDTRUSTS.] (a) The income taxes imposed by this chapter uponmarried individuals filing joint returns and surviving spouses asdefined in section 2(a) of the Internal Revenue Code must becomputed by applying to their taxable net income the followingschedule of rates:
(1) On the first $19,910, 6 percent;
(2) On all over $19,910, but not over $79,120, 8 percent;
(3) On all over $79,120, 8.5 percent.
Married individuals filing separate returns, estates, andtrusts must compute their income tax by applying the above ratesto their taxable income, except that the income brackets will beone-half of the above amounts.
(b) The income taxes imposed by this chapter upon unmarriedindividuals must be computed by applying to taxable net incomethe following schedule of rates:
(1) On the first $13,620, 6 percent;
(2) On all over $13,620, but not over $44,750, 8 percent;
(3) On all over $44,750, 8.5 percent.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9771(c) The income taxes imposed by this chapter upon unmarriedindividuals qualifying as a head of household as defined insection 2(b) of the Internal Revenue Code must be computed byapplying to taxable net income the following schedule ofrates:
(1) On the first $16,770, 6 percent;
(2) On all over $16,770, but not over $67,390, 8 percent;
(3) On all over $67,390, 8.5 percent.
(d) In lieu of a tax computed according to the rates set forthin this subdivision, the tax of any individual taxpayer whosetaxable net income for the taxable year is less than an amountdetermined by the commissioner must be computed in accordancewith tables prepared and issued by the commissioner of revenuebased on income brackets of not more than $100. The amount oftax for each bracket shall be computed at the rates set forth inthis subdivision, provided that the commissioner may disregard afractional part of a dollar unless it amounts to 50 cents ormore, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for theentire year must compute the individual's Minnesota income tax asprovided in this subdivision. After the application of thenonrefundable credits provided in this chapter, the tax liabilitymust then be multiplied by a fraction in which:
(1) The numerator is the individual's Minnesota source federaladjusted gross income as defined in section 62 of the InternalRevenue Code increased by the addition required for interestincome from non-Minnesota state and municipal bonds under section290.01, subdivision 19a, clause (1), after applying theallocation and assignability provisions of section 290.081,clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted grossincome as defined in section 62 of the Internal Revenue Code of1986, as amended through April 15, 1995, increased by theaddition required for interest income from non-Minnesota stateand municipal bonds under section 290.01, subdivision 19a, clause(1).
Sec. 5. Minnesota Statutes 1994, section 290.06, subdivision22, is amended to read:
Subd. 22. [CREDIT FOR TAXES PAID TO ANOTHER STATE.] (a) Ataxpayer who is liable for taxes on or measured by net income toanother state or province or territory of Canada, as provided inparagraphs (b) through (f), upon income allocated or apportionedto Minnesota, is entitled to a credit for the tax paid to anotherstate or province or territory of Canada if the tax is actuallypaid in the taxable year or a subsequent taxable year. A taxpayerwho is a resident of this state pursuant to section 290.01,subdivision 7, clause (2), and who is subject to income tax as aresident in the state of the individual's domicile is not allowedthis credit unless the state of domicile does not allow a similarcredit.
(b) For an individual, estate, or trust, the credit isdetermined by multiplying the tax payable under this chapter bythe ratio derived by dividing the income subject to tax in theother state or province or territory of Canada that is alsosubject to tax in Minnesota while a resident of Minnesota by thetaxpayer's federal adjusted gross income, as defined in section62 of the Internal Revenue Code, modified by the additionrequired by section 290.01, subdivision 19a, clause (1), and thesubtraction allowed by section 290.01, subdivision 19b, clause(1), to the extent the income is allocated or assigned toMinnesota under sections 290.081 and 290.17.
(c) If the taxpayer is an athletic team that apportions all ofits income under section 290.17, subdivision 5, paragraph (c),the credit is determined by multiplying the tax payable underthis chapter by the ratio derived from dividing the total netincome subject to tax in the other state or province or territoryof Canada by the taxpayer's Minnesota taxable income.
(d) The credit determined under paragraph (b) or (c) shall notexceed the amount of tax so paid to the other state or provinceor territory of Canada on the gross income earned within theother state or province or territory of Canada subject to taxunder this chapter, nor shall the allowance of the credit reducethe taxes paid under this chapter to an amount less than whatwould be assessed if such income amount was excluded from taxablenet income.
(e) In the case of the tax assessed on a lump sum distributionunder section 290.032, the credit allowed under paragraph (a) isthe tax assessed by the other state or province or territory ofCanada on the lump sum distribution that is also subject to taxunder section 290.032, and shall not exceed the tax assessedunder section 290.032. To the
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9772extent the total lump sum distribution defined in section290.032, subdivision 1, includes lump sum distributions receivedin prior years or is all or in part an annuity contract, thereduction to the tax on the lump sum distribution allowed undersection 290.032, subdivision 2, includes tax paid to anotherstate that is properly apportioned to that distribution.
(f) If a Minnesota resident reported an item of income toMinnesota and is assessed tax in such other state or province orterritory of Canada on that same income after the Minnesotastatute of limitations has expired, the taxpayer shall receive acredit for that year under paragraph (a), notwithstanding anystatute of limitations to the contrary. The claim for the creditmust be submitted within one year from the date the taxes werepaid to the other state or province or territory of Canada. Thetaxpayer must submit sufficient proof to show entitlement to acredit.
(g) For the purposes of this subdivision, a residentshareholder of a corporation having a valid election in effectunder section 1362 of the Internal Revenue Code must beconsidered to have paid a tax imposed on the shareholder in anamount equal to the shareholder's pro rata share of any netincome tax paid by the S corporation to a anotherstate that does not measure the income of the shareholder ofthe S corporation by reference to the income of the Scorporation. For the purposes of the preceding sentence, theterm "net income tax" means any tax imposed on or measured by acorporation's net income.
(h) For the purposes of this subdivision, a resident member ofa limited liability company taxed as a partnership under theInternal Revenue Code must be considered to have paid a taximposed on the member in an amount equal to the member's pro ratashare of any net income tax paid by the limited liability companyto a state that does not measure the income of the member of thelimited liability company by reference to the income of thelimited liability company. For purposes of the precedingsentence, the term "net income" tax means any tax imposed on ormeasured by a limited liability company's net income.
Sec. 6. Minnesota Statutes 1994, section 290.091, subdivision2, is amended to read:
Subd. 2. [DEFINITIONS.] For purposes of the tax imposed bythis section, the following terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of thefollowing for the taxable year:
(1) the taxpayer's federal alternative minimum taxable incomeas defined in section 55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computingfederal alternative minimum taxable income, but excluding theMinnesota charitable contribution deduction and the medicalexpense deduction;
(3) for depletion allowances computed under section 613A(c) ofthe Internal Revenue Code, with respect to each property (asdefined in section 614 of the Internal Revenue Code), to theextent not included in federal alternative minimum taxableincome, the excess of the deduction for depletion allowable undersection 611 of the Internal Revenue Code for the taxable yearover the adjusted basis of the property at the end of the taxableyear (determined without regard to the depletion deduction forthe taxable year);
(4) to the extent not included in federal alternative minimumtaxable income, the amount of the tax preference for intangibledrilling cost under section 57(a)(2) of the Internal Revenue Codedetermined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimumtaxable income, the amount of interest income as provided bysection 290.01, subdivision 19a, clause (1);
less the sum of the amounts determined under the followingclauses (1) to (3):
(1) interest income as defined in section 290.01, subdivision19b, clause (1);
(2) an overpayment of state income tax as provided by section290.01, subdivision 19b, clause (2), to the extent included infederal alternative minimum taxable income; and
(3) the amount of investment interest paid or accrued withinthe taxable year on indebtedness to the extent that the amountdoes not exceed net investment income, as defined in section163(d)(4) of the Internal Revenue Code. Interest does notinclude amounts deducted in computing federal adjusted grossincome.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9773In the case of an estate or trust, alternative minimum taxableincome must be computed as provided in section 59(c) of theInternal Revenue Code.
(b) "Investment interest" means investment interest as definedin section 163(d)(3) of the Internal Revenue Code.
(c) "Tentative minimum tax" equals seven percent of alternativeminimum taxable income after subtracting the exemption amountdetermined under subdivision 3.
(d) "Regular tax" means the tax that would be imposed underthis chapter (without regard to this section and section290.032), reduced by the sum of the nonrefundable credits allowedunder this chapter.
(e) "Net minimum tax" means the minimum tax imposed by thissection.
(f) "Minnesota charitable contribution deduction" means acharitable contribution deduction under section 170 of theInternal Revenue Code to or for the use of an entity described insection 290.21, subdivision 3, clauses (a) to (e). When thefederal deduction for charitable contributions is limited undersection 170(b) of the Internal Revenue Code, the allowablecontributions in the year of contribution are deemed to be firstcontributions to entities described in section 290.21,subdivision 3, clauses (a) to (e).
Sec. 7. Minnesota Statutes 1994, section 290.0922, subdivision1, is amended to read:
Subdivision 1. [IMPOSITION.] (a) In addition to the taximposed by this chapter without regard to this section, thefranchise tax imposed on a corporation required to file undersection 289A.08, subdivision 3, other than a corporation having avalid election in effect under section 1362 of the InternalRevenue Code for the taxable year includes a tax equal to thefollowing amounts:
If the sum of the corporation's
Minnesota property, payrolls, and sales
or receipts is:the tax equals:
less than $500,000 $0
$ 500,000to$ 999,999$100
$ 1,000,000to$ 4,999,999$300
$ 5,000,000to$ 9,999,999$1,000
$10,000,000to$19,999,999$2,000
$20,000,000or more $5,000
(b) A tax is imposed annually beginning in 1990 foreach taxable year on a corporation required to file a returnunder section 289A.12, subdivision 3, that has a valid electionin effect for the taxable year under section 1362 of the InternalRevenue Code and on a partnership required to file a return undersection 289A.12, subdivision 3, other than a partnership thatderives over 80 percent of its income from farming. The taximposed under this paragraph is due on or before the due date ofthe return for the taxpayer due under section 289A.18,subdivision 1. The commissioner shall prescribe the return to beused for payment of this tax. The tax under this paragraph isequal to the following amounts:
If the sum of the S corporation's or partnership's
Minnesota property, payrolls, and sales
or receipts is:the tax equals:
less than $500,000 $0
$ 500,000to$ 999,999 $100
$ 1,000,000to$ 4,999,999 $300
$ 5,000,000to$ 9,999,999$1,000
$10,000,000to$19,999,999$2,000
$20,000,000or more $5,000
Sec. 8. Minnesota Statutes 1994, section 290.17, subdivision2, is amended to read:
Subd. 2. [INCOME NOT DERIVED FROM CONDUCT OF A TRADE ORBUSINESS.] The income of a taxpayer subject to the allocationrules that is not derived from the conduct of a trade or businessmust be assigned in accordance with paragraphs (a) to (f):
(a)(1) Subject to paragraphs (a)(2) and (a)(3), income fromlabor or personal or professional services is assigned to thisstate if, and to the extent that, the labor or services areperformed within it; all other income from such sources istreated as income from sources without this state.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9774Severance pay shall be considered income from labor or personalor professional services.
(2) In the case of an individual who is a nonresident ofMinnesota and who is an athlete or entertainer, income fromcompensation for labor or personal services performed within thisstate shall be determined in the following manner:
(i) The amount of income to be assigned to Minnesota for anindividual who is a nonresident salaried athletic team employeeshall be determined by using a fraction in which the denominatorcontains the total number of days in which the individual isunder a duty to perform for the employer, and the numerator isthe total number of those days spent in Minnesota; and
(ii) The amount of income to be assigned to Minnesota for anindividual who is a nonresident, and who is an athlete orentertainer not listed in clause (i), for that person's athleticor entertainment performance in Minnesota shall be determined byassigning to this state all income from performances or athleticcontests in this state.
(3) For purposes of this section, amounts received by anonresident from the United States, its agencies orinstrumentalities, the Federal Reserve Bank, the state ofMinnesota or any of its political or governmental subdivisions,or a Minnesota volunteer firefighters' relief association, by wayof payment as a pension, public employee retirement benefit, orany combination of these, or as a retirement or survivor'sbenefit made from a plan qualifying under section 401, 403, 408,or 409, or as defined in section 403(b) or 457 of the InternalRevenue Code, are not considered income derived from carrying ona trade or business or from performing personal or professionalservices in Minnesota, and are not taxable under this chapter.
(b) Income or gains from tangible property located in thisstate that is not employed in the business of the recipient ofthe income or gains must be assigned to this state.
(c) Income or gains from intangible personal property notemployed in the business of the recipient of the income or gainsmust be assigned to this state if the recipient of the income orgains is a resident of this state or is a resident trust orestate.
Gain on the sale of a partnership interest is allocable to thisstate in the ratio of the original cost of partnership tangibleproperty in this state to the original cost of partnershiptangible property everywhere, determined at the time of the sale. If more than 50 percent of the value of the partnership's assetsconsists of intangibles, gain or loss from the sale of thepartnership interest is allocated to this state in accordancewith the sales factor of the partnership for its first full taxperiod immediately preceding the tax period of the partnershipduring which the partnership interest was sold.
Gain on the sale of goodwill or income from a covenant not tocompete that is connected with a business operating all orpartially in Minnesota is allocated to this state to the extentthat the income from the business in the year preceding the yearof sale was assignable to Minnesota under subdivision 3.
When an employer pays an employee for a covenant not tocompete, the income allocated to this state is in the ratio ofthe employee's service in Minnesota in the calendar yearpreceding leaving the employment of the employer over the totalservices performed by the employee for the employer in thatyear.
(d) Income from the operation of a farm shall be assigned tothis state if the farm is located within this state and to otherstates only if the farm is not located in this state.
(e) Income from winnings on Minnesota pari-mutuel bettingtickets, the Minnesota state lottery, and lawful gambling asdefined in section 349.12, subdivision 24, conducted within theboundaries of the state of Minnesota shall be assigned to thisstate.
(f) All items of gross income not covered in paragraphs (a) to(e) and not part of the taxpayer's income from a trade orbusiness shall be assigned to the taxpayer's domicile.
Sec. 9. Minnesota Statutes 1995 Supplement, section 290.191,subdivision 5, is amended to read:
Subd. 5. [DETERMINATION OF SALES FACTOR.] For purposes of thissection, the following rules apply in determining the salesfactor.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9775(a) The sales factor includes all sales, gross earnings, orreceipts received in the ordinary course of the business, exceptthat the following types of income are not included in the salesfactor:
(1) interest;
(2) dividends;
(3) sales of capital assets as defined in section 1221 of theInternal Revenue Code;
(4) sales of property used in the trade or business, exceptsales of leased property of a type which is regularly sold aswell as leased;
(5) sales of debt instruments as defined in section 1275(a)(1)of the Internal Revenue Code or sales of stock; and
(6) royalties, fees, or other like income of a type whichqualify for a subtraction from federal taxable income undersection 290.01, subdivision 19(d)(11).
(b) Sales of tangible personal property are made within thisstate if the property is received by a purchaser at a pointwithin this state, and the taxpayer is taxable in this state,regardless of the f.o.b. point, other conditions of the sale, orthe ultimate destination of the property.
(c) Tangible personal property delivered to a common orcontract carrier or foreign vessel for delivery to a purchaser inanother state or nation is a sale in that state or nation,regardless of f.o.b. point or other conditions of the sale.
(d) Notwithstanding paragraphs (b) and (c), when intoxicatingliquor, wine, fermented malt beverages, cigarettes, or tobaccoproducts are sold to a purchaser who is licensed by a state orpolitical subdivision to resell this property only within thestate of ultimate destination, the sale is made in that state.
(e) Sales made by or through a corporation that is qualified asa domestic international sales corporation under section 992 ofthe Internal Revenue Code are not considered to have been madewithin this state.
(f) Sales, rents, royalties, and other income in connectionwith real property is attributed to the state in which theproperty is located.
(g) Receipts from the lease or rental of tangible personalproperty, including finance leases and true leases, must beattributed to this state if the property is located in this stateand to other states if the property is not located in this state. Receipts from the lease or rental of moving propertyincluding, but not limited to, motor vehicles, rolling stock,aircraft, vessels, or mobile equipment is located in thisstate if are included in the numerator of the receiptsfactor to the extent that the property is used in this state. The extent of the use of moving property is determined asfollows:
(1) the operation of the property is entirely within thisstate; or A motor vehicle is used wholly in the state inwhich it is registered.
(2) the operation of the property is in two or more statesand the principal base of operations from which the property issent out is in this state. The extent that rolling stockis used in this state is determined by multiplying the receiptsfrom the lease or rental of the rolling stock by a fraction, thenumerator of which is the miles traveled within this state by theleased or rented rolling stock and the denominator of which isthe total miles traveled by the leased or rented rollingstock.
(3) The extent that an aircraft is used in this state isdetermined by multiplying the receipts from the lease or rentalof the aircraft by a fraction, the numerator of which is thenumber of landings of the aircraft in this state and thedenominator of which is the total number of landings of theaircraft.
(4) The extent that a vessel, mobile equipment, or othermobile property is used in the state is determined by multiplyingthe receipts from the lease or rental of the property by afraction, the numerator of which is the number of days during thetaxable year the property was in this state and the denominatorof which is the total days in the taxable year.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9776(h) Royalties and other income not described in paragraph (a),clause (6), received for the use of or for the privilege of usingintangible property, including patents, know-how, formulas,designs, processes, patterns, copyrights, trade names, servicenames, franchises, licenses, contracts, customer lists, orsimilar items, must be attributed to the state in which theproperty is used by the purchaser. If the property is used inmore than one state, the royalties or other income must beapportioned to this state pro rata according to the portion ofuse in this state. If the portion of use in this state cannot bedetermined, the royalties or other income must be excluded fromboth the numerator and the denominator. Intangible property isused in this state if the purchaser uses the intangible propertyor the rights therein in the regular course of its businessoperations in this state, regardless of the location of thepurchaser's customers.
(i) Sales of intangible property are made within the state inwhich the property is used by the purchaser. If the property isused in more than one state, the sales must be apportioned tothis state pro rata according to the portion of use in thisstate. If the portion of use in this state cannot be determined,the sale must be excluded from both the numerator and thedenominator of the sales factor. Intangible property is used inthis state if the purchaser used the intangible property in theregular course of its business operations in this state.
(j) Receipts from the performance of services must beattributed to the state where the services are received. For thepurposes of this section, receipts from the performance ofservices provided to a corporation, partnership, or trust mayonly be attributed to a state where it has a fixed place of doingbusiness. If the state where the services are received is notreadily determinable or is a state where the corporation,partnership, or trust receiving the service does not have a fixedplace of doing business, the services shall be deemed to bereceived at the location of the office of the customer from whichthe services were ordered in the regular course of the customer'strade or business. If the ordering office cannot be determined,the services shall be deemed to be received at the office of thecustomer to which the services are billed.
Sec. 10. Minnesota Statutes 1995 Supplement, section 290.191,subdivision 6, is amended to read:
Subd. 6. [DETERMINATION OF RECEIPTS FACTOR FOR FINANCIALINSTITUTIONS.] (a) For purposes of this section, the rules inthis subdivision and subdivision 8 apply in determining thereceipts factor for financial institutions.
(b) "Receipts" for this purpose means gross income, includingnet taxable gain on disposition of assets, including securitiesand money market instruments, when derived from transactions andactivities in the regular course of the taxpayer's trade orbusiness.
(c) "Money market instruments" means federal funds sold andsecurities purchased under agreements to resell, commercialpaper, banker's acceptances, and purchased certificates ofdeposit and similar instruments to the extent that theinstruments are reflected as assets under generally acceptedaccounting principles.
(d) "Securities" means United States Treasury securities,obligations of United States government agencies andcorporations, obligations of state and political subdivisions,corporate stock, bonds, and other securities, participations insecurities backed by mortgages held by United States or stategovernment agencies, loan-backed securities and similarinvestments to the extent the investments are reflected as assetsunder generally accepted accounting principles.
(e) Receipts from the lease or rental of real or tangiblepersonal property, including both finance leases and true leases,must be attributed to this state if the property is located inthis state. Receipts from the lease or rental of tangiblepersonal property that is characteristically moving property,such as including, but not limited to, motorvehicles, rolling stock, aircraft, vessels, or mobileequipment, and the like, is considered to be located in astate if are included in the numerator of the receiptsfactor to the extent that the property is used in this state. The extent of the use of moving property is determined asfollows:
(1) the operation of the property is entirely within thestate; or A motor vehicle is used wholly in the state inwhich it is registered.
(2) the operation of the property is in two or more states,but the principal base of operations from which the property issent out is in the state. The extent that rolling stockis used in this state is determined by multiplying the receiptsfrom the lease or rental of the rolling stock by a fraction, thenumerator of which is the miles traveled within this state by theleased or rented rolling stock and the denominator of which isthe total miles traveled by the leased or rented rollingstock.
(3) The extent that an aircraft is used in this state isdetermined by multiplying the receipts from the lease or rentalof the aircraft by a fraction, the numerator of which is thenumber of landings of the aircraft in this state and thedenominator of which is the total number of landings of theaircraft.
(4) The extent that a vessel, mobile equipment, or othermobile property is used in the state is determined by multiplyingthe receipts from the lease or rental of property by a fraction,the numerator of which is the number of days during the taxableyear the property was in this state and the denominator of whichis the total days in the taxable year.
(f) Interest income and other receipts from assets in thenature of loans that are secured primarily by real estate ortangible personal property must be attributed to this state ifthe security property is located in this state under theprinciples stated in paragraph (e).
(g) Interest income and other receipts from consumer loans notsecured by real or tangible personal property that are made toresidents of this state, whether at a place of business, bytraveling loan officer, by mail, by telephone or other electronicmeans, must be attributed to this state.
(h) Interest income and other receipts from commercial loansand installment obligations that are unsecured by real ortangible personal property or secured by intangible property mustbe attributed to this state if the proceeds of the loan are to beapplied in this state. If it cannot be determined where thefunds are to be applied, the income and receipts are attributedto the state in which the office of the borrower from which theapplication would be made in the regular course of business islocated. If this cannot be determined, the transaction isdisregarded in the apportionment formula.
(i) Interest income and other receipts from a participatingfinancial institution's portion of participation and syndicationloans must be attributed under paragraphs (e) to (h). Aparticipation loan is an arrangement in which a lender makes aloan to a borrower and then sells, assigns, or otherwisetransfers all or a part of the loan to a purchasing financialinstitution. A syndication loan is a loan transaction involvingmultiple financial institutions in which all the lenders arenamed as parties to the loan documentation, are known to theborrower, and have privity of contract with the borrower.
(j) Interest income and other receipts including servicecharges from financial institution credit card and travel andentertainment credit card receivables and credit card holders'fees must be attributed to the state to which the card chargesand fees are regularly billed.
(k) Merchant discount income derived from financial institutioncredit card holder transactions with a merchant must beattributed to the state in which the merchant is located. In thecase of merchants located within and outside the state, onlyreceipts from merchant discounts attributable to sales made fromlocations within the state are attributed to this state. It ispresumed, subject to rebuttal, that the location of a merchant isthe address shown on the invoice submitted by the merchant to thetaxpayer.
(l) Receipts from the performance of fiduciary and otherservices must be attributed to the state in which the servicesare received. For the purposes of this section, servicesprovided to a corporation, partnership, or trust must beattributed to a state where it has a fixed place of doingbusiness. If the state where the services are received is notreadily determinable or is a state where the corporation,partnership, or trust does not have a fixed place of doingbusiness, the services shall be deemed to be received at thelocation of the office of the customer from which the serviceswere ordered in the regular course of the customer's trade orbusiness. If the ordering office cannot be determined, theservices shall be deemed to be received at the office of thecustomer to which the services are billed.
(m) Receipts from the issuance of travelers checks and moneyorders must be attributed to the state in which the checks andmoney orders are purchased.
(n) Receipts from investments of a financial institution insecurities and from money market instruments must be apportionedto this state based on the ratio that total deposits from thisstate, its residents, including any business with an office orother place of business in this state, its politicalsubdivisions, agencies, and instrumentalities bear to the totaldeposits from all states, their residents, their politicalsubdivisions, agencies, and instrumentalities. In the case of anunregulated financial institution subject to this section, thesereceipts are apportioned to this state based on the ratio thatits gross business income, excluding such receipts, earned fromsources within this state bears to gross business income,excluding such receipts, earned from sources within all states.For purposes of this subdivision, deposits made by this state,its residents, its political subdivisions, agencies, andinstrumentalities must be attributed to this state, whether ornot the deposits are accepted or maintained by the taxpayer atlocations within this state.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9778(o) A financial institution's interest in property described insection 290.015, subdivision 3, paragraph (b), is included in thereceipts factor in the same manner as assets in the nature ofsecurities or money market instruments are included in paragraph(n).
Sec. 11. Minnesota Statutes 1994, section 383B.51, is amendedto read:
383B.51 [NO ASSIGNMENT OR GARNISHMENT.]
The right of a participant who has shares to the credit of theparticipant's share account record to redeem all or any portionof the shares is a personal right only and shall be in the stateof Minnesota or the state board of investment or the nominee ofeither, subject to the rights of the county of Hennepin. Anyassignment or attempted assignment of shares to the credit of aparticipant's share account record by any person is null andvoid. The shares are exempt from garnishment or levy underattachment or execution or other legal process, except asprovided in section 518.58, 518.581, or 518.611. The shares arealso exempt from all taxation, except individual incometaxation, by the state of Minnesota.
Sec. 12. Minnesota Statutes 1994, section 458A.32, subdivision4, is amended to read:
Subd. 4. Revenue bonds of the authority shall be deemed andtreated as instrumentalities of a public government agency;and as such, together with interest thereon, exempt fromtaxation.
Sec. 13. [EFFECTIVE DATE.]
Sections 1, 4, 6, and 8 are effective for tax yearsbeginning after December 31, 1995.
Sections 2 and 12 are effective for income earned after July1, 1983, in taxable years beginning afterDecember 31, 1982.
Sections 9 and 10 are effective for taxable years beginningafter December 31, 1997.
Section 11 is a clarification of the law and is effectivethe day following final enactment.
Section 1. Minnesota Statutes 1995 Supplement, section115B.48, is amended by adding a subdivision to read:
Subd. 7. [FACILITY.] "Facility" means one or morebuildings or parts of a building and the equipment,installations, and structures contained in the building, locatedon a single site or on contiguous or adjacent sites. Facilityincludes any site or area where a hazardous substance, or apollutant or contaminant, has been deposited, stored, disposedof, or placed, or otherwise comes to be located.
Sec. 2. Minnesota Statutes 1995 Supplement, section 115B.48,is amended by adding a subdivision to read:
Subd. 8. [FULL-TIME EQUIVALENCE.] "Full-timeequivalence" means 2,000 hours worked by employees, owners, andothers, at duties related to the drycleaning operation in adrycleaning facility during a 12-month period beginning July 1 ofthe preceding year and running through June 30 of the year inwhich the annual registration fee is due. For those drycleaningfacilities that were in business less than the 12-month period,full-time equivalence means the total of all of the hours workedat duties related to the drycleaning operation in the drycleaningfacility, divided by 2,000 and multiplied by a fraction, thenumerator of which is 50 and the denominator of which is thenumber of weeks in business during the reporting period.
Sec. 3. Minnesota Statutes 1995 Supplement, section 115B.49,subdivision 2, is amended to read:
Subd. 2. [REVENUE SOURCES.] Revenue from the following sourcesmust be deposited in the state treasury and credited to theaccount:
(1) the proceeds of the fees imposed by subdivision 4;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9779(2) interest attributable to investment of money in theaccount;
(3) penalties and interest collected under subdivision4, paragraphs (e) and (f) paragraph (d); and
(4) money received by the commissioner for deposit in theaccount in the form of gifts, grants, and appropriations.
Sec. 4. Minnesota Statutes 1995 Supplement, section 115B.49,subdivision 4, is amended to read:
Subd. 4. [REGISTRATION; FEES.] (a) The owner or operator of adrycleaning facility shall register on or before July 1 of eachyear with the commissioner of revenue in a manner prescribed bythe commissioner of revenue and pay a registration fee for thefacility. The amount of the fee is:
(1) $500, for facilities with up to four full-timeequivalent employees a full-time equivalence of fewer thanfive;
(2) $1,000, for facilities with a full-time equivalenceof five to ten full-time equivalent employees; and
(3) $1,500, for facilities with a full-time equivalenceof more than ten full-time equivalent employees.
(b) A person who sells drycleaning solvents for use bydrycleaning facilities in the state shall collect and remit tothe commissioner of revenue in a manner prescribed by thecommissioner of revenue, on or before the 20th day of the monthfollowing the month in which the sales of drycleaning solventsare made, a fee of:
(1) $3.50 for each gallon of perchloroethylene sold for use bydrycleaning facilities in the state; and
(2) 70 cents for each gallon of hydrocarbon-based drycleaningsolvent sold for use by drycleaning facilities in the state.
(c) The commissioner of revenue shall provide each personwho pays a registration fee under paragraph (a) with a receipt.The receipt or a copy of the receipt must be produced forinspection at the request of any authorized representative of thecommissioner of revenue.
(d) The commissioner shall, after a public hearing butnotwithstanding section 16A.1285, subdivision 4, annually adjustthe fees in this subdivision as necessary to maintain anunencumbered balance in the account of at least $1,000,000. Anyadjustment under this paragraph must be prorated among all thefees in this subdivision. Fees adjusted under this paragraph maynot exceed 200 percent of the fees in this subdivision. Thecommissioner shall notify the commissioner of revenue of anadjustment under this paragraph no later than March 1 of the yearin which the adjustment is to become effective. The adjustmentis effective for sales of drycleaning solvents made, and annualregistration fees due, beginning on July 1 of the same year.
(e) An owner of a drycleaning facility who fails to pay afee under paragraph (a) when due is subject to a penalty of $50per facility for each day the fee is not paid.
(f) (d) To enforce this subdivision, thecommissioner of revenue may examine documents, assess and collectfees, conduct investigations, issue subpoenas, grantextensions to file returns and pay fees, impose sales anduse tax penalties and interest on the annualregistration fee under paragraph (a) and the monthly feeunder paragraph (b), abate penalties and interest, andadminister appeals, in the manner provided in chapters 270 and289A. The penalties and interest imposed on taxes underchapter 297A apply to the fees imposed under thissubdivision. Disclosure of data collected by thecommissioner of revenue under this subdivision is governedby chapter 270B.
Sec. 5. [115B.491] [DRYCLEANING FACILITY USE FEE; FACILITIESTO FILE RETURN.]
Subdivision 1. [USE FEE.] A drycleaning facilitythat purchases drycleaning solvents for use in Minnesota withoutpaying the seller of drycleaning solvents the fee under section115B.49, subdivision 4, paragraph (b), is subject to anequivalent fee. Liability for the fee is incurred whendrycleaning solvents are received in Minnesota by the drycleaningfacility.
Subd. 2. [RETURN REQUIRED.] On or before the 20th ofeach calendar month, every drycleaning facility that haspurchased drycleaning solvents for use in this state during thepreceding calendar month, upon which the fee imposed by section115B.49, subdivision 4, paragraph (b), has not been paid to theseller of the drycleaning solvents, shall file a return with thecommissioner of revenue showing the quantity of solventspurchased and a computation of the fee
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9780under section 115B.49, subdivision 4, paragraph (d). The feemust accompany the return. The return must be made upon a formfurnished and prescribed by the commissioner of revenue and mustcontain such other information as the commissioner of revenue mayrequire.
Subd. 3. [APPLICABILITY.] All of the provisions ofsection 115B.49, subdivision 4, paragraph (d), apply tothis section.
Sec. 6. [115B.492] [ALLOCATION OF PAYMENT.]
In the discretion of the commissioner of revenue, paymentsreceived for fees may be credited first to the oldest liabilitynot secured by a judgment or lien. For liabilities to whichpayments are applied, the commissioner of revenue may creditpayments first to penalties, next to interest, and then to thefee due.
Sec. 7. Minnesota Statutes 1995 Supplement, section 289A.40,subdivision 1, is amended to read:
Subdivision 1. [TIME LIMIT; GENERALLY.] Unless otherwiseprovided in this chapter, a claim for a refund of an overpaymentof state tax must be filed within 3-1/2 years from the dateprescribed for filing the return, plus any extension of timegranted for filing the return, but only if filed within theextended time, or one year from the date of an order assessingtax under section 289A.37, subdivision 1, upon payment in full ofthe tax, penalties, and interest shown on the order, whicheverperiod expires later. Claims for refund, except for taxesunder chapter 297A, filed after the 3-1/2 year period butwithin the one-year period are limited to the amount of the tax,penalties, and interest on the order and to issues determined bythe order.
In the case of assessments under section 289A.38,subdivisions 5 or 6, claims for refund under chapter 297A filedafter the 3-1/2 year period but within the one-year period arelimited to the amount of the tax, penalties, and interest on theorder that are due for the period before the 3-1/2 yearperiod.
Sec. 8. Minnesota Statutes 1994, section 289A.50, is amendedby adding a subdivision to read:
Subd. 2a. [REFUND OF SALES TAX TO PURCHASERS.] If avendor has collected from a purchaser a tax on a transaction thatis not subject to the tax imposed by chapter 297A, the purchasermay apply directly to the commissioner for a refund under thissection if:
(a) the purchaser is currently registered to collect andremit the sales and use tax; and
(b) the amount of the refund applied for exceeds$500.
The purchaser may not file more than two applications forrefund under this subdivision in a calendar year.
Sec. 9. Minnesota Statutes 1994, section 289A.56, subdivision4, is amended to read:
Subd. 4. [CAPITAL EQUIPMENT REFUNDS; REFUNDS TOPURCHASERS.] Notwithstanding subdivision 3, for refundspayable under section sections 297A.15, subdivision5, and 289A.50, subdivision 2a, interest is computed fromthe date the refund claim is filed with the commissioner.
Sec. 10. Minnesota Statutes 1994, section 297.04, subdivision9, is amended to read:
Subd. 9. [APPLICATION DENIAL; LICENSE SUSPENSION ANDREVOCATION.] (a) The commissioner may revoke,cancel, or suspend the license or licenses of any distributoror subjobber for violation of sections 297.01 to 297.13, or anyother act applicable to the sale of cigarettes, or any rulepromulgated by the commissioner, and may also revoke any suchlicense or licenses of any distributor or subjobber for theviolation of sections 297.31 to 297.39, or any other actapplicable to the sale of tobacco products, or any rulepromulgated by the commissioner in furtherance of sections 297.31to 297.39. The commissioner may revoke, cancel, orsuspend the license or licenses of any distributor or subjobberfor violation of sections 325D.31 to 325D.42.
(b) The department must not issue or renew a license underthis chapter, and may revoke a license under this chapter, if theapplicant or licensee:
(1) owes $500 or more in delinquent taxes as defined insection 270.72;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9781(2) after demand, has not filed tax returns required by thecommissioner of revenue;
(3) had a cigarette or tobacco license revoked by thecommissioner of revenue within the past two years;
(4) had a sales and use tax permit revoked by thecommissioner of revenue within the past two years; or
(5) has been convicted of a crime involving cigarettes,including but not limited to: selling stolen cigarettes ortobacco items, receiving stolen cigarettes or tobacco items, orinvolvement in the smuggling of cigarettes ortobacco items.
(c) No license shall be revoked, canceled, orsuspended under this chapter, and no application for a licenseshall be denied under this chapter, except after 20days' notice and specifying the commissioner'sallegations against the licensee or applicant, and the right torequest, in writing within 20 days, a contested casehearing by the commissioner as provided in section297.09 chapter 14. If a written request for ahearing is received by the department of revenue within 20 daysof the date of the initial notice, the hearing must be heldwithin 45 days after referral to the office of administrativehearings, and no earlier than 20 days after notice to thelicensee or applicant of the hearing time and place. A licenseis revoked or suspended, and an application is denied, when thecommissioner serves notice of revocation, suspension, or denialafter 20 days have passed following the initial notice under thisparagraph without a request for hearing being made, or if ahearing is held, after the commissioner serves an order ofrevocation, suspension, or denial under section 14.62,subdivision 1. All notices under this paragraph may be servedpersonally or by mail.
Sec. 11. Minnesota Statutes 1995 Supplement, section 297A.02,subdivision 4, is amended to read:
Subd. 4. [MANUFACTURED HOUSING AND PARK TRAILERS.]Notwithstanding the provisions of subdivision 1, for sales atretail of new manufactured homes used for residentialpurposes and new or used park trailers, as defined in section168.011, subdivision 8, paragraph (b), the excise tax is imposedupon 65 percent of the sales price of the home or parktrailer.
Sec. 12. [297A.023] [REMITTANCE OF AMOUNTS COLLECTED ASTAXES.]
Any amounts collected, even if erroneously or illegallycollected, from a purchaser under a representation that they aretaxes imposed under this chapter are state funds from the time ofcollection and must be reported on a return filed with thecommissioner and are not subject to refund without proof thatsuch amounts have been refunded or credited to the purchaser bythe seller.
Sec. 13. Minnesota Statutes 1994, section 297A.14, is amendedby adding a subdivision to read:
Subd. 4. [DE MINIMIS EXEMPTION.] Purchases subjectto use tax under this section are exempt if (1) the purchase ismade by an individual for personal use, and (2) the totalpurchases that are subject to the use tax do not exceed $770 inthe calendar year. For purposes of this subdivision, "personaluse" includes purchases for gifts. If an individual makespurchases, which are subject to use tax, of more than $770 in thecalendar year the individual must pay the use tax on the entireamount.
Sec. 14. Minnesota Statutes 1994, section 297A.15, subdivision4, is amended to read:
Subd. 4. [SEIZURE; COURT REVIEW.] The commissioner of revenueor the commissioner's duly authorized agents are empowered toseize and confiscate in the name of the state any truck,automobile or means of transportation not owned or operated by acommon carrier, used in the illegal importation andtransportation of any article or articles of tangible personalproperty by a retailer or the retailer's agent or employee whodoes not have a sales or use tax permit and has been engaging intransporting personal property into the state without payment ofthe tax. The commissioner may demand the forfeiture and sale ofthe truck, automobile or other means of transportation togetherwith the property being transported illegally, unless the ownerestablishes to the satisfaction of the commissioner or the courtthat the owner had no notice or knowledge or reason to believethat the vehicle was used or intended to be used in any suchviolation. Within two days after the seizure, the person makingthe seizure shall deliver an inventory of the vehicle andproperty seized to the person from whom the seizure was made, ifknown, and to any person known or believed to have any right,title, interest or lien on the vehicle or property, and shallalso file a copy with the commissioner. Within ten days afterthe date of service of the inventory, the person from whom thevehicle and property was seized or any person claiming aninterest in the vehicle or property may file with thecommissioner a demand for a judicial determination of thequestion as to whether the vehicle or property was lawfullysubject to
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9782seizure and forfeiture. The commissioner, within 30 days, shallinstitute an action in the district court of the county where theseizure was made to determine the issue of forfeiture. Theaction shall be brought in the name of the state and shall beprosecuted by the county attorney or by the attorney general. The court shall hear the action without a jury and shall try anddetermine the issues of fact and law involved. Whenever ajudgment of forfeiture is entered, the commissioner may, unlessthe judgment is stayed pending an appeal, cause the forfeitedvehicle and property to be sold at public auction as provided bylaw. If a demand for judicial determination is made and noaction is commenced as provided in this subdivision, the vehicleand property shall be released by the commissioner andredelivered to the person entitled to it. If no demand is made,the vehicle and property seized shall be deemed forfeited to thestate by operation of law and may be disposed of by thecommissioner as provided where there has been a judgment offorfeiture. The forfeiture and sale of the automobile, truck orother means of transportation, and of the property beingtransported illegally in it, is a penalty for the violation ofthis chapter. After deducting the expense of keeping the vehicleand property, the fee for seizure, and the costs of the sale, thecommissioner shall pay from the funds collected all liensaccording to their priority, which are established at the hearingas being bona fide and as existing without the lienor having anynotice or knowledge that the vehicle or property was being usedor was intended to be used for or in connection with any suchviolation as specified in the order of the court, and shall paythe balance of the proceeds into the state treasury to becredited to the general fund. The state shall not be liable forany liens in excess of the proceeds from the sale afterdeductions provided. Any sale under the provisions of thissection shall operate to free the vehicle and property sold fromany and all liens on it, and appeal from the order of thedistrict court will lie as in other civil cases.
For the purposes of this section, "common carrier" means anyperson engaged in transportation for hire of tangible personalproperty by motor vehicle, limited to (1) a person possessing acertificate or permit authorizing or having completed aregistration process that authorizes for-hire transportationof property from the interstate commerce commission or thepublic utilities commission United States Department ofTransportation, the transportation regulation board, or thedepartment of transportation; or (2) any person transportingcommodities defined as "exempt" in for-hire transportation; or(3) any person who pursuant to a contract with a person describedin (1) or (2) above transports tangible personal property.
Sec. 15. Minnesota Statutes 1994, section 297A.211,subdivision 1, is amended to read:
Subdivision 1. Every person, as defined in this chapter, who isengaged in interstate for-hire transportation of tangiblepersonal property or passengers by motor vehicle may at theiroption, under rules prescribed by the commissioner, register asretailers and pay the taxes imposed by this chapter in accordancewith this section. Persons referred to herein are: (1) personspossessing a certificate or permit authorizing orhaving completed a registration process that authorizesfor-hire transportation of property or passengers from theinterstate commerce commission or the Minnesota publicutilities commission United States Department ofTransportation, the transportation regulation board, or thedepartment of transportation; or (2) persons transportingcommodities defined as "exempt" in for-hire transportation ininterstate commerce; or (3) persons who, pursuant to contractswith persons described in clauses (1) or (2) above, transporttangible personal property in interstate commerce. Personsqualifying under clauses (2) and (3) must maintain on a currentbasis the same type of mileage records that are required bypersons specified in clause (1) by the interstate commercecommission United States Department of Transportation. Persons who in the course of their business are transportingsolely their own goods in interstate commerce may also registeras retailers pursuant to rules prescribed by the commissioner andpay the taxes imposed by this chapter in accordance with thissection.
Sec. 16. Minnesota Statutes 1994, section 297A.25, subdivision14, is amended to read:
Subd. 14. [AIRFLIGHT EQUIPMENT.] The gross receipts from salesof airflight equipment to, and the storage, use or otherconsumption of such property by airline companies taxed underthe provisions of sections 270.071 to 270.079, as definedin section 270.071, subdivision 4, are exempt. For purposesof this subdivision, "airflight equipment" includes airplanes andparts necessary for the repair and maintenance of such airflightequipment, and flight simulators, but does not includeairplanes with a gross weight of less than 30,000 pounds that areused on intermittent or irregularly timed flights.
Sec. 17. Minnesota Statutes 1994, section 297A.25, subdivision28, is amended to read:
Subd. 28. [WASTE PROCESSING EQUIPMENT.] The gross receiptsfrom the sale of equipment used for processing solid or hazardouswaste at a resource recovery facility, as defined in section115A.03, subdivision 28, are exempt, including pollutioncontrol equipment at a resource recovery facility that burnsrefuse-derived fuel or mixed municipal solid waste as its primaryfuel.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9783Sec. 18. Minnesota Statutes 1994, section 297A.25, subdivision37, is amended to read:
Subd. 37. [YMCA AND, YWCA, AND JCCMEMBERSHIPS.] The gross receipts from the sale of memberships,including both one-time initiation fees and periodic membershipdues, to an association incorporated under section 315.44 oran organization defined under section 315.51, are exempt. However, all separate charges made for the privilege of havingaccess to and the use of the association's sports and athleticfacilities are taxable.
Sec. 19. Minnesota Statutes 1995 Supplement, section 297A.25,subdivision 57, is amended to read:
Subd. 57. [HORSES; RELATED MATERIALS.] (a) Thegross receipts from the sale of horses, including racehorses,and all are exempt.
(b) Sales to persons who raise or board horses,of all materials, including feed and bedding, used or consumed inthe breeding, raising, owning, boarding, and keeping ofhorses, are exempt. Machinery, equipment, implements, tools,appliances, furniture, and fixtures, used in the breeding,raising, owning, boarding, and keeping of horses, are notincluded within this exemption.
Sec. 20. Minnesota Statutes 1995 Supplement, section 297A.25,subdivision 59, is amended to read:
Subd. 59. [FARM MACHINERY.] From July 1, 1994, until June 30,1996 1997, the gross receipts from the sale of usedfarm machinery are exempt.
Sec. 21. Minnesota Statutes 1995 Supplement, section 297A.25,subdivision 61, is amended to read:
Subd. 61. [CONSTRUCTION MATERIALS FOR INDOOR ICE ARENAS.] Thegross receipts from the sale of construction materials andsupplies are exempt if:
(1) the materials and supplies are to be used in constructingan indoor ice arena intended to be used predominantly for youthathletic activities; and
(2) a school district is a party to a joint powers agreementthat governs the ownership, operation, and maintenance of thefacility the construction project is financed in whole orin part from a grant under sections 240A.09 and 240A.10 or theproceeds of obligations issued under section 373.43 or 475.58,subdivision 3.
This exemption applies regardless of whether the purchases aremade by the owner of the facility or a contractor.
Sec. 22. Minnesota Statutes 1994, section 297A.256,subdivision 1, is amended to read:
Subdivision 1. [FUNDRAISING SALES BY NONPROFIT GROUPS.]Notwithstanding the provisions of this chapter, the followingsales made by a "nonprofit organization" are exempt from thesales and use tax.
(a)(1) All sales made by an organization for fundraisingpurposes if that organization exists solely for the purpose ofproviding educational or social activities for young peopleprimarily age 18 and under. This exemption shall apply only ifthe gross annual sales receipts of the organization fromfundraising do not exceed $10,000.
(2) A club, association, or other organization of elementary orsecondary school students organized for the purpose of carryingon sports, educational, or other extracurricular activities is aseparate organization from the school district or school forpurposes of applying the $10,000 limit. This paragraph does notapply if the sales are derived from admission charges or fromactivities for which the money must be deposited with the schooldistrict treasurer under section 123.38, subdivision 2, or berecorded in the same manner as other revenues or expenditures ofthe school district under section 123.38, subdivision 2b.
(b) All sales made by an organization for fundraising purposesif that organization is a senior citizen group or association ofgroups that in general limits membership to persons age 55 orolder and is organized and operated exclusively for pleasure,recreation and other nonprofit purposes and no part of the netearnings inure to the benefit of any private shareholders. Thisexemption shall apply only if the gross annual sales receipts ofthe organization from fundraising do not exceed $10,000.
(c) The gross receipts from the sales of tangible personalproperty at, admission charges for, and sales of food, meals, ordrinks at fundraising events sponsored by a nonprofitorganization when the entire proceeds, except for the necessaryexpenses therewith, will be used solely and exclusively forcharitable, religious, or educational purposes.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9784This exemption does not apply to admission charges for eventsinvolving bingo or other gambling activities or to charges foruse of amusement devices involving bingo or other gamblingactivities. For purposes of this clause paragraph,a "nonprofit organization" means any unit of government,corporation, society, association, foundation, or institutionorganized and operated for charitable, religious, educational,civic, fraternal, senior citizens' or veterans' purposes, no partof the net earnings of which enures to the benefit of a privateindividual.
If the profits are not used solely and exclusively forcharitable, religious, or educational purposes, the entire grossreceipts are subject to tax.
Each nonprofit organization shall keep a separate accountingrecord, including receipts and disbursements from eachfundraising event. All deductions from gross receipts must bedocumented with receipts and other records. If records are notmaintained as required, the entire gross receipts are subject totax.
The exemption provided by this section paragraphdoes not apply to any sale made by or in the name of a nonprofitcorporation as the active or passive agent of a person that isnot a nonprofit corporation.
The exemption for fundraising events under this sectionparagraph is limited to no more than 24 days a year.Fundraising events conducted on premises leased oroccupied for more than four days but less than 30 days do notqualify for this exemption.
(d) The gross receipts from the sale or use of ticketsor admissions to a golf tournament held in Minnesota are exemptif the beneficiary of the tournament's net proceeds qualifies asa tax-exempt organization under section 501(c)(3) of the InternalRevenue Code, including a tournament conducted on premises leasedor occupied for more than four days.
Sec. 23. Minnesota Statutes 1995 Supplement, section 297B.01,subdivision 8, is amended to read:
Subd. 8. [PURCHASE PRICE.] "Purchase price" means the totalconsideration valued in money for a sale, whether paid in moneyor otherwise. The purchase price excludes the amount of amanufacturer's rebate paid or payable to the purchaser. If amotor vehicle is taken in trade as a credit or as part payment ona motor vehicle taxable under this chapter, the credit ortrade-in value allowed by the person selling the motor vehicleshall be deducted from the total selling price to establish thepurchase price of the vehicle being sold and the trade-inallowance allowed by the seller shall constitute the purchaseprice of the motor vehicle accepted as a trade-in. The purchaseprice in those instances where the motor vehicle is acquired bygift or by any other transfer for a nominal or no monetaryconsideration shall also include the average value of similarmotor vehicles, established by standards and guides as determinedby the motor vehicle registrar. The purchase price in thoseinstances where a motor vehicle is manufactured by a person whoregisters it under the laws of this state shall mean themanufactured cost of such motor vehicle and manufactured costshall mean the amount expended for materials, labor and otherproperly allocable costs of manufacture, except that in theabsence of actual expenditures for the manufacture of a part orall of the motor vehicle, manufactured costs shall mean thereasonable value of the completed motor vehicle.
The term "purchase price" shall not include the portion of thevalue of a motor vehicle due solely to modifications necessary tomake the motor vehicle handicapped accessible. The term"purchase price" shall not include the transfer of a motorvehicle by way of gift between a husband and wife or parent andchild, nor shall it include the transfer of a motor vehicle by aguardian to a ward when there is no monetary consideration andthe title to such vehicle was registered in the name of theguardian, as guardian, only because the ward was a minor. Thereshall not be included in "purchase price" the amount of any taximposed by the United States upon or with respect to retail saleswhether imposed upon the retailer or the consumer.
The term "purchase price" shall not include the transfer ofa motor vehicle as a gift between a foster parent and fosterchild. For purposes of this subdivision, a foster relationshipexists, regardless of the age of the child, if (1) a fosterparent's home is or was licensed as a foster family home underMinnesota Rules, parts 9545.0010 to 9545.0260, and (2) the countyverifies that the child was a state ward or in permanent fostercare.
Sec. 24. [315.51] [JCC; DEFINITION.]
A "JCC" means a nonprofit religious organization undersection 501(c)(3) of the Internal Revenue Code of 1986 known asthe Jewish Community Center of Greater Minneapolis or the JewishCommunity Center of Greater St. Paul and organized for thepurpose of serving the cultural, educational, and recreationalneeds of the Jewish community.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9785Sec. 25. Laws 1991, chapter 291, article 8, section 27, isamended by adding a subdivision to read:
Subd. 9. [ADDITIONAL AUTHORITY; MANKATO MUNICIPALAIRPORT.] (a) In addition to the uses of revenues authorizedin subdivision 3, the city may use revenues received from taxesauthorized by subdivisions 1 and 2 to pay for rehabilitation,expansion, improvement, and operation of the Mankato municipalairport and related facilities, including securing or paying debtservice on bonds or other obligations issued to finance theimprovements.
(b) The city may issue general obligation bonds of the cityfor the Mankato municipal airport and related facilities withoutelection under Minnesota Statutes, chapter 475, on the questionof issuance of the bonds or a tax to pay them. The debtrepresented by bonds issued for the Mankato municipal airport andrelated facilities shall not be included in computing any levy ordebt limits applicable to the city.
(c) The total capital, administrative, and operatingexpenses authorized in paragraph (a) payable from bond proceedsand from the taxes authorized in subdivisions 1 and 2, excludinginvestment earnings on bond proceeds and revenues, shall notexceed $500,000 in any year, unless the city has dedicated in areserve fund sufficient funds to pay or secure payment ofprincipal and interest on bonds issued under subdivision 5 for aperiod of at least one year. The total amount of generalobligation bonds of the city issued for the Mankato municipalairport and related facilities may not exceed $4,500,000.
(d) Notwithstanding the provisions of subdivision 4, theauthority of the city to impose taxes under subdivisions 1 and 2shall not expire until the principal and interest on any bonds orobligations issued to finance the Mankato municipal airport andrelated facilities have been paid, or the city determines byordinance an earlier expiration date.
(e) This subdivision is effective the day after compliancewith Minnesota Statutes, section 645.021, subdivision 3, by thegoverning body of the city of Mankato.
Sec. 26. Laws 1995, chapter 264, article 2, section 42,subdivision 1, is amended to read:
Subdivision 1. [CREATION; MEMBERSHIP.] (a) A state advisorycouncil is established to study the general and motor vehiclesales and use taxes under Minnesota Statutes 1994, chapters 297Aand 297B, and to make recommendations to the 1996 legislatureand the 1997 legislature. The study shall be completedand Interim findings shall be reported to thelegislature by February 1, 1996. The study shall be completedand a final report submitted to the legislature by January 1,1997.
(b) The advisory council consists of 17 members who serve atthe pleasure of the appointing authority as follows:
(1) ten legislators; five members of the senate, including twomembers of the minority party, appointed by the subcommittee oncommittees of the committee on rules and administration and fivemembers of the house of representatives, including two members ofthe minority party, appointed by the speaker;
(2) the commissioner of revenue or the commissioner's designee;and
(3) six members of the public; two appointed by thesubcommittee on committees of the committee on rules andadministration of the senate, two appointed by the speaker of thehouse, and two appointed by the governor. At least one member ofthe public that is appointed by each entity must represent aconsumer interest group or other private citizen group, publicpolicy organization, or university department of public policy oreconomics.
Sec. 27. Laws 1995, chapter 264, article 2, section 44, isamended to read:
Sec. 44. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment.
Sections 3 and 4 are effective June 1, 1995. Section 4 isrepealed June 1, 2000.
Sections 5 to 21 and 43, paragraph (a), are effective July 1,1995.
Sections 23, 28, 33, 40, 42, and the part of section 22amending language in paragraph (i), clause (vii), are effectivethe day following final enactment.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9786Sections 24 and 34 are effective for sales made after December31, 1996.
Section 25 is effective beginning with leases or rentals madeafter June 30, 1995.
Section 26 is effective retroactively for sales after May 31,1992.
Section 27 is effective for sales made after June 30, 1995.
Section 29 and the part of section 22 striking the languageafter paragraph (h) are effective for sales afterJune 30, 1995.
Section 32 is effective for sales made after June 30, 1995, andbefore July 1, 1996 1998.
Sections 35 and 36 are effective for sales or transfers madeafter June 30, 1995.
Section 38 is effective the day after the governing body of thecity of Winona complies with Minnesota Statutes, section 645.021,subdivision 3.
Section 39 is effective upon compliance by the Minneapolis citycouncil with Minnesota Statutes, section 645.021, subdivision3.
Section 43, paragraph (b), is effective for sales of 900information services made after June 30, 1995.
Sec. 28. [SOLID WASTE MANAGEMENT TAXES.]
Subdivision 1. [MORATORIUM EXTENDED.] Thecommissioner of revenue shall not initiate or continue any actionto collect any underpayment from political subdivisions, or toreimburse any overpayment to any political subdivisions of taxeson solid waste management services under Minnesota Statutes,section 297A.45, until June 1, 1997. The statute of limitationsfor assessing, collecting, or refunding taxes subject to theprovisions of this subdivision and Laws 1995, chapter 264,article 2, section 40, is tolled from the date of enactment ofthis law, if enacted, until June 1, 1997.
Subd. 2. [CONTINUE EVALUATION; REPORT.] (a) Thecommissioner of revenue shall continue the evaluation todetermine the taxes paid by all affected political subdivisionson solid waste management services as required by MinnesotaStatutes, section 297A.45. This is a continuation of theevaluation provided for under Laws 1995, chapter 264, article 2,section 40, except that the evaluation under this subdivisionincludes all political subdivisions subject to the tax underMinnesota Statutes, section 297A.45. The political subdivisionsshall cooperate fully and shall supply the commissioner ofrevenue with whatever information the commissioner of revenuedeems necessary for compliance under the law.
(b) By May 1, 1996, the commissioner of revenue shall notifyall counties of the opportunity to correct the informationprovided under Laws 1995, chapter 264, article 2, section 40. Acounty must submit their corrections in writing to the departmentof revenue by July 1, 1996.
(c) The commissioner of revenue shall report by January 15,1997, the results of the evaluation under this subdivision to thechairs of the house committee on taxes and the senate committeeon taxes and tax laws. The final results of the evaluation areclassified as public data.
Subd. 3. [TASK FORCE; SCOPE.] (a) The director ofthe office of environmental assistance shall establish and staffa task force to study implementation of the sales and use taxeson solid waste management services under Minnesota Statutes,section 297A.45, and the solid waste generator assessment underMinnesota Statutes, section 116.07, subdivision 10. The taskforce shall make recommendations to the sales tax advisorycouncil and to the chairs of the house environment and naturalresources committee, and the senate environment and naturalresources committee of the legislature:
(1) by November 30, 1996, for the goals itemized inparagraph (c), clauses (1)(i) and (ii);
(2) by January 15, 1997, for the goals itemized in paragraph(c), clauses (1)(iii) to (vii); and
(3) by February 15, 1997, for the goal itemized in paragraph(c), clause (2).
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9787(b) The task force shall consist of 14 voting members withexpertise in the areas of taxation or waste management, asprovided in this subdivision:
(1) four legislators, or their designees, including twomembers of the senate, one from the minority party and one fromthe majority party, appointed by the subcommittee on committeesof the committee on rules and administration and two members ofthe house of representatives, one from the minority party and onefrom the majority party, appointed by the speaker;
(2) two representatives from the department of revenue,appointed by the commissioner of revenue;
(3) one representative from the office of environmentalassistance, appointed by the director of the office;
(4) one representative from the pollution control agency,appointed by the commissioner of the agency;
(5) three persons representing political subdivisions, atleast one of which must represent county government, appointed bythe director of the office of environmental assistance;and
(6) three persons representing the private waste collectionindustry, appointed by the director of the office ofenvironmental assistance, at least one of which is knowledgeableon how taxing and pricing of waste collection servicesinteract.
(c) The goals of the task force are:
(1) relating to solid waste management taxes:
(i) to monitor the evaluation conducted under subdivision 2and to provide input to the commissioner of revenue if questionsof interpretations arise during the evaluation;
(ii) to discuss the tax base principles and possible optionsto use for the tax period from January 1, 1990, to December 31,1995;
(iii) to discuss the base to which the tax applies beginningJanuary 1, 1996, taking into consideration the impact onpolitical subdivisions and private haulers, resulting from recentcourt decisions regarding government control over the flow ofwaste and the effect of these decisions on waste management feestructures;
(iv) to examine the impact on total revenues from variousfunding sources including tipping fees, service charges,assessments, or subsidizing through the property taxsystem;
(v) to identify ways to simplify or restructure the currenttax system for ease of collection and administration;
(vi) to discuss methods to ensure that the taxes due to thestate are paid either by the haulers or the politicalsubdivisions; and
(vii) to recommend a procedure for keeping opencommunication between the various entities on any future issuesrelating to this tax; and
(2) relating to the solid waste generator assessment:
(i) to discuss the distinction between "residential" and"nonresidential" for purposes of the solid waste generatorassessment under Minnesota Statutes, section 116.07, subdivision10; and
(ii) to examine ways to simplify or restructure the currentassessment system for ease of collection andadministration.
Subd. 4. [USE OF TAX PROCEEDS.] It is thelegislature's intent that the total amount of tax proceedscollected under Minnesota Statutes, section 297A.45, less thedepartment of revenue's costs of administering the programincluding the cost of conducting the evaluation under subdivision2, be used for administration of programs and functions relatedto reducing the quantity and toxicity of solid waste, recycling,household hazardous waste management, and other similarly relatedprograms. Appropriations may be made in block grants orcompetitive grants to political subdivisions. Money may also beused by the office of environmental assistance and thepollution
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9788control agency in helping to administer and enforce the programsand functions identified in this subdivision. Appropriations mayalso be made to the state attorney general's office for providinglegal assistance to political subdivisions relating to solidwaste management.
Subd. 5. [DEPARTMENT OF REVENUE GUIDELINES.] Thecommissioner of revenue shall prepare a single set of guidelinesfor complying with Minnesota Statutes, section 297A.45, includingall existing rules, and shall send a copy of these guidelines onor before May 1, 1996, to all known political subdivisionssubject to the tax under Minnesota Statutes, section 297A.45. Notwithstanding taxes collected prior to January 1, 1996,political subdivisions and persons responsible for collecting thetax under Minnesota Statutes, section 297A.45, must follow theseguidelines for all taxes collected on solid waste managementservices beginning January 1, 1996. The commissioner shall senda copy of the guidelines to the chairs of the house committee ontaxes and the senate committee on taxes and tax laws by April 22,1996, for their review and comment.
Subd. 6. [SEPARATE REPORTING; ADDITIONAL PENALTY.](a) In order to determine the total amount of sales and usetaxes collected under Minnesota Statutes, section 297A.45, thedepartment of revenue shall reexamine the present method ofhaving this tax reported on the sales tax return. The departmentmust also consider other options including requiring the salesand use tax amounts to be reported on a separate form.
(b) In addition to the penalties and interest that apply totaxes under Minnesota Statutes, section 297A.45, a penalty equalto the specified penalty of the taxpayer's tax liability isimposed on any person or political subdivision who fails toseparately report the amount of the taxes due under MinnesotaStatutes, section 297A.45. The specified penalties are:
First violationten percent
Second and subsequent
violations 20 percent
The additional penalties apply only to that portion of thesales and use tax which should have been reported on the separateline for taxes under Minnesota Statutes, section 297A.45, andthat was included on other lines of the sales tax return.
Subd. 7. [APPROPRIATION.] The amount necessary toconduct the evaluation under subdivision 2, but not to exceed$250,000, is appropriated for fiscal years 1996 and 1997, to thecommissioner of revenue from money deposited in the general fundfrom the solid waste collection and disposal tax under MinnesotaStatutes, section 297A.45.
Subd. 8. [EFFECTIVE DATE.] Subdivisions 1 to 3, 6,paragraph (a), and 7, are effective the day following finalenactment. Subdivisions 4 and 5 are effective for taxescollected January 1, 1996, and thereafter. Subdivision 6,paragraph (b), is effective for returns filed after September 1,1996.
Sec. 29. [CITY OF HERMANTOWN; SALES TAX.]
Subdivision 1. [SALES TAX AUTHORIZED.]Notwithstanding Minnesota Statutes, section 477A.016, or anyother contrary provision of law, ordinance, or city charter, thecity of Hermantown may, by ordinance, impose an additional salestax of up to one percent on sales transactions taxable pursuantto Minnesota Statutes, chapter 297A, that occur within the city.The proceeds of the tax imposed under this section must be usedto meet the costs of:
(1) extending a sewer interceptor line;
(2) construction of a booster pump station, reservoirs, andrelated improvements to the water system; and
(3) construction of a police and fire station.
Subd. 2. [REFERENDUM.] If the Hermantown citycouncil proposes to impose the sales tax authorized by thissection, it shall conduct a referendum on the issue. Thequestion of imposing the tax must be submitted to the voters at aspecial or general election. The tax may not be imposed unless amajority of votes cast on the question of imposing the tax are inthe affirmative. The commissioner of revenue shall prepare asuggested form of question to be presented at the election. Thissubdivision applies notwithstanding any city charter provision tothe contrary.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9789Subd. 3. [ENFORCEMENT; COLLECTION; AND ADMINISTRATIONOF TAXES.] A sales tax imposed under this section must bereported and paid to the commissioner of revenue with the statesales taxes, and be subject to the same penalties, interest, andenforcement provisions. The proceeds of the tax, less refundsand a proportionate share of the cost of collection, shall beremitted at least quarterly to the city. The commissioner shalldeduct from the proceeds remitted an amount that equals theindirect statewide cost as well as the direct and indirectdepartment costs necessary to administer, audit, and collect thetax. The amount deducted shall be deposited in the state generalfund.
Subd. 4. [TERMINATION.] The tax authorized underthis section terminates at the later of (1) ten years after thedate of initial imposition of the tax, or (2) on the first day ofthe second month next succeeding a determination by the citycouncil that sufficient funds have been received from the tax tofinance the improvements described in subdivision 1, clauses (1)to (3), and to prepay or retire at maturity the principal,interest, and premium due on any bonds issued for theimprovements. Any funds remaining after completion of theimprovements and retirement or redemption of the bonds may beplaced in the general fund of the city.
Subd. 5. [LOCAL APPROVAL; EFFECTIVE DATE.] Thissection is effective the day after final enactment, uponcompliance with Minnesota Statutes, section 645.021, subdivision3, by the city of Hermantown.
Sec. 30. [CITY OF LITTLE FALLS; TAX AUTHORIZED.]
Subdivision 1. [SALES OF FOOD; TAX.] The city ofLittle Falls may by ordinance impose a tax of one-half percent onthe gross receipts from the retail sale of food and nonalcoholicbeverages sold by the operator of a restaurant or place ofrefreshment within the city. The tax imposed may be effective atany time after July 1, 1996.
Subd. 2. [DEFINITIONS.] For purposes of thissection:
(1) "restaurant" means every building or other structure orenclosure, or any part thereof and all buildings in connection,kept, used or maintained as, or held out to the public to be anenclosure where meals or lunches are served or prepared forservice elsewhere, except schools;
(2) "place of refreshment" means every building, structure,vehicle, sidewalk cart or any part thereof, used as, maintainedas, or advertised as, or held out to be a place whereconfectionery, ice cream, or drinks of various kinds are made,sold, or served at retail, excepting schools and school sponsoredevents; and
(3) "operator" means the person who is the proprietor of therestaurant, or place of refreshment, whether in the capacity ofowner, lessee, subleases, licensee, or an other capacity.
Subd. 3. [USE OF PROCEEDS.] The ordinance adopted bythe city shall provide for distribution of the proceeds of thetax. The proceeds of the tax must be used for tourism purposes,including operating and maintaining the activities and programsof the tourism and convention bureau.
Subd. 4. [ENFORCEMENT, COLLECTION, AND ADMINISTRATIONOF TAXES.] The tax imposed under this section shall beenforced, administered, and collected by the city of Little Fallsprovided that the city may contract with the commissioner ofrevenue to perform audits of the tax on behalf of the city. Thecommissioner shall charge the city an amount that equals thedirect and indirect costs incurred by the department that arenecessary to audit the tax.
Subd. 5. [EXPIRATION OF TAXING AUTHORITY.] The taximposed under this section shall expire 15 years after it firstbecomes effective.
Subd. 6. [EFFECTIVE DATE.] This section is effectivethe day following compliance by the governing body of the city ofLittle Falls with Minnesota Statutes, section 645.021,subdivision 3.
Sec. 31. [EFFECTIVE DATES.]
Sections 1 to 7, 10, 12, 16 to 20, 22, 26, and 27 areeffective the day after final enactment.
Sections 8 and 9 are effective for refunds applied for afterDecember 31, 1996.
Sections 11 and 13 are effective for sales made afterDecember 31, 1996.
Section 23 is effective for transfers of motor vehiclesafter June 30, 1996.
Section 21 is effective for purchases made after June 30,1996.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9790Section 1. Minnesota Statutes 1994, section 103E.611,subdivision 7, is amended to read:
Subd. 7. [COLLECTION AND ENFORCEMENT OF DRAINAGE LIENS.] Theprovisions of law that exist relating to theenforcement, collection of, penalty, andinterest provisions relating to real estate taxes areadopted apply to enforce the payment ofdrainage liens. If there is a default, a penalty may not beadded to an installment of principal and interest, but eachdefaulted payment, principal, and interest draws interest fromthe date of default until paid at the rate determined by thestate court administrator for judgments under section549.09.
Sec. 2. Minnesota Statutes 1995 Supplement, section 124A.03,subdivision 2, is amended to read:
Subd. 2. [REFERENDUM REVENUE.] (a) The revenue authorized bysection 124A.22, subdivision 1, may be increased in the amountapproved by the voters of the district at a referendum called forthe purpose. The referendum may be called by the school board orshall be called by the school board upon written petition ofqualified voters of the district. The referendum shall beconducted one or two calendar years before the increased levyauthority, if approved, first becomes payable. Only one electionto approve an increase may be held in a calendar year. Unlessthe referendum is conducted by mail under paragraph (g), thereferendum must be held on the first Tuesday after the firstMonday in November. The ballot shall state the maximum amount ofthe increased revenue per actual pupil unit, the estimatedreferendum tax rate as a percentage of market value in the firstyear it is to be levied, and that the revenue shall be used tofinance school operations. The ballot may state that existingreferendum levy authority is expiring. In this case, the ballotmay also compare the proposed levy authority to the existingexpiring levy authority, and express the proposed increase as theamount, if any, over the expiring referendum levy authority. Theballot shall designate the specific number of years, not toexceed ten, for which the referendum authorization shall apply. The notice required under section 275.60 may be modified to read,in cases of renewing existing levies:
"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."
The ballot may contain a textual portion with the informationrequired in this subdivision and a question stating substantiallythe following:
"Shall the increase in the revenue proposed by (petition to)the board of . . . . . . . . ., School District No. . . ., beapproved?"
If approved, an amount equal to the approved revenue per actualpupil unit times the actual pupil units for the school yearbeginning in the year after the levy is certified shall beauthorized for certification for the number of years approved, ifapplicable, or until revoked or reduced by the voters of thedistrict at a subsequent referendum.
(b) The school board shall prepare and deliver by first classmail at least 15 days but no more than 30 days prior to the dayof the referendum to each taxpayer a notice of the referendum andthe proposed revenue increase. The school board need not mailmore than one notice to any taxpayer. For the purpose of givingmailed notice under this subdivision, owners shall be those shownto be owners on the records of the county auditor or, in anycounty where tax statements are mailed by the county treasurer,on the records of the county treasurer. Every property ownerwhose name does not appear on the records of the county auditoror the county treasurer shall be deemed to have waived thismailed notice unless the owner has requested in writing that thecounty auditor or county treasurer, as the case may be, includethe name on the records for this purpose. The notice mustproject the anticipated amount of tax increase in annual dollarsand annual percentage for typical residential homesteads,agricultural homesteads, apartments, and commercial-industrialproperty within the school district.
The notice for a referendum may state that an existingreferendum levy is expiring and project the anticipated amount ofincrease over the existing referendum levy, if any, in annualdollars and annual percentage for typical residential homesteads,agricultural homesteads, apartments, and commercial-industrialproperty within the school district.
The notice must include the following statement: "Passage ofthis referendum will result in an increase in your propertytaxes." However, in cases of renewing existing levies, thenotice may include the following statement: "Passage of thisreferendum may result in an increase in your property taxes."
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9791(c) A referendum on the question of revoking or reducing theincreased revenue amount authorized pursuant to paragraph (a) maybe called by the school board and shall be called by the schoolboard upon the written petition of qualified voters of thedistrict. A referendum to revoke or reduce the levy amount mustbe based upon the dollar amount, local tax rate, or amount peractual pupil unit, that was stated to be the basis for theinitial authorization. Revenue approved by the voters of thedistrict pursuant to paragraph (a) must be received at least oncebefore it is subject to a referendum on its revocation orreduction for subsequent years. Only one revocation or reductionreferendum may be held to revoke or reduce referendum revenue forany specific year and for years thereafter.
(d) A petition authorized by paragraph (a) or (c) shall beeffective if signed by a number of qualified voters in excess of15 percent of the registered voters of the school district on theday the petition is filed with the school board. A referenduminvoked by petition shall be held on the date specified inparagraph (a).
(e) The approval of 50 percent plus one of those voting on thequestion is required to pass a referendum authorized by thissubdivision.
(f) At least 15 days prior to the day of the referendum, thedistrict shall submit a copy of the notice required underparagraph (b) to the commissioner of children, families, andlearning and to the county auditor of each county in which theschool district is located. Within 15 days after the resultsof the referendum have been certified by the school board, or inthe case of a recount, the certification of the results of therecount by the canvassing board, the district shall notify thecommissioner of children, families, and learning of the resultsof the referendum.
(g) Except for a referendum held under subdivision 2b, anyreferendum under this section held on a day other than the firstTuesday after the first Monday in November must be conducted bymail in accordance with section 204B.46. Notwithstandingparagraph (b) to the contrary, in the case of a referendumconducted by mail under this paragraph, the notice required byparagraph (b) shall be prepared and delivered by first class mailat least 20 days before the referendum.
Sec. 3. Minnesota Statutes 1994, section 270.07, subdivision1, is amended to read:
Subdivision 1. [POWERS OF COMMISSIONER; APPLICATION FORABATEMENT; ORDERS.] (a) The commissioner of revenue shallprescribe the form of all blanks and books required under thischapter and shall hear and determine all matters of grievancerelating to taxation. Except for matters delegated to thevarious boards of county commissioners under section 375.192, andexcept as otherwise provided by law, the commissioner shallhave power to grant such reduction or abatement of net taxcapacities or taxes and of any costs, penalties or interestthereon as the commissioner may deem just and equitable, and toorder the refundment, in whole or in part, of any taxes, costs,penalties or interest thereon which have been erroneously orunjustly paid. Application therefor shall be submitted with astatement of facts in the case and the favorable recommendationof the county board or of the board of abatement of any citywhere any such board exists, and the county auditor of the countywherein such tax was levied or paid. In the case of taxes otherthan gross earnings taxes, the order may be made only onapplication and approval as provided in this paragraph. Noreduction, abatement, or refundment of any special assessmentsmade or levied by any municipality for local improvements shallbe made unless it is also approved by the board of review orsimilar taxing authority of such municipality.
(b) The commissioner has the power to grant reductions orabatements of gross earnings tax. An application for reductionof gross earnings taxes may be made directly to the commissionerwithout the favorable action of the county board and countyauditor. The commissioner shall direct that any gross earningstaxes that may have been erroneously or unjustly paid be appliedagainst unpaid taxes due from the applicant.
(c) The commissioner shall forward to the county auditor a copyof the order made by the commissioner in all cases in which theapproval of the county board is required.
(d) The commissioner may refer any question that may arise inreference to the true construction of this chapter to theattorney general, and the decision thereon shall be in force andeffect until annulled by the judgment of a court of competentjurisdiction.
(e) The commissioner may by written order abate, reduce, orrefund any penalty or interest imposed by any law relating totaxation, if in the commissioner's opinion the failure to timelypay the tax or failure to timely file the return is due toreasonable cause. The order shall be made on application of thetaxpayer to the commissioner.
(f) If an order issued under this subdivision is for anabatement, reduction, or refund of over $5,000, it shall be validonly if approved in writing by the attorney general.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9792(g) An appeal may not be taken to the tax court from any orderof the commissioner of revenue made in the exercise of thediscretionary authority granted in paragraph (a) with respect tothe reduction or abatement of real or personal property taxes inresponse to a taxpayer's application for an abatement, reduction,or refund of taxes, net tax capacities, costs, penalties, orinterest.
Sec. 4. Minnesota Statutes 1994, section 273.02, subdivision3, is amended to read:
Subd. 3. [WHAT RIGHTS NOT AFFECTED.] Nothing in subdivisions 1to 3 shall affect any rights in undervalued or erroneouslyclassified property, acquired for value in good faith prior tothe correction of the net tax capacity thereof by the countyauditor as provided in this section. Any person whose rights areadversely affected by any action of the county auditor asprovided in this subdivision may apply for a reduction of the nettax capacity under the provisions of section 270.07, relatingto the powers of the commissioner of revenue375.192.
Sec. 5. Minnesota Statutes 1995 Supplement, section 273.11,subdivision 16, is amended to read:
Subd. 16. [VALUATION EXCLUSION FOR CERTAIN IMPROVEMENTS.]Improvements to homestead property made before January 2, 2003,shall be fully or partially excluded from the value of theproperty for assessment purposes provided that (1) the house isat least 35 years old at the time of the improvement and (2)either
(a) the assessor's estimated market value of the house onJanuary 2 of the current year is equal to or less than $150,000,or
(b) if the estimated market value of the house is over $150,000market value but is less than $300,000 on January 2 of thecurrent year, the property qualifies if
(i) it is located in a city or town in which 50 percent or moreof the owner-occupied housing units were constructed before 1960based upon the 1990 federal census, and
(ii) the city or town's median family income based upon the1990 federal census is less than the statewide median familyincome based upon the 1990 federal census, or
(c) if the estimated market value of the house is $300,000or more on January 2 of the current year, the property qualifiesif
(i) it is located in a city or town in which 45 percent ormore of the homes were constructed before 1940 based upon the1990 federal census, and
(ii) it is located in a city or town in which 45 percent ormore of the housing units were rental based upon the 1990 federalcensus, and
(iii) the city or town's median value of owner occupiedhousing units based upon the 1990 federal census is less than thestatewide median value of owner occupied housing units based uponthe 1990 federal census.
Any house which has an estimated market value of $300,000 ormore on January 2 of the current year is not eligible to receiveany property valuation exclusion under this section. Forpurposes of determining this eligibility, "house" means land andbuildings.
The age of a residence is the number of years that theresidence has existed at its present site. In the case of anowner-occupied duplex or triplex, the improvement is eligibleregardless of which portion of the property was improved.
If the property lies in a jurisdiction which is subject to abuilding permit process, a building permit must have been issuedprior to commencement of the improvement. Any improvement mustadd at least $1,000 to the value of the property to be eligiblefor exclusion under this subdivision. Only improvements to thestructure which is the residence of the qualifying homesteader orconstruction of or improvements to no more than one two-cargarage per residence qualify for the provisions of thissubdivision. If an improvement was begun between January 2,1992, and January 2, 1993, any value added from that improvementfor the January 1994 and subsequent assessments shall qualify forexclusion under this subdivision provided that a building permitwas obtained for the improvement between January 2, 1992, andJanuary 2, 1993. Whenever a building permit is issued forproperty currently classified as homestead, the issuingjurisdiction shall notify the property owner of the possibilityof valuation exclusion under
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9793this subdivision. The assessor shall require an application,including documentation of the age of the house from the owner,if unknown by the assessor. The application may be filedsubsequent to the date of the building permit provided that theapplication must be filed prior to July 1 of the assessmentyear in which the market value from the qualifying improvement isadded to that property's assessment within three years ofthe date the building permit was issued for the improvement. Ifthe property lies in a jurisdiction which is not subject to abuilding permit process, the application must be filed withinthree years of the date the improvement was made. The assessormay require proof from the taxpayer of the date the improvementwas made. Applications must be received prior to July 1 of anyyear in order to be effective for taxes payable in the followingyear.
After the adjournment of the 1994 county board ofequalization meetings, No exclusion may be granted for animprovement by a local board of review or county board ofequalization and no abatement of the taxes for qualifyingimprovements may be granted by the county board unless (1) abuilding permit was issued prior to the commencement of theimprovement if the jurisdiction requires a building permit, and(2) an application was completed on a timely basis. Noabatement of the taxes for qualifying improvements may be grantedby a county board unless (1) a building permit was issued priorto commencement of the improvement if the jurisdiction requires abuilding permit, and (2) an application was completed on a timelybasis.
The assessor shall note the qualifying value of eachimprovement on the property's record, and the sum of thoseamounts shall be subtracted from the value of the property ineach year for ten years after the improvement has been made, atwhich time an amount equal to 20 percent of the qualifying valueshall be added back in each of the five subsequent assessmentyears. If an application is filed after the first assessmentdate at which an improvement could have been subject to thevaluation exclusion under this subdivision, the ten-year periodduring which the value is subject to exclusion is reduced by thenumber of years that have elapsed since the property would havequalified initially. The valuation exclusion shall terminatewhenever (1) the property is sold, or (2) the property isreclassified to a class which does not qualify for treatmentunder this subdivision. Improvements made by an occupant who isthe purchaser of the property under a conditional purchasecontract do not qualify under this subdivision unless the sellerof the property is a governmental entity. The qualifying valueof the property shall be computed based upon the increase fromthat structure's market value as of January 2 preceding theacquisition of the property by the governmental entity.
The total qualifying value for a homestead may not exceed$50,000. The total qualifying value for a homestead with a housethat is less than 70 years old may not exceed $25,000. The term"qualifying value" means the increase in estimated market valueresulting from the improvement if the improvement occurs when thehouse is at least 70 years old, or one-half of the increase inestimated market value resulting from the improvement otherwise. The $25,000 and $50,000 maximum qualifying value under thissubdivision may result from up to three separate improvements tothe homestead. The application shall state, in clear language,that if more than three improvements are made to the qualifyingproperty, a taxpayer may choose which three improvements areeligible, provided that after the taxpayer has made the choiceand any valuation attributable to those improvements has beenexcluded from taxation, no further changes can be made by thetaxpayer.
If 50 percent or more of the square footage of a structure isvoluntarily razed or removed, the valuation increase attributableto any subsequent improvements to the remaining structure doesnot qualify for the exclusion under this subdivision. If astructure is unintentionally or accidentally destroyed by anatural disaster, the property is eligible for an exclusion underthis subdivision provided that the structure was not completelydestroyed. The qualifying value on property destroyed by anatural disaster shall be computed based upon the increase fromthat structure's market value as determined on January 2 of theyear in which the disaster occurred. A property receivingbenefits under the homestead disaster provisions under section273.123 is not disqualified from receiving an exclusion underthis subdivision. If any combination of improvements made to astructure after January 1, 1993, increases the size of thestructure by 100 percent or more, the valuation increaseattributable to the portion of the improvement that causes thestructure's size to exceed 100 percent does not qualify forexclusion under this subdivision.
Sec. 6. Minnesota Statutes 1994, section 273.111, subdivision3, is amended to read:
Subd. 3. (a) Real estate consisting of ten acres or more or anursery or greenhouse, and qualifying for classificationas class 1b, 2a, or 2b under section 273.13, subdivision 23,paragraph (d), shall be entitled to valuation and tax defermentunder this section only if it is actively and exclusively devotedto agricultural use as defined in subdivision 6 and either:
(1) is the homestead of the owner, or of a surviving spouse,child, or sibling of the owner or is real estate which is farmedwith the real estate which contains the homestead property; or
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9794(2) has been in possession of the applicant, the applicant'sspouse, parent, or sibling, or any combination thereof, for aperiod of at least seven years prior to application for benefitsunder the provisions of this section, or is real estate which isfarmed with the real estate which qualifies under this clause andis within two townships or cities or combination thereof from thequalifying real estate; or
(3) is the homestead of a shareholder in a family farmcorporation as defined in section 500.24, notwithstanding thefact that legal title to the real estate may be held in the nameof the family farm corporation; or
(4) is in the possession of a nursery or greenhouse or anentity owned by a proprietor, partnership, or corporation whichalso owns the nursery or greenhouse operations on the parcel orparcels.
(b) Valuation of real estate under this section is limited toparcels the ownership of which is in noncorporate entities exceptfor:
(1) family farm corporations organized pursuant to section500.24; and
(2) corporations that derive 80 percent or more of their grossreceipts from the wholesale or retail sale of horticultural ornursery stock.
Corporate entities who previously qualified for tax defermentpursuant to this section and who continue to otherwise qualifyunder subdivisions 3 and 6 for a period of at least three yearsfollowing the effective date of Laws 1983, chapter 222, section8, will not be required to make payment of the previouslydeferred taxes, notwithstanding the provisions of subdivision 9. Sale of the land prior to the expiration of the three-yearperiod shall result in payment of deferred taxes as follows: sale within the first year requires payment of payable 1980,1981, and 1982 deferred taxes; sale during the second yearrequires payment of payable 1981 and 1982 taxes deferred; andsale at any time during the third year will require payment ofpayable 1983 taxes deferred. Deferred taxes shall be paid evenif the land qualifies pursuant to subdivision 11a. Specialassessments are payable at the end of the three-year period or attime of sale, whichever comes first.
(c) Land that previously qualified for tax defermentpursuant to this section and no longer qualifies because it isnot classified as agricultural land but would otherwise qualifyunder subdivisions 3 and 6 for a period of at least three yearswill not be required to make payment of the previously deferredtaxes, notwithstanding the provisions of subdivision 9. Sale ofthe land prior to the expiration of the three-year periodrequires payment of deferred taxes as follows: sale in the yearthe land no longer qualifies requires payment of the currentyear's deferred taxes plus payment of deferred taxes for the twoprior years; sale during the second year the land no longerqualifies requires payment of the current year's deferred taxesplus payment of the deferred taxes for the prior year; and saleduring the third year the land no longer qualifies requirespayment of the current year's deferred taxes. Deferred taxesshall be paid even if the land qualifies pursuant to subdivision11a. When such property is sold or no longer qualifies underthis paragraph, or at the end of the three-year period, whichevercomes first, all deferred special assessments plus interest arepayable in equal installments spread over the time remaininguntil the last maturity date of the bonds issued to finance theimprovement for which the assessments were levied. If the bondshave matured, the deferred special assessments plus interest arepayable within 90 days. The provisions of section 429.061,subdivision 2, apply to the collection of these installments. Penalties are not imposed on any such special assessments iftimely paid.
Sec. 7. Minnesota Statutes 1995 Supplement, section 273.124,subdivision 1, is amended to read:
Subdivision 1. [GENERAL RULE.] (a) Residential real estatethat is occupied and used for the purposes of a homestead by itsowner, who must be a Minnesota resident, is a residentialhomestead.
Agricultural land, as defined in section 273.13, subdivision23, that is occupied and used as a homestead by its owner, whomust be a Minnesota resident, is an agricultural homestead.
Dates for establishment of a homestead and homestead treatmentprovided to particular types of property are as provided in thissection.
Property of a trustee, beneficiary, or grantor of a trust isnot disqualified from receiving homestead benefits if thehomestead requirements under this chapter are satisfied.
The assessor shall require proof, as provided in subdivision13, of the facts upon which classification as a homestead may bedetermined. Notwithstanding any other law, the assessor may atany time require a homestead application to be filed in order toverify that any property classified as a homestead continues tobe eligible for
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9795homestead status. Notwithstanding any other law to the contrary,the department of revenue may, upon request from an assessor,verify whether an individual who is requesting or receivinghomestead classification has filed a Minnesota income tax returnas a resident for the most recent taxable year for which theinformation is available.
When there is a name change or a transfer of homesteadproperty, the assessor may reclassify the property in the nextassessment unless a homestead application is filed to verify thatthe property continues to qualify for homesteadclassification.
(b) For purposes of this section, homestead property shallinclude property which is used for purposes of the homestead butis separated from the homestead by a road, street, lot, waterway,or other similar intervening property. The term "used forpurposes of the homestead" shall include but not be limited touses for gardens, garages, or other outbuildings commonlyassociated with a homestead, but shall not include vacant landheld primarily for future development. In order to receivehomestead treatment for the noncontiguous property, the ownershall apply for it to the assessor by July 1 of the year when thetreatment is initially sought. After initial qualification forthe homestead treatment, additional applications for subsequentyears are not required.
(c) Residential real estate that is occupied and used forpurposes of a homestead by a relative of the owner is a homesteadbut only to the extent of the homestead treatment that would beprovided if the related owner occupied the property. For purposesof this paragraph and paragraph (f), "relative" means a parent,stepparent, child, stepchild, grandparent, grandchild, brother,sister, uncle, or aunt. This relationship may be by blood ormarriage. Property that has been classified as seasonalrecreational residential property at any time during which ithas been owned by the current owner or spouse of the currentowner will not be reclassified as a homestead unless it isoccupied as a homestead by the owner; this prohibition alsoapplies to property that, in the absence of this paragraph, wouldhave been classified as seasonal recreational residentialproperty at the time when the residence was constructed. Neitherthe related occupant nor the owner of the property may claim aproperty tax refund under chapter 290A for a homestead occupiedby a relative. In the case of a residence located onagricultural land, only the house, garage, and immediatelysurrounding one acre of land shall be classified as a homesteadunder this paragraph, except as provided in paragraph (d).
(d) Agricultural property that is occupied and used forpurposes of a homestead by a relative of the owner, is ahomestead, only to the extent of the homestead treatment thatwould be provided if the related owner occupied the property, andonly if all of the following criteria are met:
(1) the relative who is occupying the agricultural property isa son, daughter, father, or mother of the owner of theagricultural property or a son or daughter of the spouse of theowner of the agricultural property,
(2) the owner of the agricultural property must be a Minnesotaresident,
(3) the owner of the agricultural property must not receivehomestead treatment on any other agricultural property inMinnesota, and
(4) the owner of the agricultural property is limited to onlyone agricultural homestead per family under this paragraph.
Neither the related occupant nor the owner of the property mayclaim a property tax refund under chapter 290A for a homesteadoccupied by a relative qualifying under this paragraph. Forpurposes of this paragraph, "agricultural property" means thehouse, garage, other farm buildings and structures, andagricultural land.
Application must be made to the assessor by the owner of theagricultural property to receive homestead benefits under thisparagraph. The assessor may require the necessary proof that therequirements under this paragraph have been met.
(e) In the case of property owned by a property owner who ismarried, the assessor must not deny homestead treatment in wholeor in part if only one of the spouses occupies the property andthe other spouse is absent due to: (1) marriage dissolutionproceedings, (2) legal separation, (3) employment orself-employment in another location, (4) residence in a nursinghome or boarding care facility, or (5) other personalcircumstances causing the spouses to live separately, notincluding an intent to obtain two homestead classifications forproperty tax purposes. To qualify under clause (3), the spouse'splace of employment or self-employment must be at least 50 milesdistant from the other spouse's place of employment, and thehomesteads must be at least 50 miles distant from each other. Homestead treatment, in whole or in part, shall not be denied tothe spouse of an owner if he or she previously occupied theresidence with the owner and the absence of the owner is due toone of the exceptions provided in this paragraph.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9796(f) If an individual is purchasing property with the intent ofclaiming it as a homestead and is required by the terms of thefinancing agreement to have a relative shown on the deed as acoowner, the assessor shall allow a full homesteadclassification. This provision only applies to first-timepurchasers, whether married or single, or to a person who hadpreviously been married and is purchasing as a single individualfor the first time. The application for homestead benefits mustbe on a form prescribed by the commissioner and must contain thedata necessary for the assessor to determine if full homesteadbenefits are warranted.
Sec. 8. Minnesota Statutes 1995 Supplement, section 273.124,subdivision 3, is amended to read:
Subd. 3. [COOPERATIVES AND CHARITABLE CORPORATIONS;HOMESTEAD AND OTHER PROPERTY.] (a) When one or moredwellings, or one or more buildings which each contain severaldwelling units, are property is owned by a corporationor association organized under chapter 308A, and each person whoowns a share or shares in the corporation or association isentitled to occupy a dwelling building on theproperty, or dwelling a unit in thewithin a building on the property, the corporationor association may claim homestead treatment for each dwelling,or for each unit in the case of a building containingseveral dwelling units, for the dwelling or for the partof the value of the building occupied by a shareholder. Eachdwelling building or unit must be designated bylegal description or number, and. The net taxcapacity of each dwelling building or unit thatqualifies for assessment as a homestead under thissubdivision must include not more than one-half acre of land, ifplatted, nor more than 80 acres if unplatted. The net taxcapacity of the building or buildings containing severaldwelling units property is the sum of the net taxcapacities of each of the respective buildings or unitscomprising the building property, including the net taxcapacity of each unit's or building's proportionate share of theland and any common buildings. To qualify for the treatmentprovided by this subdivision, the corporation or association mustbe wholly owned by persons having a right to occupy adwelling building or dwelling unit owned bythe corporation or association. A charitable corporationorganized under the laws of Minnesota and not otherwise exemptthereunder with no outstanding stock qualifies for homesteadtreatment with respect to member residents of the dwelling unitswho have purchased and hold residential participation warrantsentitling them to occupy the units.
(b) To the extent provided in paragraph (a), a cooperativeor corporation organized under chapter 308A may obtain separateassessment and valuation, and separate property tax statementsfor each residential homestead, residential nonhomestead, or foreach seasonal residential recreational building or unit not usedfor commercial purposes. The appropriate class rates undersection 273.13 shall be applicable as if each building or unitwere a separate tax parcel; provided, however, that the taxparcel which exists at the time the cooperative or corporationmakes application under this subdivision shall be a single parcelfor purposes of property taxes or the enforcement and collectionthereof, other than as provided in paragraph (a) or (b).
(c) A member of a corporation or association may initiallyobtain the separate assessment and valuation and separateproperty tax statements, as provided in paragraph (b), byapplying to the assessor by June 30 of the assessmentyear.
(d) When a building, or dwelling units withina building, no longer qualify under this subdivisionparagraph (a) or (b), the current owner must notify theassessor within 60 30 days. Failure to notify theassessor within 60 30 days shall result in the lossof benefits under this subdivision paragraph (a) or(b) for taxes payable in the year that the failure isdiscovered. For these purposes, "benefits under thissubdivision paragraph (a) or (b)" means the differencein the net tax capacity of the building or units which nolonger qualify as computed under this subdivisionparagraph (a) or (b) and as computed under the otherwiseapplicable law, times the local tax rate applicable to thebuilding for that taxes payable year. Upon discovery of afailure to notify, the assessor shall inform the auditor of thedifference in net tax capacity for the building or buildings inwhich units no longer qualify, and the auditor shall calculatethe benefits under this subdivision paragraph (a) or(b). Such amount, plus a penalty equal to 100 percent ofthat amount, shall then be demanded of the building's owner. Theproperty owner may appeal the county's determination by servingcopies of a petition for review with county officials as providedin section 278.01 and filing a proof of service as provided insection 278.01 with the Minnesota tax court within 60 days of thedate of the notice from the county. The appeal shall be governedby the tax court procedures provided in chapter 271, for casesrelating to the tax laws as defined in section 271.01,subdivision 5; disregarding sections 273.125, subdivision 5, and278.03, but including section 278.05, subdivision 2. If theamount of the benefits under this subdivision paragraph(a) or (b) and penalty are not paid within 60 days, and if noappeal has been filed, the county auditor shall certify theamount of the benefit and penalty to the succeeding year's taxlist to be collected as part of the property taxes on theaffected buildings property.
Sec. 9. Minnesota Statutes 1995 Supplement, section 273.124,subdivision 13, is amended to read:
Subd. 13. [HOMESTEAD APPLICATION.] (a) A person who meets thehomestead requirements under subdivision 1 must file a homesteadapplication with the county assessor to initially obtainhomestead classification.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9797(b) On or before January 2, 1993, each county assessor shallmail a homestead application to the owner of each parcel ofproperty within the county which was classified as homestead forthe 1992 assessment year. The format and contents of a uniformhomestead application shall be prescribed by the commissioner ofrevenue. The commissioner shall consult with the chairs of thehouse and senate tax committees on the contents of the homesteadapplication form. The application must clearly inform thetaxpayer that this application must be signed by all owners whooccupy the property or by the qualifying relative and returned tothe county assessor in order for the property to continuereceiving homestead treatment. The envelope containing thehomestead application shall clearly identify its contents andalert the taxpayer of its necessary immediate response.
(c) Every property owner applying for homestead classificationmust furnish to the county assessor the social security number ofeach occupant who is listed as an owner of the property on thedeed of record, the name and address of each owner who does notoccupy the property, and the name and social security number ofeach owner's spouse who occupies the property. The applicationmust be signed by each owner who occupies the property and byeach owner's spouse who occupies the property, or, in the case ofproperty that qualifies as a homestead under subdivision 1,paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner'sspouse may not claim another property as a homestead unless theproperty owner and the property owner's spouse file with theassessor an affidavit or other proof required by the assessorstating that the property qualifies as a homestead undersubdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spousesand previously occupied with the other spouse, either of whomfail to include the other spouse's name and social securitynumber on the homestead application or provide the affidavits orother proof requested, will be deemed to have elected to receiveonly partial homestead treatment of their residence. Theremainder of the residence will be classified as nonhomesteadresidential. When an owner or spouse's name and social securitynumber appear on homestead applications for two separateresidences and only one application is signed, the owner orspouse will be deemed to have elected to homestead the residencefor which the application was signed.
The social security numbers or affidavits or other proofs ofthe property owners and spouses are private data on individualsas defined by section 13.02, subdivision 12, but, notwithstandingthat section, the private data may be disclosed to thecommissioner of revenue, or, for purposes of proceeding under therevenue recapture act to recover personal property taxes owing,to the county treasurer.
(d) If residential real estate is occupied and used forpurposes of a homestead by a relative of the owner and qualifiesfor a homestead under subdivision 1, paragraph (c), in order forthe property to receive homestead status, a homestead applicationmust be filed with the assessor. The social security number ofeach relative occupying the property and the social securitynumber of each owner who is related to an occupant of theproperty shall be required on the homestead application filedunder this subdivision. If a different relative of the ownersubsequently occupies the property, the owner of the propertymust notify the assessor within 30 days of the change inoccupancy. The social security number of a relative occupyingthe property is private data on individuals as defined by section13.02, subdivision 12, but may be disclosed to the commissionerof revenue.
(e) The homestead application shall also notify the propertyowners that the application filed under this section will not bemailed annually and that if the property is granted homesteadstatus for the 1993 assessment, or any assessment yearthereafter, that same property shall remain classified ashomestead until the property is sold or transferred to anotherperson, or the owners, the spouse of the owner, or the relativesno longer use the property as their homestead. Upon the sale ortransfer of the homestead property, a certificate of value mustbe timely filed with the county auditor as provided under section272.115. Failure to notify the assessor within 30 days that theproperty has been sold, transferred, or that the owner, thespouse of the owner, or the relative is no longer occupying theproperty as a homestead, shall result in the penalty providedunder this subdivision and the property will lose its currenthomestead status.
(f) If the homestead application is not returned within 30days, the county will send a second application to the presentowners of record. The notice of proposed property taxes preparedunder section 275.065, subdivision 3, shall reflect theproperty's classification. Beginning with assessment year 1993for all properties, If a homestead application has not been filedwith the county by December 15, the assessor shall classify theproperty as nonhomestead for the current assessment year fortaxes payable in the following year, provided that the owner maybe entitled to receive the homestead classification by properapplication under section 375.192.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9798(g) At the request of the commissioner, each county must givethe commissioner a list that includes the name and socialsecurity number of each property owner and the property owner'sspouse occupying the property, or relative of a property owner,applying for homestead classification under this subdivision. Thecommissioner shall use the information provided on the lists asappropriate under the law, including for the detection ofimproper claims by owners, or relatives of owners, under chapter290A.
(h) If, in comparing the lists supplied by the counties,the commissioner finds that a property owner may be claiming afraudulent homestead, the commissioner shall notify theappropriate counties. Within 90 days of the notification, thecounty assessor shall investigate to determine if the homesteadclassification was properly claimed. If the property owner doesnot qualify, the county assessor shall notify the county auditorwho will determine the amount of homestead benefits that had beenimproperly allowed. For the purpose of this section, "homesteadbenefits" means the tax reduction resulting from theclassification as a homestead under section 273.13, the taconitehomestead credit under section 273.135, and the supplementalhomestead credit under section 273.1391.
The county auditor shall send a notice to the person whoowned the owners of the affected property at thetime the homestead application related to the improper homesteadwas filed, demanding reimbursement of the homestead benefitsplus a penalty equal to 100 percent of the homestead benefits.The property owners person notified may appeal thecounty's determination by filing a notice of appealserving copies of a petition for review with county officialsas provided in section 278.01 and filing proof of service asprovided in section 278.01 with the Minnesota tax courtwithin 60 days of the date of the notice from the county. Procedurally, the appeal is governed by the provisions inchapter 271 which apply to the appeal of a property taxassessment or levy, but without requiring any prepayment of theamount in controversy. If the amount of homestead benefitsand penalty is not paid within 60 days, and if no appeal has beenfiled, the county auditor shall certify the amount of taxes andpenalty to the succeeding year's tax list to be collected aspart of the property taxes. In the case of a manufactured home,the amount shall be certified to the current year's tax list forcollection county treasurer. The county treasurer willadd interest to the unpaid homestead benefits and penalty amountsat the rate provided for delinquent personal property taxes forthe period beginning 60 days after demand for payment was madeuntil payment. If the person notified is the current owner ofthe property, the treasurer may add the total amount of benefits,penalty, interest, and costs to the real estate taxes otherwisepayable on the property in the following year. If the personnotified is not the current owner of the property, the treasurermay collect the amounts due under the revenue recapture act inchapter 270A, or use any of the powers granted in sections 277.20and 277.21 without exclusion, to enforce payment of the benefits,penalty, interest, and costs, as if those amounts were delinquenttax obligations of the person who owned the property at the timethe application related to the improperly allowed homestead wasfiled. The treasurer may relieve a prior owner of personalliability for the benefits, penalty, interest, and costs, andinstead extend those amounts on the tax lists against theproperty for taxes payable in the following year to the extentthat the current owner agrees in writing.
(i) Any amount of homestead benefits recovered by the countyfrom the property owner shall be distributed to the county, cityor town, and school district where the property is located in thesame proportion that each taxing district's levy was to the totalof the three taxing districts' levy for the current year. Anyamount recovered attributable to taconite homestead credit shallbe transmitted to the St. Louis county auditor to be deposited inthe taconite property tax relief account. Any amountrecovered that is attributable to supplemental homestead creditis to be transmitted to the commissioner of revenue for depositin the general fund of the state treasury. The total amountof penalty collected must be deposited in the county generalfund.
(j) If a property owner has applied for more than one homesteadand the county assessors cannot determine which property shouldbe classified as homestead, the county assessors will refer theinformation to the commissioner. The commissioner shall make thedetermination and notify the counties within 60 days.
(k) In addition to lists of homestead properties, thecommissioner may ask the counties to furnish lists of allproperties and the record owners.
Sec. 10. Minnesota Statutes 1994, section 273.13, subdivision22, is amended to read:
Subd. 22. [CLASS 1.] (a) Except as provided in subdivision 23,real estate which is residential and used for homestead purposesis class 1. The market value of class 1a property must bedetermined based upon the value of the house, garage, andland.
The first $72,000 of market value of class 1a property has anet class rate of one percent of its market value and a grossclass rate of 2.17 percent of its market value. For taxespayable in 1992, the market value of class 1a property thatexceeds $72,000 but does not exceed $115,000 has a class rate oftwo percent of its market value; and the market value of class 1aproperty that exceeds $115,000 has a class rate of 2.5 percent ofits market value. For taxes payable in 1993 and thereafter, themarket value of class 1a property that exceeds $72,000 has aclass rate of two percent.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9799(b) Class 1b property includes homestead real estate orhomestead manufactured homes used for the purposes of a homesteadby
(1) any blind person, or the blind person and the blindperson's spouse; or
(2) any person, hereinafter referred to as "veteran," who:
(i) served in the active military or naval service of theUnited States; and
(ii) is entitled to compensation under the laws and regulationsof the United States for permanent and total service-connecteddisability due to the loss, or loss of use, by reason ofamputation, ankylosis, progressive muscular dystrophies, orparalysis, of both lower extremities, such as to preclude motionwithout the aid of braces, crutches, canes, or a wheelchair;and
(iii) has acquired a special housing unit with special fixturesor movable facilities made necessary by the nature of theveteran's disability, or the surviving spouse of the deceasedveteran for as long as the surviving spouse retains the specialhousing unit as a homestead; or
(3) any person who:
(i) is permanently and totally disabled and
(ii) receives 90 percent or more of total income from
(A) aid from any state as a result of that disability; or
(B) supplemental security income for the disabled; or
(C) workers' compensation based on a finding of total andpermanent disability; or
(D) social security disability, including the amount of adisability insurance benefit which is converted to an old ageinsurance benefit and any subsequent cost of living increases;or
(E) aid under the federal Railroad Retirement Act of 1937,United States Code Annotated, title 45, section 228b(a)5; or
(F) a pension from any local government retirement fund locatedin the state of Minnesota as a result of that disability; or
(G) pension, annuity, or other income paid as a result ofthat disability from a private pension or disability plan,including employer, employee, union, and insurance plansand
(iii) has household income as defined in section 290A.03,subdivision 5, of $50,000 or less; or
(4) any person who is permanently and totally disabled andwhose household income as defined in section 290A.03, subdivision5, is 150 percent or less of the federal poverty level.
Property is classified and assessed under clause (4) only ifthe government agency or income-providing source certifies, uponthe request of the homestead occupant, that the homesteadoccupant satisfies the disability requirements of thisparagraph.
Property is classified and assessed pursuant to clause (1) onlyif the commissioner of economic security certifies to theassessor that the homestead occupant satisfies the requirementsof this paragraph.
Permanently and totally disabled for the purpose of thissubdivision means a condition which is permanent in nature andtotally incapacitates the person from working at an occupationwhich brings the person an income. The first $32,000 marketvalue of class 1b property has a net class rate of .45 percent ofits market value and a gross class rate of .87 percent of itsmarket value. The remaining market value of class 1b propertyhas a gross or net class rate using the rates for class 1 orclass 2a property, whichever is appropriate, of similar marketvalue.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9800(c) Class 1c property is commercial use real property thatabuts a lakeshore line and is devoted to temporary and seasonalresidential occupancy for recreational purposes but not devotedto commercial purposes for more than 250 days in the yearpreceding the year of assessment, and that includes a portionused as a homestead by the owner, which includes a dwellingoccupied as a homestead by a shareholder of a corporation thatowns the resort or a partner in a partnership that owns theresort, even if the title to the homestead is held by thecorporation or partnership. For purposes of this clause,property is devoted to a commercial purpose on a specific day ifany portion of the property, excluding the portion usedexclusively as a homestead, is used for residential occupancy anda fee is charged for residential occupancy. Class 1c propertyhas a class rate of one percent of total market value for taxespayable in 1993 and thereafter with the following limitation: the area of the property must not exceed 100 feet of lakeshorefootage for each cabin or campsite located on the property up toa total of 800 feet and 500 feet in depth, measured away from thelakeshore.
Sec. 11. Minnesota Statutes 1994, section 273.13, subdivision23, is amended to read:
Subd. 23. [CLASS 2.] (a) Class 2a property is agriculturalland including any improvements that is homesteaded. The marketvalue of the house and garage and immediately surrounding oneacre of land has the same class rates as class 1a property undersubdivision 22. The value of the remaining land includingimprovements up to $115,000 has a net class rate of .45 percentof market value and a gross class rate of 1.75 percent of marketvalue. The remaining value of class 2a property over $115,000 ofmarket value that does not exceed 320 acres has a net class rateof one percent of market value, and a gross class rate of 2.25percent of market value. The remaining property over the$115,000 market value in excess of 320 acres has a class rate of1.5 percent of market value, and a gross class rate of 2.25percent of market value.
(b) Class 2b property is (1) real estate, rural in characterand used exclusively for growing trees for timber, lumber, andwood and wood products; (2) real estate that is not improved witha structure and is used exclusively for growing trees for timber,lumber, and wood and wood products, if the owner has participatedor is participating in a cost-sharing program for afforestation,reforestation, or timber stand improvement on that particularproperty, administered or coordinated by the commissioner ofnatural resources; (3) real estate that is nonhomesteadagricultural land; or (4) a landing area or public access area ofa privately owned public use airport. Class 2b property has anet class rate of 1.5 percent of market value, and a gross classrate of 2.25 percent of market value.
(c) Agricultural land as used in this section means contiguousacreage of ten acres or more, primarily used during the precedingyear for agricultural purposes. Agricultural use may includepasture, timber, waste, unusable wild land, and land included instate or federal farm or conservation programs."Agricultural purposes" as used in this section means the raisingor cultivation of agricultural products. Land enrolled in theReinvest in Minnesota program under sections 103F.505 to 103F.531or the federal Conservation Reserve Program as contained inPublic Law Number 99-198, and consisting of a minimum of tencontiguous acres, shall be classified as agricultural. Agricultural classification for property shall be determined withrespect to the use of the whole parcel, and not based upon themarket value of any residential structures on the parcel orcontiguous parcels under the same ownership.
(d) Real estate of less than ten acres used principally forraising or cultivating agricultural products, shall be consideredas agricultural land, if it is not used primarily for residentialpurposes.
(e) The term "agricultural products" as used in thissubdivision includes:
(1) livestock, dairy animals, dairy products, poultry andpoultry products, fur-bearing animals, horticultural and nurserystock described in sections 18.44 to 18.61, fruit of all kinds,vegetables, forage, grains, bees, and apiary products by theowner;
(2) fish bred for sale and consumption if the fish breedingoccurs on land zoned for agricultural use;
(3) the commercial boarding of horses if the boarding is donein conjunction with raising or cultivating agricultural productsas defined in clause (1);
(4) property which is owned and operated by nonprofitorganizations used for equestrian activities, excluding racing;and
(5) game birds and waterfowl bred and raised for use on ashooting preserve licensed under section 97A.115.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9801(f) If a parcel used for agricultural purposes is also used forcommercial or industrial purposes, including but not limitedto:
(1) wholesale and retail sales;
(2) processing of raw agricultural products or other goods;
(3) warehousing or storage of processed goods; and
(4) office facilities for the support of the activitiesenumerated in clauses (1), (2), and (3),
the assessor shall classify the part of the parcel used foragricultural purposes as class 1b, 2a, or 2b, whichever isappropriate, and the remainder in the class appropriate to itsuse. The grading, sorting, and packaging of raw agriculturalproducts for first sale is considered an agricultural purpose. Agreenhouse or other building where horticultural or nurseryproducts are grown that is also used for the conduct of retailsales must be classified as agricultural if it is primarily usedfor the growing of horticultural or nursery products from seed,cuttings, or roots and occasionally as a showroom for the retailsale of those products. Use of a greenhouse or building only forthe display of already grown horticultural or nursery productsdoes not qualify as an agricultural purpose.
The assessor shall determine and list separately on the recordsthe market value of the homestead dwelling and the one acre ofland on which that dwelling is located. If any farm buildings orstructures are located on this homesteaded acre of land, theirmarket value shall not be included in this separatedetermination.
(g) To qualify for classification under paragraph (b), clause(4), a privately owned public use airport must be licensed as apublic airport under section 360.018. For purposes of paragraph(b), clause (4), "landing area" means that part of a privatelyowned public use airport properly cleared, regularly maintained,and made available to the public for use by aircraft and includesrunways, taxiways, aprons, and sites upon which are situatedlanding or navigational aids. A landing area also includes landunderlying both the primary surface and the approach surfacesthat comply with all of the following:
(i) the land is properly cleared and regularly maintained forthe primary purposes of the landing, taking off, and taxiing ofaircraft; but that portion of the land that contains facilitiesfor servicing, repair, or maintenance of aircraft is not includedas a landing area;
(ii) the land is part of the airport property; and
(iii) the land is not used for commercial or residentialpurposes.
The land contained in a landing area under paragraph (b), clause(4), must be described and certified by the commissioner oftransportation. The certification is effective until it ismodified, or until the airport or landing area no longer meetsthe requirements of paragraph (b), clause (4). For purposes ofparagraph (b), clause (4), "public access area" means propertyused as an aircraft parking ramp, apron, or storage hangar, or anarrival and departure building in connection with the airport.
Sec. 12. Minnesota Statutes 1995 Supplement, section 273.13,subdivision 25, is amended to read:
Subd. 25. [CLASS 4.] (a) Class 4a is residential real estatecontaining four or more units and used or held for use by theowner or by the tenants or lessees of the owner as a residencefor rental periods of 30 days or more. Class 4a also includeshospitals licensed under sections 144.50 to 144.56, other thanhospitals exempt under section 272.02, and contiguous propertyused for hospital purposes, without regard to whether theproperty has been platted or subdivided. Class 4a property in acity with a population of 5,000 or less, that is (1) locatedoutside of the metropolitan area, as defined in section 473.121,subdivision 2, or outside any county contiguous to themetropolitan area, and (2) whose city boundary is at least 15miles from the boundary of any city with a population greaterthan 5,000 has a class rate of 2.3 percent of market value fortaxes payable in 1996 and thereafter. All other class 4aproperty has a class rate of 3.4 percent of market value fortaxes payable in 1996 and thereafter. For purposes of thisparagraph, population has the same meaning given in section477A.011, subdivision 3.
(b) Class 4b includes:
(1) residential real estate containing less than four units,other than seasonal residential, and recreational;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9802(2) manufactured homes not classified under any otherprovision;
(3) a dwelling, garage, and surrounding one acre of property ona nonhomestead farm classified under subdivision 23, paragraph(b).
Class 4b property has a class rate of 2.8 percent of marketvalue for taxes payable in 1992, 2.5 percent of market value fortaxes payable in 1993, and 2.3 percent of market value for taxespayable in 1994 and thereafter.
(c) Class 4c property includes:
(1) a structure that is:
(i) situated on real property that is used for housing for theelderly or for low- and moderate-income families as defined inTitle II, as amended through December 31, 1990, of the NationalHousing Act or the Minnesota housing finance agency law of 1971,as amended, or rules promulgated by the agency and financed by adirect federal loan or federally insured loan made pursuant toTitle II of the Act; or
(ii) situated on real property that is used for housing theelderly or for low- and moderate-income families as defined bythe Minnesota housing finance agency law of 1971, as amended, orrules adopted by the agency pursuant thereto and financed by aloan made by the Minnesota housing finance agency pursuant to theprovisions of the act.
This clause applies only to property of a nonprofit or limiteddividend entity. Property is classified as class 4c under thisclause for 15 years from the date of the completion of theoriginal construction or substantial rehabilitation, or for theoriginal term of the loan.
(2) a structure that is:
(i) situated upon real property that is used for housing lowerincome families or elderly or handicapped persons, as defined insection 8 of the United States Housing Act of 1937, as amended;and
(ii) owned by an entity which has entered into a housingassistance payments contract under section 8 which providesassistance for 100 percent of the dwelling units in thestructure, other than dwelling units intended for management ormaintenance personnel. Property is classified as class 4c underthis clause for the term of the housing assistance paymentscontract, including all renewals, or for the term of itspermanent financing, whichever is shorter; and
(3) a qualified low-income building as defined in section42(c)(2) of the Internal Revenue Code of 1986, as amended throughDecember 31, 1990, that (i) receives a low-income housing creditunder section 42 of the Internal Revenue Code of 1986, as amendedthrough December 31, 1990; or (ii) meets the requirements of thatsection and receives public financing, except financing providedunder sections 469.174 to 469.179, which contains termsrestricting the rents; or (iii) meets the requirements of section273.1317. Classification pursuant to this clause is limited to aterm of 15 years. The public financing received must be from atleast one of the following sources: government issued bondsexempt from taxes under section 103 of the Internal Revenue Codeof 1986, as amended through December 31, 1993, the proceeds ofwhich are used for the acquisition or rehabilitation of thebuilding; programs under section 221(d)(3), 202, or 236, of TitleII of the National Housing Act; rental housing program fundsunder Section 8 of the United States Housing Act of 1937 or themarket rate family graduated payment mortgage program fundsadministered by the Minnesota housing finance agency that areused for the acquisition or rehabilitation of the building;public financing provided by a local government used for theacquisition or rehabilitation of the building, including grantsor loans from federal community development block grants, HOMEblock grants, or residential rental bonds issued under chapter474A; or other rental housing program funds provided by theMinnesota housing finance agency for the acquisition orrehabilitation of the building.
For all properties described in clauses (1), (2), and (3) andin paragraph (d), the market value determined by the assessormust be based on the normal approach to value using normalunrestricted rents unless the owner of the property elects tohave the property assessed under Laws 1991, chapter 291, article1, section 55. If the owner of the property elects to have themarket value determined on the basis of the actual restrictedrents, as provided in Laws 1991, chapter 291, article 1, section55, the property will be assessed at the rate provided for class4a or class 4b property, as appropriate. Properties described inclauses (1)(ii), (3), and (4) may apply to the assessor forvaluation under Laws 1991, chapter 291, article 1, section 55. The land on which these structures are situated has the classrate given in paragraph (b) if the structure contains fewer thanfour units, and the class rate given in paragraph (a) if thestructure contains four or more units. This clause applies onlyto the property of a nonprofit or limited dividend entity.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9803(4) a parcel of land, not to exceed one acre, and itsimprovements or a parcel of unimproved land, not to exceed oneacre, if it is owned by a neighborhood real estate trust and atleast 60 percent of the dwelling units, if any, on all land ownedby the trust are leased to or occupied by lower income familiesor individuals. This clause does not apply to any portion of theland or improvements used for nonresidential purposes. Forpurposes of this clause, a lower income family is a family withan income that does not exceed 65 percent of the median familyincome for the area, and a lower income individual is anindividual whose income does not exceed 65 percent of the medianindividual income for the area, as determined by the UnitedStates Secretary of Housing and Urban Development. For purposesof this clause, "neighborhood real estate trust" means an entitywhich is certified by the governing body of the municipality inwhich it is located to have the following characteristics:
(a) it is a nonprofit corporation organized under chapter317A;
(b) it has as its principal purpose providing housing for lowerincome families in a specific geographic community designated inits articles or bylaws;
(c) it limits membership with voting rights to residents of thedesignated community; and
(d) it has a board of directors consisting of at least sevendirectors, 60 percent of whom are members with voting rights and,to the extent feasible, 25 percent of whom are elected byresident members of buildings owned by the trust; and
(5) except as provided in subdivision 22, paragraph (c), realproperty devoted to temporary and seasonal residential occupancyfor recreation purposes, including real property devoted totemporary and seasonal residential occupancy for recreationpurposes and not devoted to commercial purposes for more than 250days in the year preceding the year of assessment. For purposesof this clause, property is devoted to a commercial purpose on aspecific day if any portion of the property is used forresidential occupancy, and a fee is charged for residentialoccupancy. Class 4c also includes commercial use real propertyused exclusively for recreational purposes in conjunction withclass 4c property devoted to temporary and seasonal residentialoccupancy for recreational purposes, up to a total of two acres,provided the property is not devoted to commercial recreationaluse for more than 250 days in the year preceding the year ofassessment and is located within two miles of the class 4cproperty with which it is used. Class 4c property classified inthis clause also includes the remainder of class 1c resorts. Owners of real property devoted to temporary and seasonalresidential occupancy for recreation purposes and all or aportion of which was devoted to commercial purposes for not morethan 250 days in the year preceding the year of assessmentdesiring classification as class 1c or 4c, must submit adeclaration to the assessor designating the cabins or unitsoccupied for 250 days or less in the year preceding the year ofassessment by January 15 of the assessment year. Those cabins orunits and a proportionate share of the land on which they arelocated will be designated class 1c or 4c as otherwise provided. The remainder of the cabins or units and a proportionate share ofthe land on which they are located will be designated as class3a. The first $100,000 of the market value of the remainder ofthe cabins or units and a proportionate share of the land onwhich they are located shall have a class rate of three percent. The owner of property desiring designation as class 1c or 4cproperty must provide guest registers or other recordsdemonstrating that the units for which class 1c or 4c designationis sought were not occupied for more than 250 days in the yearpreceding the assessment if so requested. The portion of aproperty operated as a (1) restaurant, (2) bar, (3) gift shop,and (4) other nonresidential facility operated on a commercialbasis not directly related to temporary and seasonal residentialoccupancy for recreation purposes shall not qualify for class 1cor 4c;
(6) real property up to a maximum of one acre of land owned bya nonprofit community service oriented organization; providedthat the property is not used for a revenue-producing activityfor more than six days in the calendar year preceding the year ofassessment and the property is not used for residential purposeson either a temporary or permanent basis. For purposes of thisclause, a "nonprofit community service oriented organization"means any corporation, society, association, foundation, orinstitution organized and operated exclusively for charitable,religious, fraternal, civic, or educational purposes, and whichis exempt from federal income taxation pursuant to section501(c)(3), (10), or (19) of the Internal Revenue Code of 1986, asamended through December 31, 1990. For purposes of this clause,"revenue-producing activities" shall include but not be limitedto property or that portion of the property that is used as anon-sale intoxicating liquor or 3.2 percent malt liquorestablishment licensed under chapter 340A, a restaurant open tothe public, bowling alley, a retail store, gambling conducted byorganizations licensed under chapter 349, an insurance business,or office or other space leased or rented to a lessee whoconducts a for-profit enterprise on the premises. Any portion ofthe property which is used for revenue-producing activities formore than six days in the calendar year preceding the year ofassessment shall be assessed as class 3a. The use of theproperty for social events open exclusively to members and theirguests for periods of less than 24 hours, when an admission isnot charged nor any revenues are received by the organizationshall not be considered a revenue-producing activity;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9804(7) post-secondary student housing of not more than one acre ofland that is owned by a nonprofit corporation organized underchapter 317A and is used exclusively by a student cooperative,sorority, or fraternity for on-campus housing or housing locatedwithin two miles of the border of a college campus; and
(8) manufactured home parks as defined in section 327.14,subdivision 3.
Class 4c property has a class rate of 2.3 percent of marketvalue, except that (i) for each parcel of seasonal residentialrecreational property not used for commercial purposes underclause (5) the first $72,000 of market value on each parcel has aclass rate of 1.9 1.75 percent for taxes payable in1997 and 1.8 1.5 percent for taxes payable in 1998and thereafter, and the market value of each parcel that exceeds$72,000 has a class rate of 2.5 percent, and (ii) manufacturedhome parks assessed under clause (8) have a class rate of twopercent for taxes payable in 1996, and thereafter.
(d) Class 4d property includes:
(1) a structure that is:
(i) situated on real property that is used for housing for theelderly or for low and moderate income families as defined by theFarmers Home Administration;
(ii) located in a municipality of less than 10,000 population;and
(iii) financed by a direct loan or insured loan from theFarmers Home Administration. Property is classified under thisclause for 15 years from the date of the completion of theoriginal construction or for the original term of the loan.
The class rates in paragraph (c), clauses (1), (2), and (3) andthis clause apply to the properties described in them, only inproportion to occupancy of the structure by elderly orhandicapped persons or low and moderate income families asdefined in the applicable laws unless construction of thestructure had been commenced prior to January 1, 1984; or theproject had been approved by the governing body of themunicipality in which it is located prior to June 30, 1983; orfinancing of the project had been approved by a federal or stateagency prior to June 30, 1983. For those properties, 4c or 4dclassification is available only for those units meeting therequirements of section 273.1318.
Classification under this clause is only available to propertyof a nonprofit or limited dividend entity.
In the case of a structure financed or refinanced under anyfederal or state mortgage insurance or direct loan programexclusively for housing for the elderly or for housing for thehandicapped, a unit shall be considered occupied so long as it isactually occupied by an elderly or handicapped person or, ifvacant, is held for rental to an elderly or handicappedperson.
(2) For taxes payable in 1992, 1993, and 1994, only, buildingsand appurtenances, together with the land upon which they arelocated, leased by the occupant under the community lending modellease-purchase mortgage loan program administered by the FederalNational Mortgage Association, provided the occupant's income isno greater than 60 percent of the county or area median income,adjusted for family size and the building consists of existingsingle family or duplex housing. The lease agreement mustprovide for a portion of the lease payment to be escrowed as anonrefundable down payment on the housing. To qualify under thisclause, the taxpayer must apply to the county assessor by May 30of each year. The application must be accompanied by anaffidavit or other proof required by the assessor to determinequalification under this clause.
(3) Qualifying buildings and appurtenances, together with theland upon which they are located, leased for a period of up tofive years by the occupant under a lease-purchase programadministered by the Minnesota housing finance agency or a housingand redevelopment authority authorized under sections 469.001 to469.047, provided the occupant's income is no greater than 80percent of the county or area median income, adjusted for familysize, and the building consists of two or less dwelling units. The lease agreement must provide for a portion of the leasepayment to be escrowed as a nonrefundable down payment on thehousing. The administering agency shall verify the occupantsincome eligibility and certify to the county assessor that theoccupant meets the income criteria under this paragraph. Toqualify under this clause, the taxpayer must apply to the countyassessor by May 30 of each year. For purposes of this section,"qualifying buildings and appurtenances" shall be defined as oneor two unit residential buildings which are unoccupied and havebeen abandoned and boarded for at least six months.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9805Class 4d property has a class rate of two percent of marketvalue except that property classified under clause (3), shallhave the same class rate as class 1a property.
(e) Residential rental property that would otherwise beassessed as class 4 property under paragraph (a); paragraph (b),clauses (1) and (3); paragraph (c), clause (1), (2), (3), or (4),is assessed at the class rate applicable to it under MinnesotaStatutes 1988, section 273.13, if it is found to be a substandardbuilding under section 273.1316. Residential rental propertythat would otherwise be assessed as class 4 property underparagraph (d) is assessed at 2.3 percent of market value if it isfound to be a substandard building under section 273.1316.
(f) Class 4e property consists of the residential portion ofany structure located within a city that was converted fromnonresidential use to residential use, provided that:
(1) the structure had formerly been used as awarehouse;
(2) the structure was originally constructed prior to1940;
(3) the conversion was done after December 31, 1995, butbefore January 1, 2003; and
(4) the conversion involved an investment of at least$25,000 per residential unit.
Class 4e property has a class rate of 2.3 percent, providedthat a structure is eligible for class 4e classification only inthe 12 assessment years immediately following theconversion.
Sec. 13. Minnesota Statutes 1995 Supplement, section 273.1398,subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) In this section, the termsdefined in this subdivision have the meanings given them.
(b) "Unique taxing jurisdiction" means the geographic areasubject to the same set of local tax rates.
(c) "Net tax capacity" means the product of (i) theappropriate net class rates for the year in which the aid ispayable, except that for aid payable in 1996 the class rateapplicable to all class 4a shall be 3.4 percent; and (ii)estimated market values for the assessment two years prior tothat in which aid is payable. "Total net tax capacity" means thenet tax capacities for all property within the unique taxingjurisdiction. The total net tax capacity used shall be reducedby the sum of (1) the unique taxing jurisdiction's net taxcapacity of commercial industrial property as defined in section473F.02, subdivision 3, multiplied by the ratio determinedpursuant to section 473F.08, subdivision 6, for the municipality,as defined in section 473F.02, subdivision 8, in which the uniquetaxing jurisdiction is located, (2) the net tax capacity of thecaptured value of tax increment financing districts as defined insection 469.177, subdivision 2, and (3) the net tax capacity oftransmission lines deducted from a local government's total nettax capacity under section 273.425. For purposes of determiningthe net tax capacity of property referred to in clauses (1), (2),and (3), the net tax capacity shall be multiplied by the ratio ofthe highest class rate for class 3a property for taxes payable inthe year in which the aid is payable to the highest class ratefor class 3a property in the prior year. Net tax capacity cannotbe less than zero.
(d) "Previous net tax capacity" means the product of theappropriate net class rates for the year previous to the year inwhich the aid is payable, and estimated market values for theassessment two years prior to that in which aid is payable."Total previous net tax capacity" means the previous net taxcapacities for all property within the unique taxingjurisdiction. The total previous net tax capacity shall bereduced by the sum of (1) the unique taxing jurisdiction'sprevious net tax capacity of commercial-industrial property asdefined in section 473F.02, subdivision 3, multiplied by theratio determined pursuant to section 473F.08, subdivision 6, forthe municipality, as defined in section 473F.02, subdivision 8,in which the unique taxing jurisdiction is located, (2) theprevious net tax capacity of the captured value of tax incrementfinancing districts as defined in section 469.177, subdivision 2,and (3) the previous net tax capacity of transmission linesdeducted from a local government's total net tax capacity undersection 273.425. Previous net tax capacity cannot be less thanzero.
(e) (d) "Equalized market values" are marketvalues that have been equalized by dividing the assessor'sestimated market value for the second year prior to that in whichthe aid is payable by the assessment sales ratios determined byclass in the assessment sales ratio study conducted by thedepartment of revenue pursuant to section 124.2131 in the secondyear prior to that in which the aid is payable. The equalizedmarket values shall equal the unequalized market values dividedby the assessment sales ratio.
(f) (e) "Equalized school levies" means theamounts levied for:
(1) general education under section 124A.23, subdivision 2;
(2) supplemental revenue under section 124A.22, subdivision8a;
(3) capital expenditure facilities revenue under section124.243, subdivision 3 transition revenue undersection 124A.22, subdivision 13c;
(4) capital expenditure equipment revenue under section124.244, subdivision 2;
(5) basic transportation under section 124.226,subdivision 1; and
(6) (5) referendum revenue under section124A.03.
(g) (f) "Current local tax rate" means thequotient derived by dividing the taxes levied within a uniquetaxing jurisdiction for taxes payable in the year prior to thatfor which aids are being calculated by the total previous net taxcapacity of the unique taxing jurisdiction.
(h) (g) For purposes of calculating andallocating homestead and agricultural credit aid authorizedpursuant to subdivision 2 and the disparity reduction aidauthorized in subdivision 3, "gross taxes levied on allproperties," "gross taxes," or "taxes levied" means the total nettax capacity based taxes levied on all properties except thatlevied on the captured value of tax increment districts asdefined in section 469.177, subdivision 2, and that levied on theportion of commercial industrial properties' assessed value orgross tax capacity, as defined in section 473F.02, subdivision 3,subject to the areawide tax as provided in section 473F.08,subdivision 6, in a unique taxing jurisdiction. "Gross taxes"are before any reduction for disparity reduction aid but "taxeslevied" are after any reduction for disparity reduction aid. Gross taxes levied or taxes levied cannot be less than zero.
"Taxes levied" excludes equalized school levies.
(i) "Human services aids" means:
(1) aid to families with dependent children under sections256.82, subdivision 1, and 256.935, subdivision 1;
(2) medical assistance under sections 256B.041, subdivision5, and 256B.19, subdivision 1;
(3) general assistance medical care under section 256D.03,subdivision 6;
(4) general assistance under section 256D.03, subdivision2;
(5) work readiness under section 256D.03, subdivision2;
(6) emergency assistance under section 256.871, subdivision6;
(7) Minnesota supplemental aid under section 256D.36,subdivision 1;
(8) preadmission screening and alternative caregrants;
(9) work readiness services under section 256D.051;
(10) case management services under section 256.736,subdivision 13;
(11) general assistance claims processing, medicaltransportation and related costs; and
(12) medical assistance, medical transportation and relatedcosts.
(j) (h) "Household adjustment factor" means thenumber of households for the second most recent year precedingthat in which the aids are payable divided by the number ofhouseholds for the third most recent year. The householdadjustment factor cannot be less than one.
(k) (i) "Growth adjustment factor" means thehousehold adjustment factor in the case of counties. In the caseof cities, towns, school districts, and special taxing districts,the growth adjustment factor equals one. The growth adjustmentfactor cannot be less than one.
(l) For aid payable in 1992 and subsequent years,(j) "Homestead and agricultural credit base" means theprevious year's certified homestead and agricultural credit aiddetermined under subdivision 2 less any permanent aid reductionin the previous year to homestead and agricultural credit aidunder section 477A.0132, plus, for aid payable in 1992, fiscaldisparity homestead and agricultural credit aid under subdivision2b.
(m) (k) "Net tax capacity adjustment" means (1)the total previous net tax capacity minus the total net taxcapacity tax base differential defined in subdivision1a, multiplied by (2) the unique taxing jurisdiction'scurrent local tax rate. The net tax capacity adjustment cannotbe less than zero.
(n) (l) "Fiscal disparity adjustment" meansthe difference between (1) a taxing jurisdiction's fiscaldisparity distribution levy under section 473F.08, subdivision 3,clause (a), for taxes payable in the year prior to that for whichaids are being calculated, and (2) the same distributionlevy multiplied by the ratio of the tax base differentialpercent referenced in subdivision 1a for the highest classrate for class 3 property for taxes payable in the year prior tothat for which aids are being calculated to the highest classrate for class 3 property for taxes payable in the second prioryear to that for which aids are being calculated. In the case ofschool districts, the fiscal disparity distribution levy shallexclude that part of the levy attributable to equalized schoollevies.
Sec. 14. Minnesota Statutes 1994, section 273.1398, is amendedby adding a subdivision to read:
Subd. 1a. [TAX BASE DIFFERENTIAL.] (a) For aidspayable in 1997, the tax base differential is 0.25 percent of theassessment year 1995 taxable market value of class 4cnoncommercial seasonal recreational residential property up to$72,000.
(b) For aids payable in 1998, the tax base differential is0.25 percent of the assessment year 1996 taxable market value ofclass 4c noncommercial seasonal recreational residential propertyup to $72,000.
Sec. 15. Minnesota Statutes 1994, section 273.1398,subdivision 4, is amended to read:
Subd. 4. [DISPARITY REDUCTION CREDIT.] (a) Beginning withtaxes payable in 1989, class 4a, class 3a, and class 3b propertyqualifies for a disparity reduction credit if: (1) the propertyis located in a border city that has an enterprise zonedesignated pursuant to section 469.168, subdivision 4; (2) theproperty is located in a city with a population greater than2,500 and less than 35,000 according to the 1980 decennialcensus; (3) the city is adjacent to a city in another state orimmediately adjacent to a city adjacent to a city in anotherstate; and (4) the adjacent city in the other state has apopulation of greater than 5,000 and less than 75,000.
(b) The credit is an amount sufficient to reduce (i) the taxeslevied on class 4a property to three 2.3 percent ofthe property's market value and (ii) the tax on class 3a andclass 3b property to 3.3 percent of market value.
(c) The county auditor shall annually certify the costs of thecredits to the department of revenue. The department shallreimburse local governments for the property taxes foregone asthe result of the credits in proportion to their total levies.
Sec. 16. Minnesota Statutes 1995 Supplement, section 275.065,subdivision 3, is amended to read:
Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The countyauditor shall prepare and the county treasurer shall deliverafter November 10 and on or before November 24 each year, byfirst class mail to each taxpayer at the address listed on thecounty's current year's assessment roll, a notice of proposedproperty taxes and, in the case of a town, final propertytaxes.
(b) The commissioner of revenue shall prescribe the form of thenotice.
(c) The notice must inform taxpayers that it contains theamount of property taxes each taxing authority other than a townproposes to collect for taxes payable the following year and, fora town, the amount of its final levy. It must clearly state thateach taxing authority, including regional library districtsestablished under section 134.201, and including the metropolitantaxing districts as defined in paragraph (i), but excluding allother special taxing districts and towns, will hold a publicmeeting to receive public testimony on the proposed budget andproposed or final
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9808property tax levy, or, in case of a school district, on thecurrent budget and proposed property tax levy. It must clearlystate the time and place of each taxing authority's meeting andan address where comments will be received by mail.
(d) The notice must state for each parcel:
(1) the market value of the property as determined undersection 273.11, and used for computing property taxes payable inthe following year and for taxes payable in the current year;and, in the case of residential property, whether the property isclassified as homestead or nonhomestead. The notice must clearlyinform taxpayers of the years to which the market values applyand that the values are final values;
(2) by county, city or town, school district excess referendalevy, remaining school district levy, regional library district,if in existence, the total of the metropolitan special taxingdistricts as defined in paragraph (i) and the sum of theremaining special taxing districts, and as a total of the taxingauthorities, including all special taxing districts, the proposedor, for a town, final net tax on the property for taxes payablethe following year and the actual tax for taxes payable thecurrent year. If a school district has certified undersection 124A.03, subdivision 2, that a referendum will be held inthe school district at the November general election, the countyauditor must note next to the school district's proposed amountthat a referendum is pending and that, if approved by the voters,the tax amount may be higher than shown on the notice. Forthe purposes of this subdivision, "school district excessreferenda levy" means school district taxes for operatingpurposes approved at referendums, including those taxes based onnet tax capacity as well as those based on market value. "Schooldistrict excess referenda levy" does not include school districttaxes for capital expenditures approved at referendums or schooldistrict taxes to pay for the debt service on bonds approved atreferenda. In the case of the city of Minneapolis, the levy forthe Minneapolis library board and the levy for Minneapolis parkand recreation shall be listed separately from the remainingamount of the city's levy. In the case of a parcel where taxincrement or the fiscal disparities areawide tax applies, theproposed tax levy on the captured value or the proposed tax levyon the tax capacity subject to the areawide tax must each bestated separately and not included in the sum of the specialtaxing districts; and
(3) the increase or decrease in the amounts in clause (2) fromtaxes payable in the current year to proposed or, for a town,final taxes payable the following year, expressed as a dollaramount and as a percentage.
(e) The notice must clearly state that the proposed or finaltaxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposedtaxes are certified, including bond referenda, school districtlevy referenda, and levy limit increase referenda;
(3) amounts necessary to pay cleanup or other costs due to anatural disaster occurring after the date the proposed taxes arecertified;
(4) amounts necessary to pay tort judgments against the taxingauthority that become final after the date the proposed taxes arecertified; and
(5) the contamination tax imposed on properties which receivedmarket value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the countyauditor to prepare or the county treasurer to deliver the noticeas required in this section does not invalidate the proposed orfinal tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this sectionlists the property as nonhomestead and the homeowner providessatisfactory documentation to the county assessor that theproperty is owned and has been used as the owner'shomestead prior to June 1 of that year, the assessor shallreclassify the property to homestead for taxes payable in thefollowing year.
(h) In the case of class 4 residential property used as aresidence for lease or rental periods of 30 days or more, thetaxpayer must either:
(1) mail or deliver a copy of the notice of proposed propertytaxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on thepremises of the property.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9809The notice must be mailed or posted by the taxpayer by November27 or within three days of receipt of the notice, whichever islater. A taxpayer may notify the county treasurer of the addressof the taxpayer, agent, caretaker, or manager of the premises towhich the notice must be mailed in order to fulfill therequirements of this paragraph.
(i) For purposes of this subdivision, subdivisions 5a and 6,"metropolitan special taxing districts" means the followingtaxing districts in the seven-county metropolitan area that levya property tax for any of the specified purposes listed below:
(1) metropolitan council under section 473.132, 473.167,473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
(2) metropolitan airports commission under section 473.667,473.671, or 473.672; and
(3) metropolitan mosquito control commission under section473.711.
For purposes of this section, any levies made by the regionalrail authorities in the county of Anoka, Carver, Dakota,Hennepin, Ramsey, Scott, or Washington under chapter 398A shallbe included with the appropriate county's levy and shall bediscussed at that county's public hearing.
Sec. 17. Minnesota Statutes 1994, section 275.065, subdivision5a, is amended to read:
Subd. 5a. [PUBLIC ADVERTISEMENT.] (a) A city that has apopulation of more than 1,000 2,500, county, ametropolitan special taxing district as defined in subdivision 3,paragraph (i), a regional library district established undersection 134.201, or school district shall advertise in anewspaper a notice of its intent to adopt a budget and propertytax levy or, in the case of a school district, to review itscurrent budget and proposed property taxes payable in thefollowing year, at a public hearing. The notice must bepublished not less than two business days nor more than sixbusiness days before the hearing.
The advertisement must be at least one-eighth page in size of astandard-size or a tabloid-size newspaper. The advertisementmust not be placed in the part of the newspaper where legalnotices and classified advertisements appear. The advertisementmust be published in an official newspaper of general circulationin the taxing authority. The newspaper selected must be one ofgeneral interest and readership in the community, and not one oflimited subject matter. The advertisement must appear in anewspaper that is published at least once per week.
For purposes of this section, the metropolitan special taxingdistrict's advertisement must only be published in theMinneapolis Star and Tribune and the Saint Paul Pioneer Press.
(b) The advertisement must be in the following form, exceptthat the notice for a school district may include references tothe current budget in regard to proposed property taxes.
PROPOSED PROPERTY TAXES
Special Taxing District/Regional
Library District) of . . . . . . . . .
The governing body of . . . . . . . . will soon hold budgethearings and vote on the property taxes for(city/county/metropolitan special taxing district/regionallibrary district services that will be provided in 199_/schooldistrict services that will be provided in 199_ and 199_).
All concerned citizens are invited to attend a public hearing andexpress their opinions on the proposed (city/county/schooldistrict/metropolitan special taxing district/regional librarydistrict) budget and property taxes, or in the case of a schooldistrict, its current budget and proposed property taxes, payablein the following year. The hearing will be held on(Month/Day/Year) at (Time) at (Location, Address)."
(c) A city with a population of 1,000 or less over500 but not more than 2,500 must advertise by posted noticeas defined in section 645.12, subdivision 1. The advertisementmust be posted at the time provided in paragraph (a). It must bein the form required in paragraph (b).
(d) For purposes of this subdivision, the population of a cityis the most recent population as determined by the statedemographer under section 4A.02.
(e) The commissioner of revenue, subject to the approval of thechairs of the house and senate tax committees, shall prescribethe form and format of the advertisement.
(f) For calendar year 1993, each taxing authority required topublish an advertisement must include on the advertisement astatement that information on the increases or decreases of thetotal budget, including employee and independent contractorcompensation in the prior year, current year, and proposed budgetyear will be discussed at the hearing.
(g) Notwithstanding paragraph (f), for 1993, the commissionerof revenue shall prescribe the form, format, and content of anadvertisement comparing current and proposed expense budgets forthe metropolitan council, the metropolitan airports commission,and the metropolitan mosquito control commission. The expensebudget must include occupancy, personnel, contractual and capitalimprovement expenses. The form, format, and content of theadvertisement must be approved by the chairs of the house andsenate tax committees prior to publication.
Sec. 18. Minnesota Statutes 1995 Supplement, section 275.065,subdivision 6, is amended to read:
Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.]Between November 29 and December 20, the governing bodies ofthe a city that has a population over 500,county, metropolitan special taxing districts as defined insubdivision 3, paragraph (i), and regional library districtsshall each hold a public hearing to discuss and seek publiccomment on its final budget and property tax levy for taxespayable in the following year, and the governing body of theschool district shall hold a public hearing to review its currentbudget and proposed property tax levy for taxes payable in thefollowing year. The metropolitan special taxing districts shallbe required to hold only a single joint public hearing, thelocation of which will be determined by the affected metropolitanagencies.
At a subsequent hearing, each county, school district, city,and metropolitan special taxing district may amend its proposedproperty tax levy and must adopt a final property tax levy. Eachcounty, city, and metropolitan special taxing district may alsoamend its proposed budget and must adopt a final budget at thesubsequent hearing. A school district is not required to adoptits final budget at the subsequent hearing. The subsequenthearing of a taxing authority must be held on a date subsequentto the date of the taxing authority's initial public hearing, orsubsequent to the date of its continuation hearing if acontinuation hearing is held. The subsequent hearing may be heldat a regularly scheduled board or council meeting or at a specialmeeting scheduled for the purposes of the subsequent hearing. The subsequent hearing of a taxing authority does not have to becoordinated by the county auditor to prevent a conflict with aninitial hearing, a continuation hearing, or a subsequent hearingof any other taxing authority. All subsequent hearings must beheld prior to five working days after December 20 of the levyyear.
The time and place of the subsequent hearing must be announcedat the initial public hearing or at the continuation hearing.
The property tax levy certified under section 275.07 by a city,county, metropolitan special taxing district, regional librarydistrict, or school district must not exceed the proposed levydetermined under subdivision 1, except by an amount up to the sumof the following amounts:
(1) the amount of a school district levy whose voters approveda referendum to increase taxes under section 124.82, subdivision3, 124A.03, subdivision 2, 124B.03, subdivision 2, or 136C.411,after the proposed levy was certified;
(2) the amount of a city or county levy approved by the votersafter the proposed levy was certified;
(3) the amount of a levy to pay principal and interest on bondsissued or approved by the voters under section 475.58after the proposed levy was certified;
(4) the amount of a levy to pay costs due to a natural disasteroccurring after the proposed levy was certified, if that amountis approved by the commissioner of revenue under subdivision6a;
(5) the amount of a levy to pay tort judgments against a taxingauthority that become final after the proposed levy wascertified, if the amount is approved by the commissioner ofrevenue under subdivision 6a;
(6) the amount of an increase in levy limits certified to thetaxing authority by the commissioner of children, families, andlearning after the proposed levy was certified; and
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9811(7) the amount required under section 124.755.
At the hearing under this subdivision, the percentage increasein property taxes proposed by the taxing authority, if any, andthe specific purposes for which property tax revenues are beingincreased must be discussed.
During the discussion, the governing body shall hear commentsregarding a proposed increase and explain the reasons for theproposed increase. The public shall be allowed to speak and toask questions. At the subsequent hearing held as provided inthis subdivision, the governing body, other than the governingbody of a school district, shall adopt its final property taxlevy prior to adopting its final budget.
If the hearing is not completed on its scheduled date, thetaxing authority must announce, prior to adjournment of thehearing, the date, time, and place for the continuation of thehearing. The continued hearing must be held at least fivebusiness days but no more than 14 business days after theoriginal hearing.
The hearing must be held after 5:00 p.m. if scheduled on a dayother than Saturday. No hearing may be held on a Sunday. Thegoverning body of a county shall hold a hearing on the secondTuesday in December each year, and may hold additional hearingson other dates before December 20 if necessary for theconvenience of county residents. If the county needs acontinuation of its hearing, the continued hearing shall be heldon the third Tuesday in December. If the third Tuesday inDecember falls on December 21, the county's continuation hearingshall be held on Monday, December 20. The county auditor shallprovide for the coordination of hearing dates for all cities andschool districts within the county.
The metropolitan special taxing districts shall hold a jointpublic hearing on the first Monday of December. A continuationhearing, if necessary, shall be held on the second Monday ofDecember.
By August 10, each school board and the board of the regionallibrary district shall certify to the county auditors of thecounties in which the school district or regional librarydistrict is located the dates on which it elects to hold itshearings and any continuations. If a school board or regionallibrary district does not certify the dates by August 10, theauditor will assign the hearing date. The dates elected orassigned must not conflict with the hearing dates of the countyor the metropolitan special taxing districts. By August 20, thecounty auditor shall notify the clerks of the cities within thecounty of the dates on which school districts and regionallibrary districts have elected to hold their hearings. At thetime a city certifies its proposed levy under subdivision 1 itshall certify the dates on which it elects to hold its hearingsand any continuations. For its initial hearing and for thesubsequent hearing at which the final property tax levy will beadopted, the city must not select dates that conflict withthe county hearing dates, metropolitan special taxing districtdates, or with those elected by or assigned to the schooldistricts or regional library district in which the city islocated. For continuation hearings, the city may select datesthat conflict with other taxing authorities' dates if the citydeems it necessary.
The county hearing dates and the city, metropolitan specialtaxing district, regional library district, and school districthearing dates must be designated on the notices required undersubdivision 3. The continuation dates need not be stated on thenotices.
This subdivision does not apply to towns and special taxingdistricts other than regional library districts and metropolitanspecial taxing districts.
Notwithstanding the requirements of this section, the employeris required to meet and negotiate over employee compensation asprovided for in chapter 179A.
Sec. 19. Minnesota Statutes 1994, section 275.07, subdivision4, is amended to read:
Subd. 4. [REPORT TO COMMISSIONER.] On or before September30 for taxes payable in 1994, and thereafter October 8 ofeach year, the county auditor shall report to thecommissioner of revenue the proposed levy certified by localunits of government under section 275.065, subdivision 1. On orbefore January 15, for taxes levied in 1989 and thereafterof each year, the county auditor shall report to thecommissioner of revenue the final levy certified by local unitsof government under subdivision 1. The levies must be reportedin the manner prescribed by the commissioner. The reports mustshow a total levy and the amount of each special levy.
Sec. 20. Minnesota Statutes 1995 Supplement, section 275.08,subdivision 1b, is amended to read:
Subd. 1b. [COMPUTATION OF TAX RATES.] The amounts certifiedto be levied against net tax capacity under section 275.07by an individual local government unit, except for any amountscertified under sections 124A.03, subdivision 2a, and 275.61,shall be divided by the total net tax capacity of all taxableproperties within the local
government unit's taxing jurisdiction. The resulting ratio, thelocal government's local tax rate, multiplied by each property'snet tax capacity shall be each property's net tax capacitytax for that local government unit before reduction by anycredits.
Any amount certified to the county auditor under section124A.03, subdivision 2a, or 275.61, after the dates given inthose sections, to be levied against market valueshall be divided by the total estimated referendummarket value of all taxable properties within the taxingdistrict. The resulting ratio, the taxing district's newreferendum tax rate, multiplied by each property'sestimated referendum market value shall be eachproperty's new referendum tax before reduction by any credits. For the purposes of this subdivision, "referendum marketvalue" means the market value as defined in section 124A.02,subdivision 3b.
Sec. 21. Minnesota Statutes 1994, section 275.61, is amendedto read:
275.61 [REFERENDUM LEVY; MARKET VALUE.]
For local governmental subdivisions other than schooldistricts, any levy, including the issuance of debt obligationspayable in whole or in part from property taxes, required to beapproved and approved by the voters at a general or specialelection for taxes payable in 1993 and thereafter, shall belevied against the referendum market value of all taxableproperty within the governmental subdivision, as defined insection 124A.02, subdivision 3b. Any levy amount subject tothe requirements of this section shall be certified separately tothe county auditor under section 275.07.
The ballot shall state the maximum amount of the increased levyas a percentage of market value and the amount that will beraised by the new referendum tax rate in the first year it is tobe levied.
Sec. 22. [276.017] [TIMELY PAYMENTS.]
Subdivision 1. [DATE OF MAILING OR RECEIPT.] When apayment described in this section is required to be made to acounty on or before the prescribed date, the payment is timely ifreceived by the county on or before a prescribed date, or ifmailed on or before that date. This section applies to thepayment of current or delinquent real or personal property taxes,any other amount shown as payable on a property tax statement,and all related penalties, interest, or costs.
Subd. 2. [MAILING REQUIREMENTS.] Mailing is timelyunder this section only if the payment was deposited in the mailin the United States on or before the due date, in an envelope orother appropriate wrapper, postage prepaid, and properlyaddressed.
Subd. 3. [UNITED STATES POSTAL SERVICE POSTMARK.]The postmark of the United States Postal Service qualifies asproof of timely mailing for this section. If the payment is sentby United States registered mail, the date of registration is thepostmark date. If the payment is sent by United States certifiedmail, the date of the United States Postal Service postmark onthe receipt given to the person presenting the payment fordelivery is the date of mailing. Mailing, or the time ofmailing, may also be established by other available evidenceexcept that the postmark of a private postage meter may not beused as proof of a timely mailing made under this section.
Subd. 4. [RECEIPT OTHERWISE GOVERNS.] In any case inwhich the payment is not treated as timely mailed under thissection, the date of receipt governs for purposes of determiningthe amount of any penalty, interest, or cost assessment.
Sec. 23. Minnesota Statutes 1995 Supplement, section 276.04,subdivision 2, is amended to read:
Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer shallprovide for the printing of the tax statements. The commissionerof revenue shall prescribe the form of the property tax statementand its contents. The statement must contain a tabulatedstatement of the dollar amount due to each taxing authority fromthe parcel of real property for which a particular tax statementis prepared. The dollar amounts due the county, township ormunicipality, the total of the metropolitan special taxingdistricts as defined in section 275.065, subdivision 3, paragraph(i), school district excess referenda levy, remaining schooldistrict levy, and the total of other voter approved referendalevies based on market value under section 275.61 must beseparately stated. The amounts due all other special taxingdistricts, if any, may be aggregated. For the purposes of thissubdivision, "school district excess referenda levy" means schooldistrict taxes for operating purposes approved at referenda,including those taxes based on net tax capacity as well as thosebased on market value. "School district excess referenda levy"does not include
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9813school district taxes for capital expenditures approved atreferendums or school district taxes to pay for the debt serviceon bonds approved at referenda. The amount of the tax oncontamination value imposed under sections 270.91 to 270.98, ifany, must also be separately stated. The dollar amounts,including the dollar amount of any special assessments, may berounded to the nearest even whole dollar. For purposes of thissection whole odd-numbered dollars may be adjusted to the nexthigher even-numbered dollar. The amount of market value excludedunder section 273.11, subdivision 16, if any, must also be listedon the tax statement. The statement shall include the followingsentence, printed in upper case letters in boldface print: "THESTATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYINGCREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."
(b) The property tax statements for manufactured homes andsectional structures taxed as personal property shall contain thesame information that is required on the tax statements for realproperty.
(c) Real and personal property tax statements must contain thefollowing information in the order given in this paragraph. Theinformation must contain the current year tax information in theright column with the corresponding information for the previousyear in a column on the left:
(1) the property's estimated market value under section 273.11,subdivision 1;
(2) the property's taxable market value after reductions undersection 273.11, subdivisions 1a and 16;
(3) the property's gross tax, calculated by multiplying theproperty's gross tax capacity times the total local tax rate andadding to the result the sum of the aids enumerated in clause(3);
(4) a total of the following aids:
(i) education aids payable under chapters 124 and 124A;
(ii) local government aids for cities, towns, and countiesunder chapter 477A; and
(iii) disparity reduction aid under section 273.1398;
(5) for homestead residential and agricultural properties, thehomestead and agricultural credit aid apportioned to theproperty. This amount is obtained by multiplying the total localtax rate by the difference between the property's gross and nettax capacities under section 273.13. This amount must beseparately stated and identified as "homestead and agriculturalcredit." For purposes of comparison with the previous year'samount for the statement for taxes payable in 1990, the statementmust show the homestead credit for taxes payable in 1989 undersection 273.13, and the agricultural credit under section 273.132for taxes payable in 1989;
(6) any credits received under sections 273.119; 273.123;273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10,except that the amount of credit received under section 273.135must be separately stated and identified as "taconite taxrelief"; and
(7) the net tax payable in the manner required in paragraph(a).
(d) If the county uses envelopes for mailing property taxstatements and if the county agrees, a taxing district mayinclude a notice with the property tax statement notifyingtaxpayers when the taxing district will begin its budgetdeliberations for the current year, and encouraging taxpayers toattend the hearings. If the county allows notices to be includedin the envelope containing the property tax statement, and ifmore than one taxing district relative to a given propertydecides to include a notice with the tax statement, the countytreasurer or auditor must coordinate the process and may combinethe information on a single announcement.
The commissioner of revenue shall certify to the county auditorthe actual or estimated aids enumerated in clauses (3) and (4)that local governments will receive in the following year. Inthe case of a county containing a city of the first class, fortaxes levied in 1991, and for all counties for taxes levied in1992 and thereafter, the commissioner must certify this amount bySeptember 1.
Sec. 24. Minnesota Statutes 1994, section 278.01, is amendedby adding a subdivision to read:
Subd. 4. [FILING OF APPEAL DEADLINE; EXCEPTION.]Notwithstanding the March 31 date in subdivision 1, wheneverthe exempt status, valuation, or classification of real orpersonal property is changed other than by an abatement or acourt decision, and the owner responsible for payment of the taxis not given notice of the change until
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9814after January 31 of the year the tax is payable or after July 1in the case of property subject to section 273.125, subdivision4, an eligible petitioner, as defined and limited in subdivision1, has 60 days from the date of mailing of the notice to initiatean appeal of the property's exempt status, classification, orvaluation change under this chapter.
Sec. 25. Minnesota Statutes 1994, section 278.08, is amendedto read:
278.08 [INTEREST.]
Subdivision 1. [INTEREST; PENALTY.] In the case of real orpersonal property, the judgment must include the followinginterest:
(1) if the tax is sustained in full, interest on the unpaidpart of the tax computed under section 279.03, subdivision 1,at the rate provided in section 549.09;
(2) if the tax is increased, interest on the unpaid part of thetax as originally assessed computed under section 279.03,subdivision 1, at the rate provided in section 549.09;
(3) if the tax is reduced, interest on the difference betweenthe tax as recomputed and the amount previously paid computedunder section 279.03, subdivision 1, at the rate provided insection 549.09.
If the tax is sustained or increased, penalty on the unpaidpart of the tax as originally assessed computed under section279.01 must be included in the judgment.
Subd. 2. [REFUND.] In the case of real or personal property,if the petitioner has overpaid the tax determined or stipulatedto be due, the county auditor shall compute interest on theoverpayment from the date of the filing of the petition forreview or from the date of payment of the tax, whichever islater, until the date of issuance of the refund warrant. Interestshall be calculated on the overpayment under section 279.03,subdivision 1, at the rate provided in section 279.03549.09 for delinquent property taxes originally due andpayable in the same year as the tax whichwas became or remained overpaid. For the purposes ofcomputing interest due under this subdivision, an overpaymentoccurs on the date when the cumulative total of the payments madeby the taxpayer for the payable year exceed the final total taxamount determined for that payable year. In determining whetheran overpayment has occurred, taxpayer payments are allocatedfirst to any penalty imposed due to late payment of installments,then to the tax due.
Sec. 26. Minnesota Statutes 1994, section 279.06, subdivision1, is amended to read:
Subdivision 1. [LIST AND NOTICE.] Within five days after thefiling of such list, the court administrator shall return a copythereof to the county auditor, with a notice prepared and signedby the court administrator, and attached thereto, which may besubstantially in the following form:
State of Minnesota )
) ss.
County of . . . . . . . . . . . . . . . . .)
District Court
. . . . . . . . . . Judicial District.
The state of Minnesota, to all persons, companies, orcorporations who have or claim any estate, right, title, orinterest in, claim to, or lien upon, any of the several parcelsof land described in the list hereto attached:
The list of taxes and penalties on real property for the countyof . . . . . . . . . . . . . . . . . . . remaining delinquent onthe first Monday in January, 19. . ., has been filed in theoffice of the court administrator of the district court of saidcounty, of which that hereto attached is a copy. Therefore, you,and each of you, are hereby required to file in the office ofsaid court administrator, on or before the 20th day after thepublication of this notice and list, your answer, in writing,setting forth any objection or defense you may have to the taxes,or any part thereof, upon any parcel of land described in thelist, in, to, or on which you have or claim any estate, right,title, interest, claim, or lien, and, in default thereof,judgment will be entered against such parcel of land for thetaxes on such list appearing against it, and for all penalties,interest, and costs. Based upon said judgment, the land shall besold to the state of Minnesota
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9815on the second Monday in May, 19. . . The period of redemptionfor all lands sold to the state at a tax judgment sale shall bethree years from the date of sale to the state of Minnesota ifthe land is within an incorporated area unless it is:
(a) nonagricultural homesteaded land as defined in section273.13, subdivision 22;
(b) homesteaded agricultural land as defined in section 273.13,subdivision 23, paragraph (a); or
(c) seasonal recreational land as defined in section 273.13,subdivisions 22, paragraph (c), and 25, paragraph (c), clause(5), in which event the period of redemption is five years fromthe date of sale to the state of Minnesota;
(d) abandoned property and pursuant to section 281.173 acourt order has been entered shortening the redemption period tofive weeks; or
(e) vacant property as described under section 281.174,subdivision 2, and for which a court order is entered shorteningthe redemption period under section 281.174.
The period of redemption for all other lands sold to the stateat a tax judgment sale shall be five years from the date ofsale.
Inquiries as to the proceedings set forth above can be made tothe county auditor of . . . . . county whose address is . . . . ..
(Signed) . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .,
Court Administrator of the District Court of the County
of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .
(Here insert list.)
The list referred to in the notice shall be substantially inthe following form:
List of real property for the county of . . . . . . . . . . . .. . . ., on which taxes remain delinquent on the first Monday inJanuary, 19. . .:
Names (and Current Filed Addresses) for the Taxpayers
and Fee Owners and in Addition Those Parties Who Have Filed
Their Addresses Pursuant to section 276.041.
Tax
Subdivision of Parcel Total Tax
Section Section Numberand Penalty
$ cts.
John Jones S.E. 1/4 of S.W. 1/4 10 231012.20
(825 Fremont
Fairfield, MN 55000)
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9816Bruce Smith That part of N.E. 1/4
(2059 Hand of S.W. 1/4 desc. as
Fairfield, MN 55000) follows: Beg. at the
S.E. corner of said
and N.E. 1/4 of S.W. 1/4;
Fairfield thence N. along the E.
State Bank line of said N.E. 1/4
(100 Main Street of S.W. 1/4 a distance
Fairfield, MN 55000) of 600 ft.; thence W.
parallel with the S.
line of said N.E. 1/4
of S.W. 1/4 a distance
of 600 ft.; thence S.
parallel with said E.
line a distance of 600
ft. to S. line of said
N.E. 1/4 of S.W. 1/4;
thence E. along said S.
line a distance of 600
ft. to the point of
beg. . . . . . . . . . . 21 332113.15
As to platted property, the form of heading shall conform tocircumstances and be substantially in the following form:
Brown's Addition, or Subdivision
Names (and Current Filed Addresses) for the Taxpayers and FeeOwners
and in Addition Those Parties Who have Filed Their AddressesPursuant
to section 276.041
Tax
Parcel Total Tax
Lot Block Numberand Penalty
$ cts
John Jones 15 9 58243 2.20
(825 Fremont
Fairfield, MN 55000)
Bruce Smith 16 9 58244 3.15
(2059 Hand
Fairfield, MN 55000)
and
Fairfield State Bank
(100 Main Street
Fairfield, MN 55000)
The names, descriptions, and figures employed in parentheses inthe above forms are merely for purposes of illustration.
The name of the town, township, range or city, and addition orsubdivision, as the case may be, shall be repeated at the head ofeach column of the printed lists as brought forward from thepreceding column.
Errors in the list shall not be deemed to be a material defectto affect the validity of the judgment and sale.
Sec. 27. Minnesota Statutes 1994, section 279.37, is amendedby adding a subdivision to read:
Subd. 11. This section shall not apply in cases where theredemption period has been shortened under sections 281.173 and281.174.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9817Sec. 28. Minnesota Statutes 1994, section 281.17, is amendedto read:
281.17 [PERIOD FOR REDEMPTION.]
Except for properties for which the period of redemption hasbeen limited under sections 281.173 and 281.174, the followingperiods for redemption apply.
The period of redemption for all lands sold to the state at atax judgment sale shall be three years from the date of sale tothe state of Minnesota if the land is within an incorporated areaunless it is: (a) nonagricultural homesteaded land as defined insection 273.13, subdivision 22; (b) homesteaded agricultural landas defined in section 273.13, subdivision 23, paragraph (a); or(c) seasonal recreational land as defined in section 273.13,subdivision 22, paragraph (c), or 25, paragraph (c), clause (5),for which the period of redemption is five years from the date ofsale to the state of Minnesota.
The period of redemption for homesteaded lands as defined insection 273.13, subdivision 22, located in a targetedneighborhood as defined in Laws 1987, chapter 386, article 6,section 4, and sold to the state at a tax judgment sale is threeyears from the date of sale. The period of redemption for alllands located in a targeted neighborhood as defined in Laws 1987,chapter 386, article 6, section 4, except (1) homesteaded landsas defined in section 273.13, subdivision 22, and (2) for periodsof redemption beginning after June 30, 1991, but before July 1,1996, lands located in the Loring Park targeted neighborhood onwhich a notice of lis pendens has been served, and sold to thestate at a tax judgment sale is one year from the date ofsale.
The period of redemption for all real property constituting amixed municipal solid waste disposal facility that is a qualifiedfacility under section 115B.39, subdivision 1, is one year fromthe date of the sale to the state of Minnesota.
The period of redemption for all other lands sold to the stateat a tax judgment sale shall be five years from the date of sale,except that the period of redemption for nonhomesteadedagricultural land as defined in section 273.13, subdivision 23,paragraph (b), shall be two years from the date of sale if atthat time that property is owned by a person who owns one or moreparcels of property on which taxes are delinquent, and thedelinquent taxes are more than 25 percent of the prior year'sschool district levy.
Sec. 29. [281.173] [FIVE-WEEK REDEMPTION PERIOD FOR CERTAINABANDONED PROPERTIES.]
Subdivision 1. [APPLICATION.] This section appliesif at any time after the tax sale as provided in section 280.01has occurred but before notice of expiration of time forredemption has been given, a court order is entered reducing tofive weeks the redemption period during which the owner, theowner's personal representatives and assigns, or any other personholding an interest in the premises, may redeem the premises inaccordance with the provisions of this chapter.
Subd. 2. [SUMMONS AND COMPLAINT.] Any city, housingand redevelopment authority, port authority, or economicdevelopment authority, in which the premises are located maycommence an action in district court to reduce the periodotherwise allowed for redemption under this chapter. The actionmust be commenced by the filing of a complaint, naming asdefendants the record fee owners or the owner's personalrepresentative, or the owner's heirs as determined by a court ofcompetent jurisdiction, contract for deed purchasers, mortgagees,assigns of any of the above, the taxpayers as shown on therecords of the county auditor, the Internal Revenue Service ofthe United States and the revenue department of the state ofMinnesota if tax liens against the owners or contract for deedpurchasers have been recorded or filed; and any other person theplaintiff determines should be made a party. The action shall befiled in district court for the county in which the premises arelocated. The complaint must identify the premises by legaldescription. The complaint must allege (1) that the premises areabandoned, (2) that the tax judgment sale pursuant tosection 280.01 has been made, and (3) notice of expiration ofthe time for redemption has not been given.
The complaint must request an order reducing the redemptionperiod to five weeks. When the complaint has been filed, thecourt shall issue a summons commanding the person or personsnamed in the complaint to appear before the court on a day and ata place stated in the summons. The appearance date shall be notless than 15 nor more than 25 days from the date of the issuingof the summons. A copy of the filed complaint must be attachedto the summons.
Subd. 3. [SERVICE OF SUMMONS AND COMPLAINT.] Thesummons and complaint may be served by any person not named aparty to the action. The summons and complaint must be served atleast seven days before the appearance date, in the mannerprovided for service of a summons and complaint in a civil actionin the district court,
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9818and posted in a conspicuous place on the premises. If adefendant cannot be found in the state, then upon an affidavit tothat effect being filed with the court, the summons and complaintmay be served by sending a copy by certified mail to thedefendant's last known address, if any, at least ten days beforethe appearance date. Summons by certified mail is complete uponmailing. If personal or certified mail service cannot be made ona defendant, then the plaintiff or plaintiff's attorney may filean affidavit to that effect with the court and service by postingthe summons and complaint on the premises is sufficient as tothat defendant. Service upon the United States of America shallbe made in accordance with applicable federal law.
Subd. 4. [HEARING; EVIDENCE; ORDER.] At the hearingon the summons and complaint, the court shall enter an orderreducing the redemption period to five weeks from the date of theorder, if evidence is presented supporting the allegations in thecomplaint and no appearance is made to oppose the relief sought. An affidavit by the sheriff or a deputy sheriff of the county inwhich the premises are located, or of a building inspector,zoning administrator, housing official, or other municipal orcounty official having jurisdiction over the premises, statingthat the premises are not actually lawfully occupied and furthersetting forth any of the following supporting facts, is primafacie evidence of abandonment:
(1) windows or entrances to the premises are boarded up orclosed off, or multiple window panes are broken andunrepaired;
(2) doors to the premises are smashed through, broken off,unhinged, or continuously unlocked;
(3) gas, electric, or water service to the premises has beenterminated;
(4) rubbish, trash, or debris has accumulated on thepremises;
(5) the police or sheriff's office has received at least tworeports of trespassers on the premises, or of vandalism or otherillegal acts being committed on the premises; or
(6) the premises are deteriorating and are either below orare in imminent danger of falling below minimum communitystandards for public safety and sanitation.
The court may consider an affidavit from any other personhaving personal knowledge, which states facts supporting anyother allegations in the complaint. Written statements of theowner, the owner's personal representatives or assigns, includingdocuments of conveyance, which indicate a clear intent to abandonthe premises, are conclusive evidence of abandonment. In theabsence of affidavits or written statements, or if rebuttalevidence is offered by the defendant or a party lawfully claimingan interest through the defendant, the court may consider anycompetent evidence, including oral testimony, concerning anyallegations in the complaint. An order entered under thissection must contain specific findings of abandonment and mustcontain a legal description of the premises.
Subd. 5. [RECORDING AND SERVICE OF ORDER.] Withinten days after the order is entered, a certified copy of theorder must be filed by the moving party with the office of thecounty recorder or registrar of titles and with the auditor forthe county in which the premises are located. Failure to filethe order within ten days shall not invalidate theproceedings.
Subd. 6. [DUTY OF AUDITOR.] If the property is notredeemed within five weeks of the date of entry of the order thecounty auditor, without further notice, shall execute acertificate as provided for in section 281.23, subdivision9.
Subd. 7. [HOMESTEAD STATUS.] This section appliesregardless of the subject property's homestead tax status at thetime of sale.
Subd. 8. [EFFECTIVE DATE.] This section shall applyonly to tax judgment sales occurring on and after the effectivedate, which shall be the day following final enactment.
Sec. 30. [281.174] [FIVE-WEEK REDEMPTION PERIOD FOR CERTAINVACANT PROPERTIES.]
Subdivision 1. [APPLICATION.] This section appliesto property located within a city if at any time after the taxsale as provided in section 280.01 has occurred but before noticeof expiration of time for redemption has been given, a courtorder is entered reducing to five weeks the redemption period onproperty under subdivision 2 during which the owner, the owner'spersonal representatives and assigns, or any other person holdingan interest in the property, may redeem that property inaccordance with the provisions of this chapter.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9819Subd. 2. [VACANT PROPERTY SUBJECT TO FIVE-WEEKREDEMPTION PERIOD.] Only property that meets all of thefollowing criteria is subject to the five-week redemption periodas provided in this section:
(1) the property is located in a targeted neighborhoodrevitalization program under section 469.201;
(2) no structures are located on the land;
(3) the property is classified under section 273.13 asresidential; and
(4) a residential structure existed on the land within thelast five years.
Subd. 3. [SUMMONS AND COMPLAINT.] Any city, housingand redevelopment authority, port authority, or economicdevelopment authority in which the property is located maycommence an action in district court to reduce the periodotherwise allowed for redemption under this chapter from the dateof the requested order. The action must be commenced by thefiling of a complaint, naming as defendants the record fee ownersor the owner's personal representative, or the owner's heirs asdetermined by a court of competent jurisdiction, contract fordeed purchasers, mortgagees, assigns of any of the above, thetaxpayers as shown on the records of the county auditor, theInternal Revenue Service of the United States and the revenuedepartment of the state of Minnesota if tax liens against theowners or contract for deed purchasers have been recorded orfiled, and any other person the plaintiff determines should bemade a party. The action shall be filed in district court forthe county in which the property is located. The complaint mustidentify the property by legal description. The complaint mustallege (1) that the property is vacant, (2) that the tax judgmentsale under section 280.01 has been made, and (3) notice ofexpiration of the time for redemption has not been given.
The complaint must request an order reducing the redemptionperiod to five weeks. When the complaint has been filed, thecourt shall issue a summons commanding the person or personsnamed in the complaint to appear before the court on a day and ata place stated in the summons. The appearance date shall be notless than 15 nor more than 25 days from the date of the issuingof the summons, except that, when the United States of America isa party, the date shall be set in accordance with applicablefederal law. A copy of the filed complaint must be attached tothe summons.
Subd. 4. [SERVICE OF SUMMONS AND COMPLAINT.] Thesummons and complaint may be served by any person not named aparty to the action. The summons and complaint must be served atleast seven days before the appearance date, in the mannerprovided for service of a summons and complaint in a civil actionin the district court, and posted in a conspicuous place on theproperty. If a defendant cannot be found in the state, then uponan affidavit to that effect being filed with the court, thesummons and complaint may be served by sending a copy bycertified mail to the defendant's last known address, if any, atleast ten days before the appearance date. Summons by certifiedmail is complete upon mailing. If personal or certified mailservice cannot be made on a defendant, then the plaintiff orplaintiff's attorney may file an affidavit to that effect withthe court and service by posting the summons and complaint on thepremises is sufficient as to that defendant.
Subd. 5. [HEARING; EVIDENCE; ORDER.] At the hearingon the summons and complaint, the court shall enter an orderreducing the redemption period to five weeks from the date of theorder, if evidence is presented supporting the allegations in thecomplaint and no appearance is made to oppose the relief sought. An affidavit from any person having personal knowledge about theproperty may be filed stating facts supporting any allegations inthe complaint. In the absence of affidavits or writtenstatements, or if rebuttal evidence is offered by the defendantor a party lawfully claiming an interest through the defendant,the court may consider any competent evidence, including oraltestimony, concerning any allegations in the complaint. An orderentered under this section must contain a legal description ofthe property.
Subd. 6. [RECORDING AND SERVICE OF ORDER.] Withinten days after the order is entered, a certified copy of theorder must be filed by the moving party with the office of thecounty recorder or registrar of titles and with the auditor forthe county in which the property is located. Failure to file theorder within ten days shall not invalidate theproceedings.
Subd. 7. [DUTY OF AUDITOR.] If the property is notredeemed within five weeks of the date of entry of the order thecounty auditor, without further notice, shall execute acertificate as provided for in section 281.23, subdivision9.
Subd. 8. [EFFECTIVE DATE.] This section shall applyonly to tax judgment sales occurring on and after the effectivedate which shall be the day following final enactment.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9820Sec. 31. Minnesota Statutes 1994, section 287.06, is amendedto read:
287.06 [EXEMPTION FROM OTHER TAXES.]
All mortgages upon which such tax has been paid, with thedebts or obligations secured thereby and the papers evidencingthe same, shall be exempt from all other taxes; but nothingherein shall exempt such property from the operation of the lawsrelating to the taxation of gifts and inheritances, or thosegoverning the taxation of banks, savings banks, or trustcompanies; provided, that Sections 287.01 to 287.12 shall notapply to mortgages taken in good faith by persons or corporationswhose personal property is expressly exempted fromtaxation by law section 272.02, subdivision 1, clauses(1) to (7), or is taxed upon the basis of gross earningsor other methods of computation in lieu of all other taxesmortgagees that are fraternal benefit societies subject tosection 64B.24.
Sec. 32. [287.37] [INVESTIGATIONS AND ASSESSMENTS.]
The commissioner of revenue may investigate and examinepersons and transactions that are subject to this chapter usingthe powers and authorities granted in chapters 270 and 289A. Thecommissioner may issue orders of assessment under chapter 289A,and enforce collection of unpaid tax or penalty amounts,including interest, under the authority of chapter 270. All taxamounts collected by the commissioner must be apportioned undersection 287.12. The commissioner's expenses under this sectionare not expenses of administration under section 287.33. Alldata and information made available to the commissioner underthis section is public except for investigative data covered bysection 270B.03, subdivision 6.
Sec. 33. Minnesota Statutes 1995 Supplement, section 290A.04,subdivision 2h, is amended to read:
Subd. 2h. (a) If the gross property taxes payable on ahomestead increase more than 12 percent over the net propertytaxes payable in the prior year on the same property that isowned and occupied by the same owner on January 2 of both years,and the amount of that increase is $100 or more for taxes payablein 1995 and 1996 and 1997, a claimant who is ahomeowner shall be allowed an additional refund equal to 60percent of the amount of the increase over the greater of 12percent of the prior year's net property taxes payable or $100for taxes payable in 1995 and 1996 and 1997. Thissubdivision shall not apply to any increase in the gross propertytaxes payable attributable to improvements made to the homesteadafter the assessment date for the prior year's taxes. Thissubdivision shall not apply to any increase in the gross propertytaxes payable attributable to the termination of valuationexclusions under section 273.11, subdivision 16.
The maximum refund allowed under this subdivision is $1,000.
(b) For purposes of this subdivision, the following terms havethe meanings given:
(1) "Net property taxes payable" means property taxes payableminus refund amounts for which the claimant qualifies pursuant tosubdivision 2 and this subdivision.
(2) "Gross property taxes" means net property taxes payabledetermined without regard to the refund allowed under thissubdivision.
(c) In addition to the other proofs required by this chapter,each claimant under this subdivision shall file with the propertytax refund return a copy of the property tax statement for taxespayable in the preceding year or other documents required by thecommissioner.
(d) On or before December 1, 1995, the commissioner shallestimate the cost of making the payments provided by thissubdivision for taxes payable in 1996. Notwithstanding the openappropriation provision of section 290A.23, if the estimatedtotal refund claims for taxes payable in 1996 exceed $5,500,000,the commissioner shall first reduce the 60 percent refund rateenough, but to no lower a rate than 50 percent, so that theestimated total refund claims do not exceed $5,500,000. If thecommissioner estimates that total claims will exceed $5,500,000at a 50 percent refund rate, the commissioner shall also reducethe $1,000 maximum refund amount by enough so that totalestimated refund claims do not exceed $5,500,000.
The determinations of the revised thresholds by thecommissioner are not rules subject to chapter 14.
(e) Upon request, the appropriate county official shall makeavailable the names and addresses of the property taxpayers whomay be eligible for the additional property tax refund under thissection. The information shall be provided on a magneticcomputer disk. The county may recover its costs by charging theperson requesting the
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9821information the reasonable cost for preparing the data. Theinformation may not be used for any purpose other than fornotifying the homeowner of potential eligibility and assistingthe homeowner, without charge, in preparing a refund claim.
Sec. 34. Minnesota Statutes 1994, section 290A.25, is amendedto read:
290A.25 [VERIFICATION OF SOCIAL SECURITY NUMBERS.]
Annually, the commissioner of revenue shall furnish a list tothe county assessor containing the names and social securitynumbers of persons who have applied for both homesteadclassification under section 273.13 and a property tax refund asa renter under this chapter.
Within 90 days of the notification, the county assessor shallinvestigate to determine if the homestead classification wasimproperly claimed. If the property owner does not qualify, thecounty assessor shall notify the county auditor who willdetermine the amount of homestead benefits that has beenimproperly allowed. For the purpose of this section, "homesteadbenefits" means the tax reduction resulting from theclassification as a homestead under section 273.13, and thetaconite homestead credit under section 273.1391 has themeaning given in section 273.124, subdivision 13, paragraph(h). The county auditor shall send a notice to personswho owned the owners of affected property at thetime the homestead application related to the propertyimproper homestead was filed, demanding reimbursement ofthe homestead benefits plus a penalty equal to 100 percent of thehomestead benefits. The property owners personnotified may appeal the county's determination by filing anotice of appeal with the Minnesota tax court within 60 daysof the date of the notice from the county as provided insection 273.124, subdivision 13, paragraph (h).
If the amount of homestead benefits and penalty is not paidwithin 60 days, and if no appeal has been filed, the countyauditor shall certify the amount of taxes and penalty to thesucceeding year's tax list to be collected as part of theproperty taxes county treasurer. The county treasurerwill add interest to the unpaid homestead benefits and penaltyamounts at the rate provided for delinquent personal propertytaxes for the period beginning 60 days after demand for paymentwas made until payment. If the person notified is the currentowner of the property, the treasurer may add the total amount ofbenefits, penalty, interest, and costs to the real estate taxesotherwise payable on the property in the following year. If theperson notified is not the current owner of the property, thetreasurer may collect the amounts due under the revenue recaptureact in chapter 270A, or use any of the powers granted in sections277.20 and 277.21 without exclusion, to enforce payment of thebenefits, penalty, interest, and costs, as if those amounts weredelinquent tax obligations of the person who owned the propertyat the time the application related to the improperly allowedhomestead was filed. The treasurer may relieve a prior owner ofpersonal liability for the benefits, penalty, interest, andcosts, and instead extend those amounts on the tax lists againstthe property for taxes payable in the following year to theextent that the current owner agrees in writing.
Any amount of homestead benefits recovered by the county fromthe property owner shall be distributed to the county, city ortown, and school district where the property is located in thesame proportion that each taxing district's levy was to the totalof the three taxing districts' levy for the current year. Anyamount recovered attributable to taconite homestead credit shallbe transmitted to the St. Louis county auditor to be deposited inthe taconite property tax relief account. Any amountrecovered that is attributable to supplemental homestead creditis to be transmitted to the commissioner of revenue for depositin the general fund of the state treasury. The total amountof penalty collected must be deposited in the county generalfund.
Sec. 35. [290A.27] [ROUNDING.]
In computing the dollar amount of items on the property taxrefund claim form and accompanying schedules, items may berounded off to the nearest whole dollar amount, disregardingamounts of less than 50 cents and increasing amounts of 50 centsto 99 cents to the next highest dollar.
Sec. 36. Minnesota Statutes 1994, section 375.192, subdivision2, is amended to read:
Subd. 2. Upon written application by the owner of anyproperty, the county board may grant the reduction or abatementof estimated market valuation or taxes and of any costs,penalties, or interest on them as the board deems just andequitable and order the refund in whole or part of any taxes,costs, penalties, or interest which have been erroneously orunjustly paid. Except as provided in section 375.194, thecounty board is authorized to consider and grant reductions orabatements on applications only as they relate to taxes payablein the current year and the two prior years; provided thatreductions or abatements for the two prior years shall beconsidered or granted only for
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9822(i) clerical errors, or (ii) when the taxpayer fails to file fora reduction or an adjustment due to hardship, as determined bythe county board. The application must include the socialsecurity number of the applicant. The social security number isprivate data on individuals as defined by section 13.02,subdivision 12. All applications must be approved by the countyassessor, or, if the property is located in a city of the firstor second class having a city assessor, by the city assessor, andby the county auditor before consideration by the county board,except that the part of the application which is for theabatement of penalty or interest must be approved by the countytreasurer and county auditor. Approval by the county or cityassessor is not required for abatements of penalty or interest. No reduction, abatement, or refund of any special assessmentsmade or levied by any municipality for local improvements shallbe made unless it is also approved by the board of review orsimilar taxing authority of the municipality. Before takingaction on any reduction or abatement where the reduction oftaxes, costs, penalties, and interest exceed $10,000, the countyboard shall give 20 days' notice to the school board and themunicipality in which the property is located. The notice mustdescribe the property involved, the actual amount of thereduction being sought, and the reason for the reduction. If theschool board or the municipality object to the granting of thereduction or abatement, the county board must refer the abatementor reduction to the commissioner of revenue with itsrecommendation. The commissioner shall consider the abatement orreduction under section 270.07, subdivision 1.
An appeal may not be taken to the tax court from any order ofthe county board made in the exercise of the discretionaryauthority granted in this section.
The county auditor shall notify the commissioner of revenue ofall abatements resulting from the erroneous classification ofreal property, for tax purposes, as nonhomestead property. Forthe abatements relating to the current year's tax processedthrough June 30, the auditor shall notify the commissioner on orbefore July 31 of that same year of all abatement applicationsgranted. For the abatements relating to the current year's taxprocessed after June 30 through the balance of the year, theauditor shall notify the commissioner on or before the followingJanuary 31 of all applications granted. The county auditor shallsubmit a form containing the social security number of theapplicant and such other information the commissionerprescribes.
Sec. 37. [375.194] [ECONOMIC DEVELOPMENT TAX ABATEMENT.]
Subdivision 1. [DEFINITIONS.] For purposes of thissection, the following terms have the meanings given them.
(a) "Eligible county" means a county whose county governmentaverage tax rate is at least 45 points higher than an adjacentneighboring county's county government average tax rate in theinitial year that the tax abatement is granted on the eligibleproperty. An eligible county cannot be one of the sevenmetropolitan counties under section 473.121, subdivision4.
(b) "Neighboring county" means a county whose average countygovernment tax rate is at least 45 points lower than the averagecounty government tax rate of an adjacent county that is aneligible county, in the initial year that the tax abatement isgranted.
(c) "Eligible property" means property located in aneligible county within 20 miles of the neighboring county and iseither (i) commercial property classified under section 273.13,subdivision 24, whose estimated market value has increased by atleast $400,000 from improvements made on that property by thetaxpayer after January 2, 1996, or (ii) industrial propertyclassified under section 273.13, subdivision 24, whose estimatedmarket value has increased by at least $100,000 from improvementsmade on that property by the taxpayer after January 2,1996.
(d) "Improvements" means (i) new construction, and (ii)rehabilitation, reconstruction, and additions toexisting structures.
(e) "Maximum tax abatement" for any given year means thedifference between (i) the eligible county's current year countygovernment tax rate times the net tax capacity of the eligibleproperty, and (ii) the neighboring county's current year countygovernment tax rate times the net tax capacity of the eligibleproperty.
(f) "Taxpayer" means the person who is responsible forpayment of the property tax, including a lessee who pays thetaxes on the eligible property.
Subd. 2. [ABATEMENT AUTHORITY.] The county board ofan eligible county may enter into a written agreement with thetaxpayer of eligible property to grant a property tax abatementto the taxpayer. The agreement must specify the percentage ofthe maximum tax abatement to be granted for each of thedesignated tax abatement years. The agreement must not provide aproperty tax abatement for any given year that exceeds themaximum tax abatement
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9823under subdivision 1, paragraph (e). The maximum length of theagreement is ten years. Even if the difference in the two countyaverage tax rates in any given year is less than the required45-point minimum, the agreement shall remain in effect for itsduration. The agreement is binding unless both the eligiblecounty's county board and the taxpayer mutually agree upon anychanges in the agreement.
Subd. 3. [ABATEMENT CALCULATIONS.] The actual taxabatement shall be computed annually by the county auditor of thecounty in which the eligible property is located using (i) thedifference between the eligible county's current year averagecounty government tax rate and the neighboring county's currentyear average county government tax rate, and (ii) the percentageof the maximum tax abatement specified in the agreement.
If the improvements are made over two calendar years, thecounty board is allowed to grant the initial tax abatement basedon improvements of less than the $100,000 estimated market valuefor industrial property and $400,000 estimated market value forcommercial property, provided that the county board has finalizedthe agreement and is reasonably assured that the minimum dollarrequirements provided in subdivision 1 will be met over thetwo-year time period. However, the agreement's ten-year maximumtime period begins with the year the first abatement isgranted.
Subd. 4. [PROPOSED AND FINAL PROPERTY TAX STATEMENTS.]For purposes of determining the eligible property's taxes onthe proposed property tax statement under section 275.065, theamount shown will be the amount before the deduction of the taxabatement under subdivision 3. The property taxes shown on thefinal property tax statement shall reflect both the taxes beforeand after the tax abatement granted under this section.
Subd. 5. [DETERMINATION OF COUNTY TAX RATE.] Theeligible county's proposed and final tax rates shall bedetermined by dividing the certified levy by the total taxablenet tax capacity, without regard to any abatements granted underthis section. The county board shall make available theestimated amount of the abatement at the public hearing undersection 275.065, subdivision 6.
Subd. 6. [ELIGIBLE PROPERTY LOCATED IN A TAX INCREMENTFINANCING DISTRICT.] Eligible property may be located in a taxincrement financing district, provided that (i) the governingbody of the municipality containing the district approves thewritten agreement under subdivision 2, and (ii) the countytreasurer, when making property tax settlements of the propertytax collected on eligible property, shall deduct the full amountof the tax abatement granted to the eligible property under thissection from the property tax distribution made to the taxincrement financing district.
Sec. 38. Minnesota Statutes 1994, section 469.040, is amendedby adding a subdivision to read:
Subd. 4. [FACILITIES FUNDED FROM MULTIPLE SOURCES.]In the metropolitan area, as defined in section 473.121,subdivision 2, the tax treatment provided in subdivision 3applies to that portion of any multifamily rental housingfacility represented by the ratio of (1) the number of units inthe facility that are subject to the requirements of Section 5 ofthe United States Housing Act of 1937, as the result of theimplementation of a federal court order or consent decree to (2)the total number of units within the facility.
The housing and redevelopment authority for the city inwhich the facility is located, any public entity exercising thepowers of such housing and redevelopment authority, or the countyhousing and redevelopment authority for the county in which thefacility is located, shall annually certify to the assessorresponsible for assessing the facility, at the time and in themanner required by the assessor, the number of units in thefacility that are subject to the requirements of Section 5 of theUnited States Housing Act of 1937.
Nothing in this subdivision shall prevent that portion ofthe facility not subject to this subdivision from meeting therequirements of section 273.1317, and for that purpose the totalnumber of units in the facility must be takeninto account.
Sec. 39. Minnesota Statutes 1994, section 471.59, is amendedby adding a subdivision to read:
Subd. 13. [JOINT POWERS BOARD FOR HOUSING.] (a) Forpurposes of implementing a federal court order or decree, two ormore housing and redevelopment authorities, or public entitiesexercising the public housing powers of housing and redevelopmentauthorities, may by adoption of a joint powers agreement thatcomplies with the provisions of subdivisions 1 to 5, establish ajoint board for the purpose of acquiring an interest in,rehabilitating,
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9824constructing, owning, or managing low-rent public housing locatedin the metropolitan area, as defined in section 473.121,subdivision 2, and financed, in whole or in part, with federalfinancial assistance under Section 5 of the United States HousingAct of 1937. The joint board established pursuant to thissubdivision shall:
(1) be composed of members designated by the governingbodies of the governmental units which established such jointboard, and possess such representative and voting power providedby the joint powers agreement;
(2) constitute a public body, corporate, and politic;and
(3) notwithstanding the provisions of subdivision 1,requiring commonality of powers between parties to a joint powersagreement, and solely for the purpose of acquiring an interestin, rehabilitating, constructing, owning, or managing federallyfinanced low-rent public housing, shall possess all of the powersand duties contained in sections 469.001 to 469.047 and, if atleast one participant is an economic development authority,sections 469.090 to 469.1081, except (i) as may be otherwiselimited by the terms of the joint powers agreement; and (ii) ajoint board shall not have the power to tax pursuant to section469.033, subdivision 6, or section 469.107, nor shall it exercisethe power of eminent domain. Every joint powers agreementestablishing a joint board shall specifically provide which andunder what circumstances the powers granted herein may beexercised by that joint board.
(b) If a housing and redevelopment authority exists in acity which intends to participate in the creation of a jointboard pursuant to paragraph (a), such housing and redevelopmentauthority shall be the governmental unit which enters into thejoint powers agreement unless it determines not to do so, inwhich event the governmental entity which enters into the jointpowers agreement may be any public entity of that city whichexercises the low-rent public housing powers of a housing andredevelopment authority.
(c) A joint board shall not make any contract with thefederal government for low-rent public housing, unless thegoverning body or bodies creating the participating authority inwhose jurisdiction the housing is located has, by resolution,approved the provision of that low-rent public housing.
(d) This subdivision shall not apply to any housing andredevelopment authority, or public entity exercising the powersof a housing and redevelopment authority, within the jurisdictionof a county housing and redevelopment authority which is activelycarrying out a public housing program under Section 5 of theUnited States Housing Act of 1937. For purposes of thisparagraph, a county housing and redevelopment authority shall beconsidered to be actively carrying out a public housing programunder Section 5 of the United States Housing Act of 1937, if it(1) owns 200 or more public housing units constructed underSection 5 of the United States Housing Act of 1937, and (2) hasapplied for public housing development funds under Section 5 ofthe United States Housing Act of 1937, during the three yearsimmediately preceding January 1, 1996.
(e) For purposes of sections 469.001 to 469.047, "city"means the city in which the housing units with respect to whichthe joint board was created are located and "governing body" or"governing body creating the authority" means the council of suchcity.
Sec. 40. Minnesota Statutes 1995 Supplement, section 471.6965,is amended to read:
471.6965 [PUBLICATION OF SUMMARY BUDGET STATEMENT.]
Annually, upon adoption of the city budget, the city councilshall publish a summary budget statement in either of thefollowing:
(1) the official newspaper of the city, or if there is none, ina qualified newspaper of general circulation in the city; or
(2) for a city in the metropolitan area as defined insection 473.121, subdivision 2, a city newsletter or othercity mailing sent to all households in the city.
If the summary budget statement is published in a citynewsletter, it must be the lead story. If the summary budgetstatement is published through a city newsletter or other citymailing, a copy of the newsletter or mailing shall be sent onrequest to any nonresident. If the summary budget statement ispublished by a mailing to households other than a newsletter, thecolor of the paper on which the summary budget statement isprinted must be distinctively different than the paper containingother printed material included in the mailing.
If the budget statement is mailed to households, the citymay also include a notice notifying taxpayers when the city willbegin its budget process for the current year and encouragingtaxpayers to attend the hearings. A telephone number wheretaxpayers can check on the dates and times of those futurehearings should be included.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9825The statement shall contain information relating to anticipatedrevenues and expenditures, in a form prescribed by the stateauditor. The form prescribed shall be designed so thatcomparisons can be made between the current year and the budgetyear. A note shall be included that the complete budget isavailable for public inspection at a designated location withinthe city.
Sec. 41. Minnesota Statutes 1995 Supplement, section 473.448,is amended to read:
473.448 [COUNCIL; EXEMPTION FROM TAXATION TRANSITASSETS EXEMPT FROM TAX BUT MUST PAY ASSESSMENTS.]
(a) Notwithstanding any other provision of law to thecontrary, the properties, moneys, and other assets of the councilused for transit operations or for special transportationservices and all revenues or other income from the council'stransit operations or special transportation services shallbe are exempt from all taxation, licenses, orfees, or charges of any kind imposed by the state or byany county, municipality, political subdivision, taxing district,or other public agency or body of the state.
(b) Notwithstanding paragraph (a), the council's transitproperties are subject to special assessments levied by apolitical subdivision for a local improvement in amountsproportionate to and not exceeding the special benefit receivedby the properties from the improvement.
Sec. 42. [APPLICATION.]
Section 41 applies in the counties of Anoka, Carver, Dakota,Hennepin, Ramsey, Scott, and Washington.
Sec. 43. Minnesota Statutes 1994, section 473.625, is amendedto read:
473.625 [DETACHMENT OF CERTAIN MAJOR AIRPORTS LAND FROMCITIES AND SCHOOL DISTRICTS.]
(a) Lands constituting any major airport or a partthereof now and which may hereafter be operated by any publiccorporation organized under sections 473.601 to 473.679, andembraced within any city or school district organized under thelaws of the state, are hereby detached from such city or schooldistrict.
(b)(i) Except as provided in clause (ii), real and personalproperty, including real and personal property otherwise taxableunder section 272.01, constituting all or part of an intermediateairport operated by a public corporation organized under sections473.601 to 473.679 and embraced within a home rule charter orstatutory city or school district is exempt from taxation by thecity or school district.
(ii) The county assessor of the county where the propertyunder this paragraph is located shall determine the total marketvalue for all property at that site for assessment year 2001,compare it to the market value of the property existing on thatsite for the 1996 assessment, and report those market values tothe commission. If the total market value has not increased byat least 20 percent, the property tax exemption under clause (i)shall expire and the property shall be taxable beginning inassessment year 2001 and thereafter, for taxes payable in 2002and thereafter. The provisions of section 473.629 apply to landsexempted from property tax under this paragraph.
(c) For the purposes of this section, an intermediateairport is an airport that as of March 14, 1996, is a primaryreliever airport, provides general aviation services, has aprimary runway between 5,001 and 8,000 feet in length, and hasprecision instrument capability.
Sec. 44. Minnesota Statutes 1994, section 477A.011,subdivision 3, is amended to read:
Subd. 3. [POPULATION.] "Population" means the populationestablished as of July 1 in an aid calculation year by themost recent federal census, by a special census conducted undercontract with the United States Bureau of the Census, by apopulation estimate made by the metropolitan council, or by apopulation estimate of the state demographer made pursuant tosection 4A.02, whichever is the most recent as to the stated dateof the count or estimate for the preceding calendar year. Theterm "per capita" refers to population as defined by thissubdivision.
Sec. 45. Minnesota Statutes 1995 Supplement, section477A.0121, subdivision 4, is amended to read:
Subd. 4. [PUBLIC DEFENDER COSTS.] Each calendar year,two 1.5 percent of the total appropriation for thissection shall be retained by the commissioner of revenue to makereimbursements to the commissioner of finance for payments madeunder section 611.27. The reimbursements shall be to defray theadditional costs associated with
court-ordered counsel under section 611.27. Any retained amountsnot used for reimbursement in a year shall be included in thenext distribution of county criminal justice aid that iscertified to the county auditors for the purpose of property taxreduction for the next taxes payable year.
Sec. 46. Minnesota Statutes 1995 Supplement, section477A.0132, is amended to read:
477A.0132 [AID REDUCTIONS TO LOCAL GOVERNMENTS.]
Subdivision 1. [AFFECTED LOCAL GOVERNMENTS.] The followingreductions shall be made in aids paid to the following localunits of government:
(a) For aids payable in 1996, there shall be a nonpermanentreduction in aids to counties, cities, towns, and special taxingdistricts of $16,000,000, provided that Laws 1995, chapter 264,article 8, section 25, subdivision 1, is enacted; otherwise thereduction is $14,000,000.
(b) Aid reductions required under section 16A.711, subdivision5, shall be nonpermanent reductions in aids to counties, cities,towns, and special taxing districts equal to the differencebetween the aid amounts certified to be paid and the amount ofthe appropriation to pay the aids.
(c) For aids payable in 1996 there shall be a permanentreduction in aids to counties of $10,000,000, provided that Laws1995, chapter 264, article 8, section 16, is enacted.
(d) For aids payable in 1997 there shall be a permanentreduction in aids to county regional rail authorities andcounties of $6,800,000, provided that section 45 isenacted.
Subd. 2. [CALCULATION OF AID REDUCTION.] The aid reduction toeach local government as provided under subdivision 1 will beequal to the product of the reduction percentage and itsreduction base. The reduction base is defined as thefollowing:
(a) For subdivision 1, clause (a), the reduction base is equalto the adjusted revenue base for 1996.
(b) For subdivision 1, clause (b), the reduction base is equalto the adjusted revenue base for the year in which the aidpayment is to be made.
(c) For subdivision 1, clause (c), the reduction base is acounty's aid in calendar year 1996 under section 477A.0121.
(d) For subdivision 1, clause (d), the reduction base is acounty's aid in calendar year 1997 under section477A.0121.
Reductions under subdivisions 1, paragraph (a), and 2,paragraph (a), to any individual county, city, or town arelimited to an amount equal to 0.45 percent of the unit's 1994adjusted net tax capacity. For this subdivision, "adjusted nettax capacity" means the political subdivision's net tax capacitycalculated using the method for calculating city net tax capacityunder section 477A.011, subdivision 20.
Subd. 3. [ORDER OF AID REDUCTIONS.] (a) The aid reduction to alocal government calculated under subdivisions 1, paragraphs (a)and (c), and 2, paragraphs (a) and (c), is applied to homesteadand agricultural credit aid under section 273.1398 only.
(b) The aid reduction to a local government calculated undersubdivisions 1, paragraph (d), and 2, paragraph (d), is appliedto homestead and agricultural credit aid paid under section273.1398 only; the amount is first subtracted from the amountpaid to a county's regional rail authority, if there is one, andthen from the county's general homestead and agricultural creditaid.
(c) The aid reduction to a local government ascalculated under other paragraphs of subdivisions 1 and 2, isfirst applied to its local government aid under sections 477A.012and 477A.013 excluding aid under section 477A.013, subdivision 5;then, if necessary, to its equalization aid under section477A.013, subdivision 5; then if necessary, to its homestead andagricultural credit aid under section 273.1398, subdivision 2;and then, if necessary, to its disparity reduction aid undersection 273.1398, subdivision 3. No aid payment may be less than$0. Aid reductions under this section in any given year shall bedivided equally between the July and December aid payments unlessspecified otherwise.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9827Sec. 47. Minnesota Statutes 1995 Supplement, section 477A.03,subdivision 2, is amended to read:
Subd. 2. [ANNUAL APPROPRIATION.] A sum sufficient to dischargethe duties imposed by sections 477A.011 to 477A.014 is annuallyappropriated from the general fund to the commissioner ofrevenue. For aids payable in 1996 and thereafter, the total aidspaid under sections 477A.013, subdivision 9, and 477A.0122 arethe amounts certified to be paid in the previous year, adjustedfor inflation as provided under subdivision 3. Aid payments tocounties under section 477A.0121 are limited to $20,265,000 in1996. Aid payments to counties under section 477A.0121 arelimited to $27,571,625 in 1997. For aid payable in1997 1998 and thereafter, the total aids paid undersection 477A.0121 are the amounts certified to be paid in theprevious year, adjusted for inflation as provided undersubdivision 3.
Sec. 48. [477A.05] [LOCAL PERFORMANCE AID.]
Subdivision 1. [QUALIFICATION.] By May 15, 1996, andMarch 31 of each year thereafter, the commissioner shall send alocal performance aid qualification form to each county and cityin the state. Jurisdictions that are eligible to receive the aidmust return the completed form by June 30 in order to receive aidin the following calendar year. For each determinator specifiedin subdivision 2, the form shall have a space for thejurisdiction to indicate that it has satisfied the conditions ofthe determinator. For counties, the form must be signed by thechair of the county board. For cities, the form must be signedby the mayor and a member of the city council.
Subd. 2. [ELIGIBILITY DETERMINATOR.] For calendaryear 1997 and subsequent calendar years, a jurisdiction iseligible to receive local performance aid if the jurisdictionaffirms that it has developed a system of performance measuresfor the services provided by the jurisdiction, and that thesemeasures are regularly compiled and presented to the county boardor the city council at least once a year. A jurisdiction is alsoeligible for aid under this determinator if it affirms that it isin the process of developing and implementing a system ofperformance measures; however, eligibility based upon being inthe process of development may not be used for more than twoconsecutive years.
Subd. 3. [DETERMINATION OF AID AMOUNT.] Thecommissioner shall sum the populations of all jurisdictions thathave met the condition specified in subdivision 2. Thecommissioner shall determine a per capita aid amount by dividingthe aggregate aid available under subdivision 5 by the sum of thepopulations for all qualifying jurisdictions, separately forcounties and cities. Each jurisdiction shall then be eligiblefor aid equal to the jurisdictions's population times the percapita aid amount. For purposes of this subdivision, populationmeans the most recent population established under section477A.011, subdivision 3 in the year in which the aid isdetermined.
Subd. 4. [NOTIFICATION AND PAYMENT.] Jurisdictionsshall be notified of their aid under this section at the sametime as the notification for aid under section 477A.014,subdivision 1. Payments of aid under this section shall be madeon the dates prescribed in section 477A.015.
Subd. 5. [APPROPRIATION.] For payments to countiesunder this section, there is annually appropriated from thegeneral fund to the commissioner of revenue an amount equal tothe sum of $558,625 plus the amount by which county aids werereduced under section 49, adjusted for inflation as providedunder section 477A.03, subdivision 3. For payments to citiesunder this section, there is annually appropriated from thegeneral fund to the commissioner of revenue an amount equal tothe sum of $441,735 plus the amount by which city aids werereduced under section 49, adjusted for inflation as providedunder section 477A.03, subdivision 3.
Sec. 49. [AID REDUCTION.]
Calendar year 1997 aids to counties and cities under section273.1398, subdivision 2, shall be permanently reduced by anamount equal to $1 times the most recent population of thejurisdiction, established under section 477A.011, subdivision 3in the year in which the aid is determined.
Sec. 50. Laws 1989, chapter 211, section 4, subdivision 1, isamended to read:
Subdivision 1. [EXPENSES PAID FROM REVENUE, TAXES, ANDAPPROPRIATIONS; TAX LIMITS.] Expenses of acquiring, improving,and running medical clinic facilities operated by the medicalclinic district, and expenses of organization and administrationof the district and of planning and financing the facilities,must be paid from the revenues derived from them, and to theextent necessary, from property taxes levied by the medicalclinic board on all taxable property within the district. Taxeslevied by the board in any year may not exceed $30,000$50,000.
Sec. 51. [RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.]
Subdivision 1. [LEVY AUTHORIZED.] Notwithstandingother law to the contrary, the Carlton county board ofcommissioners may levy in and for the unorganized township ofSawyer an amount up to $1,500 annually for recreational purposes,beginning with taxes payable in 1997 and ending with taxespayable in 2006.
Subd. 2. [EFFECTIVE DATE.] This section is effectiveJune 1, 1996, without local approval.
Sec. 52. [ONE YEAR DELAY; PROPERTY TAX REFUND ON TAXSTATEMENT.]
The dates contained in Laws 1995, chapter 264, article 4,sections 16, 17, 18, 19, and 20 are delayed for a period of oneyear from the dates contained in those sections.
Sec. 53. [TEMPORARY ABATEMENT AUTHORITY.]
Notwithstanding any law to the contrary, a county board mayabate, in full or part, unpaid property taxes, interest, andpenalties, if all the following conditions are satisfied:
(1) The property contains a vacant hotel building,constructed before 1930 and in need of substantial rehabilitationand repair.
(2) The property contains a building listed on the nationalregister or is located in a registered historic district.
(3) At least three years of property taxes areunpaid.
(4) The property is located in a city with a population ofless than 5,000.
(5) The city or another public development authority hasentered into a contract or development agreement with a privateperson or entity who agrees to substantially rehabilitate thebuilding.
(6) The abatement is granted before January 1, 1997.
Sec. 54. [REVISOR INSTRUCTIONS.]
(a) In the next edition of Minnesota Statutes, the revisorshall renumber section 383.06, subdivision 2, as section 373.01,subdivision 4.
(b) In the next edition of Minnesota Statutes, the revisorshall change the references in Minnesota Statutes,section 290A.26, from "fiscal year 1998" to "fiscal year 1999"and from "fiscal year 1999" to "fiscal year 2000."
Sec. 55. [REPEALER.]
Minnesota Statutes 1994, section 273.1398, subdivision 5b,is repealed.
Sec. 56. [EFFECTIVE DATE.]
Section 1 is effective for lien amounts first becomingpayable in 1996 and thereafter.
Section 2 is effective for referenda held in November of1996 and thereafter.
Sections 3, 4, 7, 9, 11, 19, 22, 24, 32, 34, 38, 39, and 53are effective the day following final enactment.
Sections 5, 6, 8, 10, 36, 37, 43, and 50 are effective forthe 1996 assessment and thereafter, for taxes payable in 1997,and thereafter.
Sections 13 to 15, 45 to 49, and 55 are effective for aidspaid in 1997 and thereafter.
Section 16 is effective for notices prepared in 1996 fortaxes payable in 1997, and thereafter.
Section 17 is effective for public advertisements beginningin 1996 and thereafter.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9829Section 18 is effective for public hearings held in 1996 andthereafter.
Section 25 is effective for petitions filed after the day offinal enactment.
Section 31 is effective for mortgages recorded or registeredafter the day of final enactment.
Section 33 is effective for refunds for taxes payable in1997.
Section 35 is effective for timely filed property tax refundclaims based on rent paid in 1996 and property taxes payable in1997, and thereafter.
Section 40 is effective for publication of budget statementsbeginning in 1997.
Section 44 is effective for calculations in 1996 andthereafter, for aids payable in 1997 and thereafter.
Section 1. Minnesota Statutes 1995 Supplement, section289A.02, subdivision 7, is amended to read:
Subd. 7. [INTERNAL REVENUE CODE.] Unless specifically definedotherwise, "Internal Revenue Code" means the Internal RevenueCode of 1986, as amended through April 15, 1995 March22, 1996, and includes the provisions of section 1(a) and (b) ofPublic Law Number 104-117.
Sec. 2. Minnesota Statutes 1994, section 289A.39, subdivision1, is amended to read:
Subdivision 1. [EXTENSIONS FOR SERVICE MEMBERS.] (a) Thelimitations of time provided by this chapter, chapter 290relating to income taxes, chapter 271 relating to the tax courtfor filing returns, paying taxes, claiming refunds, commencingaction thereon, appealing to the tax court from orders relatingto income taxes, and the filing of petitions under chapter 278that would otherwise be due May 15, 1991 1996, andappealing to the Supreme Court from decisions of the tax courtrelating to income taxes are extended, as provided in section7508 of the Internal Revenue Code.
(b) If a member of the national guard or reserves is called toactive duty in the armed forces, the limitations of time providedby this chapter and chapters 290 and 290A relating to incometaxes and claims for property tax refunds are extended by thefollowing period of time:
(1) in the case of an individual whose active service is in theUnited States, six months; or
(2) in the case of an individual whose active service includesservice abroad, the period of initial service plus six months.
Nothing in this paragraph reduces the time within which an actis required or permitted under paragraph (a).
(c) If an individual entitled to the benefit of paragraph (a)files a return during the period disregarded under paragraph (a),interest must be paid on an overpayment or refundable credit fromthe due date of the return, notwithstanding section 289A.56,subdivision 2.
(d) The provisions of this subdivision apply to the spouse ofan individual entitled to the benefits of this subdivision withrespect to a joint return filed by the spouses.
Sec. 3. Minnesota Statutes 1995 Supplement, section 290.01,subdivision 19, is amended to read:
Subd. 19. [NET INCOME.] The term "net income" means thefederal taxable income, as defined in section 63 of the InternalRevenue Code of 1986, as amended through the date named in thissubdivision, incorporating any elections made by the taxpayer inaccordance with the Internal Revenue Code in determining federaltaxable income for federal income tax purposes, and with themodifications provided in subdivisions 19a to 19f.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9830In the case of a regulated investment company or a fundthereof, as defined in section 851(a) or 851(h) of the InternalRevenue Code, federal taxable income means investment companytaxable income as defined in section 852(b)(2) of the InternalRevenue Code, except that:
(1) the exclusion of net capital gain provided in section852(b)(2)(A) of the Internal Revenue Code does not apply; and
(2) the deduction for dividends paid under section 852(b)(2)(D)of the Internal Revenue Code must be applied by allowing adeduction for capital gain dividends and exempt-interestdividends as defined in sections 852(b)(3)(C) and 852(b)(5) ofthe Internal Revenue Code.
The net income of a real estate investment trust as defined andlimited by section 856(a), (b), and (c) of the Internal RevenueCode means the real estate investment trust taxable income asdefined in section 857(b)(2) of the Internal Revenue Code.
The net income of a designated settlement fund as defined insection 468B(d) of the Internal Revenue Code means the grossincome as defined in section 468B(b) of the Internal RevenueCode.
The Internal Revenue Code of 1986, as amended through December31, 1986, shall be in effect for taxable years beginning afterDecember 31, 1986. The provisions of sections 10104, 10202,10203, 10204, 10206, 10212, 10221, 10222, 10223, 10226, 10227,10228, 10611, 10631, 10632, and 10711 of the Omnibus BudgetReconciliation Act of 1987, Public Law Number 100-203, theprovisions of sections 1001, 1002, 1003, 1004, 1005, 1006, 1008,1009, 1010, 1011, 1011A, 1011B, 1012, 1013, 1014, 1015, 1018,2004, 3041, 4009, 6007, 6026, 6032, 6137, 6277, and 6282 of theTechnical and Miscellaneous Revenue Act of 1988, Public LawNumber 100-647, and the provisions of sections 7811, 7816, and7831 of the Omnibus Budget Reconciliation Act of 1989, Public LawNumber 101-239, shall be effective at the time they becomeeffective for federal income tax purposes.
The Internal Revenue Code of 1986, as amended through December31, 1987, shall be in effect for taxable years beginning afterDecember 31, 1987. The provisions of sections 4001, 4002, 4011,5021, 5041, 5053, 5075, 6003, 6008, 6011, 6030, 6031, 6033, 6057,6064, 6066, 6079, 6130, 6176, 6180, 6182, 6280, and 6281 of theTechnical and Miscellaneous Revenue Act of 1988, Public LawNumber 100-647, the provisions of sections 7815 and 7821 of theOmnibus Budget Reconciliation Act of 1989, Public Law Number101-239, and the provisions of section 11702 of the RevenueReconciliation Act of 1990, Public Law Number 101-508, shallbecome effective at the time they become effective for federaltax purposes.
The Internal Revenue Code of 1986, as amended through December31, 1988, shall be in effect for taxable years beginning afterDecember 31, 1988. The provisions of sections 7101, 7102, 7104,7105, 7201, 7202, 7203, 7204, 7205, 7206, 7207, 7210, 7211, 7301,7302, 7303, 7304, 7601, 7621, 7622, 7641, 7642, 7645, 7647, 7651,and 7652 of the Omnibus Budget Reconciliation Act of 1989, PublicLaw Number 101-239, the provision of section 1401 of theFinancial Institutions Reform, Recovery, and Enforcement Act of1989, Public Law Number 101-73, and the provisions of sections11701 and 11703 of the Revenue Reconciliation Act of 1990, PublicLaw Number 101-508, shall become effective at the time theybecome effective for federal tax purposes.
The Internal Revenue Code of 1986, as amended through December31, 1989, shall be in effect for taxable years beginning afterDecember 31, 1989. The provisions of sections 11321, 11322,11324, 11325, 11403, 11404, 11410, and 11521 of the RevenueReconciliation Act of 1990, Public Law Number 101-508, and theprovisions of sections 13224 and 13261 of the Omnibus BudgetReconciliation Act of 1993, Public Law Number 103-66, shallbecome effective at the time they become effective for federalpurposes.
The Internal Revenue Code of 1986, as amended through December31, 1990, shall be in effect for taxable years beginning afterDecember 31, 1990.
The provisions of section 13431 of the Omnibus BudgetReconciliation Act of 1993, Public Law Number 103-66, shallbecome effective at the time they became effective for federalpurposes.
The Internal Revenue Code of 1986, as amended through December31, 1991, shall be in effect for taxable years beginning afterDecember 31, 1991.
The provisions of sections 1936 and 1937 of the ComprehensiveNational Energy Policy Act of 1992, Public Law Number 102-486,and the provisions of sections 13101, 13114, 13122, 13141, 13150,13151, 13174, 13239, 13301, and 13442 of the Omnibus BudgetReconciliation Act of 1993, Public Law Number 103-66, shallbecome effective at the time they become effective for federalpurposes.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9831The Internal Revenue Code of 1986, as amended through December31, 1992, shall be in effect for taxable years beginning afterDecember 31, 1992.
The provisions of sections 13116, 13121, 13206, 13210, 13222,13223, 13231, 13232, 13233, 13239, 13262, and 13321 of theOmnibus Budget Reconciliation Act of 1993, Public Law Number103-66, shall become effective at the time they become effectivefor federal purposes.
The Internal Revenue Code of 1986, as amended through December31, 1993, shall be in effect for taxable years beginning afterDecember 31, 1993.
The provision of section 741 of Legislation to ImplementUruguay Round of General Agreement on Tariffs and Trade, PublicLaw Number 103-465, and the provisions of sections 1, 2, and 3,of the Self-Employed Health Insurance Act of 1995, Public LawNumber 104-7, shall become effective at the time they becomeeffective for federal purposes.
The Internal Revenue Code of 1986, as amended through December31, 1994, shall be in effect for taxable years beginning afterDecember 31, 1994.
The Internal Revenue Code of 1986, as amended through March22, 1996, is in effect for taxable years beginning after December31, 1995.
The provisions of Public Law Number 104-117 become effectiveat the time they become effective for federal purposes.
Except as otherwise provided, references to the InternalRevenue Code in subdivisions 19a to 19g mean the code in effectfor purposes of determining net income for the applicableyear.
Sec. 4. Minnesota Statutes 1995 Supplement, section 290.01,subdivision 31, is amended to read:
Subd. 31. [INTERNAL REVENUE CODE.] Unless specifically definedotherwise, "Internal Revenue Code" means the Internal RevenueCode of 1986, as amended through April 15, 1995 March22, 1996, and includes the provisions of section 1(a) and (b) ofPublic Law Number 104-117.
Sec. 5. Minnesota Statutes 1995 Supplement, section 291.005,subdivision 1, is amended to read:
Subdivision 1. Unless the context otherwise clearly requires,the following terms used in this chapter shall have the followingmeanings:
(1) "Federal gross estate" means the gross estate of a decedentas valued and otherwise determined for federal estate taxpurposes by federal taxing authorities pursuant to the provisionsof the Internal Revenue Code.
(2) "Minnesota gross estate" means the federal gross estate ofa decedent after (a) excluding therefrom any property includedtherein which has its situs outside Minnesota and (b) includingtherein any property omitted from the federal gross estate whichis includable therein, has its situs in Minnesota, and was notdisclosed to federal taxing authorities.
(3) "Personal representative" means the executor, administratoror other person appointed by the court to administer and disposeof the property of the decedent. If there is no executor,administrator or other person appointed, qualified, and actingwithin this state, then any person in actual or constructivepossession of any property having a situs in this state which isincluded in the federal gross estate of the decedent shall bedeemed to be a personal representative to the extent of theproperty and the Minnesota estate tax due with respect to theproperty.
(4) "Resident decedent" means an individual whose domicile atthe time of death was in Minnesota.
(5) "Nonresident decedent" means an individual whose domicileat the time of death was not in Minnesota.
(6) "Situs of property" means, with respect to real property,the state or country in which it is located; with respect totangible personal property, the state or country in which it wasnormally kept or located at the time of the decedent's death; andwith respect to intangible personal property, the state orcountry in which the decedent was domiciled at death.
(7) "Commissioner" means the commissioner of revenue or anyperson to whom the commissioner has delegated functions underthis chapter.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9832 (8) "Internal Revenue Code" means the United States InternalRevenue Code of 1986, as amended throughApril 15, 1995 March 22, 1996, and includes theprovisions of section 1(a)(4) of Public Law Number104-117.
Sec. 6. [EFFECTIVE DATE.]
Sections 1, 4, and 5 are effective at the same time section1 of Public Law Number 104-117 is effective. Section 2 iseffective for taxable years beginning after December 31, 1994,and claims for property tax refunds filed after the day of finalenactment.
Section 1. Minnesota Statutes 1995 Supplement, section 41A.09,subdivision 2a, is amended to read:
Subd. 2a. [DEFINITIONS.] For the purposes of this section, theterms defined in this subdivision have the meanings giventhem.
(a) "Ethanol" means fermentation ethyl alcohol derived fromagricultural products, including potatoes, cereal, grains, cheesewhey, and sugar beets; forest products; or other renewableresources, including residue and waste generated from theproduction, processing, and marketing of agricultural products,forest products, and other renewable resources, that:
(1) meets all of the specifications in ASTM specification D4806-88; and
(2) is denatured with unleaded gasoline or rubberhydrocarbon solvent as defined specified inCode of Federal Regulations, title 27, parts 211 20and 212, as adopted by the Bureau of Alcohol, Tobacco andFirearms of the United States Treasury Department21.
(b) "Wet alcohol" means agriculturally derived fermentationethyl alcohol having a purity of at least 50 percent but lessthan 99 percent.
(c) "Anhydrous alcohol" means fermentation ethyl alcoholderived from agricultural products as described in paragraph (a),but that does not meet ASTM specifications or is not denaturedand is shipped in bond for further processing.
(d) "Ethanol plant" means a plant at which ethanol, anhydrousalcohol, or wet alcohol is produced.
Sec. 2. Minnesota Statutes 1994, section 239.761, subdivision5, is amended to read:
Subd. 5. [DENATURED ETHANOL.] Denatured ethanol that is to beblended with gasoline must be agriculturally derived and mustcomply with ASTM specification D 4806-88. This includes therequirement that ethanol may be denatured only with specifiedconcentrations of unleaded gasoline or rubber hydrocarbonsolvent as defined specified in Code of FederalRegulations, title 27, parts 211 20 and 212, asadopted by the Bureau of Alcohol, Tobacco and Firearms of theUnited States Treasury Department 21.
Sec. 3. Minnesota Statutes 1994, section 296.01, subdivision2, is amended to read:
Subd. 2. [AGRICULTURAL ALCOHOL GASOLINE.] "Agriculturalalcohol gasoline" means a gasoline-ethanol blend of up to tenpercent agriculturally derived fermentation ethanol derived fromagricultural products, such as potatoes, cereal, grains, cheesewhey, sugar beets, or forest products or other renewableresources, that:
(1) meets the specifications in ASTM specification D 4806-88;and
(2) is denatured with unleaded gasoline or rubberhydrocarbon solvent as defined specified inCode of Federal Regulations, title 27, parts 211 20and 212, as adopted by the Bureau of Alcohol, Tobacco andFirearms of the United States Treasury Department21.
Sec. 4. Minnesota Statutes 1994, section 296.01, subdivision13, is amended to read:
Subd. 13. [DENATURED ETHANOL.] "Denatured ethanol" meansethanol that is to be blended with gasoline, has beenagriculturally derived, and complies with ASTM specification D4806-88. This includes the requirement that ethanol may bedenatured only with specified concentrations of unleadedgasoline or rubber hydrocarbon solvent as definedspecified in Code of Federal Regulations, title 27, parts211 20 and 212, as adopted by the Bureau ofAlcohol, Tobacco and Firearms of the United States TreasuryDepartment 21.
Sec. 5. Minnesota Statutes 1995 Supplement, section 296.02,subdivision 1, is amended to read:
Subdivision 1. [TAX IMPOSED; EXCEPTION FOR QUALIFIEDSERVICE STATION.] There is imposed an excise tax on gasoline,gasoline blended with ethanol, and agricultural alcohol gasoline,used in producing and generating power for propelling motorvehicles used on the public highways of this state. The taxis imposed on the first distributor who received the product inMinnesota. For purposes of this section, gasoline is definedin section 296.01, subdivisions 10, 15b, 18, 19, 20, and 24a.This tax is payable at the times, in the manner, and by personsspecified in this chapter. The tax is payable at the ratespecified in subdivision 1b, subject to the exceptions andreductions specified in this section.
(a) Notwithstanding any other provision of law to thecontrary, the tax imposed on special fuel sold by a qualifiedservice station may not exceed, or the tax on gasoline deliveredto a qualified service station must be reduced to, a rate notmore than three cents per gallon above the state tax rate imposedon such products sold by a service station in a contiguous statelocated within the distance indicated in clause (b).
(b) A "qualifying service station" means a service stationlocated within 7.5 miles, measured by the shortest route bypublic road, from a service station selling like product in thecontiguous state.
(c) A qualified service station shall be allowed a credit bythe supplier or distributor, or both, for the amount of reductioncomputed in accordance with clause (a).
A qualified service station, before receiving the credit,shall be registered with the commissioner of revenue.
Sec. 6. Minnesota Statutes 1994, section 296.02, is amended byadding a subdivision to read:
Subd. 1c. [QUALIFYING SERVICE STATIONS.]Notwithstanding any other provision of law to the contrary,the tax imposed on gasoline or undyed diesel fuel delivered to aqualified service station may not exceed, or must be reduced to,a rate not more than three cents per gallon above the state taxrate imposed on such products sold by a service station in acontiguous state located within the distance indicated in thissubdivision.
A distributor shall be allowed a credit or refund for theamount of reduction computed in accordance withthis subdivision.
For purposes of this subdivision, a "qualifying servicestation" means a service station located within 7.5 miles,measured by the shortest route by public road, from a servicestation selling like product in the contiguous state.
Sec. 7. Minnesota Statutes 1994, section 296.02, subdivision8, is amended to read:
Subd. 8. [CREDITS FOR SALES TO GOVERNMENTS AND SCHOOLS.]Until October 1, 1999, a distributor shall be allowed acredit of 80 cents for every on each gallon of fuelgrade alcohol blended with gasoline to produce agriculturalalcohol gasoline which is sold to the state, local units ofgovernment, or for use in the transportation of pupils to andfrom school-related events in vehicles owned by or under contractto a school district. This reduction is in lieu of thereductions provided in subdivision 7.
The amount of the credit for every gallon is:
(1) until October 1, 1996, 80 cents;
(2) until October 1, 1997, 60 cents;
(3) until October 1, 1998, 40 cents; and
(4) until October 1, 1999, 20 cents.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9834Sec. 8. Minnesota Statutes 1995 Supplement, section 296.025,subdivision 1, is amended to read:
Subdivision 1. [TAX IMPOSED.] There is hereby imposed anexcise tax on all special fuel at the rates specified insubdivision 1b. For undyed diesel fuel, the tax is imposed onthe first distributor who received the product in Minnesota. Fordyed fuel being used illegally in a licensed motor vehicle, thetax is imposed on the owner or operator of the motor vehicle,or in some instances, on the dealer who supplied the fuel. For dyed fuel used in a motor vehicle but subject to a federalexemption, although no federal tax may be imposed, the fuel issubject to owner or operator of the vehicle is liablefor the state tax. For other fuels, including jet fuel,propane, and compressed natural gas, the tax is imposed on thedistributor, special fuel dealer, or bulk purchaser. This tax ispayable at the time and in the manner specified in this chapter. For purposes of this section, "owner or operator" means theoperation of licensed motor vehicles, whether loaded or empty,whether for compensation or not for compensation, and whetherowned by or leased to the motor carrier who operates them orcauses them to be operated.
Sec. 9. Minnesota Statutes 1994, section 296.025, subdivision6, is amended to read:
Subd. 6. [WHEN FUEL DEEMED SPECIAL FUEL; TAX.] All sales ofcombustible gases and liquid petroleum products (except gasoline)shall be deemed to be sales of special fuel if the sales tickets,invoices, and records evidencing such sales fail to show the trueand correct names and addresses of the purchasers. In suchcases, there is hereby imposed an excise tax of the same rateper gallon as the gasoline excise tax on all such combustiblegases and liquid petroleum products, and the vendor shall beliable for such tax to the extent not previously paid.
Sec. 10. Minnesota Statutes 1995 Supplement, section 296.12,subdivision 3, is amended to read:
Subd. 3. [TAX COLLECTION, REPORTING AND PAYMENT.] (a) Forundyed diesel fuel, the tax is imposed on the distributor whoreceives the fuel.
(b) For all other special fuels, the tax is imposed on thedistributor, bulk purchaser, or special fuel dealer. The tax maybe paid upon receipt or sale as follows:
(1) Distributors and special fuel dealers may, subject to theapproval of the commissioner, elect to pay to the commissionerthe special fuel excise tax on all special fuel delivered or soldinto the supply tank of an aircraft or a licensed motor vehicle. Under this option an invoice must be issued at the time of eachdelivery showing the name and address of the purchaser, date ofsale, number of gallons, price per gallon and total amount ofsale. A separate sales ticket book shall be maintained forspecial fuel sales; and
(2) Bulk purchasers shall report and pay the excise tax on allspecial fuel purchased by them for storage, to the commissionerin the form and manner prescribed by the commissioner.
(c) Any person delivering special fuel on which the excise taxhas not previously been paid, into the supply tank of an aircraftor a licensed motor vehicle shall report such delivery andshall pay, or collect and pay the excise tax on the specialfuel so delivered, to the commissioner.
Sec. 11. Minnesota Statutes 1994, section 296.141, subdivision4, is amended to read:
Subd. 4. [CREDIT OR REFUND OF TAX PAID.] The commissionershall allow the distributor credit or refund of the tax paid ongasoline and special fuel:
(1) exported or sold for export from the state, other than inthe supply tank of a motor vehicle or of an aircraft;
(2) sold to the United States government to be used exclusivelyin performing its governmental functions and activities or to any"cost plus a fixed fee" contractor employed by the United Statesgovernment on any national defense project;
(3) if the fuel is placed in a tank used exclusively forresidential heating;
(4) destroyed by accident while in the possession of thedistributor;
(5) in error;
(6) sold for storage in an on-farm bulk storage tank, if thetax was not collected on the sale; and
(7) (6) in such other cases as the commissionermay permit, not inconsistent with the provisions of this chapterand other laws relating to the gasoline and special fuel excisetaxes.
Sec. 12. Minnesota Statutes 1994, section 296.141, subdivision5, is amended to read:
Subd. 5. [REFUND TO DEALER; DESTRUCTION BY ACCIDENT.]Notwithstanding the provisions of subdivision 4, the commissionershall allow a dealer a refund of the tax paid on gasoline orspecial fuel destroyed by accident while in the possession of thedealer:
(1) the tax paid by the distributor on gasoline or undyeddiesel fuel destroyed by accident while in the possession of thedealer; or
(2) the tax paid by a distributor or special fuels dealer onother special fuels destroyed by accident while in the possessionof the dealer.
Sec. 13. Minnesota Statutes 1994, section 296.15, is amendedby adding a subdivision to read:
Subd. 2a. [IMPOSITION OF CIVIL PENALTY; DYED FUEL.](a) If any dyed fuel is sold or held for sale by a person forany use which the person knows or has reason to know is not anontaxable use of the fuel; or if any dyed fuel is held for useor used in a licensed motor vehicle or for any other use by aperson for a use other than a nontaxable use and the person knew,or had reason to know, that the fuel was so dyed; or if a personwillfully alters, or attempts to alter, the strength orcomposition of any dye or marking in any dyed fuel, then theperson shall pay a penalty in addition to the tax, if any.
(b) Except as provided in paragraph (c), the amount ofpenalty under paragraph (a) for each act is the greater of$1,000, or $10 for each gallon of dyed fuel involved.
(c) With regard to a multiple violation under paragraph (a),the penalty shall be applied by increasing the amount inparagraph (b) by the product of (1) such amount, and (2) thenumber of prior penalties, if any, imposed by this section on theperson, or a related person, or any predecessor of the person orrelated person.
(d) If a penalty is imposed under this section on a businessentity, each officer, employee, or agent of the entity whowillfully participated in any act giving rise to the penalty isjointly and severally liable with the entity forthe penalty.
Sec. 14. Minnesota Statutes 1994, section 296.17, subdivision7, is amended to read:
Subd. 7. [DEFINITIONS.] As used in subdivisions 7 to 22:
(a) "motor fuel" means a liquid, regardless of its compositionor properties, used to propel a motor vehicle;
(b) "commercial motor vehicle" means a passenger vehiclethat has seats for more than 20 passengers in addition to thedriver, or a power unit that (1) has a gross weight in excess of26,000 pounds, or (2) has three or more axles regardless ofweight, or (3) when used in combination, the weight of thecombination exceeds 26,000 pounds gross vehicle weight;motor vehicle used, designed, or maintained for transportationof persons or property that:
(1) has two axles and a gross vehicle weight or registeredgross vehicle weight exceeding 26,000 pounds; or
(2) has three or more axles regardless of weight; or
(3) is used in combination, when the weight of suchcombination exceeds 26,000 pounds gross vehicle or registeredgross vehicle weight. "Commercial motor vehicle" does notinclude recreational vehicles;
(c) "motor carrier" means a person who operates or causes to beoperated a commercial motor vehicle on a highway in thisstate;
(d) "operation" means operation of commercial motor vehicleswhether loaded or empty, whether for compensation or not forcompensation, and whether owned by or leased to the motor carrierwho operates them or causes them to be operated; and
(e) "highway" means the entire width between the boundary linesof every way publicly maintained when part of the highway is openfor the public to travel on.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9836Sec. 15. [REPEALER.]
Minnesota Statutes 1994, section 296.25, subdivision 1a, isrepealed.
Sec. 16. [EFFECTIVE DATE.]
Sections 1 to 6, 8 to 10, and 12 to 15 are effective the dayfollowing final enactment. Section 11 is effective for gasolineor special fuel purchased after July 1, 1996.
Section 1. Minnesota Statutes 1995 Supplement, section 295.50,subdivision 3, is amended to read:
Subd. 3. [GROSS REVENUES.] "Gross revenues" are total amountsreceived in money or otherwise by:
(1) a resident hospital for patient services;
(2) a resident surgical center for patient services;
(3) a nonresident hospital for patient services provided topatients domiciled in Minnesota;
(4) a nonresident surgical center for patient servicesprovided to patients domiciled in Minnesota;
(5) a resident health care provider, other than astaff model health carrier, for patient services;
(6) a nonresident health care provider for patient servicesprovided to an individual domiciled in Minnesota or patientservices provided in Minnesota;
(7) (4) a wholesale drug distributor for sale ordistribution of legend drugs that are delivered: (i) to aMinnesota resident by a wholesale drug distributor who is anonresident pharmacy directly, by common carrier, or by mail; or(ii) in Minnesota by the wholesale drug distributor, by commoncarrier, or by mail, unless the legend drugs are delivered toanother wholesale drug distributor who sells legend drugsexclusively at wholesale. Legend drugs do not includenutritional products as defined in Minnesota Rules, part9505.0325;
(8) (5) a staff model health plan company asgross premiums for enrollees, copayments, deductibles,coinsurance, and fees for patient services covered under itscontracts with groups and enrollees; and
(9) (6) a resident pharmacy for medicalsupplies, appliances, and equipment; and
(10) a nonresident pharmacy for medical supplies,appliances, and equipment provided to consumers domiciled inMinnesota or delivered into Minnesota.
Sec. 2. Minnesota Statutes 1995 Supplement, section 295.50,subdivision 4, is amended to read:
Subd. 4. [HEALTH CARE PROVIDER.] (a) "Health care provider"means:
(1) a person furnishing any or all of the following goods orservices directly to a patient or consumer: medical, surgical,optical, visual, dental, hearing, nursing services, drugs,medical supplies, medical appliances, laboratory, diagnostic ortherapeutic services, or any goods and services not listed abovethat qualify for reimbursement under the medical assistanceprogram provided under chapter 256B. For purposes of thisclause, "directly to a patient or consumer" includes goods andservices provided in connection with independent medicalexaminations under section 65B.56 or other examinations forpurposes of litigation or insurance claims;
(2) a staff model health plan company; or
(3) an ambulance service required to be licensed.
(b) Health care provider does not include hospitals, nursinghomes licensed under chapter 144A or licensed in any otherjurisdiction, pharmacies, surgical centers, bus and taxicabtransportation, or any other providers of transportation servicesother than ambulance services required to be licensed, supervisedliving facilities for persons with mental
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9837retardation or related conditions, licensed under MinnesotaRules, parts 4665.0100 to 4665.9900, residential care homeslicensed under chapter 144B, board and lodging establishmentsproviding only custodial services that are licensed under chapter157 and registered under section 157.031 to provide supportiveservices or health supervision services, adult foster homes asdefined in Minnesota Rules, part 9555.5050 9555.5105,day training and habilitation services for adults with mentalretardation and related conditions as defined in section 252.41,subdivision 3, and boarding care homes, as defined inMinnesota Rules, part 4655.0100.
Sec. 3. Minnesota Statutes 1994, section 295.50, subdivision6, is amended to read:
Subd. 6. [HOME HEALTH CARE SERVICES.] "Home health careservices" are services:
(1) defined under the state medical assistance program as homehealth agency services provided by a home health agency,personal care services and supervision of personal care services,private duty nursing services, and waivered services; and
(2) provided at a recipient's residence, if the recipient doesnot live in a hospital, nursing facility, as defined in section62A.46, subdivision 3, or intermediate care facility for personswith mental retardation as defined in section 256B.055,subdivision 12, paragraph (d).
Sec. 4. Minnesota Statutes 1994, section 295.51, subdivision1, is amended to read:
Subdivision 1. [BUSINESS TRANSACTIONS IN MINNESOTA.] Ahospital, surgical center, pharmacy, or health care provider issubject to tax under sections 295.50 to 295.58295.59 if it is "transacting business in Minnesota." Ahospital, surgical center, pharmacy, or health care provider istransacting business in Minnesota only if it:
(1) maintains an office in Minnesota used in the trade orbusiness of providing patient services or medical supplies,appliances, or equipment;
(2) has employees, representatives, or independentcontractors conducting business in Minnesota related to the tradeor business of providing patient services or medical supplies,appliances, or equipment;
(3) regularly provides patient services or medical supplies,appliances, or equipment to customers that receive the servicesin Minnesota;
(4) regularly solicits business from potential customers inMinnesota. A hospital, surgical center, pharmacy, or health careprovider is presumed to regularly solicit business withinMinnesota if it receives gross receipts for patient services ormedical supplies, appliances, or equipment from 20 or morepatients domiciled in Minnesota in a calendar year;
(5) regularly performs services outside Minnesota thebenefits of which are consumed in Minnesota;
(6) owns or leases tangible personal or real propertyphysically located in Minnesota and used in the trade or businessof providing patient services or medical supplies, appliances, orequipment; or
(7) receives medical assistance payments from the state ofMinnesota. maintains contacts with or presence in thestate of Minnesota sufficient to permit taxation of grossrevenues received for patient services under the United StatesConstitution.
Sec. 5. Minnesota Statutes 1994, section 295.51, is amended byadding a subdivision to read:
Subd. 1a. [NEXUS IN MINNESOTA.] A wholesale drugdistributor has nexus in Minnesota if its contacts with orpresence in Minnesota is sufficient to satisfy the requirementsof the United States Constitution.
Sec. 6. Minnesota Statutes 1994, section 295.52, is amended byadding a subdivision to read:
Subd. 4a. [TAX COLLECTION.] A wholesale drugdistributor with nexus in Minnesota, who is not subject to taxunder subdivision 3, on all or a particular transaction, isrequired to collect the tax imposed under subdivision 4, from thepurchaser of the drugs and give the purchaser a receipt for thetax paid. The tax collected shall be remitted to thecommissioner in the manner prescribed by section 295.55,subdivision 3.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9838Sec. 7. Minnesota Statutes 1995 Supplement, section 295.53,subdivision 1, is amended to read:
Subdivision 1. [EXEMPTIONS.] (a) The following payments areexcluded from the gross revenues subject to the hospital,surgical center, or health care provider taxes under sections295.50 to 295.57:
(1) payments received for services provided under the Medicareprogram, including payments received from the government, andorganizations governed by sections 1833 and 1876 of title XVIIIof the federal Social Security Act, United States Code, title 42,section 1395, and enrollee deductibles, coinsurance, andcopayments, whether paid by the Medicare enrollee or by aMedicare supplemental coverage as defined in section 62A.011,subdivision 3, clause (10). Payments for services not covered byMedicare are taxable;
(2) medical assistance payments including payments receiveddirectly from the government or from a prepaid plan;
(3) payments received for home health care services;
(4) payments received from hospitals or surgical centers forgoods and services on which liability for tax is imposed undersection 295.52 or the source of funds for the payment is exemptunder clause (1), (2), (7), (8), or (10);
(5) payments received from health care providers for goods andservices on which liability for tax is imposed under this chapteror the source of funds for the payment is exempt under clause(1), (2), (7), (8), or (10);
(6) amounts paid for legend drugs, other than nutritionalproducts, to a wholesale drug distributor reduced byreimbursements received for legend drugs under clauses (1), (2),(7), and (8);
(7) payments received under the general assistance medical careprogram including payments received directly from the governmentor from a prepaid plan;
(8) payments received for providing services under theMinnesotaCare program including payments received directly fromthe government or from a prepaid plan and enrollee deductibles,coinsurance, and copayments. For purposes of this clause,coinsurance means the portion of payment that the enrollee isrequired to pay for the covered service;
(9) payments received by a resident health care provideror the wholly owned subsidiary of a resident health careprovider for care provided outside Minnesota to a patient who isnot domiciled in Minnesota;
(10) payments received from the chemical dependency fund underchapter 254B;
(11) payments received in the nature of charitable donationsthat are not designated for providing patient services to aspecific individual or group;
(12) payments received for providing patient services incurredthrough a formal program of health care research conducted inconformity with federal regulations governing research on humansubjects. Payments received from patients or from other personspaying on behalf of the patients are subject to tax;
(13) payments received from any governmental agency forservices benefiting the public, not including payments made bythe government in its capacity as an employer or insurer;
(14) payments received for services provided by communityresidential mental health facilities licensed under MinnesotaRules, parts 9520.0500 to 9520.0690, community support programsand family community support programs approved under MinnesotaRules, parts 9535.1700 to 9535.1760, and community mental healthcenters as defined in section 245.62, subdivision 2;
(15) government payments received by a regional treatmentcenter;
(16) payments received for hospice care services;
(17) payments received by a resident health careprovider or the wholly owned subsidiary of a resident healthcare provider for medical supplies, appliances and equipmentdelivered outside of Minnesota;
(18) payments received by a post-secondary educationalinstitution from student tuition, student activity fees, healthcare service fees, government appropriations, donations, orgrants. Fee for service payments and payments for extendedcoverage are taxable; and
(19) payments received for services provided by: assistedliving programs and congregate housing programs.
(b) Payments received by wholesale drug distributors forprescription drugs sold directly to veterinarians or veterinarybulk purchasing organizations are excluded from the grossrevenues subject to the wholesale drug distributor tax undersections 295.50 to 295.59.
Sec. 8. Minnesota Statutes 1995 Supplement, section 295.53,subdivision 5, is amended to read:
Subd. 5. [EXEMPTIONS FOR PHARMACIES.] (a) Pharmacies mayexclude from their gross revenues subject to tax payments formedical supplies, appliances, and devices that are exempt undersubdivision 1, clauses (1), (2), (4), (5), (7), (8), and (13).
(b) Resident Pharmacies may exclude from their grossrevenues subject to tax payments received for medical supplies,appliances, and equipment delivered outside of Minnesota.
Sec. 9. Minnesota Statutes 1994, section 295.54, subdivision1, is amended to read:
Subdivision 1. [TAXES PAID TO ANOTHER STATE.] Aresident hospital, resident surgical center,pharmacy, or resident health care provider who isliable for that has paid taxes payable toanother state or province or territory of Canada measured bygross receipts revenues and is subject to tax undersection sections 295.52 to 295.59 on the samegross revenues is entitled to a credit for the tax legallydue and paid to another state or province or territory ofCanada to the extent of the lesser of (1) the tax actually paidto the other state or province or territory of Canada, or (2) theamount of tax imposed by Minnesota on the gross receiptsrevenues subject to tax in the other taxingjurisdictions.
Sec. 10. Minnesota Statutes 1994, section 295.54, subdivision2, is amended to read:
Subd. 2. [PHARMACY CREDIT.] A resident pharmacy mayclaim a quarterly credit against the total amount of tax thepharmacy owes during that quarter under section 295.52,subdivision 1b, as provided in this subdivision. The creditshall equal two percent of the amount paid by the pharmacy to awholesale drug distributor subject to tax under section 295.52,subdivision 3, for legend drugs delivered by the pharmacy outsideof Minnesota. If the amount of the credit exceeds the taxliability of the pharmacy under section 295.52, subdivision 1b,the commissioner shall provide the pharmacy with a refund equalto the excess amount.
Sec. 11. Minnesota Statutes 1994, section 295.54, is amendedby adding a subdivision to read:
Subd. 3. [WHOLESALE DRUG DISTRIBUTOR CREDIT.] Awholesale drug distributor who has paid taxes to another state orprovince or territory of Canada measured by gross revenues orsales and is subject to tax under sections 295.52 to 295.59 onthe same gross revenues or sales is entitled to a credit for thetax legally due and paid to another state or province orterritory of Canada to the extent of the lesser of (1) the taxactually paid to the other state or province or territory ofCanada or (2) the amount of tax imposed by Minnesota on the grossrevenues or sales subject to tax in the other taxingjurisdictions.
Sec. 12. [LEGISLATIVE INTENT.]
Section 3 is intended to clarify, rather than change, theoriginal intent of the statute amended.
Sec. 13. [REPEALER.]
Minnesota Statutes 1994, section 295.50, subdivisions 8, 9,9a, 11, 12, and 12a, are repealed.
Sec. 14. [EFFECTIVE DATES.]
Sections 1, 3, 4, 7 to 10, 12, and 13 are effective the dayfollowing final enactment.
Sections 5, 6, and 11 are effective for tax periodsbeginning on or after January 1, 1997.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9840Section 1. Minnesota Statutes 1994, section 13.99, subdivision97a, is amended to read:
Subd. 97a. [ECONOMIC DEVELOPMENT DATA.] Access to preliminaryinformation submitted to the commissioner of trade and economicdevelopment under sections 469.142 to 469.151 or sections 469.152to 469.165 is limited under sections 469.150 andsection 469.154, subdivision 2.
Sec. 2. Minnesota Statutes 1995 Supplement, section 216B.161,subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) For purposes of thissection, the following terms have the meanings given them in thissubdivision.
(b) "Area development rate" means a rate schedule establishedby a utility that provides customers within an area developmentzone service under a base utility rate schedule, except thatcharges may be reduced from the base rate as agreed upon by theutility and the customer consistent with this section.
(c) "Area development zone" means a contiguous or noncontiguousarea designated by an authority or municipality for developmentor redevelopment and within which one of the following conditionsexists:
(1) obsolete buildings not suitable for improvement orconversion or other identified hazards to the health, safety, andgeneral well-being of the community;
(2) buildings in need of substantial rehabilitation or insubstandard condition; or
(3) low values and damaged investments.
(d) "Authority" means a rural development financing authorityestablished under sections 469.142 to 469.150469.151; a housing and redevelopment authority establishedunder sections 469.001 to 469.047; a port authority establishedunder sections 469.048 to 469.068; an economic developmentauthority established under sections 469.090 to 469.108; aredevelopment agency as defined in sections 469.152 to 469.165;the iron range resources and rehabilitation board establishedunder section 298.22; a municipality that is administering adevelopment district created under sections 469.124 to 469.134 orany special law; a municipality that undertakes a project undersections 469.152 to 469.165, except a town located outside themetropolitan area as defined in section 473.121, subdivision 2,or with a population of 5,000 persons or less; or a municipalitythat exercises the powers of a port authority under any generalor special law.
(e) "Municipality" means a city, however organized, and, withrespect to a project undertaken under sections 469.152 to469.165, "municipality" has the meaning given in sections 469.152to 469.165, and, with respect to a project undertaken undersections 469.142 to 469.151 or a county or multicounty projectundertaken under sections 469.004 to 469.008, also includes anycounty.
Sec. 3. Minnesota Statutes 1995 Supplement, section 273.1399,subdivision 6, is amended to read:
Subd. 6. [EXEMPT DISTRICTS.] (a) The provisions of thissection do not apply to exempt tax increment financing districtsas specified by this subdivision.
(b) A tax increment financing district for an ethanolproduction facility that satisfies all of the followingrequirements is exempt:
(1) The district is an economic development district, thatqualifies under section 469.176, subdivision 4c, paragraph (a),clause (1).
(2) The facility is certified by the commissioner ofagriculture to qualify for state payments for ethanol developmentunder section 41A.09 to the extent funds are available.
(3) Increments from the district are used only to finance thequalifying ethanol development project located in the district orto pay for administrative costs of the district.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9841(4) The district is located outside of the seven-countymetropolitan area, as defined in section 473.121.
(5) The tax increment financing plan was approved by aresolution of the county board.
(6) The exemption provided by this paragraph applies until thefirst year after the total amount of increment for the districtexceeds $1,500,000. The county auditor shall notify thecommissioner of revenue of the expiration of the exemption byJune 1 of the year in which the auditor projects the revenuesfrom increments will exceed $1,500,000. On or before theexpiration of the exemption, the municipality may elect to make aqualifying local contribution under paragraph (d) in lieu of thestate aid reduction.
(c) A qualified housing district is exempt.
(d)(1) A district is exempt if the municipality electsat the time of approving the tax increment financing plan for thedistrict to make a qualifying local contribution. To qualify forthe exemption in each year, the authority or the municipalitymust make a qualifying local contribution equal to the listedpercentages of increment from the district or subdistrict:
(1) (A) for an economic development district, ahousing district, or a renewal and renovation district, tenpercent;
(2) (B) for a redevelopment district, a minedunderground space district, a hazardous substance subdistrict, ora soils condition district, 7.5 five percent.
(2) If the municipality elects to make a qualifyingcontribution and fails to make the required contribution for ayear, the state aid reduction applies for the year. The stateaid reduction equals the greater of (A) the required localcontribution or (B) the amount of the aid reduction that appliesunder subdivision 3. For a district exempt under paragraph (b),no qualifying local contribution is required for years in whichthe district is exempt.
The maximum local contribution for all districts in themunicipality is limited to (3)(A) If the sum of requiredlocal contributions for all districts in the municipalityexceeds two percent of city net tax capacity as defined insection 477A.011, subdivision 20, for a year, themunicipality's total required local contribution for that year islimited to two percent of net tax capacity to qualify for theexemption under this subdivision. The municipality may allocatethe contribution among the districts on which it has madeelections as it determines appropriate.
(B) If a municipality makes an election under thissubdivision for a district in a year in which item (A) applies, aminimum annual qualifying contribution must be made for thedistrict equal to the lesser of 0.25 percent of city net taxcapacity or three percent of increment revenues. This minimumcontribution applies for the life of the district for each yearthat the restriction in item (A) applies and is in addition tothe contribution required by item (A).
(4) The amount of the local contribution must be madeout of unrestricted money of the authority or municipality, suchas the general fund, a property tax levy, or a federal or a stategrant-in-aid which may be spent for general government purposes. The local contribution may not be made, directly or indirectly,with tax increments or developer payments as defined undersection 469.1766. The local contribution must be used to payproject costs and cannot be used for general government purposesor for improvements or costs that the authority or municipalityplanned to incur absent the project. The authority ormunicipality may request contributions from other localgovernment entities that will benefit from the district'sactivities. These contributions reduce the local contributionrequired of the municipality or authority by this paragraph.Cities, counties, towns, and schools may contribute to payingthese costs, notwithstanding any other law to the contrary.
(5) The municipality may make a local contribution in excessof the required contribution for a year. If it does so, themunicipality may credit the excess to a local contributionaccount for the district. The balance in the account may be usedto meet the requirements for qualifying local contributions forlater years. No interest or investment earnings may be creditedor imputed to the account, except those (A) actually paid by themunicipality out of its unrestricted funds or by another personor entity, other than a developer as used in section 469.1766,and (B) used as required for a qualifying localcontribution.
(6) If the state contributes to the project coststhrough a direct grant or similar incentive, the required localcontribution is reduced by one-half of the dollar amount of thestate grant or other similar incentive.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9842Sec. 4. Minnesota Statutes 1995 Supplement, section 273.1399,subdivision 7, is amended to read:
Subd. 7. [EXEMPTION; AGRICULTURAL PROCESSING FACILITIES.] Theprovisions of this section do not apply to a tax incrementfinancing district that satisfies all of the followingrequirements:
(1) the district is established to construct or expand anagricultural processing facility;
(2) the construction or expansion of the facility creates, orupon completion will create, a minimum of five permanentfull-time jobs;
(3) the district is located outside of the seven-countymetropolitan area, as defined in section 473.121;
(4) the tax increment financing plan was approved by aresolution of the county board;
(5) the municipality approving the tax increment financing planagrees to make at least a five percent localcontribution that meets the requirements of subdivision 6,paragraph (d), including except that a required rate offive percent applies and the limitation to two percent ofcity tax capacity under subdivision 6, paragraph (d),clause (3) also applies; and
(6) the commissioner of agriculture has certified to the countyauditor that the requirements of this subdivision have beenmet.
The exemption provided by this subdivision applies until thefirst year after the total amount of increment for the districtexceeds $1,500,000. The county auditor shall notify thecommissioner of revenue of the expiration of the exemption byJune 1 of the year in which the auditor projects the revenuesfrom increment will exceed $1,500,000.
For purposes of this section, "agricultural processingfacility" means land, buildings, structures, fixtures, andimprovements used or operated primarily for the processing orproduction of marketable products from agricultural crops,including waste and residues from agricultural crops, andincluding livestock products, poultry products, and woodproducts, but not the raising of livestock or poultry.
Sec. 5. Minnesota Statutes 1994, section 469.167, subdivision2, is amended to read:
Subd. 2. [DURATION.] The designation of an area as anenterprise zone shall be effective for seven years after the dateof designation, except that enterprise zones in border citieseligible to receive allocations for tax reductions under section469.169, subdivisions 7 and 8, and under section 469.171,subdivision 6a or 6b, shall be effective until theseallocations have been expended terminated by resolutionadopted by the city in which the border city enterprise zone islocated.
Sec. 6. Minnesota Statutes 1995 Supplement, section 469.169,subdivision 9, is amended to read:
Subd. 9. [ADDITIONAL BORDER CITY ALLOCATIONS.] In addition totax reductions authorized in subdivisions 7 and 8, thecommissioner may allocate $1,100,000 for tax reductions to bordercity enterprise zones in cities located on the western border ofthe state, and $300,000 to the border city enterprise zone in thecity of Duluth. The commissioner shall make allocations to zonesin cities on the western border by evaluating which cities'applications for allocations relate to business prospects thathave the greatest positive economic impact. Allocations madeunder this subdivision may be used for tax reductions as providedin section 469.171, or other offsets of taxes imposed on orremitted by businesses located in the enterprise zone, but onlyif the municipality determines that the granting of the taxreduction or offset is necessary in order to retain a businesswithin or attract a business to the zone. Limitations onallocations under section 469.169, subdivision 7, do not apply tothis allocation. Enterprise zones that receive allocationsunder this subdivision may continue in effect for purposes ofthose allocations through December 31, 1995.
Sec. 7. Minnesota Statutes 1995 Supplement, section 469.169,subdivision 10, is amended to read:
Subd. 10. [ADDITIONAL BORDER CITY ALLOCATIONS.] In addition totax reductions authorized in subdivisions 7, 8, and 9, thecommissioner may allocate $1,500,000 for tax reductions to bordercity enterprise zones in cities located on the western border ofthe state. The commissioner shall make allocations to zones incities on the western border on a per capita basis. Allocationsmade under this subdivision may be used for tax reductions asprovided in section 469.171, or other offsets of taxes imposed onor remitted by businesses located in the enterprise
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9843zone, but only if the municipality determines that the grantingof the tax reduction or offset is necessary in order to retain abusiness within or attract a business to the zone. Limitationson allocations under section 469.169, subdivision 7, do not applyto this allocation. Enterprise zones that receive allocationsunder this subdivision may continue in effect for purposes ofthose allocations through December 31, 1996.
Sec. 8. Minnesota Statutes 1994, section 469.173, subdivision7, is amended to read:
Subd. 7. [REPEALER.] Sections 469.169, 469.171, 469.172, andthis section are effective for border city enterprise zonesuntil the enterprise zone is terminated by resolution adopted bythe city in which the border city enterprise zone is located. Forall other enterprise zones, sections 469.169, 469.171, 469.172,and this section are repealed effective December 31, 1996.
Sec. 9. Minnesota Statutes 1994, section 469.174, subdivision2, is amended to read:
Subd. 2. [AUTHORITY.] "Authority" means a rural developmentfinancing authority created pursuant to sections 469.142 to469.150 469.151; a housing and redevelopmentauthority created pursuant to sections 469.001 to 469.047; a portauthority created pursuant to sections 469.048 to 469.068; aneconomic development authority created pursuant to sections469.090 to 469.108; a redevelopment agency as defined in sections469.152 to 469.165; a municipality that is administering adevelopment district created pursuant to sections 469.124 to469.134 or any special law; a municipality that undertakes aproject pursuant to sections 469.152 to 469.165, except a townlocated outside the metropolitan area or with a population of5,000 persons or less; or a municipality that exercises thepowers of a port authority pursuant to any general or speciallaw.
Sec. 10. Minnesota Statutes 1995 Supplement, section 469.174,subdivision 4, is amended to read:
Subd. 4. [CAPTURED NET TAX CAPACITY.] "Captured net taxcapacity" means the amount by which the current net tax capacityof a tax increment financing district or an extended subdistrictexceeds the original net tax capacity, including the value ofproperty normally taxable as personal property by reason of itslocation on or over property owned by a tax-exempt entity. Inthe case of a hazardous substance subdistrict, except an extendedsubdistrict, "captured net tax capacity" means the amount, ifany, by which the lesser of (1) the original net taxcapacity or (2) the current net tax capacity of theportion of the tax increment financing district overlying thesubdistrict exceeds the original net tax capacity of thesubdistrict.
Sec. 11. Minnesota Statutes 1995 Supplement, section 469.175,subdivision 1, is amended to read:
Subdivision 1. [TAX INCREMENT FINANCING PLAN.] (a) A taxincrement financing plan shall contain:
(1) a statement of objectives of an authority for theimprovement of a project;
(2) a statement as to the development program for the project,including the property within the project, if any, that theauthority intends to acquire;
(3) a list of any development activities that the plan proposesto take place within the project, for which contracts have beenentered into at the time of the preparation of the plan,including the names of the parties to the contract, the activitygoverned by the contract, the cost stated in the contract, andthe expected date of completion of that activity;
(4) identification or description of the type of any otherspecific development reasonably expected to take place within theproject, and the date when the development is likely to occur;
(5) estimates of the following:
(i) cost of the project, including administration expenses;
(ii) amount of bonded indebtedness to be incurred;
(iii) sources of revenue to finance or otherwise pay publiccosts;
(iv) the most recent net tax capacity of taxable real propertywithin the tax increment financing district and within anysubdistrict;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9844(v) the estimated captured net tax capacity of the taxincrement financing district at completion; and
(vi) the duration of the tax increment financing district'sand any subdistrict's existence;
(6) statements of the authority's alternate estimates of theimpact of tax increment financing on the net tax capacities ofall taxing jurisdictions in which the tax increment financingdistrict is located in whole or in part. For purposes of onestatement, the authority shall assume that the estimated capturednet tax capacity would be available to the taxing jurisdictionswithout creation of the district, and for purposes of the secondstatement, the authority shall assume that none of the estimatedcaptured net tax capacity would be available to the taxingjurisdictions without creation of the district orsubdistrict;
(7) identification and description of studies and analyses usedto make the determination set forth in subdivision 3, clause (2);and
(8) identification of all parcels to be included in thedistrict or any subdistrict.
(b) For a housing district, redevelopment district, or ahazardous substance subdistrict, the authority may elect in thetax increment financing plan to provide for the identification ofa minimum market value in the plan, development agreement, orassessment agreement, and provide that increment is firstreceived by the authority when (1) the market value of theimprovements as determined by the assessor reaches or exceeds theminimum market value, or (2) four years has elapsed from the dateof certification of the original net tax capacity of the taxablereal property in the district or subdistrict by the countyauditor, whichever is earlier.
Sec. 12. Minnesota Statutes 1995 Supplement, section 469.175,subdivision 5, is amended to read:
Subd. 5. [ANNUAL DISCLOSURE.] (a) For all tax incrementfinancing districts, whether created prior or subsequent toAugust 1, 1979, on or before July 1 of each year, the authorityshall submit to the county board, the county auditor, the schoolboard, state auditor and, if the authority is other than themunicipality, the governing body of the municipality, a report ofthe status of the district. The report shall include thefollowing information: the amount and the source of revenue inthe account, the amount and purpose of expenditures from theaccount, the amount of any pledge of revenues, includingprincipal and interest on any outstanding bonded indebtedness,the original net tax capacity of the district and anysubdistrict, the captured net tax capacity retained by theauthority, the captured net tax capacity shared with other taxingdistricts, the tax increment received, and any additionalinformation necessary to demonstrate compliance with anyapplicable tax increment financing plan.
(b) An annual statement showing the tax incrementreceived and expended in that year, the original net taxcapacity, captured net tax capacity, amount of outstanding bondedindebtedness, the amount of the district's and anysubdistrict's increments paid to other governmental bodies,the amount paid for administrative costs, the sum of incrementspaid, directly or indirectly, for activities and improvementslocated outside of the district, and any additional informationthe authority deems necessary shall be published in a newspaperof general circulation in the municipality. If the fiscaldisparities contribution for the district is computed undersection 469.177, subdivision 3, paragraph (a), the annualstatement must disclose that fact and indicate the amount ofincreased property tax imposed on other properties in themunicipality as a result of the fiscal disparities contribution. The commissioner of revenue shall prescribe the form of thisstatement and the method for calculating the increased propertytaxes. The authority must publish the annual statement for ayear no later than July 1 of the next year. The authority mustprovide a copy of the annual statement to the state auditor bythe time it submits it for publication.
Sec. 13. Minnesota Statutes 1995 Supplement, section 469.175,subdivision 6, is amended to read:
Subd. 6. [FINANCIAL REPORTING.] (a) The state auditor shalldevelop a uniform system of accounting and financial reportingfor tax increment financing districts. The system of accountingand financial reporting shall, as nearly as possible:
(1) provide for full disclosure of the sources and uses ofpublic funds in the district;
(2) permit comparison and reconciliation with the affectedlocal government's accounts and financial reports;
(3) permit auditing of the funds expended on behalf of adistrict, including a single district that is part of amultidistrict project or that is funded in part or whole throughthe use of a development account funded with tax increments fromother districts or with other public money;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9845(4) be consistent with generally accepted accountingprinciples.
(b) The authority must annually submit to the state auditor, onor before July 1, a financial report in compliance with paragraph(a). Copies of the report must also be provided to the countyand school district boards and to the governing body of themunicipality, if the authority is not the municipality. To theextent necessary to permit compliance with the requirement offinancial reporting, the county and any other appropriate localgovernment unit or private entity must provide the necessaryrecords or information to the authority or the state auditor asprovided by the system of accounting and financial reportingdeveloped pursuant to paragraph (a).
(c) The annual financial report must also include the followingitems:
(1) the original net tax capacity of the district and anysubdistrict;
(2) the captured net tax capacity of the district, includingthe amount of any captured net tax capacity shared with othertaxing districts;
(3) for the reporting period and for the duration of thedistrict, the amount budgeted under the tax increment financingplan, and the actual amount expended for, at least, the followingcategories:
(i) acquisition of land and buildings through condemnation orpurchase;
(ii) site improvements or preparation costs;
(iii) installation of public utilities, parking facilities,streets, roads, sidewalks, or other similar publicimprovements;
(iv) administrative costs, including the allocated cost of theauthority;
(v) public park facilities, facilities for social,recreational, or conference purposes, or other similar publicimprovements;
(4) for properties sold to developers, the total cost of theproperty to the authority and the price paid by the developer;and
(5) the amount of increments rebated or paid to developers orproperty owners for privately financed improvements or otherqualifying costs.
(d) The reporting requirements imposed by this subdivisionapply to districts certified before, on, and after August 1,1979.
Sec. 14. Minnesota Statutes 1995 Supplement, section 469.176,subdivision 2, is amended to read:
Subd. 2. [EXCESS TAX INCREMENTS.] (a) In any year inwhich the tax increment exceeds the amount necessary to pay thecosts authorized by the tax increment financing plan, includingthe amount necessary to cancel any tax levy as provided insection 475.61, subdivision 3, the authority shall use the excessamount to do any of the following: (1) prepay any outstandingbonds, (2) discharge the pledge of tax increment therefor, (3)pay into an escrow account dedicated to the payment of such bond,or (4) return the excess amount to the county auditor who shalldistribute the excess amount to the municipality, county, andschool district in which the tax increment financing district islocated in direct proportion to their respective local tax rates. The county auditor must report to the commissioner of children,families, and learning the amount of any excess tax incrementdistributed to a school district within 30 days of thedistribution.
(b) The amounts distributed to a city or county must bededucted from the levy limits of the governmental unit for thefollowing year. In calculating the levy limit base for lateryears, the amount deducted must be treated as a local governmentaid payment.
Sec. 15. Minnesota Statutes 1994, section 469.176, subdivision4f, is amended to read:
Subd. 4f. [INTEREST REDUCTION.] Revenues derived from taxincrement may be used to finance the costs of an interestreduction program operated pursuant to section 469.012,subdivisions 7 to 10, or pursuant to other law granting interestreduction authority and power by reference to those subdivisionsonly under the following
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9846conditions: (1) tax increments may not be collected for aprogram for a period in excess of 12 15 years afterthe date of the first interest rate reduction payment for theprogram, (2) tax increments may not be used for an interestreduction program, if the proceeds of bonds issued pursuant tosection 469.178 after December 31, 1985, have been or will beused to provide financial assistance to the specific projectwhich would receive the benefit of the interest reductionprogram, and (3) tax increments may not be used to finance aninterest reduction program for owner-occupied single-familydwellings.
Sec. 16. Minnesota Statutes 1995 Supplement, section 469.176,subdivision 7, is amended to read:
Subd. 7. [PARCELS NOT INCLUDABLE IN DISTRICTS.] (a) Theauthority may not request inclusion in a tax incrementfinancing district and the county auditor may not certifythe original tax capacity of the following:
(1) a parcel or a part of a parcel that qualified underthe provisions of section 273.111 or 273.112 or chapter 473H fortaxes payable in any of the five calendar years before the filingof the request for certification, if the parcel is located inthe metropolitan area, as defined in section 473.121; or
(2) a parcel or a part of a parcel, located outside of themetropolitan area, as defined in section 473.121, that qualifiedunder the provisions of section 273.111 or 273.112 for taxespayable in any of the five calendar years before the request forcertification, if the district is not only for
(1) a district in which 85 percent or more of theplanned buildings and facilities (determined on the basis ofsquare footage) are for manufacturing or production of tangiblepersonal property, including processing resulting in the changein condition of the property; or
(2) a qualified housing district as defined in section273.1399, subdivision 1.
Sec. 17. Minnesota Statutes 1994, section 469.1761,subdivision 1, is amended to read:
Subdivision 1. [REQUIREMENT IMPOSED.] In order for a taxincrement financing district to qualify as a housing district,the income limitations provided in this section must besatisfied. The requirements imposed by this section apply toresidential property receiving assistance financed with taxincrements, including interest reduction, land transfers at lessthan the authority's cost of acquisition, utility service orconnections, roads, or other subsidies. The provisions of thissection do not apply (1) to interest reduction programs,provided that the duration of the district is limited to 12 yearsfrom the collection of the first increment or (2) todistricts located in a targeted area as defined in section462C.02, subdivision 9, clause (e).
Sec. 18. Minnesota Statutes 1994, section 471.88, subdivision14, is amended to read:
Subd. 14. [HOUSING AND REDEVELOPMENT AUTHORITY LOCALDEVELOPMENT ORGANIZATION.] (a) For the purposes of thissubdivision:
(1) "local development organization" means a housing andredevelopment authority, economic development authority,community action program, port authority, or private consultant;and
(2) "government unit" has the meaning given in section471.59, subdivision 1.
(b) When a county or multicounty housing andredevelopment authority local development organizationadministers a loan or grant program for individualresidential property owners within the geographicalboundaries of a government unit by an agreement entered into bythe government unit and the housing and redevelopmentauthority local development organization, an officerof the government unit may apply for a loan or grant from thehousing and redevelopment authority local developmentorganization. If an officer applies for a loan or grant, theofficer must disclose as part of the official minutes of a publicmeeting of the governmental unit that the officer has applied fora loan or grant.
Sec. 19. Minnesota Statutes 1994, section 473.608, is amendedby adding a subdivision to read:
Subd. 12a. [REVENUE BONDS.] (a) The commission mayissue general airport revenue bonds, special facilities bonds,and passenger facility charge bonds to fund:
(1) airports and air navigation facilities;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9847(2) other capital improvements at airports managed by thecommission;
(3) noise abatement and natural resource protectionmeasures, regardless of location and ownership;
(4) transportation and parking improvements related toairports managed by the commission, regardless oflocation; and
(5) the refund of any outstanding obligations of thecommission.
The commission may secure the bonds with available revenuein accordance with generally accepted public financial practicesunder a resolution of the commission or trust indenture for thebonds. The bonds may not be secured by the full faith and creditof the commission or a pledge of the taxing authority of thecommission or of any city in or for which the commission has beencreated.
(b) The commission shall notify the commissioner of finance,the chair of the taxes committee of the House of Representatives,and the chair of the taxes and tax laws committee of the Senateof any proposal to issue bonds under this subdivision and providethem an opportunity to review the proposal.
(c) The commission may obligate itself to establish, revise,and collect rates, fees, charges, and rentals for all airport andair navigation facilities used by or made available to anyperson, firm, association, or corporation to produce revenuessufficient:
(1) to pay principal and interest on all obligations of thecommission;
(2) to fund reserves for the bonds;
(3) to pay other commission expenses in accordance withlaw.
(d) (1) Any pledge of revenues under this section issubordinate to the pledge of current revenues to cancel taxeslevied for general obligation revenue bonds issued under section473.665.
(2) Subject to clause (1), if the bonds meet the conditionsof section 473.667, subdivision 7, the commission may pledgerevenues to the revenue bonds issued under this subdivision on aparity with the pledge of revenues to general obligation revenuebonds issued under section 473.667. The pledge of revenues torevenue bonds issued under this subdivision may be prior to theobligation under section 473.667, subdivision 6, to repay anydeficiency taxes levied for general obligation revenuebonds.
(3) The commission may pledge revenues of any discretefacility or portions of the airport and air navigation facilitiesof the commission to the bonds. The commission may establishreserves from any available funds or the proceeds of the bondsand may make other covenants as it deems necessary to protect theholders of the bonds. Passenger facility charge bonds may pledgereceipts from passenger facility charges separately or togetherwith a pledge of other revenues.
(e) The commission may use any powers under chapter 475,except the power to issue general obligation bonds.
Sec. 20. Laws 1995, chapter 264, article 5, section 40,subdivision 1, is amended to read:
Subdivision 1. [AUTHORIZATION.] Notwithstanding the provisionsof Minnesota Statutes, section 469.175, subdivision 4, paragraph(b), the economic development authority of the city of Morrismay, within one year after the effective date of this section,enlarge the geographic area of tax increment financing districtNo. 5 to include a parcel identified as lot 2, block 23, Stevens county - Morris industrial park. Thedistrict is established under and subject to Minnesota Statutes,sections 469.174 to 469.178, except:
(1) the duration limit for the district and enlarged area isDecember 31, 2005; and
(2) the buildings to be constructed in the enlarged geographicarea of the district may, notwithstanding the provisions ofMinnesota Statutes, section 469.176, subdivision 4c, includespace necessary for and related to the manufacturing facilitylocated on parcels contiguous to the district. The maximum spacefor nonmanufacturing uses may not exceed 40 percent of the squarefootage of the buildings. This test may be applied based on atwo-year test period.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9848Sec. 21. Laws 1995, chapter 264, article 5, section 44,subdivision 4, is amended to read:
Subd. 4. [AUTHORITY.] For housing replacement projects in thecity of Crystal, "authority" means the Crystal economicdevelopment authority. For housing replacement projects in thecity of Fridley, "authority" means the housing and redevelopmentauthority in and for the city of Fridley or a successor ininterest. For housing replacement projects in the city ofMinneapolis, "authority" means the Minneapolis communitydevelopment agency. For housing replacement projects in the cityof St. Paul, "authority" means the St. Paul housing andredevelopment authority. For housing replacement projects inthe city of Duluth, "authority" means the Duluth economicdevelopment authority. For housing replacement projects in thecity of Richfield, "authority" is the authority as defined inMinnesota Statutes, section 469.174, subdivision 2, that isdesignated by the governing body of the city of Richfield.
Sec. 22. Laws 1995, chapter 264, article 5, section 45,subdivision 1, is amended to read:
Subdivision 1. [CREATION OF PROJECTS.] (a) An authority maycreate a housing replacement project under sections 44 to 47, asprovided in this section.
(b) For the cities of Crystal and, Fridley,and Richfield, the authority may designate up to 50parcels in the city to be included in a housing replacementdistrict. No more than ten parcels may be included in year oneof the district, with up to ten additional parcels added to thedistrict in each of the following nine years. For the cities ofMinneapolis and, St. Paul, and Duluth, eachauthority may designate up to 100 parcels in the city to beincluded in a housing replacement district over the life of thedistrict. The only parcels that may be included in a districtare (1) vacant sites, (2) parcels containing vacant houses, or(3) parcels containing houses that are structurally substandard,as defined in Minnesota Statutes, section 469.174, subdivision10.
(c) The city in which the authority is located must pay atleast 25 percent of the housing replacement project costs fromits general fund, a property tax levy, or other unrestrictedmoney, not including tax increments.
(d) The housing replacement district plan must have as its soleobject the acquisition of parcels for the purpose of preparingthe site to be sold for market rate housing. As used in thissection, "market rate housing" means housing that has a marketvalue that does not exceed 150 percent of the average marketvalue of single-family housing in that municipality.
Sec. 23. [SOUTH ST. PAUL; TAX INCREMENT DISTRICT.]
Subdivision 1. [EXPENDITURE OF TAX INCREMENTS.]Notwithstanding the provisions of Minnesota Statutes, section469.176, subdivision 1c, the city of South St. Paul may expendtax increments derived from the Concord street redevelopment taxincrement financing district to pay debt service on or defeasegeneral obligation tax increment bonds issued to refund taxincrement bonds of the city issued before April 1, 1990, providedthe average maturity of the refunding bonds does not exceed theaverage maturity of the refunded bonds by more than two years andprovided further that the refunding does not increase the amountof debt service to be paid after April 1, 2001.
Subd. 2. [EFFECTIVE DATE.] Subdivision 1 iseffective upon compliance by the South St. Paul city council withMinnesota Statutes, section 645.021, subdivision 2.
Sec. 24. [CITY OF WOODBURY; TAX INCREMENT FINANCINGDISTRICT.]
Subdivision 1. [EXTENSION.] Notwithstanding theprovisions of Minnesota Statutes, section 469.176,subdivision 1b, tax increment may be paid until December 31,2006, from the following parcels identified as parcelidentification numbers, plat and parcel numbers in an existingtax increment economic development district in the city ofWoodbury: 73701-2025; 72003-3350; 72003-2350; 72003-2250;72003-2100; 73701-2050; 73701-2075; 73701-2100; 73701-2125;73701-2150; 72003-2550; 72003-2500; 73445-2000; and73445-2050.
Subd. 2. [EFFECTIVE DATE.] Subdivision 1 iseffective upon compliance with Minnesota Statutes,sections 469.1782, subdivision 2, and 645.021, subdivision3.
Sec. 25. [CITY OF BRECKENRIDGE; TAX INCREMENT DISTRICT.]
Subdivision 1. [EXTENSION.] Notwithstanding theprovisions of Minnesota Statutes, section 469.176,subdivision 1c, the duration of the city of Breckenridge taxincrement financing district number 1-1 may be extended byresolution of the Breckenridge city council until April 1, 2009. The provisions of Minnesota Statutes, sections 469.1782,subdivision 1, and 273.1399, subdivision 8, do not apply to theextension of the duration of the district under thissection.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9849Subd. 2. [EFFECTIVE DATE; APPROVAL.] Subdivision 1is effective the day after compliance with Minnesota Statutes,sections 469.1782, subdivision 2, and 645.021, subdivision2.
Sec. 26. [CITY OF MOUNTAIN IRON HOUSING AND REDEVELOPMENTAUTHORITY; TAX INCREMENT DISTRICTS.]
Subdivision 1. [ORIGINAL NET TAX CAPACITY.]Notwithstanding the provisions of the county auditor'scertification issued pursuant to Minnesota Statutes, section469.177, the original net tax capacity of property described asplat number 71, parcel numbers 1212, 1213, and 1223 in taxincrement financing district No. 6 located in the city ofMountain Iron shall be deemed $6,407 as of January 1,1996.
Subd. 2. [EXTENSION.] Notwithstanding the provisionsof Minnesota Statutes, section 469.176, subdivision 4c, thehousing and redevelopment authority in and for the city ofMountain Iron may collect and expend tax increments generated bythe Sawmill restaurant project in tax increment financingdistrict No. 6 located in the city of Mountain Iron after August7, 1999, for eligible activities within the district. Theauthority under this subdivision expires August 7, 2004.
Subd. 3. [LOCAL APPROVAL.] Subdivisions 1 and 2 areeffective upon compliance with Minnesota Statutes, sections469.1782, and 645.021, subdivision 3.
Sec. 27. [AUTHORITY TO ELECT LOCAL CONTRIBUTIONS.]
Notwithstanding the provisions of Laws 1995, chapter 264,article 5, section 49, a city may elect to make localcontributions under Minnesota Statutes, section 273.1399,subdivision 6, paragraph (d), in lieu of the state aid reduction,if the following conditions are satisfied:
(1) the district was certified after April 30, 1994;
(2) the municipality and the authority agree to decertifythe district at least three years before the expiration of thedistrict's duration limit under Minnesota Statutes, section469.176, subdivision 1b;
(3) the municipality makes an irrevocable election to makelocal contributions and to be governed by clause (2) by December31, 1996; and
(4) the authority notifies the commissioner of revenue ofthe election by January 31, 1997.
Sec. 28. [DEFINITIONS.]
Subdivision 1. [AUTHORITY.] "Authority" means theBrooklyn Park economic development authority.
Subd. 2. [DISTRESSED RENTAL PROPERTIES.] (a)"Distressed rental properties," "distressed rental property,""property," or "properties" means those multifamily rentalprojects located within the city of Brooklyn Parkwhich meet:
(1) both of the following:
(i) are 20 years old or older at the time of the request forcertification; and
(ii) are determined by the authority to be in need ofsubstantial rehabilitation or demolition; and
(2) one of the following:
(i) have a vacancy rate as established by rental records ofthe owner, which has averaged at least 25 percent over thefive-year period preceding the request for certification;
(ii) have an estimated market value determined by theassessor which has decreased by at least 20 percent over thefive-year period preceding the request for certification;or
(iii) were converted from home ownership to rentalhousing.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9850(b) Buildings located on contiguous properties, which arecommonly owned and financed, and which were constructed atapproximately the same time constitute a single distressed rentalproperty.
Subd. 3. [CAPTURED NET TAX CAPACITY.] "Captured nettax capacity" means the amount by which the current net taxcapacity of the distressed housing district exceeds the originalnet tax capacity including the value of property normally taxableas personal property by reason of its location or over propertyowned by a tax-exempt entity.
Subd. 4. [ORIGINAL NET TAX CAPACITY.] With respectto distressed rental properties which according to the distressedhousing district plan are to be rehabilitated, "original net taxcapacity" means (i) the net tax capacity of the properties ascertified by the commissioner of revenue for the appropriateassessment year minus (ii) all estimated costs associated withrehabilitating said properties as set forth in the distressedhousing plan, but (iii) not less than zero. With respect todistressed rental properties which according to the distressedhousing district plan are to be demolished, "original net taxcapacity" means the net tax capacity of the land only ascertified by the commissioner of revenue for the appropriateassessment year. For purposes of this subdivision, theappropriate assessment year shall be the previous assessmentyear, provided that a request by the authority for certificationhas been made to the county auditor by June 30. If the requestfor certification is filed after June 30, the appropriateassessment year shall be the current assessment year.
Subd. 5. [SUBSTANTIAL REHABILITATION.] "Substantialrehabilitation" means rehabilitation, as defined in MinnesotaStatutes, section 462C.02, subdivision 8, in an amount of atleast $7,000 per unit.
Sec. 29. [ESTABLISHMENT OF A DISTRESSED HOUSING DISTRICT.]
Subdivision 1. [CREATION.] The authority mayestablish a distressed housing district within the city which maycontain not more than five distressed rental properties. Thedistressed rental properties need not be contiguous and may allbe included when establishing the district, or may be added fromtime to time as described in subdivision 4, clause (2), providedthat no distressed rental property shall be added to the districtafter five years from the date of the initial request forcertification of the district.
Subd. 2. [TAX INCREMENT.] Minnesota Statutes,section 469.177, subdivisions 1, paragraphs (a), (d), and (g),1a, and 3 to 10, apply to the computation of tax increment forthe distressed housing district created under sections 28 to31.
Subd. 3. [DISTRESSED HOUSING DISTRICT PLAN.] Toestablish a distressed housing district, the authority shalladopt a distressed housing plan that contains:
(1) a description of the distressed rental properties to beincluded in the district to the extent known at the time the planis prepared, including identification of the current and proposedowner of the property. If the maximum allowable number ofdistressed rental properties are not included in the districtinitially, a description of the criteria that will be used by theauthority to select properties to be included later;
(2) a general description of the types of substantialrehabilitation or demolition which will be undertaken, and bywhom; and
(3) estimates of the following:
(i) total cost of substantial rehabilitation or demolitionfor each distressed rental property included in the district,including public administrative costs and relocationexpenses;
(ii) sources of revenue, public and private, to pay theestimated costs of substantial rehabilitation ordemolition;
(iii) the most recent net tax capacity of each distressedrental property included in the district;
(iv) the estimated captured net tax capacity of eachdistressed rental property included in the district, atcompletion; and
(v) the authority's alternate estimates of the impact of thedistressed housing district on the net tax capacities of alltaxing jurisdictions in which the distressed housing district islocated in whole or in part. For purposes of one statement, theauthority shall assume that the estimated captured net taxcapacity would be available to the taxing jurisdictions withoutcreation of the distressed housing district and for purposes ofthe second statement the authority shall assume that none of theestimated captured net tax capacity would be available to thetaxing jurisdictions without creation of the distressed housingdistrict.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9851Subd. 4. [PROCEDURE.] Minnesota Statutes, section469.175, subdivisions 3 to 6a, apply to the establishment andoperation of the distressed housing district created undersections 28 to 31, except as follows:
(1) the determination required in Minnesota Statutes,section 469.175, subdivision 3, clause (1), is not required;and
(2) the addition to the district of distressed rentalproperties not identified in the original distressed housingdistrict plan is not a modification of the plan requiring notice,public hearing, findings, or approval if the addition of thedistressed rental properties is consistent with the criteriadescribed in subdivision 3, clause (1).
Subd. 5. [LOCAL CONTRIBUTION.] The city of BrooklynPark must pay at least five percent of the distressed housingdistrict project costs from its general fund, a property taxlevy, or other unrestricted money, not including taxincrements.
Sec. 30. [LIMITATIONS.]
Subdivision 1. [DURATION.] Tax increment generatedby each distressed rental property included in the district shallcease to be paid to the authority after the expiration of 15years from the receipt by the county of the first tax incrementfrom that property.
Subd. 2. [USE.] (a) All tax increment received bythe authority from the district shall be used in accordance withthe distressed housing district plan.
(b) Tax increment may be used to pay the costs of:
(1) acquiring title to or an ownership interest in adistressed rental property;
(2) relocation of tenants residing in a distressed rentalproperty;
(3) demolition of all or a part of a distressed rentalproperty;
(4) substantial rehabilitation of a distressed rentalproperty;
(5) public improvements associated with the substantialrehabilitation or demolition of distressed housing properties;and
(6) the costs of the authority in administering the creationand operation of the district.
(c) The authority may pay the costs of substantialrehabilitation or demolition of the distressed rental propertiesdirectly, through the issuance and sale of obligations pursuantto Minnesota Statutes, section 469.178, by means of loans orgrants to the owners of such properties, or through the exerciseof any authority contained in Minnesota Statutes, sections469.090 to 469.1081.
(d) Tax increment received by the authority in excess ofthat needed to pay the costs described in paragraph (b), clause(2), shall be deposited into the housing account established bythe authority pursuant to Laws 1994, chapter 587, article 9,section 20.
Subd. 3. [RELOCATION.] As part of the acquisition ofany distressed rental property by the authority, the authorityshall comply with the provisions of the Uniform RelocationAssistance and Real Property Acquisition Policies Act of 1970,United States Code, title 42, sections 4601 to 4655, andregulations adopted thereunder and existing on the effective dateof this act. The authority shall also retain a professionalrelocation consultant to assist families in finding suitablereplacement housing.
Sec. 31. [APPLICABILITY OF OTHER LAWS.]
References in Minnesota Statutes to tax increment financingdistricts created and tax increment generated under MinnesotaStatutes, sections 469.174 to 469.179, except for references inMinnesota Statutes, section 273.1399, include the distressedhousing district and tax increment subject to sections 28 to 31.Minnesota Statutes, sections 469.174 to 469.179, apply only tothe extent specified in sections 28 to 31. The distressedhousing district does not have a longer duration than permittedby general law for purposes of Minnesota Statutes, section469.1782.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9852Sec. 32. [ENTERPRISE ZONE ALLOCATION; CITY OF DULUTH.]
In addition to tax reductions authorized by other law, thecommissioner of trade and economic development may allocate$300,000 for tax reductions pursuant to Minnesota Statutes,section 469.171, subdivision 1, for a financial services facilityof at least 100,000 square feet located in the city of Duluth. This amount is not subject to any funding limitations or maximumallocation limitations under Minnesota Statutes, section 469.169,subdivision 7. The tax reductions may be provided until theallocation under this section has been expended.
Sec. 33. [APPLICATION.]
Section 19 applies in Anoka, Carver, Dakota, Hennepin,Ramsey, Scott, and Washington counties.
Sec. 34. [REPEALER.]
Minnesota Statutes 1994, sections 13.99, subdivision 97; and469.150, are repealed.
Sec. 35. [EFFECTIVE DATE.]
Sections 3 and 4 are effective for all tax incrementfinancing districts and subdistricts for which an election was oris made under Minnesota Statutes, section 273.1399, subdivision6, paragraph (d), except the amendment in section 3 addingparagraph (d), clause (3), item (B) applies to elections madeafter the day following final enactment.
Sections 5 to 8 are effective the day following finalenactment for border city enterprise zones existing on thatdate.
Section 12 is effective beginning for annual statementsrequired to be published for calendar year 1995.
Sections 10, 11, 13, and 14 are effective the day followingfinal enactment and apply to all tax increment financingdistricts for which the request for certification was made afterAugust 1, 1979.
Sections 15 and 17 are effective for districts for which therequest for certification is made after April 30, 1996. Fordistricts for which the request for certification was made beforeMay 1, 1996, the governing body of the development authority mayelect, by resolution, to be governed by the provisions ofsections 15 and 17. The election is irrevocable and must be madeno later than December 31, 1996.
Notwithstanding the provisions of Minnesota Statutes,section 469.1782, subdivision 2, section 20 is effective withoutlocal approval on the effective date of Laws 1995, chapter 264,article 5, section 40.
Sections 21 and 22 are effective for the city of Duluth onthe day the chief clerical officer of the city of Duluth complieswith Minnesota Statutes, section 645.021, subdivision 3 and areeffective for the city of Richfield on the day the chief clericalofficer of the city of Richfield complies with MinnesotaStatutes, section 645.021, subdivision 3.
Sections 28 to 31 are effective the day following finalenactment and upon compliance by the governing body of BrooklynPark with Minnesota Statutes, section 645.021, subdivision3.
Section 1. [103D.729] [WATER MANAGEMENT DISTRICT.]
Subdivision 1. [WATER MANAGEMENT DISTRICT.] Awatershed district may establish a water management district ordistricts in the territory within the watershed, for the purposeof collecting revenues and paying the costs of projects initiatedunder section 103B.231, 103D.601, 103D.605, 103D.611, or103D.730.
Subd. 2. [PROCEDURE.] A watershed district mayestablish a water management district only by amendment to itsplan in accordance with section 103D.411, or 103B.231 forwatershed districts in the metropolitan area, and compliance withsubdivisions 3 and 4. The amendment shall describe withparticularity the territory or the area to be included in thewater management district, the amount of the necessary charges,the methods used to determine charges, and the length of time thewater management district will remain in force. After adoptionthe amendment shall be filed with the county auditor and countyrecorder of each county affected by the water managementdistrict. The water management district may be dissolved by theprocedure prescribed for the establishment of the watermanagement district.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9853Subd. 3. [NOTIFICATION.] The managers shall, tendays prior to a hearing or decision on projects implemented underthis section, provide notice to the city, town, or county withinthe affected area. The city, town, or county receiving noticeshall submit to the managers' concerns relating to theimplementation of the project. The managers shall consider theconcerns of the city, town, or county in the decision on theproject.
Subd. 4. [RESOLUTION OF DISPUTES.] Unresolveddifferences between local governments and the managers may bebrought before the committee on dispute resolution under section103B.101, subdivision 10. Within 45 days of receiving therequest for dispute resolution, the committee must consider theconcerns of the local government. The committee has 30 daysafter meeting to issue a recommendation to the board for finaldecision.
Sec. 2. [103D.730] [STORM WATER FACILITIES.]
(a) Any watershed district may build, construct,reconstruct, repair, enlarge, improve, or in any other mannerobtain storm water systems, including mains, holding areas andponds, and other appurtenances and related facilities for thecollection and disposal of storm water, maintain and operate thefacilities, and acquire by gift, purchase, lease, condemnation,or otherwise any and all land and easements required for thatpurpose.
(b) The authority granted is in addition to all other powerswith reference to the facilities otherwise granted by the laws ofthis state or by this chapter.
Sec. 3. Minnesota Statutes 1994, section 428A.01, subdivision2, is amended to read:
Subd. 2. [CITY.] "City" means the city in which the specialservice district is authorized to be established under a speciallaw a home rule charter or statutory city.
Sec. 4. Minnesota Statutes 1994, section 428A.01, subdivision3, is amended to read:
Subd. 3. [SPECIAL SERVICES.] "Special services" has themeaning given in the city's enabling legislation.ordinance but special services do may notinclude a service that is ordinarily provided throughout the cityfrom general fund revenues of the city unless an increased levelof the service is provided in the special service district.
Sec. 5. Minnesota Statutes 1994, section 428A.02, subdivision1, is amended to read:
Subdivision 1. [ORDINANCE.] The governing body of thea city may adopt an ordinance establishing a specialservice district. Only property that is classified under section273.13 and used for commercial, industrial, or public utilitypurposes, or is vacant land zoned or designated on a land useplan for commercial or industrial use and located in the specialservice district, may be subject to the charges imposed by thecity on the special service district. Other types of propertymay be included within the boundaries of the special servicedistrict but are not subject to the levies or charges imposed bythe city on the special service district. If 50 percent or moreof the market value of a parcel of property is classified undersection 273.13 as commercial, industrial, or vacant land zoned ordesignated on a land use plan for commercial or industrial use,or public utility for the current assessment year, then theentire market value of the property is subject to a servicecharge based on net tax capacity for purposes of sections 428A.01to 428A.10. The ordinance shall describe with particularity thearea within the city to be included in the district and thespecial services to be furnished in the district. The ordinancemay not be adopted until after a public hearing has been held onthe question. Notice of the hearing shall include the time andplace of hearing, a map showing the boundaries of the proposeddistrict, and a statement that all persons owning property in theproposed district that would be subject to a service charge willbe given opportunity to be heard at the hearing. Within 30days after adoption of the ordinance under this subdivision, thegoverning body shall send a copy of the ordinance to thecommissioner of revenue.
Sec. 6. [428A.101] [SPECIAL SERVICE DISTRICT; SUNSET OFSELF-EXECUTING PROVISIONS.]
The establishment of a new special service district afterJune 30, 2001, must be made pursuant to enabling legislationunder Minnesota Statutes 1994, sections 428A.01 to428A.10.
Sec. 7. [428A.11] [HOUSING IMPROVEMENT AREAS; DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] As used in sections428A.11 to 428A.20, the terms defined in this section have themeanings given them.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9854Subd. 2. [CITY.] "City" means a home rule charter orstatutory city.
Subd. 3. [ENABLING ORDINANCE.] "Enabling ordinance"means the ordinance adopted by the city council establishing thehousing improvement area.
Subd. 4. [HOUSING IMPROVEMENTS.] "Housingimprovements" has the meaning given in the city's enablingordinance. Housing improvements may include improvements tocommon elements of a condominium.
Subd. 5. [HOUSING IMPROVEMENT AREA.] "Housingimprovement area" means a defined area within the city wherehousing improvements are made or constructed and the costs of theimprovements are paid in whole or in part from fees imposedwithin the area.
Subd. 6. [HOUSING UNIT.] "Housing unit" means realproperty and improvements thereon consisting of a one-dwellingunit, or an apartment as described in chapter 515 or 515A, thatis occupied by a person or family for use as a residence.
Sec. 8. [428A.12] [PETITION REQUIRED.]
No action may be taken under sections 428A.13 and 428A.14unless owners of 25 percent or more of the housing units thatwould be subject to fees in the proposed housing improvement areafile a petition requesting a public hearing on the proposedaction with the city clerk. No action may be taken under section428A.14 to impose a fee unless owners of 25 percent or more ofthe housing units subject to the proposed fee file a petitionrequesting a public hearing on the proposed fee with the cityclerk or other appropriate official.
Sec. 9. [428A.13] [ESTABLISHMENT OF HOUSING IMPROVEMENTAREA.]
Subdivision 1. [ORDINANCE.] The governing body ofthe city may adopt an ordinance establishing a housingimprovement area. The ordinance must specifically describe theportion of the city to be included in the area, the basis for theimposition of the fees, and the number of years the fee will bein effect. In addition, the ordinance must include findings thatwithout the housing improvement area, the proposed improvementscould not be made by the condominium associations or housing unitowners, and the designation is needed to maintain and preservethe housing units within the housing improvement area. Theordinance may not be adopted until a public hearing has been heldregarding the ordinance. The ordinance may be amended by thegoverning body of the city, provided the governing body complieswith the public hearing notice provisions of subdivision 2. Within 30 days after adoption of the ordinance under thissubdivision, the governing body shall send a copy of theordinance to the commissioner of revenue.
Subd. 2. [PUBLIC HEARING.] The notice of publichearing must include the time and place of hearing, a map showingthe boundaries of the proposed area, and a statement that allpersons owning housing units in the proposed area that would besubject to a fee for housing improvements will be given anopportunity to be heard at the hearing. Notice of the hearingmust be given by publication in the official newspaper of thecity. The public hearing must be held at least seven days afterthe publication. Not less than ten days before the hearing,notice must also be mailed to the owner of each housing unitwithin the proposed area. For the purpose of giving mailednotice, owners are those shown on the records of the countyauditor. Other records may be used to supply the necessaryinformation. At the public hearing a person owning property inthe proposed housing improvement area may testify on any issuesrelevant to the proposed area. The hearing may be adjourned fromtime to time. The ordinance establishing the area may be adoptedat any time within six months after the date of the conclusion ofthe hearing by a vote of the majority of the governing body ofthe city.
Subd. 3. [PROPOSED HOUSING IMPROVEMENTS.] At thepublic hearing held under subdivision 2, the city shall provide apreliminary listing of the housing improvements to be made in thearea. The listing shall identify those improvements, if any,that are proposed to be made to all or a portion of the commonelements of a condominium. The listing shall also identify thosehousing units that have completed the proposed housingimprovements and are proposed to be exempted from a portion ofthe fee. In preparing the list the city shall consult with theresidents of the area and the condominium associations.
Subd. 4. [BENEFIT; OBJECTION.] Before the ordinanceis adopted or at the hearing at which it is to be adopted, theowner of a housing unit in the proposed housing improvement areamay file a written objection with the city clerk asserting thatthe owner's property should not be included in the area or shouldnot be subjected to a fee and objecting to the inclusion of thehousing unit in the area, for the reason that the property wouldnot benefit from the improvements.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9855The governing body shall make a determination of theobjection within 60 days of its filing. Pending itsdetermination, the governing body may delay adoption of theordinance or it may adopt the ordinance with a reservation thatthe landowner's property may be excluded from the housingimprovement area or fee when the determination is made.
Subd. 5. [APPEAL TO DISTRICT COURT.] Within 30 daysafter the determination of the objection, any person aggrieved,who is not precluded by failure to object before or at thehearing, or whose failure to object is due to a reasonable cause,may appeal to the district court by serving a notice upon themayor or city clerk. The notice shall be filed with the courtadministrator of the district court within ten days after itsservice. The city clerk shall furnish the appellant a certifiedcopy of the findings and determination of the governing body. The court may affirm the action objected to or, if theappellant's objections have merit, modify or cancel it. If theappellant does not prevail upon the appeal, the costs incurredare taxed to the appellant by the court and judgment entered forthem. All objections are deemed waived unless presented onappeal.
Sec. 10. [428A.14] [IMPROVEMENT FEES AUTHORITY; NOTICE ANDHEARING.]
Subdivision 1. [AUTHORITY.] Fees may be imposed bythe city on the housing units within the housing improvement areaat a rate, term, or amount sufficient to produce revenue requiredto provide housing improvements in the area. The fee can beimposed on the basis of the tax capacity of the housing unit, orthe total amount of square footage of the housing unit, or amethod determined by the council and specified in the resolution.Before the imposition of the fees, a hearing must be held andnotice must be published in the official newspaper at least sevendays before the hearing and shall be mailed at least seven daysbefore the hearing to any housing unit owner subject to a fee. For purposes of this section, the notice must alsoinclude:
(1) a statement that all interested persons will be given anopportunity to be heard at the hearing regarding a proposedhousing improvement fee;
(2) the estimated cost of improvements includingadministrative costs to be paid for in whole or in part by thefee imposed under the ordinance;
(3) the amount to be charged against the particularproperty;
(4) the right of the property owner to prepay the entirefee;
(5) the number of years the fee will be in effect;and
(6) a statement that the petition requirements of section428A.12 have either been met or do not apply to the proposedfee.
Within six months of the public hearing, the city may adopta resolution imposing a fee within the area not exceeding theamount expressed in the notice issued under this section.
Prior to adoption of the resolution approving the fee, thecondominium associations located in the housing improvement areashall submit to the city a financial plan prepared by anindependent third party, acceptable to the city and associations,that provides for the associations to finance maintenance andoperation of the common elements in the condominium and along-range plan to conduct and finance capitalimprovements.
Subd. 2. [LEVY LIMIT.] Fees imposed under thissection are not included in the calculation of levies or limitson levies imposed under any law or charter.
Sec. 11. [428A.15] [COLLECTION OF FEES.]
The city may provide for the collection of the housingimprovement fees according to the terms of section428A.05.
Sec. 12. [428A.16] [BONDS.]
At any time after a contract for the construction of all orpart of an improvement authorized under sections 428A.11 to428A.20 has been entered into or the work has been ordered, thegoverning body of the city may issue obligations in the amount itdeems necessary to defray in whole or in part the expenseincurred and estimated to be incurred in making the improvement,including every item of cost from inception to completion and allfees and expenses incurred in connection with the improvement orthe financing.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9856The obligations are payable primarily out of the proceeds ofthe fees imposed under section 428A.14, or from any other specialassessments or revenues available to be pledged for their paymentunder charter or statutory authority, or from two or more ofthose sources. The governing body may, by resolution adoptedprior to the sale of obligations, pledge the full faith, credit,and taxing power of the city to assure payment of the principaland interest if the proceeds of the fees in the area areinsufficient to pay the principal and interest. The obligationsmust be issued in accordance with chapter 475, except that anelection is not required, and the amount of the obligations arenot included in determination of the net debt of the city underthe provisions of any law or charter limiting debt.
Sec. 13. [428A.17] [ADVISORY BOARD.]
The governing body of the city may create and appoint anadvisory board for the housing improvement area in the city toadvise the governing body in connection with the planning andconstruction of housing improvements. In appointing the board,the council shall consider for membership, members of condominiumassociations located in the housing improvement area. Theadvisory board shall make recommendations to the governing bodyto provide improvements or impose fees within the housingimprovement area. Before the adoption of a proposal by thegoverning body to provide improvements within the housingimprovement area, the advisory board of the housing improvementarea shall have an opportunity to review and comment upon theproposal.
Sec. 14. [428A.18] [VETO POWERS.]
Subdivision 1. [NOTICE OF RIGHT TO FILE OBJECTIONS.]The effective date of any ordinance or resolution adoptedunder sections 428A.13 and 428A.14 must be at least 45 days afterit is adopted. Within five days after adoption of the ordinanceor resolution, a summary of the ordinance or resolution shall bemailed to the owner of each housing unit included in themultiunit housing improvement area. The mailing shall include anotice that owners subject to a fee have a right to veto theordinance or resolution by filing the required number ofobjections with the city clerk before the effective date of theordinance or resolution and that a copy of the ordinance orresolution is on file with the city clerk for publicinspection.
Subd. 2. [REQUIREMENTS FOR VETO.] If residents of 35percent or more of the housing units in the area subject to thefee file an objection to the ordinance adopted by the city undersection 428A.13 with the city clerk before the effective date ofthe ordinance, the ordinance does not become effective. Ifowners of 35 percent or more of the housing units' tax capacitysubject to the fee under section 428A.14 file an objection withthe city clerk before the effective date of the resolution, theresolution does not become effective.
Sec. 15. [428A.19] [ANNUAL REPORTS.]
Each condominium association located within the housingimprovement area must, by August 15 annually, submit a copy ofits audited financial statements to the city. The city may also,as part of the enabling ordinance, require the submission ofother relevant information from the associations.
Sec. 16. [428A.20] [SPECIAL ASSESSMENTS.]
Within a housing improvement area, the governing body of thecity may, in addition to the fee authorized in section 428A.14,special assess housing improvements to benefited property. Thegoverning body of the city may by ordinance adopt regulationsconsistent with this section.
Sec. 17. [428A.21] [SUNSET.]
No new housing improvement areas may be established undersections 428A.11 to 428A.20 after June 30, 2001. After June 30,2001, a city may establish a housing improvement area, providedthat it receives enabling legislation authorizing theestablishment of the area.
Sec. 18. Minnesota Statutes 1994, section 444.075, is amendedby adding a subdivision to read:
Subd. 2a. [COLLECTION OF CHARGES BY WATERSHEDDISTRICTS.] (a) With respect to watershed districts, chargesestablished under section 103D.729 for the purpose of projectsunder section 103D.730 may be billed and collected in a mannerthe district shall determine, including certification to thecounties with territory within the district for collection by thecounties. A county may bill and collect the charges in a mannerthe county board shall determine or as described in paragraph(b).
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9857(b) On or before October 15 in each year, the district orcounty board may certify to the county auditor all unpaidoutstanding charges, and a description of the lands against whichthe charges arose. The county auditor shall extend the chargeswith interest not to exceed the interest rate provided for insection 279.03, subdivision 1, upon the tax rolls of the countyfor the taxes of the year in which the charge is filed. For eachyear ending October 15 the charge with interest shall be carriedinto the tax becoming due and payable in January of the followingyear, and shall be enforced and collected in the manner providedfor the enforcement and collection of real property taxes. Thecharges, if not paid, shall become delinquent and subject to thesame penalties and the same rate of interest as real propertytaxes.
(c) Any individual may appeal the charges under section103D.535.
Sec. 19. Laws 1963, chapter 118, section 1, subdivision 3, isamended to read:
Subd. 3. For the purpose of this act, the term "municipality"shall include cities, villages, and towns of the hospitaldistrict, which are as follows: the cities of Faribault,Nerstrand, and Morristown; and the townships of Wheeling, CannonCity, Wells, Shieldsville, Morristown, Warsaw, Walcott, andRichland.
Sec. 20. Laws 1963, chapter 118, section 2, is amended toread:
Sec. 2. [HOSPITAL BOARD; APPOINTMENT; TERMS.]
Subdivision 1. The hospital district shall be governed by aboard of directors of nine voting members, hereinafter called"hospital board", who shall be residents of the district,appointed by the county board committee described undersubdivision 4. The members of the hospital board shall beselected from the several municipalities forming a part of thedistrict, on the basis of population, so that, as nearly aspracticable, the most populous municipality shall have numericalrepresentation in proportion to its share of the total districtpopulation.
Subd. 2. One third of the members of the first hospitalboard shall be appointed for a term to expire one year from May 1next following such appointment, one third for a term to expiretwo years from such date, and one third for a term to expirethree years from such date. Successors to the original boardmembers shall each be appointed for terms of three years. Allmembers shall hold office until their successors are appointedand qualify. Terms of all members shall expire on May 1. Members of the hospital board shall be appointed to athree-year term, expiring on May 1. Terms of office must bestaggered so that one-third of the positions are up forappointment each year. In case of a vacancy on the hospitalboard, whether due to death, removal from the districtnonresidency, inability to serve, resignation, orother removal for cause the county board, at itsnext regular or special meeting, shall make an appointmentto fill such vacancy shall be made at a special meetingof the appointment committee for the then unexpired term. Tenure of each board member is limited to three successivethree-year terms, or a total of nine successive years, buta member may be reappointed after one year without boardmembership. The hospital administrative staff shallfacilitate the appointment process, including an openadvertisement for hospital board vacancies.
Subd. 3. In addition to voting members, the hospital board mayadd ex officio members to the board, but without votingprivilege. The hospital board shall adopt bylaws to providegrounds and a procedure for removal of board members for causeand may remove board members in accordance with thebylaws.
Subd. 4. All members of the hospital board at the time thehospital district is reorganized shall continue in office untilthe members of the first board of the reorganized district areappointed and qualify. A five-member appointmentcommittee of elected officials representing the municipalities ofthe hospital district shall be established each year. Twomembers of the appointing committee shall be selected by theFaribault city council. Two members of the appointing committeeshall be selected by the representatives of the othermunicipalities at the hospital annual meeting. One countycommissioner member, whose constituency is made up of at leastone-third of the city of Faribault, shall be selected by the Ricecounty board.
Sec. 21. Laws 1963, chapter 118, section 4, is amended toread:
Sec. 4. [MEETINGS OF THE BOARD.]
Subdivision 1. Regular meetings of the hospital boardshall be held at least once a month, at such time and place asthe board shall by resolution determine. Special meetings may beheld at any time upon the call of the chairman or of any twoother members, upon written notice mailed to each member threedays prior to the meeting, or upon such other notice as theboard, by resolution, may provide, or without notice, if eachmember is present or files with
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9858the secretary a written consent to the holding of the meeting,which consent may be filed before or after the meeting. Anyaction within the authority of the board may be taken by the voteof a majority of the members present at a regular or adjournedmeeting or at a duly called special meeting if a quorum ispresent. A majority of all the members of the board shallconstitute a quorum, but a lesser number may meet and adjournfrom time to time.
Subd. 2. During the second half of each year, the hospitalboard will convene an annual meeting to report to the citizens ofthe hospital district on the state of the hospital. The agendawill include a report by the chief executive officer on thestatus of the hospital, future plans for the hospital, and thehospital's financial condition, including the need for revenuesderived from the property tax levy. Each of the municipalitiesshall send one official representative.
Sec. 22. Laws 1963, chapter 118, section 6, is amended toread:
Sec. 6. [PAYMENT OF EXPENSES; TAXATION.]
Subdivision 1. Expenses of acquisition, betterment,administration, operation, and maintenance of any hospital,including nursing home facilities, operated by the hospitaldistrict, shall be paid from the revenue derived therefrom and,to the extent necessary, from ad valorem taxes levied by thehospital board upon all taxable property situated within thedistrict. and, to the extent determined from time totime by the county board of Rice county, from appropriations madeby said board in accordance with the provisions of MinnesotaStatutes 1961, Section 376.08, or any future laws authorizingsuch appropriations. Any moneys so appropriated by such countyboard for the acquisition or betterment of facilities of thehospital district may be transferred, in the discretion of thehospital board, to a sinking fund for bonds issued for thatpurpose. The hospital board may agree to repay to the county anysums so appropriated, out of the net revenues to be derived fromoperation of its facilities, subject to such terms as may beagreed upon. No taxes levied by the hospital district in anyyear, other than taxes levied for payment of bonded indebtedness,shall exceed a total of five mills, provided that such limitationmay be exceeded if the amount proposed to be levied in excess ofsuch millage against property in any municipality within thedistrict added to the levy of such municipality would not causesuch municipal levy to exceed the limitations of MinnesotaStatutes 1961, Section 275.10 or 275.11.
Subd. 2. On or before October 10 September 15 ofeach year the hospital board shall determine certify tothe county auditor the total amount required to be raisedfrom ad valorem tax levy in order to meet estimated expensesduring the ensuing year and shall cause such amount to becertified to the county auditor to be extended upon the taxrolls.
Subd. 3. The county auditor shall determine the millagelevy required and certify the same to the county treasurer forcollection with other taxes. The county treasurer shall makesettlement of such taxes with the treasurer of the hospitaldistrict in the same manner as other taxes are distributed topolitical subdivisions. The levies authorized by this sectionshall be in addition to any other taxes authorized by law.
Subd. 4. The hospital board may levy up to 1.70 percent ofthe hospital district's net tax capacity without the approval ofthe Faribault city council and the governing bodies of the othermunicipalities in the hospital district. Any amount of taxlevied by the hospital board in excess of 1.70 percent of thehospital district's net tax capacity shall require ratificationby a majority vote of the Faribault city council and a majorityof the governing bodies of the other municipalities in thehospital district. At the option of the hospital board, the votemay occur at a specially scheduled joint meeting of all themunicipalities of the hospital district, or at the hospital'sannual meeting.
Sec. 23. Laws 1971, chapter 869, section 2, subdivision 2, asamended by Laws 1973, chapter 632, section 1, is amended toread:
Subd. 2. [ALEXANDRIA, CITY OF; SANITARY SEWER BOARD.]"Alexandria Lake Area Sanitary District" and "district" mean thearea over which the sanitary sewer board has jurisdiction whichshall include all that part of Douglas county, Minnesota,described as follows, to-wit:
(a) all of the city of Alexandria, Minnesota;
(b) the NW 1/4 of section 3, the SW 1/4 of section 3 except theSE 1/4 thereof, all of sections 4, 5, 6, 7, 8, 9, 10, 15, 16, 17,18, 19, 20 and 21, section 22 except the E 1/2 of the SE 1/4thereof, the NW 1/4 and the W 1/2 of the NE 1/4 of section 27,section 28 except the E 1/2 of the SE 1/4 thereof, all ofsections 29, 30, 31 and 32, and section 33 except for the E 1/2of the E 1/2 thereof all in township 128 north, range 37 west,excepting that part of the foregoing territory already includedwithin the district by reason of its being within the corporatelimits of the city of Alexandria;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9859(c) all that part of the W 1/2 of section 4 and all of section5 lying north of the north right of way line of InterstateHighway I-94, the and N 1/2 of section 6 all in township 127north, range 37 west, excepting that part of the foregoingterritory already included within the district by reason of itsbeing within the corporate limits of the city of Alexandria;
(d) the SW 1/4 of section 10, the SW 1/4 of section 14, theNW 1/4 and the S 1/2 of section 15, the S 1/2 and the NW 1/4 ofsection 16, the S 1/2 of the NE 1/4 and the S 1/2 of section17, the E 1/2 of the E 1/2 of section 19, all of section 20, theW 1/2 of section 21, the N 1/2 of the NW 1/4 of section23, the W 1/2 of section 28, all of section 29, the S 1/2of the SE 1/4 and the E 1/2 of the E 1/2 of section 30, the E1/2 of the NE 1/4 and all of the SE 1/4 of section 31, all ofsections 32 and 33 and the SW 1/4 of section 34 all in township129 north, range 37 west;
(e) all of sections 1 and 2, section 10 except the N 1/2 of theNW 1/4 and the NW 1/4 of the NE 1/4 thereof, all of sections 11,12, 13 and 14, section 15 except the SW 1/4 and the W 1/2 of theSE 1/4 thereof, the E 1/2 of the NE 1/4 and all of the SE 1/4 ofsection 22, the SE 1/4 of the SW 1/4 of section 22, all ofsections 23, 24, 25 and 26, section 27 except the W 1/2 of the NW1/4 thereof, the SE 1/4 of section 28, the NE 1/4 of the SE1/4 of section 32, the SW 1/4, the NW 1/4, the NE 1/4 ofsection 33 except the SW 1/4 thereof, and the NW 1/4 and the NW1/4 of the NE 1/4 of section 34 all in township 128 north range38 west, excepting that part of the foregoing territory alreadyincluded within the district by reason of its being within thecorporate limits of the city of Alexandria;
(f) such other territory within or without Douglas county,Minnesota as may be included within the district pursuant tosection 21.
Sec. 24. Laws 1971, chapter 869, section 2, subdivision 14, isamended to read:
Subd. 14. "Municipality" means any city, village ortown located in whole or in part in the district.
Sec. 25. Laws 1971, chapter 869, section 2, subdivision 17, asadded by Laws 1975, chapter 287, section 1, is amended toread:
Subd. 17. [ALEXANDRIA, CITY OF; LAKE AREA; SANITARY SEWERS.]"Agricultural property" means land as is classified agriculturalland within the meaning of Minnesota Statutes, Section 273.13,Subdivision 6 23, paragraph (c).
Sec. 26. Laws 1971, chapter 869, section 3, subdivision 5, isamended to read:
Subd. 5. [TERMS OF OFFICE.] The term of each of the firstboard members shall expire on January 1 in a calendar year to bedetermined in accordance with subdivision 2 by the governing bodyselecting such member, provided that such term shall not expireany later than January 1, 1975. Succeeding terms of allboard members shall be for one, two, three or fourcalendar years to be determined in accordance withsubdivision 2 by the governing body selecting such member. Terms shall expire on January 1 of a calendar year, exceptthat each member shall serve until his successor has been dulyselected and qualified.
Sec. 27. Laws 1971, chapter 869, section 3, subdivision 6, isamended to read:
Subd. 6. [REMOVAL.] A board member may be removed by theunanimous vote of the appointing governing bodyappointing him, with or without cause, or by thegovernor for malfeasance or nonfeasance in the performance of hisofficial duties as provided by Minnesota Statutes, Sections351.03 and 351.04.
Sec. 28. Laws 1971, chapter 869, section 3, subdivision 9, isamended to read:
Subd. 9. [BOARD MEMBERS' COMPENSATION.] Each board member,except the chairman, shall be paid a per diem compensationof $25 for meetings and for such other services in suchamount as are specifically authorized by the board,from time to time. Per diem compensation shall notto exceed $1,000 $4,000 in any one year. The chairman shall be paid a per diem compensation of $35 formeetings and for such other services as are specificallyauthorized by the board, not to exceed $1,500 in any oneyear. All members of the board shall be reimbursed for allreasonable expenses incurred in the performance of their dutiesas determined by the board.
Sec. 29. Laws 1971, chapter 869, section 4, subdivision 1, isamended to read:
Subdivision 1. [ORGANIZATION; OFFICERS; MEETINGS;SEAL.] After the selection and qualification of all boardmembers, they shall meet to organize the board at the call of anytwo board members, upon seven days a notice by registered mail tothe remaining board members, at a time and place within thedistrict specified in the notice. A
majority of the members shall constitute a quorum at thatmeeting and all other meetings of the board, but alesser number may meet and adjourn from time to time and compelthe attendance of absent members. At the first meeting theboard shall select its officers as hereinafter provided andconduct such other organizational business as may be necessary. Thereafter The board shall meet regularly at such time andplace as the board shall by resolution designate. Specialmeetings may be held at any time upon call of the chairman or anytwo members, upon written notice sent by mail to each member atleast three days prior to the meeting, or upon such other noticeas the board by resolution may provide, or without notice if eachmember is present or files with the secretary a written consentto the meeting either before or after the meeting. Except asotherwise provided in this act, any action within the authorityof the board may be taken by the affirmative vote of a majorityof the board may be taken by at a regular oradjourned regular meeting or at a duly held special meeting, butin any case only if a quorum is present. All meetings of theboard shall be open to the public. The board may adopt a seal,which shall be officially and judicially noticed, to authenticateinstruments executed by its authority, but omission of the sealshall not affect the validity of any instruction.
Sec. 30. Laws 1971, chapter 869, section 4, subdivision 2, isamended to read:
Subd. 2. [CHAIRMAN CHAIR.] The board shall electa chairman chair from its membership. The term ofthe first chairman of the board shall expire on January 1,1973, and the terms of successor chairmen chair shallexpire on January 1 of each succeeding year. Thechairman chair shall preside at all meetings of theboard, if present, and shall perform all other duties andfunctions usually incumbent upon such an officer, and alladministrative functions assigned to him by the board. The boardshall elect a vice chairman chair from itsmembership to act for the chairman chair duringhis temporary absence or disability.
Sec. 31. Laws 1971, chapter 869, section 4, subdivision 5, asamended by Laws 1973, chapter 632, section 2, is amended toread:
Subd. 5. [PUBLIC EMPLOYEES.] The executive director and allpersons employed by the executive director shall be publicemployees, and shall have all the rights and duties conferred onpublic employees under Minnesota Statutes, Sections 179.50 to179.571. The board may elect to have such employees becomemembers of either the public employees retirement association orthe Minnesota state retirement system 179A.01 to179A.25. The compensation and conditions of employment ofsuch employees shall not be governed by any rule applicable tostate employees in the classified service nor to any of theprovisions of Minnesota Statutes, Chapter 15A, unless the boardso provides.
Sec. 32. Laws 1971, chapter 869, section 5, subdivision 1, isamended to read:
Subdivision 1. [BOARD PLAN AND PROGRAM.] The board shall adoptas its first a comprehensive plan for thecollection, treatment, and disposal of sewage in the district forsuch designated period as the board deems proper and reasonablethe comprehensive plan adopted by the joint powers boardheretofore established for the Alexandria Lake Area SanitaryDistrict by agreement among local government units pursuant toMinnesota Statutes, Section 471.59. The board shall prepareand adopt subsequent comprehensive plans for the collection,treatment and disposal of sewage in the district for each suchsucceeding designated period as the board deems proper andreasonable. The first plan, as modified by the board,and any subsequent plan shall take into account thepreservation and best and most economic use of water and othernatural resources in the area; the preservation, use andpotential for use of lands adjoining waters of the state to beused for the disposal of sewage; and the impact such a disposalsystem will have on present and future land use in the areaaffected thereby. Such plans shall include the general locationof needed interceptors and treatment works, a description of thearea that is to be served by the various interceptors andtreatment works, a long range capital improvements program andsuch other details as the board shall deem appropriate. Indeveloping the plans, the board shall consult with personsdesignated for such purpose by governing bodies of any municipalor public corporation or governmental or political subdivision oragency within the district to represent such entities and shallconsider the data, resources and input offered to the board bysuch entities and any planning agency acting on behalf of one ormore such entities. Each such plan, when adopted, shall befollowed in the district and may be revised as often as the boarddeems necessary.
Sec. 33. Laws 1971, chapter 869, section 5, subdivision 3, isamended to read:
Subd. 3. [MUNICIPAL PLANS AND PROGRAMS; COORDINATION WITHBOARD'S RESPONSIBILITIES.] As soon as practicable after theadoption by the board of the first comprehensive plan, andBefore undertaking the construction of new sewers or otherdisposal facilities or the substantial alteration or improvementof any existing sewers or other disposal facilities, each localgovernment unit may, and shall if the construction or alterationof any sewage disposal facilities is contemplated by suchgovernment unit, adopt a similar comprehensive plan andprogram
for the collection, treatment and disposal of sewage for whichthe local government unit is responsible, coordinated with theboard's comprehensive plan, and may revise the same asoften as it deems necessary. Each such local plan or revisionthereof shall be submitted forthwith to the board for review andshall be subject to the approval of the board as to thosefeatures of the plan affecting the board's responsibilities asdetermined by the board. Any such features disapproved by theboard shall be modified in accordance with the board'srecommendations. Once the board's plan is adopted, Nosuch construction project involving such features shall beundertaken by the local government unit unless its governing bodyshall first find the project to be in accordance with thegovernment unit's comprehensive plan and program as approved bythe board. Prior to approval by the board of the comprehensiveplan and program of any local government unit in the district, nosuch construction project shall be undertaken by suchgovernment unit unless approval of the project is first securedfrom the board as to those features of the project affecting theboard's responsibilities as determined by the board.
Sec. 34. Laws 1971, chapter 869, section 8, is amended toread:
Sec. 8. [BUDGET.]
The board shall prepare and adopt, on or before October 1,1971 and on or before October 1, 1972, and of eachyear thereafter, a budget showing for the followingcalendar year or other fiscal year determined by the board,sometimes referred to in this act as the budget year, estimatedreceipts of money from all sources, including but not limited topayments by each local government unit, federal or state grants,taxes on property, and funds on hand at the beginning of theyear, and estimated expenditures for:
(1) deferred payments under section 9, subdivisions 3 and4;
(2) costs of operation, administration and maintenanceof the district disposal system;
(3) (2) cost of acquisition and betterment of thedistrict disposal system; and
(4) (3) debt service, including principal andinterest, on general obligation bonds and certificates issuedpursuant to section 13, obligations and debts assumed undersection 6, subdivisions 2 and 3, and any money judgments enteredby a court of competent jurisdiction. Expenditures within thesegeneral categories, and such others as the board may from time totime determine, shall be itemized in such detail as the boardshall prescribe. The board and its officers, agents andemployees shall not spend money for any purpose other than debtservice without having set forth such expense in the budget norin excess of the amount set forth in the budget therefor, and noobligation to make such an expenditure shall be enforceableexcept as the obligation of the person or persons incurring it;provided that the board may amend the budget at any time bytransferring from one purpose to another any sums except moneyfor debt service and bond proceeds or by increasing expendituresin any amount by which cash receipts during the budget yearactually exceed the total amounts designated in the originalbudget. The creation of any obligation pursuant to section 13 orthe receipt of any federal or state grant is a sufficient budgetdesignation of the proceeds for the purpose for which it isauthorized, and of the tax or other revenue pledged to pay theobligation and interest on it, whether or not specificallyincluded in any annual budget.
Sec. 35. Laws 1971, chapter 869, section 10, subdivision 3b,as added by Laws 1975, chapter 287, section 6, is amended toread:
Subd. 3b. Any ad valorem taxes levied under Laws 1971, Chapter869, Section 10, Subdivision 3 or Section 5 of this act by thegoverning body of a government unit to pay any sums charged to itby the board under Laws 1971, Chapter 869 or this act shall beconsidered special levies within the meaning of MinnesotaStatutes, Section 275.50, Subdivision 5 , as amended arenot subject to, or counted towards, any limit imposed by law onthe levy of the taxes upon taxable property within anygovernmental unit.
Sec. 36. Laws 1971, chapter 869, section 12, subdivision 1, asamended by Law 1973, chapter 632, section 3, is amended toread:
Subdivision 1. [CONTRIBUTIONS OR ADVANCES FROM LOCALGOVERNMENT UNITS.] The board may, at such time as it deemsnecessary and proper, request from all or some of the localgovernment units necessary moneys to defray the costs of anyobligations assumed under section 6 and the costs ofadministration, operation and maintenance, including but notlimited to expenses and services described in subdivision 3.Before making such request the board shall, by formal resolution,determine the necessity for such moneys, setting forth in suchresolution the purposes for which such moneys are needed and theestimated amount for each such purpose. Upon receiving
such request, the governing body of each such government unit mayprovide for payment of the amount requested or such part thereofas it deems fair and reasonable. Such moneys may be paid out ofgeneral revenue funds or any other available funds of any localgovernment unit and the governing bodies thereof may levy taxesto provide funds therefor, free from any existing limitationsimposed by law or charter. Such moneys may be provided by suchgovernment units with or without interest but if interest ischarged it shall not exceed five percent per annum. The boardshall credit the local government units for such payments inallocating current costs pursuant to section 9, on such terms andat such times as it may agree with the unit furnishing thesame.
Sec. 37. Laws 1971, chapter 869, section 12, subdivision 2, asamended by Laws 1973, chapter 632, section 4, is amended toread:
Subd. 2. [LIMITED TAX LEVY.] The board may levy ad valoremtaxes on all taxable property in the district to defray any ofthe costs described in subdivisions subdivision 1and 3, provided that: (a) such costs have not beendefrayed by contribution under subdivision 1 and (b) such taxlevy in any year shall not exceed 5 mills a taxcapacity rate of four percent annually. Before certificationof such levy to the county auditor, the board shall determine theneed for the money to be derived from such levy by formalresolution setting forth in said resolution the purposes forwhich the tax moneys will be used and the amount proposed to beused for each such purpose. In allocating current costs pursuantto section 9 the board shall credit the government units fortaxes collected pursuant to levy made under this subdivision onsuch terms and at such times as it deems just and reasonable.
Sec. 38. Laws 1971, chapter 869, section 17, subdivision 11,is amended to read:
Subd. 11. The board may sell, lease or otherwise dispose ofany real or personal property acquired by it which is no longerrequired for accomplishment of its purposes. Such property maybe sold in the manner provided by Minnesota Statutes, Section458.196 469.065, insofar as practical. The boardmay give such notice of sale as it shall deem appropriate. Whenthe board determines that any property or any part of thedistrict disposal system which has been acquired from a localgovernment unit without compensation is no longer required but isrequired as a local facility by the government unit from which itwas acquired, the board may by resolution transfer it to suchgovernment unit.
Sec. 39. Laws 1971, chapter 869, section 19, is amended toread:
Sec. 19. [SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES OUTSIDETHE JURISDICTION OF THE BOARD.]
The board may contract with the United States or any agencythereof, any state or any agency thereof, or any municipal orpublic corporation, governmental subdivision or agency orpolitical subdivision in any state, outside the jurisdiction ofthe board, for furnishing to such entities any services which theboard may furnish to local government units in the district underthis act, including but not limited to planning for and theacquisition, betterment, operation, administration andmaintenance of any or all interceptors, treatment works and localsanitary sewer facilities, provided that the board may furtherinclude as one of the terms of the contract that such entity alsopay to the board such amount as may be agreed upon as areasonable estimate of the proportionate share properly allocableto the entity of costs of acquisition, betterment and debtservice previously allocated to local government units in thedistrict. When such payments are made by such entities to theboard, they shall be applied in reduction of the total amount ofcosts thereafter allocated to each local government unit in thedistrict, on such equitable basis as the board deems to be in thebest interests of the district, applying so far as practicableand appropriate the criteria set forth in section 9, subdivision2 2a. Any municipality in the state of Minnesotamay enter into such contract and perform all acts and thingsrequired as a condition or consideration therefor consistent withthe purposes of this act, whether or not included among thepowers otherwise granted to such municipality by law orcharter, such powers to include those powers set out insection 10, subdivisions 3, 3a, 3b, and 4.
Sec. 40. Laws 1971, chapter 869, section 20, subdivision 2, isamended to read:
Subd. 2. [CONTRACTS IN EXCESS OF $5,000 UNIFORMMUNICIPAL CONTRACTING LAW.] No contract for anyconstruction work, or for the purchase of materials, supplies, orequipment, estimated to cost more than $5,000 shall be made bythe board without publishing once in a newspaper having generalcirculation in the district and once in a trade paper or legalnewspaper published in any city of the first class, not less than14 days before the last day for submission of bids, notice thatbids or proposals will be received. Such notice shall state thenature of the work or purchase and the terms and conditions uponwhich the contract is to be awarded, and the time and place wheresuch bids will be received, opened, and read publicly. Aftersuch bids have been duly received, opened, read
publicly, and recorded, the board shall within a reasonable timeaward such contract to the lowest responsible bidder or it mayreject all bids and readvertise. Each contract shall be dulyexecuted in writing and the party to whom the contract is awardedshall give sufficient bond or security to the board for thefaithful performance of the contract as required by law. If theboard by an affirmative vote of not less than two thirds of itsmembers declares that an emergency exists requiring the immediatepurchase of materials or supplies or in making emergency repairs,at a cost estimated to be in excess of $5,000, it shall not benecessary to advertise for bids. All contracts for workto be done or for purchases of materials, supplies, or equipmentshall be done in accordance with Minnesota Statutes,section 471.345.
Sec. 41. Laws 1971, chapter 869, section 21, is amended toread:
Sec. 21. [ANNEXATION OF TERRITORY.]
Subdivision 1. [METHOD AND CONDITIONS FOR ANNEXATION.]Any municipality in Douglas county, Minnesota uponresolution adopted by a four-fifths vote of its governing bodymay petition the board for annexation to the district of the areathen comprising the municipality, or any part thereof and, ifaccepted by the board, such area shall be deemed annexed to thedistrict and subject to the jurisdiction of the board under theterms and provisions of this act. The territory so annexed shallbe subject to taxation and assessment pursuant to the provisionsof this act and shall be subject to taxation by the board likeother property in the district for the payment of principal andinterest thereafter becoming due on general obligations of theboard, whether authorized or issued before or after suchannexation. The board may in its discretion condition approvalof the annexation upon: (a) the contribution, by or onbehalf of the municipality petitioning for annexation, to theboard of such amount as may be agreed upon as being a reasonableestimate of the proportionate share, properly allocable to themunicipality, of costs of acquisition, betterment and debtservice previously allocated to local government units in thedistrict, on such terms as may be agreed upon.; and inlieu of (a) or in addition thereto (b) such other and furtherconditions as the board deems in the best interests of thedistrict. Notwithstanding any other provisions of this act tothe contrary, the conditions established for annexation mayinclude the requirement that the annexed municipality pay for,contract for and oversee the construction of local sanitary sewerfacilities and interceptor sewers as those terms are defined insection 2. For the purpose of paying this suchcontribution or of satisfying any other condition establishedby the board, the municipality petitioning annexation mayexercise the powers conferred in section 10. When suchcontributions are made by the municipality to the board, theyshall be applied in reduction of the total amount of coststhereafter allocated to each local government unit in thedistrict, on such equitable basis as the board deems to be in thebest interests of the district, applying so far as practicableand appropriate the criteria set forth in section 9, subdivision2. Upon annexation of such territory, the secretary of the boardshall certify to the auditor and treasurer of the county in whichthe municipality is located the fact of such annexation and alegal description of the territory annexed.
Subd. 2. [LAKE MARY AND IDA TOWNSHIPS.] If Lake Maryor Ida townships, or both of them, petition to annex all or anypart or parts of their townships to the district, upon acceptanceby the board, the townships shall have all powers set out insection 18, subdivision 6.
Sec. 42. Laws 1971, chapter 869, section 24, is amended toread:
Sec. 24. [AFFECTED LOCAL GOVERNMENT UNITS.]
The city of Alexandria and the townships of Alexandria, Carlos,Hudson and, LaGrand, Lake Mary, and Ida, inthe county of Douglas, are affected by this act. Local consentshall not be required.
Sec. 43. Laws 1985, chapter 302, section 2, subdivision 1, asamended by Laws 1993, chapter 375, article 5, section 36,subdivision 1, and Laws 1995, chapter 264, article 3, section 28,subdivision 1, is amended to read:
Subdivision 1. [ORDINANCE.] The governing body of the city mayadopt ordinances:
(a) establishing a special service district in the part ofMinneapolis which is south of 28th Street, west of Dupont AvenueSouth, north of 31st Street, and east of East Calhoun Parkway andEast Lake of the Isles Parkway;
(b) establishing a special service district south of SixthStreet southeast, west of Sixteenth Avenue Southeast, north of aline parallel to and 200 feet south of University Avenue and eastof Twelfth Avenue Southeast;
(c) establishing a special service district that includes thatpart of Minneapolis lying within the following described line: commencing at the intersection of Grant Street with LaSalleAvenue, South on LaSalle Avenue to Franklin Avenue south onBlaisdell Avenue to 29th Street, east on 29th Street to 1stAvenue South, north on 1st Avenue South
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9864to a point on a line parallel to and 200 feet south of 26thStreet, east on that line to 3rd Avenue South, north on 3rdAvenue South to a point on a line parallel to and 200 feet northof 26th Street, west on that line to 1st Avenue South, north on1st Avenue South to Grant Street, west on Grant Street to thepoint of origin;
(d) establishing a special service district south of SaintAnthony Parkway, west of a line parallel to and 300 feet east ofCentral Avenue, north of Broadway Street, and east of a lineparallel to and 300 feet west of Central Avenue; and
(e) establishing a special service district that includes thatportion of Minneapolis lying within the following described line: commencing at the intersection of the Mississippi River andInterstate Highway 94, northwesterly along the Mississippi Riverto its intersection with Interstate Highway 35W, southwesterly onInterstate Highway 35W to its intersection with Hiawatha Avenueextended (Trunk Highway 55), southeasterly on Hiawatha Avenue toits intersection with Franklin Avenue, easterly on FranklinAvenue to its intersection with 20th Avenue South extended,northerly on 20th Avenue South to its intersection withInterstate Highway 94, and easterly on Interstate Highway 94 tothe point of origin.; and
(f) establishing a special service district that includesthat portion of Minneapolis lying within the following describedline: commencing at the intersection of France Avenue South andGlendale Terrace; south on France Avenue South to 52nd StreetWest; east on 52nd Street West to Ewing Avenue South, north onEwing Avenue South to 51st Street West; east on 51st Street Westto Upton Avenue South; north on Upton Avenue South to 44th StreetWest; east on 44th Street West to Thomas Avenue South; north on aline which would be a continuation of Thomas Avenue South to 42ndStreet West; west on 42nd Street West to Vincent Avenue South;south on Vincent Avenue South to 43rd Avenue West; west on 43rdStreet West to Chowen Avenue South; south on Chowen Avenue Southto Drew Avenue South; southwesterly on Drew Avenue South toGlendale Terrace; and west on Glendale Terrace to the point oforigin.
Only property which is zoned for commercial, business, orindustrial use under a municipal zoning ordinance may be includedin a special service district. The ordinance shall describe withparticularity the areas to be included in the district and thespecial services to be furnished. The ordinance may not beadopted until after a public hearing on the question. Notice ofthe hearing shall include:
(1) the time and place of the hearing;
(2) a map showing the boundaries of the proposed district;and
(3) a statement that all persons owning property in theproposed district will be given an opportunity to be heard at thehearing.
Sec. 44. [CITY OF MINNEAPOLIS; SPECIAL SERVICE DISTRICTOPTION.]
For special service districts established in the city ofMinneapolis after enactment of this act and before July 1, 2001,the city of Minneapolis may at its option (1) establish thedistrict under the provisions of Minnesota Statutes,sections 428A.01 to 428A.10, or (2) establish by ordinance thedistrict under the provisions of Laws 1985, chapter 302, sections1 to 7, as amended. The enactment of enabling legislation underLaws 1985, chapter 302, as amended, is not required for adistrict established under this section.
Sec. 45. [VALLEY BRANCH WATERSHED DISTRICT.]
Subdivision 1. [LEVY AUTHORIZED.] NotwithstandingMinnesota Statutes, section 103D.905, subdivision 3, the ValleyBranch watershed district may levy up to $200,000 annually forits administrative fund.
Subd. 2. [EFFECTIVE DATE.] This section iseffective, without local approval, beginning with taxes levied in1996, payable in 1997.
Sec. 46. [VIRGINIA AREA AMBULANCE DISTRICT.]
Subdivision 1. [AGREEMENT; POWERS; GENERALDESCRIPTION.] (a) The cities of Virginia, Mountain Iron, andGilbert, and all or part of the towns of Pike, Clinton, McDavitt,Colvin, Sandy, Cherry, Ellsburg, Wouri, Lavell, and Embarrass,may by resolution of their city councils and town boardsestablish the Virginia area ambulance district.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9865(b) The St. Louis county board may by resolution providethat property located in unorganized townships described inclauses (1) to (5), or any part of them, may be included withinthe district:
(1) Township 61 North, Range 17 West;
(2) Township 59 North, Ranges 16 and 18 West;
(3) Township 56 North, Range 16 West;
(4) Township 60 North, Range 18 West; and
(5) Township 55 North, Range 15.
(c) The district shall make payments of the proceeds of thetax authorized in this section to the city of Virginia, whichshall provide ambulance services throughout the district and mayexercise all the powers of the cities and towns that relate toambulance service anywhere within its territory.
(d) Any other contiguous town or home rule charter orstatutory city may join the district with the agreement of thecities and towns that comprise the district at the time of itsapplication to join. Action to join the district may be taken bythe city council or town board of the city or town.
Subd. 2. [BOARD.] The district shall be governed bya board composed of one member appointed by the city council ortown board of each city and town in the district. A districtboard member may, but is not required to, be a member of a citycouncil or town board. Except as provided in this section,members shall serve two-year terms ending the first Monday inJanuary and until their successors are appointed and qualified.Of the members first appointed, as far as possible, the terms ofone-half shall expire on the first Monday in January in the firstyear following appointment and one-half the first Monday inJanuary in the second year. The terms of those initiallyappointed must be determined by lot. If an additional member isadded because an additional city or town joins the district, themember's term must be fixed so that, as far as possible, theterms of one-half of all the members expire on the samedate.
Subd. 3. [TAX.] The district may impose a propertytax on real and personal property in the district in an amountsufficient to discharge its operating expenses and debt payablein each year, but not to exceed .0528 percent of the district'staxable market value. The St. Louis county auditor shall collectthe tax and distribute it to the Virginia area ambulancedistrict.
Subd. 4. [PUBLIC INDEBTEDNESS.] The district mayincur debt in the manner provided for a municipality by MinnesotaStatutes, chapter 475, when necessary to accomplish a dutycharged to it.
Subd. 5. [WITHDRAWAL.] Upon two years' notice, acity or town may withdraw from the district. Its territory shallremain subject to taxation for debt incurred prior to itswithdrawal pursuant to Minnesota Statutes, chapter 475.
Subd. 6. [EFFECTIVE DATE.] This section is effectivein the cities of Virginia, Mountain Iron, and Gilbert, and thetowns of Pike, Clinton, McDavitt, Colvin, Sandy, Cherry,Ellsburg, Wouri, Lavell, and Embarrass the day after compliancewith Minnesota Statutes, section 645.021, subdivision 3, by thegoverning body of each. This section is effective forunorganized townships described in subdivision 1, paragraph (b),clauses (1) to (6), the day after compliance with MinnesotaStatutes, section 645.021, subdivision 3, by the St. Louis countyboard.
Sec. 47. [REPEALER.]
Laws 1971, chapter 869, section 6, subdivision 3, isrepealed.
Sec. 48. [EFFECTIVE DATE.]
Pursuant to Minnesota Statutes, section 645.023, subdivision1, sections 19 to 22 are effective without local approval on theday following final enactment and section 19 applies to taxeslevied in 1996, payable in 1997, and thereafter.
Sections 23 to 42 and 47 are effective without localapproval on the day after their final enactment.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9866Section 1. Minnesota Statutes 1994, section 290.0922,subdivision 3, is amended to read:
Subd. 3. [DEFINITION DEFINITIONS.] (a)"Minnesota sales or receipts," means the total salesapportioned to Minnesota pursuant to section 290.191, subdivision5, the total receipts attributed to Minnesota pursuant tosection 290.191, subdivisions 6 to 8, and/or the total sales orreceipts apportioned or attributed to Minnesota pursuant to anyother apportionment formula applicable to the taxpayer.
(b) "Minnesota property," and meanstotal Minnesota tangible property as provided in section 290.191,subdivisions 9 to 11, and any other tangible property located inMinnesota. Intangible property shall not be included in Minnesotaproperty for purposes of this section. Taxpayers who do notutilize tangible property to apportion income shall neverthelessinclude Minnesota property for purposes of this section. On areturn for a short taxable year, the amount of Minnesota propertyowned, as determined under section 290.191, shall be included inMinnesota property based on a fraction in which the numerator isthe number of days in the short taxable year and the denominatoris 365.
(c) "Minnesota payrolls" have the meanings given insection 290.092, subdivision 4 means total Minnesotapayrolls as provided in section 290.191, subdivision 12. Taxpayers who do not utilize payrolls to apportion income shallnevertheless include Minnesota payrolls for purposes of thissection.
Sec. 2. Minnesota Statutes 1994, section 290.095, subdivision3, is amended to read:
Subd. 3. [CARRYOVER.] (a) A net operating loss incurred in ataxable year: (i) beginning after December 31, 1986, shall be anet operating loss carryover to each of the 15 taxable yearsfollowing the taxable year of such loss; (ii) beginning beforeJanuary 1, 1987, shall be a net operating loss carryover to eachof the five taxable years following the taxable year of such losssubject to the provisions of Minnesota Statutes 1986, section290.095; and (iii) beginning before January 1, 1987, shall be anet operating loss carryback to each of the three taxable yearspreceding the loss year subject to the provisions of MinnesotaStatutes 1986, section 290.095.
(b) The entire amount of the net operating loss for any taxableyear shall be carried to the earliest of the taxable years towhich such loss may be carried. The portion of such loss whichshall be carried to each of the other taxable years shall be theexcess, if any, of the amount of such loss over the sum of thetaxable net income, adjusted by the modifications specified insubdivision 4, for each of the taxable years to which such lossmay be carried.
(c) Where a corporation does business both within and withoutMinnesota, and apportions its income under the provisions ofsection 290.191, the net operating loss deduction incurred in anytaxable year shall be allowed to the extent of the apportionmentratio of the loss year.
(d) No additional net operating loss deduction is allowed ina subsequent taxable year for the portion of a net operating lossdeduction incurred in any taxable year used to offset Minnesotaincome in a year in which the taxpayer is subject to thealternative minimum tax in section 290.092.
(e) The provisions of sections 381, 382, and 384 of theInternal Revenue Code apply to carryovers in certain corporateacquisitions and special limitations on net operating losscarryovers.
Sec. 3. Minnesota Statutes 1994, section 297A.15, subdivision5, is amended to read:
Subd. 5. [REFUND; APPROPRIATION.] Notwithstanding theprovisions of sections 297A.02, subdivision 5, and 297A.25,subdivisions subdivision 42 and 50, the taxon sales of capital equipment, and replacement capitalequipment, and construction materials and supplies undersection 297A.25, subdivision 50, shall be imposed andcollected as if the rates rate undersections section 297A.02, subdivision 1, and297A.021, applied. Upon application by the purchaser, onforms prescribed by the commissioner, a refund equal to thereduction in the tax due as a result of the application of theexemption under section 297A.25, subdivision 42 or 50, andthe rates rate under sections section297A.02, subdivision 5, and 297A.021 shall be paid to thepurchaser. In the case of building materials qualifying undersection 297A.25, subdivision 50, where the tax was paid by acontractor, application must be made by the owner for the salestax paid by all the contractors, subcontractors, and builders forthe project. The application must include sufficientinformation to permit the commissioner to verify the sales taxpaid for the project. The application shall include
information necessary for the commissioner initially to verifythat the purchases qualified as capital equipment under section297A.25, subdivision 42, or replacement capital equipmentunder section 297A.01, subdivision 20, or capital equipment orconstruction materials and supplies under section 297A.25,subdivision 50. No more than two applications for refundsmay be filed under this subdivision in a calendar year. Noowner may apply for a refund based on the exemption under section297A.25, subdivision 50, before July 1, 1993. Unlessotherwise specifically provided by this subdivision, theprovisions of section 289A.40 apply to the refunds payable underthis subdivision. There is annually appropriated to thecommissioner of revenue the amount required to make therefunds.
The amount to be refunded shall bear interest at the rate insection 270.76 from the date the refund claim is filed with thecommissioner.
Sec. 4. Minnesota Statutes 1994, section 297A.15, subdivision6, is amended to read:
Subd. 6. [REFUND; APPROPRIATION.] The tax on the grossreceipts from the sale of items exempt under section 297A.25,subdivision 43, must be imposed and collected as if the sale weretaxable and the rates rate under sectionssection 297A.02, subdivision 1, and 297A.021applied.
Upon application by the owner of the homestead property onforms prescribed by the commissioner, a refund equal to the taxpaid on the gross receipts of the building materials andequipment must be paid to the homeowner. In the case of buildingmaterials in which the tax was paid by a contractor, applicationmust be made by the homeowner for the sales tax paid by thecontractor. The application must include sufficient informationto permit the commissioner to verify the sales tax paid for theproject. The contractor must furnish to the homeowner astatement of the cost of building materials and the sales taxespaid on the materials. The amount required to make the refundsis annually appropriated to the commissioner. Interest must bepaid on the refund at the rate in section 270.76 from 60 daysafter the date the refund claim is filed with thecommissioner.
Sec. 5. Minnesota Statutes 1994, section 297A.21, subdivision4, is amended to read:
Subd. 4. [REQUIRED REGISTRATION BY OUT-OF-STATE RETAILER NOTMAINTAINING PLACE OF BUSINESS IN MINNESOTA.] (a) A retailermaking retail sales from outside this state to a destinationwithin this state and not maintaining a place of business in thisstate shall file an application for a permit pursuant to section297A.04 and shall collect and remit the use tax as provided insection 297A.16 if the retailer engages in the regular orsystematic soliciting of sales from potential customers in thisstate by:
(1) the distribution, by mail or otherwise, without regard tothe state from which such distribution originated or in which thematerials were prepared, of catalogs, periodicals, advertisingflyers, or other written solicitations of business to customersin this state;
(2) display of advertisements on billboards or other outdooradvertising in this state;
(3) advertisements in newspapers published in this state;
(4) advertisements in trade journals or other periodicals thecirculation of which is primarily within this state;
(5) advertisements in a Minnesota edition of a national orregional publication or a limited regional edition in which thisstate is included of a broader regional or national publicationwhich are not placed in other geographically defined editions ofthe same issue of the same publication;
(6) advertisements in regional or national publications in anedition which is not by its contents geographically targeted toMinnesota but which is sold over the counter in Minnesota or bysubscription to Minnesota residents;
(7) advertisements broadcast on a radio or television stationlocated in Minnesota; or
(8) any other solicitation by telegraphy, telephone, computerdatabase, cable, optic, microwave, or other communicationsystem.
(b) The location within or without this state of vendorsindependent of the retailer which provide products or services tothe retailer in connection with its solicitation of customerswithin this state, including such products and services ascreation of copy, printing, distribution, and recording, is notto be taken into account in the determination of whether theretailer is required to collect use tax. Paragraph (a) shall beconstrued without regard to the state from which distribution ofthe materials originated or in which they were prepared.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9868(c) A retailer not maintaining a place of business in thisstate shall be presumed, subject to rebuttal, to be engaged inregular solicitation within this state if it engages in any ofthe activities in paragraph (a) and (1) makes 100 or more retailsales from outside this state to destinations within this stateduring a period of 12 consecutive months, or (2) makes ten ormore retail sales totaling more than $100,000 from outside thisstate to destinations within this state during a period of 12consecutive months.
(d) A retailer not maintaining a place of business in thisstate shall not be required to collect use tax imposed by anylocal governmental unit or subdivision of this state and thissection does not subject such a retailer to any regulation of anylocal unit of government or subdivision of this state. Thisparagraph does not apply to the tax imposed under section297A.021.
Sec. 6. Minnesota Statutes 1994, section 297A.211, subdivision3, is amended to read:
Subd. 3. A person who pays the tax to the seller under section297A.03 or pays the tax to the motor vehicle registrar asrequired by section 297B.02 and who meets the requirements ofthis section at the time of the sale, except that the person hasnot registered as a retailer under this section at the time ofthe sale, may register as a retailer, make a return, and file fora refund of the difference between the tax calculated undersection 297A.02, 297A.021, 297A.14, or 297B.02 and the taxcalculated under subdivision 2.
Sec. 7. Minnesota Statutes 1994, section 297A.24, subdivision1, is amended to read:
Subdivision 1. [STATE TAX.] If any article of tangiblepersonal property or any item enumerated in section 297A.14 hasalready been subjected to a tax by any other state in respect ofits sale, storage, use or other consumption in an amount lessthan the tax imposed by sections 297A.01 to 297A.44, then as tothe person who paid the tax in such other state, the provisionsof section 297A.14 shall apply only at a rate measured by thedifference between the sum of the rates rateimposed under sections section 297A.02 and297A.021 and the rate by which the previous tax was computed. If such tax imposed in such other state was equal to or greaterthan the tax imposed in this state, then no tax shall be due fromsuch person under section 297A.14.
Sec. 8. Minnesota Statutes 1994, section 297A.2572, is amendedto read:
297A.2572 [AGRICULTURE PROCESSING FACILITY MATERIALS;EXEMPTION.]
Purchases of construction materials and supplies are exemptfrom the sales and use taxes imposed under this chapter,regardless of whether purchased by the owner or a contractor,subcontractor, or builder, if the materials and supplies are usedor consumed in constructing an agriculture processing facility asdefined in section 469.1811 in which the total capital investmentin the processing facility is expected to exceed $100,000,000. The tax shall be imposed and collected as if the ratesrate under sections section 297A.02,subdivision 1, and 297A.021, applied, and then refunded inthe manner provided in section 297A.15, subdivision 5.
Sec. 9. Minnesota Statutes 1994, section 297A.2573, is amendedto read:
297A.2573 [MINERAL PRODUCTION FACILITIES; EXEMPTION.]
Materials, equipment, and supplies used or consumed inconstructing, or incorporated into the construction of exemptedfacilities as defined in this section are exempt from the taxesimposed under this chapter and from any sales and use tax imposedby a local unit of government, notwithstanding any ordinance orcity charter provision.
As used in this section, "exempted facilities" means:
(1) a value added iron products plant, which may be either anew plant or a facility incorporated into an existing plant thatproduces iron upgraded to a minimum of 75 percent iron content orany iron alloy with a total minimum metallic content of 90percent;
(2) a facility used for the manufacture of fluxed taconitepellets as defined in section 298.24;
(3) a new capital project that has a total cost of over$40,000,000 that is directly related to production, cost, orquality at an existing taconite facility that does not qualifyunder clause (1) or (2); and
(4) a new mine or minerals processing plant for any mineralsubject to the net proceeds tax imposed under section 298.015.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9869 The tax shall be imposed and collected as if the ratesrate under sections section 297A.02,subdivision 1, and 297A.021, applied, and then refunded inthe manner provided in section 297A.15, subdivision 5.
Sec. 10. Minnesota Statutes 1994, section 297A.44, subdivision1, is amended to read:
Subdivision 1. (a) Except as provided in paragraphs (b), (c),and (d), all revenues, including interest and penalties, derivedfrom the excise and use taxes imposed by sections 297A.01 to297A.44 shall be deposited by the commissioner in the statetreasury and credited to the general fund.
(b) All excise and use taxes derived from sales and use ofproperty and services purchased for the construction andoperation of an agricultural resource project, from and after thedate on which a conditional commitment for a loan guaranty forthe project is made pursuant to section 41A.04, subdivision 3,shall be deposited in the Minnesota agricultural and economicaccount in the special revenue fund. The commissioner of financeshall certify to the commissioner the date on which the projectreceived the conditional commitment. The amount deposited in theloan guaranty account shall be reduced by any refunds and by thecosts incurred by the department of revenue to administer andenforce the assessment and collection of the taxes.
(c) All revenues, including interest and penalties, derivedfrom the excise and use taxes imposed on sales and purchasesincluded in section 297A.01, subdivision 3, paragraphs (d) and(l), clauses (1) and (2), must be deposited by the commissionerin the state treasury, and credited as follows:
(1) first to the general obligation special tax bond debtservice account in each fiscal year the amount required bysection 16A.661, subdivision 3, paragraph (b); and
(2) after the requirements of clause (1) have been met, thebalance must be credited to the general fund.
(d) The revenues, including interest and penalties, derivedfrom the taxes imposed on solid waste collection services asdescribed in section 297A.45, except for the tax imposed undersection 297A.021, shall be deposited by the commissioner inthe state treasury and credited to the general fund to be usedfor funding solid waste reduction and recycling programs.
Sec. 11. Minnesota Statutes 1995 Supplement, section 297A.45,subdivision 2, is amended to read:
Subd. 2. [APPLICATION.] The taxes tax imposed bysections section 297A.02 and 297A.021 applyapplies to all public and private mixed municipal solidwaste management services.
Notwithstanding section 297A.25, subdivision 11, a politicalsubdivision that purchases waste management services on behalf ofits citizens shall pay the taxes.
If a political subdivision provides a waste management serviceto its residents at a cost in excess of the total direct chargeto the residents for the service, the political subdivision shallpay the taxes based on its cost of providing the service inexcess of the direct charges.
A person who transports mixed municipal solid waste generatedby that person or by another person without compensation shallpay the taxes at the waste facility based on the disposal chargeor tipping fee.
Sec. 12. Minnesota Statutes 1995 Supplement, section 297A.45,subdivision 3, is amended to read:
Subd. 3. [EXEMPTIONS.] (a) The cost of a service or theportion of a service to collect and manage recyclable materialsseparated from mixed municipal solid waste by the waste generatoris exempt from the taxes tax imposed insections section 297A.02 and 297A.021.
(b) The amount of a surcharge or fee imposed under section115A.919, 115A.921, 115A.923, or 473.843 is exempt from thetaxes tax imposed in sections section297A.02 and 297A.021.
(c) Waste from a recycling facility that separates or processesrecyclable materials and that reduces the volume of the waste byat least 85 percent is exempt from the taxes taximposed in sections section 297A.02 and297A.021. To qualify for the exemption under this paragraph,the waste exempted must be managed separately from othersolid waste.
(d) The following costs are exempt from the taxestax imposed in sections section 297A.02and 297A.021:
(1) costs of providing educational materials and otherinformation to residents;
(2) costs of managing solid waste other than mixed municipalsolid waste, including household hazardous waste; and
(3) costs of court litigation and associated damages.
(e) The cost of a waste management service is exempt from thetaxes tax imposed in sections section297A.02 and 297A.021 to the extent that the cost waspreviously subject to the tax.
Sec. 13. Minnesota Statutes 1995 Supplement, section 297A.45,subdivision 4, is amended to read:
Subd. 4. [CITY SALES TAX MAY NOT BE IMPOSED.] Notwithstandingany other law or charter provision to the contrary, a home rulecharter or statutory city that imposes a general sales tax maynot impose the sales tax on solid waste management services thatare subject to the tax under this section. This subdivisiondoes not apply to a tax imposed under section 297A.021.
Sec. 14. Minnesota Statutes 1994, section 297A.46, is amendedto read:
297A.46 [LOCAL GOVERNMENTS EXEMPT FROM LOCAL SALES TAXES.]
Notwithstanding any other law, ordinance, or charter provision,no political subdivision of the state shall be required to payany general sales tax imposed by a political subdivision of thestate. This provision does not apply to the local option taxunder section 297A.021.
Sec. 15. Minnesota Statutes 1994, section 298.01, subdivision4e, is amended to read:
Subd. 4e. [ALTERNATIVE MINIMUM TAX CREDIT.] (a) A credit isallowed against the tax imposed by subdivision 4 for theincreases in occupation taxes paid in 1988, 1989, and 1990attributable to the alternative minimum tax imposed under section290.092 and Minnesota Statutes 1986, section 298.40. The amountof the credit allowed under this paragraph is determined undersection 290.06, subdivision 21.
(b) A credit is allowed against qualified regular taxfor qualified alternative minimum tax previously paid. Theamount of the credit allowed under this paragraph is determinedunder section 290.0921, subdivision 8. For purposes ofcalculating this credit, the following terms have the meaningsgiven:
(1) "Qualified alternative minimum tax" means the amountdetermined under subdivision 4d and section 290.0921, subdivision1.
(2) "Qualified regular tax" means the tax imposed undersubdivision 4 and section 290.06, subdivision 1.
Sec. 16. [REPEALER.]
Subdivision 1. [GROSS EARNINGS TAXES ON TRUSTCOMPANIES.] Minnesota Statutes 1994, sections 295.37; 295.39;295.40; 295.41; 295.42; and 295.43, are repealed.
Subd. 2. [LOCAL OPTION SALES TAX REFERENCES.]Minnesota Statutes 1994, sections 297A.14, subdivision 3; and297A.24, subdivision 2, are repealed.
Subd. 3. [CORPORATE ALTERNATIVE MINIMUM TAX; BEFORE1990.] Minnesota Statutes 1994, sections 290.06, subdivision21; and 290.092, are repealed.
Sec. 17. [EFFECTIVE DATE.]
The amendments in section 3 striking references to MinnesotaStatutes, section 297A.021, and sections 4 to 14 and 16,subdivision 2, are effective July 1, 1996.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9871BUDGET RESERVE
Section 1. Minnesota Statutes 1995 Supplement, section16A.152, subdivision 2, is amended to read:
Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] If on the basis of aforecast of general fund revenues and expenditures thecommissioner of finance determines that there will be a positiveunrestricted budgetary general fund balance at the close of thebiennium, the commissioner of finance must allocate money to thebudget reserve until the total amount in the account is$220,000,000 $270,000,000. An amount equal toany additional biennial unrestricted budgetary general fundbalances balance made available after November 1of every as the result of a forecast in anodd-numbered calendar year are after November 1 isappropriated in January of the following year to reduce theproperty tax levy recognition percent under section 121.904,subdivision 4a, to zero before additional money beyond$220,000,000 $270,000,000 is allocated to thebudget reserve account. The amount appropriated is the fullamount forecast to be available at the end of the biennium and isnot limited to the amount forecast to be available at the end ofthe current fiscal year.
The amounts necessary to meet the requirements of this sectionare appropriated from the general fund.
Sec. 2. Minnesota Statutes 1995 Supplement, section 121.904,subdivision 4a, is amended to read:
Subd. 4a. [LEVY RECOGNITION.] (a) "School district taxsettlement revenue" means the current, delinquent, andmanufactured home property tax receipts collected by the countyand distributed to the school district, including distributionsmade pursuant to section 279.37, subdivision 7, and excluding theamount levied pursuant to section 124.914, subdivision 1.
(b) In June of each year, the school district shall recognizeas revenue, in the fund for which the levy was made, the lesserof:
(1) the May, June, and July school district tax settlementrevenue received in that calendar year; or
(2) the sum of the state aids and credits enumerated in section124.155, subdivision 2, which are for the fiscal year payable inthat fiscal year plus an amount equal to the levy recognized asrevenue in June of the prior year plus 48 31percent for fiscal year 1996 and thereafter of the amount of thelevy certified in the prior calendar year according to section124A.03, subdivision 2, plus or minus auditor's adjustments, notincluding levy portions that are assumed by the state; or
(3) 48 18.1 percent for fiscal year 1996, thepercent determined under section 3 for fiscal year 1997 andthat same percent thereafter of the amount of the levycertified in the prior calendar year, plus or minus auditor'sadjustments, not including levy portions that are assumed by thestate, which remains after subtracting, by fund, the amountslevied for the following purposes:
(i) reducing or eliminating projected deficits in the reservedfund balance accounts for unemployment insurance and buspurchases;
(ii) statutory operating debt pursuant to section 124.914,subdivision 1;
(iii) retirement and severance pay pursuant to sections122.531, subdivision 9, 124.2725, subdivision 15,124.4945, 124.912, subdivision 1, and 124.916, subdivision 3, andLaws 1975, chapter 261, section 4;
(iv) amounts levied for bonds issued and interest thereon,amounts levied for debt service loans and capital loans, amountslevied for down payments under section 124.82, subdivision 3,and amounts levied pursuant to section 136C.411; and
(v) amounts levied under section 124.755.
Notwithstanding the foregoing, the levy recognitionpercentage for the referendum levy certified according to section124A.03, subdivision 2, is 31 percent.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9872(c) In July of each year, the school district shall recognizeas revenue that portion of the school district tax settlementrevenue received in that calendar year and not recognized asrevenue for the previous fiscal year pursuant to clause (b).
(d) All other school district tax settlement revenue shall berecognized as revenue in the fiscal year of the settlement.Portions of the school district levy assumed by the state,including prior year adjustments and the amount to fund theschool portion of the reimbursement made pursuant to section273.425, shall be recognized as revenue in the fiscal yearbeginning in the calendar year for which the levy is payable.
Sec. 3. [1997 PROPERTY TAX RECOGNITION SHIFT ADJUSTMENT.]
Subdivision 1. [ADJUSTMENT.] The commissioner offinance shall adjust the property tax recognition shiftpercentage for fiscal year 1997 under Minnesota Statutes, section121.904, subdivision 4a, paragraph (b), clause (3), according tothis section.
Subd. 2. [APPROPRIATION.] $180,000,000 isappropriated from the general fund to the commissioner ofchildren, families, and learning for fiscal year 1997 to reducethe property tax levy recognition percentage under MinnesotaStatutes, section 121.904, subdivision 4a, paragraph (b), clause(3). This appropriation replaces the appropriation for fiscalyear 1997 made under Minnesota Statutes, section 16A.152,subdivision 2, as a result of the November 1995 forecast.
Subd. 3. [NOVEMBER 1996 DEFICIT CONTINGENCY.]Notwithstanding Minnesota Statutes, section 16A.152,subdivision 4, if the commissioner of finance determines on thebasis of a forecast of general fund revenues and expendituresissued before January 1, 1997, that the unrestricted budgetarygeneral fund balance at the close of the 1996-1997 biennium willshow a deficit, the commissioner of finance shall first act toreduce the deficit by increasing the property tax recognitionpercentage under Minnesota Statutes, section 121.904, subdivision4a, paragraph (b), clause (3), but not above 18.1 percent. Theappropriation in subdivision 2 is reduced accordingly. Thecommissioner of finance shall make up any additional deficit byreducing the amount in the budget reserve in accordance withMinnesota Statutes, section 16A.152, subdivision 4.
Subd. 4. [NOVEMBER 1996 SURPLUS CONTINGENCY.]Notwithstanding Minnesota Statutes, section 16A.152,subdivision 4, if the commissioner of finance determines on thebasis of a forecast of general fund revenues and expendituresissued before January 1, 1997, that the unrestricted budgetarygeneral fund balance at the close of the 1996-1997 biennium willshow a surplus, the amount of the surplus is appropriated fromthe general fund to an education aid reserve account, except thatthe amount appropriated must not exceed the forecast value of thecost of reducing the property tax levy recognition percentageunder Minnesota Statutes, section 121.904, subdivision 4a,paragraph (b), clause (3), to zero in fiscal year 1997. Thebalance in the account does not cancel but may not be expendeduntil appropriated by law for education aid for fiscal years 1998and 1999.
Subd. 5. [PERCENTAGE CERTIFICATION.] Thecommissioner of finance shall determine the amount available toreduce the property tax levy recognition percentage after givingeffect to subdivisions 2 and 3, and shall certify it to thecommissioner of children, families, and learning by January 5,1997. The commissioner of children, families, and learning shallcalculate the percentage using the method specified in section121.904, subdivision 4c, and shall notify school districts of theresulting change in the levy recognition percentage by January15, 1997.
Sec. 4. [BUDGET RESERVE 1996.]
The amount necessary to bring the budget reserve to$270,000,000 on July 1, 1996, is appropriated from the generalfund to the commissioner of finance for transfer to the budgetreserve on that date.
Sec. 5. [REPEALER.]
1996 H. F. No. 2156, article 14, section 4, if enacted, isrepealed.
Sec. 6. [EFFECTIVE DATE.]
This article is effective the day following finalenactment.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9873Section 1. Minnesota Statutes 1995 Supplement, section273.1398, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) In this section, the termsdefined in this subdivision have the meanings given them.
(b) "Unique taxing jurisdiction" means the geographic areasubject to the same set of local tax rates.
(c) "Net tax capacity" means the product of (i) the appropriatenet class rates for the year in which the aid is payable, exceptthat for aid payable in 1996 the class rate applicable to allclass 4a shall be 3.4 percent; and (ii) estimated market valuesfor the assessment two years prior to that in which aid ispayable. "Total net tax capacity" means the net tax capacitiesfor all property within the unique taxing jurisdiction. Thetotal net tax capacity used shall be reduced by the sum of (1)the unique taxing jurisdiction's net tax capacity of commercialindustrial property as defined in section 473F.02, subdivision 3,or 276A.02, subdivision 3, multiplied by the ratiodetermined pursuant to section 473F.08, subdivision 6, or276A.06, subdivision 7, for the municipality, as defined insection 473F.02, subdivision 8, or 276A.02, subdivision 8,in which the unique taxing jurisdiction is located, (2) the nettax capacity of the captured value of tax increment financingdistricts as defined in section 469.177, subdivision 2, and (3)the net tax capacity of transmission lines deducted from a localgovernment's total net tax capacity under section 273.425. Forpurposes of determining the net tax capacity of property referredto in clauses (1), (2), and (3), the net tax capacity shall bemultiplied by the ratio of the highest class rate for class 3aproperty for taxes payable in the year in which the aid ispayable to the highest class rate for class 3a property in theprior year. Net tax capacity cannot be less than zero.
(d) "Previous net tax capacity" means the product of theappropriate net class rates for the year previous to the year inwhich the aid is payable, and estimated market values for theassessment two years prior to that in which aid is payable."Total previous net tax capacity" means the previous net taxcapacities for all property within the unique taxingjurisdiction. The total previous net tax capacity shall bereduced by the sum of (1) the unique taxing jurisdiction'sprevious net tax capacity of commercial-industrial property asdefined in section 473F.02, subdivision 3, or 276A.02,subdivision 3, multiplied by the ratio determined pursuant tosection 473F.08, subdivision 6, or 276A.06, subdivision 7,for the municipality, as defined in section 473F.02, subdivision8, or 276A.06, subdivision 7, in which the unique taxingjurisdiction is located, (2) the previous net tax capacity of thecaptured value of tax increment financing districts as defined insection 469.177, subdivision 2, and (3) the previous net taxcapacity of transmission lines deducted from a local government'stotal net tax capacity under section 273.425. Previous net taxcapacity cannot be less than zero.
(e) "Equalized market values" are market values that have beenequalized by dividing the assessor's estimated market value forthe second year prior to that in which the aid is payable by theassessment sales ratios determined by class in the assessmentsales ratio study conducted by the department of revenue pursuantto section 124.2131 in the second year prior to that in which theaid is payable. The equalized market values shall equal theunequalized market values divided by the assessment salesratio.
(f) "Equalized school levies" means the amounts levied for:
(1) general education under section 124A.23, subdivision 2;
(2) supplemental revenue under section 124A.22, subdivision8a;
(3) capital expenditure facilities revenue under section124.243, subdivision 3;
(4) capital expenditure equipment revenue under section124.244, subdivision 2;
(5) basic transportation under section 124.226, subdivision 1;and
(6) referendum revenue under section 124A.03.
(g) "Current local tax rate" means the quotient derived bydividing the taxes levied within a unique taxing jurisdiction fortaxes payable in the year prior to that for which aids are beingcalculated by the total previous net tax capacity of the uniquetaxing jurisdiction.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9874(h) For purposes of calculating and allocating homestead andagricultural credit aid authorized pursuant to subdivision 2 andthe disparity reduction aid authorized in subdivision 3, "grosstaxes levied on all properties," "gross taxes," or "taxes levied"means the total net tax capacity based taxes levied on allproperties except that levied on the captured value of taxincrement districts as defined in section 469.177, subdivision 2,and that levied on the portion of commercial industrialproperties' assessed value or gross tax capacity, as defined insection 473F.02, subdivision 3, subject to the areawide tax asprovided in section 473F.08, subdivision 6, in a unique taxingjurisdiction. "Gross taxes" are before any reduction fordisparity reduction aid but "taxes levied" are after anyreduction for disparity reduction aid. Gross taxes levied ortaxes levied cannot be less than zero.
"Taxes levied" excludes equalized school levies.
(i) "Human services aids" means:
(1) aid to families with dependent children under sections256.82, subdivision 1, and 256.935, subdivision 1;
(2) medical assistance under sections 256B.041, subdivision 5,and 256B.19, subdivision 1;
(3) general assistance medical care under section 256D.03,subdivision 6;
(4) general assistance under section 256D.03, subdivision 2;
(5) work readiness under section 256D.03, subdivision 2;
(6) emergency assistance under section 256.871, subdivision6;
(7) Minnesota supplemental aid under section 256D.36,subdivision 1;
(8) preadmission screening and alternative care grants;
(9) work readiness services under section 256D.051;
(10) case management services under section 256.736,subdivision 13;
(11) general assistance claims processing, medicaltransportation and related costs; and
(12) medical assistance, medical transportation and relatedcosts.
(j) "Household adjustment factor" means the number ofhouseholds for the second most recent year preceding that inwhich the aids are payable divided by the number of householdsfor the third most recent year. The household adjustment factorcannot be less than one.
(k) "Growth adjustment factor" means the household adjustmentfactor in the case of counties. In the case of cities, towns,school districts, and special taxing districts, the growthadjustment factor equals one. The growth adjustment factorcannot be less than one.
(l) For aid payable in 1992 and subsequent years, "homesteadand agricultural credit base" means the previous year's certifiedhomestead and agricultural credit aid determined undersubdivision 2 less any permanent aid reduction in the previousyear to homestead and agricultural credit aid under section477A.0132, plus, for aid payable in 1992, fiscal disparityhomestead and agricultural credit aid under subdivision 2b.
(m) "Net tax capacity adjustment" means (1) the total previousnet tax capacity minus the total net tax capacity, multiplied by(2) the unique taxing jurisdiction's current local tax rate. Thenet tax capacity adjustment cannot be less than zero.
(n) "Fiscal disparity adjustment" means the difference between(1) a taxing jurisdiction's fiscal disparity distribution levyunder section 473F.08, subdivision 3, clause (a), or 276A.06,subdivision 3, clause (a), for taxes payable in the yearprior to that for which aids are being calculated, and (2) thesame distribution levy multiplied by the ratio of the highestclass rate for class 3 property for taxes payable in the yearprior to that for which aids are being calculated to the highestclass rate for class 3 property for taxes payable in the secondprior year to that for which aids are being calculated. In thecase of school districts, the fiscal disparity distribution levyshall exclude that part of the levy attributable to equalizedschool levies.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9875Sec. 2. Minnesota Statutes 1995 Supplement, section 275.065,subdivision 3, is amended to read:
Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The countyauditor shall prepare and the county treasurer shall deliverafter November 10 and on or before November 24 each year, byfirst class mail to each taxpayer at the address listed on thecounty's current year's assessment roll, a notice of proposedproperty taxes and, in the case of a town, final propertytaxes.
(b) The commissioner of revenue shall prescribe the form of thenotice.
(c) The notice must inform taxpayers that it contains theamount of property taxes each taxing authority other than a townproposes to collect for taxes payable the following year and, fora town, the amount of its final levy. It must clearly state thateach taxing authority, including regional library districtsestablished under section 134.201, and including the metropolitantaxing districts as defined in paragraph (i), but excluding allother special taxing districts and towns, will hold a publicmeeting to receive public testimony on the proposed budget andproposed or final property tax levy, or, in case of a schooldistrict, on the current budget and proposed property tax levy. It must clearly state the time and place of each taxingauthority's meeting and an address where comments will bereceived by mail.
(d) The notice must state for each parcel:
(1) the market value of the property as determined undersection 273.11, and used for computing property taxes payable inthe following year and for taxes payable in the current year;and, in the case of residential property, whether the property isclassified as homestead or nonhomestead. The notice must clearlyinform taxpayers of the years to which the market values applyand that the values are final values;
(2) by county, city or town, school district excess referendalevy, remaining school district levy, regional library district,if in existence, the total of the metropolitan special taxingdistricts as defined in paragraph (i) and the sum of theremaining special taxing districts, and as a total of the taxingauthorities, including all special taxing districts, the proposedor, for a town, final net tax on the property for taxes payablethe following year and the actual tax for taxes payable thecurrent year. For the purposes of this subdivision, "schooldistrict excess referenda levy" means school district taxes foroperating purposes approved at referendums, including those taxesbased on net tax capacity as well as those based on market value. "School district excess referenda levy" does not include schooldistrict taxes for capital expenditures approved at referendumsor school district taxes to pay for the debt service on bondsapproved at referenda. In the case of the city of Minneapolis,the levy for the Minneapolis library board and the levy forMinneapolis park and recreation shall be listed separately fromthe remaining amount of the city's levy. In the case of a parcelwhere tax increment or the fiscal disparities areawide taxunder chapter 276A or 473F applies, the proposed tax levyon the captured value or the proposed tax levy on the taxcapacity subject to the areawide tax must each be statedseparately and not included in the sum of the special taxingdistricts; and
(3) the increase or decrease in the amounts in clause (2) fromtaxes payable in the current year to proposed or, for a town,final taxes payable the following year, expressed as a dollaramount and as a percentage.
(e) The notice must clearly state that the proposed or finaltaxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposedtaxes are certified, including bond referenda, school districtlevy referenda, and levy limit increase referenda;
(3) amounts necessary to pay cleanup or other costs due to anatural disaster occurring after the date the proposed taxes arecertified;
(4) amounts necessary to pay tort judgments against the taxingauthority that become final after the date the proposed taxes arecertified; and
(5) the contamination tax imposed on properties which receivedmarket value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the countyauditor to prepare or the county treasurer to deliver the noticeas required in this section does not invalidate the proposed orfinal tax levy or the taxes payable pursuant to the tax levy.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9876(g) If the notice the taxpayer receives under this sectionlists the property as nonhomestead and the homeowner providessatisfactory documentation to the county assessor that theproperty is owned and has been used as the owner's homesteadprior to June 1 of that year, the assessor shall reclassify theproperty to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as aresidence for lease or rental periods of 30 days or more, thetaxpayer must either:
(1) mail or deliver a copy of the notice of proposed propertytaxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on thepremises of the property.
The notice must be mailed or posted by the taxpayer by November27 or within three days of receipt of the notice, whichever islater. A taxpayer may notify the county treasurer of the addressof the taxpayer, agent, caretaker, or manager of the premises towhich the notice must be mailed in order to fulfill therequirements of this paragraph.
(i) For purposes of this subdivision, subdivisions 5a and 6,"metropolitan special taxing districts" means the followingtaxing districts in the seven-county metropolitan area that levya property tax for any of the specified purposes listed below:
(1) metropolitan council under section 473.132, 473.167,473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
(2) metropolitan airports commission under section 473.667,473.671, or 473.672; and
(3) metropolitan mosquito control commission under section473.711.
For purposes of this section, any levies made by the regionalrail authorities in the county of Anoka, Carver, Dakota,Hennepin, Ramsey, Scott, or Washington under chapter 398A shallbe included with the appropriate county's levy and shall bediscussed at that county's public hearing.
Sec. 3. [276A.01] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] In sections 3 to 11,the terms defined in this section have the meanings given themunless the context indicates otherwise.
Subd. 2. [AREA.] "Area" means the territory includedwithin all tax relief areas defined in section 273.134.
Subd. 3. [COMMERCIAL-INDUSTRIAL PROPERTY.]"Commercial-industrial property" means the followingcategories of property, as defined in section 273.13, excludingthat portion of the property (1) that may, by law, constitute thetax base for a tax increment pledged pursuant to section 469.042or 469.162, certification of which was requested prior to May 1,1996, to the extent and while the tax increment is so pledged; or(2) that is exempt from taxation under section 272.02:
(1) that portion of class 5 property consisting of unminediron ore and low-grade iron-bearing formations as defined insection 273.14, tools, implements, and machinery, except theportion of high voltage transmission lines, the value of which isdeducted from net tax capacity under section 273.425; and
(2) that portion of class 3 and class 5 property which iseither used or zoned for use for any commercial or industrialpurpose, except for such property which is, or, in the case ofproperty under construction, will when completed be usedexclusively for residential occupancy and the provision ofservices to residential occupants thereof. Property must beconsidered as used exclusively for residential occupancy only ifeach of not less than 80 percent of its occupied residentialunits is, or, in the case of property under construction, willwhen completed be occupied under an oral or written agreement foroccupancy over a continuous period of not less than 30days.
If the classification of property prescribed by section273.13 is modified by legislative amendment, the references inthis subdivision are to the successor class or classes ofproperty, or portions thereof, that include the kinds of propertydesignated in this subdivision.
Subd. 4. [RESIDENTIAL PROPERTY.] "Residentialproperty" means the following categories of property, as definedin section 273.13, excluding that portion of the property that isexempt from taxation pursuant to section 272.02:
(1) class 1a, 1b, and 2a property, limited to the homesteaddwelling, a garage, and the one acre of land on which thedwelling is located;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9877(2) that portion of class 3 property used exclusively forresidential occupancy; and
(3) property valued and assessed under section 273.13,subdivision 25, except for hospitals and property valued andassessed under paragraph (c), clauses (5) and (6).
Subd. 5. [GOVERNMENTAL UNIT.] "Governmental unit"means a county, city, town, school district, or other taxing unitor body which levies ad valorem taxes in whole or in part withinthe area.
Subd. 6. [ADMINISTRATIVE AUDITOR.] "Administrativeauditor" means the person selected under section 4.
Subd. 7. [POPULATION.] "Population" means the mostrecent estimate of the population of a municipality made by thestate demographer and filed with the commissioner of revenue. The state demographer shall annually estimate the population ofeach municipality and, in the case of a municipality which islocated partly within and partly without the area, the proportionof the total which resides within the area, and shall file theestimates with the commissioner of revenue.
Subd. 8. [MUNICIPALITY.] "Municipality" means acity, town, or township located in whole or part within the area. If a municipality is located partly within and partly without thearea, the references in sections 3 to 11 to property or anyportion thereof subject to taxation or taxing jurisdiction withinthe municipality are to the property or portion thereof that islocated in that portion of the municipality within the area,except that the fiscal capacity of the municipality must becomputed upon the basis of the valuation and population of theentire municipality. A municipality shall be excluded from thearea if its municipal comprehensive zoning and planning policiesconscientiously exclude most commercial-industrial development,for reasons other than preserving an agricultural use. The ironrange resources and rehabilitation board and the commissioner ofrevenue shall jointly make this determination annually and shallnotify those municipalities that are ineligible to participate inthe tax base sharing program provided in this chapter for thefollowing year.
Subd. 9. [COUNTY.] "County" means each county inwhich a governmental unit is located in whole or in part.
Subd. 10. [MARKET VALUE.] "Market value" of real andpersonal property within a municipality means the assessor'sestimated market value of all real and personal property,including the value of manufactured housing, within themunicipality. For purposes of sections 3 to 11, the commissionerof revenue shall annually make determinations and reports withrespect to each municipality which are comparable to those itmakes for school districts under section 124.2131, subdivision 1,in the same manner and at the same times prescribed by thesubdivision. The commissioner of revenue shall annuallydetermine, for each municipality, information comparable to thatrequired by section 475.53, subdivision 4, for school districts,as soon as practicable after it becomes available. Thecommissioner of revenue shall then compute the equalized marketvalue of property within each municipality.
Subd. 11. [VALUATION.] "Valuation" means the marketvalue of real and personal property within a municipality asdefined in subdivision 10.
Subd. 12. [FISCAL CAPACITY.] "Fiscal capacity" of amunicipality means its valuation, determined as of January 2 ofany year, divided by its population, determined as of a date inthe same year.
Subd. 13. [AVERAGE FISCAL CAPACITY.] "Average fiscalcapacity" of municipalities means the sum of the valuations ofall municipalities, determined as of January 2 of any year,divided by the sum of their populations, determined as of a datein the same year.
Subd. 14. [LEVY.] "Levy" means the amount certifiedto the county auditor pursuant to chapter 275, less allreductions made by the auditor pursuant to any provision of lawin determining the amount to be spread against taxableproperty.
Subd. 15. [NET TAX CAPACITY.] "Net tax capacity"means the market value of real and personal property multipliedby its net tax capacity rates in section 273.13.
Subd. 16. [LOCAL TAX RATE.] "Local tax rate" means agovernmental unit's levy, including any portion levied againstmarket value under section 124A.03, subdivision 2a, divided byits net tax capacity.
Sec. 4. [276A.02] [ADMINISTRATIVE AUDITOR.]
Subdivision 1. [ELECTION.] On or before July 1,1997, and each subsequent odd-numbered year, the auditors of thecounties within the area shall meet at the call of the auditor ofSt. Louis county and elect from among themselves one auditor toserve as administrative auditor for a period of two years anduntil a successor is elected. If a majority
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9878is unable to agree upon a person to serve as administrativeauditor, the commissioner of revenue shall appoint one from amongthe auditors of the counties in the area. If the administrativeauditor ceases to serve as a county auditor within the areaduring the term for which he was elected or appointed, asuccessor must be chosen in the manner provided for the originalselection to serve for the unexpired term.
Subd. 2. [STAFF; EXPENSES.] The administrativeauditor shall utilize the staff and facilities of the auditor'soffice of the county the administrative auditor serves to performthe functions imposed upon the administrative auditor by sections3 to 11. That county shall be reimbursed for the marginalexpenses incurred by its county auditor and staff under thissection by contributions from each other county in the area in anamount which bears the same proportion to the total expenses thatthe population of the other county bears to the total populationof the area. By February 1 each year, the administrative auditorshall certify the amounts of total expense for the precedingcalendar year, and the share of each county, to the treasurer ofeach other county. Payment must be made by the treasurer of eachother county to the treasurer of the county incurring expense bythe succeeding March 1.
Sec. 5. [276A.03] [NET TAX CAPACITY OF COMMERCIAL-INDUSTRIALPROPERTY.]
By August 5 of 1996 and each subsequent year, the assessorswithin each county in the area shall determine and certify to thecounty auditor the net tax capacity in that year ofcommercial-industrial property subject to taxation within eachmunicipality in the county, determined without regard to section469.177, subdivision 3. By August 5 of 1996 only, the assessorwithin each county in the area shall also determine and certifyto the county auditor the net tax capacity for the 1995assessment of commercial-industrial property subject to taxationwithin each municipality within the county determined withoutregard to section 469.177, subdivision 3.
Sec. 6. [276A.04] [INCREASE IN NET TAX CAPACITY.]
By July 15 of 1997 and each subsequent year, the auditor ofeach county in the area shall determine the amount, if any, bywhich the net tax capacity determined in the preceding yearpursuant to section 5, of commercial-industrial property subjectto taxation within each municipality in the county exceeds thenet tax capacity in 1995 of commercial-industrial propertysubject to taxation within that municipality. If a municipalityis located in two or more counties within the area, the auditorsof those counties shall certify the data required by section 5 tothe county auditor responsible for allocating the levies of thatmunicipality between or among the affected counties. That countyauditor shall determine the amount of the net excess, if any, forthe municipality under this section, and certify that amountunder section 7. The increase in total net tax capacitydetermined by this section must be reduced by the amount of anydecreases in the net tax capacity of commercial-industrialproperty resulting from any court decisions, court-relatedstipulation agreements, or abatements for a prior year, and onlyin the amount of such decreases made during the 12-month periodending on May 1 of the current assessment year, where thedecreases, if originally reflected in the determination of aprior year's net tax capacity under section 5, would haveresulted in a smaller contribution from the municipality in thatyear. An adjustment for the decreases shall be made only if themunicipality made a contribution in a prior year based on thehigher net tax capacity of thecommercial-industrial property.
Sec. 7. [276A.05] [COMPUTATION OF AREAWIDE TAX BASE.]
Subdivision 1. [AREAWIDE NET TAX CAPACITY.] Eachcounty auditor shall certify the determinations under sections 5and 6 to the administrative auditor on or before August 1 of eachyear. The administrative auditor shall determine an amount equalto 40 percent of the sum of the amounts certified pursuant tosection 6. The resulting amount shall be known as the "areawidenet tax capacity for . . . . . . . .(year)."
Subd. 2. [POPULATION AND FISCAL CAPACITYCERTIFICATIONS.] The commissioner of revenue shall certify tothe administrative auditor, on or before August 10 of each year,the population of each municipality for the preceding year, theproportion of that population which resides within the area, theaverage fiscal capacity of municipalities for the preceding year,and the fiscal capacity of each municipality for the precedingyear.
Subd. 3. [AREAWIDE TAX BASE DISTRIBUTION INDEX.] Theadministrative auditor shall determine, for each municipality,the product of (1) its population, (2) the proportion which theaverage fiscal capacity of municipalities for the preceding yearbears to the fiscal capacity of that municipality for thepreceding year. The product shall be the areawide tax basedistribution index for that municipality. If a municipality islocated partly within and partly without the area, its index isthat which is otherwise determined hereunder, multiplied by theproportion which its population residing within the area bears toits total population as of the preceding year.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9879Subd. 4. [DISTRIBUTION NET TAX CAPACITY.] Theadministrative auditor shall determine the proportion which theindex of each municipality bears to the sum of the indices of allmunicipalities and shall then multiply this proportion in thecase of each municipality, by the areawide net taxcapacity.
Subd. 5. [CERTIFICATION.] The product of theprocedure prescribed by subdivision 4 shall be known as the"areawide net tax capacity for . . . . . .(year) attributable to. . . . . . . . . .(municipality)." The administrative auditorshall certify the product to the auditor of the county in whichthe municipality is located on or before August 15.
Sec. 8. [276A.06] [NET TAX CAPACITY OF GOVERNMENTAL UNIT.]
Subdivision 1. [GENERALLY.] The county auditor shalldetermine the net tax capacity of each governmental unit withinthe county in the manner prescribed by this section.
Subd. 2. [DEFINITION.] The net tax capacity of agovernmental unit is its net tax capacity as determined inaccordance with other provisions of law including section469.177, subdivision 3, subject to the followingadjustments:
(a) There must be subtracted from its net tax capacity, ineach municipality in which the governmental unit exercises advalorem taxing jurisdiction, an amount that bears the sameproportion to 40 percent of the amount certified in that yearpursuant to sections 6 and 7 for the municipality as the totalpreceding year's net tax capacity of commercial-industrialproperty which is subject to the taxing jurisdiction of thegovernmental unit within the municipality, determined withoutregard to section 469.177, subdivision 3, bears to the totalpreceding year's net tax capacity of commercial-industrialproperty within the municipality, determined without regard tosection 469.177, subdivision 3.
(b) There must be added to its net tax capacity, in eachmunicipality in which the governmental unit exercises ad valoremtaxing jurisdiction, an amount which bears the same proportion tothe areawide net tax capacity for the year attributable to thatmunicipality as the total preceding year's net tax capacity ofresidential property which is subject to the taxing jurisdictionof the governmental unit within the municipality bears to thetotal preceding year's net tax capacity of residential propertyof the municipality.
Subd. 3. [APPORTIONMENT OF LEVY.] The county auditorshall apportion the levy of each governmental unit in the countyin the manner prescribed by this subdivision. The auditorshall:
(a) by August 20 of 1997 and each subsequent year, determinethe areawide portion of the levy for each governmental unit bymultiplying the local tax rate of the governmental unit for thepreceding levy year times the distribution value set forth insubdivision 2, clause (b); and
(b) by September 5 of 1997 and each subsequent year,determine the local portion of the current year's levy bysubtracting the resulting amount from clause (a) from thegovernmental unit's current year's levy.
Subd. 4. [TAX RATE NONCOMMERCIAL PROPERTY.] In 1997and subsequent years, the county auditor shall divide thatportion of the levy determined pursuant to subdivision 3, clause(b), by the net tax capacity of the governmental unit, takingsection 469.177, subdivision 3, into account, less that portionsubtracted from net tax capacity pursuant to subdivision 2,clause (a). The resulting rate applies to all taxable propertyexcept commercial-industrial property, which must be taxed inaccordance with subdivision 7.
Subd. 5. [AREAWIDE TAX RATE.] On or before August 25of 1997 and each subsequent year, the county auditor shallcertify to the administrative auditor that portion of the levy ofeach governmental unit determined pursuant to subdivision 3,clause (a). The administrative auditor shall then determine theareawide tax rate sufficient to yield an amount equal to the sumof the levies from the areawide net tax capacity. On or beforeSeptember 1, the administrative auditor shall certify theareawide tax rate to each of the county auditors.
Subd. 6. [GOVERNMENTAL UNIT IN TWO OR MORE COUNTIES.]If a governmental unit is located in two or more counties, thecomputations and certifications required by subdivisions 3 to 5with respect to it must be made by the county auditor who isresponsible for allocating its levies between or among theaffected counties.
Subd. 7. [APPLICATION TO COMMERCIAL-INDUSTRIALPROPERTY.] The areawide tax rate determined in accordance withsubdivision 5 applies to each commercial-industrial propertysubject to taxation within a municipality, including propertylocated within any tax increment financing district, as definedin section 469.174, subdivision 9, to that portion of the net taxcapacity of the item which bears the same proportion to its totalnet tax capacity as 40
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9880percent of the amount determined pursuant to sections 6 and 7 isto the amount determined pursuant to section 5. The rate oftaxation determined in accordance with subdivision 4 applies inthe taxation of the remainder of the net tax capacity of theitem.
Subd. 8. [CERTIFICATION OF VALUES; PAYMENT.] Theadministrative auditor shall determine for each county thedifference between the total levy on distribution value pursuantto subdivision 3, clause (a), within the county and the total taxon contribution value pursuant to subdivision 7, within thecounty. On or before May 16 of each year, the administrativeauditor shall certify the differences so determined to eachcounty auditor. In addition, the administrative auditor shallcertify to those county auditors for whose county the total taxon contribution value exceeds the total levy on distributionvalue the settlement the county is to make to the other countiesof the excess of the total tax on contribution value over thetotal levy on distribution value in the county. On or beforeJune 15 and November 15 of each year, each county treasurer in acounty having a total tax on contribution value in excess of thetotal levy on distribution value shall pay one-half of the excessto the other counties in accordance with the administrativeauditor's certification.
Subd. 9. [FISCAL DISPARITIES ADJUSTMENT.] In anyyear in which the highest class rate for class 3a propertychanges from the rate in the previous year, the followingadjustments shall be made to the procedures described in sections6 to 8:
(1) An initial contribution tax capacity shall be determinedfor each municipality based on the previous year'sclass rates.
(2) Each jurisdiction's distribution tax capacity shall bedetermined based upon the areawide tax base determined by summingthe tax capacities computed under clause (1) for allmunicipalities and apportioning the resulting sum pursuant tosection 7, subdivision 5.
(3) Each jurisdiction's distribution levy shall bedetermined by applying the procedures described in subdivision 3,clause (a), to the distribution tax capacity determined pursuantto clause (2).
(4) Each municipality's final contribution tax capacityshall be determined equal to its initial contribution taxcapacity multiplied by the ratio of the new highest class ratefor class 3a property to the previous year's highest class ratefor class 3a property.
(5) For the purposes of computing education aids and anyother state aids requiring the addition of the fiscal disparitiesdistribution tax capacity to the local tax capacity, eachmunicipality's final distribution tax capacity shall bedetermined equal to its initial distribution tax capacitymultiplied by the ratio of the new highest class rate forclass 3a property to the previous year's highest class rate forclass 3a property.
(6) The areawide tax rate shall be determined by dividingthe sum of the amounts determined in clause (3) by the sum of thevalues determined in clause (4).
(7) The final contribution tax capacity determined in clause(4) shall also be used to determined the portion of eachcommercial-industrial property's tax capacity subject to theareawide tax rate pursuant to subdivision 7.
Subd. 10. [ADJUSTMENT OF VALUES FOR OTHERCOMPUTATIONS.] For the purpose of computing the amount or rateof any salary, aid, tax, or debt authorized, required, or limitedby any provision of any law or charter, where the authorization,requirement, or limitation is related to any value or valuationof taxable property within any governmental unit, the value ornet tax capacity must be adjusted to reflect the adjustments tonet tax capacity effected by subdivision 2, provided that: (1)in determining the market value of commercial-industrial propertyor any class thereof within a governmental unit for any purposeother than section 7, (a) the reduction required by thissubdivision is that amount which bears the same proportion to theamount subtracted from the governmental unit's net tax capacitypursuant to subdivision 2, clause (a), as the market value ofcommercial-industrial property, or such class thereof, locatedwithin the governmental unit bears to the net tax capacity ofcommercial-industrial property, or such class thereof, locatedwithin the governmental unit, and (b) the increase required bythis subdivision is that amount which bears the same proportionto the amount added to the governmental unit's net tax capacitypursuant to subdivision 2, clause (b), as the market value ofcommercial-industrial property, or such class thereof, locatedwithin the governmental unit bears to the net tax capacity ofcommercial-industrial property, or such class thereof, locatedwithin the governmental unit; and (2) in determining the marketvalue of real property within a municipality for purposes ofsection 7, the adjustment prescribed by clause (1)(a) must bemade and that prescribed by clause (1)(b) must not bemade.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9881Sec. 9. [276A.07] [ADJUSTMENTS IN DATES.]
If, because of the enactment of any other law, the date bywhich the commissioner of revenue is required to certify to thecounty auditors the records of proceedings affecting the net taxcapacity of property is advanced to a date earlier than June 30,the dates specified in sections 5 to 8 and 10 may be modified inthe years to which the other law applies in the manner and to theextent prescribed by the administrative auditor.
Sec. 10. [276A.08] [REASSESSMENTS AND OMITTED PROPERTY.]
Subdivision 1. [REASSESSMENT ORDERS.] If thecommissioner of revenue orders a reassessment of all or anyportion of the property in a municipality other than in the formof a mathematically prescribed adjustment of valuation, or ifomitted property is placed upon the tax rolls, and thereassessment has not been completed or the property placed uponthe rolls by November 15, the net tax capacity of the affectedproperty must, for purposes of sections 4 to 8, be determinedfrom the abstracts filed by the county auditor with thecommissioner of revenue.
Subd. 2. [ADJUSTMENT OF VALUE.] If the reassessment,when completed and incorporated in the commissioner'scertification of the net tax capacity of the municipality, or thelisting of omitted property, when placed on the rolls, results inan increase in the net tax capacity of commercial-industrialproperty in the municipality which differs from that used,pursuant to subdivision 1, for purposes of sections 4 to 8, theincrease in the net tax capacity of commercial-industrialproperty in that municipality in the succeeding year, asotherwise computed under section 6, must be adjusted in a likeamount, by an increase if the reassessment or listing discloses alarger increase than was used for purposes of sections 4 to 8, orby a decrease if the reassessment or listing discloses a smallerincrease than was used for those purposes, provided that noadjustment shall reduce the amount determined under section 6 toan amount less than zero.
Subd. 3. [EXCEPTIONS.] Subdivisions 1 and 2 do notapply to the determination of the tax rate under section 8,subdivision 4, or to the determination of the net tax capacity ofcommercial-industrial property and each item thereof for purposesof section 8, subdivision 7.
Sec. 11. [276A.09] [CHANGE IN STATUS OF MUNICIPALITY.]
If a municipality is dissolved, is consolidated with all orpart of another municipality, annexes territory, has a portion ofits territory detached from it, or is newly incorporated, thesecretary of state shall immediately certify that fact to thecommissioner of revenue. The secretary of state shall alsocertify to the commissioner of revenue the current population ofthe new, enlarged, or successor municipality, if determined bythe Minnesota municipal board incident to consolidation,annexation, or incorporation proceedings. The population socertified shall govern for purposes of sections 3 to 11 until thestate demographer files the first population estimate as of alater date with the commissioner of revenue. If an annexation ofunincorporated land occurs without proceedings before theMinnesota municipal board, the population of the annexingmunicipality as previously determined shall continue to governfor purposes of sections 3 to 11 until the state demographerfiles the first population estimate as of a later date with thecommissioner of revenue.
Sec. 12. Minnesota Statutes 1995 Supplement, section 428A.05,is amended to read:
428A.05 [COLLECTION OF SERVICE CHARGES.]
Service charges may be imposed on the basis of the net taxcapacity of the property on which the service charge is imposedbut must be spread only upon the net tax capacity of the taxableproperty located in the geographic area described in theordinance. Service charges based on net tax capacity may bepayable and collected at the same time and in the same manner asprovided for payment and collection of ad valorem taxes. Whenmade payable in the same manner as ad valorem taxes, servicecharges not paid on or before the applicable due date shall besubject to the same penalty and interest as in the case of advalorem tax amounts not paid by the respective due date. The duedate for a service charge payable in the same manner as advalorem taxes is the due date given in law for the real orpersonal property tax for the property on which the servicecharge is imposed. Service charges imposed on net tax capacitywhich are to become payable in the following year must becertified to the county auditor by the date provided in section429.061, subdivision 3, for the annual certification of specialassessment installments. Other service charges imposed must becollected as provided by ordinance. Service charges based on nettax capacity collected under sections 428A.01 to 428A.10 are notincluded in computations under section 469.177, chapter 276Aor 473F, or any other law that applies to general ad valoremlevies. For the purpose of this section, "net tax capacity"means the net tax capacity most recently determined at the timethat tax rates are determined under section 275.08.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9882Sec. 13. Minnesota Statutes 1995 Supplement, section 465.82,subdivision 2, is amended to read:
Subd. 2. [CONTENTS OF PLAN.] The plan must state:
(1) the specific cooperative activities the units will engagein during the first two years of the venture;
(2) the steps to be taken to effect the merger of thegovernmental units, with completion no later than four yearsafter the process begins;
(3) the steps by which a single governing body will becreated;
(4) changes in services provided, facilities used,administrative operations and staffing to effect the preliminarycooperative activities and the final merger and a two-, five-,and ten-year projection of expenditures for each unit if itcombined and if it remained separate;
(5) treatment of employees of the merging governmental units,specifically including provisions for reassigning employees,dealing with unions, and providing financial incentives toencourage early retirements;
(6) financial arrangements for the merger, specificallyincluding responsibility for debt service on outstandingobligations of the merging entities;
(7) one- and two-year impact analysis, prepared by the grantingstate agency at the request of the local government unit, ofmajor state aid revenues received for each unit if it combinedand if it remained separate. This would also include an impactanalysis, prepared by the department of revenue, of property taxrevenue implications, if any, associated with tax incrementfinancing districts and fiscal disparities under chapter 276Aor 473F resulting from the merger;
(8) procedures for a referendum to be held before the proposedcombination to approve combining the local government units,specifically stating whether a majority of those voting in eachdistrict proposed for combination or a majority of those votingon the question in the entire area proposed for combination wouldbe needed to pass the referendum; and
(9) a time schedule for implementation.
Notwithstanding clause (3) or any other law to the contrary,all current members of the governing bodies of the localgovernmental units that propose to combine under sections 465.81to 465.88 may serve on the initial governing body of the combinedunit until a gradual reduction in membership is achieved byforegoing election of new members when terms expire until thenumber permitted by other law is reached.
Sec. 14. Minnesota Statutes 1995 Supplement, section 469.175,subdivision 5, is amended to read:
Subd. 5. [ANNUAL DISCLOSURE.] For all tax increment financingdistricts, whether created prior or subsequent to August 1, 1979,on or before July 1 of each year, the authority shall submit tothe county board, the county auditor, the school board, stateauditor and, if the authority is other than the municipality, thegoverning body of the municipality, a report of the status of thedistrict. The report shall include the following information: the amount and the source of revenue in the account, the amountand purpose of expenditures from the account, the amount of anypledge of revenues, including principal and interest on anyoutstanding bonded indebtedness, the original net tax capacity ofthe district, the captured net tax capacity retained by theauthority, the captured net tax capacity shared with other taxingdistricts, the tax increment received, and any additionalinformation necessary to demonstrate compliance with anyapplicable tax increment financing plan. An annual statementshowing the tax increment received and expended in that year, theoriginal net tax capacity, captured net tax capacity, amount ofoutstanding bonded indebtedness, the amount of the district'sincrements paid to other governmental bodies, the amount paid foradministrative costs, the sum of increments paid, directly orindirectly, for activities and improvements located outside ofthe district, and any additional information the authority deemsnecessary shall be published in a newspaper of generalcirculation in the municipality. If the fiscal disparitiescontribution under chapter 276A or 473F for the districtis computed under section 469.177, subdivision 3, paragraph (a),the annual statement must disclose that fact and indicate theamount of increased property tax imposed on other properties inthe municipality as a result of the fiscal disparitiescontribution. The commissioner of revenue shall prescribe theform of this statement and the method for calculating theincreased property taxes.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9883Sec. 15. Minnesota Statutes 1994, section 469.177, subdivision3, is amended to read:
Subd. 3. [TAX INCREMENT, RELATIONSHIP TO CHAPTERCHAPTERS 276A AND 473F.] (a) Unless the governing bodyelects pursuant to clause (b) the following method of computationshall apply:
(1) The original net tax capacity and the current net taxcapacity shall be determined before the application of the fiscaldisparity provisions of chapter 276A or 473F. Where theoriginal net tax capacity is equal to or greater than the currentnet tax capacity, there is no captured net tax capacity and notax increment determination. Where the original net tax capacityis less than the current net tax capacity, the difference betweenthe original net tax capacity and the current net tax capacity isthe captured net tax capacity. This amount less any portionthereof which the authority has designated, in its tax incrementfinancing plan, to share with the local taxing districts is theretained captured net tax capacity of the authority.
(2) The county auditor shall exclude the retained captured nettax capacity of the authority from the net tax capacity of thelocal taxing districts in determining local taxing district taxrates. The local tax rates so determined are to be extendedagainst the retained captured net tax capacity of the authorityas well as the net tax capacity of the local taxing districts.The tax generated by the extension of the lesser of (A) the localtaxing district tax rates or (B) the original local tax rate tothe retained captured net tax capacity of the authority is thetax increment of the authority.
(b) The governing body may, by resolution approving the taxincrement financing plan pursuant to section 469.175, subdivision3, elect the following method of computation:
(1) The original net tax capacity shall be determined beforethe application of the fiscal disparity provisions of chapter276A or 473F. The current net tax capacity shall excludeany fiscal disparity commercial-industrial net tax capacityincrease between the original year and the current yearmultiplied by the fiscal disparity ratio determined pursuant tosection 276A.06, subdivision 7, or 473F.08, subdivision 6.Where the original net tax capacity is equal to or greater thanthe current net tax capacity, there is no captured net taxcapacity and no tax increment determination. Where the originalnet tax capacity is less than the current net tax capacity, thedifference between the original net tax capacity and the currentnet tax capacity is the captured net tax capacity. This amountless any portion thereof which the authority has designated, inits tax increment financing plan, to share with the local taxingdistricts is the retained captured net tax capacity of theauthority.
(2) The county auditor shall exclude the retained captured nettax capacity of the authority from the net tax capacity of thelocal taxing districts in determining local taxing district taxrates. The local tax rates so determined are to be extendedagainst the retained captured net tax capacity of the authorityas well as the net tax capacity of the local taxing districts.The tax generated by the extension of the lesser of (A) the localtaxing district tax rates or (B) the original local tax rate tothe retained captured net tax capacity of the authority is thetax increment of the authority.
(3) An election by the governing body pursuant to paragraph (b)shall be submitted to the county auditor by the authority at thetime of the request for certification pursuant to subdivision1.
(c) The method of computation of tax increment applied to adistrict pursuant to paragraph (a) or (b) shall remain the samefor the duration of the district, except that the governing bodymay elect to change its election from the method of computationin paragraph (a) to the method in paragraph (b).
Sec. 16. Minnesota Statutes 1994, section 477A.011,subdivision 20, is amended to read:
Subd. 20. [CITY NET TAX CAPACITY.] "City net tax capacity"means (1) the net tax capacity computed using the net taxcapacity rates in section 273.13, and the market values for taxespayable in the year prior to the aid distribution plus (2) acity's fiscal disparities distribution tax capacity under section276A.06, subdivision 2, paragraph (b), or 473F.08,subdivision 2, paragraph (b), for taxes payable in the year priorto that for which aids are being calculated. The market valueutilized in computing city net tax capacity shall be reduced bythe sum of (1) a city's market value of commercial industrialproperty as defined in section 276A.01, subdivision 3, or473F.02, subdivision 3, multiplied by the ratio determinedpursuant to section 276A.06, subdivision 2, paragraph (a),or 473F.08, subdivision 2, paragraph (a), (2) the marketvalue of the captured value of tax increment financing districtsas defined in section 469.177, subdivision 2, and (3) the marketvalue of transmission lines deducted from a city's total net taxcapacity under section 273.425. The city net tax capacity willbe computed using equalized market values.
Sec. 17. Minnesota Statutes 1994, section 477A.011,subdivision 27, is amended to read:
Subd. 27. [REVENUE BASE.] "Revenue base" means the amountlevied for taxes payable in the previous year, including the levyon the fiscal disparity distribution under section 276A.06,subdivision 3, paragraph (a), or 473F.08, subdivision 3,paragraph (a), and before reduction for the homestead andagricultural credit aid under
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9884section 273.1398, subdivision 2, equalization aid under section477A.013, subdivision 5, and disparity reduction aid undersection 273.1398, subdivision 3; plus the originally certifiedlocal government aid in the previous year under sections477A.011, 477A.012, and 477A.013, except for 477A.013,subdivision 5; and the taconite aids received in the previousyear under sections 298.28 and 298.282.
Sec. 18. Minnesota Statutes 1994, section 477A.011,subdivision 32, is amended to read:
Subd. 32. [COMMERCIAL INDUSTRIAL PERCENTAGE.] "Commercialindustrial percentage" for a city is 100 times the sum of theestimated market values of all real property in the cityclassified as class 3 under section 273.13, subdivision 24,excluding public utility property, to the total market value ofall taxable real and personal property in the city. The marketvalues are the amounts computed before any adjustments for fiscaldisparities under section 276A.06 or 473F.08. The marketvalues used for this subdivision are not equalized.
Sec. 19. Minnesota Statutes 1994, section 477A.011,subdivision 35, is amended to read:
Subd. 35. [TAX EFFORT RATE.] "Tax effort rate" means the sumof the net levy for all cities divided by the sum of the city nettax capacity for all cities. For purposes of this section, "netlevy" means the city levy, after all adjustments, used forcalculating the local tax rate under section 275.08 for taxespayable in the year prior to the aid distribution. The fiscaldisparity distribution levy under chapter 276A or 473F isincluded in net levy.
Sec. 20. [EFFECTIVE DATE.]
Sections 1 to 19 are effective July 1, 1997, for taxeslevied in 1997, payable in 1998 and subsequent years, except asprovided in section 5.
TACONITE TAXES
Section 1. Minnesota Statutes 1995 Supplement, section298.227, is amended to read:
298.227 [TACONITE ECONOMIC DEVELOPMENT FUND.]
An amount equal to that distributed pursuant to each taconiteproducer's taxable production and qualifying sales under section298.28, subdivision 9a, shall be held by the iron range resourcesand rehabilitation board in a separate taconite economicdevelopment fund for each taconite and direct reduced oreproducer. Money from the fund for each producer shall bereleased only on the written authorization of a joint committeeconsisting of an equal number of representatives of the salariedemployees and the nonsalaried production and maintenanceemployees of that producer. The district 33 11director of the United States Steelworkers of America, on adviceof each local employee president, shall select the employeemembers. In nonorganized operations, the employee committeeshall be elected by the nonsalaried production and maintenanceemployees. Each producer's joint committee may authorize releaseof the funds held pursuant to this section only for acquisitionof equipment and facilities for the producer or for research anddevelopment in Minnesota on new mining, or taconite, iron, orsteel production technology. Funds may be released only upon amajority vote of the representatives of the committee. If ataconite production facility is sold after operations at thefacility had ceased, any money remaining in the fund for theformer producer may be released to the purchaser of the facilityon the terms otherwise applicable to the former producer underthis section. Any portion of the fund which is not released by ajoint committee within two years of its deposit in the fund shallbe divided between the taconite environmental protection fundcreated in section 298.223 and the northeast Minnesota economicprotection trust fund created in section 298.292 for placement intheir respective special accounts. Two-thirds of the unreleasedfunds shall be distributed to the taconite environmentalprotection fund and one-third to the northeast Minnesota economicprotection trust fund. This section is effective for taxespayable in 1993 and 1994.
Sec. 2. Minnesota Statutes 1995 Supplement, section 298.24,subdivision 1, is amended to read:
Subdivision 1. (a) For concentrate produced in 1992, 1993,1994, and 1995 there is imposed upon taconite and iron sulphides,and upon the mining and quarrying thereof, and upon theproduction of iron ore concentrate therefrom, and upon theconcentrate so produced, a tax of $2.054 per gross ton ofmerchantable iron ore concentrate produced therefrom.
(b) For concentrates produced in 1996 and subsequent years, thetax rate shall be equal to the preceding year's tax rate plus anamount equal to the preceding year's tax rate multiplied by thepercentage increase in the implicit price deflator from thefourth quarter of the second preceding year to the fourth quarterof the preceding year, provided
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9885that, for concentrates produced in 1996 only, the increase in therate of tax imposed under this section over the rate imposed forthe previous year may not exceed four cents per ton. "Implicit price deflator" for the gross national product meansthe implicit price deflator prepared by the bureau of economicanalysis of the United States Department of Commerce.
(c) The tax shall be imposed on the average of the productionfor the current year and the previous two years. The rate of thetax imposed will be the current year's tax rate. This clauseshall not apply in the case of the closing of a taconite facilityif the property taxes on the facility would be higher if thisclause and section 298.25 were not applicable.
(d) If the tax or any part of the tax imposed by thissubdivision is held to be unconstitutional, a tax of $2.054 pergross ton of merchantable iron ore concentrate produced shall beimposed.
(e) Consistent with the intent of this subdivision to impose atax based upon the weight of merchantable iron ore concentrate,the commissioner of revenue may indirectly determine the weightof merchantable iron ore concentrate included in fluxed pelletsby subtracting the weight of the limestone, dolomite, or olivinederivatives or other basic flux additives included in the pelletsfrom the weight of the pellets. For purposes of this paragraph,"fluxed pellets" are pellets produced in a process in whichlimestone, dolomite, olivine, or other basic flux additives arecombined with merchantable iron ore concentrate. No subtractionfrom the weight of the pellets shall be allowed for binders,mineral and chemical additives other than basic flux additives,or moisture.
(f)(1) Notwithstanding any other provision of this subdivision,for the first five years of a plant's production of directreduced ore, the rate of the tax on direct reduced ore isdetermined under this paragraph. As used in this paragraph,"direct reduced ore" is ore that results in a product that has aniron content of at least 75 percent. The rate to be applied todirect reduced ore is 25 percent of the rate otherwise determinedunder this subdivision for the first 500,000 of taxable tons forthe production year, and 50 percent of the rate otherwisedetermined for any remainder. If the taxpayer had no productionin the two years prior to the the current production year, thetonnage eligible to be taxed at 25 percent of the rate otherwisedetermined under this subdivision is the first 166,667 tons. Ifthe taxpayer had some production in the year prior to the currentproduction year but no production in the second prior year, thetonnage eligible to be taxed at 25 percent of the rate otherwisedetermined under this subdivision is the first 333,333 tons.
(2) Production of direct reduced ore in this state is subjectto the tax imposed by this section, but if that production is notproduced by a producer of taconite or iron sulfides, theproduction of taconite or iron sulfides consumed in theproduction of direct reduced iron in this state is not subject tothe tax imposed by this section on taconite or iron sulfides.
Sec. 3. Minnesota Statutes 1994, section 298.28, subdivision2, is amended to read:
Subd. 2. [CITY OR TOWN WHERE QUARRIED OR PRODUCED.] 2.54.5 cents per gross ton of merchantable iron oreconcentrate, hereinafter referred to as "taxable ton," must beallocated to the city or town in the county in which the landsfrom which taconite was mined or quarried were located or withinwhich the concentrate was produced. If the mining, quarrying,and concentration, or different steps in either thereof arecarried on in more than one taxing district, the commissionershall apportion equitably the proceeds of the part of the taxgoing to cities and towns among such subdivisions upon the basisof attributing 40 percent of the proceeds of the tax to theoperation of mining or quarrying the taconite, and the remainderto the concentrating plant and to the processes of concentration,and with respect to each thereof giving due consideration to therelative extent of such operations performed in each such taxingdistrict. The commissioner's order making such apportionmentshall be subject to review by the tax court at the instance ofany of the interested taxing districts, in the same manner asother orders of the commissioner.
Sec. 4. Minnesota Statutes 1994, section 298.28, subdivision6, is amended to read:
Subd. 6. [PROPERTY TAX RELIEF.] (a) Fifteen cents per taxableton, less any amount required to be distributed under paragraphs(b) and (c), and less any amount required to be deducted underparagraph (d), must be allocated to St. Louis county actingas the counties' fiscal agent, to be distributed as provided insections 273.134 to 273.136.
(b) If an electric power plant owned by and providing theprimary source of power for a taxpayer mining and concentratingtaconite is located in a county other than the county in whichthe mining and the concentrating processes are conducted, .1875cent per taxable ton of the tax imposed and collected from suchtaxpayer shall be paid to the county.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9886(c) If an electric power plant owned by and providing theprimary source of power for a taxpayer mining and concentratingtaconite is located in a school district other than a schooldistrict in which the mining and concentrating processes areconducted, .5625 cent per taxable ton of the tax imposed andcollected from the taxpayer shall be paid to the schooldistrict.
(d) Two cents per taxable ton must be deducted from theamount allocated to the St. Louis county auditor under paragraph(a).
Sec. 5. Minnesota Statutes 1995 Supplement, section 298.28,subdivision 9a, is amended to read:
Subd. 9a. [TACONITE ECONOMIC DEVELOPMENT FUND.] (a) 15.4 centsper ton for distributions in 1994, 1995, 1996, and20.4 cents per ton for distributions in 1997, 1998, and1999 shall be paid to the taconite economic development fund. No distribution shall be made under this paragraph in any year inwhich total industry production falls below 30 million tons.
(b) An amount equal to 50 percent of the tax under section298.24 for concentrate sold in the form of pellet chips and finesnot exceeding 5/16 inch in size and not including crushed pelletsshall be paid to the taconite economic development fund. Theamount paid shall not exceed $700,000 annually for all companies. If the initial amount to be paid to the fund exceeds this amount,each company's payment shall be prorated so the total does notexceed $700,000.
Sec. 6. Minnesota Statutes 1994, section 298.296, subdivision2, is amended to read:
Subd. 2. [EXPENDITURE OF FUNDS.] Before January 1, 2002, fundsmay be expended on projects and for administration of the trustfund only from the net interest, earnings, and dividends arisingfrom the investment of the trust at any time, including netinterest, earnings, and dividends that have arisen prior to July13, 1982, plus $10,000,000 made available for use in fiscal year1983, except that any amount required to be paid out of the trustfund to provide the property tax relief specified in Laws 1977,chapter 423, article X, section 4, and to make school bondpayments and payments to recipients of taconite production taxproceeds pursuant to section 298.225, may be taken from thecorpus of the trust. Additionally, upon recommendation by theboard, up to $10,000,000 $13,000,000 from thecorpus of the trust may be made available for use as provided insubdivision 4, and up to $10,000,000 from the corpus of thetrust may be made available for use as provided in section298.2961. On and after January 1, 2002, funds may beexpended on projects and for administration from any assets ofthe trust. Annual administrative costs, not including detailedengineering expenses for the projects, shall not exceed fivepercent of the net interest, dividends, and earnings arising fromthe trust in the preceding fiscal year.
Principal and interest received in repayment of loans madepursuant to this section, and earnings on other investments madeunder section 298.292, subdivision 2, clause (4), shall bedeposited in the state treasury and credited to the trust. Thesereceipts are appropriated to the board for the purposes ofsections 298.291 to 298.298.
Sec. 7. Minnesota Statutes 1995 Supplement, section 298.296,subdivision 4, is amended to read:
Subd. 4. [TEMPORARY LOAN AUTHORITY.] (a) The board mayrecommend that up to $10,000,000 from the corpus of the trust maybe used for loans as provided in this subdivision. The moneywould be available for loans for construction and equipping offacilities constituting (1) a value added iron products plant,which may be either a new plant or a facility incorporated intoan existing plant that produces iron upgraded to a minimum of 75percent iron content or any iron alloy with a total minimummetallic content of 90 percent; or (2) a new mine or mineralsprocessing plant for any mineral subject to the net proceeds taximposed under section 298.015. A loan under thissubdivision paragraph may not exceed $5,000,000 forany facility.
(b) Additionally, the board must reserve the first$2,000,000 of the net interest, dividends, and earnings arisingfrom the investment of the trust after June 30, 1996, to be usedfor additional grants for the purposes set forth inparagraph (a). This amount must be reserved until it is used forthe grants or until June 30, 1998, whichever is earlier.
(c) Additionally, the board may recommend that up to$3,000,000 from the corpus of the trust may be used foradditional grants for the purposes set forth in paragraph(a).
(d) The board may require that it receive an equitypercentage in any project to which it contributes underthis section.
(e) The authority to make loans and grants underthis subdivision terminates December 31, 1997 June 30,1998.
Sec. 8. [298.2961] [PRODUCER GRANTS.]
Subdivision 1. [APPROPRIATION.] $10,000,000 isappropriated from the northeast Minnesota economic protectiontrust fund to a special account in the taconite areaenvironmental protection fund for grants or loans to producers ona project-by-project basis as provided in this section.
Subd. 2. [PROJECTS; APPROVAL.] (a) Projects fundedmust be for:
(1) environmentally unique reclamation projects; or
(2) pit or plant expansions or modernizations other than fora value added iron products plant that extend the life of theplant.
(b) To be proposed by the board, a project must be approvedby at least eight iron range resources and rehabilitation boardmembers. The money for a project may be spent only upon approvalof the project by the governor. The board may submitsupplemental projects for approval at any time.
(c) The board may require that it receive an equitypercentage in any project to which it contributes underthis section.
Sec. 9. [EFFECTIVE DATES.]
Section 1 is effective for taxes payable in 1995 andthereafter. Sections 3 to 6 are effective for production year1996, distributions in 1997 and thereafter.
Section 1. Minnesota Statutes 1995 Supplement, section 16A.67,subdivision 5, is amended to read:
Subd. 5. [COVENANTS; AGREEMENTS.] The commissioner may, forand on behalf of the state, enter into such covenants andagreements not inconsistent with subdivisions 1 to 4 and sections246.18, subdivisions 4 and 6; and 349A.10, subdivision 5, as maybe necessary or desirable to facilitate the sale and issuance ofthe bonds on terms favorable to the state, including, but notlimited to, covenants and agreements relating to the payment ofand security for the bonds, tax-exemption, and disclosure ofinformation required by federal and state securities laws. Such covenants and agreements of the commissioner constitutean enforceable contract of the state and the state pledges andagrees with the holders of any bonds that the state will notlimit or alter the rights vested in the commissioner to fulfillthe terms of any such covenants or agreements made with theholders of the bonds, or in any way impair the rights andremedies of the holders until the bonds, together with theinterest thereon, with interest on any unpaid installments ofinterest, and all costs and expenses in connection with anyaction or proceeding by or on behalf of such holders, are fullymet and discharged. The commissioner is authorized to includethis pledge and agreement of the state in any covenant oragreement with the holders of such bonds. Such covenants maynot include covenants to continue to operate the state lotterybut may include covenants to continue to seek payment by andreimbursement from nonstate sources of health care costs so longas any bonds issued pursuant to this section are outstanding. The provisions of sections 16A.672 and 16A.675 are applicable tothe bonds.
Sec. 2. Minnesota Statutes 1994, section 115.26, is amended byadding a subdivision to read:
Subd. 5. (a) In order to maintain the integrity of andfacilitate access to district systems, works, or facilities, thedistrict may maintain and repair a road by agreement with theentity that was responsible for the performance of maintenanceand repair immediately prior to the agreement. Maintenance andrepair includes, but is not limited to, providing lighting, snowremoval, and grass mowing.
(b) A district shall establish a taxing subdistrict ofbenefited property and shall levy special taxes, pursuant tosection 115.33, subdivision 2, for the purposes of paying thecost of improvement or maintenance of a road under paragraph(a).
(c) For purposes of this subdivision, a district shall notbe construed as a road authority under chapter 160.
(d) The district and its officers and employees are exemptfrom liability for any tort claim for injury to person orproperty arising from travel on a road maintained by the districtand related to its maintenance or condition.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9888Sec. 3. Minnesota Statutes 1994, section 115A.919, is amendedby adding a subdivision to read:
Subd. 2a. [JOINT POWERS AGREEMENT.] If a facility isowned by a joint powers board, total fees in excess of $1 percubic yard or equivalent may not be imposed or revenue expendedunder subdivision 1 or 2 without the approval of theboard.
Sec. 4. Minnesota Statutes 1994, section 115A.923, subdivision1a, is amended to read:
Subd. 1a. [PAYMENT OF THE GREATER MINNESOTA LANDFILL CLEANUPFEE.] The operator of a disposal facility in greater Minnesotashall remit the fees collected under subdivision 1 to the countyor sanitary district where the facility is located, except thatthe operator of a facility that is owned by a statutory or homerule city shall remit the fees to the city that owns the facilityand the operator of a facility that is owned by a joint powersboard shall remit the fees to the board. The county, city,joint powers board, or sanitary district may use therevenue from the fees only for the purposes specified in section115A.919.
Sec. 5. Minnesota Statutes 1994, section 270.067, subdivision2, is amended to read:
Subd. 2. [PREPARATION; SUBMISSION.] The commissioner ofrevenue shall prepare a tax expenditure budget for the state. Thetax expenditure budget report shall be submitted to thelegislature as a supplement to the governor's budget and atthe same time as provided for submission of the budget pursuantto section 16A.11, subdivision 1 by February 1 of eacheven-numbered year.
Sec. 6. Minnesota Statutes 1994, section 270.102, subdivision1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) The following terms used inthis section have the following meanings.
(b) "Successor" means a person who directly or indirectlypurchases, acquires, is gifted, or succeeds to the business orstock of goods of any person quitting, selling, or otherwisedisposing of a business or stock of goods. Successor does notinclude a personal representative or beneficiary of an estate,a trustee in bankruptcy, a debtor in possession, a receiver, asecured party, a mortgagee, an assignee of rents, or any otherlienholder.
(c) "Person" means an individual, partnership, corporation,sole proprietorship, joint venture, limited liability company, orany other type of business entity or association.
(d) "Withhold" means setting aside money or dealing with thepayment of consideration in a manner that denies a transferringbusiness the benefit of the transfer in an amount equal to thesales and withholding tax liability of the transferringbusiness.
(e) "Purchase price" means the consideration paid or to be paidfor the transfer by the successor to the transferring business,and includes amounts paid for tangible property or intangiblessuch as leases, licenses, or goodwill. Purchase price alsoincludes debts assumed or forgiven by the successor, or real orpersonal property conveyed or to be conveyed by the successor tothe transferring business.
(f) "Arm's length transaction" means a transfer for adequateconsideration between independent parties both acting in theirown best interests. If the parties are related to each other, arebuttable presumption arises that the transaction is not atarm's length.
(g) "Transfer" means every mode, direct or indirect, absoluteor conditional, voluntary or involuntary, of disposing of orparting with a business or an interest in a business, or a stockof goods, whether by gift or for consideration. Transferincludes a change in the type of business entity or the name ofthe business, where one business is discontinued and a new onestarted. Transfer also includes the acquisition by a newcorporation of the assets of a prior business in exchange for thestock of the new corporation. Transfer does not include anassignment for the benefit of creditors, foreclosure orenforcement of a mortgage, assignment of rents, security interestor lien, sale or disposition in a bankruptcy proceeding, or saleor disposition by a receiver.
(h) "Transfer in bulk" means a transfer, other than in theordinary course of the transferor's trade or business, of morethan one-half of all the property of a business at all locationscombined, as measured by the value of the property at the time ofthe transfer.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9889Sec. 7. Minnesota Statutes 1994, section 270.102, subdivision2, is amended to read:
Subd. 2. [BULK TRANSFERS; LIABILITY OF SUCCESSOR; LIEN.] (a)Whenever a business transfers in bulk to a successor all orany part of the business assets, other than in theordinary course of business, and a anenforceable lien for unpaid sales and withholding taxes hasbeen filed against the business by the commissioner under section270.69 in the office of the secretary of state or in theoffice of the county recorder for the county in which thebusiness is located, at least 20 days before takingpossession of the assets or paying the purchase price, thesuccessor shall notify the commissioner of the transfer and theterms and conditions related to it. The notice must include thetax identification number of the transferring business. If anagreement to transfer has been entered into, this noticerequirement only applies: (1) if a lien described under thisparagraph has been filed prior to the date of the agreement; or(2) if the date of the transfer is more than 30 days after thedate of the agreement, and a lien described under this paragraphis filed at least 30 days prior to the date of transfer.
(b) If the successor fails to give the notice required inparagraph (a), the successor is liable for any unpaid sales andwithholding taxes, interest, and penalties due from thetransferring business to the extent of the purchase price. Ifthe successor provides the notice required in paragraph (a) and,within 20 days after receipt of the notice, the commissionernotifies the successor that tax liabilities exist in addition tothose included on the lien or there are sales and withholding taxreturns due but not filed, the successor is, in addition to beingliable for the amounts included on the lien, liable for all otheruncontested sales and withholding taxes, interest, and penaltiesas stated in the commissioner's notice from the transferringbusiness to the extent of the purchase price if thesuccessor pays the purchase price or takes possession of theassets without withholding and remitting the liability to thecommissioner. The successor is liable whether the purchase priceis paid or the assets are transferred prior to or afternotification from the commissioner. The commissioner may alsonotify the successor that there are no sales or withholding taxliabilities or returns due from the transferring business otherthan the liabilities included on the lien, and of the currentbalance due to satisfy the lien.
(c) The commissioner shall have a first priority lien forall consideration paid or to be paid toward the purchase pricewhen the requirements of this section have not been met.
(d) If, based upon the information available, thecommissioner determines that a transfer was not at arm's lengthor was a gift, the successor's liability under this sectionequals the value of the assets transferred. For purposes ofimposing the liability, the value of the property transferred ispresumed, subject to rebuttal, to equal the unpaid salesand withholding taxes, interest, and penalties of thetransferring business.
(e) (d) In the case of a gift resulting insuccessor liability under this section, return of the giftedproperty by the donee to the donor releases the donee's successorliability.
(f) The liability imposed by this section does not includeassignments for the benefit of creditors under chapter 577,foreclosures of mortgages under chapters 580 to 582 or ofsecurity interests arising under article 9 of the UniformCommercial Code, or sales by trustees in bankruptcy.
(g) (e) A successor who complies with therequirements of paragraphs (a) and (b) is not liable for anyassessments of sales and withholding taxes of the transferringbusiness made after the commissioner provides notice to thesuccessor under paragraph (b), except for taxes assessed onreturns filed to comply with the notice. If the commissionerfails to provide the notice and the 20-day period expires, thesuccessor is not liable for any sales and withholding taxes ofthe transferring business other than those included on thelien.
Sec. 8. Minnesota Statutes 1994, section 270.102, subdivision3, is amended to read:
Subd. 3. [ASSESSMENT PROCEDURE; NO STAY ON COLLECTIONREMEDIES.] The commissioner may assess liability under thissection within the time prescribed for collecting the underlyingsales and withholding taxes, interest, and penalties. Theassessment is presumed to be valid, and the burden is upon thesuccessor to show it is incorrect or invalid. An order assessingsuccessor liability is reviewable administratively under section289A.65 and is appealable to tax court under chapter 271. Thecommissioner may abate an assessment if the successor's failureto give the notice required under this section is due toreasonable cause. The procedural and appeal provisions undersection 270.07, subdivision 6, apply to abatement requests underthis subdivision. Collection remedies available against thetransferring business are available against the successor fromthe date of assessment of successor liability.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9890Sec. 9. Minnesota Statutes 1994, section 270.70, subdivision2, is amended to read:
Subd. 2. [NOTICE AND DEMAND; COLLECTION BY LEVY; JEOPARDYCOLLECTION.] (a) Before a levy is made, notice and demand forpayment of the amount due must be given to the person liable forthe payment or collection of the tax at least 30 days prior tothe levy. The notice required under this paragraph must be sentto the taxpayer's last known address and must include a briefstatement that sets forth in simple and nontechnical terms:
(1) the administrative appeals available to the taxpayer withrespect to the levy and sale; and
(2) the alternatives available to the taxpayer that can preventa levy, including installment payment agreements under section270.67, subdivision 2.
(b) Notwithstanding the stay of collection provisions insections 270.10, subdivision 5, and 289A.37, subdivision 1,paragraph (b), and the notice provisions in paragraph (a), if thecommissioner has reason to believe that collection of the tax isin jeopardy, notice and demand for immediate payment of the taxmay be made. If the tax is not paid, the commissioner mayproceed to collect by levy or by filing a lien under section270.69.
Sec. 10. Minnesota Statutes 1994, section 270A.03, subdivision2, is amended to read:
Subd. 2. [CLAIMANT AGENCY.] "Claimant agency" means any stateagency, as defined by section 14.02, subdivision 2, the regentsof the University of Minnesota, any district court of the state,any county, any statutory or home rule charter city presenting aclaim for a municipal hospital or a public library, ahospital district, any public agency responsible for childsupport enforcement, any public agency responsible for thecollection of court-ordered restitution, and any public agencyestablished by general or special law that is responsible for theadministration of a low-income housing program.
Sec. 11. Minnesota Statutes 1995 Supplement, section 270A.03,subdivision 7, is amended to read:
Subd. 7. [REFUND.] "Refund" means an individual income taxrefund or political contribution refund, pursuant to chapter 290,or a property tax credit or refund, pursuant to chapter 290A.
For purposes of this chapter, lottery prizes, as set forth insection 349A.08, subdivision 8, shall be treated as refunds.
In the case of a joint property tax refund payable to spousesunder chapter 290A, the refund shall be considered as belongingto each spouse in the proportion of the total refund that equalseach spouse's proportion of the total income determined undersection 290A.03, subdivision 3. In the case of a joint incometax refund under chapter 289A, the refund shall be considered asbelonging to each spouse in the proportion of the total refundthat equals each spouse's proportion of the total taxable incomedetermined under section 290.01, subdivision 29. Thecommissioner shall remit the entire refund to the claimantagency, which shall, upon the request of the spouse who does notowe the debt, determine the amount of the refund belonging tothat spouse and refund the amount to that spouse.
Sec. 12. Minnesota Statutes 1994, section 297E.02, subdivision4, is amended to read:
Subd. 4. [PULL-TAB AND TIPBOARD TAX.] (a) A tax is imposed onthe sale of each deal of pull-tabs and tipboards sold by adistributor. The rate of the tax is two percent of the idealgross of the pull-tab or tipboard deal. The sales tax imposed bychapter 297A on the sale of the pull-tabs and tipboards by thedistributor is imposed on the retail sales price less the taximposed by this subdivision. The retail sale of pull-tabs ortipboards by the organization is exempt from taxes imposed bychapter 297A and is exempt from all local taxes and license feesexcept a fee authorized under section 349.16, subdivision 8.
(b) The liability for the tax imposed by this section isincurred when the pull-tabs and tipboards are delivered by thedistributor to the customer or to a common or contract carrierfor delivery to the customer, or when received by the customer'sauthorized representative at the distributor's place of business,regardless of the distributor's method of accounting or the termsof the sale.
The tax imposed by this subdivision is imposed on all sales ofpull-tabs and tipboards, except the following:
(1) sales to the governing body of an Indian tribalorganization for use on an Indian reservation;
(2) sales to distributors licensed under the laws of anotherstate or of a province of Canada, as long as all statutory andregulatory requirements are met in the other state orprovince;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9891(3) sales of promotional tickets as defined in section 349.12;and
(4) pull-tabs and tipboards sold to an organization that sellspull-tabs and tipboards under the exemption from licensing insection 349.166, subdivision 2. A distributor shall require anorganization conducting exempt gambling to show proof of itsexempt status before making a tax-exempt sale of pull-tabs ortipboards to the organization. A distributor shall identify, onall reports submitted to the commissioner, all sales of pull-tabsand tipboards that are exempt from tax under this subdivision.
(c) A distributor having a liability of $120,000 or more duringa fiscal year ending June 30 must remit all liabilities in thesubsequent calendar year by a funds transfer as defined insection 336.4A-104, paragraph (a). The funds transfer paymentdate, as defined in section 336.4A-401, must be on or before thedate the tax is due. If the date the tax is due is not a fundstransfer business day, as defined in section 336.4A-105,paragraph (a), clause (4), the payment date must be on or beforethe funds transfer business day next following the date the taxis due.
(d) Any customer who purchases deals of pull-tabs ortipboards from a distributor may file an annual claim for arefund or credit of taxes paid pursuant to this subdivision forunsold pull-tab and tipboard tickets. The claim must be filedwith the commissioner on a form prescribed by the commissioner byMarch 20 of the year following the calendar year for which therefund is claimed. The refund must be filed as part of thecustomer's February monthly return. The refund or credit isequal to two percent of the face value of the unsold pull-tab ortipboard tickets. The refund claimed will be applied as a creditagainst tax owing under this chapter on the February monthlyreturn. If the refund claimed exceeds the tax owing on theFebruary monthly return, that amount will be refunded. Theamount refunded will bear interest pursuant to section 270.76from 90 days after the claim is filed.
Sec. 13. Minnesota Statutes 1994, section 297E.02, subdivision10, is amended to read:
Subd. 10. [REFUNDS; APPROPRIATION.] A person who has, underthis chapter, paid to the commissioner an amount of tax for aperiod in excess of the amount legally due for that period, mayfile with the commissioner a claim for a refund of the excess. The amount necessary to pay the refunds under this subdivisionand subdivision 4, paragraph (d), is appropriated from thegeneral fund to the commissioner.
Sec. 14. Minnesota Statutes 1994, section 298.17, is amendedto read:
298.17 [OCCUPATION TAXES TO BE APPORTIONED.]
All occupation taxes paid by persons, copartnerships,companies, joint stock companies, corporations, and associations,however or for whatever purpose organized, engaged in thebusiness of mining or producing iron ore or other ores, whencollected shall be apportioned and distributed in accordance withthe Constitution of the state of Minnesota, article X, section 3,in the manner following: 90 percent shall be deposited in thestate treasury and credited to the general fund of whichfour-ninths shall be used for the support of elementary andsecondary schools; and ten percent of the proceeds of the taximposed by this section shall be deposited in the state treasuryand credited to the general fund for the general support of theuniversity. Of the moneys apportioned to the general fund bythis section there is annually appropriated and credited to theiron range resources and rehabilitation board account in thespecial revenue fund an amount equal to that which would havebeen generated by a one 1.5 cent tax imposed bysection 298.24 on each taxable ton produced in the precedingcalendar year, to be expended for the purposes of section 298.22. The money appropriated pursuant to this section shall be used (1)to provide environmental development grants to local governmentslocated within any county in region 3 as defined in governor'sexecutive order number 60, issued on June 12, 1970, which doesnot contain a municipality qualifying pursuant to section 273.134or (2) to provide economic development loans or grants tobusinesses located within any such county, provided that thecounty board or an advisory group appointed by the county boardto provide recommendations on economic development shall makerecommendations to the iron range resources and rehabilitationboard regarding the loans. Payment to the iron range resourcesand rehabilitation board account shall be made by May 15annually.
Of the money allocated to Koochiching county, one-third mustbe paid to the small business development center/economicdevelopment office currently located at the Rainy River communitycollege for its operations.
Sec. 15. Minnesota Statutes 1994, section 298.75, subdivision1, is amended to read:
Subdivision 1. [DEFINITIONS.] Except as may otherwise beprovided, the following words, when used in this section, shallhave the meanings herein ascribed to them.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9892(1) "Aggregate material" shall mean nonmetallic natural mineralaggregate including, but not limited to sand, silica sand,gravel, building stone, crushed rock, limestone, and granite. Aggregate material shall not include dimension stone anddimension granite.
(2) "Person" shall mean any individual, firm, partnership,corporation, organization, trustee, association, orother entity.
(3) "Operator" shall mean any person engaged in the business ofremoving aggregate material from the surface or subsurface of thesoil, for the purpose of sale, either directly or indirectly,through the use of the aggregate material in a marketable productor service.
(4) "Extraction site" shall mean a pit, quarry, or depositcontaining aggregate material and any contiguous property to thepit, quarry, or deposit which is used by the operator forstockpiling the aggregate material.
(5) "Importer" shall mean any person who buys aggregatematerial produced from a county not listed in paragraph (6) oranother state and causes the aggregate material to be importedinto a county in this state which imposes a tax on aggregatematerial.
(6) "County" shall mean the counties of Stearns, Benton,Sherburne, Carver, Scott, Dakota, Le Sueur, Kittson, Marshall,Pennington, Red Lake, Polk, Norman, Mahnomen, Clay, Becker,Rock, Murray, Wilkin, Big Stone, Sibley, Hennepin,Washington, Chisago, and Ramsey.
Sec. 16. Minnesota Statutes 1994, section 349.15, is amendedby adding a subdivision to read:
Subd. 3. [REFUNDS AND CREDITS.] For purposes of thissection "gross profit" does not include any refund or creditreceived under section 297E.02, subdivision 4, paragraph(d).
Sec. 17. Minnesota Statutes 1994, section 349.154, subdivision2, is amended to read:
Subd. 2. [NET PROFIT REPORTS.] (a) Each licensed organizationmust report monthly to the board on a form prescribed by theboard each expenditure and contribution of net profits fromlawful gambling. The reports must provide for each expenditureor contribution:
(1) the name, address, and telephone number of the recipient ofthe expenditure or contribution;
(2) the date the contribution was approved by theorganization;
(3) the date, amount, and check number of the expenditure orcontribution;
(4) a brief description of how the expenditure or contributionmeets one or more of the purposes in section 349.12, subdivision25; and
(5) in the case of expenditures authorized under section349.12, subdivision 25, paragraph (a), clause (7), whether theexpenditure is for a facility or activity that primarily benefitsmale or female participants.
(b) The board shall make available to the commissioners ofrevenue and public safety copies of reports received under thissubdivision and requested by them.
(c) The report required under this subdivision must providefor a separate accounting for all expenditures from the reportingorganization's tax refund and credit account.
Sec. 18. Minnesota Statutes 1994, section 349.19, subdivision2, is amended to read:
Subd. 2. [ACCOUNTS.] Gross receipts from lawful gambling byeach organization must be segregated from all other revenues ofthe conducting organization and placed in a separate account. All expenditures for expenses, taxes, and lawful purposes must bemade from the separate account except (1) in the case ofexpenditures previously approved by the organization's membershipfor emergencies as defined by board rule, or (2) as providedin subdivision 2a. The name and address of the bank, theaccount number for the separate account, and the names oforganization members authorized as signatories on the separateaccount must be provided to the board when the application issubmitted. Changes in the information must be submitted to theboard at least ten days before the
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9893change is made. Gambling receipts must be deposited into thegambling bank account within four business days of completion ofthe bingo occasion, deal, or game from which they are received. A deal of pull-tabs is considered complete when either the lastpull-tab of the deal is sold or the organization does notcontinue the play of the deal during the next scheduled period oftime in which the organization will conduct pull-tabs. Atipboard game is considered complete when the seal on the gameflare is uncovered. Deposit records must be sufficient to allowdetermination of deposits made from each bingo occasion, deal, orgame at each permitted premises. The person who accounts forgambling gross receipts and profits may not be the same personwho accounts for other revenues of the organization.
Sec. 19. Minnesota Statutes 1994, section 349.19, is amendedby adding a subdivision to read:
Subd. 2a. [TAX REFUND AND CREDIT ACCOUNT.] (a) Eachorganization that receives a refund or credit under section297E.02, subdivision 4, paragraph (d), must establish a separateaccount designated as the tax and credit refund account. Theorganization must (1) within four business days of receiving arefund under that paragraph deposit the refund in the account,and (2) within four business days of filing a tax return thatclaims a credit under that paragraph, transfer from the separateaccount established under subdivision 2 to the tax refund andcredit account an amount equal to the tax credit.
(b) The name and address of the bank, the account number forthe tax refund and credit account, and the names of organizationmembers authorized as signatories on the account must be providedto the board within 30 days of the date when the organizationestablishes the account. Changes in the information must besubmitted to the board at least ten days before the change ismade.
(c) The organization may expend money in the account onlyfor lawful purposes, other than lawful purposes described insection 349.012, subdivision 25, paragraph (a), clauses (8), (9),and (12). Amounts in the account must be spent for qualifyinglawful purposes no later than one year after the refund isdeposited.
Sec. 20. Minnesota Statutes 1995 Supplement, section 473.39,subdivision 1b, is amended to read:
Subd. 1b. [OBLIGATIONS.] The council may also issuecertificates of indebtedness, bonds, or other obligations underthis section in an amount not exceeding $62,000,000, of which$44,000,000 may be used for council transit for andparatransit fleet replacement, transit and paratransitfacilities, and transit and paratransit capital equipment,and $18,000,000 may be used for transit hubs, park-and-ride lots,community-based transit vehicles and replacement service programvehicles, intelligent vehicle highway systems projects, and othercapital expenditures as prescribed in the council's transitcapital improvement program, and related costs including the costof issuance and sale of the obligations. For the purposes ofthis subdivision, uniforms are not capital expenditures.
Sec. 21. Minnesota Statutes 1994, section 473.39, is amendedby adding a subdivision to read:
Subd. 1c. [OBLIGATIONS; 1996-1998.] In addition tothe authority in subdivisions 1a and 1b, the council may issuecertificates of indebtedness, bonds, or other obligations underthis section in an amount not exceeding $20,500,000 which may beused for capital expenditures as prescribed in the council'stransit capital improvement program and for related costs,including the costs of issuance and sale of theobligations.
Sec. 22. Minnesota Statutes 1995 Supplement, section 501B.38,subdivision 1a, is amended to read:
Subd. 1a. [EXTENSIONS.] The information required by thissection must be filed annually on or before the 15th day of thefifth month following the close of the charitable trust's taxableyear as established for federal tax purposes. The time forfiling may be extended by application to the attorney general,but no extension may be for more than three for up tosix months, provided the applicant has requested anextension to file its federal tax return under section 6081 ofthe Internal Revenue Code of 1986. A charitable trust thatfiles the information required under this subdivision with theattorney general is not required to file the same informationwith the commissioner of revenue.
Sec. 23. [REPEAL OF TEMPORARY TAX ON FACILITY ADMISSIONS.]
Subdivision 1. [REPEAL.] Laws 1987, chapter 285, isrepealed.
Subd. 2. [EFFECTIVE DATE.] Subdivision 1 iseffective, without local approval, the day after its finalenactment.
Sec. 24. [APPLICABILITY.]
Sections 20 and 21 apply in the counties of Anoka, Carver,Dakota, Hennepin, Ramsey, Scott, and Washington.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9894Sec. 25. [EFFECTIVE DATE.]
Sections 1, 9, 20, and 21 are effective the day followingfinal enactment.
Sections 6 to 8 are effective for business transfers,acquisitions, successions, or dissolutions on or afterJanuary 1, 1995.
Section 10 is effective for refunds payable after July 31,1996.
Section 11 is effective for refunds remitted to claimantagencies on or after the day following final enactment.
Section 12 is effective for pull-tab and tipboard dealsreported as being played on or after July 1, 1996.
Section 15 is effective for Rock county the day aftercompliance by Rock county with the requirements of MinnesotaStatutes, section 645.021, subdivision 3. Section 15 iseffective for Chisago county the day after compliance by Chisagocounty with the requirements of Minnesota Statutes, section645.021, subdivision 3. Section 15 is effective for Murraycounty the day after compliance by Murray county with therequirements of Minnesota Statutes, section 645.021, subdivision3."
Correct internal references
Delete the title and insert:
"A bill for an act relating to the financing and operation ofgovernment in this state; modifying certain tax rates, credits,refunds, bases, and exemptions; modifying property tax valuationand classification; changing tax increment financing, specialservices district, and taxing district provisions; authorizinglocal taxes; authorizing certain special districts; providinglocal levy or other authority; providing for distribution ofproduction tax proceeds; providing for certain tax base sharing;changing certain aids; providing local performance aid; modifyingrevenue recapture; making tax policy, collection, administrativeand technical changes, corrections, and clarifications; modifyingcollection of fees; requiring studies; providing forappointments; appropriating money; amending Minnesota Statutes1994, sections amending Minnesota Statutes 1994, sections 10A.31,subdivision 3a; 13.99, subdivision 97a; 103E.611, subdivision 7;115.26, by adding a subdivision; 115A.919, by adding asubdivision; 115A.923, subdivision 1a; 165.08, subdivision 5;239.761, subdivision 5; 270.067, subdivision 2; 270.07,subdivision 1; 270.102, subdivisions 1, 2, and 3; 270.70,subdivision 2; 270A.03, subdivision 2; 273.02, subdivision 3;273.111, subdivision 3; 273.13, subdivisions 22 and 23; 273.1398,subdivision 4, and by adding a subdivision; 275.065, subdivision5a; 275.07, subdivision 4; 275.61; 278.01, by adding asubdivision; 278.08; 279.06, subdivision 1; 279.37, by adding asubdivision; 281.17; 287.06; 289A.39, subdivision 1; 289A.50, byadding a subdivision; 289A.56, subdivision 4; 290.01, subdivision4a; 290.06, subdivisions 2c and 22; 290.091, subdivision 2;290.0922, subdivisions 1 and 3; 290.095, subdivision 3; 290.17,subdivision 2; 290A.25; 295.50, subdivision 6; 295.51,subdivision 1, and by adding a subdivision; 295.52, by adding asubdivision; 295.54, subdivisions 1, 2, and by adding asubdivision; 296.01, subdivisions 2 and 13; 296.02, subdivision8, and by adding a subdivision; 296.025, subdivision 6; 296.141,subdivisions 4 and 5; 296.15, by adding a subdivision; 296.17,subdivision 7; 297.04, subdivision 9; 297A.14, by adding asubdivision; 297A.15, subdivisions 4, 5, and 6; 297A.21,subdivision 4; 297A.211, subdivisions 1 and 3; 297A.24,subdivision 1; 297A.25, subdivisions 14, 28, and 37; 297A.256,subdivision 1; 297A.2572; 297A.2573; 297A.44, subdivision 1;297A.46; 297E.02, subdivisions 4 and 10; 298.01, subdivision 4e;298.17; 298.28, subdivisions 2 and 6; 298.296, subdivision 2;298.75, subdivision 1; 349.15, by adding a subdivision; 349.154,subdivision 2; 349.19, subdivision 2, and by adding asubdivision; 375.192, subdivision 2; 383B.51; 428A.01,subdivisions 2 and 3; 428A.02, subdivision 1; 444.075, by addinga subdivision; 458A.32, subdivision 4; 469.040, by adding asubdivision; 469.167, subdivision 2; 469.173, subdivision 7;469.174, subdivision 2; 469.176, subdivision 4f; 469.1761,subdivision 1; 469.177, subdivision 3; 471.59, by adding asubdivision; 471.88, subdivision 14; 473.39, by adding asubdivision; 473.608, by adding a subdivision; 473.625; 477A.011,subdivisions 3, 20, 27, 32, and 35; Minnesota Statutes 1995Supplement, sections 16A.152, subdivision 2; 16A.67, subdivision5; 41A.09, subdivision 2a; 115B.48, by adding subdivisions;115B.49, subdivisions 2 and 4; 121.904, subdivision 4a; 124A.03,subdivision 2; 216B.161, subdivision 1; 270A.03, subdivision 7;273.11, subdivision 16; 273.124, subdivisions 1, 3, and 13;273.13, subdivision 25; 273.1398, subdivision 1; 273.1399,subdivisions 6 and 7; 275.065, subdivisions 3 and 6; 275.08,subdivision 1b; 276.04, subdivision 2; 289A.02, subdivision 7;289A.40, subdivision 1; 290.01, subdivisions 19 and 31; 290.191,subdivisions 5 and 6; 290A.04, subdivision 2h; 291.005,subdivision 1; 295.50, subdivisions 3 and 4; 295.53, subdivisions1 and 5; 296.02, subdivision 1; 296.025, subdivision 1; 296.12,subdivision 3; 297A.02, subdivision 4; 297A.25, subdivisions 57,59, and 61; 297A.45, subdivisions 2, 3, and 4; 297B.01,subdivision 8; 298.227; 298.24, subdivision 1; 298.28,subdivision 9a; 298.296, subdivision 4; 428A.05; 465.82,subdivision 2; 469.169, subdivisions 9 and 10; 469.174,subdivision 4; 469.175, subdivisions 1, 5, and 6; 469.176,subdivisions 2 and 7; 471.6965; 473.39,
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9895subdivision 1b; 473.448; 477A.0121, subdivision 4; 477A.0132;477A.03, subdivision 2; 501B.38, subdivision 1a; Laws 1963,chapter 118, sections 1, subdivision 3; 2; 4; and 6; Laws 1971,chapter 869, section 2, subdivisions 2, as amended; 14; and 17,as added; section 3, subdivisions 5, 6, and 9; section 4,subdivisions 1, 2, and 5, as amended; section 5, subdivisions 1and 3; section 8; section 10, subdivision 3b, as added; section12, subdivisions 1, as amended; and 2, as amended; section 17,subdivision 11; section 19; section 20, subdivision 2; section21; and section 24; Laws 1985, chapter 302, section 2,subdivision 1, as amended; Laws 1989, chapter 211, section 4,subdivision 1; Laws 1991, chapter 291, article 8, section 27; andLaws 1995, chapter 264, article 2, sections 42, subdivision 1;and 44; and article 5, sections 40, subdivision 1; 44,subdivision 4; and 45, subdivision 1; proposing coding for newlaw in Minnesota Statutes, chapters 103D; 115B; 276; 281; 287;290A; 297A; 298; 315; 375; 428A; and 477A; proposing coding fornew law as Minnesota Statutes, chapter 276A; repealing MinnesotaStatutes 1994, sections 13.99, subdivision 97; 273.1398,subdivision 5b; 290.06, subdivision 21; 290.092; 295.37; 295.39;295.40; 295.41; 295.42; 295.43; 295.50, subdivisions 8, 9, 9a,11, 12, and 12a; 296.25, subdivision 1a; 297A.14, subdivision 3;297A.24, subdivision 2; and 469.150; Laws 1971, chapter 869,section 6, subdivision 3; and Laws 1987, chapter 285."
H. F. No. 2102, as amended, was read for the third time.
Rest moved to lay H. F. No. 2102, as amended, on the table. The motion prevailed and H. F. No. 2102, as amended, was laid onthe table.
There being no objection, Kahn offered the following motion:
Kahn moved that H. F. No. 2218, as amended by Conference, berecalled from the Senate for further consideration by the House. The motion prevailed.
McCollum moved that rule 6.11 relating to Conference Committeesbe suspended. The motion prevailed.
The following Conference Committee Report was received:
A bill for an act proposing an amendment to the MinnesotaConstitution, article VIII, by adding a section; providing forrecall of elected state officers; amending Minnesota Statutes1994, section 200.01; proposing coding for new law as MinnesotaStatutes, chapter 211C.
April 2, 1996
The Honorable Irv Anderson
Speaker of the House of Representatives
The Honorable Allan H. Spear
President of the Senate
We, the undersigned conferees for H. F. No. 343, report that wehave agreed upon the items in dispute and recommend asfollows:
That the Senate recede from its amendment and that H. F. No.343 be further amended as follows:
Delete everything after the enacting clause and insert:
Section 1. [CONSTITUTIONAL AMENDMENT.]
An amendment to the Minnesota Constitution, amending articleVIII by adding a section, is proposed to the people. If theamendment to article VIII is adopted, the new section willread:
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9896Sec. 6. A member of the senate or the house ofrepresentatives, an executive officer of the state identified insection 1 of article V of the constitution, or a judge of thesupreme court, the court of appeals, or a district court issubject to recall from office by the voters. The grounds forrecall of a judge shall be established by the supreme court. Thegrounds for recall of an officer other than a judge are seriousmalfeasance or nonfeasance during the term of office in theperformance of the duties of the office or conviction during theterm of office of a serious crime. A petition for recall mustset forth the specific conduct that may warrant recall. Apetition may not be issued until the supreme court has determinedthat the facts alleged in the petition are true and aresufficient grounds for issuing a recall petition. A petitionmust be signed by a number of eligible voters who reside in thedistrict where the officer serves and who number not less than 25percent of the number of votes cast for the office at the mostrecent general election. Upon a determination by the secretaryof state that a petition has been signed by at least the minimumnumber of eligible voters, a recall election must be conducted inthe manner provided by law. A recall election may not occur lessthan six months before the end of the officer's term. An officerwho is removed from office by a recall election or who resignsfrom office after a petition for recall issues may not beappointed to fill the vacancy that is created.
Sec. 2. [SCHEDULE AND QUESTION.]
The amendment shall be submitted to the people at the 1996general election. The question submitted must be:
"Shall the Minnesota Constitution be amended to provide forrecall of elected state officers for wrongdoing?
Yes .......
No ........"
Section 1. Minnesota Statutes 1994, section 200.01, is amendedto read:
200.01 [CITATION, MINNESOTA ELECTION LAW.]
This chapter and chapters 201, 202A, 203B, 204B, 204C, 204D,205, 205A, 206, 208, 209, 211A, and 211B, and 211Cshall be known as the Minnesota election law.
Sec. 2. [211C.01] [DEFINITIONS.]
Subdivision 1. [APPLICATION.] The definitions inthis section and in chapter 200 apply to this chapter.
Subd. 2. [MALFEASANCE.] "Malfeasance" means theintentional commission of an unlawful or wrongful act by a stateofficer other than a judge in the performance of the officer'sduties that is substantially outside the scope of the authorityof the officer and that substantially infringes on the rights ofany person or entity.
Subd. 3. [NONFEASANCE.] "Nonfeasance" means theintentional, repeated failure of a state officer other than ajudge to perform specific acts that are required duties of theofficer.
Subd. 4. [SERIOUS CRIME.] (a) "Serious crime" meansa crime that is punished as a gross misdemeanor, as defined insection 609.02, and that involves assault, intentional injury orthreat of injury to person or public safety, dishonesty,stalking, aggravated driving while intoxicated, coercion,obstruction of justice, or the sale or possession ofcontrolled substances.
(b) "Serious crime" also means a crime that is punished as amisdemeanor, as defined in section 609.02, and that involvesassault, intentional injury or threat of injury to person orpublic safety, dishonesty, coercion, obstruction of justice, orthe sale or possession of controlled substances.
Subd. 5. [STATE OFFICER.] "State officer" means anindividual occupying an office subject to recall under theMinnesota Constitution, article VIII, section 6.
Sec. 3. [211C.02] [GROUNDS.]
The grounds for recall of a judge shall be established bythe supreme court. A state officer other than a judge may besubject to recall for serious malfeasance or nonfeasance duringthe term of office in the performance of the duties of the officeor conviction during the term of office for a seriouscrime.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9897Sec. 4. [211C.03] [PETITION FOR RECALL; FORM AND CONTENT.]
The secretary of state shall prescribe by rule the formrequired for a recall petition. Each page of the petition mustcontain the following information:
(1) the name and office held by the state officer who is thesubject of the recall petition and, in the case of arepresentative, senator, or district judge, the district numberin which the state officer serves;
(2) the specific grounds upon which the state officer issought to be recalled and a concise, accurate, and completesynopsis of the specific facts that are alleged to warrant recallon those grounds;
(3) a statement that a recall election, if conducted, willbe conducted at public expense;
(4) a statement that persons signing the petition:
(i) must be eligible voters residing within the districtwhere the state officer serves or, in the case of a statewideofficer, within the state;
(ii) must know the purpose and content of the petition;and
(iii) must sign of their own free will and may sign onlyonce; and
(5) a space for the signature and signature date; printedfirst, middle, and last name; residence address, includingmunicipality and county; and data of birth of each signer.
The secretary of state shall make available sample recallpetition forms upon request.
Sec. 5. [211C.04] [PROPOSED PETITION; SUBMITTAL.]
A petition to recall a state officer may be proposed by 25or more persons, who must be eligible to sign and shall sign theproposed petition for the recall of the officer. The personssubmitting the petition must designate in writing no more thanthree individuals among them to represent all petitioners inmatters relating to the recall. The proposed petition must besubmitted to the secretary of state in the manner and formrequired by the secretary of state and be accompanied by a fee of$100. After the secretary of state issues a petition to recall astate officer under section 211C.06, the secretary of state maynot accept a proposed petition to recall the same officer untileither the earlier petition is dismissed by the secretary ofstate for a deficiency of signatures under section 211C.06, orthe recall election brought about by the earlier petition resultsin the officer retaining the office. Upon receiving a proposedpetition that satisfies the requirements of this section, thesecretary of state shall immediately notify in writing the stateofficer named and forward the proposed petition to the clerk ofthe appellate courts for action under section 211C.05.
Sec. 6. [211C.05] [SUPREME COURT REVIEW OF PROPOSEDPETITION.]
Subdivision 1. [ASSIGNMENT FOR HEARING.] Uponreceiving a proposed petition from the secretary of state, theclerk of the appellate courts shall submit it immediately to thechief justice of the supreme court, or, if the chief justice isthe subject of the proposed petition, to the most seniorassociate justice of the supreme court. The persons proposingthe petition shall provide to the reviewing judge any materialssupporting the petition. The officer who is named in theproposed petition may submit materials in opposition. Thejustice, or a designee if the justice has a conflict of interestor is unable to conduct the review in a timely manner, shallreview the proposed petition to determine whether it allegesspecific facts that, if proven, would constitute grounds forrecall of the officer under the Minnesota Constitution, articleVIII, section 6, and section 211C.02. If it does not, thejustice shall immediately issue an order dismissing the petitionand indicating the reason for dismissal. If the proposedpetition does allege specific facts that, if proven, wouldconstitute grounds for recall, the justice shall assign the caseto a special master for a public hearing. The special mastermust be an active or retired judge. The justice shall completethe review under this section and dismiss the proposed petitionor assign the case for hearing within ten days.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9898Subd. 2. [HEARING; REPORT.] A public hearing on theallegations of a proposed petition must be held within 21 daysafter issuance of the order of the justice assigning the case toa special master. The special master shall report to the courtwithin seven days after the end of the public hearing. In thereport, the special master shall determine:
(1) whether the persons proposing the petition have shown bya preponderance of the evidence that the factual allegationssupporting the petition are true; and
(2) if so, whether the persons proposing the petition haveshown that the facts found to be true are sufficient grounds forissuing a recall petition.
If the special master determines that these standards havebeen met, the report must include a statement of the specificfacts and grounds for the recall petition.
Subd. 3. [SUPREME COURT; DECISION.] The supremecourt shall review the report of the special master and make adecision on the petition within 20 days. If the court decidesthat the standard expressed in subdivision 2 has not been met,the court shall dismiss the petition. If the court decides thatthe standard for decision expressed in subdivision 2 has beenmet, the court shall prescribe, by order to the secretary ofstate, the statement of the specific facts and grounds that mustappear on the petition for recall issued under section 211C.06.If the court dismisses a petition under this section because thepersons proposing the petition have acted in bad faith inviolation of section 211C.09, the court may assess the personsproposing the petition for reasonable costs of conductingthe proceeding.
Sec. 7. [211C.06] [ISSUING, CIRCULATING, AND VERIFYINGPETITION.]
Upon receipt of the order from the supreme court, thesecretary of state shall issue a recall petition. When therequired number of signatures on the petition have been secured,the petition may be filed with the secretary of state. Thepetition must be filed within 90 days after the date of issuance. Upon the filing of the petition, the secretary of state shallverify the number and eligibility of signers in the mannerprovided by the secretary of state. If the secretary of statedetermines that a petition has been signed by a sufficient numberof eligible voters, the secretary of state shall certify thepetition and immediately notify in writing the governor, thepetitioners, and the state officer named in the petition. If thepetition is not signed by a sufficient number of eligible voters,the secretary of state shall dismiss the petition.
Sec. 8. [211C.07] [GOVERNOR; WRIT OF ELECTION; ELECTION.]
Within five days of receiving certification of a petitionunder section 211C.06, the governor shall issue a writ callingfor a recall election, unless the election cannot be held beforethe deadline specified in the Minnesota Constitution, articleVIII, section 6. A recall election must be conducted, and theresults canvassed and returned, in the manner provided by law forthe state general election.
Sec. 9. [211C.08] [ELECTION RESULT; REMOVAL FROM OFFICE.]
If a majority of the votes cast in a recall election favorthe removal of the state officer, upon certification of thatresult the state officer is removed from office and the office isvacant.
Sec. 10. [211C.09] [RECALL PETITION; CORRUPT PRACTICES.]
A person proposing a petition may not allege any materialfact in support of the petition that the person knows is false orhas alleged with reckless disregard of whether it is false. Aperson may not intentionally make any false entry on a petitionor aid, abet, counsel, or procure another to do so. A person maynot use threat, intimidation, coercion, or other corrupt means tointerfere or attempt to interfere with the right of any eligiblevoter to sign or not to sign a recall petition of their own freewill. A person may not, for any consideration, compensation,gift, reward, or thing of value or promise thereof, sign or notsign a recall petition.
The supreme court may dismiss a proposed petition forviolation of this section. Notwithstanding section 645.241, thesole remedy for a violation of this section is dismissed of thepetition by the supreme court.
Sec. 11. [EFFECTIVE DATE.]
Article 2 is effective upon ratification of theconstitutional amendment in article 1."
We request adoption of this report and repassage of thebill.
House Conferees: Betty McCollum, Thomas Pugh and TimPawlenty.
Senate Conferees: Ember D. Reichgott Junge, Randy C. Kelly andDallas C. Sams.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9899McCollum moved that the report of the Conference Committee onH. F. No. 343 be adopted and that the bill be repassed as amendedby the Conference Committee. The motion prevailed.
H. F. No. 343, A bill for an act proposing an amendment to theMinnesota Constitution, article VIII, by adding a section;providing for recall of elected state officers; amendingMinnesota Statutes 1994, section 200.01; proposing coding for newlaw as Minnesota Statutes, chapter 211C.
The bill was read for the third time, as amended by Conference,and placed upon its repassage.
The question was taken on the repassage of the bill and theroll was called.
Carruthers moved that those not voting be excused from voting. The motion prevailed.
There were 122 yeas and 8 nays as follows:
Those who voted in the affirmative were:
Abrams Frerichs Knoblach Ness SolbergAnderson, B. Garcia Koppendrayer Olson, E. StanekAnderson, R. Girard Kraus Olson, M. SviggumBertram Goodno Krinkie Onnen Swenson, D.Bettermann Greenfield Larsen Opatz Swenson, H.Bishop Greiling Leighton Orenstein SykoraBoudreau Gunther Leppik Osskopp TrimbleBradley Haas Lieder Osthoff TumaBroecker Hackbarth Lindner Ostrom TunheimCarlson, L. Harder Long Otremba Van DellenCarlson, S. Hasskamp Lourey Ozment Van EngenCarruthers Hausman Luther Paulsen VickermanClark Holsten Lynch Pawlenty WageniusCommers Huntley Macklin Pellow WarkentinCooper Jefferson Mahon Perlt WeaverDaggett Jennings Mares Peterson WejcmanDauner Johnson, A. Mariani Pugh WenzelDehler Johnson, R. Marko Rest WinterDelmont Johnson, V. McCollum Rhodes WolfDempsey Kahn McElroy Rice WorkeDorn Kalis McGuire Rostberg WorkmanEntenza Kelley Milbert Sarna Sp.Anderson,IErhardt Kelso Molnau Schumacher Farrell Kinkel Mulder Seagren Finseth Knight Murphy SmithThose who voted in the negative were:
Bakk Dawkins Munger Rukavina Davids Jaros Orfield TomassoniThe bill was repassed, as amended by Conference, and its title agreedto.
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce that the Senate has concurred in and adoptedthe report of the Conference Committee on:
S. F. No. 2702.
The Senate has repassed said bill in accordance with therecommendation and report of the Conference Committee. SaidSenate File is herewith transmitted to the House.
Patrick E. Flahaven, Secretary of the Senate
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9900A bill for an act relating to transportation; appropriatingmoney for transportation purposes.
March 30, 1996
The Honorable Allan H. Spear
President of the Senate
The Honorable Irv Anderson
Speaker of the House of Representatives
We, the undersigned conferees for S. F. No. 2702, report thatwe have agreed upon the items in dispute and recommend asfollows:
That the House recede from its amendments and that S. F. No.2702 be further amended as follows:
Delete everything after the enacting clause and insert:
Section 1. [TRANSPORTATION AND OTHER AGENCIESAPPROPRIATIONS.]
The sums in the columns headed "APPROPRIATIONS" areappropriated from the general fund, or another named fund, to theagencies and for the purposes specified, and are added toappropriations for the fiscal years ending June 30, 1996, andJune 30, 1997, in Laws 1995, chapter 265, or other named law.
1996 1997
General Fund $.,...,-0-,...$ 7,640,000
Highway User Tax Distribution Fund .,...,-0-,...160,000
Trunk Highway Fund 9,687,00042,760,000
County State Aid Fund .,...,-0-,...100,000
Sec. 2. DEPARTMENT OF TRANSPORTATION 9,687,00043,290,000
(a) State Road Construction
9,687,000 35,513,000
The appropriations for fiscal years1996 and 1997 are from the trunkhighway fund for state roadconstruction and are added to theappropriations in Laws 1995, chapter265, article 2, section 2,subdivision 7, clause (a).
(b) Design Engineering andConstruction Engineering
6,267,000
This appropriation for fiscal year1997 is from the trunk highway fundfor design engineering andconstruction engineering and is addedto the appropriations in Laws 1995,chapter 265, article 2, section 2,subdivision 7, clauses (d) and (e),as needed.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 99011996 1997
For the purpose of Laws 1995, chapter254, article 1, section 93, paragraph(a), "contracts for highwayconstruction or maintenance" includescontracts for design engineering andconstruction engineering.
(c) Greater Minnesota TransitAssistance
1,000,000
This appropriation for fiscal year1997 is for greater Minnesota transitassistance and is added to theappropriation in Laws 1995, chapter265, article 2, section 2,subdivision 3, clause (a). Anyunencumbered balance in that clausefor fiscal year 1996 does not cancelbut is available for the secondyear.
(d) General Management
200,000
$200,000 is appropriated from thegeneral fund for the purpose ofconvening a telecommuting communitydialogue process to gatherinformation on existingtelecommunication systems, conductpublic opinion polls via theInternet, and develop recommendationson improving the integration andcoordination of telecommunicationsystems. The department shall reportfindings and recommendations to thelegislature by February 15, 1997. This appropriation is available onreceipt by the commissioner of$100,000 of matching contributions ofmoney from nonstate sources.
(e) Shingobee Road
100,000
$100,000 is appropriated from thetown road account in the countystate-aid highway fund before theapportionment otherwise required tobe made under Minnesota Statutes,section 162.081, subdivisions 2 and3, for the purpose of making a grantto the town of Shingobee in Casscounty to improve the Ah-Gwah-Chingcutoff road. The appropriation isavailable if the commissionerdetermines that the Shingobee townboard has made a commitment toestablish the road as a town roadupon completion of theimprovement.
(f) Stone Arch Bridge
110,000
The appropriation is for the repairof the Stone Arch Bridge.
(g) Driver Education Programs
100,000
This appropriation is for a grant tothe Minnesota highway safety centerat St. Cloud State University fordriver education programs.
Sec. 3. METROPOLITAN COUNCIL 6,000,000
This appropriation for fiscal year1997 is for metropolitan transitoperations and is added to theappropriation in Laws 1995,chapter 265, article 2, section 3.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 99021996 1997
Notwithstanding the limit on spendingfor metro mobility in Laws 1995,chapter 265, article 2, section 3,the metropolitan council may spend upto $1,600,000 of this appropriationfor metro mobility.
Of this appropriation, the councilmay spend up to $625,000 in fiscalyear 1997 to implement the high-speedbus demonstration project authorizedin Laws 1995, chapter 265, article 2,section 3.
Sec. 4. DEPARTMENT OF PUBLIC SAFETY 1,370,000
Summary by Fund
General..,-0-,... 230,000
Trunk Highway..,-0-,...980,000
Highway User Tax
Distribution Fund ..,-0-,...160,000
(a) State Patrol
150,000
Of this appropriation, $150,000 isfrom the trunk highway fund for fouradditional radio communicationoperators.
(b) Driver and Vehicle Services
336,000
$14,000 from the highway user taxdistribution fund and $65,000 fromthe trunk highway fund are for costsrelated to the implementation ofMinnesota Statutes, section168.042.
$113,000 is from the highway user taxdistribution fund and is added to theappropriations in Laws 1995, chapter265, article 2, section 5,subdivision 4. This appropriation isfor costs related to driver's licenseand motor vehicle registrationrecords and is available only to theextent required to comply with a laweffective during fiscal year 1997that substantially changes the dataprivacy status of these records.
$111,000 is from the general fund toimplement Minnesota Statutes, section171.07, subdivision 11.
$33,000 is from the highway user taxdistribution fund for programmingcosts related to registration taxrefunds for rental motor vehicles.
(c) Administration and RelatedServices
884,000
This appropriation for fiscal year1997 is added to the appropriationsin Laws 1995, chapter 265, article 2,section 5, subdivision 2.
This appropriation is for agencycritical operations systems. Of thisappropriation, $765,000 is from thetrunk highway fund.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9903(d) Critical Habitat Matching
The commissioner of public safetyshall determine whether the feescollected under Minnesota Statutes,section 168.1296, for criticalhabitat license plates have beensufficient to cover the costs ofhandling and manufacturing thelicense plates during the bienniumending June 30, 1997. If the feeshave been deficient, the amount ofthe deficiency is appropriated fromthe Minnesota critical habitatprivate sector matching account inthe reinvest in Minnesota resourcesfund for transfer to the highway usertax distribution fund.
Sec. 5. Minnesota Statutes 1994, section 169.14, subdivision2, is amended to read:
Subd. 2. [SPEED LIMITS.] (a) Where no special hazard existsthe following speeds shall be lawful, but any speeds in excess ofsuch limits shall be prima facie evidence that the speed is notreasonable or prudent and that it is unlawful; except that thespeed limit within any municipality shall be a maximum limit andany speed in excess thereof shall be unlawful:
(1) 30 miles per hour in an urban district;
(2) 65 miles per hour in other locations during thedaytime on freeways and expressways, as defined insection 160.02, subdivision 16, outside the limits of anyurbanized area with a population of greater than 50,000 asdefined by order of the commissioner of transportation;
(3) 55 miles per hour in such other locations duringthe nighttime other than those specified in thissection;
(4) ten miles per hour in alleys; and
(5) 25 miles per hour in residential roadways if adopted by theroad authority having jurisdiction over the residentialroadway.
(b) A speed limit adopted under paragraph (a), clause (5), isnot effective unless the road authority has erected signsdesignating the speed limit and indicating the beginning and endof the residential roadway on which the speed limit applies.
(c) "Daytime" means from a half hour before sunrise to ahalf hour after sunset, except at any time when due to weather orother conditions there is not sufficient light to render clearlydiscernible persons and vehicles at a distance of 500 feet. "Nighttime" means at any other hour or at any time when due toweather or other conditions there is not sufficient light torender clearly discernible persons and vehicles at a distance of500 feet.
Sec. 6. Minnesota Statutes 1994, section 169.14, is amended byadding a subdivision to read:
Subd. 4a. [ESTABLISHMENT OF SPEEDS ON HIGHWAYS.]Notwithstanding subdivision 4, the commissioner may by orderdesignate a maximum lawful speed for freeways and expressways, asdefined in section 160.02, subdivision 16, with or without anengineering and traffic investigation. The order may apply toall such highways or to specific highways identified in theorder.
Sec. 7. Minnesota Statutes 1994, section 169.983, is amendedto read:
169.983 [SPEEDING VIOLATIONS; CREDIT CARD PAYMENT OF FINES.]
The officer who issues a citation for a violation by a personwho does not reside in Minnesota of section 169.14or 169.141 shall give the defendant the option to pleadguilty to the violation upon issuance of the citation and to paythe fine to the issuing officer with a credit card.
The commissioner of public safety shall adopt rules toimplement this section, including specifying the types of creditcards that may be used.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9904Sec. 7. Minnesota Statutes 1994, section 169.99, subdivision1b, is amended to read:
Subd. 1b. [SPEED.] The uniform traffic ticket must provide ablank or space wherein an officer who issues a citation for aviolation of section 169.141 169.14, subdivision 2,paragraph (a), clause (3), must specify whether the speed wasgreater than ten miles per hour in excess of the lawfulspeed designated under that section.
Sec. 8. Minnesota Statutes 1994, section 171.12, subdivision6, is amended to read:
Subd. 6. [CERTAIN CONVICTIONS NOT RECORDED.] The departmentshall not keep on the record of a driver any conviction for aviolation of section 169.141 169.14, subdivision 2,paragraph (a), clause (3), unless the violation consisted ofa speed greater than ten miles per hour in excess of the lawfulspeed designated under that section.
Sec. 9. [DRIVER'S LICENSE FEES; DEPOSIT IN GENERAL FUND.]
Notwithstanding Minnesota Statutes, section 171.26, up to$100,000 in revenues received under Minnesota Statutes, chapter171, in fiscal year 1997 shall be deposited in the general fund. This deposit is in addition to any deposit of revenue in thegeneral fund under Minnesota Statutes, section 171.07,subdivision 11.
Sec. 10. [REPEALER.]
Minnesota Statutes 1994, section 169.141, is repealed. Anyorder issued under that section is void.
Sec. 11. [EFFECTIVE DATE.]
(a) Any provision making an appropriation for fiscal year1996 is effective the day following final enactment.
(b) Section 10 is effective July 1, 1996.
(c) Sections 5 to 9 and 11 are effective May 1, 1996.
Section 1. The sums in the column under "APPROPRIATIONS" areappropriated from the trunk highway fund to the state agencies orofficials indicated, to be spent to acquire and to better publicland and buildings and other public improvements of a capitalnature, as specified in this article.
APPROPRIATIONS
Sec. 2. FACILITY PROJECTS 21,639,000
This appropriation is from the trunkhighway fund to the commissioner oftransportation for the purposesspecified in paragraphs (a) and (b).
(a) Trunk Highway Facility Projects 20,454,000
(1) For construction documents,construction, furnishing, andequipping of Bemidji headquartersbuilding to replace the existingfacility. The new facility willhouse the district staff, supportservices, design, construction,right-of-way, materials engineering,maintenance, radio shop, inventorycenter, vehicle maintenance,
vehicle storage, bridge maintenance, and building services 9,000,000
(2) Repair, replace, construct, ordevelop additions to chemical andsalt storage buildings at 29department of transportationlocations
statewide 1,000,000
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9905(3) For schematic design, designdevelopment, construction documents,construction, furnishing, andequipping of an addition
to the Rochester district office and state patrol center 1,260,000
(4) Construct, furnish, and equip anew equipment storage building
on a new site in Pipestone to replace the existing facility 520,000
(5) Construct, furnish, and equip anew equipment storage building on anew site in Deer Lake to combine andreplace existing
operations at Togo and Effie 644,000
(6) Construct, furnish, and equip anew equipment storage building
on a new site in Rushford to replace the existing facility 663,000
(7) For construction documents,construction, furnishing, andequipping of an addition to thecentral services building at Fort
Snelling for heated storage 855,000
(8) Schematic design, designdevelopment, and constructiondocuments for projects at Duluth, St.Cloud, Jordan, Fort Snelling,
Golden Valley, and a new record building 677,000
(9) Design, construction, equipping,and furnishing of an addition
to the Garrison truck station and related improvements 206,000
(10) For construction documents,construction, furnishing, and
equipping of an addition to the Hastings truck station 1,362,000
(11) Construct, furnish, and equip anew equipment storage building
on a new site in Gaylord to replace the existing facility 680,000
(12) Remove asbestos from variousdepartment of transportation
buildings statewide 200,000
(13) Construct, furnish, and equip anew equipment storage building on anew site in Hibbing to replace theexisting facility. Minnesota
Statutes, section 16B.33, does not apply to this project 1,237,000
(14) Design, construction, equipping,and furnishing of an addition
to the Long Prairie truck station and related improvements 215,000
(15) Design, construction, equipping,and furnishing of an addition
to the Forest Lake truck station and related improvements 451,000
(16) Design, construction, equipping,and furnishing of an addition
to the Erskine truck station and related improvements 300,000
(17) Design, construction, equipping,and furnishing of an addition
to the Dilworth truck station and related improvements 514,000
(18) Construct, furnish, and equipclass II safety rest areas in
Fillmore county, Cook county, and Kanabec county 120,000
(19)Construct pole-type storagebuildings at department of
transportation locations throughout the state 350,000
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9906(20) Land acquisition at FortSnelling next to the central servicescomplex when it is made available assurplus property by the
federal government 200,000
(21) Clauses (1) to (19) are exemptfrom the requirements of MinnesotaStatutes, section 16B.335.
(b) Public Safety Project 1,185,000
$1,185,000 is appropriated from thetrunk highway fund for capitalimprovements to license examstations, grounds, and facilities atArden Hills, Eagan, and Plymouth.
Sec. 3. [DESIGN-BUILD METHOD OF CONSTRUCTION.]
Beginning with the capital budget projects approved by lawin 1996, the commissioner of administration or the commissionerof transportation may use a design-build method of projectdevelopment and construction for projects to construct newvehicle and equipment storage or maintenance facilities."Design-build method of project development and construction"means a project delivery system in which a single contractor isresponsible for both the design and the construction of theproject. The commissioner of administration or the commissionerof transportation may select the projects that will beconstructed using the design-build method. Minnesota Statutes,section 16B.33, does not apply to the projects selected. Thecommissioners are requested to report to the legislature on theuse of the design-build method, including comparative costanalysis, quality of product obtained, advantages anddisadvantages of using this method, and the commissioners'recommendations for further use of thedesign-build method.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 to 3 are effective July 1, 1996.
Section 1. Minnesota Statutes 1994, section 115A.9651,subdivision 1, is amended to read:
Subdivision 1. [PROHIBITION.] (a) Except as provided inparagraph (d), no person may distribute for sale or use inthis state any ink, dye, pigment, paint, or fungicidemanufactured after September 1, 1994, into which lead, cadmium,mercury, or hexavalent chromium has been intentionallyintroduced.
(b) For the purposes of this subdivision, "intentionallyintroduce" means to deliberately use a metal listed in paragraph(a) as an element during manufacture or distribution of an itemlisted in paragraph (a). Intentional introduction does notinclude the incidental presence of any of the prohibitedelements.
(c) The concentration of a listed metal in an item listed inparagraph (a) may not exceed 100 parts per million.
(d) The prohibition on the use of lead in substancesutilized in marking road, street, highway, and bridge pavementsdoes not take effect until July 1, 1998.
Sec. 2. Minnesota Statutes 1994, section 160.83, is amended byadding a subdivision to read:
Subd. 5. [LIABILITY.] A rustic road may bemaintained at a level less than the minimum standards requiredfor state-aid highways, roads, and streets, but must bemaintained at the level required to serve anticipated trafficvolumes. Where a road has been designated by resolution as arustic road and speed limits have been posted under subdivision1, the road authority with jurisdiction over the road, and itsofficers and employees, are exempt from liability for any tortclaim for injury to person or property arising from travel on therustic road related to its maintenance, design, or conditionif:
(1) the maintenance, design, or condition is consistent withthe anticipated use as described in subdivision 2; and
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9907(2) the maintenance, design, or condition is not grosslynegligent.
Nothing in this subdivision exempts a road authority fromits duty to maintain bridges under chapter 165 or otherapplicable law.
Sec. 3. Minnesota Statutes 1994, section 160.85, is amended byadding a subdivision to read:
Subd. 3a. [INFORMATION MEETING.] Before approving ordenying a development agreement, the commissioner shall hold apublic information meeting in any municipality or county in whichany portion of the proposed toll facility runs. The commissionershall determine the time and place of the informationmeeting.
Sec. 4. Minnesota Statutes 1994, section 161.085, is amendedto read:
161.085 [APPROPRIATION FROM TURNBACK ACCOUNTS.]
Moneys in the county turnback account and the municipalturnback account are hereby appropriated annually to thecommissioner of transportation for the purposes of carrying outthe terms of sections 161.081 to 161.086161.084.
Sec. 5. [161.139] [HIGHWAY DESIGNATION COSTS.]
The commissioner shall not adopt a design or erect a sign tomark or memorialize a highway or bridge, pursuant to designationby the legislature on or after January 1, 1996, unless thecommissioner is assured of the availability of funds fromnonstate sources sufficient to pay all costs related todesigning, erecting, and maintaining the signs.
Sec. 6. Minnesota Statutes 1994, section 161.14, is amended byadding a subdivision to read:
Subd. 32. [VICTORY DRIVE.] Marked trunk highway No.22, from its intersection with marked trunk highways Nos. 14 and60 in the city of Mankato to its intersection with marked trunkhighway No. 30 in the city of Mapleton, is designated "VictoryDrive." The commissioner of transportation shall adopt asuitable design for marking this highway and shall erectappropriate signs at locations the commissioner determines. Thepeople of the community, having resolved to support andfinancially back the marking of this highway, shall reimburse thedepartment for costs incurred in marking and memorializing thishighway.
Sec. 7. Minnesota Statutes 1994, section 161.14, is amended byadding a subdivision to read:
Subd. 33. [VETERANS MEMORIAL HIGHWAY.] Marked trunkhighway No. 15, from its intersection with marked trunk highwayNo. 60 to its intersection with the Iowa border, is designated"Veterans Memorial Highway." The commissioner of transportationshall adopt a suitable design for marking this highway and shallerect appropriate signs at locations the commissioner determines. The people of the community, having resolved to support andfinancially back the marking of this highway, shall reimburse thedepartment for costs incurred in marking and memorializing thishighway.
Sec. 8. Minnesota Statutes 1994, section 161.14, is amended byadding a subdivision to read:
Subd. 34. [DALE WAYRYNEN MEMORIAL HIGHWAY.] Thatsegment of marked trunk highway No. 210 located within Aitkincounty is designated "Dale Wayrynen Memorial Highway." Thecommissioner of transportation shall erect appropriate signsafter adopting a marking design for the signs, which suitablycommemorates Dale Wayrynen, posthumous recipient of theCongressional Medal of Honor, for heroism displayed during theVietnam War. The people of the community, having resolved tosupport and financially back the marking of this highway, shallreimburse the department for costs incurred in marking andmemorializing this highway.
Sec. 9. Minnesota Statutes 1994, section 161.36, subdivision1, is amended to read:
Subdivision 1. [COMMISSIONER TO COOPERATE WITH THE U.S.GOVERNMENT.] The commissioner may cooperate with the governmentof the United States and any agency or department thereof in theconstruction, improvement, enhancement, and maintenance ofroads and bridges transportation in the state ofMinnesota and may comply with the provisions of the laws of theUnited States and any rules and regulations madethereunder for the expenditure of federal moneys upon suchroads and bridges.
Sec. 10. Minnesota Statutes 1994, section 161.36, subdivision2, is amended to read:
Subd. 2. [FEDERAL AID, ACCEPTANCE; COMMISSIONER AS AGENT.] Thecommissioner may accept federal moneys and other moneys, eitherpublic or private, for and in behalf of the state of Minnesota orany governmental subdivision thereof, or any nonpublicorganization, for the construction, improvement,enhancement, or maintenance of roads and bridgestransportation upon such terms and conditions as are ormay be prescribed by the laws of the United States and anyrules or regulations made thereunder, and is authorized toact as an agent of any that governmentalsubdivision of the state of Minnesota or nonpublicorganization upon the its request of suchsubdivision in accepting the moneys in its behalf for roador bridge transportation purposes, in acquiringright-of-way therefor, and in contracting for the construction,improvement, enhancement, or maintenance of roads orbridges transportation financed either in whole or inpart by federal moneys. The governing body of any suchsubdivision or nonpublic organization is authorized todesignate the commissioner as its agent for such purposes and toenter into an agreement with the commissioner prescribing theterms and conditions of the agency in accordance herewith andwith federal laws, rules and regulations.
Sec. 11. Minnesota Statutes 1994, section 161.36, subdivision3, is amended to read:
Subd. 3. [COMMISSIONER AS AGENT IN CERTAIN CASES.] Thecommissioner may act as the agent of any political subdivision ofthe state, or any nonpublic organization, as providedherein, for the construction of roads and bridgestransportation toward the construction of which no federalaid is available in the event that the construction adjoins, isconnected, or in the judgment of the commissioner can be best andmost economically performed in connection with construction uponwhich federal aid is available and upon which the commissioner isthen acting as agent.
Sec. 12. Minnesota Statutes 1994, section 161.36, subdivision4, is amended to read:
Subd. 4. [STATE LAWS TO GOVERN.] All contracts for theconstruction, improvement, enhancement, or maintenance ofroads or bridges transportation made by thecommissioner as the agent of any governmental subdivision, orany nonpublic organization, shall be made pursuant to thelaws of the state of Minnesota governing the making ofcontracts for the construction, improvement, enhancement,and maintenance of roads and bridges transportationon the trunk highway system of the state; provided, where theconstruction, improvement, enhancement, or maintenance ofany road or bridge transportation is financedwholly with federal moneys, the commissioner as the agent ofany the governmental subdivision or nonpublicorganization may let contracts in the manner prescribed bythe federal authorities acting under the laws of the UnitedStates and any rules or regulations made thereunder,notwithstanding any state law to the contrary.
Sec. 13. Minnesota Statutes 1994, section 161.46, subdivision3, is amended to read:
Subd. 3. [LUMP SUM SETTLEMENTS.] The commissioner may enterinto agreements with a utility for the relocation of utilityfacilities providing for the payment by the state of a lump sumbased on the estimated cost of relocation when the lump sum soagreed upon does not exceed $25,000 $100,000.
Sec. 14. Minnesota Statutes 1994, section 161.53, is amendedto read:
161.53 [RESEARCH ACTIVITIES.]
The commissioner may set aside for transportationresearch in each fiscal year up to one twopercent of the total amount of all funds appropriated to thecommissioner other than county state-aid and municipal state-aidhighway funds for transportation research including public andprivate research partnerships. The commissioner shall spendthis money for (1) research to improve the design, construction,maintenance, management, and environmental compatibility oftransportation systems; (2) research on transportation policiesthat enhance energy efficiency and economic development; (3)programs for implementing and monitoring research results; and(4) development of transportation education and outreachactivities. Of all funds appropriated to the commissioner otherthan state-aid funds, the commissioner shall spend 0.1 percent,but not exceeding $800,000 in any fiscal year, for research andrelated activities performed by the center for transportationstudies of the University of Minnesota. The center shallestablish a technology transfer and training center for Minnesotatransportation professionals.
Sec. 15. Minnesota Statutes 1994, section 162.08, subdivision4, is amended to read:
Subd. 4. [PURPOSES; OTHER USES OF MUNICIPAL ACCOUNTALLOCATION.] (a) Except as provided in subdivision3, money so apportioned and allocated to each county shallbe used for aid in the establishment, location, construction,reconstruction, improvement, and maintenance of the countystate-aid highway system within each
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9909county, including the expense of sidewalks,commissioner-approved signals and safety devices on countystate-aid highways, and systems that permit an emergency vehicleoperator to activate a green traffic signal for the emergencyvehicle; provided, that in the event of hardship, or in the eventthat the county state-aid highway system of any county isimproved to the standards set forth in the commissioner's rules,a portion of the money apportioned other than the money allocatedfor expenditures within cities having a population of less than5,000, may be used on other roads within the county with theconsent and in accordance with the commissioner's rules.
(b) If the portion of the county state-aid highwaysystem lying within cities having a population of less than 5,000is improved to the standard set forth in the commissioner'srules, a portion of the money credited to the municipal accountmay be used on other county highways or other streets lyingwithin such cities. Upon the authorization of the commissioner,a county may expend accumulated municipal account funds on countystate-aid highways within the county outside of cities having apopulation of less than 5,000. The commissioner shall authorizethe expenditure if:
(a) (1) the county submits a written request tothe commissioner and holds a hearing within 30 days of therequest to receive and consider any objections by the governingbodies of cities within the county having a population of lessthan 5,000; and
(b) (2) no written objection is filed with thecommissioner by any such city within 14 days of that hearing asprovided in this subdivision.
The county shall notify all of the cities of the public hearingby certified mail and shall notify the commissioner in writing ofthe results of the hearing and any objections to the use of thefunds as requested by the county.
(c) If, within 14 days of the hearing under paragraph(b), a city having a population of less than 5,000 files awritten objection with the commissioner identifying a specificcounty state-aid highway within the city which is requested forimprovement, the commissioner shall investigate the nature of therequested improvement. Notwithstanding paragraph (b)clause (b) (2), the commissioner may authorize theexpenditure requested by the county if:
(1) the identified highway is not deficient in meeting minimumstate-aid street standards; or
(2) the county shows evidence that the identified highway hasbeen programmed for construction in the county's five-yearcapital improvement budget in a manner consistent with thecounty's transportation plan; or
(3) there are conditions created by or within the city andbeyond the control of the county that prohibit programming orconstructing the identified highway.
(d) Notwithstanding any contrary provisions of paragraph (b)or (c), accumulated balances in excess of two years of municipalaccount apportionments may be spent on projects located outsideof municipalities under 5,000 population when approved solely byresolution of the county board.
(e) Authorization by the commissioner for use ofmunicipal account funds on county state-aid highways outside ofcities having a population of less than 5,000 shall be applicableonly to the county's accumulated and current year allocation. Future municipal account allocations shall be used as directed bylaw unless subsequent requests are made by the county andapproved by the commissioner, or approved by resolution of thecounty board, as applicable, in accordance with theapplicable provisions of this section.
Sec. 16. Minnesota Statutes 1994, section 162.08, subdivision7, is amended to read:
Subd. 7. [ADVANCES OTHER THAN TO MUNICIPAL ACCOUNT.] Anycounty may make advances from any available funds for the purposeof expediting the construction, reconstruction, improvement andmaintenance of its county state-aid highway system. Totaladvances, together with any advances to the municipal account, asprovided in subdivisions 5 and 6, shall never exceed 40 percentof the county's last apportionment preceding the firstadvance. Advances made by any county as provided herein,other than advances made to the municipal account, shall berepaid out of subsequent apportionments to the county'smaintenance or construction account in accordance with thecommissioner's rules.
Sec. 17. Minnesota Statutes 1994, section 162.14, subdivision6, is amended to read:
Subd. 6. [ADVANCES.] Any such city, except cities of thefirst class, may make advances from any funds available to itfor the purpose of expediting the construction, reconstruction,improvement, or maintenance of its municipal state-aid streetsystem; provided that such advances shall not exceed the city'stotal estimated apportionment for the three years following theyear the advance is made. Advances made by any such city shallbe repaid out of subsequent apportionments made to such city inaccordance with the commissioner's rules.
Sec. 18. Minnesota Statutes 1994, section 168.013, subdivision3, is amended to read:
Subd. 3. [APPLICATION; CANCELLATION; EXCESSIVE GROSS WEIGHTSFORBIDDEN.] The applicant for all licenses based on gross weightshall state in writing upon oath, the unloaded weight of themotor vehicle, trailer or semitrailer and the maximum load theapplicant proposes to carry thereon, the sum of which shallconstitute the gross weight upon which the license tax shall bepaid, but in no case shall the declared gross weight upon whichthe tax is paid be less than 1-1/4 times the declared unloadedweight of the motor vehicle, trailer or semitrailer to beregistered, except recreational vehicles taxed under subdivision1g, school buses taxed under subdivision 18 and tow trucks ortowing vehicles defined in section 169.01, subdivision 52. Thegross weight of a tow truck or towing vehicle is the actualweight of the tow truck or towing vehicle fully equipped, butdoes not include the weight of a wrecked or disabled vehicletowed or drawn by the tow truck or towing vehicle.
The gross weight of no motor vehicle, trailer or semitrailershall exceed the gross weight upon which the license tax has beenpaid by more than four percent or 1,000 pounds, whichever isgreater.
The gross weight of the motor vehicle, trailer or semitrailerfor which the license tax is paid shall be indicated by adistinctive character on the license plate or plates except asprovided in subdivision 12 and the plate or plates shall be keptclean and clearly visible at all times.
The owner, driver, or user of a motor vehicle, trailer orsemitrailer upon conviction for transporting a gross weight inexcess of the gross weight for which it was registered or foroperating a vehicle with an axle weight exceeding the maximumlawful axle load weight shall be guilty of a misdemeanor and besubject to increased registration or reregistration according tothe following schedule:
(1) The owner, driver or user of a motor vehicle, trailer orsemitrailer upon conviction for transporting a gross weight inexcess of the gross weight for which it is registered by morethan four percent or 1,000 pounds, whichever is greater, but lessthan 25 percent or for operating or using a motor vehicle,trailer or semitrailer with an axle weight exceeding the maximumlawful axle load as provided in section 169.825 by more than fourpercent or 1,000 pounds, whichever is greater, but less than 25percent, in addition to any penalty imposed for the misdemeanorshall apply to the registrar to increase the authorized grossweight to be carried on the vehicle to a weight equal to orgreater than the gross weight the owner, driver, or user wasconvicted of carrying, the increase computed for the balance ofthe calendar year on the basis of 1/12 of the annual tax for eachmonth remaining in the calendar year beginning with the first dayof the month in which the violation occurred. If the additionalregistration tax computed upon that weight, plus the tax alreadypaid, amounts to more than the regular tax for the maximum grossweight permitted for the vehicle under section 169.825, thatadditional amount shall nevertheless be paid into the highwayfund, but the additional tax thus paid shall not permit thevehicle to be operated with a gross weight in excess of themaximum legal weight as provided by section 169.825. Unless theowner within 30 days after a conviction shall apply to increasethe authorized weight and pay the additional tax as provided inthis section, the registrar shall revoke the registration on thevehicle and demand the return of the registration card and platesissued on that registration.
(2) The owner or driver or user of a motor vehicle, trailer orsemitrailer upon conviction for transporting a gross weight inexcess of the gross weight for which the motor vehicle, traileror semitrailer was registered by 25 percent or more, or foroperating or using a vehicle or trailer with an axle weightexceeding the maximum lawful axle load as provided in section169.825 by 25 percent or more, in addition to any penalty imposedfor the misdemeanor, shall have the reciprocity privileges on thevehicle involved if the vehicle is being operated underreciprocity canceled by the registrar, or if the vehicle is notbeing operated under reciprocity, the certificate of registrationon the vehicle operated shall be canceled by the registrar andthe registrar shall demand the return of the registrationcertificate and registration plates. The registrar may notcancel the registration or reciprocity privileges for any vehiclefound in violation of seasonal load restrictions imposed undersection 169.87 unless the axle weight exceeds the year-roundweight limit for the highway on which the violation occurred. The registrar may investigate any allegation of gross weightviolations and demand that the operator show cause why all futureoperating privileges in the state should not be revoked unlessthe additional tax assessed is paid.
(3) Clause (1) does not apply to the first haul ofunprocessed or raw farm products or unfinished forest products,when the registered gross weight is not exceeded by more than tenpercent. For purposes of this clause, "first haul" means (1) thefirst, continuous transportation of unprocessed or raw farmproducts from the place of production or on-farm storage site toany other location within 50 miles of the place of production oron-farm storage site, or (2) the first, continuous transportationof unfinished forest products from the place of production to theplace of first unloading.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9911(4) When the registration on a motor vehicle, trailer orsemitrailer is revoked by the registrar according to provisionsof this section, the vehicle shall not be operated on thehighways of the state until it is registered or reregistered, asthe case may be, and new plates issued, and the registration feeshall be the annual tax for the total gross weight of the vehicleat the time of violation. The reregistration pursuant to thissubdivision of any vehicle operating under reciprocity agreementspursuant to section 168.181 or 168.187 shall be at the fullannual registration fee without regard to the percentage ofvehicle miles traveled in this state.
Sec. 19. Minnesota Statutes 1994, section 169.07, is amendedto read:
169.07 [UNAUTHORIZED SIGNS.]
No person shall place, maintain, or display upon or in view ofany highway any unauthorized sign, signal, marking, or devicewhich purports to be or is an imitation of or resembles anofficial traffic-control device or railroad sign or signal, orwhich attempts to direct the movement of traffic, or which hidesfrom view or interferes with the effectiveness of any officialtraffic-control device or any railroad sign or signal, and noperson shall place or maintain, nor shall any public authoritypermit, upon any highway any traffic sign or signal bearingthereon any commercial advertising. This shall not be deemed toprohibit (1) the erection upon private property adjacent tohighways of signs giving useful directional information and of atype that cannot be mistaken for official signs, or (2) thetemporary placement by auctioneers licensed or exempt fromlicensing under section 330.01, for a period of not more thaneight consecutive hours, on or adjacent to the right-of-way of ahighway not more than four signs directing motorists to thelocation of an auction. The signs must conform to standardsfor size, content, placement, and location for such signspromulgated by the commissioner of transportation. The rules mayrequire a permit for each such sign but no fee may be charged forthe permit.
Every such prohibited sign, signal, or marking is herebydeclared to be a public nuisance, and the authority havingjurisdiction over the highways is hereby empowered to remove thesame, or cause it to be removed, without notice.
Sec. 20. Minnesota Statutes 1994, section 169.82, subdivision3, is amended to read:
Subd. 3. [HITCHES; CHAINS; CABLES.] (a) Every traileror semitrailer must be hitched to the towing motor vehicle by adevice approved by the commissioner of public safety.
(b) Every trailer and semitrailer must be equipped with safetychains or cables permanently attached to the trailerexcept in cases where the coupling device is a regulation fifthwheel and kingpin assembly approved by the commissioner of publicsafety. In towing, the chains or cables must becarried through a ring on the towbar and attached to thetowing attached to the vehicles near the points of bumperattachments to the chassis of each vehicle, and must be ofsufficient strength to control the trailer in the event offailure of the towing device. The length of chain or cablemust be no more than necessary to permit free turning of thevehicles.
(c) This subdivision does not apply to towed implements ofhusbandry.
No person may be charged with a violation of this sectionsolely by reason of violating a maximum speed prescribed insection 169.145 or 169.67.
Sec. 21. Minnesota Statutes 1994, section 169.85, is amendedto read:
169.85 [WEIGHING; PENALTY.]
The driver of a vehicle which has been lawfully stopped may berequired by a peace officer to submit the vehicle and load to aweighing by means of portable or stationary scales, and the peaceofficer may require that the vehicle be driven to the nearestavailable scales if the distance to the scales is no further thanfive miles, or if the distance from the point where the vehicleis stopped to the vehicle's destination is not increased by morethan ten miles as a result of proceeding to the nearest availablescales. Official traffic control devices as authorized bysection 169.06 may be used to direct the driver to the nearestscale. When a truck weight enforcement operation is conducted bymeans of portable or stationary scales and signs giving notice ofthe operation are posted within the highway right-of-way andadjacent to the roadway within two miles of the operation, thedriver of a truck or combination of vehicles registered for orweighing in excess of 12,000 pounds, and the driver of acharter bus, except a bus registered in Minnesota, shallproceed to the scale site and submit the vehicle to weighing andinspection.
Upon weighing a vehicle and load, as provided in this section,an officer may require the driver to stop the vehicle in asuitable place and remain standing until a portion of the load isremoved that is sufficient to reduce the gross weight of thevehicle to the limit permitted under section 169.825. A suitableplace is a location where loading or tampering with the load isnot prohibited by federal, state, or local law, rule orordinance. A driver may be required to unload a vehicle only ifthe weighing officer determines that (a) on routes subject to theprovisions of section 169.825, the weight on an axle exceeds thelawful gross weight prescribed by section 169.825, by 2,000pounds or more, or the weight on a group of two or moreconsecutive axles in cases where the distance between the centersof the first and last axles of the group under consideration isten feet or less exceeds the lawful gross weight prescribed bysection 169.825, by 4,000 pounds or more; or (b) on routesdesignated by the commissioner in section 169.832, subdivision11, the overall weight of the vehicle or the weight on an axle orgroup of consecutive axles exceeds the maximum lawful grossweights prescribed by section 169.825; or (c) the weight isunlawful on an axle or group of consecutive axles on a roadrestricted in accordance with section 169.87. Material unloadedmust be cared for by the owner or driver of the vehicle at therisk of the owner or driver.
A driver of a vehicle who fails or refuses to stop and submitthe vehicle and load to a weighing as required in this section,or who fails or refuses, when directed by an officer upon aweighing of the vehicle, to stop the vehicle and otherwise complywith the provisions of this section, is guilty of amisdemeanor.
Sec. 22. Minnesota Statutes 1995 Supplement, section 169.862,is amended to read:
169.862 [PERMITS FOR WIDE LOADS OF BALED AGRICULTURALPRODUCTS.]
The commissioner of transportation with respect to highwaysunder the commissioner's jurisdiction, and local authorities withrespect to highways under their jurisdiction, may issue an annualpermit to enable a vehicle carrying round bales of hay, straw, orcornstalks, with a total outside width of the vehicle or the loadnot exceeding 11-1/2 feet, to be operated on public streets andhighways. The commissioner of transportation and localauthorities may issue an annual permit to enable a vehicle,having a maximum width of 102 inches, carrying a first haul ofsquare bales of straw, each bale having a minimum size of fourfeet by four feet by eight feet, with a total outside width ofthe load not exceeding 12 feet, to be operated on public streetsand highways between August 1 and December March 1within 35 miles of the border between this state and the state ofNorth Dakota. The commissioner of transportation and localauthorities may issue an annual permit to enable a vehiclecarrying square bales of hay, each with an outside dimension ofnot less than three feet by four feet by seven feet, with a totalheight of the loaded vehicle not exceeding 15 feet, to beoperated on those public streets and highways designated in thepermit. Permits issued under this section are governed by theapplicable provisions of section 169.86 except as otherwiseprovided herein and, in addition, carry the followingrestrictions:
(a) The vehicles may not be operated between sunset andsunrise, when visibility is impaired by weather, fog, or otherconditions rendering persons and vehicles not clearly visible ata distance of 500 feet, or on Sunday from noon until sunset, oron the days the following holidays are observed: New Year's Day,Memorial Day, Independence Day, Labor Day, Thanksgiving Day, andChristmas Day.
(b) The vehicles may not be operated on interstate highways.
(c) The vehicles may not be operated on a trunk highway with apavement less than 24 feet wide.
(d) A vehicle operated under the permit must be equipped with aretractable or removable mirror on the left side so located thatit will reflect to the driver a clear view of the highway for adistance of at least 200 feet to the rear of the vehicle.
(e) A vehicle operated under the permit must display red,orange, or yellow flags, 18 inches square, as markers at thefront and rear and on both sides of the load. The load must besecurely bound to the transporting vehicle.
(f) Farm vehicles not for hire carrying round baled hay lessthan 20 miles are exempt from the requirement to obtain a permit. All other requirements of this section apply to vehiclestransporting round baled hay.
The fee for the permit is $24.
Sec. 23. Minnesota Statutes 1994, section 169.871, is amendedby adding a subdivision to read:
Subd. 1b. [CIVIL PENALTY FOR FIRST TWO VIOLATIONS.]Notwithstanding subdivision 1, clauses (a) to (e), a civilpenalty under subdivision 1 for a violation in a motor vehicle inthe course of a first haul as defined in section 168.013,subdivision 3, clause (3), of a weight limit imposed undersections 169.825, 169.832 to 169.851,
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9913and 169.87 that is not preceded by two or more violations of thegross weight limits in those sections in that motor vehiclewithin the previous 12 months, may not exceed $150.
Sec. 24. Minnesota Statutes 1995 Supplement, section 171.04,subdivision 1, is amended to read:
Subdivision 1. [PERSONS NOT ELIGIBLE.] The department shallnot issue a driver's license hereunder:
(1) To any person who is under the age of 16 years; to anyperson under 18 years unless such person shall have successfullycompleted a course in driver education, including both classroomand behind-the-wheel instruction, approved by the state board ofeducation for courses offered through the public schools, or, inthe case of a course offered by a private, commercial drivereducation school or institute, by the department of publicsafety; except when such person has completed a course of drivereducation in another state or has a previously issued validlicense from another state or country; nor to any person under 18years unless the application of license is approved by eitherparent when both reside in the same household as the minorapplicant, otherwise the parent or spouse of the parent havingcustody or with whom the minor is living in the event there is nocourt order for custody, or guardian having the custody of suchminor, or in the event a person under the age of 18 has no livingfather, mother or guardian, the license shall not be issued tosuch person unless the application therefor is approved by theperson's employer. Driver education courses offered in anypublic school shall be open for enrollment to persons between theages of 15 and 18 years residing in the school district orattending school therein. Any public school offering drivereducation courses may charge an enrollment fee for the drivereducation course which shall not exceed the actual cost thereofto the public school and the school district. The approvalrequired herein shall contain a verification of the age of theapplicant;
(2) To any person who is under the age of 18 years unlessthe person has applied for, been issued, and possessed theappropriate instruction permit for a minimum of sixmonths;
(3) To any person whose license has been suspendedduring the period of suspension except that a suspended licensemay be reinstated during the period of suspension upon thelicensee furnishing proof of financial responsibility in the samemanner as provided in the Minnesota no-fault automobile insuranceact;
(3) (4) To any person whose license has beenrevoked except upon furnishing proof of financial responsibilityin the same manner as provided in the Minnesota no-faultautomobile insurance act and if otherwise qualified;
(4) (5) To any person who is a drug dependentperson as defined in section 254A.02, subdivision 5;
(5) (6) To any person who has been adjudgedlegally incompetent by reason of mental illness, mentaldeficiency, or inebriation, and has not been restored tocapacity, unless the department is satisfied that such person iscompetent to operate a motor vehicle with safety to persons orproperty;
(6) (7) To any person who is required by thischapter to take an examination, unless such person shall havesuccessfully passed such examination;
(7) (8) To any person who is required under theprovisions of the Minnesota no-fault automobile insurance act ofthis state to deposit proof of financial responsibility and whohas not deposited such proof;
(8) (9) To any person when the commissioner hasgood cause to believe that the operation of a motor vehicle onthe highways by such person would be inimical to public safety orwelfare;
(9) (10) To any person when, in the opinion ofthe commissioner, such person is afflicted with or suffering fromsuch physical or mental disability or disease as will affect suchperson in a manner to prevent the person from exercisingreasonable and ordinary control over a motor vehicle whileoperating the same upon the highways; nor to a person who isunable to read and understand official signs regulating, warning,and directing traffic;
(10) (11) To a child for whom a court has ordereddenial of driving privileges under section 260.191,subdivision 1, or 260.195, subdivision 3a, until the period ofdenial is completed; or
(11) (12) To any person whose license has beencanceled, during the period of cancellation.
Sec. 25. Minnesota Statutes 1994, section 171.05, is amendedby adding a subdivision to read:
Subd. 2a. [PERMIT FOR SIX MONTHS.] An applicant whohas applied for and received an instruction permit pursuant tosubdivision 2 must possess the instruction permit for not lessthan six months before qualifying for a driver's license.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9914Sec. 26. Minnesota Statutes 1994, section 173.02, subdivision6, is amended to read:
Subd. 6. [VARIOUS SIGNS AND NOTICES DEFINED.] Directional andother official signs and notices shall mean:
(a) "Official signs and notices" mean signs and notices erectedand maintained by public officers or public agencies within theirterritorial jurisdiction and pursuant to and in accordance withdirection or authorization contained in federal or state law forthe purposes of carrying out an official duty or responsibility. Historical markers authorized by state law and erected by stateor local governmental agencies or nonprofit historical societiesand, star city signs erected under section173.085, and municipal identification entrance signs erectedin accordance with section 173.025 may be considered officialsigns.
(b) "Public utility signs" mean warning signs, notices, ormarkers which are customarily erected and maintained by publiclyor privately owned public utilities, as essential to theiroperations.
(c) "Service club and religious notices" mean signs andnotices, not exceeding eight square feet in advertising area,whose erection is authorized by law, relating to meetings andlocation of nonprofit service clubs or charitable associations,or religious services.
(d) "Directional signs" means signs containing directionalinformation about public places owned or operated by federal,state, or local governments or their agencies, publicly orprivately owned natural phenomena, historic, cultural,scientific, educational, and religious sites, and areas ofnatural scenic beauty or naturally suited for outdoor recreation,deemed to be in the interest of the traveling public. To qualifyfor directional signs, privately owned attractions must benationally or regionally known, and of outstanding interest tothe traveling public.
(e) All definitions in this subdivision are intended to be inconformity with the national standards for directional and otherofficial signs.
Sec. 27. [173.025] [MUNICIPAL IDENTIFICATION SIGNS.]
A local road authority may erect a municipal identificationentrance sign within the right-of-way of a trunk highway with thewritten permission of the commissioner. Municipal identificationentrance signs erected without the written permission of thecommissioner are prohibited.
Sec. 28. Minnesota Statutes 1994, section 173.07, subdivision1, is amended to read:
Subdivision 1. [FORMS; CONTENT; IDENTIFYING NUMBER.]Application for permits or renewals thereof for the placement andmaintenance of advertising devices within scenic areas shall beon forms prescribed by the commissioner and shall contain suchinformation as the commissioner may require. No advertisingdevice shall be placed without the consent of the owner oroccupant of the land, and adequate proof of such consent shall besubmitted to the commissioner at the time application is made forsuch permits or renewals. There shall be furnished with eachpermit an identifying number which shall be affixed by the permitholder to the advertising device in accordance with rules of thecommissioner of transportation.
Sec. 29. Minnesota Statutes 1994, section 174.04, is amendedto read:
174.04 [FINANCIAL ASSISTANCE; APPLICATIONS; DISBURSEMENT.]
Subdivision 1. [REVIEW OF APPLICATION.] Any state agency whichreceives an application from a regional development commission,metropolitan council, public transit commission, airportcommission, port authority or other political subdivision of thestate, or any nonpublic organization, for financialassistance for transportation planning, capital expenditures oroperations to any state or federal agency, shall first submit theapplication to the commissioner of transportation. Thecommissioner shall review the application to determine whether itcontains matters that substantially affect the statewidetransportation plan and priorities. If the application does notcontain such matters, the commissioner shall within 15 days afterreceipt return the application to the applicant politicalsubdivision or nonpublic organization for forwarding tothe appropriate agency. If the application contains suchmatters, the commissioner shall review and comment on theapplication as being consistent with the plan and priorities. The commissioner shall return the application together withcomments within 45 days after receipt to the applicant politicalsubdivision or nonpublic organization for forwarding withthe commissioner's comments to the appropriate agency.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9915Subd. 2. [DESIGNATED AGENT.] A regional developmentcommission, metropolitan council, public transit commission,airport commission, port authority, or any other politicalsubdivision of the state, or any nonpublic organization,may designate the commissioner as its agent to receive anddisburse funds by entering into an agreement with thecommissioner prescribing the terms and conditions of the receiptand expenditure of the funds in accordance with federal and statelaws, rules, and regulations.
Subd. 3. [EXCEPTIONS.] The provisions of this section shallnot be construed as altering or amending in any way the fundingprocedures specified in section 161.36, 360.016 or 360.0161.
Sec. 30. Minnesota Statutes 1995 Supplement, section 221.0355,subdivision 5, is amended to read:
Subd. 5. [HAZARDOUS WASTE TRANSPORTERS.] (a) A carrier withits principal place of business in Minnesota or who designatesMinnesota as its base state shall file a disclosure statementwith and obtain a permit from the commissioner that specificallyauthorizes the transportation of hazardous waste beforetransporting a hazardous waste in Minnesota. A carrier thatdesignates another participating state as its base state shallfile a disclosure statement with and obtain a permit from thatstate that specifically authorizes the transportation ofhazardous waste before transporting a hazardous waste inMinnesota. A registration is valid for one year from the date anotice of registration form is issued and a permit is valid forthree years from the date issued or until a carrier fails torenew its registration, whichever occurs first.
(b) A disclosure statement must include the informationcontained in part III of the uniform application. A person whohas direct management responsibility for a carrier's hazardouswaste transportation operations shall submit a full set of theperson's fingerprints, with the carrier's disclosure statement,for identification purposes and to enable the commissioner todetermine whether the person has a criminal record. Thecommissioner shall send the person's fingerprints to the FederalBureau of Investigation and shall request the bureau to conduct acheck of the person's criminal record. The commissioner shallnot issue a notice of registration or permit to a hazardous wastetransporter who has not made a full and accurate disclosure ofthe required information or paid the fees required by thissubdivision. Making a materially false or misleading statementin a disclosure statement is prohibited.
(c) The commissioner shall assess a carrier the actual costsincurred by the commissioner for conducting the uniform program'srequired investigation of the information contained in adisclosure statement.
(d) A permit under this subdivision becomes a license undersection 221.035, subdivision 1, on August 1, 19961997, and is subject to the provisions of section 221.035until it expires.
Sec. 31. Minnesota Statutes 1995 Supplement, section 221.0355,subdivision 15, is amended to read:
Subd. 15. [HAZARDOUS WASTE LICENSES.] (a) From October 1,1994, until August 1, 1996 1997, the commissionershall not register hazardous material transporters under section221.0335 or license hazardous waste transporters under section221.035. A person who is licensed under section 221.035 need notobtain a permit under subdivision 4 or 5 for the transportationof hazardous waste in Minnesota, until the person's license hasexpired. A carrier wishing to transport hazardous waste inanother participating state shall obtain a permit under theuniform program authorizing the transportation.
(b) The commissioner may refund fees paid under section221.035, minus a proportional amount calculated on a monthlybasis for each month that a hazardous waste transporter licensewas valid, to a person who was issued a hazardous wastetransporter license after May 5, 1994, who applied for a permitauthorizing the transportation of hazardous waste undersubdivisions 4 and 5 before October 1, 1994, and who wassubsequently issued that permit under the uniform program.
Sec. 32. Minnesota Statutes 1994, section 222.37, subdivision1, is amended to read:
Subdivision 1. [USE REQUIREMENTS.] Any water power, telegraph,telephone, pneumatic tube, pipeline, community antennatelevision, cable communications or electric light, heat,or power company, or fire department may use publicroads for the purpose of constructing, using, operating, andmaintaining lines, subways, canals, or conduits,hydrants, or dry hydrants, for their business, but suchlines shall be so located as in no way to interfere with thesafety and convenience of ordinary travel along or over the same;and, in the construction and maintenance of such line, subway,canal, or conduit, hydrants, or dry hydrants, thecompany shall be subject to all reasonable regulations imposed bythe governing body of any county, town or city in which suchpublic road may be. If the governing body does not require thecompany to obtain a permit, a company shall notify the governingbody of any
county, town, or city having jurisdiction over a public roadprior to the construction or major repair, involving extensiveexcavation on the road right-of-way, of the company's equipmentalong, over, or under the public road, unless the governing bodywaives the notice requirement. A waiver of the noticerequirement must be renewed on an annual basis. For emergencyrepair a company shall notify the governing body as soon aspractical after the repair is made. Nothing herein shall beconstrued to grant to any person any rights for the maintenanceof a telegraph, telephone, pneumatic tube, community antennatelevision system, cable communications system, or light, heat,or power system, or hydrant system within thecorporate limits of any city until such person shall haveobtained the right to maintain such system within such city orfor a period beyond that for which the right to operate suchsystem is granted by such city.
Sec. 33. Laws 1994, chapter 589, section 8, is amended toread:
Sec. 8. [REPEALER.]
Minnesota Statutes 1992, section 221.033, subdivision 4, isrepealed. Section 5 is repealed effective August 1, 19961997.
Sec. 34. [REPEALER.]
Minnesota Statutes 1994, sections 161.086; and 161.115,subdivision 262, are repealed.
Sec. 35. [EFFECTIVE DATE.]
Sections 24 and 25 are effective February 1, 1997. Sections5 to 8 are effective the day following final enactment. Section14 is effective July 1, 1996.
Section 1. Minnesota Statutes 1994, section 168.042,subdivision 8, is amended to read:
Subd. 8. [REISSUANCE OF REGISTRATION PLATES.] (a) Thecommissioner shall rescind the impoundment order of a personsubject to an order under this section, other than theviolator, if a:
(1) the violator had a valid driver's license on the date ofthe violation and the person subject to an impoundmentorder under this section, other than the violator, files withthe commissioner an acceptable sworn statement containing thefollowing information:
(1) (i) that the person is the registered ownerof the vehicle from which the plates have been impounded underthis section;
(2) (ii) that the person is the current owner andpossessor of the vehicle used in the violation;
(3) (iii) the date on which the violator obtainedthe vehicle from the registered owner;
(4) (iv) the residence addresses of theregistered owner and the violator on the date the violatorobtained the vehicle from the registered owner;
(5) (v) that the person was not a passenger inthe vehicle at the time of the violation; and
(6) (vi) that the person knows that the violatormay not drive, operate, or be in physical control of a vehiclewithout a valid driver's license; or
(2) the violator did not have a valid driver's license onthe date of the violation and the person made a report to lawenforcement before the violation stating that the vehicle hadbeen taken from the person's possession or was being used withoutpermission.
(b) The commissioner may not rescind the impoundment ordernor reissue registration plates to a registered owner if theowner knew or had reason to know that the violator did not have avalid driver's license on the date the violator obtained thevehicle from the owner. A person who has failed to make areport as provided in paragraph
(a), clause (2), may be issued special registration plates undersubdivision 12 for a period of one year from the effective dateof the impoundment order. At the next registration renewalfollowing this period, the person may apply for regularregistration plates.
(c) If the order is rescinded, the owner shall receive newregistration plates at no cost, if the plates were seizedand destroyed.
Sec. 2. Minnesota Statutes 1994, section 168.042, is amendedby adding a subdivision to read:
Subd. 13a. [ACQUIRING ANOTHER VEHICLE.] If duringthe effective period of the plate impoundment the violatorapplies to the commissioner for registration plates for anyvehicle, the commissioner shall not issue registration platesunless the violator qualifies for special registration platesunder subdivision 12 and unless the plates issued are specialplates as described in subdivision 12.
Sec. 3. Minnesota Statutes 1994, section 168.12, subdivision2, is amended to read:
Subd. 2. [AMATEUR RADIO STATION LICENSEE; SPECIAL LICENSEPLATES.] Any applicant who is an owner or joint owner of apassenger automobile, van or pickup truck, or a self-propelledrecreational vehicle, and a resident of this state, and who holdsan official amateur radio station license, or a citizens radioservice class D license, in good standing, issued by the FederalCommunications Commission shall upon compliance with all laws ofthis state relating to registration and the licensing of motorvehicles and drivers, be furnished with license plates for themotor vehicle, as prescribed by law, upon which, in lieu of thenumbers required for identification under subdivision 1, shall beinscribed the official amateur call letters of the applicant, asassigned by the Federal Communications Commission., andthe words "AMATEUR RADIO." The applicant shall pay inaddition to the registration tax required by law, the sum of $10for the special license plates, and at the time of delivery ofthe special license plates the applicant shall surrender to theregistrar the current license plates issued for the motorvehicle. This provision for the issue of special license platesshall apply only if the applicant's vehicle is already registeredin Minnesota so that the applicant has valid regular Minnesotaplates issued for that vehicle under which to operate it duringthe time that it will take to have the necessary special licenseplates made. If owning or jointly owning more than one motorvehicle of the type specified in this subdivision, the applicantmay apply for special plates for each of not more than twovehicles, and, if each application complies with thissubdivision, the registrar shall furnish the applicant with thespecial plates, inscribed with the official amateur call lettersand other distinguishing information as the registrar considersnecessary, for each of the two vehicles. And the registrar maymake reasonable rules governing the use of the special licenseplates as will assure the full compliance by the owner and holderof the special plates, with all existing laws governing theregistration of motor vehicles, the transfer and the usethereof.
Despite any contrary provision of subdivision 1, the speciallicense plates issued under this subdivision may be transferredto another motor vehicle upon the payment of a fee of $5. Theregistrar must be notified of the transfer and may prescribe aform for the notification.
Fees collected under this subdivision must be paid into thestate treasury and credited to the highway user tax distributionfund.
Sec. 4. Minnesota Statutes 1994, section 168.123, subdivision1, is amended to read:
Subdivision 1. [GENERAL REQUIREMENTS; FEES.] (a) On paymentof a fee of $10 for each set of two plates, or for a single platein the case of a motorcycle plate, payment of the registrationtax required by law, and compliance with other laws relating tothe registration and licensing of a passenger automobile, pickuptruck, van, self-propelled recreational equipment, or motorcycle,as applicable, the registrar shall issue:
(1) special license plates to an applicant who served inthe active military service in a branch of the armed forces ofthe United States or of a nation or society allied with theUnited States in conducting a foreign war, was discharged underhonorable conditions, and is an owner or joint owner of amotor vehicle included within the definition of apassenger automobile or which is, pickup truck, van,or self-propelled recreational equipment, on payment of afee of $10 for each set of two plates, payment of theregistration tax required by law, and compliance with other lawsrelating to registration and licensing of motor vehicles anddrivers; or
(2) a special motorcycle license plate as described insubdivision 2, paragraph (a), or another special license platedesigned by the commissioner of public safety to an applicant whois a Vietnam veteran who served after July 1, 1961, and beforeJuly 1, 1978, and who served in the active military service in abranch of the armed forces of the United States in conducting aforeign war, was discharged under honorable conditions, and is anowner or joint owner of a motorcycle. Plates issued under thisclause must be the same size as standard motorcycle licenseplates.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9918(b) The additional fee of $10 is payable for each set ofplates, is payable only when the plates are issued, and is notpayable in a year in which tabs or stickers are issued instead ofnumber plates. An applicant must not be issued more than twosets of plates for vehicles listed in paragraph (a) andowned or jointly owned by the applicant.
(c) The veteran shall have a certified copy of theveteran's discharge papers, indicating character of discharge, atthe time of application. If an applicant served in the activemilitary service in a branch of the armed forces of a nation orsociety allied with the United States in conducting a foreign warand is unable to obtain a record of that service and dischargestatus, the commissioner of veterans affairs may certify theapplicant as qualified for the veterans' license plates providedunder this section.
Sec. 5. Minnesota Statutes 1994, section 168.123, subdivision4, is amended to read:
Subd. 4. [PLATE TRANSFERS.] (a) On payment of a fee of$5, plates issued under this section subdivision 1,paragraph (a), clause (1), may be transferred to anothermotor vehicle passenger automobile, pickup truck, van,or self-propelled recreational equipment owned or jointlyowned by the person to whom the plates were issued.
(b) On payment of a fee of $5, a plate issued undersubdivision 1, paragraph (a), clause (2), may be transferred toanother motorcycle owned or jointly owned by the person to whomthe plate was issued.
Sec. 6. [168.1291] [SPECIAL LICENSE PLATES; DESIGN.]
Subdivision 1. [DEFINITION.] For purposes of thissection "special license plates" means license plates issuedunder sections 168.12, subdivisions 2b to 2e; 168.123; 168.129;168.1292; and 168.1296.
Subd. 2. [DESIGN OF SPECIAL LICENSE PLATES.] Thecommissioner shall design a single special license plate thatwill contain a unique number and a space for a unique symbol. Thecommissioner shall design a unique symbol related to the purposeof each special license plate. Any provision of sections 168.12,subdivisions 2b to 2e; 168.123; 168.129; 168.1292; and 168.1296that requires the placement of a specified letter or letters on aspecial license plate applies to those license plates only to theextent that the commissioner includes the letter or letters inthe design. Where a law authorizing a special license platecontains a specific requirement for graphic design of thatlicense plate, that requirement applies to the appropriate uniquesymbol the commissioner designs.
Subd. 3. [ISSUANCE OF SPECIAL LICENSE PLATES WITHUNIQUE SYMBOLS.] Notwithstanding section 168.12, subdivisions2b to 2e; 168.123; 168.129; 168.1292; or 168.1296, beginning withspecial license plates issued in calendar year 1996 thecommissioner shall issue each class of special license platespermanently marked with specific designs under those laws onlyuntil the commissioner's supply of those license plates isexhausted. Thereafter the commissioner shall issue under thoselaws only the license plate authorized under subdivision 2, withthe appropriate unique symbol attached.
Subd. 4. [FEES.] Notwithstanding section 168.12,subdivisions 2b to 2e; 168.123; 168.129; 168.1292; or 168.1296,the commissioner shall charge a fee of $10 for each set oflicense plates issued under this section.
Subd. 5. [APPLICATION.] This section does not applyto a special motorcycle license plate designed by the registrarunder section 168.123, subdivision 1, clause (2).
Sec. 7. [168.1292] [OLYMPIC LICENSE PLATES.]
Subdivision 1. [GENERAL REQUIREMENTS AND PROCEDURES.]The registrar shall issue special Olympic license plates to anapplicant who:
(1) is an owner or joint owner of a passenger automobile,pickup truck, or van;
(2) pays a fee of $10 to cover the costs of handling andmanufacturing the plates;
(3) pays the registration tax required under section168.013;
(4) pays the fees required under this chapter;
(5) contributes $15 annually to the Minnesota amateur sportscommission; and
(6) complies with laws and rules governing registration andlicensing of vehicles and drivers.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9919Subd. 2. [DESIGN.] After consultation with theUnited States Olympic Committee, the registrar shall design thespecial Olympic plates.
In consultation with the registrar, the Minnesota amateursports commission annually shall indicate the number of platesthe commission anticipates will be needed.
Subd. 3. [PLATE TRANSFERS.] Notwithstanding section168.12, subdivision 1, on payment of a transfer fee of $5, platesissued under this section may be transferred to another passengervehicle, pickup truck, or van owned or jointly owned by theperson to whom the special plates were issued.
Subd. 4. [FEES CREDITED.] The fees collected underthis section must be deposited in the state treasury and creditedto the highway user tax distribution fund.
Subd. 5. [CONTRIBUTIONS.] The registrar shall issuea set of Olympic license plates under this section only to aperson who presents at the time of applying for registration areceipt from the Minnesota amateur sports commission thatdemonstrates that the applicant has contributed at least $15 tothe commission within 90 days prior to the date of theapplication. After the issuance of that set of Olympic licenseplates, the collection of subsequent contributions during thelife of that set of license plates is the responsibility of thecommission.
Sec. 8. Minnesota Statutes 1995 Supplement, section 168.1296,subdivision 1, is amended to read:
Subdivision 1. [GENERAL REQUIREMENTS AND PROCEDURES.] Theregistrar shall issue special critical habitat license plates toan applicant who:
(1) is an owner or joint owner of a passenger automobile,pickup truck, or van;
(2) pays a fee determined by the registrar of $10to cover the costs of handling and manufacturing the plates;
(3) pays the registration tax required under section168.013;
(4) pays the fees required under this chapter;
(5) contributes at least $30 annually to the Minnesota criticalhabitat private sector matching account established in section84.943; and
(6) complies with laws and rules governing registration andlicensing of vehicles and drivers.
Sec. 9. Minnesota Statutes 1994, section 168.15, is amended toread:
168.15 [RIGHTS AS TO REGISTRATION CERTIFICATES AND NUMBERPLATES.]
Subdivision 1. [TRANSFER OF OWNERSHIP.] Except asprovided in subdivision 3, upon the transfer of ownership,destruction, theft, dismantling as such, or the permanent removalby the owner thereof from this state of any motor vehicleregistered in accordance with the provisions of this chapter, theright of the owner of such vehicle to use the registrationcertificate and number plates assigned such vehicle shall expire,and such certificate and any existing plates shall be, by suchowner, forthwith returned, with transportation prepaid, to theregistrar with a signed notice of the date and manner oftermination of ownership, giving the name and post officeaddress, with street and number, if in a city, of the person towhom transferred. No fee may be charged for a return of platesunder this section. When the ownership of a motor vehicle shallbe transferred to another who shall forthwith register the samein the other's name, the registrar may permit the manual deliveryof such plates to the new owner of such vehicle. When seeking tobecome the owner by gift, trade, or purchase of any vehicle forwhich a registration certificate has been theretofore issuedunder the provisions of this chapter, a person shall join withthe registered owner in transmitting with the application theregistration certificate, with the assignment and notice of saleduly executed upon the reverse side thereof, or, in case of lossof such certificate, with such proof of loss by sworn statement,in writing, as shall be satisfactory to the registrar. Upon thetransfer of any motor vehicle by a manufacturer or dealer, foruse within the state, whether by sale, lease, or otherwise, suchmanufacturer or dealer shall, within seven days after suchtransfer, file with the registrar a notice or report containingthe date of such transfer, a description of such motor vehicles,and the name, street and number of residence, if in a city, andthe post office address of the transferee, and shall transmittherewith the transferee's application for registrationthereof.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9920Subd. 2. [TRANSFER OF ENGINE.] Upon the transfer of anyautomobile engine or motor, except a new engine or motor,transferred with intent that the same be installed in a newautomobile, and whether such transfer be made by a manufactureror dealer, or otherwise, and whether by sale, lease or otherwise,the transferor shall, within two days after such transfer, filewith the registrar a notice or report containing the date of suchtransfer and a description, together with the maker's number ofthe engine or motor, and the name and post office address of thepurchaser, lessee, or other transferee.
Subd. 3. [VEHICLES OF LESSORS; TRANSFERS.]Notwithstanding subdivision 1, a motor vehicle lessor licensedunder section 168.27, subdivision 2, 3, or 4, may transferlicense plates issued to one rental motor vehicle owned by thelessor to another rental motor vehicle, owned by the lessor andnot previously registered in Minnesota or another jurisdiction,if within ten days of the transfer the lessor registers thevehicle to which the license plates were transferred. Uponregistration, the lessor must pay all taxes and fees due on theregistration of the vehicle to which the license plates weretransferred, plus a transfer fee of $15. The fee must bedeposited in the highway user tax distribution fund. Forpurposes of this subdivision, "rental motor vehicle" means avehicle used for rentals or leases of 30 days or less.
Sec. 10. Minnesota Statutes 1995 Supplement, section 168.16,is amended to read:
168.16 [REFUNDS; APPROPRIATION.]
After the tax upon any motor vehicle shall have been paid forany year, refund shall be made for errors made in computing thetax or fees and for the error on the part of an owner who may inerror have registered a motor vehicle that was not before, nor atthe time of registration, nor at any time thereafter during thecurrent past year, subject to tax in this state as provided bysection 168.012. Unless otherwise provided in this chapter, aclaim for a refund of an overpayment of registration tax must befiled within 3-1/2 years from the date of payment. Therefundment shall be made from any fund in possession of theregistrar and shall be deducted from the registrar's monthlyreport to the commissioner of finance. A detailed report of therefundment shall accompany the report. The former owner of atransferred vehicle by an assignment in writing endorsed upon theregistration certificate and delivered to the registrar withinthe time provided herein may sell and assign to the new ownerthereof the right to have the tax paid by the former owneraccredited to the owner who duly registers the vehicle. Anyowner at the time of such occurrence, whose vehicle shallbe is permanently destroyed, or sold to the federalgovernment, the state, or political subdivision thereof, andany owner who sells a rental motor vehicle and transfers thelicense plates issued to that motor vehicle under section 168.15,subdivision 3, shall upon filing a verified claim be entitledto a refund of the unused portion of the tax paid upon thevehicle, computed as follows:
(1) if the vehicle is registered under the calendar year systemof registration, the refund is computed pro rata by the month,1/12 of the annual tax paid for each month of the year remainingafter the month in which the plates and certificate were returnedto the registrar;
(2) in the case of a vehicle registered under the monthlyseries system of registration, the amount of the refund is equalto the sum of the amounts of the license fee attributable tothose months remaining in the licensing period after the month inwhich the plates and certificate were returned to theregistrar.
There is hereby appropriated to the persons entitled to arefund, from the fund or account in the state treasury to whichthe money was credited, an amount sufficient to make the refundand payment. Refunds under this section to licensed motorvehicle lessors must be made annually in a manner the registrardetermines.
Sec. 11. Minnesota Statutes 1994, section 168.33, is amendedby adding a subdivision to read:
Subd. 8. [TEMPORARY DISABILITY PERMIT AND FEE.] Theregistrar shall allow deputy registrars to implement and followprocedures for processing applications and accepting andremitting fee payments for 30-day temporary disability permitsissued under section 169.345, subdivision 3, paragraph (c), thatare identical or substantially similar to the procedures requiredby rule for motor vehicle registration and titlingtransactions.
Sec. 12. Minnesota Statutes 1994, section 169.121, subdivision3, is amended to read:
Subd. 3. [CRIMINAL PENALTIES.] (a) As used in thissubdivision:
(1) "prior impaired driving conviction" means a priorconviction under this section; section 84.91, subdivision 1,paragraph (a); 86B.331, subdivision 1, paragraph (a); 169.129;360.0752; 609.21, subdivision 1, clauses (2) to (4); 609.21,subdivision 2, clauses (2) to (4); 609.21, subdivision 2a,clauses (2) to (4); 609.21, subdivision 3, clauses (2) to (4);609.21,
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9921subdivision 4, clauses (2) to (4); or an ordinance from thisstate, or a statute or ordinance from another state in conformitywith any of them. A prior impaired driving conviction alsoincludes a prior juvenile adjudication that would have been aprior impaired driving conviction if committed by an adult;and
(2) "prior license revocation" means a driver's licensesuspension, revocation, or cancellation under this section;section 169.123; 171.04; 171.14; 171.16; 171.17; or 171.18because of an alcohol-related incident; 609.21, subdivision 1,clauses (2) to (4); 609.21, subdivision 2, clauses (2) to (4);609.21, subdivision 2a, clauses (2) to (4); 609.21,subdivision 3, clauses (2) to (4); or 609.21, subdivision 4,clauses (2) to (4); or an ordinance from this state, or astatute or ordinance from another state in conformity with any ofthem.
(b) A person who violates subdivision 1 or 1a, or an ordinancein conformity with either of them, is guilty of a misdemeanor.
(c) A person is guilty of a gross misdemeanor under any of thefollowing circumstances:
(1) the person violates subdivision 1 within five years of aprior impaired driving conviction, or within ten years of thefirst of two or more prior impaired driving convictions;
(2) the person violates subdivision 1a within five years of aprior license revocation, or within ten years of the first of twoor more prior license revocations;
(3) the person violates section 169.26 while in violation ofsubdivision 1; or
(4) the person violates subdivision 1 or 1a while a child underthe age of 16 is in the vehicle, if the child is more than 36months younger than the violator.
(d) The attorney in the jurisdiction in which the violationoccurred who is responsible for prosecution of misdemeanorviolations of this section shall also be responsible forprosecution of gross misdemeanor violations of this section.
(e) The court must impose consecutive sentences when itsentences a person for a violation of this section orsection 169.29 arising out of separate behavioral incidents. Thecourt also must impose a consecutive sentence when it sentences aperson for a violation of this section or section 169.129 and theperson, at the time of sentencing, is on probation for, orserving, an executed sentence for a violation of this section orsection 169.29 and the prior sentence involved a separatebehavioral incident. The court also may order that the sentenceimposed for a violation of this section or section 169.29 shallrun consecutively to a previously imposed misdemeanor, grossmisdemeanor or felony sentence for a violation other than thissection or section 169.129.
(f) When an attorney responsible for prosecuting grossmisdemeanors under this section requests criminal historyinformation relating to prior impaired driving convictions from acourt, the court must furnish the information without charge.
(g) A violation of subdivision 1a may be prosecuted either inthe jurisdiction where the arresting officer observed thedefendant driving, operating, or in control of the motor vehicleor in the jurisdiction where the refusal occurred.
Sec. 13. [APPROPRIATION TO PAY INITIAL COSTS OF OLYMPICPLATES.]
(a) The Minnesota amateur sports commission shall pay thecommissioner an amount determined by the commissioner to equalthe administrative, handling, and manufacturing costs of thefirst production of Olympic license plates. Production oflicense plates must begin after the commissioner receivespayment.
(b) The amount determined by the commissioner underparagraph (a) is appropriated to the commissioner of publicsafety to pay the costs of the first production of Olympiclicense plates. The sum is available until spent.
(c) The amount paid by the Minnesota amateur sportscommission to the commissioner under paragraph (a) isappropriated to the Minnesota amateur sports commission from thehighway user tax distribution fund. This appropriation isavailable to the extent that Olympic license plates are sold andreceipts are credited to the highway user tax distributionfund.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9922Sec. 14. [REPORT.]
The commissioner of public safety shall report to thelegislature by January 15, 1999, on the fiscal impact ofsections 9 and 10. The report must include the total amount paidin refunds and collected in fees under those sections.
Sec. 15. [EFFECTIVE DATE.]
Section 8 is effective the day following finalenactment.
Sections 9 and 10 are effective January 1, 1997, and arerepealed June 30, 1999.
Section 1. Minnesota Statutes 1995 Supplement, section275.065, subdivision 3, is amended to read:
Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The countyauditor shall prepare and the county treasurer shall deliverafter November 10 and on or before November 24 each year, byfirst class mail to each taxpayer at the address listed on thecounty's current year's assessment roll, a notice of proposedproperty taxes and, in the case of a town, final propertytaxes.
(b) The commissioner of revenue shall prescribe the form of thenotice.
(c) The notice must inform taxpayers that it contains theamount of property taxes each taxing authority other than a townproposes to collect for taxes payable the following year and, fora town, the amount of its final levy. It must clearly state thateach taxing authority, including regional library districtsestablished under section 134.201, and including the metropolitantaxing districts as defined in paragraph (i), but excluding allother special taxing districts and towns, will hold a publicmeeting to receive public testimony on the proposed budget andproposed or final property tax levy, or, in case of a schooldistrict, on the current budget and proposed property tax levy. It must clearly state the time and place of each taxingauthority's meeting and an address where comments will bereceived by mail.
(d) The notice must state for each parcel:
(1) the market value of the property as determined undersection 273.11, and used for computing property taxes payable inthe following year and for taxes payable in the current year;and, in the case of residential property, whether the property isclassified as homestead or nonhomestead. The notice must clearlyinform taxpayers of the years to which the market values applyand that the values are final values;
(2) by county, city or town, school district excess referendalevy, remaining school district levy, regional library district,if in existence, the total of the metropolitan special taxingdistricts as defined in paragraph (i) and the sum of theremaining special taxing districts, and as a total of the taxingauthorities, including all special taxing districts, the proposedor, for a town, final net tax on the property for taxes payablethe following year and the actual tax for taxes payable thecurrent year. For the purposes of this subdivision, "schooldistrict excess referenda levy" means school district taxes foroperating purposes approved at referendums, including those taxesbased on net tax capacity as well as those based on market value. "School district excess referenda levy" does not include schooldistrict taxes for capital expenditures approved at referendumsor school district taxes to pay for the debt service on bondsapproved at referenda. In the case of the city of Minneapolis,the levy for the Minneapolis library board and the levy forMinneapolis park and recreation shall be listed separately fromthe remaining amount of the city's levy. In the case of a parcelwhere tax increment or the fiscal disparities areawide taxapplies, the proposed tax levy on the captured value or theproposed tax levy on the tax capacity subject to the areawide taxmust each be stated separately and not included in the sum of thespecial taxing districts; and
(3) the increase or decrease in the amounts in clause (2) fromtaxes payable in the current year to proposed or, for a town,final taxes payable the following year, expressed as a dollaramount and as a percentage.
(e) The notice must clearly state that the proposed or finaltaxes do not include the following:
(1) special assessments;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9923(2) levies approved by the voters after the date the proposedtaxes are certified, including bond referenda, school districtlevy referenda, and levy limit increase referenda;
(3) amounts necessary to pay cleanup or other costs due to anatural disaster occurring after the date the proposed taxes arecertified;
(4) amounts necessary to pay tort judgments against the taxingauthority that become final after the date the proposed taxes arecertified; and
(5) the contamination tax imposed on properties which receivedmarket value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the countyauditor to prepare or the county treasurer to deliver the noticeas required in this section does not invalidate the proposed orfinal tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this sectionlists the property as nonhomestead and the homeowner providessatisfactory documentation to the county assessor that theproperty is owned and has been used as the owner's homesteadprior to June 1 of that year, the assessor shall reclassify theproperty to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as aresidence for lease or rental periods of 30 days or more, thetaxpayer must either:
(1) mail or deliver a copy of the notice of proposed propertytaxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on thepremises of the property.
The notice must be mailed or posted by the taxpayer by November27 or within three days of receipt of the notice, whichever islater. A taxpayer may notify the county treasurer of the addressof the taxpayer, agent, caretaker, or manager of the premises towhich the notice must be mailed in order to fulfill therequirements of this paragraph.
(i) For purposes of this subdivision, subdivisions 5a and 6,"metropolitan special taxing districts" means the followingtaxing districts in the seven-county metropolitan area that levya property tax for any of the specified purposes listed below:
(1) metropolitan council under section 473.132, 473.167,473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
(2) metropolitan airports commission under section 473.667,473.671, or 473.672; and
(3) metropolitan mosquito control commission under section473.711.
(j) For taxes levied in 1996, payable in 1997 only, in thecase of a statutory or home rule charter city or town thatexercises the local levy option provided in section 473.388,subdivision 7, the notice of its proposed taxes may include astatement of the amount by which its proposed tax increase fortaxes payable in 1997 is attributable to its exercise of thatoption, together with a statement that the levy of themetropolitan council was decreased by a similar amount because ofthe exercise of that option.
For purposes of this section, any levies made by the regionalrail authorities in the county of Anoka, Carver, Dakota,Hennepin, Ramsey, Scott, or Washington under chapter 398A shallbe included with the appropriate county's levy and shall bediscussed at that county's public hearing.
Sec. 2. Minnesota Statutes 1995 Supplement, section 275.065,subdivision 6, is amended to read:
Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.]Between November 29 and December 20, the governing bodies of thecity, county, metropolitan special taxing districts as defined insubdivision 3, paragraph (i), and regional library districtsshall each hold a public hearing to discuss and seek publiccomment on its final budget and property tax levy for taxespayable in the following year, and the governing body of theschool district shall hold a public hearing to review its currentbudget and proposed property tax levy for taxes payable in thefollowing year. The metropolitan special taxing districts shallbe required to hold only a single joint public hearing, thelocation of which will be determined by the affected metropolitanagencies.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9924At a subsequent hearing, each county, school district, city,and metropolitan special taxing district may amend its proposedproperty tax levy and must adopt a final property tax levy. Eachcounty, city, and metropolitan special taxing district may alsoamend its proposed budget and must adopt a final budget at thesubsequent hearing. A school district is not required to adoptits final budget at the subsequent hearing. The subsequenthearing of a taxing authority must be held on a date subsequentto the date of the taxing authority's initial public hearing, orsubsequent to the date of its continuation hearing if acontinuation hearing is held. The subsequent hearing may be heldat a regularly scheduled board or council meeting or at a specialmeeting scheduled for the purposes of the subsequent hearing. The subsequent hearing of a taxing authority does not have to becoordinated by the county auditor to prevent a conflict with aninitial hearing, a continuation hearing, or a subsequent hearingof any other taxing authority. All subsequent hearings must beheld prior to five working days after December 20 of the levyyear.
The time and place of the subsequent hearing must be announcedat the initial public hearing or at the continuation hearing.
The property tax levy certified under section 275.07 by a city,county, metropolitan special taxing district, regional librarydistrict, or school district must not exceed the proposed levydetermined under subdivision 1, except by an amount up to the sumof the following amounts:
(1) the amount of a school district levy whose voters approveda referendum to increase taxes under section 124.82, subdivision3, 124A.03, subdivision 2, 124B.03, subdivision 2, or 136C.411,after the proposed levy was certified;
(2) the amount of a city or county levy approved by the votersafter the proposed levy was certified;
(3) the amount of a levy to pay principal and interest on bondsissued or approved by the voters under section 475.58 after theproposed levy was certified;
(4) the amount of a levy to pay costs due to a natural disasteroccurring after the proposed levy was certified, if that amountis approved by the commissioner of revenue under subdivision6a;
(5) the amount of a levy to pay tort judgments against a taxingauthority that become final after the proposed levy wascertified, if the amount is approved by the commissioner ofrevenue under subdivision 6a;
(6) the amount of an increase in levy limits certified to thetaxing authority by the commissioner of children, families, andlearning or the commissioner of revenue after the proposedlevy was certified; and
(7) the amount required under section 124.755.
At the hearing under this subdivision, the percentage increasein property taxes proposed by the taxing authority, if any, andthe specific purposes for which property tax revenues are beingincreased must be discussed.
During the discussion, the governing body shall hear commentsregarding a proposed increase and explain the reasons for theproposed increase. The public shall be allowed to speak and toask questions. At the subsequent hearing held as provided inthis subdivision, the governing body, other than the governingbody of a school district, shall adopt its final property taxlevy prior to adopting its final budget.
If the hearing is not completed on its scheduled date, thetaxing authority must announce, prior to adjournment of thehearing, the date, time, and place for the continuation of thehearing. The continued hearing must be held at least fivebusiness days but no more than 14 business days after theoriginal hearing.
The hearing must be held after 5:00 p.m. if scheduled on a dayother than Saturday. No hearing may be held on a Sunday. Thegoverning body of a county shall hold a hearing on the secondTuesday in December each year, and may hold additional hearingson other dates before December 20 if necessary for theconvenience of county residents. If the county needs acontinuation of its hearing, the continued hearing shall be heldon the third Tuesday in December. If the third Tuesday inDecember falls on December 21, the county's continuation hearingshall be held on Monday, December 20. The county auditor shallprovide for the coordination of hearing dates for all cities andschool districts within the county.
The metropolitan special taxing districts shall hold a jointpublic hearing on the first Monday of December. A continuationhearing, if necessary, shall be held on the second Monday ofDecember.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9925By August 10, each school board and the board of the regionallibrary district shall certify to the county auditors of thecounties in which the school district or regional librarydistrict is located the dates on which it elects to hold itshearings and any continuations. If a school board or regionallibrary district does not certify the dates by August 10, theauditor will assign the hearing date. The dates elected orassigned must not conflict with the hearing dates of the countyor the metropolitan special taxing districts. By August 20, thecounty auditor shall notify the clerks of the cities within thecounty of the dates on which school districts and regionallibrary districts have elected to hold their hearings. At thetime a city certifies its proposed levy under subdivision 1 itshall certify the dates on which it elects to hold its hearingsand any continuations. The city must not select dates thatconflict with the county hearing dates, metropolitan specialtaxing district dates, or with those elected by or assigned tothe school districts or regional library district in which thecity is located.
The county hearing dates and the city, metropolitan specialtaxing district, regional library district, and school districthearing dates must be designated on the notices required undersubdivision 3. The continuation dates need not be stated on thenotices.
This subdivision does not apply to towns and special taxingdistricts other than regional library districts and metropolitanspecial taxing districts.
Notwithstanding the requirements of this section, the employeris required to meet and negotiate over employee compensation asprovided for in chapter 179A.
Sec. 3. Minnesota Statutes 1994, section 473.388, subdivision5, is amended to read:
Subd. 5. [OTHER ASSISTANCE.] A city or town receivingassistance or levying a transit tax under this section mayalso receive assistance from the council under section 473.384. In applying for assistance under that section an applicant mustdescribe the portion of the its available localtransit funds or local transit taxes which are notobligated to subsidize its replacement transitservice and which the applicant proposes to use to subsidizeadditional service. An applicant which has exhausted itsavailable local transit funds or local transit taxes mayuse any other local subsidy funds to complete the required localshare.
Sec. 4. Minnesota Statutes 1994, section 473.388, is amendedby adding a subdivision to read:
Subd. 7. [LOCAL LEVY OPTION.] (a) A statutory orhome rule charter city or town that is eligible for assistanceunder this section, in lieu of receiving the assistance, may levya tax for payment of the operating and capital expenditures fortransit and other related activities and to provide for paymentof obligations issued by the municipality for such purposes,provided that the tax must be sufficient to maintain the level oftransit service provided in the municipality in the previousyear.
(b) The transit tax revenues derived by the municipality maynot exceed:
(1) for the first transit levy year and any subsequenttransit levy year immediately following a year in which themunicipality declines to make the levy, the maximum availablelocal transit funds for the municipality for taxes payable in thecurrent year under section 473.446, calculated as if thepercentage of transit tax revenues for the municipality were 88percent instead of 90 percent, and multiplied by themunicipality's market value adjustment ratio; and
(2) for taxes levied in any year that immediately follows ayear in which the municipality elects to levy under thissubdivision, the maximum transit tax that the municipality mayhave levied in the previous year under this subdivision,multiplied by the municipality's market value adjustmentratio.
The commissioner of revenue shall certify the municipality'slevy limitation under this subdivision to the municipality byJune 1 of the levy year. The tax must be accumulated and kept ina separate fund to be known as the "replacement transitfund."
(c) To enable the municipality to receive revenues describedin clauses (2) and (3) of the definition of "tax revenues" insubdivision 4, that would otherwise be lost if the municipality'stransit tax levy was not treated as a successor levy to that madeby the council under section 473.446:
(1) in the first transit levy year and any subsequenttransit levy year immediately following a year in which themunicipality declined to make the levy, 88 percent of thecouncil's nondebt spread levy for the current taxes payable yearshall be treated as levied by the municipality, and not thecouncil, for purposes of section 473F.08, subdivision 3, for thepurpose of determining its local tax rate for the preceding year;and
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9926(2) 88 percent of the revenues described in clause (3) ofthe definition of "tax revenues" in subdivision 4, payable in thefirst transit levy year, or payable in any subsequent transitlevy year following a year in which a municipality declined tomake the levy, shall be permanently transferred from the councilto the municipality. If a municipality levies a tax under thissubdivision in one year, but declines to levy in a subsequentyear, the aid transferred under this clause shall be transferredback to the council.
(d) Any transit taxes levied under this subdivision are notsubject to, or counted towards, any limit hereafter imposed bylaw on the levy of taxes upon taxable property within anymunicipality unless the law specifically includes the transittax.
(e) This subdivision is consistent with the transit redesignplan. Eligible municipalities opting to levy the transit taxunder this subdivision shall continue to meet the regionalperformance standards established by the council.
(f) Within the designated Americans with Disabilities Actarea, metro mobility remains the obligation of the state.
(g) For purposes of this subdivision, "transit levy year" isany year in which the municipality elects to levy under thissubdivision.
(h) A municipality may not levy taxes under this subdivisionin any year unless it notifies the council and the commissionerof revenue of its intent to levy before July 1 of the levy year. The notification must include the amount of the municipality'sproposed transit tax for the current levy year.
Sec. 5. Minnesota Statutes 1995 Supplement, section 473.446,subdivision 1, is amended to read:
Subdivision 1. [TAXATION WITHIN TRANSIT TAXING DISTRICT.] Forthe purposes of sections 473.405 to 473.449 and the metropolitantransit system, except as otherwise provided in this subdivisionand subdivision 1b, the council shall levy each year uponall taxable property within the metropolitan transit taxingdistrict, defined in subdivision 2, a transit tax consistingof:
(a) an amount which shall be used for payment of the expensesof operating transit and paratransit service and to provide forpayment of obligations issued by the council under section473.436, subdivision 6;
(b) an additional amount, if any, the council determines to benecessary to provide for the full and timely payment of itscertificates of indebtedness and other obligations outstanding onJuly 1, 1985, to which property taxes under this section havebeen pledged; and
(c) an additional amount necessary to provide full and timelypayment of certificates of indebtedness, bonds, includingrefunding bonds or other obligations issued or to be issued undersection 473.39 by the council for purposes of acquisition andbetterment of property and other improvements of a capital natureand to which the council has specifically pledged tax leviesunder this clause.
The property tax levied by the council for general purposesunder clause paragraph (a) must not exceed thefollowing amount for the years specified:
(1) for taxes payable in 1995, the council's property tax levylimitation for general transit purposes is equal to the formerregional transit board's property tax levy limitation for generaltransit purposes under this subdivision, for taxes payable in1994, multiplied by an index for market valuation changes equalto the total market valuation of all taxable property locatedwithin the metropolitan transit taxing district for the currenttaxes payable year divided by the total market valuation of alltaxable property located within the metropolitan transit taxingdistrict for the previous taxes payable year; and
(2) for taxes payable in 1996 and subsequent years, the productof (i) the council's property tax levy limitation for generaltransit purposes for the previous year determined under thissubdivision before reduction by the amount levied by anymunicipality in the previous year under section 473.388,subdivision 7, multiplied by (ii) an index for marketvaluation changes equal to the total market valuation of alltaxable property located within the metropolitan transit taxingdistrict for the current taxes payable year divided by the totalmarket valuation of all taxable property located within themetropolitan transit taxing district for the previous taxespayable year, minus the amount levied by any municipality inthe current levy year under section 473.388, subdivision7.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9927The portion of the property tax levy for transit districtoperating purposes attributable to a municipality that hasexercised a local levy option under section 473.388, subdivision7, is the amount as determined under subdivision 1b. The portionof the property tax levy for transit district operating purposesattributable to the remaining municipalities within the transitdistrict is found by subtracting the portions attributable to themunicipalities that have exercised a local levy option undersection 473.388, subdivision 7.
For the taxes payable year 1995, the index for market valuationchanges shall be multiplied by an amount equal to the sum of theregional transit board's property tax levy limitation for thetaxes payable year 1994 and $160,665. The $160,665 increaseshall be a permanent adjustment to the levy limit base used indetermining the regional transit board's property tax levylimitation for general purposes for subsequent taxes payableyears.
For the purpose of determining the council's property tax levylimitation for general transit purposes under this subdivision,"total market valuation" means the total market valuation of alltaxable property within the metropolitan transit taxing districtwithout valuation adjustments for fiscal disparities (chapter473F), tax increment financing (sections 469.174 to 469.179), andhigh voltage transmission lines (section 273.425).
The county auditor shall reduce the tax levied pursuant to thissubdivision section and section 473.388 on allproperty within statutory and home rule charter cities and townsthat receive full-peak service and limited off-peak service by anamount equal to the tax levy that would be produced by applying arate of 0.510 percent of net tax capacity on the property. Thecounty auditor shall reduce the tax levied pursuant to thissubdivision section and section 473.388 on allproperty within statutory and home rule charter cities and townsthat receive limited peak service by an amount equal to the taxlevy that would be produced by applying a rate of 0.765 percentof net tax capacity on the property. The amounts so computed bythe county auditor shall be submitted to the commissioner ofrevenue as part of the abstracts of tax lists required to befiled with the commissioner under section 275.29. Any prior yearadjustments shall also be certified in the abstracts of taxlists. The commissioner shall review the certifications todetermine their accuracy and may make changes in thecertification as necessary or return a certification to thecounty auditor for corrections. The commissioner shall pay tothe council and to the municipalities levying under section473.388, subdivision 7, the amounts certified by the countyauditors on the dates provided in section 273.1398,apportioned between the council and the municipality in the sameproportion as the total transit levy is apportioned within themunicipality. There is annually appropriated from thegeneral fund in the state treasury to the department of revenuethe amounts necessary to make these payments.
For the purposes of this subdivision, "full-peak and limitedoff-peak service" means peak period regular route service, plusweekday midday regular route service at intervals longer than 60minutes on the route with the greatest frequency; and "limitedpeak period service" means peak period regular route serviceonly.
For the purposes of property taxes payable in the followingyear, the council shall annually determine which cities and townsqualify for the 0.510 percent or 0.765 percent tax capacity ratereduction and shall certify this list to the county auditor ofthe county wherein such cities and towns are located on or beforeSeptember 15. No changes may be made to the annual list afterSeptember 15.
Sec. 6. Minnesota Statutes 1994, section 473.446, is amendedby adding a subdivision to read:
Subd. 1b. [DEDUCTION OF LOCAL TRANSIT LEVY FOR ELIGIBLEMUNICIPALITIES.] (a) The maximum the council may levy forgeneral purposes under subdivision 1, paragraph (a), upon taxableproperty within a municipality levying taxes under section473.388, subdivision 7, is the combined transit tax levied withinthe municipality in the previous year under subdivision 1 andsection 473.388, subdivision 7, multiplied by the municipality'smarket value adjustment ratio, minus the amount to be levied bythe municipality under section 473.388, subdivision 7, for thecurrent levy year.
(b) For purposes of this subdivision:
(1) "municipality" means a municipality levying taxes undersection 473.388, subdivision 7, for replacement transitservice;
(2) "market value adjustment ratio" means the index formarket valuation changes described in this section, as applied toindividual municipalities; and
(3) "tax revenues" has the meaning given the term in section473.388, subdivision 4.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9928Sec. 7. Minnesota Statutes 1995 Supplement, section 473.446,subdivision 8, is amended to read:
Subd. 8. [STATE REVIEW.] The commissioner of revenue shallcertify the council's levy limitation under this section to thecouncil by August 1 of the levy year. The council must certifyits proposed property tax levy under this section to thecommissioner of revenue by September 1 of the levy year. Thecommissioner of revenue shall annually determine whether theproperty tax for transit purposes certified by the council forlevy following the adoption of its proposed budget is within thelevy limitation imposed by subdivision subdivisions1 and 1b. The commissioner shall also annually determinewhether the transit tax imposed on all taxable property withinthe metropolitan transit area but outside of the metropolitantransit taxing district is within the levy limitation imposed bysubdivision 1a. The determination must be completed prior toSeptember 10 of each year. If current information regardingmarket valuation in any county is not transmitted to thecommissioner in a timely manner, the commissioner may estimatethe current market valuation within that county for purposes ofmaking the calculations.
Sec. 8. [APPLICATION.]
This article applies in the counties of Anoka, Carver,Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 9. [EFFECTIVE DATE.]
Sections 1 to 7 are effective for taxes levied in 1996,payable in 1997 and subsequent years.
Section 1. Minnesota Statutes 1995 Supplement, section 13.69,subdivision 1, is amended to read:
Subdivision 1. [CLASSIFICATIONS.] (a) The following governmentdata of the department of public safety are private data:
(1) medical data on driving instructors, licensed drivers, andapplicants for parking certificates and special license platesissued to physically handicapped persons;
(2) other data on holders of a disability certificate undersection 169.345, except that data that are not medical data maybe released to law enforcement agencies; and
(3) social security numbers in driver's license and motorvehicle registration records, except that social security numbersmust be provided to the department of revenue for purposes of taxadministration and the department of labor and industry forpurposes of workers' compensation administration andenforcement.; and
(4) data on persons listed as designated parents undersection 171.07, subdivision 11, except that the data must bereleased to:
(i) law enforcement agencies for the purpose of verifyingthat an individual is a designated parent; or
(ii) law enforcement agencies who state that the licenseholder is unable to communicate at that time and that theinformation is necessary for notifying the designated parent ofthe need to care for a child of the license holder.
(b) The following government data of the department of publicsafety are confidential data: data concerning an individual'sdriving ability when that data is received from a member of theindividual's family.
Sec. 2. Minnesota Statutes 1994, section 171.07, is amended byadding a subdivision to read:
Subd. 11. [DESIGNATED PARENT.] (a) Upon the writtenrequest of the applicant on a form developed by the department,which contains the information specified in paragraph (b), andupon payment of an additional fee of $3.50, the department shallissue a driver's license or Minnesota identification card bearinga symbol or other appropriate identifier indicating that thelicense holder has appointed an individual to serve as adesignated parent under chapter 257A.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9929(b) The form shall provide as follows:
"...(Name of parent(s))... appoints ...(name of designatedparent)... to provide care for ...(name of child or children)...when requested by the parent(s) or when the parent(s) is unableto care for the child (children) and unable to request thedesignated parent's assistance.
The designated parent will care for the child (children)named in this form for (choose one of the following):
(indicate a specified period of time that is less than oneyear); or
(indicate that care is to be provided for one year).
The designated parent has the powers and duties to makedecisions and meet the child's (children's) needs in the areaschecked or specified below:
education . . . . .
health care . . . . .
religion . . . .
day care . . . . .
recreation . . . . .
other . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
The designated parent (choose one of the following):
is . . .
is not . . .
authorized to make decisions about financial issues andcontrol financial resources provided for the child (children) bythe parent.
This designated parent agreement is effective for four yearsfollowing the date it is signed by the parent(s), designatedparent, any child age 14 or older, and any alternate designatedparent. However, the agreement may be canceled by a parent, adesignated parent, or an alternate designated parent at any timebefore that date, upon notice to the other parties to theagreement.
(Parent(s) signature(s) and Minnesota driver's license(s) orMinnesota identification card number(s))
(Designated parent signature, Minnesota driver's license orMinnesota identification card number, address, and telephonenumber)
(Alternate designated parent signature, Minnesota driver'slicense or Minnesota identification card number, address, andtelephone number)
(Child age 14 or older signature . . . . .)
(Date . . . . .)
(Notarization . . . . .)"
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9930(c) The department shall maintain a computerized recordssystem of all persons listed as designated parents by driver'slicense and identification card applicants. This data shall bereleased to appropriate law enforcement agencies under section13.69. Upon a parent's request and payment of a fee of $3.50,the department shall revise its list of designated parents andalternates to reflect a change in the appointment of a designatedparent.
(d) At the request of the license or card holder, thedepartment shall cancel the designated parent indication withoutadditional charge. However, this paragraph does not prohibit afee that may be applicable for a duplicate or replacement licenseor card, renewal of a license, or other service applicable to adriver's license or identification card.
(e) Notwithstanding sections 13.08, subdivision 1, and13.69, the department and department employees are conclusivelypresumed to be acting in good faith when employees rely onstatements made, in person or by telephone, by persons purportingto be law enforcement and subsequently release informationdescribed in paragraph (b). When acting in good faith, thedepartment and department personnel are immune from civilliability and not subject to suit for damages resulting from therelease of this information.
(f) The department and its employees:
(1) have no duty to inquire or otherwise determine whether aform submitted under this subdivision contains the signatures ofall parents who have legal custody of a child; and
(2) are immune from all civil liability and not subject tosuit for damages resulting from a claim that any parent withlegal custody of a child has not signed the form.
(g) Of the fees received by the department under thissubdivision:
(1) Up to $111,000 received in fiscal year 1997 and up to$61,000 received in subsequent fiscal years must be deposited inthe general fund.
(2) All other fees must be deposited in the trunk highwayfund.
Sec. 3. Minnesota Statutes 1994, section 171.26, is amended toread:
171.26 [MONEY CREDITED TO FUNDS.]
All money received under this chapter must be paid into thestate treasury and credited to the trunk highway fund, except asprovided in sections 171.06, subdivision 2a; 171.07,subdivision 11, paragraph (g); 171.12, subdivision 8;and 171.29, subdivision 2, paragraph (b).
Sec. 4. [257A.01] [DESIGNATED PARENT AGREEMENT.]
Subdivision 1. [DESIGNATION IN AGREEMENT.] A parentwho has legal custody of a child may execute a designated parentagreement that names an adult to serve as a designated parent tocare for the parent's minor child for a period of time specifiedin the designated parent agreement, but not to exceed oneyear.
Subd. 2. [CONSENTS AND NOTICE REQUIRED.] Theagreement must be executed by all parents with physical custodyof the child. The agreement becomes operative when none of theparents with physical custody is able to care for the child. Assoon as practicable after executing an agreement, a copy of theagreement must be given to any noncustodial parent of the childand to every child age 14 or older to whom the agreementapplies.
Sec. 5. [257A.02] [DESIGNATED PARENT; ALTERNATE.]
An individual acting as a designated parent is exempt inthat role from any statute or administrative rule requiring afoster care license, unless the child was placed in the home ofthe designated parent by a child-placing agency pursuant to avoluntary placement agreement or court order, but must providethe notice required by section 257A.09 if applicable. A parentwho has named a guardian by will for the parent's children mayname that guardian or another individual as a designated parentfor the child. A parent who has legal custody of more than onechild may appoint the same or a different designated parent foreach child.
A parent may appoint an alternate designated parent whowould serve if the designated parent is unwilling or unable toserve. All the provisions of this chapter dealing with adesignated parent apply to an alternate designated parent.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9931Sec. 6. [257A.03] [POWERS AND DUTIES OF DESIGNATED PARENT.]
Subdivision 1. [GENERAL.] A designated parent hasall the powers regarding the care, custody, and financialinterests of a minor child specified in the designated parentagreement, except as otherwise provided in this section. Adesignated parent does not have the power to consent to marriageor adoption of the child.
Subd. 2. [NOTICE TO NONCUSTODIAL PARENT; VISITATION.]As soon as practicable after assuming care of a child, thedesignated parent shall notify any noncustodial parent that thedesignated parent has assumed care of the child. Court-orderedvisitation rights of a noncustodial parent continue while thechild is in the care of the designated parent, unless otherwisemodified by the court. A designated parent agreement does notaffect the right of a parent without physical custody to bring acustody motion under chapter 518.
Subd. 3. [CHILD SUPPORT.] A preexisting childsupport order is not suspended or terminated during the time achild is cared for by a designated parent, unless otherwiseprovided by court order. A designated parent has a cause ofaction for child support against an absent parent under section256.87, subdivision 5.
Sec. 7. [257A.04] [DURATION.]
Subdivision 1. [IN GENERAL.] Unless canceled earlierunder section 257A.07 by a parent or the designated parent, adesignated parent agreement is effective for four years, afterwhich date a new agreement may be entered. The new agreement mayname the same or a different designated parent. A designatedparent agreement automatically terminates as to any child whenthat child reaches age 18 or is lawfully married.
Subd. 2. [DEATH OF A PARENT.] If a parent dies whilea designated parent agreement is in effect, and there is noliving parent able to care for the child, the designated parentshall care for the child until a guardian appointed by will isable to take custody of the child or until a court orderotherwise provides for the care of the child. However, thedesignated parent may cancel the agreement at any time undersection 257A.07.
Sec. 8. [257A.05] [FORM.]
Subdivision 1. [WRITING.] A designated parentagreement must be made in writing and all signatures must benotarized.
Subd. 2. [DESIGNATED PARENT INDICATION ON DRIVER'SLICENSE.] A parent who wishes to have a designated parentindication placed on the parent's driver's license oridentification card under section 171.07, subdivision 11, mustsubmit a copy of the notarized designated parent agreement to thedepartment of public safety and pay any required fee.
Sec. 9. [257A.06] [MULTIPLE AGREEMENTS.]
If more than one otherwise valid designated parent agreementexists regarding the same child, the priority among agreements isdetermined as follows:
(1) an agreement that has been submitted to the departmentof public safety has priority over any other agreement;
(2) if one or more agreements have been submitted to thedepartment of public safety under section 171.07, subdivision 11,the agreement with the most recent date that has been submittedto the department controls; and
(3) if multiple agreements exist, none of which has beensubmitted to the department of public safety, the agreement withthe most recent date controls.
Sec. 10. [257A.07] [CANCELLATION.]
Subdivision 1. [HOW AND BY WHOM.] A parent maycancel a designated parent agreement at any time. The parentshall notify the designated parent of the cancellation. If thedesignated parent is caring for the child at the time ofcancellation, the child must be returned to the parentimmediately upon the parent's request.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9932A designated parent may decline to serve at any time, andthe parent must cancel the agreement immediately upon request bythe designated parent. If a designated parent is caring for achild when the designated parent cancels the agreement, theparent must take physical custody of the child immediately. Ifthe parent is unable to resume physical custody at thattime:
(1) the parent may name a new designated parent to care forthe child who shall immediately take custody of the child;or
(2) if that is not possible, the designated parent shallcontact the local social service agency, which shall assess theneeds and circumstances of the child, including the likelihood ofthe noncustodial parent taking custody, and the need forplacement and court action on behalf of the child, ifnecessary.
Subd. 2. [NOTICE TO DEPARTMENT OF PUBLIC SAFETY.] Aparent who has had a designated parent indication placed on theparent's driver's license or identification card under section171.07, subdivision 11, has the responsibility to notify thedepartment of public safety in writing whenever a designatedparent agreement is canceled or a new designated parent oralternate is chosen.
Sec. 11. [257A.08] [EXTENDING PERIOD OF CARE.]
If a parent is unable to resume caring for a child uponexpiration of the period of care indicated in the designatedparent agreement, the period of care may be extended for a lengthof time agreed by the parent and designated parent, but not toexceed one year. If a parent cannot be contacted or is unable tocommunicate a decision about the child's care when the agreedperiod of care expires, the designated parent may:
(1) petition the juvenile court to authorize continued careby the designated parent until the parent is able to resume thechild's care, or for one year, whichever is sooner; or
(2) contact the local social service agency, which shallassess the needs and circumstances of the child, including thelikelihood of the noncustodial parent taking custody of thechild, and the need for placement and court action on behalf ofthe child, if necessary.
Sec. 12. [257A.09] [NOTICE TO LOCAL SOCIAL SERVICE AGENCY;INVESTIGATION.]
If a child has been in the home of a designated parent for30 days, the designated parent shall promptly notify the localsocial service agency, any adult siblings of the child, and anyliving paternal or maternal grandparents, of thefollowing:
(1) the child's name, home address, and the name and homeaddress of the child's parents;
(2) that the child is in the home under a designated parentagreement; and
(3) the length of time the child is expected to remain inthe designated parent's home.
The local social service agency may visit the child and thehome and may continue to visit and supervise the home and thechild or take other appropriate action to assure that the welfareof the child is fully protected.
Sec. 13. [257A.10] [LOCAL SOCIAL SERVICE AGENCYEVALUATION.]
When a local social service agency assumes responsibilityfor a child pursuant to a voluntary placement agreement or byorder of the court, and the parent requests that placement bewith a designated parent, the local social service agency mustevaluate the appropriateness of the child's placement with thedesignated parent. If placement with the designated parent isdeemed to be in the child's best interest, the designated parentmust comply with licensure requirements under Minnesota Statutes,chapter 245A, in order to provide foster care for thechild.
Sec. 14. Minnesota Statutes 1994, section 260.173, subdivision2, is amended to read:
Subd. 2. Notwithstanding the provisions of subdivision 1, ifthe child had been taken into custody pursuant to section260.165, subdivision 1, clause (a) or clause (c)(2), and is notalleged to be delinquent, the child shall be detained in theleast restrictive setting consistent with the child's health andwelfare and in closest proximity to the child's family aspossible. Placement may be with a child's relative, adesignated parent under chapter 257A, or in a shelter carefacility.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9933Sec. 15. Minnesota Statutes 1994, section 524.5-505, isamended to read:
524.5-505 [DELEGATION OF POWERS BY PARENT OR GUARDIAN.]
A parent or a guardian of a minor or incapacitated person, by aproperly executed power of attorney, may delegate to anotherperson, for a period not exceeding six months, any powersregarding care, custody, or property of the minor or ward, exceptthe power to consent to marriage or adoption of a minor ward. A parent of a minor child may delegate those powers for aperiod not exceeding one year by a designated parent agreementunder chapter 257A.
Sec. 16. [EFFECTIVE DATE.]
Sections 1 to 15 are effective July 1, 1996.
Section 1. Minnesota Statutes 1994, section 162.02,subdivision 7, is amended to read:
Subd. 7. [ESTABLISHMENT IN NEW LOCATION OR OVER ESTABLISHEDROADS.] The county board of any county may establish and locateany county state-aid highway on new location where there is noexisting road, or it may establish and locate the highway upon orover any established road or street or a specified portionthereof within its limits; provided, that. Except asprovided in subdivision 8a, no county state-aid highway shallbe established or located within the corporate limits of any citywithout the approval of the governing body of the city, exceptthat when a county state-aid highway is relocated the approval ofthe plans by the governing body shall be deemed to be a transferof the previous location of the highway to the jurisdiction ofthe city. The approval shall be in the manner and form requiredby the commissioner.
Sec. 2. Minnesota Statutes 1994, section 162.02, subdivision8, is amended to read:
Subd. 8. [APPROVAL BY CITY.] Except as provided insubdivision 8a, no portion of the county state-aid highwaysystem lying within the corporate limits of any city shall beconstructed, reconstructed, or improved nor the grade thereofchanged without the prior approval of the plans by the governingbody of such city and the approval shall be in the manner andform required by the commissioner.
Sec. 3. Minnesota Statutes 1994, section 162.02, is amended byadding a subdivision to read:
Subd. 8a. [DISPUTE RESOLUTION BOARD.] If a city hasfailed to approve establishment, construction, reconstruction, orimprovement of a county state-aid highway within its corporatelimits under subdivision 7 or 8, the county board may, byresolution, request the commissioner to appoint a disputeresolution board consisting of one county commissioner, onecounty engineer, one city council member or city mayor, one cityengineer, and one representative of the department oftransportation. The board shall review the proposed change andmake a recommendation to the commissioner. Notwithstanding anyother law, the commissioner may approve the establishment,construction, reconstruction, or improvement of a countystate-aid highway recommended by the board.
Sec. 4. Minnesota Statutes 1994, section 162.07, subdivision1, is amended to read:
Subdivision 1. [FORMULA.] After deducting for administrativecosts and for the disaster account and research account and statepark roads as heretofore provided, the remainder of the total sumprovided for in section 162.06, subdivision 1, shall beidentified as the apportionment sum and shall be apportioned bythe commissioner to the several counties on the basis of theneeds of the counties as determined in accordance with thefollowing formula:
(1) An amount equal to ten percent of the apportionment sumshall be apportioned equally among the 87 counties.
(2) An amount equal to ten percent of the apportionment sumshall be apportioned among the several counties so that eachcounty shall receive of such amount the percentage that its motorvehicle registration for the calendar year preceding the one lastpast, determined by residence of registrants, bears to the totalstatewide motor vehicle registration.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9934 (3) An amount equal to 30 percent of the apportionment sumshall be apportioned among the several counties so that eachcounty shall receive of such amount the percentage that its totalmiles lane-miles of approved county state-aidhighways bears to the total miles lane-miles ofapproved statewide county state-aid highways. In 1997 andsubsequent years no county may receive, as a result of anapportionment under this clause based on lane-miles rather thanmiles of approved county state-aid highways, an apportionmentthat is less than its apportionment in 1996.
(4) An amount equal to 50 percent of the apportionment sumshall be apportioned among the several counties so that eachcounty shall receive of such amount the percentage that its moneyneeds bears to the sum of the money needs of all of theindividual counties; provided, that the percentage of such amountthat each county is to receive shall be adjusted so that eachcounty shall receive in 1958 a total apportionment at least tenpercent greater than its total 1956 apportionments from the stateroad and bridge fund; and provided further that those countieswhose money needs are thus adjusted shall never receive apercentage of the apportionment sum less than the percentage thatsuch county received in 1958.
Sec. 5. Minnesota Statutes 1994, section 162.07, subdivision5, is amended to read:
Subd. 5. [SCREENING BOARD.] On or before September 1 of eachyear the county engineer of each county shall forward to thecommissioner, on forms prepared by the commissioner, allinformation relating to the mileage, in lane-miles, of thecounty state-aid highway system in the county, and the moneyneeds of the county that the commissioner deems necessary inorder to apportion the county state-aid highway fund inaccordance with the formula heretofore set forth. Upon receiptof the information the commissioner shall appoint a boardconsisting of nine the following countyengineers. The board shall be so selected that each countyengineer appointed shall be from a different state highwayconstruction district:
(1) two county engineers from the metropolitan highwayconstruction district;
(2) one county engineer from each nonmetropolitan highwaydistrict; and
(3) one additional county engineer from each county with apopulation of 175,000 or more.
No county engineer shall be appointed under clause (1) or(2) so as to serve consecutively for more than twofour years. The board shall investigate and review theinformation submitted by each county and shall on or before thefirst day of November of each year submit its findings andrecommendations in writing as to each county's mileagelane-mileage and money needs to the commissioner on a formprepared by the commissioner. Final determination of themileage lane-mileage of each system and the moneyneeds of each county shall be made by the commissioner.
Sec. 6. Minnesota Statutes 1994, section 162.07, subdivision6, is amended to read:
Subd. 6. [ESTIMATES TO BE MADE IF INFORMATION NOT PROVIDED.]In the event that any county shall fail to submit the informationprovided for herein, the commissioner shall estimate themileage lane-mileage and the money needs of thecounty. The estimate shall be used in determining theapportionment formula. The commissioner may withhold payment ofthe amount apportioned to the county until the information issubmitted."
Delete the title and insert:
"A bill for an act relating to the organization and operationof state government; appropriating money to the department oftransportation and other agencies; providing for speed limits andrecording of speeding violations; authorizing special licenseplates; providing for designated parent agreements; authorizingcertain tax levies for replacement transit service; providing forhighway disputes between counties and municipalities; amendingMinnesota Statutes 1994, sections 115A.9651, subdivision 1;160.83, by adding a subdivision; 160.85, by adding a subdivision;161.085; 161.14, by adding subdivisions; 161.36, subdivisions 1,2, 3, and 4; 161.46, subdivision 3; 161.53; 162.02, subdivisions7, 8, and by adding a subdivision; 162.07, subdivisions 1, 5, and6; 162.08, subdivisions 4 and 7; 162.14, subdivision 6; 168.013,subdivision 3; 168.042, subdivision 8, and by adding asubdivision; 168.12, subdivision 2; 168.123, subdivisions 1 and4; 168.15; 168.33, by adding a subdivision; 169.07; 169.121,subdivision 3; 169.14, subdivision 2, and by adding asubdivision; 169.82, subdivision 3; 169.85; 169.871, by adding asubdivision; 169.983; 169.99, subdivision 1b; 171.05, by adding asubdivision; 171.07, by adding a subdivision; 171.12, subdivision6; 171.26; 173.02, subdivision 6; 173.07, subdivision 1; 174.04;222.37, subdivision 1; 260.173, subdivision 2; 473.388,subdivision 5, and by adding a subdivision; 473.446, by adding asubdivision; and 524.5-505; Minnesota Statutes 1995 Supplement,sections 13.69, subdivision 1; 168.1296, subdivision 1; 168.16;169.862; 171.04, subdivision 1; 221.0355, subdivisions 5
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9935and 15; 275.065, subdivisions 3 and 6; and 473.446, subdivisions1 and 8; Laws 1994, chapter 589, section 8; proposing coding fornew law in Minnesota Statutes, chapters 161; 168; and 173;proposing coding for new law as Minnesota Statutes, chapter 257A;repealing Minnesota Statutes 1994, sections 161.086; 161.115,subdivision 262; and 169.141."
We request adoption of this report and repassage of thebill.
Senate Conferees: Keith Langseth, Jim Vickerman, Carol Flynn,Paula E. Hanson and Terry D. Johnston.
House Conferees: Bernard L. "Bernie" Lieder, Edwina Garcia,Tom Osthoff, Virgil J. Johnson and Carol Molnau.
Lieder moved that the report of the Conference Committee on S.F. No. 2702 be adopted and that the bill be repassed as amendedby the Conference Committee. The motion prevailed.
S. F. No. 2702, A bill for an act relating to transportation;appropriating money for transportation purposes.
The bill was read for the third time, as amended by Conference,and placed upon its repassage.
The question was taken on the repassage of the bill and theroll was called.
Carruthers moved that those not voting be excused from voting. The motion prevailed.
There were 113 yeas and 19 nays as follows:
Those who voted in the affirmative were:
Abrams Erhardt Knoblach Ness SviggumAnderson, B. Finseth Koppendrayer Onnen Swenson, D.Anderson, R. Frerichs Kraus Opatz Swenson, H.Bakk Garcia Krinkie Osthoff SykoraBertram Greenfield Larsen Ostrom TomassoniBettermann Greiling Leighton Otremba TompkinsBoudreau Gunther Leppik Ozment TumaBradley Haas Lieder Paulsen TunheimBroecker Hackbarth Long Pawlenty Van DellenBrown Harder Luther Pellow Van EngenCarlson, L. Hasskamp Lynch Pelowski VickermanCarlson, S. Hausman Macklin Perlt WageniusCarruthers Holsten Mahon Peterson WarkentinClark Huntley Mares Pugh WeaverCommers Jefferson Mariani Rhodes WejcmanDaggett Johnson, A. Marko Rice WenzelDauner Johnson, V. McCollum Rostberg WinterDavids Kahn McElroy Sarna WolfDawkins Kalis McGuire Schumacher WorkeDehler Kelley Milbert Seagren WorkmanDelmont Kelso Molnau Smith Sp.Anderson,IDempsey Kinkel Mulder Solberg Dorn Knight Munger StanekThose who voted in the negative were:
Bishop Girard Johnson, R. Olson, E. OsskoppCooper Goodno Lindner Olson, M. RukavinaEntenza Jaros Lourey Orenstein Trimble Farrell Jennings Murphy OrfieldThe bill was repassed, as amended by Conference, and its title agreedto.JOURNAL OF THE HOUSE - 112th Day - Top of Page 9936
Mr. Speaker:
I hereby announce that the Senate has moved to return thereport of the Conference Committee on the following HouseFile:
H. F. No. 2218, A bill for an act relating to state government;modifying performance report requirements; requiring thatinteragency bills be paid promptly; prohibiting state agenciesfrom undertaking capital improvements without legislativeauthority; conforming certain leased space requirements toexisting law; requiring that state agencies comply with certaininformation policy office requirements regarding informationsystems equipment and data collection; modifying revolving fundauthority; increasing resource recovery goals; modifyingcollection requirements; amending Minnesota Statutes 1994,sections 16A.055, subdivision 1; 16A.124, subdivision 7, and byadding a subdivision; 16B.30; 16B.31, subdivision 6; 16B.41, byadding a subdivision; 16B.48, subdivision 2; and 115A.151;Minnesota Statutes 1995 Supplement, sections 15.91, subdivision2; and 115A.15, subdivision 9.
Patrick E. Flahaven, Secretary of the Senate
Kahn moved that the vote whereby H. F. No. 2218 was repassed,as amended by Conference, be now reconsidered. The motionprevailed.
Kahn moved that the vote whereby the House adopted theConference Committee report on H. F. No. 2218 be nowreconsidered. The motion prevailed.
Kahn moved that H. F. No. 2218 be returned to the ConferenceCommittee. The motion prevailed and H. F. No. 2218 was returnedto Conference.
Mr. Speaker:
I hereby announce the passage by the Senate of the followingHouse File, herewith returned, as amended by the Senate, in whichamendment the concurrence of the House is respectfullyrequested:
H. F. No. 2152, A bill for an act relating to transportation;abolishing specific highway service sign program and directingcommissioner of transportation to adopt rules to administerhighway service signs; eliminating limitation on funding advancesfor completing county state-aid highways in cities; prohibitingmotor vehicle from closely following ambulance responding toemergency; providing for turnbacks to local governments oflegislative routes Nos. 232, 261, 300, 326, and 385; amendingMinnesota Statutes 1994, sections 162.08, subdivision 5; 169.18,subdivision 8; and 169.59, subdivision 4; proposing coding fornew law in Minnesota Statutes, chapter 160; repealing MinnesotaStatutes 1994, sections 160.292, subdivisions 1, 2, 3, 4, 5, 8,9, and 10; 160.293; 160.294; 160.295; 160.296; and 160.297;Minnesota Statutes 1995 Supplement, section 160.292, subdivisions6, 7, and 7a.
Patrick E. Flahaven, Secretary of the Senate
Lieder moved that the House concur in the Senate amendments toH. F. No. 2152 and that the bill be repassed as amended by theSenate. The motion prevailed.
H. F. No. 2152, A bill for an act relating to transportation;abolishing specific highway service sign program and directingcommissioner of transportation to establish a program toadminister highway service signs; eliminating limitation onfunding advances for completing county state-aid highways incities; prohibiting motor vehicle from closely followingambulance responding to emergency; providing for turnbacks tolocal governments of legislative routes Nos. 232, 261, 300, 326,and 385; amending Minnesota Statutes 1994, sections 162.08,subdivision 5; 169.18,
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9937subdivision 8; and 169.59, subdivision 4; proposing coding fornew law in Minnesota Statutes, chapter 160; repealing MinnesotaStatutes 1994, sections 160.292, subdivisions 1, 2, 3, 4, 5, 8,9, and 10; 160.293; 160.294; 160.295; 160.296; and 160.297;Minnesota Statutes 1995 Supplement, section 160.292, subdivisions6, 7, and 7a.
The bill was read for the third time, as amended by the Senate,and placed upon its repassage.
The question was taken on the repassage of the bill and theroll was called.
Carruthers moved that those not voting be excused from voting. The motion prevailed.
There were 131 yeas and 1 nay as follows:
Those who voted in the affirmative were:
Abrams Farrell Knoblach Olson, M. StanekAnderson, B. Finseth Koppendrayer Onnen SviggumAnderson, R. Frerichs Kraus Opatz Swenson, D.Bakk Garcia Krinkie Orenstein Swenson, H.Bertram Girard Larsen Orfield SykoraBettermann Goodno Leighton Osthoff TomassoniBishop Greenfield Leppik Ostrom TompkinsBoudreau Greiling Lieder Otremba TrimbleBradley Gunther Lindner Ozment TumaBroecker Haas Long Paulsen TunheimBrown Hackbarth Lourey Pawlenty Van DellenCarlson, L. Harder Luther Pellow Van EngenCarlson, S. Hasskamp Lynch Pelowski VickermanCarruthers Hausman Macklin Perlt WageniusClark Holsten Mahon Peterson WarkentinCommers Huntley Mares Pugh WeaverCooper Jaros Mariani Rest WejcmanDaggett Jefferson Marko Rhodes WenzelDauner Jennings McCollum Rice WinterDavids Johnson, A. McElroy Rostberg WolfDawkins Johnson, V. McGuire Rukavina WorkeDehler Kahn Milbert Sarna WorkmanDelmont Kalis Molnau Schumacher Sp.Anderson,IDempsey Kelley Mulder Seagren Dorn Kelso Murphy Skoglund Entenza Kinkel Ness Smith Erhardt Knight Olson, E. SolbergThose who voted in the negative were:
OsskoppThe bill was repassed, as amended by the Senate, and its title agreedto.
The following Conference Committee Report was received:
A bill for an act relating to water; wetland protection andmanagement; amending Minnesota Statutes 1994, sections 103F.612,subdivisions 2, 3, 5, 6, and 7; 103G.127; 103G.222; 103G.2241;103G.2242, subdivisions 1, 6, 7, 9, and 12; 103G.237, subdivision4; 103G.2372, subdivision 1; and 103G.2373; repealing MinnesotaStatutes 1994, section 103G.2242, subdivision 13.
March 29, 1996
The Honorable Irv Anderson
Speaker of the House of Representatives
The Honorable Allan H. Spear
President of the Senate
We, the undersigned conferees for H. F. No. 787, report that wehave agreed upon the items in dispute and recommend asfollows:
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9938That the Senate recede from its amendments and that H. F. No.787 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 1994, section 84.035,subdivision 5, is amended to read:
Subd. 5. [ACTIVITIES IN PEATLAND SCIENTIFIC AND NATURALAREAS.] Areas designated in subdivision 4 as peatland scientificand natural areas are subject to the following conditions:
(a) Except as provided in paragraph (b), all restrictionsotherwise applicable to scientific and natural areas designatedunder section 86A.05, subdivision 5, apply to the surface use andto any use of the mineral estate which would significantly modifyor alter the peatland water levels or flows, peatland waterchemistry, plant or animal species or communities, or othernatural features of the peatland scientific and natural areas,including, but not limited to, the following prohibitions:
(1) construction of any new public drainage systems after theeffective date of Laws 1991, chapter 354, or improvement orrepair to a public drainage system in existence on the effectivedate of Laws 1991, chapter 354, under authority of chapter 103E,or any other alteration of surface water or ground water levelsor flows unless specifically permitted under paragraph (b),clause (5) or (6);
(2) removal of peat, sand, gravel, or other industrialminerals;
(3) exploratory boring or other exploration or removal of oil,natural gas, radioactive materials or metallic minerals whichwould significantly modify or alter the peatland water levels orflows, peatland water chemistry, plant or animal species orcommunities, or natural features of the peatland scientific andnatural areas, except in the event of a national emergencydeclared by Congress;
(4) commercial timber harvesting;
(5) construction of new corridors of disturbance, of the kinddefined in subdivision 3, after June 5, 1991; and
(6) ditching, draining, filling, or any other activities whichmodify or alter the peatland water levels or flows, peatlandwater chemistry, plant or animal species or communities, or othernatural features of the peatland scientific and natural areas.
(b) The following activities are allowed:
(1) recreational activities, including hunting, fishing,trapping, cross-country skiing, snowshoeing, nature observation,or other recreational activities permitted in the management planapproved by the commissioner;
(2) scientific and educational work and research;
(3) maintenance of corridors of disturbance, including surveylines and preparation of winter roads, consistent with protectionof the peatland ecosystem;
(4) use of corridors of disturbance unless limited by amanagement plan adopted by the commissioner under subdivision6;
(5) improvements to a public drainage system in existence onthe effective date of Laws 1991, chapter 354, only when it is forthe protection and maintenance of the ecological integrity of thepeatland scientific and natural area and when included in amanagement plan adopted by the commissioner under subdivision6;
(6) repairs to a public drainage system in existence on theeffective date of Laws 1991, chapter 354, which crosses apeatland scientific and natural area and is used for the purposesof providing a drainage outlet for lands outside of the peatlandscientific and natural area, provided that there are no otherfeasible and prudent alternative means of providing the drainageoutlet. The commissioner shall cooperate with the ditchauthority in the determination of any feasible and prudentalternatives. No repairs which would significantly modify oralter the peatland water levels or flows, peatland waterchemistry, plant or animal species or communities, or othernatural features of the peatland scientific and natural areasshall be made unless approved by the commissioner;
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9939 (7) motorized uses that are engaged in, oncorridors a corridor of disturbance, if thecorridor existed on or before the effective date of Laws1991, chapter 354 January 1, 1992, provided thatrecreational motorized users may occur only when the substrate isfrozen, or the corridor is snow packed, subject to a managementplan developed in accordance with subdivision 6;and
(8) control of forest insects, disease, and wildfires, asdescribed in a management plan adopted by the commissioner undersubdivision 6; and
(9) geological and geophysical surveys which would notsignificantly modify or alter the peatland water levels or flows,peatland water chemistry, plant or animal species or communities,or other natural features of the peatland scientific and naturalareas.
Sec. 2. Minnesota Statutes 1994, section 84.035, subdivision6, is amended to read:
Subd. 6. [MANAGEMENT PLANS.] The commissioner shall developin consultation with the affected local government unit amanagement plan for each peatland scientific and natural areadesignated under section 84.036 in a manner prescribed by section86A.09.
The management plan shall address recreational trails. Inthose peatland scientific and natural areas where no corridor ofdisturbance was used as a recreational trail on or before January1, 1992, the plan may permit only one corridor of disturbance, ineach peatland scientific and natural area, to be used as arecreational motorized trail.
Sec. 3. Minnesota Statutes 1994, section 103B.3355, is amendedto read:
103B.3355 [PUBLIC VALUE CRITERIA FOR WETLANDS WETLANDFUNCTIONS FOR DETERMINING PUBLIC VALUES.]
(a) The board of water and soil resources, in consultationwith the commissioner of natural resources, shall adopt rulesestablishing criteria to determine The public valuevalues of wetlands. The rules must consider the publicbenefit and use of the wetlands and include must bedetermined based upon the functions of wetlands for:
(1) criteria to determine the benefits of wetlands forwater quality, including filtering of pollutants to surface andgroundwater, utilization of nutrients that would otherwisepollute public waters, trapping of sediments, shorelineprotection, and utilization of the wetland as a recharge areafor groundwater;
(2) criteria to determine the benefits of wetlands forfloodwater and stormwater retention, including thepotential for flooding in the watershed, the value of propertysubject to flooding, and the reduction in potential flooding bythe wetland;
(3) criteria to determine the benefits of wetlands forpublic recreation and education, including wildlifehabitat, hunting and fishing areas, wildlife breedingareas, wildlife viewing areas, aesthetically enhancedareas, and nature areas;
(4) criteria to determine the benefits of wetlands forcommercial uses, including wild rice and cranberry growingand harvesting and aquaculture; and
(5) fish, wildlife, native plant habitats; and
(6) low-flow augmentation; and
(7) criteria to determine the benefits of wetlandsfor other public uses.
(b) The board of water and soil resources, in consultationwith the commissioners of natural resources and agriculture andlocal government units, shall adopt rules establishing:
(1) scientific methodologies for determining the functionsof wetlands; and
(2) criteria for determining the resulting public values ofwetlands.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9940 (c) The methodologies and criteria establishedunder this section or other methodologies and criteria thatinclude the functions in paragraph (a) and are approved by theboard, in consultation with the commissioners of naturalresources and agriculture and local government units, must beused to determine the functions and resulting publicvalue values of wetlands in the state. Thefunctions listed in paragraph (a) are not listed in order ofpriority.
(d) Public value criteria established or approved by theboard under this section do not apply in areas subject to localcomprehensive wetland protection and management plans establishedunder section 103G.2243.
(e) The board of water and soil resources, inconsultation with the commissioner commissioners ofnatural resources, shall also use the criteria inidentifying and agriculture and local government units,may identify regions of the state where preservation,enhancement, restoration, and establishment of wetlands wouldhave high public value. Before the criteria are adopted,The board, in consultation with the commissionercommissioners, may identify high priority wetland regionsusing available information relating to the factors listed inparagraph (a). The board shall notify local units of governmentwith water planning authority of these high priority regions.
Sec. 4. Minnesota Statutes 1994, section 103E.701, subdivision6, is amended to read:
Subd. 6. [WETLAND RESTORATION AND MITIGATION.] Repair of adrainage system may include the preservation,restoration, or enhancement of wetlands; wetlandreplacement under section 103G.222; and the realignment of adrainage system to prevent drainage of a wetland.
Sec. 5. Minnesota Statutes 1994, section 103F.612, subdivision2, is amended to read:
Subd. 2. [APPLICATION.] (a) A wetland owner may apply to thecounty where a wetland is located for designation of a wetlandpreservation area in a high priority wetland area identified in acomprehensive local water plan, as defined in section 103B.3363,subdivision 3, and located within a high priority wetland regiondesignated by the board of water and soil resources, if thecounty chooses to accept wetland preservation areaapplications. The application must be made on forms providedby the board. If a wetland is located in more than one county,the application must be submitted to the county where themajority of the wetland is located.
(b) The application must contain at least the followinginformation and other information the board of soil and waterresources requires:
(1) legal description of the area to be approved, which mustinclude an upland strip at least 16-1/2 feet in width around theperimeter of wetlands within the area and may include totalupland area of up to four acres for each acre of wetland;
(2) parcel identification numbers where designated by thecounty auditor;
(3) name and address of the owner;
(4) a witnessed signature of the owner covenanting that theland will be preserved as a wetland and will only be used inaccordance with conditions prescribed by the board of water andsoil resources; and
(5) a statement that the restrictive covenant will be bindingon the owner and the owner's successors or assigns, and will runwith the land.
(c) The upland strip required in paragraph (b), clause (1),must be planted with permanent vegetation other than a noxiousweed.
(d) For registered property, the owner shall submit the owner'sduplicate certificate of title with the application.
Sec. 6. Minnesota Statutes 1994, section 103F.612, subdivision3, is amended to read:
Subd. 3. [REVIEW AND NOTICE.] Upon receipt of an application,the county shall determine if all material required bysubdivision 2 has been submitted and, if so, shall determine thatthe application is complete. The term "date of application"means the date the application is determined to be complete bythe county. The county shall send a copy of the application tothe county assessor, the regional development commission,where applicable, the board of water and soil resources, andthe soil and water conservation district where the land islocated. The soil and water conservation district shall preparean advisory statement of existing and potential preservationproblems or conflicts and send the statement to the owner ofrecord and to the county. The county shall notify thelandowner of the acceptance or denial of the application within60 days from the date of the application.
Sec. 7. Minnesota Statutes 1994, section 103F.612, subdivision5, is amended to read:
Subd. 5. [COMMENCEMENT OF WETLAND PRESERVATION AREA.] Thewetland is a wetland preservation area commencing 30 days fromthe date the county determines notifies the landownerof acceptance of the application is complete undersubdivision 3.
Sec. 8. Minnesota Statutes 1994, section 103F.612, subdivision6, is amended to read:
Subd. 6. [FEE.] The county may require an application fee,not to exceed $50 to defray administrative costs ofthe program.
Sec. 9. Minnesota Statutes 1994, section 103F.612, subdivision7, is amended to read:
Subd. 7. [MAPS.] The board of water and soil resourcescounty shall maintain wetland preservation area mapsillustrating land covenanted as wetland preservation areas.
Sec. 10. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 2a. [AGRICULTURAL LAND.] "Agricultural land"means: land used for horticultural, row, close grown, pasture,and hayland crops; growing nursery stocks; animal feedlots; farmyards; associated building sites; and public and private drainagesystems and field roads located on any of the foregoing.
Sec. 11. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 10a. [50 TO 80 PERCENT AREA.] "50 to 80percent area" means a county or watershed with at least 50 butless than 80 percent of the presettlement wetland acreageintact.
Sec. 12. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 10b. [GREATER THAN 80 PERCENT AREA.] "Greaterthan 80 percent area" means a county or watershed where 80percent or more of the presettlement wetland acreage is intactand:
(1) ten percent or more of the current total land area iswetland; or
(2) 50 percent or more of the current total land area isstate or federal land.
Sec. 13. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 10c. [HAYLAND.] "Hayland" means an area thatwas mechanically harvested or that was planted with annuallyseeded crops in a crop rotation seeding of grasses or legumes insix of the last ten years prior to January 1, 1991.
Sec. 14. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 10d. [LESS THAN 50 PERCENT AREA.] "Less than50 percent area" means a county or watershed with less than 50percent of the presettlement wetland acreage intact or any countyor watershed not defined as a "greater than 80 percent area" or"50 to 80 percent area."
Sec. 15. Minnesota Statutes 1994, section 103G.005,subdivision 10a, is amended to read:
Subd. 10a 10e. [LOCAL GOVERNMENT UNIT.] "Localgovernment unit" means:
(1) outside of the seven-county metropolitan area, a citycouncil or county board of commissioners or theirdelegate; and
(2) in the seven-county metropolitan area, a city council, atown board under section 368.01, or a watershed managementorganization under section 103B.211, or their delegate;and
(3) on state land, the agency with administrativeresponsibility for the land.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9942Sec. 16. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 14a. [PASTURE.] "Pasture" means an area thatwas grazed by domesticated livestock or that was planted withannually seeded crops in a crop rotation seeding of grasses orlegumes of the last years prior to January 1, 1991.
Sec. 17. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 14c. [PRESETTLEMENT WETLAND.] "Presettlementwetland" means a wetland or public waters wetland that existed inthis state at the time of statehood in 1858.
Sec. 18. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 14d. [PROJECT.] "Project" means a specificplan, contiguous activity, proposal, or design necessary toaccomplish a goal as defined by the local government unit. Asused in this chapter, a project may not be split into componentsor phases for the sole purpose of gaining additionalexemptions.
Sec. 19. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 15a. [SHORELAND WETLAND PROTECTION ZONE.]"Shoreland wetland protection zone" means:
(1) for local government units that have a shorelandmanagement ordinance approved under sections 103F.201to 103F.221, the shoreland wetland protection zone is:
(i) 1,000 feet from the ordinary high water level of awaterbasin that is a public water identified in the shorelandmanagement ordinance or the shoreland area approved by thecommissioner as provided in the shoreland management rulesadopted under section 103F.211, whichever is less; or
(ii) 300 feet from the ordinary high water level of awatercourse identified in the shoreland management ordinance orthe shoreland area approved by the commissioner as provided inthe shoreland management rules adopted under section 103F.211,whichever is less; and
(2) for local government units that do not have a shorelandmanagement ordinance approved under sections 103F.201 to103F.221, the shoreland wetland protection zone is:
(i) 1,000 feet from the ordinary high water level of awaterbasin that is a public water that is at least ten acres insize within municipalities and at least 25 acres in size inunincorporated areas; or
(ii) 300 feet from the ordinary high water level of awatercourse identified by the public waters inventory undersection 103G.201.
Sec. 20. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 15b. [SILVICULTURE.] "Silviculture" means themanagement of forest trees.
Sec. 21. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 15c. [UTILITY.] "Utility" means a sanitarysewer, storm sewer, potable water distribution, and transmission,distribution, or furnishing, at wholesale or retail, of naturalor manufactured gas, electricity, telephone, or radio service orcommunications.
Sec. 22. Minnesota Statutes 1994, section 103G.005, is amendedby adding a subdivision to read:
Subd. 17b. [WETLAND TYPE.] "Wetland type" means awetland type classified according to Wetlands of the UnitedStates, U.S. Fish and Wildlife Service Circular 39 (1971edition), as summarized in this subdivision.
(1) "Type 1 wetlands" are seasonally flooded basins or flatsin which soil is covered with water or is waterlogged duringvariable seasonal periods but usually is well-drained during muchof the growing season. Type 1 wetlands are located indepressions and in overflow bottomlands along watercourses, andin which vegetation varies greatly according to season andduration of flooding and includes bottomland hardwoods as well asherbaceous growths.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9943(2) "Type 2 wetlands" are inland fresh meadows in which soilis usually without standing water during most of the growingseason but is waterlogged within at least a few inches ofsurface. Vegetation includes grasses, sedges, rushes, andvarious broad-leafed plants. Meadows may fill shallow basins,sloughs, or farmland sags, or these meadows may border shallowmarshes on the landward side.
(3) "Type 3 wetlands" are inland shallow fresh marshes inwhich soil is usually waterlogged early during a growing seasonand often covered with as much as six inches or more of water.Vegetation includes grasses, bulrushes, spikerushes, and variousother marsh plants such as cattails, arrowheads, pickerelweed,and smartweeds. These marshes may nearly fill shallow lakebasins or sloughs, or may border deep marshes on the landwardside and are also common as seep areas on irrigated lands.
(4) "Type 4 wetlands" are inland deep fresh marshes in whichsoil is usually covered with six inches to three feet or more ofwater during the growing season. Vegetation includes cattails,reeds, bulrushes, spikerushes, and wild rice. In open areas,pondweeds, naiads, coontail, water milfoils, waterweeds,duckweeds, waterlilies, or spatterdocks may occur. These deepmarshes may completely fill shallow lake basins, potholes,limestone sinks, and sloughs, or they may border open water insuch depressions.
(5) "Type 5 wetlands" are inland open fresh water, shallowponds, and reservoirs in which water is usually less than tenfeet deep and is fringed by a border of emergent vegetationsimilar to open areas of type 4 wetland.
(6) "Type 6 wetlands" are shrub swamps in which soil isusually waterlogged during growing season and is often coveredwith as much as six inches of water. Vegetation includes alders,willows, buttonbush, dogwoods, and swamp-privet. This typeoccurs mostly along sluggish streams and occasionally on floodplains.
(7) "Type 7 wetlands" are wooded swamps in which soil iswaterlogged at least to within a few inches of the surface duringgrowing season and is often covered with as much as one foot ofwater. This type occurs mostly along sluggish streams, on floodplains, on flat uplands, and in shallow basins. Trees includetamarack, arborvitae, black spruce, balsam, red maple, and blackash. Northern evergreen swamps usually have a thick ground coverof mosses. Deciduous swamps frequently support beds of duckweedsand smartweeds.
(8) "Type 8 wetlands" are bogs in which soil is usuallywaterlogged and supports a spongy covering of mosses. This typeoccurs mostly in shallow basins, on flat uplands, and alongsluggish streams. Vegetation is woody or herbaceous or both.Typical plants are heath shrubs, sphagnum moss, and sedges. Inthe north, leatherleaf, Labrador-tea, cranberries, carex, andcottongrass are often present. Scattered, often stunted, blackspruce and tamarack may occur.
Sec. 23. Minnesota Statutes 1994, section 103G.127, is amendedto read:
103G.127 [PERMIT PROGRAM UNDER SECTION 404 OF THE FEDERAL CLEANWATER ACT.]
Notwithstanding any other law to the contrary, thecommissioner, with the concurrence of the board of water andsoil resources and the commissioner of agriculture, may adoptrules establishing a permit program for regulating the dischargeof dredged and fill material into the waters of the state asnecessary to obtain approval from the United States EnvironmentalProtection Agency to administer the permit program under section404 of the federal Clean Water Act, United States Code, title 33,section 1344. The rules may not be more restrictive than theprogram under section 404, or state law, if it is morerestrictive than the federal program.
Sec. 24. Minnesota Statutes 1994, section 103G.222, is amendedto read:
103G.222 [REPLACEMENT OF WETLANDS.]
Subdivision 1. [REQUIREMENTS.] (a) After theeffective date of the rules adopted under section 103B.3355or 103G.2242, whichever is later, Wetlands must not bedrained or filled, wholly or partially, unless replaced byrestoring or creating wetland areas of at least equal publicvalue under a replacement plan approved as provided in section103G.2242, a replacement plan under a local governmental unit'scomprehensive wetland protection and management plan approved bythe board under section 103G.2242, subdivision 1, paragraph(c) 103G.2243, or, if a permit to mine is requiredunder section 93.481, under a mining reclamation plan approved bythe commissioner under the permit to mine. Mining reclamationplans shall apply the same principles and standards for replacingwetlands by restoration or creation of wetland areas that areapplicable to mitigation plans approved as provided in section103G.2242. Public value must be determined in accordance withsection 103B.3355 or a comprehensive wetland protection andmanagement plan established under section 103G.2243.
(b) Replacement must be guided by the following principles indescending order of priority:
(1) avoiding the direct or indirect impact of the activity thatmay destroy or diminish the wetland;
(2) minimizing the impact by limiting the degree or magnitudeof the wetland activity and its implementation;
(3) rectifying the impact by repairing, rehabilitating, orrestoring the affected wetland environment;
(4) reducing or eliminating the impact over time bypreservation and maintenance operations during the life of theactivity; and
(5) compensating for the impact by restoring a wetland;and
(6) compensating for the impact by replacing orproviding substitute wetland resources or environments.
For a project involving the draining or filling of wetlandsin an amount not exceeding 10,000 square feet more than theapplicable amount in section 103G.2241, subdivision 9, paragraph(a), the local government unit may make an on-site sequencingdetermination without a written alternatives analysis from theapplicant.
(c) If a wetland is located in a cultivated field, thenreplacement must be accomplished through restoration only withoutregard to the priority order in paragraph (b), provided that adeed restriction is placed on the altered wetland prohibitingnonagricultural use for at least ten years.
(d) Restoration and replacement of wetlands must beaccomplished in accordance with the ecology of the landscape areaaffected.
(e) Replacement shall be within the same watershed or county asthe impacted wetlands, as based on the wetland evaluation insection 103G.2242, subdivision 2, except that counties orwatersheds in which a greater than 80 percent ormore of the presettlement wetland acreage is intactarea may accomplish replacement in counties orwatersheds in which less than 50 percent or more ofthe presettlement wetland acreage has been filled, drained, orotherwise degraded areas. Wetlands impacted by publictransportation projects may be replaced statewide, providedthey are approved by the commissioner under an establishedwetland banking system, or except that wetlands impactedin a less than 50 percent area must be replaced in a less than 50percent area, and wetlands impacted in the seven county twincities metropolitan area by public highways must bereplaced:
(1) in the affected county, or, if no restorationopportunities exist in the county;
(2) in another seven county twin cities metropolitan areacounty.
The board must maintain a public list of restorationopportunities within the metropolitan area. Disputes aboutrestoration opportunities for wetland replacement in a watershedor county may be appealed to the board's committee for disputeresolution. Replacement of wetlands may be accomplishedunder the rules for wetland banking as provided for under section103G.2242.
(f) Except as provided in paragraph (g), for a wetland locatedon nonagricultural land, replacement must be in the ratio of twoacres of replaced wetland for each acre of drained or filledwetland.
(g) For a wetland located on agricultural land or incounties or watersheds in which a greater than 80percent or more of the presettlement wetland acreageexists area, replacement must be in the ratio of oneacre of replaced wetland for each acre of drained or filledwetland.
(h) Wetlands that are restored or created as a result of anapproved replacement plan are subject to the provisions of thissection for any subsequent drainage or filling.
(i) Except in counties or watersheds where a greaterthan 80 percent or more of the presettlement wetlands areintact area, only wetlands that have been restoredfrom previously drained or filled wetlands, wetlands created byexcavation in nonwetlands, wetlands created by dikes or damsalong public or private drainage ditches, or wetlands created bydikes or dams associated with the restoration of previouslydrained or filled wetlands may be used in a statewide bankingprogram established in rules adopted under section 103G.2242,subdivision 1. Modification or conversion of nondegradednaturally occurring wetlands from one type to another are noteligible for enrollment in a statewide wetlands bank.
(j) The technical evaluation panel established under section103G.2242, subdivision 2, shall ensure that sufficient time hasoccurred for the wetland to develop wetland characteristics ofsoils, vegetation, and hydrology before recommending that thewetland be deposited in the statewide wetland bank. If thetechnical evaluation panel has reason to believe that the wetlandcharacteristics may change substantially, the panel shallpostpone its recommendation until the wetland has stabilized.
(k) This section and sections 103G.223 to 103G.2242, 103G.2364,and 103G.2365 apply to the state and its departments andagencies.
(l) For projects involving draining or filling of wetlandsassociated with a new public transportation project in a greaterthan 80 percent area, public transportation authorities, otherthan the state department of transportation, may purchase creditsfrom the state wetland bank established with proceeds from Laws1994, chapter 643, section 26, subdivision 3, paragraph (c). Wetland banking credits may be purchased at the least of thefollowing, but in no case shall the purchase price be less than$400 per acre: (1) the cost to the state to establish thecredits; (2) the average estimated market value of agriculturalland in the township where the road project is located, asdetermined by the commissioner of revenue; or (3) the averagevalue of the land in the immediate vicinity of the road projectas determined by the county assessor. Public transportationauthorities in a less than 80 percent area may purchase creditsfrom the state at the cost to the state to establishcredits.
(m) A replacement plan for wetlands is not required forindividual projects that result in the filling or draining ofwetlands for the repair, rehabilitation, reconstruction, orreplacement of a currently serviceable existing state, city,county, or town public road necessary, as determined by thepublic transportation authority, to meet state or federal designor safety standards or requirements, excluding new roads or roadsexpanded solely for additional traffic capacity lanes. Thisparagraph only applies to authorities for public transportationprojects that:
(1) minimize the amount of wetland filling or drainingassociated with the project and consider mitigating importantsite-specific wetland functions on-site; and
(2) submit annual reports by January 15 to the board andmembers of the public requesting a copy that indicate thelocation, amount, and type of wetlands that have been filled ordrained during the previous year and a projection of thelocation, amount, and type of wetlands to be filled or drainedduring the upcoming year.
The technical evaluation panel shall review minimization anddelineation decisions made by the public transportation authorityand provide recommendations regarding on-site mitigation ifrequested to do so by the local government unit, a contiguouslandowner, or a member of the technical evaluation panel.
Except for state public transportation projects, for whichthe state department of transportation is responsible, the boardmust replace the wetlands drained or filled by publictransportation projects on existing roads in critical rural andurban watersheds.
Public transportation authorities at their discretion maydeviate from federal and state design standards on existing roadprojects when practical and reasonable to avoid wetland fillingor draining, provided that public safety is not unreasonablycompromised. The local road authority and its officers andemployees are exempt from liability for any tort claim for injuryto persons or property arising from travel on the highway andrelated to the deviation from the design standards forconstruction or reconstruction under this paragraph. Thisparagraph does not preclude an action for damages arising fromnegligence in construction or maintenance on a highway.
(n) If a landowner seeks approval of a replacement planafter the proposed project has already impacted the wetland, thelocal government unit may require the landowner to replace theimpacted wetland at a ratio not to exceed twice the replacementratio otherwise required.
(o) A local government unit may request the board toreclassify a county or watershed on the basis of its percentageof presettlement wetlands remaining. After receipt ofsatisfactory documentation from the local government, the boardshall change the classification of a county or watershed. Ifrequested by the local government unit, the board must assist indeveloping the documentation. Within 30 days of its action toapprove a change of wetland classifications, the board shallpublish a notice of the change in the Environmental Quality BoardMonitor.
(p) One hundred citizens who reside within the jurisdictionof the local government unit may request the local governmentunit to reclassify a county or watershed on the basis of itspercentage of presettlement wetlands remaining. In support oftheir petition, the citizens shall provide satisfactorydocumentation to the local government unit. The local governmentunit shall consider the petition and forward the request to theboard under paragraph (o) or provide a reason why the petition isdenied.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9946Subd. 2. [ROAD CREDIT FUNDING.] At least 50 percentof money appropriated for road repair wetland replacement creditunder this section must be used for wetland restoration in theseven county metropolitan area.
The board shall give priority to restoration projects thatwill:
(1) intensify land use that leads to more compactdevelopment or redevelopment;
(2) encourage public infrastructure investments whichconnect urban neighborhoods and suburban communities, attractprivate sector investment in commercial or residential propertiesadjacent to the public improvement; or
(3) complement projects receiving funding under section473.253.
Sec. 25. Minnesota Statutes 1994, section 103G.2241, isamended to read:
103G.2241 [EXEMPTIONS.]
(a) Subject to the conditions in paragraph (b), areplacement plan for wetlands is not required for:
(1) activities in a wetland that was planted with annuallyseeded crops, was in a crop rotation seeding of pasture grassesor legumes, or was required to be set aside to receive pricesupport or other payments under United States Code, title 7,sections 1421 to 1469, in six of the last ten years prior toJanuary 1, 1991;
(2) activities in a wetland that is or has been enrolled inthe federal conservation reserve program under United StatesCode, title 16, section 3831, that:
(i) was planted with annually seeded crops, was in a croprotation seeding, or was required to be set aside to receiveprice support or payment under United States Code, title 7,sections 1421 to 1469, in six of the last ten years prior tobeing enrolled in the program; and
(ii) has not been restored with assistance from a public orprivate wetland restoration program;
(3) activities necessary to repair and maintain existingpublic or private drainage systems as long as wetlands that havebeen in existence for more than 20 years are not drained;
(4) activities in a wetland that has received a commenceddrainage determination provided for by the federal Food SecurityAct of 1985, that was made to the county agriculturalstabilization and conservation service office prior to September19, 1988, and a ruling and any subsequent appeals or reviews havedetermined that drainage of the wetland had been commenced priorto December 23, 1985;
(5) activities exempted from federal regulation under UnitedStates Code, title 33, section 1344(f);
(6) activities authorized under, and conducted in accordancewith, an applicable general permit issued by the United StatesArmy Corps of Engineers under section 404 of the federal CleanWater Act, United States Code, title 33, section 1344, except thenationwide permit in Code of Federal Regulations, title 33,section 330.5, paragraph (a), clause (14), limited to when a newroad crosses a wetland, and all of clause (26);
(7) activities in a type 1 wetland on agricultural land, asdefined in United States Fish and Wildlife Circular No. 39 (1971edition) except for bottomland hardwood type 1 wetlands;
(8) activities in a type 2 wetland that is two acres in sizeor less located on agricultural land;
(9) activities in a wetland restored for conservationpurposes under a contract or easement providing the landownerwith the right to drain the restored wetland;
(10) activities in a wetland created solely as a resultof:
(i) beaver dam construction;
(ii) blockage of culverts through roadways maintained by apublic or private entity;
(iii) actions by public entities that were taken for apurpose other than creating the wetland; or
(iv) any combination of (i) to (iii);
(11) placement, maintenance, repair, enhancement, orreplacement of utility or utility-type service, including thetransmission, distribution, or furnishing, at wholesale orretail, of natural or manufactured gas, electricity, telephone,or radio service or communications if:
(i) the impacts of the proposed project on the hydrologicand biological characteristics of the wetland have been avoidedand minimized to the extent possible; and
(ii) the proposed project significantly modifies or altersless than one-half acre of wetlands;
(12) activities associated with routine maintenance ofutility and pipeline rights-of-way, provided the activities donot result in additional intrusion into the wetland;
(13) alteration of a wetland associated with the operation,maintenance, or repair of an interstate pipeline;
(14) temporarily crossing or entering a wetland to performsilvicultural activities, including timber harvest as part of aforest management activity, so long as the activity limits theimpact on the hydrologic and biologic characteristics of thewetland; the activities do not result in the construction ofdikes, drainage ditches, tile lines, or buildings; and the timberharvesting and other silvicultural practices do not result in thedrainage of the wetland or public waters;
(15) permanent access for forest roads across wetlands solong as the activity limits the impact on the hydrologic andbiologic characteristics of the wetland; the constructionactivities do not result in the access becoming a dike, drainageditch or tile line; with filling avoided wherever possible; andthere is no drainage of the wetland or public waters;
(16) draining or filling up to one-half acre of wetlands forthe repair, rehabilitation, or replacement of a previouslyauthorized, currently serviceable existing public road, providedthat minor deviations in the public road's configuration orfilled area, including those due to changes in materials,construction techniques, or current construction codes or safetystandards, that are necessary to make repairs, rehabilitation, orreplacement are allowed if the wetland draining or fillingresulting from the repair, rehabilitation, or replacement isminimized;
(17) emergency repair and normal maintenance and repair ofexisting public works, provided the activity does not result inadditional intrusion of the public works into the wetland and donot result in the draining or filling, wholly or partially, of awetland;
(18) normal maintenance and minor repair of structurescausing no additional intrusion of an existing structure into thewetland, and maintenance and repair of private crossings that donot result in the draining or filling, wholly or partially, of awetland;
(19) duck blinds;
(20) aquaculture activities, including pond excavation andconstruction and maintenance of associated access roads and dikesauthorized under, and conducted in accordance with, a permitissued by the United States Army Corps of Engineers under section404 of the federal Clean Water Act, United States Code, title 33,section 1344, but not including construction or expansion ofbuildings;
(21) wild rice production activities, including necessarydiking and other activities authorized under a permit issued bythe United States Army Corps of Engineers under section 404 ofthe federal Clean Water Act, United States Code, title 33,section 1344;
(22) normal agricultural practices to control pests orweeds, defined by rule as either noxious or secondary weeds, inaccordance with applicable requirements under state and federallaw, including established best management practices;
(23) activities in a wetland that is on agricultural landannually enrolled in the federal Food, Agricultural,Conservation, and Trade Act of 1990, United States Code, title16, section 3821, subsection (a), clauses (1) to (3), as amended,and is subject to sections 1421 to 1424 of the federal act ineffect on January 1, 1991, except that land enrolled in a federalfarm program is eligible for easement participation for thoseacres not already compensated under a federal program;
(24) development projects and ditch improvement projects inthe state that have received preliminary or final plat approval,or infrastructure that has been installed, or having local siteplan approval, conditional use permits, or similar officialapproval by a governing body or government agency, within fiveyears before July 1, 1991. In the seven-county metropolitan areaand in cities of the first and second class, plat approval mustbe preliminary as approved by the appropriate governing body;and
(25) activities that result in the draining or filling ofless than 400 square feet of wetlands.
(b) For the purpose of paragraph (a), clause (16),"currently serviceable" means usable as is or with somemaintenance, but not so degraded as to essentially requirereconstruction. Paragraph (a), clause (16), authorizes therepair, rehabilitation, or replacement of public roads destroyedby storms, floods, fire, or other discrete events, provided therepair, rehabilitation, or replacement is commenced or undercontract to commence within two years of the occurrence of thedestruction or damage.
(c) A person conducting an activity in a wetland under anexemption in paragraph (a) shall ensure that:
(1) appropriate erosion control measures are taken toprevent sedimentation of the water;
(2) the activity does not block fish passage in awatercourse; and
(3) the activity is conducted in compliance with all otherapplicable federal, state, and local requirements, including bestmanagement practices and water resource protection requirementsestablished under chapter 103H.
Subdivision 1. [AGRICULTURAL ACTIVITIES.] (a) Areplacement plan for wetlands is not required for:
(1) activities in a wetland that was planted with annuallyseeded crops, was in a crop rotation seeding of pasture grass orlegumes, or was required to be set aside to receive price supportor other payments under United States Code, title 7, sections1421 to 1469, in six of the last ten years prior to January 1,1991;
(2) activities in a wetland that is or has been enrolled inthe federal conservation reserve program under United StatesCode, title 16, section 3831, that:
(i) was planted with annually seeded crops, was in a croprotation seeding, or was required to be set aside to receiveprice support or payment under United States Code, title 7,sections 1421 to 1469, in six of the last ten years prior tobeing enrolled in the program; and
(ii) has not been restored with assistance from a public orprivate wetland restoration program;
(3) activities in a wetland that has received a commenceddrainage determination provided for by the federal Food SecurityAct of 1985, that was made to the county agriculturalstabilization and conservation service office prior to September19, 1988, and a ruling and any subsequent appeals or reviews havedetermined that drainage of the wetland had been commenced priorto December 23, 1985;
(4) activities in a type 1 wetland on agricultural land,except for bottomland hardwood type 1 wetlands, and activities ina type 2 or type 6 wetland that is less than two acres in sizeand located on agricultural land;
(5) aquaculture activities including pond excavation andconstruction and maintenance of associated access roads and dikesauthorized under, and conducted in accordance with, a permitissued by the United States Army Corps of Engineers under section404 of the federal Clean Water Act, United States Code, title 33,section 1344, but not including construction or expansion ofbuildings;
(6) wild rice production activities, including necessarydiking and other activities authorized under a permit issued bythe United States Army Corps of Engineers under section 404 ofthe federal Clean Water Act, United States Code, title 33,section 1344;
(7) normal agricultural practices to control noxious orsecondary weeds as defined by rule of the commissioner ofagriculture, in accordance with applicable requirements understate and federal law, including established best managementpractices; and
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9949(8) agricultural activities in a wetland that is onagricultural land annually enrolled in the federal Food,Agricultural, Conservation, and Trade Act of 1990, United StatesCode, title 16, section 3821, subsection (a), clauses (1) to (3),as amended, and is subject to sections 1421 to 1424 of thefederal act in effect on January 1, 1991, except that landenrolled in a federal farm program is eligible for easementparticipation for those acres not already compensated under afederal program.
(b) The exemption under paragraph (a), clause (4), may beexpanded to additional acreage, including types 1, 2, and 6wetlands that are part of a larger wetland system, when theadditional acreage is part of a conservation plan approved by thelocal soil and water conservation district, the additionaldraining or filling is necessary for efficient operation of thefarm, the hydrology of the larger wetland system is not adverselyaffected, and wetlands other than types 1, 2, and 6 are notdrained or filled.
Subd. 2. [DRAINAGE.] (a) For the purposes of thissubdivision, "public drainage system" means a drainage system asdefined in section 103E.005, subdivision 12, and any ditch ortile lawfully connected to the drainage system.
(b) A replacement plan is not required for draining of type1 wetlands, or up to five acres of type 2 or 6 wetlands, in anunincorporated area on land that has been assessed drainagebenefits for a public drainage system, provided that:
(1) during the 20-year period that ended January 1,1992:
(i) there was an expenditure made from the drainage systemaccount for the public drainage system;
(ii) the public drainage system was repaired or maintainedas approved by the drainage authority; or
(iii) no repair or maintenance of the public drainage systemwas required under section 103E.705, subdivision 1, as determinedby the public drainage authority; and
(2) the wetlands are not drained for conversion to:
(i) platted lots;
(ii) planned unit, commercial, or industrial developments;or
(iii) any development with more than one residential unitper 40 acres.
If wetlands drained under this paragraph are converted to usesprohibited under clause (2) during the ten-year period followingdrainage, the wetlands must be replaced under section103G.222.
(c) A replacement plan is not required for draining orfilling of wetlands, except for draining types 3, 4, and 5wetlands that have been in existence for more than 25 years,resulting from maintenance and repair of existing public drainagesystems.
(d) A replacement plan is not required for draining orfilling of wetlands, except for draining wetlands that have beenin existence for more than 25 years, resulting from maintenanceand repair of existing drainage systems other than publicdrainage systems.
(e) A replacement plan is not required for draining orfilling of wetlands resulting from activities conducted as partof a public drainage system improvement project that receivedfinal approval from the drainage authority before July 1, 1991,and after July 1, 1986, if:
(1) the approval remains valid;
(2) the project remains active; and
(3) no additional drainage will occur beyond that originallyapproved.
(f) The public drainage authority may, as part of therepair, install control structures, realign the ditch, constructdikes along the ditch, or make other modifications as necessaryto prevent drainage of the wetland.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9950(g) Wetlands of all types that would be drained as a part ofa public drainage repair project are eligible for the permanentwetlands preserve, under section 103F.516. The board shall givepriority to acquisition of easements on types 3, 4, and 5wetlands that have been in existence for more than 25 years onpublic drainage systems and other wetlands that have the greatestrisk of drainage from a public drainage repair project.
Subd. 3. [FEDERAL APPROVALS.] A replacement plan forwetlands is not required for:
(1) activities exempted from federal regulation under UnitedStates Code, title 33, section 1344(f), as in effect on January1, 1991;
(2) activities authorized under, and conducted in accordancewith, an applicable general permit issued by the United StatesArmy Corps of Engineers under section 404 of the federal CleanWater Act, United States Code, title 33, section 1344, except thenationwide permit in Code of Federal Regulations, title 33,section 330.5, paragraph (a), clauses (14), limited to when a newroad crosses a wetland, and (26), as in effect on January 1,1991.
Subd. 4. [WETLAND RESTORATION.] A replacement planfor wetlands is not required for activities in a wetland restoredfor conservation purposes under a contract or easement providingthe landowner with the right to drain the restoredwetland.
Subd. 5. [INCIDENTAL WETLANDS.] A replacement planfor wetlands is not required for activities in a wetland createdsolely as a result of:
(1) beaver dam construction;
(2) blockage of culverts through roadways maintained by apublic or private entity;
(3) actions by public or private entities that were takenfor a purpose other than creating the wetland; or
(4) any combination of clauses (1) to (3).
Subd. 6. [UTILITIES; PUBLIC WORKS.] A replacementplan for wetlands is not required for:
(1) placement, maintenance, repair, enhancement, orreplacement of utility or utility-type service if:
(i) the impacts of the proposed project on the hydrologicand biological characteristics of the wetland have been avoidedand minimized to the extent possible; and
(ii) the proposed project significantly modifies or altersless than one-half acre of wetlands;
(2) activities associated with routine maintenance ofutility and pipeline rights-of-way, provided the activities donot result in additional intrusion into the wetland;
(3) alteration of a wetland associated with the operation,maintenance, or repair of an interstate pipeline within allexisting or acquired interstate pipeline rights-of-way;
(4) emergency repair and normal maintenance and repair ofexisting public works, provided the activity does not result inadditional intrusion of the public works into the wetland anddoes not result in the draining or filling, wholly or partially,of a wetland;
(5) normal maintenance and minor repair of structurescausing no additional intrusion of an existing structure into thewetland, and maintenance and repair of private crossings that donot result in the draining or filling, wholly or partially, of awetland; or
(6) repair and updating of existing individual sewagetreatment systems as necessary to comply with local, state, andfederal regulations.
Subd. 7. [FORESTRY.] A replacement plan for wetlandsis not required for:
(1) temporarily crossing or entering a wetland to performsilvicultural activities, including timber harvest as part of aforest management activity, so long as the activity limits theimpact on the hydrologic and biologic characteristics of thewetland; the activities do not result in the construction ofdikes, drainage ditches, tile lines, or buildings; and the timberharvesting and other silvicultural practices do not result in thedrainage of the wetland or public waters; or
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9951(2) permanent access for forest roads across wetlands solong as the activity limits the impact on the hydrologic andbiologic characteristics of the wetland; the constructionactivities do not result in the access becoming a dike, drainageditch, or tile line; filling is avoided wherever possible; andthere is no drainage of the wetland or public waters.
Subd. 8. [APPROVED DEVELOPMENT.] A replacement planfor wetlands is not required for development projects and ditchimprovement projects in the state that have received preliminaryor final plat approval or have infrastructure that has beeninstalled or has local site plan approval, conditional usepermits, or similar official approval by a governing body orgovernment agency, within five years before July 1, 1991. Asused in this subdivision, "infrastructure" means public waterfacilities, storm water and sanitary sewer piping, outfalls,inlets, culverts, bridges, and any other work definedspecifically by a local government unit as constituting a capitalimprovement to a parcel within the context of an approveddevelopment plan.
Subd. 9. [DE MINIMIS.] (a) Except as provided inparagraphs (b), (c), and (d), a replacement plan for wetlands isnot required for draining or filling the following amounts ofwetlands as part of a project, regardless of the total amount ofwetlands filled as part of a project:
(1) 10,000 square feet of type 1, type 2, type 6, or type 7wetland, excluding white cedar and tamarack wetlands, outside ofthe shoreland wetland protection zone in a greater than 80percent area;
(2) 5,000 square feet of type 1, type 2, type 6, or type 7wetland, excluding white cedar and tamarack wetlands, outside ofthe shoreland wetland protection zone in a 50 to 80 percentarea;
(3) 2,000 square feet of type 1, type 2, or type 6 wetland,outside of the shoreland wetland protection zone in a less than50 percent area;
(4) 400 square feet of wetland types not listed in clauses(1) to (3) outside of shoreland wetland protection zones in allcounties; or
(5) 400 square feet of type 1, type 2, type 3, type 4, type5, type 6, type 7, or type 8 wetland, in the shoreland wetlandprotection zone, except that in a greater than 80 percent area,the local government unit may increase the de minimis amount upto 1,000 square feet in the shoreland protection zone in areasbeyond the building setback if the wetland is isolated and isdetermined to have no direct surficial connection to the publicwater. To the extent that a local shoreland management ordinanceis more restrictive than this provision, the local shorelandordinance applies.
(b) The amounts listed in paragraph (a), clauses (1) to (5),may not be combined on a project.
(c) This exemption no longer applies to a landowner'sportion of a wetland when the cumulative area drained or filledof the landowner's portion since January 1, 1992, is the greatestof:
(1) the applicable area listed in paragraph (a), if thelandowner owns the entire wetland;
(2) five percent of the landowner's portion of the wetland;or
(3) 400 square feet.
(d) Persons proposing to conduct an activity under thissubdivision shall contact the board at a toll-free number to beprovided for information on minimizing wetland impacts. Failureto call by the person does not constitute a violation of thissubdivision.
(e) This exemption may not be combined with anotherexemption in this section on a project.
Subd. 10. [WILDLIFE HABITAT.] A replacement plan forwetlands is not required for:
(1) deposition of spoil resulting from excavation within awetland for a wildlife habitat improvement project, if:
(i) the area of deposition does not exceed five percent ofthe wetland area or one-half acre, whichever is less, and thespoil is stabilized and permanently seeded to preventerosion;
(ii) the project does not have an adverse impact on anyspecies designated as endangered or threatened under state orfederal law; and
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9952(iii) the project will provide wildlife habitat improvementas certified by the soil and water conservationdistrict; or
(2) duck blinds.
Subd. 11. [EXEMPTION CONDITIONS.] (a) A personconducting an activity in a wetland under an exemption insubdivisions 1 to 10 shall ensure that:
(1) appropriate erosion control measures are taken toprevent sedimentation of the water;
(2) the activity does not block fish passage in awatercourse; and
(3) the activity is conducted in compliance with all otherapplicable federal, state, and local requirements, including bestmanagement practices and water resource protection requirementsestablished under chapter 103H.
(b) An activity is exempt if it qualifies for any one of theexemptions, even though it may be indicated as not exempt underanother exemption.
(c) Persons proposing to conduct an exempt activity areencouraged to contact the local government unit or the localgovernment unit's designee for advice on minimizing wetlandimpacts.
Sec. 26. Minnesota Statutes 1994, section 103G.2242,subdivision 1, is amended to read:
Subdivision 1. [RULES.] (a) By July 1, 1993, The board,in consultation with the commissioner, shall adopt rulesgoverning the approval of wetland value replacement plans underthis section. These rules must address the criteria, procedure,timing, and location of acceptable replacement of wetland values;may address the state establishment and administration of awetland banking program for public and private projects, whichmay include provisions allowing monetary payment to the wetlandbanking program for alteration of wetlands on agricultural land;the methodology to be used in identifying and evaluatingwetland functions; the administrative, monitoring, andenforcement procedures to be used; and a procedure for the reviewand appeal of decisions under this section. In the case ofpeatlands, the replacement plan rules must consider the impact oncarbon balance described in the report required by Laws 1990,chapter 587, and include the planting of trees or shrubs.
(b) After the adoption of the rules, a replacement plan must beapproved by a resolution of the governing body of the localgovernment unit, consistent with the provisions of the rulesor a comprehensive wetland protection and management planapproved under section 103G.2243.
(c) The board may approve as an alternative to the rulesadopted under this subdivision a comprehensive wetland protectionand management plan developed by a local government unit,provided that the plan:
(1) incorporates sections 103A.201, subdivision 2, and103G.222;
(2) is adopted as part of an approved local water plan undersections 103B.231 and 103B.311; and
(3) is adopted as part of the local government's officialcontrols.
(d) If the local government unit fails to apply the rules, orfails to implement a local program under paragraph (c)comprehensive wetland protection and management planestablished under section 103G.2243, the government unit issubject to penalty as determined by the board.
Sec. 27. Minnesota Statutes 1994, section 103G.2242,subdivision 2, is amended to read:
Subd. 2. [EVALUATION.] Questions concerning the public value,location, size, or type of a wetland shall be submitted to anddetermined by a technical evaluation panel after an on-siteinspection. The technical evaluation panel shall be composed ofa technical professional employee of the board, a technicalprofessional employee of the local soil and water conservationdistrict or districts, and a technical professional withexpertise in water resources management appointed by the localgovernment unit. The panel shall use the "Federal Manual forIdentifying and Delineating Jurisdictional Wetlands" (January1989) "United States Army Corps of Engineers WetlandDelineation Manual" (January 1987), "Wetlands of the UnitedStates" (United States Fish and Wildlife Service Circular 39,1971 edition), and "Classification of Wetlands and DeepwaterHabitats of the United States" (1979 edition). The panelshall provide the wetland determination to the local governmentunit that must approve a replacement plan under this section, andmay recommend approval or denial of the plan. The authority mustconsider and include the decision of the technical evaluationpanel in their approval or denial of a plan.
Sec. 28. Minnesota Statutes 1994, section 103G.2242,subdivision 4, is amended to read:
Subd. 4. [DECISION.] Upon receiving and considering allrequired data, the local government unit approving areviewing replacement plan applications, banking planapplications, and exemption or no-loss determination requestsmust act on all replacement plan applications for planapproval within 60 days, banking plan applications, andexemption or no-loss determination requests in compliance withsection 15.99.
Sec. 29. Minnesota Statutes 1994, section 103G.2242,subdivision 6, is amended to read:
Subd. 6. [NOTICE OF APPLICATION.] (a) Except as provided inparagraph (b), within ten days of receiving an application forapproval of a replacement plan under this section, a copy ofthe application must be submitted to the board for publication inthe Environmental Quality Board Monitor and separate copiesof the complete application must be mailed toindividual members of the public who request a copy, the boardof supervisors of the soil and water conservation district,the members of the technical evaluation panel, themanagers of the watershed district if one exists, theboard of county commissioners, and the commissioner ofagriculture, and the mayors of the cities within the areawatershed. At the same time, the local government unit must givegeneral notice to the public in a general circulation newspaperwithin the area affected. natural resources. Individualmembers of the public who request a copy shall be providedinformation to identify the applicant and the location and scopeof the project.
(b) Within ten days of receiving an application for approval ofa replacement plan under this section for an activity affectingless than 10,000 square feet of wetland, a summary of theapplication must be submitted for publication in theEnvironmental Quality Board Monitor and separate copiesmailed to the members of the technical evaluation panel,individual members of the public who request a copy, and themanagers of the watershed district, if applicable. At thesame time, the local government unit must give general notice tothe public in a general circulation newspaper within the areaaffected commissioner of natural resources.
(c) For the purpose of this subdivision, "application"includes a revised application for replacement plan approval andan application for a revision to an approved replacement planif:
(1) the wetland area to be drained or filled under therevised replacement plan is at least ten percent larger than thearea to be drained or filled under the original replacement plan;or
(2) the wetland area to be drained or filled under therevised replacement is located more than 500 feet from the areato be drained or filled under the original replacementplan.
Sec. 30. Minnesota Statutes 1994, section 103G.2242,subdivision 7, is amended to read:
Subd. 7. [NOTICE OF DECISION.] (a) Except as provided inparagraph (b), at least 30 Within ten days prior tothe effective date of the approval or denial of a replacementplan under this section, a copy summary of theapproval or denial must be submitted for publication in theEnvironmental Quality Board Monitor and separate copiesmailed to members of the technical evaluation panel, theapplicant, the board, individual members of the public whorequest a copy, the board of supervisors of the soil and waterconservation district, the managers of the watersheddistrict, the board of county commissioners, if oneexists, and the commissioner of agriculture, and themayors of the cities within the area watershed naturalresources.
(b) Within ten days of the decision approving or denying areplacement plan under this section for an activity affectingless than 10,000 square feet of wetland, a summary of theapproval or denial must be submitted for publication in theEnvironmental Quality Board Monitor and separate copies mailed tothe applicant, individual members of the public who request acopy, the members of the technical evaluation panel, and themanagers of the watershed district, if applicable. At the sametime, the local government unit must give general notice to thepublic in a general circulation newspaper within the areaaffected.
Sec. 31. Minnesota Statutes 1994, section 103G.2242,subdivision 9, is amended to read:
Subd. 9. [APPEAL.] Appeal of the a replacement plan,exemption, or no-loss decision may be obtained by mailing anotice of appeal petition and payment of a filing feeof $200, which shall be retained by the board to defrayadministrative costs, to the board within 30 15days after the postmarked date of the mailing specified insubdivision 7. If appeal is not sought within 3015 days, the decision becomes final. The localgovernment unit may require the petitioner to post a letter ofcredit, cashier's check, or cash in an amount not to exceed $500. If the petition for hearing is accepted, the amount posted mustbe returned to the petitioner. Appeal may be made by thewetland
owner, by any of those to whom notice is required to be mailedunder subdivision 7, or by 100 residents of the county in which amajority of the wetland is located. Within 30 days afterreceiving a petition, the board shall decide whether to grant thepetition and hear the appeal. The board shall grant the petitionunless the board finds that the appeal is meritless, trivial, orbrought solely for the purposes of delay; that the petitioner hasnot exhausted all local administrative remedies; or that thepetitioner has not posted a letter of credit, cashier's check, orcash if required by the local government unit. In determiningwhether to grant the appeal, the board shall also consider thesize of the wetland, other factors in controversy, any patternsof similar acts by the local government unit or petitioner, andthe consequences of the delay resulting from the appeal. Allappeals must be heard by the committee for dispute resolution ofthe board, and a decision made within 60 days of the appeal. Thedecision must be served by mail on the parties to the appeal, andis not subject to the provisions of chapter 14. The Adecision whether to grant a petition for appeal and adecision on the merits of an appeal must be considered thedecision of an agency in a contested case for purposes ofjudicial review under sections 14.63 to 14.69.
Sec. 32. Minnesota Statutes 1994, section 103G.2242,subdivision 12, is amended to read:
Subd. 12. [REPLACEMENT CREDITS.] (a) No public orprivate wetland restoration, enhancement, or construction may beallowed for replacement unless specifically designated forreplacement and paid for by the individual or organizationperforming the wetland restoration, enhancement, or construction,and is completed prior to any draining or filling of thewetland.
This subdivision (b) Paragraph (a) does not applyto a wetland whose owner has paid back with interest theindividual or organization restoring, enhancing, or constructingthe wetland.
(c) Notwithstanding section 103G.222, subdivision 1,paragraph (i), the following actions are eligible for replacementcredit as determined by the local government unit, includingenrollment in a statewide wetlands bank:
(1) Reestablishment of permanent vegetative cover on awetland that was planted with annually seeded crops, was in acrop rotation seeding of pasture grasses or legumes, or wasrequired to be set aside to receive price supports or otherpayments under United States Code, title 7, sections 1421 to1469, in six of the last ten years prior to January 1, 1991.Replacement credit may not exceed 50 percent of the total wetlandarea vegetatively restored;
(2) Buffer areas of permanent vegetative cover establishedon upland adjacent to replacement wetlands, provided that theupland buffer must be established at the time of wetlandreplacement and replacement credit for the buffer may not exceed75 percent of the replacement wetland area and may only be usedfor replacement above a 1:1 ratio;
(3) Wetlands restored for conservation purposes underterminated easements or contracts, provided that Up to 75 percentof the restored wetland area is eligible for replacement creditand adjacent upland buffer areas reestablished to permanentvegetative cover are eligible for replacement credit above a 1:1ratio in an amount not to exceed 25 percent of the restoredwetland area; and
(4) Water quality treatment ponds constructed to pretreatstorm water runoff prior to discharge to wetlands, public waters,or other water bodies, provided that the water quality treatmentponds must be associated with an ongoing or proposed project thatwill impact a wetland and replacement credit for the treatmentponds may not exceed 75 percent of the treatment pond area andmay only be used for replacement above a 1:1 ratio.
Sec. 33. [103G.2243] [LOCAL COMPREHENSIVE WETLAND PROTECTIONAND MANAGEMENT PLANS.]
Subdivision 1. [GENERAL REQUIREMENTS; NOTICE ANDPARTICIPATION.] (a) As an alternative to the rules adoptedunder section 103G.2242, subdivision 1, and the public valuecriteria established or approved under section 103B.3355, acomprehensive wetland protection and management plan may bedeveloped by a local government unit, or one or more localgovernment units operating under a joint powers agreement,provided that:
(1) a notice is made at the beginning of the planningprocess to the board, the commissioner of natural resources, thepollution control agency, local government units, and localcitizens to actively participate in the development of the plan;and
(2) the plan is implemented by ordinance as part of thelocal government's official controls under chapter 394, for acounty; chapter 462, for a city; chapter 366, for a town; and byrules adopted under chapter 103D, for a watershed district; andchapter 103B, for a watershed management organization.
JOURNAL OF THE HOUSE - 112th Day - Top of Page 9955(b) An organization that is invited to participate in thedevelopment of the local plan, but declines to do so and fails toparticipate or to provide written comments during the localreview process, waives the right during board review to submitcomments, except comments concerning consistency of the plan withlaws and rules administered by that agency. In determining themerit of an agency comment, the board shall consider theinvolvement of the agency in the development of the localplan.
Subd. 2. [PLAN CONTENTS.] A comprehensive wetlandprotection and management plan may:
(1) provide for classification of wetlands in the plan areabased on:
(i) an inventory of wetlands in the plan area;
(ii) an assessment of the wetland functions listed insection 103B.3355, using a methodology chosen by the technicalevaluation panel from one of the methodologies established orapproved by the board under that section; and
(iii) the resulting public values;
(2) vary application of the sequencing standards in section103G.222, subdivision 1, paragraph (b), for projects based on theclassification and criteria set forth in the plan;
(3) vary the replacement standards of section 103G.222,subdivision 1, paragraphs (f) and (g), based on theclassification and criteria set forth in the plan, for specificwetland impacts provided there is no net loss of public valueswithin the area subject to the plan, and so long as:
(i) in a 50 to 80 percent area, a minimum acreagerequirement of one acre of replaced wetland for each acre ofdrained or filled wetland requiring replacement is met within thearea subject to the plan; and
(ii) in a less than 50 percent area, a minimum acreagerequirement of two acres of replaced wetland for each acre ofdrained or filled wetland requiring replacement is met within thearea subject to the plan, except that replacement for the amountabove a 1:1 ratio can be accomplished as described in subdivision12;
(4) in a greater than 80 percent area, allow replacementcredit, based on the classification and criteria set forth in theplan, for any project that increases the public value ofwetlands, including activities on adjacent upland acres;and
(5) in a greater than 80 percent area, based on theclassification and criteria set forth in the plan, expand theapplication of the exemptions in section 103G.2241, subdivision1, paragraph (a), clause (4), to also include nonagriculturalland, provided there is no net loss of wetland values.
Subd. 3. [BOARD REVIEW AND APPROVAL; MEDIATI