1.1                          A bill for an act 
  1.2             relating to public administration; appropriating money 
  1.3             and supplementing, reducing, and transferring earlier 
  1.4             appropriations, with certain conditions; amending 
  1.5             Minnesota Statutes 1994, sections 8.15, by adding a 
  1.6             subdivision; 16A.11, subdivision 1, and by adding a 
  1.7             subdivision; 16A.152, by adding a subdivision; 16D.04, 
  1.8             as amended; 16D.05; 16D.07; 16D.08, as amended; 
  1.9             16D.10; 17.117, subdivision 3; 43A.06, by adding a 
  1.10            subdivision; 69.021, subdivision 4, and by adding a 
  1.11            subdivision; 69.031, subdivisions 1 and 5; 124.17, 
  1.12            subdivision 1e, and by adding subdivisions; 124.195, 
  1.13            subdivision 7; 144C.03, subdivision 2; 257.0755, 
  1.14            subdivision 3; 363.071, subdivision 7; and 609.52, 
  1.15            subdivision 2; Minnesota Statutes 1995 Supplement, 
  1.16            sections 16A.152, subdivision 2; 16D.02, subdivision 
  1.17            8; 16D.06; 16D.11; 16D.12; 16D.14; 16D.16; 79.561, 
  1.18            subdivision 3; 103F.725, subdivision 1a; 120.064, 
  1.19            subdivision 15; 121.904, subdivision 4a; 124.17, 
  1.20            subdivision 1d; 124.195, subdivisions 10 and 12; 
  1.21            124.225, subdivision 8l; 124.961; 353.65, subdivision 
  1.22            7; and 446A.07, subdivision 8; Laws 1995, chapters 
  1.23            220, section 7, subdivision 4; 224, section 2, 
  1.24            subdivision 2; and 231, article 1, section 33; Laws 
  1.25            1995, First Special Session chapter 3, article 3, 
  1.26            section 19, by adding a subdivision; article 5, 
  1.27            section 20, subdivision 5; article 8, section 25, 
  1.28            subdivision 2; article 11, sections 21, subdivision 2, 
  1.29            and by adding a subdivision; 22; and 23; article 12, 
  1.30            section 12, subdivision 7, and by adding subdivisions; 
  1.31            article 14, section 5; and article 15, section 26, 
  1.32            subdivisions 7 and 8; proposing coding for new law in 
  1.33            Minnesota Statutes, chapters 16A; 62J; 116J; 120; 
  1.34            124C; 168A; 241; 299A; and 363; repealing Minnesota 
  1.35            Statutes 1994, sections 116J.873, subdivisions 1, 2, 
  1.36            and 4; 135A.01; 135A.02; 135A.03; 135A.031, 
  1.37            subdivisions 1, 3, 4, 5, and 6; 135A.032; 135A.033; 
  1.38            135A.034; and 268.9783, subdivision 8; Minnesota 
  1.39            Statutes 1995 Supplement, sections 116J.873, 
  1.40            subdivisions 3 and 5; 121.904, subdivisions 4c and 4d; 
  1.41            and 135A.031, subdivision 2. 
  1.42  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.43                             ARTICLE 1 
  2.1                        K-12 EDUCATION FINANCE 
  2.2      Section 1.  Laws 1995, First Special Session chapter 3, 
  2.3   article 14, section 5, is amended to read: 
  2.4      Sec. 5.  [FISCAL YEAR 1998 AND 1999 APPROPRIATIONS.] 
  2.5      The appropriations for the 1998-99 biennium for programs 
  2.6   contained in this act shall be $2,943,900,000 $2,975,606,000 for 
  2.7   fiscal year 1998 and $3,076,600,000 $3,027,891,000 for fiscal 
  2.8   year 1999, plus or minus any adjustments due to variance in 
  2.9   pupil forecasts, levies, or other factors generating 
  2.10  entitlements for the general revenue program.  These amounts 
  2.11  shall first be allocated to fully fund the general revenue 
  2.12  program.  Amounts remaining shall be allocated to other programs 
  2.13  in proportion to the fiscal year 1997 appropriations or to 
  2.14  entitlements generated by existing law for those programs for 
  2.15  each year, up to the amount of the entitlement or the fiscal 
  2.16  year 1997 appropriations.  Any amounts remaining after 
  2.17  allocation to these other programs shall be maintained for 
  2.18  allocation recommendations by the governor and legislature in 
  2.19  the 1997 session. 
  2.20     Sec. 2.  Laws 1995, First Special Session chapter 3, 
  2.21  article 5, section 20, subdivision 5, is amended to read: 
  2.22     Subd. 5.  [DEBT SERVICE AID.] For debt service aid 
  2.23  according to Minnesota Statutes, section 124.95, subdivision 5: 
  2.24       $30,054,000     .....     1996
  2.25       $27,370,000 $28,228,000     .....     1997
  2.26     The 1996 appropriation includes $30,054,000 for 1996. 
  2.27     The 1997 appropriation includes $27,370,000 $28,228,000 for 
  2.28  1997.  This appropriation is 85 percent of the aid entitlement 
  2.29  for 1997. 
  2.30     Sec. 3.  Laws 1995, First Special Session chapter 3, 
  2.31  article 8, section 25, subdivision 2, is amended to read: 
  2.32     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
  2.33  Minnesota Statutes, section 124.214:  
  2.34       $24,241,000 $22,251,600     .....     1996 
  2.35       $ 7,905,000 $ 9,543,400     .....     1997 
  2.36     The 1996 appropriation includes $1,135,000 for 1995 and 
  3.1   $23,106,000 $21,116,600 for 1996.  
  3.2      The 1997 appropriation includes $4,077,000 $3,726,400 for 
  3.3   1996 and $3,828,000 $5,817,000 for 1997.  
  3.4      Sec. 4.  Laws 1995, First Special Session chapter 3, 
  3.5   article 15, section 26, subdivision 7, is amended to read: 
  3.6      Subd. 7.  [TARGETED NEEDS AID.] For targeted needs aid: 
  3.7        $37,682,000 $39,591,100    .....     1996 
  3.8        $41,597,000 $41,614,100    .....     1997 
  3.9      (a) Of the 1996 amount, $945,000 is for 1995 LEP aid and 
  3.10  $4,359,000 $6,268,100 is for 1996 LEP aid.  Of the 1996 amount, 
  3.11  $1,979,000 is for 1995 AOM aid and $11,555,000 is for 1996 AOM 
  3.12  aid.  Of the 1996 amount, $18,844,000 is for 1996 integration 
  3.13  aid. 
  3.14     (b) Of the 1997 amount, $1,089,000 $1,106,100 is for 1996 
  3.15  LEP aid and $7,913,000 is for 1997 LEP aid.  Of the 1997 amount, 
  3.16  $2,039,000 is for 1996 AOM aid and $11,712,000 is for 1997 AOM 
  3.17  aid.  Of the 1997 amount, $18,844,000 is for 1997 integration 
  3.18  aid. 
  3.19     (c) As a condition of receiving a grant, each district must 
  3.20  continue to report its costs according to the uniform financial 
  3.21  accounting and reporting system.  As a further condition of 
  3.22  receiving a grant, each district must submit a report to the 
  3.23  chairs of the education committees of the legislature about the 
  3.24  actual expenditures it made for integration using the grant 
  3.25  money including achievement results. These grants may be used to 
  3.26  transport students attending a nonresident district under 
  3.27  Minnesota Statutes, section 120.062, to the border of the 
  3.28  resident district.  A district may allocate a part of the grant 
  3.29  to the transportation fund for this purpose. 
  3.30     Sec. 5.  Laws 1995, First Special Session chapter 3, 
  3.31  article 15, section 26, subdivision 8, is amended to read: 
  3.32     Subd. 8.  [SECONDARY VOCATIONAL; STUDENTS WITH 
  3.33  DISABILITIES.] For aid for secondary vocational education for 
  3.34  pupils with disabilities according to Minnesota Statutes, 
  3.35  section 124.574: 
  3.36       $4,489,000 $5,026,000    .....     1996 
  4.1        $5,424,000 $6,147,000    .....     1997 
  4.2      The 1996 appropriation includes $590,000 for 1995 and 
  4.3   $3,899,000 $4,436,000 for 1996.  
  4.4      The 1997 appropriation includes $688,000 $782,000 for 1996 
  4.5   and $4,736,000 $5,365,000 for 1997.  
  4.6      Sec. 6.  Laws 1995, First Special Session chapter 3, 
  4.7   article 3, section 19, is amended by adding a subdivision to 
  4.8   read: 
  4.9      Subd. 18.  [MONTEVIDEO GRANT.] For a grant to independent 
  4.10  school district No. 129, Montevideo, for the unreimbursed costs 
  4.11  of an adult farm management program: 
  4.12       $100,000     .....     1996 
  4.13     Sec. 7.  [120.063] [STUDENT AND FAMILY EDUCATION CHOICE 
  4.14  THROUGH VOUCHERS.] 
  4.15     Subdivision 1.  [COMMISSIONER ADMINISTERS.] The 
  4.16  commissioner shall administer the voucher program set out in 
  4.17  this section. 
  4.18     Subd. 2.  [PURPOSES.] The purposes of the voucher program 
  4.19  are: 
  4.20     (1) to provide expanded learning opportunities for children 
  4.21  who, because of income, have less access to education 
  4.22  opportunities provided by nonpublic schools; 
  4.23     (2) to provide, through competition, added incentives for 
  4.24  the public education system to continue to improve; 
  4.25     (3) to empower parents to determine the type of educational 
  4.26  program they want for their children; 
  4.27     (4) to ensure that a child's right to an education under 
  4.28  the state constitution is met while enabling parents to exercise 
  4.29  more fully their right to direct the upbringing and education of 
  4.30  their children; 
  4.31     (5) to encourage greater parental involvement in education 
  4.32  by increasing family commitment to the school of choice and by 
  4.33  enhancing relationships between school officials and parents; 
  4.34     (6) to recognize the success of Minnesota's existing school 
  4.35  choice programs and to further broaden educational options; and 
  4.36     (7) to accommodate the increasing numbers of school-age 
  5.1   children in a cost-efficient manner by making greater use of 
  5.2   existing school facilities and resources.  
  5.3      Subd. 3.  [ELIGIBLE STUDENT.] (a) Students eligible for the 
  5.4   voucher program are described in this subdivision.  A student 
  5.5   must be of school age and a resident of special school district 
  5.6   No. 1, Minneapolis; independent school district Nos. 286, 
  5.7   Brooklyn Center; or 625, Saint Paul, or an out-state district 
  5.8   chosen by the commissioner.  The commissioner shall establish 
  5.9   criteria to determine the out-state district.  The student's 
  5.10  household income must not be more than 275 percent of the 
  5.11  federal poverty level.  The student must be enrolled in 
  5.12  kindergarten or grade 1 to 12 in a school described in 
  5.13  subdivision 4. 
  5.14     (b) Interested persons residing in out-state areas may 
  5.15  apply to the commissioner for the person's resident district to 
  5.16  be included in the voucher program. 
  5.17     Subd. 4.  [ELIGIBLE SCHOOL.] An eligible student may use a 
  5.18  voucher in an eligible school.  An eligible school must: 
  5.19     (1) be a nonpublic school other than a home school; 
  5.20     (2) be one in which a child is provided instruction in 
  5.21  compliance with sections 120.101 and 120.102; 
  5.22     (3) accept vouchers in payment of tuition and instructional 
  5.23  fees for an eligible student enrolled in the school; 
  5.24     (4) allow the commissioner to periodically verify the 
  5.25  actual enrollment of eligible students; and 
  5.26     (5) use a performance-based accreditation system by an 
  5.27  accrediting agency recognized under Minnesota Statutes, section 
  5.28  123.935, allow its eligible students to participate in the state 
  5.29  graduation standards, or develop and publish performance 
  5.30  standards and assessments based on the performance standards. 
  5.31     Subd. 5.  [PROGRAM PROCEDURE.] The commissioner must make 
  5.32  information available to parents or guardians of school age 
  5.33  children in the eligible school districts, develop a simple 
  5.34  voucher form to implement this subdivision, and provide the 
  5.35  voucher form to those who request it.  The parent or guardian 
  5.36  primarily responsible to pay an eligible student's tuition must 
  6.1   fill out the voucher form and certify the student's residency 
  6.2   and household income eligibility.  The parent or guardian must 
  6.3   then assign the voucher to the eligible school that enrolls the 
  6.4   student.  The school must certify the student's enrollment and 
  6.5   tuition and instructional fees to redeem the voucher.  The 
  6.6   commissioner must pay the amount of the redeemed voucher to the 
  6.7   eligible school. 
  6.8      Subd. 6.  [BASIC VOUCHER AMOUNT.] (a) Subject to paragraphs 
  6.9   (b) and (c), the amount of an eligible student's voucher will 
  6.10  vary from $500 for a student whose household income is at 275 
  6.11  percent of the federal poverty level to $3,000 for a student 
  6.12  whose household income is at or below 130 percent of the federal 
  6.13  poverty level.  The commissioner shall adopt a sliding scale for 
  6.14  voucher amounts for students with household incomes between 130 
  6.15  and 275 percent of the federal poverty level. 
  6.16     (b) The basic voucher amount is for the cost of tuition and 
  6.17  instructional fees. 
  6.18     (c) The voucher amount for an eligible student enrolled at 
  6.19  an eligible school for less than a full school year must be 
  6.20  prorated. 
  6.21     Subd. 7.  [SPECIAL EDUCATION.] (a) After the basic 
  6.22  education voucher is calculated, a parent or guardian may 
  6.23  request a special education voucher.  Subject to paragraph (b), 
  6.24  the special education voucher amount is the state average 
  6.25  special education revenue per special education student.  The 
  6.26  parent or guardian of a student is responsible to annually 
  6.27  submit the certification of the student's qualification for 
  6.28  special education services. 
  6.29     (b) The special education voucher amount is for the cost of 
  6.30  providing special education instruction and services. 
  6.31     (c) Any law or rule requiring a resident district to 
  6.32  provide special education instruction and services for a 
  6.33  resident student shall not apply to an eligible student 
  6.34  receiving a special education voucher. 
  6.35     Subd. 8.  [TRANSPORTATION.] (a) After the basic education 
  6.36  voucher is calculated, a parent or guardian may request a 
  7.1   transportation voucher.  The transportation voucher amount is 
  7.2   the per pupil amount of nonpublic pupil transportation revenue 
  7.3   for the resident district.  
  7.4      (b) Any law or rule requiring a district to provide 
  7.5   transportation for a resident student shall not apply to an 
  7.6   eligible student receiving a transportation voucher. 
  7.7      Subd. 9.  [TUITION CHARGE.] An eligible school must not 
  7.8   charge more than its published tuition and instructional fees to 
  7.9   an eligible student.  An eligible school may charge an eligible 
  7.10  student who receives the voucher an amount equal to the 
  7.11  difference between the student's voucher amount and the sum of 
  7.12  the school's tuition and instructional fees. 
  7.13     Sec. 8.  [120.0631] [OTHER AIDS.] 
  7.14     (a) A school district may include an eligible student who 
  7.15  attended a public school in the district in the year directly 
  7.16  preceding the year the student first received a voucher and is 
  7.17  currently receiving a voucher, in its total pupil count for 
  7.18  purposes of otherwise applicable school revenue programs.  The 
  7.19  commissioner shall reduce the amount of state aids to which a 
  7.20  district is entitled by the amount of the basic voucher and 
  7.21  special education and transportation vouchers as they apply. 
  7.22     (b) A student receiving a transportation voucher is not 
  7.23  eligible for aid under section 124.225, subdivision 16. 
  7.24     (c) A student receiving a basic voucher is not eligible for 
  7.25  aid under sections 123.931 to 123.947. 
  7.26     Sec. 9.  [120.0632] [IMPLEMENTATION GUIDELINES.] 
  7.27     The commissioner shall adopt guidelines and implement the 
  7.28  voucher program.  The guidelines must be adopted with the advice 
  7.29  and consent of the council established under section 123.935, 
  7.30  subdivision 7.  The guidelines must include:  (1) the manner of 
  7.31  payments, which shall be in the form of a voucher redeemable 
  7.32  upon presentation to the department of children, families, and 
  7.33  learning by an eligible school for services provided; (2) a 
  7.34  process for verification of student eligibility before payment 
  7.35  of the basic voucher; (3) the process for verification of 
  7.36  student eligibility before payment of the special education 
  8.1   voucher; and (4) the pupil application form and submission 
  8.2   process.  
  8.3      Sec. 10.  [120.0633] [EDUCATION VOUCHER PROGRAM 
  8.4   APPROPRIATION.] 
  8.5      For fiscal year 1998 and thereafter, there is annually 
  8.6   appropriated from the general fund to the department of 
  8.7   children, families, and learning the amount necessary for the 
  8.8   education voucher program.  This amount shall be reduced by the 
  8.9   amount of any money specifically appropriated for the same 
  8.10  purpose in any year from any state fund.  
  8.11     Sec. 11.  [APPROPRIATION.] 
  8.12     $15,000,000 in fiscal year 1997 is appropriated from the 
  8.13  general fund to the commissioner of the department of children, 
  8.14  families, and learning to implement sections 1 and 3 and to 
  8.15  redeem vouchers for the 1996-1997 school year. 
  8.16     Sec. 12.  [EFFECTIVE DATES.] 
  8.17     Sections 7, 8, 9, and 11 are effective the day following 
  8.18  final enactment to make the voucher program operational for the 
  8.19  1996-1997 school year and thereafter.  Section 10 is effective 
  8.20  July 1, 1997. 
  8.21     Sec. 13.  [AFTER-SCHOOL ENRICHMENT PROGRAMS.] 
  8.22     Subdivision 1.  [NEIGHBORHOOD DESIGNATION.] The 
  8.23  commissioner of children, families, and learning shall designate 
  8.24  one community organization in each of three qualifying 
  8.25  neighborhoods in St. Paul and three qualifying neighborhoods in 
  8.26  Minneapolis to plan and implement after-school enrichment 
  8.27  programs.  The commissioner shall provide technical assistance 
  8.28  to the organizations, if needed, to develop a plan. 
  8.29     Subd. 2.  [PROGRAM OUTCOMES.] The outcomes of the 
  8.30  after-school enrichment programs shall be to: 
  8.31     (1) increase the number of children participating in 
  8.32  after-school programs who live in the designated neighborhoods; 
  8.33     (2) reduce the juvenile crime rate in the designated 
  8.34  neighborhoods; 
  8.35     (3) reduce the number of police calls involving juveniles 
  8.36  during the afternoon after-school hours; 
  9.1      (4) increase school attendance; 
  9.2      (5) reduce the number of school suspensions; 
  9.3      (6) increase the number of youth engaged in community 
  9.4   service; 
  9.5      (7) increase youth academic achievement; and 
  9.6      (8) increase the skills of youth in computers, the arts, 
  9.7   athletics, and other activities. 
  9.8      Subd. 3.  [PLAN.] By July 1, 1996, each designated 
  9.9   community organization shall develop a plan for an after-school 
  9.10  enrichment program for children ages nine through 13 who reside 
  9.11  in the designated neighborhood served by the community 
  9.12  organization.  Each community organization developing a plan 
  9.13  shall identify points of collaboration with other organizations 
  9.14  and resources available to implement an after-school enrichment 
  9.15  program.  The plan shall include: 
  9.16     (1) collaboration and leverage of community resources that 
  9.17  exist and are effective; 
  9.18     (2) creative outreach to the children; 
  9.19     (3) collaboration of grassroots organizations; 
  9.20     (4) local governments and schools acting as resources; 
  9.21     (5) community control over the design of the enrichment 
  9.22  program; and 
  9.23     (6) the availability of enrichment activities for a minimum 
  9.24  of five days per week after school with future plans to extend 
  9.25  to seven days per week. 
  9.26     Subd. 4.  [BOARD; PLAN APPROVAL; GRANTS.] (a) A plan 
  9.27  developed by a community organization under subdivision 3 shall 
  9.28  be submitted to a review board consisting of three members 
  9.29  appointed by the governor.  When an organization's plan is 
  9.30  approved by the board, the board shall award a grant to the 
  9.31  community organization for the implementation of the plan.  The 
  9.32  board also shall award small amounts of grant money to the 
  9.33  community organization to develop a plan. 
  9.34     (b) The board may develop additional outcomes under 
  9.35  subdivision 2 and plan requirements under subdivision 3. 
  9.36     Sec. 14.  [APPROPRIATION.] 
 10.1      $5,000,000 is appropriated in fiscal year 1996 to the 
 10.2   commissioner of children, families, and learning for the 
 10.3   purposes of section 13.  The appropriation is available until 
 10.4   expended. 
 10.5      Sec. 15.  [EFFECTIVE DATE.] 
 10.6      Sections 13 and 14 are effective the day following final 
 10.7   enactment. 
 10.8      Sec. 16.  Minnesota Statutes 1995 Supplement, section 
 10.9   124.17, subdivision 1d, is amended to read: 
 10.10     Subd. 1d.  [FISCAL YEAR 1997 AFDC PUPIL UNITS.] AFDC pupil 
 10.11  units for fiscal year 1993 and thereafter 1997 must be computed 
 10.12  according to this subdivision.  
 10.13     (a) The AFDC concentration percentage for a district equals 
 10.14  the product of 100 times the ratio of:  
 10.15     (1) the number of pupils enrolled in the district from 
 10.16  families receiving aid to families with dependent children 
 10.17  according to subdivision 1e; to 
 10.18     (2) the number of pupils in average daily membership 
 10.19  according to subdivision 1e enrolled in the district. 
 10.20     (b) The AFDC pupil weighting factor for a district equals 
 10.21  the lesser of one or the quotient obtained by dividing the 
 10.22  district's AFDC concentration percentage by 11.5.  
 10.23     (c) The AFDC pupil units for a district for fiscal year 
 10.24  1993 and thereafter equals the product of:  
 10.25     (1) the number of pupils enrolled in the district from 
 10.26  families receiving aid to families with dependent children 
 10.27  according to subdivision 1e; times 
 10.28     (2) the AFDC pupil weighting factor for the district; times 
 10.29     (3) .67. 
 10.30     Sec. 17.  Minnesota Statutes 1994, section 124.17, 
 10.31  subdivision 1e, is amended to read: 
 10.32     Subd. 1e.  [FISCAL YEAR 1997 AFDC PUPIL COUNTS.] AFDC pupil 
 10.33  counts and average daily membership for subdivisions 1b and 1d 
 10.34  shall be determined according to this subdivision: 
 10.35     (a) For districts where the number of pupils from families 
 10.36  receiving aid to families with dependent children has increased 
 11.1   over the preceding year for each of the two previous years, the 
 11.2   number of pupils enrolled in the district from families 
 11.3   receiving aid to families with dependent children shall be those 
 11.4   counted on October 1 of the previous school year.  The average 
 11.5   daily membership used shall be from the previous school year. 
 11.6      (b) For districts that do not meet the requirement of 
 11.7   paragraph (a), the number of pupils enrolled in the district 
 11.8   from families receiving aid to families with dependent children 
 11.9   shall be the average number of pupils on October 1 of the second 
 11.10  previous school year and October 1 of the previous school year.  
 11.11  The average daily membership used shall be the average number 
 11.12  enrolled in the previous school year and the second previous 
 11.13  school year. 
 11.14     (c) Notwithstanding paragraphs (a) and (b), for charter 
 11.15  schools in the first three years of operation, the number of 
 11.16  pupils enrolled from families receiving aid to families with 
 11.17  dependent children shall be those counted on October 1 of the 
 11.18  current school year.  The average daily membership used shall be 
 11.19  from the current school year. 
 11.20     Sec. 18.  Minnesota Statutes 1994, section 124.17, is 
 11.21  amended by adding a subdivision to read: 
 11.22     Subd. 1f.  [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 
 11.23  year 1998 and thereafter must be computed according to this 
 11.24  subdivision. 
 11.25     (a) The AFDC concentration percentage for a district equals 
 11.26  the product of 100 times the ratio of: 
 11.27     (1) the number of pupils residing in the district from 
 11.28  families receiving aid to families with dependent children 
 11.29  according to subdivision 1g, paragraph (a); 
 11.30     (2) the number of pupils in average daily membership 
 11.31  according to subdivision 1g, paragraph (a), residing in the 
 11.32  district. 
 11.33     (b) The AFDC pupil weighting factor for AFDC pupils 
 11.34  residing in a district equals the lesser of one or the quotient 
 11.35  obtained by dividing the district's AFDC concentration 
 11.36  percentage by 11.5. 
 12.1      (c) The AFDC pupil units for a district for fiscal year 
 12.2   1998 and thereafter for each pupil enrolled in the district from 
 12.3   a family receiving aid to families with dependent children 
 12.4   according to subdivision 1g, paragraph (b), equals the product 
 12.5   of: 
 12.6      (1) the AFDC pupil weighting factor for pupil's district of 
 12.7   residence; times 
 12.8      (2) .67. 
 12.9      Sec. 19.  Minnesota Statutes 1994, section 124.17, is 
 12.10  amended by adding a subdivision to read: 
 12.11     Subd. 1g.  [AFDC PUPIL COUNTS.] (a) AFDC pupil counts and 
 12.12  average daily membership for subdivision 1f, paragraph (a), 
 12.13  shall be determined according to this paragraph. 
 12.14     (1) For districts where the number of resident pupils from 
 12.15  families receiving aid to families with dependent children has 
 12.16  increased over the preceding year for each of the two previous 
 12.17  years, the number of pupils residing in the district from 
 12.18  families receiving aid to families with dependent children shall 
 12.19  be those counted on October 1 of the previous school year.  The 
 12.20  average daily membership used shall be from the previous school 
 12.21  year. 
 12.22     (2) For districts that do not meet the requirement of 
 12.23  paragraph (1), the number of pupils residing in the district 
 12.24  from families receiving aid to families with dependent children 
 12.25  shall be the average number of pupils on October 1 of the second 
 12.26  previous school year and October 1 of the previous school year.  
 12.27  The average daily membership used shall be the average number of 
 12.28  pupils residing in the district in the previous school year and 
 12.29  the second previous school year. 
 12.30     (b) AFDC pupil counts for subdivision 1f, paragraph (b), 
 12.31  shall be determined according to this paragraph. 
 12.32     (1) For districts where the number of pupils from families 
 12.33  receiving aid to families with dependent children enrolled in 
 12.34  the district has increased over the preceding year for each of 
 12.35  the two previous years, the pupils enrolled in the district from 
 12.36  families receiving aid to families with dependent children shall 
 13.1   be those counted on October 1 of the previous school year. 
 13.2      (2) For districts that do not meet the requirement of 
 13.3   paragraph (1), pupils enrolled in the district from families 
 13.4   receiving aid to families with dependent children shall be those 
 13.5   counted on October 1 of the previous school year times one-half, 
 13.6   plus those counted on October 1 of the second previous school 
 13.7   year times one-half. 
 13.8      (3) Notwithstanding clauses (1) and (2), for charter 
 13.9   schools in the first three years of operation, the number of 
 13.10  pupils enrolled from families receiving aid to families with 
 13.11  dependent children shall be those counted on October 1 of the 
 13.12  current school year. 
 13.13     Sec. 20.  [124C.75] [EDUCATION TECHNOLOGY CLEARINGHOUSE AND 
 13.14  UPGRADE SYSTEM.] 
 13.15     Subdivision 1.  [ESTABLISHMENT OF TECHNOLOGY 
 13.16  CLEARINGHOUSE.] Through a competitive grant process, the 
 13.17  commissioner shall establish two or more education technology 
 13.18  clearinghouses.  The purpose of such clearinghouses shall be as 
 13.19  follows: 
 13.20     (1) to serve as centers where businesses or others may 
 13.21  donate new or used computers or other technology for use by 
 13.22  Minnesota public and private elementary and secondary schools 
 13.23  and to upgrade that technology so that it shall be useful to 
 13.24  schools; 
 13.25     (2) to upgrade current district technology to make it more 
 13.26  useful for educational programming; 
 13.27     (3) to inform districts regarding the technology available 
 13.28  through the clearinghouse; 
 13.29     (4) to collaborate with businesses and other potential 
 13.30  donors regarding the types of technology needed as well as how 
 13.31  to make the technology available from the donors to schools 
 13.32  through the clearinghouse. 
 13.33     The clearinghouse will retain the ability to review 
 13.34  equipment for suitability and refuse equipment that does not 
 13.35  meet district needs. 
 13.36     Subd. 2.  [SYSTEM FOR TECHNOLOGY DISTRIBUTION.] The 
 14.1   commissioner shall establish and communicate the process to be 
 14.2   used for districts to access the clearinghouse.  Part of that 
 14.3   process shall include a provision that the business or other 
 14.4   donor may designate the district or school site where the 
 14.5   technology is to be used. 
 14.6      Subd. 3.  [REVENUE USE.] The revenue appropriated for this 
 14.7   section may be used to purchase needed technology for upgrading 
 14.8   the computers and other technology from donors, employing staff 
 14.9   at the technology clearinghouse and upgrade centers, for 
 14.10  informing districts and businesses about the program, and other 
 14.11  uses approved by the commissioner. 
 14.12     Sec. 21.  [124C.76] [COMPUTER HARDWARE AND 
 14.13  TELECOMMUNICATIONS HARDWARE GRANTS TO DISTRICTS.] 
 14.14     Subdivision 1.  [PUBLIC AND PRIVATE PARTNERSHIP.] A program 
 14.15  is established to promote public and private partnership with 
 14.16  school districts for the purchase of computer hardware, network 
 14.17  hardware, and telecommunications hardware. 
 14.18     Subd. 2.  [PROGRAM ADMINISTRATION.] The commissioner of the 
 14.19  department of children, families, and learning will establish 
 14.20  guidelines and an application process to distribute funds to 
 14.21  school districts who can obtain matching funds from either a 
 14.22  public or private source for purchase of new computer, network, 
 14.23  or telecommunications hardware.  Hardware purchased under this 
 14.24  program must be used for support of classroom instruction, the 
 14.25  implementation of computer networks, or support of 
 14.26  telecommunications connectivity.  Funding for this program will 
 14.27  be provided to school districts on the basis of a per pupil 
 14.28  formula.  School districts will provide 40 percent of the 
 14.29  purchase costs of equipment through local and matching funds and 
 14.30  the department will provide 60 percent of the purchase costs 
 14.31  through the per pupil formula.  The commissioner shall establish 
 14.32  a process to distribute any unallocated funds. 
 14.33     Sec. 22.  [124C.77] [AFTER-SCHOOL PROGRAMS.] 
 14.34     The commissioner shall establish a process to initiate a 
 14.35  competitive grant program to enhance the use of technology in 
 14.36  after-school programs.  Eligible organizations include school 
 15.1   districts, private schools, nonprofit community organizations, 
 15.2   public housing agencies, and other successful programs that 
 15.3   serve youth. 
 15.4      Sec. 23.  Laws 1995, First Special Session chapter 3, 
 15.5   article 12, section 12, subdivision 7, is amended to read: 
 15.6      Subd. 7.  [TELECOMMUNICATION ACCESS GRANTS.] For grants to 
 15.7   school districts and regional public library systems to 
 15.8   establish connections to MNet according to section 124C.74: 
 15.9        $5,500,000     .....     1996 
 15.10       $5,000,000 $13,000,000     .....     1997
 15.11     This appropriation is available until June 30, 1997. 
 15.12     Sec. 24.  Laws 1995, First Special Session chapter 3, 
 15.13  article 12, section 12, is amended by adding a subdivision to 
 15.14  read: 
 15.15     Subd. 11.  For education technology clearinghouse and to 
 15.16  upgrade system: 
 15.17       $1,000,000     .....     1997 
 15.18     Sec. 25.  Laws 1995, First Special Session chapter 3, 
 15.19  article 12, section 12, is amended by adding a subdivision to 
 15.20  read: 
 15.21     Subd. 12.  For computer hardware, network hardware, and 
 15.22  telecommunications hardware grants to school districts: 
 15.23       $12,000,000     .....     1997 
 15.24     Sec. 26.  Laws 1995, First Special Session chapter 3, 
 15.25  article 12, section 12, is amended by adding a subdivision to 
 15.26  read: 
 15.27     Subd. 13.  For after-school programs: 
 15.28       $1,000,000     .....     1997 
 15.29     Sec. 27.  [REFERENDUM AUTHORITY; PARK RAPIDS.] 
 15.30     Subdivision 1.  [REVENUE.] Notwithstanding the reduction 
 15.31  required by Minnesota Statutes, section 124A.03, subdivision 3b, 
 15.32  the referendum revenue allowance for independent school district 
 15.33  No. 309, Park Rapids, is $315 per pupil unit.  This referendum 
 15.34  authorization is available for the number of years specified on 
 15.35  the district's referendum ballot held during June 1995. 
 15.36     Subd. 2.  [LEVY RECLASSIFICATION.] Independent school 
 16.1   district No. 309, Park Rapids, may reclassify as payable 1996 
 16.2   referendum levy other payable 1996 levies.  The amount 
 16.3   reclassified may not exceed the difference between the levy 
 16.4   authority authorized in subdivision 1 and the amount of 
 16.5   referendum levy certified by the district for taxes payable in 
 16.6   1996.  Any reclassified levy is not subject to the market value 
 16.7   requirement in Minnesota Statutes, section 124A.03, subdivision 
 16.8   2a. 
 16.9      Sec. 28.  [EFFECTIVE DATE.] 
 16.10     Section 27 is effective the day following final enactment 
 16.11  and applies for revenue for 1996-1997 and later school years. 
 16.12     Sec. 29.  Minnesota Statutes 1995 Supplement, section 
 16.13  124.961, is amended to read: 
 16.14     124.961 [DEBT SERVICE APPROPRIATION.] 
 16.15     (a) $30,054,000 in fiscal year 
 16.16  1996, $27,370,000 $28,228,000 in fiscal year 1997, 
 16.17  and $32,200,000 $33,210,000 in fiscal year 1998 and each year 
 16.18  thereafter is appropriated from the general fund to the 
 16.19  commissioner of children, families, and learning for payment of 
 16.20  debt service equalization aid under section 124.95.  The 1998 
 16.21  appropriation includes $4,830,000 $4,982,000 for 1997 and 
 16.22  $27,370,000 $28,228,000 for 1998. 
 16.23     (b) The appropriations in paragraph (a) must be reduced by 
 16.24  the amount of any money specifically appropriated for the same 
 16.25  purpose in any year from any state fund. 
 16.26     Sec. 30.  [APPROVAL FOR DEBT SERVICE EQUALIZATION AID; 
 16.27  ROYALTON.] 
 16.28     Notwithstanding Minnesota Statutes, section 124.95, 
 16.29  subdivision 2, debt service levy attributable to bonds 
 16.30  authorized at an election conducted in 1995 by independent 
 16.31  school district No. 485, Royalton, qualifies for debt service 
 16.32  equalization aid.  
 16.33     Sec. 31.  [EFFECTIVE DATE.] 
 16.34     Sections 29 and 30 are effective the day following final 
 16.35  enactment and apply to debt service equalization aid payments 
 16.36  for fiscal year 1997 and thereafter. 
 17.1      Sec. 32.  Minnesota Statutes 1995 Supplement, section 
 17.2   124.195, subdivision 12, is amended to read: 
 17.3      Subd. 12.  [AID ADJUSTMENT FOR TRA CONTRIBUTION RATE 
 17.4   CHANGE.] (a) The department of children, families, and learning 
 17.5   shall reduce general education aid or any other aid paid in a 
 17.6   fiscal year directly to school districts, intermediate school 
 17.7   districts, education districts, education cooperative service 
 17.8   units, special education cooperatives, secondary vocational 
 17.9   cooperatives, regional management information centers, or 
 17.10  another.  Any district or cooperative unit providing elementary 
 17.11  or secondary education services that is prohibited from 
 17.12  receiving direct state aids by section 124.193 or 124.32, 
 17.13  subdivision 12, is exempt from this reduction.  The reduction 
 17.14  shall equal the following percent of salaries paid in a fiscal 
 17.15  year by the entity to members of the teachers retirement 
 17.16  association established in chapter 354.  However, salaries paid 
 17.17  to members of the association who are employed by a technical 
 17.18  college shall be excluded from this calculation: 
 17.19     (1) in fiscal year 1991, 0.84 percent, 
 17.20     (2) in fiscal year 1992 and later years, the greater of 
 17.21     (i) zero, or 
 17.22     (ii) 4.48 percent less the additional employer contribution 
 17.23  rate established under section 354.42, subdivision 5.  
 17.24     (b) In fiscal year 1991, this reduction is estimated to 
 17.25  equal $14,260,000. 
 17.26     Sec. 33.  Minnesota Statutes 1995 Supplement, section 
 17.27  120.064, subdivision 15, is amended to read: 
 17.28     Subd. 15.  [TRANSPORTATION.] (a) By July 1 of each year, a 
 17.29  charter school shall notify the district in which the school is 
 17.30  located and the department of children, families, and learning 
 17.31  if it will provide transportation for pupils enrolled at the 
 17.32  school for the fiscal year. 
 17.33     (b) If a charter school elects to provide transportation 
 17.34  for pupils, the transportation shall be provided by the charter 
 17.35  school within the district in which the charter school is 
 17.36  located.  The state shall pay transportation aid to the charter 
 18.1   school according to section 124.248, subdivision 1a. 
 18.2      For pupils who reside outside the district in which the 
 18.3   charter school is located, the charter school is not required to 
 18.4   provide or pay for transportation between the pupil's residence 
 18.5   and the border of the district in which the charter school is 
 18.6   located.  A parent may be reimbursed by the charter school for 
 18.7   costs of transportation from the pupil's residence to the border 
 18.8   of the district in which the charter school is located if the 
 18.9   pupil is from a family whose income is at or below the poverty 
 18.10  level, as determined by the federal government.  The 
 18.11  reimbursement may not exceed the pupil's actual cost of 
 18.12  transportation or 15 cents per mile traveled, whichever is 
 18.13  less.  Reimbursement may not be paid for more than 250 miles per 
 18.14  week.  
 18.15     At the time a pupil enrolls in a charter school, the 
 18.16  charter school shall provide the parent or guardian with 
 18.17  information regarding the transportation.  
 18.18     (c) If a charter school does not elect to provide 
 18.19  transportation, transportation for pupils enrolled at the school 
 18.20  shall be provided by the district in which the school is 
 18.21  located, according to sections 120.062, subdivision 9, and 
 18.22  123.39, subdivision 6, for a pupil residing in the same district 
 18.23  in which the charter school is located.  Transportation may be 
 18.24  provided by the district in which the school is located, 
 18.25  according to sections 120.062, subdivision 9, and 123.39, 
 18.26  subdivision 6, for a pupil residing in a different district. 
 18.27     Sec. 34.  Minnesota Statutes 1995 Supplement, section 
 18.28  124.225, subdivision 8l, is amended to read: 
 18.29     Subd. 8l.  [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 
 18.30  that enrolls nonresident pupils in programs under sections 
 18.31  120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 
 18.32  126.22, may provide authorized transportation to the pupil 
 18.33  within the attendance area for the school that the pupil 
 18.34  attends.  A district shall also provide authorized 
 18.35  transportation within the attendance area to a pupil enrolled in 
 18.36  a charter school under section 120.064, if the charter school 
 19.1   does not elect to provide transportation according to section 
 19.2   120.064, subdivision 15.  The state shall pay transportation aid 
 19.3   attributable to the pupil to the nonresident district according 
 19.4   to this section.  The resident district need not provide or pay 
 19.5   for transportation between the pupil's residence and the 
 19.6   district's border. 
 19.7      Sec. 35.  Laws 1995, First Special Session chapter 3, 
 19.8   article 11, section 21, subdivision 2, is amended to read: 
 19.9      Subd. 2.  [DEPARTMENT.] For the department of education: 
 19.10       $23,150,000 $24,875,000     .....     1996
 19.11       $21,803,000 $23,538,000     .....     1997
 19.12     (a) Any balance in the first year does not cancel but is 
 19.13  available in the second year. 
 19.14     (b) $21,000 each year is from the trunk highway fund. 
 19.15     (c) $522,000 each year is for the academic excellence 
 19.16  foundation. 
 19.17     Up to $50,000 each year is contingent upon the match of $1 
 19.18  in the previous year from private sources consisting of either 
 19.19  direct monetary contributions or in-kind contributions of 
 19.20  related goods or services, for each $1 of the appropriation.  
 19.21  The commissioner of education must certify receipt of the money 
 19.22  or documentation for the private matching funds or in-kind 
 19.23  contributions.  The unencumbered balance from the amount 
 19.24  actually appropriated from the contingent amount in 1996 does 
 19.25  not cancel but is available in 1997.  The amount carried forward 
 19.26  must not be used to establish a larger annual base appropriation 
 19.27  for later fiscal years. 
 19.28     (d) $204,000 each year is for the state board of education. 
 19.29     (e) $227,000 each year is for the board of teaching. 
 19.30     (f) $775,000 each year is for educational effectiveness 
 19.31  programs according to Minnesota Statutes, sections 121.602 and 
 19.32  121.608. 
 19.33     (g) $60,000 each year is for contracting with the state 
 19.34  fire marshal to provide the services required according to 
 19.35  Minnesota Statutes, section 121.1502. 
 19.36     (h) $400,000 each year is for health and safety management 
 20.1   assistance contracts under Minnesota Statutes, section 124.83. 
 20.2      (i) The expenditures of federal grants and aids as shown in 
 20.3   the biennial budget document and its supplements are approved 
 20.4   and appropriated and shall be spent as indicated. 
 20.5      (j) The commissioner shall maintain no more than five total 
 20.6   complement in the categories of commissioner, deputy 
 20.7   commissioner, assistant commissioner, assistant to the 
 20.8   commissioner, and executive assistant. 
 20.9      The department of education may establish full-time, 
 20.10  part-time, or seasonal positions as necessary to carry out 
 20.11  assigned responsibilities and missions.  Actual employment 
 20.12  levels are limited by the availability of state funds 
 20.13  appropriated for salaries, benefits, and agency operations or 
 20.14  funds available from other sources for such purposes. 
 20.15     (k) The department of education shall develop a performance 
 20.16  report on the quality of its programs and services.  The report 
 20.17  must be consistent with the process specified in Minnesota 
 20.18  Statutes, sections 15.90 to 15.92.  The goals, objectives, and 
 20.19  measures of this report must be developed in cooperation with 
 20.20  the chairs of the finance divisions of the education committees 
 20.21  of the house of representatives and senate, the department of 
 20.22  finance, and the office of legislative auditor.  The report 
 20.23  prepared in 1995 must include a complete set of goals, 
 20.24  objectives, and measures for the department.  The report 
 20.25  presented in 1996 and subsequent years must include data to 
 20.26  indicate the progress of the department in meeting its goals and 
 20.27  objectives. 
 20.28     The department of education must present a plan for a 
 20.29  biennial report on the quality and performance of key education 
 20.30  programs in Minnesota's public early childhood, elementary, 
 20.31  middle, and secondary education programs.  To the extent 
 20.32  possible, the plan must be consistent with Minnesota Statutes, 
 20.33  sections 15.90 to 15.92.  The department must consult with the 
 20.34  chairs of the finance divisions of the education committees of 
 20.35  the house of representatives and senate, the department of 
 20.36  finance, and the office of legislative auditor in developing 
 21.1   this plan.  The plan for this report must be presented in 1995 
 21.2   and the first biennial report presented in 1996. 
 21.3      (l) The commissioner of education shall perform a 
 21.4   facilities standards evaluation of public elementary and 
 21.5   secondary facilities in the state.  This evaluation shall 
 21.6   include a measure of the following: 
 21.7      (1) the physical condition of education facilities; 
 21.8      (2) the level of utilization relative to the capacity of 
 21.9   education facilities; 
 21.10     (3) the intensity of technological use in both 
 21.11  administrative and instructional areas in education facilities; 
 21.12     (4) the alignment between education programs in place and 
 21.13  the structure of education facilities; and 
 21.14     (5) an estimate of facility construction over the next 
 21.15  decade. 
 21.16     This evaluation may be based on a sample of facilities but 
 21.17  must include geographic breakdowns of the state. 
 21.18     The report shall indicate which construction and repair of 
 21.19  district facilities is required to bring a district into 
 21.20  compliance with fire safety codes, occupational safety and 
 21.21  health requirements, and the Americans with Disabilities Act.  
 21.22     The commissioner shall recommend to the 1996 legislature 
 21.23  standards for the review and comment process under Minnesota 
 21.24  Statutes, section 121.15.  The standards must integrate the use 
 21.25  of technology, both current and potential, flexible scheduling, 
 21.26  and program adjustments relative to implementation of the 
 21.27  graduation rule. 
 21.28     (m) $120,000 is for a feasibility and design study to 
 21.29  develop a statewide student performance accountability report.  
 21.30  The department must identify and assess the current availability 
 21.31  of critical data-based information about student performance and 
 21.32  feasibility of using information from the existing sources, 
 21.33  recommend additional data-based elements and data collection 
 21.34  strategies that will provide for ongoing assessment of 
 21.35  educational reform and improvement, and recommend methods for 
 21.36  improving the coordination and dissemination of local 
 22.1   accountability reports as part of a statewide reporting system.  
 22.2   The study must include a statewide implementation and budget 
 22.3   plan.  The study process must involve other government units, 
 22.4   school and citizen leaders, and members of higher education 
 22.5   concerned with the education and development of children and 
 22.6   youth.  It must also consider ways to access the research and 
 22.7   development capacity of institutions of higher education in 
 22.8   Minnesota.  The commissioner shall report the results of the 
 22.9   study to the education committees of the legislature and the 
 22.10  state board of education by February 1, 1996. 
 22.11     (n) $1,000,000 in fiscal year 1996 is for grants to special 
 22.12  school district No. 1, Minneapolis, and independent school 
 22.13  district No. 625, St. Paul, for after school enrichment pilot 
 22.14  programs targeted towards junior high and middle school 
 22.15  students.  These programs shall be developed collaboratively 
 22.16  with city government, park boards, family services 
 22.17  collaboratives, and any other community organizations offering 
 22.18  similar programming.  Any balance remaining in the first year 
 22.19  does not cancel but is available in the second year. 
 22.20     (o) $188,000 each year is appropriated from the special 
 22.21  revenue fund for the graduation rule.  The department 
 22.22  appropriation is to be used to fund continued assessment and 
 22.23  standards development and piloting; to broaden public 
 22.24  understanding through communication; to continue development of 
 22.25  learning benchmarks; for ongoing statewide assessment efforts; 
 22.26  to develop system performance standards; and to provide 
 22.27  technical assistance to schools throughout the state.  The 
 22.28  appropriation from the special revenue fund is to be used for 
 22.29  appropriate development efforts in health-related standards and 
 22.30  assessments.  Any amount of this appropriation does not cancel 
 22.31  and shall be carried forward to the following fiscal year.  
 22.32  Notwithstanding any law to the contrary, the commissioner may 
 22.33  contract for national expertise and related services in each of 
 22.34  these development areas.  Notwithstanding Minnesota Statutes, 
 22.35  section 15.53, subdivision 2, the commissioner of education may 
 22.36  contract with a school district for a period no longer than five 
 23.1   consecutive years for the services of an educator to work in the 
 23.2   development, implementation, or both, of the graduation rule.  
 23.3   The commissioner may contract for services and expertise as 
 23.4   necessary for development and implementation of the graduation 
 23.5   standards.  Notwithstanding any law to the contrary, the 
 23.6   contracts are not subject to the contract certification 
 23.7   procedures of the commissioner of administration or of Minnesota 
 23.8   Statutes, chapter 16B, and are not subject to or included in any 
 23.9   spending limitations on contracts. 
 23.10     (p) $600,000 in 1996 and $350,000 in 1997 is for transition 
 23.11  aid for information support. 
 23.12     (q) Up to $50,000 each year is for grants to school 
 23.13  districts for mentorship cooperative ventures between school 
 23.14  districts and post-secondary teacher preparation institutions 
 23.15  for alternative licensure programs according to Minnesota 
 23.16  Statutes, section 125.188. 
 23.17     (r) Up to $50,000 each year is for GED coordination. 
 23.18     Sec. 36.  Laws 1995, First Special Session chapter 3, 
 23.19  article 11, section 21, is amended by adding a subdivision to 
 23.20  read: 
 23.21     Subd. 4.  [LITIGATION COSTS.] For the department of 
 23.22  children, families, and learning for costs associated with 
 23.23  desegregation litigation. 
 23.24       $298,000     .....     1996 
 23.25       $433,000     .....     1997 
 23.26     Sec. 37.  Laws 1995, First Special Session chapter 3, 
 23.27  article 11, section 22, is amended to read: 
 23.28     Sec. 22.  [APPROPRIATIONS; MINNESOTA CENTER FOR ARTS 
 23.29  EDUCATION.] 
 23.30     The sums indicated in this section are appropriated from 
 23.31  the general fund to the Minnesota center for arts education for 
 23.32  the fiscal years designated: 
 23.33      $5,217,000 $5,330,000     .....     1996
 23.34      $5,217,000 $5,456,000     .....     1997
 23.35     Of the fiscal year 1996 appropriation, $154,000 is to fund 
 23.36  artist and arts organization participation in the education 
 24.1   residency and education technology projects, $75,000 is for 
 24.2   school support for the residency project, and $121,000 is for 
 24.3   further development of the partners:  arts and school for 
 24.4   students (PASS) program, including pilots.  Of the fiscal year 
 24.5   1997 appropriation, $154,000 is to fund artist and arts 
 24.6   organizations participation in the education residency project, 
 24.7   $75,000 is for school support for the residency project, and 
 24.8   $121,000 is to fund the PASS program, including additional 
 24.9   pilots.  The guidelines for the education residency project and 
 24.10  the pass program shall be developed and defined by the Minnesota 
 24.11  arts board.  The Minnesota arts board shall participate in the 
 24.12  review and allocation process.  The center for arts education 
 24.13  shall cooperate with the Minnesota arts board to fund these 
 24.14  projects. 
 24.15     Any balance remaining in the first year does not cancel, 
 24.16  but is available in the second year. 
 24.17     The Minnesota center for arts education may establish 
 24.18  full-time, part-time, or seasonal positions as necessary to 
 24.19  carry out assigned responsibilities and missions.  Actual 
 24.20  employment levels are limited by the availability of state funds 
 24.21  appropriated for salaries, benefits and agency operations or 
 24.22  funds available from other sources for such purposes.  
 24.23     In the next biennial budget, the Minnesota center for arts 
 24.24  education must assess its progress in meeting its established 
 24.25  performance measures and inform the legislature on the content 
 24.26  of that assessment.  The information must include an assessment 
 24.27  of its progress by consumers and employees. 
 24.28     Sec. 38.  Laws 1995, First Special Session chapter 3, 
 24.29  article 11, section 23, is amended to read: 
 24.30     Sec. 23.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
 24.31     The sums indicated in this section are appropriated from 
 24.32  the general fund to the department of education for the 
 24.33  Faribault academies for the fiscal years designated:  
 24.34       $8,075,000 $8,316,000     .....     1996
 24.35       $8,075,000 $8,526,000     .....     1997 
 24.36     Any balance in the first year does not cancel but is 
 25.1   available in the second year. 
 25.2      The state board of education may establish full-time, 
 25.3   part-time, or seasonal positions as necessary to carry out 
 25.4   assigned responsibilities and missions of the Faribault 
 25.5   academies.  Actual employment levels are limited by the 
 25.6   availability of state funds appropriated for salaries, benefits 
 25.7   and agency operations or funds available from other sources for 
 25.8   such purposes. 
 25.9      In the next biennial budget, the academies must assess 
 25.10  their progress in meeting the established performance measures 
 25.11  for the Faribault academies and inform the legislature on the 
 25.12  content of that assessment.  The information must include an 
 25.13  assessment of its progress by consumers and employees. 
 25.14     Sec. 39.  Minnesota Statutes 1995 Supplement, section 
 25.15  121.904, subdivision 4a, is amended to read: 
 25.16     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
 25.17  settlement revenue" means the current, delinquent, and 
 25.18  manufactured home property tax receipts collected by the county 
 25.19  and distributed to the school district, including distributions 
 25.20  made pursuant to section 279.37, subdivision 7, and excluding 
 25.21  the amount levied pursuant to section 124.914, subdivision 1. 
 25.22     (b) In June of each year, the school district shall 
 25.23  recognize as revenue, in the fund for which the levy was made, 
 25.24  the lesser of:  
 25.25     (1) the May, June, and July school district tax settlement 
 25.26  revenue received in that calendar year; or 
 25.27     (2) the sum of the state aids and credits enumerated in 
 25.28  section 124.155, subdivision 2, which are for the fiscal year 
 25.29  payable in that fiscal year plus an amount equal to the levy 
 25.30  recognized as revenue in June of the prior year plus 48 18.3 
 25.31  percent for fiscal year 1996 and 48 percent for fiscal year 1997 
 25.32  and thereafter of the amount of the levy certified in the prior 
 25.33  calendar year according to section 124A.03, subdivision 2, plus 
 25.34  or minus auditor's adjustments, not including levy portions that 
 25.35  are assumed by the state; except that for fiscal year 1997, 
 25.36  districts qualifying under this clause shall recognize the sum 
 26.1   of state aids and credits enumerated in section 124.155, 
 26.2   subdivision 2, plus an amount equal to the levy that would have 
 26.3   been recognized in June of the prior year if the tax shift 
 26.4   recognition percent had been 48 percent plus 48 percent of the 
 26.5   levy certified in the prior calendar year according to section 
 26.6   124A.03, subdivision 2, plus or minus auditor's adjustments, not 
 26.7   including levy portions that are assumed by the state; or 
 26.8      (3) 48 18.3 percent for fiscal year 1996, 48 percent for 
 26.9   fiscal year 1997 and thereafter of the amount of the levy 
 26.10  certified in the prior calendar year, plus or minus auditor's 
 26.11  adjustments, not including levy portions that are assumed by the 
 26.12  state, which remains after subtracting, by fund, the amounts 
 26.13  levied for the following purposes:  
 26.14     (i) reducing or eliminating projected deficits in the 
 26.15  reserved fund balance accounts for unemployment insurance and 
 26.16  bus purchases; 
 26.17     (ii) statutory operating debt pursuant to section 124.914, 
 26.18  subdivision 1; 
 26.19     (iii) retirement and severance pay pursuant to sections 
 26.20  122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
 26.21  124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
 26.22  1975, chapter 261, section 4; 
 26.23     (iv) amounts levied for bonds issued and interest thereon, 
 26.24  amounts levied for debt service loans and capital loans, amounts 
 26.25  levied for down payments under section 124.82, subdivision 3, 
 26.26  and amounts levied pursuant to section 136C.411; and 
 26.27     (v) amounts levied under section 124.755.  
 26.28     (c) In July of each year, the school district shall 
 26.29  recognize as revenue that portion of the school district tax 
 26.30  settlement revenue received in that calendar year and not 
 26.31  recognized as revenue for the previous fiscal year pursuant to 
 26.32  clause (b).  
 26.33     (d) All other school district tax settlement revenue shall 
 26.34  be recognized as revenue in the fiscal year of the settlement. 
 26.35  Portions of the school district levy assumed by the state, 
 26.36  including prior year adjustments and the amount to fund the 
 27.1   school portion of the reimbursement made pursuant to section 
 27.2   273.425, shall be recognized as revenue in the fiscal year 
 27.3   beginning in the calendar year for which the levy is payable. 
 27.4      Sec. 40.  [REPEALER.] 
 27.5      Minnesota Statutes 1995 Supplement, section 121.904, 
 27.6   subdivisions 4c and 4d, are repealed. 
 27.7                              ARTICLE 2 
 27.8                           HIGHER EDUCATION 
 27.9   Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
 27.10     The sums in the columns headed "APPROPRIATIONS" are 
 27.11  appropriated from the general fund, or another named fund, to 
 27.12  the agencies and for the purposes specified to be available for 
 27.13  the fiscal years indicated for each purpose. 
 27.14                                             APPROPRIATIONS 
 27.15                                         Available for the Year 
 27.16                                             Ending June 30 
 27.17                                            1996         1997 
 27.18  Sec. 2.  HIGHER EDUCATION 
 27.19  SERVICES OFFICE                    $      -0-     $      200,000 
 27.20  The higher education services office 
 27.21  shall award grants to public or private 
 27.22  nonprofit organizations in the cities 
 27.23  of Minneapolis and St. Paul for the 
 27.24  purpose of hiring college students to 
 27.25  provide after-school tutoring, 
 27.26  mentoring, academic support, or other 
 27.27  enrichment programs to students in 
 27.28  grades four through eight.  College 
 27.29  students hired must be enrolled at 
 27.30  least half-time in a Minnesota public 
 27.31  or private post-secondary institution. 
 27.32  This appropriation is nonrecurring. 
 27.33  Sec. 3.  MINNESOTA STATE COLLEGES 
 27.34  AND UNIVERSITIES                         -0-             50,000 
 27.35  This appropriation is for Bemidji State 
 27.36  University to establish an applied 
 27.37  research, design, and development 
 27.38  center.  The center will contract with 
 27.39  Minnesota businesses and industries to 
 27.40  conduct applied research.  This 
 27.41  appropriation is nonrecurring. 
 27.42  Sec. 4.  UNIVERSITY OF MINNESOTA
 27.43  (a) Reengineer Health Care  
 27.44  Education     
 27.45         -0-          5,000,000
 27.46  This appropriation is for the academic 
 27.47  health center to redesign and 
 27.48  restructure its health care education 
 27.49  programs.  These funds may be used for 
 27.50  curriculum redesign, to underwrite the 
 28.1   development of new or expanded 
 28.2   programs, and cover the costs of 
 28.3   downsizing programs and retraining 
 28.4   faculty and staff.  This appropriation 
 28.5   is nonrecurring. 
 28.6   (b) Academic Health Center  
 28.7   Technology    
 28.8          -0-          9,500,000
 28.9   This appropriation is for the academic 
 28.10  health center for the development and 
 28.11  purchase of new information technology 
 28.12  to improve the delivery of health care 
 28.13  education programs. 
 28.14  Sec. 5.  DEPARTMENT OF      
 28.15  ADMINISTRATION                           -0-            250,000 
 28.16  This appropriation is for the 
 28.17  information policy office to select and 
 28.18  plan for the implementation of a 
 28.19  statewide on-line information system 
 28.20  for the libraries of Minnesota.  These 
 28.21  funds are to determine the 
 28.22  functionality and compatibility needed 
 28.23  for the system, and to evaluate 
 28.24  possible systems and vendors.  The 
 28.25  system selected shall be open to all 
 28.26  Minnesota academic, school, state 
 28.27  agency, public, and private libraries.  
 28.28  The IPO shall manage the selection and 
 28.29  planning process with the review and 
 28.30  comment of the library planning task 
 28.31  force and in coordination with all 
 28.32  possible participants in the new system.
 28.33     Sec. 6.  [POST-SECONDARY FINANCE POLICY.] 
 28.34     Subdivision 1.  [FINANCE POLICY.] It is the policy of the 
 28.35  state to invest in the development of its human capital through 
 28.36  appropriations that support post-secondary education and 
 28.37  training, research, and the application and dissemination of new 
 28.38  knowledge for the public benefit.  It is the policy of the state 
 28.39  to set performance measures to regularly evaluate the outcomes 
 28.40  of its investments in post-secondary education, research, and 
 28.41  public service. 
 28.42     Subd. 2.  [PERFORMANCE MEASURES.] Each post-secondary 
 28.43  system shall establish at least one measurable performance 
 28.44  outcome for each category of direct state appropriation it 
 28.45  receives.  Each system shall report on its performance for each 
 28.46  of these outcomes in the state's biennial performance report. 
 28.47     Subd. 3.  [APPROPRIATIONS FOR INSTRUCTION.] The direct 
 28.48  appropriations for instruction to the University of Minnesota 
 28.49  and to the Minnesota state colleges and universities shall be 
 29.1   used to support the direct and indirect costs of providing 
 29.2   programs of instruction that award credit for a degree. 
 29.3      Subd. 4.  [INSTRUCTIONAL PROGRAM REPORTS.] (a) Each public 
 29.4   post-secondary system shall report in the biennial budget 
 29.5   document data on the annual costs, enrollment, and outputs for 
 29.6   all programs of instruction that award credit leading to a 
 29.7   degree. 
 29.8      (b) The report shall present data by the following levels 
 29.9   of instruction, where applicable:  lower division undergraduate 
 29.10  level, upper division undergraduate level, graduate level, and 
 29.11  professional graduate level. 
 29.12     (1) The enrollment data shall include total full-year 
 29.13  equivalent enrollment and subtotals for the following 
 29.14  categories, where applicable: 
 29.15     (i) legal residents of Minnesota; 
 29.16     (ii) residents of other states or provinces with which 
 29.17  Minnesota has a reciprocity agreement, and students enrolled 
 29.18  under the Midwest Compact student exchange program; and 
 29.19     (iii) students who are concurrently enrolled in a public 
 29.20  secondary school under the post-secondary enrollment options act.
 29.21     (2) The output data shall be the annual number of degrees 
 29.22  awarded. 
 29.23     (3) The cost data shall be reported in total and average 
 29.24  amounts for the indirect, direct, and fully allocated costs of 
 29.25  instruction. 
 29.26     Sec. 7.  [REPEALER.] 
 29.27     Minnesota Statutes 1994, sections 135A.01; 135A.02; 
 29.28  135A.03; 135A.031, subdivisions 1, 3, 4, 5, and 6; 135A.032; 
 29.29  135A.033; and 135A.034; Minnesota Statutes 1995 Supplement, 
 29.30  section 135A.031, subdivision 2, are repealed. 
 29.31                             ARTICLE 3 
 29.32                     HEALTH AND HUMAN SERVICES
 29.33  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
 29.34     The sums in the columns headed "APPROPRIATIONS" are 
 29.35  appropriated or reductions from appropriations from the general 
 29.36  fund, or another named fund, to the agencies and for the 
 30.1   purposes specified to be available for the fiscal years 
 30.2   indicated for each purpose. 
 30.3                           SUMMARY BY FUND
 30.4                                           1996           1997
 30.5   General                           $ (114,693,000)$  (51,028,000)
 30.6   State Government Special
 30.7   Revenue Fund                              50,000        100,000
 30.8                                              APPROPRIATIONS 
 30.9                                          Available for the Year 
 30.10                                             Ending June 30 
 30.11                                          1996           1997
 30.12  Sec. 2.  COMMISSIONER OF
 30.13  HUMAN SERVICES                    $ (114,693,000)$  (65,028,000)
 30.14  Subdivision 1.  Finance
 30.15  and Management
 30.16         -0-            250,000
 30.17  Subd. 2.  Life Skills
 30.18  Self-Sufficiency
 30.19      (3,462,000)      (146,000)
 30.20  The amounts that may be spent from this 
 30.21  appropriation for each purpose are as 
 30.22  follows: 
 30.23  (a) Chemical Dependency 
 30.24  Consolidated Treatment 
 30.25      (3,462,000)    (1,346,000)
 30.26  (b) Administration and Other
 30.27  Grants  
 30.28         -0-          1,200,000
 30.29  Subd. 3.  Children's Program
 30.30         -0-          1,500,000
 30.31  Subd. 4.  Economic
 30.32  Self-Sufficiency
 30.33     (13,697,000)   (17,544,000)
 30.34  The amounts that may be spent from this 
 30.35  appropriation for each purpose are as 
 30.36  follows: 
 30.37  (a) AFDC Grants
 30.38     (13,092,000)   (16,794,000)
 30.39  (b) MFIP Grants   
 30.40         -0-             64,000
 30.41  (c) Child Care Entitlement
 30.42  Grants  
 30.43      (1,258,000)      (871,000)
 31.1   (d) General Assistance
 31.2   Grants 
 31.3          958,000        470,000
 31.4   (e) MSA Grants 
 31.5         (740,000)      (823,000)
 31.6   (f) Administration and
 31.7   Other Grants 
 31.8          435,000        410,000
 31.9   Subd. 5.  Health Care
 31.10     (97,534,000)   (49,088,000)
 31.11  The amounts that may be spent from this 
 31.12  appropriation for each purpose are as 
 31.13  follows: 
 31.14  (a) Group Residential Housing
 31.15  Grants  
 31.16      (3,318,000)    (4,501,000)
 31.17  (b) MA Long-Term
 31.18  Facilities  
 31.19     (19,997,000)    (9,014,000)
 31.20  (c) MA Long-Term Care Waivers
 31.21  and Home Care 
 31.22      (2,313,000)       318,000
 31.23  (d) MA Managed Care and Fee
 31.24  for Service   
 31.25     (20,231,000)    (9,331,000)
 31.26  (e) General Assistance Medical
 31.27  Care  
 31.28     (52,145,000)   (30,375,000)
 31.29  (f) Administration and Other
 31.30  Grants
 31.31         470,000      3,815,000
 31.32  Administrative money appropriated for 
 31.33  the prepaid medical assistance program 
 31.34  may be transferred between grants and 
 31.35  nongrant administration costs. 
 31.36  Sec. 3.  COMMISSIONER OF HEALTH          -0-         14,000,000
 31.37  $4,000,000 is appropriated to the 
 31.38  commissioner for core public health 
 31.39  functions.  Of this amount, up to five 
 31.40  percent is available to the 
 31.41  commissioner for administrative and 
 31.42  technical support of community health 
 31.43  boards.  The commissioner is 
 31.44  responsible for the distribution of 
 31.45  these funds to community health boards 
 31.46  in qualifying community health services 
 31.47  areas according to the existing 
 31.48  community health services subsidy 
 32.1   formula.  Funds distributed shall not 
 32.2   be used to displace current funding 
 32.3   appropriations or to provide individual 
 32.4   personal health care services.  These 
 32.5   funds shall be distributed only to 
 32.6   those community health services areas 
 32.7   which are participating in the state's 
 32.8   prepaid medical assistance program.  
 32.9   Base funding for core public health 
 32.10  functions shall be transferred from the 
 32.11  general fund to the health care access 
 32.12  fund for the fiscal year beginning July 
 32.13  1, 1997. 
 32.14  Sec. 4.  MEDICAL PRACTICES BOARD          50,000        100,000
 32.15  $50,000 in fiscal year 1996 and 
 32.16  $100,000 in fiscal year 1997 is 
 32.17  appropriated from the state government 
 32.18  special revenue fund to the board of 
 32.19  medical practice for the health 
 32.20  professionals services program and is 
 32.21  added to the appropriation in Laws 
 32.22  1995, chapter 207, article 1, section 
 32.23  5, subdivision 6. 
 32.24     Sec. 5.  [62J.69] [MEDICAL EDUCATION AND RESEARCH TRUST 
 32.25  FUND.] 
 32.26     Subdivision 1.  [PURPOSE.] Since all health care 
 32.27  stakeholders, as well as society at large, benefit from medical 
 32.28  education and health care research, and the costs of these 
 32.29  activities should be fairly allocated across the health care 
 32.30  system, the commissioner of health shall appoint an advisory 
 32.31  commission to assist in the development and implementation of a 
 32.32  mechanism by which to administer a special trust fund to be set 
 32.33  up for funding the activities of medical education and research. 
 32.34     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
 32.35  following definitions apply: 
 32.36     (a) "Medical education" means the accredited clinical 
 32.37  training of physicians (medical students and residents), 
 32.38  dentists, advanced practice nurses (clinical nurse specialist, 
 32.39  certified registered nurse anesthetists, nurse practitioners, 
 32.40  and certified nurse midwives), and physician assistants. 
 32.41     (b) "Clinical training" means training that occurs in both 
 32.42  inpatient and ambulatory care settings. 
 32.43     (c) "Trainee" means students involved in an accredited 
 32.44  clinical training program for medical education as defined in 
 32.45  paragraph (a). 
 32.46     (d) "Health care research" means approved clinical, 
 33.1   outcomes, and health services investigations that are funded by 
 33.2   patient out-of-pocket expenses or a third-party payor. 
 33.3      (e) "Commissioner" means the commissioner of health. 
 33.4      Subd. 3.  [ALLOCATION AND FUNDING FOR MEDICAL EDUCATION AND 
 33.5   RESEARCH.] (a) The commissioner shall establish a trust fund for 
 33.6   the purposes of funding medical education and research 
 33.7   activities in the state of Minnesota. 
 33.8      (b) By January 1, 1997, the commissioner shall appoint a 
 33.9   commission to provide advice and oversight on the distribution 
 33.10  of funds from the medical education and research trust fund.  
 33.11  The commissioner shall:  (1) consider the interest of all 
 33.12  stakeholders when selecting commission members; (2) select 
 33.13  members that represent both urban and rural interest; and (3) 
 33.14  select members that include ambulatory care as well as inpatient 
 33.15  perspectives.  The commissioner shall appoint to the commission 
 33.16  representatives of the following groups:  medical researchers, 
 33.17  public and private academic medical centers, managed care 
 33.18  organizations, Blue Cross and Blue Shield of Minnesota, 
 33.19  commercial carriers, Minnesota Medical Association, nursing, 
 33.20  employers, and other relevant stakeholders, including 
 33.21  consumers.  The commission is governed by section 15.059 for 
 33.22  membership terms and removal of members and will sunset on June 
 33.23  30, 1999. 
 33.24     (c) Eligible applicants for funds include institutions, 
 33.25  facilities, or training programs directly involved in medical 
 33.26  education training.  Applications must be received by September 
 33.27  30 of each year for distribution by January 1 of the following 
 33.28  year.  An application for funds must include the following: 
 33.29     (1) the official name and address of the institution, 
 33.30  facility, or program that is applying for funding; 
 33.31     (2) the name, title, and business address of those persons 
 33.32  responsible for administering the funds; 
 33.33     (3) the total number, type, and specialty orientation of 
 33.34  eligible trainees in each medical education program applying for 
 33.35  funds; 
 33.36     (4) audited clinical training costs per trainee for each 
 34.1   medical education program; 
 34.2      (5) a description of current sources of funding for medical 
 34.3   education costs including a description and dollar amount of all 
 34.4   state and federal financial support; 
 34.5      (6) other revenue received for the purposes of clinical 
 34.6   training; 
 34.7      (7) a statement identifying unfunded costs; and 
 34.8      (8) other supporting information the commissioner, with 
 34.9   advice from the advisory commission, determines is necessary for 
 34.10  the equitable distribution of funds. 
 34.11     (d) The commissioner shall distribute medical education 
 34.12  funds to all qualifying applicants based on the following basic 
 34.13  criteria:  (1) total medical education funds available; (2) 
 34.14  total trainees in each eligible education program; (3) the 
 34.15  statewide average cost per trainee, by type of trainee, in each 
 34.16  medical education program; and (4) a program incentive factor to 
 34.17  be determined each year by the commissioner in consultation with 
 34.18  the advisory commission.  The program incentive factor should 
 34.19  reflect the priorities and needs of the state in terms of health 
 34.20  care workforce.  The incentive factor may not be used if the 
 34.21  commissioner finds (i) that workforce needs and priorities have 
 34.22  not been adequately documented, or (ii) if market forces are 
 34.23  adequately addressing workforce requirements.  Funds distributed 
 34.24  shall not be used to displace current funding appropriations 
 34.25  from federal or state sources. 
 34.26     (e) Medical education programs receiving funds from the 
 34.27  trust fund must submit annual cost and program reports based on 
 34.28  criteria established by the commissioner.  The reports must 
 34.29  include:  
 34.30     (1) the total number of eligible trainees in the program; 
 34.31     (2) the type of programs and residencies funded; 
 34.32     (3) the average cost per trainee and a detailed breakdown 
 34.33  of the components of those costs; 
 34.34     (4) other state or federal appropriations received for the 
 34.35  purposes of clinical training; 
 34.36     (5) other revenue received for the purposes of clinical 
 35.1   training; and 
 35.2      (6) other information the commissioner, with advice from 
 35.3   the advisory commission, deems appropriate to evaluate the 
 35.4   effectiveness of the use of funds for clinical training.  
 35.5      The commissioner, with advice from the advisory commission, 
 35.6   will provide an annual summary report to the legislature on 
 35.7   program implementation due February 15 of each year. 
 35.8      (f) The commissioner is authorized to distribute additional 
 35.9   funds made available through: 
 35.10     (1) voluntary contributions by employers or other entities; 
 35.11     (2) allocations for the department of human services to 
 35.12  support medical education and research; and 
 35.13     (3) other sources as identified and deemed appropriate by 
 35.14  the legislature for inclusion in the trust fund. 
 35.15     (g) The commission shall continue to study and make 
 35.16  recommendations on:  
 35.17     (1) the funding of medical research consistent with work 
 35.18  currently mandated by the legislature and under way at the 
 35.19  department of health; 
 35.20     (2) the costs and benefits associated with medical 
 35.21  education and research; and 
 35.22     (3) workforce requirements and state priorities. 
 35.23     Sec. 6.  Minnesota Statutes 1994, section 257.0755, 
 35.24  subdivision 3, is amended to read: 
 35.25     Subd. 3.  [APPROPRIATION.] Money appropriated for each 
 35.26  ombudsperson from the general fund or the special fund 
 35.27  authorized by section 256.01, subdivision 2, clause (15), is 
 35.28  under the control of each ombudsperson for which it is 
 35.29  appropriated.  Each ombudsperson may apply for and receive 
 35.30  nonstate funds.  Any funds received are appropriated to the 
 35.31  office for the purpose for which the funds were granted. 
 35.32                             ARTICLE 4 
 35.33                 ENVIRONMENT AND NATURAL RESOURCES 
 35.34  Section 1.  [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.] 
 35.35     The sums in the columns headed "APPROPRIATIONS" are 
 35.36  appropriated from the general fund, or another named fund, to 
 36.1   the agencies and for the purposes specified to be available for 
 36.2   the fiscal years indicated for each purpose. 
 36.3                           SUMMARY BY FUND
 36.4                                             1996         1997
 36.5   General Fund                      $      713,000 $    2,030,000
 36.6                                              APPROPRIATIONS 
 36.7                                          Available for the Year 
 36.8                                              Ending June 30 
 36.9                                             1996         1997 
 36.10  Sec. 2.  POLLUTION CONTROL
 36.11  AGENCY                            $      400,000 $      -0-    
 36.12  $200,000 is appropriated in fiscal year 
 36.13  1996 to conduct a detailed assessment 
 36.14  of the water quality point source 
 36.15  activities as detailed in the 1995 blue 
 36.16  ribbon task force report to the 
 36.17  legislature.  The unencumbered balance 
 36.18  in the first year does not cancel but 
 36.19  is available through June 30, 1997.  
 36.20  $200,000 is appropriated in fiscal year 
 36.21  1996 for legal defense of a lawsuit 
 36.22  filed by environmental agencies against 
 36.23  the state.  The unencumbered balance in 
 36.24  the first year does not cancel but is 
 36.25  available through June 30, 1997. 
 36.26  Sec. 3.  NATURAL RESOURCES               313,000      2,030,000
 36.27  Subdivision 1.  Forest Management    
 36.28         293,000        -0-     
 36.29  This appropriation is for unanticipated 
 36.30  costs the agency incurred for the 
 36.31  assessment of timber damage, cleanup, 
 36.32  reconstruction, and replacement of 
 36.33  damaged natural resources, facilities, 
 36.34  and roads related to July 1995 storm 
 36.35  damage. 
 36.36  Subd. 2.  Parks and Recreation 
 36.37          20,000        -0-     
 36.38  This appropriation is for unanticipated 
 36.39  costs the agency incurred for removal 
 36.40  of damaged trees and other storm 
 36.41  debris, and the cleanup and repair of 
 36.42  state park facilities related to July 
 36.43  1995 storm damage. 
 36.44  Subd. 3.  Trails and Waterways 
 36.45         -0-          1,650,000 
 36.46  $150,000 is appropriated in 1997 for 
 36.47  the development of a recreation plan 
 36.48  for the Minnesota River Valley.  Of 
 36.49  this amount, $100,000 is for a grant to 
 36.50  the Minnesota River joint powers board 
 36.51  for their work and preparation of the 
 36.52  recreation plan.  
 37.1   $1,500,000 is appropriated in 1997 for 
 37.2   the construction of a new protected 
 37.3   public water access at Taconite Harbor 
 37.4   on Lake Superior.  This appropriation 
 37.5   is available until expended. 
 37.6   Subd. 4.  Operations Support 
 37.7          -0-            380,000 
 37.8   $300,000 is appropriated in 1997 to 
 37.9   partially restore a program reduction 
 37.10  made to the administrative, regional, 
 37.11  and support functions of the agency.  
 37.12  This appropriation is added to the 
 37.13  appropriation in Laws 1995, chapter 
 37.14  220, section 5, subdivision 9. 
 37.15  $80,000 is appropriated in 1997 to 
 37.16  prepare recommendations on the 
 37.17  reorganization of state and local 
 37.18  entities that protect and manage state 
 37.19  water resources. 
 37.20     Sec. 4.  Minnesota Statutes 1994, section 17.117, 
 37.21  subdivision 3, is amended to read: 
 37.22     Subd. 3.  [APPROPRIATIONS.] Up to $20,000,000 $40,000,000 
 37.23  of the balance in the water pollution control revolving fund in 
 37.24  section 446A.07, as determined by the public facilities 
 37.25  authority, is appropriated to the commissioner for the 
 37.26  establishment of this program. 
 37.27     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
 37.28  103F.725, subdivision 1a, is amended to read: 
 37.29     Subd. 1a.  [FINANCIAL ASSISTANCE; LOANS.] (a) Up to 
 37.30  $12,000,000 $24,000,000 of the balance in the water pollution 
 37.31  control revolving fund in section 446A.07, as determined by the 
 37.32  public facilities authority shall be appropriated to the 
 37.33  commissioner for the establishment of a clean water partnership 
 37.34  loan program. 
 37.35     (b) The agency may award loans for up to 100 percent of the 
 37.36  costs associated with activities identified by the agency as 
 37.37  best management practices pursuant to section 319 and section 
 37.38  320 of the federal Water Quality Act of 1987, as amended, 
 37.39  including associated administrative costs. 
 37.40     (c) Loans may be used to finance clean water partnership 
 37.41  grant project eligible costs not funded by grant assistance. 
 37.42     (d) The interest rate, at or below market rate, and the 
 37.43  term, not to exceed 20 years, shall be determined by the agency 
 38.1   in consultation with the public facilities authority. 
 38.2      (e) The repayment must be deposited in the water pollution 
 38.3   control revolving fund under section 446A.07. 
 38.4      (f) The local unit of government receiving the loan is 
 38.5   responsible for repayment of the loan. 
 38.6      (g) For the purpose of obtaining a loan from the agency, a 
 38.7   local government unit may provide to the agency its general 
 38.8   obligation note.  All obligations incurred by a local government 
 38.9   unit in obtaining a loan from the agency must be in accordance 
 38.10  with chapter 475, except that so long as the obligations are 
 38.11  issued to evidence a loan from the agency to the local 
 38.12  government unit, an election is not required to authorize the 
 38.13  obligations issued, and the amount of the obligations shall not 
 38.14  be included in determining the net indebtedness of the local 
 38.15  government unit under the provisions of any law or chapter 
 38.16  limiting the indebtedness. 
 38.17     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 38.18  446A.07, subdivision 8, is amended to read: 
 38.19     Subd. 8.  [OTHER USES OF REVOLVING FUND.] The water 
 38.20  pollution control revolving fund may be used as provided in 
 38.21  title VI of the Federal Water Pollution Control Act, including 
 38.22  the following uses: 
 38.23     (1) to buy or refinance the debt obligation of governmental 
 38.24  units for treatment works where debt was incurred and 
 38.25  construction begun after March 7, 1985, at or below market 
 38.26  rates; 
 38.27     (2) to guarantee or purchase insurance for local 
 38.28  obligations to improve credit market access or reduce interest 
 38.29  rates; 
 38.30     (3) to provide a source of revenue or security for the 
 38.31  payment of principal and interest on revenue or general 
 38.32  obligation bonds issued by the authority if the bond proceeds 
 38.33  are deposited in the fund; 
 38.34     (4) to provide loan guarantees, loans, or set-aside for 
 38.35  similar revolving funds established by a governmental unit other 
 38.36  than state agencies, or state agencies under sections 17.117, 
 39.1   103F.725, subdivision 1a, 116J.403, and 116J.617; provided that 
 39.2   no more than $2,000,000 $4,000,000 of the balance in the fund 
 39.3   may be used for the small cities block grant program under 
 39.4   section 116J.403 and the tourism loan program under section 
 39.5   116J.617, taken together; 
 39.6      (5) to earn interest on fund accounts; and 
 39.7      (6) to pay the reasonable costs incurred by the authority 
 39.8   and the agency of administering the fund and conducting 
 39.9   activities required under the federal Water Pollution Control 
 39.10  Act, including water quality management planning under section 
 39.11  205(j) of the act and water quality standards continuing 
 39.12  planning under section 303(e) of the act. 
 39.13     Amounts spent under clause (6) may not exceed the amount 
 39.14  allowed under the Federal Water Pollution Control Act.  
 39.15     Sec. 7.  Laws 1995, chapter 220, section 7, subdivision 4, 
 39.16  is amended to read:  
 39.17  Subd. 4.  Administration and 
 39.18  Financial Assistance 
 39.19       6,608,000      5,713,000
 39.20                 Summary by Fund
 39.21  General              6,600,000    5,705,000
 39.22  Special Revenue          8,000        8,000
 39.23  $1,200,000 from the balance in the 
 39.24  special account created in Minnesota 
 39.25  Statutes, section 41.61, shall be 
 39.26  transferred to the general fund by June 
 39.27  30, 1997. 
 39.28  $150,000 the first year and $50,000 the 
 39.29  second year are for dairy policy 
 39.30  studies and federal milk marketing 
 39.31  order reform. 
 39.32  $285,000 the first year and $285,000 
 39.33  the second year are for family farm 
 39.34  security interest payment adjustments.  
 39.35  If the appropriation for either year is 
 39.36  insufficient, the appropriation for the 
 39.37  other year is available for it.  No new 
 39.38  loans may be approved in fiscal year 
 39.39  1996 or 1997.  
 39.40  $199,000 the first year and $199,000 
 39.41  the second year are for the family farm 
 39.42  advocacy program. 
 39.43  $80,000 the first year and $80,000 the 
 39.44  second year are for grants to farmers 
 39.45  for demonstration projects involving 
 39.46  sustainable agriculture.  If a project 
 40.1   cost is more than $25,000, the amount 
 40.2   above $25,000 must be cost-shared at a 
 40.3   state-applicant ratio of one to one.  
 40.4   Priorities must be given for projects 
 40.5   involving multiple parties.  Up to 
 40.6   $20,000 each year may be used for 
 40.7   dissemination of information about the 
 40.8   demonstration grant projects.  If the 
 40.9   appropriation for either year is 
 40.10  insufficient, the appropriation for the 
 40.11  other is available. 
 40.12  $70,000 the first year and $70,000 the 
 40.13  second year are for the Northern Crops 
 40.14  Institute.  These appropriations may be 
 40.15  spent to purchase equipment and are 
 40.16  available until spent.  
 40.17  $150,000 the first year and $150,000 
 40.18  the second year are for grants to 
 40.19  agriculture information centers.  The 
 40.20  grants are only available on a match 
 40.21  basis.  The funds may be released at 
 40.22  the rate of $4 of state money for each 
 40.23  $1 of matching nonstate money that is 
 40.24  raised.  Any appropriated amounts not 
 40.25  matched by April 1 of each year are 
 40.26  available for other purposes within the 
 40.27  department, of which $10,000 each year 
 40.28  may be used for farm safety programs 
 40.29  and remains available until June 30, 
 40.30  1997. 
 40.31  $53,000 the first year and $53,000 the 
 40.32  second year are for payment of claims 
 40.33  relating to livestock damaged by 
 40.34  threatened or endangered animal species 
 40.35  and agricultural crops damaged by elk.  
 40.36  If the appropriation for either year is 
 40.37  insufficient, the appropriation for the 
 40.38  other year is available for it. 
 40.39  $115,000 the first year and $115,000 
 40.40  the second year are for the seaway port 
 40.41  authority of Duluth. 
 40.42  $19,000 the first year and $19,000 the 
 40.43  second year is for a grant to the 
 40.44  Minnesota livestock breeder's 
 40.45  association. 
 40.46  $75,000 the first year and $75,000 the 
 40.47  second year are for grants to the 
 40.48  University of Minnesota for applied 
 40.49  research on odor control at feedlots.  
 40.50  This appropriation is available only if 
 40.51  matched by the same amount in nonstate 
 40.52  money.  The research must provide:  (1) 
 40.53  an evaluation of cost-effective covers 
 40.54  for manure storage structures; and (2) 
 40.55  development of economical means of 
 40.56  altering the biological activity in 
 40.57  manure storage structures to reduce 
 40.58  odor emissions. 
 40.59  $25,000 the first year is for a grant 
 40.60  to the University of Minnesota for 
 40.61  research into the effects feedlots have 
 40.62  on the value of nearby property.  The 
 40.63  research must take into account the 
 40.64  distance the property is from the 
 41.1   feedlot, the type of feedlot, and be 
 41.2   based on actual sales of property near 
 41.3   feedlots. 
 41.4   Notwithstanding any other law to the 
 41.5   contrary, for fiscal year 1995 $800,000 
 41.6   from the general fund may be 
 41.7   transferred to the special account 
 41.8   created in Minnesota Statutes, section 
 41.9   17B.15, subdivision 1, to provide an 
 41.10  operating loan to the grain inspection 
 41.11  and weighing account.  The commissioner 
 41.12  of agriculture shall repay the loan 
 41.13  from the special account by June 30, 
 41.14  1997. 
 41.15  $50,000 in the first year shall be used 
 41.16  by the commissioner of agriculture as a 
 41.17  grant for a pilot project for an 
 41.18  anaerobic digestion plant for the 
 41.19  management of animal manures and 
 41.20  research of other appropriate 
 41.21  technologies for management of animal 
 41.22  manures.  
 41.23  $350,000 the first year is for transfer 
 41.24  to the ethanol development account in 
 41.25  the special revenue fund. 
 41.26  $200,000 the first year is for transfer 
 41.27  to the value added agriculture product 
 41.28  revolving loan account in the special 
 41.29  revenue fund. 
 41.30                             ARTICLE 5 
 41.31                        ECONOMIC DEVELOPMENT 
 41.32  Section 1.  [ECONOMIC DEVELOPMENT APPROPRIATIONS.] 
 41.33     The sums in the columns marked "APPROPRIATIONS" are 
 41.34  appropriated from the general fund, or another named fund, to 
 41.35  the agencies and for the purposes specified in this article, to 
 41.36  be available for the fiscal years indicated for each purpose. 
 41.37                          SUMMARY BY FUND
 41.38                                           1996          1997
 41.39  General                           $    3,000,000 $   16,422,000
 41.40  Petroleum 
 41.41  Tank Cleanup                              47,000         93,000
 41.42  Special  
 41.43  Compensation                             -0-          2,800,000
 41.44  TOTAL                             $    3,047,000 $   19,315,000
 41.45                                             APPROPRIATIONS 
 41.46                                         Available for the Year 
 41.47                                             Ending June 30 
 41.48                                            1996         1997 
 41.49  Sec. 2.  DEPARTMENT OF TRADE AND
 41.50  ECONOMIC DEVELOPMENT                $  3,000,000   $  6,737,000
 41.51  (a) Minnesota Investment Fund 
 42.1          -0-          6,000,000 
 42.2   $6,000,000 is appropriated in 1997 for 
 42.3   the purposes of sections 116J.8731 and 
 42.4   116J.8732. 
 42.5   Any funds previously appropriated for 
 42.6   the economic recovery grants program 
 42.7   that are unobligated, unexpended, and 
 42.8   otherwise available for expenditure on 
 42.9   the effective date of this act may be 
 42.10  expended for the purposes of Minnesota 
 42.11  Statutes, sections 116J.8731 and 
 42.12  116J.8732.  
 42.13  (b) Bio-Medical Endowment 
 42.14       3,000,000        -0-     
 42.15  $3,000,000 is appropriated in 1996 to 
 42.16  leverage private funds to contribute to 
 42.17  an endowment fund for the bio-medical 
 42.18  engineering center at the University of 
 42.19  Minnesota. 
 42.20  (c) One-Stop Permitting 
 42.21         -0-            737,000 
 42.22  $737,000 is appropriated in 1997 to 
 42.23  support the initial phase of the 
 42.24  development of a computerized database 
 42.25  to store information relevant to 
 42.26  business licenses and permits required 
 42.27  by the state of Minnesota. 
 42.28  Sec. 3.  MINNESOTA WORLD TRADE CENTER
 42.29  CORPORATION                              -0-            285,000 
 42.30  $285,000 is appropriated in 1997 for 
 42.31  the full and final payment of the 
 42.32  remaining 1988 debt of the Minnesota 
 42.33  World Trade Center Corporation which 
 42.34  was incurred for conference center 
 42.35  furniture, fixtures, and equipment. 
 42.36  Sec. 4.  DEPARTMENT OF ECONOMIC
 42.37  SECURITY                                 -0-          9,400,000
 42.38  (a) Minnesota Youth Program      
 42.39         -0-          6,000,000 
 42.40  $6,000,000 is appropriated in 1997 to 
 42.41  offset anticipated reductions in the 
 42.42  federal Title IIB, Job Training 
 42.43  Partnership Act (JTPA) Summer Youth 
 42.44  program. 
 42.45  (b) Minnesota Workforce Center System  
 42.46         -0-          1,800,000 
 42.47  $1,800,000 is appropriated in 1997 to 
 42.48  leverage federal dollars in support of 
 42.49  the establishment of a public access 
 42.50  computer system to Minnesota Workforce 
 42.51  System services. 
 42.52  (c) Uniform Business Identifier  
 43.1          -0-          1,600,000 
 43.2   $1,600,000 is appropriated in 1997 for 
 43.3   the initial design and implementation 
 43.4   phase of a Uniform Business Identifier 
 43.5   (UBI) registration process and database 
 43.6   for business in the state of Minnesota. 
 43.7   Sec. 5.  DEPARTMENT OF
 43.8   COMMERCE                                  47,000         93,000
 43.9   This appropriation is from the 
 43.10  petroleum tank release cleanup fund and 
 43.11  is for legal services.  This 
 43.12  appropriation is added to the 
 43.13  appropriation in Laws 1995, chapter 
 43.14  224, section 7, subdivision 5. 
 43.15  Sec. 6.  DEPARTMENT OF LABOR
 43.16  AND INDUSTRY                               -0-        2,800,000
 43.17  This appropriation is from the special 
 43.18  compensation fund for the Daedalus 
 43.19  imaging systems project.  This 
 43.20  appropriation is added to the 
 43.21  appropriation in Laws 1995, chapter 
 43.22  224, section 12, subdivision 2. 
 43.23     Sec. 7.  Laws 1995, chapter 224, section 2, subdivision 2, 
 43.24  is amended to read: 
 43.25  Subd. 2.  Business and Community 
 43.26  Development
 43.27       23,961,000      9,351,000
 43.28  $100,000 the first year and $100,000 
 43.29  the second year are for the affirmative 
 43.30  enterprise program.  The appropriation 
 43.31  is available until spent. 
 43.32  $6,017,000 the first year is for 
 43.33  economic recovery grants, of which 
 43.34  $500,000 may be used for the purposes 
 43.35  of the capital access program, and is 
 43.36  available until spent. 
 43.37  $379,000 the first year and $379,000 
 43.38  the second year are for the small 
 43.39  cities federal match.  
 43.40  $200,000 the first year and $200,000 
 43.41  the second year are for grants to 
 43.42  Advantage Minnesota, Inc.  The funds 
 43.43  are available only if matched on at 
 43.44  least a dollar-for-dollar basis from 
 43.45  other sources.  The commissioner may 
 43.46  release the funds only upon: 
 43.47  (1) certification that matching funds 
 43.48  from each participating organization 
 43.49  are available; and 
 43.50  (2) review and approval by the 
 43.51  commissioner of the proposed operations 
 43.52  plan of Advantage Minnesota, Inc. for 
 43.53  the biennium. 
 43.54  $450,000 the first year and $450,000 
 43.55  the second year are for the state's 
 44.1   match for the federal small business 
 44.2   development centers.  If funding in one 
 44.3   year is insufficient, the other year's 
 44.4   appropriation is available. 
 44.5   $1,987,000 the first year and 
 44.6   $1,962,000 the second year are for the 
 44.7   job skills partnership program.  
 44.8   $300,000 is to the job skills 
 44.9   partnership board for the purpose of 
 44.10  funding the development and 
 44.11  implementation of a program by the city 
 44.12  of St. Paul which connects the economic 
 44.13  development activities of the St. Paul 
 44.14  port authority with the city of St. 
 44.15  Paul's employment and job development 
 44.16  programs.  This employment connection 
 44.17  program shall be administered by the 
 44.18  port authority consistent with, and 
 44.19  subject to, the program requirements of 
 44.20  the Minnesota job skills partnership 
 44.21  program.  The appropriation is 
 44.22  available until spent. 
 44.23  $100,000 the first year and $100,000 
 44.24  the second year are to the job skills 
 44.25  partnership board for a grant to the 
 44.26  city of Minneapolis' employment 
 44.27  connection program with the Minneapolis 
 44.28  Community Development Agency. 
 44.29  $7,800,000 is for grants under 
 44.30  Minnesota Statutes, sections 116J.551 
 44.31  to 116J.558.  Of this amount, up to 
 44.32  $117,00 is available for administration 
 44.33  of the program.  This appropriation is 
 44.34  available until spent. 
 44.35  $100,000 is for a grant to the Phoenix 
 44.36  Group, Inc.  The grant must be used to 
 44.37  make grants and loans and provide 
 44.38  technical and other assistance to 
 44.39  community residents in neighborhoods 
 44.40  with high levels of poverty for the 
 44.41  purpose of creating business 
 44.42  opportunities to promote 
 44.43  self-sufficiency.  The appropriation is 
 44.44  available for the biennium ending June 
 44.45  30, 1997. 
 44.46  $200,000 the first year is for a grant 
 44.47  to Hennepin county for the 
 44.48  multijurisdictional reinvestment 
 44.49  program established in Minnesota 
 44.50  Statutes, section 383B.79.  Hennepin 
 44.51  county, working in conjunction with the 
 44.52  metropolitan council, shall report to 
 44.53  the senate committee on jobs, energy, 
 44.54  and community development and the house 
 44.55  committee on economic development, 
 44.56  infrastructure, and regulation finance 
 44.57  by February 15, 1996, with its 
 44.58  recommendations, funding needs, and 
 44.59  potential funding sources to carry out 
 44.60  the multijurisdictional reinvestment 
 44.61  program.  This appropriation does not 
 44.62  lapse, and is available until spent. 
 44.63  $450,000 the first year and $515,000 
 44.64  the second year are from fees collected 
 45.1   under Minnesota Statutes, section 
 45.2   446A.04, subdivision 5, and credited to 
 45.3   the general fund to administer the 
 45.4   programs of the public facilities 
 45.5   authority. 
 45.6   $250,000 is for the state's share for a 
 45.7   matching defense conversion grant to 
 45.8   Hennepin and Ramsey counties from the 
 45.9   United States department of commerce 
 45.10  economic development administration.  
 45.11  The state and local government 
 45.12  contribution must be matched at least 
 45.13  three to one by the federal 
 45.14  government.  This appropriation is 
 45.15  available until spent. 
 45.16     Sec. 8.  Laws 1995, chapter 231, article 1, section 33, is 
 45.17  amended to read: 
 45.18     Sec. 33.  [APPROPRIATION.] 
 45.19     The $900,000 is appropriated from the special compensation 
 45.20  fund for the biennium ending June 30, 1997, to the department of 
 45.21  commerce shall be used for the purposes of rate regulation of 
 45.22  commercial self-insurance groups under Minnesota Statutes, 
 45.23  sections 79A.19 to 79A.32 and workers' compensation rate 
 45.24  regulation under Minnesota Statutes, sections 79.50 to 79.561.  
 45.25  The complement of the department of commerce is increased by 13 
 45.26  positions for the purposes of rate regulation. 
 45.27     Sec. 9.  Minnesota Statutes 1995 Supplement, section 
 45.28  79.561, subdivision 3, is amended to read: 
 45.29     Subd. 3.  [CONSULTANTS AND COSTS.] The commissioner may 
 45.30  retain consultants, including a consulting actuary or other 
 45.31  experts, that the commissioner determines necessary for purposes 
 45.32  of this chapter.  The salary limit set by section 43A.17 does 
 45.33  not apply to a consulting actuary retained under this 
 45.34  subdivision.  A consulting actuary shall be a fellow in the 
 45.35  casualty actuarial society and shall have demonstrated 
 45.36  experience in workers' compensation insurance ratemaking.  Any 
 45.37  individual not so qualified shall not render an opinion or 
 45.38  testify on actuarial aspects of a filing, including but not 
 45.39  limited to, data quality, loss development, and trending.  The 
 45.40  costs incurred in commissioner may determine the costs necessary 
 45.41  for implementing and conducting a contested case hearing under 
 45.42  subdivision 2, including, but not limited to, retaining any 
 46.1   consulting actuaries and experts, and those costs shall be 
 46.2   reimbursed by the special compensation fund. 
 46.3      Sec. 10.  [116J.8731] [MINNESOTA INVESTMENT FUND.] 
 46.4      Subdivision 1.  [PURPOSE.] The Minnesota investment fund is 
 46.5   created to provide financial assistance, through partnership 
 46.6   with communities, for the creation of new employment or to 
 46.7   maintain existing employment, and for business start-up, 
 46.8   expansions, and retention.  It shall accomplish these goals by 
 46.9   the following means: 
 46.10     (1) creation or retention of permanent private-sector jobs 
 46.11  in order to create above-average economic growth consistent with 
 46.12  environmental protection; 
 46.13     (2) stimulation or leverage of private investment to ensure 
 46.14  economic renewal and competitiveness; 
 46.15     (3) increasing the local tax base, based on demonstrated 
 46.16  measurable outcomes, to guarantee a diversified industry mix; 
 46.17     (4) improvement of employment and economic opportunity for 
 46.18  citizens in the region to create a reasonable standard of 
 46.19  living, consistent with federal and state guidelines on low- to 
 46.20  moderate-income persons; and 
 46.21     (5) stimulation of productivity growth through improved 
 46.22  manufacturing or new technologies.  
 46.23     Subd. 2.  [ADMINISTRATION.] The commissioner shall 
 46.24  administer the fund as part of the small cities development 
 46.25  block grant program.  Funds shall be made available to local 
 46.26  communities and recognized Indian tribal governments in 
 46.27  accordance with the rules adopted for economic development 
 46.28  grants in the small cities community development block grant 
 46.29  program, except that all units of general purpose local 
 46.30  government are eligible applicants for Minnesota investment 
 46.31  funds.  A home rule charter or statutory city, county, or town 
 46.32  may loan or grant money under this section to a regional 
 46.33  development commission to provide the local match required for 
 46.34  capitalization of a regional revolving loan fund.  
 46.35     Subd. 3.  [GRANT LIMITS.] Grants made to local units of 
 46.36  government may not be approved for an amount over $500,000.  If 
 47.1   the amount of the grant is less than $500,000, the reasons for 
 47.2   the reduction must be given to the applicant.  The portion of a 
 47.3   grant to a unit of government that exceeds $100,000 must be 
 47.4   repaid to the state when it is repaid to the local government or 
 47.5   recognized Indian tribal government by the person or entity to 
 47.6   which it was loaned.  Money repaid to the state must be credited 
 47.7   to the general fund.  
 47.8      Sec. 11.  [116J.8732] [PROJECTS.] 
 47.9      Subdivision 1.  [ELIGIBLE EXPENDITURES.] The money 
 47.10  appropriated for this section may be used to provide grants for 
 47.11  infrastructure, loans, loan guarantees, interest buy-downs, and 
 47.12  other forms of participation with private sources of financing, 
 47.13  provided that a loan to a private enterprise must be for a 
 47.14  principal amount not to exceed one-half of the cost of the 
 47.15  project for which financing is sought. 
 47.16     Subd. 2.  [ELIGIBLE PROJECTS.] Assistance may be provided 
 47.17  to projects which are eligible under this section and must be 
 47.18  evaluated on the existence of the following conditions: 
 47.19     (1) creation of new jobs or retention of existing jobs; 
 47.20     (2) increase in the tax base; 
 47.21     (3) the project can demonstrate that investment of public 
 47.22  dollars induces private funds; 
 47.23     (4) the project can demonstrate an excessive public 
 47.24  infrastructure or improvement costs beyond the means of the 
 47.25  affected community and private participants in the project; 
 47.26     (5) the project provides higher wage levels to the 
 47.27  community or the project will add value to current workforce 
 47.28  skills; 
 47.29     (6) whether assistance is necessary to retain existing 
 47.30  business; and 
 47.31     (7) whether assistance is necessary to attract out-of-state 
 47.32  business.  
 47.33     Subd. 3.  [CONTRACTUAL OBLIGATIONS.] Any business receiving 
 47.34  funds under this program must demonstrate why public dollars are 
 47.35  necessary for the project, including private investment that 
 47.36  will be made available for the project.  The project must have 
 48.1   an established rate of return on investment of public funds, as 
 48.2   well as job creation goals.  Any recipient that does not meet 
 48.3   the negotiated terms of the agreement must repay the assistance 
 48.4   in terms specified in the agreement. 
 48.5      Sec. 12.  [REPEALER.] 
 48.6      Minnesota Statutes 1994, sections 116J.873, subdivisions 1, 
 48.7   2, and 4; and 268.9783, subdivision 8, are repealed. 
 48.8      Minnesota Statutes 1995 Supplement, section 116J.873, 
 48.9   subdivisions 3 and 5, is repealed. 
 48.10                             ARTICLE 6 
 48.11                           TRANSPORTATION 
 48.12  Section 1.  [TRANSPORTATION AND OTHER AGENCIES APPROPRIATIONS.] 
 48.13     The sums in the columns headed "APPROPRIATIONS" are 
 48.14  appropriated from the general fund, or another named fund, to 
 48.15  the agencies and for the purposes specified to be available for 
 48.16  the fiscal years indicated for each purpose. 
 48.17                          SUMMARY BY FUND
 48.18                                            1996         1997
 48.19  General Fund                        $    -0-       $  6,697,000
 48.20  Trunk Highway Fund                       -0-         42,760,000
 48.21                                             APPROPRIATIONS 
 48.22                                         Available for the Year 
 48.23                                             Ending June 30 
 48.24                                            1996         1997 
 48.25  Sec. 2.  METROPOLITAN COUNCIL       $    -0-       $  6,000,000
 48.26  $6,000,000 is for metropolitan transit 
 48.27  operations in fiscal year 1997 and is 
 48.28  added to the appropriation in Laws 
 48.29  1995, chapter 265, article 2, section 3.
 48.30  Sec. 3.  DEPARTMENT OF PUBLIC
 48.31  SAFETY                                   -0-          4,847,000
 48.32  (a) State Patrol 
 48.33         -0-          3,852,000
 48.34  $467,000 for fiscal year 1997 is added 
 48.35  to the appropriations in Laws 1995, 
 48.36  chapter 265, article 2, section 5, 
 48.37  subdivision 3, for 6 additional state 
 48.38  patrol troopers for security services 
 48.39  in the capitol complex. 
 48.40  $3,385,000 from the trunk highway fund 
 48.41  for fiscal year 1997 is added to the 
 48.42  appropriations in Laws 1995, chapter 
 48.43  265, article 2, section 5, subdivision 
 48.44  3, for 40 additional state patrol 
 49.1   troopers, four communication operators, 
 49.2   and four support positions for enhanced 
 49.3   patrol services. 
 49.4   (b) Administration and
 49.5   Related Services 
 49.6          -0-            995,000
 49.7   $230,000 for fiscal year 1997 is added 
 49.8   to the appropriations in Laws 1995, 
 49.9   chapter 265, article 2, section 5, 
 49.10  subdivision 2, for agency critical 
 49.11  operations systems. 
 49.12  $765,000 for fiscal year 1997 from the 
 49.13  trunk highway fund is added to the 
 49.14  appropriations in Laws 1995, chapter 
 49.15  265, article 2, section 5, subdivision 
 49.16  2, for agency critical operations 
 49.17  systems. 
 49.18  Sec. 4.  DEPARTMENT OF 
 49.19  TRANSPORTATION                           -0-         38,610,000
 49.20  (a) State Road Construction 
 49.21         -0-         33,000,000
 49.22  $33,000,000 is appropriated from the 
 49.23  trunk highway fund for state road 
 49.24  construction in fiscal year 1997 and is 
 49.25  added to the appropriation in Laws 
 49.26  1995, chapter 265, article 2, section 
 49.27  2, subdivision 7, clause (a). 
 49.28  (b) Design Engineering 
 49.29  and Construction Engineering 
 49.30         -0-          5,610,000
 49.31  $5,610,000 is appropriated from the 
 49.32  trunk highway fund for design 
 49.33  engineering and construction 
 49.34  engineering and is added to the 
 49.35  appropriations in Laws 1995, chapter 
 49.36  265, article 2, section 2, subdivision 
 49.37  7, clauses (d) and (e), as needed. 
 49.38  (c) Greater Minnesota Transit 
 49.39  Assistance 
 49.40  Any unencumbered balance from Laws 
 49.41  1995, article 2, section 2, subdivision 
 49.42  3, clause (a), for greater Minnesota 
 49.43  transit assistance remaining the first 
 49.44  year does not cancel but is available 
 49.45  for the second year of the biennium. 
 49.46                             ARTICLE 7 
 49.47                          CRIMINAL JUSTICE 
 49.48  Section 1.  [CRIMINAL JUSTICE APPROPRIATIONS.] 
 49.49     The sums in the columns headed "APPROPRIATIONS" are 
 49.50  appropriated from the general fund, or another named fund, to 
 49.51  the agencies and for the purposes specified to be available for 
 50.1   the fiscal years indicated for each purpose. 
 50.2                           SUMMARY BY FUND
 50.3                                             1996         1997
 50.4   General Fund Total                $      564,000  $  14,820,000
 50.5   Trunk Highway Fund                        19,000        -0-    
 50.6   Special Revenue Fund                     -0-            930,000
 50.7   TOTAL                             $      583,000  $  15,750,000
 50.8                                              APPROPRIATIONS 
 50.9                                          Available for the Year 
 50.10                                             Ending June 30 
 50.11                                            1996         1997 
 50.12  Sec. 2.  DEPARTMENT OF 
 50.13  PUBLIC SAFETY                     $      483,000  $   4,700,000
 50.14  (a) Auto Theft Prevention Program 
 50.15         -0-            930,000
 50.16  $930,000 for fiscal year 1997 is 
 50.17  appropriated from the special revenue 
 50.18  fund for program administration and 
 50.19  grants for vehicle theft prevention 
 50.20  activities.  This appropriation is 
 50.21  added to the appropriation in Laws 
 50.22  1995, chapter 226, article 1, section 7.
 50.23  (b) Criminal Apprehension  
 50.24         -0-            740,000
 50.25  $740,000 for fiscal year 1997 is added 
 50.26  to the appropriations in Laws 1995, 
 50.27  chapter 226, article 1, section 7, 
 50.28  subdivision 4, for six forensic 
 50.29  scientists for enhanced laboratory 
 50.30  services and for six special agents. 
 50.31  (c) Emergency Management  
 50.32         483,000         30,000
 50.33  $464,000 from the general fund and 
 50.34  $19,000 from the trunk highway fund is 
 50.35  for disaster relief for the Great Wind 
 50.36  Storm of 1995.  This appropriation is 
 50.37  added to the appropriation for fiscal 
 50.38  year 1996 in Laws 1995, chapter 226, 
 50.39  article 1, section 7, subdivision 2. 
 50.40  $30,000 from the general fund is for 
 50.41  program administration and disaster 
 50.42  relief for the Great Wind Storm of 
 50.43  1995.  This appropriation is added to 
 50.44  the appropriation for fiscal year 1997 
 50.45  in Laws 1995, chapter 226, article 1, 
 50.46  section 7, subdivision 2. 
 50.47  (d) Safe Streets Initiative 
 50.48         -0-          3,000,000
 50.49  $1,100,000 is appropriated for safe 
 50.50  streets grants for local law 
 51.1   enforcement.  This appropriation is 
 51.2   added to the appropriation for fiscal 
 51.3   year 1997 in Laws 1995, chapter 226, 
 51.4   article 1, section 7. 
 51.5   $1,800,000 is appropriated for safe 
 51.6   street grants for community policing 
 51.7   activities.  This appropriation is 
 51.8   added to the appropriation for fiscal 
 51.9   year 1997 in Laws 1995, chapter 226, 
 51.10  article 1, section 7. 
 51.11  $100,000 is appropriated for program 
 51.12  administration.  This appropriation is 
 51.13  added to the appropriation for fiscal 
 51.14  year 1997 in Laws 1995, chapter 226, 
 51.15  article 1, section 7. 
 51.16  Sec. 3.  JUDICIAL STANDARDS
 51.17  BOARD                                    100,000         50,000
 51.18  These appropriations are added to the 
 51.19  appropriations in Laws 1995, chapter 
 51.20  226, article 1, section 5, and are for 
 51.21  professional and technical services 
 51.22  involving the investigations of 
 51.23  complaints presented to the board. 
 51.24  Sec. 4.  DEPARTMENT OF 
 51.25  CORRECTIONS                              -0-         11,000,000
 51.26  (a) Structural Deficiency  
 51.27         -0-          7,000,000
 51.28  This appropriation is added to the 
 51.29  appropriations in Laws 1995, chapter 
 51.30  226, article 1, section 11, 
 51.31  subdivisions 2 and 3, for correctional 
 51.32  institutions and community services. 
 51.33  (b) Youth Intervention Program 
 51.34         -0-          4,000,000
 51.35  This appropriation is for the purposes 
 51.36  of Minnesota Statutes, section 241.81. 
 51.37     Sec. 5.  [168A.40] [AUTOMOBILE THEFT PREVENTION PROGRAM.] 
 51.38     Subdivision 1.  [ADVISORY COUNCIL CREATED; MEMBERSHIP.] An 
 51.39  automobile theft prevention program is created to be 
 51.40  administered by the commissioner of public safety.  The governor 
 51.41  shall appoint an advisory council under section 15.059, which 
 51.42  shall consist of seven members representing law enforcement, 
 51.43  prosecuting attorneys, the department of public safety, 
 51.44  automobile insurers, and the public.  The council shall annually 
 51.45  elect a chair from among its members.  The council may request, 
 51.46  and the commissioner shall provide, professional, technical, 
 51.47  consulting, and clerical service staff of the department of 
 51.48  public safety.  The council is governed by section 15.059 except 
 52.1   that the term of each council member is for no longer than two 
 52.2   years.  The commissioner of the department of public safety 
 52.3   shall provide office space and administrative support to the 
 52.4   council and shall oversee its operations. 
 52.5      Subd. 2.  [PROGRAM DUTIES.] The automobile theft prevention 
 52.6   council shall advise and assist the commissioner to: 
 52.7      (1) develop and sponsor the implementation of statewide 
 52.8   plans, programs, and strategies to combat vehicle theft, review 
 52.9   the administration of the vehicle theft laws, and provide a 
 52.10  forum for identification of critical problems for those persons 
 52.11  dealing with vehicle theft; 
 52.12     (2) coordinate the development, adoption, and 
 52.13  implementation of plans, programs, and strategies relating to 
 52.14  interagency and intergovernmental cooperation with respect to 
 52.15  vehicle theft enforcement; 
 52.16     (3) audit at the commissioner's discretion the plans and 
 52.17  programs that the program has funded in whole or in part in 
 52.18  order to evaluate the effectiveness of the plans and programs, 
 52.19  and withdraw funding should the commissioner determine that a 
 52.20  plan or program is ineffective or is no longer in need of 
 52.21  further financial support from the fund; 
 52.22     (4) develop a plan of operation including an assessment of 
 52.23  the scope of the problem of vehicle theft, including areas of 
 52.24  the state where the problem is greatest; an analysis of various 
 52.25  methods of combating the problem of vehicle theft; a plan for 
 52.26  providing financial support to combat vehicle theft; a plan for 
 52.27  combating car hijacking; and an estimate of the funds required 
 52.28  to implement the plan; and 
 52.29     (5) distribute money from the vehicle theft prevention 
 52.30  account for vehicle theft prevention activities, including: 
 52.31     (i) paying the administrative costs of the council; 
 52.32     (ii) providing financial support to law enforcement 
 52.33  agencies for vehicle theft enforcement efforts; 
 52.34     (iii) providing financial support to state or local law 
 52.35  enforcement agencies for programs designed to reduce the 
 52.36  incidence of vehicle theft; 
 53.1      (iv) providing financial support to local prosecutors for 
 53.2   programs designed to reduce the incidence of vehicle theft; 
 53.3      (v) providing financial support to judicial agencies for 
 53.4   programs designed to reduce the incidence of vehicle theft; 
 53.5      (vi) providing financial support for neighborhood or 
 53.6   community organizations, business organizations, or for programs 
 53.7   designed to reduce the incidence of vehicle theft; 
 53.8      (vii) providing financial support for vehicle theft 
 53.9   educational and training programs for state and local law 
 53.10  enforcement officials, any other governmental agency involved in 
 53.11  vehicle theft, and members of the judiciary; and 
 53.12     (viii) conducting educational programs designed to inform 
 53.13  vehicle owners of methods of preventing vehicle theft. 
 53.14     On or before January 15 of each year, the council shall 
 53.15  report to the governor and legislature on its activities and 
 53.16  expenditures in the preceding year. 
 53.17     Subd. 3.  [SURCHARGE.] Each insurer in the writing of 
 53.18  policies of automobile insurance shall collect a surcharge, at 
 53.19  the rate of 50 cents per vehicle for every six months of 
 53.20  coverage, on each policy of automobile insurance providing 
 53.21  comprehensive insurance coverage issued or renewed in this 
 53.22  state.  The surcharge may not be considered premium for any 
 53.23  purpose, including the computation of premium tax or agents' 
 53.24  commissions.  The amount of the surcharge must be separately 
 53.25  stated on either a billing or policy declaration sent to an 
 53.26  insured.  Insurers shall remit the revenue derived from this 
 53.27  surcharge to the council for purposes of the vehicle theft 
 53.28  prevention program.  For purposes of this subdivision, "policy 
 53.29  of automobile insurance" has the meaning given it in section 
 53.30  65B.14, except that no vehicle with a gross vehicle weight in 
 53.31  excess of 10,000 pounds is included within this definition. 
 53.32     Subd. 4.  [AUTOMOBILE THEFT PREVENTION ACCOUNT; 
 53.33  APPROPRIATION.] A vehicle theft prevention account is created in 
 53.34  the state treasury consisting of the proceeds of the surcharge 
 53.35  imposed under subdivision 3 and earnings attributable to 
 53.36  investment of money deposited in the account.  Money in the 
 54.1   account is annually appropriated to the commissioner for the 
 54.2   purposes of this section.  
 54.3      Sec. 6.  [COMMENCEMENT OF SURCHARGE.] 
 54.4      Each insurer governed by section 1, subdivision 3, shall 
 54.5   begin to collect and remit the surcharge required by that 
 54.6   subdivision on January 1, 1997. 
 54.7      Sec. 7.  [241.81] [COMMUNITY INTERVENTION PROGRAM GRANTS.] 
 54.8      Subdivision 1.  [COMMUNITY APPLICANT.] (a) In order to 
 54.9   qualify for a criminal justice intervention program grant from 
 54.10  the children's cabinet, a community applicant must agree to 
 54.11  develop or provide services for children and youth designed to 
 54.12  encourage, expand, or enhance community alternatives for youth 
 54.13  at risk. 
 54.14     (b) Community applicants are expected to have broad 
 54.15  community representation, which may include judges, police, 
 54.16  corrections, county attorneys, local providers, including school 
 54.17  districts, counties, public health entities, other 
 54.18  municipalities, existing culturally specific community 
 54.19  organizations, family service collaboratives, local health 
 54.20  organizations, private and nonprofit service providers, child 
 54.21  care providers, local foundations, community-based service 
 54.22  groups, businesses, local transit authorities, or other 
 54.23  transportation providers, community action agencies under 
 54.24  section 268.53, senior citizen volunteer organizations, parents, 
 54.25  students, youth service organizations, and sectarian 
 54.26  organizations that provide nonsectarian services.  
 54.27     Subd. 2.  [DUTIES.] (a) Each community applicant shall: 
 54.28     (1) establish clear goals for addressing the needs of 
 54.29  children and youth and use outcome-based indicators to measure 
 54.30  progress toward achieving those goals; 
 54.31     (2) establish or have engaged in a comprehensive planning 
 54.32  process that involves all sectors of the community, identifies 
 54.33  local needs, and surveys existing local programs; and 
 54.34     (3) design or implement an integrated local community 
 54.35  program that coordinates services across agencies and is client 
 54.36  centered.  
 55.1      (b) The outcome-based indicators developed in paragraph 
 55.2   (a), clause (1), may include apprehensions of children, violent 
 55.3   crimes reported, and the rate of violent and injury-related 
 55.4   deaths.  
 55.5      Subd. 3.  [PROGRAM ELEMENTS.] A community applicant shall 
 55.6   design or implement a program that gives priority to: 
 55.7      (1) juvenile restitution; 
 55.8      (2) prearrest diversion; 
 55.9      (3) probation innovation; 
 55.10     (4) teen courts; 
 55.11     (5) community service; or 
 55.12     (6) postincarceration alternatives to assist youth in 
 55.13  returning to their communities. 
 55.14     Subd. 4.  [LOCAL PLANS.] Each community applicant shall 
 55.15  prepare a plan.  The plan shall describe how the community 
 55.16  applicant will carry out the duties required under this 
 55.17  section.  The plan shall include a list of the community 
 55.18  participants, a copy of the agreement required under subdivision 
 55.19  1, and methods for increasing local participation in the 
 55.20  program, involving parents and other community members in 
 55.21  implementing and operating the program.  The plan shall also 
 55.22  include specific goals that the community intends to achieve and 
 55.23  methods for objectively measuring progress toward meeting the 
 55.24  goals.  
 55.25     Subd. 5.  [PLAN APPROVAL BY CHILDREN'S CABINET.] (a) The 
 55.26  children's cabinet established under Minnesota Statutes, section 
 55.27  4.045, shall approve local plans for community justice 
 55.28  intervention programs.  In approving local plans, the children's 
 55.29  cabinet shall give highest priority to a plan that provides:  
 55.30     (1) services for youth eight years old to 13 years old; 
 55.31     (2) participation by the maximum number of public and 
 55.32  private, local, county, and state funding sources; and 
 55.33     (3) clearly defined outcomes and valid methods of 
 55.34  assessment.  
 55.35     (b) The children's cabinet shall ensure that the programs 
 55.36  funded under this section do not conflict with any state or 
 56.1   federal policy or program and do not negatively impact the state 
 56.2   budget.  
 56.3      Subd. 6.  [GRANTS.] The children's cabinet may make grants 
 56.4   to community applicants to fund criminal justice intervention 
 56.5   programs as described in subdivision 4.  The children's cabinet 
 56.6   shall develop a grant application form, inform criminal justice, 
 56.7   social service, and other groups described in subdivision 2, 
 56.8   paragraph (b), about the availability of grants, and set a date 
 56.9   by which applications must be received by the cabinet. 
 56.10     Subd. 7.  [FUNDS.] The amount of grant money available 
 56.11  shall be apportioned on a county population basis.  Funds not 
 56.12  applied for shall be reallocated to the applicants, for 
 56.13  technical amendments, or for evaluations at the commissioner of 
 56.14  corrections' discretion. 
 56.15     Subd. 8.  [RECEIPT OF FUNDS.] The commissioner may receive 
 56.16  and administer public and private funds for the purposes of this 
 56.17  act. 
 56.18     Sec. 8.  [299A.62] [LAW ENFORCEMENT AND COMMUNITY GRANTS.] 
 56.19     Subdivision 1.  [GRANT PROGRAMS.] (a) The commissioner of 
 56.20  public safety may develop grant programs to fund community-based 
 56.21  programs that are designed to enhance the community's sense of 
 56.22  personal security and to assist the community in its crime 
 56.23  control efforts to include but are not limited to the following 
 56.24  programs that: 
 56.25     (1) assist law enforcement agencies in purchasing 
 56.26  equipment, provide undercover buy money, and pay other 
 56.27  nonpersonnel costs; 
 56.28     (2) assist community and neighborhood organizations in 
 56.29  efforts to prevent or reduce criminal activities in their areas, 
 56.30  particularly activities involving youth and the use and sale of 
 56.31  drugs; 
 56.32     (3) assist enforcement agencies in efforts to target and 
 56.33  apprehend violent habitual criminals; 
 56.34     (4) provide neighborhood block clubs and innovative 
 56.35  community-based crime watch programs; 
 56.36     (5) provide community-based programs designed to intervene 
 57.1   with juvenile offenders who are identified as likely to engage 
 57.2   in repeated criminal activity in the future unless intervention 
 57.3   is undertaken; 
 57.4      (6) provide other community-based crime prevention programs 
 57.5   that are innovative and encourage substantial involvement by 
 57.6   members of the community served by the program; and 
 57.7      (7) enable law enforcement agencies to assign overtime 
 57.8   officers to high-crime areas for the purpose of vigorously 
 57.9   enforcing curfew, truancy, and traffic laws, initiating street 
 57.10  contracts, checking for outstanding warrants, generating 
 57.11  intelligence information on suspected drug dealers and gang 
 57.12  members, and arresting criminal law violators. 
 57.13  The commissioner shall prescribe criteria for eligibility and 
 57.14  the award of grants and reporting requirements for recipients. 
 57.15     Sec. 9.  Minnesota Statutes 1994, section 609.52, 
 57.16  subdivision 2, is amended to read: 
 57.17     Subd. 2.  [ACTS CONSTITUTING THEFT.] Whoever does any of 
 57.18  the following commits theft and may be sentenced as provided in 
 57.19  subdivision 3: 
 57.20     (1) intentionally and without claim of right takes, uses, 
 57.21  transfers, conceals or retains possession of movable property of 
 57.22  another without the other's consent and with intent to deprive 
 57.23  the owner permanently of possession of the property; or 
 57.24     (2) having a legal interest in movable property, 
 57.25  intentionally and without consent, takes the property out of the 
 57.26  possession of a pledgee or other person having a superior right 
 57.27  of possession, with intent thereby to deprive the pledgee or 
 57.28  other person permanently of the possession of the property; or 
 57.29     (3) obtains for the actor or another the possession, 
 57.30  custody, or title to property of or performance of services by a 
 57.31  third person by intentionally deceiving the third person with a 
 57.32  false representation which is known to be false, made with 
 57.33  intent to defraud, and which does defraud the person to whom it 
 57.34  is made.  "False representation" includes without limitation: 
 57.35     (a) the issuance of a check, draft, or order for the 
 57.36  payment of money, except a forged check as defined in section 
 58.1   609.631, or the delivery of property knowing that the actor is 
 58.2   not entitled to draw upon the drawee therefor or to order the 
 58.3   payment or delivery thereof; or 
 58.4      (b) a promise made with intent not to perform.  Failure to 
 58.5   perform is not evidence of intent not to perform unless 
 58.6   corroborated by other substantial evidence; or 
 58.7      (c) the preparation or filing of a claim for reimbursement, 
 58.8   a rate application, or a cost report used to establish a rate or 
 58.9   claim for payment for medical care provided to a recipient of 
 58.10  medical assistance under chapter 256B, which intentionally and 
 58.11  falsely states the costs of or actual services provided by a 
 58.12  vendor of medical care; or 
 58.13     (d) the preparation or filing of a claim for reimbursement 
 58.14  for providing treatment or supplies required to be furnished to 
 58.15  an employee under section 176.135 which intentionally and 
 58.16  falsely states the costs of or actual treatment or supplies 
 58.17  provided; or 
 58.18     (e) the preparation or filing of a claim for reimbursement 
 58.19  for providing treatment or supplies required to be furnished to 
 58.20  an employee under section 176.135 for treatment or supplies that 
 58.21  the provider knew were medically unnecessary, inappropriate, or 
 58.22  excessive; or 
 58.23     (4) by swindling, whether by artifice, trick, device, or 
 58.24  any other means, obtains property or services from another 
 58.25  person; or 
 58.26     (5) intentionally commits any of the acts listed in this 
 58.27  subdivision but with intent to exercise temporary control only 
 58.28  and: 
 58.29     (a) the control exercised manifests an indifference to the 
 58.30  rights of the owner or the restoration of the property to the 
 58.31  owner; or 
 58.32     (b) the actor pledges or otherwise attempts to subject the 
 58.33  property to an adverse claim; or 
 58.34     (c) the actor intends to restore the property only on 
 58.35  condition that the owner pay a reward or buy back or make other 
 58.36  compensation; or 
 59.1      (6) finds lost property and, knowing or having reasonable 
 59.2   means of ascertaining the true owner, appropriates it to the 
 59.3   finder's own use or to that of another not entitled thereto 
 59.4   without first having made reasonable effort to find the owner 
 59.5   and offer and surrender the property to the owner; or 
 59.6      (7) intentionally obtains property or services, offered 
 59.7   upon the deposit of a sum of money or tokens in a coin or token 
 59.8   operated machine or other receptacle, without making the 
 59.9   required deposit or otherwise obtaining the consent of the 
 59.10  owner; or 
 59.11     (8) intentionally and without claim of right converts any 
 59.12  article representing a trade secret, knowing it to be such, to 
 59.13  the actor's own use or that of another person or makes a copy of 
 59.14  an article representing a trade secret, knowing it to be such, 
 59.15  and intentionally and without claim of right converts the same 
 59.16  to the actor's own use or that of another person.  It shall be a 
 59.17  complete defense to any prosecution under this clause for the 
 59.18  defendant to show that information comprising the trade secret 
 59.19  was rightfully known or available to the defendant from a source 
 59.20  other than the owner of the trade secret; or 
 59.21     (9) leases or rents personal property under a written 
 59.22  instrument and who with intent to place the property beyond the 
 59.23  control of the lessor conceals or aids or abets the concealment 
 59.24  of the property or any part thereof, or any lessee of the 
 59.25  property who sells, conveys, or encumbers the property or any 
 59.26  part thereof without the written consent of the lessor, without 
 59.27  informing the person to whom the lessee sells, conveys, or 
 59.28  encumbers that the same is subject to such lease and with intent 
 59.29  to deprive the lessor of possession thereof.  Evidence that a 
 59.30  lessee used a false or fictitious name or address in obtaining 
 59.31  the property or fails or refuses to return the property to 
 59.32  lessor within five days after written demand for the return has 
 59.33  been served personally in the manner provided for service of 
 59.34  process of a civil action or sent by certified mail to the last 
 59.35  known address of the lessee, whichever shall occur later, shall 
 59.36  be evidence of intent to violate this clause.  Service by 
 60.1   certified mail shall be deemed to be complete upon deposit in 
 60.2   the United States mail of such demand, postpaid and addressed to 
 60.3   the person at the address for the person set forth in the lease 
 60.4   or rental agreement, or, in the absence of the address, to the 
 60.5   person's last known place of residence; or 
 60.6      (10) alters, removes, or obliterates numbers or symbols 
 60.7   placed on movable property for purpose of identification by the 
 60.8   owner or person who has legal custody or right to possession 
 60.9   thereof with the intent to prevent identification, if the person 
 60.10  who alters, removes, or obliterates the numbers or symbols is 
 60.11  not the owner and does not have the permission of the owner to 
 60.12  make the alteration, removal, or obliteration; or 
 60.13     (11) with the intent to prevent the identification of 
 60.14  property involved, so as to deprive the rightful owner of 
 60.15  possession thereof, alters or removes any permanent serial 
 60.16  number, permanent distinguishing number or manufacturer's 
 60.17  identification number on personal property or possesses, sells 
 60.18  or buys any personal property with knowledge knowing or having 
 60.19  reason to know that the permanent serial number, permanent 
 60.20  distinguishing number or manufacturer's identification number 
 60.21  has been removed or altered may be sentenced in accordance with 
 60.22  the provisions of section 609.52, subdivision 3; or 
 60.23     (12) intentionally deprives another of a lawful charge for 
 60.24  cable television service by: 
 60.25     (i) making or using or attempting to make or use an 
 60.26  unauthorized external connection outside the individual dwelling 
 60.27  unit whether physical, electrical, acoustical, inductive, or 
 60.28  other connection, or by 
 60.29     (ii) attaching any unauthorized device to any cable, wire, 
 60.30  microwave, or other component of a licensed cable communications 
 60.31  system as defined in chapter 238.  Nothing herein shall be 
 60.32  construed to prohibit the electronic video rerecording of 
 60.33  program material transmitted on the cable communications system 
 60.34  by a subscriber for fair use as defined by Public Law Number 
 60.35  94-553, section 107; or 
 60.36     (13) except as provided in paragraphs (12) and (14), 
 61.1   obtains the services of another with the intention of receiving 
 61.2   those services without making the agreed or reasonably expected 
 61.3   payment of money or other consideration; or 
 61.4      (14) intentionally deprives another of a lawful charge for 
 61.5   telecommunications service by:  
 61.6      (i) making, using, or attempting to make or use an 
 61.7   unauthorized connection whether physical, electrical, by wire, 
 61.8   microwave, radio, or other means to a component of a local 
 61.9   telecommunication system as provided in chapter 237; or 
 61.10     (ii) attaching an unauthorized device to a cable, wire, 
 61.11  microwave, radio, or other component of a local 
 61.12  telecommunication system as provided in chapter 237.  
 61.13     The existence of an unauthorized connection is prima facie 
 61.14  evidence that the occupier of the premises:  
 61.15     (i) made or was aware of the connection; and 
 61.16     (ii) was aware that the connection was unauthorized; or 
 61.17     (15) with intent to defraud, diverts corporate property 
 61.18  other than in accordance with general business purposes or for 
 61.19  purposes other than those specified in the corporation's 
 61.20  articles of incorporation; or 
 61.21     (16) with intent to defraud, authorizes or causes a 
 61.22  corporation to make a distribution in violation of section 
 61.23  302A.551, or any other state law in conformity with it; or 
 61.24     (17) intentionally takes or drives a motor vehicle without 
 61.25  the consent of the owner or an authorized agent of the owner. 
 61.26     Sec. 10.  [EFFECTIVE DATE; EXPIRATION.] 
 61.27     Sections 5 and 6 are effective January 1, 1997, and expire 
 61.28  on January 1, 2002. 
 61.29                             ARTICLE 8 
 61.30                          STATE GOVERNMENT 
 61.31  Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
 61.32     The sums in the columns headed "APPROPRIATIONS" are 
 61.33  appropriated from the general fund, or another named fund, to 
 61.34  the agencies and for the purposes specified to be available for 
 61.35  the fiscal years indicated for each purpose. 
 61.36                          SUMMARY BY FUND
 62.1                                             1996         1997
 62.2   General Fund                        $  4,397,000   $ 23,034,000
 62.3   Special Revenue Fund                     -0-             35,000
 62.4                                              APPROPRIATIONS 
 62.5                                          Available for the Year 
 62.6                                              Ending June 30 
 62.7                                             1996         1997 
 62.8   Sec. 2.  DEPARTMENT OF
 62.9   HUMAN RIGHTS                        $    -0-       $    110,000
 62.10  Complaint Processing 
 62.11  $35,000 in fiscal year 1997 is added to 
 62.12  the appropriation in Laws 1995, chapter 
 62.13  254, article 1, section 18, subdivision 
 62.14  3, for litigation expenses.  This 
 62.15  appropriation is from the special 
 62.16  revenue fund.  
 62.17  $75,000 in fiscal year 1997 is added to 
 62.18  the appropriation in Laws 1995, chapter 
 62.19  254, article 1, section 18, subdivision 
 62.20  3, for an alternative dispute 
 62.21  resolution program. 
 62.22  Sec. 3.  DEPARTMENT OF
 62.23  ADMINISTRATION                           -0-          7,811,000
 62.24  (a) Information Policy Office 
 62.25         -0-          7,200,000
 62.26  $7,200,000 in fiscal year 1997 is 
 62.27  appropriated for impact analysis, 
 62.28  staff, and software for state 
 62.29  information system modifications 
 62.30  relating to year 2000 date change 
 62.31  requirements and is added to the 
 62.32  appropriation in Laws 1995, chapter 
 62.33  254, article 1, section 11, subdivision 
 62.34  6. 
 62.35  (b) Operations Management 
 62.36         -0-            611,000
 62.37  $611,000 in fiscal year 1997 is for 
 62.38  critical statewide operating systems 
 62.39  and is added to the appropriation in 
 62.40  Laws 1995, chapter 254, article 1, 
 62.41  section 11, subdivision 2. 
 62.42  (c) Transfer to Micrographics 
 62.43  Rental Fund 
 62.44  $134,000 of contributed capital is 
 62.45  transferred from the electronic 
 62.46  equipment rental fund to the 
 62.47  micrographics/records center fund in 
 62.48  fiscal year 1996.  
 62.49  Sec. 4.  DEPARTMENT OF
 62.50  EMPLOYEE RELATIONS                       -0-            250,000
 62.51  Human Resource Management  
 62.52  $250,000 in fiscal year 1997 is for 
 63.1   critical statewide operating systems 
 63.2   and is added to the appropriation in 
 63.3   Laws 1995, chapter 254, article 1, 
 63.4   section 15, subdivision 2. 
 63.5   Sec. 5.  DEPARTMENT OF
 63.6   FINANCE                                4,397,000     14,898,000 
 63.7   (a) Information Services 
 63.8   $4,397,000 in fiscal year 1996 and 
 63.9   $7,662,000 in fiscal year 1997 is for 
 63.10  critical statewide operating systems 
 63.11  and is added to the appropriation in 
 63.12  Laws 1995, chapter 254, article 1, 
 63.13  section 14, subdivision 6. 
 63.14  (b) Debt Service
 63.15  $7,236,000 in fiscal year 1997 is for 
 63.16  transfer to the debt service fund and 
 63.17  is added to the appropriation in Laws 
 63.18  1995, chapter 254, article 1, section 
 63.19  14. 
 63.20     Sec. 6.  Minnesota Statutes 1994, section 8.15, is amended 
 63.21  by adding a subdivision to read: 
 63.22     Subd. 5.  [REIMBURSEMENTS.] State agencies receiving legal 
 63.23  services for nongeneral funded activities shall reimburse the 
 63.24  full cost of those services to the general fund. 
 63.25     Agencies shall reimburse the general fund based on periodic 
 63.26  billings prepared by the attorney general.  Payment will be made 
 63.27  to the attorney general for deposit to the general fund as a 
 63.28  nondedicated receipt. 
 63.29     Reimbursement policy and procedures related to legal 
 63.30  services will be developed by the attorney general in 
 63.31  consultation with the commissioner of finance. 
 63.32     There is appropriated for fiscal year 1997 from all direct 
 63.33  appropriated nongeneral funds an amount sufficient to reimburse 
 63.34  the general fund for legal costs attributable to general fund 
 63.35  expenditures. 
 63.36     All agency activities supported by fees shall include the 
 63.37  cost of legal services provided in the fees collected. 
 63.38     Sec. 7.  [16A.104] [LONG-TERM EXPENDITURE PLAN.] 
 63.39     Subdivision 1.  [PURPOSE, DEFINITION.] The long-term 
 63.40  expenditure plan is a statement of expenditure goals to provide 
 63.41  long-range policy and program direction to state programs and 
 63.42  recipients of state funds.  The plan shall be based on the most 
 64.1   recent forecasts under section 16A.103 and the governor's and 
 64.2   legislature's determination of state and local needs.  The plan 
 64.3   shall be for the period comprising two biennia, consistent with 
 64.4   provisions of section 16A.102. 
 64.5      Subd. 2.  [GOVERNOR'S RECOMMENDATION.] By the fourth Monday 
 64.6   in January in each odd-numbered year, the governor shall submit 
 64.7   to the legislature a recommended general fund expenditure plan 
 64.8   for the next two biennia. 
 64.9      (a) The plan must specify expenditure targets for all major 
 64.10  functional areas.  Expenditure targets must be identified by 
 64.11  year for, but not limited to, kindergarten through grade 12 
 64.12  education finance, post-secondary education, property tax aid 
 64.13  and credit and local government aid programs, health care, 
 64.14  family support, criminal justice, and all other general fund 
 64.15  spending, including debt service. 
 64.16     (b) The expenditure plan must not exceed the revenue 
 64.17  targets under section 16A.102 for the same biennium. 
 64.18     (c) If a proposed expenditure plan is not structurally 
 64.19  balanced, because prior period balances are proposed to be used, 
 64.20  the plan must identify the one-time nature of any proposed use 
 64.21  of prior period balances and must exclude such balances from the 
 64.22  ongoing expenditure base. 
 64.23     (d) If proposed expenditure targets by functional area are 
 64.24  less than forecast current law expenditures prepared by the 
 64.25  department of finance under sections 16A.103 and 16A.11, the 
 64.26  expenditure plan must identify (by fiscal year) proposed 
 64.27  specific program and policy changes which would be implemented 
 64.28  to reduce expenditures to the target levels. 
 64.29     Subd. 3.  [LEGISLATIVE EXPENDITURE TARGET RESOLUTION.] By 
 64.30  April 1 of each odd-numbered year, the legislature shall, by 
 64.31  concurrent resolution, adopt general fund expenditure targets 
 64.32  for the next two biennia.  The resolution must conform with the 
 64.33  requirements of subdivision 2, paragraphs (a) to (d).  The 
 64.34  resolution must be based on the revenue targets recommended by 
 64.35  the legislature under section 16A.102, subdivision 2. 
 64.36     Subd. 4.  [EVEN-NUMBERED YEAR AND SPECIAL SESSIONS.] The 
 65.1   governor or the legislature may elect to modify their 
 65.2   expenditure targets in a special session or an even-numbered 
 65.3   year regular session.  The requirements of subdivisions 1 to 3 
 65.4   apply, except that within ten days of the start of the session 
 65.5   the dates provided in those subdivisions must be modified to be 
 65.6   consistent with the planned date of adjournment. 
 65.7      Sec. 8.  Minnesota Statutes 1994, section 16A.11, 
 65.8   subdivision 1, is amended to read: 
 65.9      Subdivision 1.  [WHEN.] The governor shall submit a 
 65.10  three-part four-part budget to the legislature.  Parts one and 
 65.11  two, the budget message and detailed operating budget, must be 
 65.12  submitted by the fourth Tuesday in January in each odd-numbered 
 65.13  year.  Part three, the detailed recommendations as to capital 
 65.14  expenditure, must be submitted as follows:  agency capital 
 65.15  budget requests by June 15 of each odd-numbered year; 
 65.16  preliminary governor's recommendations by September 1 of each 
 65.17  odd-numbered year; and final recommendations by February 1 of 
 65.18  each even-numbered year.  Part four, the detailed 
 65.19  recommendations as to information technology expenditure, must 
 65.20  be submitted at the same time, or no later than 14 days after, 
 65.21  the governor submits the budget message to the legislature. 
 65.22     Sec. 9.  Minnesota Statutes 1994, section 16A.11, is 
 65.23  amended by adding a subdivision to read: 
 65.24     Subd. 3b.  [PART FOUR; DETAILED INFORMATION TECHNOLOGY 
 65.25  BUDGET.] The detailed information technology budget must include 
 65.26  recommendations for information technology projects to be funded 
 65.27  during the next biennium and planning estimates for an 
 65.28  additional two biennia.  It must be submitted with projects rank 
 65.29  ordered in order of importance among all projects as determined 
 65.30  by the governor. 
 65.31     Sec. 10.  [16A.123] [STAFF RETIREMENT SAVINGS AND 
 65.32  INVESTMENTS IN TECHNOLOGY/STAFF DEVELOPMENT.] 
 65.33     Subdivision 1.  [APPLICATION.] (a) This section applies to 
 65.34  employees of all state departments and agencies that receive a 
 65.35  direct appropriation from the state's general fund excluding the 
 65.36  following: 
 66.1      (1) employees in the department of corrections having 
 66.2   regular contact with inmates; 
 66.3      (2) sworn officers of the state patrol; 
 66.4      (3) bureau of criminal apprehension agents; 
 66.5      (4) department of natural resources conservation officers; 
 66.6      (5) employees of the University of Minnesota and the 
 66.7   Minnesota state colleges and universities; 
 66.8      (6) employees in the offices of the state's constitutional 
 66.9   officers, the legislature, and the judiciary; 
 66.10     (7) drivers for the metropolitan transit commission; and 
 66.11     (8) employees of the metropolitan council and the 
 66.12  metropolitan waste control commission. 
 66.13     (b) This act does not apply to department and agency heads. 
 66.14     Subd. 2.  [ACCOUNT ESTABLISHED.] The commissioner of 
 66.15  finance shall establish in the general fund a "technology 
 66.16  investment/staff development account" for transfers from agency 
 66.17  budgets related to service retirements.  Amounts remaining in 
 66.18  the account at the end of a fiscal year shall be carried into 
 66.19  the next fiscal year.  Prior to June 30 of each fiscal year, the 
 66.20  commissioner of finance shall transfer to the account, from each 
 66.21  state agency's general fund appropriation for that year, an 
 66.22  amount equal to general fund compensation savings related to 
 66.23  service retirements. 
 66.24     Subd. 3.  [PROCEDURES.] The commissioner of employee 
 66.25  relations, and the commissioner of finance, shall establish 
 66.26  specific procedures to determine the amount of appropriated 
 66.27  general fund money transferred to the account established in 
 66.28  subdivision 2 because of service retirements, and the method of 
 66.29  reflecting the resources allocated to the account in years 
 66.30  beyond the 1996-1997 fiscal biennium. 
 66.31     Subd. 4.  [CRITERIA.] (a) An agency may request and be 
 66.32  appropriated nonrecurring funds from the technology 
 66.33  investment/staff development account for special technology 
 66.34  investment or staff development proposals.  General criteria 
 66.35  that may be used in making this determination include: 
 66.36     (1) funds from this account must not be used as a 
 67.1   substitute for technology or staff development investments 
 67.2   regularly made by the requesting agency; 
 67.3      (2) funds are to be used for projects essential to agency 
 67.4   restructuring and the delivery of services in a more effective 
 67.5   and efficient manner; or 
 67.6      (3) funds are to be used for training to enable 
 67.7   redeployment of staff at risk of layoff to different functions 
 67.8   in state government. 
 67.9      (b) The commissioner of finance, in consultation with the 
 67.10  commissioners of employee relations and administration, shall 
 67.11  prepare more specific criteria for use in evaluating agency 
 67.12  requests. 
 67.13     (c) The commissioner of finance, in consultation with the 
 67.14  commissioners of employee relations and administration, shall 
 67.15  periodically evaluate the requests from agencies and determine 
 67.16  whether the requests are to be funded. 
 67.17     Subd. 5.  [REPORT.] The commissioner of finance shall 
 67.18  report annually to the legislature on the amounts in the 
 67.19  technology investment/staff development account and the amounts 
 67.20  allocated to agencies from the technology investment/staff 
 67.21  development account.  In years during which a detailed 
 67.22  information technology budget is prepared, this information must 
 67.23  be integrated into that budget presentation. 
 67.24     Subd. 6.  [APPROPRIATION.] Amounts available in the 
 67.25  technology investment/staff development account are annually 
 67.26  appropriated to the commissioner of finance for the purpose of 
 67.27  grants to agencies as specified in subdivision 4.  Grants to 
 67.28  agencies in any fiscal year shall not cancel, but shall be 
 67.29  available until expended or until a specific date identified in 
 67.30  an approved project award. 
 67.31     Subd. 7.  [ESTIMATES.] Implementation of this section is 
 67.32  estimated to yield cumulative transfers to the technology 
 67.33  investment/staff development account equaling $2,000,000 for the 
 67.34  biennium ending June 30, 1997, $33,000,000 for the biennium 
 67.35  ending June 30, 1999, and $100,000,000 for the biennium ending 
 67.36  June 30, 2001. 
 68.1      Sec. 11.  [OTHER AGENCIES ENCOURAGED TO DEVELOP SIMILAR 
 68.2   PROCESS.] 
 68.3      The University of Minnesota, the Minnesota state colleges 
 68.4   and universities, the state's constitutional officers, the 
 68.5   legislature, the judiciary, the metropolitan transit commission, 
 68.6   metropolitan council, and the metropolitan waste control 
 68.7   commission are encouraged to adopt a process similar to that 
 68.8   established in section 10. 
 68.9      Sec. 12.  [TIME OF APPLICATION.] 
 68.10     Section 10 applies to retirements taking effect on and 
 68.11  after the first day of the first state pay period beginning 
 68.12  after the day of final enactment of section 10. 
 68.13     Sec. 13.  Minnesota Statutes 1995 Supplement, section 
 68.14  16A.152, subdivision 2, is amended to read: 
 68.15     Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] If on the basis 
 68.16  of a forecast of general fund revenues and expenditures the 
 68.17  commissioner of finance determines that there will be a positive 
 68.18  unrestricted budgetary general fund balance at the close of the 
 68.19  biennium, the commissioner of finance must allocate money to the 
 68.20  budget reserve until the total amount in the account is 
 68.21  $220,000,000.  Additional biennial unrestricted budgetary 
 68.22  general fund balances available after November 1 of every 
 68.23  odd-numbered calendar year are appropriated in January of the 
 68.24  following year to reduce the property tax levy recognition 
 68.25  percent under section 121.904, subdivision 4a, to zero before 
 68.26  additional money beyond $220,000,000 is allocated to the budget 
 68.27  reserve account.  
 68.28     The amounts necessary to meet the requirements of this 
 68.29  section are appropriated from the general fund. 
 68.30     Sec. 14.  Minnesota Statutes 1994, section 16A.152, is 
 68.31  amended by adding a subdivision to read: 
 68.32     Subd. 8.  [CASH FLOW ACCOUNT.] (a) A school cash flow 
 68.33  account is created in the general fund in the state treasury.  
 68.34  Interest and revenues as specified in law shall be deposited 
 68.35  into the account. 
 68.36     (b) $500,000,000 is for initial capitalization.  Funds 
 69.1   shall be transferred from the general fund to the cash flow 
 69.2   account twice each month beginning on July 15, 1996.  The amount 
 69.3   transferred to the school cash flow account each period will be 
 69.4   determined by the department of children, families, and learning 
 69.5   and will reflect the difference between the payment which would 
 69.6   be distributed by the education aids metering system for the 
 69.7   semimonthly period in fiscal year 1997 and the amount of the 
 69.8   payment which would have occurred in fiscal year 1997 for the 
 69.9   payment period if the revenue recognition percent for fiscal 
 69.10  year 1996 had been maintained at 48 percent.  The amount 
 69.11  transferred during fiscal year 1997 shall not exceed 
 69.12  $500,000,000. 
 69.13     (c) The department of children, families, and learning 
 69.14  shall estimate the potential school district borrowing needs 
 69.15  attributable to the revenue recognition policy, consistent with 
 69.16  the assumptions about district expenditure patterns in section 
 69.17  124.195.  When the school cash flow account has a sufficient 
 69.18  balance, aids payments shall be advanced to the district from 
 69.19  the school cash flow account for the time needed to avoid 
 69.20  borrowing by the school district. 
 69.21     (d) The department of children, families, and learning 
 69.22  shall report to the county auditors the amount of funds advanced 
 69.23  to districts under paragraph (c).  County treasurers shall 
 69.24  reduce tax settlements made to school districts and reimburse 
 69.25  the state treasury for the amounts listed in the report by June 
 69.26  30. 
 69.27     (e) School districts may apply to the department of 
 69.28  children, families, and learning for supplemental 
 69.29  interest-bearing cash flow loans.  The interest rate on these 
 69.30  loans shall be determined by the commissioner of finance.  
 69.31  Approval of the loan requests would be contingent on the 
 69.32  availability of cash in the school cash flow account, as 
 69.33  determined by the department of finance. 
 69.34     (f) Advances approved under paragraph (c), loans approved 
 69.35  under paragraph (e), and the interest owed to the state on those 
 69.36  loans shall be repaid to the school cash flow account no later 
 70.1   than the last day of the biennium.  If the advances or the 
 70.2   supplemental loans have not been repaid, the state shall recover 
 70.3   the funds through the procedures specified in section 124.755, 
 70.4   subdivisions 5 and 6. 
 70.5      (g) Additional criteria and repayment terms shall be 
 70.6   determined by the department of children, families, and learning 
 70.7   in consultation with the department of finance. 
 70.8      (h) On July 15 of fiscal year 1998, and each July 15 
 70.9   thereafter, all investment earnings attributable to the prior 
 70.10  fiscal year and all interest payments paid to the account 
 70.11  related to loans under paragraph (e) shall be available for 
 70.12  grants to school districts as determined by the department of 
 70.13  children, families, and learning, in consultation with the 
 70.14  workforce development council. 
 70.15     (i) The amounts necessary to meet the provisions of 
 70.16  paragraphs (c), (e), and (h) are appropriated from the school 
 70.17  cash flow account to the commissioner of children, families, and 
 70.18  learning. 
 70.19     Sec. 15.  Minnesota Statutes 1995 Supplement, section 
 70.20  16D.02, subdivision 8, is amended to read: 
 70.21     Subd. 8.  [ENTERPRISE.] "Enterprise" means the Minnesota 
 70.22  collection enterprise, a separate unit of government established 
 70.23  to carry out the provisions of this chapter, pursuant to under 
 70.24  the commissioner's authority to contract with of the 
 70.25  commissioner of revenue for collection services under section 
 70.26  16D.04, subdivision 1. 
 70.27     Sec. 16.  Minnesota Statutes 1994, section 16D.04, as 
 70.28  amended by Laws 1995, chapter 254, article 5, sections 5 and 6, 
 70.29  is amended to read: 
 70.30     16D.04 [COLLECTION ACTIVITIES.] 
 70.31     Subdivision 1.  [RESPONSIBILITY.] The commissioner of 
 70.32  revenue shall supervise and operate the enterprise in all debt 
 70.33  collection activity. 
 70.34     Subd. 1a.  [DUTIES.] The commissioner enterprise shall 
 70.35  provide services to the state and its agencies to collect debts 
 70.36  owed the state.  The commissioner enterprise is not a collection 
 71.1   agency as defined by section 332.31, subdivision 3, and is not 
 71.2   licensed, bonded, or regulated by the commissioner of commerce 
 71.3   under sections 332.31 to 332.35 or 332.38 to 332.45.  
 71.4   The commissioner enterprise is subject to section 332.37, except 
 71.5   clause (9) or (10).  The commissioner may contract with the 
 71.6   commissioner of revenue for collection services, and may 
 71.7   delegate to the commissioner of revenue any of the 
 71.8   commissioner's duties and powers under this chapter.  Debts 
 71.9   referred to the commissioner of revenue for collection 
 71.10  under this section or section 256.9792 may in turn be referred 
 71.11  by the commissioner of revenue to the enterprise.  An audited 
 71.12  financial statement may not be required as a condition of debt 
 71.13  placement with a private agency if the private agency:  (1) has 
 71.14  errors and omissions coverage under a professional liability 
 71.15  policy in an amount of at least $1,000,000; or (2) has a 
 71.16  fidelity bond to cover actions of its employees, in an amount of 
 71.17  at least $100,000.  In cases of debts referred under section 
 71.18  256.9792, the provisions of this chapter and section 256.9792 
 71.19  apply to the extent they are not in conflict.  If they are in 
 71.20  conflict, the provisions of section 256.9792 control.  For 
 71.21  purposes of this chapter, the referring agency for such debts 
 71.22  remains the department of human services. 
 71.23     Subd. 2.  [AGENCY PARTICIPATION.] A state agency may, at 
 71.24  its option, refer debts to the commissioner enterprise for 
 71.25  collection.  The ultimate responsibility for the debt, including 
 71.26  the reporting of the debt to the commissioner and the decision 
 71.27  with regard to the continuing collection and uncollectibility of 
 71.28  the debt, remains with the referring state agency. 
 71.29     Subd. 3.  [SERVICES.] The commissioner enterprise shall 
 71.30  provide collection services for a state agency, and may provide 
 71.31  for collection services for a court, in accordance with the 
 71.32  terms and conditions of a signed debt qualification plan.  
 71.33     Subd. 4.  [AUTHORITY TO CONTRACT.] The commissioner and the 
 71.34  enterprise may contract with credit bureaus, private collection 
 71.35  agencies, and other entities as necessary for the collection of 
 71.36  debts.  A private collection agency acting under a contract with 
 72.1   the commissioner or the enterprise is subject to sections 332.31 
 72.2   to 332.45, except that the private collection agency may 
 72.3   indicate that it is acting under a contract with the 
 72.4   commissioner or the enterprise.  The commissioner and the 
 72.5   enterprise may not delegate the powers provided under section 
 72.6   16D.08 to any nongovernmental entity. 
 72.7      Sec. 17.  Minnesota Statutes 1994, section 16D.05, is 
 72.8   amended to read: 
 72.9      16D.05 [PRIORITY OF SATISFACTION OF DEBTS.] 
 72.10     Subdivision 1.  [MULTIPLE DEBTS.] If two or more debts owed 
 72.11  by the same debtor are submitted to the commissioner enterprise, 
 72.12  amounts collected on those debts must be applied as prescribed 
 72.13  in this section.  
 72.14     Subd. 2.  [ENFORCEMENT OF LIENS.] If the money received is 
 72.15  collected on a judgment lien under chapter 550, a lien provided 
 72.16  by chapter 514, a consensual lien or security interest, 
 72.17  protection of an interest in property through chapter 570, by 
 72.18  collection process provided by chapters 551 and 571, or by any 
 72.19  other process by which the commissioner enterprise is enforcing 
 72.20  rights in a particular debt, the money must be applied to that 
 72.21  particular debt.  
 72.22     Subd. 3.  [OTHER METHODS OF COLLECTION.] If the money is 
 72.23  collected in any manner not specified in subdivision 2, the 
 72.24  money collected must apply first to the satisfaction of any 
 72.25  debts for child support.  Any debts other than child support 
 72.26  must be satisfied in the order in time in which the commissioner 
 72.27  enterprise received the debts from the referring agency. 
 72.28     Sec. 18.  Minnesota Statutes 1995 Supplement, section 
 72.29  16D.06, is amended to read: 
 72.30     16D.06 [DEBTOR INFORMATION.] 
 72.31     Subdivision 1.  [ACCESS TO GOVERNMENT DATA NOT PUBLIC.] 
 72.32  Notwithstanding chapter 13 or any other state law classifying or 
 72.33  restricting access to government data, upon request from the 
 72.34  commissioner enterprise or the attorney general, state agencies, 
 72.35  political subdivisions, and statewide systems shall disseminate 
 72.36  not public data to the commissioner enterprise or the attorney 
 73.1   general for the sole purpose of collecting debt.  Not public 
 73.2   data disseminated under this subdivision is limited to financial 
 73.3   data of the debtor or data related to the location of the debtor 
 73.4   or the assets of the debtor. 
 73.5      Subd. 2.  [DISCLOSURE OF DATA.] Data received, collected, 
 73.6   created, or maintained by the commissioner enterprise or the 
 73.7   attorney general to collect debts are classified as private data 
 73.8   on individuals under section 13.02, subdivision 12, or nonpublic 
 73.9   data under section 13.02, subdivision 9.  The commissioner 
 73.10  enterprise or the attorney general may disclose not public data: 
 73.11     (1) under section 13.05; 
 73.12     (2) under court order; 
 73.13     (3) under a statute specifically authorizing access to the 
 73.14  not public data; 
 73.15     (4) to provide notices required or permitted by statute; 
 73.16     (5) to an agent of the commissioner enterprise or the 
 73.17  attorney general, including a law enforcement person, attorney, 
 73.18  or investigator acting for the commissioner enterprise or the 
 73.19  attorney general in the investigation or prosecution of a 
 73.20  criminal or civil proceeding relating to collection of a debt; 
 73.21     (6) to report names of debtors, amount of debt, date of 
 73.22  debt, and the agency to whom debt is owed to credit bureaus and 
 73.23  private collection agencies under contract with the commissioner 
 73.24  enterprise; 
 73.25     (7) when necessary to locate the debtor, locate the assets 
 73.26  of the debtor, or to enforce or implement the collection of a 
 73.27  debt; and 
 73.28     (8) to the commissioner of revenue for tax administration 
 73.29  purposes. 
 73.30     The commissioner enterprise and the attorney general may 
 73.31  not disclose data that is not public to a private collection 
 73.32  agency or other entity with whom the commissioner enterprise has 
 73.33  contracted under section 16D.04, subdivision 4, unless 
 73.34  disclosure is otherwise authorized by law. 
 73.35     Sec. 19.  Minnesota Statutes 1994, section 16D.07, is 
 73.36  amended to read: 
 74.1      16D.07 [NOTICE TO DEBTOR.] 
 74.2      The referring agency shall send notice to the debtor by 
 74.3   United States mail or personal delivery at the debtor's last 
 74.4   known address at least 20 days before the debt is referred to 
 74.5   the commissioner enterprise.  The notice must state the nature 
 74.6   and amount of the debt, identify to whom the debt is owed, and 
 74.7   inform the debtor of the remedies available under this chapter. 
 74.8      Sec. 20.  Minnesota Statutes 1994, section 16D.08, as 
 74.9   amended by Laws 1995, chapter 254, article 5, section 8, is 
 74.10  amended to read: 
 74.11     16D.08 [COLLECTION DUTIES AND POWERS.] 
 74.12     Subdivision 1.  [DUTIES.] The commissioner enterprise shall 
 74.13  take all reasonable and cost-effective actions to collect debts 
 74.14  referred to the commissioner enterprise. 
 74.15     Subd. 2.  [POWERS.] In addition to the collection remedies 
 74.16  available to private collection agencies in this state, 
 74.17  the commissioner enterprise, with legal assistance from the 
 74.18  attorney general, may utilize any statutory authority granted to 
 74.19  a referring agency for purposes of collecting debt owed to that 
 74.20  referring agency.  The commissioner enterprise may also use the 
 74.21  tax collection remedies of the commissioner of revenue in 
 74.22  sections 270.06, clauses (7) and (17), excluding the power to 
 74.23  subpoena witnesses; 270.66; 270.69, excluding subdivisions 7 and 
 74.24  13; 270.70, excluding subdivision 14; 270.7001 to 270.72; and 
 74.25  290.92, subdivision 23, except that a continuous wage levy under 
 74.26  section 290.92, subdivision 23, is only effective for 70 days, 
 74.27  unless no competing wage garnishments, executions, or levies are 
 74.28  served within the 70-day period, in which case a wage levy is 
 74.29  continuous until a competing garnishment, execution, or levy is 
 74.30  served in the second or a succeeding 70-day period, in which 
 74.31  case a continuous wage levy is effective for the remainder of 
 74.32  that period.  A debtor who qualifies for cancellation of the 
 74.33  collection penalty under section 16D.11, subdivision 3, clause 
 74.34  (1), can apply to the commissioner of revenue for reduction or 
 74.35  release of a continuous wage levy, if the debtor establishes 
 74.36  that the debtor needs all or a portion of the wages being levied 
 75.1   upon to pay for essential living expenses, such as food, 
 75.2   clothing, shelter, medical care, or expenses necessary for 
 75.3   maintaining employment.  The commissioner's determination not to 
 75.4   reduce or release a continuous wage levy is appealable to 
 75.5   district court.  The word "tax" or "taxes" when used in the tax 
 75.6   collection statutes listed in this subdivision also means debts 
 75.7   referred under this chapter.  For debts other than state taxes 
 75.8   or child support, before any of the tax collection remedies 
 75.9   listed in this subdivision can be used, except for the remedies 
 75.10  in section 270.06, clauses (7) and (17), if the referring agency 
 75.11  has not already obtained a judgment or filed a lien, 
 75.12  the commissioner enterprise must first obtain a judgment against 
 75.13  the debtor.  
 75.14     Sec. 21.  Minnesota Statutes 1994, section 16D.10, is 
 75.15  amended to read: 
 75.16     16D.10 [CASE REVIEWER.] 
 75.17     The commissioner enterprise shall make a case reviewer 
 75.18  available to debtors.  The reviewer must be available to answer 
 75.19  a debtor's questions concerning the collection process and to 
 75.20  review the collection activity taken.  If the reviewer 
 75.21  reasonably believes that the particular action being taken is 
 75.22  unreasonable or unfair, the reviewer may make recommendations to 
 75.23  the commissioner enterprise in regard to the collection action.  
 75.24     Sec. 22.  Minnesota Statutes 1995 Supplement, section 
 75.25  16D.11, is amended to read: 
 75.26     16D.11 [COLLECTION PENALTY.] 
 75.27     Subdivision 1.  [IMPOSITION.] As determined by the 
 75.28  commissioner, a penalty shall be added to the debts referred to 
 75.29  the commissioner enterprise or private collection agency for 
 75.30  collection.  The penalty is collectible by the commissioner 
 75.31  enterprise or private agency from the debtor at the same time 
 75.32  and in the same manner as the referred debt.  The referring 
 75.33  agency shall advise the debtor of the penalty under this section 
 75.34  and the debtor's right to cancellation of the penalty under 
 75.35  subdivision 3 at the time the agency sends notice to the debtor 
 75.36  under section 16D.07.  If the commissioner enterprise or private 
 76.1   agency collects an amount less than the total due, the payment 
 76.2   is applied proportionally to the penalty and the underlying 
 76.3   debt.  Penalties collected by the commissioner enterprise under 
 76.4   this subdivision or retained under subdivision 6 shall be 
 76.5   deposited in the general fund as nondedicated receipts.  
 76.6   Penalties collected by private agencies are appropriated to the 
 76.7   referring agency to pay the collection fees charged by the 
 76.8   private agency.  Penalty collections in excess of collection 
 76.9   agency fees must be deposited in the general fund as 
 76.10  nondedicated receipts.  
 76.11     Subd. 2.  [COMPUTATION.] Beginning July 1, 1995, at the 
 76.12  time a debt is referred, the amount of the penalty is equal to 
 76.13  15 percent of the debt, or 25 percent of the debt remaining 
 76.14  unpaid if the commissioner enterprise or private collection 
 76.15  agency has to take enforced collection action by serving a 
 76.16  summons and complaint on or entering judgment against the 
 76.17  debtor, or by utilizing any of the remedies authorized under 
 76.18  section 16D.08, subdivision 2, except for the remedies in 
 76.19  sections 270.06, clause (7), and 270.66 or when referred by 
 76.20  the commissioner enterprise for additional collection activity 
 76.21  by a private collection agency.  If, after referral of a debt to 
 76.22  a private collection agency, the debtor requests cancellation of 
 76.23  the penalty under subdivision 3, the debt must be returned to 
 76.24  the commissioner enterprise for resolution of the request. 
 76.25     Subd. 3.  [CANCELLATION.] The penalty imposed under 
 76.26  subdivision 1 shall be canceled and subtracted from the amount 
 76.27  due if: 
 76.28     (1) the debtor's household income as defined in section 
 76.29  290A.03, subdivision 5, excluding the exemption subtractions in 
 76.30  subdivision 3, paragraph (3) of that section, for the 12 months 
 76.31  preceding the date of referral is less than twice the annual 
 76.32  federal poverty guideline under United States Code, title 42, 
 76.33  section 9902, subsection (2); 
 76.34     (2) within 60 days after the first contact with the debtor 
 76.35  by the enterprise or collection agency, the debtor establishes 
 76.36  reasonable cause for the failure to pay the debt prior to 
 77.1   referral of the debt to the enterprise; 
 77.2      (3) a good faith dispute as to the legitimacy or the amount 
 77.3   of the debt is made, and payment is remitted or a payment 
 77.4   agreement is entered into within 30 days after resolution of the 
 77.5   dispute; 
 77.6      (4) good faith litigation occurs and the debtor's position 
 77.7   is substantially justified, and if the debtor does not totally 
 77.8   prevail, the debt is paid or a payment agreement is entered into 
 77.9   within 30 days after the judgment becomes final and 
 77.10  nonappealable; or 
 77.11     (5) penalties have been added by the referring agency and 
 77.12  are included in the amount of the referred debt. 
 77.13     Subd. 4.  [APPEAL.] Decisions of the commissioner of 
 77.14  revenue denying an application to cancel the penalty under 
 77.15  subdivision 3 are subject to the contested case procedure under 
 77.16  chapter 14. 
 77.17     Subd. 5.  [REFUND.] If a penalty is collected and then 
 77.18  canceled, the amount of the penalty shall be refunded to the 
 77.19  debtor within 30 days.  The amount necessary to pay the refunds 
 77.20  is annually appropriated to the commissioner enterprise. 
 77.21     Subd. 6.  [CHARGE TO REFERRING AGENCY.] If the penalty is 
 77.22  canceled under subdivision 3, an amount equal to the penalty is 
 77.23  retained by the commissioner enterprise from the debt collected, 
 77.24  and is accounted for and subject to the same provisions of this 
 77.25  chapter as if the penalty had been collected from the debtor. 
 77.26     Subd. 7.  [ADJUSTMENT OF RATE.] By June 1 of each year, the 
 77.27  commissioner shall determine the rate of the penalty for debts 
 77.28  referred to the enterprise during the next fiscal year.  The 
 77.29  rate is a percentage of the debts in an amount that most nearly 
 77.30  equals the costs of the enterprise necessary to process and 
 77.31  collect referred debts under this chapter.  In no event shall 
 77.32  the rate of the penalty when a debt is first referred exceed 
 77.33  three-fifths of the maximum penalty, and in no event shall the 
 77.34  rate of the maximum penalty exceed 25 percent of the debt.  
 77.35  Determination of the rate of the penalty under this section is 
 77.36  not rulemaking under chapter 14, and is not subject to the fee 
 78.1   setting requirements of section 16A.1285. 
 78.2      Sec. 23.  Minnesota Statutes 1995 Supplement, section 
 78.3   16D.12, is amended to read: 
 78.4      16D.12 [PAYMENT OF COLLECTION AGENCY FEES.] 
 78.5      Unless otherwise expressly prohibited by law, a state 
 78.6   agency may pay for the services of a state the enterprise or 
 78.7   private collection agency from the money collected.  The portion 
 78.8   of the money collected which must be paid to the enterprise or 
 78.9   private collection agency as its collection fee is appropriated 
 78.10  from the fund to which the collected money is due. 
 78.11     Sec. 24.  Minnesota Statutes 1995 Supplement, section 
 78.12  16D.14, is amended to read: 
 78.13     16D.14 [VENUE.] 
 78.14     Subdivision 1.  [AUTHORIZATION.] The commissioner 
 78.15  enterprise or the attorney general may bring an action to 
 78.16  recover debts owed to the state in Ramsey county district court 
 78.17  or Ramsey county conciliation court at the discretion of the 
 78.18  state.  In order to bring a cause of action under this section 
 78.19  in any county other than the county where the debtor resides or 
 78.20  where the cause of action arose, the commissioner enterprise or 
 78.21  the attorney general must notify the debtor as provided in 
 78.22  subdivisions 2 to 4, unless that venue is authorized by other 
 78.23  law. 
 78.24     Subd. 2.  [CONCILIATION COURT; CLAIMS FOR $2,500 OR LESS.] 
 78.25  (a) Before bringing a conciliation court action for a claim for 
 78.26  $2,500 or less under this section in any county other than where 
 78.27  the debtor resides or where the cause of action arose, the 
 78.28  commissioner enterprise or the attorney general shall send a 
 78.29  form by first class mail to the debtor's last known address 
 78.30  notifying the debtor of the intent to bring an action in Ramsey 
 78.31  county.  The commissioner enterprise or attorney general must 
 78.32  enclose a form for the debtor to use to request that the action 
 78.33  not be brought in Ramsey county and a self-addressed, postage 
 78.34  paid envelope.  The form must advise the debtor of the right to 
 78.35  request that the action not be brought in Ramsey county and that 
 78.36  the debtor has 30 days from the date of the form to make this 
 79.1   request. 
 79.2      (b) If the debtor timely returns the form requesting the 
 79.3   action not be brought in Ramsey county, the commissioner 
 79.4   enterprise or attorney general may only file the action in the 
 79.5   county of the debtor's residence, the county where the cause of 
 79.6   action arose, or as provided by other law.  The commissioner 
 79.7   enterprise or attorney general shall notify the debtor of the 
 79.8   action taken.  If the debtor does not timely return the form, 
 79.9   venue is as chosen by the commissioner enterprise or attorney 
 79.10  general as authorized under this section. 
 79.11     (c) If a judgment is obtained in Ramsey county conciliation 
 79.12  court when the form was sent by first class mail under this 
 79.13  subdivision and the debtor reasonably demonstrates that the 
 79.14  debtor did not reside at the address where the form was sent or 
 79.15  that the debtor did not receive the form, the commissioner 
 79.16  enterprise or the attorney general shall vacate the judgment 
 79.17  without prejudice and return any funds collected as a result of 
 79.18  enforcement of the judgment.  Evidence of the debtor's correct 
 79.19  address include, but are not limited to, a driver's license, 
 79.20  homestead declaration, school registration, utility bills, or a 
 79.21  lease or rental agreement. 
 79.22     Subd. 3.  [CONCILIATION COURT CLAIMS EXCEEDING $2,500.] (a) 
 79.23  In order to bring a conciliation court claim that exceeds $2,500 
 79.24  under this section in a county other than where the debtor 
 79.25  resides or where the cause of action arose, the 
 79.26  commissioner enterprise or the attorney general shall serve with 
 79.27  the conciliation court claim a change of venue form for the 
 79.28  debtor to use to request that venue be changed and a 
 79.29  self-addressed, postage paid return envelope.  This form must 
 79.30  advise the debtor that the form must be returned within 30 days 
 79.31  of the date of service or venue will remain in Ramsey county. 
 79.32     (b) If the debtor timely returns the change of venue form 
 79.33  requesting a change of venue, the commissioner enterprise or 
 79.34  attorney general shall change the venue of the action to the 
 79.35  county of the debtor's residence, the county where the cause of 
 79.36  action arose, as provided by other law, or dismiss the action.  
 80.1   The commissioner enterprise or attorney general must notify the 
 80.2   debtor of the action taken.  If the debtor does not timely 
 80.3   return the form, venue is as chosen by the commissioner 
 80.4   enterprise or attorney general as authorized under this 
 80.5   section.  The commissioner enterprise or the attorney general 
 80.6   shall file the signed return receipt card or the proof of 
 80.7   service with the court. 
 80.8      Subd. 4.  [DISTRICT COURT.] (a) In order to bring a 
 80.9   district court action under this section in any county other 
 80.10  than where the debtor resides or where the cause of action 
 80.11  arose, the commissioner enterprise or attorney general shall 
 80.12  serve the change of venue form with the summons and complaint or 
 80.13  petition commencing the collection action.  Two copies of the 
 80.14  form must be served along with a self-addressed, postage paid 
 80.15  return envelope.  The form must advise the debtor that the form 
 80.16  must be returned within 20 days of the date of service or venue 
 80.17  will remain in Ramsey county.  If the debtor timely returns the 
 80.18  change of venue form, the time to answer the summons and 
 80.19  complaint or petition runs from the date of debtor's request for 
 80.20  change of venue. 
 80.21     (b) If the debtor timely returns the change of venue form 
 80.22  requesting that the action not be brought in Ramsey county, the 
 80.23  commissioner enterprise or attorney general shall change the 
 80.24  venue of the action to the county of the debtor's residence, the 
 80.25  county where the cause of action arose, as provided by other 
 80.26  law, or dismiss the action.  The commissioner enterprise or 
 80.27  attorney general shall notify the debtor of the action taken.  
 80.28  If the debtor is served the form to change venue along with the 
 80.29  district court summons and complaint or petition, in accordance 
 80.30  with court rules, but does not return the form within the 
 80.31  statutory timelines, venue is as chosen by the commissioner 
 80.32  enterprise or attorney general as authorized under this 
 80.33  section.  The commissioner enterprise or attorney general shall 
 80.34  file the proof of service along with the summons and complaint 
 80.35  or petition commencing the lawsuit. 
 80.36     Subd. 5.  [FEES.] No court filing fees, docketing fees, or 
 81.1   release of judgment fees may be assessed against the state for 
 81.2   collection actions filed under this chapter. 
 81.3      Sec. 25.  Minnesota Statutes 1995 Supplement, section 
 81.4   16D.16, is amended to read: 
 81.5      16D.16 [SETOFFS.] 
 81.6      Subdivision 1.  [AUTHORIZATION.] The commissioner 
 81.7   enterprise or a state agency may automatically deduct the amount 
 81.8   of a debt owed to the state from any state payment due to the 
 81.9   debtor, except tax refunds, earned income tax credit, child care 
 81.10  tax credit, prejudgment debts of $5,000 or less, funds exempt 
 81.11  under section 550.37, or funds owed an individual who receives 
 81.12  assistance under the provisions of chapter 256 are not subject 
 81.13  to setoff under this chapter.  If a debtor has entered into a 
 81.14  written payment plan with respect to payment of a specified 
 81.15  debt, the right of setoff may not be used to satisfy that debt.  
 81.16  Notwithstanding section 181.79, the state may deduct from the 
 81.17  wages due or earned by a state employee to collect a debt, 
 81.18  subject to the limitations in section 571.922. 
 81.19     Subd. 2.  [NOTICE AND HEARING.] Before setoff, the 
 81.20  commissioner enterprise or state agency shall mail written 
 81.21  notice by certified mail to the debtor, addressed to the 
 81.22  debtor's last known address, that the commissioner enterprise or 
 81.23  state agency intends to set off a debt owed to the state by the 
 81.24  debtor against future payments due the debtor from the state.  
 81.25  For debts owed to the state that have not been reduced to 
 81.26  judgment, if no opportunity to be heard or administrative appeal 
 81.27  process has yet been made available to the debtor to contest the 
 81.28  validity or accuracy of the debt, before setoff for a 
 81.29  prejudgment debt, the notice to the debtor must advise that the 
 81.30  debtor has a right to make a written request for a contested 
 81.31  case hearing on the validity of the debt or the right to 
 81.32  setoff.  The debtor has 30 days from the date of that notice to 
 81.33  make a written request for a contested case hearing to contest 
 81.34  the validity of the debt or the right to setoff.  The debtor's 
 81.35  request must state the debtor's reasons for contesting the debt 
 81.36  or the right to setoff.  If the commissioner enterprise or state 
 82.1   agency desires to pursue the right to setoff following receipt 
 82.2   of the debtor's request for a hearing, the commissioner 
 82.3   enterprise or state agency shall schedule a contested case 
 82.4   hearing within 30 days of the receipt of the request for the 
 82.5   hearing.  If the commissioner enterprise or state agency decides 
 82.6   not to pursue the right to setoff, the debtor must be notified 
 82.7   of that decision. 
 82.8      Sec. 26.  Minnesota Statutes 1994, section 43A.06, is 
 82.9   amended by adding a subdivision to read: 
 82.10     Subd. 9.  [INVESTIGATION OF ALLEGED OR SUSPECTED 
 82.11  MISCONDUCT.] The commissioner shall have the authority to 
 82.12  investigate any matter of suspected or alleged misconduct on the 
 82.13  part of any state employee, and may assess individual agencies 
 82.14  for costs incurred in the process of any investigation relating 
 82.15  to that agency.  The assessment is appropriated to the 
 82.16  department of employee relations. 
 82.17     Sec. 27.  Minnesota Statutes 1994, section 69.021, 
 82.18  subdivision 4, is amended to read: 
 82.19     Subd. 4.  [DETERMINATION OF QUALIFIED STATE AID RECIPIENTS; 
 82.20  CERTIFICATION TO COMMISSIONER OF REVENUE.] The commissioner 
 82.21  shall determine which municipalities and independent nonprofit 
 82.22  firefighting corporations are qualified to receive fire state 
 82.23  aid and which municipalities and counties are qualified to 
 82.24  receive state peace officer aid.  The commissioner shall 
 82.25  determine qualification upon receipt of (1) the fire department 
 82.26  personnel and equipment certification or the police department 
 82.27  and qualified peace officers certificate, whichever is 
 82.28  applicable, required under section 69.011, (2) the financial 
 82.29  compliance report required under section 6.495, and (3) any 
 82.30  other relevant information which comes to the attention of the 
 82.31  commissioner.  Upon completion of the determination, on or 
 82.32  before September October 1, the commissioner shall calculate 
 82.33  under subdivision 6 the amount of (a) state peace officer aid 
 82.34  which each county or municipality is to receive and (b) fire 
 82.35  state aid which each municipality or nonprofit firefighting 
 82.36  corporation is to receive.  The commissioner shall certify to 
 83.1   the commissioner of finance the name of each county or 
 83.2   municipality, and the amount of state aid which each county or 
 83.3   municipality is to receive, in the case of state peace officer 
 83.4   aid; and the name of each municipality or independent nonprofit 
 83.5   firefighting corporation and the amount of state aid which each 
 83.6   municipality or independent nonprofit firefighting corporation 
 83.7   is to receive, in the case of fire state aid. 
 83.8      Sec. 28.  Minnesota Statutes 1994, section 69.021, is 
 83.9   amended by adding a subdivision to read: 
 83.10     Subd. 10.  [REDUCTION.] The commissioner of revenue shall 
 83.11  reduce the apportionment of police state aid under subdivisions 
 83.12  5, paragraph (b), 6, and 7, for eligible employer units by any 
 83.13  amount in excess of the employer's total prior calendar year 
 83.14  obligation under section 353.65, as certified by the executive 
 83.15  director of the public employees retirement association.  The 
 83.16  total shall be deposited in a separate excess police state aid 
 83.17  account in the general fund, administered and distributed as 
 83.18  provided in section 353.65, subdivision 7. 
 83.19     Sec. 29.  Minnesota Statutes 1994, section 69.031, 
 83.20  subdivision 1, is amended to read: 
 83.21     Subdivision 1.  [COMMISSIONER OF FINANCE'S WARRANT.] The 
 83.22  commissioner of finance shall issue to the county, municipality, 
 83.23  or independent nonprofit firefighting corporation certified to 
 83.24  the commissioner of finance by the commissioner a warrant for an 
 83.25  amount equal to the amount certified to by the commissioner 
 83.26  pursuant to section 69.021.  The amount due and not paid 
 83.27  by September October 1 accrues interest at the rate of one 
 83.28  percent for each month or part of a month the amount remains 
 83.29  unpaid, beginning the preceding July 1. 
 83.30     Sec. 30.  Minnesota Statutes 1994, section 69.031, 
 83.31  subdivision 5, is amended to read: 
 83.32     Subd. 5.  [DEPOSIT OF STATE AID.] (1) The municipal 
 83.33  treasurer, on receiving the fire state aid, shall within 30 days 
 83.34  after receipt transmit it to the treasurer of the duly 
 83.35  incorporated firefighters' relief association if there is one 
 83.36  organized and the association has filed a financial report with 
 84.1   the municipality; but if there is no relief association 
 84.2   organized, or if any association dissolve, be removed, or has 
 84.3   heretofore dissolved, or has been removed as trustees of state 
 84.4   aid, then the treasurer of the municipality shall keep the money 
 84.5   in the municipal treasury as provided for in section 424A.08 and 
 84.6   shall be disbursed only for the purposes and in the manner set 
 84.7   forth in that section.  
 84.8      (2) The municipal treasurer, upon receipt of the police 
 84.9   state aid, shall disburse the police state aid in the following 
 84.10  manner: 
 84.11     (a) For a municipality in which a local police relief 
 84.12  association exists and all peace officers are members of the 
 84.13  association, the total state aid shall be transmitted to the 
 84.14  treasurer of the relief association within 30 days of the date 
 84.15  of receipt, and the treasurer of the relief association shall 
 84.16  immediately deposit the total state aid in the special fund of 
 84.17  the relief association; 
 84.18     (b) For a municipality in which police retirement coverage 
 84.19  is provided by the public employees police and fire fund and all 
 84.20  peace officers are members of the fund, the total state aid 
 84.21  shall be applied toward the municipality's employer contribution 
 84.22  to the public employees police and fire fund pursuant to section 
 84.23  353.65, subdivision 3, and any state aid in excess of the amount 
 84.24  required to meet the employer's contribution pursuant to section 
 84.25  353.65, subdivision 3, shall be deposited in the excess 
 84.26  contributions holding account of the public employees retirement 
 84.27  association; or 
 84.28     (c) For a municipality other than a city of the first class 
 84.29  with a population of more than 300,000 in which both a police 
 84.30  relief association exists and police retirement coverage is 
 84.31  provided in part by the public employees police and fire fund, 
 84.32  the municipality may elect at its option to transmit the total 
 84.33  state aid to the treasurer of the relief association as provided 
 84.34  in clause (a), to use the total state aid to apply toward the 
 84.35  municipality's employer contribution to the public employees 
 84.36  police and fire fund subject to all the provisions set forth in 
 85.1   clause (b), or to allot the total state aid proportionately to 
 85.2   be transmitted to the police relief association as provided in 
 85.3   this subdivision and to apply toward the municipality's employer 
 85.4   contribution to the public employees police and fire fund 
 85.5   subject to the provisions of clause (b) on the basis of the 
 85.6   respective number of active full-time peace officers, as defined 
 85.7   in section 69.011, subdivision 1, clause (g). 
 85.8      For a city of the first class with a population of more 
 85.9   than 300,000, in addition, the city may elect to allot the 
 85.10  appropriate portion of the total police state aid to apply 
 85.11  toward the employer contribution of the city to the public 
 85.12  employees police and fire fund based on the covered salary of 
 85.13  police officers covered by the fund each payroll period and to 
 85.14  transmit the balance to the police relief association. 
 85.15     (3) The county treasurer, upon receipt of the police state 
 85.16  aid for the county, shall apply the total state aid toward the 
 85.17  county's employer contribution to the public employees police 
 85.18  and fire fund pursuant to section 353.65, subdivision 3, and any 
 85.19  state aid in excess of the amount required to meet the 
 85.20  employer's contribution pursuant to section 353.65, subdivision 
 85.21  3, shall be deposited in the excess contributions holding 
 85.22  account of the public employees retirement association. 
 85.23     (4) The designated metropolitan airports commission 
 85.24  official, upon receipt of the police state aid for the 
 85.25  metropolitan airports commission, shall apply the total police 
 85.26  state aid toward the commission's employer contribution to the 
 85.27  Minneapolis employees retirement fund under section 422A.101, 
 85.28  subdivision 2a. 
 85.29     Sec. 31.  Minnesota Statutes 1994, section 124.195, 
 85.30  subdivision 7, is amended to read: 
 85.31     Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
 85.32  fiscal year state general fund payments for a district 
 85.33  nonoperating fund shall be made at 85 percent of the estimated 
 85.34  entitlement during the fiscal year of the entitlement, unless a 
 85.35  higher rate has been established according to section 121.904, 
 85.36  subdivision 4d.  This amount shall be paid in 12 equal monthly 
 86.1   installments.  The amount of the actual entitlement, after 
 86.2   adjustment for actual data, minus the payments made during the 
 86.3   fiscal year of the entitlement shall be paid prior to October 31 
 86.4   of the following school year.  The commissioner may make advance 
 86.5   payments of homestead and agricultural credit aid for a 
 86.6   district's debt service fund earlier than would occur under the 
 86.7   preceding schedule if the district submits evidence showing a 
 86.8   serious cash flow problem in the fund.  The commissioner may 
 86.9   make earlier payments during the year and, if necessary, 
 86.10  increase the percent of the entitlement paid to reduce the cash 
 86.11  flow problem. 
 86.12     Sec. 32.  Minnesota Statutes 1995 Supplement, section 
 86.13  124.195, subdivision 10, is amended to read: 
 86.14     Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
 86.15  subdivisions 8, 9, and 11, each fiscal year, all education aids 
 86.16  and credits in this chapter and chapters 121, 123, 124A, 124B, 
 86.17  125, 126, 134, and section 273.1392, shall be paid at 90 percent 
 86.18  for districts operating a program under section 121.585 for 
 86.19  grades 1 to 12 for all students in the district and 85 percent 
 86.20  for other districts of the estimated entitlement during the 
 86.21  fiscal year of the entitlement, unless a higher rate has been 
 86.22  established according to section 121.904, subdivision 4d.  
 86.23  Districts operating a program under section 121.585 for grades 1 
 86.24  to 12 for all students in the district shall receive 85 percent 
 86.25  of the estimated entitlement plus an additional amount of 
 86.26  general education aid equal to five percent of the estimated 
 86.27  entitlement.  For all districts, the final adjustment payment, 
 86.28  according to subdivision 6, shall be the amount of the actual 
 86.29  entitlement, after adjustment for actual data, minus the 
 86.30  payments made during the fiscal year of the entitlement. 
 86.31     Sec. 33.  Minnesota Statutes 1994, section 144C.03, 
 86.32  subdivision 2, is amended to read: 
 86.33     Subd. 2.  [TRUST ACCOUNT.] (a) There is established in the 
 86.34  general fund an ambulance service personnel longevity award and 
 86.35  incentive trust account and an ambulance service personnel 
 86.36  longevity award and incentive suspense account.  
 87.1      (b) The trust account must be credited with:  
 87.2      (1) general fund appropriations for that purpose; 
 87.3      (2) transfers from the ambulance service personnel 
 87.4   longevity award and incentive suspense account; and 
 87.5      (3) investment earnings on those accumulated proceeds.  The 
 87.6   assets and income of the trust account must be held and managed 
 87.7   by the commissioner of finance and the state board of investment 
 87.8   for the benefit of the state of Minnesota and its general 
 87.9   creditors. 
 87.10     (c) The suspense account must be credited with transfers 
 87.11  from the excess contributions police state aid holding account 
 87.12  established in section 353.65, subdivision 7, any 
 87.13  per-year-of-service allocation under section 144C.07, 
 87.14  subdivision 2, paragraph (c), that was not made for an 
 87.15  individual, and investment earnings on those accumulated 
 87.16  proceeds.  The suspense account must be managed by the 
 87.17  commissioner of finance and the state board of investment.  From 
 87.18  the suspense account to the trust account there must be 
 87.19  transferred to the ambulance service personnel longevity award 
 87.20  and incentive trust account, as the suspense account balance 
 87.21  permits, the following amounts: 
 87.22     (1) an amount equal to any general fund appropriation to 
 87.23  the ambulance service personnel longevity award and incentive 
 87.24  trust account for that fiscal year; and 
 87.25     (2) an amount equal to the percentage of the remaining 
 87.26  balance in the account after the deduction of the amount under 
 87.27  clause (1), as specified for the applicable fiscal year: 
 87.28            Fiscal year            Percentage  
 87.29              1995                    20  
 87.30              1996                    40 
 87.31              1997                    50 
 87.32              1998                    60 
 87.33              1999                    70 
 87.34              2000                    80 
 87.35              2001                    90 
 87.36              2002 and thereafter    100 
 88.1      Sec. 34.  Minnesota Statutes 1995 Supplement, section 
 88.2   353.65, subdivision 7, is amended to read: 
 88.3      Subd. 7.  [EXCESS CONTRIBUTIONS POLICE STATE AID HOLDING 
 88.4   ACCOUNT.] (a) The excess contributions holding account is 
 88.5   established in the public employees retirement 
 88.6   association general fund.  Excess contributions established 
 88.7   by police state aid determined according to section 
 88.8   69.031 ......, subdivision subdivisions 5, paragraphs (2), 
 88.9   clauses (b) and (c), and (3) paragraph (a), 6, and 7, must be 
 88.10  deposited in the account.  These contributions and all 
 88.11  investment earnings associated with them This excess aid must be 
 88.12  regularly transferred as provided in paragraph (b). 
 88.13     (b) From the amount of the excess contributions and 
 88.14  associated investment earnings: 
 88.15     (1) police state aid, $1,000,000 must be transferred 
 88.16  annually to the ambulance service personnel longevity award and 
 88.17  incentive suspense account established by section 144C.03, 
 88.18  subdivision 2; and 
 88.19     (2) any remaining balance, after deduction of the 
 88.20  additional amortization aid allocation, if any, under paragraph 
 88.21  (d), must be transferred to the general fund. 
 88.22     (c) If a law is enacted creating a police officer stress 
 88.23  reduction program, and money is appropriated for the program, an 
 88.24  amount equal to the appropriation must be transferred from the 
 88.25  excess contributions holding account to the stress reduction 
 88.26  program before money is allocated under paragraph (b), clause 
 88.27  (2) (d). 
 88.28     (d) On October 1, 1997, and annually on each October 1 
 88.29  thereafter, one-half of the money remaining balance in the 
 88.30  excess contributions police state aid holding account under 
 88.31  paragraph (b), clause (2), collected during the immediately 
 88.32  preceding July 1 through June 30 period must be allocated by the 
 88.33  commissioner of revenue to all local police or salaried 
 88.34  firefighter relief associations governed by and in full 
 88.35  compliance with section 69.77 that had an unfunded actuarial 
 88.36  accrued liability in the actuarial valuation prepared under 
 89.1   sections 356.215 and 356.216 as of the preceding December 31, 
 89.2   and to all local police or salaried firefighter consolidation 
 89.3   accounts governed by chapter 353A that are certified by the 
 89.4   executive director of the public employees retirement 
 89.5   association as having for the current fiscal year an additional 
 89.6   municipal contribution amount under section 353A.09, subdivision 
 89.7   5, paragraph (b), and that have implemented Minnesota Statutes 
 89.8   1994, section 353A.083, if the effective date of the 
 89.9   consolidation preceded May 24, 1993, and that have implemented 
 89.10  section 353A.083, if the effective date of the consolidation 
 89.11  preceded the date of enactment, on the basis of the relief 
 89.12  association or consolidation account's proportional share of the 
 89.13  total unfunded actuarial accrued liability of all recipient 
 89.14  relief associations and consolidation accounts as of December 
 89.15  31, 1993, or June 30, 1994, whichever applies.  Any remaining 
 89.16  balance in the excess police state aid account cancels to the 
 89.17  general fund. 
 89.18     Sec. 35.  [363.065] [ALTERNATIVE DISPUTE RESOLUTION.] 
 89.19     There shall be, in the department, an alternative dispute 
 89.20  resolution program to resolve disputes arising under the human 
 89.21  rights act, with a process to:  
 89.22     (1) administer the alternative dispute resolution program; 
 89.23     (2) follow-up with parties willing to use alternative 
 89.24  dispute resolution; 
 89.25     (3) develop and maintain a panel of mediators and advisors 
 89.26  and assign them to cases; 
 89.27     (4) track progress of alternative dispute resolution cases; 
 89.28  and 
 89.29     (5) conduct evaluations of the program. 
 89.30     Sec. 36.  Minnesota Statutes 1994, section 363.071, 
 89.31  subdivision 7, is amended to read: 
 89.32     Subd. 7.  [LITIGATION AND HEARING COSTS.] The 
 89.33  administrative law judge shall order a respondent who is 
 89.34  determined to have engaged in an unfair discriminatory practice 
 89.35  to reimburse the department and the attorney general for all 
 89.36  appropriate litigation and hearing costs expended in preparing 
 90.1   for and conducting the hearing, unless payment of the costs 
 90.2   would impose a financial hardship on the respondent.  
 90.3   Appropriate costs include but are not limited to the costs of 
 90.4   services rendered by the attorney general, private attorneys if 
 90.5   engaged by the department, administrative law judges, court 
 90.6   reporters, and expert witnesses as well as the costs of 
 90.7   transcripts and other necessary supplies and materials. 
 90.8      Money reimbursed to the department of human rights under 
 90.9   this subdivision must be paid into the state treasury and 
 90.10  credited to a special revenue account.  Money in that account is 
 90.11  appropriated to the commissioner of human rights to the extent 
 90.12  the reimbursements were made to cover the department's costs and 
 90.13  are available for the department's activities in enforcing the 
 90.14  Minnesota human rights act. 
 90.15     Sec. 37.  [REVISOR INSTRUCTION.] 
 90.16     The revisor of statutes shall renumber Minnesota Statutes, 
 90.17  section 353.65, subdivision 7, to section 69.021, subdivision 
 90.18  11, and correct cross-references in this act and Minnesota 
 90.19  Statutes 1996 and subsequent editions of the statutes. 
 90.20     Sec. 38.  [EFFECTIVE DATE.] 
 90.21     This act is effective the day after final enactment, except 
 90.22  that section 6 is effective July 1, 1996, and is the basis for 
 90.23  the attorney general's costs for the 1998-1999 biennium.