Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1989, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1989
CHAPTER 356-H.F.No. 1616
An act relating to legislative enactments; providing
for the correction of miscellaneous oversights,
inconsistencies, ambiguities, unintended results, and
technical errors of a noncontroversial nature;
amending Minnesota Statutes 1988, sections 40A.122,
subdivision 1; 65A.375; 65B.49, subdivision 4a, as
amended; 80A.15, subdivision 2; 115B.02, subdivision
14; 116J.64, subdivision 7; 124.43, subdivision 1, as
amended; 176.132, subdivision 2; 216B.01; 216B.02,
subdivision 4; 216B.027, subdivision 2; 221.031,
subdivisions 2 and 2a; 237.075, subdivision 9; 273.11,
subdivision 8; 275.50, subdivision 2; 290.092,
subdivision 2; 290A.04, by adding a subdivision;
325E.025, subdivision 1; 325E.026, subdivision 1;
326.20, subdivision 2; 363.01, subdivision 32;
469.153, subdivision 7; 500.221, subdivision 2; Laws
1989, chapters 135, section 2; and 144, section 35;
1989 H.F. No. 59, article 2, sections 3, subdivision
1; and 18; article 3, section 26; article 4, sections
1, subdivision 3; and 18; article 9, sections 1,
subdivision 1; and 8; article 10, section 3; H.F. No.
66, article 3, section 16, subdivision 3; H.F. No.
372, article 1, section 28; article 3, section 58,
subdivision 2; H.F. No. 654, article 6, section 4,
subdivision 3; article 7, section 19; H.F. No. 1283,
section 15; H.F. No. 1532, section 1; H.F. No. 1734,
article 1, sections 7; 14; and 17; article 3, sections
6; 14; 17; 18; 21; 26; and 35; article 4, sections 11;
12; and 14; article 6, sections 3 and 11; article 7,
section 6; and 1989 S.F. No. 262, article 4, section
3; repealing Laws 1989, chapter 118; and 1989 H.F. No.
579, article 2, section 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1988, section 124.43,
subdivision 1, as amended by Laws 1989, chapter 1, section 1, is
amended to read:
Subdivision 1. [REVIEW BY COMMISSIONER.] (a) The
commissioner may, after review and a favorable recommendation by
the state board of education, recommend to the legislature
capital loans to school districts. Proceeds of the loans shall
be used only for sites for school buildings and for acquiring,
bettering, furnishing, or equipping school buildings under
contracts to be entered into within 12 months from and after the
date on which each loan is granted.
(b) Any school board that intends to submit an application
for a capital loan shall submit a proposal to the commissioner
for review and comment pursuant to section 121.15 by September 1
of any year, and the commissioner shall prepare a review and
comment on the proposed facility, regardless of the amount of
the capital expenditure required to construct the facility. The
state board shall not make a favorable recommendation on an
application for a capital loan for any facility unless:
(1) the facility receives a positive review and comment
pursuant to section 121.15; and
(2) the state board determines that
(A) the facilities are needed to replace facilities
dangerous to the health and safety of pupils, or to provide for
pupils for whom no adequate facilities exist;
(B) the facilities could not be made available through
dissolution and attachment of the district to another district
or through pairing, interdistrict cooperation, or consolidation
with another district, or through the purchase or lease of
facilities from existing institutions within the area. The
preference of the school district regarding reorganization shall
not be a criterion used by the state board in determining
whether the facilities could be made available through
reorganization;
(C) the facilities are comparable in size and quality to
facilities recently constructed in other districts of similar
enrollment; and
(D) the district's need for the facilities is comparable to
needs that comparable districts are meeting through local bond
issues.
The state board may recommend that the loan be approved in
a reduced amount in order to meet the foregoing criteria. If
the state board recommends that a loan not be approved, the
commissioner shall not recommend approval of the loan. If the
state board recommends that the loan be approved in a reduced
amount, the commissioner shall not recommend approval of a loan
larger than that recommended by the state board.
(c) As part of reviewing an application for a capital loan,
the commissioner of education shall prepare estimated yearly
repayments by the school district and the estimated amount of
principal and interest that may be forgiven after the term of
the loan. These estimates shall assume no growth in gross tax
capacity over the term of the loan, shall assume a levy equal to
16 mills times the adjusted gross tax capacity, and shall be
prepared using a methodology approved by the commissioner of
finance. The commissioner of education shall use a discount
factor provided by the commissioner of finance in determining
the present value of the estimated amount of interest and
principal which may be forgiven after the term of the loan.
(d) No loan shall be recommended for approval for any
district exceeding an amount computed as follows:
(1) The amount requested by the district under subdivision
2;
(2) Plus the aggregate principal amount of general
obligation bonds of the district outstanding on June 30 of the
year following the year the application was received, not
exceeding the limitation on net debt of the district in section
475.53, subdivision 4, or the following amount:
(i) for the period October 1, 1988, to September 30, 1989,
197 percent of its adjusted gross tax capacity,
(ii) for any 12-month period beginning October 1 of any
year after 1988, 245 percent of its adjusted net tax capacity as
most recently determined, whichever is less;
(3) Less the maximum net debt permissible for the district
on December 1 of the year the application is received, under the
limitation in section 475.53, subdivision 4, or the following
amount:
(i) for the period October 1, 1988, to September 30, 1989,
197 percent of its adjusted gross tax capacity,
(ii) for any 12-month period beginning October 1 of any
year after 1988, 245 percent of its adjusted net tax capacity as
most recently determined, whichever is less; and
(4) Less any amount by which the amount voted exceeds the
total cost of the facilities for which the loan is granted, as
estimated in accordance with subdivision 4, provided that the
loan may be approved in an amount computed as provided in
clauses (1) to (3), subject to subsequent reduction in
accordance with this clause.
Sec. 2. [CORRECTION NO. 1] Laws 1989, chapter 135, section
2, is amended to read:
Sec. 2. [PRIVATE SALES OF TAX-FORFEITED LANDS; ST. LOUIS
COUNTY.]
Subdivision 1. (a) Notwithstanding Minnesota Statutes,
section 282.018, or the public sale provisions of Minnesota
Statutes, chapter 282, St. Louis county may sell the
tax-forfeited lands bordering public waters and described in
subdivision 2, to the persons indicated, by private sale for not
less than appraised value.
(b) The conveyances must be in a form approved by the
attorney general.
Subd. 2. (a) The following lands located in St. Louis
county may be sold to the persons indicated.
(b) St. Louis county may sell to Charlotte Ekroot, Windigo
Lodge, Grand Marais: that part of the Southeast Quarter of the
Northwest Quarter of Section 9, Township 55 North, Range 12
West, lying west of the township road. A cabin and a tool shed
were built on what they thought was their property. Later
surveys indicated that they had built on tax-forfeited property.
(c) St. Louis county may sell to Manson Berg, 2930 Miller
Trunk Highway, Duluth: the easterly 164.1 feet of the South
Half of the Northwest Quarter of the Southwest Quarter of the
Southwest Quarter, Section 12, Township 50 North, Range 15
West. The adjacent property has belonged to Mr. Berg since 1978.
Due to incorrect survey lines, part of Mr. Berg's trailer park
along with water and sewage system was located on 1.24 acres of
tax-forfeited land. This land is surrounded by private property
and has no road access.
(d) St. Louis county may sell to Mablo Enrico, 202 First
Street N.W., Chisholm: part of Outlot B, beginning at a point
83.96 feet South and 212.77 feet West of the Northwest corner,
go South 47 degrees 9 minutes East 393 feet to a point on the
West line of a platted road, thence South 42 degrees 51 minutes
West along the west side of said road 100 feet, thence North 47
degrees 9 minutes West 396 feet to a point on the shore of Long
Lake, thence in a northerly and easterly direction 100 feet to
the point of beginning. Plat of Long Lake Beach, Lot 1, Sec.
17, Lot 7, Section 18, all in Township 59 North, Range 20 West.
Mr. Enrico, who has been diagnosed as having Alzheimer's
Disease, forgot to pay taxes on his lakeshore lot and it was
forfeited. The family would like to redeem the property.
(e) St. Louis county may sell to William Moffat, P. O. Box
434, Tower: an undivided three-eighths interest in the easterly
175 feet of Government Lot 8, Section 19, Township 62 North,
Range 14 West. Mr. Moffat requested use of tax-forfeited lands
adjoining his property. New surveys indicated that his garage
and part of his house are already on that property.
(f) St. Louis county may sell to Rodney and Mary Lou
Halunen, 1009 1st Street South, Virginia: the North Half of Lot
8 of Ruth Ann's Acres, Little Fourteen Lake, Government Lot 1,
Section 13, Township 60 North, Range 19 West. Lot 8 is a small
undevelopable lake lot between two private landowners. The
department of natural resources has stated that there is no need
for a public access. The county recommends that it be split and
sold to the two landowners in paragraphs (f) and (g).
(g) St. Louis county may sell to Steve Prelesnik, Route 1,
Box 790, Britt: the South Half of Lot 8 of Ruth Ann's Acres,
Little Fourteen Lake, Government Lot 1, Section 13, Township 60
North, Range 19 West. Lot 8 is a small undevelopable lake lot
between two private landowners. The department of natural
resources has stated that there is no need for a public access.
The county recommends that it be split and sold to the two
landowners in paragraphs (f) and (g).
(h) Lands in this section are not needed for state purposes
and the public's interest would be better served if the lands
were publicly privately owned.
Sec. 3. [CORRECTION NO. 2] Laws 1989, chapter 144, section
35, is amended to read:
Sec. 35. [308A.641] [VOTE OF COOPERATIVE CONSTITUTED OF
OTHER COOPERATIVES.]
A cooperative that is constituted entirely or partially of
other cooperatives or associations may authorize by the articles
or the bylaws for affiliated cooperative members to have an
additional vote for:
(1) a stipulated amount of business transacted between the
member cooperative and the cooperative central organization or;
(2) a stipulated number of members in the member
cooperative;
(3) a certain stipulated amount of equity allocated to or
held by the member cooperative in the cooperative's central
organization; or
(4) a combination of methods in clauses (1) to (3).
[308.07 s. 4]
Sec. 4. [CORRECTION 3.] Minnesota Statutes 1988, section
40A.122, subdivision 1, is amended to read:
Subdivision 1. [APPLICABILITY.] An agency of the state, a
public benefit corporation, a local government, or any other
entity with the power of eminent domain under chapter 117,
except a public utility as defined in section 216B.02, a
municipal electric or gas utility, a municipal power agency, a
cooperative electric association organized under chapter 308
308A, or a pipeline operating under the authority of the Natural
Gas Act, United States Code, title 15, sections 717 to 717z,
shall follow the procedures in this section before:
(1) acquiring land or an easement in land with a total area
over ten acres within an exclusive agricultural use zone; or
(2) advancing a grant, loan, interest subsidy, or other
funds for the construction of dwellings, commercial or
industrial facilities, or water or sewer facilities that could
be used to serve structures in areas that are not for
agricultural use, that require an acquisition of land or an
easement in an exclusive agricultural zone.
Sec. 5. [CORRECTION 3.] Minnesota Statutes 1988, section
65A.375, is amended to read:
65A.375 [RATES FOR COOPERATIVE HOUSING AND NEIGHBORHOOD
REAL ESTATE TRUST INSURANCE.]
The commissioner shall set the insurance rates for
cooperative housing, organized under chapter 308 308A, and for
neighborhood real estate trusts, characterized as nonprofit
ownership of real estate with resident control. The rates must
be actuarially sound.
Sec. 6. [CORRECTION 3.] Minnesota Statutes 1988, section
80A.15, subdivision 2, is amended to read:
Subd. 2. The following transactions are exempted from
sections 80A.08 and 80A.16:
(a) Any isolated sales, whether or not effected through a
broker-dealer, provided that no person shall make more than ten
sales of securities of the same issuer pursuant to this
exemption during any period of 12 consecutive months; provided
further, that in the case of sales by an issuer, except sales of
securities registered under the Securities Act of 1933 or
exempted by section 3(b) of that act, (1) the seller reasonably
believes that all buyers are purchasing for investment, and (2)
the securities are not advertised for sale to the general public
in newspapers or other publications of general circulation or
otherwise, or by radio, television, electronic means or similar
communications media, or through a program of general
solicitation by means of mail or telephone.
(b) Any nonissuer distribution of an outstanding security
if (1) either Moody's, Fitch's, or Standard & Poor's Securities
Manuals, or other recognized manuals approved by the
commissioner contains the names of the issuer's officers and
directors, a balance sheet of the issuer as of a date not more
than 18 months prior to the date of the sale, and a profit and
loss statement for the fiscal year preceding the date of the
balance sheet, and (2) the issuer or its predecessor has been in
active, continuous business operation for the five-year period
next preceding the date of sale, and (3) if the security has a
fixed maturity or fixed interest or dividend provision, the
issuer has not, within the three preceding fiscal years,
defaulted in payment of principal, interest, or dividends on the
securities.
(c) The execution of any orders by a licensed broker-dealer
for the purchase or sale of any security, pursuant to an
unsolicited offer to purchase or sell; provided that the
broker-dealer acts as agent for the purchaser or seller, and has
no direct material interest in the sale or distribution of the
security, receives no commission, profit, or other compensation
from any source other than the purchaser and seller and delivers
to the purchaser and seller written confirmation of the
transaction which clearly itemizes the commission, or other
compensation.
(d) Any nonissuer sale of notes or bonds secured by a
mortgage lien if the entire mortgage, together with all notes or
bonds secured thereby, is sold to a single purchaser at a single
sale.
(e) Any judicial sale, exchange, or issuance of securities
made pursuant to an order of a court of competent jurisdiction.
(f) The sale, by a pledge holder, of a security pledged in
good faith as collateral for a bona fide debt.
(g) Any offer or sale to a bank, savings institution, trust
company, insurance company, investment company as defined in the
Investment Company Act of 1940, pension or profit sharing trust,
or other financial institution or institutional buyer, or to a
broker-dealer, whether the purchaser is acting for itself or in
some fiduciary capacity.
(h) Any sales by an issuer to the number of persons that
shall not exceed 25 persons in this state, or 35 persons if the
sales are made in compliance with Regulation D promulgated by
the Securities and Exchange Commission, Code of Federal
Regulations, title 17, sections 230.501 to 230.506, (other than
those designated in paragraph (a) or (g)), whether or not any of
the purchasers is then present in this state, if (1) the issuer
reasonably believes that all of the buyers in this state (other
than those designated in clause (g)) are purchasing for
investment, and (2) no commission or other remuneration is paid
or given directly or indirectly for soliciting any prospective
buyer in this state (other than those designated in clause (g)),
except reasonable and customary commissions paid by the issuer
to a broker-dealer licensed under this chapter, and (3) the
issuer has, ten days prior to any sale pursuant to this
paragraph, supplied the commissioner with a statement of issuer
on forms prescribed by the commissioner, containing the
following information: (i) the name and address of the issuer,
and the date and state of its organization; (ii) the number of
units, price per unit, and a description of the securities to be
sold; (iii) the amount of commissions to be paid and the persons
to whom they will be paid; (iv) the names of all officers,
directors and persons owning five percent or more of the equity
of the issuer; (v) a brief description of the intended use of
proceeds; (vi) a description of all sales of securities made by
the issuer within the six-month period next preceding the date
of filing; and (vii) a copy of the investment letter, if any,
intended to be used in connection with any sale. Sales that are
made more than six months before the start of an offering made
pursuant to this exemption or are made more than six months
after completion of an offering made pursuant to this exemption
will not be considered part of the offering, so long as during
those six-month periods there are no sales of unregistered
securities (other than those made pursuant to paragraph (a) or
(g)) by or for the issuer that are of the same or similar class
as those sold under this exemption. The commissioner may by
rule or order as to any security or transaction or any type of
security or transaction, withdraw or further condition this
exemption, or increase the number of offers and sales permitted,
or waive the conditions in clause (1), (2), or (3) with or
without the substitution of a limitation or remuneration.
(i) Any offer (but not a sale) of a security for which a
registration statement has been filed under sections 80A.01 to
80A.31, if no stop order or refusal order is in effect and no
public proceeding or examination looking toward an order is
pending; and any offer of a security if the sale of the security
is or would be exempt under this section. The commissioner may
by rule exempt offers (but not sales) of securities for which a
registration statement has been filed as the commissioner deems
appropriate, consistent with the purposes of sections 80A.01 to
80A.31.
(j) The offer and sale by a cooperative association
organized under chapter 308 308A, of its securities when the
securities are offered and sold only to its members, or when the
purchase of the securities is necessary or incidental to
establishing membership in such association, or when such
securities are issued as patronage dividends.
(l) The issuance and delivery of any securities of one
corporation to another corporation or its security holders in
connection with a merger, exchange of shares, or transfer of
assets whereby the approval of stockholders of the other
corporation is required to be obtained, provided, that the
commissioner has been furnished with a general description of
the transaction and with other information as the commissioner
by rule prescribes not less than ten days prior to the issuance
and delivery.
(m) Any transaction between the issuer or other person on
whose behalf the offering is made and an underwriter or among
underwriters.
(n) The distribution by a corporation of its or other
securities to its own security holders as a stock dividend or as
a dividend from earnings or surplus or as a liquidating
distribution; or upon conversion of an outstanding convertible
security; or pursuant to a stock split or reverse stock split.
(o) Any offer or sale of securities by an affiliate of the
issuer thereof if: (1) a registration statement is in effect
with respect to securities of the same class of the issuer and
(2) the offer or sale has been exempted from registration by
rule or order of the commissioner.
(p) Any transaction pursuant to an offer to existing
security holders of the issuer, including persons who at the
time of the transaction are holders of convertible securities,
nontransferable warrants, or transferable warrants exercisable
within not more than 90 days of their issuance, if: (1) no
commission or other remuneration (other than a standby
commission) is paid or given directly or indirectly for
soliciting any security holder in this state; and (2) the
commissioner has been furnished with a general description of
the transaction and with other information as the commissioner
may by rule prescribe no less than ten days prior to the
transaction.
(q) Any nonissuer sales of industrial revenue bonds issued
by the state of Minnesota or any of its political or
governmental subdivisions, municipalities, governmental
agencies, or instrumentalities.
Sec. 7. [CORRECTION 3.] Minnesota Statutes 1988, section
115B.02, subdivision 14, is amended to read:
Subd. 14. [PUBLIC UTILITY EASEMENT.] "Public utility
easement" means an easement used for the purposes of
transmission, distribution, or furnishing, at wholesale or
retail, natural or manufactured gas, or electric or telephone
service, by a public utility as defined in section 216B.02,
subdivision 4, a cooperative electric association organized
under the provisions of chapter 308 308A, a telephone company as
defined in section 237.01, subdivisions 2 and 3, or a
municipality producing or furnishing gas, electric, or telephone
service.
Sec. 8. [CORRECTION 3.] Minnesota Statutes 1988, section
216B.01, is amended to read:
216B.01 [LEGISLATIVE FINDING.]
It is hereby declared to be in the public interest that
public utilities be regulated as hereinafter provided in order
to provide the retail consumers of natural gas and electric
service in this state with adequate and reliable services at
reasonable rates, consistent with the financial and economic
requirements of public utilities and their need to construct
facilities to provide such services or to otherwise obtain
energy supplies, to avoid unnecessary duplication of facilities
which increase the cost of service to the consumer and to
minimize disputes between public utilities which may result in
inconvenience or diminish efficiency in service to the
consumers. Because municipal utilities are presently
effectively regulated by the residents of the municipalities
which own and operate them, and cooperative electric
associations are presently effectively regulated and controlled
by the membership under the provisions of chapter 308 308A, it
is deemed unnecessary to subject such utilities to regulation
under this chapter except as specifically provided herein.
Sec. 9. [CORRECTION 3.] Minnesota Statutes 1988, section
216B.02, subdivision 4, is amended to read:
Subd. 4. "Public utility" means persons, corporations or
other legal entities, their lessees, trustees, and receivers,
now or hereafter operating, maintaining, or controlling in this
state equipment or facilities for furnishing at retail natural,
manufactured or mixed gas or electric service to or for the
public or engaged in the production and retail sale thereof but
does not include (1) a municipality or a cooperative electric
association, organized under the provisions of chapter 308 308A
producing or furnishing natural, manufactured or mixed gas or
electric service or (2) a retail seller of compressed natural
gas used as a vehicular fuel which purchases the gas from a
public utility. Except as otherwise provided, the provisions of
this chapter shall not be applicable to any sale of natural,
manufactured or mixed gas or electricity by a public utility to
another public utility for resale. In addition, the provisions
of this chapter shall not apply to a public utility whose total
natural gas business consists of supplying natural, manufactured
or mixed gas to not more than 650 customers within a city
pursuant to a franchise granted by the city, provided a
resolution of the city council requesting exemption from
regulation is filed with the commission. The city council may
rescind the resolution requesting exemption at any time, and,
upon the filing of the rescinding resolution with the
commission, the provisions of this chapter shall apply to the
public utility. No person shall be deemed to be a public
utility if it furnishes its services only to tenants or
cooperative or condominium owners in buildings owned, leased or
operated by such person. No person shall be deemed to be a
public utility if it furnishes service to occupants of a
manufactured home or trailer park owned, leased, or operated by
such person. No person shall be deemed to be a public utility
if it produces or furnishes service to less than 25 persons.
Sec. 10. [CORRECTION 3.] Minnesota Statutes 1988, section
216B.027, subdivision 2, is amended to read:
Subd. 2. [SCOPE.] Cooperative associations organized under
chapter 308 308A for the purpose of providing rural
electrification at retail to ultimate consumers shall comply
with the provisions of this section in addition to other
applicable provisions of chapter 308 308A and other applicable
state and federal laws.
Sec. 11. [CORRECTION 3.] Minnesota Statutes 1988, section
221.031, subdivision 2, is amended to read:
Subd. 2. [PRIVATE CARRIERS.] This subdivision applies to
private carriers engaged in intrastate commerce.
(a) Private carriers operating vehicles licensed and
registered for a gross weight of more than 12,000 pounds, shall
comply with rules adopted under this section applying to maximum
hours of service of drivers, safe operation of vehicles,
equipment, parts and accessories, leasing of vehicles or
vehicles and drivers, and inspection, repair, and maintenance.
(b) In addition to the requirements in paragraph (a),
private carriers operating vehicles licensed and registered for
a gross weight in excess of 26,000 pounds shall comply with
rules adopted under this section relating to driver
qualifications.
(c) The requirements as to driver qualifications and
maximum hours of service for drivers do not apply to private
carriers who are (1) public utilities as defined in section
216B.02, subdivision 4; (2) cooperative electric associations
organized under chapter 308 308A; (3) telephone companies as
defined in section 237.01, subdivision 2; or (4) who are engaged
in the transportation of construction materials, tools and
equipment from shop to job site or job site to job site, for use
by the private carrier in the new construction, remodeling, or
repair of buildings, structures or their appurtenances.
(d) The driver qualification rule and the hours of service
rules do not apply to vehicles controlled by a farmer and
operated by a farmer or farm employee to transport agricultural
products or farm machinery or supplies to or from a farm if the
vehicle is not used in the operations of a motor carrier and not
carrying hazardous materials of a type or quantity that requires
the vehicle to be marked or placarded in accordance with section
221.033.
Sec. 12. [CORRECTION 3.] Minnesota Statutes 1988, section
237.075, subdivision 9, is amended to read:
Subd. 9. [ELECTION ON REGULATION.] For the purposes of
this section, "telephone company" shall not include a
cooperative telephone association organized under the provisions
of chapter 308 308A, an independent telephone company, or a
municipal, unless the cooperative telephone association,
independent telephone company, or municipal makes the election
provided in this subdivision.
A cooperative telephone association may elect to become
subject to rate regulation by the commission pursuant to this
section. The election shall be (a) approved by the board of
directors of the association in accordance with the procedures
for amending the articles of incorporation contained in section
308.15, subdivision 1, excluding the filing requirements; or (b)
approved by a majority of members or stockholders voting by mail
ballot initiated by petition of no fewer than five percent of
the members or stockholders of the association. The ballot to
be used for the election shall be approved by the board of
directors and the department of public service. The department
shall mail the ballots to the association's members who shall
return the ballots to the department. The department will keep
the ballots sealed until a date agreed upon by the department
and the board of directors. On this date, representatives of
the department and the association shall count the ballots. If a
majority of the association's members who vote elect to become
subject to rate regulation by the commission, the election shall
be effective 30 days after the date the ballots are counted.
For purposes of this section, the term "member or stockholder"
shall mean either the member or stockholder of record or the
spouse of the member or stockholder unless the association has
been notified otherwise in writing.
A municipal may elect to become subject to rate regulation
by the commission pursuant to this section. The election shall
be (a) approved by resolution of the governing body of the
municipality; or (b) approved by a majority of the customers of
the municipal voting by mail ballot initiated by petition of no
fewer than 20 percent of the customers of the municipal. The
ballot to be used for the election shall be approved by the
governing body of the municipality and the department of public
service. The department shall mail the ballots to the
municipal's customers who shall return the ballots to the
department. The department will keep the ballots sealed until a
date agreed upon by the department and the governing body of the
municipality. On this date, representatives of the department
and the municipal shall count the ballots. If a majority of the
customers of the municipal who vote elect to become subject to
rate regulation by the commission, the election shall be
effective 30 days after the date the ballots are counted. For
purposes of this section, the term "customer" shall mean either
the person in whose name the telephone service is registered or
the spouse of the person unless the municipal utility has been
notified otherwise in writing.
An independent telephone company may elect to become
subject to rate regulation by the commission pursuant to this
section. The election shall be (a) approved by the board of
directors of the company in accordance with the procedures for
amending the articles of incorporation contained in sections
302A.133 to 302A.139, excluding the filing requirements; or (b)
approved by a majority of subscribers voting by mail ballot
initiated by petition of no fewer than five percent of the
subscribers of the company. The ballot to be used for the
election shall be approved by the board of directors and the
department of public service. The department shall mail the
ballots to the company's subscribers who shall return the
ballots to the department. The department will keep the ballots
sealed until a date agreed upon by the department and the board
of directors. On this date, representatives of the department
and the company shall count the ballots. If a majority of the
company's subscribers who vote elect to become subject to rate
regulation by the commission, the election shall be effective 30
days after the date the ballots are counted. For purposes of
this section the term "subscriber" shall mean either the person
in whose name the telephone service is registered or the spouse
of the person unless the independent telephone company has been
notified otherwise in writing.
Sec. 13. [CORRECTION 3.] Minnesota Statutes 1988, section
273.11, subdivision 8, is amended to read:
Subd. 8. [LIMITED EQUITY COOPERATIVE APARTMENTS.] For the
purposes of this subdivision, the terms defined in this
subdivision have the meanings given them.
A "limited equity cooperative" is a corporation organized
under chapter 308 308A, which has as its primary purpose the
provision of housing and related services to its members which
meets one of the following criteria with respect to the income
of its members: (1) a minimum of 75 percent of members must
have incomes at or less than 90 percent of area median income,
(2) a minimum of 40 percent of members must have incomes at or
less than 60 percent of area median income, or (3) a minimum of
20 percent of members must have incomes at or less than 50
percent of area median income. For purposes of this clause,
"member income" shall mean the income of a member existing at
the time the member acquires cooperative membership, and median
income shall mean the St. Paul-Minneapolis metropolitan area
median income as determined by the United States Department of
Housing and Urban Development. It must also meet the following
requirements:
(a) The articles of incorporation set the sale price of
occupancy entitling cooperative shares or memberships at no more
than a transfer value determined as provided in the articles.
That value may not exceed the sum of the following:
(1) the consideration paid for the membership or shares by
the first occupant of the unit, as shown in the records of the
corporation;
(2) the fair market value, as shown in the records of the
corporation, of any improvements to the real property that were
installed at the sole expense of the member with the prior
approval of the board of directors;
(3) accumulated interest, or an inflation allowance not to
exceed the greater of a ten percent annual noncompounded
increase on the consideration paid for the membership or share
by the first occupant of the unit, or the amount that would have
been paid on that consideration if interest had been paid on it
at the rate of the percentage increase in the revised consumer
price index for all urban consumers for the Minneapolis-St. Paul
metropolitan area prepared by the United States Department of
Labor, provided that the amount determined pursuant to this
clause may not exceed $500 for each year or fraction of a year
the membership or share was owned; plus
(4) real property capital contributions shown in the
records of the corporation to have been paid by the transferor
member and previous holders of the same membership, or of
separate memberships that had entitled occupancy to the unit of
the member involved. These contributions include contributions
to a corporate reserve account the use of which is restricted to
real property improvements or acquisitions, contributions to the
corporation which are used for real property improvements or
acquisitions, and the amount of principal amortized by the
corporation on its indebtedness due to the financing of real
property acquisition or improvement or the averaging of
principal paid by the corporation over the term of its real
property-related indebtedness.
(b) The articles of incorporation require that the board of
directors limit the purchase price of stock or membership
interests for new member-occupants or resident shareholders to
an amount which does not exceed the transfer value for the
membership or stock as defined in clause (a).
(c) The articles of incorporation require that the total
distribution out of capital to a member shall not exceed that
transfer value.
(d) The articles of incorporation require that upon
liquidation of the corporation any assets remaining after
retirement of corporate debts and distribution to members will
be conveyed to a charitable organization described in section
501(c)(3) of the Internal Revenue Code of 1986, as amended
through December 31, 1986, or a public agency.
A "limited equity cooperative apartment" is a dwelling unit
owned by a limited equity cooperative.
"Occupancy entitling cooperative share or membership" is
the ownership interest in a cooperative organization which
entitles the holder to an exclusive right to occupy a dwelling
unit owned or leased by the cooperative.
For purposes of taxation, the assessor shall value a unit
owned by a limited equity cooperative at the lesser of its
market value or the value determined by capitalizing the net
operating income of a comparable apartment operated on a rental
basis at the capitalization rate used in valuing comparable
buildings that are not limited equity cooperatives. If a
cooperative fails to operate in accordance with the provisions
of clauses (a) to (d), the property shall be subject to
additional property taxes in the amount of the difference
between the taxes determined in accordance with this subdivision
for the last ten years that the property had been assessed
pursuant to this subdivision and the amount that would have been
paid if the provisions of this subdivision had not applied to
it. The additional taxes, plus interest at the rate specified
in section 549.09, shall be extended against the property on the
tax list for the current year.
Sec. 14. [CORRECTION 3.] Minnesota Statutes 1988, section
290.092, subdivision 2, is amended to read:
Subd. 2. [EXEMPTIONS.] Corporations subject to tax under
sections 290.05, subdivision 3; or 60A.15, subdivision 1 and
290.35; real estate investment trusts; regulated investment
companies; cooperatives taxable under subchapter T of the
Internal Revenue Code of 1986 or organized under chapter 308
308A or a similar law of another state; and entities having a
valid election in effect under section 1362 or 860D(b) of the
Internal Revenue Code of 1986, as amended through December 31,
1987, are not subject to the tax imposed in subdivision 1 or
subdivision 5.
Sec. 15. [CORRECTION 3.] Minnesota Statutes 1988, section
325E.025, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this
section, "utility" means persons, corporations, or other legal
entities, their lessees, trustees, and receivers, now or
hereafter operating, maintaining, or controlling in this state
equipment or facilities for furnishing at retail natural,
manufactured, or mixed gas or electric service to or for the
public or engaged in its production and retail sale. The term
"utility" includes municipalities and cooperative electric
associations, organized under the provisions of chapter 308
308A, producing or furnishing natural, manufactured, or mixed
gas or electric service. This section is not applicable to the
sale of natural, manufactured, or mixed gas or electricity by a
public utility to another public utility for resale.
"Customer" means any person, firm, association, or
corporation, or any agency of the federal, state, or local
government being supplied with service by a utility.
Sec. 16. [CORRECTION 3.] Minnesota Statutes 1988, section
325E.026, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] When used in this section,
the terms defined in section 216B.02 have the same meanings.
Other terms used in this section have the following meanings:
(a) "Bypassing" means the act of attaching, connecting, or
otherwise affixing a wire, cord, socket, pipe, hose, motor, or
other instrument or device to utility or customer-owned
facilities or equipment so that service provided by the utility
is transmitted, supplied, or used without passing through a
meter authorized by the utility for measuring or registering the
amount of service provided.
(b) "Tampering" means damaging, altering, adjusting, or
obstructing the operation of a meter or submeter provided by a
utility for measuring or registering the amount of electricity,
natural gas, or other utility service passing through the meter.
(c) "Unauthorized connection" means the physical connection
or physical reconnection of utility service by a person without
the authorization or consent of the utility.
(d) "Unauthorized metering" means removing, installing,
connecting, reconnecting, or disconnecting a meter, submeter, or
metering device for service by a utility, by a person other than
an authorized employee or agent of the utility.
(e) "Utility" means a public utility defined in section
216B.02, subdivision 4; a municipal utility; or a cooperative
electric association organized under chapter 308 308A.
Sec. 17. [CORRECTION 3.] Minnesota Statutes 1988, section
326.20, subdivision 2, is amended to read:
Subd. 2. [LICENSURE OF PARTNERSHIPS AND CORPORATIONS.]
Every partnership or corporation in which one or more certified
public accountants or licensed public accountants of this state
is a partner or shareholder, if it is engaged, or intends to be
engaged, in public practice within this state at any time shall
be licensed by the state board of accountancy for that period.
Upon application made upon the affidavit of a general partner of
the partnership or secretary of the corporation who is a
certified public accountant or a licensed public accountant of
this state in good standing, the board shall issue a license
which shall be good for a period prescribed by the board, unless
the license shall sooner be revoked. Interim licenses shall be
issued to partnerships or corporations which have satisfied the
provisions of this subdivision. The application shall confer
upon the board the consent of the partnership or corporation,
and of the general partner or secretary making the application,
to the board's jurisdiction over the acts of the partnership and
its partners or agents or of the corporation and its
shareholders or agents within the state.
No partnership or corporation shall style itself as a firm
of certified public accountants unless (a) all partners or
shareholders resident in this state are certified public
accountants of this state, (b) all managers in charge of offices
maintained in this state are certified public accountants of
this state, (c) all partners or shareholders, wherever situated,
are certified public accountants of one of the states or
territories or of the District of Columbia and (d) the
partnership or corporation is duly licensed under this section.
No partnership or corporation shall style itself as a firm
of licensed public accountants unless (a) all partners or
shareholders resident in this state are licensed public
accountants or certified public accountants of this state, (b)
all managers in charge of offices maintained in this state are
licensed public accountants or certified public accountants of
this state, (c) all partners or shareholders, wherever situated,
are licensed public accountants of this state or certified
public accountants of one of the states or territories or the
District of Columbia and (d) the partnership or corporation is
duly licensed under this section.
Any cooperative auditing organization organized under
chapter 308 308A (a) which for a minimum of one year prior to
July 1, 1979, has been rendering auditing, accounting of
business analysis services to its members only, and (b) whose
managers in charge of offices maintained in this state are
certified public accountants or licensed public accountants of
this state, shall be deemed to be qualified for a cooperative
auditing service license and may style itself as a licensed
cooperative auditing service.
Sec. 18. [CORRECTION 3.] Minnesota Statutes 1988, section
363.01, subdivision 32, is amended to read:
Subd. 32. [COOPERATIVE APARTMENT CORPORATION.]
"Cooperative apartment corporation" means a corporation or
association organized under sections 308.05 to 308.18 or chapter
308A or 317, the shareholders or members of which are entitled,
solely by reason of their ownership of stock or membership
certificates in the corporation or association, to occupy one or
more residential units in a building owned or leased by the
corporation or association.
Sec. 19. [CORRECTION 3.] Minnesota Statutes 1988, section
469.153, subdivision 7, is amended to read:
Subd. 7. [TELEPHONE COMPANY.] "Telephone company" means
any person, firm, association, including a cooperative
association formed pursuant to chapter 308 308A, or corporation,
excluding municipal telephone companies, operating for hire any
telephone line, exchange, or system, wholly or partly within
this state.
Sec. 20. [CORRECTION 5.] Minnesota Statutes 1988, section
65B.49, subdivision 4a, as amended by 1989 H.F. No. 956, is
amended to read:
Subd. 4a. [LIABILITY ON UNDERINSURED MOTOR VEHICLES.] With
respect to underinsured motor motorist coverage, the maximum
liability of an insurer is the amount of damages sustained but
not recovered from the insurance policy of the driver or owner
of any underinsured at fault vehicle. If a person is injured by
two or more vehicles, underinsured motorist coverage is payable
whenever any one of those vehicles meets the definition of
underinsured motorist motor vehicle in Minnesota Statutes,
section 65B.43, subdivision 17. However, in no event shall the
underinsured motorist carrier have to pay more than the amount
of its underinsured motorist limits.
Sec. 21. [CORRECTION NO. 6.] 1989 H.F. No. 579, article 2,
section 1, is repealed.
Sec. 22. Minnesota Statutes 1988, section 176.132,
subdivision 2, is amended to read:
Subd. 2. [AMOUNT.] (a) The supplementary benefit payable
under this section shall be the difference between the amount
the employee receives on or after January 1, 1976, under section
176.101, subdivision 1 or 4, and 65 percent of the statewide
average weekly wage as computed annually.
(b) In the event an eligible recipient is currently
receiving no compensation or is receiving a reduced level of
compensation because of a credit being applied as the result of
a third party liability or damages, the employer or insurer
shall compute the offset credit as if the individual were
entitled to the actual benefit or 65 percent of the statewide
average weekly wage as computed annually, whichever is greater.
If this results in the use of a higher credit than otherwise
would have been applied and the employer or insurer becomes
liable for compensation benefits which would otherwise not have
been paid, the additional benefits resulting shall be handled
according to this section.
(c) In the event an eligible recipient is receiving no
compensation or is receiving a reduced level of compensation
because of a valid agreement in settlement of a claim, no
supplementary benefit shall be payable under this section.
Attorney's fees shall be allowed in settlements of claims for
supplementary benefits in accordance with this chapter.
(d) In the event an eligible recipient is receiving no
compensation or is receiving a reduced level of compensation
because of prior limitations in the maximum amount payable for
permanent total disability or because of reductions resulting
from the simultaneous receipt of old age or disability benefits,
the supplementary benefit shall be payable for the difference
between the actual amount of compensation currently being paid
and 65 percent of the statewide average weekly wage as computed
annually.
(e) In the event that an eligible recipient is receiving
simultaneous benefits from any government disability program,
the amount of supplementary benefits payable under this section
shall be reduced by five percent. If the individual does not
receive the maximum benefits for which the individual is
eligible under other governmental disability programs due to the
provisions of United States Code, title 42, section 424a(d),
this reduction shall not apply.
(f) Notwithstanding any other provision in this subdivision
to the contrary, if the individual does not receive the maximum
benefits for which the individual is eligible under other
governmental disability programs due to the provision of United
States Code, title 42, section 424a(d), the calculation of
supplementary benefits payable to the individual shall be as
provided under this section in Minnesota Statutes 1988.
Sec. 23. [CORRECTION NO. 7.] Minnesota Statutes 1988,
section 221.031, subdivision 2a, is amended to read:
Subd. 2a. [PRIVATE AGRICULTURAL CARRIERS EXEMPTIONS.] (a)
Notwithstanding the provisions of subdivision 2, private
carriers engaged in intrastate commerce and operating vehicles
transporting agricultural and other farm products within an area
having a 50-mile radius from the business location of the
private carrier must comply only with the commissioner's rules
for safety of operations and equipment, except as provided in
paragraph (b).
(b) A rear-end dump truck or other rear-unloading truck
while being used for hauling agricultural and other farm
products from a place of production or on-farm storage site to a
place of processing or storage, is not subject to any rule of
the commissioner requiring rear-end protection, including a
federal regulation adopted by reference.
Sec. 24. [CORRECTION NO. 7.]
Laws 1989, chapter 118, is repealed.
Sec. 25. [CORRECTION NO. 8.] 1989 H.F. No. 1734, article
3, section 14, if enacted, is amended to read:
Sec. 14. Minnesota Statutes 1988, section 273.13,
subdivision 25, is amended to read:
Subd. 25. [CLASS 4.] (a) Class 4a is residential real
estate containing four or more units and used or held for use by
the owner or by the tenants or lessees of the owner as a
residence for rental periods of 30 days or more. Class 4a also
includes hospitals licensed under sections 144.50 to 144.56,
other than hospitals exempt under section 272.02, and contiguous
property used for hospital purposes, without regard to whether
the property has been platted or subdivided. Class 4a property
has a tax capacity of 3.38 percent of market value.
(b) Class 4b includes:
(1) residential real estate containing less than four
units, other than seasonal residential, recreational, which has
a tax capacity of 2.88 percent of market value;
(2) post-secondary student housing not to exceed one acre
of land which is owned by a nonprofit corporation organized
under chapter 317 and is used exclusively by a sorority or
fraternity organization for housing, which has a tax capacity of
2.88 percent of market value;
(3) manufactured homes not classified under any other
provision, which has a tax capacity of 2.88 percent of market
value;
(4) a dwelling, garage, and surrounding one acre of
property on a nonhomestead farm classified under subdivision 23,
paragraph (b), which has a tax capacity of 2.88 percent of
market value.
(c) Class 4c property includes:
(1) a structure that is situated on real property that is
used for housing for the elderly or for low and moderate income
families as defined by Title II of the National Housing Act or
the Minnesota housing finance agency law of 1971 or rules
promulgated by the agency pursuant thereto and financed by a
direct federal loan or federally insured loan or a loan made by
the Minnesota housing finance agency pursuant to the provisions
of either of those acts and acts amendatory thereof. This
clause applies only to property of a nonprofit or limited
dividend entity. Property is classified as class 4c under this
clause for 15 years from the date of the completion of the
original construction or substantial rehabilitation, or for the
original term of the loan;
(2) a structure that is:
(i) situated upon real property that is used for housing
lower income families or elderly or handicapped persons, as
defined in section 8 of the United States Housing Act of 1937,
as amended; and
(ii) owned by an entity which has entered into a housing
assistance payments contract under section 8 which provides
assistance for 100 percent of the dwelling units in the
structure, other than dwelling units intended for management or
maintenance personnel. Property is classified as class 4c under
this clause for the term of the housing assistance payments
contract, including all renewals, or for the term of its
permanent financing, whichever is shorter; and
(3) a qualified low-income building that (i) receives a
low-income housing credit under section 42 of the Internal
Revenue Code of 1986, as amended through December 31, 1988; or
(ii) meets the requirements of that section. Classification
pursuant to this clause is limited to buildings the construction
or rehabilitation of which began after May 1, 1988, and to a
term of 15 years.
For all properties described in clauses (1), (2), and (3)
and in paragraph (d), the market value determined by the
assessor must be based on the normal approach to value using
normal unrestricted rents. The land on which these structures
are situated has a tax capacity of 2.88 percent of market value
if the structure contains fewer than four units, and 3.38
percent of market value if the structure contains four or more
units.
(4) a parcel of land, not to exceed one acre, and its
improvements or a parcel of unimproved land, not to exceed one
acre, if it is owned by a neighborhood real estate trust and at
least 60 percent of the dwelling units, if any, on all land
owned by the trust are leased to or occupied by lower income
families or individuals. This clause does not apply to any
portion of the land or improvements used for nonresidential
purposes. For purposes of this clause, a lower income family is
a family with an income that does not exceed 65 percent of the
median family income for the area, and a lower income individual
is an individual whose income does not exceed 65 percent of the
median individual income for the area, as determined by the
United States Secretary of Housing and Urban Development. For
purposes of this clause, "neighborhood real estate trust" means
an entity which is certified by the governing body of the
municipality in which it is located to have the following
characteristics: (a) it is a nonprofit corporation organized
under chapter 317; (b) it has as its principal purpose providing
housing for lower income families in a specific geographic
community designated in its articles or bylaws; (c) it limits
membership with voting rights to residents of the designated
community; and (d) it has a board of directors consisting of at
least seven directors, 60 percent of whom are members with
voting rights and, to the extent feasible, 25 percent of whom
are elected by resident members of buildings owned by the trust;
and
(5) except as provided in subdivision 22, paragraph (c),
real property devoted to temporary and seasonal residential
occupancy for recreation purposes, including real property
devoted to temporary and seasonal residential occupancy for
recreation purposes and not devoted to commercial purposes for
more than 225 days in the year preceding the year of
assessment. For this purpose, property is devoted to commercial
use on a specific day if it is used, or offered for use, and a
fee is charged for the use. Class 4c also includes commercial
use real property used exclusively for recreational purposes in
conjunction with class 4c property devoted to temporary and
seasonal residential occupancy for recreational purposes, up to
a total of two acres, provided the property is not devoted to
commercial recreational use for more than 225 days in the year
preceding the year of assessment and is located within two miles
of the class 4c property with which it is used. Class 4c
property classified in clauses (5) and (6) also includes the
remainder of class 1c resorts and has a tax capacity of 2.4
percent of market value, except that noncommercial seasonal
recreational property has a tax capacity of 2.22 percent of
market value; and
(6) real property up to a maximum of one acre of land owned
by a nonprofit community service oriented organization; provided
that the property is not used for a revenue-producing activity
for more than six days in the calendar year preceding the year
of assessment and the property is not used for residential
purposes on either a temporary or permanent basis. For purposes
of this clause, a "nonprofit community service oriented
organization" means any corporation, society, association,
foundation, or institution organized and operated exclusively
for charitable, religious, fraternal, civic, or educational
purposes, and which is exempt from federal income taxation
pursuant to section 501(c)(3), (10), or (19) of the Internal
Revenue Code of 1986, as amended through December 31, 1988. For
purposes of this clause, "revenue-producing activities" shall
include but not be limited to property or that portion of the
property that is used as an on-sale intoxicating liquor or
nonintoxicating malt liquor establishment licensed under chapter
340A, a restaurant open to the public, bowling alley, a retail
store, gambling conducted by organizations licensed under
chapter 349, an insurance business, or office or other space
leased or rented to a lessee who conducts a for-profit
enterprise on the premises. Any portion of the property which
is used for revenue-producing activities for more than six days
in the calendar year preceding the year of assessment shall be
assessed as class 3a. The use of the property for social events
open exclusively to members and their guests for periods of less
than 24 hours, when an admission is not charged nor any revenues
are received by the organization shall not be considered a
revenue-producing activity; and
Class 4c property classified under clauses (1), (2), (3),
(4), and (6) has a tax capacity of 2.5 percent of market value.
(d) Class 4d property includes any structure:
(i) situated on real property that is used for housing for
the elderly or for low and moderate income families as defined
by the farmers home administration;
(ii) located in a municipality of less than 10,000
population; and
(iii) financed by a direct loan or insured loan from the
farmers home administration. Property is classified under this
clause for 15 years from the date of the completion of the
original construction or for the original term of the loan.
The 1.5 percent and 2.5 percent tax capacity assignments
apply to the properties described in paragraph (c), clauses (1),
(2), and (3) and this clause, only in proportion to occupancy of
the structure by elderly or handicapped persons or low and
moderate income families as defined in the applicable laws
unless construction of the structure had been commenced prior to
January 1, 1984; or the project had been approved by the
governing body of the municipality in which it is located prior
to June 30, 1983; or financing of the project had been approved
by a federal or state agency prior to June 30, 1983.
Classification under this clause is only available to property
of a nonprofit or limited dividend entity.
Class 4d property has a tax capacity of 1.5 percent of
market value.
(e) Residential rental property that would otherwise be
assessed as class 4 property under paragraph (a); paragraph (b),
clauses (1) and (2); paragraph (c), clauses (1), (2), (3), or
(4); or paragraph (d), is assessed at the tax capacity
percentage applicable to it under Minnesota Statutes 1988,
section 273.13, if it is found to be a substandard building
under section 273.1316.
Sec. 26. [CORRECTION NO. 8; EFFECTIVE DATE.]
Section 25 is effective for the 1989 assessment and
thereafter.
Sec. 27. [CORRECTION NO. 9.] Minnesota Statutes 1988,
section 116J.64, subdivision 7, is amended to read:
Subd. 7. An Indian desiring a loan for the purpose of
starting a business enterprise, expanding an existing business,
or for technical and management assistance, shall make
application to the Indian affairs council. The Indian affairs
council shall prescribe the necessary forms and advise the
prospective borrower as to the conditions under which the
application may be expected to receive favorable consideration.
The application shall be forwarded to the appropriate tribal
council, if it is participating in the program, for approval or
disapproval, and shall be in conformity with the plans submitted
by said tribal councils. If the tribal council is not
participating in the program, the Indian affairs council may
directly administer the loan. If the application is approved,
the Indian affairs council shall forward the application,
together with all relevant documents pertinent thereto, to the
commissioner of finance, who shall draw a warrant in favor of
the applicable tribal council or the Indian affairs council, if
it is administering the loan, with appropriate notations
identifying the borrower. The tribal council or the Indian
affairs council, if it is administering the loan, shall
thereafter reimburse suppliers and vendors for purchases of
equipment, real estate and inventory made by the borrower
pursuant to the conditions or guidelines established by the
Indian affairs council. The tribal council or the Indian
affairs council, if it is administering the loan, shall maintain
records of transactions for each borrower in a manner consistent
with good accounting practice. Simple interest at two percent
of the amount of the debt owed shall be charged. When any
portion of a debt is repaid, the tribal council or the Indian
affairs council, if it is administering the loan, shall remit
the amount so received plus interest paid thereon to the state
treasurer through the Indian affairs council. The amount so
received shall be credited to the Indian business loan account.
The tribal council or the Indian affairs council, if it is
administering the loan, shall secure a fidelity bond from a
surety company, in favor of the state treasurer, in an amount
equal to the maximum amount to the credit of its loan account
during the fiscal year. On the placing of a loan, additional
money equal to ten percent of the total amount made available to
any tribal council or the Indian affairs council, if it is
administering the loan, for loans during the fiscal year shall
be paid to the council prior to December 31 for the purpose of
financing administrative costs.
Sec. 28. [CORRECTION NO. 10.] 1989 H.F. No. 1734, article
1, section 7, if enacted, is amended to read:
Sec. 7. Minnesota Statutes 1988, section 290.06, is
amended by adding a subdivision to read:
Subd. 1a. [SURTAX; CORPORATIONS.] (a) In addition to the
tax computed under subdivision 1 and section 290.0921, a surtax
is imposed upon corporations equal to a percentage of the sum of
the corporation's tax under subdivision 1 and section 290.0921.
(b) By May 31, 1990, the commissioner of revenue shall
determine the rate of the surtax to be imposed under paragraph
(a). The commissioner of revenue shall prepare a forecast of
the revenue predicted to be raised for taxable years beginning
in calendar years 1990 through 1992 by the franchise tax on
corporations under this chapter, including the tax under section
290.092, computed as if the tax were imposed under section
290.092, subdivisions 1 to 4a, and the rate under subdivision 1
were 9.5 percent. The commissioner shall set the rate of the
surtax so that the amount forecast to be raised by the surtax
(when added to the tax imposed under subdivision 1 and section
290.0921) equals the amount of revenue forecast to be raised if
the tax under section 290.092, subdivisions 1 to 4a, were in
effect and section 290.0921 did not apply.
(c) The rate determined under paragraph (b) applies to
taxable years beginning after December 31, 1990 1989.
(d) If the rate determined under paragraph (b) is held
invalid, the surtax rate in effect for taxable years beginning
after December 31, 1990 1989 is 7.5 percent.
Sec. 29. [CORRECTION NO. 10.] [EFFECTIVE DATE.]
Section 28 is effective the day following final enactment.
Sec. 30. [CORRECTION NO. 11.] 1989 H.F. No. 1734, article
1, section 17, if enacted, is amended to read:
Sec. 17. Minnesota Statutes 1988, section 290.191,
subdivision 6, is amended to read:
Subd. 6. [DETERMINATION OF RECEIPTS FACTOR FOR FINANCIAL
INSTITUTIONS.] (a) For purposes of this section, the rules in
this subdivision and subdivisions 7 and 8 apply in determining
the receipts factor for financial institutions.
(b) "Receipts" for this purpose means gross income,
including net taxable gain on disposition of assets, including
securities and money market instruments, when derived from
transactions and activities in the regular course of the
taxpayer's trade or business.
(c) "Money market instruments" means federal funds sold and
securities purchased under agreements to resell, commercial
paper, banker's acceptances, and purchased certificates of
deposit and similar instruments to the extent that the
instruments are reflected as assets under generally accepted
accounting principles.
(d) "Securities" means United States Treasury securities,
obligations of United States government agencies and
corporations, obligations of state and political subdivisions,
corporate stock and other securities, participations in
securities backed by mortgages held by United States or state
government agencies, loan-backed securities and similar
investments to the extent the investments are reflected as
assets under generally accepted accounting principles.
(e) Receipts from the lease or rental of real or tangible
personal property, including both finance leases and true
leases, must be attributed to this state if the property is
located in this state. Tangible personal property that is
characteristically moving property, such as motor vehicles,
rolling stock, aircraft, vessels, mobile equipment, and the
like, is considered to be located in a state if:
(1) the operation of the property is entirely within the
state; or
(2) the operation of the property is in two or more states,
but the principal base of operations from which the property is
sent out is in the state.
(f) Interest income and other receipts from assets in the
nature of loans that are secured primarily by real estate or
tangible personal property must be attributed to this state if
the security property is located in this state under the
principles stated in paragraph (e).
(g) Interest income and other receipts from consumer loans
not secured by real or tangible personal property that are made
to residents of this state, whether at a place of business, by
traveling loan officer, by mail, by telephone or other
electronic means, must be attributed to this state.
(h) Interest income and other receipts from commercial
loans and installment obligations that are unsecured by real or
tangible personal property or secured by intangible property
must be attributed to this state if the proceeds of the loan are
to be applied in this state. If it cannot be determined where
the funds are to be applied, the income and receipts are
attributed to the state in which the office of the borrower from
which the application would be made in the regular course of
business is located. If this cannot be determined, the
transaction is disregarded in the apportionment formula.
(i) Interest income and other receipts from a participating
financial institution's portion of participation and syndication
loans must be attributed under paragraphs (e) to (h). A
participation loan is an arrangement in which a lender makes a
loan to a borrower and then sells, assigns, or otherwise
transfers all or a part of the loan to a purchasing financial
institution. A syndication loan is a multibank loan transaction
in which all the lenders are named as parties to the loan
documentation, are known to the borrower, and have privity of
contract with the borrower.
(j) Interest income and other receipts including service
charges from financial institution credit card and travel and
entertainment credit card receivables and credit card holders'
fees must be attributed to the state to which the card charges
and fees are regularly billed.
(k) Merchant discount income derived from financial
institution credit card holder transactions with a merchant must
be attributed to the state in which the merchant is located. In
the case of merchants located within and outside the state, only
receipts from merchant discounts attributable to sales made from
locations within the state are attributed to this state. It is
presumed, subject to rebuttal, that the location of a merchant
is the address shown on the invoice submitted by the merchant to
the taxpayer.
(l) Receipts from the performance of fiduciary and other
services must be attributed to the state in which the benefits
of the services are consumed. If the benefits are consumed in
more than one state, the receipts from those benefits must be
apportioned to this state pro rata according to the portion of
the benefits consumed in this state. If the extent to which the
benefits of services are consumed in this state is not readily
determinable, the benefits of the services shall be deemed to be
consumed at the location of the office of the customer from
which the services were ordered in the regular course of the
customer's trade or business. If the ordering office cannot be
determined, the benefits of the services shall be deemed to be
consumed at the office of the customer to which the services are
billed.
(m) Receipts from the issuance of travelers checks and
money orders must be attributed to the state in which the checks
and money orders are purchased.
(n) Receipts from investments of a financial institution in
securities of this state, its political subdivisions, agencies,
and instrumentalities must be attributed to this state.
(o) Receipts from a financial institution's interest in any
property described in section 290.015, subdivision 3, paragraph
(b), is not included in the numerator or the denominator of the
receipts factor provided the financial institution's activities
within this state with respect to any interest in the property
are limited in the manner provided in section 290.015,
subdivision 3, paragraph (b). If a financial institution is
subject to tax under this chapter, its interest in property
described in section 290.015, subdivision 3, paragraph (b), is
included in the receipts factor in the same manner as assets in
the nature of securities or money market instruments are
included under paragraph (n) and subdivision 7.
Sec. 31. [CORRECTION NO. 11; EFFECTIVE DATE.]
Section 30 is effective for taxable years beginning after
December 31, 1986.
Sec. 32. [CORRECTION NO. 12.] 1989 H.F. No. 1734, article
3, section 17, if enacted, is amended to read:
Sec. 17. Minnesota Statutes 1988, section 273.135,
subdivision 2, is amended to read:
Subd. 2. For taxes payable in 1990 and subsequent years,
the amount of the reduction authorized by subdivision 1 shall be:
(a) In the case of property located within the boundaries
of a municipality which meets the qualifications prescribed in
section 273.134, 66 percent of the tax , provided that the
reduction shall not exceed the maximum amounts specified in
clause (c), and shall not exceed an amount sufficient to reduce
the effective tax rate on each parcel of property to the product
of 95 percent of the base year effective tax rate multiplied by
the ratio of the current year's tax rate to the payable 1989 tax
rate. In no case will the reduction resulting from this credit
be less than $10.
(b) In the case of property located within the boundaries
of a school district which qualifies as a tax relief area but
which is outside the boundaries of a municipality which meets
the qualifications prescribed in section 273.134, 57 percent of
the tax , provided that the reduction shall not exceed the
maximum amounts specified in clause (c), and shall not exceed an
amount sufficient to reduce the effective tax rate on each
parcel of property to the product of 95 percent of the base year
effective tax rate multiplied by the ratio of the current year's
tax rate to the payable 1989 tax rate. In no case will the
reduction resulting from this credit be less than $10.
(c) The maximum reduction of the tax is $225.40 on property
described in clause (a) and $200.10 on property described in
clause (b), for taxes payable in 1985. These maximum amounts
shall increase by $15 times the quantity one minus the homestead
credit equivalency percentage per year for taxes payable in 1986
and subsequent years.
For the purposes of this subdivision, "homestead credit
equivalency percentage" means one minus the ratio of the net tax
capacity rate percentage to the gross tax capacity rate
percentage applicable to the first $68,000 of the market value
of residential homesteads, "effective tax rate" means tax
divided by the market value of a property, and the "base year
effective tax rate" means the payable 1988 tax on a property
with an identical market value to that of the property receiving
the credit in the current year after the application of the
credits payable under section 273.13, subdivisions 22 and 23,
and this section, divided by the market value of the property.
Sec. 33. [CORRECTION NO. 12.] 1989 H.F. No. 1734, article
3, section 18, if enacted, is amended to read:
Sec. 18. Minnesota Statutes 1988, section 273.1391,
subdivision 2, is amended to read:
Subd. 2. For taxes payable in 1989 only 1990 and
subsequent years, the amount of the reduction authorized by
subdivision 1 shall be:
(a) In the case of property located within a school
district which does not meet the qualifications of section
273.134 as a tax relief area, but which is located in a county
with a population of less than 100,000 in which taconite is
mined or quarried and wherein a school district is located which
does meet the qualifications of a tax relief area, and provided
that at least 90 percent of the area of the school district
which does not meet the qualifications of section 273.134 lies
within such county, 57 percent of the tax on qualified property
located in the school district that does not meet the
qualifications of section 273.134, provided that the amount of
said reduction shall not exceed the maximum amounts specified in
clause (c), and shall not exceed an amount sufficient to reduce
the effective tax rate on each parcel of property to the product
of 95 percent of the base year effective tax rate multiplied by
the ratio of the current year's tax rate to the payable 1989 tax
rate. In no case will the reduction resulting from this credit
be less than $10. The reduction provided by this clause shall
only be applicable to property located within the boundaries of
the county described therein.
(b) In the case of property located within a school
district which does not meet the qualifications of section
273.134 as a tax relief area, but which is located in a school
district in a county containing a city of the first class and a
qualifying municipality, but not in a school district containing
a city of the first class or adjacent to a school district
containing a city of the first class unless the school district
so adjacent contains a qualifying municipality, 57 percent of
the tax , but not to exceed the maximums specified in clause
(c), and shall not exceed an amount sufficient to reduce the
effective tax rate on each parcel of property to the product of
95 percent of the base year effective tax rate multiplied by the
ratio of the current year's tax rate to the payable 1989 tax
rate. In no case will the reduction resulting from this credit
be less than $10.
(c) The maximum reduction of the tax up to the taconite
breakpoint is $200.10 for taxes payable in 1985. This maximum
amount shall increase by $15 multiplied by the quantity one
minus the homestead credit equivalency percentage per year for
taxes payable in 1986 and subsequent years.
For the purposes of this subdivision, "homestead credit
equivalency percentage" means one minus the ratio of the net tax
capacity rate percentage to the gross tax capacity rate
percentage applicable to the first $68,000 of the market value
of residential homesteads, and "effective tax rate" means tax
divided by the market value of a property, and the "base year
effective tax rate" means the payable 1988 tax on a property
with an identical market value to that of the property receiving
the credit in the current year after application of the credits
payable under section 273.13, subdivisions 22 and 23, and this
section, divided by the market value of the property.
Sec. 34. [CORRECTION NO. 13.] 1989 H.F. No. 1734, article
6, section 11, if enacted, is amended to read:
Sec. 11. [EFFECTIVE DATE.]
Sections 1 and 2 are effective for taxes levied in 1989 and
thereafter, payable in 1990, and thereafter. Sections 3 to 9
are effective for local government aid paid in 1990. Section 10
is effective January 1, 1991.
Sec. 35. [CORRECTION NO. 15.] 1989 H.F. No. 1734, article
3, section 21, if enacted, is amended to read:
Sec. 21. Minnesota Statutes 1988, section 273.1398, is
amended by adding a subdivision to read:
Subd. 2a. [EDUCATION LEVY REDUCTION.] (a) As used in this
subdivision, "equalized levies" means the sum of the maximum
amounts that may be levied for:
(1) general education under section 124A.23, subdivision 2;
(2) supplemental revenue under section 124A.23, subdivision
2a;
(3) capital expenditure facilities revenue under section
124.243, subdivision 3;
(4) capital expenditure equipment revenue under section
124.44, subdivision 2; and
(5) basic transportation under section 275.125, subdivision
5;
as reduced for general education levy equity under section
124A.24.
(b) By June 15, 1990, the commissioner of education shall
determine and certify to the commissioner of revenue the amount
of the homestead and agricultural credit aid offset education
levy reduction. The offset reduction shall be equal to the
amount by which:
(1) the amount that would have been computed as the
district's equalized levies for property taxes payable in 1991,
if the levies had been based upon the district's gross tax
capacity, exceeds
(2) the district's equalized levies for property taxes
payable in 1991.
(c) Effective for property taxes payable in 1991 and
subsequent years, the amount of the education levy reduction
shall be deducted from the homestead and agricultural credit aid
payable to each school district under subdivision 2.
Sec. 36. [CORRECTION NO. 16.] 1989 H.F. No. 66, article 3,
section 16, subdivision 3, if enacted, is amended to read:
Subd. 3. [FALSE STATEMENTS.] A person is guilty of a
felony and may be sentenced under subdivision 4 if the person:
(1) makes a materially false or misleading statement, or a
material omission, in a record required to be submitted under
chapter 349A; or
(2) makes a materially false or misleading statement, or a
material omission, in information submitted to the commissioner
director of the state lottery in a lottery retailer's
application or a document related to a bid.
Sec. 37. [CORRECTION NO. 17.] Minnesota Statutes 1988,
section 290A.04, is amended by adding a subdivision to read:
Subd. 5. [COMBINED RENTER AND HOMEOWNER REFUND.] In the
case of a claimant who is entitled to a refund in a calendar
year for claims based both on rent constituting property taxes
and property taxes payable, the refund allowable equals the sum
of the refunds allowable, except that the sum may not exceed the
higher of the maximum refund payable either based on rent
constituting property taxes or property taxes payable.
Sec. 38. [CORRECTION NO. 17; EFFECTIVE DATE.]
Section 37 is effective for claims based on property taxes
paid in 1990 and rent paid in 1989.
Sec. 39. [CORRECTION NO. 18.] 1989 H.F. No. 1734, article
3, section 6, if enacted, is amended to read:
Sec. 6. Minnesota Statutes 1988, section 272.025,
subdivision 1, is amended to read:
Subdivision 1. Except as provided in subdivision 3, a
taxpayer claiming an exemption from taxation on property
described in section 272.02, subdivision 1, clauses (1) to
(7) and (9), except churches and houses of worship and property
solely used for educational purposes by academies, colleges,
universities or seminaries of learning and property owned by the
state of Minnesota or any political subdivision thereof, shall
file a statement of exemption with the assessor of the
assessment district in which the property is located, or, in the
case of a taxpayer claiming an exemption from taxation on
property described in section 272.02, subdivision 1, clause (9),
shall file a statement of exemption with the commissioner of
revenue, on or before February 15 of each year for which the
taxpayer claims an exemption. In case of sickness, absence or
other disability or for good cause, the assessor may extend the
time for filing the statement of exemption for a period not to
exceed 60 days. The commissioner of revenue shall prescribe the
form and contents of the statement of exemption.
Sec. 40. [CORRECTION NO. 18.] 1989 H.F. No. 1734, article
3, section 35, if enacted, is amended to read:
Sec. 35. [EFFECTIVE DATE.]
Sections 1, 3, 6, 9, and 21, are effective for taxes
payable in 1991 and subsequent years.
Section 2 is effective the day following final enactment
and is intended to confirm and clarify the original intent of
the legislature in the taxation and equalization of
state-assessed public utility property.
Sections 4, 6, 7, 11 to 15, 19, 20, 22 to 24, and 26, are
effective for taxes payable in 1990 and subsequent years.
Section 5 is effective January 1, 1989.
Sections 6 and 16 are effective for the 1989 assessment and
thereafter.
Section 8 is effective for assessments of market value in
1989 and thereafter. If an assessor has increased the market
value for the 1989 assessment by an amount in excess of the
amount allowed under section 8, the assessor shall reduce the
market value to that allowed under section 8. If the assessor
has mailed a notice of the increase in market value to the
property owner, the assessor must mail a revised notice to the
property owner. Notices must state that the increases in market
value have been limited under this act.
Section 10 is effective for taxes levied in 1989, payable
in 1990, and thereafter, provided that cooperatives that
qualified under Minnesota Statutes, section 273.124, subdivision
6, on January 2, 1989, shall meet the board membership
requirements of paragraph (a) by September 1, 1989, and shall
meet the requirements of section 501(c)(3) or 501(c)(4) status
under the Internal Revenue Code in the first paragraph and in
paragraph (e) by January 1, 1990, and that the notice and filing
requirements of paragraphs (f) and (g) shall apply only to
leasehold cooperatives created later than 60 days after the date
of enactment of this act.
Section 25 is effective for taconite produced in 1989,
proceeds distributed in 1990, and thereafter.
Sections 27, 31, and 34, are effective the day following
final enactment.
Sec. 41. [CORRECTION NO. 19.] Minnesota Statutes 1988,
section 65B.49, subdivision 5a, as amended by 1989 H.F. 1283,
section 15, if enacted, is amended to read:
Sec. 15. Minnesota Statutes 1988, section 65B.49,
subdivision 5a, is amended to read:
Subd. 5a. [RENTAL VEHICLES.] (a) Every plan of reparation
security insuring a natural person as named insured, covering
private passenger vehicles as defined under section 65B.001,
subdivision 3, and pickup trucks and vans as defined under
section 168.011 must provide that all of the obligation for
damage and loss of use to a rented private passenger vehicle,
including pickup trucks and vans as defined under section
168.011, and rented trucks with a registered gross vehicle
weight of 26,000 pounds or less would be covered by the property
damage liability portion of the plan. The obligation of the
plan must not be contingent on fault or negligence. In all
cases where the plan's property damage liability coverage is
less than $25,000, the coverage available under the subdivision
must be $25,000. Other than as described in this paragraph,
nothing in this section amends or alters the provisions of the
plan of reparation security as to primacy of the coverages in
this section.
(b) A vehicle is rented for purposes of this subdivision if
the rate for the use of the vehicle is determined on a weekly or
daily basis. A vehicle is not rented for purposes of this
subdivision if the rate for the vehicle's use is determined on a
monthly or longer period.
(c) The policy or certificate issued by the plan must
inform the insured of the application of the plan to private
passenger rental vehicles, including pickup trucks and vans as
defined under section 168.011, and that the insured may not need
to purchase additional coverage from the rental company.
(d) Where an insured has two or more vehicles covered by a
plan or plans of reparation security containing the rented motor
vehicle coverage required under paragraph (a), the insured may
select the plan the insured wishes to collect from and that plan
is entitled to a pro rata contribution from the other plan or
plans based upon the property damage limits of liability. If
the person renting the motor vehicle is also covered by the
person's employer's insurance policy or the employer's
automobile self-insurance plan, the reparation obligor under the
employer's policy or self-insurance plan has primary
responsibility to pay claims arising from use of the rented
vehicle.
(e) A notice advising the insured of rental vehicle
coverage must be given by the reparation obligor to each current
insured with the first renewal notice after January 1, 1989.
The notice must be approved by the commissioner of commerce.
The commissioner may specify the form of the notice.
(f) When a motor vehicle is rented or leased in this state
on a weekly or daily basis, there must be attached to the rental
contract a separate form containing a written notice in at least
10-point bold type, if printed, or in capital letters, if
typewritten, which states:
Under Minnesota law, a personal automobile insurance policy
issued in Minnesota must cover the rental of this motor
vehicle against damage to the vehicle and against loss of
use of the vehicle. Therefore, purchase of any collision
damage waiver or similar insurance affected in this rental
contract is not necessary if your policy was issued in
Minnesota.
No collision damage waiver or other insurance offered as part of
or in conjunction with a rental of a motor vehicle may be sold
unless the person renting the vehicle provides a written
acknowledgment that the above consumer protection notice has
been read and understood.
(g) When damage to a rented vehicle is covered by a plan of
reparation security as provided under paragraph (a), the rental
contract must state that payment by the reparation obligor
within the time limits of section 72A.201 is acceptable, and
prior payment by the renter is not required.
(h) To be compensated for the loss of use of a damaged
rented motor vehicle, the car rental company must prove:
(1) that had the vehicle been available, it would have been
rented; and
(2) that no other vehicle was available for rental in place
of the damaged vehicle.
The standard of proof set forth in this paragraph does not
limit the responsibility of a reparation obligor to provide an
insured with coverage for any loss of use for which the
reparation obligor is otherwise responsible. A car rental
company may be compensated for loss of use of a damaged rental
motor vehicle only for the period when the damaged car actually
would have been rented.
Sec. 42. [CORRECTION NO. 20.] 1989 H.F. No. 1734, article
4, section 14, if enacted, is amended to read:
Sec. 14. Minnesota Statutes 1988, section 275.51,
subdivision 3i, is amended to read:
Subd. 3i. [LEVY LIMITATION.] The levy limitation for a
governmental subdivision shall be equal to the adjusted levy
limit base determined pursuant to subdivision 3h, reduced by:
(1) the local government aid that the governmental
subdivision has been certified to receive pursuant to sections
477A.011 to 477A.014, excluding the additional aid distribution
received under section 477A.013, subdivision 5 477A.0131; and
(2) taconite aids under sections 298.28 and 298.282
including any aid received in the levy year that was required to
be placed in a special fund for expenditure in the next
succeeding year.
As provided in section 298.28, one cent per taxable ton of
the amount distributed under section 298.28, subdivision 5,
paragraph (d), must not be deducted from the levy limit base of
a county that receives the aid.
This amount is the amount of property taxes which a
governmental subdivision may levy for all purposes other than
those for which special levies and special assessments are made.
For taxes levied in 1989 and later years, the levy limit
for a county calculated under clause (1) must be decreased by an
additional amount equal to the difference between what would
have been a county's production year 1986 payable 1987
distribution under Minnesota Statutes 1984, section 298.28,
based on 1986 production and its actual distribution for
production year 1986, payable 1987.
Sec. 43. [CORRECTION NO. 21.] Minnesota Statutes 1988,
section 275.50, subdivision 2, is amended to read:
Subd. 2. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental
subdivision" means a county, a home rule charter city, or a
statutory city, except a home rule charter or statutory city
that has a population of less than 2,500, and a town with a
population of over 5,000 according to the most recent federal
census.
(b) "Governmental subdivision" also includes any home rule
charter or statutory city or town that receives a distribution
from the taconite municipal aid account in the levy year.
Sec. 44. [CORRECTION NO. 22.] 1989 H.F. No. 1734, article
4, section 12, if enacted, is amended to read:
Sec. 12. Minnesota Statutes 1988, section 275.51,
subdivision 3f, is amended to read:
Subd. 3f. [LEVY LIMIT BASE.] (a) The property tax levy
limit base for governmental subdivisions for taxes levied in
1988 shall be equal to the total actual levy for taxes payable
in 1988 with additions and subtractions as specified in
paragraphs (b) and (c).
(b) The amounts to be added to the actual 1988 levy are (1)
the amount of local government aid the governmental subdivision
was certified to receive in 1988 under sections 477A.011 to
477A.014, (2) its 1988 taconite aids under sections 298.28 and
298.282, and (3) its 1988 wetlands and native prairie
reimbursements under Minnesota Statutes 1986, sections 273.115,
subdivision 3, and 273.116, subdivision 3.
(c) The amounts to be subtracted from the actual 1988 levy
are (1) any special levies claimed for taxes payable in 1988
pursuant to Laws 1987, chapter 268, article 5, section 12,
subdivision 4, clauses (1), (2), (3), and (4); and (2) for a
governmental subdivision participating in a regional library
system receiving grants from the department of education under
section 134.34, the amount levied for taxes payable in 1988 for
the operating costs of a public library service.
(d) For taxes levied in 1989 and subsequent years, a
governmental subdivision's levy limit base is equal to its
adjusted levy limit base for the preceding year, provided that
for taxes levied in 1989, the amount of the administrative
reimbursement aid received in 1988 shall be added to the base.
(e) For taxes levied by a county in 1989, the levy limit
base determined under paragraph (d) shall be reduced by an
amount equal to the cost of public defender services for
felonies and gross misdemeanors and the costs of law clerks in
the county that are assumed by the state during calendar year
1990, less one-half the amount of fees collected by the courts
in the county during calendar year 1988. For taxes levied in
1990 and subsequent years, the levy limit base determined under
paragraph (d) shall be reduced by an amount equal to the cost of
public defender services for felonies and gross misdemeanors and
the cost of law clerks in the county that are assumed by the
state during calendar year 1991, less the amount of fees
collected by the courts in the county during calendar year 1989,
computed at the rate of $30 for civil and probate filings and
$55 for marriage dissolutions.
(f) For taxes levied by a county that is located in the
eighth judicial district in 1989 only, the levy limit base
determined under paragraphs (d) and (e) shall be further reduced
by an amount equal to the cost of operation of the trial courts
in the county during calendar year 1990 that are assumed by the
state less one-half of the amount of fees collected by the
courts in the county during calendar year 1988. For taxes
levied in 1990 only by those counties, the levy limit base
determined under paragraphs (d) and (e) shall be reduced by an
amount equal to the cost of operation of the trial courts in the
county during the first six months of calendar year 1991 that
are assumed by the state, less the amount of fees collected by
the courts in the county during the first six months of calendar
year 1989.
(g) By July 1, 1989, the board of public defense shall
determine and certify to the supreme court the pro rata share
for each county of the state-financed public defense services
described in paragraph (e) during the six-month period beginning
July 1, 1990. By July 15, 1989, the supreme court shall
determine and certify to the department of revenue for each
county the sum of the amounts certified by the board of public
defense and the pro rata share for each county of the cost of
providing law clerks during the three-month period beginning
October 1, 1990, plus, for each county located in the eighth
judicial district, the cost of operation of the trial courts
during calendar year 1990.
By July 1, 1990, the board of public defense shall
determine and certify to the supreme court the pro rata share
for each county of the state-financed public defense services
described in paragraph (e) during calendar year 1991. By July
15, 1990, the supreme court shall determine and certify to the
department of revenue for each county the sum of the amounts
certified by the board of public defense and the pro rata share
for each county of the cost of providing law clerks during
calendar year 1991 plus, for each county located in the eighth
judicial district, the cost of operation of the trial courts
during the first six months of 1991.
Sec. 45. [CORRECTION NO. 24.] 1989 H.F. 1734, article 1,
section 14, if enacted, is amended to read:
Sec. 14. [290.0921] [CORPORATE ALTERNATIVE MINIMUM TAX
AFTER 1989.]
Subdivision 1. [TAX IMPOSED.] (a) In addition to the taxes
computed under this chapter without regard to this section, the
franchise tax imposed on corporations includes a tax equal to
the excess, if any, for the taxable year of:
(1) seven percent of Minnesota alternative minimum taxable
income, less the credit allowed under section 290.35,
subdivision 3; over
(2) the tax imposed under section 290.06, subdivision 1,
without regard to this section.
(b) If the sum of the corporation's Minnesota sales and
receipts, property, and payrolls, as defined in section 290.092,
subdivision 4, exceeds $5,000,000, the amount under paragraph
(a), clause (1) is the greater of
(1) $500 or
(2) the amount otherwise determined.
Sec. 46. [EFFECTIVE DATE; CORRECTION NO. 24.]
Section 45 is effective the day following final enactment.
Sec. 47. [CORRECTION NO. 25.] 1989 H.F. No. 1734, article
4, section 12, if enacted, is amended to read:
Sec. 12. Minnesota Statutes 1988, section 275.51,
subdivision 3f, is amended to read:
Subd. 3f. [LEVY LIMIT BASE.] (a) The property tax levy
limit base for governmental subdivisions for taxes levied in
1988 shall be equal to the total actual levy for taxes payable
in 1988 with additions and subtractions as specified in
paragraphs (b) and (c).
(b) The amounts to be added to the actual 1988 levy are (1)
the amount of local government aid the governmental subdivision
was certified to receive in 1988 under sections 477A.011 to
477A.014, (2) its 1988 taconite aids under sections 298.28 and
298.282, and (3) its 1988 wetlands and native prairie
reimbursements under Minnesota Statutes 1986, sections 273.115,
subdivision 3, and 273.116, subdivision 3.
(c) The amounts to be subtracted from the actual 1988 levy
are (1) any special levies claimed for taxes payable in 1988
pursuant to Laws 1987, chapter 268, article 5, section 12,
subdivision 4, clauses (1), (2), (3), and (4); and (2) for a
governmental subdivision participating in a regional library
system receiving grants from the department of education under
section 134.34, the amount levied for taxes payable in 1988 for
the operating costs of a public library service.
(d) For taxes levied in 1989 and subsequent years, a
governmental subdivision's levy limit base is equal to its
adjusted levy limit base for the preceding year, provided that
for taxes levied in 1989, the amount of the administrative
reimbursement aid received in 1988 shall be added to the base.
(e) For taxes levied by a county in 1989, the levy limit
base determined under paragraph (d) shall be reduced by an
amount equal to the cost of public defender services for
felonies and gross misdemeanors and the costs of law clerks in
the county that are assumed by the state during calendar year
1990, less one-half the amount of fees collected by the courts
in the county during calendar year 1988. For taxes levied in
1990 and subsequent years, the levy limit base determined under
paragraph (d) shall be reduced by an amount equal to the cost of
public defender services for felonies and gross misdemeanors and
the cost of law clerks in the county that are assumed by the
state during calendar year 1991, less the amount of fees
collected by the courts in the county during calendar year 1989,
computed at the rate of $30 for civil and probate filings and
$55 for marriage dissolutions.
(f) For taxes levied by a county that is located in the
eighth judicial district in 1989 only, the levy limit base
determined under paragraphs (d) and (e) shall be further reduced
by an amount equal to the cost of operation of the trial courts
in the county during calendar year 1990 that are assumed by the
state less the amount of fees collected by the courts in the
county during calendar year 1988. For taxes levied in 1990 only
by those counties, the levy limit base determined under
paragraphs (d) and (e) shall be reduced by an amount equal to
the cost of operation of the trial courts in the county during
the first six months of calendar year 1991 that are assumed by
the state, less the amount of fees collected by the courts in
the county during the first six months of calendar year 1989.
(g) By July 1, 1989, the board of public defense shall
determine and certify to the supreme court the pro rata share
for each county of the state-financed public defense services
described in paragraph (e) during the six-month period beginning
July 1, 1990. By July 15, 1989, the supreme court shall
determine and certify to the department of revenue for each
county the sum of the amounts certified by the board of public
defense and the pro rata share for each county of the cost of
providing law clerks during the three-month period beginning
October 1, 1990, plus, for each county located in the eighth
judicial district, the cost of operation of the trial courts
during calendar year 1990.
By July 1, 1990, the board of public defense shall
determine and certify to the supreme court the pro rata share
for each county of the state-financed public defense services
described in paragraph (e) during calendar year 1991. By July
15, 1990, the supreme court shall determine and certify to the
department of revenue for each county the sum of the amounts
certified by the board of public defense and the pro rata share
for each county of the cost of providing law clerks during
calendar year 1991 plus, for each county located in the eighth
judicial district, the cost of operation of the trial courts
during the first six months of 1991.
(h) If a governmental subdivision received an adjustment to
its levy limit base for taxes levied in 1988 under section
275.51, subdivision 3j, its levy limit base for taxes levied in
1989 must be reduced by the lesser of (1) the adjustment under
section 275.51, subdivision 3j, or (2) the difference between
its (i) levy limit base for taxes levied in 1988 and its (ii)
total actual levy for taxes levied in 1988 minus any special
levies claimed for taxes levied in 1988 under section 275.50,
subdivision 5.
Sec. 48. 1989 H.F. No. 654, article 6, section 5,
subdivision 3, if enacted, is amended to read:
Subd. 3. [COMBINATION REQUIREMENTS.] Combining districts
must be contiguous and meet one of the following requirements at
the time of combination:
(1) at least two districts with at least 400 resident
pupils enrolled in grades 7 through 12 in the combined district
and projections, approved by the department of education, of
enrollment at least at that level for five years;
(2) at least two districts, both of which qualify for
sparsity revenue under section 124A.22, subdivision 6, and have
an average isolation index over 23; or
(3) at least three districts with fewer than 420 400
resident pupils enrolled in grades 7 through 12 in the combined
district.
A combination under clause (3) must be approved by the
state board of education. The state board shall disapprove a
combination under clause (3) if the combination is educationally
unsound or would not reasonably enable the districts to fulfill
statutory and rule requirements.
Sec. 49. Minnesota Statutes 1988, section 129B.46,
subdivision 2, as amended by 1989 H.F. No. 654, article 7,
section 19, if enacted, is amended to read:
Subd. 2. [QUALIFICATIONS.] (a) An individual employed as a
career teacher must be licensed as a teacher and shall be
considered a teacher as defined in section 179A.03, subdivision
18, for purposes of chapter 179A.
(b) An individual employed as a principal teacher must be
licensed as a teacher principal and shall be considered a
principal, as defined in section 179A.03, subdivision 12, for
purposes of chapter 179A.
(c) An individual employed as a counselor teacher must be
licensed as a counselor and shall be considered a teacher, as
defined in section 179A.03, subdivision 18, for purposes of
chapter 179A.
Sec. 50. Minnesota Statutes 1988, section 105.41,
subdivision 1b, as amended by 1989 S.F. No. 262, article 4,
section 3, if enacted, is amended to read:
Subd. 1b. [USE LESS THAN MINIMUM.] Except for local
permits under section 473.877, subdivision 1 4, a permit is not
required for the appropriation and use of less than a minimum
amount to be established by the commissioner by rule. Permits
for more than the minimum amount but less than an intermediate
amount to be specified by the commissioner by rule must be
processed and approved at the municipal, county, or regional
level based on rules to be established by the commissioner by
January 1, 1977. The rules must include provisions for
reporting to the commissioner the amounts of water appropriated
under local permits.
Sec. 51. 1989 H.F. No. 59, article 2, section 3,
subdivision 1, if enacted, is amended to read:
Subdivision 1. [TERMS.] (a) For purposes of this section,
the following terms have the meanings given.
(b) "Law enforcement authority" means with respect to a
home rule charter or statutory city, the chief of police, and
with respect to an unincorporated area, the sheriff of the
county.
(c) "Sex offender" means a person who has been convicted
and sentenced under article 4, section 12 10, section 609.185,
clause (2), section 609.342, 609.343, 609.344, or 609.345 and is
serving or is being released to serve the supervised release
portion of the sentence imposed or is on probation for that
conviction unless the person is placed in a residential
community-based facility.
Sec. 52. 1989 H.F. No. 59, article 2, section 18, if
enacted, is amended to read:
Sec. 18. [EFFECTIVE DATE.]
Sections 6, 7, and 10 to 15 are effective August 1, 1989,
and apply to crimes committed on or after that date. Section 9
is effective August 1, 1990, and applies to crimes committed on
or after that date. The court shall consider convictions
occurring before August 1, 1989, the effective date as prior
convictions in sentencing offenders under sections 9, 10, and 12
to 15. Section 9 is effective August 1, 1990, and applies to
crimes committed on or after that date.
Sec. 53. 1989 H.F. No. 59, article 3, section 26, if
enacted, is amended to read:
Sec. 26. Minnesota Statutes 1988, section 260.125,
subdivision 3, is amended to read:
Subd. 3. A prima facie case that the public safety is not
served or that the child is not suitable for treatment shall
have been established if the child was at least 16 years of age
at the time of the alleged offense and:
(1) Is alleged by delinquency petition to have committed an
aggravated felony against the person and (a) in committing the
offense, the child acted with particular cruelty or disregard
for the life or safety of another; or (b) the offense involved a
high degree of sophistication or planning by the juvenile; or
(2) Is alleged by delinquency petition to have committed
murder in the first degree; or
(3) Is alleged by delinquency petition (a) to have
committed the delinquent act of escape from confinement to a
state juvenile correctional facility and (b) to have committed
an offense as part of, or subsequent to, escape from custody
that would be a felony listed in section 609.11, subdivision 9,
if committed by an adult; or
(4) Has been found by the court, pursuant to an admission
in court or after trial, to have committed an offense within the
preceding 24 months which would be a felony if committed by an
adult, and is alleged by delinquency petition to have committed
murder in the second or third degree, manslaughter in the first
degree, criminal sexual conduct in the first degree or assault
in the first degree; or
(5) Has been found by the court, pursuant to an admission
in court or after trial, to have committed two offenses, not in
the same behavioral incident, within the preceding 24 months
which would be felonies if committed by an adult, and is alleged
by delinquency petition to have committed manslaughter in the
second degree, kidnapping, criminal sexual conduct in the second
degree, arson in the first degree, aggravated robbery, or
assault in the second degree; or
(6) Has been found by the court, pursuant to an admission
in court or after trial, to have committed two offenses, not in
the same behavioral incident, within the preceding 24 months,
one or both of which would be the felony of burglary of a
dwelling if committed by an adult, and the child is alleged by
the delinquency petition to have committed another burglary of a
dwelling. For purposes of this subdivision, "dwelling" means a
building which is, in whole or in part, usually occupied by one
or more persons living there at night; or
(7) Has previously been found by the court, pursuant to an
admission in court or after trial, to have committed three
offenses, none in the same behavioral incident, within the
preceding 24 months which would be felonies if committed by an
adult, and is alleged by delinquency petition to have committed
any felony other than those described in clause (2), (4), or
(5); or
(8) Is alleged by delinquency petition to have committed an
aggravated felony against the person, other than a violation of
section 609.713, in furtherance of criminal activity by an
organized gang; or
(9) Has previously been found by the court, pursuant to an
admission in court or after trial, to have committed an offense
which would be a felony if committed by an adult, and is alleged
by delinquency petition to have committed a felony-level
violation of chapter 152 involving the unlawful sale or
possession of a schedule I or II controlled substance, while in
a public park zone or a school zone as defined in sections 4 and
5. This clause does not apply to a juvenile alleged to have
unlawfully possessed a controlled substance in a private
residence located within the school zone or park zone.
For the purposes of this subdivision, "aggravated felony
against the person" means a violation of any of the following
provisions: section 609.185; 609.19; 609.195; 609.20,
subdivision 1 or 2; 609.221; 609.222; 609.223; 609.245; 609.25;
609.342; 609.343; 609.344, subdivision 1, clause (c) or (d);
609.345, subdivision 1, clause (c) or (d); 609.561; 609.582,
subdivision 1, clause (b) or (c); or 609.713.
For the purposes of this subdivision, an "organized gang"
means an association of five or more persons, with an
established hierarchy, formed to encourage members of the
association to perpetrate crimes or to provide support to
members of the association who do commit crimes.
Sec. 54. 1989 H.F. No. 59, article 4, section 1,
subdivision 3, if enacted, is amended to read:
Subd. 3. [PROGRAMS FOR ADULT OFFENDERS COMMITTED TO THE
COMMISSIONER.] (a) The commissioner shall provide for a range of
sex offender treatment programs, including intensive sex
offender treatment, within the state adult correctional facility
system. Participation in any treatment program is voluntary and
is subject to the rules and regulations of the department of
corrections. Nothing in this section requires the commissioner
to accept or retain an offender in a treatment program. Nothing
in this section creates a right of an offender to treatment.
(b) The commissioner shall provide for residential and
outpatient sex offender treatment and aftercare when required
for conditional release under section 12 10 or as a condition of
supervised release.
Sec. 55. 1989 H.F. No. 59, article 4, section 18, if
enacted, is amended to read:
Sec. 18. [634.25] [ADMISSIBILITY OF RESULTS OF DNA
ANALYSIS.]
In a civil or criminal trial or hearing, the results of DNA
analysis, as defined in section 10 7, are admissible in evidence
without antecedent expert testimony that DNA analysis provides a
trustworthy and reliable method of identifying characteristics
in an individual's genetic material upon a showing that the
offered testimony meets the standards for admissibility set
forth in the Rules of Evidence.
Sec. 56. 1989 H.F. No. 59, article 9, section 1,
subdivision 1, if enacted, is amended to read:
Subdivision 1. [APPLICABILITY.] For purposes of sections 1
to 8 9, the following terms have the meanings given them in this
section.
Sec. 57. 1989 H.F. No. 59, article 9, section 8, if
enacted, is amended to read:
Sec. 8. [299A.36] [OTHER DUTIES.]
The assistant commissioner assigned to the office of drug
policy, in consultation with the drug abuse prevention resource
council, shall:
(1) provide information and assistance upon request to
school preassessment teams established under section 126.034 and
school and community advisory teams established under section
126.035;
(2) provide information and assistance upon request to the
state board of pharmacy with respect to the board's enforcement
of chapter 152;
(3) cooperate with and provide information and assistance
upon request to the alcohol and other drug abuse section in the
department of human services.;
(4) assist in coordinating the policy of the office with
that of the narcotic enforcement unit in the bureau of criminal
apprehension; and
(5) coordinate the activities of the regional drug task
forces, provide assistance and information to them upon request,
and assist in the formation of task forces in areas of the state
in which no task force operates.
Sec. 58. 1989 H.F. No. 59, article 10, section 3, if
enacted, is amended to read:
Sec. 3. Minnesota Statutes 1988, section 169.121,
subdivision 3, is amended to read:
Subd. 3. [CRIMINAL PENALTIES.] (a) A person who violates
this section subdivision 1 or an ordinance in conformity with it
is guilty of a misdemeanor.
(b) A person is guilty of a gross misdemeanor who
violates this section subdivision 1 or an ordinance in
conformity with it within five years of a prior impaired driving
conviction, or within ten years of the first of two or more
prior impaired driving convictions. For purposes of this
paragraph, a prior impaired driving conviction is a prior
conviction under this section, section 84.91, subdivision 1,
paragraph (a), section 169.129, section 361.12, subdivision 1,
section 609.21, subdivision 1, clause (2) or (3), 609.21,
subdivision 2, clause (2) or (3), 609.21, subdivision 3, clause
(2) or (3), 609.21, subdivision 4, clause (2) or (3), or an
ordinance from this state, or a statute or ordinance from
another state in conformity with any of them. A prior impaired
driving conviction also includes a prior juvenile adjudication
that would have been a prior impaired driving conviction if
committed by an adult.
(c) A person who violates subdivision 1a is guilty of a
gross misdemeanor.
(d) The attorney in the jurisdiction in which the violation
occurred who is responsible for prosecution of misdemeanor
violations of this section shall also be responsible for
prosecution of gross misdemeanor violations of this section.
When an attorney responsible for prosecuting gross
misdemeanors under this section requests criminal history
information relating to prior impaired driving convictions from
a court, the court must furnish the information without charge.
Sec. 59. 1989 H.F. No. 1532, section 1, if enacted, is
amended to read:
Section 1. [216B.095] [DISCONNECTION DURING COLD WEATHER.]
The commission shall amend its rules governing
disconnection of residential utility customers who are unable to
pay for utility service during cold weather to include the
following:
(1) coverage of customers whose household income is less
than 185 percent of the federal poverty level;
(2) a requirement that a customer who pays the utility at
least ten percent of the customer's income or the full amount of
the utility bill, whichever is less, in a cold weather month
cannot be disconnected during that month;
(3) that the ten percent figure in clause (2) must be
prorated between energy providers proportionate to each
provider's share of the customer's total heating energy costs
where the customer receives service from more than one provider;
(4) that a customer's household income does not include any
amount received for energy assistance;
(5) verification of income by the local energy assistance
provider, unless the customer is automatically eligible as a
recipient of any form of public assistance, including energy
assistance, that uses income eligibility in an amount at or
below the income eligibility in clause (1); and
(6) a requirement that the customer receive, from the local
energy assistance provider or other entity, budget counseling
and referral to weatherization, conservation, or other programs
likely to reduce the customer's consumption of energy.
For the purpose of clause (2), the "customer's income"
means the actual monthly income of the customer except for a
customer who is normally employed only on a seasonal basis and
whose annual income is over 135 percent of the federal poverty
level, in which case the customer's income is the average
monthly income of the customer computed on an annual calendar
year basis.
Sec. 60. Minnesota Statutes 1988, section 297A.257,
subdivision 1, as amended by 1989 H.F. No. 1734, article 7,
section 6, if enacted, is amended to read:
Sec. 6. Minnesota Statutes 1988, section 297A.257,
subdivision 1, is amended to read:
Subdivision 1. [DESIGNATION OF DISTRESSED COUNTIES.] (a)
The commissioner of trade and economic development shall
annually on June 1 designate those counties which are
distressed. A county is distressed if it satisfies at least one
of the following criteria:
(1) the county has an average unemployment rate of ten
percent or more for the one-year period ending on April 30 of
the year in which the designation is made; or
(2) the unemployment rate for the entire county was greater
than 110 percent of the state average for the 12-month period
ending the previous April 30, and 20 percent or more of the
county's economy, as determined by the commissioner of jobs and
training, is dependent upon agriculture; or
(3) for counties designated for periods beginning after
June 30, 1986, but before July 1, 1988, at least 20 percent of
the county's economy, as determined by the commissioner of jobs
and training, is dependent upon agriculture and the total market
value of real and personal property for the entire county for
taxes payable in 1986, as determined by the commissioner of
revenue, has decreased by at least 22 percent from the total
market value of real and personal property for the entire county
for taxes payable in 1984.
If, as a result of a plant closing, layoffs, or another
similar event affecting a significant number of employees in the
county, the commissioner has reason to believe that the average
unemployment in the county will exceed ten percent during the
one-year period beginning April 30, the commissioner may
designate the county as distressed, notwithstanding clause (1).
(b) The commissioner shall designate a portion of a county
containing a city of the first class located outside of the
metropolitan area as a distressed county if:
(1) that portion of the county has an unemployment rate of
ten percent or more for the one-year period ending on April 30
of the year in which the designation is made; and
(2) that portion of the county has a population of at least
50,000 as determined by the 1980 federal census.
(c) A county or the portion of a county designated pursuant
to this subdivision shall be considered a distressed county for
purposes of this section and chapter 116M.
(d) Except as otherwise specifically provided, the
determination of whether a county is distressed must be made
using the most current data available from the state
demographer. The designation of a distressed county is
effective for the 12-month period beginning July 1, except that
a designation made June 1, 1988 shall remain in effect until
December 31, 1989 with respect to purchases of capital equipment
placed in service by December 31, 1989 only, provided that the
continued exemption under subdivision 2b terminates June 30,
1990. A county may be designated as distressed as often as it
qualifies.
(e) The authority to designate counties as distressed
expires on June 30, for designations made effective July 1, 1988.
Sec. 61. 1989 H.F. No. 1734, article 3, section 26, is
amended to read:
Sec. 26. Minnesota Statutes 1988, section 477A.012, is
amended by adding a subdivision to read:
Subd. 3. [AID OFFSET FOR COURT COSTS.] (a) There shall be
deducted from the payment to a county under this section an
amount representing the cost to the state for assumption of the
cost of district court administration and operation of the trial
court information system in the county and, in the case of
Hennepin and Ramsey counties, of public defense services in
juvenile and misdemeanor cases in the county. The amount of the
deduction shall be computed as provided in this subdivision.
(b) By June 15, 1990, the board of public defense shall
determine and certify to the supreme court the cost of the
state-financed public defense services in juvenile and
misdemeanor cases for Hennepin and Ramsey counties during the
fiscal year beginning the following July 1. By June 30, 1990,
the supreme court shall determine and certify to the department
of revenue for each county, except counties located in the
eighth judicial district, the pro rata share for each county of
district court administration and trial court information system
costs during the fiscal year beginning on the following July 1
plus, in the case of Hennepin and Ramsey counties, the costs
certified by the board of public defenders.
(c) Twenty-five percent of the amount computed under
paragraph (b) for each county shall be deducted from each
payment to the county under section 477A.015 in 1990. One-half
of the amount computed under paragraph (b) for each county shall
be deducted from each payment to the county under section
477A.015 in 1991 1990 and each subsequent year.
(d) If the amount computed under paragraph (b) exceeds the
amount payable to a county under subdivision 1, the excess shall
be deducted from the aid payable to the county under section
273.1398, subdivision 2.
Sec. 62. 1989 H.F. No. 1734, article 4, section 11, is
amended to read:
Sec. 11. Minnesota Statutes 1988, section 275.50,
subdivision 5, is amended to read:
Subd. 5. Notwithstanding any other law to the contrary for
taxes levied in 1989 payable in 1990 and subsequent years,
"special levies" means those portions of ad valorem taxes levied
by governmental subdivisions to:
(a) pay the costs not reimbursed by the state or federal
government, of payments made to or on behalf of recipients of
aid under any public assistance program authorized by law, and
the costs of purchase or delivery of social services. The
aggregate amounts levied under this paragraph for the costs of
purchase or delivery of social services and income maintenance
programs, other than those identified in section 273.1398,
subdivision 1, paragraph (j) and paragraph (b) are subject to a
maximum increase over the amount levied for the previous year of
12 percent for counties within the metropolitan area as defined
in section 473.121, subdivision 2, or counties outside the
metropolitan area but containing a city of the first class, and
15 percent for other counties. For purposes of this clause,
"income maintenance programs" include income maintenance
programs in section 273.1398, subdivision 1, to the extent the
county provides benefits under those programs over the state
mandated minimums. Effective with taxes levied in 1989, the
portion of this special levy for the county share levy
identified in section 273.1398, subdivision 1, paragraph (k), is
limited to the amount calculated under section 273.1398,
subdivision 2a;
(b) pay the costs of principal and interest on bonded
indebtedness except on bonded indebtedness issued under section
471.981, subdivisions 4 to 4c or to reimburse for the amount of
liquor store revenues used to pay the principal and interest due
in the year preceding the year for which the levy limit is
calculated on municipal liquor store bonds;
(c) pay the costs of principal and interest on certificates
of indebtedness, except tax anticipation or aid anticipation
certificates of indebtedness, issued for any corporate purpose
except current expenses or funding an insufficiency in receipts
from taxes or other sources or funding extraordinary
expenditures resulting from a public emergency; and to pay the
cost for certificates of indebtedness issued pursuant to
sections 298.28 and 298.282;
(d) fund the payments made to the Minnesota state armory
building commission pursuant to section 193.145, subdivision 2,
to retire the principal and interest on armory construction
bonds;
(e) provide for the bonded indebtedness portion of payments
made to another political subdivision of the state of Minnesota;
(f) pay the amounts required, in accordance with section
275.075, to correct for a county auditor's error of omission but
only to the extent that when added to the preceding year's levy
it is not in excess of an applicable statutory, special law or
charter limitation, or the limitation imposed on the
governmental subdivision by sections 275.50 to 275.56 in the
preceding levy year;
(g) pay amounts required to correct for an error of
omission in the levy certified to the appropriate county auditor
or auditors by the governing body of a city or town with
statutory city powers in a levy year, but only to the extent
that when added to the preceding year's levy it is not in excess
of an applicable statutory, special law or charter limitation,
or the limitation imposed on the governmental subdivision by
sections 275.50 to 275.56 in the preceding levy year;
(h) pay amounts required by law to be paid to pay the
interest on and to reduce the unfunded accrued liability of
public pension funds in accordance with the actuarial standards
and guidelines specified in sections 356.215 and 356.216 reduced
by 106 percent of the amount levied for that purpose in 1976,
payable in 1977. For the purpose of this special levy, the
estimated receipts expected from the state of Minnesota pursuant
to sections 69.011 to 69.031 or any other state aid expressly
intended for the support of public pension funds shall be
considered as a deduction in determining the required levy for
the normal costs of the public pension funds. No amount of
these aids shall be considered as a deduction in determining the
governmental subdivision's required levy for the reduction of
the unfunded accrued liability of public pension funds;
(i) to compensate the state for the cost of a reassessment
ordered by the commissioner of revenue pursuant to section
270.16;
(j) pay the debt service on tax increment financing revenue
bonds to the extent that revenue to pay the bonds or to maintain
reserves for the bonds is insufficient as a result of the
provisions of Laws 1988, chapter 719, article 5;
(k) pay the cost of hospital care under section 261.21;
(l) pay the unreimbursed costs incurred in the previous
year to satisfy judgments rendered against the governmental
subdivision by a court of competent jurisdiction in any tort
action, or to pay the costs of settlements out of court against
the governmental subdivision in a tort action when substantiated
by a stipulation for the dismissal of the action filed with the
court of competent jurisdiction and signed by both the plaintiff
and the legal representative of the governmental subdivision,
provided that an appeal for the unreimbursed costs under this
clause was approved by the commissioner of revenue under section
15;
(m) pay the expenses reasonably and necessarily incurred in
preparing for or repairing the effects of natural disaster
including the occurrence or threat of widespread or severe
damage, injury, or loss of life or property resulting from
natural causes such as earthquake, fire, flood, wind storm, wave
action, oil spill, water contamination, air contamination, or
drought in accordance with standards formulated by the emergency
services division of the state department of public safety,
provided that an appeal for the expenses incurred under this
clause were approved by the commissioner of revenue under
section 15;
(n) pay a portion of the losses in tax receipts to a city
due to tax abatements or court actions in the year preceding the
current levy year, provided that an appeal for the tax losses
was approved by the commissioner of revenue under section 15.
This special levy is limited to the amount of the losses times
the ratio of the nonspecial levies to total levies for taxes
payable in the year the abatements were granted. County
governments are not authorized to claim this special levy;
(o) pay the operating cost of regional library services
authorized under section 134.34, subject to a maximum increase
of the greater of (1) 103 percent multiplied by one plus the
percentage increase determined for the governmental subdivision
under section 275.51, subdivision 3h, clause (b), or (2) six
percent. If a governmental subdivision elected to include some
or all of its levy for libraries within its adjusted levy limit
base in the prior year, but elects to claim the levy as a
special levy in the current levy year, the allowable increase is
determined by applying the greater percentage determined under
clause (1) or (2) to the total amount levied for libraries in
the prior levy year. After levy year 1989, the increase must
not be determined using a base amount other than the amount that
could have been levied as a special levy in the prior year. In
no event shall the special levy be less than the minimum levy
required under sections 134.33 and 134.34, subdivisions 1 and 2;
(p) pay the amount of the county building fund levy
permitted under section 373.40, subdivision 6;
(q) pay the county's share of the costs levied in 1989,
1990, and 1991 for the Minnesota cooperative soil survey under
Minnesota Statutes 1988, section 40.07, subdivision 15; and
(r) for taxes levied in 1989, payable in 1990 only, pay the
cost incurred for the minimum share required by counties levying
for the first time under section 134.34 as required under
section 134.341. For taxes levied in 1990, and thereafter,
counties levying under this provision must levy under paragraph
(o), and their allowable increase must be determined with
reference to the amount levied in 1989 under this paragraph; and
(s) for taxes levied in 1989, payable in 1990 only, provide
an amount equal to 50 percent of the estimated amount of the
reduction in aids to a county under sections 273.1398,
subdivision 2, paragraph (d), and 477A.012, subdivision 3, for
aids payable in 1990. For taxes levied in 1990, payable in 1991
only, the adjusted levy limit base of a county that imposes a
special levy under this paragraph for taxes payable in 1990
shall be decreased by the amount of the special levy that
exceeded the actual aid reduction, or increased by the amount of
the special levy that was less than the actual aid reduction.
Sec. 63. [CORRECTION NO. 26.] 1989 H.F. No. 372, article
1, section 28, if enacted, is amended to read:
Sec. 28. STATE PLANNING AGENCY 6,105,000 6,505,000
1990 1991
Approved Complement - 113 113
General - 80.5 80.5
Special Revenue - 4.5 4.5
Revolving - 22 22
Federal - 6 6
Summary by Fund
General $ 5,630,000 $ 6,030,000
Special Revenue $ 475,000 $ 475,000
$377,000 the first year and $377,000
the second year are for regional
planning grants to regional development
commissions organized under Minnesota
Statutes, sections 462.381 to 462.396.
Until June 30, 1991, for state and
federal grants distributed by state
agencies to regions of the state not
having a regional development
commission, the state agency
administering the grant program may
assess the program for administrative
costs incurred by the agency that
normally are incurred by the commission.
$22,000 the first year and $22,000 the
second year are for the Council of
Great Lakes Governors.
During the biennium any seminars or
training sessions regarding federal
issues for federal budgeting that are
conducted by the Washington office
shall be made available to legislators
and legislative staff. The Washington
office shall notify the legislature
regarding the timing of such seminars.
The commissioner shall contract with an
independent consultant to explore
future directions for Minnesota in land
management information systems. This
study shall examine interagency
cooperation, public and private venture
potential, the status of geographic
information systems planning as it
applies to Minnesota, the role that the
land management information center
should play in future development of an
overall system, and development of a
long-range strategy for Minnesota's
role in providing the appropriate
services to agencies and political
subdivisions. The study shall also
explore the activities of other states
and nations in the area of geographic
information systems. The study must be
accomplished in conjunction with the
information policy office and be
compatible with the long-range
information management architecture
being developed by the information
policy office. A final report shall be
submitted to the legislature by January
1, 1991, indicating recommendations for
future actions.
The state planning agency shall study
the effects on the state's
transportation systems, methods of
storage, public safety systems, and
state health concerns of any
incinerator to be contructed in
Minnesota that is designed to burn
hazardous wastes. The report shall
include specific recommendations and
shall be delivered to the legislature
and the affected state agencies by
January 1, 1991.
$500,000 the second year is for
one-third of the state's membership fee
in the Great Lakes Protection Fund.
The governor may enter as a signatory
party in the Great Lakes Protection
Fund. The fund is created as a
permanent endowment to advance the
principles, goals, and objectives of
the Great Lakes Toxic Substance Control
Agreement, executed by the eight Great
Lakes governors in May 1986, and to
ensure the continuous development of
needed scientific information, new
cleanup technologies, and innovative
methods of managing pollution problems
as a cooperative effort in the Great
Lakes region.
The governor may enter the state as a
signatory party in the Great Lakes
Protection Fund, subject to approval by
the legislature. After approval, the
governor shall do all things necessary
or incidental to participate in the
Great Lakes Protection Fund, as spelled
out in its bylaws and articles of
incorporation.
If congressional consent to the Great
Lakes Protection Fund carries with it
conditions that materially change the
provisions agreed to by the party
states, the state reserves the option
to terminate further participation in
the fund.
$100,000 the first year and $100,000
the second year are for demonstration
grants under the youth employment and
housing program to eligible
organizations as defined in Minnesota
Statutes, section 268.361, subdivision
4. $75,000 each year is for a grant to
an eligible organization in the city of
Bemidji and $25,000 each year is for a
grant to an eligible organization in
the city of Minneapolis.
$250,000 the first year and $250,000
the second year is for the Way to Grow
school readiness program. $125,000 the
first year and $125,000 the second year
must be used for a project located
within a city of the first class
located within the metropolitan area as
defined in Minnesota Statutes, section
473.121, subdivision 2. $125,000 the
first year and $125,000 the second year
must be used for a project located
within a city of the second class
located within the metropolitan area as
defined in Minnesota Statutes, section
473.121, subdivision 2. This is
intended to be a nonrecurring
appropriation and must not be included
in the budget base for the 1992-1993
biennium.
The state planning agency shall study
the administrative costs of local units
of government and shall report to the
legislature by January 1, 1990, on the
level and growth of administrative
costs and alternatives for controlling
future growth.
$100,000 the first year and $100,000
the second year are for the Minnesota
environmental education board. Any
appropriations for the board made by
S.F. No. 262 serve to reduce these
appropriations.
Sec. 64. [CORRECTION NO. 27.] 1989 H.F. No. 1734, article
6, section 3, if enacted, is amended to read:
Sec. 3. Minnesota Statutes 1988, section 477A.011,
subdivision 1a, is amended to read:
Subd. 1a. [CITY.] City means a statutory or home rule
charter city. City also means a town having a population of
5,000 or more for purposes of the aid payable under section
477A.013, subdivision 3. Towns and cities of the first class
are not eligible to be treated as cities for purposes of aid
payable under section 477A.013, subdivision 4 5.
Sec. 65. [CORRECTION NO. 27; EFFECTIVE DATE.]
Section 64 is effective for aid paid in 1990.
Sec. 66. [CORRECTION NO. 28.] Minnesota Statutes 1988,
section 500.221, subdivision 2, is amended to read:
Subd. 2. [ALIENS AND NON-AMERICAN CORPORATIONS.] Except as
hereinafter provided, no natural person shall acquire directly
or indirectly any interest in agricultural land unless the
person is a citizen of the United States or a permanent resident
alien of the United States. In addition to the restrictions in
section 500.24, no corporation, partnership, limited
partnership, trustee, or other business entity shall directly or
indirectly, acquire or otherwise obtain any interest, whether
legal, beneficial or otherwise, in any title to agricultural
land unless at least 80 percent of each class of stock issued
and outstanding or 80 percent of the ultimate beneficial
interest of the entity is held directly or indirectly by
citizens of the United States or permanent resident aliens.
This section shall not apply:
(1) to agricultural land that may be acquired by devise,
inheritance, as security for indebtedness, by process of law in
the collection of debts, or by any procedure for the enforcement
of a lien or claim thereon, whether created by mortgage or
otherwise. All agricultural land acquired in the collection of
debts or by the enforcement of a lien or claim shall be disposed
of within three years after acquiring ownership;
(2) to citizens or subjects of a foreign country whose
rights to hold land are secured by treaty;
(3) to lands used for transportation purposes by a common
carrier, as defined in section 218.011, subdivision 2;
(4) to lands or interests in lands acquired for use in
connection with mining and mineral processing operations.
Pending the development of agricultural land for mining purposes
the land may not be used for farming except under lease to a
family farm, a family farm corporation or an authorized farm
corporation;
(5) to agricultural land operated for research or
experimental purposes if the ownership of the agricultural land
is incidental to the research or experimental objectives of the
person or business entity and the total acreage owned by the
person or business entity does not exceed the acreage owned on
May 27, 1977; or
(6) to the purchase of any tract of 40 acres or less for
facilities incidental to pipeline operation by a company
operating a pipeline as defined in section 116I.01, subdivision
3; or
(7) to agricultural land and land capable of being used as
farmland in vegetable processing operations that is reasonably
necessary to meet the requirements of pollution control law or
rules.
Sec. 67. 1989 H.F. No. 372, article 3, section 58,
subdivision 2, if enacted, is amended to read:
Subd. 2. [JULY 1, 1990, OUTSIDE 8TH.] (a) Except as
provided in paragraph (b), in all judicial districts except the
eighth, sections 6, 7, 8, 11, 13, 15, 22, 23, 30, 31, 32, 33,
34, 35, 36, 37, 38, and 56, are effective July 1, 1990.
(b) Section 6 is effective July 1, 1989, with respect to
the increase in fees under section 7. Sections 7 and 11 are
effective July 1, 1989.
Sec. 68. [EFFECTIVE DATE.]
Unless provided otherwise, the sections of this act that
amend other 1989 enactments take effect on the same dates as the
enactments that they amend.
Presented to the governor May 31, 1989
Signed by the governor June 3, 1989, 1:05 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes