JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8041

STATE OF MINNESOTA

Journal of the House

SEVENTY-NINTH SESSION - 1996

__________________

NINETY-THIRD DAY

Saint Paul, Minnesota, Thursday, March 7, 1996

Index to today's Journal

On this day in 1882, the Minnesota Butter and Cheese Association was organized. Establishment of the organization signaled Minnesota's emergence as one of America's leading dairy states.

The House of Representatives convened at 11:00 a.m. and was called to order by Irv Anderson, Speaker of the House.

Prayer was offered by Senior Pastor Roger Haug, Grace Lutheran Church, Waseca, Minnesota.

The roll was called and the following members were present:

Abrams       Farrell      Knight       Ness         Skoglund
Anderson, B. Finseth      Knoblach     Olson, E.    Smith
Anderson, R. Frerichs     Koppendrayer Olson, M.    Solberg
Bakk         Garcia       Kraus        Onnen        Stanek
Bertram      Girard       Krinkie      Opatz        Sviggum
Bettermann   Goodno       Larsen       Orenstein    Swenson, D.
Bishop       Greenfield   Leighton     Orfield      Swenson, H.
Boudreau     Greiling     Leppik       Osskopp      Sykora
Bradley      Gunther      Lieder       Osthoff      Tomassoni
Broecker     Haas         Lindner      Ostrom       Tompkins
Brown        Hackbarth    Long         Otremba      Trimble
Carlson, L.  Harder       Lourey       Ozment       Tuma
Carlson, S.  Hasskamp     Luther       Paulsen      Tunheim
Carruthers   Hausman      Lynch        Pawlenty     Van Dellen
Clark        Holsten      Macklin      Pellow       Van Engen
Commers      Huntley      Mahon        Pelowski     Vickerman
Cooper       Jaros        Mares        Perlt        Wagenius
Daggett      Jefferson    Mariani      Peterson     Warkentin
Dauner       Jennings     Marko        Pugh         Weaver
Davids       Johnson, A.  McCollum     Rest         Wenzel
Dawkins      Johnson, R.  McElroy      Rhodes       Winter
Dehler       Johnson, V.  McGuire      Rice         Wolf
Delmont      Kahn         Milbert      Rostberg     Worke
Dempsey      Kalis        Molnau       Rukavina     Workman
Dorn         Kelley       Mulder       Sarna        Sp.Anderson,I
Entenza      Kelso        Munger       Schumacher   
Erhardt      Kinkel       Murphy       Seagren      
A quorum was present.

Wejcman was excused until 1:00 p.m.

The Chief Clerk proceeded to read the Journal of the preceding day. Sykora moved that further reading of the Journal be suspended and that the Journal be approved as corrected by the Chief Clerk. The motion prevailed.

REPORTS OF CHIEF CLERK

S. F. No. 842 and H. F. No. 1157, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Kelley moved that the rules be so far suspended that S. F. No. 842 be substituted for H. F. No. 1157 and that the House File be indefinitely postponed. The motion prevailed.


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8042

S. F. No. 1945 and H. F. No. 2715, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Carruthers moved that the rules be so far suspended that S. F. No. 1945 be substituted for H. F. No. 2715 and that the House File be indefinitely postponed. The motion prevailed.

SECOND READING OF SENATE BILLS

S. F. Nos. 842 and 1945 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House File was introduced:

Dawkins, Rest, Long, Dauner and Goodno introduced:

H. F. No. 3269, A bill for an act relating to taxation; property; reducing county property taxes by funding the fiscal year cost shift for the state takeover of certain income maintenance costs; appropriating money; amending Minnesota Statutes 1994, section 256.025, subdivision 4; Minnesota Statutes 1995 Supplement, section 256.026.

The bill was read for the first time and referred to the Committee on Taxes.

Delmont was excused for the remainder of today's session.

Carruthers moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by the Speaker.

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 2044, A bill for an act relating to insurance; group life and health coverages; prohibiting retroactive termination of a person's coverage without the consent of the covered person; proposing coding for new law in Minnesota Statutes, chapter 60A.

Patrick E. Flahaven, Secretary of the Senate


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Mr. Speaker:

I hereby announce the passage by the Senate of the following House Files, herewith returned:

H. F. No. 2401, A bill for an act relating to counties; Itasca; exempting the county from certain bidding requirements on the sale of the Itasca County Medical Center.

H. F. No. 2483, A bill for an act relating to courts; clarifying the process for applying for a writ of certiorari; amending Minnesota Statutes 1994, section 606.01; proposing coding for new law in Minnesota Statutes, chapter 543.

H. F. No. 2391, A bill for an act relating to commerce; petroleum tank release cleanup; regulating reimbursement; providing enforcement authority to the commissioner of commerce; making various technical changes; amending Minnesota Statutes 1994, sections 115C.02, by adding a subdivision; 115C.03, subdivision 8; 115C.06; and 115C.09, as amended; Minnesota Statutes 1995 Supplement, sections 115C.02, subdivision 11a; 115C.092, subdivision 1; 115C.10, subdivision 1; 115C.11, subdivision 1; and 115C.12; proposing coding for new law in Minnesota Statutes, chapter 115C; repealing Minnesota Statutes 1994, section 115C.11, subdivisions 3 and 4; Minnesota Statutes 1995 Supplement, section 115C.11, subdivision 2.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House Files, herewith returned:

H. F. No. 2889, A bill for an act relating to local government; the cities of Norwood and Young America in Carver county and their consolidation into the city of Norwood-Young America; repealing Extra Session Laws 1857, chapter 18, section 50; Special Laws 1874, chapter 78; Special Laws 1879, chapters 4 and 152; Special Laws 1881, chapters 31 and 101; Special Laws 1889, chapter 24; and Special Laws 1891, chapters 211 and 272.

H. F. No. 2670, A bill for an act relating to the Minnesota municipal board; clarifying authority and procedures; amending Minnesota Statutes 1994, sections 414.01, subdivisions 1, 2, 6a, 7a, 8, 12, and 16; 414.02, subdivision 3; 414.031, subdivision 4; 414.0325, subdivisions 1, 1a, and 3; 414.033, subdivision 5, and by adding a subdivision; 414.041, subdivisions 3 and 5; and 414.061, subdivisions 4 and 5; repealing Minnesota Statutes 1994, sections 414.01, subdivisions 3, 3a, and 4; and 414.061, subdivision 4a.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 2938, A bill for an act relating to Minnesota Statutes; correcting erroneous, ambiguous, and omitted text and obsolete references; eliminating certain redundant, conflicting, and superseded provisions; making miscellaneous technical corrections to statutes and other laws; amending Minnesota Statutes 1994, sections 10A.27, subdivision 1; 13.99, subdivisions 8a and 19c; 14.47, subdivision 1; 17.03, subdivision 10; 18.54, subdivisions 1 and 2; 18B.39; 18E.05, subdivision 1; 21.92; 32.417; 41A.023; 41A.04, subdivision 4; 44A.0311; 48.301; 60B.39, subdivision 5; 62D.02, subdivision 4; 62D.12, subdivisions 12 and 13; 62E.04, subdivision 8; 62E.09; 62I.22, subdivision 6; 72C.07, subdivision 1; 83.23, subdivisions 2 and 3; 83.24, subdivisions 3 and 5; 83.26, subdivision 1; 83.28, subdivision 2; 83.30, subdivision 1; 83.31, subdivisions 1 and 3; 83.39, subdivision 1; 85A.02, subdivision 5b; 97B.025; 103G.301, subdivision 3; 103I.101, subdivision 5; 103I.525, subdivisions 8 and 9; 103I.531, subdivisions 8 and 9; 103I.535, subdivision 8; 103I.541, subdivisions 4 and 5; 115A.156, subdivision 3; 115B.223, subdivision 2; 115C.07, subdivision 3; 116C.834, subdivision 1; 116J.403; 116J.63, subdivision 2; 116J.68, subdivision 2; 129D.14, subdivision 5; 136D.23, subdivisions 1 and 2; 136D.83, subdivisions 1 and 2; 144.98, subdivision 4; 145.61, subdivision 5; 145.889; 145.97; 148B.17; 148B.61, subdivision 2; 148B.64, subdivision 2; 148B.69, subdivision 1; 160.265, subdivision 2; 161.1231, subdivision 5; 169.128; 176.021, subdivision 7; 176.129, subdivisions 4a and 13; 176.225, subdivision 2; 176.83, subdivision 7; 177.24, subdivisions 1 and 4; 177.27, subdivision 6; 182.675; 183.375, subdivision 5; 183.411, subdivisions 2a and 3; 183.545; 197.447; 198.002, subdivision 2; 198.003, subdivision 1; 205A.13; 216A.037,


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subdivision 3; 216B.164, subdivision 6; 216C.10; 216C.14, subdivision 3; 216C.15, subdivision 2; 216C.37, subdivision 7; 223.17, subdivision 3; 239.101, subdivision 4; 240.24, subdivision 2; 240A.03, subdivision 10; 254B.041, subdivision 2; 256.871, subdivision 7; 256.9753, subdivision 3; 256.991; 256B.431, subdivision 22; 256B.501, subdivisions 5a and 10; 256B.502; 256B.503; 256B.74, subdivision 10; 268.166; 268.37, subdivision 3; 270.84, subdivision 1; 270A.12; 270B.07, subdivision 4; 284.28, subdivisions 5 and 6; 298.39; 299L.07, subdivision 8; 299M.04; 308A.135, subdivision 3; 325D.01, subdivision 1; 325D.69, subdivision 2; 325D.70; 325F.20, subdivision 1; 326.47, subdivision 6; 326.86, subdivision 1; 349A.02, subdivision 6; 352.75, subdivision 6; 352B.26, subdivision 3; 353.271, subdivision 2; 353.84; 354.094, as amended; 354.53, subdivision 1; 354.55, subdivisions 14 and 15; 354.66, subdivisions 1 and 6; 354A.092; 354A.093; 355.391, subdivision 1; 355.392, subdivisions 2 and 3; 356.86, subdivision 2; 356.865, subdivision 2; 363.06, subdivision 4a; 402.01, subdivision 1; 422A.06, subdivision 5; 462A.06, subdivision 11; 462A.07, subdivision 14; 462A.08, subdivision 3; 462A.236; 469.141, subdivision 2; 473.446, subdivision 2; 473.516, subdivision 3; 473.545; 473.639; 480A.06, subdivision 3; 524.3-101; 524.3-108; 524.3-901; 524.3-1204; 525.712; 550.15; 583.285; 624.7132, subdivision 8; 626A.13, subdivision 4; and 629.68; Minnesota Statutes 1995 Supplement, sections 13.99, subdivision 19h; 15.0591, subdivision 2; 15.991, subdivision 1; 16A.6701, subdivision 1; 16B.43, subdivision 1; 16B.748; 41A.066, subdivision 1; 43A.191, subdivision 3; 43A.24, subdivision 2; 47.60, subdivision 4; 62A.307, subdivision 2; 62L.045, subdivision 1; 62M.09, subdivision 5; 72C.03; 79A.31, subdivision 1; 83.26, subdivision 2; 84.9691; 97A.0453; 103B.231, subdivision 3; 103G.301, subdivision 2; 116.07, subdivisions 4 and 4d; 121.703, subdivision 2; 144.057, subdivision 1; 144A.071, subdivision 2; 144A.073, subdivision 8; 144D.06; 148C.03, subdivision 1; 151.37, subdivision 2; 237.16, subdivision 11; 256.737, subdivision 1a; 256D.01, subdivision 1b; 275.065, subdivision 6; 276.04, subdivision 2; 295.50, subdivision 4; 297A.25, subdivision 11; 326.50; 336.9-411; 354.05, subdivision 5; 354.63, subdivision 2; 354A.094, subdivision 4; 354D.01, subdivision 2; 354D.06; 462A.201, subdivision 2; 474.191; 525.6197; 609.101, subdivision 2; 609.485, subdivisions 2 and 4; and 626.557, subdivision 16; Laws 1995, chapters 159, section 1; 202, article 4, section 24; and 212, article 4, section 65; First Special Session chapter 3, article 8, section 25, subdivision 6; repealing Minnesota Statutes 1994, sections 13.99, subdivisions 2 and 39a; 148B.60, subdivision 6; 177.28, subdivision 4; 222.61; 254B.041, subdivision 1; 289A.60, subdivision 9; 349.218; 471.6161, subdivision 7; 473.604, subdivision 7; and 473.704, subdivision 6; Laws 1991, chapter 354, article 6, section 7, subdivisions 2 and 3; Laws 1995, chapters 186, sections 38 and 78; 224, sections 117, 118, 119, 120, and 121; 234, article 3, section 3; 247, article 1, section 44; 248, article 10, section 15; and 259, article 3, section 7, subdivision 2.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2625, A bill for an act relating to the city of Baxter; allowing the city of Baxter to expand its public utilities commission to five members.

Patrick E. Flahaven, Secretary of the Senate

Wenzel moved that the House refuse to concur in the Senate amendments to H. F. No. 2625, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the return of H. F. No. 3243 for further consideration.

H. F. No. 3243 is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8045

MOTIONS FOR RECONSIDERATION

Carruthers moved that the vote whereby H. F. No. 3243 was passed under Rule 1.10 on Wednesday, February 28, 1996, be now reconsidered. The motion prevailed.

Carruthers moved that the action whereby H. F. No. 3243 was given a third reading on Wednesday, February 28, 1996, be now reconsidered. The motion prevailed.

Carruthers moved that the vote whereby the Kahn amendment to H. F. No. 3243 was adopted on Wednesday, February 28, 1996, be now reconsidered. The motion prevailed.

H. F. No. 3243 was reported to the House.

Kahn moved to amend H. F. No. 3243, the first engrossment, as follows:

Page 20, after line 8, insert:

"Sec. 37. [STEAM SERVICE FACILITIES.]

No state agency may issue a permit and no government bonds may be issued for a steam service facility that was the subject of an environmental impact statement referenced in Minnesota Statutes, section 116G.15, until either:

(1) the environmental quality board states that no economically less expensive and environmentally superior alternative to the project was identified by the environmental impact statement on the project; or

(2) until after the legislature has adjourned its regular session in 1997."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Kahn amendment and the roll was called. There were 57 yeas and 74 nays as follows:

Those who voted in the affirmative were:

Bakk         Greiling     Lieder       Orfield      Solberg
Bertram      Hasskamp     Long         Osskopp      Tomassoni
Carlson, L.  Hausman      Lourey       Osthoff      Trimble
Carruthers   Huntley      Luther       Otremba      Tunheim
Clark        Jaros        Mahon        Perlt        Wagenius
Dawkins      Jefferson    Mariani      Pugh         Wejcman
Dehler       Johnson, A.  Marko        Rest         Wenzel
Dorn         Johnson, R.  McCollum     Rhodes       Winter
Entenza      Kahn         McGuire      Rice         Sp.Anderson,I
Farrell      Kalis        Milbert      Rukavina     
Garcia       Knight       Munger       Sarna        
Greenfield   Leighton     Murphy       Skoglund     
Those who voted in the negative were:

Abrams       Dempsey      Kinkel       Olson, E.    Sviggum
Anderson, B. Erhardt      Knoblach     Olson, M.    Swenson, D.
Anderson, R. Finseth      Koppendrayer Onnen        Swenson, H.
Bettermann   Frerichs     Kraus        Opatz        Sykora
Bishop       Girard       Krinkie      Ostrom       Tompkins
Boudreau     Goodno       Larsen       Ozment       Tuma

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Bradley Gunther Leppik Paulsen Van Dellen Broecker Haas Lindner Pawlenty Van Engen Brown Hackbarth Lynch Pellow Vickerman Carlson, S. Harder Macklin Pelowski Warkentin Commers Holsten Mares Rostberg Weaver Cooper Jennings McElroy Schumacher Wolf Daggett Johnson, V. Molnau Seagren Worke Dauner Kelley Mulder Smith Workman Davids Kelso Ness Stanek
The motion did not prevail and the amendment was not adopted.

H. F. No. 3243, A bill for an act relating to the organization and operation of state government; appropriating money for economic development and other purposes; providing for assessments against utilities; amending Minnesota Statutes 1994, sections 116G.151; 138.664, by adding a subdivision; 138.763, subdivision 1; 168.33, subdivision 2; and 469.303; Minnesota Statutes 1995 Supplement, sections 79.561, subdivision 3; 138.01, by adding a subdivision; Laws 1994, chapter 573, sections 1, subdivisions 6 and 7; 4; and 5, subdivisions 1 and 2; Laws 1995, chapters 231, article 1, section 33; and 224, sections 2, subdivision 2; and 5, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 116J; repealing Minnesota Statutes 1994, sections 116J.873, subdivisions 1, 2, and 4; 138.662, subdivision 5; and 268.9783, subdivision 8; Minnesota Statutes 1995 Supplement, section 116J.873, subdivisions 3 and 5.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 84 yeas and 48 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Frerichs     Kelley       Murphy       Rice
Bakk         Garcia       Kelso        Ness         Rukavina
Bertram      Greenfield   Kinkel       Olson, E.    Sarna
Brown        Greiling     Leighton     Opatz        Schumacher
Carlson, L.  Gunther      Leppik       Orenstein    Skoglund
Carlson, S.  Harder       Lieder       Orfield      Solberg
Carruthers   Hasskamp     Long         Osskopp      Tomassoni
Clark        Hausman      Lourey       Osthoff      Trimble
Cooper       Huntley      Luther       Ostrom       Tunheim
Dauner       Jaros        Mahon        Otremba      Wagenius
Davids       Jefferson    Mariani      Ozment       Warkentin
Dawkins      Jennings     Marko        Pelowski     Wejcman
Dehler       Johnson, A.  McCollum     Perlt        Wenzel
Dempsey      Johnson, R.  McGuire      Peterson     Winter
Dorn         Johnson, V.  Milbert      Pugh         Wolf
Entenza      Kahn         Molnau       Rest         Sp.Anderson,I
Farrell      Kalis        Munger       Rhodes       
Those who voted in the negative were:

Abrams       Finseth      Krinkie      Pawlenty     Tompkins
Anderson, B. Girard       Larsen       Pellow       Tuma
Bettermann   Goodno       Lindner      Rostberg     Van Dellen
Bishop       Haas         Lynch        Seagren      Van Engen
Boudreau     Hackbarth    Macklin      Smith        Vickerman
Bradley      Holsten      Mares        Stanek       Weaver
Broecker     Knight       Mulder       Sviggum      Worke
Commers      Knoblach     Olson, M.    Swenson, D.  Workman 
Daggett      Koppendrayer Onnen        Swenson, H.  
Erhardt      Kraus        Paulsen      Sykora       
The bill was passed and its title agreed to.

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:

S. F. Nos. 2213, 2410, 1788, 2668, 1803, 2418 and 2445.

Patrick E. Flahaven, Secretary of the Senate


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Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:

S. F. Nos. 2116, 2435, 2478, 1893, 1902, 2449, 1702, 2275, 2363 and 1888.

Patrick E. Flahaven, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 2213, A bill for an act relating to public safety; providing for enforcement of requirement that drivers provide proof of automobile insurance; permitting drivers to avoid penalties by providing proof of insurance on date of first court appearance rather than within ten days after officer's demand for proof; amending Minnesota Statutes 1994, sections 169.791, subdivisions 2a, 3, and 4; and 169.792, subdivisions 1, 2, 3, 5, and 6.

The bill was read for the first time and referred to the Committee on Judiciary.

S. F. No. 2410, A bill for an act relating to data practices; providing for the classification of and access to government data; clarifying data provisions; prohibiting agreements limiting the disclosure and discussion of personnel data; requiring notice and approval of employment settlements by the commissioner of employee relations; modifying the requirements for health care provider identification numbers; establishing procedures for disclosing certain nonpublic data to related group purchasers; requiring the office of mental health practice to establish procedures for the exchange of information; authorizing the release of certain birth information on unwed mothers to family service collaboratives; regulating the disclosure of personal information contained in motor vehicle records; regulating certain criminal justice information; amending Minnesota Statutes 1994, sections 13.02, by adding a subdivision; 13.03, subdivision 4; 13.32, subdivision 5; 13.37, by adding a subdivision; 13.43, by adding subdivisions; 13.82, subdivision 13, and by adding a subdivision; 43A.04, by adding a subdivision; 62J.51, by adding subdivisions; 62J.56, subdivision 2; 62J.60, subdivisions 2 and 3; 144.225, subdivision 2, and by adding a subdivision; 145.64, by adding a subdivision; 148B.66, by adding a subdivision; 150A.081; 168.346; 171.12, subdivision 7, and by adding a subdivision; 260.161, subdivisions 1 and 1a; and 299C.095; Minnesota Statutes 1995 Supplement, sections 13.43, subdivision 2; 13.46, subdivision 2; 62J.451, subdivisions 7, 9, and 12; 62J.54, subdivisions 1, 2, and 3; 62J.58; 62Q.03, subdivision 9; 144.335, subdivision 3a; and 268.12, subdivision 12; proposing coding for new law in Minnesota Statutes, chapter 13.

The bill was read for the first time.

McGuire moved that S. F. No. 2410 and H. F. No. 2386, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1788, A bill for an act relating to the lottery; requiring certain information to be included in lottery publications, prize announcement signs, electronic messages, and on-line lottery tickets; amending Minnesota Statutes 1994, section 349A.09, subdivision 1.

The bill was read for the first time and referred to the Committee on Governmental Operations.

S. F. No. 2668, A bill for an act relating to civil actions; creating a state court action for relief for damages caused by a federal court action that affects public participation by the plaintiff; proposing coding for new law in Minnesota Statutes, chapter 554.

The bill was read for the first time and referred to the Committee on Judiciary.


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S. F. No. 1803, A bill for an act relating to civil actions; extending the municipal tort claims protections to nonprofit firefighting corporations; amending Minnesota Statutes 1994, section 466.01, subdivisions 1 and 6.

The bill was read for the first time and referred to the Committee on Judiciary.

S. F. No. 2418, A bill for an act relating to the legislative auditor; requiring procedures for the appointment process; clarifying audit jurisdiction; protecting privacy of certain audit data; clarifying responsible officers to prosecute violations of law and recover public money; granting rights to witnesses in audit investigations; amending Minnesota Statutes 1994, sections 3.97, subdivisions 4, 5, 9, and 11; 3.971; 3.972; 3.974; 3.975; 3.978; 10.48; 37.06; 37.07; 85A.02, subdivision 5c; 192.551; 256E.05, subdivision 3a; 268.12, subdivision 8; 352.03, subdivision 6; 353.03, subdivision 3a; 353A.05, subdivision 1; 354.06, subdivision 2a; 360.015, subdivision 19; and 609.456; Minnesota Statutes 1995 Supplement, section 16B.42, subdivision 1; repealing Minnesota Statutes 1994, sections 3.973; 136A.29, subdivision 19; 256B.04, subdivision 11; 469.207, subdivision 1; 574.02; and 574.03.

The bill was read for the first time.

Rest moved that S. F. No. 2418 and H. F. No. 2845, now on Special Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2445, A bill for an act relating to natural resources; clarifying status of game refuge designations; removing the residency requirement for youth hunting; permitting nonresident students to take big game; modifying provisions relating to short-term fishing licenses, special permits, commercial fishing, taking deer, moose licenses, blaze orange, trout and salmon stamps, and sturgeon and paddlefish; removing certain provisions relating to wild rice; requiring a review; amending Minnesota Statutes 1994, sections 97A.015, by adding a subdivision; 97A.401, subdivision 4; 97A.411, subdivision 1; 97A.431, subdivision 2; 97A.451, by adding a subdivision; 97A.455; 97A.475, subdivisions 30, 31, 32, 33, 34, 35, 36, and 37; 97A.535, by adding a subdivision; 97B.021, subdivision 1; 97B.071; 97B.311; 97C.035, subdivision 3; 97C.305, subdivision 2; 97C.411; 97C.811, subdivision 6; 97C.815, subdivision 4; 97C.835 subdivisions 1 and 5; 97C.841; Minnesota Statutes 1995 Supplement, sections 14.387; and 97A.451, subdivision 3; Laws 1995, chapter 220, section 137; repealing Minnesota Statutes 1994, section 84.09; and Laws 1995, chapter 220, section 136.

The bill was read for the first time.

Milbert moved that S. F. No. 2445 and H. F. No. 2799, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2116, A bill for an act relating to liquor; allowing persons holding either the proper license or permit to charge for possession; exempting certain types of wine tastings from authorized testings; regulating malt liquor furnished for sampling; providing for authority of the cities of Wadena, Eagan, and West St. Paul to issue on-sale licenses; authorizing certain cities to issue a temporary license for a certain wine auction; amending Minnesota Statutes 1994, sections 340A.418, subdivision 2; and 340A.510; Minnesota Statutes 1995 Supplement, sections 340A.401; and 340A.404, subdivision 10; Laws 1994, chapter 611, section 32; proposing coding for new law in Minnesota Statutes, chapter 340A; repealing Laws 1974, chapter 452.

The bill was read for the first time.

Bertram moved that S. F. No. 2116 and H. F. No. 2590, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2435, A bill for an act relating to courts; authorizing a judge who has retired in good standing to be appointed to serve as a judge of any court; providing that the fee for the examination to be admitted to practice law be set by the supreme court; amending Minnesota Statutes 1994, section 2.724, subdivision 3; Minnesota Statutes 1995 Supplement, section 481.01.

The bill was read for the first time and referred to the Committee on Judiciary Finance.


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8049

S. F. No. 2478, A bill for an act relating to civil actions; modifying and expanding provisions for sanctions in civil actions; amending Minnesota Statutes 1994, sections 336.2A-108; 566.25; 570.041, subdivision 1; 571.932, subdivision 6; and 609.5314, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 549; repealing Minnesota Statutes 1994, section 549.21.

The bill was read for the first time and referred to the Committee on Judiciary.

S. F. No. 1893, A bill for an act relating to human services; adding provisions for child support enforcement; amending Minnesota Statutes 1994, sections 518.5511, subdivision 8; 518.611, by adding a subdivision; and 548.091, by adding a subdivision; Minnesota Statutes 1995 Supplement, sections 256.998, subdivisions 1 and 9; 257.62, subdivision 1; and 518.5511, subdivision 4.

The bill was read for the first time.

Swenson, D., moved that S. F. No. 1893 and H. F. No. 2124, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1902, A bill for an act relating to the council on affairs of Spanish-speaking people, the council on Asian-Pacific Minnesotans, the council on Black Minnesotans, and the Indian affairs council; changing the name of the council on affairs of Spanish-speaking people; changing the composition and certain powers of the councils on affairs of Spanish-speaking people and Asian-Pacific Minnesotans; providing for appointments; changing statutory references; eliminating an expiration date; amending Minnesota Statutes 1994, sections 3.922, subdivisions 3 and 8; 3.9223; 3.9225, subdivision 1; and 3.9226, subdivisions 1, 2, 3, and 5.

The bill was read for the first time.

Entenza moved that S. F. No. 1902 and H. F. No. 2193, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2449, A bill for an act relating to human services; allowing the state and county to establish a county store.

The bill was read for the first time.

Wejcman moved that S. F. No. 2449 and H. F. No. 2703, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1702, A bill for an act relating to civil actions; providing limits on liability of certain private corrections treatment facilities that receive patients under court or administrative order; proposing coding for new law in Minnesota Statutes, chapter 604A.

The bill was read for the first time.

McGuire moved that S. F. No. 1702 and H. F. No. 1918, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 2275, A bill for an act relating to crime; requiring victim's account of domestic assault or harassment to be considered in determining arrested person's release; requiring notice to certain law enforcement agencies, battered women's programs, and sexual assault programs of release of arrested persons; requiring notice of bail hearings to victims of domestic assault and harassment; amending Minnesota Statutes 1994, section 629.72, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 629.72, subdivisions 2 and 6.

The bill was read for the first time.

Kelley moved that S. F. No. 2275 and H. F. No. 2842, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.


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S. F. No. 2363, A bill for an act relating to juveniles; clarifying the definition of juvenile petty offense; modifying provisions relating to appointment of counsel and contempt; amending Minnesota Statutes 1994, section 260.301; Minnesota Statutes 1995 Supplement, sections 260.015, subdivision 21; 260.132, subdivision 3a; 260.155, subdivision 2; and 260.195, subdivision 2a.

The bill was read for the first time and referred to the Committee on Judiciary.

S. F. No. 1888, A bill for an act relating to human services; requiring notification of placement or adoption of a child to the other birth parent; requiring background checks for adoption; requiring affidavits for an emergency order requiring updates to adoption study; defining content of postplacement assessment and report; permitting court-ordered grandparent visitation with an adopted child; recognition of adoption which occurred in a foreign country; defining when adoption records shall become public records; amending Minnesota Statutes 1994, sections 245A.04, subdivision 10; 257.022, subdivision 2, and by adding a subdivision; 259.20, subdivision 2; 259.22, subdivision 4; 259.24, subdivision 2a; 259.41; 259.47, subdivisions 3, 6, 7, 8, and 10; 259.53, subdivision 2; 259.55, subdivision 1; 259.59, subdivision 1; 259.67, subdivision 7; 259.79, subdivision 3; 259.83, subdivision 3; and 259.89, subdivisions 1, 5, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 259; repealing Minnesota Statutes 1994, section 259.47, subdivision 9.

The bill was read for the first time.

Wejcman moved that S. F. No. 1888 and H. F. No. 2069, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

CONSIDERATION UNDER RULE 1.10

Pursuant to rule 1.10, Rest requested immediate consideration of H. F. No. 3249.

H. F. No. 3249 was reported to the House.

Rest moved to amend H. F. No. 3249, the first engrossment, as follows:

Page 26, line 4, delete "1996" and insert "1997"

Page 29, line 31, after "refund" insert ", except for taxes under chapter 297A,"

Page 29, line 34 to 35, delete everything after "order"

Page 29, line 36, to page 30, line 4, delete the new language and insert:

"In the case of assessments under section 289A.38, subdivisions 5 or 6, claims for refund under chapter 297A filed after the 3-1/2 year period but within the one-year period are limited to the amount of the tax, penalties, and interest on the order that are due for the period before the 3-1/2 year period."

Page 54, delete lines 16 to 25

Page 54, line 26, delete "6" and insert "5"

Page 54, line 29, delete "7" and insert "6"

Page 60, line 18, delete "272.01" and insert "272.02"

Page 60, line 19, after the comma insert "clause (21),"

Page 79, line 19, delete everything up to and including "section"


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8051

Page 79, line 23, delete everything after the colon

Page 79, delete lines 24-26 and line 27, delete everything up to and including the period and insert "sale in the year the land no longer qualifies requires payment of the current year's deferred taxes plus payment of deferred taxes for the two prior years; sale during the second year the land no longer qualifies requires payment of the current year's deferred taxes plus payment of the deferred taxes for the prior year; and sale during the third year the land no longer qualifies requires payment of the current year's deferred taxes."

Page 87, line 20, after the period, insert "Any amount recovered that is attributable to supplemental homestead credit is to be transmitted to the commissioner of revenue for deposit in the general fund of the state treasury."

Page 94, line 4, strike "1993" and insert "1997"

Page 107, lines 21-36 to Page 108, lines 1-3, restore the current language

Page 110, line 34, before "1995" insert "assessment year"

Page 110, line 35, delete "limited" and insert "taxable"

Page 111, line 2, before "1996" insert "assessment year" and delete "limited" and insert "taxable"

Page 115, line 27, before "1,000" insert "between 500 and" and after "1,000" strike "or less"

Page 137, line 18, delete "1997" and insert "thereafter"

Page 137, line 22, delete "1997" and insert "thereafter"

Page 140, line 18, after the period insert "Any amount recovered that is attributable to supplemental homestead credit is to be transmitted to the commissioner of revenue for deposit in the general fund of the state treasury."

Page 153, line 27, delete "April 30" and insert "May 15"

Page 154, line 1, delete "the president" and insert "a member"

Page 154, delete lines 24 and 25 and insert "most recent population established under section 477A.011, subdivision 3 in the year in which the aid is determined."

Page 155, line 9, before "population" insert "most recent"

Page 155, delete line 10, and insert "established under section 477A.011, subdivision 3 in the year in which the aid is determined."

Page 156, line 31, delete "only" and insert "and thereafter"

Page 182, line 30, delete "for"

Page 182, line 31, delete "the current year"

Page 186, line 32, delete "current" and insert "next taxes payable"

Page 187, line 2, delete everything after "between"

Page 187, line 3, delete "amount and"

Page 187, line 4, before the period insert "and the maximum property tax amount"

Page 187, line 7, after the period insert "No deferral of the current year's property taxes is allowed if there are any delinquent property taxes or delinquent special assessments for any previous year."

Page 187, line 10, after the period insert "The county auditor shall annually, on or before April 15, certify to the commissioner of revenue the property tax deferral amounts determined under this subdivision by property and by owner."


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Page 187, line 13, after "county" insert "or city"

Page 187, line 14, delete "all properties" and insert "each property on the list supplied by the commissioner that may be"

Page 187, line 32, after the period insert "The commissioner shall cancel any current year's deferral or previous years' deferral and interest that is offset by the property tax refunds."

Page 187, line 36, before "amount" insert "excess" and delete " that exceeds the"

Page 188, line 1, delete "deferred tax" and delete everything after "homeowner"

Page 188, line 2, delete "that year"

Page 188, line 13, after the period insert "Interest shall accrue beginning September 1 of the payable year for which the taxes are deferred."

Page 198, line 34, delete "assessed valuation" and insert "net tax capacity"

Page 309, delete section 16 and insert:

"Sec. 16. Minnesota Statutes 1994, section 349.154, subdivision 2, is amended to read:

Subd. 2. [NET PROFIT REPORTS.] (a) Each licensed organization must report monthly to the board on a form prescribed by the board each expenditure and contribution of net profits from lawful gambling. The reports must provide for each expenditure or contribution:

(1) the name, address, and telephone number of the recipient of the expenditure or contribution;

(2) the date the contribution was approved by the organization;

(3) the date, amount, and check number of the expenditure or contribution;

(4) a brief description of how the expenditure or contribution meets one or more of the purposes in section 349.12, subdivision 25; and

(5) in the case of expenditures authorized under section 349.12, subdivision 25, paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily benefits male or female participants.

(b) The board shall make available to the commissioners of revenue and public safety copies of reports received under this subdivision and requested by them.

(c) The report required under this subdivision must provide for a separate accounting for all expenditures from the reporting organization's tax refund and credit account.

Sec. 17. Minnesota Statutes 1994, section 349.19, subdivision 2, is amended to read:

Subd. 2. [ACCOUNTS.] Gross receipts from lawful gambling by each organization must be segregated from all other revenues of the conducting organization and placed in a separate account. All expenditures for expenses, taxes, and lawful purposes must be made from the separate account except (1) in the case of expenditures previously approved by the organization's membership for emergencies as defined by board rule, or (2) as provided in subdivision 2a. The name and address of the bank, the account number for the separate account, and the names of organization members authorized as signatories on the separate account must be provided to the board when the application is submitted. Changes in the information must be submitted to the board at least ten days before the change is made. Gambling receipts must be deposited into the gambling bank account within four business days of completion of the bingo occasion, deal, or game from which they are received. A deal of pull-tabs is considered complete when either the last pull-tab of the deal is sold or the organization does not continue the play of the deal during the next scheduled period of time in which the organization will conduct pull-tabs. A tipboard game is considered complete when the seal on the game flare is uncovered. Deposit records must be sufficient to allow determination of deposits made from each bingo occasion, deal, or game at each permitted premises. The person who accounts for gambling gross receipts and profits may not be the same person who accounts for other revenues of the organization.


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Sec. 18. Minnesota Statutes 1994, section 349.19, is amended by adding a subdivision to read:

Subd. 2a. [TAX REFUND AND CREDIT ACCOUNT.] (a) Each organization that receives a refund or credit under section 297E.02, subdivision 4, paragraph (d), must establish a separate account designated as the tax and credit refund account. The organization must (1) within four business days of receiving a refund under that paragraph deposit the refund in the account, and (2) within four business days of filing a tax return that claims a credit under that paragraph, transfer from the separate account established under subdivision 2 to the tax refund and credit account an amount equal to the tax credit.

(b) The name and address of the bank, the account number for the tax refund and credit account, and the names of organization members authorized as signatories on the account must be provided to the board within 30 days of the date when the organization establishes the account. Changes in the information must be submitted to the board at least ten days before the change is made.

(c) The organization may expend money in the account only for lawful purposes, other than lawful purposes described in section 349.012, subdivision 25, paragraph (a), clauses (8), (9), and (12). Amounts in the account must be spent for qualifying lawful purposes no later than one year after the refund is deposited."

Page 310, line 21, delete "January 1, 1997" and insert "July 1, 1996"

Renumber the paragraphs in article 3, section 18, in sequence

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Rest moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 73, after line 31, insert:

"Sec. 8. Minnesota Statutes 1994, section 273.11, subdivision 1a, is amended to read:

Subd. 1a. [LIMITED MARKET VALUE.] For assessments of property for the purpose of determining taxes to be levied in 1997, payable in 1998, in the case of all property classified as agricultural homestead or nonhomestead, residential homestead or nonhomestead, or noncommercial seasonal recreational residential, the assessor shall compare the value with that determined in the preceding assessment. Notwithstanding the provisions of section 273.17 the amount of the increase entered in the current assessment shall not exceed the greater of (1) ten percent of the value in the preceding assessment, or (2) one-third of the difference between the current assessment and the preceding assessment. one-half of the total amount of the increase in valuation whichever is greater. The excess together with any increase of value which has occurred since the previous assessment, shall be added to the market value of the property for the purposes of determining taxes to be levied in 1998, payable in 1999. In all subsequent assessments, all real property shall be valued at its full market value. This limitation shall not apply to increases in value due to improvements. For purposes of this subdivision, the term "assessment" means the value prior to any exclusion under subdivision 16.

The provisions of this subdivision shall be in effect only for assessment years 1993 through 1997.

For purposes of the assessment/sales ratio study conducted under section 124.2131, and the computation of state aids paid under chapters 124, 124A, and 477A, market values and net tax capacities determined under this subdivision and subdivision 16, shall be used."

Page 156, line 22, after the period insert "Section 8 is effective for the 1997 assessment and thereafter, for taxes payable in 1998 and thereafter."

Renumber the sections in article 3 in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8054

Peterson moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 155, after line 10, insert:

"Sec. 56. [TEMPORARY ABATEMENT AUTHORITY.]

Notwithstanding any law to the contrary, a county board may abate, in full or part, unpaid property taxes, interest, and penalties, if all the following conditions are satisfied:

(1) The property contains a vacant hotel building, constructed before 1930 and in need of substantial rehabilitation and repair.

(2) The property contains a building listed on the national register or is located in a registered historic district.

(3) At least three years of property taxes are unpaid.

(4) The property is located in a city with a population of less than 5,000.

(5) The city or another public development authority has entered into a contract or development agreement with a private person or entity who agrees to substantially rehabilitate the building.

(6) The abatement is granted before January 1, 1997."

Page 157, after line 19, insert:

"Section 56 is effective the day following final enactment."

Renumber the sections in sequence

Correct internal references

The motion prevailed and the amendment was adopted.

Onnen, Luther, Ostrom and Sykora moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 9, after line 21, insert:

"Sec. 6. Minnesota Statutes 1995 Supplement, section 290.067, subdivision 1, is amended to read:

Subdivision 1. [AMOUNT OF CREDIT.] (a) A taxpayer may take as a credit against the tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the dependent care credit for which the taxpayer is eligible pursuant to the provisions of section 21 of the Internal Revenue Code subject to the limitations provided in subdivision 2 except that in determining whether the child qualified as a dependent, income received as an aid to families with dependent children grant or allowance to or on behalf of the child must not be taken into account in determining whether the child received more than half of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of the Internal Revenue Code do not apply.

(b) If a child who has not attained the age of six years at the close of the taxable year is cared for at a licensed family day care home operated by the child's parent, the taxpayer is deemed to have paid employment-related expenses. If the child is 16 months old or younger at the close of the taxable year, the amount of expenses deemed to have been paid equals the maximum limit for one qualified individual under section 21(c) and (d) of the Internal Revenue Code. If the child is older than 16 months of age but has not attained the age of six years at the close of the taxable year, the amount of expenses deemed to have been paid equals the amount the licensee would charge for the care of a child of the same age for the same number of hours of care.

(c) If a married couple:

(1) in tax year 1997 has a child who has not attained the age of one year one or more children who have not attained two years of age; in tax year 1998 has one or more children who have not attained three years of age; in tax year 1999 has one or more children who have not attained four years of age; in tax year 2000 has one or more children who have not attained five years of age; or in tax year 2001 and following years has one or more children who have not attained six years of age at the close of the taxable year;


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8055

(2) files a joint tax return for the taxable year; and

(3) does not participate in a dependent care assistance program as defined in section 129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid for that child those children under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i) the combined earned income of the couple or (ii) $2,400 in the case of filers with one child who has not attained the age specified in paragraph 1, and $4,800 in the case of filers with more than one child who has not attained the age specified in paragraph 1 will be deemed to be the employment related expense paid for that child. The earned income limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These deemed amounts apply regardless of whether any employment-related expenses have been paid.

(d) If the taxpayer is not required and does not file a federal individual income tax return for the tax year, no credit is allowed for any amount paid to any person unless:

(1) the name, address, and taxpayer identification number of the person are included on the return claiming the credit; or

(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name and address of the person are included on the return claiming the credit.

In the case of a failure to provide the information required under the preceding sentence, the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence in attempting to provide the information required.

In the case of a nonresident, part-year resident, or a person who has earned income not subject to tax under this chapter, the credit determined under section 21 of the Internal Revenue Code must be allocated based on the ratio by which the earned income of the claimant and the claimant's spouse from Minnesota sources bears to the total earned income of the claimant and the claimant's spouse."

Page 26, after line 4, insert "Section 6 is effective for tax years beginning after December 31, 1996."

Renumber the sections

Correct internal references

A roll call was requested and properly seconded.

The question was taken on the Onnen et al amendment and the roll was called. There were 128 yeas and 3 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Olson, E.    Solberg
Anderson, B. Frerichs     Kraus        Olson, M.    Stanek
Anderson, R. Garcia       Krinkie      Onnen        Sviggum
Bakk         Girard       Larsen       Opatz        Swenson, D.
Bertram      Goodno       Leighton     Orenstein    Swenson, H.
Bettermann   Greenfield   Leppik       Orfield      Sykora
Bishop       Greiling     Lieder       Osskopp      Tomassoni
Boudreau     Gunther      Lindner      Osthoff      Tompkins
Bradley      Haas         Long         Ostrom       Trimble
Broecker     Hackbarth    Lourey       Otremba      Tuma
Brown        Harder       Luther       Paulsen      Tunheim
Carlson, L.  Hasskamp     Lynch        Pawlenty     Van Dellen
Carlson, S.  Holsten      Macklin      Pellow       Van Engen
Carruthers   Huntley      Mahon        Pelowski     Vickerman
Clark        Jefferson    Mares        Perlt        Wagenius
Commers      Jennings     Mariani      Peterson     Warkentin
Cooper       Johnson, A.  Marko        Pugh         Weaver
Daggett      Johnson, R.  McCollum     Rhodes       Wejcman
Dauner       Johnson, V.  McElroy      Rice         Wenzel
Davids       Kahn         McGuire      Rostberg     Winter
Dehler       Kalis        Milbert      Rukavina     Wolf
Dempsey      Kelley       Molnau       Sarna        Worke
Dorn         Kelso        Mulder       Schumacher   Workman
Entenza      Kinkel       Munger       Seagren      Sp.Anderson,I
Erhardt      Knight       Murphy       Skoglund     
Farrell      Knoblach     Ness         Smith        

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Those who voted in the negative were:

Dawkins      Jaros        Rest         
The motion prevailed and the amendment was adopted.

Rhodes and Kelley moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 119, line 20, after the period, insert "For its initial hearing and for the subsequent hearing at which the final property tax levy will be adopted,"

Page 119, line 24, after the period, insert "For continuation hearings, the city may select dates that conflict with other taxing authorities' dates if the city deems it necessary."

The motion prevailed and the amendment was adopted.

Osskopp; Dempsey; Boudreau; Anderson, B.; Onnen; Johnson, V.; Lindner; Gunther; Pellow and Warkentin offered an amendment to H. F. No. 3249, the first engrossment, as amended.

POINT OF ORDER

Carruthers raised a point of order pursuant to rule 3.09 that the Osskopp et al amendment was not in order. The Speaker ruled the point of order well taken and the amendment out of order.

Abrams and Milbert moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 119, after line 35, insert:

"Sec. 23. Minnesota Statutes 1994, section 275.07, is amended by adding a subdivision to read:

Subd. 1b. [LEVY FOR CLASS RATE CHANGES.] For taxes levied in 1996, payable in 1997, the county auditor shall subtract from each county's, city's, and town's special districts levy under this subdivision, and its proposed levy under section 275.065, an amount certified by the commissioner of revenue which shall be determined multiplying: (1) the difference between the taxing district's net tax capacity using class rates in effect for taxes payable in 1996 and using class rates in effect for taxes payable in 1997, by (2) the taxing district's tax rate for taxes payable in 1996.

For taxes levied in 1997, payable in 1998 and thereafter, the county auditor shall subtract form each county's, city's, and town's levy under this subdivision, and its proposed levy under section 275.065, an amount certified by the commissioner of revenue which shall be determined by multiplying: (1) the difference between the taxing district's net tax capacity using class rates in effect for taxes payable in 1996 and using class rates in effect for taxes payable in 1998, by (2) the taxing district's tax rate for taxes payable in the previous year."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Abrams and Milbert amendment and the roll was called. There were 78 yeas and 54 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Krinkie      Orenstein    Swenson, D.
Anderson, B. Frerichs     Larsen       Osskopp      Swenson, H.
Bertram      Girard       Leppik       Osthoff      Sykora
Bettermann   Goodno       Lindner      Ozment       Tompkins
Bishop       Gunther      Long         Paulsen      Trimble

JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8057
Boudreau Haas Lynch Pawlenty Tuma Bradley Hackbarth Macklin Pellow Van Dellen Broecker Harder Mares Pelowski Van Engen Carlson, S. Holsten McCollum Peterson Vickerman Commers Jennings McElroy Pugh Warkentin Cooper Johnson, V. Milbert Rhodes Weaver Davids Kalis Molnau Rostberg Wolf Dehler Kelso Mulder Seagren Worke Dempsey Knight Olson, M. Smith Workman Erhardt Knoblach Onnen Stanek Farrell Kraus Opatz Sviggum
Those who voted in the negative were:

Anderson, R. Garcia       Kelley       Munger       Sarna
Bakk         Greenfield   Kinkel       Murphy       Schumacher
Brown        Greiling     Koppendrayer Ness         Solberg
Carlson, L.  Hasskamp     Leighton     Olson, E.    Tomassoni
Carruthers   Hausman      Lieder       Orfield      Tunheim
Clark        Huntley      Lourey       Ostrom       Wagenius
Daggett      Jaros        Luther       Otremba      Wejcman
Dauner       Jefferson    Mahon        Perlt        Wenzel
Dawkins      Johnson, A.  Mariani      Rest         Winter
Dorn         Johnson, R.  Marko        Rice         Sp.Anderson,I
Entenza      Kahn         McGuire      Rukavina     
The motion prevailed and the amendment was adopted.

Muprhy, Bakk, Tomassoni and Rukavina moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 309, line 21, after "Big Stone," insert "St. Louis,"

Page 309, after line 22, insert:

"Sec. 15. Minnesota Statutes 1994, section 298.75, is amended by adding a subdivision to read:

Subd. 2a. If a county, which is authorized to impose a tax under this section does not impose the tax, any town within the county may, by ordinance, impose the tax on importers or operators within the township. The tax will be collected by the county as required in this section and the proceeds of the tax shall be apportioned as provided in subdivision 6. If the county decides to impose the tax under this section at a later date, the tax imposed by the town under this subdivision is repealed."

Page 310, after line 31, insert:

"Section 15 is effective for a qualifying town the day after compliance by the town with Minnesota Statutes, section 645.021, subdivision 3."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Abrams, Kelley, Rhodes and Orenstein moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 41, after line 10, insert:

"Sec. 18. Minnesota Statutes 1994, section 297A.25, subdivision 37, is amended to read:

Subd. 37. [YMCA AND, YWCA, AND JCC MEMBERSHIPS.] The gross receipts from the sale of memberships, including both one-time initiation fees and periodic membership dues, to an association incorporated under section 315.44 or an organization defined under section 315.51, are exempt. However, all separate charges made for the privilege of having access to and the use of the association's sports and athletic facilities are taxable."


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Page 45, after line 24, insert:

"Sec. 24. [315.51] [JCC; DEFINITION.]

A "JCC" means a nonprofit religious organization under section 501(c)(3) of the Internal Revenue Code of 1986 known as the Jewish Community Center of Greater Minneapolis or the Jewish Community Center of Greater St. Paul and organized for the purpose of serving the cultural, educational, and recreational needs of the Jewish community."

Page 56, after line 21, insert:

"Section 18 is effective for sales after June 30, 1996."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Sviggum moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Pages 191 to 214, delete article 6

Renumber the articles in sequence and correct internal references

Amend the title accordingly

The motion did not prevail and the amendment was not adopted.

Orfield offered an amendment to H. F. No. 3249, the first engrossment, as amended.

POINT OF ORDER

Goodno raised a point of order pursuant to rule 3.09 that the Orfield amendment was not in order. The Speaker ruled the point of order well taken and the amendment out of order.

Bakk; Johnson, R.; Tunheim; Solberg; Rukavina; Hasskamp; Kinkel and Tomassoni moved to H. F. No. 3249, the first engrossment, as amended, as follows:

Page 88, lines 3 and 11, reinstate the old language and delete the new language

Page 90, lines 30 and 34, reinstate the old language and delete the new language

Page 91, line 1, reinstate the old language and delete the new language

Page 94, line 3, reinstate the old language and delete the new language

Page 102, lines 33 and 34, reinstate the old language and delete the new language

Page 102, line 36, reinstate the old language and delete "2.25"

Page 106, lines 14 to 17, reinstate the old language and delete the new language


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8059

Page 157, after line 19, insert:

"ARTICLE 4

SEASONAL RECREATIONAL PROPERTY TAX REFUND

Section 1. Minnesota Statutes 1994, section 290.06, is amended by adding a subdivision to read:

Subd. 25. [CREDIT FOR PROPERTY TAXES PAID ON SEASONAL RECREATIONAL PROPERTY.] A taxpayer may take as a credit against the tax due from the taxpayer and a spouse, if any, under this chapter the credit allowed under section 290A.04, subdivision 7. The credit allowed may not exceed the tax due under this chapter. In the case of a nonresident, or a part-year resident, the credit must be allocated based on the ratio in subdivision 2c.

Sec. 2. Minnesota Statutes 1994, section 290A.02, is amended to read:

290A.02 [PURPOSE.]

The purpose of this chapter is to provide property tax relief to certain persons who own or rent their homesteads, and to seasonal recreational property owners.

Sec. 3. Minnesota Statutes 1994, section 290A.03, is amended by adding a subdivision to read:

Subd. 16. [SEASONAL RECREATIONAL PROPERTY.] "Seasonal recreational property" means that portion of section 273.13, subdivision 25, paragraph (c), clause (5), relating to real property devoted to noncommercial temporary and seasonal residential occupancy for recreational purposes.

Sec. 4. Minnesota Statutes 1994, section 290A.04, is amended by adding a subdivision to read:

Subd. 5a. [COMBINED SEASONAL RECREATIONAL AND EITHER RENTER OR HOMEOWNER REFUND.] A claimant who is entitled to a refund as a homeowner under subdivision 2 or as a renter under subdivision 2a may also receive a refund as an owner of seasonal recreational property under subdivision 7.

Sec. 5. Minnesota Statutes 1994, section 290A.04, is amended by adding a subdivision to read:

Subd. 7. [OWNERS OF SEASONAL RECREATIONAL PROPERTY.] A claimant who is an owner of seasonal recreational property whose property taxes on the seasonal recreational property for taxes payable in 1997 and subsequent years are in excess of the percentage of household income stated in subdivision 2 shall pay an amount equal to the percentage of income shown for the appropriate household income level in subdivision 2 along with the percentage to be paid by the claimant of the remaining amount of property taxes payable. The state refund equals the amount of property taxes payable that remain, up to the maximum refund amount shown in subdivision 2. Any refund amount under this subdivision shall be in addition to any refunds allowed under subdivision 2 or 2a. No payment is allowed if the claimant's household income exceeds the maximum income shown in subdivision 2. The claimant shall receive the refund as a credit against individual income tax liability for the tax year in which the property taxes are payable. In calculating the refund amount for seasonal recreational property, the claimant shall use the current year's schedule in subdivision 2 as adjusted for inflation and the immediate prior year's property taxes payable amount on the seasonal recreational property.

Sec. 6. Minnesota Statutes 1994, section 290A.09, is amended to read:

290A.09 [PROOF OF CLAIM.]

Every claimant shall supply to the department of revenue, in support of the claim, proof of eligibility under this chapter, including but not limited to amount of rent paid or property taxes accrued, name and address of owner or managing agent of property rented, changes in homestead, household membership, household income, size and nature of property claimed as a homestead or as seasonal recreational property.

Disabled persons filing claims shall submit proof of disability in the form and manner as the department may prescribe. The department may require examination and certification by the claimant's physician or by a physician designated by the department. The cost of any examination shall be borne by the claimant, unless the examination proves the disability, in which case the cost of the examination shall be borne by the department.


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8060

A determination of disability of a claimant by the social security administration under Title II or Title XVI of the Social Security Act shall constitute presumptive proof of disability.

Sec. 7. Minnesota Statutes 1994, section 290A.10, is amended to read:

290A.10 [PROOF OF TAXES PAID.]

Every claimant who files a claim for relief for property taxes payable shall include with the claim a property tax statement or a reproduction thereof in a form deemed satisfactory by the commissioner of revenue indicating that there are no delinquent property taxes on the homestead or seasonal recreational property. Indication on the property tax statement from the county treasurer that there are no delinquent taxes on the homestead or seasonal recreational property shall be sufficient proof. Taxes included in a confession of judgment under section 279.37 shall not constitute delinquent taxes as long as the claimant is current on the payments required to be made under section 279.37.

Sec. 8. Minnesota Statutes 1994, section 290A.23, subdivision 3, is amended to read:

Subd. 3. [ANNUAL APPROPRIATION.] For payments made after July 1, 1996, there is annually appropriated from the general fund to the commissioner of revenue the amount necessary to make the payments required under section 290A.04, subdivisions 2 and, 2h, and 7.

Sec. 9. [EFFECTIVE DATE.]

Section 1 is effective for tax years beginning after December 31, 1996 and returns filed beginning in 1998. Sections 2 to 8 are effective for refunds based on property taxes payable in 1997 and thereafter."

Renumber remaining articles in sequence

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Bakk et al amendment and the roll was called. There were 60 yeas and 72 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Garcia       Leighton     Orenstein    Tomassoni
Bakk         Greenfield   Lieder       Orfield      Trimble
Bertram      Greiling     Lourey       Osthoff      Tunheim
Bettermann   Hasskamp     Luther       Ostrom       Van Engen
Brown        Huntley      Mahon        Otremba      Wejcman
Clark        Jaros        Mariani      Pelowski     Wenzel
Cooper       Jefferson    Marko        Perlt        Winter
Daggett      Johnson, A.  McCollum     Peterson     Sp.Anderson,I
Dauner       Johnson, R.  McGuire      Pugh         
Dawkins      Kahn         Munger       Rice         
Dorn         Kalis        Murphy       Rukavina     
Farrell      Kelley       Olson, E.    Schumacher   
Finseth      Kinkel       Opatz        Solberg      
Those who voted in the negative were:

Abrams       Frerichs     Kraus        Osskopp      Swenson, H.
Anderson, B. Girard       Krinkie      Ozment       Sykora
Bishop       Goodno       Larsen       Paulsen      Tompkins
Boudreau     Gunther      Leppik       Pawlenty     Tuma
Bradley      Haas         Lindner      Pellow       Van Dellen
Broecker     Hackbarth    Lynch        Rest         Vickerman
Carlson, L.  Harder       Macklin      Rhodes       Wagenius
Carlson, S.  Hausman      Mares        Rostberg     Warkentin
Carruthers   Holsten      McElroy      Sarna        Weaver
Commers      Jennings     Milbert      Seagren      Wolf
Davids       Johnson, V.  Molnau       Skoglund     Worke
Dehler       Kelso        Mulder       Smith        Workman 
Dempsey      Knight       Ness         Stanek       
Entenza      Knoblach     Olson, M.    Sviggum      
Erhardt      Koppendrayer Onnen        Swenson, D.  
The motion did not prevail and the amendment was not adopted.


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8061

Van Dellen and Paulsen offered an amendment to H. F. No. 3249, the first engrossment, as amended.

POINT OF ORDER

McColllum raised a point of order pursuant to rule 3.09 that the Van Dellen and Paulsen amendment was not in order. The Speaker ruled the point of order well taken and the amendment out of order.

The Speaker called Trimble to the Chair.

Girard moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 91, line 14, strike "1.5" and insert "1.45"

The motion prevailed and the amendment was adopted.

Marko; Long; Wagenius; Skoglund; Entenza; Kelley; Clark; Greenfield; Rest; Trimble; Mariani; Delmont; Garcia; Johnson, A.; McCollum; Kahn; Osthoff; McGuire; Greiling; Hausman; Orfield and Wejcman offered an amendment to H. F. No. 3249, the first engrossment, as amended.

POINT OF ORDER

Tunheim raised a point of order pursuant to rule 3.09 that the Marko et al amendment was not in order. Speaker pro tempore Trimble ruled the point of order well taken and the amendment out of order.

Bettermann, Tuma, Paulsen, Dehler, Seagren, Dempsey and Sykora moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 293, after line 1, insert:

"ARTICLE 12

EDUCATION INVESTMENT

Section 1. [11A.165] [EDUCATION INVESTMENT FUND.]

Subdivision 1. [ESTABLISHMENT.] A fund called the education investment fund is established in the state treasury for the purpose of investing money for grants to post-secondary students under section 136A.123. Accounts may be established within the fund for specific fields of study or geographical areas to which a corporation or individual wishes to contribute. Accounts may not be established that discriminate on the basis of race, ethnicity, or gender.

Subd. 2. [ASSETS.] The assets of the education investment fund shall consist of money contributed by private corporations, foundations, or individuals, and all income from the investment of contributions to the fund. All assets of the fund are appropriated for the purpose of supporting grants under section 136A.123.

Subd. 3. [MANAGEMENT.] The education investment fund shall be managed by the board.

Subd. 4. [INVESTMENTS.] The education investment fund shall be invested subject to the provisions of section 11A.24.

Subd. 5. [DISTRIBUTION OF ASSETS.] The board shall annually transfer appropriations from the fund to the higher education services office for distribution to eligible students under section 136A.123. Appropriations transferred to the higher education services office which are not spent do not cancel but are available for grants in the following fiscal year.


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Sec. 2. [136A.123] [EDUCATION INVESTMENT GRANT PROGRAM.]

Subdivision 1. [ESTABLISHMENT.] An education investment grant program is established to provide grants to low-income students who withdraw funds from a qualified savings plan to pay for their post-secondary education.

Subd. 2. [ELIGIBILITY.] To be eligible to receive a grant from an account within the fund, a student must be:

(1) a resident of the state of Minnesota;

(2) enrolled at least half time in an undergraduate program of instruction at a public or private post-secondary institution; and

(3) expend funds withdrawn from a savings plan under section 290.0803 to pay for post-secondary education expenses in the award year.

Subd. 3. [ALLOCATION; AWARDS.] Grants must be awarded on a funds available basis from appropriations transferred to the office by the state board of investment under section 11A.165. The office shall establish rules to govern the size and distribution of grant awards. If insufficient funds are available to award grants to all eligible applicants, the office shall give priority to applicants who demonstrate the greatest savings effort relative to income. A grant awarded under this section does not affect a recipient's eligibility for a state grant under section 136A.121.

Sec. 3. Minnesota Statutes 1994, section 290.01, subdivision 19a, is amended to read:

Subd. 19a. [ADDITIONS TO FEDERAL TAXABLE INCOME.] For individuals, estates, and trusts, there shall be added to federal taxable income:

(1)(i) interest income on obligations of any state other than Minnesota or a political or governmental subdivision, municipality, or governmental agency or instrumentality of any state other than Minnesota exempt from federal income taxes under the Internal Revenue Code or any other federal statute, and

(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue Code, except the portion of the exempt-interest dividends derived from interest income on obligations of the state of Minnesota or its political or governmental subdivisions, municipalities, governmental agencies or instrumentalities, but only if the portion of the exempt-interest dividends from such Minnesota sources paid to all shareholders represents 95 percent or more of the exempt-interest dividends that are paid by the regulated investment company as defined in section 851(a) of the Internal Revenue Code, or the fund of the regulated investment company as defined in section 851(h) of the Internal Revenue Code, making the payment; and

(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal government described in section 7871(c) of the Internal Revenue Code shall be treated as interest income on obligations of the state in which the tribe is located;

(2) the amount of income taxes paid or accrued within the taxable year under this chapter and income taxes paid to any other state or to any province or territory of Canada, to the extent allowed as a deduction under section 63(d) of the Internal Revenue Code, but the addition may not be more than the amount by which the itemized deductions as allowed under section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of the Internal Revenue Code. For the purpose of this paragraph, the disallowance of itemized deductions under section 68 of the Internal Revenue Code of 1986, income tax is the last itemized deduction disallowed;

(3) the capital gain amount of a lump sum distribution to which the special tax under section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law Number 99-514, applies; and

(4) the amount of income taxes paid or accrued within the taxable year under this chapter and income taxes paid to any other state or any province or territory of Canada, to the extent allowed as a deduction in determining federal adjusted gross income. For the purpose of this paragraph, income taxes do not include the taxes imposed by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729; and

(5) the amount provided by section 290.0803, subdivision 3.


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Sec. 4. Minnesota Statutes 1995 Supplement, section 290.01, subdivision 19b, is amended to read:

Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For individuals, estates, and trusts, there shall be subtracted from federal taxable income:

(1) interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others not to exceed $650 for each dependent in grades kindergarten to 6 and $1,000 for each dependent in grades 7 to 12, for tuition, textbooks, and transportation of each dependent in attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363. As used in this clause, "textbooks" includes books and other instructional materials and equipment used in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. In order to qualify for the subtraction under this clause the taxpayer must elect to itemize deductions under section 63(e) of the Internal Revenue Code;

(4) to the extent included in federal taxable income, distributions from a qualified governmental pension plan, an individual retirement account, simplified employee pension, or qualified plan covering a self-employed person that represent a return of contributions that were included in Minnesota gross income in the taxable year for which the contributions were made but were deducted or were not included in the computation of federal adjusted gross income. The distribution shall be allocated first to return of contributions until the contributions included in Minnesota gross income have been exhausted. This subtraction applies only to contributions made in a taxable year prior to 1985;

(5) income as provided under section 290.0802;

(6) the amount of unrecovered accelerated cost recovery system deductions allowed under subdivision 19g;

(7) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491;

(8) to the extent not deducted in determining federal taxable income, the amount paid for health insurance of self-employed individuals as determined under section 162(l) of the Internal Revenue Code, except that the 25 percent limit does not apply. If the taxpayer deducted insurance payments under section 213 of the Internal Revenue Code of 1986, the subtraction under this clause must be reduced by the lesser of:

(i) the total itemized deductions allowed under section 63(d) of the Internal Revenue Code, less state, local, and foreign income taxes deductible under section 164 of the Internal Revenue Code and the standard deduction under section 63(c) of the Internal Revenue Code; or

(ii) the lesser of (A) the amount of insurance qualifying as "medical care" under section 213(d) of the Internal Revenue Code to the extent not deducted under section 162(1) of the Internal Revenue Code or excluded from income or (B) the total amount deductible for medical care under section 213(a); and

(9) the exemption amount allowed under Laws 1995, chapter 255, article 3, section 2, subdivision 3; and

(10) the subtraction provided by section 290.0803, subdivision 2.


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8064

Sec. 5. [290.0803] [HIGHER EDUCATION TRUSTS.]

Subdivision 1. [DEFINITIONS.] (a) For the purposes of this section, the following terms have the meanings given them.

(b) "Higher education trust" means a grantor trust created or organized in Minnesota for the purpose of funding the qualified education expenses of the grantor, but only if the written governing instrument creating the trust meets the following requirements:

(1) No contributions shall be accepted unless it is in cash, and contributions shall not be accepted for the taxable year in excess of $2,000.

(2) The trustee is a bank or other person who demonstrates to the satisfaction of the commissioner that the manner in which the other person will administer the trust will be consistent with the requirements of this section.

(3) No part of the trust funds shall be invested in life insurance contracts.

(4) The interest of an individual in the balance of the individual's account is nonforfeitable.

(5) The assets of the trust shall not be commingled with other property except in a common trust fund or common investment fund.

(6) The trust is not taxed for federal tax purposes as an individual retirement account under section 408 of the Internal Revenue Code.

(c) "Qualified education expense of the grantor" means tuition, books, and fees required for the enrollment or attendance at an eligible education institution of the grantor; the grantor's spouse; or any child, grandchild, or ancestor of the grantor or grantor's spouse. A qualified education expense of the grantor does not include expenses with respect to any course or other education involving sports, games, or hobbies other than as part of a degree program.

The amount of qualified higher education expenses otherwise taken into account under this paragraph with respect to the education of an individual shall be reduced, before the application of this paragraph, by the sum of the amounts received with respect to the individual for the taxable year as:

(1) a qualified scholarship which under section 117 of the Internal Revenue Code of 1986 is not includable in gross income;

(2) an educational assistance allowance under United States Code, title 38, chapter 30, 31, 32, 34, or 35;

(3) a payment, other than a gift, bequest, devise, or inheritance within the meaning of section 102(a) of the Internal Revenue Code for educational expenses, or attributable to attendance at an eligible educational institution, which is exempt from income taxation by any law of the United States; or

(4) amounts excluded from federal taxable income under section 135 of the Internal Revenue Code.

(d) For the purposes of paragraph (c), "eligible educational institution" means:

(1) an institution described in section 1201(a) or subparagraph (C) or (D) of section 481(a)(1) of the Higher Education Act of 1965; or

(2) an area vocational education school, as defined in subparagraph (C) or (D) of section 521(3) of the Carl D. Perkins' Vocational Education Act, that is in any state, as defined in section 521(27) of the Carl D. Perkins' Vocational Education Act.

Subd. 2. [SUBTRACTION.] The grantor is allowed a subtraction from federal taxable income in the amount of (1) the contribution made by the grantor to a higher education trust in the grantor's taxable year, and (2) any net income or net capital gain other than income which is excluded from Minnesota tax by section 290.01, subdivision 19b, clause (1), generated by the higher education trust that is included in the grantor's federal taxable income for the year.

Subd. 3. [ADDITION.] The net income or capital loss of a higher education trust for a tax year which is included in the computation of the grantor's federal taxable income must be added to federal taxable income to the extent the loss is included in the grantor's computation of federal taxable income.


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Subd. 4. [TAX ON DISTRIBUTION FROM A HIGHER EDUCATION TRUST.] In the event of distribution from a higher education trust within five years of the establishment of the higher education trust or in a year in which the distribution exceeds the qualified education expense of the grantor for the year notwithstanding any provision to the contrary, there is imposed on the grantor or the grantor's estate an additional tax in the amount of (1) two percent plus the highest marginal tax rate applicable to the grantor's net income in the year of distribution under section 290.06, subdivision 2c, clause (a), multiplied by the amount of the distribution if the distribution is made within five years of the establishment of the trust; or (2) the percentage determined under clause (1) multiplied by the amount of the distribution which exceeds the qualified education expense of the grantor for the year for distributions from a trust in existence for more than five years.

This tax applies regardless of whether the true grantor is a resident or nonresident of Minnesota in the year of distribution.

In no event shall the cumulative distributions subject to the tax in this subdivision exceed the cumulative amount of subtractions less cumulative additions claimed by the grantor on the grantor's Minnesota individual income tax returns for tax years prior to the year of distribution. Notwithstanding the filing requirements of section 289A.08, subdivision 1, a grantor is required to file a Minnesota individual tax return for any year in which the tax provided by this subdivision is imposed.

Subd. 5. [RETURNS OF HIGHER EDUCATION TRUSTS.] For each year a higher education trust is in existence, the grantor of the trust is required to file a return with the commissioner by October 15 of the year following the tax year. The return must include the social security number of the grantor, the amount of the contributions made to the trust by the grantor in the year, the amount of net income or loss of the trust for the year, the amount of distributions made in the year, and the amount of the qualified higher education expense incurred by the grantor in the year.

Subd. 6. [SUNSET OF THE SUBTRACTION AND ADDITION.] If the federal government enacts an income tax provision providing for nondeductible individual retirement accounts similar to the provision proposed by Congress in section 11015 of Revenue Reconciliation and Tax Simplification Provisions from Conference Report on HR 2491, Seven-Year Balanced Budget Reconciliation Act of 1995, filed November 16, 1995, the subtraction and additions provided by subdivisions 2 and 3 will not be allowed for tax years beginning after the year of federal enactment.

Subd. 7. [ROLL-OVER OF DISTRIBUTIONS FROM HIGHER EDUCATION TRUSTS MADE AFTER THE YEAR OF THE SUNSET OF SUBDIVISION 2.] If the federal government enacts a tax provision as provided in subdivision 6, the tax imposed by subdivision 4 will be reduced by the percentage determined under subdivision 4 of the amount contributed by the grantor to the nondeductible individual retirement account established by the grantor, other than the roll-over proceeds from an individual retirement account governed by section 407 of the Internal Revenue Code, in the year of distribution.

Sec. 6. Minnesota Statutes 1994, section 290.091, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For purposes of the tax imposed by this section, the following terms have the meanings given:

(a) "Alternative minimum taxable income" means the sum of the following for the taxable year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section 55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum taxable income, but excluding the Minnesota charitable contribution deduction and the medical expense deduction;

(3) for depletion allowances computed under section 613A(c) of the Internal Revenue Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), to the extent not included in federal alternative minimum taxable income, the excess of the deduction for depletion allowable under section 611 of the Internal Revenue Code for the taxable year over the adjusted basis of the property at the end of the taxable year (determined without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the amount of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue Code determined without regard to subparagraph (E);


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8066

(5) to the extent not included in federal alternative minimum taxable income, the amount of interest income as provided by section 290.01, subdivision 19a, clause (1);

less the sum of the amounts determined under the following clauses (1) to (3) (4):

(1) interest income as defined in section 290.01, subdivision 19b, clause (1);

(2) an overpayment of state income tax as provided by section 290.01, subdivision 19b, clause (2), to the extent included in federal alternative minimum taxable income; and

(3) the amount of investment interest paid or accrued within the taxable year on indebtedness to the extent that the amount does not exceed net investment income, as defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted in computing federal adjusted gross income; and

(4) the amount provided in subdivision 19b, clause (10).

In the case of an estate or trust, alternative minimum taxable income must be computed as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3) of the Internal Revenue Code.

(c) "Tentative minimum tax" equals seven percent of alternative minimum taxable income after subtracting the exemption amount determined under subdivision 3.

(d) "Regular tax" means the tax that would be imposed under this chapter (without regard to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed under this chapter.

(e) "Net minimum tax" means the minimum tax imposed by this section.

(f) "Minnesota charitable contribution deduction" means a charitable contribution deduction under section 170 of the Internal Revenue Code to or for the use of an entity described in section 290.21, subdivision 3, clauses (a) to (e).

Sec. 7. Minnesota Statutes 1994, section 290.091, subdivision 6, is amended to read:

Subd. 6. [CREDIT FOR PRIOR YEARS' LIABILITY.] (a) A credit is allowed against the tax imposed by this chapter on individuals, trusts, and estates equal to the minimum tax credit for the taxable year. The minimum tax credit equals the adjusted net minimum tax for taxable years beginning after December 31, 1988, reduced by the minimum tax credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for the taxable year of

(1) the regular tax, over

(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero.

(b) The adjusted net minimum tax for a taxable year equals the lesser of the net minimum tax or the excess (if any) of

(1) the tentative minimum tax, over

(2) seven percent of the sum of

(i) adjusted gross income as defined in section 62 of the Internal Revenue Code,

(ii) interest income as defined in section 290.01, subdivision 19a, clause (1),

(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the Internal Revenue Code, to the extent not included under clause (ii),

(iv) depletion as defined in section 57(a)(1), determined without regard to the last sentence of paragraph (1), of the Internal Revenue Code, less

(v) the deductions provided in subdivision 2, paragraph (a), clauses clause (5), items (i), (ii), and (iii) (1) to (4), and

(vi) the exemption amount determined under subdivision 3.


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In the case of an individual who is not a Minnesota resident for the entire year, adjusted net minimum tax must be multiplied by the fraction defined in section 290.06, subdivision 2c, paragraph (e). In the case of a trust or estate, adjusted net minimum tax must be multiplied by the fraction defined under subdivision 4, paragraph (b).

Sec. 8. [EFFECTIVE DATES.]

Sections 3 to 7 are effective for tax years beginning after December 31, 1996."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Bettermann et al amendment and the roll was called. There were 81 yeas and 51 nays as follows:

Those who voted in the affirmative were:

Abrams       Erhardt      Koppendrayer Olson, M.    Swenson, D.
Anderson, B. Finseth      Kraus        Onnen        Swenson, H.
Anderson, R. Frerichs     Krinkie      Osskopp      Sykora
Bakk         Garcia       Larsen       Otremba      Tompkins
Bettermann   Girard       Leighton     Ozment       Tuma
Bishop       Goodno       Leppik       Paulsen      Van Dellen
Boudreau     Greiling     Lindner      Pawlenty     Van Engen
Bradley      Gunther      Lynch        Pellow       Vickerman
Broecker     Haas         Macklin      Pelowski     Warkentin
Carlson, S.  Hackbarth    Mahon        Peterson     Weaver
Commers      Harder       Mares        Rhodes       Wolf
Cooper       Hasskamp     McElroy      Rostberg     Worke
Daggett      Holsten      McGuire      Rukavina     Workman 
Davids       Jennings     Molnau       Seagren      
Dehler       Johnson, V.  Mulder       Smith        
Dempsey      Knight       Ness         Stanek       
Entenza      Knoblach     Olson, E.    Sviggum      
Those who voted in the negative were:

Bertram      Huntley      Long         Orfield      Trimble
Brown        Jaros        Lourey       Osthoff      Tunheim
Carlson, L.  Jefferson    Luther       Ostrom       Wagenius
Carruthers   Johnson, A.  Mariani      Perlt        Wejcman
Clark        Johnson, R.  Marko        Pugh         Wenzel
Dauner       Kahn         McCollum     Rest         Winter
Dawkins      Kalis        Milbert      Rice         Sp.Anderson,I
Dorn         Kelley       Munger       Sarna        
Farrell      Kelso        Murphy       Skoglund     
Greenfield   Kinkel       Opatz        Solberg      
Hausman      Lieder       Orenstein    Tomassoni    
The motion prevailed and the amendment was adopted.

Abrams moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 227, line 2, reinstate the stricken "and"

Page 227, line 4, delete "; and" and insert a period

Page 227, delete lines 5 to 8

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.


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The question was taken on the Abrams amendment and the roll was called. There were 91 yeas and 40 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Krinkie      Orenstein    Swenson, H.
Anderson, B. Frerichs     Larsen       Osskopp      Sykora
Anderson, R. Garcia       Leppik       Osthoff      Tompkins
Bertram      Girard       Lindner      Ostrom       Trimble
Bettermann   Goodno       Long         Otremba      Tuma
Bishop       Gunther      Luther       Ozment       Van Dellen
Boudreau     Haas         Lynch        Paulsen      Van Engen
Bradley      Hackbarth    Macklin      Pawlenty     Vickerman
Broecker     Harder       Mares        Pellow       Warkentin
Carlson, S.  Hasskamp     Marko        Pelowski     Weaver
Commers      Holsten      McCollum     Pugh         Wejcman
Daggett      Jennings     McElroy      Rhodes       Wenzel
Dauner       Johnson, V.  Milbert      Rostberg     Wolf
Davids       Kalis        Molnau       Schumacher   Worke
Dehler       Kinkel       Mulder       Seagren      Workman 
Dempsey      Knight       Ness         Smith        
Dorn         Knoblach     Olson, M.    Stanek       
Erhardt      Koppendrayer Onnen        Sviggum      
Farrell      Kraus        Opatz        Swenson, D.  
Those who voted in the negative were:

Bakk         Greiling     Leighton     Orfield      Tunheim
Brown        Hausman      Lieder       Peterson     Wagenius
Carlson, L.  Huntley      Lourey       Rest         Winter
Carruthers   Jaros        Mahon        Rice         Sp.Anderson,I
Clark        Jefferson    Mariani      Rukavina     
Cooper       Johnson, A.  McGuire      Sarna        
Dawkins      Johnson, R.  Munger       Skoglund     
Entenza      Kahn         Murphy       Solberg      
Greenfield   Kelley       Olson, E.    Tomassoni    
The motion prevailed and the amendment was adopted.

Bakk moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

"Page 88, line 3, delete "0.95" and insert "0.9"

Page 88, line 11, delete "1.90" and insert "1.75"

Page 90, line 30, delete ".40" and insert ".35"

Page 90, line 34, delete "0.95" and insert "0.9"

Page 91, line 1, delete "1.45" and insert "1.35"

Page 91, line 14, strike "1.5" and insert "1.45"

Page 94, line 3, delete "2.9" and insert "2.75"

Page 106, line 17, delete "62.3" and insert "81.1" "

A roll call was requested and properly seconded.

The question was taken on the Bakk amendment and the roll was called. There were 58 yeas and 72 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Farrell      Kahn         Orenstein    Sarna
Bakk         Finseth      Kalis        Orfield      Schumacher
Bertram      Greenfield   Kinkel       Osskopp      Skoglund
Brown        Hasskamp     Leighton     Ostrom       Solberg
Carlson, L.  Hausman      Lieder       Otremba      Tomassoni
Carruthers   Huntley      Long         Ozment       Trimble
Cooper       Jaros        Lourey       Pelowski     Tunheim
Daggett      Jefferson    Mariani      Perlt        Wenzel
Dauner       Jennings     Marko        Peterson     Winter

JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8069
Davids Johnson, A. Murphy Rest Sp.Anderson,I Dehler Johnson, R. Olson, E. Rice Dorn Johnson, V. Opatz Rukavina
Those who voted in the negative were:

Abrams       Garcia       Krinkie      Ness         Tompkins
Anderson, B. Girard       Larsen       Olson, M.    Tuma
Bettermann   Goodno       Leppik       Onnen        Van Dellen
Bishop       Greiling     Lindner      Paulsen      Van Engen
Boudreau     Gunther      Luther       Pawlenty     Vickerman
Bradley      Haas         Lynch        Pellow       Wagenius
Broecker     Hackbarth    Macklin      Rhodes       Warkentin
Carlson, S.  Harder       Mahon        Rostberg     Weaver
Clark        Holsten      Mares        Seagren      Wejcman
Commers      Kelley       McElroy      Smith        Wolf
Dawkins      Kelso        McGuire      Stanek       Worke
Dempsey      Knight       Milbert      Sviggum      Workman 
Entenza      Knoblach     Molnau       Swenson, D.  
Erhardt      Koppendrayer Mulder       Swenson, H.  
Frerichs     Kraus        Munger       Sykora       
The motion did not prevail and the amendment was not adopted.

The Speaker resumed the Chair.

CALL OF THE HOUSE

On the motion of Abrams and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:

Abrams       Farrell      Knoblach     Olson, M.    Stanek
Anderson, B. Finseth      Koppendrayer Onnen        Sviggum
Anderson, R. Frerichs     Kraus        Opatz        Swenson, D.
Bakk         Garcia       Krinkie      Orenstein    Swenson, H.
Bertram      Girard       Larsen       Orfield      Sykora
Bettermann   Goodno       Leighton     Osskopp      Tomassoni
Bishop       Greenfield   Leppik       Ostrom       Tompkins
Boudreau     Greiling     Lieder       Otremba      Trimble
Bradley      Gunther      Lindner      Ozment       Tuma
Broecker     Haas         Long         Paulsen      Tunheim
Brown        Hackbarth    Lourey       Pawlenty     Van Dellen
Carlson, L.  Harder       Luther       Pellow       Van Engen
Carlson, S.  Hasskamp     Lynch        Pelowski     Vickerman
Carruthers   Hausman      Macklin      Perlt        Wagenius
Clark        Holsten      Mares        Peterson     Warkentin
Commers      Huntley      Mariani      Rest         Weaver
Cooper       Jaros        Marko        Rhodes       Wejcman
Daggett      Jefferson    McCollum     Rice         Wenzel
Dauner       Jennings     McElroy      Rostberg     Winter
Davids       Johnson, A.  McGuire      Rukavina     Workman
Dawkins      Johnson, R.  Molnau       Sarna        Sp.Anderson,I
Dehler       Johnson, V.  Mulder       Schumacher   
Dempsey      Kahn         Munger       Seagren      
Dorn         Kelley       Murphy       Skoglund     
Entenza      Kinkel       Ness         Smith        
Erhardt      Knight       Olson, E.    Solberg      
Carruthers moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.

Lieder; Johnson, V.; Kalis; Wenzel and Rukavina moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 214, after line 35, insert:

"Sec. 2. Minnesota Statutes 1994, section 161.082, subdivision 2a, is amended to read:

Subd. 2a. [TOWN BRIDGES AND CULVERTS; TOWN ROAD ACCOUNT.] (a) An amount equal to 25 percent of the county turnback account must be expended on town road bridge structures that are ten feet or more in length and on town road culverts that replace existing town road bridges. In addition, if the present bridge structure is less


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8070

than ten feet in length but a hydrological survey indicates that the replacement bridge structure or culvert must be ten feet or more in length, then the bridge or culvert is eligible for replacement funds. In addition, if a culvert that replaces a deficient bridge is in a county comprehensive water plan approved by the board of water and soil resources and the department of natural resources, the costs of the culvert and roadway grading other than surfacing are eligible for replacement funds up to the cost of constructing a replacement bridge. The expenditures on bridge structures and culverts may be on a matching basis, and if on a matching basis, not more than 90 percent of the cost of a bridge structure or culvert may be paid from the county turnback account. When bridge approach construction work exceeds $10,000 in costs, or when the county engineer determines that the cost of the replacement culverts alone will not exceed $20,000, the town shall be eligible for financial assistance from the town bridge account. Financial assistance shall be requested by resolution of the county board and shall be limited to:

(1) 100 percent of the cost of the bridge approach work that is in excess of $10,000; or

(2) 100 percent of the cost of the replacement culverts when the cost does not exceed $20,000 and the town board agrees to be responsible for all the other costs, which may include costs for structural removal, installation, and permitting. The replacement structure design and costs shall be approved and certified by the county engineer, but need not be subsequently approved by the department of transportation.

(b) An amount equal to 47.5 percent of the county turnback account must be set aside as a town road account and distributed as provided in section 162.081.

(c) An amount equal to 1.15 percent of the county turnback account must be set aside as a metropolitan town road account and distributed as provided in section 162.082.

Sec. 3. Minnesota Statutes 1994, section 162.02, subdivision 7, is amended to read:

Subd. 7. [ESTABLISHMENT IN NEW LOCATION OR OVER ESTABLISHED ROADS.] The county board of any county may establish and locate any county state-aid highway on new location where there is no existing road, or it may establish and locate the highway upon or over any established road or street or a specified portion thereof within its limits; provided, that. Except as provided in subdivision 8a, no county state-aid highway shall be established or located within the corporate limits of any city without the approval of the governing body of the city, except that when a county state-aid highway is relocated the approval of the plans by the governing body shall be deemed to be a transfer of the previous location of the highway to the jurisdiction of the city. The approval shall be in the manner and form required by the commissioner.

Sec. 4. Minnesota Statutes 1994, section 162.02, subdivision 8, is amended to read:

Subd. 8. [APPROVAL BY CITY.] Except as provided in subdivision 8a, no portion of the county state-aid highway system lying within the corporate limits of any city shall be constructed, reconstructed, or improved nor the grade thereof changed without the prior approval of the plans by the governing body of such city and the approval shall be in the manner and form required by the commissioner.

Sec. 5. Minnesota Statutes 1994, section 162.02, is amended by adding a subdivision to read:

Subd. 8a. [DISPUTE RESOLUTION BOARD.] If a city has failed to approve establishment, construction, reconstruction, or improvement of a county state-aid highway within its corporate limits under subdivision 7 or 8, the county board may, by resolution, request the commissioner to appoint a dispute resolution board consisting of one county commissioner, one county engineer, one city council member or city mayor, one city engineer, and one representative of the department of transportation. The board shall review the proposed change and make a recommendation to the commissioner. Notwithstanding any other law, the commissioner may approve the establishment, construction, reconstruction, or improvement of a county state-aid highway recommended by the board.

Sec. 6. Minnesota Statutes 1994, section 162.07, subdivision 1, is amended to read:

Subdivision 1. [FORMULA.] After deducting for administrative costs and for the disaster account and research account and state park roads as heretofore provided, the remainder of the total sum provided for in section 162.06, subdivision 1, shall be identified as the apportionment sum and shall be apportioned by the commissioner to the several counties on the basis of the needs of the counties as determined in accordance with the following formula:

(1) An amount equal to ten percent of the apportionment sum shall be apportioned equally among the 87 counties.


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8071

(2) An amount equal to ten percent of the apportionment sum shall be apportioned among the several counties so that each county shall receive of such amount the percentage that its motor vehicle registration for the calendar year preceding the one last past, determined by residence of registrants, bears to the total statewide motor vehicle registration.

(3) An amount equal to 30 percent of the apportionment sum shall be apportioned among the several counties so that each county shall receive of such amount the percentage that its total miles lane-miles of approved county state-aid highways bears to the total miles lane-miles of approved statewide county state-aid highways.

(4) An amount equal to 50 percent of the apportionment sum shall be apportioned among the several counties so that each county shall receive of such amount the percentage that its money needs bears to the sum of the money needs of all of the individual counties; provided, that the percentage of such amount that each county is to receive shall be adjusted so that each county shall receive in 1958 a total apportionment at least ten percent greater than its total 1956 apportionments from the state road and bridge fund; and provided further that those counties whose money needs are thus adjusted shall never receive a percentage of the apportionment sum less than the percentage that such county received in 1958.

Sec. 7. Minnesota Statutes 1994, section 162.07, subdivision 5, is amended to read:

Subd. 5. [SCREENING BOARD.] On or before September 1 of each year the county engineer of each county shall forward to the commissioner, on forms prepared by the commissioner, all information relating to the mileage, in lane-miles, of the county state-aid highway system in the county, and the money needs of the county that the commissioner deems necessary in order to apportion the county state-aid highway fund in accordance with the formula heretofore set forth. Upon receipt of the information the commissioner shall appoint a board consisting of nine the following county engineers. The board shall be so selected that each county engineer appointed shall be from a different state highway construction district:

(1) two county engineers from the metropolitan highway construction district;

(2) one county engineer from each nonmetropolitan highway district; and

(3) one additional county engineer from each county with a population of 175,000 or more.

No county engineer shall be appointed under clause (1) or (2) so as to serve consecutively for more than two four years. The board shall investigate and review the information submitted by each county and shall on or before the first day of November of each year submit its findings and recommendations in writing as to each county's mileage lane-mileage and money needs to the commissioner on a form prepared by the commissioner. Final determination of the mileage lane-mileage of each system and the money needs of each county shall be made by the commissioner.

Sec. 8. Minnesota Statutes 1994, section 162.07, subdivision 6, is amended to read:

Subd. 6. [ESTIMATES TO BE MADE IF INFORMATION NOT PROVIDED.] In the event that any county shall fail to submit the information provided for herein, the commissioner shall estimate the mileage lane-mileage and the money needs of the county. The estimate shall be used in determining the apportionment formula. The commissioner may withhold payment of the amount apportioned to the county until the information is submitted.

Sec. 9. [162.082] [METROPOLITAN TOWN ROAD ACCOUNT.]

Subdivision 1. [DEFINITION.] For purposes of this section "metropolitan town" means any town within the seven-county metropolitan area as defined in section 473.121, subdivision 2, that has a population of 7,500 or more according to the most recent federal decennial census.

Subd. 2. [ACCOUNT CREATED.] A metropolitan town road account is created in the county state-aid highway fund, consisting of amounts transferred from the county turnback account established under section 161.082.

Subd. 3. [APPORTIONMENT.] Funds in the metropolitan town road account must be apportioned to each county in the seven-county metropolitan area so that each such county receives the percentage that the total miles of town road in metropolitan towns in the county bears to the total miles of town roads in metropolitan towns in the metropolitan area.


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Subd. 4. [DISTRIBUTION TO COUNTIES.] Upon determining the amount of money to be apportioned to each county under section 162.07, the commissioner shall also determine the amounts in the metropolitan town road account to be apportioned under subdivision 3. The apportionment must be included in the statement sent to the commissioner of finance and the county auditor and county engineer of each county under section 162.08, subdivision 2. The amounts so apportioned and allocated to each county from the metropolitan town road account must be paid by the state to the treasurer of each county at the same time that payments are made under section 162.08, subdivision 2, provided that the amounts must be paid in a sufficient time to allow the county to distribute the amounts to each metropolitan town by March 1, annually.

Subd. 5. [DISTRIBUTION TO METROPOLITAN TOWNS.] The county treasurer of each county receiving money from the metropolitan town road account must, by March 1 of each year or within 30 days of receipt of payment from the commissioner, pay to each metropolitan town in the county a percentage of the money it receives that year from the metropolitan town road account equal to the percentage that that metropolitan town's roads bear to the total mileage of metropolitan town roads in the county.

Subd. 6. [RESTRICTION ON APPORTIONMENT.] The commissioner shall not distribute any funds under this section in any calendar year if the commissioner determines that such distribution would reduce the total amount of money distributed to all counties from the county turnback account below the amount distributed to all counties from the county turnback account in calendar year 1996.

Sec. 10. Minnesota Statutes 1994, section 174.32, subdivision 2, is amended to read:

Subd. 2. [TRANSIT ASSISTANCE FUND; DISTRIBUTION.] The transit assistance fund receives money distributed under section 297B.09. Eighty percent of the receipts of the fund must be placed into a metropolitan account for distribution to recipients located in the metropolitan area and 20 percent into a separate account for distribution to recipients located outside of the metropolitan area. Except as otherwise provided in this subdivision, the metropolitan council is responsible for distributing assistance from the metropolitan account, and the commissioner is responsible for distributing assistance from the other account. The legislature shall appropriate money in the transit assistance fund to the metropolitan council for transit assistance in the metropolitan area, and to the commissioner for transit assistance outside the metropolitan area."

Page 216, after line 31, insert:

"Sec. 15. Minnesota Statutes 1995 Supplement, section 296.02, subdivision 1b, is amended to read:

Subd. 1b. [RATES IMPOSED.] The gasoline excise tax is imposed at the following rates:

(a) From June 1, 1996, to December 31, 1996:

(1) E85 is taxed at the rate of 14.2 16.3 cents per gallon;

(2) M85 is taxed at the rate of 11.4 13.1 cents per gallon; and

(3) all other gasoline is taxed at the rate of 20 23 cents per gallon.

(b) On and after January 1, 1997:

(1) E85 is taxed at the rate of 17.7 cents per gallon;

(2) M85 is taxed at the rate of 14.3 cents per gallon; and

(3) all other gasoline is taxed at the rate of 25 cents per gallon.

Sec. 16. Minnesota Statutes 1994, section 296.02, is amended by adding a subdivision to read:

Subd. 1c. [ANNUAL GASOLINE TAX RATE ADJUSTMENT.] (a) Beginning in 1997 and annually thereafter, before April 1 of each year the commissioner of revenue shall adjust the rate of the gasoline excise tax. The new rate per gallon must be calculated by multiplying the rate in effect at the time of the calculation by an amount obtained under paragraph (b). The new rate must be rounded to the nearest 0.1 cent and is effective on April 1 of each year."


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8073

Page 216, line 34, delete "1c" and insert "1d"

Page 217, after line 31, insert:

"Sec. 19. Minnesota Statutes 1995 Supplement, section 296.025, subdivision 1b, is amended to read:

Subd. 1b. [TAX RATES.] The special fuel excise tax is imposed at the following rates:

(a) From June 1, 1996, to December 31, 1996:

(1) Liquefied petroleum gas or propane is taxed at the rate of 15 17.3 cents per gallon.

(2) Liquefied natural gas is taxed at the rate of 12 13.8 cents per gallon.

(3) Compressed natural gas is taxed at the rate of $1.739 $2 per thousand cubic feet; or 20 23 cents per gasoline equivalent, as defined by the National Conference on Weights and Measures, which is 5.66 pounds of natural gas.

(4) All other special fuel is taxed at the same rate as the gasoline excise tax.

(b) On and after January 1, 1997:

(1) Liquefied petroleum gas or propane is taxed at the rate of 18.7 cents per gallon.

(2) Liquefied natural gas is taxed at the rate of 15 cents per gallon.

(3) Compressed natural gas is taxed at the rate of $2.174 per thousand cubic feet; or 25 cents per gasoline equivalent, as defined by the National Conference on Weights and Measures, which is 5.66 pounds of natural gas.

(4) All other special fuel is taxed at the same rate as the gasoline excise tax."

Page 221, after line 15, insert:

"Sec. 26. Minnesota Statutes 1994, section 297B.09, subdivision 1, is amended to read:

Subdivision 1. [GENERAL FUND SHARE.] (a) Money collected and received under this chapter must be deposited in the state treasury and credited to the general fund. The amounts collected and received shall be credited as provided in this subdivision, and transferred from the general fund on July 15 and February 15 of each fiscal year. The commissioner of finance must make each transfer based upon the actual receipts of the preceding six calendar months and include the interest earned during that six-month period. The commissioner of finance may establish a quarterly or other schedule providing for more frequent payments to the transit assistance fund if the commissioner determines it is necessary or desirable to provide for the cash flow needs of the recipients of money from the transit assistance fund.

(b) Twenty-five Twenty percent of the money collected and received under this chapter after June 30, 1990, and before July 1, 1991 June 30, 1996, must be transferred to the highway user tax distribution fund and the transit assistance fund for apportionment as follows: 75 percent must be transferred to the highway user tax distribution fund for apportionment in the same manner and for the same purposes as other money in that fund, and the remaining 25 percent of the money must be transferred to the transit assistance fund to be appropriated to the commissioner of transportation for transit assistance within the state and to the metropolitan council.

(c) The distributions under this subdivision to the highway user tax distribution fund until June 30, 1991, and to the trunk highway fund thereafter, must be reduced by the amount necessary to fund the appropriation under section 41A.09, subdivision 1. For the fiscal years ending June 30, 1988, and June 30, 1989, the commissioner of finance, before making the transfers required on July 15 and January 15 of each year, shall estimate the amount required to fund the appropriation under section 41A.09, subdivision 1, for the six-month period for which the transfer is being made. The commissioner shall then reduce the amount transferred to the highway user tax distribution fund by the amount of that estimate. The commissioner shall reduce the estimate for any six-month period by the amount by which the estimate for the previous six-month period exceeded the amount needed to fund the appropriation under section 41A.09, subdivision 1, for that previous six-month period. If at any time during a six-month period in those fiscal years the amount of reduction in the transfer to the highway user tax distribution fund is insufficient to fund the


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8074

appropriation under section 41A.09, subdivision 1, for that period, the commissioner shall transfer to the general fund from the highway user tax distribution fund an additional amount sufficient to fund the appropriation for that period, but the additional amount so transferred to the general fund in a six-month period may not exceed the amount transferred to the highway user tax distribution fund for that six-month period."

Page 221, after line 18, insert:

"Sec. 28. [APPROPRIATIONS FOR FISCAL 1997.]

Notwithstanding any other law, the following appropriations for fiscal year 1997 are from the transit assistance fund:

(1) the appropriation for metropolitan transit assistance in Laws 1995, chapter 265, article 2, section 3;

(2) the appropriation from the general fund for Greater Minnesota transit assistance in Laws 1995, chapter 265, article 2, section 2, subdivision 3; and

(3) any appropriation made by law in 1996 from the general fund for fiscal year 1997 that is added to the appropriations identified in clauses (1) and (2). This clause applies to any such appropriation enacted in 1996 notwithstanding Minnesota Statutes, section 645.26, subdivision 3."

"Sec. 29. [COUNTY STATE-AID APPORTIONMENTS.]

Nothing in section 6 may be construed to require the commissioner of transportation to reduce the apportionment in calendar year 1997 or a subsequent year to any county under Minnesota Statutes, section 162.07, below the apportionment that county received under that section in calendar year 1996."

Renumber sections in sequence and correct internal references

Page 221, delete lines 19 to 22 and insert:

"Sec. 30. [EFFECTIVE DATE.]

Sections 1, 11 to 14, 16 to 18, 20 to 21, 23 to 25, and 27 are effective the day following final enactment. Section 15 is effective June 1, 1996, and applies to all gasoline in distributor storage on that date. Section 19 is effective June 1, 1996. Sections 10 and 26 are effective July 1, 1996, and apply to sales made on and after that date. Section 22 is effective July 1, 1996, for gasoline or special fuel purchased on and after that date."

Amend the title accordingly

Lieder moved to amend the Lieder et al amendment to H. F. No. 3249, the first engrossment, as amended, as follows:

Pages 7 and 8 of the Lieder amendment, delete section 16

Page 8, delete line 6 of the Lieder amendment

Page 8, line 8 of the Lieder amendment, delete "19" and insert "18"

Page 8, line 35 of the Lieder amendment, delete "26" and insert "25"

Page 10, line 17 of the Lieder amendment, delete "28" and insert "27"

Page 10, line 30 of the Lieder amendment, delete "29" and insert "28"

Page 11, line 3 of the Lieder amendment, delete "30" and insert "29"

Page 11, line 4 of the Lieder amendment, delete "16 to 18, 20 to 21, 23 to 25, and 27" and insert "16, 17, 19, 20, 22 to 24, and 26"


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8075

Page 11, line 7 of the Lieder amendment, delete "19" and insert "18"

Page 11, line 8 of the Lieder amendment, delete "26" and insert "25"

Page 11, line 9 of the Lieder amendment, delete "22" and insert "21"

The motion prevailed and the amendment to the amendment was adopted.

Abrams requested a division of the Lieder et al amendment, as amended, to H. F. No. 3249, the first engrossment, as amended.

The first portion of the Lieder et al amendment, as amended, to H. F. No. 3249, the first engrossment, as amended, reads as follows:

Page 216, after line 31, insert:

"Sec. 15. Minnesota Statutes 1995 Supplement, section 296.02, subdivision 1b, is amended to read:

Subd. 1b. [RATES IMPOSED.] The gasoline excise tax is imposed at the following rates:

(a) From June 1, 1996, to December 31, 1996:

(1) E85 is taxed at the rate of 14.2 16.3 cents per gallon;

(2) M85 is taxed at the rate of 11.4 13.1 cents per gallon; and

(3) all other gasoline is taxed at the rate of 20 23 cents per gallon.

(b) On and after January 1, 1997:

(1) E85 is taxed at the rate of 17.7 cents per gallon;

(2) M85 is taxed at the rate of 14.3 cents per gallon; and

(3) all other gasoline is taxed at the rate of 25 cents per gallon.

Page 217, after line 31, insert:

"Sec. 18. Minnesota Statutes 1995 Supplement, section 296.025, subdivision 1b, is amended to read:

Subd. 1b. [TAX RATES.] The special fuel excise tax is imposed at the following rates:

(a) From June 1, 1996, to December 31, 1996:

(1) Liquefied petroleum gas or propane is taxed at the rate of 15 17.3 cents per gallon.

(2) Liquefied natural gas is taxed at the rate of 12 13.8 cents per gallon.

(3) Compressed natural gas is taxed at the rate of $1.739 $2 per thousand cubic feet; or 20 23 cents per gasoline equivalent, as defined by the National Conference on Weights and Measures, which is 5.66 pounds of natural gas.

(4) All other special fuel is taxed at the same rate as the gasoline excise tax.

(b) On and after January 1, 1997:

(1) Liquefied petroleum gas or propane is taxed at the rate of 18.7 cents per gallon.

(2) Liquefied natural gas is taxed at the rate of 15 cents per gallon.


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(3) Compressed natural gas is taxed at the rate of $2.174 per thousand cubic feet; or 25 cents per gasoline equivalent, as defined by the National Conference on Weights and Measures, which is 5.66 pounds of natural gas.

(4) All other special fuel is taxed at the same rate as the gasoline excise tax."

The question was taken on the first portion of the Lieder et al amendment, as amended, and the roll was called. There were 41 yeas and 92 nays as follows:

Those who voted in the affirmative were:

Bakk         Davids       Kelso        Pelowski     Van Engen
Bertram      Dawkins      Lieder       Peterson     Vickerman
Bishop       Dorn         Lourey       Rukavina     Wenzel
Boudreau     Huntley      McElroy      Schumacher   Winter
Bradley      Jaros        Munger       Solberg      Sp.Anderson,I
Brown        Jennings     Murphy       Swenson, D.  
Carruthers   Johnson, R.  Ness         Swenson, H.  
Cooper       Johnson, V.  Olson, E.    Tomassoni    
Dauner       Kalis        Ostrom       Tunheim      
Those who voted in the negative were:

Abrams       Goodno       Krinkie      Onnen        Skoglund
Anderson, B. Greenfield   Larsen       Opatz        Smith
Anderson, R. Greiling     Leighton     Orenstein    Stanek
Bettermann   Gunther      Leppik       Orfield      Sviggum
Broecker     Haas         Lindner      Osskopp      Sykora
Carlson, L.  Hackbarth    Long         Osthoff      Tompkins
Carlson, S.  Harder       Luther       Otremba      Trimble
Clark        Hasskamp     Lynch        Ozment       Tuma
Commers      Hausman      Macklin      Paulsen      Van Dellen
Daggett      Holsten      Mahon        Pawlenty     Wagenius
Dehler       Jefferson    Mares        Pellow       Warkentin
Dempsey      Johnson, A.  Mariani      Perlt        Weaver
Entenza      Kahn         Marko        Pugh         Wejcman
Erhardt      Kelley       McCollum     Rest         Wolf
Farrell      Kinkel       McGuire      Rhodes       Worke
Finseth      Knight       Milbert      Rice         Workman 
Frerichs     Knoblach     Molnau       Rostberg     
Garcia       Koppendrayer Mulder       Sarna        
Girard       Kraus        Olson, M.    Seagren      
The motion did not prevail and the first portion of the Lieder et al amendment, as amended, was not adopted.

Lieder withdrew the remaining portion of the Lieder et al amendment, as amended, to H. F. No. 3249, the first engrossment, as amended.

Ness was excused between the hours of 8:00 p.m. and 9:15 p.m..

The Speaker called Trimble to the Chair.

CALL OF THE HOUSE LIFTED

Carruthers moved that the call of the House be suspended. The motion prevailed and it was so ordered.

Kelley and Bakk moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 88, line 3, restore the stricken "one" and delete "0.95"

Page 88, line 11, restore the stricken "two" and delete "1.90"

Page 90, line 30, restore the stricken ".45" and delete ".40"

Page 90, line 34, restore the stricken "one" and delete "0.95"


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Page 91, line 1, restore the stricken "1.5" and delete "1.45"

Page 102, line 35, after "$72,000" insert "but does not exceed $150,000"

Page 102, line 36, restore the stricken "2.5" and delete "2.25" and delete "two" and insert "thereafter, and the market value of each parcel that exceeds $150,000 has a class rate of three percent for taxes payable in 1997 and 3.5"

Pages 105-106, delete section 17

Page 156, line 22, delete "17, 19," and insert "19"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

Delete the Girard amendment A96-1724

A roll call was requested and properly seconded.

The question was taken on the Kelley and Bakk amendment and the roll was called. There were 28 yeas and 103 nays as follows:

Those who voted in the affirmative were:

Bakk         Farrell      Kahn         Murphy       Tomassoni
Bishop       Greenfield   Kelley       Olson, E.    Trimble
Clark        Greiling     Kinkel       Rice         Wagenius
Dauner       Hausman      Long         Rukavina     Wejcman 
Dawkins      Jaros        Marko        Skoglund     
Entenza      Johnson, R.  McCollum     Solberg      
Those who voted in the negative were:

Abrams       Frerichs     Larsen       Orenstein    Stanek
Anderson, B. Girard       Leighton     Orfield      Sviggum
Anderson, R. Goodno       Leppik       Osskopp      Swenson, D.
Bertram      Gunther      Lieder       Osthoff      Swenson, H.
Bettermann   Haas         Lindner      Ostrom       Sykora
Boudreau     Hackbarth    Lourey       Otremba      Tompkins
Bradley      Harder       Luther       Ozment       Tuma
Broecker     Hasskamp     Lynch        Paulsen      Tunheim
Brown        Holsten      Macklin      Pawlenty     Van Dellen
Carlson, L.  Huntley      Mahon        Pellow       Van Engen
Carlson, S.  Jefferson    Mares        Pelowski     Vickerman
Carruthers   Jennings     Mariani      Perlt        Warkentin
Commers      Johnson, A.  McElroy      Peterson     Weaver
Cooper       Johnson, V.  McGuire      Pugh         Wenzel
Daggett      Kalis        Milbert      Rest         Winter
Davids       Kelso        Molnau       Rhodes       Wolf
Dehler       Knight       Mulder       Rostberg     Worke
Dempsey      Knoblach     Munger       Sarna        Workman
Dorn         Koppendrayer Olson, M.    Schumacher   Sp.Anderson,I
Erhardt      Kraus        Onnen        Seagren      
Finseth      Krinkie      Opatz        Smith        
The motion did not prevail and the amendment was not adopted.

The Speaker resumed the Chair.

Van Engen and Hackbarth moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 45, after line 24, insert:

"Sec. 23. Minnesota Statutes 1994, section 297B.09, subdivision 1, is amended to read:

Subdivision 1. [GENERAL FUND AND TRANSPORTATION SHARE.] (a) Money collected and received under this chapter must be deposited in the state treasury and credited to the general fund. The amounts collected and received shall be credited as provided in this subdivision, and transferred from the general fund on July 15 and


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8078

February 15 of each fiscal year. The commissioner of finance must make each transfer based upon the actual receipts of the preceding six calendar months and include the interest earned during that six-month period. The commissioner of finance may establish a quarterly or other schedule providing for more frequent payments to the transit assistance fund if the commissioner determines it is necessary or desirable to provide for the cash flow needs of the recipients of money from the transit assistance fund.

(b) Twenty-five percent of the money collected and received under this chapter after June 30, 1990, and before July 1, 1991, must be transferred to the highway user tax distribution fund and the transit assistance fund for apportionment as follows: 75 percent must be transferred to the highway user tax distribution fund for apportionment in the same manner and for the same purposes as other money in that fund, and the remaining 25 percent of the money must be transferred to the transit assistance fund to be appropriated to the commissioner of transportation for transit assistance within the state and to the metropolitan council.

(c) The distributions under this subdivision to the highway user tax distribution fund until June 30, 1991, and to the trunk highway fund thereafter, must be reduced by the amount necessary to fund the appropriation under section 41A.09, subdivision 1. For the fiscal years ending June 30, 1988, and June 30, 1989, the commissioner of finance, before making the transfers required on July 15 and January 15 of each year, shall estimate the amount required to fund the appropriation under section 41A.09, subdivision 1, for the six-month period for which the transfer is being made. The commissioner shall then reduce the amount transferred to the highway user tax distribution fund by the amount of that estimate. The commissioner shall reduce the estimate for any six-month period by the amount by which the estimate for the previous six-month period exceeded the amount needed to fund the appropriation under section 41A.09, subdivision 1, for that previous six-month period. If at any time during a six-month period in those fiscal years the amount of reduction in the transfer to the highway user tax distribution fund is insufficient to fund the appropriation under section 41A.09, subdivision 1, for that period, the commissioner shall transfer to the general fund from the highway user tax distribution fund an additional amount sufficient to fund the appropriation for that period, but the additional amount so transferred to the general fund in a six-month period may not exceed the amount transferred to the highway user tax distribution fund for that six-month period. as follows:

(1) from July 1, 1997 to June 30, 1999, 75 percent to the general fund, 18.75 percent to the highway user tax distribution fund, and 6.25 percent to the transit assistance fund;

(2) from July 1, 1999 to June 30, 2001, 50 percent to the general fund, 37.5 percent to the highway user tax distribution fund, and 12.5 percent to the transit assistance fund;

(3) from July 1, 2001 to June 30, 2003, 25 percent to the general fund, 56.25 percent to the highway user tax distribution fund, and 18.75 percent to the transit assistance fund;

(4) on and after July 1, 2003, 75 percent to the highway user tax distribution fund and 25 percent to the transit assistance fund."

Page 56, after line 23, insert:

"Section 23 is effective July 1, 1997."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Van Engen and Hackbarth amendment and the roll was called. There were 81 yeas and 49 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Ostrom       Sykora
Anderson, B. Frerichs     Kraus        Otremba      Tompkins
Anderson, R. Girard       Krinkie      Ozment       Tuma
Bertram      Goodno       Larsen       Paulsen      Van Dellen

JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8079
Bettermann Gunther Leppik Pawlenty Van Engen Bishop Haas Lieder Pellow Vickerman Boudreau Hackbarth Lindner Pelowski Warkentin Broecker Harder Lynch Peterson Weaver Carlson, S. Hasskamp Macklin Rhodes Wenzel Commers Holsten Mares Rostberg Winter Cooper Jaros McElroy Schumacher Wolf Daggett Jennings Molnau Seagren Worke Davids Johnson, V. Mulder Smith Workman Dehler Kalis Olson, E. Stanek Dempsey Kelso Olson, M. Sviggum Dorn Knight Onnen Swenson, D. Erhardt Knoblach Osskopp Swenson, H.
Those who voted in the negative were:

Bakk         Garcia       Leighton     Munger       Sarna
Bradley      Greenfield   Long         Murphy       Skoglund
Brown        Greiling     Lourey       Opatz        Solberg
Carlson, L.  Hausman      Luther       Orenstein    Tomassoni
Carruthers   Huntley      Mahon        Orfield      Trimble
Clark        Jefferson    Mariani      Osthoff      Tunheim
Dauner       Johnson, A.  Marko        Perlt        Wagenius
Dawkins      Kahn         McCollum     Pugh         Wejcman
Entenza      Kelley       McGuire      Rest         Sp.Anderson,I
Farrell      Kinkel       Milbert      Rice         
The motion prevailed and the amendment was adopted.

Trimble, Solberg, Huntley, Onnen, Hausman and Dempsey moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 73, after line 19, insert:

"Subd. 4. [ELIGIBILITY.] An owner or operator of a new or existing electric power generation facility who offers electric power generated by the facility for sale is eligible for an exclusion under this section only if the owner or operator agrees in advance to sell that electric power to an entity distributing power at wholesale or retail that has:

(1) a growing demand for power caused by growth within its service area which has been or can be demonstrated to the public utilities commission or an analogous agency of another state or the federal government; and

(2) agreed not to offer the electric power to a customer currently being served by another utility."

Page 156, after line 2, insert:

"Sec. 59. [ANALYSIS OF UTILITY TAXATION.]

The commissioner of revenue, in consultation with the commissioner of public service and the public utilities commission, shall undertake an analysis of the following issues and report the findings and recommendations of the analysis to legislative committees with jurisdiction over these issues by January 15, 1997:

(1) the amount of taxes paid by utilities in this state relative to other states;

(2) a comparison of taxes paid by investor-owned utilities, municipal gas and electric utilities, cooperative utilities, producers of co-generation power, and independent power producers;

(3) the competitive aspects and consequences of disparities in utility taxation, to the electric and gas industry and to the state, in light of the restructuring that is occurring in the industry; and

(4) other issues related to utility taxation and recommendations for reform of the utility tax system, including property taxes."

Page 157, after line 2, insert:

"Subdivision 4 of section 6 expires as of June 1, 2002."


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8080

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Trimble et al amendment and the roll was called. There were 50 yeas and 80 nays as follows:

Those who voted in the affirmative were:

Abrams       Entenza      Kahn         McElroy      Rukavina
Bettermann   Farrell      Kelley       Munger       Sarna
Carruthers   Greenfield   Kinkel       Murphy       Solberg
Clark        Greiling     Knight       Olson, M.    Tomassoni
Daggett      Haas         Leighton     Orfield      Trimble
Dauner       Hasskamp     Lourey       Osthoff      Van Dellen
Dawkins      Hausman      Luther       Ostrom       Weaver
Dehler       Huntley      Mares        Pelowski     Wejcman
Dempsey      Jaros        Mariani      Peterson     Winter
Dorn         Johnson, V.  McCollum     Rhodes       Workman 
Those who voted in the negative were:

Anderson, B. Garcia       Larsen       Otremba      Sykora
Anderson, R. Girard       Leppik       Ozment       Tompkins
Bakk         Goodno       Lieder       Paulsen      Tuma
Bertram      Gunther      Lindner      Pawlenty     Tunheim
Bishop       Hackbarth    Long         Pellow       Van Engen
Boudreau     Harder       Lynch        Perlt        Vickerman
Bradley      Holsten      Macklin      Pugh         Wagenius
Broecker     Jefferson    Mahon        Rest         Warkentin
Brown        Jennings     Marko        Rostberg     Wenzel
Carlson, L.  Johnson, A.  McGuire      Schumacher   Wolf
Carlson, S.  Johnson, R.  Milbert      Seagren      Worke
Commers      Kalis        Molnau       Skoglund     Sp.Anderson,I
Cooper       Kelso        Mulder       Smith        
Davids       Knoblach     Olson, E.    Stanek       
Erhardt      Koppendrayer Onnen        Sviggum      
Finseth      Kraus        Opatz        Swenson, D.  
Frerichs     Krinkie      Osskopp      Swenson, H.  
The motion did not prevail and the amendment was not adopted.

McElroy and Kelso moved to amend H. F. No. 3249, the first engrossment, as amended, as follows:

Page 118, line 7, after "learning" insert "or the commissioner of revenue"

Page 149, after line 15, insert:

"Sec. 47. Minnesota Statutes 1994, section 473.388, subdivision 5, is amended to read:

Subd. 5. [OTHER ASSISTANCE.] A city or town receiving assistance or levying a transit tax under this section may also receive assistance from the council under section 473.384. In applying for assistance under that section an applicant must describe the portion of the its available local transit funds or local transit taxes which are not obligated to subsidize its replacement transit service and which the applicant proposes to use to subsidize additional service. An applicant which has exhausted its available local transit funds or local transit taxes may use any other local subsidy funds to complete the required local share.

Sec. 48. Minnesota Statutes 1994, section 473.388, is amended by adding a subdivision to read:

Subd. 7. [LOCAL LEVY OPTION.] (a) A statutory or home rule charter city or town that is eligible for assistance under this section, in lieu of receiving the assistance, may levy a tax for payment of the operating and capital expenditures for transit and other related activities and to provide for payment of obligations issued by the municipality for such purposes, provided that the tax must be sufficient to maintain the level of transit service provided in the municipality in the previous year.


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8081

(b) The transit tax revenues derived by the municipality may not exceed:

(1) for the first transit levy year and any subsequent transit levy year immediately following a year in which the municipality declines to make the levy, the maximum available local transit funds for the municipality for taxes payable in the previous year under section 473.446, calculated as if the percentage of transit tax revenues for the municipality were 88 percent instead of 90 percent, and multiplied by the municipality's market value adjustment ratio; and

(2) for taxes levied in any year that immediately follows a year in which the municipality elects to levy under this subdivision, the maximum transit tax that the municipality may have levied in the previous year under this subdivision, multiplied by the municipality's market value adjustment ratio.

The commissioner of revenue shall certify the municipality's levy limitation under this subdivision to the municipality by August 1 of the levy year. The tax must be accumulated and kept in a separate fund to be known as the "replacement transit fund."

(c) To enable the municipality to receive revenues described in clauses (2) and (3) of the definition of "tax revenues" in section 473.388, subdivision 4, that would otherwise be lost if the municipality's transit tax levy was not treated as a successor levy to that made by the council under section 473.446:

(1) in the first transit levy year and any subsequent transit levy year immediately following a year in which the municipality declines to make the levy, 88 percent of the council's nondebt spread levy for the preceding year shall be treated as levied by the municipality, and not the council, for purposes of section 473F.08, subdivision 3, for the purpose of determining its local tax rate for the preceding year; and

(2) 88 percent of the revenues described in clause (3) of the definition of "tax revenues" in section 473.388, subdivision 4 shall be permanently transferred from the council to the municipality for aid payable in any taxes payable year in which a municipality levies a tax under this subdivision, provided that it did not levy a tax under this subdivision in the preceding year. If a municipality which elects to levy a tax under this subdivision declines to levy in a subsequent year, the aid transferred under this clause shall be transferred back to the council.

(d) Any transit taxes levied under this subdivision are not subject to, or counted towards, any limit hereafter imposed by law on the levy of taxes upon taxable property within any municipality unless the law specifically includes the transit tax.

(e) This subdivision is consistent with the transit redesign plan. Eligible municipalities opting to levy the transit tax under this subdivision shall continue to meet the regional performance standards established by the council.

(f) Within the designated Americans with Disabilities Act area, metro mobility remains the obligation of the state.

(g) For purposes of this subdivision, "transit levy year" is any year in which the municipality elects to levy under this subdivision.

(h) A municipality may not levy taxes under this subdivision in any year unless it notifies the council and the commissioner of revenue of its intent to levy before July 1 of the levy year.

Sec. 49 Minnesota Statutes 1995 Supplement, section 473.446, subdivision 1, is amended to read:

Subdivision 1. [TAXATION WITHIN TRANSIT TAXING DISTRICT.] For the purposes of sections 473.405 to 473.449 and the metropolitan transit system, except as otherwise provided in this subdivision and subdivision 1b, the council shall levy each year upon all taxable property within the metropolitan transit taxing district, defined in subdivision 2, a transit tax consisting of:

(a) an amount which shall be used for payment of the expenses of operating transit and paratransit service and to provide for payment of obligations issued by the council under section 473.436, subdivision 6;

(b) an additional amount, if any, the council determines to be necessary to provide for the full and timely payment of its certificates of indebtedness and other obligations outstanding on July 1, 1985, to which property taxes under this section have been pledged; and

(c) an additional amount necessary to provide full and timely payment of certificates of indebtedness, bonds, including refunding bonds or other obligations issued or to be issued under section 473.39 by the council for purposes of acquisition and betterment of property and other improvements of a capital nature and to which the council has specifically pledged tax levies under this clause.


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The property tax levied by the council for general purposes under clause (a) must not exceed the following amount for the years specified:

(1) for taxes payable in 1995, the council's property tax levy limitation for general transit purposes is equal to the former regional transit board's property tax levy limitation for general transit purposes under this subdivision, for taxes payable in 1994, multiplied by an index for market valuation changes equal to the total market valuation of all taxable property located within the metropolitan transit taxing district for the current taxes payable year divided by the total market valuation of all taxable property located within the metropolitan transit taxing district for the previous taxes payable year; and

(2) for taxes payable in 1996 and subsequent years, the product of (i) the council's property tax levy limitation for general transit purposes for the previous year determined under this subdivision multiplied by (ii) an index for market valuation changes equal to the total market valuation of all taxable property located within the metropolitan transit taxing district for the current taxes payable year divided by the total market valuation of all taxable property located within the metropolitan transit taxing district for the previous taxes payable year.

For the taxes payable year 1995, the index for market valuation changes shall be multiplied by an amount equal to the sum of the regional transit board's property tax levy limitation for the taxes payable year 1994 and $160,665. The $160,665 increase shall be a permanent adjustment to the levy limit base used in determining the regional transit board's property tax levy limitation for general purposes for subsequent taxes payable years.

For the purpose of determining the council's property tax levy limitation for general transit purposes under this subdivision, "total market valuation" means the total market valuation of all taxable property within the metropolitan transit taxing district without valuation adjustments for fiscal disparities (chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage transmission lines (section 273.425).

The county auditor shall reduce the tax levied pursuant to this subdivision section and section 473.388 on all property within statutory and home rule charter cities and towns that receive full-peak service and limited off-peak service by an amount equal to the tax levy that would be produced by applying a rate of 0.510 percent of net tax capacity on the property. The county auditor shall reduce the tax levied pursuant to this subdivision section and section 473.388 on all property within statutory and home rule charter cities and towns that receive limited peak service by an amount equal to the tax levy that would be produced by applying a rate of 0.765 percent of net tax capacity on the property. The amounts so computed by the county auditor shall be submitted to the commissioner of revenue as part of the abstracts of tax lists required to be filed with the commissioner under section 275.29. Any prior year adjustments shall also be certified in the abstracts of tax lists. The commissioner shall review the certifications to determine their accuracy and may make changes in the certification as necessary or return a certification to the county auditor for corrections. The commissioner shall pay to the council and to the municipalities levying under section 473.388, subdivision 7, the amounts certified by the county auditors on the dates provided in section 273.1398, apportioned between the council and the municipality in the same proportion as the total transit levy is apportioned within the municipality. There is annually appropriated from the general fund in the state treasury to the department of revenue the amounts necessary to make these payments.

For the purposes of this subdivision, "full-peak and limited off-peak service" means peak period regular route service, plus weekday midday regular route service at intervals longer than 60 minutes on the route with the greatest frequency; and "limited peak period service" means peak period regular route service only.

For the purposes of property taxes payable in the following year, the council shall annually determine which cities and towns qualify for the 0.510 percent or 0.765 percent tax capacity rate reduction and shall certify this list to the county auditor of the county wherein such cities and towns are located on or before September 15. No changes may be made to the annual list after September 15.

Sec. 50. Minnesota Statutes 1994, section 473.446, is amended by adding a subdivision to read:

Subd. 1b. [DEDUCTION OF LOCAL TRANSIT LEVY FOR ELIGIBLE MUNICIPALITIES.] (a) The maximum the council may levy for general purposes under subdivision 1, paragraph (a), upon taxable property within a municipality levying taxes under section 473.388, subdivision 7, is the combined transit tax of the municipality and the council levied within the municipality in the previous year under subdivision 1, paragraph (c) and section 473.388, subdivision 7, multiplied by the municipality's market value adjustment ratio, minus the amount to be levied by the municipality under section 473.388, subdivision 7, for the current levy year.


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(b) For purposes of this subdivision:

(1) "municipality" means a municipality levying taxes under section 473.388, subdivision 7, for replacement transit service;

(2) "market value adjustment ratio" means the index for market valuation changes described in section 473.446, as applied to individual municipalities; and

(3) "tax revenues" has the meaning given the term in section 473.388, subdivision 4.

Sec. 51. Minnesota Statutes 1995 Supplement, section 473.446, subdivision 8, is amended to read:

Subd. 8. [STATE REVIEW.] The commissioner of revenue shall certify the council's levy limitation under this section to the council by August 1 of the levy year. The council must certify its proposed property tax levy under this section to the commissioner of revenue by September 1 of the levy year. The commissioner of revenue shall annually determine whether the property tax for transit purposes certified by the council for levy following the adoption of its proposed budget is within the levy limitation imposed by subdivision 1 and subdivision 1b. The commissioner shall also annually determine whether the transit tax imposed on all taxable property within the metropolitan transit area but outside of the metropolitan transit taxing district is within the levy limitation imposed by subdivision 1a. The determination must be completed prior to September 10 of each year. If current information regarding market valuation in any county is not transmitted to the commissioner in a timely manner, the commissioner may estimate the current market valuation within that county for purposes of making the calculations."

Page 157, line 14, after "45" insert "and 47 to 51"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the McElroy and Kelso amendment and the roll was called. There were 65 yeas and 68 nays as follows:

Those who voted in the affirmative were:

Abrams       Erhardt      Koppendrayer Olson, E.    Stanek
Anderson, B. Finseth      Kraus        Olson, M.    Sviggum
Bettermann   Frerichs     Krinkie      Onnen        Swenson, D.
Bishop       Girard       Larsen       Osskopp      Swenson, H.
Boudreau     Goodno       Leppik       Ozment       Sykora
Bradley      Gunther      Lieder       Paulsen      Tompkins
Broecker     Hackbarth    Lindner      Pawlenty     Tuma
Commers      Harder       Macklin      Pellow       Van Dellen
Cooper       Holsten      Mares        Pelowski     Van Engen
Daggett      Johnson, V.  McElroy      Rhodes       Vickerman
Davids       Kelso        Molnau       Rostberg     Wolf
Dehler       Knight       Mulder       Seagren      Worke
Dempsey      Knoblach     Ness         Smith        Workman 
Those who voted in the negative were:

Anderson, R. Greenfield   Kinkel       Opatz        Skoglund
Bakk         Greiling     Leighton     Orenstein    Solberg
Bertram      Haas         Long         Orfield      Tomassoni
Brown        Hasskamp     Lourey       Osthoff      Trimble
Carlson, L.  Hausman      Luther       Ostrom       Tunheim
Carlson, S.  Huntley      Lynch        Otremba      Wagenius
Carruthers   Jaros        Mahon        Perlt        Warkentin
Clark        Jefferson    Mariani      Peterson     Weaver
Dauner       Jennings     Marko        Pugh         Wejcman
Dawkins      Johnson, A.  McCollum     Rest         Wenzel
Dorn         Johnson, R.  McGuire      Rice         Winter
Entenza      Kahn         Milbert      Rukavina     Sp.Anderson,I
Farrell      Kalis        Munger       Sarna        
Garcia       Kelley       Murphy       Schumacher   
The motion did not prevail and the amendment was not adopted.


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8084

Bishop offered an amendment to H. F. No. 3249, the first engrossment, as amended.

POINT OF ORDER

Osthoff raised a point of order pursuant to rule 3.09 that the Bishop amendment was not in order. The Speaker ruled the point of order well taken and the amendment out of order.

H. F. No. 3249, A bill for an act relating to the financing and operation of government in this state; modifying certain tax rates, credits, refunds, bases, and exemptions; modifying property tax exemptions, valuation, and classification; providing a senior citizen property tax deferral; changing tax increment financing, special services district, and taxing district provisions; authorizing local taxes; authorizing certain special districts; providing local levy or other authority; authorizing municipal debt; providing for certain tax base sharing; changing certain aids; modifying revenue recapture; making tax policy, collection, administrative and technical changes, corrections, and clarifications; requiring studies; providing for appointments; appropriating money; amending Minnesota Statutes 1994, sections 10A.31, subdivision 3a; 13.99, subdivision 97a; 103E.611, subdivision 7; 115.26, by adding a subdivision; 165.08, subdivision 5; 216B.16, by adding a subdivision; 239.761, subdivision 5; 270.067, subdivision 2; 270.07, subdivision 1; 270.102, subdivisions 1, 2, and 3; 270.70, subdivision 2; 270A.03, subdivision 2; 270B.12, by adding a subdivision; 273.02, subdivision 3; 273.111, subdivisions 3 and 6; 273.124, by adding a subdivision; 273.13, subdivisions 22, 23, and 32; 273.1398, by adding a subdivision; 275.065, subdivision 5a; 275.07, subdivision 4; 275.61; 278.01, by adding a subdivision; 278.08; 279.06, subdivision 1; 279.37, by adding a subdivision; 281.17; 287.06; 289A.50, by adding a subdivision; 289A.56, subdivision 4; 290.01, subdivision 4a; 290.06, subdivisions 2c and 22; 290.091, subdivision 2; 290.0922, subdivisions 1 and 3; 290.095, subdivision 3; 290.17, subdivision 2; 290A.03, subdivision 11; 290A.25; 295.51, subdivision 1, and by adding a subdivision; 295.52, by adding a subdivision; 295.54, subdivisions 1, 2, and by adding a subdivision; 296.01, subdivisions 2 and 13; 296.02, by adding a subdivision; 296.025, subdivision 6; 296.141, subdivisions 4 and 5; 296.15, by adding a subdivision; 296.17, subdivision 7; 297.04, subdivision 9; 297A.01, subdivision 16; 297A.02, subdivision 5; 297A.14, by adding a subdivision; 297A.15, subdivision 6; 297A.21, subdivision 4; 297A.211, subdivision 3; 297A.24, subdivision 1; 297A.25, subdivision 14, and by adding a subdivision; 297A.256, subdivision 1; 297A.2572; 297A.2573; 297A.44, subdivision 1; 297A.46; 297E.02, subdivisions 4 and 10; 298.01, subdivision 4e; 298.17; 298.28, subdivisions 2 and 11; 298.75, subdivision 1; 349.15, by adding a subdivision; 349.154, by adding a subdivision; 373.40, subdivision 7; 375.192, subdivision 2; 383B.51; 428A.01, subdivisions 2 and 3; 428A.02, subdivision 1; 444.075, by adding a subdivision; 458A.32, subdivision 4; 469.040, subdivision 3, and by adding a subdivision; 469.167, subdivision 2; 469.173, subdivision 7; 469.174, subdivision 2; 469.176, subdivision 4f; 469.1761, subdivision 1; 469.177, subdivision 3; 471.88, subdivision 14; 473.625; 477A.011, subdivisions 3, 20, 27, 32, and 35; and 477A.013, subdivision 6; Minnesota Statutes 1995 Supplement, sections 41A.09, subdivision 2a; 115B.48, by adding subdivisions; 115B.49, subdivisions 2 and 4; 116.07, subdivision 10; 124A.03, subdivision 2; 216B.161, subdivision 1; 270A.03, subdivision 7; 272.02, subdivision 1; 273.11, subdivision 16; 273.124, subdivisions 3 and 13; 273.13, subdivisions 24 and 25; 273.1398, subdivision 1; 273.1399, subdivisions 6 and 7; 275.065, subdivisions 3 and 6; 275.08, subdivision 1b; 276.04, subdivision 2; 289A.40, subdivision 1; 290.191, subdivisions 5 and 6; 290A.04, subdivision 2h; 295.50, subdivisions 3 and 4; 295.53, subdivisions 1, 5, and by adding a subdivision; 296.02, subdivision 1; 296.025, subdivision 1; 296.12, subdivision 3; 297A.01, subdivision 3; 297A.02, subdivision 4; 297A.25, subdivisions 57 and 59; 297A.45, subdivisions 2, 3, and 4; 297B.01, subdivision 8; 428A.05; 465.82, subdivision 2; 469.169, subdivisions 9 and 10; 469.174, subdivision 4; 469.175, subdivisions 1, 5, and 6; 469.176, subdivision 2; 469.177, subdivision 1; 471.6965; 473.448; 477A.0121, subdivision 4; 477A.0132; and 477A.03, subdivision 2; Laws 1963, chapter 118, sections 1, subdivision 3; 2; 4; 6; Laws 1971, chapter 869, sections 2, subdivisions 2, as amended, 14, and 17, as added; 3, subdivisions 5, 6, and 9; 4, subdivisions 1, 2, and 5, as amended; 5, subdivisions 1 and 3; 8; 10, subdivision 3b, as added; 12, subdivisions 1, as amended, and 2, as amended; 17, subdivision 11; 19; 20, subdivision 2; 21; 24; Laws 1985, chapter 302, section 2, subdivision 1, as amended; Laws 1991, chapter 291, article 8, section 27, by adding a subdivision; Laws 1992, chapter 511, article 8, section 39; and Laws 1995, chapter 264, articles 2; sections 42, subdivision 1; and 44; 5, sections 40, subdivision 1; 44, subdivision 4; and 45, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 103D; 115B; 272; 273; 281; 287; 290; 290A; 297A; 375; 428A; 462A; 469; and 477A; proposing coding for new law as Minnesota Statutes, chapters 276A; and 290B; repealing Minnesota Statutes 1994, sections 13.99, subdivision 97; 273.1316; 273.1317; 273.1318; 273.1398, subdivision 5b; 290.06, subdivision 21; 290.092; 295.37; 295.39; 295.40; 295.41; 295.42; 295.43; 295.50, subdivisions 8, 9, 9a, 11, 12, and 12a; 296.25, subdivision 1a; 297A.01, subdivision 20; 297A.14, subdivision 3; 297A.15, subdivision 5; 297A.24, subdivision 2; and 469.150; Minnesota Statutes 1995 Supplement, sections 270B.12, subdivision 11; 276.012; 290A.055; 290A.26; and 469.176, subdivision 7; Laws 1971, chapter 869, section 6, subdivision 3; Laws 1987, chapter 285; and Laws 1995, chapter 264, article 4.

The bill was read for the third time, as amended, and placed upon its final passage.


JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8085

The question was taken on the passage of the bill and the roll was called. There were 104 yeas and 29 nays as follows:

Those who voted in the affirmative were:

Abrams       Erhardt      Koppendrayer Munger       Skoglund
Anderson, B. Frerichs     Kraus        Murphy       Smith
Bakk         Garcia       Krinkie      Ness         Stanek
Bettermann   Girard       Larsen       Olson, M.    Sviggum
Bishop       Goodno       Leppik       Onnen        Swenson, D.
Boudreau     Greiling     Lieder       Osskopp      Swenson, H.
Bradley      Gunther      Lindner      Osthoff      Sykora
Broecker     Haas         Long         Ostrom       Tomassoni
Brown        Hackbarth    Luther       Ozment       Tuma
Carlson, L.  Harder       Lynch        Paulsen      Van Dellen
Carlson, S.  Hausman      Macklin      Pawlenty     Van Engen
Carruthers   Holsten      Mahon        Pellow       Vickerman
Commers      Jennings     Mares        Pelowski     Wagenius
Cooper       Johnson, A.  Mariani      Perlt        Warkentin
Dauner       Johnson, V.  Marko        Peterson     Weaver
Davids       Kahn         McCollum     Pugh         Wenzel
Dawkins      Kalis        McElroy      Rest         Winter
Dehler       Kelley       McGuire      Rhodes       Worke
Dempsey      Kelso        Milbert      Rostberg     Workman
Dorn         Knight       Molnau       Sarna        Sp.Anderson,I
Entenza      Knoblach     Mulder       Seagren      
Those who voted in the negative were:

Anderson, R. Greenfield   Kinkel       Orfield      Tompkins
Bertram      Hasskamp     Leighton     Otremba      Trimble
Clark        Huntley      Lourey       Rice         Tunheim
Daggett      Jaros        Olson, E.    Rukavina     Wejcman
Farrell      Jefferson    Opatz        Schumacher   Wolf 
Finseth      Johnson, R.  Orenstein    Solberg      
The bill was passed, as amended, and its title agreed to.

CONSIDERATION UNDER RULE 1.10

Pursuant to rule 1.10, Solberg requested immediate consideration of H. F. No. 2417.

H. F. No. 2417 was reported to the House.

Jefferson, Bertram, Smith, Dempsey, Kahn and Johnson, R., moved to amend H. F. No. 2417, the third engrossment, as follows:

Page 6, after line 24, insert:

"Sec. 3. [INDEPENDENT SCHOOL DISTRICT NO. 200, HASTINGS; PART-TIME TEACHER RETIREMENT COVERAGE PROGRAM DEADLINE EXTENSION.]

(a) Notwithstanding any provision of Minnesota Statutes, section 354.66, to the contrary, the teachers retirement association must accept the application or applications for full-time retirement coverage filed by independent school district No. 200, Hastings, on or about February 5, 1996, for a person who:

(1) was born on January 11, 1940;

(2) was initially hired by the school district on August 26, 1968; and

(3) was initially accepted by the school board for participation in the qualified part-time teacher program under section 354.66 on November 5, 1991.

A person who meets the requirements of clauses (1) to (3) is entitled to full-time teacher retirement association coverage under Minnesota Statutes, section 354.66, for the 1992-1993 through 1995-1996 school years if all other conditions of that section are met beyond the failure of the school district to timely file the applications.


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(b) If full-time equivalent employee contributions have not been received by the teachers retirement association, a person who meets the requirements of paragraph (a), clauses (1) to (3), for teaching services shall pay the applicable employee contribution under Minnesota Statutes, section 354.42, subdivision 1, on the difference between the amount actually deducted from the person's compensation and the amount of the person's full-time equivalent salary under Minnesota Statutes, section 354.66, subdivision 4.

(c) If full-time equivalent employer and additional employer contributions have not been received by the teachers retirement association, independent school district No. 200, Hastings, shall pay the applicable employer and additional employer contributions under Minnesota Statutes, section 354.42, subdivisions 3 and 5, on the difference, if any, between the person's full-time equivalent salary and the salary upon which contributions were made, plus interest at the rate of 8.5 percent compounded annually. The school district shall also pay interest at the rate of 8.5 percent compounded annually on the difference, if any, between the employee contributions actually deducted from compensation and the employee contributions based on the person's full-time equivalent salary under paragraph (b).

(d) The payments under paragraphs (b) and (c) must each be made in a lump sum to the teachers retirement association before June 30, 1996, or before retirement of a person meeting the requirements of paragraph (a), clauses (1) to (3), whichever is earlier. If payment is made on an earlier date, interest must be calculated to the end of the month in which payment is made."

Page 6, after line 27, insert:

"Section 3 is effective on the day following approval by the governing body of school district No. 200, and upon compliance with the requirements of Minnesota Statutes, section 645.021."

The motion prevailed and the amendment was adopted.

Osskopp moved to amend H. F. No. 2417, the third engrossment, as amended, as follows:

Page 46, after line 11, insert:

"ARTICLE 11

LEGISLATORS' RETIREMENT

Section 1. [3A.14] [MEMBERSHIP EXCLUSION.]

[FUTURE LEGISLATORS.] Notwithstanding any contrary provision of this chapter or any other law, a person first elected to the house of representatives or the senate after the effective date of this section is not a member of the legislators retirement plan, shall not make contributions required by the chapter, and is not eligible to receive benefits under this chapter.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective the day following final enactment."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Osskopp amendment and the roll was called. There were 59 yeas and 72 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Frerichs     Krinkie      Onnen        Sykora
Bettermann   Girard       Larsen       Osskopp      Tompkins
Boudreau     Goodno       Leppik       Paulsen      Tuma
Bradley      Gunther      Lindner      Pawlenty     Van Dellen
Broecker     Haas         Luther       Pellow       Van Engen
Carlson, S.  Hackbarth    Lynch        Rhodes       Vickerman
Commers      Harder       Macklin      Rostberg     Warkentin
Daggett      Holsten      Mares        Seagren      Weaver
Davids       Johnson, V.  McCollum     Stanek       Wolf

JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8087
Dehler Knight Molnau Sviggum Worke Dempsey Koppendrayer Mulder Swenson, D. Workman Finseth Kraus Olson, M. Swenson, H.
Those who voted in the negative were:

Abrams       Farrell      Kelso        Ness         Sarna
Anderson, R. Garcia       Kinkel       Olson, E.    Schumacher
Bakk         Greenfield   Knoblach     Opatz        Skoglund
Bertram      Greiling     Leighton     Orenstein    Solberg
Bishop       Hasskamp     Lieder       Orfield      Tomassoni
Brown        Hausman      Long         Osthoff      Trimble
Carlson, L.  Huntley      Lourey       Ostrom       Tunheim
Carruthers   Jaros        Mahon        Otremba      Wagenius
Clark        Jefferson    Mariani      Ozment       Wejcman
Cooper       Jennings     Marko        Pelowski     Wenzel
Dauner       Johnson, A.  McElroy      Perlt        Winter
Dawkins      Johnson, R.  McGuire      Peterson     Sp.Anderson,I
Dorn         Kahn         Milbert      Pugh         
Entenza      Kalis        Munger       Rest         
Erhardt      Kelley       Murphy       Rukavina     
The motion did not prevail and the amendment was not adopted.

Knight moved to amend H. F. No. 2417, the third engrossment, as amended, as follows:

Page 6, after line 30, insert:

"Section 1. [LEGISLATIVE INTENT AND PURPOSE.]

It is the intent and purpose of the legislature in redirecting various state pension aid amounts under this article to the Minneapolis teachers retirement fund association and to the St. Paul teachers retirement fund association to improve the financing of those associations and to improve the funding ratios of those associations in order to facilitate a future consolidation of those associations with the statewide teachers retirement association."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Knight amendment and the roll was called. There were 35 yeas and 98 nays as follows:

Those who voted in the affirmative were:

Abrams       Daggett      Harder       Mulder       Sviggum
Anderson, B. Dempsey      Knight       Olson, M.    Swenson, D.
Bishop       Erhardt      Koppendrayer Onnen        Sykora
Boudreau     Frerichs     Kraus        Osskopp      Tuma
Bradley      Girard       Krinkie      Paulsen      Van Dellen
Carlson, S.  Goodno       Lindner      Pawlenty     Weaver
Commers      Haas         Molnau       Pellow       Workman 
Those who voted in the negative were:

Anderson, R. Greiling     Leighton     Opatz        Smith
Bakk         Gunther      Leppik       Orenstein    Solberg
Bertram      Hackbarth    Lieder       Orfield      Stanek
Bettermann   Hasskamp     Long         Osthoff      Swenson, H.
Broecker     Hausman      Lourey       Ostrom       Tomassoni
Brown        Holsten      Luther       Otremba      Tompkins
Carlson, L.  Huntley      Lynch        Ozment       Trimble
Carruthers   Jaros        Macklin      Pelowski     Tunheim

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Clark Jefferson Mahon Perlt Van Engen Cooper Jennings Mares Peterson Vickerman Dauner Johnson, A. Mariani Pugh Wagenius Davids Johnson, R. Marko Rest Warkentin Dawkins Johnson, V. McCollum Rhodes Wejcman Dehler Kahn McElroy Rice Wenzel Dorn Kalis McGuire Rostberg Winter Entenza Kelley Milbert Rukavina Wolf Farrell Kelso Munger Sarna Worke Finseth Kinkel Murphy Schumacher Sp.Anderson,I Garcia Knoblach Ness Seagren Greenfield Larsen Olson, E. Skoglund
The motion did not prevail and the amendment was not adopted.

H. F. No. 2417, A bill for an act relating to retirement; modifying various provisions governing Minnesota public pension plans; making various benefit and coverage modifications; redirecting various state pension aids to certain first class city teachers retirement fund associations; requiring certain school district employer contribution increases; establishing reporting requirements; making changes to provisions on volunteer firefighter relief associations; creating a special task force; making various administrative modifications; amending Minnesota Statutes 1994, sections 3A.04, subdivision 4; 16.06, by adding a subdivision; 69.021, subdivision 7; 124.916, subdivision 3; 144C.06; 352.04, subdivision 8; 352.95, subdivision 2; 352B.10, subdivision 2; 352B.11, subdivision 1; 352C.09, by adding a subdivision; 353D.01, subdivision 2; 353D.02; 353D.03; 353D.04; 354.44, subdivisions 3 and 4; 354A.12, subdivisions 2, 3a, 3c, and by adding subdivisions; 356A.06, subdivision 4; 423A.02, subdivision 1, and by adding a subdivision; 423B.01, subdivision 9; 423B.15, subdivision 3; 424A.001, by adding subdivisions; 424A.01, by adding a subdivision; 424A.02, subdivision 1, and by adding a subdivision; and 490.124, by adding a subdivision; Minnesota Statutes 1995 Supplement, sections 144C.07, subdivision 2; 144C.08; 354A.12, subdivision 3b; 354D.02, subdivision 2; 354D.03; 354D.04; and 354D.06; Laws 1989, chapter 319, article 19, section 7, subdivisions 1, as amended and 4, as amended; and Laws 1995, chapter 252, article 1, section 16; proposing coding for new law in Minnesota Statutes, chapter 354D; repealing Minnesota Statutes 1994, section 353D.11; Laws 1990, chapter 570, article 13, section 1, subdivision 5.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called.

Pursuant to rule 2.05, Ozment requested that he be excused from voting on final passage of H. F. No. 2417, as amended. The request was granted by the Speaker.

There were 115 yeas and 15 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Larsen       Orenstein    Sviggum
Anderson, R. Girard       Leighton     Orfield      Swenson, D.
Bakk         Goodno       Leppik       Osskopp      Swenson, H.
Bertram      Greenfield   Lieder       Osthoff      Sykora
Bettermann   Gunther      Long         Ostrom       Tomassoni
Bishop       Hackbarth    Lourey       Otremba      Tompkins
Boudreau     Harder       Luther       Pawlenty     Trimble
Broecker     Hasskamp     Lynch        Pellow       Tunheim
Brown        Hausman      Macklin      Pelowski     Van Engen
Carlson, L.  Holsten      Mahon        Perlt        Vickerman
Carlson, S.  Huntley      Mares        Peterson     Wagenius
Carruthers   Jaros        Mariani      Pugh         Warkentin
Clark        Jefferson    Marko        Rest         Weaver
Cooper       Jennings     McCollum     Rhodes       Wejcman
Daggett      Johnson, A.  McElroy      Rice         Wenzel
Dauner       Johnson, R.  McGuire      Rostberg     Winter
Davids       Johnson, V.  Milbert      Rukavina     Wolf
Dawkins      Kahn         Molnau       Sarna        Worke
Dehler       Kalis        Mulder       Schumacher   Sp.Anderson,I
Dempsey      Kelley       Munger       Seagren      
Dorn         Kinkel       Murphy       Skoglund     
Entenza      Knoblach     Ness         Smith        
Erhardt      Koppendrayer Olson, E.    Solberg      
Farrell      Kraus        Opatz        Stanek       

JOURNAL OF THE HOUSE - 93rd Day - Top of Page 8089
Those who voted in the negative were:

Anderson, B. Greiling     Krinkie      Paulsen      
Bradley      Haas         Lindner      Tuma         
Commers      Kelso        Olson, M.    Van Dellen   
Frerichs     Knight       Onnen        
The bill was passed, as amended, and its title agreed to.

SPECIAL ORDERS

Carruthers moved that the bills on Special Orders for today be continued. The motion prevailed.

GENERAL ORDERS

Carruthers moved that the bills on General Orders for today be continued. The motion prevailed.

MOTIONS AND RESOLUTIONS

Dehler moved that his name be stricken as an author on H. F. No. 2253. The motion prevailed.

Long moved that the names of Kelley and Rhodes be added as authors on H. F. No. 3012. The motion prevailed.

Bishop moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 6, 1996, when the vote was taken on the Van Engen et al amendment to S. F. No. 2856, as amended." The motion prevailed.

Gunther moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 6, 1996, when the vote was taken on the Wenzel and Rukavina amendment to S. F. No. 2856, as amended." The motion prevailed.

Leighton moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 6, 1996, when the vote was taken on the Macklin amendment to S. F. No. 2856, as amended." The motion prevailed.

Mahon moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 6, 1996, when the vote was taken on the Carlson, S., amendment to S. F. No. 2856, as amended." The motion prevailed.

Mulder moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 6, 1996, when the vote was taken on the Bishop amendment to the Jefferson et al amendment to S. F. No. 2856, as amended." The motion prevailed.

Ozment moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 6, 1996, when the vote was taken on the Van Engen et al amendment to S. F. No. 2856, as amended." The motion prevailed.

Schumacher moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 6, 1996, when the vote was taken on the Olson, M., amendment to S. F. No. 2856, as amended." The motion prevailed.

Wenzel moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 6, 1996, when the vote was taken on the Olson, M., amendment to S. F. No. 2856, as amended." The motion prevailed.


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Wenzel moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Wednesday, March 6, 1996, when the vote was taken on the Orenstein amendment to S. F. No. 2856, as amended." The motion prevailed.

Cooper moved that H. F. No. 2067 be returned to its author. The motion prevailed.

Mulder moved that H. F. No. 2432 be returned to its author. The motion prevailed.

ADJOURNMENT

Carruthers moved that when the House adjourns today it adjourn until 10:00 a.m., Friday, March 8, 1996. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 10:00 a.m., Friday, March 8, 1996.

Edward A. Burdick, Chief Clerk, House of Representative


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